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Quest Means Business

Israel's Supreme Leader Warns Israel; US Adds 254K Jobs in September, Far More than Expected; Port Workers End Strike, Return to Work Today; Israel Escalates Airstrikes In Beirut's Southern Suburbs; Biden Discourages Israel From Striking Iranian Oil Fields; Red Lobster's New CEO Tries To Start A New Chapter. Aired 4-5p ET

Aired October 04, 2024 - 16:00   ET

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

[16:00:15]

PAULA NEWTON, CNN INTERNATIONAL HOST: Wall Street closing out the week on a high note and why not, given those strong US employment numbers. The NASDAQ

if you think that was impressive, you should have seen the NASDAQ up more than one percent. Those are the markets and these are the main events.

President Biden, yes, he is taking that victory lap as that critical pre- election Jobs Report blows past expectations.

Iran's supreme leader issues a warning to Israel as IDF strikes continue to pound Beirut.

And US restaurant chain, Red Lobster, just emerged from bankruptcy. Its new 35-year-old CEO explains how he plans to turn it around.

Live from New York, it is Friday, October 4th. I'm Paula Newton in for Richard Quest and this is QUEST MEANS BUSINESS.

And a very good evening to everyone.

Tonight, US President Joe Biden says the economy, it is holding up well after a surprisingly strong September Jobs Report. The US added just over a

quarter million jobs last month, look at that. It is the strongest Jobs Reports since January and a big increase from recent months.

Economists were expecting only 140,000 jobs, a number more in line with what we've seen this summer.

Now, President Biden seized the opportunity as you might expect to make a surprise appearance at the White House press briefing room. He in fact said

the strong job numbers are assigned, his policies are working. Listen.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: And from the very beginning, we were told time and again that the policies we were pursuing, we've put

forward weren't going to work, make things worse, including some in the other team who are still saying they're going to make things worse.

But we've proven them wrong.

(END VIDEO CLIP)

NEWTON: Julia Chatterley is in New York still recovering from the surprise of these numbers. It was our very own October surprise.

I mean, what did you learn when you dug into those numbers a little deeper?

JULIA CHATTERLEY, CNN INTERNATIONAL ANCHOR, "FIRST MOVE": They would definitely a wow moment and to your point, actually about President Biden,

that was the first Q&A he has ever done from the briefing room in this presidency, so he was certainly caught off garden and excited about it as

well.

Yes, far more jobs added in September than we expected. I immediately got texts and a couple of phone calls from people saying hang on a second, is

this going to be revised lower next month? And there is a good argument to be made that it might be, but we also got revisions for the prior two

months and you showed that in that chart. We actually added an additional 72,000 over the prior two months, so it almost looks like a mini

acceleration that we are now seeing in the jobs market.

We saw the unemployment rate actually fall despite more people coming into the workforce. And this of course is before the real impact of that half a

percentage point rate cut actually feeds into the system, beyond the feel- good factor that you would expect.

I think this data is consistent with another quarter of a percentage point rate cut, but hey, this is as good as it gets for the White House and the

Harris campaign one month before a presidential election. And clearly, as you said, they were seizing the day today.

NEWTON: They certainly did and we will wait to see what Federal Reserve says about this because so far that landing has been flawless, not just

soft.

CHATTERLEY: Yes.

NEWTON: These numbers are like a loudspeaker and a lot of noise that we heard on the economy this week. I mean, we have the pause in the

dockworkers' strike. We had the spike in oil prices.

I mean, what do you think this portends for the very crucial month to come before this US election?

CHATTERLEY: It is such a great question.

We had and we are looking at this month expected to be pretty simple and pretty easy, obviously that was a far stronger surprise than we were

expecting. Then next month was likely to be murky.

The impact of Hurricane Helene, particularly on the southern states that have been worst affected, the port workers' strike, which we now think is

resolved, the rank and file of course still have to vote on this provisional deal. We've also got Boeing machinists striking as well, and

that's around 30,000 workers.

So next month could be far more difficult to assess and to analyze and the Feds obviously has got to look through some of those difficulties when they

get to it.

I will reiterate again, I still think we are headed for a quarter of a percentage point cut.

Oil prices, Paula, is something different because I think up until now, the markets and oil certainly investors have been focused on what is going on

with geopolitical risk. Oil prices up what -- eight to 10 percent this week. It is still significantly above the highs that we've seen over the

past year, but there are a lot of people saying if Israel does decide to specifically target Iranian oil facilities, it could add another $10.00.

I think there is a lot of relative calm actually, compared to what there could be in the oil markets, because investors have been caught off guard

before, they've taken positions, then oil prices have come back and they've been on the wrong side of the trade.

So perhaps, they are underestimating the risks surrounding events, but until they happen, they won't react. But, hey, if we do see a significant

spike in oil prices, then that feeds into gas prices. It is something that the White House doesn't want headed into the presidential election. So it

could be a lively 32 days.

[16:05:22]

NEWTON: It is certainly something that we are all going to be paying attention to you -- and you and what has gone on in that geopolitical risk

because so far, it has not really materialized the way my expected it to.

CHATTERLEY: Right.

NEWTON: Julia, Chatterley for us, thanks so much. Appreciate it.

CHATTERLEY: Thank you.

NEWTON: Now Vice President Kamala Harris is due to appear at a campaign rally next two hour. She will surely toss the latest job numbers while on

the campaign trail this week. It is one of the last big reports as Julia was just saying before Election Day, we will have another look at inflation

when the Consumer Price Index comes out next week.

Then there is third quarter GDP at the end of the month. Other than that, well, the next Jobs Report again, as Julia outlined, comes out November 1st

and then Americans head to the polls four days later.

Now, the Harris campaign get that good news last night as well when as we were saying, the US dockworkers strike ended, or at least paused after just

three days. An extended strike, as we've been telling you, would have seriously disrupted the economy. Instead, the longshoremen's union reached

a tentative deal amounting to a 62 percent raise over a six-year contract.

Now, Vice President Harris applauded the agreement saying, our economy works best when workers share in record profits.

William Lee is the chief economist at the Milken Institute, and I am wondering if this is all that meets the eye. We could just take the numbers

as is. More evidence that despite rumors to the contrary, right, this is a very healthy economy. I am wondering what you saw in all of this?

WILLIAM LEE, CHIEF ECONOMIST, MILKEN INSTITUTE: There is no question the stock market is cheering. It has taken away the fears of a recession, and

this is a very good market report.

But as a card carrying member of the dismal science, I have to say there are some clouds on the horizon and I want to make sure that audience sees

that.

One thing when I looked through the headlines, two-thirds of the job growth has been in hospitality, leisure, and social assistance and health care.

These are very low-wage paying sectors. So the jobs that are being created or not giving a lot of income to people who are getting these jobs. And

that has been one of the problems that has plagued the Biden administration for the last four years.

The job growth has been in relatively low paying jobs and people are saying, I am barely making ends meet. I am having to do with two or three

jobs just to be able to pay all of my bills -- and that is something that seems to be persistent and this jobs report, it has been even more

amplified because as I said, two-thirds of the job growth has been in these low wage sectors.

NEWTON: It is such a good reality check that is based on the data. As you were speaking, we were just showing that the construction jobs were 25,000,

not enough for what the economy needs and as you said, for those good paying jobs that are going to lift people or keep people in the middle

class.

So I ask you, when it comes to politics and that all important consumer sentiment, why do you believe we have that divergence? Because if you look

at US consumer sentiment, it is split. You have Democrats feeling pretty good about the economy and then you have a majority of Republicans saying,

not so much.

Is that real? Are they feeling the effects of jobs a plentiful, but you've got to keep two of them to actually stay in the middle class?

LEE: I think everyone has been cautioning people to not take all the news on one side, and unfortunately, the politics have skewed the way people

look at the same set of data.

The numbers that came up came from two surveys. One is number of payrolls, number of jobs that have been created, but the other one is the number of

people that actually got these jobs. If you look at the Biden administration, for the last of -- you know, year-to-date, there have been

200,000 jobs being created on average, but only 76,000 people, new people getting employed, and having these new jobs.

That goes back to my story of people are having to get second and third jobs just to make ends meet. And that I think explains that split in the

sentiment survey that people are getting second and third jobs and saying, hey, I am working my tail off just to make ends meet and those are the

higher paying jobs in manufacturing and construction saying, hey, I am doing pretty well.

So I think -- I don't think it is along Democrat versus Republican lines that we are finding the split, but rather the type of jobs that are being

gotten by the various people answering the survey.

NEWTON: Yes. Interesting. And then one could certainly align with the other.

You have for months now have been predicting that in fact, white-collar jobs would really be at risk. Do you still believe that is true? Do you see

any robustness in these numbers or in the economy itself that will tell you that know those good paying jobs, if they are not here right now, those

white-collar jobs, they will stay, they will be well paying and they will increase.

LEE: I want to go back to the data again and even in this month's data, the professional services and office workers type jobs that are higher paying

barely grew. In fact, manufacturing jobs which are very high paying actually declined again.

[16:10:03]

Whereas as I said, all the jobs that were being created were in the restaurants, hotels, and social workers so these are in my mind, the lower

skilled white-collar and office type jobs that are being automated and replaced by technology and especially artificial intelligence.

NEWTON: And when we do that deep dive into the numbers there, do you believe that there is reason to expect that there is a depression in wages

right now?

I mean, President Biden, pardon me, former President Trump has continued to say that this influx of migration is depressing wages. Meanwhile, if you

look at what the Federal Reserve has written in its report, its actually said that immigration has actually lifted the economy somewhat. I mean,

what are you seeing in the numbers?

LEE: It has lifted the economy because more and more people are available to fill these low-paying jobs, which really wanting, because a lot of

people said, hey, I don't want to work this stuff, I want to go to get a nice office job that's relatively high paying and cushy. But those

unfortunately, entry-level jobs are being done away with by technology.

Immigration actually has allowed the economy to keep pumping at a three percent pace of growth, but unfortunately, a lot of the jobs have gone to

immigrants and a lot of American citizens now are saying, hey, I might actually consider these lower paying jobs just to get that second and third

job to make ends meet, and now, I am competing with them.

So there is an element of truth on both sides. Immigration has spurred growth in the aggregate, but in terms of competing with our US citizens, it

is absolutely true that more citizens are now wanting the jobs that are now going to the lower-paid immigrants.

NEWTON: And it goes a long way to explaining why the political picture is still so complicated a month out from the election.

William Lee, thank you so much. Really appreciate it.

LEE: Thanks.

NEWTON: Now, moments ago, Donald Trump spoke in the US state of Georgia with Governor Brian Kemp. It is their first face-to-face meeting since a

falling out over Georgia's 2020 election results.

Now the two of them were briefed on the damage from Hurricane Helene. Trump praised Governor Kemp's response in fact, and noted the devastation caused

by the storm. Listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP, FORMER PRESIDENT OF THE UNITED STATES: I have no doubt that whatever it can be done is got to be done, it is going to take time. It is

going to take a lot of effort and it is a very hard break-in situation.

We are going to go to North Carolina now and we are going to see some of our friends in North Carolina, some very good friends and they have just

been totally devastated. They've never seen anything like this.

But I want to thank everybody for being here and well, we have a big election coming up and if I am involved, I told the governor, if I am

involved, they are going to get the best treatment.

(END VIDEO CLIP)

NEWTON: Kamala Harris meantime, is expected to meet in the coming hours with Arab American and Muslim leaders in Michigan. She is trying to earn

their support as the conflict in the Middle East rages on and we have also learned that former President Barack Obama will campaign for Harris across

key swing states.

Harry Enten is in New York. You too are preparing for that big sprint to the election. I am not sure you've had a lot of work to do because the

needle has not really moved. I had been looking at it in battleground states, even though we've had a very big week of news.

So tell me where do we stand in this race right now, especially when we talk about the battleground states?

HARRY ENTEN, CNN SENIOR DATA REPORTER: Oh my goodness. This race has is steady, it is like traffic in New York City on Friday at 5:00 PM. You can

count on it, baby.

Look, you look nationally, Kamala Harris has perhaps a small lead over Donald Trump, right? We are talking about two, three points, but of course

that doesn't really matter because of course Hillary Clinton won the popular vote by a little bit more than two points and what did you see? You

saw, of course, that she lost that election to Donald Trump. You see our average of polls up there has Harris by a point. I could calculate an

average. I might get two or three.

But of course, this is all about the swing states, right? We're talking about those seven key battleground states, the three across the north,

Michigan, Pennsylvania, Wisconsin, those four across the sunbelt, Nevada, Arizona. You go Georgia, you go North Carolina, and what you see in those

states are just such tight races.

I mean, you know, looking right now at those New York Times/Siena College polls that recently came out, we are talking one or two-point races in

Wisconsin and Michigan.

The bottom line is this, historically speaking, this is the closest campaign that I have certainly ever covered and in fact, it is the closest

campaign -- I was looking at the polling data since 1964.

So it is the closest race over the last 60 years. You might see Trump up in a few of those swing states. You might see Harris up in a few of those

swing states, but the bottom line is, if you were to calculate it all together, the race to 270 electoral votes, maybe the slightest advantages

for Kamala Harris, but this is a race that has been so steady and one in which there is no clear leader.

NEWTON: And we've been hearing that for a while. I am glad to see that it is a close race and it is historically close. I was not born in 1964, I am

glad to report.

ENTEN: I never said you were.

NEWTON: Let's not go there.

So the issue though is what could move the needle, Harry? You know, we were just talking about those great economic numbers and that has been a weak

spot for the Democrats.

On the other hand, you know, this Hurricane Helene when we see what is going on there, what are those events that people are looking at right now

that voters, especially Independents and undecided may sway them in those key swing states?

[16:15:28]

ENTEN: So what percentage of the electorate is undecided? If you look at the polls, the average is about four or five points, okay. Four or five

points.

You ask those folks, what are their top issues? They say number one, the economy. Number two, they don't list the top issue, they simply don't list

one. This is not about issues for those swing voters, and this I think, of course is such of a difficult thing to probably try and understand is what

is actually going to move things?

Maybe it is the economy and Trump has had an advantage on the economy though it is one that has shrunk over time, but it is still an issue that

plays well to him.

I, looking back at the polling at this point, given that we only have a month to go, yes, there was good economic news that came out earlier today,

but it really takes a little bit of time for that economic news really to sort of funnel down the American electorate for them to fully understand

what is going on, what is cooking.

Even though we had a good Jobs Report earlier today, I don't think that is the type of thing that ultimately really moves the needle by a lot. But

given that we could be talking about tens of thousands of votes, that ultimately determine this race in those key battleground states, we spoke

about earlier, I certainly think the Harris campaign will welcome results like they got earlier today in that Jobs Report. Whether it is enough to

actually make her the winner? Well, if I had the answer to that, I wouldn't be on the screen with you. I would be out in Vegas casting a little bit of

money on this particular race.

NEWTON: You're loving being on screens, I mean, come on, Harry.

ENTEN: Of course I do. I love being on a screen.

NEWTON: No, I said with me.

ENTEN: I love both.

NEWTON: Harry, you have yourself a great weekend.

ENTEN: You as well.

NEWTON: And yes, we hope something moves the needle. appreciate it.

Still to come for us, a show of defiance from Iran as Israel ramps up airstrikes on Hezbollah targets in Lebanon. We will have a live report from

Beirut, that's next.

(COMMERCIAL BREAK)

NEWTON: To the Middle East now where Iran's supreme leader is warning that his country could attack Israel again, if needed. Ayatollah Ali Khamenei

led a rare prayer sermon in Tehran earlier, he called Iran's missile attack on Israel on Tuesday completely legal and legitimate.

Meantime, Israel is escalating airstrikes on Hezbollah targets in Beirut. The Lebanese Health Ministry says 1,400 people have been killed in Israeli

bombings in less than three weeks.

[16:20:10]

Ben Wedeman is in Beirut on what must be another incredibly tense evening.

Ben, what more are you learning about exactly what Israel is targeting and how widespread their operation may be in the coming days.

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, what we are seeing is that they continue these strikes on the southern suburbs. They

claimed, for instance, to have killed the head of Hezbollah's communications unit. We haven't seen any confirmation from Hezbollah on

that claim and this evening, we've heard an Israeli drone flying very low over the southern suburbs of Beirut, indicating that tonight will be

another night of Israeli airstrikes on the southern part of the city.

But as we've seen, they do not restrict themselves to targets in the southern part of the city, they are also hitting other areas as well.

As far as the situation in the south goes, they continue their heavy bombardment of a variety of areas in the south. And today, we heard yet

again from the Arabic spokesman for the Israeli military who on Twitter now known as X put out an evacuation order to more than 30 southern Lebanese

towns and villages.

The total that have received these warnings is around 110 at this point indicating that a much larger ground invasion is planned than these so-

called limited localized and targeted raids that we've been seeing until now.

And of course, all of this action in the south is leading many people to flee that area, more than a million at this point.

Now today, we were in the southern city of Sidon, where we met some people, Syrian refugees and migrant workers who have fallen through the cracks of

the effort to take care of the displaced in Lebanon.

(BEGIN VIDEOTAPE)

WEDEMAN (voice over): They are safe or safer, for now.

Syrian families, refugees, and migrant workers fled their homes near the border with Israel, now camped out in a parking lot in the southern

Lebanese City of Sidon.

Ibrahim, an agricultural worker, walked with his family for more than 12 hours to get here, but his odyssey far from over.

(IBRAHIM speaking in foreign language.)

WEDEMAN: "He escaped from war," he says and "We came here and war started. We don't know where fate will send us."

Some say they are afraid to return to Syria. Others just can't. "What can we do?" Yaser (ph) asks me.

(YASER speaking in foreign language.)

WEDEMAN: "Even if we wanted to return to Syria, we can't pay the fair."

Early Friday, Israeli planes bombed one of the main crossings between Lebanon and Syria effectively closing a route through which Lebanese

officials say more than 360,000 Lebanese and Syrians have fled in the last two weeks.

Here, problems are more immediate.

WEDEMAN (on camera): They have no bathrooms. Many of the children and the elderly need medical attention. They're not getting that.

(ARLA ABDA SALEM speaking in foreign language.)

WEDEMAN (voice over): "Lots of the women go behind the cars for privacy," says Arla (ph), "It is a matter of dignity. We care about our dignity, just

like you."

The Lebanese government is struggling to take care of its own and has opened schools and other buildings for the displaced, Syrians are not a

priority.

Abda Salem's (ph) greatest worry is his daughter, Maleshem (ph), who has a brain tumor and can barely walk.

(ARLA ABDA SALEM speaking in foreign language.)

WEDEMAN (voice over): "It has been 15 days," he says "Since she took the medicine, the nutrition she needs," so they wait until help comes or until

this war ends.

(END VIDEOTAPE)

WEDEMAN (on camera): And there doesn't seem to be any sign that this war is going to end anytime soon. In fact, it looks like it is ramping up.

Now this evening, the Israeli -- the Arabic spokesman for the Israeli military also put out another warning to rescue crews in South Lebanon,

warning them if they "cooperate" with Hezbollah fighters, they could be targeted.

The worry is now that Israeli drones and other aircraft are going to be targeting ambulances in the south of Lebanon, yet another dangerous for the

people who are still down in that part of the country.

NEWTON: And another long night ahead, 11:24 PM in Beirut, Lebanon. Ben Wedeman for us, appreciate the report.

US President Biden says Israel should think twice about striking Iranian oil fields in response to Tehran's missile attack. Here is what he told

White House reporters.

(BEGIN VIDEO CLIP)

BIDEN: The Israelis have not concluded what they're going to do in terms of a strike. That's under discussion.

[16:25:06]

I think there -- if I were in their shoes, I would be thinking about other alternatives than striking oil fields.

(END VIDEO CLIP)

NEWTON: Michael Oren is a former Israeli ambassador to united states and he joins us now. Good to have you with us.

So what do you think those other options are? What do you believe the Israeli government is looking at this point in time?

MICHAEL OREN, FORMER ISRAELI AMBASSADOR TO UNITED STATES: Well, let me first correct an impression I think made by your reporting on the

situation.

To listen to CNN, you think that Israel just wakes up and keeps on attacking Lebanon over and over again. Not once did you mention the

hundreds of rockets that have been fired by Hezbollah onto Northern Israel.

My family are in bomb shelters tonight. That's not mentioned anywhere and there were drone attacks from Iraq, all sponsored by Iran.

NEWTON: Ambassador Oren, we have live, we have many reporters --

OREN: You've got to get the data --

NEWTON: We have many reporters in Israel and we've been reporting on that all day long.

OREN: I didn't hear it.

NEWTON: This wasn't --

OREN: We didn't hear it. We didn't hear it.

NEWTON: Please, I invite you to listen --

OREN: And Hezbollah is very --

NEWTON: I invite you listen to us -- I invite you to listen to us all day long and to go on our website. We have lots of information and more

importantly --

OREN: Didn't hear it.

NEWTON: -- reporters, journalists on the ground in Israel who are in bomb shelters, like everyone else right now, when those sirens call.

OREN: I want your reports, I can do it now. An answer to your question, an answer to your question, Israel is going to do whatever it needs to do to

defend itself.

I understand that President Biden has his interests, interests of the united States, interests of a White House that is in the middle of a

presidential election. But we are fighting a war of national sovereignty.

And if that is not getting through to CNN, that has to get through. What's at stake here is the survival of the country. Simple as that, being

attacked on seven different fronts by Iran and Iran backed proxies and that has got to stop.

And Israel will take whatever measures necessary to defend itself.

NEWTON: Understood.

OREN: Period.

NEWTON: Understood, Ambassador. But if you're in the Israeli government right now, and of course, any kind of escalation here endangers the

youngest generation in Israel, you know that and I know that.

So what is prudent at this point -- and I will take the Prime Minister Netanyahu at his word. This is about at the end of the day deterrence so

what is Israel best placed to do right now in terms of retaliating against Iran?

OREN: Very simply, in the Middle East, the best way to de-escalate is to escalate, to convince the Iranians and their proxies that further attacks

on the state of Israel will result in exacting -- then exacting or having to pay a prohibitive, very painful price and that cannot be done by

symbolic acts. That has to be done by a very substantive response to Iranian and Iranian proxy attacks against us.

Whether it means forcing 200 villages in the south of Lebanon to evacuate because it is beneath those villages that Hezbollah has placed its

formations, its tunnels, its bunkers, and its rockets, we didn't put them there, Hezbollah did.

If their ammos are being used in Southern Lebanon to transport terrorists, we didn't put them in ambulances, Hezbollah did. Hezbollah put its rockets

and its bunkers in civilian neighborhoods in Beirut, we didn't put them there, Hezbollah did.

NEWTON: Ambassador Oren, Israel is a very strong democracy which holds itself to the highest of morals and moral behavior in war. What we are

talking about here, and what I asked you was what Iran would do. But if you want to move on to another question, then I ask you, given what has gone on

in Gaza and given the fact that Hamas is not completely destroyed.

If you continue with a very aggressive campaign which you say Israel must take forward and bring to Hezbollah's doorstep, can you actually defeat

Hezbollah when Hamas still does not look like it is defeated?

OREN: It depends on how you define defeated. Hamas does not threaten Israel the same way it had threatened Israel on October 7th, that's degraded. If

you're asking the obvious question, could Israel defeat the idea of Hamas, they can't. No one can defeat the idea of ISIS or the Muslim Brotherhood or

al-Qaeda. ISIS this is still running around the Middle East, but the United States defeated it militarily.

And I don't think the goal in this war is to defeat Hezbollah. The goal in the war is to drive Hezbollah away from the northern border so that 100,000

Israelis can go back to their homes and live in security.

The goal of the war is to deter Hezbollah and Iran from further attempts to destroy us. That is what they said, the supreme leader came out again,

every day, they came out, the goal of this country is to destroy my country, Iran.

We are not saying we are going to destroy Iran, we are not going to say we are going to destroy Hezbollah. We certainly don't want to destroy Lebanon.

We want peace with Lebanon.

It is a very unbalanced, how should we say, asymmetrical situation, but Israel has to do what it has to do to defend itself and to answer your

original question, I don't know what Iran is going to do in reply, but that can't be our major consideration.

Our major consideration is what kind of action can Israel take that will convince Iran to stay in Iran, deter Iran from further --

NEWTON: It can be a consideration if you don't believe that it will leave Israel safer in the end, which is why obviously this is strategic.

I do want to ask you the fact that the president made a very pointed declaration that Benjamin Netanyahu, the prime minister should be grateful

to the United States of everything it has done so far.

[16:30:14]

I mean, the Prime Minister hasn't exactly shown a lot of gratitude. He hasn't even spoken to the President in weeks. Do you think that

relationship is still intact? And do you believe Israel will tell the United States what it's going to do vis-a-vis Iran before it actually

carries it out?

OREN: For the point being, I'm not a spokesman for the government. I'm not in the government right now. I'm a private citizen, and as far as I know

that the President and the Prime Minister spoke last night, and so that's not true. And it was a -- how should I say? A substantive conversation, my

sources tell me. We deeply appreciate, I, as citizens of Israel, deeply appreciate everything that President Biden, his administration has done for

Israel.

But we are in different states. United States is not threatened with national extinction by Iran and Hezbollah. We are. United States is far

from the Middle East. We are not. We're in Iran's backyard and not -- aren't just cannot always be constant. They just can't. So, the great

degree possible, we will try to coordinate with the United States to inform the United States, but it always -- it cannot be.

We're in very -- we occupy very, very different universes, very different universes. And Israel, again, will have to operate in our reality which is

very different than America's and do what it takes to survive in a very, very tough neighborhood.

NEWTON: Ambassador Oren, we invite you back to try and explain exactly some of the motivations that will go on in a very complicated story in the weeks

to come. Appreciate it.

And we'll be right back.

(COMMERCIAL BREAK)

NEWTON: The latest U.S. jobs report reassured investors about the strength of the economy. The NASDAQ closed more than one percent higher. What a good

Friday there. The Dow and S&P also gained on the day as you can see now. The report showed wage growth is outplacing inflation up point-four percent

last month from August. The higher standard of living means people may have more money to spend, which is also good news for the economy.

[16:35:05]

Now a bump in spending could also help out restaurants like Red Lobster. The seafood chain has had a turbulence year to say the least, entering and

exiting bankruptcy, closing more than 100 restaurants, laying off thousands of workers. Red Lobster is hoping their young, new CEO will help right the

ship.

Damola Adamolekun started last month. The 35-year-old. Was formerly CEO of the chain P.F. Chang's. He sat down for his first interview with CNN's

Nathaniel Meyerson. Nathaniel, I'm really interested to see what he told you. I will point out that I will -- been going to Red Lobster longer than

he has been alive. So, please do tell, what's the plan?

NATHANIEL MEYERSON, CNN BUSINESS REPORTER: So Paula, this was a lot of -- a lot of fun. And one of the main things that we talked to him about was the

endless shrimp deal. Now the endless shrimp deal, if you -- if you remember last year is $20.00 endless shrimp and it really was a -- just a huge

disaster for the company. They lost $11 million on the deal, one of the factors that drove them into bankruptcy.

So, take a listen to what he had to say about endless shrimp and his turnaround plan.

(BEGIN VIDEO CLIP)

MEYERSON: When you saw endless shrimp, you know, what did you think?

DAMOLA ADAMOLEKUN, CHIEF EXECUTIVE OFFICER, RED LOBSTER: So, that's a very expensive product to give away endlessly. When you have endless shrimp and

people are coming in and sitting down at the table and eating for hours as much time as they possibly can. You stress out the kitchen, you stress out

the servers, you stress out the host. People can get a table. It creates a lot of chaos and you saw a lot of that.

Food quality is very good at Red Lobster and has been since its inception. Now the menu has gotten too big, so we're going to reduce the menu, but in

a very intelligent way.

MEYERSON: Do you think you -- we -- you guys, might need to close more restaurants?

ADAMOLEKUN: We intend to be done closing restaurants. Intend to grow from here.

MEYERSON: Grow from here.

ADAMOLEKUN: In terms of the business, right? There's going to be investments in the product that will take time. Infrastructure investment

takes time. Technology investment takes time. There's 545 restaurants. So, fixing every broken HVAC and every broken -- every torn carpet and every

chair that needs replacing will take time, but the impact should be felt right away.

(END VIDEO CLIP)

MERYSON: And, you know, Paula, you think about the turnaround plan here, it's not really a massive, you know, overhaul. He's really calling for

changing the lighting, changing the menu, changing the decoration, not kind of, you know, blowing up the company. So, I think one big question that

analysts have is, is this going to be big enough? Is this a big enough turnaround plan to get, you know, particularly Millennials like Adamolekun

himself, 35 back into Red Lobster.

That is the generation that Red Lobster needs to appeal to. And are these kind of smaller changes going to make a big enough difference?

NEWTON: So, I will confess in a very good way, that Red Lobster was my dad's favorite restaurant. Why is that not enough? I know the -- you need

to appeal to that younger generation, but why isn't that enough?

MEYERSON: Well, I think because -- I mean, you're -- as you say, your father, that was his favorite restaurant, but that maybe is that his

daughter or his, you know, his granddaughter's favorite restaurants, that is not necessarily the case. So, Adamolekun told me that 40 percent of

their customers are older than 55 and that is a much bigger share than its rivals, you know, particularly Olive Garden here in the U.S.

Olive Garden has done a really good job appealing to millennials. So, what -- the big challenge for Red Lobster is to hold on to folks like your

father, but also kind of attract the next generation.

NEWTON: Got you. Nathaniel, we'll wait and see if it works out. Appreciate it. Have a good weekend.

Now, the past 12 months have been the hottest on record. As we've been reporting here, temperatures rise. The world also faces a water security

threat, a surge in algae blooms. Today's big -- Think Big explores how ultrasonic technology is helping to protect both nature and public health

in Dubai.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE (voice-over): From wildlife to greenery, there is a lot to see by this lake in Dubai, but it takes a sharp observer to notice that

this place is also home to cutting edge water treatment technology.

YOUSEF YOUSEF, CHIEF EXECUTIVE OFFICER, L.G. SONIC: What you see over there is the floater, and below it is where the magic is happening. Under the

buoy, you will have four ultrasonic transmitters in different directions to make sure the whole lake is treated.

UNIDENTIFIED FEMALE (voice-over): Powered by solar panels. These buoys work to control algae by emitting ultrasonic waves. These waves cause algae

cells to sink to the bottom of the water, blocking their access to sunlight, which is essential for their growth.

YOUSEF: The ultrasound will create. A sound barrier on the surface of the lake, which will avoid the algae to float up.

UNIDENTIFIED FEMALE (voice-over): Algae tend to thrive in hot, sunny environments, places like Dubai, but it is a global issue.

[16:40:00]

Almost 13,000 harmful algae blooms have been recorded over the past 30 years, posing risks to both human health and ecosystems.

ARASH ZAMYADI, SENIOR LECTURER OF CIVIL ENGINEERING, MONASH UNIVERSITY: They are observations of these fatalities for humans and for animals. The

widest press across the planet, there's not a single continental that doesn't have cyanobacteria bloom problems at the moment.

UNIDENTIFIED FEMALE (voice-over): Traditionally, the solution to control this algae overgrowth would be chemicals. But L.G. Sonic claims their

solution lowers the impact on the ecosystem by adapting their programs to real time water conditions. The company says the technology also reduces

costs when compared to chemical treatment.

YOUSEF: We are about three times cheaper than chemicals in large water surfaces.

UNIDENTIFIED FEMALE (voice-over): Experts say that L.G. Sonic are one of the few in the market for now.

ZAMYADI: Based on my knowledge, are two commercial providers and some efforts to come up with better ones for large scale and water bodies at

really, really large scale.

UNIDENTIFIED FEMALE (voice-over): Today, the company is present in 69 countries, treating water for human consumption, irrigation and in power

plants.

YOUSEF: Also in the near future, we are opening our production facilities in the United Arab Emirates to have a gateway to the Middle East and to

Africa later on.

UNIDENTIFIED FEMALE (voice-over): As the world's water supply faces increasing pressure from rising global temperatures, Yousef believes it's

crucial to protect regions where fresh water sources are already limited.

YOUSEF: The climate here is very hot. There is a lot of sun, so every drop of water has a high value. It is our job to clean the surface weather

around the world.

(END VIDEOTAPE)

NEWTON: And that is QUEST MEANS BUSINESS for this Friday. I'm Paula Newton. Up next, Richard Quest, World of Wonder.

(COMMERCIAL BREAK)

END