Return to Transcripts main page
Quest Means Business
Biden Declares Rock Solid Support For Finland; US Defense Secretary Speaks To CNN; Federal Trade Commission Investigating ChatGPT Maker, OpenAI For Potential Consumer Harm; SAG-AFTRA Board Votes Yes On Strike; Disney CEO Open To Selling ABC, Cable Networks; Babolat On Signing Future Stars. Aired 3-4p ET
Aired July 13, 2023 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LYNDA KINKADE, CNN HOST: The winning streak continues on Wall Street. The Dow posting its fourth day of gains, though the rally seems to be easing a
bit. Those are the markets and these are the main events:
Russia has already lost the war on Ukraine. President Biden delivering a final message after five days of diplomacy in Europe.
Hollywood is preparing to go dark as last-minute talks to prevent an actor strike fail.
And the US Federal Trade Commission opens an investigation into the company behind ChatGPT.
Live from Atlanta, it is Thursday, July 13th. I'm Lynda Kinkade in for Richard Quest and this is QUEST MEANS BUSINESS.
Good evening.
Tonight, US president, Joe Biden has wrapped up a critical five-day trip to Europe declaring Russia's Vladimir Putin has already lost his war in
Ukraine and that NATO has never been stronger.
Meeting Nordic leaders in Helsinki, Mr. Biden pledged rock solid support for NATO's newest member, Finland, and he addressed why Ukraine has not yet
been invited to join the Alliance.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES: . can join NATO while a war -- a war is going on, where a NATO nation is being attacked, because that
guarantees that we're in a war, and we're in a Third World War.
So it is not about whether or not they should or shouldn't join, it is about when they can join, and they will join NATO.
(END VIDEO CLIP)
KINKADE: Well, Jeremy Diamond is following all the developments and joins us now from the White House.
Good to have you with us, Jeremy.
Just before leaving Finland, the US president said a stronger NATO makes the entire world stronger. Those words, just before he left after obviously
welcoming Finland into the alliance and getting the greenlight for Sweden to join.
Finland's entry effectively doubles the NATO's border along Russia. So does the US consider this trip a success?
JEREMY DIAMOND, CNN WHITE HOUSE CORRESPONDENT: Yes, Lynda, they certainly do.
And there is good reason for it as well. I mean, just consider what the picture looks like as President Biden was heading over to Europe for this
multi-day trip that spanned three countries.
You know, it started with President Biden having just greenlit the sending of cluster munitions to Ukraine, a decision that was controversial, and
that really signaled some divisions within the Alliance over that. There were questions about whether Ukraine was going to be satisfied with the
level of security guarantees provided by the NATO Alliance and the promise of a future in that Alliance.
And there were questions also about whether or not Sweden was going to be able to get into NATO, whether Turkey would lift its objections.
And so during this trip, what you have seen, you saw the president reaffirming the strength of the Alliance by offering these long-term
security guarantees to Ukraine alongside the other allies. They offered a commitment that Ukraine will join the NATO Alliance after the war is over.
You saw President Biden and President Zelenskyy putting to rest any of those tensions that seemed to be simmering at the surface in their meeting
together and President Zelenskyy affirming his gratitude. And of course, you saw Turkey clear the way for Sweden to be able to join this Alliance.
So by all of those measures, it does appear that the president was able to emerge here with really what has been his focus, which is showing that the
NATO Alliance is united and also demonstrating that the US and that NATO Alliance is committed to Ukraine's long-term struggle in this war against
Russia, and it seems like he was able to accomplish those various points along this trip.
KINKADE: And Jeremy, one of the questions at that press conference earlier centered on a concern that the US might withdraw from NATO at a future
date, under a future president, and we know that former President Trump threatened just that.
How did the US President Biden react to that question?
DIAMOND: You know, Lynda, what's especially interesting about that is that five years earlier, it was in that very same room, where former President
Trump sided with Russia when he was asked about US intelligence and Russian election interference and five years later, you have President Biden there
welcoming the latest addition to the NATO Alliance and promising to defend every inch of NATO territory, including now, the territory of Finland.
[15:05:13]
And the president made clear that the US will remain in the NATO Alliance. He said that is a guarantee.
He later said that, look, as the as much as you can promise anything, he was promising that and he was saying that based on the fact that he
believes that the American people and the overwhelming majority of lawmakers in the US Congress are ultimately committed to the future of the
NATO Alliance, and so the United States future within it.
Now, that being said, even as he emerged from this summit, with a strengthened NATO Alliance, with all of these commitments to Ukraine's
long-term security, there is no question that there is a time element here, both in the United States and in other countries, in terms of how long are
these countries going to be willing to provide the level of support that we have seen for Ukraine. There have been questions about it, and so far, no
cracks have really emerged.
But here in the United States, there certainly are a minority of Republican lawmakers, who have voiced concerns about continuing to provide that level
of support to Ukraine.
The two leading Republican presidential candidates have cast doubt on long term US support for Ukraine. So it certainly is a question that's on the
minds of many of the US' allies, and I think it's one of the reasons why that question was asked during this news conference in Finland.
But the president, to the best of his abilities, you know, was saying that the US is committed to NATO and NATO in turn is committed to Ukraine.
KINKADE: Exactly, and it all plays into the question of just how long will this war last.
Jeremy Diamond outside the White House, thanks very much.
Well, US secretary of Defense, Lloyd Austin sat down for an exclusive interview with CNN's Wolf Blitzer.
He has no doubt that Ukraine will eventually join NATO. He told our Wolf that Vladimir Putin has brought NATO closer to Russia's doorstep.
(BEGIN VIDEO CLIP)
WOLF BLITZER, CNN HOST, "THE SITUATION ROOM": From a military standpoint, Mr. Secretary, how close is Ukraine to meeting NATO standards?
LLOYD AUSTIN, US SECRETARY OF DEFENSE: Well, there are a number of things that will have to be done, as you know. A big part of their inventory is
legacy equipment. And so, in terms of training and equipping, there is work to be done, but we're doing that work as we're helping them as they fight
this war.
And so things have been done up to this point. There is more that will need to be done to ensure that they have a full complement of capabilities
there.
BLITZER: So you have no doubt that after the war, Ukraine will become a member of NATO.
AUSTIN: I have no doubt that that will happen, and we heard just about every -- all the countries in the room, say as much and I think that was
reassuring to President Zelenskyy.
But there are other things that have to happen as well. You know, judicial reform. You know, things that make sure that the democracy is in good
shape, and so those things will take place over time.
BLITZER: How much time do you think it will take after the war? Let's assume the war ends, God willing, it will end someday, how much time will
it take for NATO to join -- for NATO to welcome Ukraine as a full member?
AUSTIN: I won't speculate on that, Wolf. I will just say that all the countries that I've witnessed are interested in moving as quickly as
possible.
BLITZER: Do you think all 31 members of NATO right now want Ukraine in?
AUSTIN: I think it'll be 32 by that time.
BLITZER: With Sweden.
AUSTIN: But -- right, but I do believe that everyone wants Ukraine to be on board.
BLITZER: As I said, Sweden is now set to join NATO. How is it from your analysis and you've got good data analysts, how is Putin reacting to this
expansion of NATO?
AUSTIN: Well, I'm sure Putin is very concerned, and this is probably something that he didn't expect to happen, although President Biden warned
him of this at the very beginning.
But, you know, he's brought NATO closer to his doorstep. And so, you know, if you were him, you'd certainly be concerned about what you're seeing.
But countries like Sweden and Finland bring a lot to the alliance and we're happy to have them on board, and I was just in Sweden a couple of weeks
ago. I got a chance to spend time with the Minister of Defense and visit some of their troops, look at their capabilities.
They will bring value to the Alliance right away, and it is a strong democracy, Wolf, that's really the most important point.
(END VIDEO CLIP)
KINKADE: Well, you can catch the full interview on "THE SITUATION ROOM" tonight at 6:00 PM Eastern, that's 11:00 PM in London.
Well, a Ukrainian general says his forces now have weapons that could radically change the war. He told CNN that US cluster munitions just
arrived, but haven't been used yet on the battlefield.
CNN's Alex Marquardt reports.
[15:10:08]
(BEGIN VIDEOTAPE)
ALEX MARQUARDT, CNN SENIOR NATIONAL SECURITY CORRESPONDENT: These American cluster munitions that have just been given to Ukraine could soon have a
significant and immediate impact on the battlefield, that's according to Brigadier General Alexander Tarnavsky, who we spoke with earlier today.
He says he expects Russian soldiers to be afraid of them and to in fact, leave areas where these cluster munitions could be most effective. He
acknowledges how dangerous they are and how they need to be kept far away from civilians.
He says their use will only come within a very strict framework. In fact, a deal that was struck between the United States and Ukraine that governs
their use, he says Ukrainian forces will not use them in densely populated areas, they'll only be used against Russian forces, and their use will be
carefully tracked for future de-mining efforts.
He says these are not like other weapons. They are so specialized that the permission to use them will have to come from senior leaders. Here's a
little bit more of what he told us in our interview today.
(BRIGADIER GENERAL ALEXANDER TARNAVSKY speaking in foreign language.)
TRANSLATION: In general, this is a very powerful weapon.
MARQUARDT: Have you used them already? And how much do you think they're going to change the fight?
(BRIGADIER GENERAL ALEXANDER TARNAVSKY speaking in foreign language.)
TRANSLATION: We just got them. We haven't used them yet, but they can radically change [the battlefield]. Because the enemy also understands that
with getting this ammunition, we will have an advantage.
MARQUARDT: General Tarnavsky is in charge of what is arguably the most important part of this counteroffensive, a wide section of the southern
front. His force is trying to pierce through those Russian defenses and divide that land bridge, that Russian-occupied area that connects Crimea
with Russian-occupied Donbas and the rest of Russia.
Now, in response to the US announcement that Ukraine would be getting American cluster munitions, which are known as DPICMs, Russia said that
they would reciprocate if they are used, and we also heard from the former president, Dmitry Medvedev, who said that it is now time for Russia to use
up its arsenal of what it calls these inhumane weapons.
We have to note that of course, Russia has been using their own cluster munitions against Ukrainian troops and Ukrainian civilians since the very
beginning of this war, and that was a big part of why the US -- the Biden administration said that they were giving Ukraine these weapons which have
been extremely controversial.
Alex Marquardt, CNN, Dnipro, Ukraine.
(END VIDEOTAPE)
KINKADE: Our thanks to Alex.
Well, these days, people are using ChatGPT for everything, from cover letters to vacation plans to legal documents, but there are growing
concerns about risks posed by artificial intelligence.
And now, the US government is stepping in to investigate. We will have details in a live report when we come back.
(COMMERCIAL BREAK)
[15:15:22]
KINKADE: Welcome back.
US regulators are opening an investigation into the maker of ChatGPT saying the artificial intelligence technology has the potential to cause harm to
consumers.
The Federal Trade Commission is scrutinizing OpenAI over possible mishandling of personal data and for its potential to give inaccurate
information that could ultimately damage people's reputations.
This is the US government's first real effort to regulate the AI industry.
Well, for more, CNN's business writer, Clare Duffy joins us now live.
Good to have you with us, Clare.
So as the race to develop AI rapidly increases, regulators really are trying to play catch up here.
The Federal Trade commissioner has sent this 20-page demand letter to OpenAI. Just take us through what exactly they're looking for.
CLARE DUFFY, CNN BUSINESS WRITER: Right, Lynda.
So the FTC has sent dozens of questions to OpenAI trying to understand how its systems work, how it trains its AI models, how it uses people's
personal data. Some of the questions in that 20-page demand letter include requests for information about complaints OpenAI has received from the
public, a list of lawsuits that the company is involved in, steps it has taken to address hallucinations, which is this issue where the AI system
really confidently states false information as if it's true and this could pose a legal threat to OpenAI.
And I think it's also really interesting to think about the broader ramifications of this inquiry for the entire AI industry. This is the first
real effort, as you said, by US regulators to exert some oversight over the AI industry. And a lot of these questions that they're asking of OpenAI
could be asked of lots of different AI companies -- Lynda.
KINKADE: Yes, exactly and we have had some other interesting developments today in terms of OpenAI, the maker of ChatGPT, signing a deal with the
Associated Press.
What can you tell us about that?
DUFFY: Yes, so the Associated Press and OpenAI have signed this deal wherein OpenAI will license some of the Aps past content to train its AI
model. So it'll be using some of those past news articles to help train the AI, and the company says that this is going to improve the capabilities and
usefulness of AI products.
And in return, the AP will get to use some of OpenAI's technologies, some of its expertise to sort of explore the uses of generative AI in the news
business, although the Associated Press was careful to say that it does not use generative AI in its news stories. This is just sort of an exploratory
process here.
KINKADE: Certainly. So how many developments to stay across.
Good to have you with us, Clare Duffy from New York. Thank you.
Well, in the UK, the company, Facewatch is using AI to help stores identify and log suspected shoplifters. Not only that, it also shares their
identities with other stores and some Brits are worried about the technology's implications.
Anna Stewart has the story.
(BEGIN VIDEOTAPE)
ANNA STEWART, CNN REPORTER (voice over): Got that feeling you're being watched? You probably are and it is not just CCTV, AI could be watching,
too.
STEWART (on camera): So your camera should have picked me up as I walk through the front door.
SIMON GORDON, FOUNDER, FACEWATCH: Yes.
STEWART: So if you were the security guard, and you've discovered that I've stolen something, you would go to this and find me.
GORDON: Yes, I agree. I'd scroll down and look at the system and I'd know what time you've walked in, so I'd be able to find your face. And in fact,
here's your face.
STEWART: Stole a load of stake.
GORDON: And ran out.
STEWART (voice over): I'm a suspect, a case of mistaken identity, I assure you.
But here is what happens next. A suspect's biometrics are stored by Facewatch for a year. If they return to the shop, their presence will be
alerted to staff and for prolific thieves, all of those suspected of taking a high-value item, the biometrics could be shared with other stores in the
area -- all legal under British law.
GORDON: I was reporting all these crimes to the police, trying to help the police, giving them CCTV. Nothing ever happened.
STEWART: This didn't start in a store, but a wine bar. London's oldest wine bar, in fact, run by Facewatch founder, Simon Gordon.
GORDON: Our goal is to be the trusted -- and we are -- the trusted name in facial recognition and crime prevention. We're just here to prevent crime.
We don't -- we are not --
STEWART: Isn't that the police's job? Are you filling a gap that shouldn't be filled by private businesses.
GORDON: Everybody should be taking security seriously.
STEWART (voice over): Gordon says there is no bias in their AI algorithms and the company also uses human super facial recognizers, but mistakes
happen.
Accuracy was 99.85 percent in June according to Facewatch.
[15:20:06]
UNIDENTIFIED FEMALE: If you're part of a watch list, your information is held for up to a year because there is no real due process. This is all
done by a private company. There is no police involvement. There's no direct evidence that anyone has actually committed a crime, so you could
very easily be wrongly placed on watch list and have your life really changed because some AI-powered technology has flagged you as a criminal,
which you aren't.
STEWART (voice over): For shoppers leaving a store with Facewatch tech, there is a mix of opinions.
UNIDENTIFIED FEMALE: I don't want my face to be recognized. I'm just doing my shopping.
UNIDENTIFIED FEMALE: I mean, it's uncomfortable, but I mean, I understand why they're doing it.
UNIDENTIFIED MALE: I think in this day and age, like even our phone, facial recognition or like biometrics and everything, it's all around us, so I
don't think there's any escaping it.
STEWART (voice over): Back at the supermarket, it is time to see how quickly alarm bells will ring now I've been flagged.
STEWART (on camera): That was quick, I didn't even make it done the first aisle.
GORDON: That's a match. It is 99 percent similarity. You would trigger an alert in a store down the road if you'd carried out more than one crime
here or if it was over a certain value.
STEWART: Well, thanks for showing me how it works. Could I ask that you delete my profile?
GORDON: Absolutely.
STEWART: Not really.
STEWART (voice over): Anna Stewart, CNN, London.
(END VIDEOTAPE)
KINKADE: Our thanks to Anna.
Well, US prosecutors have filed fraud charges against the former CEO of Celsius Network, a crypto exchange that went bankrupt last year.
Alexander Mashinsky is accused of misleading customers about the financial risks of the company's business. Federal prosecutors are charging him with
securities fraud, wire fraud, and commodities fraud.
He has denied similar charges filed earlier this year by the state of New York.
Kara Scannell joins me now with the details.
And Kara, these are just the latest charges against Celsius and Mashinsky. The fraud charges are really piling up here.
KARA SCANNELL, CNN CORRESPONDENT: Yes, Lynda, that's right. I mean, these charges that were announced today by the US attorney's office for the
Southern District of New York, charged Mashinsky with misleading investors and defrauding customers in this company, Celsius.
And now, prosecutors say that they gave the impression to customers that this was a lender that they could deposit their money with the lender,
Celsius, and get paid interest, but in reality, prosecutors say what Mashinsky did was he invested the customer moneys into much riskier
businesses, and as you noted, Celsius did file for bankruptcy court protection last November and prosecutors are charging him with securities
fraud, commodities fraud, and wire fraud.
Now Mashinsky and the chief revenue officer of Celsius were also charged with manipulating the value of their proprietary token known as cel, and
prosecutors say that when Mashinsky was artificially inflating the value of that token, he was secretly offloading it and made more than $42 million
from those sales. It is just the latest in the charges.
Also today the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Federal Trade Commission all announced civil
lawsuits against Mashinsky, and as you said that the New York attorney general's office also filed civil fraud charges against him earlier this
year.
Now, Mashinsky's attorneys say that they will vigorously -- he vigorously denies these allegations and that they will fight these charges in court --
Lynda.
KINKADE: All right, Kara Scannell, thank you for staying across that. We will continue to follow that story. Thanks very much.
Well, some of the biggest names in Hollywood are on strike and it stands to have a major financial impact on production hubs all over the world. We'll
have that story when we return.
(COMMERCIAL BREAK)
[15:26:37]
KINKADE: Hello I'm Lynda Kinkade, there is more QUEST MEANS BUSINESS in a moment when we will be in Hollywood where an actor strike is threatening to
grind the industry to a halt.
And without tennis greats like Nadal and Federer, this year's Wimbledon tournament offers up-and-comers a chance to win the spotlight. I'll speak
to the CEO of Babela (ph), which sponsors some of the sports top players.
Before that, the headlines this hour: A court in Italy has acquitted a school janitor who admits to groping a student under her trousers because
the incident lasted less than 10 seconds. Judges accepted the janitor's explanation that it was a clumsy joke.
Outraged Italians are posting protests. Videos online like this one, illustrating just how long 10 seconds is.
Italy has issued heatwave warnings for 10 cities as temperatures rise across the Mediterranean region. A heatwave has been named Cerberus after
the three-headed dog that guards the underworld in Greek mythology.
The Italian Meteorological Association predicts that rising temperatures will break the European record of 120 degrees Fahrenheit by next week.
US Food and Drug Administration has approved over-the-counter birth control pills for the first time. Opill is a daily oral contraceptive mini-pill
containing only the hormone progestin.
The company says the product is said to be available in stores and online by early 2024.
Moments ago, Hollywood actors announced that they are going on strike triggering the biggest labor crisis in decades for the entertainment
industry.
Talks between the actors union SAG-AFTRA and the major studios broke down last night. You are looking at live pictures of SAG president, Fran
Drescher delivering a press conference press conference. The union's governing board voted to authorize the walkout starting at midnight in Los
Angeles. They will now join the Writers Guild of America on the picket lines.
The strikes threaten to overshadow some of this summer's biggest movies. During last night's premiere of "Barbie," a production from our parent
company Warner Bro. Discovery. The stars and the director stood with the union. Here is what Margot Robbie, Ryan Gosling, and Greta Gerwig had to
say.
(BEGIN VIDEO CLIP)
MARGOT ROBBIE, ACTRESS: Yes, absolutely. No, I am very much in support of all the unions and I'm a part of SAG, so I would absolutely stand by that
strike.
RYAN GOSLING, ACTOR: I would support the actors. Yes.
GRETA GERWIG, ACTOR: I love the union. They've always protected all of the artists I know and I really want them to stand strong and win their fight.
(END VIDEO CLIP)
KINKADE: Well, the actors in studios appear far apart on some major issues facing the industry. The union's main demands include reforming rules for
digital auditions, new guidelines for residuals, better minimal pay, regulation over the use of AI.
Union leaders expressed their frustration at today's press conference.
(BEGIN VIDEO CLIP)
DUNCAN CRABTREE-IRELAND, CHIEF NEGOTIATOR, SAG-AFTRA: A strike is an instrument of last resort.
We tried for four weeks to reach a deal with the AMPTP and unfortunately, they have left us with no alternative.
Although we're all disappointed with the AMPTP's reluctance to cooperate, the solidarity among SAG-AFTRA members has never been stronger.
(END VIDEO CLIP)
[15:30:17]
KINKADE: Natasha Chen has been following the developments from Los Angeles and joins us now live.
Natasha, good to have you with us. We've been covering the writers' strike for the last 70 days. Now the actors have voted to join the picket lines.
This is really the biggest walkout in the industry in about six decades.
NATASHA CHEN, CNN NATIONAL CORRESPONDENT: Yes, Lynda. This is a big moment. We just stepped out of the press conference happening inside at SAG-AFTRA
headquarters here in L.A., where the president of the guild, Fran Drescher, gave a very impassioned speech.
She said that the proposed changes by the studios were incremental. She compared that to moving furniture on the Titanic. There are a lot of really
big changes happening in the industry, she said. As far as technology, we're looking at artificial intelligence really taking a larger role in
productions.
And, you know, they're still fighting for better wages for those middle class workers, the middle class actors and writers, who are struggling to
afford to live in major film hubs, like Los Angeles, New York, Chicago, Atlanta.
So this is a very serious moment, she said, that the strike is being done with great sadness. She said that the eyes of the country's labor unions
are on them now, 160,000 actors now joining the more than 11,000 writers, that have already been on strike for more than 70 days, Lynda.
KINKADE: This, of course, has ripple effects, Natasha. There's so many people that work in industries related to the entertainment industry.
What are the wider ramifications of the strike?
CHEN: Right, we have been talking to people who do not have any jobs related to being on a film set, people like janitors, people running delis
and restaurants, dry cleaners, prop and set warehouse owners, makeup artists.
These people have been out of work or seeing drying business since May 2nd. Since the WGA strike began. That's when productions started to slow down,
because the only shoots that have been happening since May have been ones where the scripts have been locked in, where they no longer need writers to
continue on set.
Those people are oftentimes low income, working wage folks. They are not involved in these contracts at all. But they serve these productions.
They're on unemployment now. We talked to somebody at a prop warehouse, who had to lay off all his employees, who are like family, he said.
Another prop, the flower warehouse, who provides all of the set flowers for different TV shoots. She said we're all dying here.
And the catering businesses, who usually provide sandwiches for these sets, they're not seeing any business, either. They all know, at this moment,
it's about to get worse. And everyone has different takes on this. There are people who definitely support the unions; at the same time, worried
about how they're going to pay their bills, Lynda.
KINKADE: Yes, exactly. Natasha Chen for us in Los Angeles, thanks so much for that update. Much appreciated.
We're going to stay on this story. The dual writer actor strikes stands to have a major economic impact. The last writers' strike in 2008, which
lasted 100 days, is estimated to have cost California $2.1 billion. The strike is reaching far beyond Hollywood, hitting productions in places like
Europe and the Pacific that employ union members.
Some productions have already hit the pause button, like the popular "White Lotus," a show by our parent company Warner Bros. Discovery, as well as
"Gladiator II" and "Mortal Kombat II"
Bill Wolkoff is a TV writer, producer and member of the writers guild. He joins me now from the picket lines in L.A.
Good have you with us.
BILL WOLKOFF, TV WRITER, PRODUCER AND WRITERS GUILD MEMBER: Hi, Lynda. Good to talk to you.
Mr. Wolkoff, quite a fitting name. One my producers was suggesting given that you are amongst the thousands walking off the job, the actors have now
joined in the strike.
How significant is this?
WOLKOFF: I think it's historic. This is union and labor solidarity at its purest. We've had SAG-AFTRA supporting us for -- this is our 11th week now.
And now we get to turn around and support them as they also strike for a fair contract. So I think this couldn't be bigger.
KINKADE: Yes, exactly. Of course, take us through some of the demands.
[15:35:00]
There have been negotiations that have fallen through over the past 11 weeks, as you pointed out.
What do writers want?
WOLKOFF: We are fighting to be able to share fairly in the success of our work, when our work is successful, for the studios and companies and they
have refused to do that.
Specifically, we are asking for writers to be able to continue on in TV, past just the initial writing phase and be part of the production process,
which allows for membership to experience upward mobility.
Without that, it's impossible for members to be mentored and learn how to produce TV when they're at that level. We're asking for residuals in
streaming that accurately reflect when our work is successful for the studios and companies.
And we're asking for protections, so that we're not -- that writers generate all the literary material. And that literary material is not
generated by artificial intelligence.
KINKADE: Yes, so in terms of the residual payments, writers want to ensure that, when content is replayed on a streaming platform, you still get
additional pay for it, as you would on linear TV.
WOLKOFF: Exactly, those residual payments are what keep writers going. That model has been in play now for decades. But the studios and companies
have found loopholes in which to stop doing that.
Sometimes writers will have months, if not years between jobs. That's just the nature of the business. Those residuals keep you going during those
lean times. So we want to a formula that accurately reflects what the streaming model is.
But it requires studios and companies to be transparent with when our work is successful for them.
(CROSSTALK)
WOLKOFF: I hope they do that.
KINKADE: In terms of the negotiations so far, has there been any sense of a compromise on any of those issues?
WOLKOFF: They haven't even engaged with us in those issues. Our leadership was very transparent. And we released all of our proposals. And nine of our
key proposals they never even engaged with once during the entire time we were negotiating with them.
There was literally no bargaining on it. They just stonewalled us. And then at the very end of the negotiations, they said, here, we'll give you these
little gains that we've offered you if you take everything else off the table. So there was no bargaining. We were ready to bargain but they did
not want to bargain with us.
KINKADE: Quickly, do you expect to hear back now that the actors have voted to strike?
WOLKOFF: I hope so. We have been outside their gates every single day. I'm standing outside of CBS Television City in the Beverly Fairbanks area. We
have pickets going outside of every single studio.
They know where we are. We are ready to go back to the table. We have been ready for months. This is day 73 of our strike. And I hope now they will
reengage with us.
KINKADE: All right, Bill Wolkoff, great to have you on the program, thanks for your time.
WOLKOFF: Thank you so much.
KINKADE: Disney's CEO, Bob Iger, blamed actors and writers for shutting down Hollywood. He told CNBC, the unions need to be realistic about the
business environment and what studios can deliver.
He's facing criticism over that position, given that he stands to be compensated more than $25 million this year alone. These strikes add weight
to an industry already under pressure to evolve. Bob Iger spoke about potentially selling Disney's cable channels, when he was on CNBC earlier.
(BEGIN VIDEO CLIP)
BOB IGER, CEO, DISNEY: We're going to be expansive, I think; you can interpret what that word means. We're just getting at that work. But we
have to be open minded and objective about the future of this businesses.
UNIDENTIFIED MALE: Meaning, they're not core to Disney?
IGER: They may not be core to Disney, yes. There's clearly creativity and content that they create that is core to Disney. But the distribution
model, the business model that forms the underpinning of that business and that is delivering great profits over the years is definitely broken.
(END VIDEO CLIP)
KINKADE: Oliver Darcy is covering these developments and joins us from New York.
Good to see you, Oliver. So the Disney CEO has extended his contract with the company, as you just heard there. He's been speaking about the
possibility of unloading TV assets. He sees the future in streaming, not linear TV.
Could you explain a little bit about what he wants to do?
What he sees happening?
OLIVER DARCY, CNN BUSINESS SENIOR MEDIA CORRESPONDENT: Right, this is all about Bob Iger trying to set Disney up for the future. And what he said
today on CNBC, he thinks that the business models for these linear channels, including ABC, the broadcast network, that it's broken.
[15:40:00]
He is basically putting a for sale sign on these channels, including ABC, trying to set Disney up for the future. He talked about streaming, the
importance of the Disney+ platform in setting up Disney for success in the long term.
He extended his contract, it was announced yesterday. So, I think in the next two years, you're going to really see him make some big moves to get
Disney set up for the future, to get set up for a successor and be in good shape moving forward.
KINKADE: He also spoke about the writers' strike, saying essentially, he respects their fight for better compensations but he found it all quite
disturbing. Some of these comments coming under a lot of criticism.
DARCY: Studio executives, they're frustrated by these strikes. They view their business as under attack almost. The streaming landscape, the
streaming revolution, it has upended the traditional business.
So they're saying, their argument, is that this call, these calls for higher compensation, higher wages, more benefits are coming at a really bad
time because they're hurting. They're laying off people.
So they're saying, basically, it's difficult enough to operate, nevertheless add benefits for the writers and the actors. Of course, the
actors and writers feel quite differently. They think the streaming revolution has also hurt their wages and their wants.
They want these executives to take that into account. So Bob Iger, when he was talking to CNBC, he said, basically, look, I get it. I get you want
higher wages. I get that's your job. But this is coming at a really bad time. And it was disturbing, I guess, in his own words, to him.
KINKADE: Oliver Darcy, good to see you. Thanks for joining us.
Still to come on the program, a former U.S. tennis pro is helping protect the world's great whales from their biggest threat.
(MUSIC PLAYING)
(COMMERCIAL BREAK)
(MUSIC PLAYING)
KINKADE: Welcome back.
Whales are a crucial component to a healthy ocean and a livable planet. Scientists have discovered they're actually ecosystem engineers, providing
nutrients to phytoplankton, which helps sustain fish stocks.
Phytonutrient enriched phytoplankton also builds large amount of CO2 from the atmosphere and reduces at least half the oxygen that we breathe. Today
on Call to Earth, we met a team of whale guardians, helping to protect the massive mammals from one of their biggest threats.
[15:45:00]
(BEGIN VIDEOTAPE)
(MUSIC PLAYING)
ZAIN ASHER, CNN ANCHOR AND CORRESPONDENT (voice-over): It's been a quiet day on the Sea of Cortez and for conservation biologists Michael Fishbach
and Delphi Waters, that means frustration.
DELPHI WATERS, CO-FOUNDER, WHALE GUARDIANS (voice-over): It's been a bit challenging, to be honest.
ASHER (voice-over): They spent hours on this little research boat, hoping to get up close and personal with the largest animal ever to exist, the
blue whale.
UNIDENTIFIED FEMALE (voice-over): We'll hear him before we see him.
ASHER (voice-over): Also on board are world renowned right nature photographers Christina Mittermeier and Paul Nicklen.
UNIDENTIFIED MALE (voice-over): I see a blow hole here.
UNIDENTIFIED FEMALE (voice-over): I heard a blow.
Fishbach, a former U.S. tennis pro, has been coming here for 29 years and is unwilling to accept defeat.
MICHAEL FISHBACH, GREAT WHALE CONSERVATOR: Sometimes you're in a situation like we're in right now. And something unbelievable happens, because you
hung in there.
UNIDENTIFIED FEMALE: Here it comes, it's coming.
UNIDENTIFIED MALE: Is he coming to us?
UNIDENTIFIED FEMALE: Yes, he's --
(CROSSTALK)
UNIDENTIFIED FEMALE: -- coming this way.
(OFF MIKE COMMENTS)
UNIDENTIFIED MALE: Right here, right here. It's under --
(CROSSTALK)
UNIDENTIFIED MALE: Jesus! It's real. (INAUDIBLE).
UNIDENTIFIED MALE: Oh, he's right under the boat.
UNIDENTIFIED FEMALE: Wow, the size of this animal.
ASHER (voice-over): This is no sightseeing trip. Each winter, Michael and Delphi spend at least two months here, capturing photo IDs of whales'
dorsal fins, which they use to map critical feeding and breeding habitats.
And as cofounders of the program, Whale Guardians, the father-daughter duo ultimately aim to protect great whales from their biggest threats.
UNIDENTIFIED FEMALE: Preventing ship strikes on whales, especially for the larger whales, is critical to their conservation, because it is the leading
cause of death for many of these species.
ASHER (voice-over): Whale Guardians works directly with the maritime industry to mitigate unintended collisions.
UNIDENTIFIED FEMALE (voice-over): So really, the only way that we've found with the technology and everything we have at our disposal in this day and
age is to separate the shipping routes from the whale habitat.
UNIDENTIFIED MALE: It turns out that the shipping industry actually had never really been very well educated about the ship strike issue. So I
started going around and giving them three-hour presentations on what the heck was actually going on.
And what did I discover?
To my great surprise, they cared.
ASHER (voice-over): Fleets that have volunteered to take part are given maps and rerouting documents to help them steer around migrating and
breeding pods.
UNIDENTIFIED FEMALE (voice-over): Which means that every one of those vessels has the opportunity, when deemed safe, to avoid this whale habitat,
where, otherwise, they would have no idea that they're going through critical whale habitat. And we have seen an amazingly heartwarming response
in the industry.
ASHER (voice-over): So far, Whale Guardians have successfully partnered with industry organizations in Chile, Brazil, Mexico, Greece and Belgium.
UNIDENTIFIED FEMALE (voice-over): We're already saving whale lives, every single day. And that's our main goal. That's our number one.
ASHER (voice-over): But, they say, there's still plenty of work to be done.
UNIDENTIFIED MALE (voice-over): We have a minimum of 400 to 500 locations in the world that need fixing (ph).
UNIDENTIFIED FEMALE (voice-over): We're building a global community that is geared toward the maritime industry. But we want to offer solutions for
everyone to be able to get involved and saving whale lives and feel like they're making an actual difference.
(END VIDEOTAPE)
KINKADE: Let us know what you're doing to answer the call with the hashtag call to Earth.
(MUSIC PLAYING)
(COMMERCIAL BREAK)
[15:50:00]
(MUSIC PLAYING)
KINKADE: A crushing end to a storybook run at was Wimbledon as Ukraine's Elina Svitolina fell short in her quest to win a grand slam. She scored a
wild card entry to the tournament just three months after returning from maternity leave.
She lost her semifinal in straight sets, Makita Vondrousova. The 24-year- old Czech becomes Wimbledon's first unseeded finalist since 1963. She'll face Ons Jabeur of Tunisia on Saturday.
Another big story from this year's tournament is reflecting on what's next now that his dream run is over. Christopher Eubanks, the U.S. player
marking his first major appearance, was a tie break away from the semifinals. He ended up losing to world number 3, Daniel Medvedev, in five
sets.
Eubanks says he wants to keep riding the wave of success. And earlier, he spoke with CNN about what playing in Wimbledon meant.
(BEGIN VIDEO CLIP)
CHRISTOPHER EUBANKS, U.S. TENNIS PLAYER: To walk off the court and just to hear Court One at Wimbledon, cheering for me, it's special. It's something
you dream of as a kid growing up.
Watching Wimbledon on TV saying, man, I hope to be there one day. It's a bit emotional just being able to rewatch it again. It's really special.
It's something I'll never forget. And I can't wait to use this momentum I have now, this confidence, as we spoke about earlier, into the U.S. summer
swing, being into the U.S. Open.
(END VIDEO CLIP)
KINKADE: Eubanks is among the rising stars of tennis, who could someday be a household name like Serena Williams or Rafael Nadal. That's something
sponsors are keeping a close eye on, because having top tier athletes in your stable is a coup for any company.
One of the biggest sponsors in tennis is Babolat, a French company, that has been an official partner of Wimbledon for decades. World number one
Carlos Alcaraz and Halda Rune (ph) both use their racquets. I'm joined now by Eric Babolat, the CEO of Babolat and a fifth generation.
Of course, you are the great grandson of the founder. Great to have you on the program.
ERIC BABOLAT, CEO, BABOLAT: Hello.
KINKADE: Chris Eubanks hails from this city, Atlanta, Georgia. He entered the tournament, ranked 77th; made it all the way to the quarterfinals
before being knocked out by the Russian. It's something that was an epic match.
How would you describe it?
Especially the love of an underdog?
BABOLAT: That's what tennis is nice for. We just actually see a new generation coming, meaning the one that are there for a long time, that's
the best for the audience. Hopefully, it will bring the wish to play more of the game on the court in the cities like in Atlanta (ph).
KINKADE: Of course he's taking home some $430,000 in a paycheck for his efforts. But it seems like this is just the beginning for this 27-year old.
Do you think we're going to see some more sponsors coming his way?
BABOLAT: Yes, sure. It's important for (INAUDIBLE). At Babolat, we have to be a tennis company and it's an equipment company and the best visibility
for our brand and our products is to have champions winning with it. So for sure, we love to have players having success. And when they have a great
personality, it makes a big difference.
[15:55:00]
KINKADE: And over the past 20 years, we've seen Roger Federer, Rafael Nadal, Serena Williams dominating all these tournaments.
Do you think this time around, at Wimbledon, it was the chance for some of these up and comers to really start to shine?
BABOLAT: Yes, sure. Also people were thinking that tennis would not be the same and not so much interesting up to them. And it shows that it's very
different. We have Carlos Alcaraz showing the way. He's been with Babolat since he's 10. And not even 20 at the top level really soon.
Even since nearly 20 years since Roger Federer, Djokovic another time, then those players just, after being juniors, were the top of the senior. And
that's happening now with a new generation, which is fantastic for tennis, of course.
KINKADE: For a company like yours, which is one of the oldest tennis companies in the world, how do you decide who you want to sponsor?
What do you look for?
BABOLAT: We don't try to do the word sponsoring. We are equipping the players, the need to practice their. Game and Babolat brand is presenting
more than 50 countries through 30,000 stores and as much clubs. That's where we have the lovers, when a day, hey, a couple of Alcaraz, which is
the same as Rafa Nadal.
They were good players in their club when they were 10, 11 years old. And the Babolat people in their environment decided to equip them because they
were influencing their friends.
And very quickly, after that, they become national champions at international levels. That's how we detect and we equip young players, not
just young kids loving the game like in the clubs. They are the few of them that became number one in the world for -- in that case for Rafael Nadal or
(INAUDIBLE) today.
KINKADE: For someone like Christopher Eubanks, he seems -- he certainly has a reputation of being very likable. Listening to some of the other
players on the tournament, they all have nicknames for him, like giraffe, toothpick, daddy long legs.
Is that the sort of player that your company would look at over the coming months, the coming year or so, as a potential person that you would want to
work with?
BABOLAT: Sure, we are interested with personalities influencing the game. Unfortunately, it's not with us. At Babolat we bet on younger players. And
follow them through their career. That's the case with (INAUDIBLE), that's the case with Nadal.
(INAUDIBLE) is a young Danish coming up, too. And it's important being an equipment company, we contribute a lot to the performance of the player.
And they don't want to change that during their career.
That's -- we're influencing the love of the game on the court. And we tend to look and play like they're heroes. So we know that Babolat is from
(INAUDIBLE) nearly 50 years, because we invented the tennis string, when tennis was born back in 1875.
Since then, innovation from us are equipping the top champion from the French Musketeers to be on board or, today, Nadal or Alcaraz, it's the best
(INAUDIBLE) that the products are making the difference because tennis players are playing with products that are very similar to the one that the
clubs here are using.
KINKADE: Eric Babolat, the CEO of Babolat, good to have you with us, staying up late from France, we appreciate it. Thanks for time.
BABOLAT: Thank you.
KINKADE: Just moments left to trade on Wall Street. We will have the final numbers in the closing bell, right after this.
(COMMERCIAL BREAK)
END
