Return to Transcripts main page

Quest Means Business

Global Stocks Fall Ahead Of Interest Rate Decisions; Russia Pushes To Annex Parts Of Ukraine; UN Chief Urges Rich Countries To Tax Fossil Fuel Companies; Fix Supply Chain To Tame Inflation; Easing Post-Pandemic Traffic At Port Of Long Beach; Social Media Erupts Over Chinese Bus Crash; U.S. Stocks Slide Ahead Of Fed's Expected Rate Hike. Aired 3-4p ET

Aired September 20, 2022 - 15:00:00   ET

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

[15:00:22]

RICHARD QUEST, CNN INTERNATIONAL HOST: There is an hour of trading left on Wall Street and the first day of the Fed meeting is underway and the market

is deeply grumbling and unhappy.

We're up over one and a third percent on the Dow. The triple stack shows not a huge amount much better. The wider market is also lower with the

NASDAQ off one percent and the S&P up one and a third percent.

The markets are worried about what's happening in the economy, as are the main events of the day. Sweden raises interest rates a full percentage

point and begins a dramatic week for interest rates.

The head of the UN accuses oil giant of feasting on profits, whilst the world burns.

And China clings to zero COVID leaving supply chains with a massive challenge. The head of North America's busiest port is with me.

Live from New York, I'm back in New York, it is Tuesday, September the 20th. I am Richard Quest, I mean business.

Good evening.

We start tonight as global stocks fall sharply and investors are bracing what could be the sharpest increase in interest rates in decades across

multiple places. So, in the US, the Dow is off 500 points, now about 400. The NASDAQ and the S&P are down more than one percent. The Federal Reserve

is beginning its two-day policy meeting, interest rate decision will come out tomorrow, we'll have obviously all the details.

And European markets, take a look, Germany, France, Switzerland all down more than one percent on what they are expecting. Now, the reason of

course, is we are, as we have a slew of Central Bank meetings that are likely to result in significant higher interest rates.

So, it has already begun. Sweden started. Now, the red represents in totality a one percentage point. So Sweden, if you think at 25 basis points

each has raised rates by one percentage point, inflation is nine percent. Nine percent.

Tomorrow, we have the Fed that is expected to raise rates, think of these as representing 75 basis points or 25 points up to 75. That represents 75

basis points and it will be the third rise of a size in that row.

You then have got the Bank of England, the Swiss National Bank and the Norwegian Central Banks who are meeting on Thursday. In each of these two,

we are expecting a 75-basis point rise. That's twenty-five, twenty-five, seventy-five basis points rise over all. It's only Norway that perhaps will

only go 50 basis points. Norway is expecting a 50 basis points rise.

You can see now, this is a snapshot of one simple week with major rate rises across industrial economies.

Rahel Solomon is with me. The reason, we know, Rahel, is because of inflation, but this is stomping on the brakes.

RAHEL SOLOMON, CNN BUSINESS CORRESPONDENT: Yes. Absolutely. I mean, global bankers around the world are in an epic race of epic proportions and the

stakes couldn't be higher, Richard.

On the one hand, you have the risk of perhaps letting inflation linger for far too long, which some like Robert Shiller recently saying that would be

a national disgrace. On the other hand, you have the risk of tipping us into a global recession, which you have executives, like the CEO of FedEx

saying that they are already concerned about.

I want to paint this picture for you, provide another snapshot, Richard of the next 48 hours, in fact, because it's not just those Central Banks,

which you are perfectly laid out there, but it's also Central Bankers in Brazil, Philippines, Indonesia, Taiwan, which many of these banks are

expected to raise rates, perhaps not at the magnitude of Sweden or the US, but Central Bankers around the world are largely dealing with the same

issue, which is that global inflation.

QUEST: They all seem to be saying the same thing, which is the need to squeeze inflation out and prevent inflationary expectations from rising,

but the worry is that in doing all of this medicine, they will bring about a recession.

[15:05:02]

SOLOMON: Absolutely, and a global recession, right, because to your point, Richard, we are not just seeing this in certain pockets of the world, it is

not just happening in the West where we're seeing this inflation problem and also aggressive tightening from Central Bankers, but also in other

parts of the world.

I want to show you just sort of some of the major Central Banks and show you what they've been doing this year, and you can see, they've been moving

in lockstep. So whatever is to come, we're likely all going to experience at the same time, which is why you have key executives like FedEx, which of

course is a multinational corporation, sounding the alarm that we could be in for a global recession.

QUEST: Rahel Solomon in New York. Rahel, thank you.

Vince Reinhart is the Chief Economist at Dreyfus and Mellon and joins me now. You heard the scenario there. First of all, this, this is the --

particularly in the Fed, if the Fed moves three-quarters tomorrow. This is stomping on the brakes. This is not a light touch. This is really aiming to

slow the economy dramatically.

VINCENT REINHART, CHIEF ECONOMIST, DREYFUS AND MELLON: That's a consequence of starting too late. If you start too late, you have to hit

the brakes harder, and we're living through that right now.

And here's the scary part, Richard. Yes, the nominal policy rates are going up, but they are still below the rate of inflation in most of the

economies, as you noted. US eight-and-a-quarter percent, most of Europe in the nines. Yes, they've raised the nominal policy rate, but in real terms,

adjusted for inflation still negative, they're still providing stimulus on that.

QUEST: If we take that into account, then you would be looking at much more sizable interest rate rises.

REINHART: That's the problem of starting too late.

QUEST: Right. But I don't see people suggesting rates in the US going to six, seven or eight percent yet, or maybe they will start suggesting that?

REINHART: Well, I think Jay Powell laid the groundwork, the Fed Chair in his Jackson Hole remarks was pretty somber, and the first message he

conveyed was, don't expect a policy reversal anytime soon. They are going to raise rates, and they're going to keep them there.

I think the Fed's preference is to move interest rates up and then hold them at a higher level to provide the restraint over time. But if you start

too late, you've got to go in big chunks, and that does raise the risk of recession and it would be a global recession.

QUEST: I was looking at your CV and your resume, and the economic work you did with the FOMC and others. So, you are extremely well positioned to tell

us the current rate hikes, let's just say we get three or four more, and we end up with three, three-and-a-quarter, three-and-a-half percent, maybe as

high as four percent. Do you believe over time that will bring down inflation in the US?

REINHART: It depends when the Fed declares victory. I think you'll be talking about a nominal Federal Funds Rate that starts with a four next

year. That will be associated with inflation coming down, it has already come off the peaks. But next year will be the real test for Central Banks.

Right now, this is the bad news. This is the easy part of Central Banking. When you are so far from your goal, there is just one direction to go,

catch up, i.e. raise nominal rates. Next year, as the economy softens, even when inflation isn't a goal yet, are they going to blink and potentially

stop raising rates? Maybe even cut them, that's premature, but that will be the real test of Central Bankers.

QUEST: Is it realistic to get rates back to target ranges of two percent in a year?

REINHART: They will have done it by the end of this year. The question is, is it sufficient? And the answer is not when you have that much inflation

momentum in train. The bad news from the history of the Federal Reserve is six out of the last seven times they raise rates. We were -- the US economy

went into recession.

This is probably going to be like the preponderance of experience.

QUEST: That was an elegant way of saying you do believe there will be a US recession next year.

REINHART: I think it's pretty likely. I think that a lot of signs are pointing toward it.

Look, the yield curve is inverted, that is short rates are above long rates. The Fed is raising rates a lot. It is closing the output gap or

output relative to potential. And by the way, we've had a massive energy shock even more so in Europe.

Historically, when the yield curve inverts when policy tightens a lot, and you have an energy shock, that's a trifecta for a recession.

[15:10:16]

QUEST: Gloomy news upon which to say thank you. But in the months ahead, we will be talking more as we add more balls to the tubes, and you get to

see exactly what we're doing. Thank you, sir. I'm grateful. Vincent Reinhart joining me.

REINHART: Thank you.

QUEST: So tonight, because both Rahel and Vincent were talking macroeconomics, well, it really only matters when it comes down to my and

your everyday inflation, and it is important how we look at -- how we are affected by the rising prices of everyday goods.

So, we're going to do it across an entire range of different things. Let's start -- today we're going to start with Swedish meatballs. Now, not only

in Sweden, it's a staple in many places, and the ingredients are getting more expensive.

Beef prices are up 16-and-a-half percent. Pork is up 8.7 percent, and egg prices have risen by nearly 21 percent. So on our everyday inflation

barometer, the bag of frozen meatballs now costs 44 Swedish krona, it's around $4.00, which when you look at the constituents is considerably

higher than it was.

Russia is trying to annex regions of Ukraine its troops have occupied. Ukrainian officials say it's a sign the Kremlin is panicking that it could

lose the war.

(COMMERCIAL BREAK)

QUEST: Russia is making a new push to annex parts of Ukraine. The Kremlin- backed leaders in four occupied regions have announced snap referenda on whether to join Russia. The first could be held as soon as Friday. Ukraine

dismissed the move as a sham stemming from Russia's fear of defeat.

President Zelenskyy says the tide of the war is turning.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): We are stabilizing the situation, holding our positions firmly, so strong that the

occupiers are really panicking. Well, we have warned the Russian soldiers in Ukraine have only two options -- to flee from our land or surrender.

(END VIDEO CLIP)

[15:15:08 ]

QUEST: Ben Wedeman is in Kharkiv and joins me now. Is he right? Is the tide of the war changing in Ukraine's favor or are we talking isolated

victories here?

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, what happened here in the Kharkiv region where the Ukrainians retook thousands of square

kilometers of territory certainly is not an isolated incident. But if you look at the broader picture of the war, things aren't as rosy as perhaps

some of the Ukrainian officials might like to present.

For instance, in the City of Bakhmut, which is in the Donetsk region, the Russians are fighting a fierce battle to try to take that city, which has

been under severe bombardment for months and Ukraine in control of that city is not certain at this point.

So yes, they've made dramatic gains, but certainly, if you look at the big picture, there is a long way to go. There is the offensive, the Ukrainian

offensive going on in the Kherson region and they have gained some territory from the Russians, but it is small compared to what has happened

in Kharkiv.

So, anyone who thinks that the corner has been turned in this war is perhaps engaging in a bit of optimism -- Richard.

QUEST: So, where does it go? I mean, I can -- having been in Europe, I can feel the weather is getting colder. It will become much more difficult for

both sides. In your view, is Ukraine -- does Ukraine have to sort of take its opportunity now and make more sizable progress before the weather

closes in?

WEDEMAN: Yes, and not too long from now, and perhaps in a matter of weeks, the ground will become frozen, you can't really dig in and dig defensive

positions as easily, so the war will probably freeze for several months in one more ways than one.

Now, the Ukrainians are trying to push their advantage where it exists, but at the end of the day, they can only do so much with the limited amount of

advanced weaponry they've received from their NATO backers.

We've seen for instance, things like HIMARS and other sophisticated artillery has really made a difference. Many of the Russians more important

weaponry and positions have been moved back to get them out of the range of this new equipment.

But by and large, yes, after this period of dramatic advances, I think we may settle in for the winter for quite some time and not see any dramatic

changes on the battlefield either by the Russians or the Ukrainians -- Richard.

QUEST: Ben Wedeman in Kharkiv. Thank you, sir.

The war in Ukraine has pushed energy prices higher and fossil fuel companies have been reaping the benefits. UN Secretary General says rich

countries should tax those companies profiting as the planet burns and power bills soar. It is a message Antonio Guterres delivered at the start

of the 77th General Assembly of the UN.

(BEGIN VIDEO CLIP)

ANTONIO GUTERRES, UNITED NATIONS SECRETARY-GENERAL: The fossil fuel industry is feasting on hundreds of billions of dollars in subsidies and

windfall profits, while household budgets shrink, and our planet burns. Essence is, let's tell it like it is. Our world is addicted to fossil

fuels, and it's time for an intervention. We need to hold fossil fuel companies and their enablers to account.

(END VIDEO CLIP)

QUEST: Richard Roth is our senior UN correspondent. He is with me. He is right, as far as he goes, but everybody knows that and what happens as a

result of it?

RICHARD ROTH, CNN SENIOR UN CORRESPONDENT: Yes, the Secretary General has been on the warpath against big oil and gas companies now for months. It's

a very interesting villain. He doesn't have to pick on countries or Russia that much.

Climate change has been his big theme, and it is a growing threat of course for the rest of the world, but he can't order it, the UN has no army. The

poorer countries are suffering and he feels there should be a tax.

The EU has had this idea. He wants a tax on the fossil fuel industry with the money going towards countries and people who have not been -- who have

felt the effects of climate change and also can gain some compensation for food insecurity issues.

[15:20:01]

QUEST: The problem we've got of course with that is any idea of windfall taxes and there are lots of places looking at him are also considering -- I

mean, in the developed world, are going to use the money to help pay for the various social programs such as the UK is introducing to pay their own

fuel bills for their own people.

ROTH: Yes, and that's why it was a particularly forceful speech. He said, "The world is in a colossal divide," and this gap and this problem of

Russia versus Europe, the Russia fertilizer and where it goes. The Brazilians get a lot of fertilizer from Russia. So, the speech by Bolsonaro

of Brazil was very weighted. He wants an end to the -- an immediate ceasefire, said the Brazilian President, but he also thinks sanctions do

not accomplish what they're trying to do.

QUEST: Richard, I flew back from New York just this morning from London to New York, and on the plane were a couple of Presidents from various

countries, the President of Slovenia, who all have been at the funeral and then going on to the UN GA.

Is this going to be a trip that's worth the making? Is this going to be an important GA?

ROTH: I think it is, first time in three years, at least 140 world leaders, government leaders. President Biden, instead of speaking in the

traditional second slot for the United States on day one, today, is going late morning tomorrow. He will follow the Iranian President.

So, I think there is something for everybody in this one and plus, there is always shopping and Broadway.

QUEST: Excellent idea. And there may be some seats available on Broadway.

Richard Roth, good to see you, sir. Thank you.

Global divisions over the war, grabbing most of the headlines at UN. On the sidelines, a huge amount of philanthropic work comes together during UN GA

week. The deal, for instance, signed by Tony Elumelu Foundation with the UN Capital Development Fund, planning to support young entrepreneurs in Africa

with a focus on countries that historically have suffered from underinvestment.

Tony is with me. He joins me now from New York. It is good to see you, sir. I hope and trust you're keeping well.

Why -- this this new fund is very much -- it is very deliberately targeted to entrepreneurs. Nigeria and Africa has a huge number of entrepreneurs and

getting capital has been one of the problems. How will this help?

TONY ELUMELU, FOUNDER, THE TONY ELUMELU FOUNDATION: Richard, I am an example of success in Africa. there are a lot of opportunities on the

continent. Capital is very difficult to come by. I have -- I come from a modest background and have been able to grow both national businesses from

the modest background, but I'm not the only one.

There are a lot of other young Africans who are more energetic, equally intelligent, if not even more intelligent, but access to capital is very,

very difficult to come by in Africa, and that is why we are a capitalized entrepreneurship on the continent and that is why we believe that we need

to extend our hands to others and see how collectively we can make a difference on the continent.

We live in Africa, we have seen --

QUEST: Tony, do you prefer sort of grants, loans, mentoring? When you look at the mechanisms, the financing mechanisms to help young entrepreneurs,

what's your direction?

ELUMELU: You know, Richard, I come with experience. We, for the past 12 years have been capitalizing and supporting young African entrepreneurs and

from my interactions with them, I've always seen they need capital, they need mentoring. They need business education so that when the capital come,

they know how to manage the capital.

And we working with individuals and institutions, like the UN, the UNCDF. We think we can make a whole world of difference. And the truth is, if you

look at the joblessness and its impact on mankind and humanity, you know that we all are the global community and we will do something different, if

we stand up now and fight joblessness so that our future will be secured. What we're seeing here heads in that direction.

QUEST: So, one of the biggest concerns at the moment, the World Bank talked about it in its report last week. You may have heard earlier in this

program, Vincent Reinhart, is the idea of a global recession.

As interest rates go up in the developed world, emerging markets will feel the effect. Are you worried?

ELUMELU: I am very worried. I'm very worried. But you know, the glass is half full. Water is in the emerging market, even though there's inflation

and then it tries to go up and give more problems. We also see a lot of opportunities on the continent like most emerging markets.

I think that prioritizing the young ones, investing in their future will help to create ultimately sustainable economic prosperity for all.

[15:25:10]

So what I see, I don't see despair, I see opportunity for us to do more so that we can create the kind of prosperity that will move the world towards

more boom, rather than us being scared of a recession.

QUEST: We've all seen the boom and the bust cycle, and every time I've been in Nigeria, and in Africa, the sheer amount of entrepreneurship is

extraordinary, but I always worry, what is the key to unlock it? What do you think it is?

ELUMELU: Richard, I didn't hear you well.

QUEST: What is the key that unlocks the potential for these young people?

ELUMELU: You know, we need three things to unlock the potential of the young ones. First, we need the enabling environment. We need our government

to help create the enabling environment that enable young ones to succeed.

Access to electricity is so difficult in Africa, and without electricity, we can't do more as an entrepreneur. So we need to fix that.

Two, access to capital. Young entrepreneurs in Africa needs access to capital, affordable capital, that will help them prove their concept. And

that is why the Tony Elumelu Foundation will provide seed capital -- nonrefundable seed capital of $5,000.00 not because we have so much, but

because we want to give opportunities to young Africans to enable them to prove their concept, so their collective labor will have to develop Africa

a path to prosperity.

And the third thing they need, they need business education and mentoring. They need successful African business leaders to show example, also embrace

them, to show them how to walk the path and also have that leverage on our supply chain, so that will give them a helping hand.

All of us are where we are today at some point in our development, entrepreneurship journey, we've got opportunity, we've got a helping hand,

we've got a platform to support us, so that -- those three things will help young African entrepreneurs to do well.

QUEST: I'm grateful, sir. Thank you. We'll speak next, hopefully, when I'm down in your part of the world. Thank you.

ELUMELU: Look forward to it.

QUEST: Coming up: Unscrambling the supply chain, the chief of the US busiest port on surviving the post-pandemic surge will be with us after the

break.

QUEST MEANS BUSINESS. Good evening to you.

(COMMERCIAL BREAK)

[15:30:00]

(MUSIC PLAYING)

QUEST: U.S. markets are down sharply. Ford is off over 10 percent. Warning investors the power shortage and rising input prices have driven costs up

more than $1 billion more than expected.

Supply problem affecting deliveries of more than 40,000 trucks and SUVs. In all, seven out of 10 business economists in a recent survey say fixing the

supply chain is the most important step in fighting inflation.

The crisis of the pandemic is what brought it to a head. It overwhelmed the U.S. Port of Long Beach at one point. Dozens of cargo ships were lined up

along the California coast, waiting to unload. The containers on the docks for six days for trucks to pick them up and of course then to send them

back.

It is different. Now Mario Cordero is the executive director of the Port of Long Beach.

It is good to see you sir. I am grateful. Just tell me; we have spoken before the difficulties, particularly coming from China.

Has that now eased sufficiently?

MARIO CORDERO, EXECUTIVE DIRECTOR, PORT OF LONG BEACH: Thank you, Richard.

First of all, it has eased. I think at least as it relates to southern California and overall in the supply chain, we are seeing now some

moderation and some semblance of normalization. So much better situation today, as you referenced.

Right now, as of today, we have about 10 vessels that are backed up, waiting to get into the San Pedro Bay complex. Far better than the 109 that

was a record number back in January of this year. So needless to say, that metric, vast improvement.

What changed?

I know you put in new hours. And you changed certain working practices and brought other resources.

Fundamentally, what else has changed?

Was it a slowdown of things arriving?

CORDERO: I think one of the things was we had a full court press for all stakeholders, doing all we can or could to make sure that we created

velocity, we created efficiency and substantially mitigated delays.

So I think one of the things we all have to keep in mind, this was precipitated by the COVID-19 pandemic. Compared to what happened two years

ago, going back to 2020, particularly the spring, and where we are at today, I think, again, vast improvement.

We do have a strong economy. It remains a healthy appetite by the American consumer. But I think we are going to start seeing some slowdown in the

economy because we had a very hot economy that we had such a fast recovery from what we experienced in 2020.

QUEST: So on that issue, when we look at the numbers that we're seeing on inflation, I have heard some people suggest that up to 30 percent of

inflation is, if you will, energy costs or the worst thing about inflation is 30, 40 percent of energy costs. Then you have this 15 or 20 percent or

so related to supply chain issues that have pushed up prices.

Do you buy that?

CORDERO: Well, first of all international trade is a big component to our GDP. But the good news is this, number one energy prices are going down.

Number two, the cost of freight is going down.

Look at the cost of a container that comes from China to the West Coast. We have had 60 percent to 70 percent reduction of what that rate was earlier

this year. So progress metrics are improving here with regard to those two issues that you referenced.

QUEST: Demand-led inflation is what people say about the U.S. If interest rates are going up, that suggests -- or there will be a slowdown. You have

got a port that is on turbocharged at the moment as a result.

Are you going to have to revive that and start slowing things up a bit?

CORDERO: Number one, we are working on amplifying efficiency. Like what I said about the platform, the 24/7 framework, expanding hours. Again, what

you mentioned is the result of a good economy right now.

When you look at where is the demand in terms of any of these international carriers that you talk to, where is the market?

The market is in the United States. I think retail sellers are little bit tepid now. Demand is going to be slowing. Going back to what many of us

predicted earlier this year, we did say that, in the second half of 2022, we were going to see some normalization in the supply chain.

[15:35:00]

Again, you are starting to see that. So hopefully the actions of our leadership, including the Federal Reserve, we'll be able to control

inflation and avoid worst scenarios.

I think we are in a relatively good spot now, given -- we'll see what the Fed does tomorrow but I think the end goal here is to make sure that we are

able to control not only the inflationary rate but also to make sure, from the supply chain perspective, we create further efficiencies, avoid delays

and mitigate costs.

So on those metrics, we are certainly doing a lot better than we did earlier this year.

QUEST: Finally for the port itself, your ability to continue investing; I look at the other global supply hubs around the world. The ability for you

to continue to invest as interest rates, you will have to pay more yourself if you borrow?

CORDERO: Well, that is correct, Richard. At the port law meeting (ph) crisis, we build, and we have build. We are investing much of our revenue

into our capital improvement projects for fiscal year 2023. That number represents about $322 million, which represents 47 percent of our budget.

That represents 53 percent of our budget last year. So we will continue to invest in infrastructure. So I think the good news not only is the port law

meeting (ph) is positioned to invest but also keeping in mind that I have a lot of optimism, given that the current administration has earmarked money

for America's ports. Of course, we are beneficiary to. That

QUEST: Mario, it is so lovely to have you on the program tonight because we talk in such esoteric or general terms about trade. But when we think

about the port, you are actually moving the goods. You actually have the bit.

Everything we talk about, all the gadgets and everything, you are actually moving them. It's fascinating.

CORDERO: Well, thank you so much, Richard. Yes, trade starts at the ports.

QUEST: Thank you, sir.

Another contributing factor to the supply chain issue we have been talking about, of course, Beijing's zero COVID policy. In China, discontent over

these stringent COVID rules is rising and people are blaming the policy for a bus crash that killed 27 people. CNN's Ivan Watson explains from Hong

Kong.

(BEGIN VIDEOTAPE)

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): A deadly bus crash in southwestern China sparking anger over the country strict

COVID policies.

The vehicle, carrying dozens of residents from the city of Guiyang, as well as their driver, seen dressed in a hazmat suit, to a faraway quarantine

center. Hours later, the bus overturns, killing at least 27 people and injuring at least 20. A worker later seen spraying disinfectant on the

wreckage.

WATSON: The bus departed the southwestern city of Guiyang shortly after midnight on Sunday, with the goal of reaching a quarantine center in remote

Libo County, located more than three hours' drive away.

Authorities say the vehicle tumbled into a ravine at 2:40 am, raising the question, why was it so important to rush suspected close contacts of COVID

patients such a long distance, so late at night, especially in a province where officially there have been only two deaths from COVID since the start

of the pandemic?

WATSON (voice-over): The Chinese government is obsessed with eliminating all traces of COVID from the country, locking down entire cities for weeks

and even months.

Authorities confined nearly 2 million residents of the city of Guiyang in their homes, starting on September 2nd. Days later, trapped residents

suffering from food shortages voiced anger and frustration.

"Where's the Communist Party?" one man yells. "We've trusted the party and the government."

Things are worse in more remote areas. In the Western Xinjiang region, a desperate mother films her children, sick with fever, and complains, COVID

restrictions prevent her from taking them to a hospital.

Recording of another call for help to the authorities in Xinjiang's capital, this from a gastric cancer survivor who says he's dying from lack

of food. The man, who we won't name for his safety, shows CNN pictures of his empty refrigerator.

He says he needs frequent small meals since doctors removed most of his stomach for cancer treatment and says police detained and beat him after he

went out on the street, looking for food.

In the capital of Tibet this month, officials marched residents off to quarantine camps. The Chinese government sent suspected COVID cases en

masse to sprawling makeshift facilities, where some complain of wretched conditions.

After Sunday's deadly bus crash, a deputy mayor apologized and promised an investigation into the accident. But even on China's heavily censored

internet, critics are chiming in.

"What makes you think we won't be on that late night bus one day?" one person writes.

[15:40:00]

They have a point. While the rest of the world moves on from the pandemic, in China, there is no end to the campaign to eliminate COVID-19, no matter

the cost -- Ivan Watson, CNN Hong Kong.

(END VIDEOTAPE)

QUEST: Extraordinary.

And that is QUEST MEANS BUSINESS. At the top of the hour, together, we will make a dash for the closing bell. I think it will be a bit of an ugly dash

as the markets are down sharply. The Fed on the first day of its two-day meetings. Next we will have "LIVING GOLF." QUEST MEANS BUSINESS.

(MUSIC PLAYING)

(COMMERCIAL BREAK)

(MUSIC PLAYING)

(LIVING GOLF)

(MUSIC PLAYING)

(COMMERCIAL BREAK)

[15:58:15]

(MUSIC PLAYING)

QUEST: Hello, I'm Richard Quest. Together, let's have a dash to the closing bell. We're two minutes away, give or take. All eyes on the Fed,

expected to raise interest rates 75 basis points, again. It might be good news for the inflation fight; bad news for the markets.

The Dow has been lower all day, as has the S&P, the Nasdaq, the three indices and a few percentage points above their June lows and could be

testing that before long.

When it comes to inflation, taming inflation and curbing demand is half the battle. Supply chains also have to run smoothly. I asked (INAUDIBLE)

busiest (INAUDIBLE) port in Long Beach how things are moving.

(BEGIN VIDEO CLIP)

CORDERO: I think at least as it relates to southern California and overall in the supply chain we are seeing now some moderation and some semblance of

normalization. So much better situation today, as you referenced.

Right now, as of today, we have about 10 vessels that are backed up, waiting to get into the San Pedro Bay complex. Far better than the 109 that

was a record number back in January of this year. So needless to say, that metric, vast improvement.

(END VIDEO CLIP)

QUEST: The Dow components: Apple is doing extremely well. It is up 1.5 percent. Ad Boeing is also up on the Chinese regulators. Boeing is working

with them to return the 737 MAX to service. It's already been returned elsewhere.

As for the rest of it, it is just a sea of red.

The banks Goldman, JPMorgan, (INAUDIBLE), over 1 percent; Barclay's seen trading revenues, is also sharply lower. Nike is the laggard at the bottom

of the market, down 4.5 percent.

That is the way the markets looked. The dash to the closing bell. Tomorrow, of course, we will have the Fed rate decision; a 0.75 percent raise

expected.

Until then, whatever you are up to in the hours ahead, we hope it is profitable. The closing bell is ringing.

END