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Quest Means Business
Supreme Court Grants Trump Immunity For Official Acts; France's Far Right Celebrates; Kenya Unrest; Biden Tries To Calm Nervous Donors; E.U. Targets Meta's Pay Or Consent A.D. Model; Boeing To Buy Spirit Aerosystems In Deal Worth $8.3B. Aired 4-5p ET
Aired July 01, 2024 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:06]
JULIA CHATTERLEY, CNN INTERNATIONAL HOST: Loud cheers there, but it is actually a sleepy summer start to the second half of the trading year, the
Dow up just one-tenth of one percent. Those are the markets and these are the main events.
A giant decision from the US Supreme Court ruling former President Trump is entitled to some immunity from criminal prosecution.
Political deal-making underway in France, the center and left parties try to stop the far-right from taking power.
And Boeing will by a major supplier as part of its safety reputation overhaul.
Live from New York. It is Monday, July 1st, I'm Julia Chatterley, in for Richard Quest, and this is QUEST MEANS BUSINESS.
Good evening once more.
Tonight, Donald Trump's allies are celebrating after the US Supreme Court says he has some immunity from criminal prosecution.
The court ruled in a six to three opinion, a president cannot be prosecuted for official acts. The decision will further delay that federal election
subversion trial against the former president. Republicans calling the ruling a victory for the former president.
The Biden campaign says the ruling hands Trump "the keys to a dictatorship."
Katelyn Polantz is with us now to explain more.
Katelyn, I think you have to go into details of what exactly the US Supreme Court said here, but crucial to this really is the definition of what
official acts are.
KATELYN POLANTZ, CNN CRIME AND JUSTICE SENIOR REPORTER: And what the protection around the US presidency actually is.
There is some protection there when an American president does things that are outlined in the US Constitution, those things cannot be prosecuted.
They can't ever be taken to trial. There is an immunity there. That's what the Supreme Court said today.
But the Donald Trump legal advisers, the people around him who are cheering this as a win for him, it is only a partial win in a lot of ways. It is a
win on his delay strategy because it sets up a situation where the Supreme Court opinion is directing a trial judge to do a lot more hearings, look
into things, potentially have witnesses, make decisions about the lines of immunity in this case, and then Trump's team could have more appeals.
That's why there could be many delays pushing a possible trial against Donald Trump in this case well after the election potentially into a Trump
presidency, if he were to win.
But the US Supreme Court did not give Donald Trump everything he wanted. And in fact, said, Julia, in many different ways, a lot of what happened
after January 6 that Trump is charged with, the allegations in that indictment for the 2020 election conspiracy, a lot of that is very likely
not protected as an action of the presidency.
Things like him using the fake electors to try and hold onto the office, pressuring state officials, using campaign speech to egg on his supporters
-- all of that though, is going to have to be sorted out by the trial judge and they're going to have to look very closely.
There is going to be reactions coming in the coming days from the special counsel's office, as well as from that trial judge, Tanya Chutkan in
Washington to see exactly how this moves forward. The case remains in existence. US v. Trump with Donald Trump as the criminal defendant.
There is just a long road of things ahead before this could go to trial -- Julia.
CHATTERLEY: Yes, and that rope got even longer as a result of this ruling today. Katelyn Polantz, thank you so much for that there.
Now, Donald Trump's lawyers will likely use part for the ruling to challenge the hush money criminal verdict. That's according to a source
familiar with his legal team's thinking.
The former president's lawyers could use the decision to challenge some tweets that were entered into evidence, as well as parts of Hope Hicks'
testimony, too. Now, she served as Donald Trump's communications director and testified about the campaign's reaction to allegations of his affairs.
Thomas Moukawsher is a former Connecticut superior court judge and the author of "The Common Flaw" and he joins us now.
Thomas, great to have you on the show with us.
I think there is good news and there is bad news in this because it is not all about Donald Trump, let's be clear. What it says is that no president
is fully above the law on all occasions, but there is, as Katelyn was saying an enormous gray area over what constitutes an official act, what
gets absolute immunity, what gets partial immunity, and what is personal behavior, too and has no immunity.
THOMAS MOUKAWSHER, FORMER CONNECTICUT SUPERIOR COURT JUDGE: That's right. I think that the case can both delight some people and disappoint others.
[16:05:10]
And I think the important thing is that the United States Supreme Court has recognized that no American is above the law and that in the instance that
most people have been worried about, I think the Supreme Court decision means that the president can never be immune for using SEAL team 6 to kill
his rivals, his mistresses or his former staff members with impunity.
I disagree with the dissent in its worry about that one because I think the majority did not want to see immunity under circumstances like that, but
this business of core official acts, official acts and unofficial acts sets up a subjective and vaguely worded in many ways, standard for the lower
court to try and apply, and I think having judged many things like this under these kinds of standards.
You can make it come out any way you want, simply by making everything official or not everything official or some things intruding on the core
functions of the presidency, and others, not. I think it is dangerous in the sense that it doesn't really give enough guidance about what is going
to go on down below. I think that' one problem.
CHATTERLEY: And that is going to take time to your point to filter through what can be defined as a personal act acting in one's own interest. I
guess, the example in this case would be acts that involve trying to stay in the White House longer versus official acts that you take under the
course of being a president.
I need your sort of prosecutor's hat in this case. If you look at all the accusations and the charges that the former president faces, irrespective
of the time it takes to filter through this, what survives this judgment from the Supreme Court, in your mind? Whether it is an act or the evidence
that a prosecutor would put forward as evidence of an act.
MOUKAWSHER: I think the thing that they said clearly was out of bounds that he could not be prosecuted for are his attempts to -- alleged attempts to
coerce the Justice Department into supporting his bogus fraud claims about the election. The court just said that is associated with a core function
instructing the attorney general. It is out-of-bounds. He is absolutely privileged with that. And so I think that is one thing that they clearly
held that it couldn't be prosecuted for.
They contrast that with his pressure on Vice President Pence with respect to the electoral counting the votes and said that he might be -- he might
be immune, he might not be depending on whether a prosecutor can prove that prosecuting him for this interference would not interfere with the
authority of the presidency, whatever that means.
So they made one thing that's clear that's out of bounds and they also added to that something that I deeply disagree with, which is a decision to
say that it can't look at the communications with the Justice Department even as evidence of the other potential crimes.
So it is just right out of the case and you can't in other words, see the whole forest if you've taken some of these trees out of the way and that is
what they've just done. They've taken that particular thing out of the case entirely,, it can't even be used as background evidence of what was going
on.
And so every time the upper or lower court finds something immune, you can't even talk about it is what is suggested by the decision.
I don't think that's in accord with the traditions of criminal prosecutions.
CHATTERLEY: Well, it makes a prosecution's job that much more difficult in building a case surely and perhaps raises the probability that you drop a
case, so don't bring it in the first place.
Thomas, gut instinct if the former president becomes president again, does everything go away?
MOUKAWSHER: I don't think we have to think too hard about that one. It is interesting because the court specifically identified instructions and
communications with the attorney general is something that the president is absolutely immune to, and I think we can all know for a certainty that his
first instruction to the attorney general, if Trump is elected is going to be to drop this prosecution. It will unquestionably go away if Trump is
elected president of the United States, and I think that would be a great miscarriage of justice.
CHATTERLEY: Thomas Moukawsher, great to get your insight, sir. Former Connecticut superior court judge and the author of "The Common Flaw." Good
to chat with you.
MOUKAWSHER: Thanks.
CHATTERLEY: All right, thank you. Coming up next on QUEST MEANS BUSINESS, a potentially historic political shift in France. Why Marine Le Pen's party
is celebrating after the first round of legislative elections.
(COMMERCIAL BREAK)
[16:12:34]
CHATTERLEY: Welcome back to QUEST MEANS BUSINESS.
The French far-right, closer than ever to being in power after the first round of legislative elections on Sunday.
Marine Le Pen's National Rally Party celebrated the results which shows them lightly to gain a relative and maybe even then absolute majority when
all is said and done.
Lawmakers loyal to the President Emmanuel Macron came in a distant third. His coalition must now decide, which seats that will contest during the
second round of voting this weekend, and if the National Rally carries the day, Jordan Bardella stands to become France's next prime minister.
Saskya Vandoorne looks at how the young politician has given a new look to the far right.
(BEGIN VIDEOTAPE)
SASKYA VANDOORNE, CNN SENIOR PRODUCER (voice over): He is being called the TikTok King and young people love him, but who is the slick 28-year-old
French far-right leader on the brink of power?
(JORDAN BARDELLA speaking in foreign language.)
TRANSLATION: We are ready.
VANDOORNE (voice over): Jordan Bardella has transformed the National Rally, taking it from the fringes into the mainstream, solidifying its rural base.
JORDAN BARDELLA, PRESIDENT OF THE NATIONAL FRONT (through translator): We want us to take agriculture completely out of the free trade agreements so
that we can protect our domestic market.
VANDOORNE (voice over): And using social media to reach a new generation of voters.
BARDELLA (through translator): Go out and vote to stop the migration surge that threatens our security, identity, and values.
VANDOORNE (voice over): The populist rhetoric isn't new, but because of this gifted communicator, it is resonating in France now more than ever.
KEVIN ARCENEAUX, POLITICAL SCIENCES PROFESSOR, SCIENCES PO: The sorts of young voters who are attracted to Jordan Bardella, they tend to have less
optimism about their future. I think Jordan Bardella shows them, look, look at me, you know, I don't have a college education. I come from a place in
France that the elite looks down upon.
If young people also find themselves in those circumstances, see that is actually inspiring.
VANDOORNE (on camera): Jordan Bardella grew up here in Seine-Saint-Denis, a suburb northeast of Paris. He attended this private school and it 16, he
joined the National Rally.
VANDOORNE (voice over): Around here, people know his name, but they remain divided.
UNIDENTIFIED FEMALE (through translator): I am rather proud of the fact that he is aware of our problems here, that he knows our reality.
UNIDENTIFIED MALE (through translator): If you are not White, if you don't have a typically French name, we are not considered French.
[16:15:00]
UNIDENTIFIED MALE: I know the struggles that students face here and I don't feel that he is representing the young people.
VANDOORNE (voice over): Bardella was handpicked by Marine Le Pen to be her successor in an effort to detoxify and normalize the party that was founded
by former French members of Hitler's SS.
Though he lacks experience, he and Le Pen form a powerful duo.
BARDELLA (through translator): She is the political leader and I am the Army general. We work together in harmony.
VANDOORNE (voice over): First, a strong standing in the European elections, now, a real shot at the Parliament and finally, another go at the
presidency by Le Pen, all with one man firmly in their sights.
BARDELLA (through translator): The person who erased France has a name, it is Emmanuel Macron.
(BOOING)
VANDOORNE (voice over): Saskya Vandoorne, CNN, Paris.
(END VIDEOTAPE)
CHATTERLEY: And Melissa Bell is in Paris for us tonight.
An interesting character and an interesting individual, but I had read Melissa that he said that he won't take the position of prime minister if
he is ruling in a minority. So, if they don't get a majority, what then, if he stands by that, are the options for President Macron?
MELISSA BELL, CNN CORRESPONDENT: That's right, and if he stands by that pledge, you're quite right, Julia, which was that without that absolute
majority, and at this point, it is very difficult to say because of the nature of France's political system, because of the rallying around against
the far-right that there is likely to be in the next few days and ahead of Sunday's polls, it is very difficult to say whether they will or will not
get that absolute majority that they seek.
He has said he will not take the premiership if they do not. Clearly, if they don't have the absolute majority, it means that they can't bring in
all kinds of new legislation that they are hoping to on law and order, on immigration, on tax cuts
Julia, remember, this has been one of the keys to them winning, were doing so well in this parliamentary elections so far.
To your question about what Emmanuel Macron does, whether or not Jordan Bardella is the prime minister or there is another prime minister, this is
going to be if the far-right doesn't have an absolute majority, a hung Parliament, which is going to lead to a great deal of stagnation in terms
of getting anything done over the rest of his presidential term.
If Jordan Bardella is the prime minister and the far-right do have an absolute majority, on this stage, some polls suggest that they might, then
you can expect pretty much gridlock because the policies that the far-right are going to be bringing in are the very policies that Emmanuel Macron one
is going to be opposing and vice versa.
Regardless of what comes out of this second round, Julia, there is a great deal of consternation here in France and head scratching about why Emmanuel
Macron made this particular decision because there had been a theory that the idea had been that this prevented a run, a serious run on the
presidency in 2027 when Emmanuel Macron's second term is up.
But the fact is, the far-right as it is now going to be the largest parliamentary group, possibly with an absolute majority will in any case,
come out more legitimate over the course of the next couple of years, than it had been before.
So there is, when you speak to his MPs, to the mayors who backed Emmanuel Macron's very risky political gambit, you'll remember eight years ago, to
sweep aside the traditional left and the traditional right, and bring the centrist force multilateral to power.
There is a great deal of anger that he has so recklessly thrown it away -- Julia.
CHATTERLEY: Yes, certainly a political gamble with dramatic consequences for policymaking in many respects, whatever the result and the outcome in
this case.
To your point and what we tend to see this week now, as you suggested, was a great deal of politicking where center-left, even far-left, perhaps
candidates decide whether they stand down in order to try and marginalize the games that the far-right party can achieve now.
Melissa, what are analysts saying about how much of that we now see, particularly in light of what you've just discussed as a great deal of
anger, I think towards Emmanuel Macron and his party for putting the country in this situation in the first place?
BELL: Look, French Parliamentary elections, Julia, by dint of the nature of the electoral system are very hard to call between a first and a second
round and we have just over 500 seats that are up for grabs looking ahead to the second round and there will be political maneuverings, there will be
third candidates that will stand down.
In fact, Gabriel Attal this morning urged anyone who is from the centrist, Emmanuel Macron alliance, who come in third in their particular
constituency to stand aside to favor someone from the left-wing alliance.
But remember that, that itself is controversial because of the nature of this alliance on the left. This isn't just the traditional French left, the
socialist. It is also the Unbowed, a very controversial, many consider a far-left party within French politics that few can believe is as close to
being a kingmaker as it is.
[16:20:04]
So there are a lot of people who are going to wonder exactly how they are going to be voting. The great loser in this, of course, again any MP or any
candidate that is standing on Emmanuel Macron's centrist list.
When you look at the first round of voting, it is really remarkable, Julia, 39 seats went outright to the far-right and its alliances -- and its
allies, rather, 32 seats went out right to the left-wing alliance, two seats went to Emmanuel Macron's centrist coalition.
And I think that gives you an idea of the collapse of this political movement that was born eight years ago -- Julia.
CHATTERLEY: Yes, one could argue that the other great political loser here is the French people if political paralysis now is what follows.
Melissa Bell, we will continue to watch it. Thank you for that.
Now to Kenya, where human rights groups say at least 39 people have been killed in anti-government protests since June 18th when activists rose up
against a finance bill, which was ultimately thrown out by the president. But protesters say this is ultimately about more than just the legislation.
Larry Madowo has more and we must warn you, the images you're about to see are distressing.
(BEGIN VIDEOTAPE)
(PEOPLE praying)
LARRY MADOWO, CNN CORRESPONDENT (voice over): A prayer for the dead.
The family of Ibrahim Kamau (ph) say their final goodbyes, his body being taken for burial. He was only 19.
His mother tells us, Ibrahim had just graduated from high school and was hoping to go to college. Ibrahim was shot twice in the neck at a protest in
Nairobi.
EDITH WANJIKU KAMAU, SON KILLED IN PROTESTS (through translator): I didn't go that day because I didn't have childcare, but we always went together
and came back because the protests were peaceful.
The first thing I want is just as for Ibrahim and all the kids who died because they all had dreams.
MADOWO (voice over): Protests broke out across Kenya last month against a proposed finance bill, largely driven by young people organizing on social
media.
(PROTESTERS chanting)
MADOWO (voice over): But the deadliest day was June 25th when protesters stormed Parliament in Nairobi.
Human Rights groups accused police of shooting dozens of unarmed protesters including some who were fleeing. No one has accepted or denied
responsibility for the killings.
Our crew filmed shocking scene like here left of your screen, a man running away is shot in the back with a teargas canister at close range.
These protesters standing over a man who is apparently dead, police fire a non-lethal round directly at them.
Nairobi's Police chief seen here commanded the operation. His officers clearly contravening their own rules for the use of force.
CNN analyzed the deadliest two hours when most of the protesters are believed to have been killed.
Keep an eye on the man in white overalls waving his arms earlier in the day, 25-year-old Erickson Chalamutisya (ph) was supposed to be at the
butcher shop where he worked, his mother said, but ended up here.
CNN's camera captured him dancing until shots rang out. Police advanced towards the protesters, more shots and people run aways.
Amid the chaos, we spot Erickson again, he is lifeless on the sidewalk. Around him are the protesters also on the ground. As the smoke lifts, one
man has been shot in the head. People rush to help, but police keep firing at them.
A bag is thrown in the air as the smoke grenade goes off, but that protestor escaped.
We were on the scene as this unfolded.
MADOWO (on camera): There are three bodies lying on the ground. After we heard live ammunition coming from Parliament, a police truck is on fire and
the protesters appear to be pushing the police, overwhelming them, getting closer to Parliament.
MADOWO (voice over): Unknown to us at the time, Erickson's body was being carried away behind me. His white overalls soaked in blood.
We obtained his autopsy report. Erickson was shot in the back and bled to death.
Moments later, another injured protester is carried away, but he is lucky, he survived.
That protester is 26-year-old, Ian Keah (ph) was also hit in the back.
IAN KEAH, PROTESTERS: I am in pain because of the government.
MADOWO (voice over): He was demonstrating because he has been jobless since he graduated five years ago.
KEAH: Our main mission is to change Kenya to be a better Kenya.
MADOWO (on camera): Do you regret going out to protest?
KEAH: I am not suggesting anything because it is my right.
MADOWO: Ian is a keen bodybuilder, but has lost the use of his legs.
CNN obtained three autopsy reports of protesters who were demonstrating around Parliament on the same day. Two died from gunshot wounds, one was
shot in the head, the other in the back.
[16:25:07]
One opposition lawmaker concerned about police brutality in recent days, says he will fight to hold those responsible.
YUSUF HASSAN ABDI, KENYAN OPPOSITION MEMBER OF PARLIAMENT: We cannot accept this colonial-minded archaic trigger-happy police. Something must change
and we would make sure that the victims of this particular crisis get justice.
MADOWO (voice over): Families buried their dead. Young men and women vocalizing their anger at a government they feel is not listening to them,
not helping them create a better future.
(PEOPLE praying)
MADOWO (voice over): An oversight body is investigating police conduct during the protests that many here don't believe they will ever see
justice.
Larry Madowo, CNN, Nairobi.
(END VIDEOTAPE)
CHATTERLEY: Now, CNN asked the Kenyan Police and the Ministry of Interior about the conduct of security forces during the protests, it has not yet
received a response.
President William Ruto did say in a TV interview on Sunday that the police tried their best and maintained that criminals infiltrated legitimate
protests.
Okay, coming up for us, the Biden campaign racing to calm fears among allies and donors as the president faces growing calls to exit the race.
(COMMERCIAL BREAK)
[16:30:05]
CHATTERLEY: Hello. I'm Julia Chatterley. And there's more QUEST MEANS BUSINESS in a moment when we'll discuss how the Biden camp is trying to
reassure nervous donors after last week's disastrous debate.
And the E.U. is putting Meta on notice over its pay or consent advertising model, a potentially massive fine could follow. But before that, the
headlines this hour.
Donald Trump's former strategist Steve Bannon, now serving a four-month prison sentence. He reported to a federal prison in Connecticut a few hours
ago. Bannon was convicted for defying a congressional subpoena from the committee investigating the Jan 6 capital attack.
Wimbledon is underway with last year's men's champion Carlos Alcaraz winning his opening match on center court. The Spaniard is seeded third
this year. Former champion Andy Murray says this will be his last Wimbledon before retiring. And on the woman's side, Naomi Osaka and Emma Raducanu
both advanced.
Simone Biles has officially secured her spot at the Paris Olympics after dominating at the U.S. Olympic Gymnastics trial. The 27-year-old placed
first in the all-around competition at the event on Sunday. This will be the third summer games for the four-time Olympic gold medalist.
I'm returning once more to our top story. The Supreme Court ruling Donald Trump has immunity for official acts he took as president. Republicans are
celebrating the decision as a victory. The chair of the Democratic National Committee says it underscores the stakes in November's election. And it
comes at a time when some Democrats are doubting whether President Biden should remain in the race.
His campaign team have been trying to reassure donors after his poor debate performance last week. A CBS News poll last week also showed that 72
percent of voters think that Biden should not run. And a growing number of Democrats are starting to agree. The President is apparently considering a
high-profile interview in the coming days to prove his fitness for office. That's according to one of his senior advisers and that the campaign is
also trying to determine the true fallout from the debate.
Stephen Collinson joins us now from Washington. Stephen, whatever senior Democrats say at this moment is the key now data and polling in the wake of
that debate performance just to gage how much support he still has.
STEPHEN COLLINSON, CNN POLITICS AND SENIOR REPORTER: Yes. I think that is one of the key issues here. If polls start to show that the bottom is
falling out of an already fragile campaign in which the President has struggled to reconcile various aspects of the Democratic coalition, in
which he appears to be already losing to former President Trump, at least in some of the key battleground states, that would really undermine the
President's position.
I think also that he is -- and you mentioned the idea that he could do a high-profile interview, he's going to come under increasing pressure from
Democrats to be out there every day, much more than he has been so far. And the question becomes, is he capable of doing that? Can he show that that
debate was just one bad night or is it a symptom of diminished capacity that will make it difficult for him to campaign and dispel those
impressions? I think those are the things to look for going forward.
CHATTERLEY: What's the trigger for this decision? Because in this latest poll, and admit it's only one poll, you've got 46 percent of registered
Democrats saying that they don't believe he should run, this position is representing the people when 46 percent of those that are responding in a
poll are saying we don't think you're the right person. At what point do you listen whether you're a president or anyone else around him?
COLLINSON: Well, the odd thing about these polls, they are devastating. They're slightly worse than they were before the debate. But you can go and
find a poll from this, year last year that shows a similar view of the President and whether he should be running for office, whether he has the
capacity to fully serve out a second term that would end when he's 86. For the Biden campaign, the argument has always been that, yes, he's old.
But as soon as he stands on stage with Donald Trump, the comparison between them, the threat to democracy that Trump poses, his volatility, his
wildness, his criminal problems, all that will make the comparison work for the President. The problem was, is that debate was also a test for Biden to
show that he's capable of running for a second term and serving a second term and everything that happened multiplied his problems by a great
magnitude.
And no one is now talking about the comparison between Trump and Biden. So in terms of the trigger, if it came to a point where the President became
convinced that he couldn't win and another Democrat might, the logic of his campaign would say that given that he's warning that Trump is a massive
threat to democracy and everything that America stands for, that he would step back.
[16:35:08]
But that's a fateful decision for the president himself, and I don't think anyone outside his inner circle is really expecting that to take place.
CHATTERLEY: Stephen Collinson, thank you very much for joining us. Let's talk more about this now. Karen Finney is a CNN political commentator. She
was a senior adviser to Hillary Clinton's 2016 presidential campaign. Karen, great to have you with us. As Stephen was just saying there, in
effect, what we saw from the former president was 30 at our count of factory inaccuracies and lies.
The problem is that the current president was set up to be the fact checker in chief, and he and he failed. What would you be advising the campaign at
this moment, Karen?
KAREN FINNEY, CNN POLITICAL COMMENTATOR: Well, it's great to be with. You. Look, I think the campaign is doing the right thing, which is, they had an
event the next day to show, you know, the President was very much, you know, on the job. And then kind of taken a beat over the weekend to reflect
and, you know, talk with donors to talk with supporters. You were just talking about polls.
One thing I just caution us is, those, what we call snap polls don't always tell us where the electorate is. So, I think part of one of the thoughts
here is, let's give it a couple of days. Let's see where things shake out. But the President, at this point, is continuing to say that he is, you
know, in it to win it.
CHATTERLEY: Do you think that's the right decision, Karen, based on what we saw on Thursday night? And there are a lot of considerations, there's the
money, there's a new candidate, there's the time upon the election. But I think a lot of people are looking at this and saying, actually, if you're
concerned about Donald Trump being the next president, then the risk of that rose in light of Thursday's performance.
FINNEY: Well, look, I think you have to do a couple of things, right? I think we have to take a look at whether or not President Biden is able to,
you know, as you reported, as we've heard reported, they are looking at some different options and ways to try to reassure the public that that it
was just a bad night, and then to remind people that the job that he has done over the last 3-1/2 years, both here domestically and the things that
he's been able to accomplish, and frankly, with our international partners around the world that that also merits a second look if we're going to try
to make such a big decision.
And so, I think that's all appropriate. I think it's appropriate to say, does a one-night bad performance particularly when you're up against
someone who spent 90 minutes essentially, you know, gaslighting the American public, you know, let's ask ourselves, is that the right decision
to make? And again, I think it's right to sort of take a step back and, you know, look at the data and be able to make an informed decision.
CHATTERLEY: And the key, I think, again, to your point, there about the 90 minutes spent for those that are criticizing telling lies and untruths and
making factual inaccuracies, really, at no point during that 90 minutes was he challenged on that, and that's part of the problem here. Can I ask about
what also you would be advising at this moment for family members, because there was certainly a debate over the weekend of people saying, of people
saying, why perhaps aren't the family concerned about the health of the President, his capacity to withstand the next four years and what that
involves as president?
Fast forward to today, and we've got the image, I think, of the first lady on the on the front cover of a Vogue saying, we will decide. I mean, I
guess we being they will, but some people would be advising other things I think at this moment.
FINNEY: Well, it's an important question. And look, I think the family, those are the people who know President Biden the best. They spend the most
time around him. Obviously, we've heard from others over the last several days who work very closely with him, and they have full confidence in him.
And so, I think if we're going to put it to the family members, at least the reporting that I've seen and from what I've heard, they're encouraging
him to continue.
So again, I think the Democratic Party is sort of in a pause moment. Look, I think to some degree, it's the right thing that there are questions being
raised. Because if there weren't, people would say, well, then, you know, you're trying to gaslight people. I think it's the right thing to take a
step back and say, well, let's ask ourselves, you know, the question here. But again, I think if Joe Biden comes back out and says, I'm ready to do
this and he continues to demonstrate the ability to do the job.
And again, I think that's a really critical thing for us to remember. He has demonstrated the ability to do the job over the last 3-1/2 years. So, I
think he deserves, you know, our support on that point.
[16:40:07]
CHATTERLEY: Demonstration, though, of the last 3-1/2 years is now very different from what it takes to demonstrate capacity in the next four
years. And I think that's the big fear. Karen, great to get your insights. Thank you. Karen Finney, CNN, political commentator there.
All right. Coming up for us. European regulators are now cracking down on Facebook owner. Meta, the social media giant is the latest to run afoul of
the digital markets act. It could now be fined 10 percent of its global annual revenue. The details next.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back. Boeing is buying back one of its main suppliers as it tries to improve production quality and its battered reputation.
Spirit Aerosystems make some major parts for Boeing, including the fuselage of its 737 Max. Boeing shares finished 2.6 percent higher on the
announcement. Boeing sold Spirit to a private equity group for $900 million back in 2005.
Now the deal will cost the playmaker more than $8 billion and will pay -- Boeing will pay $4.7 billion worth of stock and take on more than $3
billion of Spirit AeroSystems debt.
Pete Muntean is in Washington, D.C. Pete, this is also part of perhaps trying to shore up the reputation and shore up the production line too. But
it does come in a week where we're talking about some kind of settlement, perhaps with the Department of Justice this week coming as well.
PETE MUNTEAN, CNN AVIATION CORRESPONDENT: Let's talk about the Spirit AeroSystems purchase first because it really brings more of the actual
building of the airplane under Boeing's control, because the company's been so sharply criticized for relying too heavily on contractors and
subcontractors to build major parts. Remember, investigators believe it was Spirit AeroSystems' mistake that led to the January 5 door plug blowout.
Spirit builds the fuselage or the body of each 737 Max plane at its plant in Wichita, Kansas. They're then taken by train to Boeing's plant in
Renton, Washington. This purchase really a part of rebuilding Boeing's reputation as you mentioned. Four-point plan that Boeing has to make it so
-- that that kind of incident that happened back on January 5 doesn't happen again. Boeing's overall plans calls for a lot of changes on the
factory floor.
Revamping training for workers, simplifying assembly line instructions, overhauling the safety culture, but the big one is eliminating defects. And
that's what that -- this is all about, really.
[16:45:07]
Something I saw firsthand on the 737-factory floor last week, and Boeing CEO Dave Calhoun, says this deal is in the best interest of the flying
public, our airline customers, the employees of spirit and Boeing and the shareholders and the country more broadly. Now, Calhoun was in a Senate
subcommittee hot seat last month and he insisted that Boeing inspectors are now showing up the Spirit AeroSystems' Wichita plant in force, so that
defects are caught before fuselages are sent to Boeing. And I want you to listen now to what Calhoun told that Senate subcommittee.
(BEGIN VIDEO CLIP)
DAVE CALHOUN, CHIEF EXECUTIVE OFFICER, BOEING: So that not a single fuselage would leave that facility that wasn't in perfect condition to come
to ours. That's how big this effort has been for us and that is how we've done it. And we've then sent that message to every supplier with respect to
perfection of the products that they deliver to us, so that they can move through our line in regular order.
(END VIDEO CLIP)
MUNTEAN: Last week at Boeing, I also heard from company head of quality control, Elizabeth Lund. She said, eliminating mistakes by spirit air
systems have led, has led to an overall 80 percent reduction in defects. I asked her if another door plug blow out can still happen, and she insisted
she's very confident that there will not be a repeat, Julia.
CHATTERLEY: And fingers crossed, that's the case. Small comfort, though, perhaps, to the families of those that were lost in the Boeing crashes in
2018 and 2019 in light of the ongoing safety concerns and that hearing that you mentioned last month have said, look, there needs to be some kind of
criminal prosecution here. Boeing needs to be held responsible, and there needs to be greater accountability fast forward to this week, and it looks
like a DHA settlement in the works.
It's -- the latest development in this really big saga, Julia. And this is according to the families of the 346 who died in the 737 Max 8 crashes of
2018 and 2019, they say that Boeing is close to this deal with the Department of Justice that will once again keep it shielded from a criminal
trial. That could be a lengthy affair that could air Boeing's dirty laundry in public. You know, families say through this deal, Boeing would face a
small fine, few years probation, settled with a corporate monitor to oversee safety efforts.
And they've been pushing the Department of Justice to go after Boeing for a long time, but they say this resolution is not really what they wanted. So
far, Boeing, the Department of Justice, both not commenting on this.
CHATTERLEY: Pete Muntean, thank you so much for that. Now Meta's pay or consent advertising model is the latest target of E.U. regulators. Right
now, Europeans who create an Instagram or Facebook account are given a choice. They can pay up to $14.00 a month to go ad free, or they can agree
to targeted advertising. The European Commission says this choice forces users to give out personal data without providing them a less personalized
but equivalent version.
Meta rejects the E.U.'s finding, if it holds up, the company could be fined up to 10 percent of its global revenue. Clare Duffy is in New York for us.
So, what the regulators are saying is basically, you can hit them with advertising, but it doesn't have to be personalized and rely on the
individual's data. The problem, of course, is that advertising is worth less money to Meta.
CLARE DUFFY, CNN BUSINESS WRITER: That's exactly it, Julia. Look, Meta's whole business is centered on targeted advertising. That's what it's best
at. That's what it's always done. And so, I think that's a real risk to meta. I mean, of course, there's this risk of a $13.5 billion fine if Meta
is indeed found to be in violation of the digital markets act. But even more than that, if it's forced to offer a less personalized version of
advertising on Facebook and Instagram, that could mean a real hit to its bottom line over time, which could be a real problem for the company.
I think to the other thing that sort of tricky for Meta here is that that subscription offering, that ad free subscription was offered, was launched
as a way of complying with a different E.U. regulation. The E.U. had ruled that tech companies needed to get consent from users to do targeted
advertising, but a court had said that they could offer subscription models as a way of getting that consent or sort of sidestepping the need for that
consent.
So, Meta is sort of dealing with kind of conflicting regulatory requirements here in the E.U.
CHATTERLEY: Yes, increasingly aggressive, this digital market act has got teeth. Thanks, Clare, great to chat to you.
All right, next. Making landfall in the Caribbean. The latest on the devastating impact of Hurricane Beryl, next.
(COMMERCIAL BREAK)
[16:52:07]
CHATTERLEY: Hurricane Beryl has now made landfall in the Caribbean with winds of up to 150 miles an hour. That's more than 240 kilometers. Here are
some of the latest images from Barbados. We're hearing multiple reports of downed trees, flooded streets and power outages. With more, let's speak to
Chad Myers at the World Weather Center for us. Fearsome images that we're seeing now, Chad. What more can we expect?
CHAD MYERS, CNN METEOROLOGIST: Even the Barbados winds were about 121 miles per hour, you know, almost 200 kph. But the whole thing is where the island here just north of Grenada that got hit, so absolutely right in the
middle. In fact, the eye of the hurricane was right over the center, and you could see the island from space. Obviously, the wind was zero then or
at least close.
But that means that they got both of the eye walls. They got the Western eyewall and the eastern eyewall, and some spots at 240 kilometers per hour.
Now things have calmed down. We're down in the teens, the 20s, even a couple spots there around 50 kilometers, 60 kilometers per hour. 30 or 40
miles per hour. And there'll be a lot of rain, but it's going to be in the Caribbean. It's going to be in the ocean. It's not going to be on land, per
se.
But now we're going to take this category four hurricane and move it off to the west. And I want you to notice that little pink island surrounded by
pink, that's Jamaica, and that is still in the cone. And that cone is still going to be a very significant hurricane at that point. So, I don't want
you to take your eyes off this Jamaica because this could be very, very important for you. The water is still warm. Warm like it should be in
August, September.
I mean, we're in the lower 30s, some spots middle 30s. Even where the storm is right now, the upper 20s. That's plenty of heat for these storms to keep
going. So, there's Beryl, there's Chris. It actually came on shore across parts of Mexico earlier today. So that's the sea storm, and then the next
one, a 50/50, chance of that being Debby. Let's talk about Chris for a second, because it came on shore where the first tropical system came on
shore a few weeks ago, making very wet land.
And so, now we're putting more rain on top of places that have already really flooded.
So, the average date of the third named tropical storm, which was Chris, should be August the 3rd. I'm looking at my watch right now because it will
tell me the date. We're not near August the 3rd, the date of the first major hurricane which we just had one Beryl, September 1st. What's today?
July 1st.
We are two months ahead of time for storms like this to be forming in the Atlantic, obviously more active than normal. That was the forecast. La Nina
in the forecast, the water temperatures like they should be in August or September. La Nina takes the shear away. A hurricane just wants to be all
by itself, like, don't touch me. I want to make my own wind. If wind gets in the way we call that shear and that kind of knocks things down when you
have La Nina, the shear goes away so more storms can form.
Not every little tropical wave is going to turn into gets in the way. We call that shear, and that kind of knocks things down when you have La Nina,
the shear goes away so more storms can form. Not every little tropical wave is going to turn into a storm, but it could and that's where we are right
now. When we have a major which was about six miles per hour, 10 kilometers per hour, from a Category Five when it hit the islands there, north of
Grenada.
[16:55:26]
It was very, very close. It was cat 4.8. So there's no such thing, but you get the idea almost that cat five. And all of the damage that we see from
these major hurricanes along the Gulf Coast, billion dollars of damage. Well, we know some of the islands. We know -- we know the island there. I
mean, it's really -- it's Curacao. And this is an island I think we're going to try to get some information from.
I know storm chasers that are there with the Elon Musk Starlink and I haven't heard from them yet. So, I don't know what happened to them and we
obviously don't know what happened to the people because there's no communications. If you can't get a Starlink to work, then things have
really gone downhill quickly.
CHATTERLEY: Chad, it's always great to get an update on where we think the weather's headed, but also the education you provide is vital too and that
two months ahead of time as well on some of these hurricanes.
MYERS: Yes. Two months.
CHATTERLEY: I know, frightening. Fingers crossed. We hear from the guys with the Starlinks as well. Thanks, Chad. Chad Myers there. Coming up.
We'll have the final numbers too from Wall Street. Stay with us.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back. And as we were just discussing an early start to hurricane season could spelled trouble for cruise operators. Shares in
Carnival and Norwegian Cruise Line both down more than five percent. Royal Caribbean is down nearly two percent. Two U.S. stocks began the second half
of the year just slightly higher. The Dow giving up early gains and finishing the day around 50 points higher with a shortened trading week, of
course.
Investors are also waiting for the June jobs report, which comes out on Friday, and that could provide a clue to the Fed's next move on interest
rates. And that just about wraps up. QUEST MEANS BUSINESS. I'm Julia Chatterley. And "THE LEAD" with Jake Tapper starts right now.
JAKE TAPPER, CNN ANCHOR: Welcome to THE LEAD. I'm Jake Tapper. This hour, the immunity decision from the U.S. Supreme Court ahead of what now happens
in the federal case that led to this question before the court in the first place.
[17:00:03]
The election interference case brought on by Special Counsel Jack Smith.
END
