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Quest Means Business
Haiti Declares State Of Siege After President Murdered; DiDi Stock Falls Further As U.S. Senator Questions IPO; Ever Given Finally Departs Egypt; WHO Discusses "Wave Of Death" In Parts Of Asia, Africa, Latin America; G20 Finance Ministers To Consider Global Tax Reform Plan. Aired 3- 4p ET
Aired July 07, 2021 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:19]
RICHARD QUEST, CNN INTERNATIONAL ANCHOR: It will be a record-breaking day on Wall Street with an hour to go of trading. The S&P 500 looks set to
close at an all-time high.
The markets and how they are trading. That is the Dow, it is up 81 points having had a wobble in the morning, and the triple stack shows that the S&P
500 is the one that -- I mean, they're all up, but the gain is on the S&P 500 and that could be a record. We'll let you know.
It is 34,786 -- that's on the Dow. So we're looking good there. We'll have the numbers for you when we get there at the end of the trading day.
The main events of the day, Haiti declares a "state of siege" after its President is murdered by unknown assassins.
DiDi's fall continues. The shares are tumbling further. This time a top U.S. lawmaker says DiDi's IPO should never have happened.
And as the Ever Given finally leaves the Suez Canal, the head of DP World says shippers have learned lessons about supply chain flexibility.
We are live in New York on Wednesday, July 7th, mid-week. I'm Richard Quest and I mean business.
Good evening. Haiti's acting Prime Minister says the troubled nation is in a "state of siege" following the assassination of its President, Jovenel
Moise. The interim Prime Minister, Claude Joseph says the President was killed by a highly trained and heavily armed group. Apparently gunmen armed
with high caliber weapons shot the President at his home on Wednesday morning. The attackers have not been identified.
The attack and the murder is sparking fresh turmoil in the country even as Joseph vows to find the killers and says the situation is under control.
Leaders around the world obviously have condemned the murder. President Biden expressed his concern.
(BEGIN VIDEO CLIP)
QUESTION: What is your reaction, Mr. President to the Haitian President being assassinated?
JOE BIDEN (D), PRESIDENT OF THE UNITED STATES: We need a lot more information. But it's been very worrisome about this day in Haiti.
(END VIDEO CLIP)
QUEST: The assassination comes after a tumultuous year in the country along the increase in kidnappings and gun violence, Haiti has seen massive
demonstrations since February after Moise refused to leave office. He argued his term lasted for another year, and then pandemic -- a further
hardship to a struggling economy.
The World Bank estimates Haiti's economy shrank 3.8 percent last year. More inequality for one of the poorest countries in the western hemisphere.
Melissa Bell is with us for the latest. First of all, what do we know of this attack, other than it was heinous?
MELISSA BELL, CNN CORRESPONDENT: Well, those forensic teams have been gathering outside that house. It was his private residence, the President's
residence where he was assassinated overnight and his wife critically injured, Richard. Those forensic teams looking to gather evidence to try
and figure out precisely who was behind this.
Now, the acting Prime Minister has vowed to keep us informed of what they learn along the way, but various Haitian officials over the course of the
day, including the Haitian Ambassador to the United States suggesting over the course of today that they may have been mercenaries who came from
abroad.
Although, I have to insist that so far, no evidence has been provided for that beyond the fact that Spanish was heard being spoken at the time of
that assassination.
As you mention, a "state of siege" now, and so that is just above the state of emergency. Essentially, Richard, what we're talking about is the
imposition of martial law and the closing of borders in order, and I quote the acting Prime Minister, "to avoid the country plunging into any further
chaos."
(BEGIN VIDEOTAPE)
BELL (voice over): The assassination brings to an end the turbulent rule of Haiti's President, Jovenel Moise, but leaves the impoverished Caribbean
nation in turmoil.
For months, there have been protests around the country demanding Moise step down. The President held on to power while the opposition claimed his
continued rule was unconstitutional.
His critics argued that according to Haiti's Constitution, his five-year term as President started the day he was elected, rather than day he took
office. But Moise argued it was a year later that marked the true beginning.
Both the U.S. and the U.N. supported his claim to remain in power.
But there had been widespread concern when Moise failed to hold legislative elections in 2019, leaving the country without a functioning government,
and a constitutional referendum postponed due to the coronavirus pandemic still has not taken place.
[15:05:11]
BELL (voice over): Moise's presidency was plagued with a number of other problems. U.N. officials say the country has been rocked by an uptick in
kidnappings for ransom and a wave of criminal violence in recent months, fueled by armed gangs.
Thousands were forced to flee their homes as shootings and arsons spread across Port-au-Prince in June. The continued political instability has left
Haiti's economy in shambles. The COVID pandemic contributed to a contraction of nearly four percent of the nation's GDP last year and a
spike in COVID cases has prompted a new state of emergency -- all of this leading to a humanitarian crisis.
According to the World Bank, nearly 60 percent of Haitians live below the poverty line. To make matters worse, Haiti is prone to natural disasters.
The country never fully recovered from the catastrophic 2010 earthquake that killed over 200,000 people.
And in 2016, Hurricane Matthew left hundreds dead and nearly 200,000 displaced.
As the poorest nation in the western hemisphere, Haiti has a long history of dictatorships and coups. Now the assassination of its President leaves
the country's future in doubt.
(END VIDEOTAPE)
BELL (on camera): As you mentioned a moment ago, Richard, it was that economic pressure that was brought to bear on a population already
struggling economically over the last few months and a couple of years that really was at the heart of that anger directed at a government that had
come into office vowing to stamp out the corruption that has been such a problem in Haitian politics for so many decades, and that in the end was
accused itself of taking part -- Richard.
QUEST: Melissa Bell who is in Paris and will report more when we have more details. Thank you.
Now, to our evening business agenda together. Beijing's sudden crackdown on the hail-riding firm, DiDi is putting a spotlight on other Chinese
companies who are listed in the United States. The shares -- the DiDi shares are down about, give or take, four percent. That follow the 20
percent drop that took place on Tuesday.
Over the weekend, the Chinese authorities blocked new people from down loading DiDi's app. The company had just gone public not many days before
in New York.
The U.S. Senator Marco Rubio has told "The Financial Times" it was, in his words, reckless and irresponsible to let that IPO take place and questions
whether DiDi is transparent enough to be listed on Wall Street.
Clare Sebastian is following the story from New York. What is coming clear is bearing in mind the rushed nature and the way in which they got their
book building so quickly, et cetera, et cetera. Are the problems, those of DiDi or are they problems more generally of Chinese companies listing?
CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT: Well, the point that Marco Rubio, Richard was trying to make is that this is a more general problem
highlighted, of course, by these dramatic events with DiDi where just days after they went public, we see this investigation in China. The pulling of
the app off the App Stores and that huge drop in share price.
He said that even if the stock rebounds, he told "The Financial Times," American investors still have no insight into the company's financial
strength because the Chinese Communist Party blocked U.S. regulators from reviewing the books.
Now, this is something that the S.E.C. has in the past spoken about openly and said that one of the key risks of U.S.-listed companies is that U.S.
regulators are not provided access to audit the auditing firms of those companies in China, which is one of the regulatory requirements that all
U.S. listed companies are subject to.
And Marco Rubio has pushed legislation through Congress. Trump signed a law last year that would delist companies that didn't comply with those
regulations within three years. There is now another bill that would accelerate that to two years.
So, this is something in the U.S. where we see a climate of concern around these companies, but at the same time, Richard, the numbers of Chinese
companies that are listing on U.S. exchanges are going up dramatically.
According to Refinitiv, this year, 34 Chinese listings in the first half alone, raising $12.5 billion. Last year, 13, just $1.9 billion. So, a clear
acceleration despite all this concern.
QUEST: Right. But why are they listing in the U.S.? I mean, there are liquid capital markets obviously in Europe and to a certain extent in Asia
where they could list instead.
SEBASTIAN: Yes. I mean, I think that is the big question DiDi and others facing not only opposition in the U.S., but opposition now in China. But
still, they come to New York.
The pull of the New York Stock Exchange and the NASDAQ, the reputational uplift you get from listing on those exchanges, the unmatched liquidity of
the sort of tried and tested IPO process. And I think we see today, with DiDi, the stocks still going down. There is a sort of a repricing going on.
We see that with some of the other big Chinese companies that are listed on the U.S. exchanges, the likes of JD.com and Baidu.
[15:10:10]
SEBASTIAN: There is still interest among U.S. investors for these companies. China, of course, is a huge consumer market. The only economy to
avoid recession last year. But I think what we will see in the wake of this probably, Richard, is something that is already going on is a repricing for
all of this political risk.
QUEST: Clare Sebastian in New York. Clare, thank you. We'll talk more. Investing in Chinese companies brings those additional inherent risks.
The company's finances often less transparent because of the limited external scrutiny that Clare was talking about. An example of that were the
fabricated sales at Luckin Coffee.
The regulatory environment in China is strict and unpredictable. Some might even say capricious. Even the biggest companies like DiDi and Alibaba can
suddenly run afoul of the regulators with almost no warning. And then the tensions, the geopolitical -- the Washington-Beijing axis.
You can see Chinese companies become targets of sanctions such as SMIC, the chip maker. And yet investors still think the opportunities trump the
risks. "The South China Morning Post" says more than 20 Chinese companies have filed documents to IPO in New York or the U.S.
Anthony Chan is the former chief economist at JPMorgan Chase. Andrew is with me here in New York.
I sort of feel, we know that you're not dealing with a level playing field. We know that the Chinese government de facto, you know, pulls the strings
with these companies. So, what more would you like to see done?
ANTHONY CHAN, FORMER CHIEF ECONOMIST AT JPMORGAN CHASE: Well, Richard, what you need to do is to get a better assessment of what those risks are and to
price them.
You were mentioning a minute ago in your previous segment that somehow, you asked the question, why do they want to list in the United States? And the
answer is pretty straightforward, and that is that historically, we've been able to price these IPO's a lot, Richard, than if they were listing them in
other venues, and that's part of the attractiveness.
Obviously, the reputational prestige is good, but the fact that you can get a higher valuation. Now, the thing that we have to take into account as
investors is to realize that the type of risk environment, when you make this investment has changed. And so, you have to reprice these IPOs
accordingly.
QUEST: Yes, but I'm slightly surprised that anybody is surprised. I suppose the geopolitical guys and girls would tell us, it's always been this case
in China. The only people who have been ingenue arguably are the markets and investors.
CHAN: Well, there is some stuff and surprises there, but again, the investors were to some extent comforted by the fact many of these Chinese
company were listing overseas, out of the direct jurisdiction of China, and they thought that somehow that would give them a free pass.
We've learned, of course that that is not the case, but that was the assumption that was taken before.
But I think if you've seen what has happened over the last couple of years, you've seen that regulators are tightening up on these companies, and it is
time people valuing these shares, when you do an IPO certainly take that into account.
QUEST: I do need to turn to the markets ever so briefly, if may, because -- my word, it is hard to know, isn't it? We have these two distinct
undercurrents: a U.S. that is roaring ahead with the potential of a bit of inflation, and the rest of the world mired in the delta variant, and a
market that just wants to rally when it can. Where do you see the rest of the year?
CHAN: Well, I see the rest of the year still favorable because a lot of what the markets are doing is a function of the progress of the vaccination
rates, the progress of the spread of the virus and that's one of the reasons why the U.S. equity markets have outperformed Europe.
But at the same time, Europe is catching up. And so, in the second half of the year, I expect European markets to do a lot better, but still, there
are other parts of the world that are struggling with this variant and certainly with vaccination rates. And so, those markets perhaps won't
perform as well.
But for the U.S. right now, you mentioned inflation. Yes, it is a risk, but right, if you look at the 10-year Treasury yield, it doesn't appear as
though the bond market is too worried about inflation.
QUEST: Emerging markets -- I worry the sense of an emerging market. They get clobbered every time. A taper tantrum, the EMs lose their investment.
You know, investment comes back.
COVID, EM's get clobbered.
[15:15:10]
CHAN: I do worry about emerging markets, especially because some of them are now starting to worry about inflation. You look at countries like
Brazil, for example, raising short term interest rates, even though the economies are not as robust. Mexico raising short term interest rates. So,
the combination of low vaccination rates, high number of infections, and Central Banks raising rates, it does not bode so well for emerging markets.
QUEST: Good to talk to you. We will talk more and we will watch closely. Thank you.
The Ever Given has finally left the Suez Canal, 106 days after getting stuck. The latest numbers and what this means for the supply chain? In a
moment.
(COMMERCIAL BREAK)
QUEST: It has taken four long months, but now the Ever Given has finally set sail from the Suez Canal. But its progress, take a look, the ship right
in the middle of -- you can see a circle there. That's the Ever Given. It is now in the Eastern Mediterranean, it is going to head to Rotterdam and
then Felixstowe where it will offload its cargo.
Well, it will be interesting to see how much of it is worth anything, having been there -- I suppose it depends if it is perishable or not or
quasi perishable.
The delays affected scores of businesses, big and small. We recently visited a U.K. bicycle shop that is still waiting to have parts delivered.
(BEGIN VIDEO CLIP)
WILLIAM PEARSON, CO-DIRECTOR, PEARSON: Obviously, the main component part for our bikes, as any bike would be, so without those, we can't build the
bikes. So, we had quite a few orders that were already destined for customers.
It's been a real difficult time. We've went kept in the dark. We really have.
Nobody really seems to know exactly what is happening.
(END VIDEO CLIP)
QUEST: Well, the ship is now on its way and hopefully, he'll get his bicycle parts before too long. But how the Ever Given was released and is
on its way, CNN's Ben Wedeman from Beirut.
(BEGIN VIDEOTAPE)
BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Richard, it is exactly 100 days ago today that the Ever Given was floated on the 29th of March.
That massive 400-meter container ship that blocked the Suez Canal for six days has finally resumed its journey after the resolution of a legal tug-
of-war between Egyptian authorities and the Japanese company that owns the ship.
[15:20:13]
WEDEMAN: Wednesday, representatives of the Suez Canal Authority and that Japanese company signed a final legal settlement in a ceremony broadcast
live on Egyptian TV. The Suez Canal Authority initially was demanding more than $900 million in compensation. First of all, for the cost of the
salvage operation, but also as compensation for the reputational damage done to the Suez Canal as a result of the blockage.
The Canal Authority later lowered its demands to around $550 million. But the precise details of the settlement remain secret.
Now, after a final inspection of the Ever Given at Port Said at the northern end of the Suez Canal, the ship and its more than 18,000
containers will make its way to Rotterdam in the Netherlands and later to the U.K.
Now, all is well that ends well, and perhaps all is forgiven for the Ever Given. At that ceremony Wednesday, the senior Egyptian lawyer for the Suez
Canal Authority announced that had the Ever Given will always be welcome in the Suez Canal -- Richard.
(END VIDEOTAPE)
QUEST: We will be watching to see when it gets there, Ben Wedeman, in Beirut.
Now, the head of the DP World tells me shippers had to get creative to escape the ripple effect of the Suez Canal blockage.
DP World is based in Dubai at the Jebel Ali Port, and it is the biggest sea port in the Middle East with ports around the world.
I spoke exclusively to the Chairman, Sultan Ahmed Bin Sulayem this morning, and I asked the Chairman if we're still seeing a backlog from the Suez
Canal chaos.
(BEGIN VIDEOTAPE)
SULTAN AHMED BIN SULAYEM, CHAIRMAN, DP WORLD: I think that is back to normal. I do think that is not anymore a problem. It happened during that
time, but it went away. In fact, the backlog is really the cargo that people imported. And now there are not enough vessels to carry it.
QUEST: What did we learn from the Suez Canal incident besides don't block the Suez Canal? I mean, besides the obvious, you know, we learned to a
certain extent the fragility of the global supplies network, which I think we had a really good idea of during COVID. Can we improve the global supply
network?
SULAYEM: We need coordination. That incident is unfortunate. It is a way that could happen, but we learned now that we have to find ways of how to
move the cargo. Because once that stopped, it really had a ripple effect on everybody in a way to that.
So, of course, there are ways to take it in another port, take it by truck.
QUEST: This meeting that you're having, this Summit comes at an interesting time. What exactly are you going -- what for you is going to be the most
important issue to discuss?
SULAYEM: What we are trying to do as a global trade enabler. DP World, we have redefined our role. We are no more a company that worked inside the
port. We are a global trade enabler, meaning our role is end to end, from factory floor to customer door. And to do that, we need to do a lot. We
don't need to replicate the supply chain, but we need to be involved to make sure it goes smoothly.
One of the problems we noticed that especially air cargo goes from the Far East to Europe, which is very congested. And then it goes to Africa and
Latin America. It's like a triangle, and as we all knows, the closest and fastest route is a straight line between two points, and that is what we
did.
QUEST: So, in that regard, we know that world trade in one sense suffered during the pandemic. In another sense, it grew because of people buying
online and having delivered at home. What is the current trend for world trade that you're seeing? Are we seeing a resurgence?
SULAYEM: Definitely. What you see are two things, Richard. One is the back load of cargo that was not able to reach during the pandemic, and that is a
reflection of the high cost. Today, to the West Coast, containers are $30,000.00, which is unheard of in the history of shipping. And today's
cost is almost twenty or something like that.
This is the backlog of cargo. But in addition, I have the privilege of managing over 90 terminals and we see the numbers all are green. Everybody
is growing. There is growth. There is more convenience.
[15:25:17]
SULAYEM: The world economy is better. There is less you know, trade wars. There is hope that everybody is going to work together, and there is need
for cargo.
QUEST: There is a need for cargo, but we also saw cargo rates, which I know is not specifically your area because you're the port, not the shipper, if
you like. But we are seeing inflation in the world. That inflation is coming from many sources, including the increased cost of cargo freight.
SULAYEM: Absolutely. Absolutely. I mean, listen, to be honest with you as an economist background, inflation is not as bad as a deflation. What we
had in 2008 is a deflation. That killed us and small deflation can be dealt with through interest rate, through so many things. There are many today
ways within the fiscal policies and the monetary policies and the world can deal with inflation.
That doesn't worry me as much. I believe the increase in costs is going to eventually come down. The problem today, you can't find empty containers.
As a port operator, empty containers used to be a cost for me. You are stuck with these containers that have no cargo, they don't earn anything,
and they are sitting in the terminal.
Now, they are like one of the hottest commodities.
QUEST: The issue of the delta variant and vaccination. We know everybody is rushing to vaccinate as fast as possible. Are you concerned the delta
variant, particularly in parts of the world where you have your ports, where you have your exporters, the developing world. Are you concerned now?
SULAYEM: Richard, I think the pandemic is a big learning experience and we managed to deal with it, whether it is the delta or the other variants, we
managed to deal with it by making sure we follow all the rules and procedures to protect our people. And that is now not only we did it
because of the pandemic, it is part of doing our job.
We will not touch a container unless we know what is in it. We are going to do all the procedures to protect our people. They will wear their gloves,
they will wear their masks, everything -- we will do that, so that is not an issue.
As far as shipping, I don't see it as an issue. All the crew that comes needs to have been tested. Luckily in the UAE, almost more than 70 percent
of the population is already vaccinated, which is a good thing.
(END VIDEOTAPE)
QUEST: The Chairman of DP World Ports there. We will continue talking about COVID and this time, a dire warning from the W.H.O. Chief who says the
world is at a perilous point in the COVID pandemic. It is QUEST MEANS BUSINESS live from New York.
(COMMERCIAL BREAK)
[15:30:00]
(MUSIC PLAYING)
QUEST: The head of the World Health Organization is now warning of a "wave of death" in parts of Asia, Africa and Latin America from COVID-19 while,
he says, other countries are working on booster shots and relaxing restrictions.
He called vaccine nationalism "morally indefensible" and an ineffective public health strategy. Few regions are as vulnerable to the spread of the
Delta variant as Africa. Vaccinations are lagging well behind the rest of the world. You can see it there in the chart.
In the Democratic Republic of Congo, the president recently warned that hospitals in the capital, Kinshasa, are overwhelmed by a rise in COVID-19
infections. The finance minister of the DRC Nicolas Kazadi joins me now.
Minister, the situation is pretty dreadful. And I can't really see that it gets much better until you get vaccination rates higher, which won't be
soon.
So what do you need?
NICOLAS KAZADI, FINANCE MINISTER, DEMOCRATIC REPUBLIC OF THE CONGO: Yes, thank you. What we can say is that we are -- the situation -- the figures
on COVID-19 are not as bad as you are saying. We have around 40,000 people infected and less than 1,000 dead so far.
But of course, we are facing the new variant and we are making every effort to deploy vaccination countrywide because we want to ease restrictions and
also, open the economy because restriction is unsustainable social (ph).
And what we have on the table currently, we are securing 36 million vaccines, Johnson & Johnson, in addition to the COVAX initiative and other
small initiatives because we want to reach the world level of 60 percent of protection with vaccine.
QUEST: The difficulty is getting the vaccine, paying for the vaccine but, ultimately, keeping your economy going. I know you were growing fast and
your latest numbers are not good but keeping your economy growing while you deal with this crisis.
KAZADI: Yes. The first year was a bit difficult because it was new. But we had good support from the international communities (INAUDIBLE). But now we
are doing quite well. The economy is still improving. Even last year, (INAUDIBLE) were among the best one in Africa.
We had a positive (INAUDIBLE) et cetera. But now we are taking advantage of the increase of the price of raw material, specifically copper and cobalt
and we have (INAUDIBLE) is going well.
QUEST: Except, Minister, the IMF, in its latest review, in its latest -- because you're going for an extended facility -- it makes the old questions
and says the -- you know, it is all about structural reform, transparency, lack of corruption.
You've read it this million times, Minister, in different ways over many years. And here we are again, with the country being told, yes, we'll lend
you money but only when you've cleaned up your act.
KAZADI: Yes. But now we are beyond lip service. We are acting very concretely.
[15:35:00]
KAZADI: We have (INAUDIBLE) coming and the change was made by -- since 2019, when -- through -- under the leadership of the new president Mr.
Tshisekedi. Now we have concrete action against corruption. We have results. We have transformed auditing and monitoring bodies. We -- now the
justice is empowered, all free from political pressure.
And we have some result (ph) but we have never seen, in the country since (INAUDIBLE). We can say we are in a very historical moment in DRC with
regard to fighting corruption.
QUEST: Minister, you have a standing invitation. Don't get this very often. You have a standing invitation to come back on QUEST MEANS BUSINESS to
discuss and review the improvements as and when they happen.
Minister, I'm grateful that you joined us tonight from Istanbul, the finance minister from the DRC.
The central bank governor of the Philippines tells me, there can be no economic recovery without an effective vaccine rollout. His country has
been fighting a persistent wave of COVID-19 infections and plans to vaccinate up to 70 million people by the end of the year. I spoke
exclusively to Governor Benjamin Diokno (INAUDIBLE).
(BEGIN VIDEOTAPE)
BENJAMIN DIOKNO, CENTRAL BANK GOVERNOR, PHILIPPINES: Without the vaccine rollout, there can be no economic recovery in any country, we're convinced
about that. And in fact, we're moving swiftly along those lines.
We plan to vaccinate maybe 50 million to 70 million out of 100 million Filipinos before the end of the year. That's the program now. So focus on
vaccination; the economy is fine and so that's the way to solve this problem.
QUEST: Can we talk digital?
Everybody is obsessed with digital. Yet a Fed governor said only this week that it was like a fad. Cryptocurrency, digital currency is like a fad,
parachute pants.
Do you think it's -- I mean, it's coming. We know it's coming.
But where do you see the role of digital currency?
And are you working on your own?
DIOKNO: Well, first of all, when I assumed office as central bank governor two years ago, I made my vision very clear. I want to shift from a cash-
heavy to a cash-light society. In fact, the ultimate goal is a cashless society. That's possible but not within my term.
So we went that route (ph) and I said that, by 2023, 50 percent of all financial transactions should be in digital form and that 70 percent of
(INAUDIBLE) should have a financial account.
And the effect of the pandemic is that this has accelerated the move toward digitalization in the Philippines. But on the digital CBDC, what is central
bank digital currency, we -- I have organized a technical working group to look at it.
And we made a survey (INAUDIBLE) in this region and I think the adoption of digital, CBDC, I think that's at least still five years away. So we feel
that this may not be (INAUDIBLE) our people and maybe we will go to it (ph) at some point --
QUEST: Right --
DIOKNO: -- the next five years.
QUEST: OK, so but there's a -- so what you're talking about is the digital payment mechanism in a sense, the cash lite, cashless. But digital payments
-- and I can certainly see that that has a huge attraction.
But I worry -- I'm wondering, as a central bank governor, are you worried about the growth of digital currencies -- cryptos, if you like -- because
of any -- the risk they -- systemic risk they potentially pose?
And B, obviously, they are used for nefarious means.
DIOKNO: I share the views of most central bankers in the role, that that could pose a danger to the financial system. So we have to go slow on this
cryptocurrency. But on the CBDC, I think we should continue to study it between our people and maybe, at some point, we'll (INAUDIBLE) central bank
digital currency. But not cryptocurrency (ph).
QUEST: Are there tensions at the moment or are things smooth sailing?
Because at some point, inevitably, governments want to do what central bankers think is not right.
DIOKNO: Yes. But in this position, you also have to be realistic.
[15:40:00]
DIOKNO: I think some -- in some countries, they think the central bank is God. I think you have to have a very healthy attitude toward your position.
We make mistakes, too.
And (INAUDIBLE) monetary policy is not the only game in town. We can't solve all the problems in the world. So we can be of support, play a
supportive role. We can make some major role but we cannot solve all the problems in the world.
QUEST: Are you worried about a rise in interest rates in the developed world?
DIOKNO: Well, I think the difference between the (INAUDIBLE) in a few years ago and this time is that there's forward guidance by the Feds, that they
plan to do these things. They think 2-3 years from now and so it is up to individual countries to make adjustments.
(END VIDEOTAPE)
QUEST: The central bank governor of the Philippines.
And that's QUEST MEANS BUSINESS. I'll be back at the top of the hour. Together we'll make a dash for the closing bell. "MARKETPLACE AFRICA" is
next.
[15:40:56]
(MARKETPLACE AFRICA)
[15:58:33]
QUEST: I'm Richard Quest. Together, let's make a dash to the closing bell. It's just two minutes away.
The minutes from last month's Federal Reserve meeting show the central bankers talking about talking about tapering with nothing imminent. The Dow
is near session's high. It is up about around 100 points.
The SNP is on track for a closing high, as indeed, is the S&P, as indeed is the Nasdaq, which now looks as if it's not going to be closing high but it
is bouncing around the territory.
After 106 days, the Ever Given has left the Suez Canal. I spoke exclusively to the group chairman of DP World, which oversees the Middle East's largest
port. Sultan Ahmed Bin Sulayem told me the backlog from the blockage is no longer a concern.
(BEGIN VIDEO CLIP)
SULTAN AHMED BIN SULAYEM, GROUP CHAIRMAN AND CEO, DP WORLD: I think that is back to normal. I think that is anymore a problem. It happened during that
time but it went away.
But the backlog is really the cargo that people imported. And now there's not enough (INAUDIBLE) to carry it. We learned now that we have to find
ways of how to move the cargo because, once that stopped, it really had a ripple effect on everybody in the way (ph).
(END VIDEO CLIP)
QUEST: That is our dash to the bell for this evening, with some records and not in others. I'm Richard Quest. Whatever you're up to in the hours ahead,
I hope it is profitable. On Wall Street, the closing bell is now ringing. There you go. "THE LEAD" with Pamela Brown starts now.
END
