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Quest Means Business

California Set to Ban Sale of New Gas Cars from 2025; US Markets Slightly Higher Ahead of Powell Speech; Sierra Leone Protesters Worry Cyber Crime Law Is Enabling Crackdown; Call to Earth; Judge Orders Release of Redacted Trump Search Warrant. Aired 3-4p ET

Aired August 25, 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 INTERNATIONAL HOST: So green on the markets today. It's got a lift -- it is a late afternoon lift and we are up by a third of a

percent. So, the market is encouraged, but it is looking for direction.

And so that's the market and the events we're talking about today.

Jerome Powell: This is a market waiting for Powell's speech on Friday. The markets are looking forward to what's going to happen next.

The main points of the day, in a landmark move California is set to ban the sale of gas-powered cars by 2035.

We also, tonight, investigate accusations that the government of Sierra Leone is using its cybercrime law to crack down on freedom of expression.

And as consumer prices continue to climb, you find out what a dollar can still buy you in New York City.

Live from that very city. It is Thursday, it's August 25th. I'm Richard Quest. And yes, I'm in business.

Good evening.

We start to note, within the next two hours, California will make the sale of gasoline-fueled cars illegal by 2035. Now 2035, just 13 years away. In

other words, think of what happened since 2009 to now.

State regulators are debating the measure as we speak and it is widely expected it will pass. The significance: California is the largest US state

and synonymous with the car culture. Its emission standards traditionally shape not only the US standards, but the global market.

Bill Weir, our chief environment correspondent is with me. This is a big deal. I wonder whether, you know, it's sort of a big deal that's happening

as a whimper.

BILL WEIR, CNN CHIEF CLIMATE CORRESPONDENT: A big deal happening, you could say it's a bit of a whimper. It was announced a couple of years ago, Gavin

Newsom did this. I think it's a bit of a whimper relatively because the automakers are all for it or at least they are in this moment.

They see the future. They see the EU vote to do the same thing by 2035; Norway and Netherlands, the biggest province in China has vowed to phase

out all gas cars. This one will ramp it up.

And if this vote passes as you as you mentioned, as it is expected to later today, they want to hit 35 percent zero emission cars by 2035 and that

includes plug-in hybrids.

So, there will still be a market for gasoline, but that car will have to run 50 miles on the battery charge before the engine kicks in or it could

be a hydrogen car. They want to see 68 percent penetration by 2030 and a hundred percent by 2035.

So, it does seem awfully close in some ways. It could be another technological leap away the way we've seen, sometimes tech bottled up, we

have all these new incentives coming out of this new Inflation Reduction Act bill, both for the consumer and manufacturers.

But of course, Richard, it is not just cars, it is charging infrastructure that has to be completely made or transmission lines in order to handle an

electrified society. How do you recycle the batteries? All of these questions yet to be answered.

But as one automaker said, this is a milestone. Kind of think about tailpipes the way we thought about horses at one point, horses didn't go

extinct, it just changed use.

QUEST: The fascinating thing is that the car industry, there is an enormous now amount of self-preservation because they put so much money into EVs. It

is the biggest part of R&D, that they have a massive vested interest in these new laws to actually promote their new cars.

WEIR: That's right. And of course, Henry Ford was the first to figure out that uniformity, a standard model that goes down the assembly line is the

most profitable, and you don't want to be making three versions of the same car depending on which state's pollution laws you're accommodating there.

California is the big one, as you mentioned, and there are 17 states including most in the Northeast Colorado, some of them in the Pacific

Northwest that already follow California's lead on emissions and are certain probably to do the same.

Now, they have tried this 30 years ago, tried to penalize car dealers in California for not selling clean vehicles that fell on its face, but it's a

different world in so many ways and there is this pent-up demand now, and then as consumers realize the benefits, the first pilot program that will

put a hundred electric Ford 150s together as sort of a mini -grid and pay that person will knock down your car payment by $25.00 a month if you let

the power company sip from the battery in your idle truck when you're not using it.

[15:05:26]

WEIR: The vision is that millions of electric vehicles will eventually lead to that future, but that's a lot of engineering and a lot of construction

between now and then, but maybe a milestone at least today in the United States towards electrification.

QUEST: Thank you, Bill Weir leading us tonight.

California, as Bill says is going to need help putting the mandate into effect, especially as it comes to expanding those charging network.

Now, the big brands are already on board. And interestingly, look at the way the share price has moved. So, they can see what California is about to

do and GM has said it will only sell EVs by 2035; Ford and Stellantis - Chrysler are targeting 50 percent by 2030 and you can see Stellantis is not doing as well.

Joining me is Daniel Sperling, who is on the California Air Resources Board, and is voting for the ban. He's also a Professor of Civil

Engineering and Environmental Science and Policy at UC Davis.

This is a big deal, but I wonder, can we say that where California goes today, the rest of the US will go shortly and the world as well?

DANIEL SPERLING, BOARD MEMBER, CALIFORNIA AIR RESOURCES BOARD: Well, I think that's a fair statement, that little nuance to that is when we vote,

that will be in about half-an-hour and 99 percent certainty we're going to approve it. Then there's a large number of other states 15 to 17 states

that have said that are supporting the previous version of it. So if they go along, that's representing about 35 percent of the population in the US.

Now, having said that, Europe, of course is moving ahead very aggressively as well, and they are planning on adopting a very similar mandate for a

hundred percent by 2035 and they're planning to do that later this calendar year.

So there's, you know --

QUEST: Existing cars -- existing cars will be allowed, obviously, to stay on the road. This is not an idea to get rid of the existing cars, but

they'll obviously be phased out and there is the hybridization of the vehicles over time.

Were you encouraged by the fact that the car companies didn't fight this?

SPERLING: It was very interesting. In fact, they already testified this morning, just a couple hours ago. And they said, we support it. They said,

we are concerned that we want to see investment in infrastructure, we want to make sure there are incentives for buyers.

But they said we're on board, and we're going to do it and that was for the entire industry. So, I have to say I was surprised. I was surprised.

We've had some pretty bitter battles in the past, and lawsuits and so on. But it's not happening this time.

QUEST: So, related to that, there has been -- obviously, we had the Biden infrastructure plan, which went through with hundreds of billions, nearly

trillions and we had this latest inflation reduction.

Is there enough money being put into infrastructure for this change?

SPERLING: I think so. There is going to be needing more, but it's getting started. You have to remember, the first few for until you get to about

forty, fifty percent of the market of the sales, you really don't need a lot of public charging, and that's because those people, they are the

people that are more affluent, they have single family homes, they charge at home.

And so it doesn't really become critical until you get to the point where now you're touching people's second car, or you're getting into people

living in apartment buildings, condominiums, and we're not there yet.

So it's not critical for the next three, four, or five years. But after that, it will be critical to get that charging infrastructure in there.

And, you know, sometimes those utilities are slow and permitting is slow. So, it is something to worry about.

QUEST: And you're going to cast your vote in about half-an-hour from now or give or take. Sir, congratulations. Thank you for that. And thank you for

joining us tonight.

SPERLING: Thank you. My pleasure.

QUEST: Now, investors are waiting to hear what Jay Powell, the Chair of the Fed will say when he gives his speech at the symposium at Jackson Hole.

[15:10:10]

QUEST: All three major indices, with the NASDAQ seeing the best of the day, they're all up. The S&P is being led by financials and communications

company. The Dow is marginally higher.

The economist, Paul Krugman told me that the Fed has to put its credibility at stake in its fight against inflation.

(BEGIN VIDEO CLIP)

PAUL KRUGMAN, ECONOMIST AND COLUMNIST, "THE NEW YORK TIMES": The Fed is -- they have this concern about credibility. They certainly had some egg on

their face as with many of us over the surge in inflation, but they are aware and they do know that they are aware of that risk.

So, there is nothing in there that really looks like a catastrophic slump, but something that will be called a recession, and that will make people

unhappy. That's got to be, at least a 50/50 chance.

(END VIDEO CLIP)

QUEST: Rahel Solomon is with me here in New York.

Okay, so talk me through the next few days because we've seen with the Dow, it is up today, and they're all up, but essentially, this is a market that

is looking for direction and that direction comes where?

RAHEL SOLOMON, CNN BUSINESS CORRESPONDENT: Well, that direction goes all eyes on Wyoming tomorrow, right? When every economist, every investor,

every -- certainly economics reporter will be watching and listening very closely to every word that Jay Powell says.

Look, I think the markets are still going to be looking for direction even post because we know Powell has been very guided, very careful about giving

any specific guidance because of the uncertain times that we're living in, according to Powell, and some would say that the markets, Richard, have

underpriced the risk to inflation, those comments coming from James Bullard earlier today saying that look, inflation will be higher for longer and

that the risk is underpriced in the market.

Another Fed officials sort of, you know, waving her hand at the July CPI data. So, we still haven't seen signs of inflation easing. The last time we

heard from Powell, that July meeting, he said that the picture was pretty clear that the labor market was very high, and then inflation, the labor

market was very hot, and that inflation was very high and those two things still exists now.

QUEST: So, the sort of -- I think, a consensus building that the Fed is not going to give up. They're not going to pack their bags and head home and we

still have many rates rises to go. I think on yesterday's program, we were talking about rate -- he came in and has talked about rate rises through

until the end of the year heading towards three-and-a-half to four percent rates because it has to become restrictive.

The market is telling us what?

SOLOMON: Well, I mean, I think the market believes that the Fed may pack up a bit sooner than they likely will, right, according even to that comment

that I just mentioned from James Bullard.

I mean, there are no indications yet, certainly, in terms of core inflation that inflation is easing. I mean, when you look at the last few comments,

the last few speeches from Powell, I mean, he has been very clear about what they are looking for as evidence of inflation starting to move back

toward their two percent target. We're not there yet.

And yet the market seems to feel like well, maybe we're closer to that point, maybe we are there, but I would argue, it doesn't appear to be

reflected in the data. And on top of that, we're also seeing signs clearly of an economic slowdown, depending on what data point you're looking at,

but we are clearly seeing a slowdown.

QUEST: And although Ukraine and the gas situation doesn't impact the US as much as say Europe, that it that -- there is no getting away from it. That

remains an overshadowing exogenous event for the market.

SOLOMON: Absolutely. And of course that is something that the Fed has no control over and when asked actually about that in the last meeting, the

Fed said, look you know, headline inflation is what consumers and Americans respond to, but that doesn't impact core inflation.

They are trying to get a handle certainly on core inflation, but those factors that you mentioned certainly impact the sort of sentiment that as

we know is at historic lows.

QUEST: I guess, you will be watching the speech along with the rest of us when he gives it. Thank you, Rahel.

Tonight on QUEST MEANS BUSINESS, a clash with Apple. Employees are protesting about a return to office border, and the future of remote work

is far from assured according to a new survey. We will talk about that report in just a moment.

QUEST MEANS BUSINESS.

(COMMERCIAL BREAK)

[15:17:05]

QUEST: Nearly a thousand Apple employees are resisting the company's return to work plans. They signed a petition against coming into the office three

days a week. A group of workers that calls itself Apple Together circulated the petition and it says they are more productive and much happier working

at home.

Business leaders overwhelmingly say the office is here to stay. The firm, JLL, surveyed people who make their company's real estate decisions, 72

percent, three out of four said offices remain central to their businesses.

Christian Ulbrich is JLL's Global Chief Executive. Christian is with me now.

Sir, it is good to have you.

So, this idea that the office is all over, bar the shouting, we now realize is not true that people will still have to get to work, but there is a

difference in composition. Companies demands for the sort of office, the location, and the amount of space is changing. What trend is that?

CHRISTIAN ULBRICH, GLOBAL CHIEF EXECUTIVE, JLL: What we have learned is that people can do their work also from home if it's just desk work, but if

they come to the office, the reason is predominantly to collaborate, to innovate, to experience the culture, and just to be with their colleagues.

And in order to do so, we need a different type of space. It has to be much more collaborative space. It has to be much more a we space rather than a

me space where you're sitting in a separate office. And then from a location point of view, they like to have the office space convenient to

transportation hubs and those things are becoming much more relevant than before.

QUEST: But in terms of building, the building that took place in 2019 -- 2018, 2017, 2018, 2019 -- that's now being filled up. There was -- there

were reports in London, New York, Tokyo, that vast areas of new build would not get tenants. Has that proven to be the case are not?

ULBRICH: Well, what we're currently seeing is that the most modern office buildings, the most greenest buildings who are really delivering also on

the ESG expectations of employees are filled up quite easily.

The ones who are suffering are kind of the #MeToo office buildings what we would call the "B Space," buildings where you have many, many of the same

in the city which are not standing out at all. They are struggling and they will go into struggle going forward.

QUEST: We led our program tonight on California's decision today that it will ban gas because gas cars by 2035. Now, the interesting thing here is

you're another aspect of it. All the buildings you have now have to take a much greater component of ESG sustainability than ever before.

[15:20:10]

ULBRICH: Yes, absolutely. I mean, this is something which is relevant for all of us, and it is relevant for the employees, and when we survey

employees, even our clients survey employees, this is becoming important aspect.

There are differences, depending where you to ask that question, but it is all over in Europe, and it is becoming more and more important in major

parts of the US.

And then you have regulation, and New York has one of the toughest regulations in the world with regards to the carbon footprint of buildings.

And so, we will see that becoming a really relevant factor going forward.

QUEST: Do people -- I always get a bit cynical when people talk, you know, when I'm told employees are demanding an environmentally sensitive

building. Employees are this or consumers demand that.

Is there evidence from your customers, your clients, that they are prioritizing, environmental and ESG, even if that costs them more?

ULBRICH: Not across the board, but we have a large group of companies within our portfolio who are prioritizing it very clearly.

Our 50th largest clients, more than 90 percent have signed up to go to carbon neutrality along the lines of the Paris Climate Agreement, or some

of them even much faster and they are clearly prioritizing for any new space, those buildings which deliver on ESG.

QUEST: Finally, I just want to just briefly talk -- Hong Kong and China, which of course is just -- I mean, China's property market, the rules for

people in China's property market have changed dramatically with one COVID policy and I'm wondering if there's any decent business to be done there at

the moment?

ULBRICH: Well, it is obviously still tough. We had a lot of lockdowns during the course of this year, but it is coming back now, people are eager

to come back into the office, and I guess, no surprise after being locked at home for so long and so our offices are filling up, the offices of our

clients are filling up.

But clearly, the Chinese economy is taking this year a stronger hit from COVID than we would have expected at the beginning of the year.

QUEST: Christian, I'm very grateful that you've joined us tonight. Thank you very much, sir. I appreciate it. Thank you.

ULBRICH: Thank you, Richard.

QUEST: Let's stay with China because whilst things may be improving, the country has announced more than $146 billion worth of new stimulus

measures.

China is in the midst of the debilitating heatwave. The high temperatures for cities like Shanghai just shut off lights as you can see, saving

electricity, and a summer drought has been devastating to farmers.

CNN's Blake Essig now breaking down the country's climate crisis.

(BEGIN VIDEOTAPE)

BLAKE ESSIG, CNN INTERNATIONAL CORRESPONDENT: Record-breaking heat, drought and wildfires, China's summer of extremes continues.

According to China's National Climate Center, China has been experiencing an intense heatwave for more than two months that authorities say has

affected roughly 900 million people. As a result, lakes and rivers are drying up. An estimated 40 percent of crops have been damaged and hundreds

of thousands of people are struggling to access drinking water.

Highlighting the desperation several times over the past 10 days, Chinese authorities have literally tried to make it rain by cloud seeding. In this

case, Chinese planes are firing silver iodide rods into clouds to help form ice crystals and produce rain.

Now, China's Cabinet has also introduced 19 new measures focused on stabilizing the economy and secure drinking water. This comes as the

country continues to deal with the economic effects of Zero COVID and its worst heatwave in more than 60 years.

More than one trillion yuan or about $146 billion in funding meant to stabilize the economy by improving infrastructure, easing power shortages,

and tackling drought. While spurring the economy and economic growth is the goal here, some analysts aren't optimistic that this latest stimulus will

be effective, that's because of a very weak property sector in China's zero COVID policy that will likely continue to impact the economy.

Blake Essig, CNN, Tokyo.

(END VIDEOTAPE)

QUEST: Before we take a short break, I'm going to update you with the news. Let's take a look at the markets. I wanted to show you because this is what

a market looks like when it's waiting for something to happen.

And then for no obvious reason, up it goes like a rocket. My guess is the market is up strongly. Well, we know Boeing is having a good day. Boeing

was up three percent, so Boeing has sort of lifted the tide as it always does in all of this.

But even so, there is obviously a view that they are going up three percent today. Salesforce is at the other end, down five percent. A really

interesting market that you don't see like that as we wait for Jay Powell.

[15:25:16]

QUEST: QUEST MEANS BUSINESS today, growing concern in Sierra Leone that a new cybersecurity law is now being used to hunt down those who speak out

against the government.

(COMMERCIAL BREAK)

QUEST: Hello, I'm Richard Quest. We have a lot more QUEST MEANS BUSINESS for you today. I'm going to be telling you about the United CEO who tells

us airlines are not to blame for the summer of travel chaos.

And the earnings are in for two major discount, so-called Dollar Stores, Dollar General and Dollar Tree are seeing more inflation. For shoppers,

inflation makes every cent count. We'll show you what you can buy for a dollar.

As we continue, this is CNN and here, the facts always come first.

The International Atomic Energy says that authorities have now restored the power supply in Ukraine's Zaporizhzhia Nuclear Plant.

Earlier, Ukrainian officials had said the last working external power line had twice disconnected because of fires nearby. The plant, however, is

still disconnected from Ukraine's energy grid. Russian forces control the facility, but Ukrainian technicians are still operating it.

Emmanuel Macron, the French President is in Algeria on a three-day visit. There, he hopes to boost relations, which was strained last year after

President Macron reportedly questioned whether Algeria existed as a nation before France colonized it. Energy is also likely to come up as France

seeks alternatives to Russian gas.

The tennis star, Novak Djokovic will miss the US Open because he is not vaccinated against COVID-19 and therefore cannot enter the United States in

the current rules.

The last grand slam of the year gets underway in New York next week. Djokovic also missed the Australian Open, the Indian World and Miami's Open

because of his vaccination status.

[15:30:15]

(MUSIC PLAYING)

QUEST: In Sierra Leone, the government is facing accusations that it's using a new cybercrime law as a cover to crack down on dissent. The law was

supported by the U.K. and the European Union. E.U. officials now say it was never meant to be used against free speech.

CNN's Katie Polglase has the story -- and I must warn you, some of the video you are about to see is disturbing.

(BEGIN VIDEOTAPE)

KATIE POLGLASE, CNN INVESTIGATIVE RESEARCHER (voice-over): On August 10, in Sierra Leone's capital Freetown, people took to the streets to protest a

worsening cost of living crisis. Rising food shortages have left over half the population without enough food to eat according to the World Food

Programme.

Protesters held rocks, set buses alight. Authorities were quick to condemn the destruction which they said left eight officers dead with the president

of Sierra Leone labeling the protesters as terrorists.

There was no mention of the number of civilians killed, which Reuters reported as high as 21.

But it was the severe police crackdown both on the streets and online that has revealed worrying signs of a government suppressing freedom of speech.

UNIDENTIFIED MALE (from captions): Don't destroy the cars please. Move from here.

POLGLASE: The voice you're hearing is of 20-year-old Gibrilla Kojo (ph) sitting on his balcony. He calls for those running past to be careful and

not damaged the cars parked below. Just over an hour later, Gibrilla would be dead.

His friend, David, whose name we have changed to protect his identity, witnessed the shooting and says Gibrilla was shot in the neck by Sierra

Leone's police.

UNIDENTIFIED MALE: He was totally harmless. He was not even part of the protest. He was t the balcony watching the protesters.

POLGLASE: David's videos of the events are rare and risky. He told CNN he believes it was the sight of him and his friend filming that made them a

target for police.

UNIDENTIFIED MALE: The moment before Gibrilla died, I told him that they were firing live rounds, we need to back off, we need to get inside. But he

insisted. He said they were firing rubber bullets. But it was live rounds.

POLGLASE: CNN analyzed the bullet casing found at the scene which was confirmed by weapons experts to be from live ammunition. The police have

made no comment on whether they did use live bullets during the protests.

David's filming two hours before Gibrilla's death reveals armed police standing on the streets below. You can see the red hats indicating it's the

Operational Support Division, an armed unit of the police which according to Amnesty International, has a track record for shooting unarmed

protesters dating back to 2007.

As other scenes of injured and bloody protesters across Freetown began to be shared on social media, the internet was cut off. By midday, just half

an hour after Gibrilla's death, NetBlocks recorded a total shutdown of the internet, activity NetBlocks identified as an intentional disruption.

The next day, a statement was issued by the government's department for cyber-security, warning that anyone spreading incendiary information online

could be punished with up to 20 years in prison.

And the basis for this threat was a new cybersecurity law introduced in 2021 and backed by the E.U., U.K. and the Council of Europe.

UNIDENTIFIED MALE: To sign into law today the Cybersecurity and Crime Act.

POLGLASE (voice-over): The law had aimed to safeguard intellectual property and privacy online and was part of a broader initiative by the E.U. and

U.K. to fund projects across Africa that tackled cybercrime. In statements to CNN, the E.U. and U.K. delegations to Sierra Leone said they were

engaging with the government on freedom of speech and protest.

The delegation encouraged all measures which lead to dialogue and refrain from repressive measures, the E.U. said. And the Council of Europe said the

spreading of incendiary information is not listed in the offences under the act.

POLGLASE: Do you think it's what the U.K. and the E.U. intended for this law to be used by?

WISLAW GOZDZIEWICZ, FORMER LEGAL ADVISER, NATO: Definitely not.

I mean, neither the E.U. which is founded upon the basic principles of human rights and nor any democratic states in the world, including the

United Kingdom, would even consider an attempt to limit the freedom of speech in such a manner.

POLGLASE (voice-over): Reporters Without Borders told CNN any repressive provision of freedom of expression online must be repealed. And said they

called on authorities in Sierra Leone to highlight the fact the act --

[15:35:00]

POLGLASE (voice-over): -- should not interfere with the rights to freedom of expression.

And for many in Sierra Leone who spoke to CNN, they said this law made them fearful to use social media to document what they witnessed during the

August 10th protests.

UNIDENTIFIED MALE: They don't want you guys to see it, the foreign medias. They don't want the foreign medias to be seeing these videos.

POLGLASE: Do you feel scared right now?

UNIDENTIFIED MALE: Of course, yes. Of course, yes. I am actually expecting a physical assault.

POLGLASE (voice-over): Katie Polglase, CNN, London.

(END VIDEOTAPE)

QUEST: Now CNN has asked government officials in Sierra Leone to comment on the new cybersecurity law and the Amnesty International report.

As we continue, a dollar; a day late and a dollar short, as they used to say.

What can a dollar buy now?

Not as much as it used to. We sent our colleague to see what $1 can get you in New York City today, as dollar stores give their reporting season.

(MUSIC PLAYING)

(COMMERCIAL BREAK)

(MUSIC PLAYING)

QUEST: Rising ocean temperatures are threatening more and more coral reefs with mass bleaching that endangers sea life. Today, for today's "Call to

Earth," we will visit one of the healthiest reef ecosystems in the Caribbean. Now we need to understand how conservationists and what they are

doing to protect it.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE (voice-over): In the southern Caribbean, just 50 miles off the coast of Venezuela, lies the Dutch island of Bonaire beneath the

surface of its turquoise water. Coral reefs clean to the coastline and are home to over 350 species of fish.

But a recent four year study here concluded in 2020, has shown annual coral bleaching as high as 61 percent, a phenomenon that reveals signs of stress,

potentially deadly to the organisms.

ROXANNE-LIANA FRANCISCA, MARINE BIOLOGIST, STINAPA BONAIRE: One of the big impacts of climate change is of course, the oceans getting warmer. What

we've seen in Bonaire over the last couple of years is a lot of bleaching that happens but luckily not a lot of corals that died.

[15:40:00]

FRANCISCA: But of course, if we keep having these really big intense bleaching events and the corals do not get the time to recover, that can

really change what your reef looks like.

UNIDENTIFIED MALE (voice-over): In 1979, the waters around the island were given special protection as one of the planet's first marine reserves.

Since then, the ban on fishing in the reserve plus the prohibition of anchoring and any removal of coral is monitored and regulated by the

STINAPA Park Foundation.

Today, the reef maintains its status as one of the healthiest in the Caribbean.

FRANCISCA: Today, we are doing checks on some light and temperature sensors we have located in the park. So with these sensors, we can get an idea of

how the temperature is changing through the years is this temperature change. The same in the entire marine park is it the same on all depths.

And this can really help us in the future if we're planning on doing restoration by targeting which coral species survive best in which

temperature ranges, which areas would do best for restorations and the better we understand that the better we can protect and conserve what we

have.

UNIDENTIFIED MALE (voice-over): For the past 10 years local organization reef renewal Bonaire has been using that valuable information to implement

a process of natural coral recovery called fragmentation.

FRANCESCA VIRDIS, CHIEF OPERATING OFFICER, REEF RENEWAL BONAIRE: We propagate thousands and thousands of corals in our nursery, just cutting

them, like sort of gardening on the water. So let's say you have a cull and we call it the parent colony.

You can cut a portion of it and this fragment is able to heal first the scar and then start growing. So the new corals grow will be a clone of the

parent colony. In this way cutting were able to produce an oil plant back to the reef, almost 10,000 corals per year.

UNIDENTIFIED MALE (voice-over): Most of the restoration is focused on two species of branching coral, staghorn and elkhorn both critically endangered

and both crucial a shelter for the marine life in the reef.

VIRDIS: When the project started, we sampled all around the island, almost 50 different strains of these two species, we need to find corals, they are

more resistant, they are more resilient.

To see the spawning, of course, they you grow, since they were little fragments and you spend a couple of years you know first in the nursery and

then on planting them and monitoring them over the years and see them spawning.

It's very rewarding. It means that what you're doing is really making the difference.

FRANCISCA: I'm still very optimistic about the future of Bonaire trees--. We need to decide what we want the future to look like and then we need to

take the steps to make sure that we can safeguard that future.

VIRDIS: I think we are at the point where we can make those decisions that will make sure that in 20 years, Bonaire is maybe one of the only places

that can stay well we still have a very nice beautiful reef left.

(END VIDEOTAPE)

QUEST: So let us know what you are doing to answer the call. It's #CallToEarth.

(MUSIC PLAYING)

(COMMERCIAL BREAK)

[15:45:00]

(MUSIC PLAYING)

QUEST: I must update you on a breaking news story. A U.S. federal judge has ordered that the search warrant affidavit for president Trump's home at

Mar-a-Lago can be and must be unsealed with the redactions proposed by the Justice Department.

He instructed the Justice Department to follow a redacted version by noon tomorrow, noon Eastern time tomorrow. So we will get to see the affidavit,

upon which the search warrant of Donald Trump's Mar-a-Lago was issued.

However, it will be redacted and now we wait to see the length of the redactions.

United Airlines' chief executive, Scott Kirby, says carriers aren't the only ones to blame for this year's summer travel chaos. Today's

cancellations have all surged in recent months. United, itself, has canceled 5,000 flights this summer. Here's what he had to say in an

exclusive interview with CNN's Pete Muntean.

(BEGIN VIDEOTAPE)

PETE MUNTEAN, CNN AVIATION CORRESPONDENT (voice-over): Another week of air travel pain across the country is turning up the pressure on airlines to

perform with the Labor Day rush fast approaching.

This past Monday alone, more than 1400 flights were canceled nationwide, the fourth highest of the summer, both Southwest and American Airlines

delayed more than 40 percent of all their flights.

SYLVIA IBARRA, PASSENGER: -- my flight was canceled?

MUNTEAN: Yesterday.

IBARRA: Yesterday. Now we're back again today. It was canceled this morning. And now we're back again.

MUNTEAN (voice-over): United Airlines' CEO Scott Kirby says hiring -- Training Center in Denver has made its pandemic recovery quicker than

others. Since the start of this year, United has hired 1500 new pilots in hopes of alleviating staffing shortages and canceled flights. In total,

U.S. airlines have canceled more than 44,000 flights since June.

SCOTT KIRBY, CEO, UNITED AIRLINES: All airlines are not created equal.

MUNTEAN (voice-over): In an exclusive interview, Kirby put some of the blame back on the federal government. Last week, the Federal Aviation

Administration said a shortage of air traffic controllers delayed flights into Newark, JFK and LaGuardia by up to two hours.

KIRBY: Frankly, the bigger challenges are not the airline's they. They're the entire support infrastructure around aviation that hasn't caught up as

quickly.

MUNTEAN: Let me push back on that just a tiny bit because United has had 5000 cancellations this summer.

What do you say to somebody who does see this as an airline issue rather than some other cause?

KIRBY: Well, first, I would say we're doing everything we can to get the airline running reliably. We know that's the most important thing for

customers. It's our number one priority. When the FAA says you can't land airplanes at the airport, you're going to have delays and cancellations.

MUNTEAN (voice-over): Transportation Secretary Pete Buttigieg insists air traffic control issues do not account for many cancellations this summer.

In a letter to airline executives, Buttigieg says the level of disruption Americans have experienced this summer is unacceptable and is telling

airlines to review their customer service commitments to passengers.

PETE BUTTIGIEG, U.S. TRANSPORT SECRETARY: I'm calling on the airlines to step up their game before we have to do even more.

MUNTEAN (voice-over): For United that starts with training that focuses on quality. Something I got to try in a Boeing 737 simulator.

MUNTEAN: It felt like that was a little hard.

UNIDENTIFIED FEMALE: No, that was good.

CAPTAIN MIKE BONNER, UNITED AIRLINES: Our growth plan the most aggressive growth plan of any airline in the history of aviation is really the driver

behind the need for our pilots.

MUNTEAN: With a Labor Day travel rush around the corner United Airlines is expecting big numbers, 2.6 million passengers on United Airlines alone. Two

big tips if you are traveling: one, ditch the check bag and carryon. That leaves you more flexibility.

And two, ditch the connections from your itinerary and fly nonstop.

More connections only open you up to more opportunities for delays and cancellations -- Pete Muntean, CNN, Denver International Airport.

(END VIDEOTAPE)

QUEST: Now rising prices have meant that those cheaper dollar stores were doing well, at least at first. Those things got tough. Now the dollar

stores are being hit, too, as more full service shops and malls are cutting prices.

So the dollar stores, are they in trouble?

[15:50:00]

QUEST: Here is $1. Well, on QUEST MEANS BUSINESS, we know that every dollar counts. Every penny counts, too.

But we wanted to know, what could you get for $1 in New York City?

And how better to find out than sending our writer, Delaney Murphy, out to find out?

(BEGIN VIDEO CLIP)

DELANEY MURPHY, CNN WRITER, QUEST MEANS BUSINESS: They gave me the corporate card and I'm going to go see what I can find in the next hour

that costs just $1. Not feeling optimistic about it but we are hoping for the best.

(END VIDEO CLIP)

QUEST: She might hope for the best; here's what she got. She went to Jack's, live large, spend small, is where we began. And we found a three-

pack pair of socks for $1. Made in China, polyester as well.

Not a lot of food options available. So we went to a bargain pizza shop. Now I have to say, one slice with cheese, no pepperoni, nothing else but

it's extremely good. I love cold pizza.

And as for essentials, three stores to find $1 toothpaste. Hygiene items almost out of all budgets. And this was Delaney's take away from her $1

shopping expedition.

(BEGIN VIDEO CLIP)

MURPHY: Richard, if the question is, can you buy something in New York City for just $1?

The answer is, yes, you can. I just did it. But, unfortunately, it's not going to be those everyday essentials of food, school supplies, personal

care, like body wash, tissues, et cetera. You are getting a lot of lower quality, kind of novelty goods. Or just one meal in a slice of pizza.

(END VIDEO CLIP)

QUEST: One meal in a slice of pizza. That will do for me.

Paul la Monica is with me in New York.

The dollar stores, Dollar General, Dollar Tree, they all did rather well. But the Walmarts and the Targets, which were cheap to start with, have

moved in.

PAUL LA MONICA, CNNMONEY DIGITAL CORRESPONDENT: Yes, there clearly is demand for cheaper goods. Consumers want bargains like, for example, we

have this Arizona Ice Tea that is only 99 cents, 61 grams of sugar.

So hopefully you will get some toothpaste and a toothbrush afterwards, although it might be difficult. I think, though, that what's happening

right now, Richard, is that even the dollar stores recognize that inflation is biting into just about everyone's budgets.

And dollar stores are, in some respects, only dollar stores in name only now. Remember, Dollar Tree, a lot of controversy about how, last year, they

were boosting prices by 25 percent, all the way to $1.25 on lots of different items.

And as a result, they've had -- still sales growing but they are acknowledging that there are challenges due to inflation. And that's one of

the reasons why both stocks fell after their earnings reports today.

QUEST: I take your Arizona Iced Tea and I raise you a Coca-Cola for $1. And butter cookies, well, that would be $2. So you can see, with all that we

are eating, we are doing fairly well in terms of eating but not very healthy.

Where does the retail -- I mean, the Macys, the very large, the Bloomingdales, the very large malls. I saw Nordstrom's numbers yesterday.

They were not brilliant but they weren't awful, either.

LA MONICA: Well, they weren't very good and I think that's one of the reasons why Nordstrom's stock took a hit.

But I think the problem right now is that there is clearly consumer fatigue. You are seeing that at Nordstrom. Macy's, their numbers were not

phenomenal, either, but the stock was able to hold up relatively well. I think a lot of the bad news is baked in.

But when you look today, these dollar store retailers, their earnings not impressive. Other retailers also not giving much in the way of hope.

Abercrombie & Fitch, the apparel retailer, their stock down after earnings.

Burlington stores, another discount clothing retailer, not good results and their stock tumbling, too. So I think there's just a lot of concern right

now about the consumer starting to only spend on essentials. And if their clothes are not falling apart, clothing might not be essential, either.

QUEST: In a sentence or three, Mr. La Monica, guru, tell me what you expect from Jay Powell tomorrow.

LA MONICA: Whoo! Hopefully he's going to be pretty good about saying nothing, in the old Alan Greenspan way. If he says anything that suggests

the Fed is still going to be raising rates aggressively, could be a "look out below" type of day for the markets.

[15:55:00]

QUEST: But if he goes dovish, which is highly unlikely, bearing in mind the inflation outlook, then the market could rally.

LA MONICA: That's certainly true. I'm not sure what the bird is that's in between a hawk and a dove.

Is it a sparrow, a robin?

But that is what he needs to be. He needs to thread that aviary needle and not sound too hawkish or too dovish. He doesn't want to lock himself in

because you've got a job to --

(CROSSTALK)

LA MONICA: -- inflation numbers coming out next month before the --

QUEST: But look at this market. All of a sudden, while we've been, in the last 10 minutes or so, it's gone up like a rocket. I mean, there's no

obvious reason for this.

LA MONICA: No, there clearly is not. I think it's dangerous because investors must be holding onto this hope that Powell is either going to be

dovish or not be too hawkish tomorrow and then maybe this rally can continue.

But buying right now, five minutes ahead of the close, before the most important Fed speech in recent memory, on a sleepy summer Friday, when

volume might be light, good luck. You might need to put something in one of these tonight to make it through the day.

QUEST: You would need the whole lot.

Last few minutes of trade on Wall Street, we will take a break and I'll have a "Profitable Moment" after the break.

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(COMMERCIAL BREAK)

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QUEST: So tonight's "Profitable Moment" and it's tomorrow's program. Our summer Fridays continue at The Met. The Metropolitan Museum of Art are our

host for QUEST MEANS BUSINESS tomorrow, 8 pm London, 9 pm Berlin.

You will hear from the director, going to hear all about the beauty, the wonderfulness of The Met.

And that's QUEST MEANS BUSINESS for tonight. I'm really looking forward to The Met tomorrow night. It's a wonderful institution.

Anyway, that's QUEST MEANS BUSINESS tonight. I'm Richard Quest. Whatever you are up to in the hours ahead, I hope it's profitable. The market is up

in a stonking way today. Look at that, good grief.

END