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Quest Means Business
Fifth Arrest In French Inquiry Of English Channel Migrant Tragedy; France Toughens Rules Around Masks, Boosters, And COVID Passes; Parliament To Vote Again On Andersson As Swedish Prime Minister; U.K. Faces Shortages Of Wine And Liquor Before Christmas; French Wine Industry Reeling From Cold Harvest Temperatures; China Threatens To Hit Back Over U.S. Trade Blacklist; Microsoft Marks 20 Years Of The Xbox. Aired 3-4p ET
Aired November 25, 2021 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:18]
RICHARD QUEST, CNN BUSINESS ANCHOR: Normally this hour, I'd be saying, an hour to closing bell on Wall Street. There is no trading on Wall Street
today. The U.S. is celebrating the Thanksgiving Holiday.
So instead, let me show you, Europe was busy. All the markets there were higher. They chewed over last night's Fed's Minutes. They liked what they
saw. The rest of the games we've seen in Paris.
The markets and the main events of the day.
Five people smugglers have been arrested after Wednesday's deadly disaster in the English Channel.
Europe's COVID Travel Pass is about to get a big new restriction.
And I'll be talking to the head of Bombardier and the Xbox turns 20. So, I had a go myself. Unfortunately, I was taking on the head and the video game
company itself, who basically told me don't move when you're playing.
We are live in New York today on Thursday. It's November the 25th. I'm Richard Quest, even on Thanksgiving, of course, I mean business.
Good evening. Tonight, five suspected smugglers are under arrest in France, a day after a boat carrying migrant sank in the English Channel, killing at
least 27 people on board. The investigation is continuing as the leaders of France and the U.K. are now blaming each other.
Emmanuel Macron told Boris Johnson to stop politicizing the migrant crisis for domestic political gain. That's according to a readout of their call
last night provided by the French government. President Macron says the two countries have to cooperate to break the network of human traffickers,
bringing migrants from France to the U.K.
The Member of Parliament for Dover, where many of the migrants arrive accused the French authorities of standing by as migrants are loaded onto
boats for the dangerous channel crossing.
Nic Robinson is with us. He joins me from Dover. Now, I need to take this and we need to parse this out in some way. First of all, let's talk about
those who have been arrested and what we know about them at the moment. Do we know much more?
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: We don't. What we understand is that initially, four people were arrested, and then a fifth
person was arrested, all believed to be connected to that migrant vessel that sank and killing all the migrants. So, it's not clear if that is
everyone that was involved in that operation, or if there are others out there. It is not known what sort of level they were operating at.
But the French police, you know, say that these five are just a several of dozens upon dozens that are getting packed up. It seems however, what we
can take away from that, that sort of key bosses in these groups, if you will, the real big players and operators of these international criminal
networks are not being picked up so far -- Richard.
QUEST: Nic, this back and forth between the two leaders, and Macron and Johnson. What do you make of it? I mean, yesterday Macron says he doesn't
want the English Channel to become a cemetery. Johnson has avoided the question about granting asylum before people arrive in the U.K. allowing
them to apply outside the country. There's blame on both sides here.
ROBERTSON: There is. There are deep tensions between both sides, not just about Brexit, but the fact that post Brexit, in the fishing rights in the
Channel and other places can't be resolved between the U.K. and France to everyone's satisfaction.
The fact that the U.K. replaced France in a deal to make submarines for Australia again has raised tensions. This is another ongoing -- this is
another ongoing tension. The British Home Secretary today, Priti Patel, said it was dreadfully shocking, but not a surprise, and the reality here
has been for many people who watch the situation of all these flimsy crafts crossing the Channel that an accident like this was almost bound to happen
at some point.
(BEGIN VIDEOTAPE)
ROBERTSON (voice over): A tragedy, yet predictable, so many dead, so quickly. The rescue in the frigid waters rapidly becoming a recovery
mission.
CHARLES DEVOS, VOLUNTEER IN RESCUE OPERATIONS (through translator): We were on patrol, so we recovered six bodies adrift. The rest was
unfortunately like fighting a losing battle.
ROBERTSON (voice over): In the immediate aftermath, finger pointing across the channel. France blaming the U.K. for not helping them enough.
[15:05:02]
GERALD DARMANIN, FRENCH INTERIOR MINISTER (through translator): The response should also come from Great Britain. The resources that Britain
gives to France which remain minimal compared to the resources that we put in.
BORIS JOHNSON, BRITISH PRIME MINISTER: Our offer is to increase support, but also to work together with our partners on the beaches concern, on the
landing -- the launching grants for these boats, and that's something I hope that will be acceptable now, in view of what has happened missing.
ROBERTSON (voice over): At home, Johnson's conservatives taking heat for failing to deliver on promises to curb illegal migration.
PRITI PATEL, BRITISH HOME SECRETARY: What's happened yesterday was a dreadful shock. It was not a surprise.
ROBERTSON (voice over): The local lawmaker where many migrants come ashore in the U.K., adamant, this isn't her party's fault.
ROBERTSON (on camera): Why has it taken the government so long to reach this point of realizing that its policy hasn't worked?
NATALIE ELPHICKE, BRITISH MEMBER OF PARLIAMENT FOR DOVER: The situation that we have is that we have criminal activity where the French are
standing by where people are getting into boats and they're not stopping them.
ROBERTSON (voice over): The French say, they are doing all they can.
ROBERTSON (on camera): Reality is, the migrant issue is nothing new. I was here in Dover, the closest port to France 21 years ago when 58 Chinese
migrants were found dead in the back of a truck in the port.
What has changed since then with tighter port controls is the way that migrants are coming, risking their lives in flimsy dinghies across a
dangerous sea.
ROBERTSON (voice over): In recent weeks, migrant crossings to the U.K. have spiked. Around 1,000 migrants crossed in a single day earlier this
month. Unusual for the time of year. Unclear why, possibly calmer seas.
More than 25,000 people have crossed the channel in small boats so far this year, three times the total in 2020. France and the UK saying they've
prevented some 19,000 crossings already this year.
How to combat the criminal gangs behind the smuggling, bedeviling authorities both sides of the channel.
This tragedy, despite cross channel bitterness, perhaps galvanizing change.
EMMANUEL MACRON, FRENCH PRESIDENT (through translator): We are holding this border for the U.K.
ROBERTSON (voice over): Macron and Johnson vowing to work together to break the smuggling networks beyond both their borders.
MACRON (through translator): We need to work as partners, and we need to reinforce the cooperation with Belgium, the Netherlands, Germany, but also
Great Britain.
ROBERTSON (voice over): A way from the high level wrangling. The human face of the tragedy emerging. Most of the 27 victims were Iraqi according to the
Calais port director. Among the dead, a pregnant woman, according to volunteers who helped in the rescue operation.
Not the first time, and likely not the last. Migrants desperate to reach the U.K. will be mourned.
(END VIDEOTAPE)
ROBERTSON (on camera): So Emmanuel Macron has called the leaders or all of these government representatives of his own country, France, and Belgium,
and the Netherlands, and Germany, and the U.K. to a meeting in France at Calais to discuss this issue. But so far, the evidence says at least as far
as Britain and France are concerned, they are still talking past each other -- Richard.
QUEST: That is indeed the problem. Nic Robertson, thank you.
And of course as we heard from Nic, the crossings have surged as other means, rail, road, and lorries and the like have become more difficult.
Networks of human traffickers charge thousands of dollars to smuggle migrants to the U.K., and so far, 25,000 migrants have crossed the channel
by boat this year.
From the Middle East and Africa, Iran and Iraq are the top two countries of origin. The President of France says migrants flee misery in their
countries, and they have become victims of smugglers.
(BEGIN VIDEO CLIP)
MACRON (through translator): These women and these men fled their country and wanted to get to the British Coast. They fled their country, they fled
their families because they suffered from misery, political oppression for some, and absence of freedom, and they were the victims of the worst system
which is that of the smugglers and traffickers of human beings, because it is that which operates on the European soil today.
(END VIDEO CLIP)
QUEST: Franck Dhersin is the Vice President for Transport in the Hauts-de- France region and joins me now.
Sir, the awfulness, the terrible situation that we face now. What is the answer in your view?
Hello, sir? Can you hear me?
[15:10:04]
FRANCK DHERSIN, VICE PRESIDENT FOR TRANSPORT IN THE HAUTS-DE-FRANCE REGION: Yes, I can hear you. Yes.
QUEST: Good. What do you think is the answer? What needs to happen next?
DHERSIN: Oh, you know, I think that the situation will be harder and harder because you know what's happened in Ethiopia, in Somali, in
Afghanistan. So we know that many, many, many migrants arrived in Europe, arrived in France and everybody come to Calais, Dieppe and to the coast of
North France. So I'm very sad about that. I'm not very happy.
QUEST: Right. But is it -- is it possible for the police, for the French Police to do more patrols? Is the coastline too long to effectively prevent
people from leaving?
DHERSIN: Yes, it is 100 kilometers. So, it's very long. And you have many dunes. Many parts where it's very difficult for patrol to go. So the French
Police work 24 hours per day, so it's impossible to make more.
I am the Mayor Dunkirk, and you know, when I call the police for my population, they say we can't go to your city because all the bodies are on
the beach to try to capture immigrants.
QUEST: Right now, many in the last few days, on both sides of the water both in Britain and in France, local people have been basically saying that
more help must be done. The people you represent must feel very strongly at this tragedy.
DHERSIN: Oh, yes, yes. I am also like that, you know, we know that's happened, you know, because too many people try to go across the channel in
winter. So, the weather is not good, and it's very cold.
So when you go in the water, you die in 15 minutes. So it's impossible. That's continued.
QUEST: Sir, I'm grateful that you've taken time tonight. A terrible situation to work. We're glad to have heard from you with your perspective.
Thank you.
It's QUEST MEANS BUSINESS tonight. Ahead, COVID-19 cases hit in Europe with a vengeance. Further restrictions are being introduced and that could cast
a shadow over the travel industry, in a moment.
(COMMERCIAL BREAK)
[15:15:41]
QUEST: The number of COVID-19 cases is rising sharply, and in parts of Europe, records are being broken. The continent again, the epicenter. It is
battling a new wave of infections and governments are scrambling with a whole variety and raft of new restrictions.
The E.U. has proposed putting an expiration date on its COVID Pass used for travel. CNN's Phil Black reporting on the COVID surge hitting Europe.
(BEGIN VIDEOTAPE)
PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Slovakia is the second European country after Austria to lock down non-essential activity in a
desperate bid to keep people apart and slow down transmission. The neighboring Czech Republic is also increasing restrictions on social
behavior as part of its newly declared state of emergency, while France is hoping it can avoid similar moves by strengthening its existing Health Pass
system. That's the document that French people need in order to live and mix publicly by showing that they have either immunity or have recently
recorded a negative test.
For the vaccinated, the Pass must now also include a booster dose within two months of becoming eligible. And for people who choose to remain
unvaccinated, they must now record a negative test every 24 hours.
OLIVIER VERAN, FRENCH HEALTH MINISTER (through translator): We are making the choice to reconcile freedoms with responsibility. And today, we think
that we can still overcome this wave without resorting to the most restrictive measures if we fully use all the cards in our hand.
BLACK (voice over): Meanwhile, the European Union is recommending its vaccination certificates should expire in nine months after people receive
their initial doses. The certificates allow people to travel around E.U. countries.
DIDIER REYNDERS, E.U. COMMISSIONER FOR JUSTICE (through translator): Member States should accept vaccination certificates not exceeding nine
months since the first round of vaccination. Beyond nine months, the vaccination certificate will no longer be recognized in the absence of a
booster dose.
BLACK (voice over): Germany has set a grim milestone even as it repeatedly sets new records for daily case numbers, 100,000 people have now been
killed in Germany by the pandemic.
ANGELA MERKEL, GERMAN CHANCELLOR (through translator): It is of course a very sad day where we have to record 100,000 people who have died of
coronavirus. And sadly, at the moment, we are seeing 300 more deaths a day being added to this figure.
BLACK (on camera): Europe's governments are reluctant to increase control over people's lives once again. But the Director of the European Center for
Disease Prevention and Control says restrictions will be necessary this winter, at least until a much greater proportion of the population is
protected by vaccines.
Phil Black, CNN, London.
(END VIDEOTAPE)
QUEST: The surge on COVID is causing anxiety again in the travel industry. Airlines are bracing for the threat calling for better coordination when it
comes to the new rules in order to avoid further restrictions. As a result, airline stocks are down sharply. The selloff has accelerated in recent
weeks as coronavirus explode in Europe and on the rise in the U.S.
However, on the other side of that coin, it is pushing up the demand for private travel, so much so that the private jet, Bombardier says, it can't
keep up with demand, an issue made worse, of course, by the supply chain crunch.
The Chief Executive of Bombardier, Eric Martel is with me now from Montreal. Sir, good to have you.
I mean, one hesitates to say, you know, a good aspect or a fortunate aspects, but the reality is your planes, your new planes, pardon the pun --
flying out the door.
ERIC MARTEL, CHIEF EXECUTIVE, BOMBARDIER: So Richard, first of all, let me wish you a Happy Thanksgiving, but also to the thousands of employees we
have in the United States and also thousands of customer.
But you are absolutely right. The pandemic for us was an accelerator actually of more people adopting you know, private aviation as a way to
transport themselves. It's been -- you know, this was not expected probably a year and a half ago, but as we were evolving in the pandemic, I think
people wanted to move around, especially in the U.S. at first, and now in Europe, we can see it more and more.
Actually, we are flying today much more hours than we were flying pre- pandemic in both continents, U.S. and Europe, so which is very interesting for us.
There is no airplane pre-owned for sale right now which puts a lot of pressure on us because people want to buy either a new jet or use fleet
operator to travel. So it was unexpected, but clearly, you know, we're coping with that demand right now despite some challenges, as you said
earlier in the supply chain for all of us.
[15:20:26]
QUEST: Now, that's interesting. Let's just talk about supply chain because your supply chain is extremely specific, long-term contract, it's not like
you're simply trying to buy three washing machines. You know, you have long-term contracts for very specific items. But of course, your
subcontractors have their own supply issues to be able to make the stuff for you.
So, what's your experience been?
MARTEL: Yes, our experience so far at Bombardier has been fairly positive. We have a few challenges, but we were extremely proactive, probably about a
year ago in deploying more people into the supply chain, not just at the tier one level supplier, but also the supplier of our supplier, if I may
say it this way, and realize that we are all sharing a unique supply chain.
You know, Boeing, Airbus, our competitor and ourselves, we pretty much tap into the same supplier base, and at the commercial aircraft side, things
have slowed down a little bit creating capacity, more for the private jet.
So of course, we are monitoring very closely. We are deploying actually at Bombardier more people right now around the world to make sure that the
supply chain is going to stay as it is right now.
QUEST: The Bombardier that you and I are talking about is worlds apart from the Bombardier that was when I visited there, back in the 1980s and
1990s, and I'm wondering, don't you regret not having the diversity of product? I mean, to a certain extent, you are now a one horse company in a
sense, business jets.
MARTEL: But for all kinds of good and bad reason, maybe you know, we are the company we are today. But we are very fortunate and very pleased with
where we are standing right now. As you just said, we are strictly focused on private aviation today.
We have three business units. You know, our Challenger product are famously known around the world. We have 2,000 of them flying. We have a 1000
global. We have the Learjet brand 5000 airplane flying. This is a solid business for us. It's doing extremely well right now and we are pleased,
our financial performance is night and days before between what it was a year or two years ago. So, we are feeling pretty good about where we are
now.
QUEST: And as you look forward, I know you don't have a particular plan on the cards at the moment for new aircraft, but where do you stand on new
power plants? Is it going to be electric? Is it going to be hydrogen?
Airbus is just about betting the ranch on hydrogen in some shape or form. But for the private, for the GA industry, where will it be?
MARTEL: It's a pretty good question. I have to say today the research and development budget of Bombardier, we are spending 90 percent of our money
right now to develop new technology that will reduce emission of our future product, and even, actually even the current product.
So we are very engaged to making sure that you know we will have a contribution to the challenge we are all facing here. But you know, we are
looking at those technology today. We are also -- we just refreshed pretty much all our platform. We are thinking also about future product as we
always do, monitoring what our competitors are doing, but also what the market demand is.
But clearly, there will be a time where we're going to be launching a new product, and I can say today that that product will definitely offer new
feature, new technology in terms of more electrical, but clearly will want an airplane that will reduce the emission.
QUEST: And finally, if you look at the breakdown of your purchases, how would you break it down? I am looking at the fleet of the aircraft that
you've got at the moment? You know, they're all extremely expensive. So that's -- not expensive, but you know what I mean, they are beyond me, but
is most of it to corporations for part of corporate fleets, or for the net jets, flex jets of this world who by and large numbers are for fractional
ownership or leasing?
MARTEL: Yes, it's a little bit of everything right now. But clearly we've seen, you know, there's individuals that are buying our airplane,
corporation or buying our airplane. But I would say the major increase in demand over the last, I would say six months, probably even nine months now
has been coming from the fleet operator.
A lot of people don't want to have their own airplane. They just want to lease ours from, you know, a fleet operator and these fleet operators today
if you talk to them, they'll tell you that they have 40 to 45 percent more people on their customer list than had pre-COVID.
And Bombardier is uniquely positioned right now to provide the airplane that they need, so clearly some part of the demand comes from there. We've
seen also some pickup in terms of personal airplane. So, a lot of people are looking for new airplane for themselves.
[15:25:18]
QUEST: I know. I'm just sitting, I just can't decide between the global 5500 or the 8000. And you have to give me a bit longer before I put the
deposit down on that, and then --
MARTEL: It's only $20 million dollar a part. So, I'll let you figure it out.
QUEST: You take a credit card? Thank you, sir. Grateful to have you. Sir, thank you very much.
MARTEL: Thanks, Richard, for your time today.
QUEST: Only $20 million, what's that between friends?
Sweden, now the first female PM might happen after all. Parliament is set to vote on a second day on Magdalena Andersson on Monday. The lawmakers
originally appointed her to a historic term. Hours later, before she took office, she had to resign. A partner coalition quit over a budget bill,
technicalities meant she really couldn't go forward.
She now hopes, a former minority single party government made up of her Social Democrats.
Anna Stewart is in London with more.
Now, I mean, why -- she is going to go it alone in a sense with a minority government. But the weakness of a minority government was really what
prevented her from going alone the last time. What changed?
ANNA STEWART, CNN REPORTER: Yes, and also, it's what really brought down Stefan Lofven, her predecessor, if you think about it. This is a party that
has struggled frankly, with a minority coalition even before this point, and some sort of confidence and supply agreement with some other parties
that really ended up backfiring on the party.
Stefan Lofven had that confidence vote earlier in the year. This is why all of this happened.
Now, the Green Party though, Richard, left that coalition based on the fact that rather shockingly, when it came to a budget vote after she was voted
in and she was only voted in by one vote, but the budget vote that followed, they didn't vote for the coalition's budget. They voted for a
budget from the opposition. Three right-wing parties, including the anti- immigration party, the Sweden Democrats and the Greens just couldn't stomach it.
It actually included things like increasing emissions through the say, lowering tax on petrol and diesel and butchering the environmental budget.
And here's the interesting point. Yes, she is going to go it alone, and she'll probably get the vote because nothing has really changed in terms of
who will vote for her and he will abstain. But she will be stuck with that budget as well.
QUEST: Right. But Anna, is the feeling that actually all the parties want her? I mean, is there somebody else that they would prefer? They just can't
manage it, or are they stuck?
STEWART: It is quite an extraordinary week, so a long time in politics is that British saying. I think it was Harold Wilson, the Prime Minister. Just
a few hours is a very long time in politics in Sweden, it turns out.
Listen, there is absolutely no hope of forming any kind of majority coalition at all, and it does appear that she has the confidence of just
about over half of that House, and that's all that she needs. There isn't really another viable option at this stage.
However, let's not forget that the last government actually took four months of negotiations. So, it's not easy.
This vote is on Monday. But frankly, the last 24 hours is just going to show how much can change, but she is widely expected to be voted in.
QUEST: A week is a long time in politics. You're right. It was, Harold Wilson, and it was the 1960s. And no, I don't remember him saying it.
Thank you, Anna Stewart in London. Thank you.
The British government insists there will not be an alcohol shortage in the U.K. this Christmas. Industry groups are warning it could become a reality.
The Chief Executive of Carlsberg after the break.
QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
[15:31:50]
QUEST: A very good day to you. I'm Richard Quest. A lot more QUEST MEANS BUSINESS. As we continue, we'll be in the vineyards of France as wine
makers are trying to recover from a devastating freeze last year.
And ready player two. That is me. I'll be going head-to-head with one of the most famous gamers in video gaming. It's the Xbox CEO Phil Spencer. See
who comes off worse. No prizes for guessing.
We'll do all of that after I've updated you with the headlines because this is CNN. And on this network, the news always comes first.
Iran's chief negotiator says nuclear talks will fail if the U.S. doesn't agree to certain conditions. Ali Baghreri-Kani told "The Independent" there
couldn't be progress unless the U.S. agrees to scrap its sanctions and guarantee a future administration won't back out of the agreement like the
last one did. International negotiations are scheduled to resume on Monday in Vienna.
The United Nations says at least 43 people have been killed in intercommunal violence in Sudan's West Darfur over the past week. Officials
say the conflict broke out between Arab nomads and farmers from the Jebel Moon region. Nearly 50 villages have been burned and looted and thousands
of people have fled from their homes.
A new coronavirus variant has been detected in South Africa and Botswana, and it has health officials concerned. One researcher says the variant has
an unusually high number of mutations. And so far it's not clear if it could possibly evade current vaccines.
Britain may run short on wines and spirits this Christmas because there aren't enough drivers to make the necessary deliveries. It's a warning from
one industry group, which says it's already seeing major delays and rising costs. It's calling for the British government to relax visa rules to get
more foreign drivers. The government has told CNN it was not expecting a shortage this Christmas.
(INAUDIBLE) is the chief executive of Carlsberg. He joins me now from one of my favorite cities in the world, Copenhagen.
Lovely to have you, sir. And are you expecting -- never mind just Britain, but overall, as we look at the difficulties with new lockdowns along with
supply chain issues, are you expecting shortages?
CEES 'T HART, CEO, CARLSBERG: Good afternoon, Richard. Thank you for being on your program. No, we don't expect shortages. Obviously it's a very
volatile environment at this moment of time. The combination of shortages here and there. But also of course the outbreak of corona. Again, you could
argue in some countries in Europe, but still we are looking forward to Christmas. And we'll be able to deliver to bars and the shops as far as
they are open by then of course.
[15:35:04]
QUEST: And are you expecting this Christmas -- I suppose it's a bit of a silly question since it couldn't really be much worse than last Christmas
when everything was closed, but you know what I mean. Are you expecting this will be appreciably better?
'T HART: Yes, we think so. And we see that there are already in this quarter, this quarter last year we were closed, the rest of European
countries with regards to shops and what we called entrees. So the bars and the restaurants, they're now open. We index that 90 percent versus last
year. So that's good. But as we said, the science this amount of time of again measures that could lead to closure of shops and bars and restaurants
before Christmas could, again, be the case. However, so far so good for us.
QUEST: If we just take your home capital of Copenhagen, where I was for World of Wonder just a couple of months ago, one was very impressed. I
mean, you'd even got rid of the apple. You know, there was testing just around every corner, some people being tested every day on the way to work.
And even with a very high level of vaccination, Denmark has not been immune to rising numbers and higher and more restrictions. What do you think needs
to happen?
'T HART: Well, more vaccinations. I think that's what it comes back to, vaccinations and better behavior. However, I am myself Dutch. I live here
in Copenhagen, and I can tell you that in Copenhagen, the life is very different than from my home city. So that is fact, the days seem to have
done the right things and have still the virus (INAUDIBLE).
QUEST: Back to your company and the breakdown of the product. Now, I guess you make the majority of the money out of home. I mean, you know, in bars
and restaurants and the like. And it can't necessarily be compensated for off sales, or maybe not. Do you find -- do you think you have seen a
permanent systemic shift in your consumers' habits?
'T HART: No. And I think that is a bit too early to say. I must say the off-tray, the shops and the retail shops are, for us, of more importance
than the entrees. So it's more or less globally 75 percent retail and 25 percent entree. But you will see especially after or during the summer and
after summer that our consumers want to go back to the bars and the restaurants. They want to feel free.
So we show a very good development of that part of our businesses again. And therefore it's sad, especially of course for the people themselves, for
also our customers, that they now have new regulations.
QUEST: It is possible, do you think, for more consolidation in an industry that has had so much consolidation to where regulators are concerned, which
is a very posh way of saying, are you looking at doing any further deals?
'T HART: Well, we were not evolved in the bigger consolidation. It was between 2010 and 2015, you could say. At that time there were lots of
opportunities but we didn't have the cash. Now we have the cash but there are less opportunities. But we are interested in it.
QUEST: I mean, ah, that's very tantalizing, sir. That's very tantalizing. Are you going to tell me any more?
'T HART: No, no. I'm afraid you wouldn't expect me to, I guess.
QUEST: No, but I travel in hope more than expectation. Good to see you, sir. Very grateful that you've joined us tonight from Copenhagen.
Let's stay with booze. This time wine makers in France, where it's not only driver shortages this winter posing problems, it's cold temperatures from
last spring. Now the grape harvest this year has been the victim of wild weather and the wine industry is paying the price.
CNN's Melissa Bell, who can smell a good burgundy at a thousand yards, has been visiting to find out more.
(BEGIN VIDEOTAPE)
MELISSA BELL, CNN CORRESPONDENT (voice-over): At around $900,000, it was a record, a barrel of Corton Renardes Grand Cru sold for charity and a break
from the glum of a difficult year in Burgundy. So difficult that France declared an agricultural disaster.
The hauntingly beautiful candlelit vineyards this spring a symbol for wine makers of catastrophe, a desperate attempt to save some of the most
precious burgeoning vines in the world from some of the worst frost Burgundy has seen in decades.
(On-camera): But those candles could only do so much. In the end, those freezing nights of April led to this.
[15:40:01]
Here in the cellars of the Hospices de Beaune normally the barrels are piled two layers high. This year there are only 350 that will be up for
auction, half the usual amount.
(Voice-over): The annual wine auction at the Medieval Hospices de Beaune also acts as a bellwether for what 2021 Burgundy wines might fetch. And
this year, the bidding was fierce.
Alberic Bichot is one of the region's biggest wine producers. He says the record frost cost him 70 percent of his white wines and 40 percent of his
red.
(On-camera): So you've lost in quantity but what we think is that the prices will go up. Will they compensate for what's been lost?
ALBERIC BICHOT, PRESIDENT, FEDERATION OF THE BURGUNDY WINE HOUSES: It will not compensate for sure. Totally for Burgundy, it's almost one billion euro
have lost within three nights. So it's kind of drama for all of us.
BELL (voice-over): Pommard, Meursanges, (INAUDIBLE), villages whose names resonate throughout the world, but from which there will be far less wine
in a couple of years when the 2021 harvest is ready to be drunk. Meanwhile, Alberic Bichot opens a bottle of his 2013 Beaune Domaine. As for the 2021
harvest, he explains that a small one can also have advantages.
BICHOT: We have the high concentration of the juice, both for chardonnay and pinot noir so we are still, still early to know. But what we are
testing for the moment makes us very optimistic. Cheers.
BELL: Melissa Bell, CNN, Burgundy.
(END VIDEOTAPE)
QUEST: And we never saw Melissa Bell again after she had a few more of those glasses. That was the end of that.
Player One is one of the most powerful video game executives on their planet. Player Two, comme moi. You can see how this is going to go. No
prizes for guessing who came out on top. It was painful, it's horrible, it really is. No, no, this is --
(COMMERCIAL BREAK)
[15:45:04]
QUEST: And it's "Call to Earth," where the world's largest starfish, the sunflower sea star, has been decimated by a mysterious plague, which has
caused populations to climb by 95 percent. Now it's wreaking havoc on delicate ecosystems from Alaska to New Mexico. And a new breeding program
led by Jason Hodin at the University of Washington, is trying to bring them back.
(BEGIN VIDEO CLIP)
JASON HODIN, RESEARCH SCIENTIST, UNIVERSITY OF WASHINGTON: A lot of people, when they think of top predators in the ocean, they might think of
something like a shark. And that's exactly what you should be thinking about when you think about the sunflower star. It's the largest sea star in
the world, so it eats all kinds of organisms on the sea floor, from shell fish to sea urchins.
Leaving their little tiny feet underneath to glide across the sea floor and then strike fear into organisms that they encounter. So when they eat, they
actually swallow the entire prey whole. And it sort of seems counterintuitive to say that a predator helps to keep more species around,
but that's actually what happens. And so when the top predators are present, you have a much more diverse and high-functioning ecosystem.
My name is Jason Hodin, and I'm a research scientist at Friday Harbor Laboratories of the University of Washington. The sunflower star existed
along a very, very wide stretch of the coastline all the way from Alaska down to northern Mexico. Starting at about 2003, there was a syndrome that
started to appear all up and down the West Coast of North America where sea stars of all varieties started to show this wasting syndrome, which is this
horrible effect that causes the sea stars to essentially melt.
Sunflower stars were really, really hard hit, and they were down in this region to probably 5 percent of their historical numbers. And in some areas
in the south, like off of California, we haven't seen sunflower stars for years.
When a predator that's a key member of an ecosystem, like sunflower stars are, disappears, you know, there are really, really broad cascading
effects. And that's what we're actually seeing in places like California where kelp forests are declining and that's -- that happened right around
the same time as the sea stars started to disappear.
Kelp is just so fundamental to the health and wellbeing of the ocean. It's a habitat for an incredible number of organisms. It removes carbon from the
atmosphere. And what we've seen is essentially a shift in the habitat from this diverse, highly-functioning ecosystem with many different kinds of
species, and now we see mostly barren habitat with sea urchins and sea urchins eat kelp. And so right now the populations are sort of out of
balance. And we think that one of the contributing factors for that is the loss of one of their major predators, the sunflower star.
We feed them exactly once every two days.
So in 2019 I was first contacted by the Nature Conservancy in California because they were interested in whether it would be possible to breed
sunflower stars through their life cycle. We have a new generation of sunflower stars juveniles growing in the lab right now. Then the next
school after that is to see whether or not sea stars at a year old, whether they can survive out in the wild.
What we really want to do is in addition to trying to restore the populations that are there actively, we also want to maintain the health of
the ecosystems where they exist now. And, you know, that extends to all manner of things that all of us can do to protect our local waters and our
ecosystems. They're all connected, and they're connected to the health of the sunflower star. And they're connected to the health of our ocean
ecosystems and to our own health.
You know, we're learning something about an endangered species here and information that we hope will inform upon our ability to be able to
preserve this species and others like it in the wild.
(END OF VIDEO CLIP)
QUEST: Gosh, that's exciting. Let us know what you're doing to answer the call. The hash tag is calltoearth. And this is "Call to Earth."
(COMMERCIAL BREAK)
[15:52:06]
QUEST: Beijing is threatening to hit back after the U.S. added a dozen Chinese companies to its trade list citing national security concerns.
Eight of the banned companies are tech firms whose work according to the U.S. support the Chinese military.
Steven Jiang has this report from Beijing.
(BEGIN VIDEOTAPE)
STEVEN JIANG, CNN BEIJING BUREAU CHIEF: Just a little over a week after that much touted virtual summit between President Biden and his Chinese
counterpart Xi Jinping, the two governments seem to be at it again when it comes to their trade disputes.
The Chinese Commerce Ministry on Thursday said it's lodging strong protests with the U.S. government over its decision to blacklist a dozen Chinese
companies, calling the decision unsubstantiated and arbitrary. The Foreign Ministry here going a step further saying the U.S. government is again
abusing its power in the concept of national security, warning of unspecified countermeasures to, quote-unquote, "safeguard the legitimate
rights and interests of Chinese companies."
This kind of language almost a deja vu od what we used to hear regularly in the height of U.S.-China trade war during the Trump presidency. Now what's
at issue here is again the U.S. government accusing Chinese companies of using emerging U.S. technologies to help the Chinese military in the field
of quantum computing, especially when it comes to counter stealth and antisubmarine applications.
Those capabilities increasingly important and sensitive as tensions remain high or even growing between the two governments in the fields of
geopolitical and strategic issues, especially regarding Taiwan. But in the eyes of the Beijing leadership here, these latest U.S. sanctions again
reinforcing this notion that the importance and urgency of achieving so- called self-reliance when it comes to key technologies, as President Xi Jinping himself has repeatedly said in speeches and meetings during recent
months.
Steven Jiang, CNN, Beijing.
(END VIDEOTAPE)
QUEST: The head of Xbox is Phil Spencer, and he admits it's quite a bit of work managing supply chains right now, which is why it's been almost
impossible to get ahold of one of the new Series X consoles recently.
It's been a dominant force in the world of video games since Xbox debuted 20 years ago this month. Microsoft is marking that anniversary all through
the month with giveaways and a virtual museum.
Now you'll forgive my embarrassment. Not everyone is quite as familiar with Xbox history, myself included. When I spoke to Phil Spencer about the last
20 years, he wanted to challenge me to a game.
(BEGIN VIDEOTAPE)
PHIL SPENCER, HEAD OF XBOX, MICROSOFT: Race has started.
QUEST: What?
SPENCER: Race has started.
QUEST: When? That's not fair.
(Voice-over): I think the last video game I played with any degree of fervor was Pac-Man, and that was many years ago. I've barely picked up a
controller, but Phil Spencer's a video game expert.
[15:55:05]
(On-camera): Oh, this is, this is not fair. This is absolutely not fair. How many times have you played this?
(Voice-over): He's worked at Microsoft since the company's start in gaming 20 years ago. At the time people were skeptical Xbox could compete in an
industry dominated by Sony and Nintendo. Now with games like Halo, the console brings in billions of dollars every year for Microsoft.
SPENCER: Three billion people play video games on the planet. Most of those people are playing on devices they already own, that they might use for
other phone calls, tablets, whatever. So, at Microsoft we're putting the player at the center. We're allowing somebody to play all the games,
connect to all the community they want to connect to, regardless of what device they want to play on.
We're using the power of the Cloud to deliver Xbox games that can run on consoles but also run on the Cloud and come to players anywhere. And
that's, I think, for us, our long-term vision is allowing anybody to play. When everybody plays, we all win.
QUEST (on-camera): All right, come on. I'm on your tail. Oh, no, backwards. What the (EXPLETIVE DELETED) did I just push?
SPENCER: I have faith in you. You're going to catch up.
QUEST (voice-over): This is call virtual humiliation. How long did they take to create these things?
SPENCER: Being triple A games, three, four-year development cycles. Sometimes longer. Hundreds of people working on them, budgets often in
excess of $100 million. I mean, they are the size of a Hollywood production. And from a people standpoint, they can be larger because you
have -- it's this unique intersection of technology, art, game design all coming together. And the viewer, if you think about it in the lens of like
video or something, has agency in what happens on screen. So we can't script everything.
QUEST (on-camera): Did Xbox make Microsoft just a little bit cool?
SPENCER: That's a hard one. That's in the lens of our customers. I will say from a team standpoint I think that the team inside of Xbox that works
inside of Microsoft has a unique voice and a unique perspective inside the company.
QUEST: You are being so charitable. When I think of that Redmond compass and I think of all the people on Windows and all the other things, I think
of the Xbox team, you must be like the cool kids at the candy store.
SPENCER: Well, it's a really fun place to work, and I'm very proud of the team. It's our 20th anniversary of Xbox, which is crazy to think about.
QUEST: Yes.
SPENCER: But, yes, if we can bring a little bit of cool into Microsoft, I don't think that's a bad thing.
QUEST: There we go. Here we go.
SPENCER: There we go.
QUEST: Here we go. Speeding up now. All over the shouting now.
(Voice-over): In a company known for workplace software, Xbox brings high- flying graphics and a bit of dust, too.
SPENCER: I'm going to make this jump.
QUEST: Richard Quest, CNN New York.
(END VIDEOTAPE)
QUEST: And you'll never know what happened after that.
It's an extended edition of QMB tonight. The second hour coming up. We'll be live in Calais with the latest on the migrant tragedy.
(COMMERCIAL BREAK)
END
