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QUEST MEANS BUSINESS

Cucumber Compensation; FIFA's Future

Aired June 7, 2011 - 14:00:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


MAX FOSTER, HOST, QUEST MEANS BUSINESS: Cucumber compensation, the EU's latest financial nightmare.

Ford's CEO tell CNN emerging markets will drive future sales.

And after accusation of foul play Sepp Blatter tells us what the future holds for FIFA.

I'm Max Foster in for Richard Quest. This is QUEST MEANS BUSINESS.

Hello to you.

European farmers who have lost millions because of the E. Coli outbreak could be in line for compensation. The EU agriculture ministers are holding emergency talks in Luxembourg right now. They want to set up a crisis fund worth $220 million. It doesn't come close to making up for the damage done by the scare. Spanish farmers say they are losing around $290 million a week. Al Goodman joins me now, from Madrid.

They are determined to get this compensation though, aren't they, those Spanish farmers?

AL GOODMAN, CNN MADRID BUREAU CHIEF: Hi, Max.

Well, not just Spain, which is about $600 million in losses according to the latest calculations. And that is not counting the farmers in France, Belgium, Holland and some other countries. So, at this emergency meeting of the EU agriculture ministers in Luxembourg, the commission proposed this initial $220 million. But then the agriculture commissioner for the EU says they might be able to go somewhat more. Here is how he put it. Let's have a listen.

(BEGIN VIDEO CLIP)

DACIAN CIOLO, EUROPEAN COMMISSION, AGRICULTURE & RURAL DEVELOPMENT (through translator): I am prepared to revise this upwards, but I don't think the budget available at the moment will meant that we can go up to 100 percent for all product and for all producers. I am aware that we have to provide the support in as consistent amount as possible. The commission is assuming its responsibility within the limits of our regulation and of our budget.

(END VIDEO CLIP)

GOODMAN: Max, he says that the improved offer from the commission, the proposal out to the agriculture ministers might be as early as tomorrow, Max.

FOSTER: The problem, of course, centered on Germany, not Spain. Is there anger towards Germany?

GOODMAN: There is a lot of blame going on and we heard that at a different EU forum this day in Strasbourg where there was a very fiery debate and a Spanish member of parliament stood up, a member of the European parliament stood up and he really gave the people there a earful. Here is what he had to say.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: (through translator): It is quite clear that the German authorities in this case have rushed in without due caution. If we also look at what Europe has done, we will see that what the EFSA has done, and the commission, as well, really has not done enough. It has been vague. Not clear enough. There was no coordination, no leadership.

(END VIDEO CLIP)

GOODMAN: And all of this, Max, against the backdrop of a very serious health problem. Look, the German authorities are still trying to figure out what has killed people, and has many, many more people ill, Max.

FOSTER: Just finally, in terms of say a cucumber farmer who suffered very badly in recent days and weeks, how damaging has this been? I mean, how are they going to be able to recover. He's obviously not going to get 100 percent compensation?

GOODMAN: You know, I was with the cucumber farmers on Friday, just a few days ago, in the South of Spain, and they have been in this business a long time. They have extensive operations and they are very, very angry that they were blamed wrongly by the German authorities, initially, for this. And they are realists as well and say they will try to get as much as they can, but basically right now their only option is to go to the Spanish banks in the height of this deep economic recession, here in Spain, and try to get an extended credit line when credit is so very tight. So they are extremely squeezed right now. Not many good options for them, Max.

FOSTER: Al in Madrid. Thank you very much for that.

Well, scientists in Germany are still searching for the cause of the outbreak, which is limited to an area around the Germany city of Hamburg. So far 23 people have died. And more than 2,000 have fallen ill. A farm which grows bean sprouts remains under suspicion, the tests for E. Coli has so far proved negative.

As Fred Pleitgen reports the longer this goes on the more of Germany's fresh produce is simply wasted.

(BEGIN VIDEOTAPE)

FRED PLEITGEN, CNN INTERNATIONAL CORRESPONDENT: It is a painful sight, case after case of ripe tomatoes thrown away. This produce marketer near Berlin says selling tomatoes has become all but impossible since the E. Coli outbreak began.

"Things are awful at the moment," the manager says. "We hope this won't continue for the whole harvest season. But if the government keeps telling people not to eat lettuce, tomatoes and cucumbers, nothing will change."

German authorities are still warning not to eat those vegetables uncooked, and consumers seem to be heeding that warning. The company near Berlin says at one point demand for tomatoes dropped to only 5 percent of what they normally sell.

(On camera): The folks here say that in total they are going to have to destroy about 270 tons of tomatoes. Now that batch alone is worth several 100s of $1,000s. Now, keep in mind, these are perfectly find tomatoes but they simply can't sell them because demand has flat lined.

(Voice over): German authorities still have not found the source of a deadly E. Coli strain that has killed almost two dozen in Northern Germany. Officials believe it may have originated in this sprout farm, but so far there is no scientific evidence to back that up.

Farmers all over Europe are suffering as fearful consumers are staying away from vegetables. At a crisis meeting in Luxembourg, where especially Spain criticized Germany for suggesting its cucumbers might be the source of the bacteria, the EU agreed to pay 150 million euros in financial aid for the industry.

UNIDENTIFIED MALE (through translator): We have to pay compensation for the damages that they have suffered. We need a swift solution and our commissioner came to our meeting with a set of proposals.

Andre Becker would rather see his tomatoes on dinner tables than receive compensation for throwing them away. He oversees this greenhouse and the prime harvesting season is right now. Like so many others, he wants consumers to know his products are safe.

"We work according to strict standards," he says. "We test the water we give to the plants and we also test it for E. Coli. The results were negative."

The tomatoes have grown exceptionally well this year, but no matter how beautiful and ripe they may be, the workers here know they will probably go straight from the greenhouse to here, to be thrown away and destroyed. Fred Pleitgen, CNN, Valdo, Germany.

(END VIDEOTAPE)

FOSTER: Let's get to the U.S. now and traders are all focused on what Ben Bernanke might be saying later today. He's due to begin speaking in Atlanta in about an hour and a half. The Fed chief is expected to suggest that the U.S. monetary policy will remain loose for some time to come. And that is driving the dollar down against many of the world's major currencies. The buck hit a record low against the Swiss franc and the one- month low against the euro.

Most markets in Europe gained a bit of ground today despite lingering worries over debt crisis. Investors jumped back into the market to snap up beaten down mining stocks in London and energy shares in Frankfurt. Ion (ph) was the biggest gainer on the DAX. The insurance firm resolution led the gains in London. It has just announced a share buy back and fellow insurer Axa jumped in Paris.

Let's have a look at the Dow. See what it is doing. It is currently up. It is up 0.6 9 percent. So no great shakes there at the moment.

Now it is everywhere you go, but it is no where to be found. It might sound like a riddle but that is just how cloud computing works. We'll take you inside the secret centers where your data is kept, next.

(COMMERCIAL BREAK)

FOSTER: All this week we are looking at the wonder of cloud computing and how it can change everything from how you do business to how you listen to music. On Monday we saw Apple unveil it's iCloud in San Francisco. They'll have to build a new data center in North Carolina to keep up with demand. And that is because even though the cloud is technically everywhere the data has to be stored somewhere. Emily Reuben got a tour of one cloud facility at a secret location here in London.

(BEGIN VIDEOTAPE)

EMILY REUBEN, CNN INTERNATIONAL CORRESPONDENT (voice over): Most data centers won't even let you get this close.

GRAEME CREASEY, OPERATIONS DIRECTOR, INTERXION: The level of security that we have around those servers I think is unmatched.

REUBEN: Interxion is one of Europe's leading cloud centers, housing the servers of more than 1,200 companies. Data from some of the world's largest financial institutions are here, as well as some of the transactions for the London stock exchange.

In order to ensure that nothing that can compromise security is shown CNN agreed to basic rules. One was that we had to be escorted. And we could only film in certain areas.

CREASEY: There is biometric and swipe card access, so it is extremely secure. Not to mention the 24/7, 365 security personnel that do walk around on the site.

REUBEN: This security device weighs you as you enter the building and weighs you when you leave. If you have taken something that doesn't belong to you, the alarm goes off.

We can't show you the outside of the building and we can't tell you where we are. If you were walking past, you would have no idea of what is inside.

CREASEY: We shy away from any advertising on the outside, purely from a terrorists threat point of view, we don't want to advertise what is going on here.

REUBEN: And this is what they're protecting, massive servers that make up the cloud. They are housed in what techies call hot and cold aisle containment. The cold air is locked inside to keep the equipment cool.

(On camera): This container houses the servers for one of the world's biggest banks. We don't know which one, because these containers are kept deliberately anonymous. It is part of the security measures here.

(Voice over): So how is the data kept safe? Well, it is encrypted of course, and there is back up power. Rows upon rows of batteries and rooms of generators. The center is close to London's financial center. And its location matters; the shorter the distance data has to travel down fiber optic cables, the quicker deals can be made.

KEVIN DEAN, CHIEF MARKETING OFFICER, INTERXION: When the market is highly volatile, the stock prices change very, very quickly. And if you can change-if you can actually sell or buy ahead of that change, or as early in that change cycle as possible, then you stand to make more money.

Our physical proximity to the exchange means you can do that more quickly. Just because the speed of light, from our data center, to the London stock exchange is actually shorter than it would be from another data center. So it enables you to get a head start on the market.

REUBEN: So what sort of cost saving are we talking about?

DEAN: You are typically talking about something in the region of $1 million per 0.1 millisecond.

REUBEN: So you could be saving millions of dollars, literally, just by having your servers here?

DEAN: When the market is volatile, yes.

REUBEN (voice over): The cloud may not look like much but inside these boxes the wheels of industry are turning and billions of dollars worth of deals are being made. Emily Reuben, CNN, London.

(END VIDEOTAPE)

FOSTER: One company offering cloud storage is Dropbox. Less than three years after being launched it has more than 25 million users who storage share their files on it servers. Dropbox CEO Drew Houston joins us now from San Francisco.

You have been going for some time now, haven't you? So the cloud is nothing new, is it?

DREW HOUSTON, CEO, DROPBOX: No, it has been around for a while.

FOSTER: You are one of the pioneers. What made you come up with the idea?

HOUSTON: I started Dropbox out of personal frustration. You know, like everybody else I was e-mailing myself files and carrying round thumb drives and thought that there had to be a better way. So, Dropbox is what we came up with.

FOSTER: Just reassure people who are learning about the cloud, just this week, that things are safe and you can access them and it works effectively.

HOUSTON: Yes, so with Dropbox, your files are always safe. We take great pains because security and reliability and privacy are the first things on our users minds, and the first thing on our mind. And you know, all of our most important information is on Dropbox, too.

FOSTER: One of my issues with it is it is not always accessible, is it? Because if you are underground, on a train, or somewhere where you can't get an Internet connection, it doesn't work. Does it? So it is not entirely reliable?

HOUSTON: Well, actually, Dropbox is a little bit different in that when you use it on your computer a copy of your files is always stored locally. So, you actually don't need an Internet connection at all times. When you reconnect it will do the right thing.

FOSTER: OK, we have lots of questions for you because the iCloud is certainly giving a lot of emphasis to your business, actually, this week.

HOUSTON: Sure.

FOSTER: Nicholas asks, what are your reactions to iCloud and how do you feel Dropbox can be different and relevant to IOS and Mac users.

HOUSTON: Sure, sure. So, you know, iCloud is a step forward for Apple. You know, a lot of people ask this question, but I think the services aren't really comparable. I think, if you look at the announcement. It is maybe hard for people to see, because it is not released yet. But it is not released yet. But it is really focused on making IOS devices and iTunes more convenient for people, and fixing some long withstanding user experience issues. But it doesn't let you kind of do the access and sharing across all devices that Dropbox lets you do.

FOSTER: But they know the brand a lot better, don't they? Aren't they going to just ditch yours and go for a compatible brand? The Apple users?

HOUSTON: I don't think so. I mean, we are Apple fans, too. But there is-you know, we have tens of millions of happy Dropbox users. And my mom, also-she has an iPad, but she also has, you know, a Windows PC and a Android phone. And people demand that whatever service they use works across all of them. And Dropbox, right now, is the only one that does that.

FOSTER: Just quickly one fans is Mum (ph), he says, will I be able to get more than 100 gig storage on Dropbox?

HOUSTON: We're working on it. Stay tuned.

FOSTER: Working on it. Thank you so much for joining us.

Now you might think a man can never have too much beer. But when it comes to selling sometimes less is more, apparently. We'll explain in "The Boss".

(COMMERCIAL BREAK)

FOSTER: Well, this week both our bosses are angling for promotion. Not for themselves, Steve Hindy is working out the best way to market his beer to those thirsty summer drinkers. Sarah Curran is helping other people push themselves forwards, to make the most of their talents. Let's catch up with them now in "The Boss".

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Previously, on "The Boss". Confidence and conviction, Sarah Curran introduced us to My-Wardrobe's new addition.

SARAH CURRAN, CEO, MY-WARDROBE.COM: I have to trust in what we've seen in him and why he's here.

UNIDENTIFIED MALE: And in New York, friends as partners, Steve Hindy tells us of the highs and low of going into business with an old friend.

STEVE HINDY, FOUNDER & PRESIDENT, BROOKLYN BREWERY: We were going to make this work even when it wasn't working.

UNIDENTIFIED MALE: Distributors are now free to order this on our new online POS store.

UNIDENTIFIED MALE: In Brooklyn, New York, Steve Hindy is meeting with marketing manager Ben Hudson. They are looking at ways to promote the company's summer ale, which is due to hit stores in time for beach weather.

UNIDENTIFIED MALE: We've got the can on the towel. It is not really a good cheap give away, so much, so we are using this sort of as like a raffle prize.

UNIDENTIFIED MALE: Steve makes this his priority. He knows a strong market strategy is a key weapon in creating buzz for his product.

HINDY: There is a lot more to it than just making a great beer. Getting that beer to the customer and creating a demand for that beer is the real tough part of the business.

UNIDENTIFIED MALE: In the early days Brooklyn Brewery spent promotion dollars sparingly. Today Steve has set aside $1 million for marketing. Part of the marketing plan, showcasing its pride in being a Brooklyn-based company. In the works is a large mural outside the brewery.

HINDY: So this is the wall. Any beer salesman looks at an empty wall like that and thinks, billboard. And you have to, you know? And it is our wall, so we can do what we want.

UNIDENTIFIED MALE: Yes.

Because it is our building a more subtle logo next to the hieroglyphics would actually be fine.

HINDY: You mean, like loosing the big logo?

UNIDENTIFIED MALE: Yeah, I don't know if we need that necessarily.

HINDY: I love the big logo.

(LAUGHTER)

I-I-you know, I think, more logos is better.

UNIDENTIFIED MALE: Right.

HINDY: And bigger logos are better.

UNIDENTIFIED MALE: You don't think that just because-since people know they are in front of the brewery that it is sort of beating them over the head with that branding?

HINDY: Yes.

(LAUGHTER)

HINDY: That's what I like.

UNIDENTIFIED MALE: Right.

HINDY: Want to try a little?

UNIDENTIFIED MALE: Yes.

UNIDENTIFIED MALE: One effective tool that has helped to grow his brands, limiting the sale of some of his beers.

HINDY: We make a beer around Christmastime called Brooklyn Black Chocolate Stout. If we made that a year-round beer, I'm convinced we wouldn't sell as much beer as we do making it a special.

UNIDENTIFIED MALE: A simple strategy and a profitable one at that. Sales at Brooklyn Brewery are up by almost 40 percent so far this year.

Soho, Central London is brimming with paparazzi. They are frantically snapping celebrities. As well as our "Boss", Sarah Curran. She is here to take part in Marie Claire's campaign, "Inspire & Mentor". A mentoring program that helps women get ahead, be it opening their own business, or growing a brand from scratch.

CURRAN: You can't underestimate how important a mentor is, because there are going to be moments where you just say I can't do this. And you don't-you kind of loose that belief in yourself. And you just need to-even if it is just to hear that someone else has been through that.

UNIDENTIFIED MALE: Sarah has been there. She remembers vividly the difficulties she faced trying to get her business off the ground. Guiding her along the way was her mentor, Elizabeth Hamond (ph), founder of her own head-hunting firm.

CURRAN: She helped me see that perception is, you know, is key. And it is about (UNINTELLIGIBLE) I know it is all kind of quite superficial, but I guess, in fashion, fashion is quite superficial. But it was also then the confidence and going with your gut instinct.

TRISH HALPIN, EDITOR-IN-CHIEF, MARIE CLAIRE: Now this room is hoped to be bursting at the seams with female role models.

UNIDENTIFIED MALE: Today is Sarah's turn to be a mentor and for the next six months she'll be making a difference, opening her door, and offering advice to her mentee.

CURRAN: I remember what it was like and it was bloody difficult. And also, not necessarily excelling academically at school. You know, you have the impression that business people, you know, you have it formulated in your mind. The reality is actually very different.

UNIDENTIFIED MALE: With confidence and experience, Sarah will be taking on the next big challenge, inspiring and mentoring, but she knows the learning curve is still a two way street.

CURRAN: I don't think you ever reach a point where you think I don't need anymore mentoring. You are never finished. You have always got to grow and learn, and learning is so important. So, I think it is a complete journey.

UNIDENTIFIED MALE: Next week on "The Boss", rethinking her customer. Sarah Curran learns the dos and don'ts of the male shopper.

And in Hong Kong, Michael Wu taps a famous face to help build his brand.

(END VIDEOTAPE)

FOSTER: When I return, some breaking news that we following for you. A few moments ago we told you that Syria's ambassador to France has just resigned. It seems that in a phone interview Lamia Chakkour quite her post live on French television. Chakkour denounced the cycle of violence in her country and criticized the government's crackdown on protests. She reportedly said, she no longer wanted to represent Damascus in France. But now, Syrian television is denying that. They just aired an interview, again, from a person identified as the Syrian ambassador to France saying she had not quite her post.

A lot of conflicting information out of there. Stay tuned with us for updates. We are trying to work it our for you.

Now Ford is planning for growth. Next, the company's chief exec tells us why he is betting Ford's future on a massive Asian sales drive.

(COMMERCIAL BREAK)

FOSTER: Welcome back. I'm Max Foster. You are watching QUEST MEANS BUSINESS. These are the headlines.

(NEWSBREAK)

FOSTER: The Ford Motor Company has outlined ambitious plans for expansion. By the middle of the decade, it hopes to expand its global sales to eight million vehicles a year, a 50 percent increase. Ford is basing its plan for growth on a switch away from trucks and SUVs to smaller vehicles and focusing on high targets for international growth, particularly in Asia.

Its biggest challenge is likely to be in China, a growing market where the company currently has less than 4 percent of overall sales.

CNN's Maggie Lake has been speaking with Ford's chief executive, Alan Mulally, in New York.

He insists that Ford's ambitious growth target is realistic.

(BEGIN VIDEOTAPE)

MAGGIE LAKE, CNN BUSINESS CORRESPONDENT: Ford came out with some very aggressive targets today -- a 50 percent increase, a third of that going to come from Asia.

What makes you so sure you can meet those targets?

ALAN MULALLY, CEO, FORD: Well, it's really a result of the progress we've made over the last five years, because we clearly have focused on -- on a new Ford to serve our customers around the world, and with a full family now of vehicles -- small, medium and large, cars, utilities and trucks. And every one of the investing class, we are now positioned now to serve the customers, especially in Asia-Pacific with the smaller vehicles.

LAKE: What do you know now about the Asia market that you didn't know, say, two, three years ago, because you do lag there?

MULALLY: Well, we've always appreciated the Asian market. We were relatively small as we focused on fixing our operations in Europe and in South America and the United States. And now, Ford is operating profitability all around the world. So now is a chance for us to accelerate our service to the Asia-Pacific customers.

LAKE: What does that mean?

Are you going to build out a network of dealerships?

Are you going to build the cars there?

What exactly does that mean?

MULALLY: The absolutely really neat thing about Henry Ford, when he set up Ford, was he wanted to operate in all of the countries in which he actually sold the vehicles, because he wanted to be a part of the fabric of the economy. He wanted to offer great jobs and great careers.

So we have a great presence in Asia-Pacific throughout the entire region. And so what we're doing there now is accelerating the implementation of not only the manufacturing but also the design and participating in the economy.

LAKE: These targets, this enthusiasm comes at a time when almost everyone you talk to is worried about a global slowdown, possibly a double dip.

What's your forecast for the economy?

MULALLY: Well, we see a gradual recovery, especially in the United States. It -- clearly, it's -- it's less of a -- a rate than what we had in the past for previous recessions. But we still see it in the 2 to 3 percent in the United States and even 3 or 4 percent worldwide. And, of course, in Asia-Pacific, it is -- it is the opportunity to really grow with the economy.

LAKE: You're not afraid of losing market share, even if consumers pull back, because there's every sign that they've just absolutely closed up those wallets and -- and are afraid to take risk. And cars are big ticket items. They're a big risk.

MULALLY: Well, you know, clearly, in the United States, it has slowed. But I'm really confident that with the fiscal and monetary policy and the attention that's being paid to the importance of the economy, that we'll continue with this expansion.

It's really neat in Asia-Pacific, though, because the fundamentalists are really solid for tremendous growth going forward. And the neat thing is that we're positioned with the right vehicles now to support not only the customers but the economy.

LAKE: A lot of those vehicles are small now.

MULALLY: Yes.

LAKE: This is such a difference from sort of the history of Ford, at least the recent history of the trucks and the SUVs.

Does that mean that the reality -- that high gas prices is the new reality?

That's not going away any time soon?

MULALLY: Well, I think that it really is a pretty neat transformation for Ford, because, you know, clearly, we are the preferred automobile company for SUVs and trucks in the United States. But all around the world, we've always made really neat small and medium sized cars.

So the neat thing about our One Ford Plan was we decided to serve all of the markets with a complete family of vehicles. So that's why you're seeing in the United States the new Fiestas, the Focus, the Fusion, the Taurus, the Escape, probably the best lineup of small, medium and large cars of anybody around the world.

And with our scale now, we can bring those vehicles to all the markets around the world and do it most affordably for the consumer.

LAKE: The car industry, when times get tough, has a tradition of why -- relying on incentives, right?

You sort of battle each other on price. You've tried to -- to get away from that. Do you think you can maintain your pricing ability, your - - your pricing model even in these slow times, when the competition is tougher?

MULALLY: Well, I think this is a very important question, because remember when we started five years ago, we were the first real company to actually size our production to the real demand. And in the past, the automobile industry has kept their production up, produced too many cars, had to use incentives to move the cars. And the most important thing is that we match our production to the real demand. So we took down the production during the recession. Now we're bringing it up.

Now, the neat thing about that is, from a consumer point of view, your residual values of your vehicles go up. So you -- your cars are even more valuable when we match the production to the real demand.

So we are never going back to those days of -- of making cars that are not needed in the marketplace.

UNIDENTIFIED MALE: The last question (INAUDIBLE).

LAKE: There's been some talk about the next head of Ford, your successor, will come from inside the company.

Are you planning on leaving, as people are talking about a successor?

MULALLY: Well, I love, you know, serving at Ford. And -- and I'm really looking forward to continuing to help support the expansion of Ford and serve our customers around the world.

LAKE: We'll take that as a yes.

(END VIDEO TAPE)

FOSTER: The head of Ford there speaking to us earlier.

Now, airline security has become dramatically tighter over the past decade and we could be seeing more big changes at the checkpoints.

So what can air travelers expect?

Well, Andrew Stevens gives us this preview from Singapore.

(BEGIN VIDEO TAPE)

ANDREW STEVENS, CNN CORRESPONDENT:

Welcome to the future, specifically, the checkpoint of the future. This is what IATA, which is the airline industry airline industry trade body, is hg will become commonplace around the world, a sort of one-stop shop for security from the curb to the gate, as they say, with dignity.

So how does it work?

Let's now ask Ken Dunlap.

Hello, Ken.

KEN DUNLAP, DIRECTOR, IATA SECURITY AND TRAVEL FACILITATION: Welcome.

STEVENS: Thank you very much.

You're head of security at IATA. Walk us through this.

DUNLAP: I want to show you the revolution.

STEVENS: OK.

DUNLAP: The first thing you need to do is identify yourself to our system.

STEVENS: Passport...

DUNLAP: Passport...

STEVENS: -- in here. It says it's normal. I'm a normal person.

DUNLAP: And that's the result of passenger pre-screening that's been done by your government. And it's also the result of the new traveler program that your government may choose to implement within your country.

STEVENS: OK. So I'm through this stage.

DUNLAP: And we have a smart system.

STEVENS: Through the normal channel?

OK, what do I do now?

DUNLAP: And we're asking you to identify yourself one last time. So you don't speak into the tunnel you don't belong into.

STEVENS: Passport in there, iris scan. This says everything is OK. I'm still...

DUNLAP: This says...

STEVENS: I'm still good.

DUNLAP: You're fine and you're clear to walk through the tunnel and receive your security scanning.

STEVENS: So I'm walking through the tunnel. The security scanning now with x-ray, metal detector, liquid detector, shoe scanner and explosive trace, which has just gone red. They've traced explosives on me. I've got a sign here that says, "alarm activated."

DUNLAP: Absolutely.

STEVENS: So what happens now?

I'm taken off and -- and extra checks are done, aren't they?

DUNLAP: So let me tell you what doesn't happen first. You're not going to have a security screener meet you and start patting down your person and perhaps violating your privacy or doing something that you would prefer not to have.

What we do instead is we have an additional security wing where a security official would come and meet you here and escort you to a second lane where you could continue to walk in the same fashion and receive additional and enhanced screening.

STEVENS: OK. So I assume I've gone through everything here clean.

I can now board my flight, is that right?

DUNLAP: You can board your flight.

STEVENS: And I'll walk through -- it's just a walking pace through all those different scanners?

DUNLAP: We want you to keep your stride. We don't want you to stop. And, in fact, we don't even want you to know that you're being security screened.

STEVENS: It sounds fantastic, obviously.

How realistic is it?

When can we see anything like this?

DUNLAP: Well, this is science fact and it's not science fiction. We think in about five to seven years, all the technology we need to build this will be available. But what's really exciting about this is most of the components that you see here can be taken to today's checkpoints and within two to three years, we could reassemble checkpoints, reintegrate them so you can get almost the same experience, maybe a third of the people in front of you in line move to different parts of security screening. And you can have that fast, enjoyable travel experience that we all hope for.

STEVENS: And it's not going to be prohibitively expensive?

DUNLAP: We need to work on the cost. But we know what's expensive right now. It's our passengers who have decided to not travel on our airlines on flights you need 500 kilometers. People are taking the bus. They're taking the car because they don't like security screening. And we want them back to enjoy the great experience about flight.

STEVENS: Ken, thank you very much.

DUNLAP: Thank you.

STEVENS: So there you have it, basically, a system which, if IATA has it right, will mean that passengers go from the curb to the gate, in their language, with dignity, without having to stop, without having to unpack, without having to strip, without having to be worried about being groped.

Andrew Stevens, CNN, Singapore.

(END VIDEO TAPE)

FOSTER: The things Andrew worries about.

We want to return to some breaking news we're following for you now.

First, we learned that the Syrian ambassador to France had quit her post live on French television, citing the violence back home. But then Syrian state TV had their own interview refuting that.

Let's bring in Arwa Damon, who's in Beirut, to make sense of it all.

Who's the real ambassador -- Arwa?

ARWA DAMON, CNN CORRESPONDENT: Well, Max, it's very difficult for us to forget exactly what is happening. But it was certainly a very bizarre twist of events. We did first hear from Lamia Chakkour on France 24, where she said that she could no longer support the cycle of violence, the deaths of the demonstrators, the pain being felt by Syrian families. She said that she had informed the personal secretary of Bashar al-Assad of her intent to resign and then went on to say that her resignation as the Syrian ambassador to France would be effective immediately and then went on to invite President Assad to convene opposition leaders to form a new government.

Less than an hour later, Max, we heard her on Syrian state television -- someone identified as -- as her on Syrian state television saying that she would be remaining the ambassador for Syria for as long as she lives and as long as she can, saying that she would then be suing France 24 and giving all of the money to the children and to the martyrs.

But again, a very murky, bizarre situation here revolving around what is possibly happening in Syria -- Max.

FOSTER: OK, Arwa, thank you very much, indeed, for that.

Hopefully, we can get some clarity for you as the day goes on.

Now, coming up, zero tolerance -- Sepp Blatter says he will stamp out corruption in football. And exclusive interview with the FIFA president just ahead.

(COMMERCIAL BREAK)

FOSTER: Well, he may have been the only candidate in FIFA's presidential race, but Sepp Blatter still believes he's the right candidate to deal with alleged corruption in football's governing body.

In an exclusive interview, the FIFA president met one-on-one with CNN's Alex Thomas.

(BEGIN VIDEOTAPE)

THOMAS: Mr. Blatter it's been a turbulent couple of weeks for FIFA.

Why are you the right man to lead world football for the next four years?

BLATTER: I'm the right man because the development of football in the past and what we have done in the years of my presidency, but also in the years of all the development together with Joao Havelange, we are now somewhere where the football needs a little bit more of, I would say, more credibility, because we came building up football, bringing so much money in to this game. Automatically a lot of devils came in to the game. And - - and now we are in a situation where, really -- and I explained to the congress. And I'm happy that the congress understood what I have said.

We have to go forward and we have to cut all these allegations and criticism, whatever. We cannot do it in one day. But -- but we will do it and then coming back why I am the man there, because there was no other -- other possibility. There was -- they had to elect a president and at the end, I was the only pre -- the only candidate.

THOMAS: Would you like to have had a ri -- a rival for the election?

Would it have been nice to have an argument, to have a discussion and have a debate about it?

BLATTER: You see, I was prepared to go in this dual election. And it's always so, if you win without -- without the battle, it is finally you have the title without glory.

THOMAS: And improving FIFA's image is your number one priority, is it?

BLATTER: Yes. I had in my -- in my manifesto, if this could be a manifesto, I have said something else. I have said zero tolerance is one thing. But I have also said the social, political -- social and cultural implementation of football is important. But now it's to rebuild the image of FIFA that's number one. And I have already started.

THOMAS: You'll understand there were a lots of unanswered questions in last week's FIFA congress. Firstly with Mohammed Bin Hammam and Jack Warner, they're suspended. FIFA is investigating the allegations, which is why they've been suspended.

How surprised were you?

These are two men that have been close friends down the years, aren't they?

BLATTER: Yes. We are friends, but friends going together when -- when it is in the interests of some of the people. For me, going together with people, it's only the interests of FIFA, first of all, because I represent FIFA since 36 years. It's -- it's my -- my FIFA or the FIFA I did (INAUDIBLE)...

THOMAS: And it's your family, isn't it?

You talk about FIFA's football family.

Are you happy, then, that Mr. Warner has said he will not release a football tsunami?

BLATTER: But I'm -- I'm -- you know, this is a question of -- of -- of character. If you have a problem inside your family, you are not going to disclose if there are anything to be -- to be disclosed to the public. And -- and what the...

THOMAS: But that would help transparency, wouldn't it?

If -- if things were made more public, it would help FIFA be more transparent?

BLATTER: Yes, but I -- but I don't know what he means by the tsunami. Its easy to say. It's -- it's like allegations made by -- by Lord Triesman, on the one side, by one of your colleagues in the media on the other side in England. These are allegations and -- and there is no evidence.

So if somebody says it's a tsunami, you know there are also very little tsunamis.

THOMAS: What about your general secretary, Jerome Valcke?

Is there anything more to look into over the email that was released to the media last week?

BLATTER: No. For the time being, nothing. I will take -- I said I will take up this item once the congress is over. The congress is now over. So this week, during these days, I will have a look on that.

THOMAS: You can't tell us at the moment how you feel about that sentence when he suggested that Qatar bought the World Cup?

BLATTER: No. No. No, I -- it's -- it's an open -- an open issue and I will not comment it for the time being.

(END VIDEO TAPE)

FOSTER: Well, from one sporting controversy to another -- the former head of FIA believes there's no chance of the rescheduled Bahrain Grand Prix going ahead. The race was postponed in February because of the deadly protests there. But last week, it was penciled back in for October.

Max Mosley told "WORLD SPORT'S" Don Riddell that Formula 1's ruling bodies would come to regret that move.

(BEGIN VIDEO CLIP)

MAX MOSLEY, FORMER PRESIDENT, FIA: I think that the decision was the wrong one. And I think it's going to be reversed. So I don't think there's any chance there will be a Bahrain Grand Prix on the 30th of October. And I think it most unlikely there will be one this year.

DON RIDDELL, CNN CORRESPONDENT: You say the decision was a wrong one. I gather it was a unanimous decision at the Royal Municipal Council last week.

How did they arrive at that decision?

MOSLEY: Well, they sent a representative to -- to Bahrain. That was somebody called Carlos Gracia, who's a very nice man. He's been head of the Spanish Federation for a long time. But he speaks no English and he speaks no Arabic. And, of course, he was in the hands of the government the whole time.

And he's not somebody who would have a background to be able to look into the thing as it should be looked into, visit the Shiite villages, ask to see the people in detention, talk to these doctors that have been arrested and so on.

So he came away with the impression that all is fine and all is peaceful, which, according to all of the credible reports, it's not.

RIDDELL: What kind of power do the teams actually have, because we do seem to be getting quite a palpable sense that they don't want to go, whether it's for a moral argument or an -- or a safety argument.

But what are they going to be discussing and what's their next move?

MOSLEY: Well, the teams have complete power in this particular case, because although the governing body can cancel an event for reasons of force majeure, as happened in the case of Bahrain. Obviously, it was necessary to do that. When you want to put an event on or you want to move an event, that's a change to the conditions under which the teams entered for the season.

Now, that's like any contract, you can only change it if both sides agree. So all 12 teams would have to agree to change the Indian date and go back to Bahrain.

So it only takes one team to say I don't agree and that would be the end of it. It would not be possible for it to happen.

RIDDELL: How damaging has this whole episode been for Formula 1 and for the FIA, do you think?

MOSLEY: I think if it -- if it gets reversed quickly and people understand what's going on in Bahrain and act accordingly, I don't think it will do any damage at all. It will just show what -- a mistake was made but it was quickly put right.

If Formula 1 were to persist in the idea of having a race in October, I think it would do enormous damage because I think there would be protests at various European and other races. Some of the sponsors would come under pressure from their customers, and, therefore, put the teams under pressure.

I think it would be very difficult to predict how far it will go. And on top of that, I think there's a high likelihood -- I think Mark Webber is right -- a high likelihood you would have some really unfortunate incident when the race took place. But, of course, happily, I think that's academic.

RIDDELL: You really are sure this is not going to happen?

MOSLEY: I'd be astonished if it happened. It just -- it would be contrary to the rules. It would be contrary to Article 66 of the International Sporting Code. It would be, apart from any other consideration, the -- send a completely wrong message about what Formula 1 is there for and what -- what our sport is all about.

(END VIDEO TAPE)

FOSTER: You can see Don Riddell's full interview with former World Motorsports chief, Max Mosley, tonight on "WORLD SPORT." That's 10:00 in London, 11:00 in Berlin here on CNN.

Also, expect to hear more about this. We've just heard that Tiger Woods will miss the 2011 U.S. Open. Some concern about injuries. But we'll have more on that in (INAUDIBLE) ball for you.

(COMMERCIAL BREAK)

FOSTER: Potentially life-saving vaccines could become much cheaper for children in the world's poorest countries. In a move that will save donors billions of dollars, drug makers have announced plans to cut the price of some medicines by up to 67 percent.

Christian Purefoy has been to a hospital in Lagos in Nigeria to find out what it could mean for patients there.

(BEGIN VIDEOTAPE)

CHRISTIAN PUREFOY, CNN CORRESPONDENT: Who -- who are we talking about here?

Who's going to benefit in Nigeria from the reduction in price of vaccines?

DR. BODE ALI ABDULLAH SALEH, GOLD CROSS HOSPITAL: I think the -- I would say everybody will benefit from that because a healthy nation is a nation that is ready to develop. So it's, directly, maybe, the people in the lowest economic group would benefit directly. But on the long run, it's going to efficient everybody. And I think the benefit is going to be felt all around the country.

PUREFOY: And what sort of problems are we talking about here with vaccines?

You know, with the patients you're seeing and the vaccines you need, what are the main problems?

SALEH: You're talking about the childhood illnesses, polio, which is a big problem. You're talking about diphtheria, you're talking about patuses (ph) and whooping cough, you know. We're talking about measles. These are disease that are easily preventable but because of the (INAUDIBLE) says because of finance to vaccines, that patients come down with these illnesses.

PUREFOY: And what about other problems that you have to try and break in Nigeria?

You know, as you're saying, so it's just -- it's not just economic, is it?

SALEH: It's not just economic. There is also the -- there is also the knowledge. There's the apathy. People are not even aware. People don't even know the importance they have felt -- they -- I mean like some of the problems we have in Northern Nigeria, where was a protest against polio, people need to understand the importance of these vaccines. They will all need to know that, look, there is a huge cost. When you -- when a child has polio and because of that has paralysis, the cost is not just limited to the family. It affects the nation, because we don't know what potential that child has.

(END VIDEO TAPE)

FOSTER: Well, on the eve of a crucial meeting of the OPEC nations, the OPEC committee is recommending the world's top oil producers ramp up their output. The global stretch for demand has pushed prices up well over $100 a barrel. Today, Brent crude is up almost $3, at $117 a barrel.

If OPEC nations agree to increase their output, that could ease the pressure on prices.

We'll bring you all the news from the OPEC meeting in Vienna on Wednesday.

John Defterios will be there for us.

That's tomorrow on QUEST MEANS BUSINESS.

Right now the weather with Guillermo -- hi, Guillermo.

GUILLERMO ARDUINO, CNN METEOROLOGIST: Yes, I was looking at what's going on in South America, particularly in Argentina, Brazil, Uruguay and Chile, because we have dramatic pictures coming from there, with the eruption of this volcano in Chile. Actually, this picture shows how active and how massive the action is.

And the result?

In Argentina, in Patagonia, you see that?

It's ash.

Now, the Chilean authorities are evaluating the situation concerning the immediate future, the immediate forecast. And what they see is that the activity is going to go down in terms of its itsy. And it's tied to the seismic activity. We are getting 10 hits per day, which, according to authorities in Chile, it's pretty good.

Well, at the same time, this -- what you see on the ground -- if it rains, it's going to solidify. That's why they are very concerned about the forecast. I have to say that we have some rain moving in. And it's typical at this time of the year.

So you see here that Puyehue-Cordon Caulle Volcano in the Andes, very new mountains, relatively new, and the ash, along with the winds, is going to densely populated areas, where we have a lot of air traffic, that is to say, Brazil, Argentina or all those flights that are regional in the area.

Because of a trough of low pressure, the ash is being pumped on toward the other side, the other coast. And you have the city of Bahia Blanca, the city of Mar del Plata, major centers that are affected. And because of the altitude of the ash, international flights have been canceled, as well.

This is the warning for the next hours. And you see that there's where we can expect problems. It is -- when you look at it, you think that geographically speaking, it's not bad. But we're talking about very high levels. It encompasses a great area of the southern cone of South America. And with the winds, the ash may be pushed northward in a northeasterly fashion. And that is going to bring about problems.

And this is the rain that I was talking about. So with the existing ash there on the ground or in the atmosphere, we may see a cement pad forming with a combination of water and the existing ash.

Let's -- let me move on to Europe. You see the east is still quite warm. Thirty is the high for Kiev on Wednesday. Berlin is in better shape. But we have some warnings, because as you see, the temperatures continue to the be well above average. We're talking about seven degrees, in some instances. And the low temperature is what -- or very close to where the high temperature of the day would be. And Warsaw, the same thing. And we are getting some refreshing rains, you see, especially in the central parts of Europe, but it's going to take some time, into midweek, this is the forecast. And the heat continues in the extreme east -- Max.

FOSTER: Guillermo, thank you very much, indeed.

ARDUINO: You're welcome.

FOSTER: We've just had some statements through from Tiger Woods we want to bring you, the world's most prominent golfer. He's pulled out of next week's U.S. Open due to injury. It's just happened. And Woods is 35 years old. He says it's time to listen to my doctors.

In a statement, Woods says: "I was hopeful that I could play, but if I did, I risk further damage to my left leg, my knee and Achilles's tendon are not fully healed. I hope to be ready for the AT&T Nashville, the next two Majors and the rest of the year.

On his Twitter account, he say: "Not playing in U.S. Open. Very disappointed. Short-term frustration for long-term gain."

More on that later for you on "WORLD SPORT".

That is QUEST MEANS BUSINESS, though, for tonight.

I'm Max Foster in London.

Stay with CNN for "PIERS MORGAN TONIGHT," featuring an interview with Mitt Romney.

END