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Quest Means Business
U.K. Prime Minister Outlines Plan To Keep Country Open In Winter; Change Ahead In Norway As Labour Party Wins Election; South Africa Looks At How To Provide Basic Income Grants; The Met Gala; Democrats Push For Tax Hike On Richest Americans; Quest's World Of Wonder: Costa Del Sol; South Africa Set Zero Tolerance Policies For Corruption. Aired 3-4p ET
Aired September 14, 2021 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:05]
RICHARD QUEST, CNN BUSINESS ANCHOR: An hour before the closing bell rings and it didn't take long before Monday's gains for the Dow have disappeared
in a day.
The Dow is down off 305 points and the triple stack shows it is a broad based selloff in a sense. Whether it turns into something more, only a few
more days will show, but the markets are all down. They are grumbling and they are unhappy and the main events of the day.
In Britain, Boris Johnson is laying out Plan B for stopping coronavirus.
Lucky 13. Apple is unveiling its new range of iPhones.
And dressing down the one percent. Alexandria Ocasio-Cortez makes a statement at the Met Gala, "Tax the rich."
We are alive in New York, and it is Tuesday, the 14th of September. I'm Richard Quest, and of course, I mean, business.
Good evening. We begin tonight in the U.K. where Boris Johnson, the Prime Minister says the country is motoring ahead with booster shots. The Prime
Minister unveiled a plan to keep the economy open its window when he says the protection offered by vaccines is working well.
If the situation gets worse, Boris Johnson says he could bring back some restrictions and he is calling that Plan B. That will be mask mandates and
guidance to work from home. He did not rule out mandatory vaccine certificates to keep bigger venues open.
As from next week, everyone over the age of 50 will be offered an additional dose of the vaccine.
(BEGIN VIDEO CLIP)
BORIS JOHNSON, BRITISH PRIME MINISTER: ... out there, the disease sadly still remains a risk. But I'm confident that we can keep going with our
plan to turn jabs, jabs, jabs into jobs, jobs, jobs, and protect the gains that we've made together.
(END VIDEO CLIP)
QUEST: Nina dos Santos is in London. Jabs, jabs, jabs into jobs, jobs, jobs is a nice cute little ditty, but did the Prime Minister rule out any
lockdowns over the winter?
NINA DOS SANTOS, CNN CORRESPONDENT: No, he didn't. That was the key thing, Richard.
What he did say was essentially he didn't think that the U.K. would need lockdowns like that because over 80 percent of its population that have
been vaccinated and they are plowing ahead with, as you said, these booster shots for the over 50s, people who work in the healthcare sector.
But it's not just them, they are also going for the other end of the age spectrum as well, 12 to 15 year olds. That was an interesting decision
earlier this week with the medical officers essentially overruling the joint vaccination committee that had recommended against vaccinating school
children of those age groups because they said they weren't sure whether or not they get sick enough from COVID-19 and it would be effective.
But you know, keeping the school children vaccinated, keeping those school doors open is also a key part as we will know of keeping the economy going
and keeping people at work. So, essentially, this is the balancing act that Boris Johnson is trying to do.
As I said, with so many more people vaccinated now, he says that although the infection rates are much higher this time than they were this time last
year, little changes have a really big difference -- Richard.
QUEST: And the way in which they will do masks, and this boost jab, even though on boosters, the W.H.O. is still against this and says it's not
necessary, you could be vaccinating people who already have strong antigen support.
DOS SANTOS: Yes, essentially, their message here is well, you'd be better off donating those vaccine doses through the COVAX program, which by the
way, the U.K. is one of the biggest donors, too, I should point out having stockpiled lots of vaccines early on in the response to the pandemic. That
was one of the things that Boris Johnson's government was lauded for, they should be donating more of those vaccines to other countries that haven't
had the chance to vaccinate their people with one dose, let alone two.
Because what that would try and do would stop new variants, like for instance, the delta variant that as vaccines aren't as effective against,
it would stop them in their tracks. So essentially, that is the message. Yes, you're right, coming from some quarters, including the W.H.O. is that
donate more.
There is some skepticism including among the medical advisory teams to the government and the people who have developed some of these vaccines
themselves as to whether or not they should be giving a third dose to the older people in this country.
But again, the whole point, as we pointed out before with Boris Johnson is also balancing wealth with health as well, and to trying to protect as you
said, the N.H.S.
We didn't hear that key catchphrase again, "Protect the N.H.S." As you said, this slogan appears to move towards that cute little phrase which is
jabs, jabs, jabs for jobs, jobs, jobs. Whatever the message is, essentially, they're trying to keep the economy open here.
[15:05:12]
DOS SANTOS: But as you said, there is some criticism. And by the way, we should also mention, Richard, that, you know, everybody has different views
on these things.
At the start of the pandemic, there were some quarters including the World Health Organization, and some British government scientific advisers, who
themselves were cautioning against wearing masks.
So there are differences of opinion, and I think Boris Johnson is trying to get that balance right today whilst protecting the economy and protecting
lives.
QUEST: Nina dos Santos, who is in London, thank you.
As the U.K. government and others are reviewing various travel restrictions, the chief executive of Radisson Hotels has told me, he is
confident the company can survive a long, cold winter, even if restrictions and travel slows down.
Federico Gonzalez says even after a summer season boost, business has not yet recovered to where it was before the pandemic. I sat down with him at
the Mayfair Hotel in London for an exclusive interview when he told me the company can get back to making money next year.
(BEGIN VIDEOTAPE)
FEDERICO GONZALEZ, CEO, RADISSON HOTELS: The summer has been better than Q1 and Q2, quarter one and quarter two; however, I mean, as you say, we are
still well below where we used to be okay.
I think quarter four looks slightly better, you know, around 10 points across the world, and I think we will enter into possibly what is the most
difficult quarter, which is generally March this year which is traditionally a low period into '22.
And I think the good thing is we have had the experience of the last two years to manage to try to flexibilize as much as we can cost, to try to
adapt and be very flexible to however the market is doing.
QUEST: And of course, I've seen some of the imaginative things you're planning on doing.
GONZALEZ: Yes.
QUEST: The converting of rooms.
GONZALEZ: Yes.
QUEST: So that they can become meeting room.
GONZALEZ: Yes.
QUEST: The shifting of the revenue model so that you can do it. How long can you keep this up? I mean, how long before you've got to make money?
GONZALEZ: No, I think -- I think next year, we should be making money, '22, and why? It is because I think we have been able, first, to you know,
to control very seriously the cost base of the company, then hopefully, you know, I think as we see revenues coming back, we will be more efficient,
okay, into making sure we are at the right cost, okay, and in the right place.
And actually, this piece has made us question many things, even if we were one of the best G.O.P. companies, you know, in the hotels where we operate,
actually, this has helped us to rethink everything, how many people and how many cost we need everywhere. I think that will help us in the future.
QUEST: So, I want to just go back to the crisis because the crisis happens.
GONZALEZ: Yes.
QUEST: And all of a sudden, every hotel is in a different country with different rules, different furlough schemes, and different forms of
compensation. You can no longer control this from the corporate center, as you would traditionally.
GONZALEZ: You're absolutely right. And I think this has been extremely good. This has proven in which countries, I think, most we have good talent
in place because not only things that were done previously traveling, going and checking in and inspecting, that was gone. And I think with the level
of complexity, you say, we have had to delegate very efficiently and very effectively to the local teams to work on the food losses schemes, helps
from the government, different systems.
But I have to say that has been first exceedingly positive. Why? It is because actually, we had -- see, we have always been a company very
disciplined from an operational point of view. So they were able to cope with that.
But secondly, I think in a crisis like this, you discover new talent. People that were kind of maybe hidden in the normal situation, and then
they come out in a crisis moment as great leaders and people who solve things as problem solvers, that before, they have the opportunity to show.
QUEST: They always say that the lobby is the heart of the hotel.
GONZALEZ: Yes, yes.
QUEST: Well, the heart has started beating again.
GONZALEZ: Yes.
QUEST: But how close was it?
GONZALEZ: Well, I think if you look at us worldwide, there was a moment where we had nearly 35 percent of the properties close globally. But that's
very different by region.
I think in Europe, there was somewhere where nearly all the properties were closed. In the U.S. because of the profile of many hotels that is smaller,
family-run businesses, many of them stayed open, same done in India. Okay, so many hotels stayed open even with the crisis.
So, I think at the maximum, there was 30 to 40 percent of them closed. And now today, I would say that there's only one hotel in all EMEA closed,
nearly none in the U.S.
[15:10:00]
QUEST: Did you ever get frightened? Was there a moment when you thought this is getting away from me? This is getting away from me. I cannot see a
way in which we can move back to revenue and profitability.
GONZALEZ: No. It may sound arrogant or irreverent, but no.
QUEST: Where do you see us at the moment in terms of the crisis? Where are we at the moment?
GONZALEZ: I think we have, we have -- we are possibly at the middle of it. So, where we are today is if you look globally, we are kind of 50 percent
globally of where we used to be in '19.
So you have differences by region, you know. Europe is at minus 80 percent or Asia, but U.S. is much better, but I think maybe -- I think we're in the
middle of it. Different companies will take different approaches. We have been lucky with the support of our shareholders who have helped us and
enabled us to keep doing the investments in '19, expansion, I mean refurbishment of the company for the last two years.
(END VIDEOTAPE)
QUEST: The CEO of Radisson.
The world's biggest energy exporters will soon have a new Prime Minister after an election that centered on fossil fuels and the climate change.
Norway's main opposition Labour Party is beginning coalition talks after defeating the ruling conservatives; the Greens did worse than expected.
Oil and natural gas accounts for more than 40 percent of Norway's exports. At the same time, the country wants to become carbon neutral by 2030, a lot
earlier than many countries. Norway already relies heavily on hydroelectricity for its power supply. The Labour leader set out the
challenges ahead.
(BEGIN VIDEO CLIP)
JONAS GAHR STORE, LEADER, NORWEGIAN LABOUR PARTY: I would really argue that we have nine years to achieve 2030 goals in meeting the Paris
objectives. So, we will cut 55 percent of our emissions, that's a huge transition. So, we have to really get going during these first four years
and do that in a tangible way.
(END VIDEO CLIP)
QUEST: Hilde Merete Aasheim is the President and CEO of Norsk Hydro, the Norwegian aluminum and renewables company. She joins me from Oslo via
Skype. Ma'am, thank you for taking the time. First of all, let's just get rid of the politics of it. Do you worry about this new government? Do you
fear -- I mean, it's a more central government so less radical than it could have been, but do you see a major shift in policy coming that could
affect your company?
HILDE MERETE AASHEIM, PRESIDENT AND CEO, NORSK HYDRO: Well, first of all, I think that we are all concerned about the climate challenge and the fact
that climate was such a big discussion in the election campaign, now up to the last night, is I think we all expected.
I think that -- and it's evident that the Norwegian government will follow the Paris Agreement and also look to Fit for 55, which is the E.U. roadmap.
But I'm not so fearful, because I believe that in Norway, we have this good tradition of sitting down the industry and the politicians to see how we
can find a way to enable this transition, while at the same time trying to preserve workplaces, as well as competitiveness.
QUEST: The aluminum industry as such, and if we look at the difficulties of supply chain, at the moment of commodities, and commodity markets, and
at the same time balance that off against the necessity of sustainability, do you feel that you're unfairly under threat?
AASHEIM: No, not at the position that we have in hydro because we are in the position where we produce low carbon aluminum quite well, already. We
have taken out 70 percent of the carbon since 1990. And we are continuing to take out the carbon from our processes.
Right now, there is a real proof for aluminum, the demand has recovered quite well after the pandemic. But also what is interesting is to see also
that the demand is coming now towards aluminum for the electrification of the car, and also the more aluminum in the building and construction
industry to improve the energy efficiency.
So aluminum is the battle for the future, but obviously it has to be produced with as low carbon footprint as possible and then, it's very
dependent on what the energy source you have and in Norway, we have the renewable energy from the hydropower as you just said.
QUEST: Which is a huge benefit for yourselves.
AASHEIM: Yes.
QUEST: But I look at your industry. Now, you know, obviously over the last four or five years, there was the Trump tariffs on aluminum and we've had
the prospect of dumping by other countries, and then you have the whole question of sustainability.
So where do you grow as a high cost country? And by that, I mean, high social taxes, the cost of a cup of coffee in Oslo is simply -- you need a
mortgage and a bank loan. How does a company like you grow?
[15:15:27]
AASHEIM: Well, we would like to particularly now grow in recycling and bringing back the aluminum from after use, and that's an area where we have
high ambitions to double our use of postconsumer scrap aluminum that has been used where we only need five percent of the energy to recycle. That's
particularly an area that we would like to grow, which really match our capabilities.
QUEST: And when you look at international regulators, finally, and you look at the international agreements, what is it you need most now? What is
it you most need from government besides obviously an element of continuity and certainty, but what regulatory change do you need that will help you
reach that sustainability goal that the whole aluminum industry is seeking?
AASHEIM: We need much more renewable energy. We need wind power, we need solar power, we need hydro power. And we need hydrogen in the energy mix.
In order to produce aluminum in a sustainable way, it needs to be produced with a renewable energy source.
And when you look at the targets for 2030 to 2050, there is a huge amount of renewable energy that has to come into the equation in order to meet the
target when it comes to the carbonization and the electrification.
QUEST: Hilde, we will talk more. Thank you. First time we've been able to have you on QUEST MEANS BUSINESS. I promise you, ma'am, it won't be the
last Thank you.
As we continue tonight, just think about it, with only 17 minutes and already you've have heard from the Radisson CEO, and the CEO of Norsk
Hydro, and plenty more to come.
South Africa is looking at basic income grant.
After the break, we are going to hear from the CEO of the Johannesburg Stock Exchange about new plans to boost the recovery at the same time of
capital flight.
It is QUEST MEANS BUSINESS with all the CEOs.
(COMMERCIAL BREAK)
[15:20:24]
QUEST: The World Health Organization says African nations are being left behind on vaccines. Around 13 percent of South Africa's population is fully
vaccinated. More than half of people in the E.U. and U.S. have gotten -- have received their shots. South Africa's Cabinet Ministers met today to
discuss more economic stimulus, including a basic income grant. The South African economy grew faster than expected, 1.2 percent.
Over the last year, the South Africa's -- the JSE All Share Index is up roughly seven percent. Leila Fourie is the CEO of the Johannesburg Stock
Exchange, and joins me now. It is good to have you. Thank you, ma'am for taking time.
The reality is the South African economy, and the companies that therefore make up your exchange are going to still be hit hard despite maybe a bounce
back because of pent up demand. Do you think the government is doing enough to reflate and inflate the economy?
LEILA FOURIE, CEO, JOHANNESBURG STOCK EXCHANGE: Certainly, Richard, a lot has happened in the last six months. In fact, I'd argue that we've seen
more economic and policy reform in the last six months than we've seen in the last 15 years.
The government has introduced semi-privatization of South African Airways, they've introduced the promise of spectrum. They are also looking at
electricity reform, and they've taken a very strong zero tolerance on corruption.
And all of those elements are encouraging progress and we are also seeing significant uptake in vaccine rollout.
QUEST: So, on this question of attracting companies to the exchange. I saw 20 or so delisted last year. I mean, what is the reason why a company would
want to come to the JSE?
FOURIE: Richard, South Africa in terms of emerging markets punches way above its real economy weight. We are the 18th largest exchange by market
capitalization and the 33rd largest by GDP. So you can see deep and liquid markets in the emerging markets.
We also have a number of single stocks, which are deeply discounted and have excellent value to add. In terms of our commodities market, we've seen
an enormous surge in the commodities market, too.
QUEST: You are on record as saying you're big -- the thing that keeps you up at night is capital flight, and I can understand why. I bet you regret
saying that in that particular context -- it's going to come back to haunt you. But the reality is, capital flight has been an issue in Southern
Africa for many years, and following a state capture and the poor performance of the economy, I can see why you're worried. Do you see any
evidence of it stopping?
FOURIE: Richard, the green shoots that I am seeing is really in the bond market. So yes, certainly, we have seen systematic outflows in the equity
market. However, if we look at the bond market over the year-to-date, we are up to 37 billion rand. Last year this time, we were down 58 billion.
And so that's that sends a strong message that investors are now starting to believe the economic transformation and there is a bounce back in
confidence in the government.
QUEST: Finally, when you think of what happened during the Gupta years, and I know there are charges pending, et cetera et cetera. Do you now say
and believe that it couldn't happen again.
FOURIE: I think, Richard, what we're seeing is that the President has taken a strident and very strong stance against corruption. He has
appointed a number of credible leaders in organs of state institutions focused on rooting out corruption. And the measures sent a very important
zero tolerance of corruptions.
It says that our institutions are intact and that no one is above the law. Though, the ANC recently instituted a step aside rule, which saw a number
of prominent leaders being called to step down, and the incarceration of a number of prominent leaders are also a very strong signal.
[15:25:12]
FOURIE: So I can say that we have strong institutions and there is a political will in the ruling party to address corruption head on.
QUEST: Leila Fourie, the CEO of the Johannesburg Stock Exchange. Again, I think you're another first time that you've been on QUEST MEANS BUSINESS. I
promise you, it won't be the last. I'm grateful you've given us time tonight. Thank you, ma'am.
FOURIE: Thank you.
QUEST: Staying with Africa where many airlines have looked a freight to shift their business models, dealing with the pandemic, the demand has been
overwhelming. Eleni Giokos with that story in today's "Connecting Africa."
(BEGIN VIDEOTAPE)
KAMIL AL-AWADHI REGIONAL VICE PRESIDENT FOR AFRICA AND THE MIDDLE EAST, INTERNATIONAL AIR TRANSPORT ASSOCIATION: Cargo is, I have to say very
positive in Africa. It helped well. It increased beautifully. It supported a lot of the aviation industry -- the jobs, whether it's in the airport,
the cargo agents, the handling agents, ground handling agents, and so on so forth. It kept some of the jobs going and some of the airlines going, and
it's a positive point.
ELENI GIOKOS, CNN BUSINESS AFRICA CORRESPONDENT (voice over): Jomo Kenyatta International Airport in Nairobi, Kenya handled the most cargo of
any African airports in 2020. It's the central hub for Africa's leading cargo only airline Astral Aviation, which expanded its fleet during the
pandemic.
SANJEEV GADHIA, FOUNDER AND CEO, ASTRAL AVIATION LTD: I'd now like to introduce you to the newest member of our fleet, the Boeing 767-200
freighter, which we started flying on the first of January this year.
We have very big plans for expansion in Africa. The first thing that we are planning to do is to increase our fleet from 14 to 20 aircrafts which we
will be doing over the next 12 months. And these are only cargo aircrafts. In addition to that, we're setting up a hub in West Africa and we are
setting up a hub in Southern Africa.
GIOKOS (voice over): Astral Aviation is not alone in boosting its cargo capacity. Some passenger-led airlines have pivoted their business to meet
the market shift.
ALLAN KILAVUKA, CORPORATE EXECUTIVE OFFICER, KENYA AIRWAYS: So right now, we are sitting in the world's first converted or repurposed Dreamliner, the
787, and this one alone, we have dedicated it to cargo, this and another one like this.
GIOKOS (voice over): During the pandemic, the airline boosted their cargo capacity by over 500 tons per month.
KILAKUVA: Until now, cargo has been about 10 percent of our business. We want that to grow progressively to over 20 percent of our business. In
other words, to double it within the next three to five years.
Of course, our goal is to try and connect as many destinations as many points as possible within Africa to our hub in Nairobi, and of course to
each other as well. We are predominantly an African operator, and that's how we want to position ourselves because we believe there's a lot of
potential in the continent. So, we'll continue to grow that niche.
(END VIDEOTAPE)
QUEST: Eleni Giokos who is in Nairobi.
Coming up, as QUEST MEANS BUSINESS continue, fashion and politics collide at the Met Gala. AOC calls for a tax on the wealthy.
(COMMERCIAL BREAK)
[15:30:00]
(MUSIC PLAYING)
RICHARD QUEST, CNN HOST: In an orgy of over the topness, it was a politician who made one of the boldest fashion statements at New York's
exclusive Met Gala. It's the Democrat lawmaker Alexandria Ocasio-Cortez who attended the gala and wore a gown that said "tax the rich."
The fundraiser that highlighted the city's social calendar, Ocasio-Cortez said it was an opportunity to speak to the elite about fair taxation. The
gown's designer, Aurora James, said it was meant to get people talking.
(BEGIN VIDEO CLIP)
AURORA JAMES, FASHION DESIGNER: A lot of these conversations that we have about economic justice usually happen in spaces with working class people.
And I think the congress woman is not going to ever sacrifice her morals for comfort.
And she wanted to make sure that this message was brought into that room and into a group of people, who ultimately have to be willing to, you know,
be more liberal with their economic values as well.
(END VIDEO CLIP)
QUEST: Morals and comfort at the Met Gala; Catherine Rampell is with us, economics commentator and columnist for "The Post."
We'll leave the fashion aside. We can talk about that for hours. On the economics of it, it is becoming clear, isn't it, particularly as the House
Ways and Means Committee has just brought out the latest version of the bill of the future of social spending of America, it is still a massive
bill, this tax the rich.
Where does it get paid?
CATHERINE RAMPELL, CNN POLITICAL COMMENTATOR: Well, Biden has said that he's drawing a red line at people making under $400,000, that they will not
get a tax increase of any kind. Economists would dispute that.
They would say, if you're raising the corporate income tax rate, some of the economic incidents of that tax befalls workers, including people who
earn under $400,000. There are some other provisions that are supposedly on the table, like a tobacco tax, a nicotine tax. They would be paid by people
making under $400,000.
But the Democratic Party in general is aiming their firepower at the very wealthy and, of course, corporations.
QUEST: And in doing so, it begs the question whether it serves its purpose. It is a popular -- it is a popular call. But as "The New York
Times" this morning makes clear, if you don't go big and fast, you don't get it passed. And in the past, the Democrats have failed spectacularly at
doing this.
RAMPELL: There is a lot of debate within the Democratic Party about how much to raise taxes on corporations and on higher earners. There were some
tax breaks that disproportionately benefit higher earners, including for example Democrats in blue states, high tax states like New York, New
Jersey, California, are arguing that the cap on the state and local tax deduction, which was put in place by the Trump tax overhaul in 2017, that
that should be removed.
And its primary beneficiaries, as it turns out, happen to be people making over $500,000 or even over $1 million per year. So Democrats are not
unified, even in this message. They're pitching it as a middle class tax cut but the data suggests otherwise.
QUEST: So what gets passed at the end?
[15:35:00]
QUEST: We know Manchin, having described AOC as a young lady, much to her distress, we know that he's not going for a vast revamp of the social
network. But at the same time, to pay for the infrastructure will require the higher taxes.
In your experienced view, what will get passed?
RAMPELL: I think what will ultimately happen is that Democrats will pay for some but not all of their agenda. In fact, I don't think the entirety
of their agenda could be paid for solely by levying higher taxes on the very high income people as defined by Biden and corporations.
There aren't enough ultra rich people in mega corporations to sustain that level of spending. So most likely what they will do is they will pay for
some of it, not all of it. The budget resolution they passed has suggested that they can borrow up to $1.75 trillion over the next decade.
And I think they'll use some of that borrowing room and maybe use some confusion about the accounting to get this through both the moderates and
the progressives in their caucus.
How much does it cost?
Are we talking about the gross cost?
The net cost?
Who's paying the bill?
It is a little fuzzy.
QUEST: Catherine thank you. I appreciate your joining me.
And I'm well aware that, to many who have just joined us -- thank you, Catherine -- you will have been extremely disappointed, having heard the
introduction for that. You would have hoped for a discussion on the fashion. And we talked about the economics. There you are.
In the past couple hours, Apple launched the new iPhone 13. It features a range of technical upgrades, such as an option for a 1 terabyte storage. It
comes after it issued an urgent software update for older models, addressing spyware vulnerability. The chief executive, Tim Cook, of course,
is banking on the new model being one of the best.
(BEGIN VIDEO CLIP)
TIM COOK, CEO, APPLE: We are so excited for iPhone 13. With all of its power and capability, we can't wait to see what our customers will do with
it.
And we're not done yet. Our Pro lineup pushes the limits with our most advanced technologies for our users who want the very best iPhone. Best in
class performance, best in class camera experience, great durability, larger displays and incredible design.
(END VIDEO CLIP)
QUEST: Samantha Murphy Kelly has more.
What grabbed you about what we heard?
SAMANTHA MURPHY KELLY, CNN BUSINESS SENIOR WRITER: Hi, well, it's really interesting. Everyone was buzzing last year when it came to the new 5G
capable devices. And this year, everyone is trying to put their finger on the big takeaway.
We have better screens, long lasting battery life, faster, these are all ingredients Apple has included in new iPhones over the years.
So what is the standout?
We can't put our finger on it, short of 1 terabyte of storage is certainly a great option for people looking for it. But this is more sort of a back
to basics. And there was not really one thing that really pulled us this year.
QUEST: Does it suggest there is no imperative to upgrade unless you have an old phone and it was that time to go from your 7 or whatever. But if you
have an 11, you're thinking, why bother?
KELLY: I think you nailed it. Depending on what model you have, even if you just purchased one a few years ago, this will be a major improvement.
Even the battery life will be pretty dramatic. It just depends if you're one of those people that wants a new iPhone every year. You're probably not
going to notice anything, no game changers.
There are some nice -- new camera system, different new perks for camera users as well. But yes. What is really interesting is also the numbers;
last year was such a gangbuster quarter. Millions and billions of sales there. So whether or not this will entice people to upgrade is up to where
you are in your model lineup.
QUEST: And of course, Apple has to work out this business of restoring the revenue from the sales. Thank you. I appreciate it.
I want to show you the markets, if I may. It has been a pretty awful sort of day. And the Dow is now down 329 points. We're virtually the worst point
in the session. I'm going to call that my Dow chart.
Caterpillar is now the largest off on the Dow 30. It is more than 2 percent. JPMorgan is down. Look at it. It is a red sea, with only Microsoft
poking its head above. It doesn't suggest, it tells you straight out.
[15:40:00]
QUEST: Even Apple on its big day had a loss of 1.75 percent.
That's QUEST MEANS BUSINESS. Together, we'll make a dash for the closing bell at the top of the hour. I'll be back after the break. We have a world
of wonder for you.
(MUSIC PLAYING)
(COMMERCIAL BREAK)
(MUSIC PLAYING)
(BEGIN VIDEOTAPE)
(MUSIC PLAYING)
QUEST (voice-over): Whenever I'm here at the Costa del Sol, it may be a stereotype and arguably a parody but I always like a full English. Start
the day with it, sitting here, in fact, I'll spend an hour or so just enjoying the morning.
The only British papers come down on the first planes and if I'm really lucky I will get to read it. I could read it online but it is not the same.
Tradition, tradition.
(MUSIC PLAYING)
QUEST (voice-over): The heart of the Costa del Sol vacation is right here, the beach. Everyone in the sun, preening tans all day.
UNIDENTIFIED MALE: It is amazing why people come here to do simply nothing but sit on the beach or by the pool and then go home a lobster.
QUEST (voice-over): The beach and the booze brought Tony Brand (ph) here 27 years ago. He came to be a chef. Instead, he found something much more
nourishing.
QUEST: Oh. Oh, that is wonderful.
How does a punk rocking British chef become one of the leading academic aficionados, a foreigner, of flamenco?
UNIDENTIFIED MALE: Quite difficult.
Somebody took me to a flamenco peno (ph), which is different from a tablau (ph). A tablau is a tourist attraction whereas the peno (ph) is where you
get the authentic flamenco.
[15:45:00]
UNIDENTIFIED MALE: Once the show started, there was a guy on guitar. Another guy, who I thought was just wailing. That's what it sounded like.
And the percussion was solely the woman's feet and the singers' knuckles (ph), where they play on the table. I didn't understand it. And I thought,
wow. There was something there, that I thought, there is a lot more to this than this wailing.
QUEST: Most Brits like me who came in the '70s and '80s on holiday, it was a Thursday night show in the hotel.
UNIDENTIFIED MALE: Which really was nothing to do with flamenco and somebody said to me one day, a Spanish guy the only way you ever understand
this is to get in with the community that I see before me.
QUEST (voice-over): Tony (ph) is my way in. Before I even shuffle a foot or flick a wrist, I want to look the part.
UNIDENTIFIED MALE: (INAUDIBLE).
QUEST: What, really?
It looks like I'm going to the garden.
UNIDENTIFIED MALE: No, that would be a typical what they call in Spanish a (INAUDIBLE).
QUEST: (INAUDIBLE)?
It looks like an old man's hat. I don't want to be indiscreet.
But does the size of the brim signify anything?
I don't think so, do you?
(INAUDIBLE).
Always fasten it on the...
UNIDENTIFIED MALE: Normally to the side.
(INAUDIBLE).
QUEST: I like the look of this.
Do I need one of these?
UNIDENTIFIED MALE: Yes. There is your fur bloke (ph).
QUEST: What?
UNIDENTIFIED MALE: Your fur bloke (ph).
Very good. There we go. Look at that.
QUEST: I've got one right here.
UNIDENTIFIED FEMALE: No, no.
QUEST (voice-over): Now for the real thing. And Tony (ph) has kindly introduced me to Susana Manzano. She will ease me into learning flamenco,
something she spent a lifetime elevating to an art form.
UNIDENTIFIED FEMALE: (INAUDIBLE).
QUEST (voice-over): Wonderful, charming, exotic, enthusiastic and totally ruthless in her pursuit of my flamenco.
QUEST: One, two, three, four, five, six.
QUEST (voice-over): The Kelipe Flamenco Arts Center is a home for students of all levels of ability, thankfully.
UNIDENTIFIED FEMALE: Ole.
QUEST: Ole.
Do you really say ole?
It's relatively easy to get the shoes to make a noise. And you sort of fake it until you've gotten it. (INAUDIBLE).
But nobody here is fooled.
This dance that I'm doing at the moment.
Is it love?
Is it passion?
Is it -- ?
UNIDENTIFIED FEMALE: (INAUDIBLE).
UNIDENTIFIED MALE: (INAUDIBLE).
QUEST: Meaning?
UNIDENTIFIED FEMALE: (INAUDIBLE).
QUEST: Really?
QUEST (voice-over): I am a flamenco fiasco. And here, that doesn't matter. Susana is loving the very fact I'm enjoying it so much, which I am.
Susana's experience has me moving.
QUEST: It's very satisfying.
UNIDENTIFIED FEMALE: (INAUDIBLE).
QUEST (voice-over): Her enthusiasm has me reaching for duende (ph).
UNIDENTIFIED MALE: The duende is like the wind. You can sense it, you can feel it but you can't touch it and you can't see it. And it is something
that either the dancer, the singer, even the guitarist will transmit. It's a level that they reach while performing.
And when they reach that level, they're able to transmit that to the audience.
QUEST: Being in the audience, can you tell when they've reached it?
(MUSIC PLAYING)
UNIDENTIFIED MALE: It is so fascinating. But once it is there, once it appears, you will know. With flamenco, if you're tuned into what they're
doing, how they're performing, you can feel it.
QUEST (voice-over): Tuned in, turned on, duende at full throttle.
UNIDENTIFIED MALE: Ole!
(MUSIC PLAYING)
(COMMERCIAL BREAK)
[15:50:00]
(MUSIC PLAYING)
QUEST (voice-over): I vaguely remember Dad (ph). He always had that all you can eat place.
(CROSSTALK)
UNIDENTIFIED FEMALE: Yes, it's still there. And it's an all you can eat sushi.
(LAUGHTER)
UNIDENTIFIED FEMALE: And it has still been going.
QUEST (voice-over): Strolling down memory lane, along the paseo with my sister, Caroline. It has made this visit to the Costa del Sol even more
special.
QUEST: What does it mean to you coming here?
Because we've been coming here for so long.
UNIDENTIFIED FEMALE: It's Mummy and Daddy. That's what it means to me. I feel their presence here. In fact, when I arrived here this time, it is the
first time I've been here since Mum passed away because we couldn't go last year.
(CROSSTALK)
QUEST: Same with me.
UNIDENTIFIED FEMALE: And I just burst into tears. I just felt her presence and her beach clothes were still hung in the wardrobe.
QUEST: It's home, isn't it?
UNIDENTIFIED FEMALE: Yes. It's home.
(MUSIC PLAYING)
QUEST (voice-over): So much of what I remember here has happened within walking distance of this promenade. My sister suggests I visit Malaga, the
city I've only rushed past on the way from the airport to get to the beach.
(MUSIC PLAYING)
QUEST (voice-over): Again, my ignorance as a sun worshipper is on full display. Malaga is so much more than just an airport or a taxi ride. I am
learning it offers the kind of exploration that only happens when I slow down to appreciate the finer parts of life.
(MUSIC PLAYING)
QUEST (voice-over): Malaga is the birthplace of Spain's artistic gift to the world, Pablo Picasso.
I know somewhere along my travels I've heard that. But I've never done anything about it until now. I'm enjoying an early hours tour of the Pablo
Picasso museum.
Awesome, astonishing. Ah.
It is probably a bit vulgar and definitely gauche, but whenever I'm in an art gallery like this, I think two things.
Firstly, how much is each one of these worth?
And secondly, if given the choice, which would I take home?
And I think this is the one. Bust of a man with a hat. I can relate to you, sir.
That was worth it. The Andalusian sun, the 11 chimes of the bell, the museum is now open.
Ah. Ah, that's good. That feels really good.
(MUSIC PLAYING)
QUEST (voice-over): A magnificent introduction to a much underrated city. I realize Malaga's masterpieces are many and minutes from my little patch
of the sea and sound. There is something here for everyone, from the buckets and spade brigade that come for two weeks on the beach to the faded
aristocracy and nouveau riche over in Marbella (ph).
[15:55:00]
QUEST: And don't forget the Spanish, who come here in large numbers, too. As for the word that describes all of this, I think it is inclusive. All
are welcome. And you will want to come here and be included in the fun, too. In its own unique way, the Costa del Sol, part of a world of wonder.
(MUSIC PLAYING)
(COMMERCIAL BREAK)
(MUSIC PLAYING)
QUEST: Hello. I'm Richard Quest. Together, we'll have a dash to the closing bell and it is just two minutes from now.
The Dow has been horribly off all day. We're off the lows of the day. We're down over 300 and something.
Now it is all about the inflation rate which fell in the U.S. slightly in August. But we are testing those session lows. And the other indices are
not doing any better really. The Nasdaq is off over 71 points. The S&P 500 is down so the markets are down. And they've been on a losing streak since
last week.
South Africa's JSE index is down half a percent on Tuesday. The South African government has meeting to discuss new ways to support the country's
economy. The Johannesburg stock exchange chief executive Leila Fourie told me the government was now getting tough on corruption.
(BEGIN VIDEO CLIP)
LEILA FOURIE, JSE CHIEF EXEC: What we're seeing is that the president has taken a strident and very strong stance against corruption. He's appointed
a number of critical leaders in (INAUDIBLE) institutions, focused on weeding out corruption. And the measures seemed a very important zero
tolerance of corruption.
It says that our institutions are intact and that no one is above the law. The (INAUDIBLE) recently instituted a step-aside rule, which saw a number
of prominent leaders being called to step down, and the incarceration of a number of prominent leaders are also a very strong signal.
(END VIDEO CLIP)
QUEST: And that is the dash to the bell for today. The markets are clearly in an unhappy mood. I'm Richard Quest. Whatever you're up to in the hours
ahead, I do hope it's profitable.
If you're fasting, hope you're well over the fast. The closing bell. Now "THE LEAD WITH JAKE TAPPER".
[16:00:00]
END
