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Quest Means Business
U.K. Celebrates 70-Year Reign Of Queen Elizabeth; JPMorgan CEO Warns Of Economic Hurricane; OPEC Agrees To Raise Oil Output By 648K Barrels A Day; Stoltenberg: I Believe War Will End At Negotiating Table; "Top Gun: Maverick" Success Sparks Summer Hope For Cinemas; Popcorn Shortage Could Spoil Movie Theater Profits; Elvis-Themed Chapels In A hunk Of Legal Trouble. Aired 3-4p ET
Aired June 02, 2022 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:17]
RICHARD QUEST, CNN BUSINESS ANCHOR: There is an hour to go of trading on Wall Street, and there is jubilation.
Look at that. We start the day, lower; lunchtime, it's up we go and we're off the tops of the day, but certainly the jubilation as the jubilee
celebrations taking place here in London where we are tonight.
And look at the triple stack and you'll see that all three are really positive, the Dow, the S&P, and the best gains two percent on the NASDAQ.
The markets as they are trading and the main events to bring to your attention.
OPEC has agreed to accelerate oil production, the war in Ukraine is choking the global supply
JPMorgan CEO Jamie Dimon tells investors batten down the hatches, an economic hurricanes on the way.
And parts of Shanghai slide back into lockdown. New cases emerge only a day after COVID restrictions were lifted.
I'm live in London tonight. It's Thursday. It's June the 2nd, Jubilee weekend. I'm Richard Quest and yes, I mean business.
And a very good evening to you here in London and across the United Kingdom and the Commonwealth of Nations, it is a time of celebration. The Platinum
Jubilee marking an unprecedented 70-year reign of Her Majesty, Queen Elizabeth II.
A four-day holiday weekend began today. The Trooping of the Colour complete with more than 1,500 soldiers on parade and 70 aircrafts in a flight passed
over Buckingham Palace.
Prince Charles participated in lieu of his mother riding on horseback with his sister Princess Anne, the Princess Royal, and his son, that Duke of
Cornwall, Prince William.
As for her majesty, she and the close family, the working Royals, if you will, came to the balcony of Buckingham Palace, and we've just learned the
Queen will not attend the service of Thanksgiving tomorrow. She says apparently she experienced some discomfort to today's events.
But there you see, she was clearly beaming at the events of the day. She is 96 after all, and the Royals that are on the balcony, the working Royals.
So you have all the senior Royals there.
CNN's Royal correspondent is Max Foster. He is with me from the Mell in London. Let's just get this first of all out of the way, the reason that
she's not going to the service of Thanksgiving, some discomfort. Do we know, how bad?
MAX FOSTER, CNN ROYAL CORRESPONDENT: We don't know. They just take into account the journey, the activity required to participate. It's a long
service, of course and it is with reluctance that she has pulled out. This is a key moment, of course, a Thanksgiving service at St. Paul's. She is,
you know, supreme leader of the Church of England.
Today was about being, you know, head of the Armed Forces. This was a key moment, she would have wanted to go, and she can't go. They are trying to
just not over exert her basically, and perhaps that did happen today on the balcony, despite the fact she's canceled moments today as well.
But I think everyone does understand that she is 96 years old. She has to take things in good measure. As you were saying she looks in great form on
the balcony. So I don't think there's any huge concern.
But when she does feel like she has overexerted herself a bit, they are canceling things and not even thinking about it. I think that's everyone's
preference anyway. But it was a glorious day. It was great weather, everything went to plan, 70 aircrafts in that fly pass, extraordinary. One
representing a year in her reign and that couldn't have happened in the rain, and we're used to that, but didn't happen today.
She was clearly pleased to see the crowds, to see that she was still very much loved. Who knew what the public really thought after the tumultuous
times recently, but actually, I think they look to the Queen and think she is the non-divisive figure, the non-controversial figure that they've all
been looking for, and there is a good party atmosphere here, even now going into the next three days of celebration. Let's look back on today.
(BEGIN VIDEOTAPE)
FOSTER (voice over): A monumental moment in history. One we won't see again in our lifetimes.
Queen Elizabeth II marks 70 years of service and just a couple of years away from being the longest reigning monarch in world history.
To the awe and joy of thousands of her supporters who came from all corners of the globe to witness this once in a lifetime event.
[15:05:02]
UNIDENTIFIED FEMALE: I just love the Queen. She served so selflessly for the last 70 years, dedicated her life to the country. I'm so grateful to
her for that. I'm so proud of it, you know, so I just wanted to come over and say "thank you," really. So this is me just saying thank you to her for
her service.
UNIDENTIFIED MALE: I think it's a once in a generation type of event and to be able to be here is just amazing, and I can tell you the appetite back
in the U.S. for not only this celebration, but the Royal Family is through the roof.
FOSTER (voice over): A special Trooping of the Colour, a military ceremony, kicking off the four-day long celebration, and even Seamus, the
mascot dog of the Irish Guards.
Camilla, Duchess of Cornwall and Kate, Duchess and Cambridge are the first Royals who arrived with the Queen's great grandchildren. Closely followed
by Princess Anne, Prince William, and Prince Charles, the heir to the throne stepping into the Queen at the parade ground as he will each time
she is unable to attend an event due to her mobility issues, all part of the gradual transition to his monarchy that comes next.
Prime Minister Boris Johnson amongst the guests, nicknaming her "Elizabeth the Great," indeed the Queen of 50 nations her Jubilee was also
commemorated across the Commonwealth with the lighting of beacons in New Zealand, Fiji, and India.
But the event was also marked by the absence from the symbolic balcony appearance of Prince Andrew, Prince Harry and Meghan, no longer working
Royals, and Prince Andrew having contracted COVID.
And despite concerns about her state of health, the Queen beams during the flight pass with her loyal subjects cheering her every move, perhaps the
same can't be said for her great grandchildren. Their presence, also a symbol of the passing of the baton, one that was passed to her back in
1953, and now, she is preparing to hand the baton to her next in line.
(END VIDEOTAPE)
QUEST: Max, the thing about the Queen, one contemplates the years, she has been around obviously our entire lives as British subjects. I remember the
Silver Jubilee when we all got coins from the government. I remember the Golden Jubilee, the party at the palace where I met my soon to be, and then
husband.
I remember now this, I mean, it's hard to explain to people who aren't either Commonwealth citizens or British why we look at that picture and it
just is.
FOSTER: Well, you've just said it, I think. Her life, her continuity defines us because those moments punctuate your life you remember them and
then you feel this connection with her because she is there on those big moments.
You remember the London Olympics, she was there in a time of celebration. She's been there at times of commiseration. I think she is there right now
to represent something that isn't that divisiveness out there in the world right now.
So many people here, so happy to be partying once again after COVID and they're looking forward to, you know, the future and the Queen having
Prince Charles there, showing that he is the future is something that will support him and if anyone can support his future monarchy, it is her.
So I think that was a big part today. We're now sadly going to see that again tomorrow. She can't make that simple service. So Prince Charles is
going to have to step in for her yet again.
She won't abdicate as you know, Richard, but we are going to see Prince Charles increasingly step up. It's happening at a faster pace now.
QUEST: You know, I wanted to ask you about that, the abdication or retirement, whatever you want to call it, but it's inappropriate today.
We'll leave that for another day, Max Foster, to discuss that. Thank you.
Now the clear, blue skies, and the celebratory atmosphere -- what a night, look at the skies. It was just spectacular.
How stark a contrast it is to the outlook on the economic front where we do need to turn and where the weather is looking decidedly glum. JPMorgan's
boss, Jamie Dimon said it is no longer just storm clouds. He says it could be an economic hurricane and we could be heading right for the eye.
He was talking in a conference on inflation. He says inflation is distorting the economy. The war in Ukraine and QE are unprecedented
challenges for the Fed dealing with all these different weather systems. He says right now, things are still sunny and consumer spending is strong.
People think the Fed can manage a soft landing, but the hurricane is on the horizon and it is coming this way.
Whether it's minor or not, or full scale or not, that we don't know.
[15:10:00]
Rahel Solomon is in New York and joins me now. This is very interesting because he is really only saying what publicly what many people are saying
privately that this is going to be perhaps worse than we expected.
RAHEL SOLOMON, CNN BUSINESS CORRESPONDENT: Right, Richard. It does feel like these whispers are growing louder, right? And he said a lot, but I
think there are four words that perhaps jumped out to me most, "You better brace yourself."
When Jamie Dimon, the CEO of JPMorgan says something like that publicly, it is enough to raise eyebrows and certainly cause some concern, especially
Richard, because just last Monday, you and I were speaking about comments he made and actually lifted short of optimism and market sentiment.
He said last Monday that strong economy, big storm clouds and he said he used the words "big storm clouds" because they may dissipate. So this
seeming about-face in such a short time and the strong language certainly enough to sort of make them wonder, what does he see down the road?
I also want to point to Snap. We heard from Snap, they put out that economic warning about a month after they reported earnings, saying that
macro conditions have deteriorated.
So it is this whisper, Richard, as you know, that is getting louder. It almost feels as if the storm clouds are growing darker.
QUEST: Right. And yet, too many economists including the IMF, including the ECB, are still saying that their baseline is not for a recession.
However, the risk is on the downside.
Now, if you look at JPMorgan's forecasts for next year, they've downgraded to one percent, so if we are going to get a recession, it's mid-'23, when
it kicks in, correct?
SOLOMON: Look, I think you touched on a really interesting point. What we're hearing from so many is that they are not expecting a recession, but
I saw something yesterday that really made me think.
So many last year said that inflation will be transitory, so many this year are saying that we may not see a recession. We know that many were wrong
last year, could they be wrong again?
Look, you know, that is unknown. We're seeing in the jobs report some slowing, which of course, the Federal Reserve wants to see. How strong the
consumer will be when personal savings rates are declining quite rapidly, four percent, according to the last reading that I saw when consumers are
not spending as much as they can. And when, of course, the elephant in the room is inflation, which appears to be at the very least moderating, but
certainly not falling just yet.
QUEST: No, I think that the moderation of inflation is not there yet because the detail of the inflation, the numbers that you have to look at
are not at that top headline. I'm not disagreeing with you, per se. I'm saying I think that people are fooling themselves in thinking that there is
a moderation of inflation yet, I think that the interest rate rises have not yet done the work that they need to do which is underneath.
SOLOMON: Right, because we know that there's a lag of at least six to nine months, right, according to economists. By the way, we're going to get the
next CPI report, the next Consumer Price Index report next Friday.
So you know, Richard, everyone is trying to game it out, but every data point seems to become increasingly more important as we try to figure out,
has inflation peaked? Are we seeing some softening in the job market?
QUEST: I wish you're in London this weekend then I could treat you to afternoon tea with a piece -- a nice slice of Victoria sponge and a good
cup of tea.
SOLOMON: I wish so, too.
QUEST: Thank you, Rahel Solomon, joining me from New York.
It is QUEST MEANS BUSINESS tonight.
OPEC has agreed to increase its production of oil. Well, you know the old saying, a day late and a dollar short. What they did, I'm not quite sure
what they did, but it certainly hasn't had any effect in terms of lowering the price.
Clare Sebastian will explain why. Maybe she's got some Victoria sponge.
(COMMERCIAL BREAK)
[15:16:26]
QUEST: OPEC is doing the oil equivalent of playing the shell game: Where is the oil production at any given moment? It says it's going to increase
production faster than planned to help bring down prices. However, it is really just borrowing from the future.
The cartel says it will raise oil output, nearly 650,000 barrels a day by splitting that which it was going to produce further down. In other words,
it is pouring from September and bringing it into July and August.
It's still 200,000 more than the agreed amount with OPEC and OPEC+. Russian output has fallen, of course because of Ukraine. Oil is higher despite the
agreement. Brent is up one percent.
Clare Sebastian -- Clare, that tells you all you need to know. This is sort of smoke and mirrors.
CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT: Yes, two key reasons, Richard, why oil is up one, because if you look at the numbers 648,000,
that's the amount they are adding every month in July and August, that means that the deal that they made last summer will expire a month early,
but if you compare that to what Russia is off by in terms of production, it's about a million barrels a day, according to Reuters, so that doesn't
cover that shortfall. That's reason number one.
Second reason is that this is an increase in production, right, but Russia is seeing its production fall. So how are they supposed to meet an
increase? There's no sign that the quotas have been moved, that Saudi Arabia is going to pick up any slack. So that suggests that OPEC as it has
done for the past couple of months, according to experts, is going to continue to undershoot. Less oil is going to come on the market than
promised.
QUEST: So there is no reason for the price to come down at the moment.
SEBASTIAN: Not according to --
QUEST: You've got OPEC not really doing much, you've got China opening up in sort of, but it is going to open up, therefore demand is going to
increase. You've got India filling up as much as it possibly can, and you've got --
SEBASTIAN: The oil embargo.
QUEST: The oil embargo out of Russia under sanctions on say for example tankered oil.
SEBASTIAN: Right. So we've got potential supply issues coming in on top of the million barrels that Russia is said to be off now. The amount they
exported to the E.U. last year was 2.2 million barrels a day. So, if you think that they're going to cut that by 90 percent by the end of the year,
if this embargo ends up working out, then that is significant to the market.
The question, of course is what can Russia do with those sort of stranded barrels? Is it going to be able to export to India? India certainly seem to
have the appetite so far, but the ban from the E.U. and the U.K. on tanker insurance could interrupt that. So, it's not clear whether Russia will be
able to pick up the shortfall from its European customers.
QUEST: Is it hurting Putin and Russia? I mean, they lowered interest rates to help stimulate the economy. The ruble didn't necessarily collapse as a
result of that, which is slightly weird, because it's not really a proper market now there are sanctions against ruble, trading, and all sorts of
things.
SEBASTIAN: Yes, yes.
QUEST: So you can't really say, but this -- I know, President Biden says sanctions take time to work, but in your view?
SEBASTIAN: We have a graphic actually, Richard, which shows inflation in various parts of the world. Obviously, it's eight to nine percent In the
E.U., the U.K., and the U.S., but I didn't want to leave out Russia, look at that, 17.5 percent.
Now, the Russians will tell you that is moderated down a little bit from the previous month at 17.8 percent. But that is significant, that is going
to hit people and look, it may come down over the course of the year, but it's still hitting them.
However, don't underestimate the power of the rhetoric around this. We hear constantly from President Putin. We heard today from his Deputy Prime
Minister, the former Energy Minister Alexander Novak who said look, this is going to hurt the Europeans more. That is the line they are taking. Mr.
Novak today warning of fuel shortages in Europe.
[15:20:06]
So the Russians are being taught to understand this as Europe is shooting itself in the foot, but it will, of course, hit them because this is their
biggest export. It's going to hit their budget. Oil and gas was 45 percent of the budget last year.
QUEST: Clare, thank you very much indeed.
Here in the U.K., consumers are feeling the pain from rising oil prices already. Energy bills have skyrocketed here after regulators allowed a huge
increase in the maximum amount suppliers can charge. The cap increased 54 percent, I think my electricity bill on my plot here went up by about 55
percent. It's expected to rise another 40 percent in October.
Greg Jackson join me. He is the Chief Executive of Octopus Energy, one of the largest energy suppliers and transits and platforms. He says the war in
Ukraine is impacting renewables as well.
(BEGIN VIDEOTAPE)
GREG JACKSON, FOUNDER AND CHIEF EXECUTIVE, OCTOPUS ENERGY: Yes, here in the U.K., 40 percent of our electricity is now from renewable sources.
Across the world, you know, Japan is at 20 percent, most of Europe between 20 and 40. So that move is now happening at scale. And of course, as the
current crisis shows, we need more of it.
QUEST: How do we get more? Particularly if we take, for example, what we're discovering with Ukraine and Russia. I mean, there was even a shift
back to coal at one particular point to try and take up the slack from oil and gas.
JACKSON: And what this is demonstrating is that roughly a decade ago, when countries around the world scaled back their renewables, we're now paying
the price for that.
What we need to do is double down on every wind turbine, every solar panel means we'll use less gas, it means we'll give less power and less leverage
to Putin.
QUEST: But that's longer term, isn't it? The renewable switch up, if you like or power up will take a long time.
JACKSON: You know, in the pandemic, we discovered that the 15-year process for creating and licensing a vaccine can be done in a year. It's the same
with renewables.
Typically, most countries, it takes seven or eight years to build renewables from the day you start planning. We could do it in a year if we
sort out the bureaucratic processes.
So actually, within a year of now, we could make a difference through renewables.
QUEST: Do you see one of the side effects, and I was listening to Ursula von der Leyen of the commission basically saying that this war has
accelerated dramatically, almost put on steroids, if you will, the shift to green energy.
JACKSON: It really has. I mean, what you're seeing is countries around the world, especially in Europe, you know, massively accelerating commitments
they've made and making new commitments. But I think the thing here is that every fossil fuel crisis before, we haven't had an alternative, but today,
renewables are cheaper than fossil fuels were even before the crisis.
QUEST: How does the U.K. -- how did the U.K. get into such a mess that prices have went up 60 to 70 percent this year, and there will be huge
increases next year?
JACKSON: Yes, we've got to note on the global markets, at some points, the price of gas has been 10 times higher than it was prior to the crisis. So
actually, what you're seeing is countries are kind of buffering and dampening these effects. But the reality is, what we need to do is move to
renewables faster, so we don't have any more crises like this.
QUEST: Yes. Are renewables a realistic, full scale replacement for fossils?
JACKSON: They are now, but what we're seeing, for example, as electric cars are -- you know, 25 percent of new car sales in the U.K. now are
electric. That's a three-fold increase from just a year ago.
QUEST: Right. But how is the electricity produced that is going to drive the car?
JACKSON: The great news is that, for example, electric cars, the perfect complement to renewable generation, you know, the average car, you only
need to charge it every few days. So we can use those windy and sunny days to fill up batteries, and that means that we need less electricity the rest
of the time.
So, actually, what it lets us do is go renewable faster.
QUEST: I just -- I'm not cynical, I'm skeptical. I'm skeptical that it'll ever reach, that it will ever fully replace fossil.
JACKSON: Yes, you know, most people don't have a landline anymore and if they do, they use it for the internet.
QUEST: I do.
JACKSON: Right. And it is maybe a generational thing, right?
QUEST: Thank you. Thank you.
JACKSON: You and I are in the same way. But the reality is that, if you tell people more than 10 to 15 years ago that mobile phones were basically
replace landlines, they wouldn't have believed you. And yet we're in a world today where most landlines are used for the internet and most people
don't know their phone number.
(END VIDEOTAPE)
QUEST: Unfortunately, that is distressingly true.
As we continue tonight, it's nearly a hundred days, I beg your pardon, a hundred days, God forbid we ever have to get to a thousand days into
Russia's war in Ukraine.
President Zelenskyy says a fifth of his country, a fifth is now under Moscow's control. He tried to put that into context during a speech to
lawmakers in Luxembourg.
[15:25:10]
(BEGIN VIDEO CLIP)
VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): As of now, nearly 20 percent of our territory is under the control of occupiers,
almost 125,000 square kilometers. It is more than the territory of old Benelux countries together, nearly 300,000 square kilometers are polluted
with mines and unexploded ordnance.
(END VIDEO CLIP)
QUEST: Now, Ukraine's military says Russian troops are advancing from several directions to take more of Luhansk and Donetsk. A senior officer
says fierce fighting continues in the city of Severodonetsk, which is mostly under Russian control.
The NATO Secretary-General Jens Stoltenberg says it's likely the war will go on for the long haul. He believes it will ultimately end at the
negotiating table. He was speaking at the White House with the President, where the Secretary-General said Ukraine will need the continued support of
NATO allies, and he hoped that will soon include Finland and Sweden.
He said Vladimir Putin started the war because he wanted less NATO. Now, he is getting more of it.
Alex Stubb is the former Prime Minister of Finland, now is the Director and Professor of the School of Transnational Governance, and the Chair of the
Martti Ahtisaari Peace Foundation.
All right, Alex, let's be blunt here. At the moment, President Erdogan has his foot on the neck of Finland and Sweden's membership, and it doesn't
look likely yet -- yet -- that the price has been found for removing it.
ALEX STUBB, FORMER PRIME MINISTER OF FINLAND: Yes, I think you're right.
I mean, the situation is quite complicated. Obviously, as the eternal optimist and perhaps a longtime diplomat, I also believe that these things
have a tendency to get sorted in the long run.
Basically, it's about three issues. One, the Kurds and PKK. Two is an arms embargo, and three is a purchase of F-35s from the United States and I'm
sure that this should be ironed out before the Summit in Madrid end of June.
QUEST: But you know, the thing I keep looking at, it's like the oil embargo or the oil sanction, it took X number of weeks, and Viktor Orban
and this, that, and the other and there is still the gas, and that's going to take weeks and weeks and weeks before Finland.
Meanwhile, Zelenskyy has lost 20 percent of his country, and Putin is moving forward in a way that Kissinger was right. It's just a question of
the price for peace.
STUBB: Well, yes, I mean, the price for peace has to be communicated, perhaps, at least one example from here, you know, in an uncomfortable
peace in 1944, Finland accepted a ceasefire and truce with Stalin. And we lost 10 percent of our country at the time, actually the area where my
father was born, and where my grandparents were born, and 400,000 people had to migrate back into what we call Finland, nowadays. In Ukraine, it's
now 20 percent of the territory and over five million people that are refugees.
So the situation is very difficult, that's for sure.
QUEST: You're a realist, you're a diplomat. You know, the realpolitik of this -- Zelenskyy, you know, everybody says, Ukraine will decide what the
price of peace is but that's a load of rubbish, as you know, A., because they require $5 billion a day, and there's not going to be $5 billion worth
of financing; B., they require more advanced technology in terms of weaponry, and they may or may not get that and C., the West is just going
to get tired of it.
STUBB: Well, I have warned against war fatigue for a while already and the reason for this is that solidarity will start waning away, people start
looking at inflation, the price of food, the price of energy, also the refugee situation, but my plead is that we continue to support Zelenskyy.
And I think the moral thing to do here, the right thing to do is to allow for the Ukrainians to decide what the balance of peace is. We cannot be the
ones telling them where the war should stop. We can only support them, and hope that at the end of the day, they will win.
But I do admit that the situation is very complicated.
QUEST: Right. I mean, I watched the Netflix movie, "Munich: The Edge of War" over the weekend, which if you haven't watched, you watch it and you
realize just how close the parallels are to what is happening at the moment.
Did we learn anything from Munich in 1938?
STUBB: Well, I mean, it's difficult to say. I mean, I watched the movie as well. And you know, on one hand, you have the Chamberlain's of Europe
saying that we need to go for peace. We need to find a peace and bona fide believe Putin's word and then we have the Winston Churchill's to which I
put Zelenskyy who say completely the opposite that says the only way in which we can end this is full scale war, and that's what is going on at the
moment.
[15:30:14]
I think the lesson that we have to learn is to look at other similar types of warfare. And I think the Winter War between the Soviet Union attacked
Finland in 1939, that one lasted 105 days. It was the Finns themselves who decided when we should go for the ceasefire. And I think the Ukrainians
should be allowed to do that. So, I will say no to appeasement.
QUEST: Alex Stubb, stunning room of wherever you are in front of somebody.
STUBB: Let me just give you if you ask. Look, look. Look up there. Yes, there you go. This is what we have at the School of Transnational
Governance of the European Universities.
QUEST: How lovely.
STUBB: One room after another.
QUEST: You wouldn't want to have to repaint that in a hurry. Thank you very much. Good to see you, Alex. Thank you.
Magnificent. Make sure you get on Quest Means Business. Go get that on those other programs.
In a moment, China's easing of COVID restrictions may not be so relaxed. Several neighborhoods already back in lockdown. And in Beijing, residents
are under strict surveillance.
Good evening to you.
(COMMERCIAL BREAK)
QUEST: Shanghai is reopening of being cut short at least for some people, multiple neighborhoods are back in lockdown and all because of seven new
COVID cases. Correct? You heard me right the first time, seven. The city had eased restrictions and you can see the sort of joy and jubilation that
there were as people were allowed out.
[15:35:03]
Residents are still now mass -- battling massive lines for COVID testing. Everyone's required to obtain a negative result before entering public
spaces and transport.
Restrictions eased in Beijing where residents are under a watchful eye for new outbreaks. CNN Selina Wang shows us some of the measures in place and
what people are doing in response.
(BEGIN VIDEO TAPE)
SELINA WANG, CNN CORRESPONDENT (voice-over): This is part of my daily routine in Beijing.
(on camera): All right. Doing my temperature check.
(voice-over): Mandatory testing for the city's 20 million plus residents.
(on camera): I got to show them my passport and they have to type it in every single time.
(voice-over): Beijing halted almost all public activity for weeks over just a few dozen daily COVID cases.
(on camera): Nonessential stores have been shut down, including schools and gyms, and all in restaurant dining is banned indefinitely.
(voice-over): The capital recently reopened some venues like malls and parks with limited capacity and visitors have to show proof of a recent
COVID test. But still, the biggest crowds often appear to be parades of COVID workers spraying disinfectant all over the streets.
(on camera): So it's green, I'm good to go in.
I need this green code to enter any area in Beijing. If it turns red, then I could be stuck at home or sent to quarantine. Through the smartphone
apps, authorities can carefully track the movements of virtually all of China's 1.4 billion people. Grocery shelves here fully stocked. Beijing
officials clearly trying to show people that no matter how long this partial lockdown lasts for people are going to be fed.
(voice-over): Not like in Shanghai where people struggled to get enough food when they were locked down.
(on camera): This is a building where a positive COVID case has been found. You can see the workers in hazmat suits, the blue barrier around the
building. This is to keep the people who live there locked inside. But it also serves as a warning to other residents.
There's a fear that if you spend too much time by a lockdown building, your QR code could turn red.
(voice-over): Just one positive COVID case can get an entire building bus to government quarantine. This is just one of the many high risk areas in
Beijing. Residents avoid even transiting through the red dots on the map.
(on camera): It's lunchtime in Beijing's most popular food district. Normally, people here would be gathered crowded shoulder to shoulder. But
now it is essentially a ghost town.
And even here there are signs reminding people to avoid crowds and security guards on the loudspeakers telling people to distance themselves. But after
more than two years of these on and off restrictions, people are getting frustrated. Every part of our days are tracked and surveilled. People are
concerned that this control is here to stay long after COVID is gone.
Selina Wang, CNN, Beijing.
(END VIDEO TAPE)
QUEST: Extraordinary.
The film "Top Gun: Maverick," box office records we told you about last weekend, it's a follow up to the 1980s Tom Cruise hit, a test of whether
movie theaters can recover their pre pandemic business. Lingering clouds on the horizon including supply chain for example, and that includes a
possible popcorn shortage that could also take a bite into profits.
On average, concessions account for roughly a third of theater revenues more than 80 percent of their margins. Mooky Greidinger is the chief
executive of Cineworld, second largest chain is with me from Haifa.
Good evening, sir. Grateful to have you.
And we'll deal with popcorn in a moment. First of all, look, 170 million for "Top Gun Maverick." I mean, it's been a huge success. I know you'd like
to have one of those every week, if you could, but you can't. So, is Maverick one on its own?
MOOKY GREIDINGER, CEO, CINEWORLD: No, for sure not, you know. We will settle also for once in two weeks.
But right now when we look at the lineup which is coming after "Top Gun" and we have "Jurassic World" next week. And then we have "Lightyear," which
is the new Pixar movie. And then we have "Elvis." And then we have "Stone" from Marvel and more and more and more.
I think that finally we can start to say that we are back to almost the normal supply of movies. And really, we had some huge successes already
with "Spider Man" and "Batman" where there was not a flow of movies. And now, we finally hopefully have a flow of movies.
And "Top Gun," you know --
QUEST: Right.
GREIDINGER: -- to score on the first weekend worldwide close to $300 million without China and without Russia is really sensational.
QUEST: So what's going on with popcorn?
GREIDINGER: So popcorn, you know, like many commodities has all kinds of issues of supply. And on top of it unfortunately, due to the war in Ukraine
and the Russian invasion there, Ukraine is one of the big suppliers of corn in the world.
QUEST: Interesting.
GREIDINGER: And this, of course, also influenced in a big way the issue.
QUEST: Right.
GREIDINGER: But we are getting along and there is enough popcorn in the cinemas.
QUEST: If we look at what price people are prepared to pay We are getting along and there is enough popcorn in the cinemas country.
[15:40:06]
QUEST: If we look at what price people are prepared to pay for. For example, going back to the movie theater, certainly it seems to be that,
you know, it's back, people aren't going back. By also see streaming on pretty much newly released movies, hitting the streaming fees, hitting the
same sort of prices, almost as in the theater, do you still worry about streaming?
GREIDINGER: No, I think one thing that we got from COVID and our industry really suffered a lot as everybody knows, but the one positive thing that
we got from COVID was the studios had time to experiment around the window that was such a big issue. And I think to everyone is now clear that the
best way to maximize an income from a movie, for movies from a certain, of course, degree of box office, to maximize it, you need to go first to the
cinemas, then go to the other platforms and this is the way to do it.
And we see now, I think, that "Spiderman" held a window of over 70 days. "Top Gun" will have a window probably at least 245 days and maybe more. And
"Jurassic" and so on and so on.
QUEST: But would you now like to see movie makers move away? I mean, I understand you want the money from the big hits and from the sequels and
the prequels and all of that, but would you also like to see, have on God (ph), would you like to see the new stuff? Would you like to see the
challenging stuff, the less safe stuff?
GREIDINGER: For sure. Look, we have huge number of screens. In the big circuits especially Cineworld, for example, we have so many screens that we
want to show almost everything which is available as long as we get the proper window for it. And we are really showing all kinds of stuff, whether
it is avant-garde, whether it is what is called art material, but we show also foreign movies like Bollywood, the Korean movies are doing now very
well. And of course, the leaders are the big blockbusters that are coming from the studios.
QUEST: Mooky, either in Israel or New York or London, we have to go to a movie together and join interview in one of your theaters and we'll have
some popcorn and I'll even pay for it. Thank you, sir. Grateful that you've joined us.
GREIDINGER: Be my guest. Be my guest. Thank you. Thank you.
QUEST: Now, we're after the break. People go to Las Vegas and one of the things you do if you're going there to say I do is the Elvis impersonator.
The company who owns Elvis's likeness is saying no more. The chapel's in the company who wants to stop them in a moment.
(COMMERCIAL BREAK)
[15:45:44]
QUEST: We know that booming industries can damage an ecosystem. What happens when the work dries up and the companies leave?
A team in Portugal is helping the land heal in an effort to draw back animals that haven't called the area home in quite some time. CNN's Isa
Soares with today's "Call to Earth."
(BEGIN VIDEO TAPE)
ISA SOARES, CNN INTERNATIONAL CORRESPONDENT (voice-over): Here in the valley of the Coa River in North Eastern Portugal stretches acres of
agricultural land that have fallen into disuse. For centuries, this area was used for farming and mining. But the economic downturn in recent
decades prompted many 1000s of people to leave. Today, a small group of rewilding is claiming the land back.
PEDRO PRATA, REWILDING PORTUGAL: The aim is to allow nature to recover, wildlife to come back, but also for people and nature to benefit alike.
This means that the whole landscape is more connected and more abundant in wildlife.
SOARES (voice-over): Pedro Prata works for Rewilding Portugal, guarding the region from wildfires, animal poisoning and poachers and securing new areas
of protection.
PRATA: Me and my team, we're constantly present in this landscape. We live in the landscape. We're all the time here.
SOARES (voice-over): The Coa Valley provides a migratory corridor for rare species, by rewilding these targeted areas, Prata hopes to encourage the
return of some of Portugal's chief predators, such as lynxes and wolves.
PRATA: Top predator acts as a guardian for the processes within the landscape.
SOARES (voice-over): But for the top of the food chain to flourish, it needs to be supported by the rest of the ecosystem. So the team is focusing
first on the reintroduction of Roe deer and wild horses.
PRATA: They are the ones who manage the growth of the vegetation, but also they spread seeds and they take the nutrients back into the soil with their
dung. And so, they are the real engineers of the vegetation.
SOARES (voice-over): Progress will be slow. Predator numbers cannot increase until herbivores grow.
PRATA: Footprints, that's better. Yes.
SOARES (voice-over): Once the system is up and running, it is hoped that Lynx will follow in the footsteps of the wolfs or indeed these badges being
tracked by the team. But predators bring risk. Local human populations need reassurance.
PRATA: I think in the national context we hear in Portugal, rewilding is a new concept. The biggest obstacles we're facing nowadays actually is
cultural. Our aim here is that people understand there is ways to coexist with a wolf.
SOARES (voice-over): Promoting wild herbivores prevents the likelihood of domestic animals being lost as prey. Prata and his team hoped that by
promoting species biodiversity in Portugal, they are ensuring the longevity for environment, wildlife and community alike.
PRATA: We live in a fantastic world full of fantastic species and creature that has the same right to be here and to exist into the future much as we
do. I think my main message is just let nature be and just let nature rewild (ph).
(END VIDEO TAPE)
QUEST: Rewilding, absolutely fascinating. Now, of course, as always, I'm very keen to know what you're doing to help protect the planet. Here's the
hashtag "Call to Earth." Let's talk.
(COMMERCIAL BREAK)
[15:51:53]
QUEST: Say you're going to get married in Las Vegas and the first thing people ask you is whether you're going to be married by Elvis. Thanks to a
movie and a hit song "Elvis Presley" is forever linked to the city of Las Vegas.
Now couples flocked to Vegas to be married by Elvis lookalikes of which there are many. Now the company that owns the right to Elvis's name and
vision and likeness is objecting, it's called Authentic Brands Group, and it sent a cease and desist letter to some Vegas chapels. ABG says it's to
protect the rock star's legacy.
And new movie about Elvis is coming out this month from our parent company Warner Brothers Discovery. It's bound to renew his popularity, something
that could help the Vegas wedding industry recover some of the pandemic losses. That is if they are allowed to or the cease and desist doesn't go.
Melody Willis-Williams is the President of Vegas Weddings. She's in Las Vegas and joins me now. Good to see you, ma'am. Thank you.
Why now Elvis look alike, Elvis-themed weddings, Elvis that does (ph) the other nonsense in weddings in Vegas for decades, why do you think they've
sent this letter now?
MELODY WILLIS-WILLIAMS, PRESIDENT, VEGAS WEDDINGS: I absolutely believe it has everything to do with the movie that is dropping. And we were excited
about it probably a week ago, but now we're just a little disheartened to be honest with you.
QUEST: So, what are the -- there's lots of chapels there with Elvis, what are they doing? Are they obeying the cease and desist? Are they sticking
two fingers up? Or they're just worried?
WILLIS-WILLIAMS: I think a lot of them probably will stick some fingers up. We had requested an extension so we can have the ability and the time to
respond. We received the notice just butting up against the holiday weekend. And while people mostly enjoy those holiday weekend, that's
wedding season for us. So we didn't have a chance to respond, so we asked for an extension.
QUEST: Right. And what have they threatened to do? I mean, are they going to sue them all? There's so many of them. I mean, I won't even imagine if
they tried to sue them? That would be, you know, an outbreak of deep dissatisfaction in Las Vegas.
WILLIS-WILLIAMS: Well, there's already that sense of dissatisfaction, because honestly, it's -- these are small mom and pop businesses. Some of
them are family owned, and they've been in the family for decades. And you're going up against a superpower and small mom and pop businesses just
don't have that kind of money to fight the legal fees. So, they either just stop offering that altogether or find some loophole.
QUEST: Can the city help? Can the Tourism Bureau? Can anybody help?
WILLIS-WILLIAMS: Trust me, I have calls into every single one of them. Even the mayor spoke out about it. It's just terrible timing because the wedding
industry is just getting their footing back, you know. As many businesses were, we were devastated by COVID-19 and the pandemic and we're just
finding our footing. So the timing is just really unfair to be honest.
[15:55:07]
QUEST: It sounds pretty dreadful. The -- well, Las Vegas is still the place, isn't it? And, Id don't know, I have to -- in the full interest of
transparency and openness when we couldn't get married elsewhere, my husband and I came to Las Vegas in October of -- two years ago and we got
married in Las Vegas because the truth of it is --
WILLIS-WILLIAMS: It's the wedding destination of the world. That is what we are known for. We can do weddings that are on a huge scale and a small
scale fun. And the only place you can get a very unique wedding like this is in Las Vegas.
And I believe the wedding industry has kept the Elvis name relevant to an entire generation of people that have never seen him perform or heard his
music but they know an Elvis wedding is synonymous with Las Vegas. We've kept it relevant.
QUEST: And I do believe, I think one of our senior staff had to get married by an Elvis impersonator in Las Vegas. Every time I say to anybody, and I
mean, anybody, I got married in Las Vegas, my husband and I, the first question is, was it by an Elvis? Was it Elvis? Everybody asks that.
WILLIS-WILLIAMS: It is a one of a kind experience. And it's not for everybody. We also cater to a lot of couples who are renewing, you know, 20
years of marriage and they had the big celebration when they first got married. And now they want to do something kooky and fun and where else but
Las Vegas where you can have Elvis marry you and a pink Cadillac and a drive thru. It's one of a kind.
QUEST: I'll tell you, well, here's the promise, when Chris and I renew our vows, whenever that might be, we'll come to Las Vegas, and you can find me
an Elvis impersonator. I'll pay. Don't worry, I'll pay. You find me a decent Elvis impersonator.
WILLIS-WILLIAMS: Absolutely. We'll find you whatever impersonator you want. Throw in some showgirls.
QUEST: Now you're talking. Now you're talking. Put a music. All right. Thank you very much.
We will -- thank you. I can't believe the direction this program took. I know a lot of Jubilee weekend too, a profitable moment after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's profitable moment, I'm delighted to be in London today for the Jubilee celebrations. I can't pretend to be neutral. I'm British. I'm a
supporter, a monetarist if you will. I accept those who may have different views and hopefully they accept mine.
The reality is that, what does the Queen bring over the last 70 years besides stability and duty? She once said in a quasar interview, she said
very few people do jobs for life, that she'd been trained and she hoped she'd been trained properly. The reality is, as I heard on the radio this
morning in Britain, the reality is what the Queen has done is navigate constitutional monarchy, protecting freedom of speech, but at the same
time, recognizing the stability that comes with the monarchical system and all within the ambit of democracy where she has no real power, huge
influence, but at the end of the day, states a topper system where she is only raining because the people allow it to take place.
And that's why I think we can all celebrate in some shape or form because the sense of joy that Her Majesty has brought really is worthy of marvel.
And that is Quest Means Business on this Jubilee weekend. I'm Richard Quest.
I'm off tomorrow. We're celebrating. No apology for that.
Whatever you're up to in the hours ahead, I hope it's profitable. Happy weekend. Best of the day, Jubilee (ph).
END
