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QUEST MEANS BUSINESS
U.K. Labor Party Hit with a Large Scale Cyber Attack; JUUL Rolls Out $1 Billion Cost-Cutting Plan; Strikes Break Out Across Chile as Peso Hits Record Low. Aired 3-4p ET
Aired November 12, 2019 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICHARD QUEST, CNN INTERNATIONAL HOST, QUEST MEANS BUSINESS: Final hour of trading on Wall Street and we're in London, in New York markets are --
well, they were up for the entire session and then the losses started just after lunch and has slightly accelerated holding their own, small numbers.
Let's not waste too much time or too much worry about them.
Although we will need to consider why the market has gone in opposite direction. These are the reasons why.
Donald Trump has touted his economic achievements on the eve of the impeachment hearings in Washington.
From box office smash to streaming service. Disney Plus has glitches to deal with on day one.
And Chile currency falls to record low. A general strike is underway.
We're live in London tonight on Tuesday, November the 12th. I am Richard Quest and here, of course, I mean business.
Good evening. We begin tonight, as President Trump makes a last minute economic pitch before the start of the impeachment hearings that take place
Now, the President was speaking to a room of economists and business leaders in New York, when he listed his economic accomplishments, defended
his trade policy and railed against the Fed and his predecessors.
The thrust was clear, the U.S. is enjoying an economic boom that will live and die with the Trump presidency.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES: Today, I am proud to stand before you as President of the United States to report that we have
delivered on our promises and exceeded our expectations by a very wide margin.
(END VIDEO CLIP)
QUEST: Clare Sebastian has been following what the President said. What struck you about it?
CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT: That was interesting, Richard, an economic boom, the likes of which we've never seen. Economists
may question that given that economic growth slowed in the U.S. in the third quarter, it's barely at two percent.
But what the markets, Richard, were really looking for was something on trade. It's been about a month now since President Trump shook hands with
the Chinese Vice Premier on a Phase 1 trade deal as they're calling it and still we don't know exactly how far along we're getting.
They were hoping for something concrete on that. They kind of sort of got it and he said, they were close. It could happen soon. But he did qualify
that saying that the U.S. wasn't going to sign anything that wasn't good for them, Richard.
But there was a Q&A portion of this. I just want to play a bit of that because it was interesting when he was asked about the impact that the
trade war is having on the U.S. economy, particularly manufacturing.
(BEGIN VIDEO CLIP)
TRUMP: They haven't been totally down. Now, they are a little bit down because a little bit perhaps the uncertainty of trade wars, but there is no
We are the bank that everybody wants to take from. We are the source that everybody needs and everybody wants all over the world.
The real cost, John would be if we did nothing. The cost of doing nothing was killing us as a country.
(END VIDEO CLIP)
QUEST: The significance, of course, is the election, but also the hearings that begin tomorrow. How far was his speech designed -- I mean, he was
giving it anyway, the timing was coincidental, but making his argument on the economy does let people or the American voters think, well, even if he
did do this other thing with Ukraine, he has given us a good economy.
SEBASTIAN: Right. This is the point, Richard, he is trying to prove that the U.S. is much better off with him than without him. It was a long, very
backward looking speech, really looking back over the past three years. A lot about the kind of the dud economy that he inherited in his words and
how you know, he has created hundreds of jobs, thousands of jobs. He has revived manufacturing.
I will say, fact check on that manufacturing, it is one of the weakest portions of the economy at the moment. It declined for a straight month
and business investment also affected by the trade war.
QUEST: Now, Clare, the S&P and the NASDAQ hit record levels today before falling back and before the President spoke. But if you look at the chart,
well we are down on the Dow. Is there a particular reason why those gains evaporated and did so quite spectacularly after lunchtime?
SEBASTIAN: I suppose, I would slightly dispute spectacularly, we are still only 30 points down, Richard. I was watching the Dow during the speech and
it sort of went up about 30 points when he talked about being close to a China trade deal, but no real reaction here because really, there wasn't a
lot that was new in this speech, Richard.
They were looking for something more, something more constructive. There's been a lot of mixed messages out of the administration. There was no date
or timeline, no sense of when he is going to meet with President Xi. There were not a lot of specifics, and I think that's why we see stocks in a bit
of a holding pattern, perhaps also because we're going into these impeachment hearings.
QUEST: Clare, thank you. That graph always looks more dramatic than the reality numbers. Okay. Now, these are the economic gains for which the
President is taking credit
QUEST: And hinting that could be at risk if he is removed from office through the impeachment procedure. Since the inauguration, his
inauguration, the S&P has gone up 37 percent. In terms of jobs, well, you're looking at six and a quarter million, the S&P has closed up record
highs a hundred times and with six million jobs done and the economy growing at just around two percent a year.
Well, it may be short of what the President promised, but it's still fluster than the OECD average, and it's about trend or just slightly less
than trend. And voters are giving the President solid marks on his handling of the economy.
Fifty two percent approval in the latest CNN poll, 11 percentage points higher than his overall approval rating, which does bring together this
interesting question of economics and politics which is why we have Mark Zandi with us, the Chief Economist at Moody's Analytics and CNN's senior
political reporter, Nia-Malika Henderson -- both of you -- starting with you, Mark, if I may.
The numbers that the President touted today, and the suggestion that they would be at risk, if he were not President, on a purely economic front, is
MARK ZANDI, CHIEF ECONOMIST, MOODY'S ANALYTICS: No, I mean, he inherited an excellent economy and he has been riding it. I mean, the question is,
you know, would the economy be better if he hadn't pursued the policies he has in place, the trade war? The large budget deficit? His anti-
immigration policy? That in my view, the answer is yes, the economy would be meaningfully better.
So no, I don't think he can take credit for this economy. I think it's an economy that is good despite the policies that he has put in place.
QUEST: But the way -- to the politics and no question the ability in it for the President to go to the country with these numbers will be or at
least even on the question of an impeachment shoring up a defense is very strong.
ZANDI: Yes, we'll see. I mean, you know there's another year to go between now and Election Day and all the trend lines don't look all that
great. I mean growth has slowed as the previous person pointed out, and if it slows anymore, even a little bit more unemployment is going to start to
rise and once unemployment starts to rise, that's going to be a problem both from an economic perspective because recession risks will increase,
but also from a political perspective, obviously.
QUEST: Nia-Malika, the political view as Washington sees it on exactly that same question. If he has got this good economy from Capitol Hill then
Washington is going to shore up a defense.
NIA-MALIKA HENDERSON, CNN SENIOR POLITICAL REPORTER: It sure does. Yes, I mean he can go out and tout these numbers, tout the jobs numbers, tout the
low unemployment rate and I think if you're a Democrat, you will say yes, these numbers are great, but how about the cost of healthcare? Right? How
about the cost of sending your kid to college? How about student loan debt? How about sending your kid to daycare?
So I think if you're a Democrat, you sort of look at how people experience the economy and people don't necessarily experience the economy in terms of
GDP numbers or unemployment numbers. They experience it on a day-to-day level, right? How much -- how many groceries can they buy? Are they
better off now in terms of moving forward? In terms of paying for their kids' college or whatever it is? Are they better off now than they were
four years ago?
So I think it's going to be a real kind of nitty-gritty campaign going forward from the Democrats and of course, the President as well.
QUEST: Well, if we talk about that campaign, Mark, the recent Moody's Analytics study, which I think we talked about, which basically suggested
that the cake is baked in those key states, if the economy continues as it's going. If I recall what you were saying last time, this is job done.
ZANDI: No, I mean, it's not big. Really, you know, if the economy a year from now is the same as it is today, if his approval rating is the same a
year from now as it is today, and here's the real important point, if turnout in the election is just an average turnout, then yes, he will win.
But the key here is, will the turnout, particularly in those key swing states like Pennsylvania, Michigan, Wisconsin, be typical? I mean, given
what we're seeing with recent elections, you know, I have my doubts. I think it's going to be pretty high. And if it is, an economy the same as
it is today and if his approval rating is the same as it is today, then the D will win. So it's not baked.
QUEST: Okay, it's not baked, but it's in the oven. And Nia-Malika, in that sense, and the reason I come back to it is because that raises the
stakes for these hearings.
Now let's assume that they're -- you know, the good men and women in Washington have only virtuous ideas on their mind. But for those who have
politics on their mind, then this is crucial, isn't it tomorrow?
HENDERSON: Sure, it is crucial. The Democrats want to lay out a case where they can, you know, convince the American folks that listen, this
President did something wrong and it's an impeachable offense. If you're a Republican, listen, you for many months now, three years or so have run
cover for this President and excused any number of things he has done and it seems like they are poised to do the same thing.
HENDERSON: And I think they will point to some of the things you pointed to about the economy, about all of the things that they feel like the
President has done well so far as a reason to not impeach him and also just let the voters decide in November.
I think what we do know about November is it's going to be close. The last election decided by about 70,000 votes in three different states, this one
is going to be close. That, I think is certainly baked into the cake.
QUEST: Good to see you both. Thank you. And we will follow this closely. I much appreciate it. Thank you.
Now to Washington, staying there, in fact, and the plan of both parties, Republicans and Democrats on the impeachment hearings which get underway
The two key State Department officials are due to testify. It includes the top U.S. diplomat in Ukraine. The President is trying to keep control of
the narrative and he demands that by Biden and his son be called to testify, saying he will released the transcript of his first phone call
with the President of Ukraine before the end of the week.
Phil Mattingly is on Capitol Hill. Before we get to the minutia, just how down and dirty and brutal, no holds barred is this fight?
PHIL MATTINGLY, CNN U.S. CONGRESSIONAL CORRESPONDENT: Yes, look, the stakes are enormous, and I think anybody who goes into these hearings and
doesn't grasp the fact that this is about the removal of the United States President, something that's never happened before. There's only been an
impeachment twice in the course of history, it means everything is on the table.
This is as big as it gets politically. It is as big as it gets from a TV public PR perspective on Wednesday's hearing, on Fridays hearing. The
hearings next week. This is it. And so I think the expectation is going into this hearing, when you talk to Republicans, they make very clear
they're going to go after these witnesses.
They believe there's holes in their testimony. They believe there's holes in their closed door depositions, and they will go after them, regardless
of their respect for their services -- Foreign Service officers -- regardless of their respect for whether or not they serve in the military,
this is -- the stakes are everything here and they're going to make clear that's the case during these hearings.
QUEST: Right. Okay, but then the significance of a strong booms start, you know, and then I mean, normally, as you're familiar in, in the world of
entertainment, you start slow and you build up to an extravaganza, but I'm guessing here, it is the opposite, isn't it? They're starting with the
best witness and its best foot forward.
MATTINGLY: Yes, I think when you talk to Democrats, they make clear. They think these first two witnesses are the best witnesses to lay out the full
scope of what they believe was a rogue operation in the United States government as it pertained to Ukraine's security policy, people who had
firsthand knowledge of how that policy had gone haywire, had gone sideways that William Taylor, one Democrat told me, Richard, William Taylor, the
Ambassador who will be testifying tomorrow is quote, "straight out of central casting."
These are the people they want testifying, they thought that they were impressive behind closed doors and that's exactly the message they want to
send tomorrow when they're on camera.
QUEST: Is it go -- but now let's compare it. I mean, the great congressional hearings of the past, those that were televised Iran-Contra,
obviously Clinton's impeachment. You obviously had the Nixon hearings -- those didn't exist in quite the same way.
But in this generation of streaming, is there a risk that the public basically gets bored with, often in the course of a hearing is like
watching paint dry.
MATTINGLY: No question, no question. And when you talk to Democrats, their biggest concern is basically what they've seen play out at other
quote unquote, "huge hearings" over the course of just the last couple of years. The Mueller hearing was considered a nightmare for them. When they
brought in Corey Lewandowski, an aide to President Trump to the campaign -- candidate Trump come in and basically made a circus of the entire
They are terrified that that could happen again. They recognize that attention spans are shorter. People want the information immediately. And
the ability for a hearing to go off the rails is very real. I think that's why you've seen such a coordinated and concerted effort behind the scenes.
They've had meetings. They've had memos. They've had mock hearings. They're trying to make this count.
And as to your point, Richard, make it count right off the bat, because if they don't hit big early, there's a real possibility that people tune it
out or people just move into their partisan dugouts. That's what they're trying to avoid. It's a heavy task, and it's a big ask given how people
consume news right now, how people consume these hearings, but that's the goal for Democrats.
QUEST: Phil Mattingly in Washington and Phil obviously will be in the room and has a ringside seat. And indeed, thank you, Phil and so do you, dear
viewer, because of course we will be taking you there tomorrow.
QUEST: CNN with our special coverage of the impeachment hearings on Wednesday. It's at 8:00 a.m. Eastern Time, which is one o'clock in London,
two o'clock in the in Europe. And then three, four, five o'clock as you work your way down towards the Middle East and North Africa.
That's where it will be and you'll be able to see every little nook and cranny, every bit of it.
Walt Disney said all our dreams can come true if we have the courage to pursue them. Well, Bob Iger dreamed of a streaming service. Now, Disney
has one. Also, the oil industry leaders say President Trump's trade war is dragging down demand and they wanted to stop it.
QUEST: Over nearly a century, Disney has built a sprawling Media Empire and today, the business model is taking a risky turn. It is the debut of
the Disney Plus streaming service, and it has been a rocky one. It's crashing for many users around the world.
Disney says the demand is higher than expected, and it's working to get it fixed. The chief exec, Bob Iger, his legacy is well and truly tied to
Disney Plus. His goal is to offer a service so full of high quality content that Disney's rivals simply can't compete.
Four key deals made it possible. First, of course, they bought Pixar, then they bought Marvel, then Lucas Films and finally -- Fox. Disney stock is
higher on Wall Street at the moment. It's up 27 percent so far this year, which is extraordinary for a stock that's basically done very little, in
the last couple of years.
Frank Pallotta is in New York. Now, they had a couple of teething problems today. But I mean, I assume they'll just get that sorted out. It's all to
do with too many people and too little bandwidth.
FRANK PALLOTTA, CNN MEDIA REPORTER: Yes, that's what Disney is saying happened this morning. So look at it this way. For many Disney fans, this
was kind of like a Christmas morning. They were looking forward to this Disney streaming service finally being launched.
They woke up this morning, they run down the stairs, they open up their presents and what they found was a lot of buffering. They found crashes.
They found the inability to log in. They found the inability to watch content. So it was a problem this morning. Disney has since rebounded,
and it looks like the streaming service is off and running as we go.
But this morning, Disney said that the reason that the whole service kind of fell apart was because a lot of people were trying to sign up at least
that's what Disney says.
QUEST: All right now, just remind us the vehicle by which most people will access Disney Plus and the reason I say this is, you know, I was thinking
about my widescreen TV on the wall, which you know, is connected to cable and Apple TV or whatever it might be. But somebody in my ear, my director
here in London said, no, no, no, it's youngsters on iPads. They're the ones doing it. That's how they'll access it.
PALLOTTA: It's really across the board. I mean, I'm going to watch it on TV. I can watch it on my mobile phone. I can watch it on my laptop. That
is the power of streaming. You don't have to just sit on a couch and watch it on television. You can watch it as you go.
And Disney plus has made it possible to allow you to do that in ways that are a little bit interesting. So you can do unlimited downloads of their
shows -- of their films, too -- from Disney Plus, so you can watch them say if you're stuck on a train underground or if you're in a place that doesn't
have Wi-Fi or a place that doesn't have a signal. This allows you to watch it wherever you go. Just like others in the streaming world does, but now
you can watch Disney content wherever you go.
QUEST: All right, thank you, Frank. You and I can talk a lot about the cost, so let's look at that. Thank you, Frank. With so many streaming
services going live, and more on the way all these monthly subscriptions, they do add up. If you look at how we've -- if you were to subscribe to
the lot -- Netflix, HBO, Prime, Disney, Hulu, CBS, Apple TV Plus and Peacock, your spending is roughly $60.00, add in the internet connection,
it's about 50 bucks a month, $110.00. Cable is $107.00 and that's a bit more than basic cable but it is not full or singing or dancing cable.
The Netflix Chief Executive, Reed Hastings said he isn't worried there's so much competition. In fact, he's a Disney fan.
(BEGIN VIDEO CLIP)
REED HASTINGS, CEO, NETFLIX: I'm not saying we are worried about it, we admired them. I mean, you know, I'll subscribe. They've got great shows.
It's -- you know, they're a wonderful competitor because they really understand creativity, we learn, we observe, we watch them. We admire the
heck out of them.
UNIDENTIFIED MALE: What about Apple?
HASTINGS: You know, there's a bunch of tech companies that are in entertainment. But I think, you know, Disney is the one that we really
have the most to learn from in terms of entertainment.
(END VIDEO CLIP)
QUEST: Our media analyst is Bill Carter. He is in New York. The media companies are the one we have to learn from. The difference between an
Apple Plus which has original content, and Disney, which is basically dusting off the archives.
BILL CARTER, CNN MEDIA ANALYST: Well, that's a big factor. I mean, you know, Disney's library is incomparable. The titles that are there, they
can put up -- those movies, those classic movies are starting, you know, with "Snow White" in the 30s. I mean, it there's not much anybody can
I mean, now, Netflix is basically, you know, had a library and originals and I think their originals have gotten a lot of attention. What's
interesting for me is that Disney is putting out, you know, their product, which is getting great reviews for their library, but I think original
content is essential for them to actually grow and become a real competitor with Netflix.
QUEST: Right, but the lovely phrase I heard was, you know, somebody described -- well, actually, it was the former head of a Turner or HBO who
described a situation as HBO is Tiffany's and Netflix is Walmart. And I mean, there's a lot there on Netflix, but how many of them you actually
want to watch is questionable?
CARTER: Well, that's -- of course that's a big question. Netflix has become sort of generic. They're like the Kleenex instead of you saying
tissues, say Kleenex. Netflix has become the definition of a streaming service for a lot of Americans because that's what they started with. HBO
was a premium cable channel and a slightly different identification.
When you start spending your money though, you want to see what it is you like. Now Disney has great things, but I'm not sure people, adults who
don't have kids in their home are necessarily going to gravitate to it because it doesn't really have -- I mean, if you're not into Star Wars or
space epics or superheroes, it isn't really a varied taste. There wasn't a lot there for you if you're an adult.
I think Netflix has been more across the board, but they have many, many misses as you point out, and it can be very frustrating. You can go on
Netflix and say, I can't find anything even though they have seemingly an infinite amount of choice.
I do think it comes down to can they continue to produce shows like "The Crown" and "Unbelievable" and "Mine Hunter" and talked about shows, and I
think that's what Disney has to do as well.
QUEST: All right, to circles this run. When deciding which number of streaming services to go with, do you foresee Netflix is going to be like
"The New York Times" or the telephone company, you're always going to just subscribe to that because everybody does and you've got Netflix, and it
really becomes a battle between the others? Nobody is going to drop Netflix.
CARTER: I think that's basically true. I absolutely think that's true. I guess over time if Netflix missed with program after program after program,
it might cost them in the long run, but they seem to be the generic factor, you know, the Coca-Cola of the soft drinks, you know, I do think they have
QUEST: Lovely to have you build the Coca-Cola of streaming for Netflix and a Kleenex for the -- good to see you, sir. As we continue -- I am not sure
which is the best of those.
Let me continue, Juul embarks on a billion dollar cost cutting mission. There's pressure on all sides for the vaping company. And now the company
stands to suffer severely. We will look at where after the break.
QUEST: Hello, I'm Richard Quest, a lot more QUEST MEANS BUSINESS today. We are live in Chile where there is a protest about inequality and it's
turned into a general strike, the likes of which we've never seen.
Instagram is planning to hide the little red hearts.
As you and I continue tonight, this is CNN. And here on this network, the facts always come first.
Palestinian health officials say seven people in Gaza were killed by Israeli airstrikes on Tuesday. The victims include an Islamic Jihad leader
and his wife, as well as four others, belonging to the group's armed wing. Israel Defense Forces say 190 rockets were fired out of Gaza on Tuesday,
and most of them were intercepted.
A Hong Kong Police spokesman is warning society is being pushed to the brink of a total breakdown. Pro-democracy protesters were out in force
again on Tuesday. Police fired teargas after traffic was blocked in the city's main business district.
The U.K.'s opposition Labour Party says it has experienced a sophisticated and large scale cyberattack on its digital platforms. The Labour
spokesperson said no data was breached because of the party's robust security system.
Jeremy Corbyn, the leader says the party is investigating those behind the attack. Former U.S. President Jimmy Carter is recovering at a hospital in
Georgia after undergoing an operation to relieve pressure on his brain. It was due from bleeding from recent falls.
The Carter Center says there were no complications from the surgery. Mr. Carter celebrated his 95th birthday last month. JUUL is cutting a billion
dollars in costs and laying off 16 percent of its global workforce. All at the same time there's growing concern about the health risks of vaping.
Now, most of the cuts will be at the company's marketing department which has been accused of tailoring out to teenagers.
Paul La Monica is with me from New York. Are these cost-cuttings and layoffs, are they because of a down-turn as a result of vaping going out of
fashion or at least being highly critical?
PAUL LA MONICA, CNN BUSINESS REPORTER: Yes, I think it may be premature to say that vaping is going out of fashion. I think the issue for Altria
which is the Marlboro honor that has this big stake in JUUL installed one of their executives as the new CEO recently. The big challenge for the
company is that there's this backlash to vaping obviously because it's not necessarily healthier than smoking tobacco cigarettes.
There have been many stories about the health risks associated with vaping, and then the concerns about the fact that there is, you know, this
perception that the ads particularly because of all the flavors that used to be sold by JUUL, they were really geared towards --
QUEST: Right --
LA MONICA: A younger demographic that should be using these products.
QUEST: But at the end of the day though, are they seeing a down-turn in demand or I mean, why do they need to lay off staff?
LA MONICA: Yes, they're laying off staff in primarily the marketing division because JUUL is not going to be marketing nearly as aggressively
as they once did, halting TV ads and many other types of advertising that they can use to get to a maximum audience. So, this is really a reflection
of the fact that JUUL has to retrench.
They can't be marketing as aggressively as they once did. But yes, it is true that sales have petered off as well and it's raising --
QUEST: Right --
LA MONICA: Questions about whether or not Altria bought in at the top.
QUEST: I think -- yes, absolutely, but that's clearly looking at the numbers, what would be suggested. If we look at the triple stack on the
markets today, we do see that the Dow has given back its gains and more. Dow is now off not a huge -- I mean, barely off its -- but what happened
today? Why did the enthusiasm -- just the Nasdaq is at a record high, why did the enthusiasm evaporate?
LA MONICA: Yes, I think we should be careful there, Richard, there wasn't exactly that much enthusiasm going into the day to begin with. Yes, stocks
were up a little bit and we were at record highs, we've pulled back from those levels. I think really when it comes down to it, President Trump's
speech this afternoon.
He really didn't break much new ground with regards to setting any, you know, hopes higher for a trade deal with China which is what the market
really wants, he just bashed the Fed once again and also really it sounded more like his 2020, beginning of that campaign type of speech.
So, this isn't what investors and Wall Street wanted to hear. Maybe it's what Trump supporters did, but not so much the market.
QUEST: Right, get better -- we're going to hear many more times. Paul La Monica in New York, Paul, thank you. And let's remind ourselves of how
Europe closed this Tuesday. It's near a four-year high which has boosted the German investor sentiment data. Investors also expected President
Trump to delay a decision on European auto tariffs, we haven't seen that decision yet.
While strong telecom and chipmaker earnings lifted those stocks and took the market higher, the best of today was seen in Frankfurt. The Chief
Executive of the Italian oil giant Eni says trade wars with the U.S. are hurting demand. He was speaking to John Defterios and he says, if the U.S.
and China do not work out a deal, oil price volatility could continue throughout 2021.
(BEGIN VIDEO CLIP)
CLAUDIO DESCALZI, CHIEF EXECUTIVE OFFICER, ENI: The volatility and the demand is more important for the first time more than volatility of their
politics. Because the war of tariff, so that is -- there is between the U.S.-China and now Europe create, you know, uncertainty in the developing
investment, and that is losing the demand.
JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: Do you think that can be solved because the U.S. is saying China wants a deal, but I don't see a
rush to judgment.
DESCALZI: I think that if that -- these issues would be solved in a way that we know where we are going in the future. That is what we have to
So we can have a stabilization and the demand. So the geopolitics can impact and we can have -- and maybe impact on the oil price. Without that,
I think that the volatility will remain also in 2020, and there may be times, few times you won with a price that can range around between 60 and
64,$65. The same for 2019.
DEFTERIOS: Would it be a mistake for OPEC plus to start cutting production before we know demand in 2020?
DESCALZI: I don't want to say, to say what is good or not good for OPEC. They are knowledgeable and they know what to do. And without OPEC, cut the
price, actually lower than what we have. So I think that they have been the regulator and the stabilizer, cutting and respecting the cuts because
not just say I'm going to cut, they respect the cuts.
So, it's quite important. I think that OPEC knows very well the situation. And is correct to say will they -- will they continue to cut until June
2020? And that is very important. Tariff, we'll see what happens because the situation is not really clear. But until that moment, I think that
role of OPEC also after that, the role of OPEC is essential, it's crucial for the oil market.
DEFTERIOS: What's your view on demand growth in 2020 then with the geopolitics on one side and the worry of a slowdown on the other, then?
DESCALZI: I think that oil will remain as you said about 1 million barrels. That is coming from the notice(ph) of the countries, and gas is -
- depends -- I think that gas will be stuck in the middle with this price for a couple of years. Because we have a lot of gas coming from Australia
that is saturated --
DEFTERIOS: Keeping the market down --
DESCALZI: Hitting -- and from the other side, we have Aereon; the American gas for a couple of years. So later on, I think that we can increase. But
the positive note is that the low price of gas are increasing the gas consumption. So the gas market in China, India is growing. For
environmental reasons that especially because the price is below.
And so they're pushing out coal and that is very positive because the market is getting used to increased gas consumption, gas utilization. And
so, I think that gas for a couple of years will be laid there but with a growing demand.
(END VIDEO CLIP)
QUEST: As the peso drops, the protests continue, and now Chile's government is promising to rewrite its constitution. A look at inside the
unrest in just a moment.
QUEST: Political unrest in Chile escalated on Tuesday as its currency plunged amid demonstrations which intensified. And these are live pictures
from the capital, it's coming to 6 O'clock in the evening, and as you're seeing already, protesters by their thousands have been also smoke from
fire over there. So the demonstrations are huge.
Also, unionized miners staged a nationwide strike following the government's move to rewrite its constitution which has failed to quell the
frustration. Protests are raging, the peso has now fallen to an all-time low, down more than 10 percent since mid October. We'll be live in the
capital in just a moment.
First, I'm joined by our political analyst Juan Carlos Hidalgo in Washington. Good to have you with us as always. The situation is what,
worse? Getting worse? Stabilizing at these poor levels? How would you describe it?
JUAN CARLOS HIDALGO, INDEPENDENT POLITICAL ANALYST: It's getting worse, people are -- a lot of people as we can see by the footage are demanding a
new constitution. That was a red line for the government of Sebastian Pinera, however, he gave in, he finally accepted the need to rewrite the
constitution, to have a new constitution.
But now their dispute is over how the process is going to take place? Pinera wants a congressional constituent which means that the current
Congress will write a new constitution, but the people in the streets are demanding a constitutional assembly. That means a whole new process to
write a constitution from the ground.
And they're also demanding his resignation. So there's no end in sight for this crisis in Chile.
QUEST: The events in Bolivia, have they given -- have they given hope to the -- to the people on the streets? In the sense -- look, the
circumstances may be different, the economies may be different, but in Bolivia, you know, one was ousted. Is there the feeling that the same
could be done here?
HIDALGO: I think they're very different situations. In the case of Bolivia, you had people in the streets because there was a blatant
electoral fraud by former President Evo Morales, they were demanding a new election, and they were demanding that he step down.
He had been in power for 14 years. It's interesting because if you look at the numbers, many people claim that Evo Morales was very successful in
reducing poverty and reducing inequality in Bolivia which is true. The same thing happened in Chile. If we see the numbers when it comes to
poverty, when it comes to per capita income, when it comes to social mobility, Chile is also a very successful country, but apparently people
are not pleased with the results of what they've been getting.
QUEST: Right, but the ability of the protesters, the facts may be different. But in one case they have managed to oust the person they were
trying to do that. So, is there a feeling that if they continue to prosecute their protests on the street, make the country ungovernable,
continue to inflict economic damage, eventually this one will go, too.
HIDALGO: I have no doubt that's the intention of many people in the streets in Chile right now. They want to topple Pinera, the difference is
that Pinera is a democratically elected president, there is a strong democracy in Chile, there are limits, whereas in Bolivia, you had a
president who wanted to perpetrate himself in power.
They are very different situations, but yes, there's equivalency there, many people think that just as Evo Morales was toppled, Sebastian Pinera
should be toppled.
QUEST: So, just to square this circle, the level of protests that's now taking place in this part of the world, is there a common thread other than
inequality and a populace that is fed up? Has there been -- you know, I use the term loosely -- has there been the equivalent of the Arab Spring tinder
-- well, somebody has lit the blue-touch paper that has allowed in otherwise desperate countries with different reasons to walk them on the
HIDALGO: I think it all comes down with a lack of growth. This is going to be a lost decade for Latin America. Growth has been basically no in the
last 10 years in most of the region. With some countries experiencing deep crisis, such as in Argentina, Bolivia and Venezuela, so there's a lot of
discontent out there.
When the economies were growing last decade because there was a commodity boom, people were happy. But now that the growth has stalled, that
unemployment is going up, and all the social advances that were made in the last decade are being reversed, now we see a lot of income -- anti-
incumbency mood, not only in countries like Chile with strong democracy, but also in countries where populace where running the show.
QUEST: Good to see you, I appreciate your time tonight, sir, thank you. Let's go to another part of the world where there's also violence. In Hong
Kong, violence is escalating and the government is offering no new ideas to dial down the tension. A new group has emerged, hoping to somehow break
the deadlock, it's called Hong Kong forward alliance and it's organizing a forum on Saturday that will feature peace-building experts from Northern
Ireland, South Africa and across Asia.
And now earlier, we spoke to one of the alliance leaders Christine Loh, and Kristie Lu Stout asked her how this group can help Hong Kong and months of
(BEGIN VIDEO CLIP)
CHRISTINE LOH, MEMBER, HONG KONG FORWARD ALLIANCE: We felt that Hong Kong really needs to talk, people need to talk --
KRISTIE LU STOUT, CNN INTERNATIONAL CORRESPONDENT: Yes --
LOH: Because we've seen so many families, colleagues, friends, they've argued over politics, this is a new experience for Hong Kong. I mean,
we've had different political views, but what we've never had in Hong Kong is people breaking off relations --
LU STOUT: Yes --
LOH: For political reasons. So, this period of time at Hong Kong has really stirred everybody up. But to get out of that is not to remain
silent, But is to know how we can talk to each other at times of conflict.
LU STOUT: Is there even an atmosphere to talk when we have a top leader in Hong Kong, Carrie Lam who calls hard-line protesters selfish rioters and
even enemies of the people?
LOH: What we need to do is to prepare ourselves for talk. I mean, the issue right now is people are fearful even in private settings, amongst
families, colleagues and friends that they can't talk to each other. So, never mind about more public dialogue that are political in nature. But
whether you're talking about private or public talks, I think it's important for ourselves to know that there are steps to prepare ourselves
for difficult discussions.
And we hope that our forum will introduce some examples from other parts of the world.
LU STOUT: The forum is taking place this weekend, it will be available for both English speakers, Chinese, Cantonese speakers --
LOH: And Putonghua speakers --
LU STOUT: And Putonghua also --
LOH: Because this is -- this is -- this is our society.
LU STOUT: Yes --
LOH: So we provide for English, Cantonese and Putonghua.
LU STOUT: Yes, and you've invited peacemakers from places like Northern Ireland, South Africa, what are the lessons from there that can be applied
here because it is very different here?
LOH: So, of course, Northern Ireland and South Africa are very well-known international examples --
LU STOUT: Yes --
LOH: And those are examples of conflict, deep conflict in society, that were actually much worse than what we have in Hong Kong. They have been
ongoing for years and years. So even there, we can learn something from their examples. About how you rebuild trust in a society.
How we have processes and so on that can enable people to have discussion during conflict.
LU STOUT: Do you really think talking about talking is going to lead to a resolution?
LOH: People everywhere throughout history have had to have difficult dialogues to get out of it. So the better that we can train ourselves to
listen, to talk in a way that enhances communication to develop trust through perhaps longish processes, these are the essential ingredients we
want to share.
(END VIDEO CLIP)
QUEST: Now, Instagram likes have been disappearing all around the world. Social media sites says it's removing them from users' own good. Now it's
taking the test to its own turf.
QUEST: Instagram is about to change fundamentally for some users in the United States. The social platform that's based around how many likes a
photo can get, it's been experimented with hiding the likes. Now the reason is the company says it wants to reduce pressure on its users. If a
user posts a photo that has a lot of likes, then another feels badly that theirs doesn't perform nearly as well as it's fairly obvious for the world
But the likes aren't gone completely. You can still view the count on your own posts, just not on someone else's. It's been tested on users in seven
other countries. Hadas Gold is with me to -- it's a good idea, isn't it? In the sense that we are obsessed by how many likes somebody else has got
versus vis-a-vis myself.
HADAS GOLD, CNN BUSINESS REPORTER: Well, I'm obsessed that you have a lot more likes on your Instagram than I have on mine. But according to this
new sort of experiment that Instagram is doing with several select U.S. users. So, if you're lucky or unlucky enough to get this, you'll get a
message on your Instagram saying that you -- that they're testing out a new way to look at likes.
Now, as you noted, you'll still be able to see your own likes. So, if you get no likes, you'll still get to see that, as if you get 20,000 likes.
But as you noted, everybody else won't be able to see them. Now, Instagram says they want your friends to focus on the photos, some of the things you
share and not on how many likes you get.
But interesting because social media kind of started with this whole idea of engaging and getting people to like you. And now, they're all pulling
back from this.
QUEST: Right, but the fascinating part is that the likes can come at different levels. For instance, knows that it will get 4 million likes
for one of his butchering videos, Kim Kardashian will get millions of likes. But even within families and friends that will never get those
numbers, it's still significant, you got 23 likes, yet, but he got 46 likes and she got 72 likes.
GOLD: Yes, but another thing that we're seeing from the critics as well, this might be a positive step forward that Instagram is doing with this
whole -- guys are trying to help with people's mental health and well being especially young people, especially teenagers, that a lot of the abuse
actually comes in the comments.
People writing mean things under the Instagram picture. And Instagram is testing out some ways that they said to try to stop the bullying. But
they're not doing anything to completely stop anybody from posting a bullying comment. And some of the critics are high profile users of
Instagram like the rapper Cardi B who is saying the comments are where all of her worst abuse comes from, not from the number of likes.
QUEST: Right, but what if -- unless those comments become a physical threat which is entirely possible in this day and age. The whole likes
thing just sort of feels wrong.
GOLD: That people can like your photo or not like your photo?
QUEST: Well, no, that it's become a battle in its own right.
GOLD: Yes, and also think about they can be faked. I mean, it's hard to tell sometimes, there's all -- we've seen all these reports of boxing,
everything like that.
QUEST: It takes me ages to do one of these Instagram videos. Now, I mean, you know --
GOLD: But you're so good at it.
QUEST: No, I'm not. But you know, finding, doing the things -- no, because the bar is now set so high.
GOLD: Well, you could become the Kim Kardashian of Instagram business reporters. You should try that.
QUEST: It's time for possibly -- when will this be rolled out for the rest of us?
GOLD: It's not clear, they actually haven't even announced if it will be rolled out across for everybody. They're just testing it out this week on
several select users. But as you said, this is their home turf, this is the important test.
QUEST: I have got the perfect Instagramable story which I'm going to be telling you about in the profitable moment which will happen in just a
moment or two, but before we do, the last moment or so of trade on Wall Street. The Dow is bouncing back between gains and losses, down just 5
It's so little, barely worth talking about. The S&P and the Nasdaq, they both hit intraday records, but again, the air has gone out of the balloon,
at least for the S&P, it's gone back into the balloon for the Nasdaq -- no, you can see, it's at a record, we have one record, Disney near the top of
the Dow 30, it launched Disney Plus streaming service.
Facebook is up after it launched a payment service which is inside the app. We will have our profitable moment on the longest flight in the world --
well, another one, London to Sydney, nonstop. I'll tell you all about it, it happens on Thursday in a profitable moment.
QUEST: Tonight's profitable moment. I won't be with you for the rest of the week because I am on Thursday joining the Qantas flight, the nonstop
test flight that they're doing with the 787 from London all the way nonstop to Sydney. Now, yes, you'll say, but didn't they do that recently with New
York to Sydney? They did indeed, you are right, 9,944 miles in 19 hours, 16 minutes.
But the London flight is longer, quite a bit longer. It is 625 miles longer. Which means that in rights the flight should also be longer. Now,
I hope that Qantas will slow the plane down so that at least our flight is longer than the New York one if only by a couple of minutes.
These long flights, ultra long haul are the future. We'll talk -- you'll be able to follow me online on Instagram. There's no Wi-Fi on the plane,
but afterwards, full blogs and all that sort of stuff. The reality is though, while some people shy away from a 19-hour, 20-hour flight, many
believe that, that is the future to get from A to B as fast as possible and preferably in the most comfortable way.
I'll let you know how I fare with my sciatica, my lumbago, my bad knee and all the usual things that happens on long distance travel. And that's
QUEST MEANS BUSINESS for tonight, I am Richard Quest in London, whatever you're up to in the hours ahead, I hope it is profitable.
Only a record on the Nasdaq, and I'm off to Sydney.