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Quest Means Business
Oil Prices Surge Fuels Inflation Concerns; U.S. Air Travel Reaches Highest COVID-Era Level; Greece Banks On COVID-Free Islands To Restore Tourism; Tennis Phenom Drops Out Of French Open; Quest's World Of Wonder. Aired 3-4p ET
Aired June 01, 2021 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:17]
RICHARD QUEST, CNN INTERNATIONAL ANCHOR: An hour to the end of trading after a long weekend on Wall Street, an early jump at the open has quickly
faded for the DOW. Quite a sharp day as you can see. We're probably going to end the day positive, but not by much, and certainly the optimism of the
first hour no longer permeates.
The markets as they look, and the events of the day as they are.
The great inflation continues. Now, it's oil prices that are setting new milestones.
The World Bank describes Lebanon as facing one of the worst crises in modern economic history.
And the tennis Grand Slam say they will work with players and the media to try to help with mental health.
We are live in New York, as you would expect at this time, and it is Tuesday. Yay. It's the first of June. I'm Richard Quest, and I mean
business.
Good evening. We begin tonight with one of the surest signs the global economy is roaring back to life. Oil demand is surging. Now, oil prices
have hit a two-year high, around $70.00 a barrel for Brent. Remember where they were back in February where they actually -- of last year -- where
they actually went negative on the futures market. That was a sign of a collapse in demand along with supply, which led to the first time futures
going negative.
However, OPEC nations have suddenly seen such an increase and a return to demand, and it will continue as economies reopen in Europe. And, so, as
that happens, inflation is returning to the Eurozone. Inflation rose last month to two percent for the first time since 2018. Look at the graph, you
can see quite clearly how it's been under trend performance.
It is just below, and now at the moment, the two percent inflation rate for the European Central Bank target. The latest figure is stoking the
conversation over whether the E.C.B. and indeed the Fed, which is facing similar pressures, need to adjust their policies to keep it in check.
Clare Sebastian is with me. The inflation doves will tell me these are -- there are unique circumstances that won't last. We've had Fed governors
saying something similar, and therefore we should not get ourselves in a tizzy over this.
CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT: Right, Richard. This is the big question. We've got the E.C.B. meeting on June 10th. The Fed is going
to be meeting five days after that. That is the question they are facing because there is a lot of pressure, and the more data we get, the more this
debate rages.
Just today for example, we got the PMI numbers during a big surge, a big rebound in manufacturing in both the U.S. and in Europe. But both of those
coming with these inflation pressures, supply chain disruptions, shortages of workers, all of these things constraining capacity, stilting the
recovery somewhat and pushing up prices.
This is what we got from the U.S. They saw one of the fastest rises in input prices since data collection began in May 2007. And one of the really
interesting things from this report, Richard is that the question that arose from it is how long can these surges go on. Is this something that we
see peaking?
They say that the forward expectation of manufacturers is starting to come down a bit, so that raises another question alongside this robust recovery
is how much longer that can go on. And one for the Fed to consider as well.
QUEST: Right. But if this was just a supply case of supply chain difficulties, and it was only on the supply side of the equation, that will
be one thing. But on the demand side, we know there's pent-up demand, we know there is money, and that money both in the E.U. and in the U.S. is
being added to at an astonishing rate by obviously fiscal stimulus and continued monetary stimulus.
So, Clare Sebastian, where does that leave us?
SEBASTIAN: With rising prices at the moment, Richard. The demand surge is coming in, as you say, fiscal stimulus here in the U.S., something that
people who usually would come down on the side of this government are starting to question, there is more of that in Europe, and there are
concerns out there, this isn't clear-cut as a recovery.
We see today, Richard, from OPEC that there are still concern that they are moving with caution because they're concerned about the virus in places
like India and Japan. They're concerned about what would happen if there is an Iran deal, and that supply comes on to the market and here as well, when
you talk about inflation, there are concerns on the unemployment side.
The Fed of course, has this dual mandate and there are still eight million people who aren't in the job market who were before the pandemic, not even
factoring in the gains that we would have seen month on month had there not be a pandemic.
[15:05:12]
SEBASTIAN: So a really difficult balancing act. It is not clear-cut, and I think even with these meetings coming up, that question on whether this is
transitory is still going to rage.
QUEST: Clare Sebastian, thank you. Let's talk more with this. European markets pushed to an all-time fresh high on Tuesday.
London, Frankfurt, and Paris were all up between a half a percent and one percent. You can see the numbers, the best of the day was in Frankfurt and
the triple stack shows the good start to the day has sort of evaporated. We're now pretty much Even Stevens for the day overall.
The optimism is outweighed by worries that inflation might cause the Fed to change course.
Neel Kashkari is the President of the Minneapolis Fed. And like I alluded to a moment or two ago, he makes the case for shrugging off inflation fears
and keeping an accommodative policy.
(BEGIN VIDEO CLIP)
NEEL KASHKARI, PRESIDENT, FEDERAL RESERVE BANK OF MINNEAPOLIS: The Federal Reserve has the tools to adjust interest rates to keep inflation in check
and to prevent it from spiraling out of control.
But let me tell you something. There was a lot of complacency in the ten years following the great financial crisis when millions of Americans were
on the sidelines. So, it took 10 years to rebuild the labor market, and we cannot have another 10-year recovery.
And so while I appreciate the fact that some people are really worried about inflation, they didn't seem that worried when millions of Americans
were on the sidelines in the last recovery.
(END VIDEO CLIP)
QUEST: Shamik Dhar is the Chief Economist at BNY Mellon, Bank of New York Mellon, also the former Chief Economist for the British Foreign Office. He
joins me from Surry. Now then, let's find out, nail your colors to the mast. Where are you on this inflation? Are you worried that we are seeing
inflation take off? Or are with you with the Fed and the other doves who say this is just a blip because of supply issues?
SHAMIK DHAR, CHIEF ECONOMIST, BNY MELLON INVESTMENT MANAGEMENT: Well, Richard, you know economists hate to nail colors to the mast, so you've put
me in a difficult place. But, put it this way, I'm more worried about inflation, particularly inflation in the U.S. than I have been for the past
20 years.
I've been an inflation dove for most of that time, but I think there are real reasons to think actually this time is slightly different, and we need
to start factoring that into our investment decisions.
QUEST: Right. We'll do the investment decisions inside of the equation in just a second. If the dove is a little more hawkish, would you be calling
for a tapering of QE in bond purchases from the Fed sooner rather than later? Bearing in mind we've got to probably go through tapering and all of
that before we even get to raising the policy rate.
DHAR: Well, I think so, yes. And you're starting to hear murmurs coming out of the Fed in that kind of direction. I mean, Neel Kashkari is quite right
that, you know, we must learn the lessons of the financial crisis. But there's a danger that the Fed may well be fighting the last battle.
And this recession is very, very different from the great financial crisis, particularly in terms of the speed in which we're bouncing back and the
amount of fiscal and monetary stimulus there is in the system.
So, actually, yes, I think if I were on the F.O.M.C., I'd be thinking hard now about when to start tapering.
QUEST: What about the E.C.B.? The Fed has already telegraphed its asymmetric inflation target, as now being -- they will allow more than two
percent for a particular time. We're still waiting for guidance from Europe on how they will handle an inflation number above target if that's what
happens.
DHAR: I'm less worried about Europe than I am about the U.S. I think Europe comes from a much weaker position. Structurally, the inflation rate has
been much lower in Europe than it has been in the U.S.
So I think in a way, the E.C.B. will be, if you like, happier to see inflation above target for some time than maybe they would generally admit.
It's important to remember that the core inflation rate in Europe is still only 0.9 percent. Yes, the headline has gone to two, but that tells you a
lot about where energy prices -- what energy prices are doing.
I think they will be looking at the core rate and I think they will stay accommodative for a lot longer. After all, it's been a hell of a long time
since inflation was above target in Europe. They may well feel even though they don't state it explicitly that they've got room to catch up.
QUEST: The investment decisions, I need to ask you, all right, so the darlings of the market, the tech stocks, they get battered when there is
talk of tapering, would you make any changes to investments, say, for example, on the FAANGs, out of FAANGs rotations, cyclicals? Would you make
any investment decisions consequent to what we know today?
[15:10:10]
DHAR: I mean, put it this way. I think, we're seeing a broadening out of the recovery in the economy, and I think that will be reflected in a
broadening out in the market as well, and yes, I think small caps, cyclicals, value may well outperform slightly over the next year or so.
The issue with inflation is it is not so much the inflation itself, it's what the Central Banks decide to do about it that matters.
Now, where tech stocks and growth really could get hit is if the Fed or the E.C.B. decides to dive in a lot earlier than markets are currently
expecting. I don't really see that happening just yet, but there is a risk that that could and if that did, that would be a very nasty situation for
tech.
QUEST: And if that does, you will be here to tell us all about it and to help us understand what to do next. Very glad to have you with us tonight,
sir. Thank you for taking time out of London. Thank you.
QUEST MEANS BUSINESS from New York. Americans are flying in big numbers again. Infections are dwindling, vaccinations are everywhere. I mean,
vaccination is just literally pouring out in some of these cities.
The case for travel between the U.S. and Europe is growing. The French Ambassador to the U.S. after the break.
And a crisis that rivals almost any we've seen since the mid-19th Century. The dire state of Lebanon. One of its former economy ministers joins us
after the break.
(COMMERCIAL BREAK)
QUEST: U.S. airports over the Memorial Day weekend were the busiest they've been since the pandemic began. The coronavirus cases in the U.S. are now at
the lowest level since March of last year, and the vaccine rollout is progressing at a real pace.
Restrictions are easing across the United States, and now there is real pressure for travel between the U.S. and Europe to resume.
Philippe Etienne is the French Ambassador to the United States and former adviser to President Emmanuel Macron joins me now. Ambassador, it is good
to see you, sir. I appreciate you taking time.
I note that France is intending to open up in just a few weeks or a few days to other countries for tourism. Do you think this is likely to
continue? Is France on target for opening up as planned?
[15:15:00]
PHILIPPE ETIENNE, FRENCH AMBASSADOR TO THE UNITED STATES: Yes, I think so. Thank you, Richard, for having me. Good afternoon.
We have started re-opening our restaurants, our culture in May, and the next step is on June 9th, in a couple of days, and we of course want to
reopen to our American friends also and to welcome our tourists from the United States.
By the way, also in France, the rollout of vaccines is very quick now. We have vaccinated nearly 50 percent of adults who have received their first
shot.
QUEST: So, if June 9th goes ahead and all goes well, at what point, bearing in mind what the Justice Commissioner Reynders said earlier in the week, at
what point will the E.U. and the U.S., do you think, get rid of the travel ban, even though it's all fraying and falling apart at the seams, anyway?
ETIENNE: Well, it's a question to ask on both sides. And I really hope we can start traveling again as we used to do as soon as possible. But, of
course, it's a decision for each side.
On the E.U. side, I have been working very hard as the Commissioner told you on the path to create conditions for starting again, free circulation.
QUEST: Let's talk on wider issues now about the U.S.-E.U. or French even, relationship. Have a listen of course to what Joe Biden said recently.
You'll be well familiar, in fact, it is probably ringing in your ears every time somebody talks to you.
Have a listen to the President.
(BEGIN VIDEO CLIP)
JOE BIDEN (D), PRESIDENT OF THE UNITED STATES: America is back. America is back. Diplomacy is back. It is the center of our foreign policy.
As I said in my Inaugural Address, we will repair our alliances and engage with the world once again, not to meet yesterday's challenges, but today's
and tomorrow's.
(END VIDEO CLIP)
QUEST: Now, clearly you believe the President, America believes -- he believes America is back, but how weary are you that America is back for
how long, bearing in mind that a Donald Trump or a Donald Trump namesake could take the U.S. back in the opposite direction in four years?
ETIENNE: Well, for the time being, without any doubt, we see very positive signals, the decision to come back to the Paris Climate Accord has been
taken very quickly.
We have a suspension of tariffs on the Airbus-Boeing tariffs, and hopefully settlement of this issue, and the fact that President Biden will make in
June his first travel abroad to Europe with very important meetings, G-7 NATO, E.U.-U.S., all this points to the fact that indeed, restart to
redeveloping our relations as allies.
And the European Union has made a very good and substantial proposal for the future of the E.U.-U.S. relations last December.
So we have very good basis to redevelop our relation, our partnership for the future.
QUEST: Right. But I mean, your President, President Macron had a very strange relationship with the last U.S. President. They were bros until
they weren't and then they fell out and then they didn't. Do you see a strong relationship with President Biden? Can France play a unique role
there in a similar sort of way that they weren't able to try to play with Trump?
ETIENNE: Well, under different circumstances, of course, yes, undoubtedly we are really working very hard right now together between the U.S. and
France and other nations, for instance, to develop a very ambitious action to provide other countries with vaccines.
We have also a very strong action going on, on the front of biodiversity and climate. And last example, we had a conference in Paris on the
financing of African economies. We need a Marshal Plan to help African economies recover.
And on all this, France, we have a very close cooperation and conversation with the U.S. administration.
QUEST: Ambassador, we must talk again before long, this time on trade issues and French trade in the United States. That's familiar indeed, and
by the way, if -- if -- Boeing and Airbus, the U.S. and the E.U. settle, fully settle their dispute over subsidies, I'll buy you a bottle of French
champagne. I'm that confident that they will never settle that while you're in Washington and I'm doing this program. That's how confident -- how does
that sound for you?
[15:20:20]
ETIENNE: Okay. I'll take the bet.
QUEST: I didn't say which French champagne, but I'll buy a bottle of champagne. Good to see you, Ambassador. Thank you.
ETIENNE: Thank you.
QUEST: London's Heathrow Airport which is trying to make sure passengers from so-called red list countries don't mix with other arrivals. Only
British or Irish nationals are currently allowed to enter the U.K. from those red countries such as Brazil, India, or Turkey with high COVID rates.
And then after arrival, they have to quarantine for 10 days in hotels.
The reports of long queues and bottlenecks at the Heathrow border, and so now, a dedicated terminal for red zone passengers in Terminal 3 where they
are at the moment, they will shove them all to Terminal 4.
Greece is hoping to declare its islands COVID free by the end of June. Greece has opened to tourists two weeks ago and of course, the tourism
industry as we have discussed on this program many times accounts for nearly 20 percent of GDP.
CNN's Sam Kiley reports from Mykonos on what is being called Operation Blue Freedom.
(BEGIN VIDEOTAPE)
SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): Not exactly the modern temple to Aphrodite that Mykonos has a reputation for. The party
island is barely waking up two weeks after the official tourist season was declared open.
Museums are still locked up. Many shops shuttered, but others are getting a makeover while plans to create more than 80 COVID-free islands get
underway.
It's the centerpiece of Operation Blue Freedom, the Greek plan for economic recovery driven by tourism.
Before the pandemic, a fifth of the population was employed in the industry, which generated 18 percent of GDP. With U.S. visitors being
Greece's biggest spenders, Athens is banking on a summer surge in American visitors, and U.S. airlines are increasing flights to Greece this year from
New York, Chicago, Philadelphia, Newark and Washington, D.C.
The key is an aggressive vaccination campaign to jab every island resident by the end of June so visitors can come if they've been vaccinated
themselves, survived infection, or have a negative PCR test.
IRENE ASIMOMITIS, RECEIVED COVID-19 VACCINE: It's a COVID-free island. It is a COVID-free island and we wait for all the tourists to arrive in
Mykonos to enjoy the beaches, to enjoy the life.
KILEY (voice over): Getting that done may rest on ending nationwide regulations that ban music and crowds.
Iraklis Dimopoulos (ph) is a heart doctor. He also owns several Mykonos night clubs and hotels. His clients call in with two questions, especially
from America.
UNIDENTIFIED MALE: First of all, they ask if you are all vaccinated and second, if they can really party on the island like they used to.
KILEY (on camera): So, vaccine party.
UNIDENTIFIED MALE: Yes. That's the magic recipe.
KILEY (voice over): Around 18 percent of Greeks have been fully vaccinated. New COVID cases are falling, and deaths are about 40 a day.
But now though, the clubs are empty. Only cocktail shakers generate any rhythm. Potion from Serce to soften the blues. Tourists are trickling back,
and they're doing their best to enjoy a beach without decibels of dance music.
But with more than half the residents' population vaccinated, all eyes are turning to Athens to unleash Dionysus and let the fun begin in July.
VANGELIS SIAFIDAS, CO-OWNER ALEMAGOU BEACH BAR AND RESTAURANT: Not necessarily that the tourists need to feel that safe in order to come and
party and feel safe, you know, because, for example, last year people were ready to party, it was hard for us to enforce the rules on them.
But, I think we are all trained now, us, the clientele and the personnel -- everyone, so I think, yes, this is going to be a better summer.
KILEY (voice over): That is, if Hades of sound is your thing.
KILEY (on camera): There's a lot of talk in Mykonos about how the vibe won't get going until the loud music starts, but for the more mature
traveler, that can only be a relief.
KILEY (voice over): Sam Kiley, CNN, Mykonos.
(END VIDEOTAPE)
QUEST: But what we really want to know is what happened after the cameras stopped rolling.
As you and I continue tonight, the World Bank says Lebanon is suffering one of the worst economic crises anywhere, and I mean since the mid-19th
Century, or at least they do.
In the last year and a half, the country has been hit with their financial meltdown, the pandemic and last year's deadly explosion in Beirut.
The World Bank estimates that Lebanon's economy shrank more than 20 percent last year, an amount typically associated with wars and it is expected to
shrink further this year.
Nasser Saidi is a former Lebanese Economy Minister and former Vice Governor of Lebanon's Central Bank.
[15:25:10]
QUEST: Now, President of Nasser Saidi & Associates joins me from Dubai.
All right, sir, I mean, everybody has had a hand in this fiasco, but now, it is beyond serious and it is beyond devastating.
So, when the World Bank says it is the worst or one of the worst since the mid-19th Century, what do you make of it?
NASSER SAIDI, PRESIDENT, NASSER SAIDI & ASSOCIATES: Well, the World Bank is accurate. It's probably the third worst after Chile in 1926 and the Spanish
Civil War.
But the main difference I think in those two cases, you had coups, you had political coups. In this case, it's a man-made disaster.
The people responsible for it are still in power and they are continuing with policies which are leading to a further deterioration in GDP,
increased poverty, inflation, exchange rate depreciation, and increasingly now mass migration of the population.
So, that's was we are looking forward to.
QUEST: Carlos Ghosn was on the program last week, you're familiar with him, of course, talking about this. You talk about the currency and the
necessity of the currency stabilizing. Listen to what he says. I want to know if you agree.
(BEGIN VIDEO CLIP)
CARLOS GHOSN, FORMER CEO, NISSAN: Today, the most urgent issue is to stabilize the currency. As long as the currency is being volatile and we
have a huge inflation devaluation of the currency, we can't fix anything else.
The first thing is stabilize the currency, then address the economic issues of Lebanon.
Lebanon has been for many, many years with political problems and political conflicts, but the economy was reasonably going in reasonable shape.
Finances were reasonably held, so I think you should start by stabilizing the currency.
(END VIDEO CLIP)
QUEST: How do you do that? When there is no confidence, and the various sides can't agree, and there is the question of violence and explosions.
How do you stabilize the currency? Can you?
SAIDI: Well, you're talking about a multiple exchange rate system, I mean, several exchange rates from a fixed rate which nobody really uses except
for subsidies by the Central Bank to a market rate which is running at about 13,000. And you're right, you can only stabilize it only if you have
an overall macroeconomic fiscal financial plan, and that's not on the cards right now. What you really need is an agreement with the I.M.F.
You can't stabilize the currency if people don't have confidence in the banking system and including the Central Bank, and then government. So,
what you need is a comprehensive approach, but I think that they --
QUEST: You're not going to get it. You're not going to get --
SAIDI: I think the danger --
QUEST: Sorry. Finally, where does it start?
SAIDI: Well, immediately, I mean, there are certain things you want to avoid. You want to avoid Lebanon becoming another failed state on the
shores of the Mediterranean. Certainly, the Europeans and nobody else wants that. You don't want another security problem there.
You want to address the humanitarian crisis, which is growing. Fifty five percent of the population is now poor, 25 percent is food poor. And then
you've got this issue of deteriorating security, as you would expect.
So, those are things that you need to immediately address even if you don't have a government in place.
The next step I think is absolute priority, is to form a government at the shortest time possible. And you need to give the government extraordinary
powers because you have a very limited time before elections in 2022.
And that means you've got less than one year to act and introduce a whole series, that's really what you need to do immediately.
QUEST: As we go through this, sir, you'll be back to help us understand more. I'm grateful for you tonight on that. Thank you.
SAIDI: Thank you.
QUEST: QUEST MEANS BUSINESS, tennis star, Naomi Osaka, has received an outpouring of support after withdrawing from the French Open. The
conversation that she spurred on athletes' mental health, in a moment.
(COMMERCIAL BREAK)
[15:30:00]
(MUSIC PLAYING)
QUEST: The organizers of the tennis grand slam's tournament say they commend Naomi Osaka for drawing attention to mental health and collectively
pledging to work with players and media to make improvements.
Osaka is the world's highest paid female athlete and withdrew from the tournament on Monday, citing her bouts of depression and anxiety,
especially when dealing with the press.
Some of her biggest sponsors, including Nike and MasterCard, have expressed their support and have tennis legends, such as Billie Jean King and other
pro athletes on Twitter.
Serena Williams said, after her most recent match, she understands what Osaka is going through. Christina Macfarlane is in London.
When we spoke yesterday, we weren't sure what's what.
You know, I'm sorry but the facts haven't changed here, have they?
All that's happened is that people have now got to respond to them in a different way than they were prepared to do yesterday.
CHRISTINA MACFARLANE, CNN CORRESPONDENT: Yes. And I think quite rightly so, Richard. When an athlete comes out and reveals, as Naomi Osaka did
yesterday, that she's been struggling with depression for a couple of years, long bouts of depression, there needs to be a different and
sensitive response.
So I think the solidarity that we've seen from sponsors and other athletes to Naomi Osaka over the past 24 hours just indicates how the messaging
around mental health is already changing in sport, as a result of her bravely coming out and sharing her experience of what she has been through.
And it's also posing questions now to we, the media, to officials in ways we haven't done before, such as, you know, what is the role of officials
and their obligation to players?
What is the role of the press and press conferences?
And should that be reviewed even, if it is causing unnecessary distress to players?
But most of all, crucially I think of all is the question of how many other athletes have been silently suffering with this and we have not known about
it?
You mentioned the reference to the four grand slams off the top there. Well, they have been roundly criticized over the past 24 hours since we
spoke, Richard, as to their response to Naomi Osaka, their heavy-handed response, in threatening more fines and sanctions to her if she was to
continue with her stance, which ultimately left her withdrawing from the tournament.
They issued another statement just a short while ago, saying that they offer her all their support; she is an exceptional athlete.
[15:35:00]
MACFARLANE: "We hope she returns to the sport as soon as she deems appropriate," and that they are intending to work together with the two
governing bodies of the men's and the women's game to advance the mental health and well-being through further action.
So it's encouraging to hear, Richard, that they are now working collaboratively to take steps.
But how they intend to do that, to go back to your original point, comes back to the idea of, how do you treat different athletes differently, you
know, who are going through mental health issues that we may not know about?
QUEST: Christina, thank you.
Joining me now is Christopher Clary, tennis correspondent for "The New York Times," who's in France at the moment.
You wrote today, sir, really, a classic sort of excellent synopsis of, on the one hand and on the other hand. You wrote that media coverage has
helped Osaka become the world's best female athlete and facing unwelcome questions even in defeat does not seem like too much to ask.
And then, on the other hand, one of the takeaways may be the realization that some players really do find it all too much to bear.
So, sir, where do you come down?
CHRISTOPHER CLAREY, TENNIS CORRESPONDENT, "THE NEW YORK TIMES": This is really a tough one, Richard, I have to say, just because of the level of
sensitivity we need to have and I think she's kind of been revealing things as we go along, as Christina points out.
So I think there's a new realization about how serious this could be and people want to treat this with a different type of a response than they
would have two or three days ago.
The other thing that is interesting here is that a lot of tennis world has been focused on young players, very young players, and protecting them,
people in their teens. There have been a lot of rules put in place and limitations but not so much focused on adult players.
And Naomi Osaka is 23 years old. She's been a star for a couple of years so now we need to debate, I think very honestly and thoroughly, what needs to
be done for everyone, what kind of exceptions need to be put in place, what kind of rules need to be changed, if need be and making a really good,
solid investigation of the implications of this.
QUEST: You raised a very good point in your article that, I mean, the grand slams are coming out of this sort of somewhat tarnished and beaten and bad
guys and gals. But you raised the point, there was plenty of opportunity for Osaka and her team and her advisers, her coach, her manager, all the
team around her, that make her a top flight professional athlete, to go to them and explain.
And many opportunities were given.
CLAREY: This decision to point that essentially news conversation (ph) should not have come as a surprise to people in the organization here. It
should've been something they were aware of and they could have planned for and discussed.
It was sort of dropped out of the blue. And that's where all this comes from. I think it's really a lack of proper communication and I think it's
created a lot of these issues that we're seeing.
QUEST: Would you expect real change?
Or do you expect cosmetic change to get over this crisis but actually back to business as normal by next year?
CLAREY: Maybe a mix of the two, I'd say. But look at the history of the sport of tennis. They didn't put rules in place to protect young players,
the Jennifer Capriati years, if you remember her, Martina Hingis came along and there were so many teen prodigies, like Steffi Graf. They changed the
rules and the limitations to be able to protect them.
They can do the same for adult athletes. But there needs to be an equality and a sense of fairness to all the players, not to put more burden on some
than others to make it happen. It's not an easy situation to solve.
QUEST: Now we're going to have a real live opportunity with Wimbledon coming up. So you've got Wimbledon coming up. We don't know whether Osaka
is going to pull out of that as well or whatever.
But do they make it clear to her, because, let's face it, they've got an opportunity to show they mean business.
CLAREY: Yes, Wimbledon is different than most of them because it's much more of a monitored situation in the news conferences there. Most tennis
news conferences, you're on your own, up on the rostrum. Wimbledon, you have a moderator with you so you can kind of control the flow.
If Naomi comes back, Wimbledon is far from certain, there will be a way perhaps for her to have help and maybe dismissing questions she's not ready
to answer or having some help in managing the situation if she has anxiety.
QUEST: But I guess, with your great experience, you're able to point out there is that difference.
Do you think they will feel the need to show that they're doing something rather than just relying on a status quo format?
CLAREY: The key things I've said is the fairness aspect. They're bending over backwards for Naomi and not for anybody else, I'm not sure other
players are going to appreciate that.
However, if she has a really serious psychological issue that needs to be resolved, there has to be mechanisms in the sport that will allow for
exceptions, there for her to be able to handle, either time away from these responsibilities or other exceptions. I think it's important and we're in a
different era now. There's more awareness about this now, Richard.
QUEST: I'm very glad that you, sir, took time out of Paris tonight to come and join us and talk about it. Thank you. I appreciate it.
I'm going to show you the way the markets are just looking before we leave you and the media for the moment. The Dow is, it's pretty much, as I said
at the beginning of the program, it's tootling. In fact, it's tootled down.
[15:40:00]
QUEST: It may even go negative before the top of the hour, which is 20 minutes away.
That is QUEST MEANS BUSINESS. I'll make a dash for the closing bell in 20 minutes' time. Before that, after a short break, you'll want to join me as,
together, we go into our World of Wonder.
(MUSIC PLAYING)
(COMMERCIAL BREAK)
(MUSIC PLAYING)
(BEGIN VIDEOTAPE)
QUEST: Hello.
Gorgeous. This is what a vacation looks like.
QUEST (voice-over): Fueled and fortified, I cross the Kizilirmak River, that runs through Avanos. This river and the mud it produces has provided
generations of craftsmen with a distinctive red clay that's made the town famous for its pottery.
Galip Korukcu is a master of his art. His work is celebrated throughout this region and beyond. Using the traditional kickwheel and joined by his
wife, Lilian, also a potter, it's obvious, he learned his craft from an early age.
QUEST: Did your father do this?
GALIP KORUKCU, POTTER (Speaking foreign language).
UNIDENTIFIED FEMALE: He says, I learned it from my father, my father learned it from his father and so on. So he's at least the fifth generation
in his own family.
QUEST (voice-over): I'm amazed at the speed, the precision, the skill.
QUEST: How many pots do you make a day?
UNIDENTIFIED FEMALE: If he would work for the whole day, he could make about 150 pots.
QUEST: Really?
UNIDENTIFIED FEMALE: Yes.
QUEST (voice-over): Galip has invited me to have a go. This has all the hallmarks for a horrible ending.
(MUSIC PLAYING)
QUEST (voice-over): All right. Let's start with the basics.
KORUKCU: Turn, turn right.
QUEST: Turn what?
KORUKCU: Turn, turn, turn, turn. Turn.
QUEST: I'm turning.
KORUKCU: Turn.
QUEST: I'm turning.
I have no idea what I'm making.
[15:45:00]
QUEST: But it could be a thing of beauty. It could be an original Quest.
UNIDENTIFIED FEMALE: It will for sure be original.
QUEST: I know, don't give up the day job.
QUEST (voice-over): It's the sort of thing that only a mother could love. My Pot by Richard Quest, age 58 and three-quarters.
KORUKCU: Very nice.
QUEST (voice-over): My efforts will clearly never be on exhibition in elegant showrooms where Galip's creations are on display. And now I find
out he has another collection that's a lot more unusual.
QUEST: Now where is that?
UNIDENTIFIED FEMALE: Inside.
QUEST (voice-over): You heard me right the first time, Hair. This is a museum dedicated to locks and tufts, willingly donated by women over the
years.
QUEST: Oh, oh, oh.
(MUSIC PLAYING)
QUEST: Boy, this is --
UNIDENTIFIED FEMALE: Yes, different.
QUEST: That's one word for it.
QUEST (voice-over): There are more than 16,000 tresses from all over the world. This is not so much a collection, rather a shrine to female locks.
QUEST: It's a bit strange, isn't it?
KORUKCU: (Speaking foreign language).
KORUKCU (through translator): I'm not forcing them to give. They give by themselves.
Who am I to say if it's strange or not?
QUEST (voice-over): For more than 30 years, women have been cutting and giving their hair.
QUEST (voice-over): Here we go, 1984.
QUEST (voice-over): And that includes Galip's wife, Lilian.
QUEST: So what do you make of it as his wife?
I mean, this is spooky.
LILIAN KORUKCU VAN DER ZEE, GALIP'S WIFE: Well, now, I'm so used to it because I live in it for 40 years. So --
(LAUGHTER)
VAN DER ZEE: But I remember, in the beginning, I thought it was very funny.
KORUKCU: (Speaking foreign language).
VAN DER ZEE: "What can I say?" he says.
It started with one piece and this is what it became.
QUEST (voice-over): You will be relieved and I am reassured that there is purpose behind this. Before the pandemic, the names attached to the locks
would be selected randomly. And several women each year would be invited back to the studio for a week of board, lodging and pottery classes.
So where do I make my donation?
VAN DER ZEE: No, we don't want your hair, you know. Only women. Only women.
(LAUGHTER)
QUEST (voice-over): Not even the prospect of a free holiday will entice my producer to give up her hair. I leave this place feeling even more
intrigued about the people who call Cappadocia home. And I'm looking for some strong shampoo.
(MUSIC PLAYING)
(COMMERCIAL BREAK)
(MUSIC PLAYING)
QUEST (voice-over): In Cappadocia, there is a harmony between nature and humanity. And there's no better place to see this bond than strolling
through the Goreme Open Air Museum.
UNIDENTIFIED MALE: No, we can't keep doctors (ph).
QUEST (voice-over): Don't be fooled. The unprepossessing outside of the cave gives little hint that is the ecclesiastical beauty that is within.
QUEST: Oh, my word. Gosh!
QUEST (voice-over): There are hundreds of such churches carved into the rocks in Cappadocia. This Dark Church is one of the most famous.
QUEST: How old are these frescos?
UNIDENTIFIED MALE: (INAUDIBLE).
QUEST: 11,000 years ago?
UNIDENTIFIED MALE: Yes, yes.
QUEST: Wow.
I am not of Christian faith but I can certainly appreciate the awe- inspiring spectacle of these frescos. Just look at the detail. Look at the colors.
[15:50:00]
QUEST (voice-over): Such beauty in a humble cave. In fact, wherever I go here, I'm learning to expect the unexpected.
QUEST: Up, up and away.
QUEST (voice-over): And always be ready to haggle.
QUEST: How much is this?
QUEST (voice-over): This shopkeeper is giving me a bargain. My next port of call will be much tougher. I can't go to Turkey without talking tapestries
and carpets.
QUEST: Ah.
UNIDENTIFIED FEMALE: Hi.
QUEST: Hello. Nice to meet you.
(CROSSTALK)
UNIDENTIFIED FEMALE: Welcome.
QUEST (voice-over): That's Ruth Lockwood, a carpet connoisseur from New Zealand, who came to Turkey more than 30 years ago.
RUTH LOCKWOOD, CARPET CONNOISSEUR: I mean, when I first came here, it was wild. It was like the Woodstock of carpets.
And people will still say to me, oh, you weren't here then, were you?
QUEST (voice-over): As the traders bring in their wares, Ruth has given me a crash course in picking the perfect carpet.
QUEST: How often do you go through this?
LOCKWOOD: I do this four times a day. The thing is, they're going to bring you things that you don't like and they're going to bring you things that
you don't want. And you always hope that you'll find that gem.
QUEST (voice-over): Don't play poker with Ruth. She gives nothing away. A nod, a twist, a closed eye; pieces are tossed aside. It's clear, Ruth is
after quality, not quantity.
Ruth is the carpet magician. And I am the sorcerer's apprentice.
QUEST: Oh, hang on. Hang on. Oh, I do like that. Oh, oh, you can feel the quality. Not that I know anything about what I am talking about.
QUEST (voice-over): Ruth's wince tells me I've made a schoolboy error right at the start with my boyish enthusiasm.
LOCKWOOD: He just put the price out for me. It's always best to not look too enthusiastic when you're buying because, you know, they get an idea
that you love it and, of course, the price is going to go up.
QUEST: Sorry.
(LAUGHTER)
QUEST: No, I don't like that.
(LAUGHTER)
QUEST: That'll never sell.
QUEST (voice-over): There's more to carpets than just wheeling and dealing. These are woven identities, threads of history, if you will.
LOCKWOOD: Every region, every village, every tribe has sizes, colors and designs that belong to that group. This particular piece is around 90 years
in age. This one is an old one.
QUEST: Say old one, does that mean that --
LOCKWOOD: It's been used.
QUEST: You know that line, used car salesman, used carpet saleswoman.
LOCKWOOD: Oh, you naughty man.
QUEST: (INAUDIBLE).
LOCKWOOD: Well, I would look down my nose a little at you and say, no, they're not secondhand. They are beautiful vintage, they're antique and
they represent a history and a tradition we can't go back to.
QUEST (voice-over): They are now also essential for a new type of tourist who's coming here.
QUEST: I'm going to be an Instagram star.
QUEST (voice-over): In this 400-year-old inn, I'm going to receive the ultimate Instagram experience.
QUEST: Hello.
UNIDENTIFIED MALE: Hi.
QUEST: All right.
Where do I begin?
QUEST (voice-over): You begin with a carpet, of course.
QUEST: Oh, yes, yes, let's have a look at that. I can't decide if this is appealing to the best in me or the worst in me.
QUEST (voice-over): The scene is set, time for my Instagram debut.
QUEST: What do you think?
UNIDENTIFIED MALE: Ah, good idea. Oriental.
QUEST: Now where do I go?
UNIDENTIFIED MALE: Put your legs there, your head here, please. All right, that's much better.
UNIDENTIFIED MALE: Are you ready, Richard?
Let's do it.
QUEST: This is one of the strangest things I think I've ever done.
UNIDENTIFIED MALE: Oh, very nice. Say bye-bye.
QUEST (voice-over): A skeptic at first, the zeal of the recent convert has me in its grip.
UNIDENTIFIED MALE: Spin, spin, spin.
UNIDENTIFIED MALE: Super nice.
QUEST (voice-over): Like the rest of this enchanting place, these images speak for themselves, vibrant, awe-inspiring, all with a touch of
Cappadocian culture.
QUEST: The soft tufa rock that's given us the majesty of the fairy chimneys. And so, to a word, I think best describes Cappadocia. It is
unique. There is a landscape that is one of a kind.
[15:55:00]
QUEST: With experiences that are unusual and enriching. And you'll want to experience all this distinctiveness for yourself, unique Cappadocia, part
of our World of Wonder.
(END VIDEOTAPE)
(MUSIC PLAYING)
(COMMERCIAL BREAK)
(MUSIC PLAYING)
QUEST: I'm Richard Quest. We have a dash to the closing bell in just two minutes from now. Oil prices are hitting highs that haven't been seen since
before the COVID crisis. Demand is surging and as a result, OPEC is increasing supply, a sure sign the global economy is roaring back from the
pandemic.
Yet, despite the optimism, Wall Street remained flat. Early gains right at the start have been given up. And as you can see, just barely positive by a
tenth of 1 percent. European markets pushed to fresh all-time highs on Tuesday after inflation in the Eurozone hit 2 percent in May, the highest
since 2018.
It signals recovery more than worries about rising interest rates. London, Frankfort, Paris were all up between a half and 1 percent. The euro stocks
also closed at a record high.
As inflation is now above the European Central Bank's near 2 percent target, the conversation about whether central banks should start tapering
pandemic policies grows larger. Shamik Dhar is the chief economist at BNY Mellon Investment Management and he told me this recovery is very different
than 2008. Inflation is now a real concern.
(BEGIN VIDEO CLIP)
SHAMIK DHAR, CHIEF ECONOMIST, BNY MELLON INVESTMENT MANAGEMENT: Put it this way, I'm more worried about inflation, particularly inflation in the U.S.,
than I have been for the past 20 years. I've been an inflation dove for most of that time.
But I think there are real reasons to think, actually, this time is slightly different and we need to start factoring that in to our investment
decisions.
(END VIDEO CLIP)
QUEST: Now for the Dow, there's one stock doing most of the heavy lifting. Boeing is up 3 percent. That's enough to get the whole index in the green
for the moment. The stock got an upgrade from an analyst this morning. Boeing's up 20 percent so far.
J&J right at the other end, down 2.25. The company has appealed against a $2 billion fine over claims its talcum powder caused cancer. The U.S.
Supreme Court says it won't hear that appeal. So it looks like J&J will have to pay the money.
That is the dash to the bell. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, I hope it's profitable. On Wall Street,
the closing bell is ringing. The Dow is up. "THE LEAD WITH JAKE TAPPER" starts seconds away.
END
