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Quest Means Business
Authorities Across Continents Facing Deadly Fires, Heatwave; Kenya Police Tear Gas Anti-Tax Protesters In Nairobi; New York Restricts Platforms From Using Algorithm On Children; Bank Of England Hold Rates Steady; U.K. Inflation Down 2 Percent; Strikes On Power Grid Put Ukrainian Civilians To The Test; Protecting The Amazon's River Dolphins; Donald Sutherland Dies At Age 88. Aired 4-5p ET
Aired June 20, 2024 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:12]
RICHARD QUEST, CNN INTERNATIONAL HOST: There is your bell ringing on Wall Street, Dow is up 200 and now has gone up 300 points as the Dow finishes.
That see the gavel. Come along, sir.
Oh dear. That was not so much as a gavel. It is a limp, wristed gavel, not done like that. But the Dow is up 300 points. It is holding the level of
300. I had forgotten the bell. I'll give you a bell as well.
The triple stack is all over the place. The Dow is up. The NASDAQ and the S&P are down, bifurcated. We will explain as we watch and give you the news
of the day.
These are the stories we are following: Millions of people sweltering across the world in record breaking temperatures. Just look at that heat
map.
The police unleashed teargas and water cannons on anti-tax protesters in Kenya.
And a New York law is now restricting social media companies using addictive algorithms on teenagers. It is unclear how the state can or
indeed will enforce it.
Live from New York, it is Thursday, it is June 20th. I'm Richard Quest and in New York, as elsewhere, I mean business.
Good evening.
It is the longest day of the year in the northern hemisphere. The official start of summer, if you will. Authorities around the world are facing a
long season of climate-related disruptions. Look at that graph. The height, the heat, and the records that are being broken.
In Italy, firefighters are battling flames near Naples, as the country is facing the peak of a heatwave. Serbia is warning people not to venture
outside as winds from North Africa are pushing a hot front over the region.
And in the United States, there were fires and floods. The governor of the state of New Mexico is asking for a major disaster declaration from the
federal government as they fight deadly fires, and Tropical Storm Alberto is bringing flooding to Texas and Mexico.
Let's show you two versions and visions of this.
Ed Lavandera is in New Mexico. Rosa Flores is in Texas.
Rosa, you're up to your knees in water. What is going on?
ROSA FLORES, CNN CORRESPONDENT: Well, there is a lot of water and this Alberto storm is hundreds of miles away. Just take a look.
Yesterday, I was standing in this very spot and it was dry. Right now, Richard, there is 11 inches as of water.
Mother Nature has been playing tricks on us all day long. Take a look behind me. You can see that the bay of Corpus Christi is eating parking
lots. It is eating streets. It is running under this building.
Now, buildings here on the coast are built this way for this reason. They are on pilings sometimes because whenever there are storms, there is
usually surge, plus high tide, and it equals scenes like the ones that you're looking at here behind me.
Now, I'm in Corpus Christi in an area called North Beach. Here to my right, there is a residential area about a mile away. The streets look like the
street that you're looking at right now, and we have video of the Texas A&M Task Force, one team, heading into this neighborhood going door-to-door,
asking people if they wanted to evacuated, if they needed to leave their homes because the streets around here, Richard, look like what you are
seeing around me.
I mean, this is massive amounts of water and you can see that the wind is also blowing at a pretty good clip. You can see it on those palm trees.
And Richard, I will send it back to you, we are here continuing to monitor the situation. But again, the storm a hundreds of miles away and we are
still seeing the effects that you see around me -- Richard.
QUEST: Rosa, thank you. To Texas, Ed, I am guessing the firefighters could do with some of that water, not to be flippant about it, but the real
dangers of these fires, and bring us up-to-date. I beg your pardon, you're in New Mexico.
ED LAVANDERA, CNN SENIOR NATIONAL CORRESPONDENT: Well, they have been getting some rain -- yes, it's okay.
We have been getting some rain in the overnight and into early morning hours today here New Mexico and that mountain range you see behind me, that
is where the largest fire is, that is surrounding Ruidoso, New Mexico, this mountain village in the New Mexican mountains, and it has been a dreadful
several days here.
[16:05:07]
Now the rain has helped control the spread of the fire, but officials here say it is still zero percent contained. This is a massive wildfire in
combination with the second one that is on the southern side of the city. It is about 23,000 acres in all.
Fire officials say that they are focusing on setting fire lines and controlling the northern and eastern edges of these storms because the
areas that is closest to homes and vital infrastructure here in these communities.
So they are still trying to do that, but it has been devastating. More than 8,000 people have had to evacuate, more than 1,400 homes and structures
have been destroyed, and two people have lost their lives. Both of those victims died as they were trying to escape this fast-spreading wildfire
earlier this week -- Richard.
QUEST: Ed, I am grateful to you in New Mexico. Thank you. And Rosa Flores in the waters.
Now, the climate change, which is largely responsible for these dramatic changes in weather patterns, some say, the experts, climate change is
wreaking havoc on farms and orchards. We are a business program. You and I talk business every night. So let's put it into that context.
Nowhere are we seeing this more than with orange juice. The frozen concentrate as it is known as. Its prices have nearly doubled in the last
few years due to supply constraints.
Severe heat and drought have decimated production in Brazil, which interestingly is the world's largest orange exporter.
So the orange juice itself is becoming more and more expensive, or the concentrate is. And now, of course, we've got -- if your oranges are
expensive, what you now want to maybe put a bit of mango in there or maybe a bit a grapefruit. You could add some apple. In other words, throw in some
pears -- all of these could either be substitutes or potential additions to the orange juice to help keep the prices under control.
But what happened to the farmers?
Well, Tony Marquez is the owner of the Pearson Ranch in California. He grows oranges, pomelos and other citrus fruits.
Tony, you are feeling the effect, don't you, of this higher price for concentrate? But are you also feeling the downside which is the drought,
the disease that is pushing up the price of orange juice in places like Brazil?
TONY MARQUEZ, FARMER AND OWNER, PEARSON RANCH: I think basically what you're looking at is a supply and demand issue. Probably the best example
of short supply is from Florida would be due to the Asian citrus psyllid, creating the Huanglongbing or citrus greening disease.
Let me give me a number here. So to kind of put it in context. According to the US Department of Agriculture, in 2004, Florida produced 242 million
boxes of oranges. By 2022, that number had dropped to only 41 million boxes. So that is a huge number of loss in oranges, and a lot of that due
to the Asian citrus psyllid and the HLB, or citrus greening disease.
QUEST: Now, if we then look and then we factor in, for example, the Brazilian situation, I mean, do you benefit from the fact that wholesale
prices in the markets are higher? Regardless of your other costs, which we will come on to in a moment, such as labor and the like, but are you being
able to sell your oranges for a higher price?
MARQUEZ: You know, with farming, everything is -- you know, we have to look at everything in terms of how much can you actually make after all of your
costs. In California, where we farm, our costs continue to go up, our labor cost, fuel, fertilizer, insurance is just incredible and it really is our
bottom line.
And of course the markets, because we sell a lot of our product to everyone online, there is only so much that the market will bear and we can only
charge so much before they are not buying it.
QUEST: Then otherwise, you are eating -- you're having to eat the margin yourself in that sense.
Let's talk about the necessity for guest workers. How difficult now is it for you to get a labor force to pick the oranges and to do the highly
labor-intensive work necessary in orchard agriculture?
MARQUEZ: It is somewhat difficult. It just depends on the time of season for citrus, which is primarily harvested during the winter months. There is
a little bit more availability, but as we move on into spring months, when the cherries start coming on, then we start to see a little bit less labor.
But as far as migrant farm labor in the United States, I mean, it has been crucial to agriculture in the US, including, well, especially California
since the Bracero Program in 1942, which went on for 22 years due to the shortage of workers because of Americans going to --
[16:10:10]
QUEST: Right. Do you -- is the system broken? Does it need to be fixed, and I am not talking about people coming across borders illegally. I am talking
about the ability to have a guest worker program that provides the necessary labor for a crucial industry to the US economy. Is that system
broken?
MARQUEZ: I wouldn't go so far as say it is broken, but what it really comes down to is, we have enough people in the United States to harvest fruit,
but the problem is finding enough people willing to do that job and the necessity of migrant farm laborers because it is a job where like I said,
we merely harvest in the wintertime, they've got to get up early. It is cold, sometimes its muddy. They have to work all day. It is very, very
labor labor-intensive.
And so, finding people in this country to do it, you can't find them. So if we need to bring in farm labor from Mexico, then that's what we you need to
do if people want to eat.
QUEST: If you've got an orange, and I am sure you've got more than one orange in your orchard, are you better off selling it for orange juice or
to a consumer to buy it in the shop?
MARQUEZ: Fresh market. Fresh market is always more because a lot of times and what people don't understand about juiced oranges, it is when you sell
oranges on the fresh market, it is what is leftover that doesn't make the grade. It maybe have some blemishes on it, out of -- the size isn't quite
right, and that goes to the juice market because they are just going to crush them and juice them anyway.
QUEST: Tony, I am going to invite myself to your orchards and we will come and see and do QUEST MEANS BUSINESS at some point next year, hopefully, and
you will -- I will pick some oranges for you.
MARQUEZ: Sounds great. Love to have you, Richard.
QUEST: Thank you. We are always inviting ourselves around the world. Thank you, sir.
Now to Nairobi, where the police have fired teargas and water cannons on protesters. In dramatic pictures, now, look at them. Demonstrators --
demonstrations took place across Kenya. It is about a bill to raise taxes.
Now, the government has dropped some proposed measures that included levies on cars and bread, but as the cost of living soars, many Kenyans say it is
not good enough.
CNN's Larry Madowo reports from Nairobi.
(BEGIN VIDEOTAPE)
LARRY MADOWO, CNN CORRESPONDENT (voice over): Chaos unleashed in the streets of Nairobi as Kenya's Gen Z has had enough.
What started out as anger on social media about a controversial finance bill exacerbating the country's ongoing cost of living crisis has now
morphed into a self-organized revolt with protests taking place across several cities nationwide.
Young Kenyans battling through water cannons, clashes, and teargas wishing for their rally cries to be heard.
LYON OPIYO, 18 YEARS OLD PROTESTER: We'd like to have jobs. We are young.
UNIDENTIFIED MALE: We are intellectuals.
OPIYO: We are not crazy, you know. Our parents are suffering in this Kenya.
UNIDENTIFIED MALE: We are doing our peaceful demonstration.
MADOWO (on camera): It is not clear why they are getting teargassed. They are peaceful as they keep saying, they are peaceful, they are not doing
anything, but they keep getting tear gassed, and creating all of this.
MADOWO (voice over): The chokehold of Kenya's escalating living costs has been felt for decades with some protestors saying they are starting what
their parents didn't.'
DAISY OLOO, PROTESTER: I am here because I want to protest because our parents didn't have the guts to stand before and protest against Ruto, but
what he is doing is bad governance, and we are here to protect and show him that if our parents can't do it, we can do it.
MADOWO (voice over): On Tuesday, dozens of demonstrators descended outside Kenya's Parliament, forcing the government in Nairobi to amend the bill.
Some of the suspensions include a 16 percent value-added tax on bread and a 2.5 percent tax on motor vehicles.
But some citizens who are unhappy with the changes, calling for it to be scrapped completely. In response to the unrest, police arrested hundreds,
signaling outrage to Human Rights groups who said their right to protest has been violated?
MADOWO (on camera): Is this your first time protesting?
UNIDENTIFIED FEMALE: No, we were here on Tuesday. They are doing the exact same thing, they still arrested us.
UNIDENTIFIED MALE: We will do it again and again and again.
UNIDENTIFIED FEMALE: And again and again.
UNIDENTIFIED FEMALE: We come in peace here, not fighting. We are very respectful.
(PEOPLE chanting "We are peaceful.")
MADOWO (voice over): With tensions mounting and protests showing no sign of slowing down, Gen Z has proven they have risen like never before.
Larry Madowo, CNN, Nairobi.
(END VIDEOTAPE)
QUEST: Now, this chaos will be a particular concern, of course, to Kenya's new president. I spoke to President William Ruto last month. He told me he
is trying to reshape Kenya and Africa's reputation.
(BEGIN VIDEO CLIP)
WILLIAM RUTO, KENYAN PRESIDENT: We want to rewrite our own story that Africa is a continent of tremendous potential. Africa is a continent that
has opportunity and we want to move it from opportunity to investment, and that is the engagement I am having with the United States that there are
real present investment opportunities in Africa --
(END VIDEO CLIP)
[16:15:05]
QUEST: But the pictures that we've just been showing you, clearly give calls for question about those opportunities, the stability and the ability
to run a company efficiently.
So the president's efforts are threatening to unravel on the streets of Nairobi as the demonstrations get ever more violent.
I turn to our correspondent in Nairobi, Larry, again, and ask him to give us the gist of the situation.
MADOWO: Richard, it is an extraordinary scene in Nairobi. I've been covering protests in this country since 2007. I've never seen something
like this.
Police battling protesters who are trying to make their way to the National Assembly, which has been discussing and voting on a procedural motion of
the finance bill.
These people on the streets here are young people who some of -- many of whom voted for President William Ruto. They feel that government has
betrayed his stated mission as a hustler-in-chief. He came into power as somebody who understood the plight to the common man.
You've talked to him. You know how much he is passionate about these issues, but he is also faced with something that you will understand. Kenya
has a massive debt hole, and he is going to generate internal revenue, and the only way to generate that revenue is by raising taxes.
His proposed finance bill was deeply unpopular, it is so unpopular that he was forced to make a big about turn and drop some key parts of that law.
But these people are not impressed. They don't want piecemeal changes. They don't want small changes to the finance bill. They don't want small
amendments. They want the entire bill rejected.
And they have been out here on the streets of Nairobi throughout the day trying to occupy Parliament. Police have held them back. They have been
largely peaceful. They survived teargas, they survived water cannon, and now, as the night has worn on, they have because a bit more rowdy, at least
in this section, pulling away streetlights, lighting a fire, becoming more agitated because the finance bill went through a procedural motion.
It goes to a committee of the full House on Tuesday where it is likely to advance. Part of the reason here is because President Ruto's government has
a majority in the National Assembly and the Senate, so he can push this through despite the public opposition to this law, and that is the anger
you see on the streets here -- Richard.
QUEST: Larry Madowo giving us the gist of the situation in Kenya.
As we continue, you and me tonight, the state of New York is taking on social media platforms. It is a new law that will restrict their ability to
use addictive algorithms on children, in a moment.
(COMMERCIAL BREAK)
[16:20:17]
QUEST: New York State has now restricted the use of addictive algorithms on children's social media accounts.
Governor Kathy Hochul signed the bill into law this afternoon. TikTok and Instagram and the like will now have to display content in chronological
order for users under 18. Parents will have to consent to letting an algorithm choose what their children see.
New York is the first US state to take this step and the governor says, it will save lives.
(BEGIN VIDEO CLIP)
GOV. KATHY HOCHUL (D-NY): We have a moral responsibility to protect young New Yorkers from harm and from addictive forces that are trying to
transport them from happy-go-lucky kids into teenagers who are depressed, isolating themselves from human contact, and in some extreme cases,
contemplating ending their own lives.
(END VIDEO CLIP)
QUEST: Clare Duffy is with me.
Clare, how does this work?
CLARE DUFFY, CNN BUSINESS WRITER: I think that is the big question, Richard.
I mean, look, we don't know exactly how the governor plans to identify violations in this case, which she said could lead to find of up to --
starting at $5,000.00 each. But the issue here is how does any of these -- how do any of these platforms implement this change in algorithm in one
state only and only for teenagers?
Even if they found a way to do that, in theory, teens could find a way around this by using a Virtual Private Network or signing up for an account
using a fake age, which we know is still really easy to do because these platforms don't have very good age verification measures.
So I think that is the big question at this point is how are these tech companies going to implement something like this? And we don't know how it
is going to be enforced by New York State either.
I do think what is most likely in this case is that this turns into yet another years-long tech legal battle because the companies themselves have
already indicated that they see this as a First Amendment violation.
We haven't seen any lawsuit yet, but I won't be surprised if that's what we are talking about next week -- Richard.
QUEST: Right, but under this law, what actually happens? I mean, this idea of chronological versus algorithmically selected. How does it -- what is
the way it operates?
DUFFY: I mean, in a lot of ways, this makes sense because algorithms, these recommendation algorithms are the thing that many parents and online safety
experts see as the biggest safety risk for young users. The way that it currently works is most of these platforms have recommendation algorithms
where they are showing people content based on what they think that user is going to be most interested in, what they think that user is going to spend
the most time looking at so that they are encouraging people to spend more and more time scrolling.
And you sort of feel like if you don't keep scrolling, you might be missing out on something. The thinking here is that they changed these algorithms
and make it just a chronological feed where you're seeing the most -- the thing that was most recently posted, you won't have that sort of addictive
nature where it is based on showing you something that you're interested in.
QUEST: Well, we will have to do a demonstration of this at some point in the next week. We will have to find a teenager that we can hijack their
account and show how it works in reality.
Clare, I am grateful to you. Thank you, as always.
President Biden is to go to Camp David tonight. He will spend the next several days preparing for next week's CNN debate.
The showdown is to be a rematch between him and Donald Trump. But so much has changed since the two were last onstage together in 2020.
CNN's Jeff Zeleny reports.
(BEGIN VIDEOTAPE)
JEFF ZELENY, CNN CHIEF NATIONAL AFFAIRS CORRESPONDENT (voice over): The historic rematch between Joe Biden and Donald Trump is anything but a
rerun, a vastly different set of issues are driving this race as the president and former president come face-to-face for the first debate of
the 2024 campaign.
Four years since they shared a stage --
JOE BIDEN, PRESIDENT OF THE UNITED STATES: You're the worst president that America has ever had.
Come on.
DONALD TRUMP, FORMER PRESIDENT OF THE UNITED STATES: Hey, Joe, let me --
In 47 months, I've done more than you've done in 47 years, Joe.
ZELENY (voice over): It feels like an upside down lifetime ago back when the coronavirus pandemic was raging.
TRUMP: I think masks are okay. You have to understand if you look -- I mean, I have a mask right here. I'd put a mask on when I think I need it.
BIDEN: This is his economy that he has shut down.
ZELENY (voice over): In the Biden-Trump sequel, an entirely new fight has been brewing on the campaign trail.
TRUMP: We could end up in World War Three with this person. He is the worst president ever.
ZELENY (voice over): And in TV ads --
VOICE OVER: This election is between a convicted criminal who is only out for himself and a president who is fighting for your family.
ZELENY (voice over): That offers a window into the new issues and fresh lines of attack. A reminder of just how much the country, the world, and
yes, they have changed.
From an insurrection and all its fallout to a new fight on abortion rights in the wake of the US Supreme Court overturning Roe versus Wade.
[16:25:05]
To Russia's invasion of Ukraine and a war in the Middle East, to the very stark question of America's role in the world.
Yet the economy, inflation, and immigration are still at the center of it all. Trump's record was at the heart of their last debates, even as he
sought to deflect.
TRUMP: If he gets in, you will have a depression the likes of which you've never seen. Your 40 (k)s will go to hell and it will be a very, very sad
day for this country.
ZELENY (voice over): While those warnings didn't come to pass, Biden's record is now under the microscope, complicating his effort to make it a
referendum on Trump.
BIDEN: The fact is that everything he is saying so far is simply a lie. I am not here to call out his lies. Everybody knows he is a liar.
ZELENY (voice over): And America's oldest presidential candidates are even older. Trump is 78, Biden 81 with age and fitness for office now a central
issue in the race.
(PEOPLE cheering)
ZELENY (voice over): Public opinion for presidents can be punishing. Biden's favorability has fallen 11 points since 2020, with nearly six in 10
Americans holding an unfavorable view. Perceptions of Trump have changed less, with more than half still seeing him in an unfavorable light.
Televised debates have long been a storied part of presidential campaigns, history-making moments for candidates.
RONALD REAGAN, FORMER PRESIDENT OF THE UNITED STATES: Here you go again.
ZELENY (voice over): Yet, this showdown is without parallel. The nation's 45th and 46th presidents still seeking to define one another in the
earliest general election debate in memory, an old duel being fought on new ground.
(END VIDEOTAPE)
QUEST: That debate takes place exactly a week today. CNN is hosting the first of the election cycle and millions of voters around the world are
expected to tune in and watch this historic moment.
You can see the time, it will be repeated, of course. Jake Tapper and Dana Bash.
The Bank of England held its benchmark interest rate steady, still at the 16-year high, even though inflation in the UK has eased to just two
percent. We will talk about that in just a moment.
QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
[16:30:44]
QUEST: Hello, I'm Richard Quest. Together, we'll have more "Quest Means Business." I'll talk about the Bank of England, which may have squashed
inflation back to 2 percent, but it isn't cutting rates just yet. We'll look to the future.
And we bid farewell to one of Hollywood's great leading men, Donald Sutherland. Only after the news headlines. This is CNN, and on this
network, the news always comes first.
A senior White House official says Ukraine has jumped to the top of the list for U.S. air defense deliveries. The official described the policy
adjustment as extraordinary. It's unclear which countries were given lesser priority. Ukraine's civilian infrastructure has come under relentless
attack from Russian airstrikes.
Mark Rutte, the outgoing Dutch Prime Minister, appears set to become NATO's next secretary general. NATO officials are telling CNN that the Romanian
president will no longer seek the job. He was the only other candidate running. The current leader of NATO, Jens Stoltenberg, plans to step down
when his term ends in October.
The U.S. Supreme Court issued opinions today, but not on some of the most closely watched cases before it. With the court's summer recess rapidly
approaching, justices have yet to rule on whether Former President Trump can claim immunity from prosecution. That's a decision that could prove to
have major impact on the election later this year.
The Bank of England's held interest rates steady, even though U.K. inflation eased last month to 2 percent. The bank's benchmark rate remains
at 5.25, where it's been for the last ten months. So, why didn't it cut? The main culprit is services inflation, which was nearly 6 percent last
month. And some economists think the bank will wait for that number to come down before further cuts are announced.
James Smith is the developed markets economist at ING. I'm guessing you weren't surprised at the announcement, most people that were expecting. But
here's -- they seem to be doing a fad. They seem to be doing -- saying, look, it's good, it's the right direction, but we're not confident yet.
JAMES SMITH, DEVELOPED MARKETS ECONOMIST, ING: I think that's right. I mean, I think they were coming very close to cutting rates this month
actually. I mean, nobody was expecting it. But actually, when you read into the statement and what they said today, yes, there were already a couple of
policy makers voting for a rate cut today and the statement revealed that more were saying this decision was finally balanced.
So, we're clearly getting to the point where rates are going to be cut, clearly, not quite there today. I think we will be there in August.
QUEST: I suppose it does beg the question, what difference does it make, you know, June or August? Just get on with it.
SMITH: Yes, I think you're absolutely right. And there were people out there saying, look, we're in an election campaign right now. Does that make
a bit of a difference? I don't think that will have made a huge amount of difference to the decision today. And I don't think it will after the
election either.
I think you're right. I think they do want to get on with the job. Listen to Andrew Bailey, the governor, last month, he was saying they could cut
rates further than markets expect this year. So, yes, I think we're clearly getting close.
QUEST: What's your assessment of how quick and how low they go over the cutting cycle?
SMITH: I think they'll do three rate cuts this year. That takes us to 4.5 percent by the end of 2024. I think we'll get another 100 basis points of
rate cuts in the first half of next year. That takes us to 3.5 percent. And then, I think we're nearly there. I think 3 to 3.5 percent is a reasonable
rate point that we're likely to get to in this easing cycle.
QUEST: How much of that easing cycle do you think will be passed on to -- in things like mortgages and things where, you know, we have seen in the
past, the institution's very quick to put them up, but as the rates come down, a little slower to pass that on, particularly if there's competition
for funds?
SMITH: Well, you've got to remember in the U.K. is that we're quite different to the U.S. So, the US, of course, is very common to take a 20-
or 30- year mortgage. Now, the U.K., it's very common to fix your mortgage, but for much less time, typically two years or five years. So, it's taken a
bit of time for those rate hikes to come through, but they have come through in a much more meaningful way than we've seen, say, in the United
States.
[16:35:00]
It does mean it's going to take a bit longer for those rate cuts to come through as well for mortgage holders. But, as I say, the transmission here
is quicker than we're seeing across the pond.
QUEST: Now, that -- since we have a second or two longer to discuss this, why can the U.S. do 25, 30-years fixed rates and almost no other country
does it? Certainly, the U.K. doesn't. The U.K., lucky, you get five years. What is it structurally about the mortgage network and system in the U.S.
that allows them to do it other than greed elsewhere?
SMITH: I honestly don't think there's any particular reason other than that's what's been traditionally done, to be honest. I mean, 10-year
mortgages were becoming slightly more prevalent before all of these rate hikes came about. I think there'll be a lot more people considering that
now we've had these rate hikes.
So, maybe over the next few years, maybe the U.K. mortgage market does look a bit more like the U.S. It would be sensible, right?
QUEST: Well, talking of sensible, what -- the election. Now, how nervous are either credit markets or equities ahead of the election, which, if
polls are believed will bring in a Labour government?
SMITH: I don't think they're nervous at all, to be honest. And the main reason for that is that the incoming Labour Party is saying they're not
really going to change much on tax or spending. Of course, in the U.K., we've had our fair share of political turmoil over the last few years.
Remember a couple of years ago, big unfunded tax cuts were brought about markets sort of melt melted down in the aftermath of that.
I think the situation now looks very different. I think politicians after that experience are very wary about doing anything that might upset market.
So, I think it's looking quite boring actually for financial markets.
QUEST: Right. But equities in London or in the in the -- in U.K. market have underperformed, say, for example, the performance of equities in the
U.S.
SMITH: Yes, that's absolutely true. Look, when it comes to -- when we're talking about sort of markets, investment, we're talking about business
investment more widely in the U.K. economy. I think it's going to come down, amongst other things, to more stable policymaking.
Remember, one of the problems in the U.K. economy and facing investors as well is there's just been so much uncertainty, volatility in policymaking,
you know, Brexit, but also other issues as well. I think whoever comes in as the new government, I think the priority has really got to be bringing
some stability, and that helps bring investment back in.
QUEST: Just recapping what you were saying then, you're looking at three rate cuts for this year in the U.K., 4.5 percent, maybe another 100 -- and
maybe another 1 percent previous with a sort of a trough of around 3.5.
SMITH: Yes, 3, 3.5, that's it. Exactly. Yes. So, much higher than we were used to pre-COVID.
QUEST: Those of us of a certain age will remember that that's the norm. Thank you, sir. Very grateful for your attention tonight. Thank you.
As we continue, Ukrainians have described a wave of Russian attacks on the national power grid as the second front line. The airstrikes have left the
grid so badly damaged there are now rolling blackouts in place for the first time during the summer. CNN's Clare Sebastian reports from London.
(BEGIN VIDEOTAPE)
CLARE SEBASTIAN, CNN INTERNATIONAL CORRESPONDENT (voice-over): Blackouts turn simple daily activities, like taking a toddler out to play, into
herculean tasks.
KATERYNA SERZHAN, KYIV RESIDENT: Because we live on the 15th floor, and sometimes when Nadya (ph) wants bicycle, it's kind of complicated.
SEBASTIAN: It's created a situation where it's actually hard for you to leave your house.
SERZHAN: Yes. Maybe it's easier to leave our house, but it's hard to come back, you know.
SEBASTIAN (voice-over): Starting in late March, Russia has carried out six massive attacks, precision targeting Ukraine's power-generating facilities.
For the first time in summer, rolling blackouts are now almost a daily occurrence.
A gas camping stove, the only way to cook a hot dinner. And yet, Kateryna's resilience belies the scale of this crisis. By early June, the attacks had
destroyed 40 percent of the country's electricity-generating capacity, says DTEK, Ukraine's largest private energy company. And winter is too close for
comfort.
DMYTRO SAKHARU.K., EXECUTIVE DIRECTOR, DTEK: We have 120 days left before the start of the heating season. 120 days. So, it means that the speed in
which we need to (INAUDIBLE) should be extremely high. It may not be business as usual.
SEBASTIAN (voice-over): There's no quick fix. Rebuild where possible, in some cases, using parts from decommissioned power plants in Europe. Start
building more, smaller power units to spread the risk. Import more from Europe.
[16:40:00]
SEBASTIAN: Are you worried that it won't get done in 120 days? That it's going to mean that there are still deficits going into the winter?
SAKHARUK: The deficits will be higher than today, and that will mean that people will not have light in their houses up to 20 hours.
SEBASTIAN (voice-over): Even with scheduled blackouts, the unexpected still happens.
We lost the lights. That's the reality we live in, says this Ukrainian news anchor.
SVITLANA GRYNCHU.K., UKRAINIAN DEPUTY MINISTER OF ENERGY: We called it the second frontline. Energy now is like second front line. We understand that
the winter period will be difficult for us and -- but we are doing our best and we try to be ready.
SEBASTIAN (voice-over): And that means being ready for more attacks.
GRYNCHUK: First priority is to protect our energy facilities, to protect our energy infrastructure. And the best way is air defense.
SEBASTIAN (voice-over): There is progress on air defense and funding, but it's not quick enough for Kateryna and her daughter, now looking to leave
Kyiv for the winter and rent a house with a wood-burning stove.
SERZHAN: We have an apartment here, and we understand that it will be really cold over here.
SEBASTIAN (voice-over): Clare Sebastian, CNN, London.
(END VIDEOTAPE)
QUEST: Coming up, we travel to the Colombian Amazon. We're going to meet a man who's been named the 2024 Rolex National Geographic Explorer of the
Year for his work protecting river dolphins. In a moment.
(COMMERCIAL BREAK)
QUEST: The marine biologist Fernando Trujillo has worked in the Colombian Amazon for decades, where he's been dedicating his life to protecting river
dolphins and the entire ecosystems that surrounds them and are necessary for their survival.
Today, on "Call to Earth," the 2024 Rolex National Geographic Explorer of the Year invites us to visit the region where the indigenous people have
named him Omacha, a dolphin that transforms into a man.
(BEGIN VIDEOTAPE)
FERNANDO TRUJILLO, FOUNDER AND SCIENTIFIC DIRECTOR, OMACHA FOUNDATION: My main goal, my dream is to protect the rivers, the aquatic ecosystems of the
Amazon. I truly believe that the water is the future of this region and the planet.
My name is Fernando Trujillo. I'm a National Geographic Explorer and I'm the Scientific Director of Omacha National Park.
[16:45:00]
Omacha Foundation is a small NGO here in Colombia. We are a very passionate people working in the Caribbean, in the Orinoco, and in the Amazon, and we
work a lot with the local communities.
I think my passion for nature comes from my grandfather, from all the stories about the Orinoco, the forest, and also from the TV. And I did my
first degree in marine biology. Then I had the opportunity to meet Comandante Cousteau. And Cousteau said to me, dolphins in the Amazon,
nobody are doing serious research there. Just go. And two years later, I was taking a cargo plane and I came here to the Amazon to start this
adventure.
We have two different species here in the Amazon. The Amazon River dolphin or the pink dolphin is a -- the largest river dolphin in the planet. And
the other are the gray dolphins or the tucuxi, one of the smaller dolphins in the planet.
I came here with a romantic approach to save the dolphins, but suddenly, I realized that the dolphins are just a small piece of this huge ecosystem.
And in order to protect the dolphins, I needed to protect the rivers, the lakes, and other species like manatees, caimans, and also, the people, the
people living here.
This is a very aggressive environment, very difficult to survive. The indigenous started to teach me, to show me the different species, how to
pedal in a canoe, how to walk in the forest. We need all this knowledge in order to protect the whole Amazon.
There are so many challenges to work in the Amazon. Deforestation, overfishing. pollution. We started to promote fishery agreements with the
local people because the fish were so scarce and was in danger. And now, the fishes -- the stock of fish are recovering and these guardians of the
lakes are here every single day monitoring the entrance of tourists and fishermen.
During the last years, we decide that the dolphins can show us the most important areas for conservation. So, we start to tag the dolphins with
satellite trackings. Thanks to this technology, we now know what areas we need to protect. The dolphins are a kind of thermometers, a sentinels of
the hell of the rivers.
We are transforming things here. We are trying to show the people, the world, that there are some positive stories behind all these challenges.
(END VIDEOTAPE)
QUEST: For more, go to "Call to Earth" and you can see the calltoearth/ -- sorry, cnn.com/calltoearth.
(COMMERCIAL BREAK)
[16:50:57]
QUEST: Donald Sutherland, the award-winning actor known for roles in "MASH," "Include," and "Hunger Games," has died. In a post on Instagram,
Kiefer Sutherland said his father was one of the most important actors in the history of film, who was never daunted by any role. He was 88 and he
passed away in Miami after a long illness.
Stephanie Elam now reports on the performer who won over generations of movie fans.
(BEGIN VIDEOTAPE)
DONALD SUTHERLAND, ACTOR: I'm waiting for reports from some of you.
STEPHANIE ELAM, CNN CORRESPONDENT (voice-over): Funny.
SUTHERLAND: I'm not joking. This is my job.
ELAM (voice-over): Heartbreaking.
SUTHERLAND: I don't know if I love you anymore.
ELAM (voice-over): And casually cruel.
SUTHERLAND: Contain it.
ELAM (voice-over): With his distinct voice and appearance, Donald Sutherland played scene stealing characters throughout a career that
spanned more than half a century.
SUTHERLAND: I think of myself as an artist, and I take it very seriously.
ELAM (voice-over): Sutherland's artistic pursuits started while attending college in his native Canada. He moved to London in the 1950s to continue
studying drama and began landing small roles in British TV and films.
The success of 1967's "The Dirty Dozen" launched the actor to Hollywood.
SUTHERLAND: They're very pretty, Colonel. Very pretty. But can they fight?
ELAM (voice-over): More military movies followed, including "Kelly's Heroes."
SUTHERLAND: Well, the tank's broken and they're trying to fix it.
UNIDENTIFIED MALE: Then why the hell aren't you up there helping them?
SUTHERLAND: Oh, man. I only ride in them. I don't know what makes them work.
ELAM (voice-over): And a starring role as Hawkeye in the 1970 film classic, "MASH."
SUTHERLAND: I think you will find these accommodating, they're quite dry.
ELAM (voice-over): Next, Southerland teamed up with Jane Fonda on screen in "Clute."
SUTHERLAND: What else do you remember about the man who beat you up?
JANE FONDA, ACTRESS: Nothing.
UNIDENTIFIED FEMALE: Captain, I have a dream.
SUTHERLAND: I have a dream.
ELAM (voice-over): An off screen to produce a documentary protesting the Vietnam War.
SUTHERLAND: There go the 20mm cannons, there go the rocket pods, there go the anti-personnel fragmentation bombs, and I count 12. Water buffalo down
and kicking.
ELAM (voice-over): Sutherland's versatile talent kept him busy in roles ranging from a pot smoking professor in "Animal House."
UNIDENTIFIED MALE: I won't go schizo, will I?
SUTHERLAND: It's a distinct possibility.
ELAM (voice-over): To a man desperately trying to hold his family together in the Oscar winning "Ordinary People."
SUTHERLAND: I want a really good picture of the two of you, OK?
ELAM (voice-over): In recent years, Sutherland's audience of fans became multi-generational when he starred as President Snow in "The Hunger Games."
SUTHERLAND: Hope, it is the only thing stronger than fear.
ELAM (voice-over): The actor liked the message of the successful franchise.
SUTHERLAND: It's an opportunity to catalyze the revolutionary potential in young people. And given the mess this world's in, that's really important.
ELAM (voice-over): Sutherland passed on his love of creating entertainment to his son, Kiefer, as well as four other children who all work in front or
behind the camera.
When he received a star on the Hollywood Walk of Fame in 2011, Sutherland reflected on his extensive career.
SUTHERLAND: What you're doing at my age is you're looking for your marker. And why I am so filled with happiness and joy is because you guys have
given me my marker.
(END VIDEOTAPE)
QUEST: Donald Sutherland who died today. Now, before we leave you for a moment, just let me show you what happened on Wall Street. Dow Jones closed
up nearly 300 points, but it was, it was very much bifurcated. Because if you look at the broader market, the S&P 500 passed the 5,500-mark earlier
today, then it retreated.
The NASDAQ also touched a new high and then fell back. And NVIDIA was down several percent. Chipotle ahead of its split was down 6 or 7 percent. So,
it was very much a bifurcated market with very specific reasons for why certain stocks were lower.
As for Trump Media, they're down 14.5 percent on the day. The company was worth over $5.6 billion at the beginning of July. It's now worth $2
billion. Donald Trump, of course, is the largest shareholder.
[16:55:00]
We will take a profitable moment. And when we come back, we'll talk more about fruit and vegetables and inflation.
(COMMERCIAL BREAK)
QUEST: Tonight's a profitable moment. You don't need me to tell you it's schvitzing at the moment in the United States. And in large parts of
Europe, the temperatures have gone to absolutely boiling, and there seems to be no respite in sight.
Now, we can argue about whether it's climate change or not, and there'll be those who say it is, and those who'll say it's just the normal
meteorological cycles.
What we can't -- well, pretty much beyond doubt, is the effect it's having on agriculture prices. We talked about that tonight. Orange juice, which
has nearly doubled. The frozen concentrate. It's one of those fascinating commodities that we don't talk about very often. But when concentrate goes
up as it has, then you realize something is amiss.
Whether it's because of a lack of migrant workers in the U.S. to pick the crop, or because of what's happening in Israel with oranges, or indeed the
bigger suppliers, of course, of oranges, which is in Brazil. It doesn't really matter. That's a grapefruit. It doesn't really matter. At the end of
the day, oranges and the price of oranges is going up, orange juice is going up, which means, probably I'll have to eat a pear instead, which I've
already done.
And that's "Quest Means Business" for tonight, I'm Richard Quest. Whatever you're up to in the hours ahead, I hope it is profitable. Enjoy some fruit.
(COMMERCIAL BREAK)
END
