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Quest Means Business

Fears Of Wider Middle East War After High-Profile Killings; Tense Q&A With Trump At Convention For Black Journalists; Federal Reserve Holds Interest Rates Steady, Signals Future Cut; Hamas Leader's Death Cast New Doubts On Ceasefire Talks; Team USA Rugby Player On Winning Bronze Medal In Paris Olympics; Meta Beats Revenue Expectations On Strong Ad Sales. Aired 4-5p ET

Aired July 31, 2024 - 16:00   ET

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

[16:00:18]

RICHARD QUEST, CNN INTERNATIONAL HOST: Closing bells are ringing on Wall Street. The market has been all over the place there as you will see in

just a second.

Let's bring the market to a close. Synchrony, up well, and a gavel number one, oh, tepid, weak, oh no, no, no. That's not the sort of gavel you want

in a day like today.

See how we roared up on Fed Day, then fell back down again back up -- well, we will get to it in just a moment.

The markets on Fed Day, the events that you and I are going to chew over in the next 60 minutes.

Israel's Prime Minister Benjamin Netanyahu says his country is ready for any scenario as fears of a wider war grow.

Donald Trump makes false claims about Kamala Harris' racial identity at an event for Black journalists.

(BEGIN VIDEO CLIP)

DONALD TRUMP, FORMER PRESIDENT OF THE UNITED STATES: I didn't know she was Black until a number of years ago when she happened to turn Black, and now

she wants to be known as Black, so I don't know, is she Indian or is she Black?

(END VIDEO CLIP)

QUEST: And the Fed signals a September rate cut. It is on the table. The markets don't know quite what to make of it.

Live from New York, the last day of July, I am Richard Quest in July and into August, you better believe it, I mean business.

Good evening.

Israel's prime minister says Israel has delivered crushing blows to its enemies over the last few days. Hamas says that Ismail Haniyeh died when a

rocket hit the room in which he was staying. He was in Iran for the inauguration of the country's new president.

Iranian officials have vowed but to respond to the attack; Israel has not confirm nor denied its role in the killing. And then just yesterday, an

Israeli airstrike -- we talked about it -- a strike it launched in Lebanon, which killed a top Hezbollah commander.

Benjamin Netanyahu says that his country is ready for any response from either party.

(BEGIN VIDEO CLIP)

BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER (through translator): These are challenging days. From Beirut, there are threats, we are ready for any

scenario.

We are prepared.

(END VIDEO CLIP)

QUEST: Nic Robertson is with me. Nic is in Washington at the moment.

Nic, a really simple question, why would Israel assassinate this guy? Yes, he is one of the leaders or the top leader of Hamas, but he was also the

negotiator. And why do it in Tehran? Why?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: And that is a question that only really the Israelis can answer. But in the region, the assessment

would be simply this, that Israel and Prime Minister Netanyahu are not really interested in negotiating a ceasefire and an exchange of hostages,

that isn't their priority. Their priority is decimating Hamas' leadership, which is something that they said they would do.

Why do it in Tehran? Because it sends a very strong signal to Iran who they say, and Prime Minister Netanyahu made that very clear when he was speaking

here in Congress just over a week ago that Iran was behind it, behind all the proxies, the Houthis, Hamas, Hezbollah, et cetera.

So this sends a very clear signal to Iran the day that its new president was inaugurated. Actually, Ismail Haniyeh was there visiting him, so the

way its read in the region is that this is a very strong statement of capability.

QUEST: But to what purpose? Nic, to what purpose?

I mean, yes, all right, you may not want the ceasefire and you may be against having it immediately. But you are well aware, if you are the

Israelis authorizing this, it is going to inflame, enrage and will have a response.

ROBERTSON: Israel under the prime ministership for Benjamin Netanyahu has vowed to destroy Hamas and to take revenge and take action against his

enemies as it sees fit, and this is what he is doing.

Look fundamentally, Israel believes that its enemies are potentially strong. The only way to keep them back is to show them a greater strength.

One of the reads in the region is that because Netanyahu was here in DC and he had such a strong, you know speech in Congress and it went down so well

with some, not everyone, that he arrived back in the region with the imprimatur of the United States. So therefore, they see these

assassinations are being sanctioned by the United States, which they're not.

But what does this really fundamentally do? It pushes off any chance of a ceasefire negotiation before the US presidential election and I don't think

it is a secret to anyone in the region that Prime Minister Netanyahu would rather have a Republican in the leadership in the White House in the United

States than he would have Democrat, and he appears to be playing for time.

[16:05:15]

QUEST: Nic Robertson, I am grateful, sir, in Washington. Thank you.

Ali Vaez is the director of the Iran Project at the International Crisis Group with me now.

Same question to you, why would Israel go and inflame matters at such a delicate time well?

ALI VAEZ, DIRECTOR OF THE IRAN PROJECT, INTERNATIONAL CRISIS GROUP: Well, multiple reasons, Richard.

One is that Israel believes that Iran is behind all the attacks that Israel has suffered from October 7th onwards. Whether it is Hamas that has been

armed and financed by Iran or Hezbollah, or the Houthis and so on, and it believes that there is no point in fighting the Iranian tentacles in the

region, it should fight the head, the head of the octopus and go after Iran directly.

Second, Prime Minister Netanyahu, we know for a long time has wanted to put Iran and the US on a collision course that has been a long-term project for

him.

And third, he is not interested in an end to this conflict because that probably means an end to his political career as well.

QUEST: Right, so if -- I mean, if you're sitting in Tehran and deciding how to respond, do you give Netanyahu what he wants, which is a bloody nose and

a longer war and an elongation or do you take a more sophisticated view, which is no, we're not going to give him what he wants. We are going to

paint him into a corner?

VAEZ: It is a dilemma, Richard, because if they don't respond, they fear that Netanyahu would push the envelope further. But if they do respond,

they risk falling into his trap.

In this particular case, because the Supreme Leader has already boxed themselves in a rhetorical corner by saying that there will be a

retaliation, and because the Iranians were highly embarrassed by the fact that a high level senior foreign official was killed on their own territory

in the middle of their own capital, I think a retaliation is coming.

QUEST: Right, but if we think back to the last time, so Iran sent a whole load of missiles, not most of which failed to reach anything like their

desired target. Now, you and I can discuss whether or not that was intentional or not.

But this time, to avenge what Israel has done, they have to up the ante.

VAEZ: Absolutely. And because they see this particular attack as part of a string of high level assassinations, whether it was a senior Hezbollah

leader in Beirut yesterday or a US strike on Shia militias in Iraq yesterday as well, they believe that this is a joint coordinated US-Israeli

action against the axis of resistance, which is Iran's network of influence in the region, I am afraid Iranian response is likely to be a access-wide

attack against US and Israel.

So we would see missiles flying not just from Iran, but also from Lebanon, Yemen, from Syria, from Iraq, into US bases and Israel, and obviously that

is a very dangerous gambit.

QUEST: Does Iran or does Iran and Hezbollah as well, do they have the capacity, the military capacity to do serious damage?

Now, I don't mean a lucky missile that gets through God forbid to Tel Aviv or to Jerusalem or something like that, but do they have the overall

military capability to take on Israel and do serious damage?

VAEZ: They do. If you compare what I suggest is a likely Iranian response to the attack in April, which was, as you said, highly coordinated,

calibrated, and telegraphed well in advance -- if you have a multifront attack against Israel, it is going to be much more difficult to contain it

and the risk of casualties and fatalities will increase and with it, the risk of this cycle of tit-for-tat and cycle of violence spiraling out of

control.

So it is a very dangerous moment for the region.

QUEST: Ali, I am grateful that you're with us in such frank, honest, straightforward to-the-point answers. Just what we need.

All right, hold on to your hats because it didn't take long for Donald Trump to clash and quite vociferously with moderators at a conference he

was attending and the conference was for Black journalists that it was being held in Chicago.

(BEGIN VIDEO CLIP)

REPORTER: You have pushed false claims about some of your rivals from Nikki Haley to former President Barack Obama, saying that they were not born in

the United States, which is not true.

You have told for congresswomen of color who are American citizens to go back to where they came from. You have used words like "animal" and "rabid"

to describe Black district attorney attorneys.

[16:10:10]

You've attacked Black journalists calling them a loser, saying the questions that they asked are "stupid and racist."

Youve had dinner with White supremacist at your Mar-a-Lago resort.

So my question, sir, now that you are asking Black supporters to vote for you, why should Black voters trust you after you have used language like

that?

DONALD TRUMP, FORMER PRESIDENT OF THE UNITED STATES: Well, first of all, I don't think I've ever been asked a question, so -- in such a horrible

manner, first question.

You don't even say "Hello, how are you?" Are you with ABC? Because I think they're a fake news network, a terrible network.

(END VIDEO CLIP)

QUEST: So, it didn't get any better.

The former president took questions about half an hour, anything from JD Vance to inflation was on the agenda. At one point he claimed he didn't

know his opponent, Kamala Harris, was Black until a few years ago. Listen.

(BEGIN VIDEO CLIP)

REPORTER: You believe that Vice President Kamala Harris is only on the ticket because she is a Black woman.

TRUMP: Well, I can say, no, I think it is maybe a little bit different, so I've known her a long time indirectly, not directly, very much and she was

always of Indian heritage and she was only promoting Indian heritage. I didn't know she was Black until a number of years ago when she happened in

turn Black and now she wants to be known as Black.

So I don't know, is she Indian or she Black?

REPORTER: She has always has always identified as a Black woman. She went to a Historically Black College.

TRUMP: But you know what? I respect either one. I respect either one, but she obviously doesn't because she was Indian all the way and then all of a

sudden she made a turn and she went -- she became a Black person.

REPORTER: Just to be clear, sir. Do you believe that --

TRUMP: And I think -- I think somebody should look into that too. When you ask -- continue in a very hostile, nasty tone.

(END VIDEO CLIP)

QUEST: Well, Kristen Holmes is with me.

Kristen, the question of the day to all my guest is why? Why would Donald Trump go in front of an audience like that and be so incendiary, bordering

on offensive?

KRISTEN HOLMES, CNN NATIONAL CORRESPONDENT: Richard, I think there's a lot of questions as to why Donald Trump accepted to do this event and the first

time, clearly his team is very aware of the controversy around it.

In fact, as we've reported, the co-chairwoman of the NABJ Conference stepped down from her role after they had extended this invitation to

Donald Trump and Donald Trump had accepted, though it was very clear to everyone there at the conference and to Donald Trump and his team that this

is going to be a controversial kind of panel.

Now of course, the big question is why he decided to do it in the first place, and one of the things I was told by the campaign was because he

wanted to reach out to minority voters.

There has then a big push from Donald Trump to try and reach Black voters, particularly Black men voters, as well as Latino men voters, and this was

part of it, but the other thing to keep in mind here, Richard, is that Donald Trump has really been out of the spotlight for about a week-and-a-

half and there is some mentality around Trump that no publicity is bad publicity.

And I can tell you that Kamala Harris' now rival has been seizing the media narrative. Now, there is going to be a term because there is a lot of

fixation on what he said. He made some White out-there comments talking about her ethnicity, questioning her ethnicity, attacking an ABC reporter

who was asking legitimate questions.

So what this actually looks like moving forward, of course, we will wait to see, but I spoke to one senior adviser before this event who told me this

of anything Donald Trump has done in the last several months has the most potential to go sideways, and I think it was very clear from what happened,

objectively that it went sideways and pretty quickly.

QUEST: I think that -- I mean that last point you made, it was astonishing the speed with which Mr. Trump was -- he relished the opportunity to get

down in the mud.

HOLMES: Well, Donald Trump often likes to get down in the mud, he is not above that in any way. So I don't think that's a surprise.

He is often on the attack, even some of his campaign staff that I spoke to during this event said that they thought he was doing a good job in a

hostile environment.

Now, of course, Richard, we're talking to campaign staff. What are they going to say? They're going to say that they believe he is doing a good job

no matter what the circumstances are. So just to be clear.

Now of course, we are going to try to get a read on those around Donald Trump as time goes on, this just happened moments ago and he is going to be

here in Harrisburg where we are, Pennsylvania, later tonight doing a rally. We are obviously going to be paying attention to see what he says during

this.

[16:15:05]

But moving forward, as we have talked about, as this effort of Donald Trump and his campaign has taken place and trying to reach out to minority

voters, how this impacts that effort remains to be seen.

QUEST: Right.

HOLMES: And there is one other thing I want to bring up. You talked about this DEI question, right, where Donald Trump goes on to, instead of

answering it, the question was, do you believe what other Republicans said that Kamala Harris was a DEI hire, instead of directly answering that

question, he questioned her ethnicity.

And I will tell you that there were many on Donald Trump's campaign and allies of his, who actually were angry about Republicans bringing that up

immediately, saying those comments about a DEI hire because they thought that they wanted to keep that out of the narrative around Kamala Harris.

They were hoping to tie it just to Biden's administration policies.

Donald Trump dove right in. Again, he had an opportunity they to say, no, I don't think that, and instead, not only did he not say that, he went on to

say that she turned Black.

She is the first Black vice president of the United States of America, who is running for president. He is speaking to a Black conference of Black

journalists and he went on to question whether or not she was actually Black.

I mean, where this goes from here? Obviously, we will wait and see.

QUEST: I think that last -- I think you put it very elegantly and eloquently in that last bit, to sum it up. Grateful.

You'll be there when the president speak or the former president peaks, which would be in about an hour-and-a-half or so if he is on time. Thank

you.

No, no cigar today as they say, but the Federal Reserve did signal that a rate cut could be coming in September and the chair says inflation has

eased, notably and the job gains have moderated.

So the dual mandate, is it time to give more credence and precedent to the job side of that balance. Mohamed El-Erian will be with me after the break.

QUEST MEANS BUSINESS.

(COMMERCIAL BREAK)

QUEST: The Federal Reserve is hinting that it is ready to lower interest rates, but just not yet. The Fed held the benchmark rate steady for the

eighth month in a row, and the chair says -- Jerome Powell, the Central Bank is paying close attention now to its dual mandate, stable prices and

low unemployment.

Now, he points out that the pace of job growth has moderated and they are now starting to look at the rate of unemployment, both will be up for

discussion in September.

[16:20:10]

(BEGIN VIDEO CLIP)

JEROME POWELL, US FEDERAL RESERVE CHAIRMAN: The question will be whether the totality of the data, the evolving outlook and the balance of risks are

consistent with rising confidence on inflation and maintaining a solid labor market. If that test is met, a reduction in our policy rate could be

on the table as soon as the next meeting in September.

We are balancing the risk of going to soon against the risk of going too late, that's what we are doing.

There is no guarantee in this. It is a very difficult judgment call, but this is how we are making it.

(END VIDEO CLIP)

QUEST: Mohamed El-Erian, president of Queens College at Cambridge.

So the question is, is the time right in September? A yes or a no will do, sir?

MOHAMED EL-ERIAN, ECONOMIST AND ADVISOR, ALLIANZ: Yes, absolutely. He should have done it today.

QUEST: Well, yes, but the coulda-shoulda-woulda, but I mean, it would be very difficult now, wouldn't it? Very difficult for them not to cut -- in

the absence of some truly dreadful data that comes out. They have set their store out.

EL-ERIAN: Yes, normally it will be very difficult to cut for three reasons. One is the inflation picture has improved; two, is the economy is

weakening; and three, is that he did not push back against September. He leaned into it.

So you would need to get really horrific numbers for him not to cut in September.

QUEST: So, let's say they cut in September. Do we have a bit of a cautionary tale from Europe where the ECB has cut, inflation has ticked up

and we've seen a similar sort of thing from the Bank of Canada where again, cuts have been led by upticks in inflation and there is an argument that

would say the same would be -- in an economy that is actually very active like the US, the same could happen here.

EL-ERIAN: It could and today, we got a number out of Europe that showed inflation went up from 2.5 to 2.6 percent. It could, but you know, Richard,

it is a balance of risk right now, and I think the bigger risk and more and more people are agreeing on this is that the economy will weaken

unnecessarily if they do not cut.

So, yes, there is a risk an inflation could go up, but the bigger risk is that if they're not careful, the US economic exceptionalism that has

benefited so many goes out the window because they're too tight for too long.

QUEST: There is a risk, I mean, there is always a risk here. There is a risk that I will trip over my shoelaces going out of this studio and give

myself a nasty injury.

But in terms of the risk, there is a risk that they cut in September and he probably wants it once or twice more before the end of the year, but it is

not enough to offset that slowdown to which you refer, but it is enough so just sort of boost it or at least prevent inflation coming further down.

EL-ERIAN: Yes, and I would put that risk at about 35 percent, so yes, the risk is there. Look, what you want to avoid is what you're hearing from the

companies, whether its PepsiCo, whether its Starbucks, whether its McDonald's, they're all giving you the same message that the consumer is

weakening, the low-income households in particular are under significant pressure. Credit card balances are high, pandemic savings have been run

down.

And if you weaken the labor market, that's the only thing keeping the economy going right now for that segment of the party so that's what you

want to avoid.

QUEST: The markets, we are seeing, I mean, all right, so NVIDIA, et cetera, et cetera has done extremely well, and there is a bit of ferocity in terms

of the way it is coming down.

Do you see this rotation continuing? Because at the end of the day, I mean, the future is AI, the future as these productivity gains. Is this just a

temporary blip?

EL-ERIAN: No, so I think there are three drivers of this market. One is that AI is real and it is, like you say a significant contributor to future

productivity. I think that is a real phenomenon; two is that the US exceptionalism will continue. That's why you've seen the rotation. That's

why you've seen the Russell do so well, best month of the year at a time when the NASDAQ was having the worst month of the year, so that's been

quite a rotation. And then the third element is confidence that the Fed will loosen policy.

So as long as those three things are in play, then you can get both the AI story continuing and also the rotation story.

But the US economic exceptionalism, avoiding a recession is really important to that story.

QUEST: To take that answer and sort of put it into a strategy, there is no need, if all of those three criteria are met, there is no need for panic or

concern about if you will, the strength of this market.

[16:25:10]

Yes, we may have a 10 percent correction, whatever. We may have a bit of turbulence, but the core is solid.

EL-ERIAN: Correct and that is why avoiding a new policy mistake is so important, because the core of the economy is one, it can solid, the core

of the market is solid, and what would undermine both in a serious manner is the Fed remaining too tight for too long.

QUEST: Not in a party political sense, but as you look at both Kamala Harris' agenda and you look at Donald Trump's agenda. I will give you a

nice anonymous anodyne question, all right.

You can take it any way you like, upside down or avoid and plead the fifth. What are your concerns?

EL-ERIAN: So I think the biggest difference between the two, Richard, is what they are talking about on tariffs. Tariffs on trade: President Trump

has a much more aggressive stance than Vice President Harris on that. So that I think is where the major differences.

Against that, there is a view that Trump would be better for deregulation. So the market isn't betting on either side, it is really interesting

because they are saying, at the end of the day, there are pros, there are cons.

So the market is simply waiting to see how this election is going to go.

QUEST: Finally, I read Chair Powell's comments: We see no politics, we hear no politics. We are just data dependent.

Come on, they sit around the table. Even if they don't overtly say it, they've got in the back of their mind that there is an election within two

months and its bitter, bitter election.

How do they avoid not doing it?

EL-ERIAN: So if you listened carefully to what he said, he said all that you said, it is that, of course we do scenario analysis. The scenario

analysis of the what ifs -- what if President Trump wins? What if Vice President Harris wins?

So, they may not be putting it in their baseline, they may not be forming policy on that basis, but they are running scenario analyses. I am trying

to figure out which way the economy would go depending on who would win, but they're not betting on a particular outcome.

QUEST: And just before I love you and leave you, September done deal? You think rates is going -- going down? Just to be clear.

EL-ERIAN: Yes. Yes. And if and if they don't, then we will be talking about a policy mistake and we don't need one right now.

QUEST: Good to see you, sir. I am very grateful, as always, for giving us the time. Thank you, Mohamed. It is good to see you.

EL-ERIAN: Thank you.

QUEST: As we continue tonight on QUEST MEANS BUSINESS, renewed doubts about the future of the ceasefire talks between Israel and Hamas.

The killing of a top Hamas leader, a negotiator indeed, well that has really soured all possibilities. We will talk about it in a moment.

(COMMERCIAL BREAK)

[16:31:40]

QUEST: Hello, I'm Richard Quest. Together, we have a lot more QUEST MEANS BUSINESS.

Meta has released earnings. I'll tell you whether it lived up to what the market had expected. And you can call it the toughest job in corporate

America. Boeing has announced its new CEO. We'll only get to those stories in a moment because this is CNN, and on this network the news always comes

first.

Ukraine says Russia has launched one of the largest drone attacks since the war began. The Ukrainian military says 99 drones were shot down in the Kyiv

region over a seven-hour period. Russian strikes on eastern and southern Ukraine have killed at least two people.

The former BBC presenter Huw Edwards has pleaded guilty to having dozens of indecent images of children. The images were reportedly sent to him via the

messaging app WhatsApp. Huw Edwards stepped down from the career in the BBC in April after a 40-year career. He's due to be sentenced in September.

The Washington, D.C. attorney general has filed a lawsuit against StubHub alleging that the company tricks customers by trying to hide the true price

of tickets. Prosecutors say StubHub has generated $118 million in hidden fee revenue in the district since 2015.

So the top story, the death of the top Hamas leader, which of course is creating tremendous obstacles now for ceasefire negotiations. Ismail

Haniyeh was a key player in the talks. He was a negotiator. The Qatari prime minister wrote on X that the events lead him to ask, how can

mediation succeed when one party assassinates the negotiator on the other side? Meanwhile, the White House, perhaps more optimistically, John Kirby,

says there is still a path, a viable path for a ceasefire.

Clarissa Ward is with me from Tel Aviv.

Clarissa, the Qatari point, the PM's point, is absolutely on the nose, isn't it? I mean, why would Israel assassinate a negotiator and then have

any hope that they can put a cease fire together?

CLARISSA WARD, CNN CHIEF INTERNATIONAL CORRESPONDENT: Well, Richard, I think that's why you see a lot of frustration from the families of these

hostages who, simply put, do not feel or believe that their government is acting in good faith to do everything within their power to try to

negotiate the secure release of the roughly 115 hostages who are still inside Gaza. Obviously, we don't know how many of those hostages are alive,

but we spoke to the family member of one family of three or four people who are being held inside. And she said that she was shocked and that she was

also terrified that what this meant for not just for the future of negotiations, but for the safety of the hostages.

Not to mention, of course relief that is so desperately needed, Richard, for the more than two million Gazan civilians who are trapped inside this

hellscape. And there had been such concerted efforts from so many different parties to try to find some kind of agreement that would allow for a

ceasefire, a hostage release, and steps forward to a more meaningful piece. All of that now really hanging in the balance.

[16:35:18]

The thing you'll hear as well, Richard, is that whether or not you love or hate Ismail Haniyeh, within the context of Hamas, he was seen as being a

relatively moderate force. It is not clear who will step into his shoes or when that transition would happen. And it's also not clear whether this

doesn't kind of play into the hands of Yahya Sinwar, who of course does not favor a diplomatic solution.

QUEST: So all those things on -- why would Netanyahu, why would Israel do it?

WARD: Well, if you take Netanyahu at his word, well, I should say most importantly Israel has not acknowledged that it was behind the

assassination of Ismail Haniyeh.

QUEST: Yes. Right.

WARD: They are really just talking about the killing of Fu'ad Shukr, who is a very senior Hezbollah leader, member of the Jihad Council. It is

absolutely anticipated by the way that there will also be some kind of strong response or retaliation, not just from Iran, but also from Hezbollah

along that northern border. And he is trying, Netanyahu that is, to frame this conversation along different lines.

Not about what's going on in Gaza, not about the hostages, but as a war against the so-called axis of resistance which is Iran and its various

proxies and militias that are fighting, not just Israel, but also the U.S. in various countries around the region. So whether that's out of a desire

to keep this war going and ensure his political survival, whether that's out of a genuine belief that this is the bigger threat that needs to be

dealt with, that this can provide some kind of an effective deterrent, we really just don't know at this stage, Richard.

But certainly safe to say that as a result of these actions, there is very real fear across the region tonight.

QUEST: Yes.

WARD: This was already a region on a knife-edge and now it feels that much closer to potentially toppling over the edge into an all-out regional

conflagration, which nobody seems or says that they want on paper, but which could easily now happen with just a single miscalculation -- Richard.

QUEST: So just taking that briefly closer, but I do want to hear your thoughts on this briefly. Who has the power, and I don't mean between the

two parties, which other interlocutor has the power to pull the parties back?

WARD: Well, everybody of course is looking to the United States. Everybody in the region in the Arab countries is asking, did the U.S. know about

this? Did they give the OK to these very high-profile assassinations which would inevitably provoke some kind of a retaliation? Is it that the U.S.

unwilling to sort of draw a red line for Israel or that they are unable?

These are questions that we don't know the answers to, but the very fact that we're asking them shows how difficult and dangerous a situation this

is now, Richard.

QUEST: Right. Clarissa, I'm grateful for you. It's late at night in Tel Aviv. And thank you for joining us tonight.

Boeing has finally chosen its next chief executive. The challenges that faces Kelly Ortberg when he takes over next week from Dave Calhoun.

QUEST MEANS BUSINESS.

(COMMERCIAL BREAK)

[16:41:25]

QUEST: Our top two, turning to Chicago and Donald Trump's confrontational appearance at the National Association of Black Journalists. Harris'

campaign has already laid into it saying Trump's hostility on stage was the same as he showed throughout his term. you remember Donald Trump trashed

the moderators and he claimed to have been the best president for black Americans since Abraham Lincoln.

The Democratic Congresswoman Lisa Blunt Rochester spoke to Jake Tapper a moment ago and she said the event showed Donald Trump should not be

president.

(BEGIN VIDEO CLIP)

REP. LISA BLUNT ROCHESTER (D-DE): I think many of us are still trying to process what he just said. I mean, first of all, the fact that he didn't

know she was black says something and that he can't pronounce her name also says something. I think what it says and what was clearly on display was

that he should not be back in the Oval Office.

(END VIDEO CLIP)

QUEST: Now, Julie Roginsky, who you see there, Democratic strategist and co-founder of workers' rights group Lift Our Voices, is with me now.

Now, listen, J.D. Vance said just a moment ago, let me just read you what he said. He said it showed the strength and character of Donald Trump. He

walked right into the NABJ, showed he had the courage to take tough questions. Kamala Harris is a coward and continues to hide from scrutiny or

unfriendly media.

Well, it's getting nasty.

JULIE ROGINSKY, DEMOCRATIC STRATEGIST: Well, it certainly showed character, right? I mean, it showed his character entirely and I don't use the word

lightly, but it showed what a horrible racist he is. I mean to say that a woman whose father was born in Jamaica suddenly turned black, I don't know

when in his mind she turned black. I mean, you know, I don't think people turn a race or color. They either are or they aren't.

QUEST: Right.

ROGINSKY: To treat the African-American women on that stage who were asking him tough questions, particularly Rachel Scott of ABC News, as somehow some

nasty woman. He only reserves these kinds of words for female journalists if you notice who ask him tough questions. I mean, he's a misogynist and

he's a racist. And frankly, I'm glad that we got to see this because it's - -

QUEST: So -- but there is a --

ROGINSKY: Yes.

QUEST: There is a section, and I guess I don't know how big or how small of voters that will respond positively to that because otherwise he wouldn't

do it. I mean, a clever man at one level, and he knows his political acumen and he must know that there is going to be an element of people who will

favorably go for that.

ROGINSKY: Well, of course, it's his base, right? He wasn't speaking to the black journalists in the audience. He was speaking to his base of frankly

people who are threatened by a woman, threatened by black women. The same people who don't believe that Barack Obama was an American born citizen

because he's black. The same people who believe that Kamala Harris could not run for president because her mother was born in India and her father

was born in Jamaica.

I mean, there is a section of this population in our country who is incredibly intimidated and offended by the notion that a black man in

Barack Obama, now a black woman, can ascend to the highest office in the land. And that's exactly who he's speaking to. He's ginning up those

people.

QUEST: How do the Democrats respond when, when you have comments that are arguably is offensive and incendiary as that? There's only so many times

that people like you can come on and say, he's a racist, he's a this, he's a that, he's the other. But the polls still show even Stevens.

ROGINSKY: Well, listen, either you love Donald Trump and you know who he is, or you hate Donald Trump and you know who he is.

[16:45:01]

There are very few people out there who don't know who this man is and either love him or hate him for it. What you can do is let him speak. I'm

glad he did this today. I'm glad the networks carried it. I'm glad that people got to see who he is because you don't need commentators like me or

anybody else to distill it for you.

QUEST: Right.

ROGINSKY: You saw it firsthand without any kind of filter.

QUEST: So we had you on the program yesterday. We were discussing which is more important, the middle ground or the turnout number in '24, and the

view seems to be that turnout is where it's all at. Now if your party can - - the Democrat Party can turn these sort of comments into a cudgel to beat Donald Trump with, then you stand a chance of increasing the black vote,

which stayed away last time.

ROGINSKY: Well, it's not just the black vote, right? It's vote of people like me. I'm not black, but I'm incredibly offended by this. I think it's

young people who don't live in this kind of world. I mean, Donald Trump in and of itself is the product of a bygone era. And I think generation Z's,

you know, my son is one, these are not kids who are growing up believing that this kind of world should exist regardless of their skin color.

And so therefore, it's not just getting out the black vote because they're personally offended by this. It's getting people who otherwise might have

said, oh, there's really not much of a difference between Trump and Biden, and maybe like, you know, the good old days (INAUDIBLE) and pre-COVID. It's

reminding them what is at stake. The very fabric of this country, the very future of our democracy is at stake.

And that's not relegated to just people who are offended by the comments that Trump made today because they happen to be black.

QUEST: Grateful that you're with us. I'm grateful. We'll talk more. Thank you.

Now news into CNN, according to "The New York Times," Iran's supreme leader, Ayatollah Khamenei, has issued an order for direct attack on Israel

following the assassination of course of Ismail Haniyeh in Tehran. "The Times" is citing information provided by three Iranian officials familiar

with the order. It was given during an emergency meeting for Iran's Supreme National Security Council. "The Times" did not say how or when. Earlier,

Khamenei said it was Iran's duty to avenge Haniyeh's death.

Meta released its quarterly earnings after the bell. Look at the number on the share price. That will tell you all we need to know. Well, Clare Duffy

will tell us even more after the break.

(COMMERCIAL BREAK)

[16:50:09]

QUEST: Now isn't that gorgeous? What a beautiful sight tonight from Paris where it's 10 to 11:00 at night. The U.S. swimmer Katie Ledecky has won her

first gold medal of the 2024 summer games. She broke her own Olympic record in the 1500-meter freestyle, and she finished it 10 seconds ahead of the

competition. It's her eighth career gold medal and she's entered in two more races.

Japan's Shinnosuke Oka claimed the gold in the men's all around gymnastics, helps his country hold on to its place in the medal count. Japan is tied

with China and France for gold. The U.S. has 30 medals overall.

The Paris Olympics is producing some new stars and some made-for- themselves, names for themselves even before it began. The rugby player Ilona Maher was a Team USA fan favorite coming into Paris thanks to her

outspoken TikTok presence.

Coy Wire spoke to her about what her team's bronze medal win represents.

(BEGIN VIDEOTAPE)

ILONA MAHER, TEAM USA RUGBY PLAYER: I think I didn't realize it even after the final whistle blew. It was exciting, but it was when I got here, asked

me like what it meant for our program, what it meant for me, and that's what it really got me. I think it was seeing my family behind as I was

answering that question really hit me and then, you know, there's a lot of motions. It was three years of hard work and so really paid off.

COY WIRE, CNN WORLD SPORT: In following your journey, I know that that medal meant more than just you and your team. What does it represent?

MAHER: It just shows our value, our worth that we're worthy of funding, worthy of money and of attention.

WIRE: You've been so outspoken about gender bias, about body issues, empowering the next generation of young women out there. Why is that

important to you?

MAHER: I think it's kind of like if you can see it, you can believe it. I get to see it every day with my teammates around me, Naya Tapper, Nicole,

and they helped me to see it so if I could just spread that to them. It's hard to be confident. It's hard to be that. But if you can see somebody

else do it, maybe it'll help you.

WIRE: And what is your hope for the sport moving forward as now the Olympic Games come back to the United States next time around?

MAHER: Yes, my hope would be that more athletes get into it. I think it can be a first choice. It's not just the soccer, basketball, but rugby is up

there as the first choice, and realize rugby -- Sevens is about being an athlete, being fit, and we have girls on our team who started rugby three

years ago and here they are at the Olympics, you know, so there's a place for you and there's a spot for you possibly on the L.A. 2028 team.

WIRE: Do you think you've been chosen to have this platform that you've been given?

MAHER: I was just thinking about today. I was like, why me, why me, and it's kind of a scary burden at times, but I'm excited to get to carry it,

but just trying to stay grounded and I think it's why me is that I feel comfortable sharing myself and I hope that other people resonate with it.

(END VIDEOTAPE)

QUEST: Meta has reported earnings that beat after the closing bell on Wall Street. It posted a 22 percent increase in revenue. Digital ad sells with a

busy election year and it also provided strong guidance for the quarter. It's hoping those higher revenues will help cover its AI investments.

Now the market and investors want more information about the AI model during the company's earnings call up to begin in about 10 minutes.

Clare Duffy is in New York.

You looked at the results, what stood out to you?

CLARE DUFFY, CNN BUSINESS WRITER: Yes, Richard, look, I think the major takeaway from this report is that while Meta is investing heavily in

artificial intelligence infrastructure and it did raise its capital expenditure guidance for the full year, its core business, that core social

media online ad-based business is humming along nicely and that's what investors really care about.

I think that's why you're seeing this stock pop after this report. Here are some of the highlights that I noted in that vein. We saw daily active

people on Meta's apps growing 7 percent year over year. Average price per ad, which is really key indicator for this business growing 10 percent year

over year. And then Meta did also show better than expected revenue guidance for this current quarter.

So we're seeing this core business performing and, you know, perhaps being able to account for and accommodate for all of these investments that the

company is making in artificial intelligence because we are seeing at the end of this quarter many analysts are asking big questions of all of the

big tech companies. When are we going to start to see returns from the tens of billions of dollars that you're investing in AI. And I think Meta is

going to be glad to be able to show investors that at the same time its core ad business is doing quite well, Richard.

QUEST: I'm grateful. Clare Duffy, thank you very much on that.

Now, just let me update you of course on what the events have we been talking about today that have driven the markets. The Fed held interest

rates steady and signaled a possible cut in September. As a result, you're seeing a strong session and the one to note there is the Nasdaq because

arguably the rotation that we've been undergoing has either stored or paused or something, or other.

Anyway, the Nasdaq has gained quite a lot of what it's lost in recent days. The Dow 30 to show you how we love you, and the Amazon up at the top.

[16:55:02]

Boeing because it's got a new CEO. Intel and Apple because of rotations. And you see the other end J&J Merck all down in the doldrums.

We will take a "Profitable Moment" after the break.

(COMMERCIAL BREAK)

QUEST: Tonight's "Profitable Moment." I want to address Boeing and its new CEO, Robert Kelly Ortberg, who has joined them from Rockwell Collins. Well,

he actually retired from Rockwell Collins. But Kelly Ortberg as he's known is a man who's a mechanical engineering by trade and profession. He ran

Rockwell Collins and now he's been given the poison chalice of Boeing. In his own words, he says there is much work to do. Talk about

understatements. But he says he's up to the task and he knows what needs to be done.

The man is not going to have any honeymoon whatsoever, frankly, and he's got a disaffected workforce with poor and low morale. He will have to

integrate spirit, the manufacturer -- fuselage manufacturer back into Boeing as they re-merge the companies. He'll have to pacify and mollify the

regulators and convince them that Boeing can build safe planes, and he will have to appease and be nice to the customers, all of whom are furious at

the delays because Boeing has slowdown on the 737 MAX production and its 777 X's is delayed and it hasn't even been certified yet.

And you thought you had a busy in tray. It'll take him some time. But luckily, he is a man from the industry, a mechanical engineer who knows his

way around these subjects. And an outsider so he's not a Boeing boy to boot, if you will.

And that's QUEST MEANS BUSINESS for this midweek edition. I'm Richard Quest. Whatever you're up to in the hours ahead, I hope it is profitable.

Jake is next.

JAKE TAPPER, CNN ANCHOR: Welcome to THE LEAD. I'm Jake Tapper.

This hour, never before seen evidence just released relating to the horrific terrorist attacks on September 11th, 2001. It seems to be evidence

that victims' families have been pleading for it to be released for years.

END