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Quest Means Business
Joe Biden And U.S. Business Leaders Urge Debt Limit Action; White House Warns Default Threatens Core Government Functions; California Container Ship Gridlock May Have Caused Oil spill; WHO Endorses Malaria Vaccine For China In Sub-Saharan Africa; Instagram's Impact On Teens; U.K. Natural Gas Futures Up 40 Percent In Intraday Trading; Volvo Receives Record Order For Electric Trucks; Profitable Moment. Aired 3-4p ET
Aired October 06, 2021 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICHARD QUEST, CNN BUSINESS ANCHOR: Interesting day on the markets today. We've seen a 500-point swing across the Dow Jones, which has been down
heavily throughout the day. Now, it's off 17 points, but there is a smidgen of green and the story really is the recovery renaissance since one
Dow is down, but the S&P and NASDAQ are higher, which really speaks to the way the day has been moving.
This case of Russian roulette with the U.S. economy. Joe Biden is teaming up with chief executives to demand that the U.S. debt ceiling be raised.
By land or by sea, experts are warning it could take months to fix the global supply chain chaos.
The World Health Organization is turning support behind the first malaria vaccine for kids. I'll be speaking to the head of GAVI. That's, of course,
the Vaccine Alliance.
We are alive in New York. It's the midweek day, Wednesday, 6th of October. I'm Richard Quest, and I mean business.
Good evening, a stern warning from President Biden that the entire U.S. economy is on the line if the U.S. Congress can't raise the national debt
limit. He has called it a totally avoidable situation. The President and the Treasury Secretary, Janet Yellen, have been holding White House
meetings today with business leaders who are also sharing their sense of urgency.
The President has implored the Republican lawmakers to stop playing Russian roulette with the country's credit and finances. In other words, he said
get out of the way. And if so, the Democrats were willing to act alone.
(BEGIN VIDEO CLIP)
JOE BIDEN (D), PRESIDENT OF THE UNITED STATES: Our markets are rattled, America's savings are on the line. The American people, your savings, your
pocketbook are directly impacted by this stunt.
It doesn't have to be this way. My Republican friends need to stop playing Russian roulette with the U.S. economy. If they don't want to do the job,
just get out of the way. We'll take the heat, we'll do it. We will do it.
Let us do it. Let the Democrats vote to raise the debt limit without obstruction or any further delays.
(END VIDEO CLIP)
QUEST: There's a lot of politics in here, John Harwood, who is with me, because the Republicans -- and without getting too deep into the mire of
congressional niceties, John.
But the Republicans have been saying you can do this on your own. Just do it. Now, the President is saying we will do it on our own. So, why don't
they just do it on their own?
JOHN HARWOOD, CNN WHITE HOUSE CORRESPONDENT: Well, because there is some hurdles to doing it immediately. That is to say, Mitch McConnell is
inviting Democrats to do it in a way that would exact political pain from them and that would be difficult for them. Democrats want to move through
the Senate, by itself immediately without delay, without a filibuster.
And it does look this afternoon, Richard, as if some of the pressure that President Biden and the Democrats have been trying to place on Republicans
has had an impact, because we've got word this afternoon that Mitch McConnell, the Senate Republican leader has told his colleagues that if
they don't permit this debt limit to go through at the moment, Democrats might gut the filibuster, which would have effects on other issues.
And so, he is offering a short -- to facilitate a short term extension of the debt limit to give Democrats more time. That is an indication that all
of the warnings about potential economic catastrophe are registering with Republicans, as they have with Democrats, and it may produce at least a
short term solution pretty soon.
QUEST: What's your gut feeling saying about who is getting the blame here?
HARWOOD: Well, if they raise the debt ceiling and avoid the catastrophe, I don't think it is going to be a matter of blame. The blame would only come
if you have an economic catastrophe, and I think Republicans have been a little bit worried about the blame.
You typically assume that whoever's President, whichever party is in charge will get the blame, but Republicans have a track record on this. They
caused a near default in 2011 when Barack Obama was President, caused the first ever downgrade of U.S. debt, and Democrats have been spending the
last couple of weeks trying to make it plain that the only reason why they haven't been able to vote this increase in the debt limit themselves is
because Republicans have been filibustering it.
So Mitch McConnell is trying to take that off the table and look for at least a near term solution. It's not going to solve the problem
permanently, but it could solve the immediate crisis.
QUEST: In a word or two, it could solved.
HARWOOD: Yes, there is no doubt about that. It is going to get solved. This political dance is going to play out, but the one thing that is different
between now and 2011, when we actually had a debt downgrade is that at that time, the House Republicans who were blocking the rise in the debt limit
under President Obama, they actually didn't care if the debt limit went up, they were okay with courting that catastrophe because they thought they
could take advantage of it.
Mitch McConnell is not in that position. Mitch McConnell acknowledges it must be done, and therefore, when we've gotten to crunch time, he is trying
to take steps to make sure it is done, and there is no chance that Republicans will own responsibility for economic calamity.
QUEST: John, thank you. John Harwood who is in Washington.
And the White House has laid out what could happen if the default were to take place. First, the government will be unable to carry out the most
basic functions, which would jeopardize the financial aid and health for millions of people. Natural defense and pandemic response could also be
A default could delay the F.D.A.'s approval of COVID therapeutics and vaccines for younger children, and going to the White House, even the
threat of default is hurting markets and consumers. The White House says an actual default could trigger a recession and a global financial crisis.
Matt Egan is in Bergen County. Matt is with me. I mean, you heard John Harwood say, it is not going to happen, and I don't know anybody who -- any
sensible, sane person who hasn't been at the lunchtime Sherry who believes that it's -- you know, it would all go pear-shaped.
But it speaks to a bigger issue of inability to get things done.
MATT EGAN, CNN REPORTER: Yes, that's right, Richard. And listen, although everyone expects them to get this done, you know, Goldman Sachs had just
put up this report to clients this afternoon, moments before Mitch McConnell came out with his announcement of an offer to Democrats, Goldman
Sachs warned clients that they see, quote, "a real risk" that Congress misses the October 18th deadline that Treasury has set to raise the debt
They say that it is not their central forecast, but they kind of think that best case is this gets resolved last minute; worst case, there's actually a
lapse in borrowing authority for the Federal government. And they said that that probably wouldn't be a long term thing, but it would still delay
payments to households on everything from Social Security checks to potentially you know, food stamps, paychecks to active military members,
and just as you said, just sort of the basic services that the Federal government actually is responsible for.
So we do need to pay close attention and hope that they are able to reach a deal finally. It is a serious issue.
QUEST: Look at the markets with me for a brief second or two, because there's no one better to tell me what's been happening. If we look at the
Dow, we went down heavily all day, and we are off just a bit now, but it's come back quite dramatically. I mean, arguably, it is because Russia is
talking about pumping more gas, and arguably, it is this, that, or the other.
But a market that was very unhappy for most of the session is at least, I won't say smiling, but not as grumbling.
EGAN: Right. And I think that the market did appear to turn around, around the time that Mitch McConnell came out with a potential olive branch around
the debt ceiling. And you know, to John Harwood's point, the timing is really interesting here because Mitch McConnell is making this offer at a
time when he could have made this offer previously, but it comes when the White House has just huddled some of the captains of industry, the CEO of
NASDAQ, JPMorgan, Bank of America, they were all there at the White House or speaking virtually talking about just how disastrous a default would be.
And we had the White House economist putting out this report that was effectively sounding the alarm on the risk of a default. And yes, the
markets were starting to maybe be somewhat concerned.
So you know, the timing of the concession from Republicans is interesting and investors are hoping that maybe some of that debt ceiling risk could
start to fade away, hopefully.
QUEST: Matt Egan, good to have you, sir, I appreciate your time. Thank you.
Now there's a mighty log jam of shipping containers off the Coast of California right now. Experts are warning it could be months before things
get back to normal.
We'll understand why in a moment.
QUEST: The huge backlog of shipping containers waiting to dock in California may have caused the oil spill on the West Coast. The U.S.
Department of Transportation says it's looking into whether one of the ship's anchors of that fleet damaged the Amplified Pipeline, in doing so,
releasing more than a hundred thousand gallons of oil.
As for the logjam of ships, that will take months to clear as Kyung Lah reports.
KYUNG LAH, CNN SENIOR NATIONAL CORRESPONDENT (voice over): To understand the problem on the ground, you first need to see it from the air.
COMMANDER STEPHEN BOR, U.S. COAST GUARD: We are flying right over the anchorages just south of the ports of Los Angeles Long Beach.
LAH (voice over): This is where the global supply chain meets the U.S. economy, says Coast Guard Commander Stephen Bor.
BOR: This is record breaking. It is unprecedented. There are more ships than there are parking spots. We are effectively operating a sort of
waiting lot in the Pacific Ocean.
LAH (voice over): This bottleneck of container ships as far as the eye can see carries more than half the Made in Asia items purchased by the American
BOR: You're looking at all of the electronics. You're looking at all of the home goods. You're looking at all of the things that people are looking
forward to by this coming holiday season.
LAH (voice over): Zero ships usually stay parked here, but on this day, Commander Bor counts 55 in the ports and more drifting further out in the
Pacific. While worst here, the backup is at all West Coast U.S. ports.
LAH (on camera): What does that indicate to you about what's happening in the supply chain?
BOR: You know, I think everybody can see that things are slowing down.
LAH (voice over): Slowing down and piling up at sea, and at the ports of entry. This is what happens when a global economy snaps back after the
COVID slump of 2020. American consumers are back buying with force, but the supply chain is struggling to catch up.
MARIO CORDERO, EXECUTIVE DIRECTOR, PORT OF LONG BEACH: We need to have an Amazon state of mind in this industry. And by that, I mean Amazon changed
LAH (voice over): While shoppers clicked 24 hours a day, factories in Asia are still stopping due to COVID. Then, in the U.S., national labor
shortages and limited work hours. The Port of Long Beach is just now experimenting with round the clock operations.
CORDERO: What this is, is a wake-up call for all of us in this industry. We should realize, you can't operate with a model of yesterday.
LAH (voice over): The goal: Cut the wait time for truck drivers, the next link of the supply chain, moving containers out of the port.
UNIDENTIFIED MALE: Every day, like five, six hours in the harbor.
UNIDENTIFIED MALE: You have to wait like six hours.
LAH (on camera): Six hours?
UNIDENTIFIED MALE: Six or eight.
RUBEN PONCE, TRUCK DRIVER: I was in there for nine hours.
LAH (voice over): Nine hours, Ruben Ponce lost that he could have been moving merchandise.
PONCE: It means, I'm making less money, yes, because I can't do as many rounds.
LAH (voice over): National data shows there is a truck driver shortage. But Ponce says the problem is even more basic than that.
PONCE: So, now the port is backed up. Us, were backed up. The truckers were backed up. Everyone's backed up -- and it's just a big problem.
LAH (on camera): So it's like a chain reaction.
PONCE: Exactly, exactly.
LAH (voice over): Delayed trucks means delays at warehouses, like Canton Food Company in Los Angeles.
CHO KWAN, CEO, CANTON FOOD COMPANY: I have about eight containers out in the harbor somewhere from China and Vietnam --
LAH (on camera): Filled with food.
KWAN: Still just waiting.
LAH (voice over): That means for this warehouse, empty shelves with no date to fill them. Basic economics are at play, scarcity drives up prices.
LAH (on camera): So it's almost doubled in price.
KWAN: I would say maybe at least 70 percent.
UNIDENTIFIED MALE: One of the cheese is ready.
LAH (voice over): Prices for ingredients restaurant owner Ricardo Mosqueda has to pay.
RICARDO MOSQUEDA, CO-OWNER, LA TAQUERIA BRAND: All those different products that you have to substitute, you have to change. Now, 30 percent more, 50
percent more, 100 percent more.
LAH (voice over): This La Taqueria Brand location operates in a renovated shipping container. The supplies Mosqueda needs sit out at sea in the same
metal bins. A cruel irony after barely keeping his restaurant open through the pandemic.
MOSQUEDA: We worry as far as -- because you don't know what's going to happen, right? You don't know what's next.
LAH (on camera): How long are these ships going to be floating out here?
BOR: I really can't say how long they're going to be like this. I think we're all going to wait and see how long this shakes out.
QUEST: Kyung La reporting. And you want to know what the position is like at the moment out at Long Beach? Take a look at this map from
marinetraffic.com and we zoom down into Los Angeles to Long Beach. You can see there right in the middle, look at that. All those greens.
If you -- we won't because it'll show you the individual ships. But look at all that green, those reds, those blues, all around the U.S.'s busiest
port, more than 50 ships waiting to come into port.
Let's stay with this question of moving goods around the world and the issues of supply chain. The Chief Executive of Lufthansa says his cargo
division is benefiting from the disruption to global shipping at the moment.
Carsten Spohr told me at the I.A.T.A conference, air cargo revenues obviously have gone up. Now today, Lufthansa announced it had successfully
finished raising new capital. This is replacing the bailout cash that they've replayed to the German government. Carsten Spohr cargo was boosting
the bottom line.
CARSTEN SPOHR, CEO, LUFTHANSA: In Lufthansa Cargo, we are seeing the time of our lives, because we're trying to fix those supply chains for our
company's customers around the world. So that's why the cargo revenues tripled per kilo than the revenues we have per passenger, which is unheard
of currently. So I think that will stay on some time. I think global supply chains are totally out of sync.
Sea shipping is having issues, so I think there's good years ahead for air freight.
QUEST: What are you expecting on business? I mean, I've heard every number from business leisure -- business will be down -- business travel down 15
percent, 10 percent, 30 percent. If you had to guess, where do you feel it is coming in at?
SPOHR: Well, my personal guests over the last month has become more and more optimistic.
SPOHR: I look at minus 10 is my best personal guess. You see, like conferences like this, there is just no replacement of personal
interaction. We all have gotten used to video conferencing, but we all have learned the limits of video conferencing.
So for those markets where we are strong at, Western Europe, U.S., and to and from Europe, I think minus 10 is pretty much the best guess I can do
QUEST: You talk about the -- you're paying back some of the debt that you took on during the pandemic. Now, that's the debt to the German government
and you've done it, it is the right issue. Is the balance sheet now secure?
SPOHR: Well, it is secure enough to now live without the government stabilization funds, which was always our goal and we have said from the
very beginning, we would rather be in debt with the capital markets than be in debt with the taxpayers of our home countries. We have come to that
point now, it makes us proud, because it was not supposed to go that fast.
But the restructuring went quite to the extent and speed we couldn't have imagined. We went from 140,000 people to 110,000 people within less than a
year for a European German company, that's a very fast and that is helping us to indeed fix the balance sheet as well.
QUEST: What's the bit of restructuring of the group that you haven't yet done? What's the bit that still needs to be done?
SPOHR: Well, I think the big question for us is shifting of traffic flows and shifting of market segments. How many aircraft are we operating in our
premium brands -- Swiss and Lufthansa in the future? And how many aircraft are we operating with our second brand, Eurowings? Which of course is a
So that mixture I think will be determined over the course of the next year. It's a dynamic process. That's a major restructuring lever right
QUEST: Finally, I got a press release this morning from Lufthansa telling me about new routes and new sun routes in autumn and things like that.
SPOHR: We will be growing again, indeed. This is almost the end of the summer in Europe. I know there a movie, which took place in -- which we
started in California, well, we see it in Europe now, the summer and late summer holiday season is extended, extended, extended, so we are adjusting
our flight schedule.
At the same time, corporate travel within Europe comes back strongly. So that's giving us a nice solution to our fear what will happen after the
tourist demands of the summer. I'm quite positive now that corporate travel comes back just in time.
QUEST: And you're ready.
SPOHR: We are ready. We have brought 75 percent of our fleet back into operation. We have enough pilots and cabin crews we will bring back to the
operation. We're talking to our partners at the airports, not always easy at traffic control to be ready for the ramp up. But I think the passenger
experience will be a premium one, which is what we stand for.
QUEST: Carsten Spohr. Now, over in the Gulf, Emirates as it is quite happy being an outlier in the post-pandemic era. Emirates, of course has only two
models of plane in its fleet. It's A380 super jumbo that they've gotten well over a hundred, and the Boeing 777 wide body.
Other airlines are downsizing or making use of narrow bodies. Well, Sir Tim Clark says he is not going to follow the crowd. He told me the airline
believes in its business model.
SIR TIM CLARK, PRESIDENT, EMIRATES AIRLINE: The main thing that's keeping us going and keeping the cash coming in is two things, really the yields
that we're getting from the passengers who are traveling, and also cargo. And cargo has been our lifesaver over the last 18 months. So, that's been
very good. That's allowed us to gradually open the network and wait and see what happens.
QUEST: You've brought back the 777s, obviously. I think I've seen you your A380s now moving around, but you're still -- you've still got the problem
of only two aircraft, 777s and A380s.
QUEST: In the post pandemic world, what are you going to do?
CLARK: We will deploy all those aircraft as soon as we can get back the borders restrictions have been restricted, Emirates will fly it's 121 A380s
is and it's six hundred seventy 777s, some of which are freighters.
The business model that drove all of that remains in place regardless what other people think. People will still want to travel. They will still want
to travel over super hubs like Dubai, let's be quite clear about that. I am not one of these people who believes that the day of the super hub or large
aircraft such as the 380 are over.
QUEST: You're alone.
CLARK: We've always been alone. We've been an outlier in this business since we started. But goodness me, I'm not blowing my trumpet, but we've
been pretty successful at what we've done because we've done that.
QUEST: Right. But then what adjustments are you making in a post pandemic world? If it can't be like it was before or maybe it can, but what
adjustments are you making?
CLARK: What do you have to do, Richard, is accept and adapt. Okay, so demand may be as strong, but the way that demand is structured, the
construct of that demand may be different.
People talk about diminished corporate travel, business travel. People talk about the -- that disappearing altogether, or being reduced by vast
percentages, et cetera. I don't share that view.
What has happened in the last 20 to 30 years is that that particular segment has morphed into multiple other segments that we call corporate
travel, but in fact, it's very varied. It has -- it is multifaceted and that is changing. Those are the things that will change, not the absolute
quantum of demand, it is how you react to the changing nature of the structure.
QUEST: Two areas that will annoy you.
CLARK: Go on.
QUEST: Come on, just merge yourselves and Etihad. Two airlines with a major airport that's being built equidistant to each of you. It makes sense to
CLARK: The airport that you're talking about, equidistant to both of us is actually on hold for the time being, okay. So that isn't the case.
At the moment, what Etihad has done -- and you best talk to Tony Douglas about that is that -- they have they have shrunk their organization so that
they are far more fit for purpose with regard to what Abu Dhabi needs as the Emirate, whereas Etihad, I think they have about 60 aircraft or so
that's doing a great job for them.
And on that basis, Tony can project profitability and a good product. It's not the same for Emirates, we are going back to where we were, which is 270
to 280 aircrafts. Working together with Etihad, provided we don't stray across into anti-competition rules, et cetera, et cetera, we can do that
and both have different brands, but essentially serving the country in the UAE in the manner that it wants.
I don't see a problem there. Does that call for a merger? Not necessarily, no. At the moment, it's fine. Both carriers can do their own thing.
QUEST: And the FlyDubai, the deepening relationship with the FlyDubai. I get the feeling, Tim you're doing through the back door what you won't do
through the front, which is creating a smaller ability to have smaller aircraft that will feed and offer feed without actually having another
airline within you.
CLARK: But doesn't that sound like a great idea?
QUEST: And merge -- yes, go on.
CLARK: In the sense that -- to the point you asked me just now about only having two aircraft types, but the working together bolted at the hip with
FlyDubai with a whole range of MAX aircrafts from the 10 to the to the seven and the eight does the job.
So with the tools in the toolbox, from the 380 at the top to the 737 and 800 at the bottom, and the spread of 350 and 787s et cetera et cetera,
right the way up of the capacity segments as we go forward, we have a very, very powerful means of reaching a lot of destinations, some within the
region that we have never been -- have never seen us.
QUEST: So why not just merge with them?
CLARK: We have one shareholder, the government of Dubai owns both of us. So for all intents and purposes, by keeping the brand slightly different and
doing different things for some of the markets that don't require full service airlines such as Emirates, certainly not with the size of the
aircraft we've got, this airplane at the price points that they offer, much better.
QUEST: Sir Tim Clark, and I think that's probably the most blunt and straightforward I've heard Sir Tim on the question of FlyDubai, which
basically he says, as you heard him say there, essentially same shareholder, two airlines but operating perhaps as almost as one.
A new vaccine for an old disease, the World Health Organization moves forward on a malaria vaccine, the vaccine has been decades in the making,
in a moment.
QUEST: Good evening to you. I'm Richard Quest. There's more QUEST MEANS BUSINESS as we talk about the WHO for the first time recommending a malaria
vaccine for children. The CEO of Gavi, which is the vaccine alliance, will be with us in just a moment or three.
Facebook's chief executive is pushing back against the whistleblower claims that he put profits ahead of his safety -- or users' safety. We'll have
more about that after these headlines because this is CNN and, here on this network, the facts always come first.
(BEGIN VIDEO CLIP)
QUEST (voice-over): England's high court has found Dubai's ruler authorized the use of spying software to hack into the phone of his ex-wife
and her lawyers. It said Princess Haya bint al-Hussein's phone was infiltrated using the Pegasus software, licensed to Dubai by an Israeli
company. Sheikh Mohammed bin Rashid al-Maktoum has denied the allegations.
Taiwan's defense minister is warning China will be fully capable of launching an all-out invasion of the island within four years. This
statement follows the mainland flying 150 military planes near Taiwan's airspace over the past week. It says tensions between the two haven't been
this serious for more than 40 years.
Pope Francis said he is ashamed by the Catholic Church's inability to deal with sexual abuse in France. A major investigation recently revealed that
French clergy had abused more than 200,000 children over 70 years. The pope said the church needs to be a safe home for everyone.
(END VIDEO CLIP)
QUEST: The World Health Organization has now endorsed a vaccine that's been decades in the making. GlaxoSmithKline has developed the world's first
vaccine for malaria for young children.
Malaria is an entirely preventable disease and it still kills more than 400,000 people a year. But this vaccine is not straightforward, it's
certainly not like the COVID vaccine. It requires four doses over 18 months and it's only partly effective; 36 percent over four years.
In addition, it could take years to deploy. The WHO is recommending its widespread deployment in sub-Saharan Africa. Dr. Seth Berkley is the chief
executive of Gavi, the vaccine alliance, is with me now.
It is not an easy vaccine to use, this one. But I guess it's a start. And any start is better than none.
DR. SETH BERKLEY, CEO, GAVI: Absolutely. Nice to see you, Richard. And it's four doses, three of which are outside of the normal immunization
But we just are in the process of doing an implementation trial in three countries. That has shown very high acceptance of the vaccine, very good
safety record and very good results. The idea here is that, for every 200 children vaccinated, you can prevent one death.
QUEST: The thing I found fascinating about malaria is it is preventable and, yet, I mean, and I've been to parts of the world where we've seen
impregnated nets, bed nets, things like that, all of which are designed to kill the mosquito. But the vaccine would change all of that.
BERKLEY: Well, the difference is bed nets are fabulous and have good efficacy but right now, it's about 52 percent of households are using them.
BERKLEY: That has stagnated. You can also spray for mosquitoes; 2 percent of households. The thing about vaccines is that it is the most widely
distributed intervention. Over 90 percent of families get a routine vaccine. So the idea is you would add this to the others and, therefore,
get a much better result.
QUEST: Let's update ourselves on where we stand in developing world countries and their vaccination against COVID.
Is there now enough vaccine available for you yet?
BERKLEY: You know, the answer to that is absolutely not. But it's doing much better since the last time we talked.
Today, we're over a third of a billion doses that have been implemented in 144 economies. We hope to do another billion doses by the end of the year.
But there's still terrible inequities. We see about 20 percent coverage in low and lower middle income countries for the first dose versus 80 percent
in high income countries.
So we've purchased 4.5 billion doses but we have to see those doses flow and make sure that manufacturers don't let the timeline slip. In the
meantime, countries have been very generous and donated 1.3 billion doses to us. We need those to come in faster, with long shelf life so we can move
QUEST: And the relationship in terms of the manufacture of vaccines, now I know what's been done in South Africa; a few plants there have been planned
and elsewhere in sub-Saharan Africa.
How quickly can these plants be up and running?
Quick enough to make a change and a difference?
BERKLEY: Well, some of them will do what's called fill-in finishing. That's taking the drug substance and putting it in the vials and finishing
putting the labels on and that can go fairly quickly. Drug substance, making the actual vaccines, is going to take a little bit longer.
But we have to be moving forward because, of course, this disease is going to be with us for a while. And of course, it's not the last. It is
evolutionarily certain there will be more outbreaks.
QUEST: You can plead the Fifth Amendment, as they say in this country. The Nobel Peace Prize is being awarded later this week.
Any news on whether alliance or vaccine organizations, I'll be vague, any news at all that you can share?
BERKLEY: The one thing I know about the Nobel prizes are that they are completely secretive. So I think the world will find out on Friday what's
going to be happening.
QUEST: Well, let me put it like this, sir. If you do get it or the vaccine industry gets it, congratulations in advance. If you don't get it, you
should have done. There, I've covered me bets every which way and backwards. Good to see you as always. Thank you for joining us tonight.
The whistleblower claimed Facebook is failing to address the toxic impact that the social media network has on society. Mark Zuckerberg has responded
and you'll hear about it after the break. QUEST MEANS BUSINESS.
QUEST: Mark Zuckerberg has hit back after claims by a former employee that Facebook harms children, sows division and undermines democracy.
Zuckerberg says, quote, "The argument we deliberately push content that makes people angry for profit is deeply illogical. We make money from ads.
And advertisers consistently tell us they don't want their ads next to harmful or angry content."
Now on Tuesday, Frances Haugen said some of that content can be particularly harmful for young people. One of the platforms that people
flock to most is Instagram, owned by Facebook. Clare Sebastian reports.
FRANCES HAUGEN, FACEBOOK WHISTLEBLOWER: It's just like cigarettes. Teenagers don't have good self-regulation.
CLARE SEBASTIAN, CNN CORRESPONDENT (voice-over): Whistleblower Frances Haugen says she saw how Instagram's algorithm can lead the teenage brain
down a negative spiral.
HAUGEN: They say explicitly, I feel bad when I use Instagram and, yet, I can't stop.
SEBASTIAN (voice-over): Experts say they've been seeing this for years.
DR. PAUL WEIGLE, ADOLESCENT AND CHILD PSYCHIATRIST: You could hit something really exciting or you could connect with someone in a really
positive way that feels great. These things don't happen often.
But they could happen at any moment. And this is not unlike a gambler, who is playing a slot machine, just playing it over and over because you never
know when that next hole is going to hit a jackpot.
SEBASTIAN (voice-over): Studies have shown the part of the brain that controls decision-making and judgment is still developing in teenagers.
UNIDENTIFIED FEMALE: I want to understand the science of teens' emotional life.
SEBASTIAN (voice-over): Doctor and filmmaker Delaney Ruston says that can make it harder for them to stop doing something, even if it is upsetting.
DR. DELANEY RUSTON, PHYSICIAN AND FILMMAKER: They'll have micro emotions that are positive, like get attention, and micro emotions that are
negative. Ooh, I feel jealous of that person. The real concern that we have as a society is that the teen brain is primed to more likely get absorbed
by that negative feeling.
SEBASTIAN: It's not just the type of content that affect the teenage brain; it's the amount of time spent just sitting and scrolling.
WEIGLE: Remember that adolescence is a time when the brain is not finished developing. It is not actually growing, it's actually but it is becoming
SEBASTIAN (voice-over): Dr. Paul Weigle says if social media starts to displace other activities, that could leave a permanent mark.
WEIGLE: If a young person isn't engaging in certain activities sufficiently, whether they be, for example, social activities or developing
musical talent or reading, these parts of the brain are -- tend to wither and are destroyed, so that they can never really be regained.
HAUGEN: They say just take your kid's phone away. And the reality is, those issues are a lot more complicated than that.
SEBASTIAN (voice-over): Quitting social media in a digital world is not always realistic. Experts say there's a middle ground.
WEIGLE: I think that social media companies could very realistically put safeguards in place that encourage people to take breaks from social media.
RUSTON: Teens tell me over and over that they feel better when they have significant bouts of time off social media.
SEBASTIAN (voice-over): Clare Sebastian, CNN, New York.
QUEST: In response to Tuesday's hearings, chief exec Mark Zuckerberg saying Facebook's own research demonstrates there are many positive effects
for teenagers using social media and he said he continues to advocate for updated internet regulations.
QUEST MEANS BUSINESS for you tonight. Volvo received its biggest order yet for electric trucks. The Volvo Trucks president Roger Alm is with me in a
moment. There's he is with the truck -- after the break.
QUEST: Some wild swings in energy markets, as the Northern Hemisphere is getting ready for winter. The price of the U.K. gas contract surged almost
40 percent intraday. Now the price came down after Russia said it could increase exports.
Natural gas futures in the U.K. have skyrocketed, up more than 600 percent in the U.K. Brent crude also at multi-year highs, then sort of drifted off
those as the day moved on; 60 percent gains so far this year.
OPEC and its allies decided to stick with plans to slow the increased supply. The move from fossil fuels to fossil fuel vehicles appear to be
gaining speed. The case in point, Volvo just received its largest order yet for commercial electric trucks.
The Swedish carmaker will make 100 of its FM trucks for the shipping firm DFDS. Volvo wants half the trucks delivered in 2030 to be electric. Roger
Alm is with me, the president of Volvo Trucks.
A hundred trucks is a lot of them. They have a good range of several hundred kilometers and we're really just at the beginning of this
revolution, aren't we?
ROGER ALM, PRESIDENT, VOLVO TRUCKS: Yes, that is very right. As your said before, this is a really breakthrough in the whole transport sector, to
move into fossil-free transport. We have closed this deal with one of the largest transport and logistic shipping companies in northern Europe, 100
units all electric.
We also do believe that this is the largest heavy-duty electric truck deal supplied in the whole world. This is proven what is possible to move to
fossil-free transport in the whole industry. We have the products. We have the knowledge. We can confirm delivery dates.
QUEST: Companies requiring large numbers of trucks, they require an element of reliability, distance and sort of security. Until now, it has
not been available with electric.
ALM: What we are doing, we are selling a complete transport solution to our customers that is rivaling in the electric trucks. We have been
applying them with charging infrastructure that is available.
ALM: We're also making sure that drivers can charge at the same time. Technology is there. We invest in the electric trucks to move forward in a
QUEST: Supply chain issues; everybody is having problems. How bad are yours?
ALM: We have been talking about this one in all our quarterly reports and we will come back to that as well at the quarter closing. We'll display our
report at the end of this month. Then we'll talk about the supply chain situation as well.
QUEST: Well, I understand; I mean, that was a very diplomatic way of telling me that you can't say much because you're in the quiet period
But you can tell me, you can give me a feel for industry at this moment. For example, earlier in our program tonight, we talked about Long Beach,
where there are ships, dozens of ships, waiting to disgorge or take goods further on.
Are you having problems getting your raw materials, your parts in and out?
ALM: I can say that there is high activity levels into the market. The total market of the trucks are increasing globally and the demand is high
for transport need and goods and also in the trucking industry. As I said, we will come back and talk about this more in our quarter 3 report, as I
said before, in the end of this month.
QUEST: If we look at the macroeconomic situation, because I understand people at DFDS buy trucks for the next 15 years.
QUEST: To an extent, they can't worry about inflation in 2021. Sweden has had its difficulties. Sweden has had its economic difficulties.
Are you more confident now?
ALM: Yes, we are very -- we are confident in the situation. We are a global company. We deal the majority of our products are outside Sweden, as
we are selling in the majority of the countries around the world.
But the demand is then high of trucks in the whole of the world. As I said before, there is high activities. There is a lot of goods of transport.
Customers are very busy to operate the trucks.
QUEST: Good to have you with us, sir. We look forward to your next quarterly report. Maybe you'll come back to talk about supply chain issues.
ALM: Thank you.
QUEST: There is a proud tradition of revolutionary new cars being unveiled at the World's Fair. In Dubai Expo 2020, well, they want to keep that
spirit of innovation alive. CNN's Eleni Giokos has more.
UNIDENTIFIED MALE (voice-over): The 1933 Chicago Fair lived up to its billing as a century of progress.
ELENI GIOKOS, CNNMONEY CORRESPONDENT (voice-over): Expos or world fairs have helped revolutionize everything, from transport to commerce. They have
led to lasting inventions, from the mobile phone to live TV and even ketchup.
ROBERT RYDELL, MONTANA STATE UNIVERSITY: Other innovations range from -- pick your favorite car, your automotive technologies, X-ray machines,
Campbell's tomato soup. These are all innovations debuted at World's Fairs.
GIOKOS (voice-over): Today, they're no longer just about revealing the next best thing. They're also being used to drive critical change in the
mindsets of its millions of visitors. And it is in the Opportunity Pavilion, where changing attitudes are set to be explored.
ANOOSHA AL MARZOUQI, DIRECTOR, OPPORTUNITY PAVILION, EXPO 2020: Expo is my happy place. I cannot wait for visitors to come and experience that.
GIOKOS (voice-over): As director of the Opportunity Pavilion, Anoosha has a clear mission, showing the potential of individuals and communities to
shape the future when it comes to things like water, food and energy.
MARZOUQI: These are the basic needs of human beings. To be able to make it more available to people, we found three people in their communities who
have made the change.
GIOKOS (voice-over): Several miles away on the outskirts of Dubai, one of those people, Maryan Alginetti (ph), a farmer turned community activist, is
busy changing the mindset of her fellow growers.
MARYAN ALGINETTI (PH), FARMER AND COMMUNITY ACTIVIST: We grow citrus. We grow all kinds of vegetables we can grow here.
GIOKOS (voice-over): Maryan (ph) says her mission is to get her fellow farmers to embrace organic and sustainable practices.
ALGINETTI (PH): I'll show you now the sample system.
GIOKOS (voice-over): She says she's trained hundreds of farmers and educated school children throughout the United Arab Emirates. Now her story
is among several being highlighted at the Opportunity Pavilion at Expo 2020.
ALGINETTI (PH): These stories are important because it shows us that there are people out there who are making a change. And this change has a huge
impact on the community. Water, water, water.
GIOKOS (voice-over): It's one of those key goals of Expo 2020, trying to get its millions of visitors to become agents of change in their local
communities -- Eleni Giokos, CNN, Expo 2020, Dubai.
QUEST: And a reminder, we'll be in Dubai at Expo in January, when they talk about travel and tourism. But I will be back much sooner; in fact,
after this short break, with a "Profitable Moment."
QUEST: Tonight's Profitable Moment, Why does this political posturing over the debt ceiling matter?
I'll tell you why. We all know they'll have a deal of some shape or form. But we all know also that there is the possibility, albeit very small, they
won't. Even if there is a technical default, as there could be at some stage in the future, on another occasion, the real risk is that happens.
And even though the bills ultimately get paid and everybody is made good, the first time any form of U.S. government debt isn't paid on time, that
will break, if you like, the virginity of not paying debts. And once that has happened, it will become a political football.
Time and again, they will not pay this or not pay that. They will not default, they'll defer, they'll delay, they'll make late. Eventually, a new
game will have started.
How late can we get?
That's the significance of making sure this never happens. Because if it does happen in any small scintilla of a way, believe me, it will be the
start of many little nips at the side of debt default, even though everybody does get paid at the end.
And that's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, I hope it's profitable. The
closing bell is ringing. We were down heavily. Now we're up heavily. It just shows you, hallelujah, the markets have recovered.