S&P Breaks Another Record; Thailand, Qatar Criticized for Human Trafficking; Islamic Insurgents Take to Social Media
PAULA NEWTON, CNN INTERNATIONAL ANCHOR: The S&P breaking another record and the Dow so close to 17,000. It's Friday, the 20th of June. Blacklisted - Thailand and Qatar are told their records on human trafficking are abysmal. As Islamic insurgents take to social media, Twitter founder Biz Stone that CNN sites like his must remain neutral. And, it's elementary my dear, viewers. Sherlock Holmes is no longer subject to copyright. I'm Paula Newton, and this is "Quest Means Business. Good evening. Two damning reports lay bare the extent of the crisis facing the world's most vulnerable people. From the U.S., claims that more and more countries are failing to prevent or even fight human trafficking. And from the U.N., a grim milestone in the global refugee crisis. Remember this now, the number of people forced to flee their home tops 50 million for the first time since World War II. Now, that number is likely to climb with more than one million people already on the move by the intensifying violence in Iraq. Now, we start in Washington where the State Department says the list of countries failing to tackle the scourge of modern-day slavery is getting longer. Now, the countries shown in red are ranked as tier 3 countries - the worst possible designation because they've not done what they have to do to try and combat slavery. Now, they are joined this year by more countries, and that is Thailand, Malaysia, Gambia and Venezuela. Now, the State Department says those countries do not meet minimum standards and are making no effort to improve. Now, the U.S. can penalize tier 3 countries by withholding some foreign assistance. Secretary of State John Kerry says not even the U.S. is immune.</s>JOHN KERRY U.S. SECRETARY OF STATE: For years we have known that this crime affects every country in the world, including ours. We're not exempt. More than 20 million people -- a conservative estimate - are victims of human trafficking. And the United States is the first to acknowledge that no government anywhere yet is doing enough. We're trying. Some aren't trying enough. Others are trying hard, and we all need to try harder and do more.</s>NEWTON: Now, an important financial component to this is that human trafficking is an industry, yes, an industry, that generates a shocking $150 billion profit each year. Now, that's according to the International Labor Organization. Two-thirds of the profits come from sexual exploitation. Economic exploitation like domestic and agricultural work generates the remaining third. Now, profits are highest in Asia, estimated at just under $52 billion, but almost a third of that $150 billion we were telling you about, it generated in the European Union and other developed nations. Now, Justin Dillon is the founder and CEO of Made in a Free World. It's a network of people and businesses who want, as they say, make freedom go viral. And on Friday, you got a very public endorsement from the U.S. Secretary of State.</s>KERRY: That's why we're partnering with MadeintheFreeWorld.com - MadeintheFreeWorld.com - in order to develop a risk assessment tool that will help business leaders weigh the risks of trafficking throughout their supply chains.</s>NEWTON: Justin now joins us from Washington. Thanks so much for joining us. It really was quite a callout today but a lot of expectation riding on your shoulders as well. You know, the Secretary was very clear - he's saying even developed countries can't be arrogant about this. It is so difficult. People and companies wanting to do their best, not wanting to contribute to human trafficking - how do you verify where it's going on and how to stop it?</s>JUSTIN DILLON, FOUNDER AND CEO, MAKE IN A FREE WORLD: Well I appreciate the Secretary's remarks today, and I think it is a clearing call for us to be - to work as hard and as smart as those who are making profits off the back of innocent people. I think one of the things that we've not been - done a very good job with - is be innovative. Those who are making profits in - off of - slavery are fantastically innovative, fantastically committed to it, and we have an opportunity to do the same. And the launch of our - of the beginning of our tool and partnership with State Department is just the beginning to be - to get one step ahead of the traffickers.</s>NEWTON: OK, if I'm a company or consumer and I want to know how are you going to help me to know what I should be avoiding and what I should be doing in order to make sure my businesses are making people free or at least keeping people free?</s>DILLON: Yes, I think the first thing to do is to know. You know, a couple years ago we released a website called SlaveryFootprint.org where we asked the world do you want to know how many slaves work for you? And it started a firestorm of questions. Do companies know about their own supply chains? So for the last two years, we've been going deep into spin data that the U.N. has put out and be able to do risk assessment on every type of expenditure that a company makes. Not only in the consumer to business market, but in the B to B market where really most of the $88 trillion that is spent a year is used. So we really see this as a way to start to leverage consumption with intelligence based off what your - companies knowing what they're spending and then using their purchasing power downstream to be able to root out the illicit markers - markets, excuse me.</s>NEWTON: What do you think is your best tool at this point? Because we just explained what's at stake -- $150 billion. You know what you're up against.</s>DILLON: Yes.</s>NEWTON: I mean, this is really making money for a lot of people.</s>DILLON: Yes, it is. And it's going to be hard to fight that amount of profit with charity alone. So we just have to work smarter, we have to make our dollars go further. The amount of money, the bag of money, that I'm most excited about is the $88 trillion in play in the marketplace. And if we can begin to leverage our consumption, through the use of data, through the use of predictive analytics which we're just getting started on, these are the place - these are the types of tools that we use inside of business to handle all other kinds of risk. What we're asking the business community is let's get smart around this as well and start using those same tools to be able to make great decisions for people who basically produce our lives.</s>NEWTON: In terms of trying to audit what's going on, you know, CNN we have this freedom project here for years. We've been trying to get to this issue. Sometimes we revisit a story, there are people that were no longer victims, you return in a year, they're victimized again. Then in Pakistan where they make footballs, I've been in Africa where they're in nurseries -</s>DILLON: Yes.</s>NEWTON: I find it very difficult to verify if I'm being told the truth about the people are being treated and what's going on in their lives. Will you be able to get to those victims to make sure they have a voice that they feel comfortable sharing their stories?</s>DILLON: Well, think supply chains are the best chance for us to build a value chain - all the way down to the bottom. And keep in mind you're talking - companies can't do this alone. They have to work with the local governments, and those local governments have to enforce those. But really this is about influence, it's being able to leverage our influence. So the verification comes over time, and I think that word needs to be used very carefully. And I even think the word certification needs to be used very carefully. These are older ideas, and for us, we need to start looking and be more proactive using leading indicators to be able to create the influence that we want to create. And over time - and that's why we believe in the power of a network, that's why we believe data, software and communities - is really the way to be able to create that network of freedom that we can start to see over years.</s>NEWTON: Oh, we certainly wish you every success, and understand the great challenges ahead of you. We'll continue to keep track. Thanks so much for your. Appreciate it.</s>DILLON: Thank you.</s>NEWTON: Now still to come on "Quest Means Business," as the global refugee crisis hits a new high, governments and aid groups are pushed to the breaking point. We'll hear from the U.N. High Commissioner for Refugees. That'll be up later in the program. Now, to the U.S. markets. And it's shaping up be a high-five week for investors. Now, the S&P hit, yes, another record - another one. And the Dow touched its own intra-day record before falling back down. Now, tech stocks seemed a little bit less excited. The NASDAQ was dragged down by poor performance by Oracle. You see the Dow Jones Industrial average there now. Up 25 points today, it had been up quite a bit more, but still given a week where we had so much geopolitical risk, the market, those bulls, still very - really running roughshod over Wall Street these days. We'll wait to see what happens on Monday. Now, European markets had a mixed day. The FTSE and Zurich SMI closed higher, but it was a different picture in France and Germany. Now, the French government has picked up what it wants in terms of buying Alstom, and it's taking its own piece of the action too. In Paris, the French government has agreed a deal for the state - for the state - that's the French government - to take a 20 percent stake in Alstom. In return, they'll allow approval of the GE takeover bid. Now, the two firms will embark on joint ventures in steam turbines, renewable energy and electric grids for General Electric based in Fairfield, Connecticut. The deal is its biggest ever purchase in Europe, and it's currently reviewing the French proposals. What's on the table pushes out Siemens which is based in Munich. It was hoping to launch its own rival bid in partnership with Mitsubishi.</s>ARNAUD MONTEBOURG, FRENCH ECONOMY MINISTER, VIA TRANSLATOR: The conditions we're about to disclose to General Electric's CEO, Jeffrey R. Immelt, will reaffirm our patriotic vigilance. These conditions are tough but they are necessary.</s>NEWTON: After the break on "Quest Means Business," as well as the civil conflict, there's a cyberwar going on in Iraq with ISIS turning to social media to try and garner support. We'll come back with one of Twitter's co- founders as he defends the freedoms of social media.