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Quest Means Business
Netanyahu Hammers Iran, Thanks Biden In Speech To US Congress; Israel Shrinks The Size Of Its Humanitarian Zone In Gaza; CNN Poll: No Clear Leader Between Harris And Trump; Netanyahu Insists He's Engaged In Intensive Efforts To Get Hostages Home; Wall Street Slides On Tech Sell- Off; Intel Offers AI Experiences To Olympic Fans; Taking On Paris Like A Local. Aired 4-5p ET
Aired July 24, 2024 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:25]
PAULA NEWTON, CNN INTERNATIONAL HOST: And there is the bell on what was a brutal day in the market. It is the worst day in fact for the NASDAQ since
2022. The S&P didn't fare much better, down more than two percent. The Dow down more than a percent. Investors spooked by valuations as those tech
earnings come in.
Those are the markets these are the main events: In a fiery speech to Congress, Benjamin Netanyahu asked the US to speed up its military
assistance for the war in Gaza.
Meantime, a new CNN poll shows Kamala Harris improving on Biden's performance against Trump.
And the first event of the Paris Olympics has strange and a chaotic end.
Live from New York, it is Wednesday, July 24th. I'm Paula Newton, in for Richard Quest and this is QUEST MEANS BUSINESS.
Good evening and we begin with Israeli Prime Minister Benjamin Netanyahu, who praised the US and attacked both Iran and protesters in his address to
Congress just hours ago speaking for about an hour, in fact, he focused much of his address and the October 7th Hamas attack.
Mr. Netanyahu thanked president Biden for his support, despite a times a shaky relationship between the leaders. The prime minister really was
spirited at times like when he asked the US to speed up those weapons deliveries. Listen.
(BEGIN VIDEO CLIP)
BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER: Fast-tracking US military aid could dramatically expedite an end to the war in Gaza and help prevent a
broader war in the Middle East.
In World War II, as Britain fought on the frontlines of civilization, Winston Churchill appealed to Americans with these famous words, "Give us
the tools and we'll finish the job."
Today, as Israel fights on the frontline of civilization, I too appeal to America, gives us the tools faster and we will finish the job faster.
(CHEERING AND APPLAUSE)
(End VT)
NEWTON: Now, dozens of Democratic lawmakers skipped Mr. Netanyahu's speech because of their opposition to the war. The Progressive Caucus even ran
counterprogramming during the address outside of Congress.
Meantime, there is a massive pro-Palestinian protest happening as we speak. People are holding signs calling Prime Minister Netanyahu, a war criminal,
demanding that Israel ends what they describe as a genocide in Gaza.
Now security, of course, as you can imagine, ramped up and police have used flashbangs and pepper spray in some confrontations with protesters.
During his speech, Mr. Netanyahu called such demonstrators Iran's useful idiots. He accused them of standing with rapists and murderers.
Jim Sciutto is on Capitol Hill for us. He has been taking in the entirety of the speech and the reaction and I really listened carefully to your
precis after the speech, Jim. He did not give an inch and was in your words, quite strident.
So I am wondering where we go from here? Especially as we have that key ceasefire that hangs in the balance.
JIM SCIUTTO CNN ANCHOR: Listen, it was already political going in, right? You at 80-some odd House members, Democrats who did not attend in protest.
Nine senators, the vice president as well, not present and that was deliberate, right?
And to be clear, those political divisions extend to his own country. Public polling shows that a good two-thirds of the Israeli population would
prefer another leader. So he is a highly political figure at highly political time with deep divisions over the conduct of Israel's war in Gaza
and his response to that was everything but conciliatory language, right?
To the criticism of civilian casualties, he spoke about the conduct of operations in Gaza claiming that there were virtually no civilian
casualties there. There have been consistent questions about out the amount of food, humanitarian aid getting into Gaza. He says, it is not Israel's
fault, that it is entirely Hamas' fault, so deflecting that criticism and then as you say, this is a country right now that is quite publicly
debating its relationship with Israel and the conduct of the war.
Most visibly with those public protests that we are seeing taking place just outside the Capitol here today. But he goes all in and accuses all of
those protesters who we should note having spent time among those protesters that are quite a diverse group, but saying all of them are Hamas
supporters and all of them in fact are doing Iran's bidding.
[16:05:10]
So that is his reaction to it, and Paula, you and I have covered him for a number of years and that is fitting with Netanyahu's approach to the
defense of his country and even to his own personal politics, and that is not to give any ground whatsoever.
NEWTON: It was as if someone tapped him on the shoulder and he took two fists and knocked them back. He really did not go in any way, shape, or
form towards conciliation. As you said, did not give an inch, but I am wondering here how he navigates the next few days? He must meet with Biden.
He is meeting with Kamala Harris and then on Friday, meeting with Donald Trump, who we should say while had been a big supporter of Netanyahu, that
relationship has soured of late.
SCIUTTO: It is true.
First to the president's meeting. It is our understanding that President Biden is quite intent before he leaves office, he has got a number of
months, right, to go still as the US president, that he wants to bring a hostage and ceasefire deal across the finish line and US officials have
been somewhat frustrated certainly with Hamas' many stops and starts on the negotiations, but also the Israeli side with some doubts expressed about
how invested the Israeli prime minister is in those talks.
So it is expected that President Biden will give him a push to get that deal finished before the end of Biden's term. Kamala Harris, perhaps, I
don't want to say a difficult meeting, but Kamala Harris, one of the first senior officials in this country, Democratic Party leaders to come out
publicly and criticize the conduct of the war in Gaza for the large number of civilian casualties. So you can expect that that won't be entirely a
warm embrace.
And then Donald Trump. They've had their personal differences, but they have also, as you heard from Netanyahu, had quite a deep relationship.
Netanyahu praising Trump for, for instance, moving the US embassy from Tel Aviv to Jerusalem, overturning a long-held US policy, and also for his
steadfast support for Israel.
So I think you could see the potential there for them, perhaps burying the hatchet and moving forward, but it also shows the difficulty for an Israeli
leader. There is a quite contested US election coming up and based on the results of that election, you would have a different approach to Israel,
not an end of the relationship, certainly not an end of the alliance, but perhaps with a Democratic president, more of a willingness to criticize
Israeli policy.
NEWTON: Yes, we will see how he fares in the next few days, as you said, especially as he gears up for those meetings.
Jim Sciutto, really appreciate you having on board there as we parse the reaction from Capitol Hill.
SCIUTTO: Thank you.
NEWTON: Now, as Mr. Netanyahu visits Washington, Israel is intensifying its attacks in Gaza, killing dozens of Palestinians in Khan Younis.
Israel says the new ground assault is targeting Hamas militants. The IDF is also shrinking the size of its humanitarian zone in Gaza, forcing thousands
of Palestinians to flee.
Now the UN slammed Tuesdays evacuation order as confusing. It also accused Israel of giving civilians no time to know where they should go.
Jeremy Diamond is in Tel Aviv for us and, you know, we get all of those points in terms of what civilians are going through in Gaza and you
juxtapose it against this speech were as I said Netanyahu did not give an inch really said that the IDF was doing everything that they could in order
to spare civilian lives, and yet, we know different each and every day as you've seen for yourself when you've been there with the IDF.
JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Yes, there is no question about it that the Israeli prime minister was propping up a kind of
alternate version of the way in which this military campaign in Gaza has unfolded, trying to not only just defend the conduct of Israeli forces in
Gaza, but really going beyond that, not even acknowledging some of the errors, mistakes that the Israeli military itself has acknowledged.
And doing so, we should note to overwhelming applause from US lawmakers. The Israeli prime minister at several points tried to push back on key
criticism of Israel. One of those being this notion that the ICC has said in its decision to issue or to seek arrest warrants for the Israeli prime
minister accusing these really government of starving people in Gaza.
And while the Israeli prime minister thew out a bunch of numbers about the number of aid trucks that have gotten into Gaza, what he didn't talk about
is the clear and convincing evidence that humanitarian aid organizations talk about on the ground, which is that Israel simply has not allowed
enough aid in, hasn't done enough to provide safe routes for those aid trucks to actually get in to deconflict those routes with Israeli military
activities.
And we've also seen the ways in which Israel can turn on and off the spigot of aid, depending on the political moment in which it finds itself.
[16:10:10]
He also tried to claim that Israel effectively has one of the best civilian to combatant ratios in the world, citing this expert, the only expert that
he has ever cited on this issue, a man named John Spencer at West Point. I can tell you, I've talked to a number of military experts in terms of
civilian casualties in warfare and they all say that it is very clear that Israel simply does not do as much as most modern militaries do to reduce
the number of civilian casualties, that the number of civilians killed per strike in Gaza is far higher than when you compare it, for example, to the
US' bombing campaign in Syria, which was not viewed as a positive from a US military point of view.
Now beyond these kind of individual factchecks, I think overall what was clear is that the Israeli prime minister was trying to strike a very
bipartisan tone as he tried to defend Israel, tried to prop up support for Israel and he tried to really bring the United States in, trying to make
the case that Israel's fight in Gaza, Israel's fight against Hamas, which he then broadened out to Israel's fight against Iran is really not only an
Israeli fight, but an American fight saying, this is your fight too.
And as he was doing so, what he focused on more than anything at a time when these negotiations are still ongoing, US and Israeli officials
indicating that a deal might be within reach, he didn't really focus on that potential ceasefire agreement. He focused far, far more on this notion
of defeating Hamas, vowing multiple times that Israel will continue to fight until they achieve victory, vowing that nothing short of victory
would make Israel stop its war in Gaza.
Those may be the remarks of a man who is trying to reassure his right-wing base just before agreeing to a ceasefire deal, or they could be the words
of a man who has no intention of moving forward with a ceasefire deal. We may find out which one it is over the course of the next week -- Paula.
NEWTON: Yes, as you say, just an extraordinary platform, political platform for the prime minister there at Congress at a speech that ran nearly an
hour. Jeremy, thanks so much. Really appreciate you tracking the reaction from there.
Now, as we were just mentioning, Netanyahu's meeting with President Biden and Vice President Harris and of course, former President Trump this week,
Gerald Feierstein is the former US ambassador to Yemen. He is now the director of the Arabian Peninsula Affairs Program at the Middle East
Institute.
Thanks so much for joining us as we continue to try and track the reaction from this speech. I want to get your reaction given that we had been told
that perhaps it would be a conciliatory speech, it was not at all.
GERALD FEIERSTEIN, FORMER US AMBASSADOR TO YEMEN: It is a pleasure to be with you, Paula. I think that there are two main themes here.
One, it is conciliatory that is, that that Netanyahu was extremely careful to stay out of the American political context right now. He was equally
positive, equally thankful to both Republicans and Democrats, very carefully balancing President Biden and President Trump, so that he avoided
the pitfall of getting dragged into this American presidential election period.
But beyond that and I think that both of your correspondents were quite accurate in the way they characterized his comments, not a word about the
Palestinian -- innocent Palestinian civilians, not a word about any positive image, not only of the current conflict, but of what comes
afterwards.
His only talk was about Gaza that is disarmed and de-radicalized he said, but still under constant Israeli security control, nothing about what
happens afterwards, nothing about anything that is positive.
Some of the things that he said were clearly not true and of course, he smeared just about everybody no matter how sincere they were, smeared,
everybody who has expressed concern about the situation in Gaza calling them pro-Hamas, or Iranian useful idiots.
This is not a way to build up support nor is it a way that he is going to bring Americans together in support of where Israel is right now.
NEWTON: Yes, and notable in fact that some of those protesters are not just Jewish, many of them are just peace activists who want Hamas to release the
hostages and equally would like the suffering to end for those in Gaza.
I want to ask you though, as regards to US Middle East policy, where does someone like President Biden go now with this? Because he is going to be in
a room behind closed doors.
[16:15:03]
Do you believe that the president now -- the fact that he is not running again, do you believe this makes him a little bit more free to perhaps be a
bit tougher with Netanyahu and get him to that ceasefire deal?
FEIERSTEIN: Well, I think that there is no question that the president is going to continue to press Netanyahu to be more forward leaning, more
cooperative in trying to end the Gaza conflict and the humanitarian disaster in Gaza, think a little bit more about what comes afterwards.
And for the president, it is not only a question of his own legacy, but it is also understanding that particularly within the Democratic base, he
needs to bring people along because their willingness to vote for Kamala Harris is going to depend an awful lot on whether they think that he is
doing what he needs to do, not only to protect Israel, but also to do something favorable for the Palestinians.
So, he is going to continue to press whether or not he is ready to really put his foot down with Netanyahu and whether that means anything to
Netanyahu is an open question.
NEWTON: And what do you believe will come of the meeting with Donald Trump? I mean, at this point in time, this is -- I don't have to remind anyone, a
very close election that is upcoming. He definitely went out of his way, Netanyahu to praise the Trump administration and the former president
himself.
What do you believe will be the contours of that meeting on Friday?
FEIERSTEIN: Well, it is going to be very interesting to see because as your correspondent pointed out, even though Donald Trump was probably willing to
go much farther in taking steps in favor of Israel, Netanyahu mentioned the recognition of Israeli sovereignty in the Golan Heights, recognition of
Jerusalem as the capital of Israel, transfer of the embassy.
But Trump was angry at Netanyahu because Netanyahu was early on ready to recognize President Biden's election victory and Donald Trump didn't like
that and has been cool to him ever since.
So Netanyahu is trying to make up and of course, he wants to make sure that if Donald Trump does win the election, that he is going to continue to have
a friend in the White House, so I think that it is going to be very a warm and fuzzy relationship, but very much Netanyahu being the demander here,
the one who is looking to improve the relationship.
NEWTON: And we will leave it there for now. Gerald Feierstein, thank you so much. Appreciate it.
FEIERSTEIN: Thank you.
NEWTON: And still to come for us, CNN's brand-new polling on the rapidly changing US presidential race. What registered voters think of a Harris-
Trump matchup.
(COMMERCIAL BREAK)
[16:20:36]
NEWTON: So CNN has brand new polling on the rapidly evolving US presidential race. For weeks, many Democrats called for Joe Biden to end
his re-election bid because they said he couldn't beat Donald Trump.
Now, the new CNN poll of registered voters, remember, finds no clear leader in the new Harris-Trump race.
Back in April and June, surveys of the same set of voters, that's what is significant here found Mr. Biden trailing by six points.
Now the poll also found overwhelming support for Joe Biden's decision to bow out of the race. Almost nine in 10 voters saying they approve of his
decision.
We want to get more now from David Chalian, you are the polling maestro. What did you find in this that was perhaps surprising? And again, it is
really our first insight into what voters are thinking after these historic events.
DAVID CHALIAN, CNN POLITICAL DIRECTOR: Yes, I mean, this is our first snapshot, very early of what is not a hypothetical race anymore, but
actually is the Trump versus Harris race.
You are right to note that Kamala Harris versus what Joe Biden was doing against Donald Trump has narrowed the gap into a margin-of-error race. No
clear leader as you showed 49 percent to 46 percent.
We've also seen underneath those numbers, Harris is doing better among some key core Democratic constituencies than Joe Biden was against Donald Trump
-- young voters, Black voters, Latino voters, female voters -- but that does not mean as this top line shows you, Paula, that this is now an
energized Democratic Party that gets back into the game of a very competitive going to be very close and tough presidential election.
You did note, I would just say the overwhelming support Joe Biden has for his decision. I just want to note that that number is across Republicans,
Democrats, Independents. Eight in 10 of each of them. I mean that 87 percent number is overall.
But if you look at it by party, overwhelmingly every segment of the political population of the country supports his decision. And we also
asked how people felt about this, and take a look, they say -- 58 percent say, they are relieved that he is stepping down, 37 percent say they are
hopeful, 28 percent surprised. Only four percent told us that they are angry that Joe Biden is not running for re-election.
NEWTON: You wonder what the president is making of this as he addresses the nation, he will be at 8:00 PM Eastern Time and you look at that 58 percent
relieved. It really is almost unanimous and people wondering why he didn't get out of the race sooner?
David, though I have to ask you, when we look at these new numbers now, when we look at the overall race, that is not really what is important
here, right? I mean, it is still those crucial battleground states that are going to matter.
CHALIAN: That is true and this is the national picture, so this is not just looking state-by-state in those seven states. The Biden-Harris Campaign,
forgive me, I am used to say the Biden Campaign -- the Harris Campaign put out a memo today actually saying that they believe their path to 270
electoral votes through those battleground states has gotten more viable with more options, than existed when Biden was the candidate because they
are so reliant and they still are on those upper Rust Belt -- Michigan, Pennsylvania, Wisconsin states.
But now the Sunbelt States, they say Nevada, Arizona, Georgia, North Carolina could potentially come back online into a very competitive stature
with Harris as the nominee.
One more thing here, Paula, I want to point out that I think is so fascinating from our poll. Overwhelmingly when Joe Biden was the candidate,
Democrats said they were voting against Donald Trump rather than for Joe Biden, only 37 percent of Biden supporters said they were casting their
vote affirmatively for Joe Biden. Kamala Harris has completely flipped that now.
Fifty percent of Harris supporters say their vote is actually for Kamala Harris and 50 percent say their vote is against Donald Trump. So instead of
just being a candidate in opposition to something, she is proving out of the gate here to be a candidate that people can rally about in the
affirmative sense as well for her candidacy.
NEWTON: Yes, and a lot of times that does translate to turnout, all important turnout for those Democratic and Republican voters.
Having said that, David Chalian, fascinating, thanks so much. Appreciate you bringing it to us.
CHALIAN: Thank you. Sure.
NEWTON: Now, President Biden, as we were saying, will indeed address the nation in just a few hours from the Oval Office. It will be his first
extensive remarks since ending his re-election bid and endorsing Vice President Harris.
[16:25:07]
Now, sources tell CNN, the president intends to use the primetime address to reveal how he came to the decision to bow out of the race.
Joining me now is CNN's MJ Lee.
I mean, MJ, it has been quite a few days for president there. I'd imagine he wants a very robust address that not only explains his decision, but he
must be charting a path towards the end of his term here and what will ultimately be his legacy.
MJ LEE, CNN WHITE HOUSE CORRESPONDENT: Yes, it has truly been a remarkable few days in American politics with so many changes taking place at
breakneck speed and one of the most incredible things about the last few days is that we still have yet to hear from President Biden about his
decision. That of course, is about to change tonight.
(BEGIN VIDEOTAPE)
LEE (voice over): President Joe Biden preparing to address the American people tonight in what is certain to be one of the most defining speeches
of his career.
He speaks just three days after his stunning announcement dropping out of the 2024 race in a letter. Biden sources said is set to explain that
decision to end his re-election campaign.
In his letter, Sunday, Biden wrote: "It is in the best interest of my party and the country for me to stand down."
The president also planning to lay out his agenda for his remaining months in office.
UNIDENTIFIED MALE: Congratulations, Mr. President.
LEE (voice over): And reflect upon his most significant accomplishments of his first term.
KARINE JEAN-PIERRE, WHITE HOUSE PRESS SECRETARY: So he certainly wants to build on what we've been able to do. You heard me say this has been a --
certainly, what he has been able to accomplish in the four years in this first term.
LEE (voice over): Wednesday's primetime address, only Biden's forth from the Oval Office.
JOE BIDEN, PRESIDENT OF THE UNITED STATES: Our fellow Americans --
LEE (voice over): The last one had come only days before, on the heels of a failed assassination attempt on former President Donald Trump.
As Biden begins the closing chapter of his presidency and half century in public service, his vice president beginning a new one.
Kamala Harris quickly marching towards her party's nomination after receiving the president's endorsement.
KAMALA HARRIS, VICE PRESIDENT OF THE UNITED STATES: I wanted to share with you a little bit about him. He has extraordinary determination and profound
compassion for the people of our country.
And I say that because I know that we are all deeply, deeply grateful for his service to our nation.
LEE (voice over): These seismic shifts in the American political landscape coming with breath-taking speed following Biden's disastrous debate against
Trump last month.
BIDEN: Dealing with everything we have to deal with -- look, if -- we finally beat Medicare.
LEE (voice over): The Democratic Party spiraling into chaos for three-plus weeks amid growing calls for the president to drop out.
New polling Wednesday showing the country overwhelmingly approves of the president's ultimate decision, and most also believed the president should
finish out the remainder of his term.
(END VIDEOTAPE)
LEE (on camera): And we certainly do expect a clearer picture of the shaping of the Biden legacy to emerge in the coming weeks and months, but
as sources have pointed out, the decision from the president to drop out of the race is only still a handful of days old, and we are told that those
discussions have not yet begun in earnest.
I should also note just a moment ago, the White House just wrapped up its first press briefing since the president's decision and the White House
Press Secretary Karine Jean-Pierre, telling reporters that any suggestion that President Biden resign from office before January is ridiculous.
She said he didn't decide to drop out because he thought he couldn't finish out a second term, but that is it was entirely about putting country first
-- Paula.
NEWTON: MJ, we will continue to watch events as they unfold in the next few hours and we will wait for his address. Appreciate it.
Now, Israeli Prime Minister Benjamin Netanyahu told Congress, he is working intensively to return the hostages. Some of their families though are
criticizing his trip to Washington. We will have that next.
(COMMERCIAL BREAK)
[16:32:47]
NEWTON: Hello, I'm Paula Newton, and there's more QUEST MEANS BUSINESS in a moment when we talk about those markets. They've had their worst day in
years. Lackluster tech earnings are to blame and if you're traveling to the Olympics, we got you covered. Our Paris Olympic etiquette guide coming up.
Before that, though, the headlines this hour.
New details about the attempted assassination of former U.S. president Donald Trump. FBI director Christopher Wray told a congressional committee
that the gunman flew a drone near the rally area just two hours before the shooting on July 13th. The law enforcement official also said the Trump
shooter looked up details about the 1963 JFK assassination.
At least 18 people were killed in a Nepal plane crash Wednesday morning. A small aircraft skidded off the runway during the takeoff from the capital
Kathmandu. The Soria Airlines flight was on route for technical maintenance with only carrier employees on board. Now the pilot is the only survivor
and is currently hospitalized.
A new study has found a 100 percent effective drug for HIV prevention in women. The two-year long trial in Africa showed zero infections in women in
phase three. Twice yearly injection is already approved in the United States and Europe.
And we want to get back to our top story, Israeli Prime Minister Benjamin Netanyahu's address to the U.S. Congress. Now he told lawmakers he was
engaged in intensive efforts to get the hostages home. Several hostage families, however, have criticized his trip to Washington, saying he
shouldn't remain in Israel to secure a deal. The Hostage Families Forum released a statement saying the speech and applause won't erase the one sad
fact. The words deal now were absent from the prime minister's address.
Alex Marquardt has been following all of this for us in Washington, and Alex, you and I both have spoken to the families of the hostages. It just
an excruciating place to be. You want so desperately for there to be a deal and then you get this kind of a very strident speech from Benjamin
Netanyahu, and you wonder, where is this deal? Where does it stand now?
[16:35:07]
ALEX MARQUARDT, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: Well, you're absolutely right, Paula. I mean, the hostage families and the hostages
themselves are not monolithic. I mean, you saw that there were some hostage families and at least one hostage who are with Netanyahu, accompany
Netanyahu into the chamber. There are others who have been outside and then there as well who have protested against him. But what they do have in
common, of course, is that they want all the hostages home as soon as possible.
Now, Netanyahu did not talk necessarily about this framework that President Biden put forward some two months ago, that apparently according to U.S.
officials both Israel and Hamas have signed on to. And what Netanyahu has said in the past few days is that he does believe that the conditions have
ripen to the point where a hostage may be -- a hostage deal may be at hand.
Those are his words, but it's clear to me in speaking with sources that there are specifics and technicalities, some of the choreography of how all
of this would unfold, that still needs to be determined. So what we know right now, I was told by an official involved from one of the mediating
countries yesterday that they are waiting on an Israeli response.
And in fact, what we heard from Israeli opposition leader Benny Gantz earlier today was that Netanyahu, he says, is delaying the deal, that he
hasn't given instructions to his negotiators in the past week and a half. We do know that the team of negotiators that Israel is ready to send out to
reengage in these talks has been delayed while Netanyahu is here in town.
The White House is focusing their efforts with Netanyahu while he's here in Washington in getting him to where they need to be, getting him across the
finish line. And then we understand that the Israeli negotiating team will go out. So they are getting closer. The sounds from top officials are more
encouraging. We heard Secretary of State Antony Blinken say a couple of days ago that they're within the 10-yard line.
That's American speak for almost getting to the finish, and Biden saying a couple of days ago that they are on the verge of a deal. But it is clear
that there are still things that need to be worked out. And frankly, when you listen to Israeli politicians, much of the Israeli public and experts,
there is some real skepticism about whether Netanyahu actually does want a deal or whether he wants to continue this military campaign against Hamas -
- Paula.
NEWTON: Yes. And in fact, Benny Gantz, you were saying, said that out loud, right? He said, look, he is the obstacle right now to this kind of a deal.
Alex, appreciate you following it, really appreciate your input there as we continue to follow the ceasefire deal.
Now, major tech stocks are in a major slump. We take a look at what that meant for today's U.S. trading when we come back.
(COMMERCIAL BREAK)
[16:40:23]
NEWTON: U.S. markets, yes, they took a dive today. The Nasdaq its worst day since 2022, falling more than 650 points. Now the Dow Jones closed under
the 40,000 mark for the first time in nearly two weeks. And the S&P 500 not left out there closed at its lowest since mid-June.
Now the slide follows yesterday's lackluster Alphabet and Tesla earnings. These and the other magnificent seven stocks have had a real tough couple
of days. We will say a lot of those tough days came after some extraordinary gains.
Chief global market strategist at Invesco, Kristina Hooper joins me live now.
OK. So when Tesla and Alphabet reported yesterday that was kind of my first clue. This isn't going so well. Is this an issue that people have been
spooked by the guidance or in fact by what they're staring in the face, which is really sky-high valuations?
KRISTINA HOOPER, CHIEF GLOBAL MARKET STRATEGIST, INVESCO: Well, we definitely have very high valuations, especially for a concentrated number
of tech names. So when you're priced to near perfection, then investors are more discerning and they scrutinize more. And so I think that's what's
happening but also keep in mind that there are other causes for jitters.
We heard from Bill Dudley today, someone who had been arguing higher for longer and made a pretty significant pivot to saying the Fed needs to cut
in July and they may already be too late to avoid a recession. And then of course we had our neighbors to the north, the Bank of Canada, actually
cutting rates again, so this is their second rate cut in their cycle and we haven't started.
So I think the very strong rally that we've experienced over many months, the froth that that has created, and the kind of overarching nervousness,
that has created an environment in which we're seeing a significant selloff. And I think it's actually pretty well-deserved. I think a selloff
after such a long period of rallying is probably pretty healthy.
NEWTON: Yes. And as you said, that's healthy for the market and certainly hopefully some investors did take some of those gains off the table. I
think what's more concerning is the follow-up to that, right? The macro environment. We had Jerome Powell saying just a few weeks ago that in fact
he was not concerned so much that they hadn't moved so quickly. But at the same time, he also said, look, we don't want to do too little and be too
late. That does not instill confidence.
HOOPER: Well, I think he's trying to be honest and say this is a balancing act. And let's face it, the Fed is worried about its legacy. No one wants
to preside over, you know, another resurgence and high inflation. And so they've been very, very cautious. But luckily he does recognize that there
are cracks forming in the economy and hopefully the Fed will act sooner rather than later.
So I was actually happy that Bill Dudley came out and said this. I've argued the Fed should cut in July. I still think it's a pretty low
probability, but it makes sense to do that. If we look to '94, '95, that was a period in which the Fed was successful in tightening but avoiding a
recession. They only tightened 300 basis points and they held at that high terminal level for only five months before beginning to cut.
This time around they've tightened 500 basis points and they've held at that high terminal level for now 12 months. So I do believe it's time to
start cutting. The risks increase every day. It remains at this level.
NEWTON: And before I let you go, in terms of guidance here as we parse some of these tech earnings and beyond, is there anything there that concerns
you in terms of the forward guidance we're going to get from some of these companies?
HOOPER: Well, I do believe investors are becoming impatient. That's part of that priced for near perfection thesis. And so they're looking for results
sooner rather than later. And instead what they're seeing is very significant investments being made in AI that are not going to pay off
tomorrow most likely. And so I suspect that we'll see continued impatience with AI investments, but I do believe ultimately for investors that are
patient and I have a long enough time horizon, they're likely to be pleased, ultimately.
Now also, what I'm more concerned about and what is more immediate is the health of the U.S. consumer. What we've heard from a number of different
companies that have reported thus far is that there is pressure on consumers or at least a subset of consumers, lower-income Americans are
feeling a lot of pressure.
[16:45:08]
And so that's a concern especially if that pressure extends to more of the middle class. So because the consumer drives the U.S. economy, so I'm going
to be paying close attention to companies reporting going forward.
NEWTON: Yes, especially as we look at those results for companies that are -- you know, have discretionary spending on their mind.
Kristina Hooper, for us, chief global market strategist at Invesco. Thanks so much. Appreciate it.
Now fans are descending on Paris for the Olympics. When we come back, we'll have tips and tricks to help tourists avoid embarrassment in that chic
city.
(BEGIN VIDEO CLIP)
SASKYA VANDOORNE, CNN SENIOR PRODUCER: A classic faux pas, asking for alternative milk you're your coffee.
(Through text translation): Almond milk, please?
UNIDENTIFIED MALE (through text translation): Sorry, Madam, I don't have almond milk here.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
NEWTON: So a chaotic football match between Morocco and Argentina kicked off the Paris Olympics today. The men's match was suspended when unruly
fans rushed the field to protest a game tying goal deep into injury time. Now that goal was later ruled off-side. That was by VAR, a video review,
two hours later, and with no fans in the stadium, the match finished with Morocco beating Argentina, 2-1.
Now today's kickoff also marks the use of new AI technology from the company Intel. It's partnered with the Paris games on a series of programs,
including one that helps automatically generate highlight reels for chosen events.
Sara Vickers is the head of Intel's Olympic and Paralympic Games Program, and she joins me now from Paris.
I mean, the idea about AI sounds good, but we all want to know what's in it for us, right? Especially with this kind of immediacy. So you guys are
aiming to customize the broadcast experience here. How are you able to do that?
SARAH VICKERS, HEAD OF OLYMPIC AND PARALYMPIC GAMES PROGRAM, INTEL: So traditionally broadcast has been very manually done and when you think
about highlights. So you were really limited by the number of people that you could have working on highlights. With AI we're able well to create
thousands, endless amounts of highlights. You can really get that customized experience for the sport that you love, for the country you're
from.
So we're getting highlights to people around the world, but maybe didn't get them before, or for sports that maybe didn't get the love that some of
the high-profile sports. So we're really bringing AI everywhere with this solution.
NEWTON: And how will people be able to access this in terms of it being dispersed?
[16:50:02]
I mean, you are partnering with broadcasters, which ones, and what mode will that be broadcast in?
VICKERS: So the way we work is we work with Olympic broadcasting services and they then give those highlights and those opportunities to the media
rights holders. So there's different rights holders around the world, like NBC in the U.S., and they will then use that service to create highlights
for their fans.
NEWTON: What will viewers actually see, though? Because I think there has been -- this kind of customization has been done. I mean, there are some
viewers on demand you can use it using your remote. What will be different about this experience?
VICKERS: I think it's just the vastness of it and the opportunity that there's going to be almost anything. What they'll see will really depend
because they'll start to create highlights based on what viewing patterns are and what they're going to see. So it could be, if you're starting to
see trends, you're starting to see something interesting in the stands, you can start to create new highlights based on that. So there's really the
opportunities are endless.
So I think it's really just that opportunity that fans are going to get something that is really meaningful to them. So, for example, they can pick
a sport that they like, say it's archery. They might not have been able to get those highlights before. Now they can really see those special moments
that they would never have seen before.
NEWTON: And so this will lead to a more tailored Olympic experience, do you think? I mean, how do you see this rolling out in Olympic Games to come?
VICKERS: I think so. I think fans are becoming more demanding on how their content is delivered to them. So they want that customized personalized
experience. I think with AI technology that's going to continue to evolve and continue to be something that people are expecting. I'd also say the
demand for real data is going to continue and data requires so much compute, if you want real time data that it requires processing power. And
that's where we can help.
NEWTON: And when we talk about that, though, in terms of me just being a viewer sitting at home.
VICKERS: Sure.
NEWTON: When we talk about AI, what will it do, though, for my experience? I mean, people have been talking about things like virtual reality for a
while. They've been talking about certainly how you can track the sport. I mean, and sports lends itself specifically to AI in a very exciting way.
VICKERS: I think sometimes the users won't really realize that its AI that's helped processing that information. So what's going to happen is if
you think about broadcast and you think about data analytics, having that overlay or the ability to give that data really quickly requires AI to make
that happen. So I think we have to help the user understand that. But to the viewer at home, it's just enhancing their experience.
NEWTON: Right. Well, we all await that. As you said, there are some sports that people are very keen about, but they don't exactly get the spotlight
during the Olympics. So we're all excited for the games to come.
VICKERS: Absolutely.
NEWTON: Sarah Vickers for us, thanks so much and enjoy the games.
VICKERS: Thanks for having me.
NEWTON: Now tourists tend to stick out like a sore thumb in Paris, I can tell you that, but if you're traveling there for the Olympics, have no
fear. I can think of no one better, CNN producer, Saskya Vandoorne is your guide to help you fit in and no, you can't do it by watching "Emily in
Paris."
It covers everything from coffee orders to cycling. One thing it doesn't cover, unfortunately, no is my French-Canadian accent. Take a listen.
(BEGIN VIDEO CLIP)
VANDOORNE: Paris. Millions of people flock here every year for the culture, couture, cuisine. But how do you avoid being a cliche?
Well, this summer the Olympics are coming to town and in a city that seven and a half times smaller than New York, trust me, it's easy to spot a
tourist.
There are a few simple ways to navigate Paris like a local. I'll be your guide.
GRAPHIC: Suivez-moi (follow me).
VANDOORNE: A classic faux pas, asking for alternative milk with your coffee.
(Through text translation): Almond milk, please?
UNIDENTIFIED MALE (through text translation): Sorry, Madam, I don't have almond milk here.
VANDOORNE: Short and black. That's the traditional way. Craving a baguette? What you really want to order is tradition.
UNIDENTIFIED FEMALE (through text translation): The tradition.
UNIDENTIFIED FEMALE (through text translation): The tradition.
UNIDENTIFIED FEMALE (through text translation): Tradition bread every day. Tradition, tradition.
VANDOORNE: Tra-dee-si-on. Third thing to know, want to avoid traveling by car. Paris traffic is notoriously chaotic. Use a Velib, the city's public
bike sharing service. They're pretty much everywhere and cycle lanes are plentiful. The city's metro is often super congested and in the summer,
unbearably hot so try walking instead.
In Paris it's easy to get distracted but beware of pickpockets. Don't keep your phone in your back pocket and do keep an eye on your belongings.
If you're lucky enough to be here for the games, the first thing to know is that tourist sites like these have been turned into Olympic venues so it's
probably best to avoid them. Places like Trocadero near the Eiffel Tower, or right here at Place de la Concorde, metro stations will be closed and
areas will be shut off to the public.
[16:55:02]
Make sure you know how to pronounce the event venues properly. This place is called Les Invalides. It's a former military hospital. It's pronounced
ahn-vah-leed.
UNIDENTIFIED FEMALE: Les Invalides.
UNIDENTIFIED MALE: Les Invalides.
UNIDENTIFIED FEMALE: Les Invalides.
UNIDENTIFIED FEMALE: Les Invalides.
VANDOORNE: Not invalids.
And lastly, know how to refer to the Olympic Games like a local. J-O. Short for Jeux Olympiques.
A lot of young people live in the east. That's the cool hipster area, great for a glass of wine on a terrace or some nightlife.
The French capital skyline is a familiar site and the Eiffel Tower might be its most famous icon. Try one of its many rooftops instead. That way you're
only a stone's throw away from some of these other stunning landmarks.
(END VIDEOTAPE)
NEWTON: And cheers to you, Saskya. Appreciate that report.
Coming up, we'll have the final numbers from Wall Street right after this break.
(COMMERCIAL BREAK)
NEWTON: So yes, a rough day for U.S. markets. The Nasdaq had its worst day since 2022 after falling more than 650 points. The Dow and S&P also ended
in the red after major tech stocks took a tumble, and notable of course the Tesla and Alphabet down 12 percent and 8 percent respectively.
We'll take a look at some of those Dow components as well. Today's top finisher, Johnson and Johnson, it was up almost 3 percent. Visa down 4
percent. That was after missing third quarter revenue expectations. Intel is down 3 percent despite debuting new technologies as we were just talking
about at the Olympics.
A reminder to everyone, we do have U.S. GDP that is out tomorrow and that will give us some indication as to where the Fed is headed with interest
rates. So all eyes on Q2 GDP. We will bring it all to you. But in the meantime, that was QUEST MEANS BUSINESS. I'm Paula Newton. "THE LEAD WITH
JAKE TAPPER" starts now.
JAKE TAPPER, CNN ANCHOR: Welcome to THE LEAD. I'm Jake Tapper.
This hour after a month of covering Democrats in disastrous disarray, you can be forgiven for forgetting the degree to which House Republicans can
sometimes barely govern their way out of a paper bag. They just adjourned until after Labor Day with much unfinished business, and we'll explain what
went down.
Plus the TikTok in the 2024 race, we've seen it already with the Brat and the --
END
