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Quest Means Business

Central Banks Signal A Prolonged Fight Against Inflation, Germany Will Slash Sales Tax On Natural Gas To Just Seven Percent; Zelenskyy, Erdogan And Guterres Meet In Ukraine; Former CFO Of Trump Organization Pleads Guilty For Tax Crimes; No Agreement Between Serbia And Kosovo; Hadi Matar Pleads Not Guilty To Attempted Murder; Recent Bombings In Afghanistan Killed Or Wounded At Least 250 People. Aired 3-4p ET

Aired August 18, 2022 - 15:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[15:00:23]

RICHARD QUEST, CNN BUSINESS ANCHOR: With an hour to go when the markets will close, and it's a relatively quiet day or the markets have been taking

a bit of a breather. Don't get too frightened by all of that red. If you look at the numbers, you'll see we are just down 25 points, so it's not

been too bad a day, all things considered.

The NASDAQ and the S&P are slightly higher. I think we're in a range. We're in a summer range, looking for direction as they say.

The markets and the main events that I'm going to tell you about: A top Fed Governor tells us US interest rates will keep rising.

The Chief Executive of Dodge, can a muscle car also be EV?

And Mariah Carey tries to trademark "Queen of Christmas." Others in Hollywood aren't quite so chuffed about it.

Live in New York on Thursday, it is August the 18th. I am Richard Quest and I mean business.

Good evening.

Tonight, cold water is getting poured on any notion that the Fed or indeed any of the major Central Banks has finished raising interest rates. After

all Eurozone inflation climbed to a new record high today and Central Banks on both sides of the Atlantic are moving sharply.

As you can see the BoE, the US Fed, and the ECB all moving at a pace.

The Fed says more rate rises are to come after two consecutive moves of 75 basis points, three quarters of a percent.

The Bank of England raised rates this month by half a percentage point. It is the biggest move since the 1990s, and if you look at the ECB, officials

say they will support further increases next month after their first move in 11 years.

Now, the President of the San Francisco Federal Reserve says they are not done yet. There had been some thoughts that as inflation was coming off or

at least gave a scintilla of appearance of easing off that maybe the Fed wouldn't move quite so firm or fast.

Mary Daly said nothing like that to CNN's Julia Chatterley this morning.

(BEGIN VIDEO CLIP)

MARY DALY, PRESIDENT, SAN FRANCISCO FEDERAL RESERVE: I think it's way too early to declare victory on inflation, and remember that for Americans,

they're paying 8.5 percent more this year than they were last year for the same basket of goods and services.

So really, there is some relief and I was really pleased to see that, but I don't count on it. We have a lot of work to do at the bed to bring us back

to price stability.

JULIA CHATTERLEY, CNN BUSINESS ANCHOR, FIRST MOVE: Do you think that's the biggest mistake perhaps that investors, even consumers perhaps can make at

this moment is that now that we've seen, perhaps the peak reach and it starts to come off that actually, it will come down now of its own

volition, and actually that the Fed doesn't have too much more work to do.

DALY: Well, I don't think we can count on that at all. We remember that, you know, the number came down a little bit, but it was largely on the back

of energy prices.

If you look at core services and other things that people really depend on, you know, restaurant, meals, healthcare, the various things they do at

retail, those are still rising and those are things that hit people's pocketbooks directly and food is really still very high, energy prices

remain rising at a quick clip, even though they've come down a bit and housing and rent is very high.

So there's a lot of work to do. A lot of this inflation is demand driven, about half of it is demand driven, half of it is supply driven, that that

is built to help the part that's demand driven and so we will continue to raise the interest rates and get it right sized for the economy we have.

CHATTERLEY: When we think about what is going to happen in September for the Federal Reserve, you've said that you have an open mind, but your base

case is half a percentage point.

I think if we look at the importance of trying to prevent these rising prices and bring rising prices or slow rising prices relative to the

relative strength, let's call it that, for example, in the jobs market, even the resilience I think of purchases and retail sales in this country,

is there an argument to be made that actually more rather than less can be done by the Federal Reserve here and perhaps should be done?

DALY: So I'd like to distinguish, I think it is a really good opportunity as we get to the September meeting to distinguish between two different

things.

One is how high we need to raise the rate, too, and my own idea is that we need to get a little bit above three by the end of the year.

[15:05:13]

And the second question is, how quickly do we need to get there?

And my own view on that is that, you know, 50, or 75 seems reasonable. I will get -- as we get closer to the meeting, we'll have more data coming

out. We have another inflation report, another employment report, we'll look at that against the dashboard of other indicators we observed

including global economic conditions.

We will make a decision, but ultimately, we need to get the rate up, beyond up to neutral, at least, which is around three percent, but likely to

restrictive territory, a little bit above three this year and a little bit more above three next year. That's just the kind of interest rate path,

financial conditions, the tightness of financial pitches, we need to bridle back the economy a bit and slow the pace of inflation.

CHATTERLEY: Very quick question and it ties to what else is going on in the world and you've talked about it, and I've not really seen anybody

else. The synchronicity of tightening going on all around the world, and how much the Federal Reserve focuses on that, as you're making your plans,

too because it does have a huge impact on all of the things that we've discussed, but for various different reasons.

How much of a focus is that global tightening while the Fed is tightening?

DALY: I'm certainly thinking about it a lot as all of us do. The reason we think about it is there is a variety of reasons. First of all, global

synchronization of interest rate tightening basically means that global financial conditions are tightening more than just the Federal Reserve

tightens the interest rate. Right?

So those are just -- we have to keep that in mind because that has an amplification effect, if you will. The other thing and you see this in some

of the estimates are the projections of growth in Europe, for instance, facing, you know, hardships that could be recessionary and that is a

headwind for US growth, and by a headwind, I mean, if you're walking outside and you feel a big wind blowing against you, you have to put more

energy to it.

Well, we don't know if it'll be really like a gale force wind or just the light breeze. But what we do know is we are facing a global economy that is

growing slower, and that will push back against US growth and we have to take that into consideration as we ensure that we don't overdo policy.

We don't want to under do policy and then find inflation that gets embedded and it's hard to unwind, but we don't want to overdo policy either, and

find that we've tightened the economy more than necessary that would just be an unforced error.

So really, this is a balancing act of making sure we're doing enough and making sure we're not doing too much as we look at all the risks out there.

(END VIDEO CLIP)

QUEST: And if you look at the way they're doing it, Mary Daly was saying, looking at what they say they're doing, but interpreting what they mean.

So yesterday, of course, last night, we got the latest Meeting Minutes, and that revealed a great deal about what they're going to bring down

inflation. So here is what they said and really what they mean.

The Fed said its forceful policy actions and communications had already contributed to a notable tightening of financial conditionings. That means

rate hikes are having an effect.

The Fed said moving to a restrictive stance of the policy rate in the near term would be appropriate -- see the word "restrictive stance," what they

meant, they're willing to cause more pain.

And finally, what they said, it would likely take some time for inflation to move down to the Committee's objective. What does that mean? This isn't

going away anytime soon.

Rahel Solomon is with me. We look -- we listened to what Mary Daly was saying, we look at what the Fed said and we factor in what other Central

Banks are doing, because as the President of the San Francisco Fed said, they watch closely because it has an amplification of their own tightening

policy. So, what is everyone saying?

RAHEL SOLOMON, CNN BUSINESS CORRESPONDENT: Well, everyone is saying pretty collectively that more tightening is to come, right?

I mean, you laid out pretty perfectly there, Richard, the different Central Banks that we've heard from, from around the world. I might also add,

Norway's Central Bank also saying overnight that it is hiking 50 basis points and that more are likely in September.

So the consensus is that more tightening is to come. We're also seeing slowing growth, which Mary Daly just pointed out, and I would point, too,

there are still although headline inflation is easing, some would say moderating, when you look under the hood, which Mary Daly was alluding to

there, there are still troubling signs that inflation is accelerating.

Take shelter, for example, or what others might call around the world, accommodations, essentially how much it costs to put a roof over your head.

Richard, that is still accelerating and by the way, accommodation, shelter that makes up one-third of headline CPI, that is still accelerating.

In fact, the Fed just put out some research yesterday suggesting that because of the way that that calculation is calculated, that's likely going

to be with us for at least a year. So that's going to have an outsized impact in terms of inflation. Food inflation continue to rise.

And yes, we saw energy prices fall and that is the reason why we saw that headline inflation start to fall, but as the Fed has pointed out in the

past, that is an external factor that is very volatile. So we know that those prices could go either way and if they go higher, we're going to be

talking about inflation reports that look very different than the last few.

QUEST: Rahel Solomon, thank you.

Germany is slashing taxes on natural gas. Beginning in October the sales tax will go from 19 percent, it will be reduced to seven percent. It

follows the government's announcement of a new levy tacking on nearly 500 euros to individual gas bills.

Hundreds of protesters booed Chancellor Olaf Scholz over the decision this week. Now, the Chancellor hopes a tax cut will ease public concern.

(BEGIN VIDEO CLIP)

OLAF SCHOLZ, GERMAN CHANCELLOR (through translator): Rising energy prices are a major burden for many people. The Federal government has agreed that

gas consumers should not be burdened with additional costs as a result of the compulsory collection of VAT and gas levies.

In the coming weeks, we will conclude a third package of measures to ease the pressure on individuals and businesses. I have said it before --

You will never walk alone.

(END VIDEO CLIP)

QUEST: Clare Sebastian is with me from London.

Let's ignore the English if you like of, "You will never walk alone." But the reality is they have this gas tax, and now, he's got to unwind it by

giving away something back to those who are most suffering from it, but you can't avoid the underlying position, which is things are going to get

worse.

CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT: Yes, Richard and the government is grappling with these competing forces, so benchmark gas

prices in Europe are nine times higher right now than they were this time last year. That is really hurting the energy companies.

Germany's gas giant, Uniper lost 12 billion euros in the first half of this year. It is being bailed out by the German government. The point that the

Vice Chancellor made when they introduced this original levy on gas, which is going to come into force on October 1st was that the options were not

either a levy or no levy; the options were either we bring in this levy or the German energy market will collapse.

So now, what they're trying to do is reduce the burden on consumers. They weren't allowed to completely exempt gas from VAT and the EU State aid

rules, so they had to just reduce VAT from 19 percent to seven percent.

The Chancellor, he says that this will reduce the burden on consumers more than we are adding to it. But I think there is a bigger question beyond,

Richard, whether this will work. There's a question about whether it should work.

The IMF in a blog post on August 3rd, they said the governments in Europe should allow the full increase in fuels cost to pass to end users to

encourage energy saving and switching out of fossil fuels policy. They say, it should shift from broad based support such as price controls to targeted

relief, such as transfers to lower income households who suffer the most from higher energy bills.

The question is, should they be subsidizing energy at a time when they are supposed to be incentivizing reduced demand? So there is criticism around

this as well.

QUEST: Yes, but I suppose it's fine for the IMF to criticize from the sidelines. A: They don't have to face an electorate; and B: You know, they

have different priorities.

But on this question of stimulating economies or at least providing assistance, I'm thinking of the UK now, and Liz Truss who is running to be

the next Prime Minister of the UK. Her idea of tax cuts at a time when the Bank of England is raising interest rates. Is there a contradiction in many

of these European government policies between when you've got the Central Bank restricting and restricting means it's going to get painful?

SEBASTIAN: Richard, look, I mean, there are a lot of contradictions out there today at the moment. Central Banks are having to raise rates to

combat inflation at a time when we're heading, possibly or already are in recession in the UK, perhaps in parts of Europe, as well, and that things

could get worse.

So this is why we are seeing this sort of confluence of tightening of monetary policy, but also adding fiscal measures. The risk, of course is

that these fiscal measures will add to inflation, which then complicates the job of the monetary policy people even further.

But in a sense that the politicians feel that they have to do something because this is such an extreme situation, the pain is going to be so

keenly felt.

A German comparison website notes that German electricity bills are right now 30 percent higher than they were last year. UK electricity bills or

energy bills are about 50 percent higher so far this year, set to double again by January.

There is evidence also according to the IMF that these high prices are already leading to demand destruction and bringing down demand that is

potentially a good thing going into winter, but it shows you as well the pain that consumers are facing.

And that is why I think Germany has taken it upon itself to act not so much in a targeted way, but across the board with this VAT cut.

[15:15:18]

QUEST: But Claire, this notion and Mary Daly talked about it to Julia, this notion that somehow inflation is already easing, Rahel went into the

details, this idea that it is somehow easing that it is all over by the shouting. I mean, we're talking about getting inflation down from eight,

nine 10 percent down to two percent to three percent. This is going to go well into 2023.

Do you think we have -- do you think the public -- us, you, me, anybody -- we've sort of naively believed it could all be done much quickly?

SEBASTIAN: Yes, I think so, Richard, but I think it is also beginning to dawn on everyone, especially as we head into winter here in the UK, for

example, the Bank of England predicts that inflation will peak around October sometime in the autumn at 13 percent. Thirteen percent is so far as

you say, off the target of two percent that bringing that down, of course, has to come at a price.

And I think, look, all of us are starting to realize that we're not outside of the story that this is going to hit everyone. I think, really it's just

starting to come to light now and that is why we're seeing these dramatic measures.

QUEST: Clare Sebastian, thank you.

Now, of course, we are celebrating Summer Fridays and tomorrow, while inflation may have wreaked havoc with the travel industry, the pandemic

certainly did that.

This Friday, QUEST MEANS BUSINESS, we're coming live from the TWA Hotel at New York John F. Kennedy, a living piece of aviation history. The travel

sector tomorrow night, a TWA Summer Friday, only on QUEST MEANS BUSINESS.

Coming up, desperate times, desperate measures, facing blistering heat -- China is trying to make it rain.

(COMMERCIAL BREAK)

QUEST: It has been a major achievement and the grain is now flowing, only don't relax just yet. It's the message from these three world leaders.

They were in Lviv for crisis talks. The UN Secretary-General, Antonio Guterres says 21 grain ships have left Ukraine in a month after the

emergency export deal that was negotiated by the UN and Turkey. Now, you see of course President Erdogan also there.

[15:20:01]

Fears are growing over the safety of the Russian-occupied Zaporizhzhia Nuclear Power Plant. Turkey's President has warned it could be a new

Chernobyl if fighting nearby continues.

CNN's David McKenzie is with me from Kyiv.

I sort of have a nasty attack of the collywobbles every time I hear that, you know, this idea of fighting near a nuclear power station, fearing that

whatever the design in intent, it only takes an accident and we're all in trouble.

DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: Absolutely, Richard, it's a very worrying series of events that have happened at Zaporizhzhia Power

Plant to the south of where I'm standing.

I think, primarily, the worry is not necessarily as I've been speaking about a direct strike on any of those six reactors, but it is more the

power supply to that reactor system that is very worrying.

The Russians and the Ukrainians both say that they are power issues, they of course, have backup and backup to the backup power to those plants, but

if that power goes down, it's what's called a "station blackout" and it means that there could over a period of time be some kind of leak or

meltdown, so it is very worrying, Richard.

Those leaders meeting today didn't appear to make much progress on the fundamental issue here, which is they agree that there should be an

inspection team going to that site, but the Russians have not agreed and since that territory is controlled by Russian forces, until they do or

until there is some other scenario that won't happen.

Take a listen to the Secretary General.

(BEGIN VIDEO CLIP)

ANTONIO GUTERRES, UN SECRETARY-GENERAL: Military equipment and personnel should be withdrawn from the plant. Further deployment of forces or

equipment to the site must be avoided. The area needs to be demilitarized.

And we must tell it as it is, any potential damage to Zaporizhzhia is suicide.

(END VIDEO CLIP)

MCKENZIE: Well, to get the inspectors there, they have to get the military out and that is something the Russians are just not looking to do at this

point -- Richard.

QUEST: David McKenzie, who is in Ukraine in Kyiv tonight. Thank you, sir.

Two investment banks are cutting their forecasts for China's economic growth this year. Goldman expects around three percent. Nomura is even more

pessimistic, down at 2.8 percent in terms of growth.

Downgrading from much higher levels. 3.3 percent as COVID lockdowns, a real estate crisis and now the crippling heatwave is all taking their toll.

The position of China's economy, as the second largest, of course is somewhat powerless, and it promises to have grave repercussions for

everybody else.

CNN's Kristie Lu Stout now on the report that China's heatwave could actually grow worse in the coming days.

(BEGIN VIDEOTAPE)

KRISTIE LU STOUT, CNN CORRESPONDENT: Officials across China are scrambling to alleviate the effects of a prolonged and intense heatwave.

The City of Chongqing has suspended factories for a week in a bid to save electricity. Chengdu has put its metro system on power saving mode, and

Hubei Province is seeding clouds to literally make rain. This involves shooting clouds with silver iodide rods to induce rainfall.

This is a practice that's been in place in China since the early 1940s. It was used during the Beijing Olympic Games in 2008.

For more than two months, parts of Eastern, Southwestern, and Northwestern China have been enduring extreme heat. China has issued a Red Alert heat

warning to at least 138 cities and counties. This is the highest warning that could be issued and it indicates expected temperatures of around 40

degrees Celsius or 104 degrees Fahrenheit. China has also issued an orange drought alert to at least 75 cities and counties.

Chinese authorities say it is the strongest heatwave recorded since 1961. In a statement, China's National Climate Center says this: "The heatwave

this time is prolonged, wide in scope, and strong in extremity. Taken all signs together, the heatwave in China will continue and its intensity will

increase."

Since June, the extreme heat across China has threatened livestock. It has disrupted crop growth and forced factories to shut down. In fact, Sichuan

Province, a key manufacturing hub that's home to 84 million people has ordered all factories to shut down for six days this week to ease a power

crunch.

The high temperatures are expected to continue in the Sichuan Basin and large parts of Central China for at least another week.

Kristie Lu Stout, CNN, Hong Kong.

(END VIDEOTAPE)

QUEST: Now, I want to show you the markets we before we take a short break where, oh look at that we're actually positive. My word. It just shows you,

turn your back, take your money and you take your choice. We are actually positive. I didn't think that was going to happen. Not sure why it has.

I don't think we need to get too excited about it because it is only up 37 points, but what's interesting is if you now look at how the Dow is

mirroring the S&P and the NASDAQ, all of whom have put on weight today.

[15:25:13]

The NASDAQ is hovering at 13,000, around -- there you go, 13,000 on the nose as even we are speaking. You've got the Dow over 34. You've got the --

there we go. It's going to be sort of a green arrow, I suspect by the end of the day. Who knows?

As we continue, it is QUEST MEANS BUSINESS tonight.

One of the richest men in the UK says he is interested in buying Manchester United. So how much? And more importantly, will the Glazer's sell? That's

the big question. Never mind who's buying? But is anybody selling?

QUEST MEANS BUSINESS.

(COMMERCIAL BREAK)

QUEST: I am Richard Quest. We have a lot more QUEST MEANS BUSINESS together.

We'll be talking about Dodge's new muscle car. It is an EV. Is it a contradiction in terms to say a muscle car is also EV? The Dodge CEO will

answer that in a moment.

And Mariah Carey, "All I want for ..." you know the song, well, can she trademark as being the true Queen of Christmas. We will discuss that under

trademark law.

But you are watching CNN and here, the facts and the news always come first.

A Florida Judge is setting in motion the possible release of parts of the affidavit that led to the search of Donald Trump's Mar-a-Lago home. The

Judge said he is not convinced that the entire document should remain sealed. It's given the Justice Department until next Thursday to argue for

certain sections to remain redacted and confidential.

The former CFO of Trump's family business has pleaded guilty to evading taxes in a long running tax scheme. As part of the deal, Allen Weisselberg

has agreed to testify against the Trump Organization in many possible future trials.

The agreement directly implicates, say the prosecutors the former President's business in a wide range of crimes.

[15:30:12]

In Brussels, crisis talks took place between the E.U., Serbia and Kosovo. The talks ended in no agreement. Tensions have flared after Kosovo said

Serbs living in the north would need I.D. cards and licensed plates issued by Kosovo (INAUDIBLE) Serbia in terms of protests, foreign policy talks

will continue in the coming days.

And the man accused of stabbing the author Salman Rushdie is being held without bail, Hadi Matar was in court in Chautauqua, New York a short time

ago, he pleaded not guilty to attempted murder and assault charges. Rushdie was attacked on Friday at a lecture he was due to give. Today, the county

district attorney said Rushdie's condition is improving.

The U.N. now says a recent series of bombings in Afghanistan has killed or wounded at least 250 people. The latest explosion on Wednesday ripped

through a mosque in Kabul and killed 21 people. The U.N. is urging the Taliban to take more action to protect prevent acts of terror.

The British billionaire Jim Ratcliffe said he's interested in owning Manchester United. Now, he's already a major shareholder of the chemical

group Ineos and he owns other European clubs. And Ratcliffe made an unsuccessful bid to buy Chelsea earlier, of course, in the year. And he

said he only was going after Chelsea Man Utd wasn't available.

So, is Man Utd is one of the world's biggest clubs even available to him to take a stake in it? The joke tweet from Elon Musk that you and I talked

about yesterday got fans excited about a change in ownership. Musk has clarified he is not buying the club. And yet, investors want and like the

speculation. The shares were up. They're up some 2.5 percent.

Alex Thomas with me. So, let's deal with facts. Are the Glazers selling even a stake in Man Utd?

ALEX THOMAS, CNN WORLD SPORT: We don't know, Richard. It all comes from a report from Bloomberg, obviously a respected financial media company, but

it has led to this flurry of excitements.

And Manchester United remain a hugely popular global soccer or football brand despite having not been crowned champions of England since 2013. The

results on the pitch have plummeted far quicker than their overall value as a football brand. No wonder they're so, you know, attractive to a potential

buyer, and one which, of course, is the Ineos billionaire Jim Ratcliffe. Who already has ownership in other sport teams like the Ligue and club Nice

(ph). He also owns a third of the Mercedes Formula One Team, which have Lewis Hamilton driving for them.

So, he's not a stranger to investing in sports prospects. Although, if there is going to be a sale, the reports suggest it would be a minority

stake of Manchester United. Whereas reckless history suggest he prefers full ownership.

QUEST: The real problem, of course, is if it's not for sale, you don't really know who would be interested in buying. My guess is, if it became

known a stake was up for grabs, then they would come out of the woodwork. There would be a lot of people who would say, I want to have a look at

this.

THOMAS: Yes. I think the talk is that maybe, you know, two of the leading Glazer family who run the club on a day-to-day basis are still interested

in long-term ownership, but some other members of the family are worried about the harm and the damage being done. They are bottom of the Premier

League right now after the first two games of the Premier League season. They have been at the bottom of that table for 30 years since the very

first season of the Premier League, when it was launched as a new entity after the old English Division One.

So, really, the results from the pitch are going the wrong way that happened for many years.

QUEST: OK. Let me just finish on that, because, as you know, I don't follow it too closely. But why has Man Utd lost its way? I mean, you can go back

to -- you can go back to all of those things and say, it's never been as good since 2013. What's gone wrong in your view?

THOMAS: You can't replicate someone like Alex Ferguson. He was the one-off manager and coach. He wasn't just about drilling the team and tactics. He

had huge control over which players came in and bought. He reinvented the Manchester United team over sort of three or four iterations.

Other big-name coaches have come in, but feeling is the structure as a football club is wrong because the Glazers are too hands off and haven't

invested properly, unlike say the Tampa Bay Buccaneers, the NFL team own, which were Super Bowl champions as recently early as 2021.

QUEST: So, they can do it?

THOMAS: Just not United so far.

QUEST: Good to see you, sir. Thank you. I'm grateful. Thank you.

[15:35:00]

It's QUEST MEANS BUSINESS tonight. Christmas is coming early for trademark lawyers. Mariah Carey is trying to claim the title of queen of Christmas.

One singer is pushing back, saying the title can't be owned. Who is the true queen of Christmas?

(COMMERCIAL BREAK)

QUEST: "Call to Earth" with coral reefs across the globe that are seriously under threat. A Brazilian scientist says much of what we know of these

coral reefs comes from the shallow water. So, now, on "Call to Earth," the Rolex Awards laureate Luiz Rocha takes us to depts that few dared to go to

learn about these fragile marine ecosystems. And in doing so, the species that they discover in the process.

(BEGIN VIDEO CLIP)

LUIZ ROCHA, CURATOR, ICHTHYOLOGY AND CO-DIRECTOR, HOPE FOR REEFS INITIATIVE: From the shallow reefs that everybody is used to seeing, they

are very diverse ecosystem. There are many, many species occurring together, living together in very close proximity. The deeper you go, the

less energy the ecosystem has, so the less sunrise sunlight reaches a deeper reefs. And because of that, there's a lot less species.

When you get up close, it's still a very colorful ecosystem. There's many, many different kinds of fish. And many of them are unknown. In the past 10

years, I think I discovered about 30 new species. My name is Luiz Rocha. I'm curator of Ichthyology and co-director of the Hope for Reefs Initiative

at the California Academy of Sciences.

Ichthyology is the study of fish. I've always been fascinated by fish. Always had aquariums in my house growing up. Almost everything we know

about coral reefs comes from the top 30 meters or so. That is the limit of recreational diving.

[15:40:00]

The ocean's twilight zone, the portion that I study, it's the coral reef between 200 and 500 feet. The technical term for it Mesophotic Coral

Ecosystem.

Diving at those deaths is very different. And that requires a lot of training. Because very few scientists do it, a lot of things about this

region are unknown. So, every dive we do to those depts is a new discovery. It's very demanding to dive at those levels for a human. It's lots and lots

of preparation, concentration.

And then, going down, the anxiety is really great, because everything gets dark and then, everything gets calmer, colder. And then, when you get

there, we know why we are there. When we see something that nobody has ever seen before, it's absolutely amazing.

Coral reefs are under tremendous threats. They are suffering because of overfishing, pollution, fishing pollution, plastic pollution, even in

places that nobody has ever seen before. So, that was one of our first discoveries that those deeper reefs are really not a refuge for shallow

reef organisms. And then, at the global level, the biggest threat today is climate change. So, the waters are warming. They're warming everywhere in

the planet. And the warmer they get, the worse it is for coral reefs.

So, when coral bleaching happens, the corals, they can starve to death. The deeper reef corals, they also bleach. What we are trying to determine now

is what the scale of the bleaching is on the deep reefs. It's really important to protect them and to protect them now before they get

completely destroyed.

I don't think it is enough just to do the science or take many, many photographs. We bring those stories back up to the surface, something we

share with as many people as possible. I think it is extremely important to engage local communities about their own reefs. We early using local names

to name the fish, because it gives ownership to the local people, and we also always engage with policymakers everywhere we go to try to increase

protection on shallow reefs and deep reefs.

And for the most part, when people realize that those reefs are there, they move towards protecting them.

(END VIDEO CLIP)

QUEST: That was -- all those species that had never been seen before. I don't live by -- I'll be honest, the mere thought of going underwater like

that sends me into hives. But, oh, that was phenomenal.

Right. The -- what are you doing to help the world, to help the earth, to help the climate? Answer me, with hashtag call to earth. QUEST MEANS

BUSINESS.

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[15:45:00]

QUEST: I've got a question for you. How important is it to you the noise that your car makes? Your vehicle? I mean, does it matter if it purrs like

a Lexus or that it's so silent like a Tesla that you would run over somebody by accident or do you want a noise?

Well, Stellantis, the company behind the Dodge brand had to come up with exactly that issue. And the car the Dodge is famous for muscle cars, the

charger, the challenger, the noise, the roar, the whole thing. So, when these models announced they were stepping into the EV market, the question

was, where they're going to do away with the noise and fury loved by the grunt of the car?

The division says it is created its own way to deliver the visceral feeling and the sound of the muscle car. What do you think?

Now, there's also a practical reason behind the move to electrification. And needless to say, sales of Dodge's traditional muscle cars are down this

year and it follows a downward trend over the last decade or so. You can see the numbers.

Timothy Kuniskis is the Dodge CEO. He joins me from Michigan.

I love this story. I mean, we're all obsessed by it because it's this idea that you -- you know, the car is great, and I remember during this with

other high-performance cars, Porsche, Aston Martins and the like. Can you make an EV version that consumers are happy with? And that really is a

challenge for you.

TIMOTHY KUNISKIS, CEO, DODGE: It was a challenge. But I think we are coming at it from a very unique place. And honestly, as Dodge, we did not have any

choice. The sound of our cars is a very signature part of the experience of owning a muscle car. So, there was no way that we could make this

transformation to electrification and lose the noise. Our customer want a loud pedal in their car no matter what's making its move.

QUEST: So, how did you make that noise? I mean, you obviously have to add something to the exhaust and you have to put a bit of something to mimic

the gears, which, of course, you don't get in an EV.

KUNISKIS: So, what we did was we went back and we studied what actually makes the sound of a gas engine. And everybody knows you burn the gas, it

ignites, it moves the piston. But ultimately, what your ear hears is just the movement of air. So, we studied the movement of air under every

circumstance in our Hemi V8s today, whether you're accelerating, decelerating, just starting the car, shifting, downshifting, under extreme

loads, drag racing all of it.

We studied all those soundwaves and then, we said, OK, what if we take those soundwaves, that movement of air and modernize it? And we came up

with a very fresh modern tone, kind of like a shrieking sound. And that's why we call our highest end version the banshee. But we knew that we

couldn't have something that was so forward-looking that it would be uncomfortable for the transition for our current owners, for our current

gas engine owners.

So, what we did was, in the base track of the sound, we took the firing order of a Hemi V8 and the base track is literally the firing order of a

Hemi V8 with the screech on top of it. So, the sound is literally created from all of the inputs that you would have a normal gas car.

QUEST: Right. Right. So, let's listen to the sound. Let's have -- let's hear it a couple of times. Go on.

So, is the sound being artificially created? Is it an electronic sound, a purely digital sound that reacts as you put the foot on the accelerator and

the brake or is some element of mechanics about?

KUNISKIS: It's mechanics. We actually patented it. And we patent it as the first ever electric vehicle exhaust system. And the reason why we call it

an exhaust system is it literally has pipes, like an exhaust system, a chamber, chambers within the chamber in an exact exhaust outlet, an exhaust

pipe outlet back of the car. And it's one of the things that makes it sound different.

[15:50:00]

Some people try to create sound and they pumped it inside the car with speakers, but your brain quickly figures out that it's not connected to

what is happening in the car. We actually send it out through a tailpipe in the back of the car. So, that spatial difference of hearing it outside the

car and behind you is almost like the first time you've ever heard surround sound in a theater, it really kind of connects you to the experience.

QUEST: So, at the end of the day, the car has to perform. And we know that EVs are the future. And eventually, by law, every car will have to be an EV

in the fullness of time. So, you didn't have a choice in that sense, it's how you do it and maintain your heritage. But the performance, what I find

fascinating is your price point of your cars, your entry price point. $30,000 or so.

It is designed for the working man and woman to buy, to live, and to enjoy, isn't it? It's not an upper end luxury foible.

KUNISKIS: A lot of brands sell walk-up features, leather sunroofs, things like that. Dodge doesn't do anything like. What we sell is escalating

power. So, we want to make sure that we're in an accessible price point for anyone that wants to join our brand. But the more power you want, the

faster you want to go, that's where the excavation in price comes.

So, yes, our highest performing, most powerful versions, yes, they are expensive. But we also make sure that we have an entry position for anyone

who wants to join us.

QUEST: Very glad we had you tonight on the program, sir. We're very grateful. Thank you. Very much indeed.

KUNISKIS: Thank you.

QUEST: Now, how about this? A bit early to hear Mariah Carey singing "All I Want for Christmas," but she is there somewhere singing along with it. But

--

(MUSIC PLAYING)

QUEST: OK. I claim the prize for the first Christmas story as such. Well, when, Mariah Carey said that she wanted to trademark being queen of

Christmas, others weren't too cheerful. The effort has brought her into some criticism. The holiday song writer Elizabeth Chan is filing a petition

claiming that she is it. The Grammy winner, Darlene Love, says she was the queen of the Christmas three decades before Carey's song came out.

And Shahrina Ankhi-Krol is an attorney specializing in intellectual property. So, does she stand a chance of winning the phrase queen of

Christmas?

SHAHRINA ANKHI-KROL, ATTORNEY, ANKHI-KROL LAW: Well, you know, it's a really good question. And thank you for having me.

As many people don't realize, trademarks are only granted by international clause, which basically is a category. So, it depends what Mariah Carey is

actually wanting to be looking to register. Now, I had a chance to quickly look at her application, which was filed last year, in 2021. And she has

apparently applied for a whole slew of (INAUDIBLE).

You know, it depends on what it is that she is actually going to be able to put out into the stream of commerce that we were going to be able to tell

whether or not, you know, there is a good chance for her.

QUEST: Right. It just -- it sort of leaves a slight sour taste though, doesn't it, when you've got all these old crooners coming out, saying,

well, hang on a second, I was the queen of Christmas. And whatever the technical rightness of her wanting for perfumes, for dolls, for household

Christmas knick-knacks, to appropriate it in such a way leaves a taste.

ANKHI-KROL: I'm sorry. Could you repeat that?

QUEST: Well, to appropriate queen of Christmas in such a way will leave a sour taste to others.

ANKHI-KROL: Well, yes. You know, that's really why the other singers are complaining, right? Because they also want to be known as the queens of

Christmas. And the main idea that they're coming, you know, for her, really, is that they don't want to give up that title of being queen of

Christmas.

However, what we have to remember is, trademark certainly granted for those items, those goods and services for which you actually have put into

commerce. Now, is she going -- is Mariah going to be able to prove to the United States Patent and Trademark Office that she is actually known as the

queen of Christmas for all the things that she has applied for? So, that remains to be seen.

QUEST: Good to talk to you. Thank you so much. I appreciate your time.

ANKHI-KROL: Thank you.

QUEST: Thank you.

[15:55:00]

Now, I want to show you how we are ending the day on Wall Street. So, look at that. The Rally picked up steam and is now evaporated again (INAUDIBLE)

down. It really does show you the way the market is moving at the moment. And that sort of, I think, we're in a moment where we can't decide, do we

continue in a bull -- well, not bull. But do we continue to sort of to add on weight, or do we take a breather, which what seemingly happening.

Now, the three other -- the major indices are all similarly betwixt and between. They're just now off the tops of the day. So, they've given back

some of their gains that the NASDAQ has, and the DOW 30. Let's look at that, because that will show us.

So, there you have companies you don't -- you've got Verizon at the bottom, and you've got Cisco at the top. So, that's under unique reasons. Boeing in

the middle. So, Boeing is not a factor today. It's only up by 1 percent. It was not a major factor. But look at that middle glut. From P&G to Disney,

to McDonald's, to Home Depot, that middle glut tells you the market is going nowhere at the moment, that consumers are just basically waiting and

see, see what's happening.

We'll have more (INAUDIBLE) in a moment, that's after the break. QUEST MEANS BUSINESS.

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QUEST: Tonight's profitable moment. So, Mary Daly speaking to Julia Chatterley basically said the truth that dare not speak his name, which is

that the fed, and indeed, I can add to that the BOE and I can add the ECB, the Bank of Australia, and the Norwegian Central Bank, and on and on.

They're not done yet.

There is this view that because inflation is sort of seemingly weirdly just eased, not even eased, it's just softened, that it's all over. And I think

that's the mentality that basically, in the 1980s and '90s, we used to say, it will all be over by the end of the show at 11:00 in time for the news.

And today, in the social media age, we seem to think that no monetary policy will deal with it all before 5:00 and we'll all go home. Not a bit

of it. We are in the middle of this and it's going to take months. It's going to take seriously months, well into next year, late next year before

we start to see the benefits of higher inflation -- higher interest rates and it's going to be painful. And that's the truth they dare not say, that

you can alleviate for the vulnerable. But ultimately, it is going to be painful

And Mary Daly gave us a very good idea tonight that that really is where we are. So, this idea that the inflation fight is over is absolute rot.

And that's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, I hope it's profitable. Join me

tomorrow, I'll be at the TWA Hotel at Kennedy Airport.

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