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Quest Means Business
IMF Upgrades Growth Forecast, Warns Of Challenges; Moody's: Unrest Could Have Economic Impact; PSG Says Al Hilal Can Make Offer To Mbappe; Indian Tech Giant Wipro To Invest $1 Billion In AI; IKEA's Mission for Greener Glue; World Of Wonder: Antalya. Aired 3-4p ET
Aired July 25, 2023 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICHARD QUEST, CNN INTERNATIONAL HOST, "QUEST MEANS BUSINESS": Now, there is still an hour to trade, but if things go as they are at the moment, look
at the graph and you'll see the Dow is on track to mark a 12th straight day of gains. They may not be the most rip-roaring you've ever seen, but little
by little, they are adding up and they're adding weight to the market.
Those are the markets and the main events of the day: Muted optimism from the IMF. The fund is raising its growth forecast, and at the same time,
warning major threats remain. The chief economist at the IMF joins me tonight live.
China's Foreign minister is ousted after he went missing for a month.
And a billion dollars buys you what? Well, it will buy you Mbappe as the Saudi football team is reportedly slashing all records to buy the superstar
for one year.
With that sort of money, you could have me for life.
Live from New York. It's Tuesday, July the 25th. I'm Richard Quest and of course, I mean, business.
The IMF has raised its forecast for global growth, and at the same time, it is warning that persistent challenges remain. The fund expects the world's
economy will grow by three percent. Now that was just a little bit higher than previously, up from 2.8, but it is down from their forecast last year
of 3.5 percent.
The UK is now expected to avoid recession, and the IMF is giving US better odds of a soft landing, although it is concerned about lingering inflation,
and Germany's economy is warning it has that a recovery could slow even further.
Matt Egan is with me. I always look at the WEO report as being sort of the glass is half full for some, the glass is half empty for others, and it is
all a bit misty and murky and you're not really sure what it means.
MATT EGAN, CNN REPORTER: Well, Richard, we have to remember that 2023 was supposed to be the year of recession, but it is really turning out to be
the year of resilience. I mean, the world's economy has taken punch after punch, right, high inflation -- the central bankers war on high inflation,
Vladimir Putin, China.
You know, after each one of these blows, the old economy is still standing, despite the fact that many people didn't think it would be, and so
economists again and again have been forced to revise higher their growth forecasts.
Now the IMF calling for three percent growth, I mean, that's not gangbusters, right? Context is important here, 3.5 percent growth last
year, the pre-COVID average between 2019 was almost four percent, but still make no mistake, this is an upgrade. It is moving in the right direction at
a time when many thought there would be a recession.
The IMF doesn't think that the world economy is out of the woods here, but Richard, it does increasingly feel like a lot of these doom and gloom
recession, predictions for 2023 were just way too dark.
QUEST: All right, but hang on. I'm looking at the IMF's comment here. Energy and food prices have come down sharply. The COVID health crisis is
officially over and supply chain disruptions are basically back to what they were before.
Resilience, yes; financial instability, took it to -- and yet, they talk about the challenges. I mean, a lot of the challenges they're talking
about, even climate change, for example, there is no obvious quick solution that anything is going to happen.
EGAN: Right. Absolutely. There are definitely challenges here. The world economy is not out of the danger zone. Inflation is still public enemy
number one and there is still this risk that inflation doesn't get back to healthy levels, in part because of the war in Ukraine.
We've seen just the last few days, wheat prices and corn prices go up as Russia strikes key agricultural infrastructure facilities in Ukraine. We
also know that the climate crisis is causing problems.
Here in the United States, gasoline prices have just made their biggest increase in one day that we've seen over the past year.
So there are a lot of risks here, but I do think that it feels as though some of the worst predictions, including around the banking crisis, the
debt ceiling here in the United States, those worst predictions, they have been avoided so far and we'll just have to see what happens next,
especially on the inflation front -- Richard.
QUEST: Matt, thank you. Barring any major shocks, the IMF expects global headline inflation will continue to fall this year, from 8.7. Core
inflation is expected to ease more gradually, although the fund does say it is still too high, and for central banks, we'll find out tomorrow if the
Fed is doing its sequence of rate rises, the ECB is expected to go higher on Thursday amid signs of an economic slowdown.
Now, the Bank of Japan is tipped to keep its rates unchanged with its ultra-loose monetary policy.
So that is the scenario. You've got the numbers, you've got the background, and now here is the man himself.
Pierre-Olivier Gourinchas, the chief economist, at the IMF. Sir, good to see you. And, Pierre, I've always -- I always take the WEO, the report,
with a certain on the one hand, on the other hand, but on the first hand, and then there's the other hand, and I'm left always feeling what are you
PIERRE-OLIVIER GOURINCHAS, CHIEF ECONOMIST, IMF: Well, there is always the saying about, you know, give me a one-handed economist, Richard, always a
pleasure to talk to you. Let me start by saying, you know, there are some good news here to start with.
It has been a while since we started with some good news, so let's highlight the good news.
The good news is we had some resilience in the global economy. That's why we marked up our growth numbers for this year 2023 to three percent. This
is good. We're seeing progress on inflation. The headline inflation is certainly coming down in most places.
Even when we look at core inflation, it is starting to come down in a number of countries. It is not coming down fast enough, but let's just, you
know, take in the fact that it is coming down some, and then we have removed from one of the major concern we had back in April was a risk of
We're just coming off the March banking turmoil, there were concerns about maybe what would happen with the debt ceiling in the US, all of that has
So these are sort of the good things, so like the glass half full, if you want, and then there's the glass half empty. The glass half empty, is that
we still have an inflation problem, we're not there yet.
QUEST: Okay. Let me pause you on that inflation problem, because we're not there yet, and we are at that crucial moment where central bankers have to
decide whether to do more.
Should the Fed keep pushing the BoE, the ECB? Do you think they need to raise rates more?
GOURINCHAS: Well, we think that some interest rate hikes are, you know, are reasonable and are justified, but we should keep in mind that even with
that in, we are nearing the peak of the hiking cycle in -- you know, for major central banks, whether we're looking at the Federal Reserve, whether
we're looking at the European Central Bank or the Bank of England. Bearing your disastrous news on inflation, what we're talking about is maybe some
additional hikes. A few more hikes, maybe we don't know, they will have to decide, they will look at the numbers.
But we are nearing the peak, and then, you know, the important thing is that after that, Central Banks are probably going to have to hold it there.
Hold it there. Why? Well, because they need to stay in contractionary territory, not add to the pressure, but stay where they are until this
underlying inflation starts to move decisively down and we're not there yet.
QUEST: The other challenge, which I always comes out, it's one of those things that's not easy to solve, if any of it is, it is the growing
disparity in growth and quality of life, and economic performance between the developed and the developing world.
Now, we came out of the pandemic with the emerging markets being clobbered. Now, they are being clobbered, again, in a debt crisis, particularly for
those who borrowed against -- in foreign currency. How worried are you now about the debt crisis?
GOURINCHAS: Well, there are certainly a number of countries right now, especially when we look at low income countries and some frontier economies
that are facing severe stress in terms of market access, and their debt is trading at levels that we would call us, you know, higher levels of
But overall, there is still a lot of differentiation in the emerging market space. What we have seen since April and when sort of the worries about
financial contagion, the financial crisis, the banking turmoil, when all of these sort of moved away, we've seen an easing of financial conditions
around the world and in particular in emerging market economies.
And a number of them have been able to resume market access, have been able to see capital inflows. They have seen their currency appreciate against
the dollar -- appreciate against the dollar which is a sign of sort of capital moving in. So conditions are very differentiated in that space.
Some countries are facing a lot of pressure, others are doing okay.
QUEST: If you have to sum it up, what's the one thing that now has to happen? Is it a case of -- I mean, obviously coordinated action between G7
and then G20 countries is helpful on things like world trade, but what is the -- what's the missing piece of the economic jigsaw at the moment?
GOURINCHAS: Well, one of our concern, when we look at the numbers is not maybe an immediate concern, some of what's going on is basically just
monetary policy doing its job, and so some of the slowdown is coming from that, it is to be expected. Our concern is maybe more when we look at the
medium term here.
When we look at the medium term, what we're seeing is a picture where growth is not really rebounding very strongly. We have five year outgrowth
at around three percent.
For the world economy, this is a low number, this is not enough. This is not enough to meet all the challenges we have to face, you know, whether we
are thinking about climate change, or debt issues, et cetera.
So here, really what we have to focus our energies on is how do we unlock more growth in many parts of the world? What kind of reforms we need to put
QUEST: Why has the growth train slowed? Is it cyclical? Is it -- do you believe that something structural has changed and related to that, we
haven't even started to see the tremendous productivity gains that will follow from AI, assuming we get that bit around and don't blow us off to
GOURINCHAS: Yes, so the reasons for the slowdown in productivity and sort of decline in medium-term growth, there are probably a number of factors,
and we are actively sort of parsing through the numbers and trying to figure out, you know, which one is the most important.
There is slowdown in population growth, there is a fact that, of course, countries that have been growing very, very fast and catching up quickly
cannot be expected to keep growing at the same rate for decades to come. So some of it is the slowdown in catch up dynamics if you want, but then there
is a worry that there might be some scarring from the pandemic, lost years of education, less investment for a while.
There might be the risk of geo-economic fragmentation as we get this trade tensions between countries, between blocs. Then, that is certainly not good
news for the global economy.
Now, of course, you're absolutely right, there is sort of this hope that generative AI, other forms of technological improvements will lift the
global economy out of the current sort of quagmire.
But let's remember that it may play out very, very differently across different countries and regions.
QUEST: Fascinating. I'm so grateful to you, sir. Thank you, Pierre-Olivier. Always nice to have you making sense of it all. However many hands we need.
Thank you, sir. Grateful.
It's QUEST MEANS BUSINESS tonight.
Kylian Mbappe could see a record breaking offer from a Saudi Arabian soccer club. The sums involved are simply mind boggling. It's a billion dollars
with the transfer fee involved, a billion, and that has raised concerns about Saudi as a sports washing kingdom.
QUEST: That sort of impressive presage, doesn't it. It's a beautiful evening, or will be in New York, but it's a bit moody in the humidity. We
thought you'd like to see it. That's a live shot from the roof of New York.
Tensions over Israel's judicial reforms are a financial threat to the country according to the credit rating firm, Moody's.
Now Moody's believes further turmoil could have negative consequences for Israel's economy and security and is warning protests are likely to
Meanwhile, the prime minister, Benjamin Netanyahu insisted the economy is still strong and he called the troubles of seeing a momentary reaction
saying, when the dust settles, people will see Israel is on solid foundations.
Fred Pleitgen is in Jerusalem.
Fred, a quick question to start. Look, I mean, is Moody's just stating the obvious that further turmoil could have negative consequences for the
I mean, the Central Bank governor said that to me. Every economist is saying it. The business people are. It is only the prime minister who is
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, Richard, I think that, first of all, they are in certain ways stating the obvious, but
I also think that it goes a bit deeper than that.
I read that Moody's report and there are some pretty interesting thing lines in that. First of all, they said that they don't believe that right
now, there's really a light at the end of the tunnel as far as the political turmoil is concerned, and that that could have big negative
consequences for the economy here in Israel in the future, and not just in the close future, but in the further distant future as well. So that's
definitely something where they're sort of seeing alarm bells go off.
And there was one sentence, I have to say in that Moody's report that really caught my eye. I want to read it to you. It says: "In addition, the
executive and legislative institutions (obviously, the government and the members of the Knesset who support the government) have become less
predictable and more willing to create significant risks to economic and social stability.
So essentially, the Moody's report is blaming the Netanyahu government, and obviously the members of the Knesset to support that government and are on
side with that government.
Of course, we know that the vote, for instance, in Parliament that happened on Monday was 64 to zero because the opposition members of the Knesset
So that political turmoil, according to Moody's right now is deepening. The divisions here in the society are deepening and that they believe is
something that could definitely contribute to the economy here getting worse.
And if you look at the institutions here in this country that really have a problem with what's going on right now, with the changes that the
government wants to make, as far as the Supreme Court is concerned, business is definitely one of those that are not happy -- Richard.
QUEST: Now, do we have an idea of how the Supreme Court is going to react? Rule? I mean, all of these changes are going to end up at some point on the
door of the Supreme Court. And I guess, can the Supreme Court say they're unconstitutional?
PLEITGEN: Well, that's the thing. I mean, first of all, unconstitutional will be difficult because the country doesn't have a written Constitution,
but of course, you are absolutely right, they would be striking this law down, and that in itself could lead to what in any other country, which has
a Constitution would be called a constitutional crisis, because essentially, what the government is trying to do is they are trying to
curtail the powers of the Supreme Court, that Supreme Court is seen as the main check to the government or one of the few checks to the government.
And if the Supreme Court says, look, this is something that's not happening, that certainly is something that could then lead to an even
deeper crisis than what we're seeing right now.
It was quite interesting, because earlier today, on CNN, our own Erica Hill spoke to the minister for Strategic Affairs of Israel, and asked him
directly look, if the Constitutional Court decides that the measure that was passed by the Knesset is null and void, are you going to abide by that?
He really didn't answer that question.
He said, look, we abide by the rule of law and not by the law of judges. So that certainly is something that leaves a lot open to interpretation, and
certainly not something that a lot of people here who are on the opposing side, who say that the constitutional court needs to remain as strong as it
has been, are going to want to hear -- Richard.
QUEST: Yes, Fred, if I remember back to my law school days, I think the law of judges is the rule of law.
Anyway, there we go. Thank you very much, Fred Pleitgen.
Having to drag myself up from the years of history, a Saudi Football Club is on the verge of making a world record offer for the superstar, Kylian
The club is Al Hilal and it is reportedly planning to offer him up to $775 million for just a year of play and that is an addition of course, they
would have to pay $332 million, the transfer fee to his current club, Paris Saint-Germain.
PSG has given Al Hilal permission to approach Mbappe about the transfer. Reports about other superstars raising their eyebrows, the NBA champions,
Giannis Antetokounmpo says: "Al Hilal, you can take me. I look like Kylian Mbappe."
He is already one of the highest paid athletes on the planet, this could put him on a whole new level compared to the other on field income of
On "Forbes" top paid athletes this year, LIV golfers Phil Mickelson and Dustin Johnson, as well as the boxer Canelo Alvarez all come in at around
$100 million, followed by basketball player, Steph Curry, and the soccer star, Cristiano Ronaldo at $45 million.
This massive payoff is renewing claims that Saudi is sports washing, investing heavily in their LIV Golf league last year, and also invested in
Formula One, horse racing, boxing and wrestling.
Don Riddell is with me. Let's do first of all this deal. Why are they doing it? I mean, a billion dollars. All right, Hilal is owned or sponsored or
has the money of the PIF, which is the sovereign fund, but I mean, this is a lot of money.
DON RIDDELL, CNN WORLD SPORT HOST: That's the understatement of the year, Richard. Yes, 770 million bucks for a year's work. Yes. That is a lot of
money. Why are they doing it?
Well, you know, the Saudi Arabia government is investing heavily in sport, as you know, in the last few months ever since they got Cristiano Ronaldo
in December, they have been investing heavily in football, and they want to make the Saudi League, one of the top 10 leagues in the world.
They are geographically placed where they think they have a lot of interest from the Asian and African markets, and now, they've got all these players
And they also have an eye on the 2030 FIFA World Cup, they would love to be able to host that. They saw how successful it was in Qatar just down the
road at the end of last year.
And so that is why they're interested in football. They have seemingly bottomless pockets and all this money to spend, but there is no question
that that kind of money is frankly ridiculous.
The question is, will Mbappe be tempted? We'll see.
QUEST: Let's assume, well, we don't know. I mean, a billion who wouldn't? But you can't buy success. Now Chelsea tried it and they were reasonably
successful years ago. They bought -- they spent a lot of money and whatever, but the general tenor is you can buy the individual pieces, but
that doesn't necessarily make a team.
RIDDELL: Yes, but look, you're looking at it from the perspective of an established Premier League team or a team in La Liga, where they're
competing against everybody else and they want the best players and they'll spend as much money as they have.
I think what's happening in Saudi Arabia at the moment is very, very different. They are trying to build their entire league.
RIDDELL: And so they just need these players to come and play in the league. The question is, will anybody watch it? They are trying to, as I
said, establish one of the top 10 leagues in the world, really creating it out of not that much that, you know, when you look at the top leagues in
the world, Saudi Arabia isn't even in the conversation up until this point.
So they're not really buying players to make their teams better necessarily. If Mbappe comes, he will be gone in a year, he's only coming
for 12 months, and he only would be coming if he agrees to come, because he's kind of persona non grata at Paris Saint-Germain, and he has got his
eye on Real Madrid in a year's time.
And the reason he is not going to Real Madrid now is because they would rather wait until he's out of contract in Paris, and then they can get him
for nothing, meaning they would save themselves hundreds of millions of dollars.
So Mbappe seems to be playing a bit of a waiting game, but we don't really know what he wants to do.
QUEST: All right, now, let's talk about Saudi Arabia's interests overall. Now, obviously, I have a certain interest and knowledge of it as it relates
to tourism and the huge amounts of money that they are spending to build a tourism industry, that elsewhere would take five decades. They're trying to
do it in five years.
You see it from the LIV Golf side. I mean, let's just say -- LIV Golf. This thing was persona non grata and now it is the lore of the game.
RIDDELL: Well, I mean, yes, they started investing heavily in golf. LIV seemingly came out of nothing. It was pretty much all I talked about when I
was covering golf tournaments last year. The season came it happened.
The players that went earned an awful lot of money, and now we see what happened with this alliance with the PGA Tour.
So who knows what the future of LIV Golf actually is, but there is no doubt that the Saudis are now major players in the sport of professional men's
golf and that gives them an awful lot of leverage and influence and clout.
But again, we don't really know the details of that arrangement and we don't really know how that's going to play out.
We don't even know if LIV will survive, but perhaps that was never really the point. Perhaps the point was all always about you know, getting
themselves into other markets and finding ways of gaining new influence.
QUEST: What's your price, Riddell? Come on. Don't get coy. I've been sitting here for the last half hour thinking, how much would it cost? How
Riddell, I mean, God, would I really cheap to say one million would do it? I think I would say that, but 770 million is not even a conversation for
me. Of course, where do I sign?
QUEST: You traitor, man. Good to see you, Don Riddell, as always wonderful.
Coming up, interest in artificial intelligence -- AI. Tech stocks went up and now one Indian company is planning to train its entire workforce in AI.
There he is, head of Wipro will be talking to me after the break. Good to see you, sir -- will be after the break.
QUEST: Two tech giants, Microsoft and Alphabet, they are going to report after the bell and their shares have surged this year as investors are
flocking towards companies that stand to gain from AI. Both those stocks are up more than 35 percent year-to-date.
The Indian software firm, Wipro also wants to ride this wave and investing a billion dollars in its AI capabilities. It will be used to incorporate AI
into all its products and to train its entire staff how to use it.
Thierry Delaporte is the CEO of Wipro who joins me now from Paris.
Sir, good to see you. The adoption of AI is now going to be the norm. But how do you do it? What do you do?
THIERRY DELAPORTE, CEO, WIPRO: Well, Richard, AI has been here for many, many years. And companies have been working with AI through, you know --
GenAI, the level of evolution and adoption of GenAI over the last months has completely, dramatically accelerated trends from the way we can
leverage AI in companies, across industries, every processes, the way we connect with clients, the way we are driving productivity up.
The way we are producing goods and services is being transformed by AI and GenAI.
QUEST: But are you, at Wipro -- at Wipro, are you behind the curve in your own GenAI?
DELAPORTE: Oh, no, absolutely not. We have definitely invested in AI for many years. And we have developed solutions and we -- and -- but we felt
that what is happening at the moment is so important that it differs (INAUDIBLE) acceleration of our investment. Hence the commitment of $1
billion for the next three years.
QUEST: The recent agreement by the Biden administration with the seven biggies here -- it sort of -- was really a statement of the obvious in the
sense of we'll do no harm and will try to do good.
Do you believe that there is the scope for some form of wider international agreement on AI?
DELAPORTE: I think that every time we launch a new technology and we talk about technology in the world, there are some barriers to -- there is a
need for putting barriers -- ethical in being responsible and so on.
The fact that countries are trying to define those rules the way we've done it for data is not only required. And yes, there might be some guidelines,
some guiding principles defined in the countries. But I think it will be tricky and it will be tricky to make it worldwide, certainly.
QUEST: And I think in all the great post-Second World War conferences, the Bretton Woods, the telecom (INAUDIBLE), the post office, all the big
treaties that came out as a result, I can't see anything like that because the interests of the countries are so different now and the disparity is so
DELAPORTE: This is what happens with technology. Technology is accessible by everybody, everywhere, not only the countries, the companies, the
individuals, the schools and universities, everywhere around the world.
And the access to data, the access to technology is such that, indeed, there is a lot of creation happening every day. And controlling this is
difficult. So I would be with you on that.
It is going to be difficult to have a kind of Bretton Woods of AI for the future.
QUEST: Final question.
How do we teach generations, the next generation, that AI, that TikTok, that devices are merely here to be used for a purpose and that they are not
the purpose in themselves?
How do we teach people to get back to reading a good book?
DELAPORTE: You know, I think the world will always need people to learn to be innovative, to be creative, to dream and so on. And so there will always
be access to the good classic book.
But I think, indeed, AI is going to change and transform the way we lead every day. Whether our job is in our lives, things will evolve and we need
to learn so that we can leverage it to our benefit.
QUEST: When you write a book, do you read is on a Kindle or an ereader or do you like the crinkle of the page?
DELAPORTE: I read on both.
DELAPORTE: When I'm traveling, I take my Kindle but if I'm at home I take my book.
QUEST: Good to see you, sir. Thank you very much.
DELAPORTE: Thank you.
QUEST: Coming up, we are visiting an IKEA manufacturing plant. It is the sticky subject of glue what holds the thing together.
QUEST: And I believe there are instructions that will help us.
QUEST: The Swedish retailer IKEA is thinking out of the box in a bid to reduce its carbon footprint; 5 percent of the company's total emissions
come from the glue that holds together its furniture. So we visited one of its factories in Lithuania to see how it plans to glue greener.
UNIDENTIFIED FEMALE (voice-over): The Inter IKEA Group has more than 2,000 engineers. But then there is the only one dedicated just to the glue that
holds furniture together.
VENLA HEMMILA, IKEA (voice-over): I think glue is the most interesting, intriguing, complicated thing you can have.
UNIDENTIFIED FEMALE (voice-over): Venla is channeling this passion into finding more sustainable ways to manufacture products. Here at IKEA, 5
percent of the company's total emissions come from its glue.
HEMMILA: This is actually quite a lot, because it is actually more than an example (INAUDIBLE) bring up all the stores that we have (INAUDIBLE).
UNIDENTIFIED FEMALE (voice-over): Venla joined a glue task force at IKEA to tackle these emissions, which explores ecofriendly alternatives.
HEMMILA (voice-over): You brought the recycled one as well, that's really nice. (INAUDIBLE).
UNIDENTIFIED FEMALE (voice-over): For 10 years, they researched materials, met with suppliers and even came up with a few puns along the way.
HEMMILA: We are sticking together. And we are keeping everyone together.
UNIDENTIFIED FEMALE (voice-over): IKEA manufactures products mainly in five countries but the glue task force's is finally starting to take shape here.
This Lithuanian factory churns out furniture and particle board. And it became the country's first to use biobased glue for large-scale production
earlier this year. Venla says this switch is more ecofriendly for two reasons. The new glue comes mostly from organic sources and less glue is
HEMMILA (voice-over): The majority of particle boards are produced with this glue. And it is fossil based. And in a board, there is about 8 percent
of this type of glue. And next to it we have the biobased glue. And it is made out of industrial corn starch, which is not food grade and the fossil
UNIDENTIFIED FEMALE (voice-over): Biobased glues have been around for a while. But it took IKEA a decade to find an affordable one that was also
suitable for the company's size.
HEMMILA: These equipments are optimized for the old fossil based glue. And now we are entering with the new glue system, it will take some time to
make the machine work perfectly.
UNIDENTIFIED FEMALE (voice-over): The team's goal is to reduce IKEA's glue based emissions by 30 percent by 2030, which would only put a tiny dent in
the company's overall carbon footprint. But considering IKEA's size, even small changes have big potential.
And Venla is certainly up for the challenge.
HEMMILA (voice-over): It is still kind of just the beginning. We need to work harder to reduce the carbon footprint of glues but also total
materials. And even if we reach that point, there is always more to do. I don't think I will ever get bored of this topic.
QUEST: In other words, she's sticking with it.
QUEST: And that is QUEST MEETS BUSINESS. I'll have the dash for the closing bell coming up next.
Where will I be in our World of Wonder?
QUEST (voice-over): Sahir Erozan is a hotelier and restaurateur extraordinaire.
He's invited me to Macakizi, a boutique resort, just along the coast from Antalya.
A light snack for lunch.
This is Turkiye, so Sahir's welcome comes with copious food and drink.
And as if magic, the sun arrives.
This all began as a rustic bed and breakfast started by his mother in the 1970s, the queen of spades, the Macakizi, that was his mother, holding
court with a generation of jetsetters and passing on a love of seaside living to Sahir.
SAHIR EROZAN, MACAKIZI HOTEL: In the back (INAUDIBLE). And I loved it and I never forgot that year that I spent summer here and that was '77. That in
time I moved to States to go to school. And I didn't come back here for a long time.
And somehow, something inside of me missed the water. And I love water and there's the beginning of the story.
QUEST: What is it about Bodrum?
What is it you love?
EROZAN: It's the smell, the color and feel of things. It's very hard to say.
QUEST: It's very hard to say.
Oh, (INAUDIBLE), oh, no, caramel ice cream.
EROZAN: We have the same taste.
QUEST: This is very good.
EROZAN: Thank you. This is what I eat at lunch, which is so funny.
QUEST (voice-over): If I eat much more, I'll need a larger boat. And the boat that Sahir is offering is big enough.
EROZAN: I don't have a personal car. That's my car.
QUEST: It does rather sound like a jet engine.
QUEST (voice-over): It's a beast of a boat.
EROZAN: That's where all the gray areas are, the Greek islands. That's going up like that is the Aegean.
QUEST (voice-over): This all seems so beautifully decadent. Known as the Blue Voyage, powering through the beautiful, blue ocean seascapes. The
bigger the boat, the better. Speed and size: these are the status symbols here, where fuel is calculated by the ton, not the gallon.
EROZAN: It's very clear weather here. It's very nice. All winter, now, you also get (INAUDIBLE), so nice.
QUEST (voice-over): We've arrived at Yalikavak marina, which is Turkiye's first highcapacity superyacht marina. These pristine waters are now
attracting some of the largest yachts in the world, even if many of the owners of these investments would rather not attract attention themselves.
QUEST: We always think of the famous bits. We think of Cannes, Monte Carlo, you think of the central (INAUDIBLE) the big marinas and there.
Is Bodrum coming up?
EROZAN: No, it's already, I think, more up than they are, because this is a very purely coastline. So you've got a lot of places to go, to park, calm
waters, beautiful scenery.
QUEST: But is it also getting the cachet?
EROZAN: Yes. We have the best waters. I mean, clean seas, Greece and us, we have the best waters in Europe, probably.
QUEST (voice-over): Boasting aside, spending an afternoon with Sahir is making it very clear this private venture, like many in the region, is
catering to a clientele that wants to keep things very private.
EROZAN (voice-over): And this is a very versatile place, you know?
It's got its commercial angles, it's got its historical angles and it's got a very bohemian lifestyle angles, too. Don't think like the whole Bodrum is
like this. There's another Bodrum, where other people, when I say other people with other tastes, go to.
They go to a little fish restaurant on the waters, too. Same style, like where we left it years ago.
QUEST (voice-over): Sahir's mother set the groundwork for this laidback style and today's glitterati have glommed onto it, the original, bohemian
way of life, the gay Bodrum explorer (ph) is still here in certain quarters.
Hello, permission to come aboard.
Which is why I've asked Cemil Ipekci to show me why it was like. He's a renowned Turkish fashion designer. He was the early discoverer here in
Bodrum, a hipster when hipsters weren't hipsters.
CEMIL IPEKCI, FASHION DESIGNER: I escaped from home in '63, with my friend, my -- with my best friend. And so we found the hippies there. They said, we
are coming for Bo-drum.
IPEKCI: Bo-drum, not even Bo-drum, Beau-drum. I fell in love, not the Bo- drum nature, I fell in love with the Bod-rum people.
IPEKCI: Because they were so crazy. We were going to see here, swim all naked, nobody was looking at us.
QUEST (voice-over): Oh, this is really nice. Oh, my goodness.
Cemil is at home here. It is his personal paradise and it has more than a few visitors these days.
IPEKCI (voice-over): And here, there was nothing at all and, here, there was only maybe five houses, old houses. And the beach was still here.
QUEST (voice-over): Now when you say that and you see the change, what do you feel about that change?
IPEKCI (voice-over): I feel the same thing when I look at myself to mirror.
When I look at myself to the mirror, when I see my things and here, of course, I am not very happy. So I feel the same thing.
QUEST: That's a beautiful way of putting it. But there's nothing you can do about it.
IPEKCI: No, I can't.
QUEST (voice-over): You have an energy and a wonderfulness that is just intoxicating, you really do. You really do.
QUEST (voice-over): Even on holiday, maybe especially because on holiday, all good things must come to an end.
The weather here has turned sour and no matter what amount of beachside activity my producers dream up, I can't shake the feeling that my weather
curse has followed me.
I haven't even got any food for you. What a failure I am.
Undaunted, it is back to Antalya, where I seem to recall more than one person telling me they have more than 300 days of sunshine a year. I'm
QUEST (voice-over): Today's unexpected has nothing to do with the weather but it is one of those delicious moments that you come across frequently in
I don't think there's ever been a more ineffectual goat herder.
Not that I've seen many goat herders. But you know. Now he's got to get this one back over there, in the very busy traffic. And if he hadn't been
texting, he might have spotted -- oh! Oh! Oh, oh, oh! Oh! Oh!
I'll have goat for dinner all over.
QUEST (voice-over): Arriving in the ancient city of Perga just outside Antalya, the skies are threatening but I am not worried, for this is a
place where my imagination can soar.
QUEST: Ah, I've picked up some friends. Great part about Turkiye, which I think is wonderful, is the way they look after the stray dogs.
QUEST (voice-over): Even among ruins, plenty of life.
No, play nicely. Look.
Oh. Don't get involved, Richard, don't get involved. No good can come of it.
It's staggering, the amount of archaeological finds carved out of the hills, dotting the countryside, taking you back in time.
The detail in that, that's beautiful. Really beautiful. I always ask the same question whenever I come to these places.
How did they do it?
QUEST: I feel slightly guilty when I see all this, the level of detail. My eyes glaze over. Once you've gone Byzantine, Hellenic and Roman, I sort of
get confused about, oh, 200 BC, that's 380 AD, it all gets very confusing.
I'm not sure it matters as long as you appreciate it.
QUEST (voice-over): To walk the same roads that Alexander the Great and the apostle Paul once traveled is a privilege and powerful, a humbling reminder
that, even on vacation, we walk in the footsteps of giants.
QUEST (voice-over): At last, the sun has returned. Patience and calm, patience and calm. It's paid off. Travel nirvana.
I have to say, this is very well done. Good visit. Well worth coming to see these.
It's going to be a good summer along the Turkish Riviera, a place I would describe as captivating, with all the charm of the nooks and crannies
waiting to be explored. And you'll want to come here and be captivated by all of this yourself, captivating Antalya and the Turkish Riviera, part of
a World of Wonder.
QUEST: Hello, I'm Richard Quest. Together, you and me, a dash to the closing bell. We've two minutes to go. A 12th straight day of gains, that's
what it's looking like. The Dow is up. It's been up -- well, red in the morning. But -- not huge gains but still up, stronger day for the S&P 500,
which was likely up nearly a third of a percent.
And the Nasdaq just over half a percent. From earnings to interest rates, a lot of this week that we're going to be talking about. The IMF says the
global economy has been resilient in the near term. Its chief economist told me, some big problems still lie out.
(BEGIN VIDEO CLIP)
PIERRE-OLIVIER GOURINCHAS, CHIEF ECONOMIST, INTERNATIONAL MONETARY FUND: (INAUDIBLE) may be more when we look at the medium term here. When we look
at the medium term, what we are seeing is a picture where growth is not really rebounding very strongly.
We have five-year out growth at around 3 percent. For the world economy, this is a low number. This is not enough. This is not enough to meet all
the challenges we have to face, you know, whether we're thinking about climate change or debt issues, et cetera.
So here, really what we have to focus our energies on is how do we unlock more growth in many parts of the world?
What kind of reforms do we need to put in place?
(END VIDEO CLIP)
QUEST: And, to Dow components, to show up, Microsoft is up, ahead of the earnings. (INAUDIBLE). Intel, Apple, IBM, all up as well. The earnings
beating, lifting full year profit forecasts.
Leave you with the Dow Jones, as the closing bell gets ready to ring on Wall Street. I'm Richard Quest in New York. Whatever you are up to in the
hours ahead, I hope it's profitable. The closing bell is ringing.