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Quest Means Business
U.S. And E.U. In Trade Truce Over Boeing And Airbus; Europe Trade Commissioner Says They Have Complex Relations With China; U.S. Retail Sales Down As Fed Meets On Interest Rates; Biden Arrives In Geneva Ahead Of U.S.- Russia Summit; U.S. Airlines Seeing Sharp Rise In Unruly Passengers; Cristiano Ronaldo Becomes Top Goal Scorer In Tournament History. Aired 3-4p ET
Aired June 15, 2021 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:24]
ISA SOARES, CNN INTERNATIONAL HOST: The Dow is lower for the second straight session, have a look at the big board and see how it is fairing
this hour. Down 73 points, just two-tenths of a percent. Those are the markets and these are the main headlines for you.
Europe and the United States call a halt to the fight between Boeing and Airbus. I'll ask Europe's Trade Commissioner how the truth came about.
Joe Biden arrives in Geneva ahead of his big Summit with Vladimir Putin.
And Christian Ronaldo is breaking records at the Euros after snubbing Coca- Cola earlier in the day.
Live from London, it is Tuesday the 15th of June. I'm Isa Soares, in for Richard Quest, and I too mean business.
A very good evening, everyone. Tonight, the United States and the European Union have called a truce in one of the world's longest running trade
disputes in order really to take on China together, really.
The fight over subsidies to Airbus and Boeing goes back some 17 years. During that time, the two sides have threatened one another with tariffs on
$11.5 billion worth of goods. The resolution will help preserve aviation's global duopoly. It also allows the two sides to focus instead on a mutual
economic adversary in the years ahead.
Speaking before he left Brussels, President Joe Biden said countries built on common values should grow together. Take a listen.
(BEGIN VIDEO CLIP)
JOE BIDEN (D), PRESIDENT OF THE UNITED STATES: ... deal with these changes is that -- to have a circumstance where our economies grow and they grow
together and they grow still based on the value set that united us in the first place.
(END VIDEO CLIP)
SOARES: Now, Anna Stewart is in London with more. Anna, it is a great start to the E.U.-U.S. Alliance, as well as relations, but break this down for
us. Who benefits and for how long?
ANNA STEWART, CNN REPORTER: Well, what is so extraordinary about the spat quite aside from the fact that it involved nearly two decades to resolve is
the fact that involved $11.5 billion worth of goods being tariffed by both sides and that means that it has impacted so many different people and
businesses, not just Boeing and Airbus who are at the center of the spat back in 2004, although they had of course the bulk of tariffs -- very high
tariffs on those products, but also all of those other products around the world.
For instance, parmesan cheese in Italy or Scotch whiskey in Scotland, or tractors and tobacco that came from the U.S. All of these goods stand to
benefit. Now, actually, these tariffs that have been waged in the last few years were suspended in March just to allow some breathing space really for
these negotiations to take place and clearly they have borne fruit.
It is also of course, of great benefit I think to President Biden, what a victory very early on in his administration.
SOARES: Yes, absolutely. And you and I, we've been covering this for some time so it's great to see it finally come to an end. But the breakthrough,
Anna, and you and I were talking about this earlier, still leaves other trade frictions between the U.S. and the E.U. unresolved, now, I'm thinking
of steel, as well as aluminum import taxes imposes on European companies by former President Trump. Any sign that you saw today that they might be
reaching a consensus here on this?
STEWART: Well, it is an interesting one. I think particularly regarding the steel and aluminum tariffs, there was some good noises today, because so
much of the negotiations, we're told, is to do with, you know, the U.S. and Europe standing side by side and combating unfair trade practices from
China.
Well, it's Chinese steel, really, flooding the European market which has been the problem which is why the U.S. imposed tariffs in the European
steel and aluminum and why the E.U. retaliated with tariffs against the U.S. So, it certainly opens the door.
Steel is a tricky one for the U.S. though, politically, a very powerful lobby group. So, I imagine President Biden will have to tread rather
carefully on that one. But there are some good signals there. Another issue with trade between the U.S. and the E.U. of course is digital tax and how
the E.U. really wants to curb the power of those big digital firms.
We didn't hear much about that, but we do know that the E.U. and the U.S. are forming a Joint Council. So that certainly opens the door potentially
for some sort of a deal in the future. So, there are some good noises I'd say, but certainly not all trade spats resolved today.
SOARES: Yes, absolutely. Well, I will speak to the Trade Commissioner shortly. I will pose him those questions.
Anna Stewart, great to have you with us. Thanks very much, Anna.
STEWART: Thanks, Isa.
[15:05:04]
SOARES: Well, the Airbus CEO, Guillaume Faury is a frequent guest on QUEST MEANS BUSINESS. And in February, if you'll remember, he called the dispute
with Boeing a lose-lose situation. Last week, he told Richard that Beijing is determined to challenge Boeing, as well as Airbus with planes made in
China. Here it is.
(BEGIN VIDEO CLIP)
GUILLAUME FAURY, CEO, AIRBUS: We are now in a lose-lose situation where Airbus planes going from Europe to the U.S., or Boeing planes going from
the U.S. to the E.U. are impacted by 15 percent of tariffs. I believe it's lose-lose.
It's lose-lose for everybody in the industry, including our airline customers.
We see they are very determined. China is the superpower, they are very highly advanced in a number of technologies and we have to believe they
will continue to try to make it.
(END VIDEO CLIP)
SOARES: Now, over nearly two decades, this dispute became a lot more than just about airplanes. Tensions were dramatically ramped up by Donald
Trump's tit-for-tat approach. The former U.S. President's frustration led him to target culturally significant products like you heard Anna say,
French wine, Italian cheese.
The E.U. responded in kind targeting American whisky, tobacco, as well as motorcycles.
U.S. Trade Representative Katherine Tai said while the U.S. and E.U. have been bickering, their rivals have gained ground.
(BEGIN VIDEO CLIP)
KATHERINE TAI, U.S. TRADE REPRESENTATIVE: For almost 20 years, we have been at each other's throats fighting each other in terms of the terms of
competition between our industries. While we have been engaged in this fight, others are taking the opportunity to launch their own industries and
we have been too busy fighting each other to pay attention.
(END VIDEO CLIP)
SOARES: Valdis Dombrovskis is the European Trade Commissioner and he joins me now from Brussels. Commissioner, thank you very much for joining us here
on the show. And congratulations, first of all, on this breakthrough. I know you've been working intensely on this for some time.
It has taken 17 years. So, why now? What clinched it, sir?
VALDIS DOMBROVSKIS, EUROPEAN TRADE COMMISSIONER: Well, indeed, today we achieved a major breakthrough, so we managed to ground the Airbus-Boeing
dispute and agree on a collaborative approach how we will be cooperating in the area of large civil aircraft.
Obviously, it is a preparation of the E.U.-U.S. Summit in a sense has answered why exactly today, but as we said, initially we have agreed on a
four-month suspension of tariffs. So, all in all, we saw -- since the very beginning, much more cooperative approach from the new U.S. administration,
from the Biden administration, so I'm glad that we managed to bring this dispute to an end and can concentrate actually on E.U. and U.S. is working
together to address future challenges.
SOARES: We will talk about the challenges in a moment. You mentioned the Biden administration. How much has Mr. Biden's administration's been more
conciliatory stance with trade -- how much has his stance compared to former President Trump help push along these negotiations, sir?
DOMBROVSKIS: Well, definitely we see a lot of difference both in style and substance. It concerns both our bilateral agenda where we are not only
grounded the Airbus-Boeing dispute, we also today reached an agreement to create a Trade and Technology Council where we will cooperate on new and
emerging technologies.
We are now working also towards resolving our dispute as regard to steel and aluminum, and we have also agreements that we will cooperate
incorporate between ourselves, between the E.U. and the U.S. on a global level playing field in the form of W.T.O., on addressing issues like global
steel over capacity.
So, indeed, I think we are now set for a very good cooperation and can bring the E.U.-U.S. trade relations to the high level.
SOARES: On steel and aluminum, you just mentioned, Commissioner, are we -- should we expect an agreement between both sides shortly? How was the conversation regarding those tariffs?
DOMBROVSKIS: Well, during today's Summit, we committed to work towards resolving this dispute by the first of December and we have previously
agreed to conversations bilaterally, Commerce Secretary Raimondo with the U.S. Trade Representative Ambassador Tai and we agreed how we will be
approaching this and working now very intensively between now and the first of December.
[15:10:04]
DOMBROVSKIS: Hopefully resolving also this dispute and also looking how we jointly address issues related to the global over capacity.
SOARES: So, looking for a resolution on the front of steel and aluminum tariffs by the end of the year. How much would you say, Commissioner, was
China a driving force for the U.S. and you to include this spat, end disagreement.
DOMBROVSKIS: Well, this was certainly an element because it is true that E.U. and the U.S. have been arguing on large civil aircraft for many years.
So, this Airbus-Boeing dispute lasted some 16 to 17 years, and instead of fighting each other, we should be really concentrating on how we cooperate
together and how we also ensure global level playing field.
Also with the view of emerging competitors from nonmarket economies and to this agreement concerning Airbus-Boeing, we also set up as this cooperation
framework on nonmarket economies in the very same area.
SOARES: We heard throughout, not just G7, but also in NATO, but also with the E.U. today, we've heard President Biden, Commissioner, talk about China
as a systemic challenge. How much is China's growing economic power really a realization from both sides that this Alliance is stronger together? Give
us a sense of the challenge China is from the European perspective.
DOMBROVSKIS: Well, from E.U. perspective, we recognize that actually, we have very complex relations with China. In some areas, China is a
cooperation partner; in some it's an economic competitor and still some other, systemic rivals. So we need to navigate this complex relationship,
but it is true that many of the concerns which we are having, we are sharing with the United States.
So, it's only logical that we now agree to cooperate closely and look how we address those challenges and most through bilateral cooperation, but
also multilaterally in the form of the World Trade Organization and updating or updating the global trade rulebook to be better, to address
challenges like industrial subsidies, the role of and the neutrality of state-owned enterprises, of course, technology transfers, well, basically
many challenges which are stemming from the socioeconomic model of China.
SOARES: In this complex relationship that you are saying the E.U. has with China, there is obviously another player in here and we've heard President
Biden talk about this and that's Russia. What role does Russia play in this global economic picture, Commissioner?
DOMBROVSKIS: Well, as regards Russia, it must be said that our relations with Russia had become more complicated and there are many issues of
concern, concerning Russia's aggressive behavior invading neighboring countries, spreading misinformation, basically undermining democracies not
only in Europe, but I would say the rest of the world.
So, we really need to work together to address also these challenges posed by Russia and I would say in this case, it's maybe not so much like
economic challenges which we are seeing, but rather this aggressive behavior.
SOARES: E.U. Trade Commissioner, Valdis Dombrovskis speaking to me. Thank you very much, sir, for taking the time to speak to us here on QUEST MEANS
BUSINESS. And congratulations, once again.
DOMBROVSKIS: Thank you.
SOARES: Now, Australia and the U.K. announced they have struck a free trade agreement. The impact on GDP is expected to be relatively small, but it
does represent the first in what Britain hopes will be many new deal as it begins to forge fresh economic relationships after Brexit.
Now, the President of the Confederation of British Industry, Karan Bilimoria spoke to my colleague, Paula Newton earlier and this is what they
said.
(BEGIN VIDEO CLIP)
KARAN BILIMORIA, PRESIDENT, CONFEDERATION OF BRITISH INDUSTRY: We have to transfer over 60 bilateral trade deals the European Union had with other
countries such as Canada, such as Japan, and Mexico, and we did that before the 31st of December.
We are now beginning to bespoke those trade deals between the U.K. and those countries individually, and then there is the prospect of new deals
with new countries and the first one is Australia. This is wonderful news.
Trade with Australia is over 20 billion pounds in goods and services bilaterally. So, it is not a small sum. I mean, it is a similar sort of
size to the bilateral trade we have with India and with Canada.
And with the Australian deal, it's going to be great news that should be a win-win overall for U.K. and for Australia.
[15:15:18]
PAULA NEWTON, CNN INTERNATIONAL CORRESPONDENT: I do want to talk a little bit though about the situation in the U.K. right now.
You know, the U.K. has delayed its reopening further because of the delta variant. Do you see this as quite worrying? You know, given your history in
the business that you come from, there's lots of industry owners in the U.K. that are concerned. But do you see something larger at work here as
well, that we are not done with this pandemic yet or at least, the pandemic is not done with us, and that the next year is still going to be quite
challenging on many fronts?
BILIMORIA: When it comes to opening up the economy, the government has decided to delay it by four weeks because of the rise in the delta variant.
And they had four tests and one of the tests was clearly not passed, another one as well, possibly not passed.
So, to play it safe, they've had to delay it. Well, this is terrible news for the hospitality industry, as you say, for my own business, for Cobra
Beer, we supply thousands of restaurants. They've suffered so much, the live events have suffered, the large weddings, entertainment industry,
theaters can only fill half the theaters. They cannot be viable on that basis.
Restaurants are only able to operate about two-thirds capacity. They are barely struggling. Some haven't been able to open up. So, this is not good
news for them. We can't wait to open up the economy as soon as possible safely and fully.
(END VIDEO CLIP)
SOARES: Still to come, hit the road jack, but check your wallet first. We'll take a look at how much more it costs to take a road trip in the
United States this summer. That is next. You are watching QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
SOARES: Now, U.S. markets are down on inflation concerns. In fact, they have been down pretty much all day on those very concerns. If we look it,
at the major averages are in the red as you can see there even with the latest Business Roundtable survey showing CEO optimism at record high
levels, but really red right across the board.
U.S. retail sales were down just over one percent, 1.3 percent in May, the first monthly drop in fact, since February. Sales were up 11.3 percent in
March when many stimulus checks went out. April sales have been revised up to nearly one percent gain.
The sales figures are likely to play into whatever the Federal Reserve decides tomorrow about interest rates as well as inflation. So, plenty for
us to talk with Paul La Monica.
[15:20:15]
SOARES: And Paul, on those retail sales, if we can start with that, I mean, we are clearly seeing a shift, aren't we, from goods spending to services.
How do you interpret this latest data here?
PAUL LA MONICA, CNN BUSINESS REPORTER: Yes, I think that we do have a bit of a pullback, Isa, as you point out, a shift in what consumers are
spending on as well as a reflection that some of the stimulus money has started to run out.
So, we had some very strong retail sales numbers for the past couple of months. A bit of a cooling off which is disappointing, but you have to put
it into perspective, the May numbers compared to April are down, but they are still up sharply from last May when everything was depressed as we were
really in the midst of the COVID-19 recession.
SOARES: And it could also be -- and I'm not sure -- I mean, do we know whether it's simply Americans can't get their hands on physical goods? Is
there also an element of a supply chain disruption? Or is this simply like you said, you know, the economy opening up and stimulus here?
LA MONICA: Yes, I think it's a combination of both. We clearly have -- and you see that with those PPI numbers that you mentioned as well as the
consumer price numbers that came out last week. The shortages that is we have had in various products and commodities clearly has led to some
dislocations in the economy that has caused prices to spike temporarily, or to use Jerome Powell's favorite word, "transitory," not expecting he is
going to continue to pound that table tomorrow when the Fed speaks.
I don't think the Fed just yet wants to give up this notion that inflation is a longer-term systemic problem. They still view it as temporary,
transitory, it will abate over time, and that's going to be their rationale for keeping rates near zero for, I think, a lot longer.
SOARES: Yes, all -- we're all going to be listening out tomorrow for any indication on the inflation there. Paul La Monica, thanks very much. Great
to see you.
LA MONICA: Thank you.
SOARES: Now, travelers are feeling the pinch of higher prices with U.S. airfares up 24 percent last month. Renting a car, well, that costs more,
too.
Major operators sold off more than half a million cars during the pandemic. They are facing a worker shortage as well. Daily prices in the hundreds of
dollars in some places. Autoweek says rental car prices are up 30 percent since last year.
And it's not just rentals driving the price of a great American road trip, you have to fill up, of course. Remember that, that will cost more. Gas is
up 37 percent year-over-year, and don't think about Uber or Lyft. Fares are up as much as 40 percent. And that snack that you may want or a meal that
you may want on the road, well, that's getting costlier, too, up 6.1 percent year-over-year.
And when you're ready to rest your head on that hotel room, well, you've seen the trend, it costs more as well. Hotels and motels are up nine
percent year-over-year.
Erich Sixt is the CEO of Sixt rent a car. He joins us now. Sir, thank you very much for joining us here on QUEST MEANS BUSINESS. I was looking at one
of your news releases online and it's clear from what I saw that your company has gone through, like so many companies, I may add, have really
suffered dramatic losses particularly in the first and second quarter.
We're not out of the pandemic and there's still so much uncertainty, so where do you see the next quarter? What is your plan, sir?
ERICH SIXT, CEO, SIXT: First, thank you for having me in your talk. Well, I'll tell you, we are at the end of the tunnel. We are seeing the light,
very bright, coming. We had an excellent March, excellent April, and excellent May.
We are seeing demand picking up drastically, especially in the United States. In the United States, where we are at 2019 level, revenue is above
2019. The U.S. is back to pre-COVID times. So, very encouraging.
We see bright spots in Europe, especially in travel destinations like Spain and France, reservations are coming in large numbers. So, we are looking
forward to a very good summer if nothing unexpected happens naturally.
SOARES: Of course. And there's -- we are seeing -- starting to see, sir, the easing of some restrictions. But like you pointed out, there is a lot
of uncertainty, especially when you look ahead to summer or families start preparing summer holidays.
What trends are you seeing in light of the pandemic?
[15:25:28]
SIXT: Yes. What I see -- first, again, I must mention, and I like the United States very much, that's why we are investing heavily in the United
States on mobility products. The United States -- I'm very, very -- I don't see any big risk in the United States.
In Europe, well, it depends on the various states. Some acting too cautious to my opinion.
SOARES: Which ones, sir? Which ones?
SIXT: Like, for example, Germany where our incidence rate is very low and we could loosen restrictions. We also could loosen restrictions in Mallorca
for example. In Mallorca, we are seeing a big increase already, but still, it is a European problem. Europe is overregulated. So, you have to fill out
all kinds of forms to travel into Spain, go back from Spain. It's pretty ridiculous, you know.
SOARES: But I suspect -- and you can correct me if I'm wrong, but I suspect that many people are -- because of COVID-19, because of the pandemic, one,
they are reluctant to make large investments such as buying a car, so they will probably hire your vehicles. People, perhaps don't want to get public
transport so probably they rent a car as well.
Are these some of the trends that you are seeing in light of the pandemic?
SIXT: Absolutely. That's why we created revolutionary product subscription model because we do see that people are very careful in purchasing cars and
we offer them an extremely flexible solution. You pay a monthly fee, you can return your car whenever you want. It's not like you're leasing, you
know, when you are bound to a long contract.
So we offer some flexibility of practically owning a car, but can give it at any moment. And this product is really exploding and it goes exactly
into the trend which you just mentioned. People are very, very careful.
SOARES: Yes, very cautious, of course, given the fact that there are so many variants and so much uncertainty. Mr. Sixt, you know, you've been -- I
don't know if our viewers will know this -- but you've been at the helm of the country for some 50 years and I believe that you're stepping down this
month.
You have transformed the business from a Munich-based family with a car rental business to really a global business. How do you feel and what
advise do you have for your sons who I believe are taking over the reins?
SIXT: Well, look, I am partly stepping back, I'm still Chairman of the Board, the Chairman of a nonexecutive Board. Tomorrow, we will have our
general assembly.
Yes, the advice I can give to them is very simple. I survived -- in my 50 years, I survived around seven heavy crises and I tell you, every crisis is
a big opportunity. They should never be worried. It's survival of the fittest.
We see opportunity and investing heavily in building new products like Sixt-plus, car sharing, et cetera, and now, we will benefit from the
investment. We purchased in the United States amidst the heavy crisis, and everybody looked like it's hopeless. We purchased ten airport concessions
with major airports with $3.4 billion revenue potential and that's the advice I can give. Never be pessimistic. You must be as an entrepreneur,
taking chances.
SOARES: Never be afraid of a challenge, it seems. Thank you very much, sir. Congratulations on an incredible run and an incredible job you've done and
all the work you've done for the industry. And whenever your sons are ready, we would love to speak to them. Thank you very much, sir.
SIXT: Thank you very much. Good talking to you. Thank you very much.
SOARES: Likewise.
Still ahead right here on the show, touch before a showdown. Joe Biden arrives in Geneva ahead of his Summit with Vladimir Putin. We'll bring you
all the latest next.
(COMMERCIAL BREAK)
[15:30:15]
(MUSIC PLAYING)
UNIDENTIFIED MALE: Thank you very much. Bye-bye.
SOARES: Bye.
Still ahead right here on the show, touchdown before a showdown. Joe Biden arrives in Geneva ahead of his summit with Vladimir Putin. We'll bring you
all the latest next.
(MUSIC PLAYING)
(COMMERCIAL BREAK)
(MUSIC PLAYING)
SOARES: Hello, I'm Isa Soares. There's more QUEST MEANS BUSINESS in a moment when I'll speak to a former U.S. trade representative about
President Biden's detente with Europe.
And buy the world a Coke?
Cristiano Ronaldo would rather teach the world to drink water instead.
Before that, the headlines for you.
(HEADLINES)
SOARES: Now Joe Biden is in Geneva for what will be the biggest showdown of his European tour. A meeting with Vladimir Putin. The U.S. president met
with the Swiss counterpart a short time ago.
[15:35:00]
SOARES: Mr. Biden has spent the past few days reaffirming the United States' diplomatic commitments to leaders of the G7 in Cornwall, NATO and
the E.U. all three meetings aimed at building Western solidarity ahead of his face to face with Mr. Putin.
Kaitlan Collins has been overseeing it all and she joins me from Geneva.
We know from president Trump (sic) that he's been preparing intensely. He wants a stable and predictable relationship with Russia.
What are the expectations from the U.S. side with this meeting with Putin?
KAITLAN COLLINS, CNN CHIEF WHITE HOUSE CORRESPONDENT: I think the big question is whether or not he can get that stable but predictable
relationship. And President Biden has said that's his goal.
But of course, we know, with President Putin, he often thrives on chaos and unpredictability. It remains to be seen what the outcome of this is going
to look like. His top aides are not expecting any major breakthroughs tomorrow and are trying to tamp down expectations ahead of that summit,
saying this is what we believe is going to happen.
Not any kind of big set of deliverables walking out of that 18th century villa where they're scheduled to meet just a few hours from now. One thing
we know is a little bit more about the format. They are going to go into the meeting.
The White House says that Putin is going to arrive first, that will be notable and they will go into a meeting with one staffer each, in each
room. It will be Tony Blinken for Biden and the Russian foreign minister for Putin.
They'll open that meeting up to a few other staffers. I think it's about five on each side and the White House is guessing these meetings could go
four or five hours, potentially, maybe longer than that, depending on how they're going.
After that is when you're going to see each leader come out and spin how those meetings went in their own way because they won't be standing side by
side. It will be Putin giving his press conference first, then President Biden will give his before heading back to Washington.
SOARES: We've been hearing very strong language from President Biden vis-a- vis Russia.
Is there anything that is -- what kind of stick, really, is the U.S. prepared to wield to Russia to get Russia to stick -- you know to behave
well, let's say?
COLLINS: I think that that's -- it's an ambitious goal every president has. They want to have Russia be a part of their legacy. But as President Biden
himself even noted, it is very hard to get someone to change their behavior and get their country to change its behavior.
President Biden seemed to say in a press conference this week, leading up to the meeting, that he believes Russia has bitten off more than it can
chew and that it would make Russia and Putin more willing to come to the table and change their behavior.
But sanctions have not deterred them. They've continued to carry out the ransomware attacks. It all really remains to be seen.
SOARES: Kaitlan Collins, thank you so much.
Now as we said, this is all part of Joe Biden's great reset for America on the global stage, from standing up to Russia and China, to really
bolstering support from E.U. allies. President Biden is trying to build links that his predecessor often dismissed.
(BEGIN VIDEO CLIP)
JOE BIDEN (D), PRESIDENT OF THE UNITED STATES: America is back. We never fully left. It's overwhelming in the interest of the United States of
America to have a great relationship with NATO and with the E.U. I have a very different view than my predecessor did. So I'm looking forward to
talking with you all about what I'm about to do.
(END VIDEO CLIP)
SOARES: Let's talk about all of this with Carla Hills, the former U.S. trade representative.
Thank you very much, madam, for taking the time to speak to us. I wanted to get your take, if I could start with that, on the agreement by the E.U. and
the United States to end this 17-year spat.
After all these years, did it benefit anyone in your opinion?
CARLA HILLS, FORMER U.S. TRADE REPRESENTATIVE: Oh, enormously. It has -- the 17 years has not been helpful. I think it's cost the United States more
than $1 billion and it's time to sit down and work out our differences.
SOARES: And it seems that they are seeing eye to eye and they are seeing eye to eye because they seem to have a common challenge and that seems to
be China.
HILLS: Well, we have lots of common challenges -- climate, nuclear, denuclearization and a host of issues where we need to work together
because working alone means you can't find a satisfactory solution.
[15:40:00]
SOARES: I was speaking to the E.U. trade commissioner earlier. He said that China was one of the driving forces behind this resolution.
How real of a challenge is China, would you say, to Europe and the United States right now?
HILLS: I think we need to find a way to deal with an authoritarian government, a Communist government. China is not going to voluntarily
change its form of government no matter what kind of rules you have.
We get along with Vietnam. It's Communist. What we're asking of China is, you want to be part of the world community, we need to have you abide by
the rules of the world community.
And if you cannot do that, then the rest of us will go on one path and you'll go another path. But I believe that by sitting down and talking with
China, we can work out our differences.
SOARES: But when we look, for example, at, you know, the G7, I was covering the G7 and China wasn't even part of the discussion.
How do you even reach an agreement, a consensus beyond climate change, beyond economy and trade, without having one of the biggest economies at
the table?
HILLS: Well, you make a very good point. I'm a big deliver in meetings. I applaud President Biden meeting with our allies in England, in Brussels and
so forth. I think that his predecessor was unwilling to do that and pulled out of our multilateral agreements and organizations that have guaranteed
our prosperity and security for 70 years.
So he gets a lot of standing ovation for what he's tried to do. But you don't succeed overnight. It will take us time to reach agreements.
SOARES: Well, we've been hearing -- and you have no doubt as well been hearing for several days now very strong language from President Biden on
China, a systemic challenge.
And today we heard that Russia and China both seeking to drive a wedge in our transatlantic solidarity.
Are you surprised by the position that the president has taken on China?
HILLS: My recommendation to him would be to sit down, carefully listen and use diplomacy. You don't get anything done by calling your other side of
the table names. And he's been much better at it than some of his predecessors.
But I would not use terms like killer or thug or what have you. I would try to find ways where we could cooperate. And he stated, when he took office
that, for example, with China, there would be areas of cooperation.
We know that. We can't solve climate or the nuclear challenge without cooperation. There will be competition and we know that. And actually,
competition makes us better. You can't win a race if everybody behind you is walking on their tiptoes. You're not going to set any kind of record.
Competition is good. We will have areas of confrontation. But my hope is that, with cooperation and good competition, that we will find ways through
our differences.
SOARES: Well, let's hope they're listening. Thank you very much, Carla Hills, the former U.S. trade representative, thanks very much, madam, for
taking the time to speak to us here on QUEST MEANS BUSINESS.
HILLS: It's always a pleasure to join you. Thank you.
SOARES: Thank you.
Coming up, Americans are flying again with mixed results. Airlines are having to deal with a rash of unruly passengers. We'll explain next.
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SOARES: A clear sign of progress in the U.S. fight against COVID. The governors of New York and California both announced on Tuesday that their
states are lifting all COVID restrictions. The governors say they took the action because 70 percent of adults in the state have now received at least
one COVID vaccine shot.
For the second week in a row, passenger screenings at airports have hit new highs. As the crowds return, airlines are grappling with a different kind
of problem. The U.S. Federal Aviation Administration says it will continue enforcing a zero-tolerance policy after reports of unruly passengers on
airplanes.
The FAA said it has received 3,000 reports of disruptive passengers this year. CNN's Dan Simon has the report.
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DAN SIMON, CNN CORRESPONDENT: The struggle and screams coming from the most unlikely passengers.
An off-duty flight Delta Air Lines flight attendant aboard a flight Friday night from Los Angeles to Atlanta. The pilot asking for, quote, "all strong
males to come to the front of the aircraft" to handle a problem passenger.
UNIDENTIFIED MALE: I'm very thankful that it did not end badly.
SIMON (voice-over): Passengers saying the man, who police identified as 35 year-old Stefan Jamar Jonakin (ph) of Atlanta made an announcement over the
plane's PA system, telling everyone to take their seats and prepare to put on oxygen masks.
UNIDENTIFIED MALE: That created quite a stir.
SIMON (voice-over): The plane safely diverting to Oklahoma City. According to the police report, the off-duty attendant making statements about being
seated next to a terrorist and stashing his personal items like tennis balls in various places around the plane.
Ignoring orders from the flight crew, he assaulted a crew member and when another off-duty crew member tried to intervene, he pushed her against the
wall and put both hands around her neck and began choking her.
CNN has reached out to Duncan. It's not clear if he has legal representation.
On Thursday, another Delta flight, this one from L.A. to New York, was forced to land in Detroit after another passenger became disruptive.
And earlier this month, a third Delta flight from L.A. to Nashville forced to make another emergency landing with a passenger trying to breach the
cockpit.
These incidents just the latest in a string of unruly behavior in the nation's skies. The FAA reporting it's received more than 3,000 reports of
unruly passengers since the beginning of the year, the majority related to people not wanting to mask up.
UNIDENTIFIED FEMALE: What we're seeing on board is an outcome of the stress of this pandemic. People have been stretched to their limits.
SIMON (voice-over): For now, the question is whether things could get even uglier with summer travel season picking up and passenger numbers starting
to approach prepandemic levels -- Dan Simon, CNN, San Francisco.
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SOARES: Still ahead, no Coca-Cola, no joke. Why Cristiano Ronaldo is snubbing the soft drink. That's next.
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SOARES: It has been a busy day for Cristiano Ronaldo. The footballer has just made the record books as the greatest goal scorer in the history of
the Euros. That's after the win over Hungary.
But it was a moment off the pitch that really made the headlines earlier in the day. Take a look at this.
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SOARES (voice-over): That's Ronaldo hiding some Coke bottles from a news conference podium. He told people to drink water instead. Coke is a major
sponsor of the Euros. Ronaldo's snub raises a sticky question about the role of junk food in pro sports.
A 2018 study in "The Journal of Pediatrics" looked at the most heavily watched sports by children 17 and younger. And it found 76 percent of the
ads on promotions featured unhealthy foods.
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SOARES: There are moments left, in fact, to trade on Wall Street. We'll have the final numbers as well as the closing bell right after this. Do
stay right here.
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SOARES: There are just moments left to trade on Wall Street. Let me show you the big board. It's been a day of uncertainty. It's keeping markets in
the red today; 0.3 of a percent down, 103 points or so. It was down nearly 200 earlier on.
So a bleak second day of trade for the Dow Jones. Let's look at the Dow components. Chevron was among the ones leading the average on surging oil
prices. Disney and Salesforce also at the end. That is QUEST MEANS BUSINESS. I'm Isa Soares.
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