Return to Transcripts main page
Quest Means Business
Liz Cheney to Campaign with Harris in Wisconsin; Beirut on Edge; Saving the Rainforest on Palawan; Labor Action at U.S. Ports Enters Its Third Day. Ongoing Strikes in Lebanon; Biden Leaves Door Open to Israel Striking Iran's Oil Reserves; Biden Tours Storm Damage in Southeastern US. Aired 4:00-5p ET
Aired October 03, 2024 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:14]
PAULA NEWTON, CNN INTERNATIONAL HOST: US stocks as you can see there, falling, although they are off their lows.
Geopolitical jitters as Middle East tensions and oil prices higher. Those are the markets and these are the main events: Lebanon says Israeli strikes
have killed some nine people in Central Beirut as the IDF vowed to press on with attacks.
President Biden is set to speak after surveying the damage left by Hurricane Helene.
And US consumers resort to panic buying as strikes across major ports threaten some products.
Live from New York, it is Thursday, October 3rd. I'm Paula Newton, in for Richard Quest and this is QUEST MEANS BUSINESS.
Good evening. We begin in Lebanon where Israel is stepping up its attacks on the ground.
(VIDEO CLIP PLAYS)
NEWTON: Israeli military is hitting the capital with heavy airstrikes, bombing multiple targets in the southern part of that city and Lebanon
reports an Israeli strike in Central Beirut killed nine people.
Huge plumes of smoke are still hanging over the capital. One expert says the campaign mirrors the bombardment of Gaza after October 7th.
Israel is also signaling that it is expanding its ground operation in Southern Lebanon. Israel has issued more evacuation warnings telling people
to move north of the Awali River to save their lives.
It says a strike killed several Hezbollah commanders in Southern Lebanon, at least nine Israeli soldiers have been killed in the fighting so far.
Ben Wedeman is with us now and he joins us from Beirut.
I mean, Ben, I know that you were in those southern suburbs recently and yet, the strikes are ongoing. What did you see there? And what are people
saying to you now realizing that they are undeniably now, perhaps in the crossfire of a full blown war between Israel and Hezbollah?
BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Paula, in the southern suburb, what we saw is there are very few people actually left there. In
many cases, it is just the men who stay behind to keep an eye on their property, their homes, but their families, in most cases have gone
elsewhere for fear of these strikes.
And in fact, speaking of strikes, for the first time today, the spokesman for the Israeli military put out a warning for one of those first strikes.
In fact specifying two buildings in the Borj El Brajneh neighborhood or it is also a refugee camp in the southern suburbs, but for instance, that
strike you referred to that occurred just before midnight in the heart of Beirut, which killed nine people. It is a very crowded neighborhood.
There was no warning, so really the warnings are the exception rather than the rule when it comes to these Israeli strikes.
But people are very much feeling that they are in the crosshairs because we've seen twice since Sunday strikes happening outside the southern
suburbs, which from where, as I've said, most people have left. So there is that danger.
But if you look at the situation and the south, it is indeed grim. Until now, the Israelis have given evacuation orders to 76 villages in Southern
Lebanon telling people not to drive south, that it is dangerous. If a car is seen driving towards the south, and for instance, the city of Tyre where
we were in just a few days ago, apparently is almost completely abandoned by its inhabitants.
There are -- most stores, everything is closed and I am told there is only one place you can actually get something to eat down there.
So the worry is that Israel is preparing for a larger ground operation particularly after they have encountered stiff resistance from Hezbollah in
the south. The worry is that Israel is going to do as Israeli leaders have threatened, is to copy and paste the experience of Gaza onto Lebanon. We
are talking about essentially ethnically cleansing large parts of the country, laying them to waste, and not allowing the inhabitants to return.
That is the fear.
People have been watching as hopefully people but around the world have been watching the war in Gaza now almost exactly a year old. And the fear
is that Israel will repeat what it did to Gaza to Southern Lebanon, if not beyond it -- Paula.
[16:05:12]
NEWTON: Yes, Ben, just now, we have the chief of the General Defense Forces of the IDF that said in a video message that his military is "determined to
destroy Hezbollah infrastructure near the Lebanese border." And they say they are determined and to get their residents, 160, pardon me, about
60,000 back into those villages in the northern border.
And you have a lot of experience on the ground there. Where do you see this going, especially given what you're seeing on the ground because people are
fleeing and that is leading to a lot of destabilization in Lebanon itself as well.
WEDEMAN: Well, certainly, Lebanon, the last thing it needs is to have a million people basically refugees in their own country. The government
barely functions as it is, but with this added burden, they desperately need help from abroad and they've appealed for more than $400 million to
try to deal with this mass influx of the displaced from the south and elsewhere, but beyond that, what we are seeing is the Israelis are building
up their forces in Northern Israel.
As I said, Hezbollah is putting up stiff resistance in the south. The anticipation is therefore since the Israelis aren't just plowing into
Lebanon, they are running into trouble, that they are going to increase their bombing of the south. They are going to basically go beyond the so-
called limited and localized and targeted raids as they are calling into a full scale invasion.
Hezbollah is not an organization despite all the blows it has taken in the last two-and-a-half weeks, it has clearly taken those blows, but it has
been far from eliminated. Clearly, in the south, they are able to still fire rockets into Israel, still stop Israeli forces from coming in.
Therefore, the anticipation is Israel is going to come back with even more force and basically, a full-scale invasion of Southern Lebanon, if not
beyond. Keeping in mind that back in 1982, when Israeli forces in June of that year were going into Lebanon. It was described as a limited incursion.
It didn't take more than a few weeks before they were besieging West Beirut. This could be a repeat -- Paula.
NEWTON: Yes, a historical note there to keep in mind. Ben, appreciate you being there on what is going to be another tense evening in the capital for
sure. Appreciate it.
Now, Israel's operation is threatening to crush Lebanon's already fragile economy. You just heard Ben talking about that. The Lebanese economy
minister spoke to CNN earlier.
Amin Salam says Israel has no goal, but to destroy the country.
(BEGIN VIDEO CLIP)
AMIN SALAM, LEBANESE MINISTER OF ECONOMY AND TRADE: Lebanon was already in a very difficult place before this war started. Everybody knows the economy
situation in Lebanon was in a very difficult place. Everybody knows that after the Beirut Port explosion, after the economy crashed, you know, the
country has been struggling for over four years.
This war just came to devastate. It is devastating the country. It is creating more instability. I am not just talking about the economy, I am
talking about the 1,200,000 people displaced today. It is an unprecedented displacement activity that happened in any country in the world in less
than five days.
We have hospitals filled with people, schools filled with people, people sleeping on the street and this war keeps going.
The way I see it is that, this war has no goal. It is just destroying the country and it is just taking it to a place where it is very difficult to
come from.
(END VIDEO CLIP)
NEWTON: US President Joe Biden suggested Israel could respond to Iran's missile attack by targeting its oil reserves. His comments helped drive oil
prices higher. You see it there, Brent crude it is up some five percent today alone. It is now trading at nearly $78.00 a barrel.
Biden said he is still talking to Israel about its potential response.
We also have new satellite images that show the aftermath of Iran's attack on a base in Southern Israel. Now, at least 12 craters in which you see
there were identified and are marked in yellow. Israel's UN ambassador told CNN that his country will retaliate soon and that the response will be in
his words, very strong and painful.
Gerald Feierstein is the former US Ambassador to Yemen, and he joins us now. I want to thank you for being with us and just to get straight to it.
What do you think we are in for here, Ambassador? Do you believe that Israel will go after Hezbollah in a more extensive way? And then also hit
Iran in a very strong way?
[16:10:10]
GERALD FEIERSTEIN, FORMER US AMBASSADOR TO YEMEN: Well, I think in terms of Hezbollah, what seems to have been at least the initial Israeli intent was
to drive Hezbollah north of the Litani River, that was the UN Security Council Resolution 1701 passed in 2006, called for Hezbollah to withdraw to
north of the Litani. That's the kind of the border between North and South Lebanon.
And by doing that, they would put Hezbollah missiles and drones out of range for hitting Northern Israel. So that was the original intent, but as
your correspondent said quite correctly, what they originally planned and what they actually do are not necessarily the same, and if in fact they
cross the Litani and continue to drive towards Beirut's suburbs, the possibility of being dragged into a much more extensive long-term conflict
with Hezbollah is certainly there.
As far as the Iranians are concerned, while there has been some talk, initially, the Israelis were talking about hitting nuclear facilities,
that's really not within the scope of their capabilities.
They could hit oil infrastructure, that would be problematic and would almost certainly draw an Iranian response to the Israelis.
And so the threat there, of course, would be that we would be at risk for a much broader conflict, perhaps even one that would draw the US directly.
NEWTON: Just so we are clear, though, you don't believe that there would be support for hitting those oil installations, perhaps just hitting missiles
and launchers and things like that in Iran would be something that the United States would advise, if it has anyone listening anymore in Israel.
FEIERSTEIN: Well, it is a good question, but I think that we can look at the exchange between Israel and Iran as a model for what might happen and
would be certainly the US preference.
When there was that exchange, both the Iranians and the Israelis took steps to de-escalate, even though their responses were at a lower level and
allowed the other side to back away from further confrontation.
That would be the best outcome that we could have here. The Iranians have said that they won't retaliate unless Israel takes a drastic measure. If
the Israelis don't, then perhaps we could be in a de-escalatory mode and that would be to everybody's benefit.
NEWTON: I want to ask you about the US role in all of this, you know. Is this American impotence -- as some people have said or reluctance? I want
you just to think about an essay that just now, Antony Blinken, the Secretary of State penned for "Foreign Affairs." It is entitled "America's
Strategy of Renewal: Rebuilding Leadership in a New World" and he writes time and again, the Biden administration has demonstrated that the United
States is the country others can rely on to help solve their biggest problem.
Look, you served in the Obama administration. I want to ask you. At this point in time, whatever de-escalation this administration has tried has not
worked. Is it fair to say that they have really lost influence at key times during key elements of policy in the region that would have de-escalated
the situation?
FEIERSTEIN: Well, I think the key phrase in Tony Blinken's essay is that we are prepared to help when other people want our help and the problem that
we have here isn't necessarily a loss of US influence, it is a problem that were dealing with two parties or three or four parties that are not looking
for a diplomatic exit. They are not looking for US engagement.
Each side believes that they are going to benefit by a continuation of the conflict as long as you have the parties believing that they that the
continuation of these military exchanges benefits them, they are not going to be willing to listen to US intervention.
And whether -- and you know, there is only so much that you can do. Of course, for the most part, the US really only has influence with one side
of this confrontation. They talk to the Israelis, they don't talk to Hamas, they don't talk to Hezbollah.
NEWTON: But even in speaking to Israelis -- even speaking to the Israelis, it doesn't seem like anyone is listening and that was the point I am making
here.
Some people would say that there are more levers that the US could use. You don't think there are?
[16:15:06]
FEIERSTEIN: No, I don't think so and again, I think that the Israelis, along with the others, are committed to this military confrontation. They
are committed or believe that they can achieve a victory through the use of violence. I think they are wrong. I think that at the end they will prove
to a failed, but they are not at that point yet.
The US has other levers that it can use, but a country that believes is facing an existential threat is going to do what it believes it needs to
do, regardless of what the United States wants or advises or even tries to compel.
NEWTON: And regardless of the fallout from their -- Ambassador Feierstein, we appreciate your insights. Thanks so much.
Still to come for us tonight, US President Joe Biden continues to tour the extensive damage from Hurricane Helene. We will have a live report on his
trip, coming up.
(COMMERCIAL BREAK)
NEWTON: Now President Joe Biden is continuing to tour areas devastated by Hurricane Helene in the Southeastern US. He has just arrived in Georgia
where he is due to give remarks shortly now.
We are looking at the president right now, taking -- earlier today, pardon me, he took an aerial tour of damaged areas of Florida and was briefed on
the recovery operation, but this is actually from Keaton Beach, Florida where he toured what was going on there.
Republican Governor Ron DeSantis meantime, did not meet with the president during his visit.
Helene has killed now at least 200 people across six states. Power outages, nearly a million people without power. There are still damaged roads that
are hindering recovery efforts.
Ryan Young is in Valdosta, Georgia and you and we are trying to catch up with the president here. I know this is literally a second day, obviously
showing the gravity of the situation given the fact that this is now day two that he has been touring.
RYAN YOUNG, CNN CORRESPONDENT: I think for our viewers, it is hard to imagine how massive this storm was and if you think about it just in
Lowndes County where we are standing, you're talking about 500 square miles that had been nearly damaged by this storm.
We are told 90 percent of this area --
NEWTON: Ryan, I am just going to interrupt you. I apologize. We are going to go to the president --
JOE BIDEN, PRESIDENT OF THE UNITED STATES: -- crashed into power lines, setting out loss of electricity; flooding, wiped out homes.
We were just down in Florida and we see homes are -- I mean, just wiped away --
[16:20:10]
Just an entire island gone. Families that lost everything including -- including loved ones, including family members and I know it isn't the
first time.
Just over a year ago, a major hurricane at these same communities, a couple of months ago, Hurricane Debby did the same thing, three in a row -- three
in a row. You've been through hell. Three in a row.
And I want you to know, I see you, I hear you, I agree with you, and I promise you, we have your back. We are going to stay until you're restored.
Earlier today, I was briefed by Florida officials on the damage and met with first responders who have been working nonstop to provide aid and
support to survivors.
I did a walking tour at Keaton Beach with a bipartisan group of officials to survey, what a 15-foot surge -- 15-foot surge, in some places, it went
as high as three stories -- what it does to a coastal community.
Now, I came here to Georgia to meet all of you to see firsthand how you're doing as well because we are in this together. We are -- separate states,
we are the United States of America.
I want to thank Governor Kemp who I spoke with again this morning, with Senator Warnock behind me, (Senator) Austin Scott, Representative Sanford
Bishop, old friends.
In moments like this, it is time to put politics aside. Again it is not one state versus others, it is the United States.
You know, there are no Democrats and no Republicans out here. That's what we do to make sure we restore the economy. Only Americans are here.
I've been committed to being president for all Americans. In fact, all the major bills we've gotten past from over a trillion dollar bill related to
infrastructure to $368 billion bill on dealing with climate, a whole range of bills we got passed.
Well, guess what? The fact of the matter is, more money from those bills have been spent in red states -- red states than in blue states, more in
red states than blue states.
But I said, that didn't matter where it was or who needed help, not based on party, who needed help. I mean this sincerely, so you can check it out.
Our job is to help as many people as we can, as many as we can, and also by the way, when you do that, I hope again to break down this rabid
partisanship that exist. I mean that sincerely.
There is no rationale for it. There is no rationale for it. And so it doesn't matter who we help, it is who is needing help and look, we help as
many people as we can. That's why days before the storm hit, I prepositioned extensive resources on the ground throughout the southeast,
extensively.
First responders, search and rescue teams, food, water, ambulances before Helene had made landfall.
I also immediately approved emergency declarations, your governor and others asked for, and so all of us could focus on the first responders and
standing up emergency operation centers. That was the focus.
Yesterday, I approved Governor Kemp's request for a federal government to cover 100 percent -- 100 percent of the cost of debris removal and
emergency protective measures for three months, 100 percent.
I must tell you, your senator has a little bit to do with that when you called me beforehand --
NEWTON: And you have been listening to President Joe Biden, he is there in Race City, Georgia talking about the devastation and how the federal
government can help.
We go back to Ryan Young who is in Valdosta, Georgia.
I mean, Ryan, the president said it there, in terms of the vast swaths of states going through so many states and the damage they've incurred.
I am wondering what you've heard from people though in terms of the federal, state, and local response, if they're wondering why it wasn't
quicker, and if the president is taking some flak for that at all?
YOUNG: Well, one thing that has been very clear here is this is not an easy solution because so much of the area has been damaged and you think about
it, it repeats itself. Florida, Georgia, South Carolina, and then into North Carolina.
A lot of times, when you have large storms like this, one of those states can help the other, and so what we are having is this impact is so
widespread, all of the states are sort of scrambling.
We've seen power crews just trying to get the power back up to so many businesses and homes throughout this area and then you compound that with
so many small businesses that have been impacted, there is going to be a cascading effect because if a small business can't open, then they can't
pay their employees and you're going to have employees who are going to be struggling with bills because of the fact they are not being paid.
So you can see the ramifications of this.
[16:25:01]
And then on top of all that, you have the real human toll of this heat and the idea of no power, no ice, no water and they are still trying to get
tarps out there -- Paula.
NEWTON: Yes. The devastation is incredible and that is for those who were lucky enough to survive as people still, still almost a week later are
wondering what happened to their loved ones.
Glad to have you on the ground there. Appreciate it.
Now, Donald Trump is at this hour or still holding a campaign rally in Michigan, another critical state on the path to the White House.
This is a new filing by Special Counsel Jack Smith provides the fullest picture yet of the former president's efforts to overturn the 2020
election.
Melania Trump meantime is at odds with her husband on a central campaign issue, reproductive rights. Here is what she said in a new video posted on
social media today.
(BEGIN VIDEO CLIP)
MELANIA TRUMP, FORMER FIRST LADY OF THE UNITED STATES: Individual freedom is a fundamental principle that I safeguard. Without a doubt, there is no
room for compromise when it comes to this essential right that all women possess from birth, individual freedom.
What does my body, my choice really mean?
(END VIDEO CLIP)
NEWTON: Now in the coming hours, Vice President Kamala Harris is set to campaign in the state of Wisconsin. Former Republican lawmaker Liz Cheney
is set to join her.
Eva McKend is in Wisconsin, but first we want to go straight to Kristen Holmes in Saginaw, Michigan, who is at that Trump rally.
Kristen, if you can hear me, firstly, we've got to talk about Melania Trump and what she said in that video. And if you expect a reaction from the
president there, given that some are saying it may be a shrewd move to try and win over people who are not happy with the Republican agenda on
abortion.
KRISTEN HOLMES, CNN NATIONAL CORRESPONDENT: Yes, I've heard that as well from Republican operatives. I am not so sure how that is going to actually
play out with voters, the idea being that having Melania Trump put this out there and then say that she is in the White House, so you could have an
ally in the White House if you are for reproductive rights.
I am just not really sure how her messaging here translates; instead, it appears that she is mostly at odds with her husband when it comes to
reproductive rights. This is -- overturning Roe v. Wade is one of Donald Trump's signature accomplishments, at least, he has said that in the past
during his time in the White House.
What is so interesting about this, it comes at a time in which we you have seen Melania Trump almost zero times on the campaign trail. She has been
present for one event which was his launch last November -- excuse me, I mean, in 2022. Other than that, we have barely heard from the former First
Lady. This video was put out to promote her memoir and here she is essentially going against the former president.
The other part that is notable about this is that it is an issue that Donald Trump himself has had a real problem with how to navigate.
Remember, we had heard him across the map on this. There is one thing that we know, he is the architect of the overturning of Roe v. Wade.
The other thing we know is that he believes the issues of abortion rights are harmful to him politically with women, with moderates, we've seen him
waffle on questions about access, we've seen him not answer questions about whether or not he would veto a national abortion ban.
The first time he actually said he would veto it was earlier this week, despite being asked that multiple times. He has tried to please both the
right and the middle and had a very hard time doing so.
Now you have Melania Trump stamping out and essentially going against what he has put in place. Now, we have not heard him mention anything about this
here in this rally, not surprising, he doesn't often talk about the former First Lady.
I talked to a number of campaign advisers about this, who essentially brushed it off, said she is not traditional, that she is going to do she
wants to do, but it does again, go against what Donald Trump himself has done, this overturning of Roe v. Wade at a time where this is really the
only thing that we have heard from her on some of these policies and politics, which is just really interesting this close to the election.
NEWTON: Yes, it is obviously going to be a question he is going to have to answer sooner or later and perhaps even in the next few hours if he agrees
to speak to reporters.
Eva, to you now in Michigan.
I mean, having a Republican at your side who some people call a Republican in name only to appear on stage in a battleground state right now. What
kind of impact is the Harris campaign hoping it will have?
EVAN MCKEND, CNN NATIONAL POLITICS CORRESPONDENT: Well, Paula, this is a message grounded in country over party. They hope that Liz Cheney in
concert with the vice president will be able to appeal to conservative voters turned off by the former president, Independents as well.
And this message really focus on upholding our democracy, respect for the Constitution, respecting the rule of law, and they will acknowledge even
Cheney has a well-documented history of criticizing Harris' policy positions, but they will argue that Constitution and democracy, those are
fundamental issues and that is why that part of the party should come over and support the Democratic ticket.
Listen, they are not only making this argument here in Ripton, Wisconsin, the birthplace of the Republican Party. They are up with an ad in
battleground states across the country featuring a man who supported the former president in 2016 and in 2020 really pushing this character argument
and now, he is supporting Harris. Over the next four days, they've got Republican surrogates in all of the battleground states leaning hard on
this message.
Now, I've been speaking to Democrats, not all of them think that this is the right strategy. They believe every available dollar really should be
going towards shoring up the base of the party, going to black voters, Latino voters, Asian voters, all of those voters that are so key to the
Democratic coalition. But I spoke to the Wisconsin Democratic Party and they believe that it is the right move here.
They say that it's a strategy that they employ cycle after cycle, leaning on Democrats to talk to their Republican neighbors and convince them of the
case -- Paula.
PAULA NEWTON, CNN INTERNATIONAL ANCHOR: Yes. And given how close this race is, no doubt that turnout and those kinds of personal conversations will
indeed make a difference county by county.
Kristen Holmes for us, Eva McKend, thanks again. Appreciate it.
Now Israel's military chief says the IDF will keep hitting Hezbollah targets in Beirut. The military says it killed several Hezbollah commanders
in a fresh wave of airstrikes. We will hear from Beirut residents living through this violence. That's next.
(COMMERCIAL BREAK)
NEWTON: Turning now to our top story, Israel's military operation in neighboring Lebanon against Hezbollah.
[16:35:01]
Israel launched a fresh wave of airstrikes on the Lebanese capital Beirut. The IDF says one of the targets Thursday was Hezbollah's intelligence
headquarters. Lebanese officials say a strike in central Beirut, meantime, killed at least nine people. The IDF has once again expanded its evacuation
orders for people living in southern Lebanon. It's a sign that Israel may broaden its ground incursion.
Now, Hezbollah says it repelled an Israeli attempt to advance into Lebanon. Now, the Israeli bombardment has shaken Beirut to the core as you can
imagine.
Jomana Karadsheh spoke to people on the ground there. They describe a tense and somber mood in the Lebanese capital.
(BEGIN VIDEOTAPE)
JOMANA KARADSHEH, CNN CORRESPONDENT: We are in the heart of Beirut just hours after a rare Israeli strike. And the fear and anxiety here is
palpable. It's the first time an Israeli strike hits the center of the city since all-out war between Lebanon and Israel in 2006, even then strikes
like this were rare. This is the second time this week that we've seen attacks outside the southern suburbs, Hezbollah's seat of power.
The target appears to have been a Hezbollah affiliated health authority office in a residential area. And several medics were killed. This happened
in the middle of the city, in the middle of the night with no prior warning. A terrifying development for the people of Beirut. Even here
outside the American University in this cultural and commercial neighborhood, people say they know longer feel safe.
UNIDENTIFIED FEMALE: They're getting scarier because it feels like by the day things are escalating and we don't really know what area is safe
anymore. I feel like in Gaza it started the same way and then it escalated.
KARADSHEH: Escalated. Yes.
UNIDENTIFIED FEMALE: Yes. So you always worry, like will it keep on going? Will the West speak out, or are we just another country in the Middle East?
UNIDENTIFIED MALE: This is the thing like that, we don't know how long this is going to stay? How long is it going to extend? Is it going to be just
limited to the south? Or is it going to be all over Lebanon?
UNIDENTIFIED MALE: We are now who literally paralyzed. We cannot do anything. We have to stay at home and everything is deteriorating. Our
futures are literally we have a blank idea about the futures. We don't know what will happen next.
KARADSHEH: The Lebanese have seen it all, conflict and crisis, and many fear this is the beginning of a long war.
(END VIDEOTAPE)
NEWTON: Our thanks to Jomana Karadsheh there, and Jim Sciutto now joins us live from Tel Aviv.
I mean, look, Jim, you know so much better than I do right now that all that tension, that fear, that terror that you hear in those voices is
replicated where you are, replicated again in magnitude in Gaza. You know, you last hour just spoke to a husband, a father who lost his young wife and
mother holding their infant son in just savage terror attack in Israel in recent days.
And I also know that you speak very clearly to American officials. So we are again at an inflection point. Is there any sense that the U.S.
administration has any sway over Israel whatsoever to perhaps take a pause and -- they keep saying they're going to escalate to deescalate. Does
anyone have any influence right now on what seems to be a widening conflict?
JIM SCIUTTO, CNN CHIEF U.S. SECURITY ANALYST: Well, we know that U.S. and Israeli officials are talking. They're open, quite open communications
between Tel Aviv and Washington at the political level and military level. What we don't know is if the U.S. and Israel will come to an agreement on
what Israeli retaliation will look like. U.S., Israeli officials have made quite public and quite clear that they will retaliate for that Iranian
missile barrage and U.S. officials have backed them in their public statements that Israel, in the view of U.S. officials, has a right to
respond.
Now that's different, by the way, from April when you may remember President Biden said take the win as it were, meaning you had successfully
repelled that Iranian missile barrage, then no need to respond in a grand or extensive way. It's different now. The U.S. seems to be endorsing an
Israeli response. So the question is, what is that response? How big is it? What does it strike, nuclear facilities, oil facilities, Iranian
leadership? And do the two sides see eye to eye as to what's proportional, what re-establishes Iranian or rather Israeli deterrence?
It's not clear they get to that agreement. And as you know, Paula, there have been a number of instances in recent months when U.S. and Israeli
officials have not seen eye to eye, that the U.S. has urged caution and Israel has ignored that, ignored those protestations. So we don't know yet.
But I will say that being here in Tel Aviv right now, there seems to be quite a well of support for a robust response.
And by the way, that's not out of line with what the extent of the military action we're seeing in Lebanon right now, or continuing in Gaza or Israel
striking in Syria, in Yemen as well, right?
[16:40:09]
I mean, this is a country that seems girded for further military action and right now the world is waiting to see what that looks like.
NEWTON: And in terms of what the Biden administration may be weighing, clearly we are a little over a month from an election. When we talk about
perhaps, you know, hitting targets in Iran, especially oil facilities, how much do you believe the Biden administration is weighing the impact on the
election or is that all they're weighing right now?
SCIUTTO: I wouldn't say it's all they're weighing. I mean, anyone is conscious of what a huge spike in oil prices might mean to an election,
right, in terms of, you know, feeling an immediate economic impact in the States of events out here. If Israel were to strike Iranian oil facilities,
it's not clear how much that would impact world markets. The Iranian oil is already -- production is already under enormous number of sanctions.
But listen, markets tend to react to that kind of thing. So they got to be aware of that factor. Do I believe that that would prevent the U.S. from
supporting an Israeli strike on those facilities based on President Biden's comments today outside the White House. He at least seemed open to that as
a possibility, a strikes on oil facilities. But listen anything that happens right now this close to the election is going to be seen in the
U.S. through a political lens to some degree.
And that includes just widening hostilities here, right? A sense of instability as well. So, you know, events here are going to be -- well, I
don't know if they're going to have an impact on the election, but folks will look at them to having an impact on election regardless of how Israel
responds. Whether that's part of the conversation between Israel and the U.S. I don't know, but listen, U.S. officials involved have to be aware of
it.
NEWTON: Yes. And just days from the anniversary of the October 7th attacks, we are yet again at another inflection point.
SCIUTTO: That as well.
NEWTON: Jim Sciutto, good to have you on the ground there. Appreciate it.
And we'll be right back with more news in a moment.
(COMMERCIAL BREAK)
NEWTON: This week, "Call to Earth" is focusing on the Philippines and an organization working to conserve the country's last remaining pristine
rainforest. Today, we wrap up the story of KM Reyes, the co-founder of the Center for Sustainability who fell in love with the island of Palawan and
has spent the last decade tirelessly fighting to protect it.
[16:45:13]
(BEGIN VIDEOTAPE)
(MUSIC PLAYING)
BILL WEIR, CNN CHIEF CLIMATE CORRESPONDENT (voice-over): Conservationist Karina May Reyes, who goes by KM for short, was born and raised in
Australia by Filipino parents. She only visited the Philippines a decade ago and what turned out to be a life-altering trip for her and you could
argue the island province of Palawan as well.
KM REYES, CONSERVATIONIST AND CO-FOUNDER, CENTRE FOR SUSTAINABILITY: So I first came to the Philippines on April 23 of 2014. The date is etched
because then I came to Palawan on June 23 of 2014, fell in with this great group of people that wanted to protect their island. And here in Palawan,
we have a saying called, come back, come back, because when you come to Palawan, you always want to come back. It's so beautiful. And I came and I
just never left.
WEIR: She and that like-minded group of people formed what is now the Centre for Sustainability, a small but mighty non-profit, determined to
conserve what they consider their own backyard.
The Philippines was once covered in pristine rainforest. But in just the span of 100 years, the 20th century, it dropped from 70 percent to just 3
percent covering.
REYES: And the vast majority of that is here on the island of Palawan.
WEIR: Annually ranking as one of the best islands in the world to visit, it is indeed a natural splendor but it has also been labeled as the
Philippines' last ecological frontier and faces many environmental challenges.
REYES: The main threats that we face is mining, deforestation, poaching, unsustainable development, burgeoning population, encroachment. We're also
really vulnerable to climate change now with the typhoons.
So we're in Barangay Tagabinet, so one of the seven barangays of Cleopatra's Needle.
WEIR: In the Filipino language, a barangay translates to a village or district. This one is the home of two of KM's core team members, cousins
Solomon and Othoniel, who helped introduce her to the wonders of Palawan, planting the first seeds for what is now the Centre for Sustainability.
REYES: In many, many ways, it's kind of where it all began for us, because this was really their backyard and where they would venture as kids.
WEIR: Most significantly Tagabinet is the launching point from which KM first started to explore a peak known as Cleopatra's Needle.
REYES: The first time I came here was actually the very first time that I summitted Cleopatra's Needle. And it took five days. We went up. We got a
little bit lost, which is where Solomon and Othoniel's knowledge from their childhood was really important. And then we came down on this side. It's a
spectacular hike.
WEIR: The more she explored, the more she learned about the people whose livelihoods depend on these forests, about the flora and fauna that thrive
here and about the threats to its health, and a mission of conservation arose.
REYES: At CS and for me personally, my job is, number one, to serve people. It's to serve my community. Like we love our backyard. And this area is an
important area of biodiversity for the entire country. And so that's a big reason why we wanted to protect it. So let's do that.
(END VIDEOTAPE)
NEWTON: Now to watch the full half hour special, go to CNN.com and search for "Call to Earth: Conservation Rises." And we'll be right back.
(COMMERCIAL BREAK)
[16:51:41]
NEWTON: Companies in the U.S. are making contingency plans as the dock workers strike enters its third day now. Now it shut down the largest
container ports on the Atlantic and Gulf Coast. As a result retailers like Levi's and Costco say they're depending on West Coast ports and air
freight. The shipping lines say they are open to new talks with the Longshoremen's Union. Time, though, as you can imagine, of the essence, a
prolonged strike could upend global supply chains. The White House is urging the ship lines to make a fair offer. Transportation Secretary Pete
Buttigieg said an agreement is within reach.
(BEGIN VIDEO CLIP)
PETE BUTTIGIEG, TRANSPORTATION SECRETARY: Well, we think there is a deal to be had. We have been engaging the parties on all sides, urging them to come
to the table and get to a deal. We think that economically they are not so far apart that they can't bridge these differences, especially when you
consider that this is a very, very profitable industry.
(END VIDEO CLIP)
NEWTON: Vanessa Yurkevich is in New York for us.
I mean, look, this is worrying so many people right across the United States wondering what do I need to get in the house or what won't I be able
to get if this goes on for a few more weeks? What specifically can the White House do, though, in trying to facilitate these negotiations?
VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Well, ultimately, President Biden does have the power to end this strike if he
wanted to, through something called the Taft-Hartley Act. But he has made pretty clear as of right now that he doesn't plan to use that power.
Instead, he is encouraging the two sides, USMX, which represents the ship lines and the ILA union, to come back to the negotiating table people to
try to hammer out a deal.
The only problem with that is you can encourage all you want, but it's really up to these two sides to say, OK, we will come and we will
negotiate. USMX has said that they've made an offer of 50 percent in wage increases over the six-year contract. The union wanting something closer to
over 70 percent, close to 77 percent in wage increases. And stronger language in the contract around automation.
But the USMX alliance saying that they're not going to come back to the table with preconceived demands. So essentially you kind of have a
stalemate between the two sides. But as you heard Secretary Buttigieg saying, they're really behind the scenes really encouraging the two sides
to come together to make a deal. But ultimately, unless both parties are willing to negotiate in either direction, the only other power is President
Biden and that Taft-Hartley Act. And as of right now, he's not prepared to use that -- Paula.
NEWTON: Yes, that would be frowned upon by labor and likely not a good idea a little bit more than a month out from an election.
How far are we from the tipping point, Vanessa, to where the impact on the economy will really start to bite for consumers?
YURKEVICH: Yes, we've seen a lot on social media today about people saying, oh, my gosh, there's no toilet paper, there's no water. But this is pure
panic buying. American consumers should not be feeling anything right now. They shouldn't be seeing higher prices. They should not be seeing
shortages.
For example, Paula, toilet paper, 90 percent is manufactured right here in the United States, the other 10 percent in Canada and Mexico, and that
comes in by truck and that comes in by train, not from ship. Other items that you should that are not going to be impacted by this strike is oil and
gas. And any hurricane relief.
[16:55:01]
That's already here in the United States, not coming in from abroad. But if this strike drags out, Paula, for more than a week, we could start to see
some shortages of perishable items. So think fruits and vegetables, particularly bananas. We import 100 percent of the bananas that we consume,
and about half of that comes in through the ports that are being struck right now. Also, chocolate, alcohol, furniture, we import a lot of that.
So as this strike drags on, we could start to see shortages and then ultimately results in higher prices. So then you're starting to be
concerned about inflation again and price gouging, something that the Biden administration says they're keeping a keen eye on to make sure that no one
is potentially taking advantage of this port strike if it extends past a week -- Paula.
NEWTON: Yes, it would be certainly a shock to the economy that no one needs at this point in time.
Vanessa Yurkevich, for us, thanks so much. Appreciate it.
Coming up, we will have the final numbers from Wall Street right after break.
(COMMERCIAL BREAK)
NEWTON: So U.S. stocks slipped ahead of Friday's job report. The Dow closed 184 points lower. It was off its lows, though. And the S&P and the Nasdaq,
as you can see there as well, finished in the red, but not by much. Investors keeping a close eye now on the Middle East and the threat of
Israeli strikes on Iran is driving oil prices higher. Both West Texas Intermediate and Brent Crude up more than 5 percent today. They're now
trading at well over $70 a barrel.
And keep in mind, though, that's still below their 52-week high of about $90 per barrel. But prices on oil have not increased that much, I will say,
in about a year now since we've had other crisis in the Middle East.
That is it for QUEST MEANS BUSINESS. I'm Paula Newton. "THE LEAD" with Pam Brown starts now.
PAMELA BROWN, CNN ANCHOR: Welcome to THE LEAD. I'm Pamela Brown in for Jake Tapper.
This hour, we've rarely seen her on the campaign trail this election, but now Melania Trump is publicly taking a political stand. One that puts her
at direct odds with her husband. Plus it's a battleground blitz today with both candidates rallying in states that will be crucial to winning in
November.
For Donald Trump, it's an event focused on inflation and rising prices. And for Harris, it's an unlikely duo. In the next hour, she'll be joined by Liz
Cheney, the daughter of former Republican vice president Dick Cheney, and the former number three in the Republican leadership in the House.
END
