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Quest Means Business

S&P 500 On Track For Worst Half In Over 50 Years; US Supreme Court Curbs Government's Climate Powers; Airbus CEO: Difficult To Restart Travel After Running Idle; Russian Forces Abandon Strategic Snake Island; NATO Reaffirms Support For Ukraine; G7 Pledged $5 Billion To Safeguard Food Security; Call To Earth: Sharks; Air New Zealand Plans For "Skynest" Beds. Aired 3-4p ET

Aired June 30, 2022 - 15:00   ET



RICHARD QUEST, CNN BUSINESS ANCHOR: So we are off the lows of the day with an hour to go of trading and the Dow has been down sharply, rallied up, but

we're still nearly one percent lower. I'm guessing a bit of optimism today.

I mean, looking the way that curve is going, it would be a foolish prediction as to how we might end the day, except we probably will be

lower. Those are the markets.

The events that we are talking about: The worst performance for stocks since the 1970s.

Today marks the halfway point in a painful year for investors. The Supreme Court is placing new limits on how the US government can fight climate


And the nirvana lie-flat bed in economy. Air New Zealand has a nest of an idea for snoozing at the back.

We are live in London. It is Thursday. It's June the 30th. I'm Richard Quest and I mean business.

Good evening.

The first half of the year comes to an end and it has been the worst first half of Wall Street in more than 50 years. The S&P 500 alone has shed $8

trillion in market value. This is the way it is at the moment. We're just slightly off a little bit, the Dow is down one and a half percent, one-

fifth percent.

The year has so far been very painful for investors, having to adjust to inflation, lockdowns in China, a war in Europe, and signs of recession. The

S&P is off 20 percent. The NASDAQ is well into a bear market, it's off 30 percent from last year's high and perhaps most disturbing of all, there

doesn't seem to be much opportunity for recovery on a major scale. The Dow is also in a correction.

Rahel Solomon is in New York. Those numbers, $8 trillion, $9 trillion of loss of value. Now, you know, if you haven't sold, then that really doesn't

make a difference. It's just a paper loss, but it makes people feel a lot poorer.

RAHEL SOLOMON, CNN BUSINESS CORRESPONDENT: Yes, the wealth effect, right? There is a real feeling in the US that things are amiss in the economy. You

feel it when you look at your 401 (k) and you look at your portfolio and understandably, right? The Dow is off 15 percent this year, the S&P, 20 and

the NASDAQ, 30 percent. So there is a real feeling of "What has happened to my wealth? What has happened to my money," essentially, right?

Even in terms of mortgage rates here in the US, they have climbed quite rapidly. So that has gotten more expensive and Richard, you know, Wall

Street and Main Street, the real economy don't always speak the same language and not always saying the right things or the same things.

But these days, it appears that they are because Deutsche Bank also put out a note this morning, essentially saying that every month, they survey and

question their investors and put out this note this morning that said that according to their latest response, their latest survey, 90 percent of

investors expected a recession by the end of 2023.

Compare that, Richard to 35 percent of investors who saw a recession in that same time period in December.

So the concerns are on Wall Street, the concerns are on investors in terms of a recession, and the concerns are on Main Street, and we really see it

when we look at our 401 (k)s and when we look at the markets.

QUEST: Okay, but what's the significance of it? I mean, all right. So recession in mid to late next year. Fine. I mean that the Fed still has a

lot more interest rate hikes to do. What's the significance in terms of psychology, in terms of investor behavior? If this continues like it does?

SOLOMON: Well, yes, exactly.

So the Fed sees rates going to about 3.5 percent by the end of this year. What the Fed doesn't want to happen is that inflation expectations become

sort of entrenched in behavior essentially, that people start to begin to expect that inflation will be around for quite some time.

And then so they start to make decisions based on that decision, right, in terms of negotiating higher prices in terms of what they make at work. And

so the Fed does not want that to happen. Powell spoke about that in Portugal this week.

But in terms of wealth, I mean, what we don't want in terms of a recession is significant job loss. We don't want that to trickle through the economy.

We don't want that for Americans in general, but we don't want the reaction that that causes in terms of a real pullback in spending and what that

creates in terms of business investment and business spending.


So of course, as you know, it has a domino effect. But that, of course, is the real concern is that as the Fed starts to raise rates and continues to

raise rates, as you rightly pointed out, that it triggers joblessness, that it triggers a real pullback in spending, and the domino that that creates

really ripples across the economy.

QUEST: There is a strong argument that would suggest that that's what the Fed really needs and wants to happen in the economy, just not on a grand

scale. That's a subject you and I will have to debate and discuss on a future occasion. Thank you, ma'am.

Now, in this market, well, we will show you that one later. There are very few places to hide. Bitcoin is down 60 percent. The S&P is down 20 percent.

Even bonds are not offering much safety.

The yield -- the yield on the 10-year has soared. And so of course, as you know, as the yield goes up, the price goes down. And that's why we're now

seeing higher yield.

But obviously, for those who are into bonds for the price, then that's obviously not a safe place to be either.

Ken Fisher, is the chair and co-Chief Investment Officer at Fisher Investment.

Ken, it is good to see you. You join me from Washington State. And look, we know, there is no place to hide, but if this market is like this for the

foreseeable future, what do you do?

KEN FISHER, IS THE CHAIR AND CO-CHIEF INVESTMENT OFFICER, FISHER INVESTMENT: Well, first, before going further, thank you for having me

back on, Richard.

Second, I just want to say in honor of you, I've got my London Stock Exchange tie on, and I hope you and viewers appreciate the gesture.

When you look at a time period like this, and from my appearances before, I know I've been wrong, I didn't expect this to turn into the bear market

that had been to this point. But I also know, this month being the anniversary of my 50th year in this investment business, I also know that

when you get to the point where you're down 20 percent or more on the broad market, S&P 500 or world market, which is both now, it's not very long

until you're at the bottom on average.

Sometimes a little longer, sometimes a little less, but you've actually gone through quite a lot of the decline. The most dangerous thing someone

can do now is to sell out, but usually the lower you go, the more pessimistic people tend to get making them more prone to sell out.

There is a point that no one seems to note. Actually, there are several points that no one seems to note, but one that's typically very important

when you get to this stage is that the categories that go down the most in a bear market tend overwhelmingly to bounce the most in the early phases of

recovery, whenever you get there.

And this time, it's going to be more extreme for another reason people don't see, which is that we've had 60 updates this year, and of those,

growth has done better than value a little over 70 percent of the time. We've had 69 down days in value that has done better than growth, 79

percent of those days.

If you tell me where the market is going over the next few months, I can tell you whether value or growth does better, it goes up, growth will lead,

when it comes down, it will continue. We need to keep that in mind when we think about portfolios now.

QUEST: And as we look to discern when -- I mean, I think you would -- I would hope you might agree only a fool actually tries to hit the bottom per

se. You're never going to get it absolutely spot on.

But you are going to get a feeling that now is the time that -- and we're not there yet. I don't think we're there yet. You know, last week we saw

the market rally and I was thinking, oh, should one have bought and then next week, it's gone. How will we know when we're bouncing along the


FISHER: We won't. You actually never really do. But let me offer you two points. One, you started off correctly saying crypto bad, bonds negative

returns, cash actually right now has a negative return when you look at inflation.

Where are you going to go? And I've made this point otherwise recently, which is this is kind of like the famous American "Ghostbusters" movie.

After you can't trust the fire department and police department in the City Council and the Mayor at movie, you finally turn to the "Ghostbusters" who

you never believed were good before.

The fact of the matter in this environment is, it is harder for people to turn to other sources, so that's going to limit in my opinion, how far down

the barrel market goes. The issue is the duration which is what you ask about, and when we get to the point where people are increasingly

pessimistic, you're getting pretty close.

QUEST: I turned the ripe old age of 60 this year and would have foolishly -- have foolishly not followed always the advice, you know the 60/40 bonds.

The reality is though -- I mean, I'm not planning to retire anytime soon.


So any viewer who thinks I am, I'm not.

But if I was planning to retire, if I hadn't done my planning and I was still heavily equity-based, I would be having sleepless nights.

FISHER: Well, mind you, I think that's the wrong way to think about it. Let me help you with that in a slightly different way. You're that age,

you're going to -- unless there's something seriously wrong with you, individually, which you need to talk to your doctor about, you're going to

probably live, 20 to 25, maybe even 30 years. And the longer you go, the longer older people tend to live, tied to improvements in medical care.

If you look at those periods, stocks tend to do pretty well and they tend to do better than bonds and they tend to do better than other liquid forms.

So what you really want to do is set aside a few years' worth of cash so you can get through a tough time. And otherwise, you want to be fully

equities because you had higher returns long term that way.

QUEST: Good to see you, Ken. We will talk more about it. These are difficult and dangerous times and we need your advice. Thank you, sir. I

appreciate it.

FISHER: Thank you, Richard.

QUEST: It is QUEST MEANS BUSINESS tonight from London.

Environmental leaders are in Lisbon, where they are addressing an ocean emergency. I'll speak to the head of the Bezos Earth Fund about the latest

climate investments.


QUEST: A new ruling from the US Supreme Court is derailing the Biden administration's fight against climate change. The Court has curbed the

Environmental Protection Agency's -- the EPA -- and the agency's ability to regulate emissions at power plants.

The overall authority apparently has also been cut back and can create serious problems for the administration's efforts to enact a broad range of

climate policies.

All of this, as the global climate leaders are meeting to address an ocean emergency as was described by the UN Secretary-General.

The United Nations Ocean Conference taking place in Lisbon, in Portugal where delegates of 20 nations and they are hoping to make a Declaration

protecting the High Seas.

The discussions will center on ways to prevent exploitation and restore the ocean's health.

Andrew Steer is with me, the Chief Executive and President of the Bezos Earth Fund. He is in Lisbon attending the conference.

Andrew, look, I've read the -- I have read the Secretary-General's comments and I've seen what it's all about, but we know a lot of this already. We've

known the oceans are in trouble for some time.


Why should I think that another conference in the beautiful City of Lisbon will make a jotter difference?

ANDREW STEER, CHIEF EXECUTIVE AND PRESIDENT, BEZOS EARTH FUND: Well, first, Richard, you are dead right. The oceans are in trouble. We know

they're losing species at an unprecedented rate, they're acidifying, we're losing coral reefs. They are polluted. Plastics are piling up. And

communities that depend on them are suffering massively.

So the question is what's different now? I think we are approaching a kind of tipping point whereby everybody realizes that the ocean isn't just

something out there, it is actually something that affects all of us.

QUEST: The problem is --

STEER: Let me --

QUEST: So, sorry, let me do jump in for a minute. Sorry, I thought you'd finished. The problem is, I mean, let's just take what happened in the

United States today, the US Supreme Court.

Now I know that's not relevant necessarily, but say to the immediate oceans. But here you do have differing opinions when it comes to public

policy, that some would say for example, that today's EPA decision has made the ocean's plight worse.

STEER: Well, it's made it a lot worse, of course, and there are many reasons why it's bad for American citizens, it's bad for the American

economy. It is dreadfully bad for the environment, of course, and it is bad for the oceans, because the oceans absorb 90 percent of all the

anthropogenic, the human made heat. They absorb a great deal of the carbon dioxide, therefore they are acidifying, therefore, they are warming. So it

hurts them a lot.

But I'm not a constitutional lawyer, so I can't -- I can't give my opinion on the legal issues. But what I can say is that, you know, EPA was

established by a Republican administration, the Nixon administration, one of the greatest environmental achievements of any country at any stage, and

it was set up to protect human health and protect the environment. And we now you know, tying one hand behind its back.

So, look -- but back to the ocean, the encouraging thing is that, you know, as of today, whilst there's only nine percent of the ocean that is actually

protected, there are now a hundred countries that are committed to go to what's called 30 by 30. We will protect 30 percent of the ocean by 2030.

And just yesterday, it was announced by the four countries -- Ecuador, Colombia, Costa Rica, Panama -- that they are announcing an entire, the

largest ever marine protected area. So there are some quite encouraging things that are happening

QUEST: Andrew, on this one, you're talking about a tipping point. Are we there? Have we tipped over yet?

STEER: Well, at the moment, we're heading towards a negative, let's just be clear. The question is, is there a positive tipping point whereby we can

change our entire mentality towards the ocean? We have an extractive mentality.

We treat the ocean as so vast that you can take anything you like out of it and you can throw anything you want into it. And you don't have to worry

because it's so vast, and now we're discovering, actually human beings through all of their trade, all of their pollution, all of the stuff

they're doing, actually, are really damaging the ocean.

We will suffer very badly as a result of that, because our economy depends upon it. Our trade depends upon it. Citizens depend upon it. And quite

frankly, the ability to get fish enough for us to eat is being seriously threatened.

So it's quite exciting. I mean, yesterday, we announced with a group of other philanthropists, a billion dollars to support this 30 by 30. Well,

we've never had that kind of scale of philanthropy before. So look, I mean, we are nowhere close to the tipping point we want. But we -- let's say the

second derivative, things are not getting quite as bad so quickly as they were.

QUEST: When we look, for example, at the cruise industry, and there are not actually that many cruise ships, which gets a bad rap at one level,

compared to what people think, there's actually not that many of them, but it is a growing industry. And I often wonder, whether or not the beneficial

aspect of more people experiencing oceans and understanding about them is offset by whatever sort of harm there may be as a result.

STEER: Well, that's an excellent point. What we need to do is what we actually can do now. We could shift for example the fuel that large ships

use. We could put in -- so that it's not damaging the environment.

We could actually also make them quieter. We could actually make them much more environmentally sound, and actually the shipping industry is waking



It's quite exciting now to see and what they are starting to do. The moment as you know, I mean, huge noise pollution hurts the fish; huge emissions

and pollution into the water hurts the entire ocean.

QUEST: Right.

STEER: It doesn't need to be that way. So, I wouldn't want to tell people don't go on a cruise. I'd say when you want to go on a cruise, find out

what sort of ship you're going.

QUEST: Sure.

STEER: What sort of comfort you're going with.

QUEST: Andrew, you and I need to actually meet and talk on the ocean. Thank you, sir. I'm grateful that you've joined us tonight from Lisbon.

STEER: Great. Good to see you. Thank you, Richard.

QUEST: Airbus is moving closer to its dream of hydrogen-fueled flight. The CEO, Guillaume Faury spoke to me about it at the IATA Conference, of

course, in Doha.

He discussed how Airbus is planning to lower emissions, and then we have of course, the ongoing dreadful difficulties that is thwarting travels coming

back, and that's where we head to begin.


GUILLAUME FAURY, CEO, AIRBUS: The bottlenecks are linked to the going out of a demand crisis, so everybody was running idle, and you have to start

this engine, again, from a very low level of production of activity. So actually, the difficulties are a bit everywhere, and that's the difficulty

of the very moments.

All material, logistics around the world, price of energy and supply of energy, but also, and probably mainly, availability of people, of skills.

We hear about The Great Resignation of 2021. I think it very much reflects the fact that companies have difficulties to find the skills in quality and

quantity to ramp up again.

QUEST: I know you're noticing inflation creeping in. I don't just mean fuel inflation, creeping into your supply chain, which you are then going

to have to -- I mean, your planes are expensive -- good value, I'll say, but expensive to start with the cost of a plane, but are costs going up?

FAURY: Yes, we see that goes going up through the supply chain. It is catching our doors as well. Yes, it will move into the labor and then you

have self-inflicted pain that is calling for probably three, five, maybe more years of inflation and that is very likely what is ahead of us.

That's why the governments, the Central Banks are so much worried and willing to raise interest rates, needs to tame the inflation moving


QUEST: If we look at Ukraine and the difficulties there, the inability to service those aircraft that are now within Russia, there are the insurance

issues in terms of those aircraft in Bavaria. What is your big concern now about those aircraft in Russia?

FAURY: The situation for the manufacturers is extremely clear with the sanctions. We cannot deliver planes. We can no longer deliver planes to

Russian airlines. We cannot service those planes. We cannot deliver parts. So, we have just cut doing business.

QUEST: Do you worry though that because they're continuing to fly those planes, but you can no longer service them or provide parts, even though it

might not be your fault, if one of those planes goes down, people will be saying, "Well, why didn't Airbus do X, Y, Z?"

FAURY: Well, obviously safety is our first priority and safety issues on off planes, even if we can no longer service them is something we take very

serious. But on the other hand, given the sanctions, we are of little help.

So we need to have the Russian aviation system, they align themselves to be very careful with what they do and we don't have any visibility in what

they do. So yes, indeed, it's a concern. I think Patrick Ky has been quite vocal recently on that topic. But we've seen example of Iran, where they've

been operating plane outside of the international community for many, many years. And with a track record, that is not perfect, but it's not so bad.

So we are completely relying on the maturity, the high level of maturity of the Russian aviation system to be very careful with what they do, because

we don't have a grip on it.

QUEST: Finally, to the hydrogen. You've almost staked the house on it, haven't you? You've almost put the bank on it and said everything on red,

everything on hydrogen.

FAURY: Well, that's not true. I mean, we believe very strongly on hydrogen. Yes, we are investing on hydrogen, but we're not betting the

house on hydrogen. We continue to invest on more fuel efficient planes, more connected planes.

We strongly believe in the need of sustainable aviation fuels, and we are enabling the increase of production of SAF. This morning, we signed a very

important agreement with Qantas. We jointly formed a fund with a quarter of a billion of Australian dollars of fund, 50/50 to support the increase of

the SAF industry where there is a big feedstock in Australia, in Australia.

So we're working hard on SAF as well, but yes we believe in hydrogen. Yes - -

QUEST: You love hydrogen.


FAURY: Yes, I do. Yes, I do. I really believe in hydrogen. That's the way to prepare the aviation of the future. No carbon in the air because when

you use hydrogen onboard the plane, there's no molecule of carbon that goes into the air, and we believe that's really a very, very forward looking

technological solution for the future of aviation. That's why we are investing so much in hydrogen.


QUEST: The CEO of Airbus on the question of hydrogen.

It is QUEST MEANS BUSINESS tonight. We're in London.

As we continue, Ukraine is claiming victory as Russia has abandoned Snake Island. Now, how this could open up grain shipments to the Black Sea is

crucially important, and as we look at the food crisis. We will get to that and the news headlines, of course, after the break.


QUEST: Hello. I'm Richard Quest. We have a lot more QUEST MEANS BUSINESS as we continue together.

Food security and the issue, we'll be discussing with head of Morocco's leading maker of pasta and flour.

And we'll be hearing from the CEO of Air New Zealand. The industry has got lots of volatility, but he has an interesting development, including a new

flight from Auckland to New York. It'll all get to that after the news headlines, because this is CNN, and here, the facts come first.

Ketanji Brown Jackson has been sworn in as the first Black woman in the US Supreme Court. She joins the liberal wing of the bench, replacing the

outgoing Justice Stephen Breyer. Her ascension will not shift the ideological balance of the Court. There is a six to three conservative


Israel's Parliament has voted to dissolve itself, thus ending Naftali Bennett's short run as Prime Minister. The Foreign Minister, Yair Lapid

takes over as caretaker in just a few hours.

It triggers new elections, a potential for the former Israeli -- former Prime Minister, Benjamin Netanyahu for a return to power.


Chocoholics beware: operations have been halted at the Swiss chocolate maker, Barr Ballebaut's Belgium plant because of salmonella contamination.

The company says it's the largest such factory in the world and the company says they are reaching out to potentially impacted customers.


QUEST: The message from the U.S. President was simple: NATO is more united than ever before. President Biden has wrapped up with the alliance's

historic and arguably most productive summits.

In the past two days, the leaders at NATO have agreed to invite Finland and Sweden to join. They have boosted their defense spending and increased

defenses in the eastern designee Russia at its most significant threat. The president, President Biden, vowed unwavering NATO support in Ukraine.


JOE BIDEN (D), PRESIDENT OF THE UNITED STATES: We are going to support Ukraine as long as it takes. Look at the impact that the war on Ukraine has

had on Russia.

They've had to reneged on their national debt for the first time since the beginning, almost well over 100 years. They've lost 15 years of the gains

they made, in terms of their economy. So they are paying a very, very heavy price for this.


QUEST: Now in Ukraine, a small but significant battlefield victory as Russian forces withdrew from Snake Island in the Black Sea. The two sides

disagree on what led to the departure. But Ukraine says its artillery finally drove them off the island.

Russia says its troops withdrew as a gesture of goodwill. Salma Abdelaziz joins me.

Never mind the who, whats or whys, does this allow more grain, is this going to ease the Black Sea port's ability to export grain?

SALMA ABDELAZIZ, CNN CORRESPONDENT: Russia seemed to indicate that that was part of the goodwill gesture. But more than anything, Richard, this is

a morale boost for Ukrainian troops at a time when they desperately needed a victory.

I just want to take a moment to remind everyone what Snake Island means, because it almost has this legendary status in Ukraine. It was one of the

opening scenes, really, of this conflict, when Russian warships pulled up to that tiny island, essentially a rock in the Black Sea.

And over radio and this went viral over radio, Russian warships told Ukrainian forces to surrender. They responded by using an expletive and

telling Russian forces where to stick it, really. Again, that was printed on T-shirts, it was carried all over social media.

So the fact that Ukraine is saying that this is a victory, we have been attacking this island by air, land and sea, we have forced these Russian

forces out, what they are saying is, yes, we are on the back foot on the front lines but we still have the ability to resist against this much

greater military might.

So it's something that really echoes to that sort of David and Goliath style battle that, at times, is happening with Ukrainian defenders saying

they forced these Russians out. Russia, of course, again for its part, playing a very different narrative, saying this is a goodwill gesture,

saying this might ease the blockade of grain.

And we do understand one ship so far has been allowed through the port of Berdyansk but there's no final conclusion here other than the fact that

Ukraine can claim this very symbolic victory, Richard.

QUEST: Right, so you talk about the David and Goliath.

But how much have this ability to go against Russia is because of the slingshot that has been provided by the West, in terms of much more

hardened battle missiles, artillery, equipment, the stuff that the Ukrainians say they want but not getting in sufficient needs?

ABDELAZIZ: Well, to continue your metaphor there, Richard, that slingshot is running out of ammunition, to be frank. Ukrainian defenders now, who are

using Soviet era weapons, rather, those Soviet-era ammunitions are running out at the same time.

They have yet to be trained fully on NATO equipment. That NATO equipment and all that provided aid that we hear that announcement of that takes

weeks because, again, Ukrainian forces have to be trained on it. It has to make its way to the battlefield.

There is really a race against time here because Russia is making those inch by inch gains. Just last week, taking more and more territory in the

Donbas, pounding Ukrainian forces, pushing them back, pushing them into surrender. So, yes, of course, Ukraine is a military and I don't think

President Zelenskyy would disagree with this.


It's a force that needs Western support in order to be bolstered against this much greater military might. The numbers here are astounding. Russia

has more manpower. It has, if you will, a greater appetite to use brutality, again, that pounding of residential areas. And it has the long

game here, Richard, right?

They all have reserves, they can carry out this war for years.

QUEST: Salma, thank you. Salma Abdelaziz in Kyiv for us this evening.

The Ukraine conflict and the weather conditions have driven prices of wheat. You know from your own grocery shopping but also on the market 23

percent. Saad Bendidi knows because he's the chairman of Forafric, an African agribusiness.

Been on the program before, sir, after your IPO. You specialize in wheat processing and distribution products in 45 countries. When we spoke last,

we were sort of aware of a food crisis in Africa imminent. But of course, the war was not fully -- we had not seen the full implications.

How much more are you now worried about what's happening?

SAAD BENDIDI, CHAIRMAN, FORAFRIC: Thank you, Richard. We have been affected, as any other producers in our areas by, I would say, the


But looking at the situation now, we are a little bit more comfortable because of our policy. We always have been able to diversify our sources

for procurement of wheat.

So for example, this year, we have imported from Latin America, namely Argentina or Brazil, from Western Europe, from northern Europe. So as of

today, we have a good visibility over the next six months.

QUEST: And that visibility tells you what, that we are going to continue to see these elevated prices, that the risk is still there for the

developing world?

BENDIDI: Yes, for your question, I would say there are two aspects.

The first: would we expect some shortage in the supply of wheat?

This is not the scenario that we are seeing as the most likely to happen at least for the next six, nine months.

But on the other side, we expect the prices to be maintained as quite high levels due to the fact that even, if the war ceases tomorrow, there will be

a delay to restore the capabilities for the ports and the infrastructure in Ukraine and in Black Sea in general, to restore the capability to export

and to have a smooth supply chain and freight routes to be reopened in a normal way.

QUEST: So what is it that you really need now?

As you look to set the agenda, what would be the number one thing that you are seeking?

BENDIDI: First is to be sure that we have business continuity, that we can serve our customers permanently. Whatever are the market conditions with

enough supply for our basic products, basic food, whatever they need, they will find it on the market. This is our first priority.


QUEST: And I know -- sorry --

BENDIDI: Sorry, Richard. For this, we have to be sure that, well in advance, we have covered, we have secured the procurement side and the

transportation also, which is critical to be on time in our warehouses.

QUEST: And at the consumer level, the ability to produce your foodstuffs without passing on the total weight of the inflation regain, because that

is, I mean, on one side, you have the problem of, can you get the stuff?

Is there a food shortage?

The other side is, can people actually afford to buy it?

BENDIDI: This is what we have in different levels with different answers. It depends on the countries. Certain countries have decided to support

partially the -- and to support the increase of price through special programs of subsidization. Others cannot offer because of their budget

constraints or their foreign reserve scarcity.


So it depends on the cases. We have decided to pass through what we can do but in a smooth manner and to make still our products affordable. So we

have certain pressure on our margins but we are trying to do our best to make some savings, et cetera, in order to maintain the affordably of our


QUEST: Saad, very grateful that you came on tonight's program. We always get real insight of what's happening into the -- particularly the

developing world's food market and infrastructure. Thank you for taking time out of your busy day, joining us from Casablanca this evening, where

it is at the same time as here in London, 8:40.

It is QUEST MEANS BUSINESS tonight. I'm in London. Call to Earth, remember, we are looking at highways, the natural highways. And tonight, it's the

sharks. Their waters are under pressure and threat. They are in need of protection. You will hear about it.




QUEST: On Call to Earth throughout the week, we are looking at how to sustain nature's highways. These are that natural and in many cases ancient

pathways that the animals use to travel around the world.

So to the Mesoamerican Reef corridor is the largest barrier reef in the Western Hemisphere. For marine animals, it's Highway 101. It's what the

makes sharks uses a natural GPS. The sharks may be terrifying. But as they go along their own Highway 101, they need protection along the coast of

Brazil and of Belize.


RACHEL GRAHAM, FOUNDER, MARALLIANCE: Sharks really do have a bad rap I have to say. And this is one of the things that we absolutely love to


BILL WEIR, CNN CHIEF CLIMATE CORRESPONDENT (voice-over): Rachel Graham loves sharks. She spent her life defending these ferocious predators.


GRAHAM: What we are seeing is a highly threatened set of species, that takes so long to mature that they don't usually have many young. And they

are so critical to the health of our oceans primarily because they help to regulate a range of other species that they feed on. So they keep the

populations in check.

WEIR (voice-over): Researchers estimate that while sharks killed 10 or fewer humans a year worldwide, humans are killing 100 million sharks in the

same time, primarily for consumption in shark fin soup, a dish popular in China and Southeast Asia.

GRAHAM: The primary threat to sharks is unquestionably, overfishing.

WEIR (voice-over): At the lighthouse atoll, 50 miles east of the coast of Belize, Graham is conducting a shark population census. But rather than

acting in opposition with the local fishing community, she likes to bring them on board.

GRAHAM: They are the ones who are on the sea, every single day. They have PhDs of the sea. And they are also the ones who are going to decide the

long-term fate of sharks. So if you do not engage, you will not be on the same page.

WEIR (voice-over): Graham is working with fishers to tag sharks as a method of gauging population levels in the Mesoamerican Reef, an important

corridor for migrating animals.

GRAHAM: The reef itself almost creates a barrier which creates a highway for animals to guide and navigate by.

WEIR (voice-over): But when they are traveling, species are at their own most vulnerable.

GRAHAM: Because they are predictable in their migratory nature and they get intercepted as they move from site one to site two.

WEIR (voice-over): Together they have learned that more sharks in the ocean means there's more varieties of all fish available, which benefits

the daily catch and also brings opportunities for ecotourism to the region.

UNIDENTIFIED MALE (through translator): For all my fellow fishermen, I want to give you this message. Conserve sharks because, in the future,

sharks can provide us with an income. Not being dead or by fishing them, by being alive.

WEIR (voice-over): The adaptations made by fishing communities have paid off along with a breakthrough piece of legislation.

GRAHAM: The first nation that has entirely banned nets in its marine waters.

WEIR (voice-over): Belize outlawed gill nets, a fishing gear that kills many large marine animals.

GRAHAM: What we're seeing now is nothing less than miraculous. We are seeing a comeback of sharks. Lighthouse, we've seen a300 percent increase

in sharks. My vision for this reef is that every time I roll over backwards from a boat, in order to dive or snorkel, I am going to at least see one


WEIR (voice-over): While this does not sound like everyone's idea of a good time, Graham promises it will be worth it.

GRAHAM: If we reverse the decline in sharks, I can tell you that means we will be reversing the decline in a range of other species that tend to be

associated with sharks and their critical habitats. So it is a win-win strategy for everybody across the board.


QUEST: Oh, it's wonderful. I love these highways.

Let us know what you're doing to answer the call, #CallToEarth.





QUEST: It's nearly 8:00 in the morning. That's a live shot from Queenstown, New Zealand, a major resort. Isn't that beautiful?

It's going to be a stunning day. The Southern Hemisphere, it is winter, coming into wintertime but lovely.

Why am I showing you something from New Zealand?

Because it is such an important tourist destination. The CEO of Air New Zealand has said that travel has changed and they are preparing a new

seating concept to keep up.

Most of the new gadgets and seats are in business class but ANZ has pioneered their Boeing planes with a Skynest, look at, them these are full-

size beds that economy passengers can book by the hour to stretch out and snooze.

It's going to be about 2024 or 2025 before they are there. But if you are taking those long air New Zealand flights to Los Angeles or New York, then

what is at the back of the plane can be important to you.

I spoke to the Air New Zealand's chief executive at IATA. He told me fuel prices are hitting the company hard and its passengers too.


GREG FORAN, CEO, AIR NEW ZEALAND: We are having to pass some of that on, Richard, so you were right to represent 25-30 percent of our long-haul

ticket price.

And when you've seen more than doubling in the price of fuel, which is what we have, so filling up a 787-9 going from Auckland to L.A., has gone from

$42,000 U.S. to $96,000 U.S. I un fortunately have to pass some of that on.

QUEST: There is no respite or doesn't appear to be much on the horizon.

FORAN: It doesn't feel to be, does it?

So most people are predicting this is going to be with us for a while. That leads to a really interesting question on, as the pent-up demand moves

through, what does that look like going forward as people are confronted with not just a fuel price increase but generally stagflation right across

the board?

So it doesn't matter whether we're buying spare parts or putting food on the planes, we are subject to inflationary pressures. So I think it is a

time of being bold in thought but cautious in deed.

QUEST: As a CEO, how does that translate in your decision making?

FORAN: I think one of the things that we have developed, particularly over these last 850 days, is a muscle of agility to be able to use that

wonderful world pivot and deal with different situations.

Once again, I think we are in a period of real volatility. It's complex. The wonderful lucre acronym that gets used, I don't think that's gone away.

So you've got to develop the skills within your leadership group and right throughout your organization. So culture becomes critical to be able to

move and adapt.

QUEST: You are saying you think it might be exactly the right time for a retail expert, a former retail CEO to come into it.

Why is that?

FORAN: Maybe not just retail but if you took retail as an example, Richard, talk about an industry that has gone through a transformation. You

know, 20 years ago, we were pretty familiar with how retail works. You find a location. It's important to get that location right.

You come up with the range of merchandise. You operate a Store you build distribution capability and off you go. Then along came Amazon and Alibaba.

And then you're in a situation now where next year the largest retailer in the world will actually be an e-commerce retailer. Talk about an industry

that has gone through significant change.


It could well be that, if we are sitting Doha in 10 or 15 years' time, we may well look back on this period and say that was a bit of an inflection

point. That was a period of significant change.

In terms of the customer proposition, the equipment we use to fly and it has got driven by a variety of factors, some of them external and some of

them driven by what customers are expecting out of the product.

QUEST: Finally, why did you do the job?

What was it?

What quintessentially was it?

FORAN: I think fundamentally, it comes down to taking a challenge. I had no idea that I would, having grown up in a small town in New Zealand, that

I would even get an opportunity to operate a retailer like Walmart in the United States.

What was I going to do next?

And they reached out and I thought about it and my wife and I sat down and we said, well, we'll give it a go. I've always been prepared to take a

risk. It just so happened that the day I started was the day that we stopped flying.

Our very first flight to China and I spent the next six weeks shutting the airline down. I actually realized about eight weeks into it, there was some

benefit in not completely understanding how the process worked because no one else really did, either, because it was so different. And instead, here

was a chance to reimagine it.


QUEST: Extraordinary. Air New Zealand has announced that its longest route yet, as always, it is the plane that is going to go from Auckland, New

Zealand, and more than 17 hours later it'll be in New York City.

It is one of the top five longest in the world. We will be on. It happens on the back end of October. We will make sure of full coverage. A

"Profitable Moment" after the break.




QUEST: Tonight's "Profitable Moment," or maybe I should say less than "Profitable Moment," the loss of wealth since the beginning of the year is

staggering, $8-$9 trillion wiped off the S&P 500. And there's no real respite in sight.

Yes, it's too late to sell. If you haven't sold by, now you are in it for the long haul. But what I think is really fascinating is how we rebuild

from here. Because we are talking about the 1970s. We are talking about inflation. We are talking about economic, macroeconomic environments, that

we have not yet seen for decades.

To be sure, there is globalization. There are greater markets, new ways of doing business. We are more productive for the same amount of people. So

the economy per se is not the same.

But the challenges are enormous. That is why anybody who thinks it is a buy on the dips moment is most certainly wrong. This is a wait and see. Wait

and see until things start to change.

That's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in London. What have you, I hope it's profitable.