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QUEST MEANS BUSINESS
U.N. Security Council Meets on North Korea; U.S. Warns U.N. Over Trade with North Korea; Indian Prime Minister Makes Historic Visit to Israel; Colombian Town Tries to Help Suffering Venezuelans; Laptop Ban Lifted for Emirates, Turkish Airlines but Not Qatar. Aired 4-5p ET
Aired July 5, 2017 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00] VLADIMIR SAFRONKOV, RUSSIAN DEPUTY AMBASSADOR TO THE U.N.: -- there is balanced addressing of all existing concerns, upon all sides, to
strictly comply with obligations set forth in regional statement from 19 September 2005. A swift relaunch of dialogue for a comprehensive solution
to the issue of Korean Peninsula. The possibility of taking military measures to resolve the problems of the Korean peninsula should be
excluded. We express our support to the idea of North and South Korea engaging in dialogue and consultations, demonstrate good will, improve
relations, carry out cooperation for a peaceful solution and play their due and accountable role in deescalating the situation on the Korean Peninsula
and resolve all pending issues.
We pay due attention to the support or striking of international and regional balance and stability. Allow me to stress, alliances between
certain states should never be made to the detriment of the interests of third parties. We're against a military presence from extra regional
forces in Northeast Asia. And the deployment under a pretext of countering -- and deployment of certain systems under a pretext of countering the
military and missile program of the DPRK. The deployment of a THAD system in Northeast Asia is a serious hit to the strategic stability of the
region, including for Russia and China. And certainly, doesn't serve to denuclearize the Korean peninsula, based on the principle of ensuring peace
and stability in the region.
We are against the deployment of said systems and call upon relevant sides to swiftly halt and cancel the deployment process. All measures should be
taken to ensure and protect the interests of the two countries and security. But also strike strategic balance in the region. It is of
utmost importance for us -- rather it is utterly clear for us that any attempts to justify a military solution are inadmissible. They lead to
unpredictable consequences for the region. In the very same manner, attempts to economically strangle North Korea are equally unacceptable as
millions of people are in great humanitarian need. The U.N. plays its role here. There must be a de-politicization of humanitarian efforts.
In summary, sir, all must acknowledge that sanctions will not resolve the issue. In that manner, we simply rush towards a stalemate. Just as any
attempts to resolve the situation through force aren't admissible. We need to take into account DPRK's concerns for security. At this time, it is
important to leave behind the dangerous logic of confrontation and together seek a solution on the basis of a comprehensive political solution to the
DPRK issue, including the matter of the DPRK's nuclear missile programs. Here China's proposal for the dual suspension and parallel progress as well
as the Russian roadmap for a DPRK solution including the gradual establishment of a peace mechanism for the region and denuclearization of
the DPRK we think is an appropriate launch pad for such talks. We call upon all to participate in this work. Thank you.
LIU JIEYI, CHINESE AMBASSADOR TO THE UNITED NATIONS (through translator): I thank the representative of the Russian Federation for his statement.
Now give the floor to representative for Bolivia.
BOLIVIAN REPRESENTATIVE: Thank you very much, Mr. President.
RICHARD QUEST, CNN HOST: So, there you have the Russian Ambassador to the Security Council to the United Nations putting the position of Moscow,
which obviously aligns very much with the position of China and Beijing. We're waiting to hear from the Chinese Ambassador, and we're waiting to
hear from the South Korean Ambassador. And when both of those speak we will obviously bring them to you. That meeting taking place at the United
Nations at the moment.
It is a busy hour ahead. We're very glad that you're with me. Donald Trump is due to arrive in Poland by my reckoning in about ten minutes from
now. You've got the Security Council meeting in New York here on North Korea where the United States has made it clear that it sees trade as the
tool to bring Pyongyang into line.
[16:05:00] Now listen to what the U.S. ambassador to the U.N. warned on the military options that are on the table if the North does not stop
threatening other nations. Nikki Haley said, President Trump saw trade as the key to tackling the problem and sent a warning to those who would do
business with North Korea.
(BEGIN VIDEO CLIP)
NIKKI HALEY, U.S. AMBASSADOR TO THE UNITED NATIONS: One of our capabilities lies with our considerable military forces. We will use them
if we must. But we prefer not to have to go in that direction. We have other methods of addressing those who threaten us and of addressing those
who supply the threats. We have great capabilities in the area of trade. President Trump has spoken repeatedly about this. I spoke with him at
length about it this morning.
(END VIDEO CLIP)
QUEST: Now, on Twitter on Wednesday morning Donald Trump made it clear that trade is the lens through which he sees the world's major problems.
And if you join me at the super screens, you'll see exactly what I mean. And bearing many in mind what you've heard Nikki Haley just say. And
bearing in mind what you just heard the ambassadors just say. So, start off on North Korea. On North Korea Donald Trump has called out China for
trading with Pyongyang. He wrote, so much for China working with us. Moments ago, the Ambassador to the United Nations said countries who trade
with North Korea will face consequences from the United States.
(BEGIN VIDEO CLIP)
HALEY: There are countries that are allowing, even encouraging trade with North Korea in violation of U.N. security council resolutions. Such
countries would also like to continue their trade -- such countries would also like to continue their trade arrangements with the United States.
That's not going to happen. Our attitude on trade changes when countries do not take international security threats seriously.
(END VIDEO CLIP)
QUEST: So, the North Korea issue, the Chinese influence all very much on a trade related basis. Donald Trump also hit against trade deals done by
previous administrations, NAFTA, TPP, TTIP. He asked why should we continue deals with countries that don't help us? What he describes as the
worst deals in history. And those trade relations, by the way, will all be very much on the agenda at the G20. Angela Merkel writing about that only
today saying that the view of Europe and the view of her government very different globalization view from the zero-sum game view of Donald Trump.
And talking of zero-sum games on the trade front, the IMF is warning that the zero-sum policies will hurt everyone and the G20 must avoid
protectionism. There's no way of getting around it, trade is going to be the big issue. As one man knows about trade, you, sir, have certainly
negotiated more trade treaties and had to stay awake through trade talks, it's Kevin Rudd, the former Prime Minister of Australia. This focus on
trade that's going to be at the G20, and yet from diametrically opposed views in many ways from the U.S. and from Europe and the rest of the world
as Merkel made clear.
KEVIN RUDD, FORMER AUSTRALIAN PRIME MINISTER: Well, if you want to crash the global economy, the best way to do it is start a trade war. That's the
bottom line logic. We know that. That's what our predecessors did in the 1930s coming out of the stock market crash of '29-'30.
QUEST: But there's nothing wrong with Donald Trump saying that the trade treaties that the U.S. currently has are not today in the best interests of
the United States.
RUDD: Well, the trade treaties signed by the U.S., like everyone else including my country, Australia, all have provisions within for dispute
resolution including antidumping, including on things like steel. So, if there's a concern in D.C. about that, then there are mechanisms available
to do that. The flip side is if you start a general trade war by a series of punitive tariffs, what I know from history is that you tend to generate
retaliatory action. Once you got retaliatory action running, then frankly you're at the early stages of a trade war and that is bad given that the
trade secretary of the economy equals big slice of global growth.
QUEST: Again, looking at the G20, nobody wants a trade war, but as the U.S. sees it there's nothing wrong with saying they want fairer trade.
RUDD: No, not per se. And if there's a case on antidumping, for example, against the Chinese on steel, then make the case based on the facts.
QUEST: You know as well as I do making the case in a trade negotiation -- or a trade dispute at the WTO you have time to get married and divorced
several times over.
[16:10:00] RUDD: Let me give you a micro example, Richard, to prove that you're wrong. And that is take two ferocious countries, Australia and New
Zealand -- that's a joke, working out a trade dispute between them, big issue, apples. Guess what, the kiwis won, proved we were doing bad things
and as a result we had to open our doors much wider to take in kiwi apples. We both played by the rules. There are 1,000 examples of that happening
around the world, from small ones like that to much bigger ones. The alternative, as you know, my friend, is that if you don't have rules for
trade and dispute resolutions for it, then you end up in chaos land.
QUEST: But, again, let's take the relationship the U.S. trade treaty with South Korea. Now, I'm not as familiar with it as many, but the deficit
that are currently -- the bilateral deficit, the U.S. believes is as a result of an unfair side, one sided nature to that. There's nothing wrong
with the President saying to the South Korean President, we need to renegotiate this treaty.
RUDD: KORUS, the Korea/U.S. trade agreement has been around for some years. The performance of each country on exporter or import, I don't
think has got a lot to do with the terms of that treaty. It has to do with, frankly, whether your goods and services are in demand or not.
Let me give you the parallel example. We Australians have had a bilateral trade deficit with the good old U.S.A., for decades. Do we run around the
place saying the sky's about the fall in, those dreadful yanks selling us a whole lot more than they're buying from us? No, because that is as you
know pure mercantilism. Once you start down that road, you start in a direction that says, unless I've got a surplus with you, the whole trade
relationship is bad. That's nonsense. We escape from that thinking about 30 years ago. Where the President is right, however, is to make sure the
laws and the rules of the global trading system are properly enforced. If you've got a case on anti-dumping on steel, go for it.
QUEST: Good to see you, sir.
RUDD: Good to be with you.
QUEST: Really good to see you. We need to return to the United Nations where the Ambassador from China is now addressing the council.
JIEYI (through translator): . of the Korean Peninsula. The joint statement put forward the joint initiative of our two countries based on
China's dual track approach and the suspension for suspension proposal and the Russia step-by-step plan.
The current situation on the Peninsula is complex and is sensitive. And the dialogue process is in a standstill. The China/Russia joint initiative
is aimed at addressing both the symptoms and the root causes and taking integrated measures to strive for a solution. It is objective, fair,
reasonable and feasible. We hope that it will get the support of the international community. And help open a realistic route towards the
resolution of the problem of the Korean Peninsula.
China has always insisted on realizing the denuclearization of the Korean Peninsula, maintaining peace and stability on the Peninsula and seeking
solution through dialogue and consultation. China has always been firmly opposed to chaos and conflict on the Peninsula. Military means must not be
an option in this regard.
The deployment of THAD anti-missile system in Northeast Asia seriously undermines the strategic security interests of regional countries including
China. As such, it's not conducive to the realization of the denuclearization of the Peninsula and the regional peace and stability.
China urges the countries concerned to halt and cancel this deployment immediately.
Denuclearization of and lasting peace and stability on the Korean Peninsula are in the interests of all parties. We hope that the parties concerned
will work together with China, play their due role and shoulder their due responsibility with a view to returning the issue of the Korean Peninsula
to the right track of peaceful dialogue at an early date. I'd resume a function as president of the council. I now give the floor to the
representative of the Republic of Korea.
CHO TAE-YUL, SOUTH KOREAN AMBASSADOR TO THE UNITED NATIONS: Thank you, Mr. President. At the outset, I would like to thank the Chinese presidency for
convening today's meeting. My delegation is grateful for this opportunity to participate in this emergency meeting to address the serious and urgent
issue of the DPRK's launch of a ballistic missile of intercontinental range on the third of July.
[16:15:00] It is deeply regrettable that the DPRK responded with yet another even more serious provocation to the repeated message from the new
government in Seoul under the leadership of President Moon Jae-in emphasizing the need for peaceful resolution of the issue, and its
willingness to engage in dialogue under the right circumstances. It is also a source of our profound disappointment that DPRK once again has
chosen the wrong path by test firing another long range ballistic missile just a few days after the ROK/U.S. summit meeting in Washington on June 30,
2017. During which the two leaders called upon the DPRK to refrain from provocative destabilizing actions and rhetoric and to make a strategic
choice to fulfill its international obligations and commitments.
The Republic of Korea condemns in the strongest terms the DPRK's latest provocation as a flagrant violation of relevant Security Council
resolutions. We urge the DPRK to no longer test the wavering resolve of the government of the Republic of Korea as well as international community
to achieve d denuclearization on the Korean Peninsula.
The DPRK's repeated provocations in defiance of multiple Security Council resolutions will only strengthen the resolve of the international community
and be met with a more resolute response. Pyongyang must realize that it's obsessive pursuit of nuclear and missile provocation programs and continued
provocations will only serve to worsen its diplomatic isolation and deepen its economic plight.
Mr. President, given the urgency and gravity of this issue, we, the international community, must once again demonstrate our strong resolve not
to tolerate the DPRK's nuclear and ballistic missile programs, which have become a global threat that requires global action. In this regard, I'd
like to refer to the Security Council's previously expressed determination that it will take further significant measures in the event of a further
DPRK nuclear test or missile launch.
Indeed, we must take stronger measures including a new Security Council sanctions resolution to stop the DPRK's provocations. At the same time,
the need for swift, full and thorough implementation of the sanctions resolutions cannot be overemphasized as an effective tool to bring the DPRK
back to credible negotiations for denuclearization.
This is the last opportunity for the DPRK to chart a new beginning in inter-Korean relations as well as in its relations with the international
community. The DPRK must renounce its nuclear brinkmanship and step back from the point of no return. Pyongyang should awaken from its delusion
that nuclear and ballistic missile development can ensure its security and instead resolve to choose the path to denuclearization. Thank you very
JIEYI (through translator): I thank the representative of the Republic of the Korea for his statement.
QUEST: To New York, to Poland where air force one has just landed. The President of the United States taking a short trip to the -- to Poland
before going onto Hamburg and the G20. I'm just looking at Air Force One - - you're looking at the plane. It's at Warsaw Chopin Airport. The President is expected to go directly to his hotel. We're told there's
going to be no greeting. There's going to be no welcome ceremony. He's in Poland only for 15 hours. He'll be giving a speech on the visions for the
Transatlantic ties. But it will be an extremely warm reception that is expected.
While you're looking at those things, just wanting to remind you what the White House has been saying on this. The White House on the question of
North Korea, the Deputy Press Secretary, Sarah Huckabee Sanders, has declined to offer any new comments on North Korea's testing of the -- of
how the President plans to address the ballistic missile test. She said, I think we've been pretty consistent. We're not going to broadcast any
steps. I don't have any further. Now, she said that, Sanders is on board Air Force One with the President. Who else is with him? Let me tell you,
Wilbur Ross, the Treasury Secretary is on board. Steve Mnuchin -- sorry, Wilbur Ross, Commerce Secretary, Steve Mnuchin, Treasury Secretary. We go
straight back to the United Nations, Nikki Haley, the U.S. Ambassador speaking there. Look at this.
HALEY: -- the defiance of a new resolution means you're holding the hands of Kim Jong-un -- thank you.
[16:20:00] JIEYI (through translator): I thank the representative of the U.S. for her statement. The representative of the Russian Federation has
requested the floor for further statement.
SAFRONKOV (through translator): Thank you very much. I'd like to thank my colleague from the U.S., Ambassador Haley. We too are proposing to work
together. The point of my statement was that a solution to the situation on the Korean Peninsula we think can only be found exclusively through
calibrating regional and international efforts.
The resolution clearly sets forth the not just sanctions but first and foremost work on a political track must be done for a solution to the
situation. This is the goal. Sanctions cannot be a cure all. And this has been demonstrated by history. So here what we need is to seek a
political solution and to be creative in our diplomacy. We've proposed as I said in my statement, work collectively. Thank you very much.
JIEYI (through translator): I thank the representative of the Russian federation for his statement. There are no more names inscribed on the
list of speakers. The meeting's adjourned.
QUEST: So, there you have -- just shows you what a busy -- I promise you a busy hour. You've got the United Nations Security Council. You've got
President Trump arriving in Poland. You've got the start of the G20, and we will take a moment for a break. This is QUEST MEANS BUSINESS on a busy
QUEST: India's Prime Minister on his way to the G20. And Narendra Modi has hailed a new era of relations with Israel. A very large country and a
very small country. It's the first visit to Israel by sitting Indian Prime Minister. The countries have extensive ties, mainly in defense. And now
they have their eye on tech and other sectors.
(BEGIN VIDEO CLIP)
BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER: I have a feeling that today India and Israel are changing our world, and maybe changing parts of the
world. Because this is a cooperation. It's a marriage really made in heaven, but we're implementing it here on earth. We discussed in our
meetings yesterday and today just now with several of our ministers and your delegation, we spoke about so many fields where we think we can make a
big difference, a big difference in water and agriculture and health in every field, in so many fields.
NARENDRA MODI, INDIAN PRIME MINISTER: This visit is a cooperation, to reunite the bonds of our friendship. To compose a new chapter in our ties
and to jointly venture over new regions of engagement.
(END VIDEO CLIP)
[16:25:02] QUEST: Right. Now, Mr. Modi is in the middle of three days in talks in Israel. He's going onto the G20. Also on the street -- look,
it's live television so we're going to stay as much live as we can. You can see what's happening in Warsaw at the moment. We're waiting for
President Trump. You may well say, well, you know, so what, the man gets off a plane and gets into a car. But arguably the significance of this is
the entire agenda that we are talking about tonight, of trade, of North Korea, of Russia, of Ukraine, of the relationships. All of these swirling
around and at the very center of these issues, of Syria, let us never forget that, and Ian Lee is in Jerusalem with Modi -- or was -- I'm going
to interrupt you if we see the President come down the stairs. Forgive me if I do. Was this trip -- I'm listening for two Presidents and Prime
Ministers -- or Prime Ministers, I should say, it should be a roaring success.
IAN LEE, CNN CORRESPONDENT: Yes, you know, Richard, one thing that we heard in that press conference from Prime Minister Netanyahu, he quipped
that if you go to Silicon Valley and walk around, the two languages you're likely to hear are Hindi and Hebrew. He says that's what makes Israel and
India natural allies when it comes to innovation and working with start-ups to help solve the problems that the countries face. And when we heard from
Prime Minister Modi, he said he was envious. He loved that Israel was a leader in innovation and agriculture and water. And he said these are the
top priorities for his government as well.
QUEST: Ian --
LEE: These are areas looking to work closely at.
QUEST: Let's just pause for a minute, forgive me for interrupting you. I mean, Donald Trump, Donald and Melanie Trump arriving in Warsaw after what
was ten-hour flight or so, nine, ten-hour flight from joint base Andrews. A very small reception committee. Melania looks absolutely splendid in
green. I'm absolutely certain that there's nothing been left to chance about the first ladies' outfits that we will see on this trip right down to
the outfit that she's chosen to wear for her arrival. Which is a very straightforward arrival tonight.
It is just going to be a short, sharp airport welcome that we're seeing now. No pomp and ceremony. No major events taking place before. And we
can see just behind -- I'm trying to see is that Ivanka, yes? Ivanka and Jared, Ivanka Trump and Jared Kushner, the President's daughter and son-in-
law, who also, by the way, let's not give them the familial phrase. They are both advisors and senior advisors to the President of the United States
and they're onboard. Obviously, fitting and appropriate and relevant they are the ones immediately following the President and the first lady as they
come down the stairs.
No ceremony. We're not expecting any national anthems or anything like that. It is late at night there, it is half past 10:00 at night. And the
president has a short, sharp, brutal visit to Poland before going onto Hamburg and the G20 the next day. So straight off Air Force One into the
beast, I think it's still called the beast. The vehicle which is obviously -- they have two or three of them that travel with the president. And
that's it. That's the last we're going to see of them this evening, as they head off to their overnight accommodations before tomorrow.
Now, Ian Lee, we haven't forgotten about you in Jerusalem. We're coming back to you now. I mean, was there more than just tech? I mean, the Prime
Minister of Israel talked there about agriculture, about water. Issues that Israel has faced. Israel has challenged and Israel has solved.
LEE: That's right. Let's just take water for instance. This is a country that is arid. It's had a water crisis, but they've been able to turn that
around. And through desalinization, through just recycling 85 percent of the water that's used in this country, they've turned Israel into a water
starved country into an exporter of water.
[16:30:01] Also with water quality, that's one area where Israel is really advanced. And so, these are very attractive for India, a country of over 1
billion people who's trying to feed these people. So, Israel's abilities to advance crops, advance agriculture is something that is really high on
the priority list for Prime Minister Modi. And that's something that they've discussed on this trip. And they've also gone to a garden to look
at this as well as tomorrow they're going to a desalinization plant to take a tour there -- Richard.
QUEST: Ian, thank you. Thank you very much, Ian Lee, who is in Jerusalem. As we continue on our nightly conversation. Well, the President's on his
way to his residence and we're not going to see him again tonight, the U.S. President that is. We have a lot more business news to get to including of
course, telling you how the markets closed first day after trading after July 4th. This is QUEST MEANS BUSINESS. Good evening to you.
QUEST: Hello. I'm Richard Quest. There is more QUEST MEANS BUSINESS in just a moment, as you'd expect. We're going to show you town on the
Venezuela border struggling to help people who have been stricken by the countries medical crisis and a crisis indeed.
And Qatar Airways, well, the country is under an embargo and isolated. And the airline is looking isolated too. The Gulf rivals are getting the U.S.
laptop ban lifted. As we continue, this is CNN. And on this network, the news always comes first.
The U.N. Security Council has been holding emergency talks on North Korea after its first ever intercontinental ballistic missile launch. The U.S.
ambassador Nikki Haley called that a clear and sharp military escalation, that quote, made the world a more dangerous place. The ambassador says the
U.S. will propose new sanctions in the coming days. And warned countries trading with North Korea that Washington may cut off trade with them.
Egypt's foreign minister says Qatar's response to a list of demands was overall negative and lacked substance. Demands came from four Arab states
who say they'll continue their diplomatic and economic boycott. The countries accuse Qatar of funding terrorism. Doha rejects those
The White House says it has spoken to the family of a critically ill British boy about trying to get him an experimental treatment in the United
States. The 11-month-old Charlie Gard has a devastating genetic illness that's destroyed much of his brain. British doctors and the U.K. courts
say he cannot recover. U.S. President Trump has tweeted he wants to help the boy any way he can.
[16:35:00] U.S. ambassador to the United Nations says the countries that trade with North Korea won't be allowed to continue economic arrangements
with the United States. Paula Hancocks is in Seoul. This escalation since we spoke last night, this escalation continues but, Paula, I just want to
focus if I may on what I heard from the Chinese ambassador and the Russian ambassador, both of whom are proposing arrangements, peace agreements,
negotiations which some would see as weakening the military ties between the U.S. and South Korea. That's the problem, isn't it?
PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: Absolutely. What we're seeing at the moment, Richard, is that this ICBM launch is really
highlighting the splits globally when it comes to how to deal with North Korea. On the one hand, you have the U.S. and South Korea, and at this
point it seems on the other hand you have China and Russia. They came out with a statement a couple days ago saying they want add freeze on the
nuclear missile program in North Korea if the U.S. and South Korea stop their joint military drills. Now, this is something that China has touted
before, and it's something that the U.S. has said absolutely not to before. For them they have said it is a nonstarter, the fact that they are up to
30,000 U.S. troops here in South Korea, they say it's very important that they carry out these military drills so that they're ready to fight at any
moment. But now you have Russia as well backing China in this regard.
QUEST: So, China, an opportunistic moment to weaken -- I mean, I don't want to overstress the idea of weakening the alliance, but if they manage
between South Korea and the U.S., but if they manage to get rid of or to negotiate away much of the testing, much of the performance of the U.S.
there, then that weakens the U.S. influence in that part of the Pacific.
HANCOCKS: Well, it didn't go unnoticed the fact that the Chinese ambassador to the U.N. did mention THAD as well, this U.S. military defense
system that China desperately does not want in South Korea. Russia doesn't want it either. They both say that they believe that it undermines their
strategic deterrence, which the U.S. has denied that it does. But that is something that China has said within this forum as well, within the
Security Council that that should go away. So certainly, there are issues that China has with a U.S. military asset buildup in South Korea. They
don't want this U.S. military hardware continuing to arise in South Korea.
QUEST: Finally, Paula, sort of a personal reflection question in the sense that you've been living -- you've been our correspondent there for some
years, does it seem weird that the U.S. now is getting very hot under the collar because a missile potentially could in the not too distant future
hit the U.S., or Alaska or Hawaii? Where you are you have been under threat of the short range and medium range missiles from North Korea for
HANCOCKS: Well, yes, it's certainly something that's been mentioned here. It's been mentioned by experts that this red line of the ICBM, the
intercontinental ballistic missile that could hit the U.S. is what sparks this kind of reaction when, yes, of course in South Korea and much of Japan
they have been able to be hit by North Korean artillery as well as ballistic missiles for some time. This is a threat that South Korea has
been living under for many decades with North Korea. So, yes, it is a feeling that this is more of a threat to the United States certainly than
it is to South Korea.
QUEST: Paula, thank you. Paula Hancocks joining us from South Korea. From Seoul.
Now, the NASDAQ and S&P join me at the super screens, they both closed higher, a tad higher with the tech stocks leading the gains. The Dow, you
don't often see this it's virtually unchanged -- well, it is unchanged just off one point. A lot of sea of red at the open. When we did "QUEST
EXPRESS" this morning things were starting to recover. And the afternoon continued in a very medium bit of -- and the reason is the fed minutes.
The fed minutes are showing committee's talking about shrinking the balance sheet, the $4.5 trillion balance sheet that ballooned during the financial
crisis of 2008-2009 through quantitative easing.
[16:40:00] It's going to be a gradual reduction of the balance sheet, largely through no longer reinvesting, rather than selling off. Not all
members agree on how soon or the modalities of it.
That's the market for you. I don't want to spend too long talking about a market down just one point. Volvo, Volvo is the first major volume car
maker that says the age of gasoline powered cars is over. The company says it will only build electric and hybrid vehicles starting in 2019, a
commitment that could spell the beginning of the end for the combustion engine. Look at this, the combustion engine, it was Karl Benz who invented
the first practical automobile, what we recall as automobile, in 1885. Please do not tweet me to point out it was somebody else. We are aware of
that, but this is the first practical automobile.
Now, in 1913 dear old Henry Ford he goes along and installs the first moving assembly line to produce the Model T, and an inline four internal
combustion engine. Remember, you can have it in any color so long as it was black. Now, fast forward a century and a bit from Volvo, 2019, all
cars will be either fully electric powered or hybrid, or both electric and gasoline engines for all Volvo cars. Joining me the executive analyst from
Kelley Blue Book, joins me from California. It's a statement of the inevitable, but it's a milestone and significant nonetheless, would you
AKSHAY ANAND, EXECUTIVE ANALYST, KELLEY BLUE BOOK: Totally agree, Yes, this is a very significant announcement that Volvo made just because, you
know, it talks about a short-term strategy that they're thinking about as well as a long-term strategy. And over the medium and longer term it does
potentially position them very well if consumers do, you know, fully embrace electric vehicles like some are speculating they might.
QUEST: Would you expect others to follow? Now, Volvo has had a checkered past. Swedish manufacturer, high in terms of sustainability and
environmental concerns, but owned by the Chinese. Would you expect other volume manufacturers to follow?
ANAND: I think there is going to be a wait and see approach potentially. I mean, manufacturers for the most part in some capacity do have their
electric vehicle plans for the next, you know, one, two, three, four, five years, whatever it is. I think with this announcement it does kind of open
it up to manufacturers in terms of seeing consumer acceptance because that's going to be one of the biggest hurdles for every manufacturer really
is right now a lot of consumers are on the fence with electric vehicles, whether it's due to range anxiety or they want to see, you know, how it
shakes out longer term, and longer term in just terms of reliability of the vehicles period.
ANAND: So, I think there will be a wait and see approach.
QUEST: How much of Volvo's announcement is a statement of the obvious in the sense that they've seen what consumers are going for, they know what
their concerns are, so really, they are just riding a horse that's riding the race anyway?
ANAND: Yes. I think a lot of Volvo's announcement candidly is looking at the U.S. market not only but, you know, the Chinese market, the European
markets as well where they do play. If you think about it, the Chinese market is looking for solutions for, you know, air pollution and looking
for clean air and that's something that they've talked about. And obviously, you know, you mentioned, Richard, Volvo's owned by a Chinese
company. In Europe, Norway is going all electric. There are other countries in Europe that have talked about electric. So, I think it's part
of a more wholistic strategy from Volvo's perspective. And, you know, Volvo has been an innovative company. They've kind of built their backs on
safety and Justin novation in general. So, I do think if there was a company that was going to announce this, Volvo does make sense.
QUEST: Good to have your interpretation and analysis on it tonight, sir. We're very grateful you came in to talk about it. Thank you. As we
continue tonight, if you're flying from Istanbul or from Dubai, yippee, you can take your laptop onboard your flight to the United States.
[16:45:00] (COMMERCIAL BREAK)
QUEST: Welcome aboard Quest air again. Look, travelers flying to the United States from Dubai and Istanbul just got some relief. They no longer
have to check laptops from Istanbul and/or Dubai. If your boarding pass says Emirates or Turkish airlines, you can take your pc or your MacBook,
whatever you like, you can take it into the cabin and use it, of course only after you're above 10,000 feet. Now, Saudi says it aims to have the
ban lifted by July 19th because that's when it expects the authorities from the TSA to have visited and to approve the new security measures. Which
leaves amongst the majors, Qatar airways, where passengers will still have to check large electronic items.
Now, arguably Qatar has larger problems with the embargo from the GCC countries. The airline's declined to comment on the future of the ban, but
certainly puts Qatar it would seem at a different disadvantage over the other three of them. Qatar is one of the six airlines still operating.
Our aviation expert Renee Marsh is in Washington. So, look, explain as best as we know because it's all security related, what did these
countries, what did these airlines do that suddenly the U.S. said, all right, you can take laptops on board?
RENEE MARSH, CNN AVIATION CORRESPONDENT: So, you're right, a lot of this is information that's sensitive that the Department of Homeland Security
won't lay out for us because they laid it out for us, they're laying it out for the bad folks who want to do harm. But we do know based on our own
reporting and from sources that we've been speaking to that some of the items that are required for these airlines include increased use of
explosive detection technology as well as increased use of canines.
There are other things that they will have to do as well. Again, very sensitive information. And so, what happens is once they put all those
measures in place, TSA physically sends people to go and inspect to make sure that everything meets the standard that the Department of Homeland
Security laid out. And if they do meet the standard, that is when they are removed from the list.
QUEST: Now, this is different, but related to the new measures that DHS announced only recently a couple of weeks ago, didn't they? We're talking
about basically they were going to be enhancing security measures for those airlines that wanted to fly to the U.S. so there's another whole raft of
this coming along, as I understand it.
MARSH: So, everything that we're talking about here today regarding this electronics ban, this was all announced last week -- or around the 28th.
The 28th of June Homeland Security Secretary Kelly announced that this is the way for people to get around the laptop ban. Because there was a great
deal of pushback. You saw it from allies in Europe as well as from the airlines themselves.
[16:50:00] They gave the Department of Homeland Security an earful because they said it would create a logistical nightmare. They believe it would
cut into their bottom line. It just was not going to work. And so, we saw the Department of Homeland Security's position really evolve over time.
And so, it moved from the laptop ban is the only way to go to now if people have these measures in place, which were just announced, then you can avoid
the laptop ban. So, we do see a shift now in the stance as to how homeland security is choosing to deal with this intelligence and the intelligence
that suggests that there's a threat against aviation, Richard.
QUEST: Rene Marsh, thank you, good to see you.
MARSH: You're welcome.
QUEST: As we continue tonight, violence in Venezuela continues to escalate, forcing people to desperate lengths for some extremely basic
issues like medical care.
QUEST: President Maduro of Venezuela says he condemns any violence perpetrated by his supporters after the latest clashes this Wednesday,
which is Venezuela's Independence Day. The supporters stormed the opposition controlled national assembly. Witnesses say several lawmakers
were injured. Leyla Santiago joins me now from near the Colombia/Venezuela border. I think you may be having a little difficulty hearing me, so we'll
keep this simple. Why are you there?
LEYLA SANTIAGO, CNN CORRESPONDENT: Why I'm here, Richard, well, this is the border of Colombia and Venezuela. And what you're seeing behind me,
these are people coming in from Venezuela into Colombia because they need supplies they can't get in Venezuela. They're often coming in with bags
that are empty and leaving with suitcases, backpacks that are full to get them through the next few weeks or months. It is a matter of survival as
many have told me. And, you know, this is the response to economic uncertainty, to political unrest that is really impacting their lives.
You mentioned what happened at the national assembly today, there were certainly clashes there between government opposition and President Maduro
supporters. We saw images and videos that came out of a very violent scene. And now on Twitter you're seeing a lot of people from Venezuela
speaking out either for or against the government. And what's interesting, Richard, is that you actually see that play out here on the border. Just
in the last hour or so I have had some people walk right by me and either say viva Maduro, so long live Maduro, or fuela, Maduro, so get out, Maduro.
It's very interesting to see how far this is playing out given everything happening right now for Independence Day is in Caracas, Venezuela. Despite
the economic uncertainty we're still seeing people here who are hopeful that one day things will change because certainly they are in need of a
QUEST: We will have to unfortunately keep it short and sweet, but we're very grateful because it's an important story tonight for everybody to keep
watching. Look at those suitcases, look at those bags people are bringing across. I mean talk about huge amounts, Leyla Santiago joining us from the
Colombian border. You can download our show as a podcast through major providers and CNN.com/podcast. We will have a Profitable Moment, which
comes to you after the break.
QUEST: Tonight's Profitable Moment, is trade a zero-sum game? It's the sort of issue will be talking about at the G20. Donald Trump believes
trade should be fairer. Angela Merkel today said in an interview does not see trade the same way as a profit and loss account. I sort of tend to the
view that there is a zero-sum element to trade. It's not politically correct to say so. And, yes, I can certainly understand how a rising tide
lifts all boats, but the reality of course is that one person's loss is another person's gain and vice versa.
Now, if you get it right, then everybody can benefit. But there are too many examples take the Uruguay round where the emerging markets felt they
got very badly done to where the bilateral trade deals were never either consumed or actually worked well. Put it together, and, yes, I think it's
a zero-sum game. And that's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, I hope it's
profitable. I'll see you tomorrow.