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Quest Means Business

Hopes Of An Interest Rate Cut Fuel Market Rally; Olympic Opening Ceremony Underway In Paris; Netanyahu Hopes Harris Remarks Don't Delay Ceasefire; Interview With Rep. Mike Quigley (D-IL); Celine Dion Closes Out Olympic Opening Ceremony; Los Angeles Prepares To Host 2028 Summer Games; Trump To Return To PA Following Assassination Attempt. Aired 4-5p ET

Aired July 26, 2024 - 16:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[16:00:11]

RICHARD QUEST, CNN INTERNATIONAL HOST: Closing bell ringing on Wall Street. A very strong day. The Dow is up the best part of 600, more than 600

points. Let's have a gavel. Come along, sir. A good strong gavel to end the week. He's got a lot of bells, but no gavels. Story of my life.

One, two, three and there you are. That's the way the market looks, 654 points, a gain of one-and-a-half percent. Doesn't quite erase the losses of

the last few days, but the rotation that was taking place, the prospect of lower interest rates, we'll talk about it in a second or two.

The events of the day that you and I need to chew over. Lady Gaga, Celine Dion, a star-studded opening so many well and truly underway at the Paris

Olympics.

The Israeli prime minister is in Florida, he is meeting Donald Trump at Mar-a-Lago.

And rising prices reinvigorate -- I'm sorry I can't speak this morning -- an old favorite secondhand shopping.

I refresh my wardrobe with the chief executive of Goodwill.

You can see how our hour is going to be if we get to the other side of it.

We are live in New York, Friday, July the 26th, start of the Olympics. I'm Richard Quest and I mean business.

Now, the drama in Paris and the Olympic ceremony underway, only after I have updated you on the market, well, the Dow has just closed up more than

600 points, 654 points higher. And at the same time, the Fed's favorite measure of inflation, PCE, has slowed to two-and-a-half percent in line

with expectations. It is all boosted the hopes of a September rate cut.

Tech, which have been clobbered by the markets in recent days, rebounded as well.

Paula Newton, we are still down on tech if you like, over the medium term.

PAULA NEWTON, CNN INTERNATIONAL CORRESPONDENT: Yes.

QUEST: But sentiment seems to have changed today.

NEWTON: Yes, it was an incredibly redeeming day for the market and to be frank, it really took me by surprise. This was really strong especially as

you alluded to the redeeming week.

Of course, we started out with those inflation numbers that came in right at expectation 2.5 percent. That's the kind of number the Fed wants to see.

But also remember, Richard, we had GDP and GDP blew apart expectations, nearly double what was expected. The US economy growing 2.8 percent. And

what does that mean? That means that Jay Powell, the Fed chair, may actually pull off something so incredibly historic here and that is to get

that soft landing, that means he will have tamed inflation without inducing a recession.

I know you're going to tell me that the jury out of course, it is still is, but there are many indicators here that, okay, the theme for the day is let

the games begin. Yes, let the interest rate cutting begin. That is what --

QUEST: But this is a marathon, not a sprint if we are going -- and he has thrown the javelins, if you will --

NEWTON: You got it.

QUEST: -- at the balloon of inflation. Look, they seem to have done it. I mean, we are expecting a rate cut in September, a rotation from the high-

growing stocks to more ordinary stuff seems to be, but it all seems to be very orderly.

NEWTON: It is very orderly and I think it has taken many by surprise, even the sector rotation pulling back a little bit on tech and going into some

of those value names. Even small-cap even that seems to be relatively orderly. Perhaps, it is too good to be true, but hey, we're all going to

take it right now.

The one other number though that I want you to keep in mind, Richard is the unemployment rate --

QUEST: Right.

NEWTON: Okay, 4.1 percent. That is the highest it was since November 2021. I want to leave everyone with this thought, we have jobs next Friday. Chair

Powell, really looking at that and saying it is time to cut, I cannot let unemployment get ahead in this economy.

QUEST: Paula Newton, the way things are moving. I'm grateful to you. Thank you.

Now, let the games begin.

In around 30 minutes from now, the torch will be lit in the official start, if you will, to the Paris 2024 Olympics. With rain, but it really just

couldn't eclipse the stunning displays that we've seen on the games.

Thousands of athletes parading in boats down the River Seine, waving as they pass the city's iconic landmarks from the Eiffel Tower to the Louvre

and everything in-between, and a star-studded affair. Lady Gaga will help kick off the proceedings and Celine Dion is due to perform this hour to

close out the ceremonies.

Coy Wire is for us in Paris this evening.

Whatever the skeptics may have said, this thing down The Seine has worked even in the rain. It's just been beautiful. We've seen Paris, we feel like

we are there.

COY WIRE, CNN SPORTS ANCHOR: Yes, get your umbrella, Richard, and come on over here. What are you doing?

[16:05:07]

It is pouring down rain, but it is still incredible. Paris doing their best to put on Olympics opening ceremony for the ages

You have the bells of Notre Dame ringing for the first time since the Cathedral was gutted by fire. There were water cannons along the River

Seine, angel-winged accordion players, rocking berets on a bridge. There was a theatrical display, a bunch of beheaded Mary Antoinette's, they seem

over the top, but not for Paris.

You mentioned Lady Gaga. She was out there performing to kick things off in this black feather outfit, pink feathers and dancers all around her. A

French cabernet extravaganza like.

At one point, 80 artists from Moulin Rouge were performing there, the iconic dance that dates back to the 1820s. And then Richard, of course, the

85 boats carrying nearly 7,000 of the athletes who are competing in these games from more than 200 delegations and because of the rain, their

beautiful, bespoke opening ceremony uniforms were reduced to pretty much plastic ponchos for everyone, it did not matter.

They were singing and dancing in the rain. And of course, it is all about to be capped off, I am kind of watching here out of the side of my eye with

the lighting of that cauldron and of course, Celine Dion She has already been teased that she will be singing, performing from the Eiffel Tower.

Of course, she has been battling in that rare neurological condition. So it is going to be quite the ending from what has already been an

extraordinary, despite the conditions opening ceremony here at these Paris Olympics.

QUEST: I love Paris. It is one of my favorite cities and I am extremely envious. You're in a prime position there, aren't you? With our various

colleagues from your sports -- you have pole position.

WIRE: Yes. And I am going for the gold medal, the checkered flag, whatever they'll give me here. I'm going to bring it for you every day, Richard.

Look forward to more.

QUEST: All right, what's the one event you're looking forward to most?

WIRE: Well, always the crown jewels of the Olympics. You would see the hundred meter dash.

QUEST: Yes.

WIRE: The fastest man in the world right now is Noah Lyles and you have Sha'Carri Richardson on the women's side, but also the gymnastics

competition. Simone Biles on her comeback tour after the last Tokyo games, she had that mental hiccup with the twisties as they're called, and that

she is coming back, the greatest gymnast to ever lived.

And always swimming as well, those competitions get started this weekend. I cannot wait for that. And who else? You know, were going to have breaking

news this entire Olympics as in breakdancing for the first time ever in the Olympics.

So my goal, by the end of these Games is to get you popping and locking on TV to see what you've got.

QUEST: No, no, no. No. I will pay good money to charity to see you doing some moves.

WIRE: Okay.

QUEST: How about it? All right -- to perchance, monsieur. Thank you very much. Joining us, Coy Wire in Paris.

WIRE: Thank you.

QUEST: Now, the jubilation around the ceremony was almost overshadowed by a string of attacks on the French rail network. According to the French state

railway, CNF, high-speed lines were impacted and several of its facilities were damaged.

Fiber optic cables and pipes were set alight. Two trains carrying Olympic athletes were amongst those affected. Investigators are still trying to

work out who carried out the attacks.

The French Prime Minister Gabriel Attal says they were prepared and organized in a way that shows a knowledge of the networks.

Axel Persson is the leader of the CGT Railway Workers Union in Trappes, in France.

Sir, you joined me from Montpelier. This was -- and you also have said this was a well-planned, these vandals, these criminals, they knew where to go

and what to attack.

AXEL PERSSON, LEADER, CGT RAILWAY WORKERS UNION IN TRAPPES, FRANCE: Yes. Exactly, as you said, because they were -- they did it in a coordinated

manner and it is a simultaneous attack, which aimed at trying to paralyze the entire high-speed network of the country.

Four attacks have been identified and the fourth of them, one of them was actually thwarted by colleagues by railway workers who were present at the

scenes, that were doing maintenance work and spotted one of the teams who were actually trying to implement the last of the attacks, but they had to

flee the scene as they saw our colleagues present in the scene in which they hadn't planned for.

So, one of them were actually thwarted by colleagues, but yes, of course it was a well thought out methodical attack, but as things stand now, nobody

really knows who exactly these people are and why they did it.

QUEST: You know, we can call it terrorism with a small T in a sense, because -- but this was designed for disruption rather than for loss of

life in a sense and its very disappointing, isn't it? With so many people looking forward to traveling around France, which is looking at its

absolute best at the moment.

PERSSON: Yes, of course, that's that was the purpose, as far as we know, but that's -- I am saying as far as we know -- the attack wasn't aimed at

promoting the loss of life, but rather disrupting the network and shutting down the network.

[16:10:04]

But given the fact that one of the attacks was thwarted and that actually quite a lot of human resources have been mobilized for this period, the

network will be able to run again, starting from tomorrow, and actually, quite a lot of the trains that were delayed have been actually running from

this afternoon.

But of course, the disruptions are really important. These are major disruptions across the country.

QUEST: And your workers, your members -- your members -- I mean, they must have done extraordinary work to not only repair and then to test and then

to make sure that the system was working so that people can enjoy the Olympics properly.

PERSSON: Yes, yes. Of course, it has been quite a day for all those who have been working on the field today because it is a huge amount of work to

not only repair the cable, but to identify all of them that have been damaged and also to make sure before the trains are allowed to run again,

that can be done safely because the cables that were targeted, are cables that are used by signalers in order to control the switches and in order to

direct the traffic.

So it is of the utmost importance that before trains are allowed to run again, that everybody is sure they work because of course, a major failure

of these systems can lead to catastrophes, which is of course, not something that anybody could accept. So yes, they've been doing fantastic

work to re-establish the trains today.

QUEST: Well, first of all, congratulations. I mean, Paris is looking just extraordinary and the Olympic Games look like they are marvelous.

What's the event, which sports will you be watching most closely? Which sport will you be following best, Axel?

PERSSON: I don't know actually because I will actually be working quite a lot during these Olympics because the trains have to run to, in order to

transport all the people who have come here to watch the events.

QUEST: Good point.

PERSSON: But on a personal note, I might be particularly interested in bow -- archery. That's quite a peculiar interest.

QUEST: Oh, there we are. That was unusual.

Thank you, sir. I look forward to your arrows and things and safe climbing of the trains, and congratulations, sir. Thank you.

PERSSON: Thank you.

QUEST: QUEST MEANS BUSINESS tonight, live from New York. Still to come, Israeli Prime Minister Benjamin Netanyahu is continuing his trip, he is in

Florida, where he has been meeting Donald Trump at Mar-a-Lago.

QUEST MEANS BUSINESS.

(COMMERCIAL BREAK)

QUEST: The Israeli Prime Minister Benjamin Netanyahu has been meeting Donald Trump in Florida a short time ago.

[16:15:04]

Mr. Trump was asked about Vice President Kamala Harris' comments on Israel's conduct in Gaza.

(BEGIN VIDEO CLIP)

REPORTER: Could you tell us, Prime Minister, how Kamala Harris' remarks yesterday might have impacted negotiations on a ceasefire deal?

BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER: I always wanted to get one. I think to the extent that Hamas understands it, there is no daylight between

Israel and the United States, that's what I would hope and I would hope that comments don't change that.

(END VIDEO CLIP)

QUEST: Alex Marquardt is in Washington. This is -- I mean, he doesn't care, does he, in a sense, the prime minister, he had his eye -- as you told me

yesterday, he has his own constituents to worry about back in Israel. But even so wading into the US election like none other.

ALEX MARQUARDT, CNN SENIOR NATIONAL SECURITY CORRESPONDENT: Well, and also at this late stage in this trip, I mean, there had been all this

speculation when he was on his way here, to what extent he might take shots of the Biden administration for a perceived lack of support or kind of

criticism. And we didn't see that in the speech to Congress.

We didn't see that in the meetings with Biden or before that meeting with Harris. And then when we saw that speech from Vice President Harris

following her meeting, that seems to have changed things and triggered something inside Netanyahu.

His traveling party was not happy with her remarks. We heard from an anonymous Israeli official earlier today saying that what she said was

problematic. And then fast forward to what we just saw from Netanyahu there at Mar-a-Lago, echoing that, essentially saying that what she said, might

have given Hamas an indication that there was daylight between Israel and the US.

Richard, let's remind our viewers of what she said was essentially that the US commitment to Israeli security is ironclad, and that what we are seeing

in Gaza is horrible and catastrophic and she said the war needs to end. There needs to be a ceasefire now.

So these are not crazy concepts and yet this was something that they took issue with. Now, to what extent the US administration was able to move

Netanyahu closer to getting a ceasefire or agreeing to a ceasefire because the US does believe that the ball is in Israel's court, that remains to be

seen.

What we know now, Richard, is that in the coming days, perhaps as early as Sunday, there will be another round of high level negotiations about the

ceasefire. This is going to take place in Rome with the CIA Director Bill Burns and his counterparts.

QUEST: Right. Just remind -- what is the sticking point because as I vaguely get it, all parties have sort of signed on to the three-part deal,

but I'm not sure what's preventing it from getting to the next stage.

MARQUARDT: Well, they've signed on to what the US officials are calling the framework, so the broad strokes, that's the fine points that really need to

be agreed on.

Yesterday, we heard the White House saying that both sides need to compromise. But Harris, specifically yesterday spoke about the IDF presence

in Gaza. And Richard, that is one of the biggest sticking points from what we understand.

Harris said, in the first phase of this deal, the IDF needs to withdraw from population centers, so cities, and then in the second phase of the

deal, they need to withdraw completely from Gaza. And we know that that is something that Netanyahu does not necessarily agree with because the day

before in his speech to Congress, he says that that Israel needs to maintain security control over Gaza for the foreseeable future.

So Richard, that it really is the main question, and then there's also some quibbling and discussion about the ratio of how many Israeli hostages to

Palestinian prisoners and which prisoners could be released from Israeli prisons.

QUEST: Alex, I am grateful. You've got a busy weekend ahead and thank you for joining us this evening. Alex Marquardt in Washington.

Mike Quigley is with me. He is the US House Democrat from Illinois. He joins me from Chicago.

Congressman, I am grateful, sir.

I can see that Benjamin Netanyahu's visit, just as -- I mean, you could see why he's in the United States and seeing all the current leaders, potential

future leaders, possible leaders and all of that.

Are you satisfied with the way that visit is going?

REP. MIKE QUIGLEY (D-IL): Well, I had a problem with the first visit, you know, I attended his speech the first time.

As you know, very well Netanyahu opposed the Iran nuclear deal, put together by the Obama administration. And that deal worked until the Trump

administration killed it. And now, I think there's greater uncertainty and greater risk in the Middle East as a whole.

But Netanyahu should be far more focused at home where, what -- about 72 percent of Israelis want him to resign so this was --

When I came to Congress, the first thing I said was we can't have bipart -- we can't have partisanship about Israel.

As soon as there's a partisan issue about Israel; Israel and the US loses. It is an important relationship. They are a great ally but just because we

stand behind Israel doesn't mean we have to stand behind Netanyahu.

[16:20:22]

QUEST: Let's turn to your own party.

Well, I mean, short of a balloon and a feast, it's all over, isn't it? I mean, now the Obamas have given their blessing to Kamala Harris, and so

really when you have this virtual vote, it is going to go her way and you can now coalesce behind her.

But is this the earning of the support and earning the nomination that the vice president said she wanted? In a sense, I'm not trying to be difficult

here, but as you go to the next stage, this has been an anointing rather than an earning.

QUIGLEY: Look, I think there's some ways to earn. First this was the Biden- Harris administration and it was the Biden-Harris ticket on the ballot when people voted and the delegates who are going to vote for her as you say

remotely, virtually, they were all elected democratically. So I think she has earned it over a long period of time.

You have to juxtaposition this with the fact that well, we were told when people like me were early on asking the president to step aside, was it we

were inviting chaos and we would have an open convention and be Chicago 1968 all over again.

I think building this together very quickly is a healthy thing. The opposite is a real problem and we are just a few weeks from that

convention.

QUEST: Right.

QUIGLEY: And I think it can go how it was originally planned. And as you know, they are basically a political pep rally.

QUEST: Do you have a view on who she should pick for vice president? There are -- I mean, you can either do the best person, but you can define the

best person in many ways, whether it's Kentucky, whether it's Illinois, whether its finding a governor that brings sort of a stability or a

different section.

What would you -- besides the nebulous phrase, the best person. Who for you is the best person?

QUIGLEY: Look, if I don't say my own governor, I am in trouble, but I do respect JB Pritzker. I think he has done a great job for Illinois.

I think ultimately choices, we do have a deep bench. I am going to predict that it's going to be a governor because no one wants to hurt the Senate

right now when it's so close and it's going to be a governor from a very important state that's going to be a swing state.

So as you know, how much do vice presidents really mean in the final analysis? Not as much as we think about when we are inside sports like

this. But it is an interesting discussion.

QUEST: I am asking everybody on tonight's program. Will you be watching much of the Olympics, Congressman? I mean, you're a busy man. You've got

lots going on. Will you be watching much of it? And if you are, what's your favorite sport?

QUIGLEY: Look, you've got to love the Olympics, every four years. The Summer and Winter Olympics, at times you see sports, you just don't see

every four years and it's fun to be patriotic and just enjoy the true spirit of it.

So just great moments in Olympic history. I love women's gymnastics and track and field are for both. It is just extraordinary.

QUEST: They really are extraordinary people doing extraordinary things.

Congressman, have a lovely weekend and then try and get a bit of a rest somewhere between now Monday.

QUIGLEY: Thank you.

QUEST: I am grateful. Thank you, sir.

Now, you may think the Olympics is a big boost for the host nation's economy. Well, it costs a lot of money and if you look at it purely in

economic terms, arguably, it is not the boost that they would like to see.

The economist, Chloe Parkins will talk to me about it on her favorite sport.

QUEST MEANS BUSINESS.

(COMMERCIAL BREAK)

[16:27:48]

QUEST: Hello, I'm Richard Quest. Together, we have so much more Olympic QUEST MEANS BUSINESS while the Olympics is starting.

Los Angeles wanted to host this year's Olympics only to get beaten out by Paris. Los Angeles is in 2028.

The director of the Port of LA will join me tonight. If that's not a tangential link, show me one that is.

I spoke to the CEO of Goodwill and tried on its secondhand clothes. Can they dress me suitable to be in your presence? We will get to it and only

after the news because this is CNN and on this network, the news always comes first.

The Park Fire has scorched more than 120,000 acres of land in California, it is about 500,000 hectares with the fire only three percent contained.

The Chico area remains under a red flag warning. This California blaze is one of 89 active wildfires currently across the United States.

The alleged Mexican drug lord known as El Mayo has pleaded not guilty in a US federal court. He was arrested on Thursday alongside the son of the

convicted narco boss, Joaquin "El Chapo" Guzman.

There were said to have flown into the US after being lured by federal agents. El Mayo is accused of a long list of crimes, including murder and

both men are suspected of flooding the US with deadly fentanyl.

In a court hearing that has just taken place, Justin Timberlake's attorney said the star was not intoxicated during his DWI arrest Timberlake was

arrested in June when police initiated a traffic stop in Sag Harbor in New York. The singer was not present at today's hearing.

Our top story, in a matter of moments, the torch will be lit and the Olympic opening ceremony will draw to a close, and the Games will begin.

It's been a city of dazzling lights put on and smoke and excitement and verve and viva and it all came with an eyewatering price tag.

[16:30:03]

These games are going to cost around upwards of $10 billion. And that is considered cheap or at least inexpensive for notoriously overcharged games.

The Paris Games could be the first in recent memory to keep its budget under the 10 billion mark since in 2000. I spoke to the president of the

Paris Olympics back in March. He told me the vast majority of the bill will be covered by private money.

(BEGIN VIDEO CLIP)

TONY ESTANGUET, PRESIDENT, PARIS OLYMPICS 2024: In terms of budget, maintaining the budget at balanced and it's the case today and finance 96

persons by private firms.

(END VIDEO CLIP)

QUEST: Chloe Parkins is tourism economist at Oxford Economics. She joins me from Macclesfield in England. So private funds has paid for most of it.

They've reused all stadia as necessary. The government's put in X billion for major infrastructure. Is Paris going to do what none of them have and

actually run a fiscally prudent Olympics?

CHLOE PARKINS, SENIOR ECONOMIST, OXFORD ECONOMICS: I think they have the best chance out of the Olympics that have come before them purely as you

say, the costs are a lot lower than previous events. So, the Tokyo and Beijing. And I do think it's a positive thing that they're actually

utilizing existing infrastructure. I think I read the (INAUDIBLE) three buildings, three venues. So, hoping -- hopefully, keeping the costs a bit

low will help them get to balance line a bit easier.

QUEST: You see, I remember the days of Montreal, Barcelona, Athens where over costs and staggering bills particularly in Montreal's cases you all

well know left debt for decades. But those days seem to have gone.

PARKINS: It seems so. They -- these games this year, they are -- they've have got a lot of focus on sustainability and helping to keep costs down.

So, I think that's probably a motivation to help improve the benefits that they're going to get from the Olympics.

QUEST: If we take, for example, those Los Angeles of the next games, and Los Angeles back in the 80s, mid 80s. '84. They -- again, they were very

commercial those games. What do we know is the tourist influence or the tourism effect of having the Olympics?

PARKINS: You can think about the sort of impacts sort of in a both short and long run. So, we have the immediate impact of just tourists traveling

to these -- traveling to the host nation, spending money while they're there on hotels, transport, shopping, but you also have the longer-term

effects of the attractiveness of that destination. So, if they've been there for the Olympics, they may decide they like that destination might

encourage further travel.

And it could just -- they could become more of a favorable destination compared to other comparable ones.

QUEST: Chloe Parkins, grateful to have you with us tonight. Thank you on the Olympics. From the city of Paris, of course hosting the current ones to

Los Angeles which will host the next Summer Olympics. It was a deal if you remember, it was a twofer. You got to for the price of one with the Los

Angeles in four years' time. Now the city's port has had an extraordinary year. Thanks in part to the infrastructure bill and U.S. federal and state

funding where the Jobs Act and all of which has really boosted things tremendously.

The head of the port says who wins the next U.S. election will very much depend on the future of the port and the port's direction.

Gena Seroka is the executive director of the Port of Los Angeles is with me now. Sir, you are fearless in the sense of --you've happily merrily wade

into the highly controversial issue of tariffs. You've got Donald Trump wanting a 10 percent across the board (INAUDIBLE) even Kamala Harris is

suggesting that there will need to be tariffs on certain Asia Pacific countries, probably China. But that will damage your pork quite badly.

GENE SEROKA, EXECUTIVE DIRECTOR, PORT OF LOS ANGELES: Good afternoon, Richard. Great to see you. You're right. This is a pretty complex layered

issue. Protecting the interests of American companies and manufacturers is of the highest priority. And for the Port of Los Angeles, every four

containers we bring through our complex creates a job. Huge economic engine here in Southern California along with our neighbors in Long Beach.

Targeted tariffs like we recently saw the Biden administration implement on electric vehicles batteries in the like, $18 billion. And last year, as

Americans we imported only 2000 Chinese manufactured electric cars. Sends a message, but doesn't disrupt trade.

[16:35:01]

The other interesting fact is that as we closed year 2022, 57 percent of our ports business was with China. Today, it's down to 40. It's

manufacturing migrates to southeast and South Asia.

QUEST: Now, we also saw, of course, and you and I spoke at the time, the changes that were being made in the ports of Los Angeles to accommodate the

supply chain issues. Did they work those changes? And were they thought to be so -- I mean, a lot of them seemed quite sort of common sense in many

ways. Did they stick? And have they become part of the rigor of the daily life there?

SEROKA: Richard they did. And today, like every day, I look at our port's vital statistics, those velocity numbers are at or better than where they

were before COVID. So, this has now become systemic, making sure that number one, there's collaboration across supply chain stakeholder groups,

but also and most importantly, making sure that this port is a transit facility, not a warehouse for storage containers.

You may recall the last time we talked that I was implementing a fine for those long-aging containers at the port. Well, we did. But we never

invoiced or collected a dollar. Simply the threat of that fine, got people motivated, and that cargo started moving almost immediately.

QUEST: So why are we still seeing so many supply chain issues? I announced -- asking the question, I know it's not a one size fits all in that sense

because different industries have different pressures. But do you see any commonality of reason?

SEROKA: We are faced with supply chain issues every day. And I think your viewers, the public in general is a lot keener on these issues. Because of

what we all witnessed back during COVID. The surge in imports here in America, the disruptions to the global supply chain around many trade

lines. Today, what we're seeing is a little bit different look. There's a protracted negotiation of dockworkers here in the U.S. on the eastern Gulf

Coast.

The Panama Canal has had drought issues where ships cannot cross fully loaded. And of course, the security issues in the Red Sea impacting the

Suez Canal receipts down some 90 percent to date. So those disruptions, although look different, and I are in unique locations, all impacting the

supply chain, part of the reason why we're seeing so much cargo come through L.A. now.

QUEST: Right. But if we tend to look at -- say for example, today's economic numbers GDP 2.8 percent. So that's bang on target. Inflation down

2-1/2 percent on the Feds preferred rate. So that's looking good. If there is a cut in interest rates in September and who knows. I mean, that's up to

the Fed, but several more for the rest of the year. Does that see a major benefit? Do you see for your business, more imports, more exports?

SEROKA: Yes. I think that looming interest rate cut will be additive to the economic story here in America. As you mentioned, all of these numbers are

looking very good. Jobs creation, lowest unemployment in more than 50 years. 15 plus million new jobs in the United States over the last 3-1/2

years. And an American consumer that continues to buy.

QUEST: Will you still be in your job in 2028 for the Olympics?

SEROKA: I plan on -- yes. I plan on it and cannot wait for the Olympics. Before that we've got an NBA All Star Game, a Super Bowl, the World Cup,

the Olympiad and the Paralympic Games all over the next four years. It's going to be an exciting time in Los Angeles.

QUEST: Oh, good to talk to you, sir. It's always a privilege to have you on QUEST MEANS BUSINESS. I'm grateful you find the time to talk to us. Thank

you.

Boeing is forecasting that African Airlines could see a quadrupling in the passenger traffic across Africa in the next 20 years, resulting in many

tens of thousands of jobs.

Morocco's Royal Air Maroc is one of those eyeing expansion across the continent is putting an order for 200 new aircraft. Eleni Giokos sat down

recently with the chief executive. It's in this edition of Connecting Africa.

(BEGIN VIDEOTAPE)

ABDELHAMID ADDOU, CHIEF EXECUTIVE OFFICER, ROYAL AIR MAROC: Well, we are a nearly 70 years old airline. We've started in 1956. And actually, since the

beginning we have this DNA that is an African DNA. We've opened the first truth that was the car in 1958. Since 200 we have launched new roots to

connect the whole continent in order to build real south south economy and links and exchanges between Morocco and the other countries of the

continent.

[16:40:04]

And today, we cover nearly the three quarters of the continent. Mainly north Africa, South -- Central Africa, West Africa. We don't cover yet East

Africa. But it's coming.

ELENI GIOKOS, CNN CORRESPONDENT: What are the plans then?

UNIDENTIFIED MALE: The plans is to expand our fleet from 50 planes to 200 in the next 10 years. So, a rhythm of 12 to 15 new planes per year. And to

expand the coverage of the continent to reach all the destination in the continent starting by Nairobi, N'Djamena in Chad next year. Nairobi the

year after. Abuja this year. If we had the flown to Lagos since 20 years now. And then all the rest of the continent. So, it's going to be a huge

program for us.

GIOKOS: What kind of passenger numbers are we looking at? How many routes? We have flown 7.5 million travelers, making $2 billion revenues. Our target

is to reach 38 million passengers by 2035 in 10 years. So yes, we have a very strong ambition.

GIOKOS: So, what kind of opportunities does the African Continental Free Trade Area offer Royal Air Maroc?

ADDOU: To open up the whole continent.

(CROSSTALK)

GIOKOS: -- like easy visas.

ADDOU: Easy visas and to fly from a destination to another one without coming via Casa Blanca. Today, we cannot fly from -- I don't know Lagos to

Addis directly. We have to come --

GIOKOS: It's the policy, that's the issue.

ADDOU: It has part -- it is a policy issue and it has to -- and it will change. Look in Europe, it took maybe 60 or 70 years to reach open skies.

The Africa would be less time of course, but we need to speed up the process.

(END VIDEOTAPE)

QUEST: That is connecting Africa. And so, to the latest tradition, when it comes to clothing. As prices rise, secondhand shopping is becoming ever

more a popular option. So what happens when you throw off the original and you go from the secondhand in a moment.

(COMMERCIAL BREAK)

QUEST: It's always nice to have a new set of clothes, especially when the price is right. Because as costs rise and people are shopping to save for

bargains, well, secondhand used, whatever you want to call them even gently used is very much on the trend.

[16:45:06]

Hence, of course, this beautiful shirt, which I've just picked up for a bargain. And those are the Kenai as you can see, it's something a little

more colorful for a Friday. Now I got this shirt, I got this shirt from Goodwill where, of course, my local Goodwill in Manhattan. And it was a

cheap price at that. I also met goodwill CEO during the shopping trip. Steve Preston told me how the whole goodwill system works.

(BEGIN VIDEO CLIP)

STEVE PRESTON, CHIEF EXECUTIVE OFFICER, GOODWILL: There's not one big goodwill entity there 154 local organizations across North America that are

operated in those local markets, lead in those local markets. That's very important for us because what, you know, one of the unique aspects of

Goodwill is we're nonprofit. And so those donations stay in those local markets.

QUEST: OK. So, the thrift such secondhand market is absolutely booming. Let's take in New York because plenty of them, whether it's here, how's it

works (INAUDIBLE) you're all over the place.

PRESTON: All over the place.

QUEST: Are you in competition with each other? I mean, you are to an extent --

(CROSSTALK)

PRESTON: Of course, we are.

QUEST: -- donations.

PRESTON: Yes. We're in competition for the donations for sure. And as I said before, we're a nonprofit player in the for-profit world has

understood how large this market is, they're investing heavily in it to build out online and any number of other capabilities.

QUEST: Do you get pissed off with the full profits that are muscling into your area? Basically, they've discovered a gravy train. And in doing so

every bit that they take is less for you for the good work that you do. I mean, it's a zero-sum game.

PRESTON: Yes, I wouldn't use the word pissed off for me. But -- so, the way I would describe it as this. In many cases, the market is expanding. So,

it's not a zero-sum game, number one. Number two, it is really important for people to understand, if they donate to Goodwill, it is going to help a

human being in their local market. And for many of our customers, and I would say for most of them, that's a big differentiator because it's a

really easy way for them to support people in need.

The other thing it does, though, is we're a great competitor. We've got terrific stores. We're investing in technology. We're trying to be in

succeeding and actually being a really effective competitor, even as a nonprofit in the for-profit space.

QUEST: Is it growing?

PRESTON: It's growing. We grew 6-1/2 percent last year. Over the last five years, we've grown 40 percent. And we are looking very hard to expand in a

number of markets. And in doing so because there are needs in those local markets that we want to be a part of serving.

QUEST: And it's your -- it's your lunch to eat at one level, and you have all these other

charitable or not for profit organizations doing it. And now you've got the for profit.

PRESTON: Yes.

QUEST: And you're not pissed off. But you do have to stay ahead of the game.

PRESTON: We have to stay ahead of the game. And the other thing I think that's happened over the last number of years is because the market has

expanded two things have happened. Number one, consumers are much more willing to buy resold merchandise. They see the value in it. They love the,

you know, value they get in shopping but they also like sort of the uniqueness of finding something special.

The other thing is expanding to markets. We -- we've gone from almost no brands with resale programs. These are the brand companies themselves to

over 160 branding organizations -- brand organizations that have announced resale programs. Retailers are getting into the space. We believe that

gives us opportunities to partner with those big organizations.

QUEST: Now this is what this is a stock that they are not selling in their own or it's either last year stock or whatever that they issue is a

distribution channel.

PRESYTON: That could be. That's number one or people who bought that merchandise and no longer want it. They may want to donate it or do

something else to it are now reselling it back to the original producer and getting a credit maybe to buy new goods.

QUEST: How important is the tax benefit that one gets on the donation of used clothing and things like that or used goods?

PRESTON: I think it's very important and I think sometimes people forget about the value of that. But if you're in a 35 percent bracket and you

donate a jacket that's worth $50.00. You know, when you do that several times throughout the year, it adds up and you can deduct it on your taxes

at the end of the year.

(END VIDEO CLIP)

QUEST: Some news to bring you on CNN. The former President Donald Trump says he will return to Pennsylvania following the attempt on his life

there. He wrote on his social media. I will be going back to Butler, Pennsylvania, for a big and beautiful rally. Honoring the soul of our

beloved firefighting hero, Corey, and those brave patriots injured two weeks ago.

[16:50:10]

Just before then you were listening CEO of Goodwill Steve Preston, of course, who helped choose it now. What else did I buy? As he helps me

refresh my closet.

(BEGIN VIDEO CLIP)

PRESTON: We worked with your team to understand sizes that might fit. So we've curated some of these from the store.

QUEST: Oh. Now we're talking.

(COMMERCIAL BREAK)

QUEST: Another break, another costume change. One of the many selections that I got and paid for before anybody asks secondhand at Goodwill because

that is where the shopping experts put together a selection along with the chief executive.

(BEGIN VIDEO CLIP)

PRESTON: We worked with your team to understand sizes that might fit. So we've curated some of these from the store.

QUEST: Whoa. Now we're talking.

PRESTON: Those are some action-packed alternatives. Yes. Really fun. Really fun.

QUEST: Let's do -- what's the (INAUDIBLE) first, business or pleasure?

PRESTON: Why don't we start with pleasure.

QUEST: (INAUDIBLE) excuse me when I change it to something more comfortable.

PRESTON: Number one, we have a shirt. There you go. And a pair of matching shorts that we thought would look nice on the beach.

QUEST: (INAUDIBLE) oh.

PRESTON: Our panel is waiting with great anticipation over here. Sort of feel like we need a drumroll. Those are -- you got double thumbs up across

the board. That looks very nice. You are going to be the head of the party on this one. Let's move into business clothing.

QUEST: I really love this one.

PRESTON: Here's the shirt.

QUEST: Oh, I'm liking this. Oh. Is the jury ready? This jury is clearly bias. What do you think?

New. Oh. Do you like it?

UNIDENTIFIED FEMALE: I don't like (INAUDIBLE) I don't like the (INAUDIBLE)

QUEST: OK. A moment of truth.

PRESTON: All right. Four shirts, two dress shirts and two casual. Two jackets.

QUEST: Yes.

PRESTON: A pair of slacks, two shorts and two pairs of shoes.

QUEST: The pricing of it is interestingly nice.

PRESTON: So typically, what happens is when the goods come in somebody in our team looks at them, they evaluate them for quality to make sure they

make it to the floor and then they'll actually determine what price is appropriate for it.

[16:55:10]

UNIDENTIFIED FEMALE: So, $105.89.

QUEST: A hundred and five dollars.

PRESTON: All righty.

QUEST: Thank you, sir. See you next year.

PRESTON: Thank you.

(END VIDEO CLIP)

QUEST: Three or four outfits are 105 bucks. It was a bargain. We'll take our profitable moment after the break.

(COMMERCIAL BREAK)

QUEST: Tonight, tonight's a profitable moment. 150 odd bucks with a donation and several outfits. And you've seen a good number of them today.

Although I seem to be a mix of blending rather nicely with my background. I've been donating to Goodwill and Housing Works in the like. I'm taking

the tax incentive benefit for many years. It was right it makes sense. It's a very useful tax benefit to donate clothes and get a tax benefit,

particularly if you're an upper-level taxpayer.

But I've never really thought about buying from Goodwill or the like. And so that was why this was such an interesting occasion to buy from them and

to actually have the different goods to have the selections to see the choices. And then realize all you've got to do is send it off to the dry

cleaners. And once you've done that all's fair and dandy. So that's what I did. 150 odd dollars and four or five different outfits including some

shoes, which I have not seen here.

It simply makes sense. In this consumer economy, this mad dash, everything has to be new. Everything has to be the latest, the best. The top is that

like whatever. It is really refreshing that you can go browse, select, have a completely new wardrobe that so cheap that frankly, even if I only wear

this twice, I'll feel I got value. And I've still got this one. And I've still got that and a variety of other things that I bought.

All of which is I suppose an entreaty to me, you, all of us. Get that closet open, have a good rummage around, find the things that you just

don't need or that you haven't worn. Here's the test. If you have not worn it in the last 12 months it should be thrown away. No, it should be given

away. Only by giving to Goodwill or your local charity. Can we all help to make our (INAUDIBLE) mutters into something brand new.

[17:00:05]

And that's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, I hope it is very profitable. See

you on Monday.

END