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Quest Means Business
Trump Meets With NYC Mayor-Elect Mamdani At The White House; Zelenskyy: One Of The Most Difficult Moments For Ukraine; Fears Of Record A.I. Investments Fueling Market Bubble Persist; Gen Z Embraces "Dumbphones: To Break Tech Addiction; New Bond Street Named World's Most Expensive Retail Spot. Aired 4-5p ET
Aired November 21, 2025 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00]
ZOHRAN MAMDANI (D), NEW YORK CITY MAYOR-ELECT: And that's why making buses fast and free is a central piece of our campaign.
DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES OF AMERICA: Did you -- well, but I know, that's a lot quicker too.
No, I mean, he is working very hard, for him to be -- it is a long -- it is a very long -- that's a very long drive. I will stick up for you. You know,
the plane takes you 30 minutes and driving takes you a long time.
REPORTER: And Mr. President, I was wondering if you could clear up some confusion around a "Washington Post" report. There is this explosive report
that the Coast Guard is no longer going to characterize swastikas and nooses as hate symbols. DHS called that a lie and fake news. Can you clear
up --
TRUMP: I don't know anything about it. When was this written?
REPORTER: Yesterday.
TRUMP: Well, look, the Coast Guard is an incredible group of people. I know them very well. I just ordered a lot of new Coast Guard cutters. Beautiful.
The most magnificent ship. They look like yachts with lots of guns on them. So, I don't know. I haven't seen any report like that, but certainly, we
want them to remain a great force, and they are.
REPORTER: Mr. President, and you did the peace in all the nine months --
TRUMP: Yes.
REPORTER: -- around the world. I would like to ask Mr. Mamdani, you've accused the U.S. government of committing genocide in Gaza, while President
Trump was working on peace.
Why? Why that?
MAMDANI: I've spoken about the Israeli government committing genocide, and I've spoken about our government funding it and I shared with the President
in our meeting about the concern that many New Yorkers have of wanting their tax dollars to go towards the benefit of New Yorkers and their
ability to afford basic dignity, and what we see right now is we are in the ninth consecutive year of more than 100,000 school children being homeless
in our city.
And there is a desperate need not only for the following of human rights, but also the following through on the promises we've made New Yorkers and I
appreciated the meeting we had and the work that we can do.
REPORTER: But do you agree that President Trump did do the peace and worked hard to make the peace, because he worked hard to do the peace in the
Middle East and everywhere. Do you agree with that?
MAMDANI: I appreciate all efforts towards peace and I shared with President Trump that when I spoke to Trump voters on Hillside Avenue, including one
of whom was a pharmacist, that spoke about how President Trump's father actually went to that pharmacy not too far from Jamaica Estates, that
people were tired of seeing our tax dollars fund endless wars.
And I also believe that we have to follow through on the international human rights and I know that still today, those are being violated and that
continues to be work that has to be done no matter where we are speaking of.
REPORTER: Thank you, Mr. President. Do you view the mayor-elect as the true leader of the Democratic Party? And do you think Leader Schumer or Leader
Jeffries have to follow his lead?
TRUMP: Well, look, I hope they have great leaders. This is a man that right now, I think is focused on New York City. I really think he has a chance to
do a great job. We are going to help him. But I really think he has a chance to do a great job.
But I will let you answer that. Do you consider yourself the leader of the Democrats? I think it is more appropriate for him.
MAMDANI: I consider myself the next mayor of New York City, and I keep my horizons firmly on New York City and I appreciate the meeting with the
President, which focused, again on the five boroughs and whether New Yorkers could afford to live there.
TRUMP: By the way, being the mayor of New York City is a big deal.
I always said, you know, one of the things I would love to be someday is the mayor of New York City. Being the mayor of New York and especially now
because I think you're really at a turning point one way or the other. It could go great, or it can go in a different direction and I think you
really have a chance to make it great.
I appreciate you.
REPORTER: Mr. President, you said you love New York City. Mr. Mamdani, does New York City love President Trump?
MAMDANI: New York City loves a future that is affordable. And I can tell you that there were more New Yorkers who voted for President Trump in the
most recent presidential election because of that focus on cost of living and I am looking forward to working together to deliver on that
affordability agenda.
TRUMP: Got a lot of -- I got a lot of votes.
One more go ahead, one or two more. Go ahead.
REPORTER: I can --
TRUMP: I will tell you, the press has eaten this thing up. You know, I've had a lot of meetings with the heads of major countries. Nobody cared. This
meeting that you people have gone crazy, you know, outside, you have hundreds of people waiting. This is just a small little group.
For some reason, the press has found this to be a very interesting meeting. The biggest people in the world, they come over from countries nobody
cares, but they did care about this meeting and it was a great meeting.
Go ahead.
REPORTER: Yes, Mr. President. I was going to ask you exactly that. Why do you think there is so much more, you know, so much excitement around this?
Why they think this is so important.
TRUMP: Because I think he is different. All right, I think he is different. And that can be a very positive way, but I think he is different than, you
know, your typical guy, runs, wins, becomes mayor maybe and nothing exciting. Because he has a chance to really do something great for New
York.
New York is at a very critical point, and he does need the help of the federal government to really succeed. And we are going to be helping him.
But he is different than, you know, your average candidate.
Hey, he came out of nowhere. I said, he has a great campaign manager standing over there. He came out of -- he came out of nowhere. What? You
start off at one or two? And then I watched. I said, who is this guy?
He was at one and he was at three. Then he was at five, then he was at nine. Then he went up to 17. I said that's going a little bit interesting.
Right?
And then all of a sudden he wins a primary that nobody expected he was going to win. That's a great a great tribute.
[16:05:10]
I mean, it is an amazing thing that he did.
MAMDANI: And I will just add -- also, I will just add thing to what the President said is -- one thing I also appreciated is in our meeting to
appreciate a portrait of FDR and the incredible work that was done with the New Deal, and also in thinking about what it can look like when the federal
government and New York City government work together to deliver on affordability, it can be transformative.
TRUMP: You know, we have a great portrait of FDR that I found in the vaults that was missing for years. I found it, and I put it up. He is a Democrat,
to the best of my knowledge. He is a Democrat. And when the mayor saw that portrait, he said, sir, do you mind if I have a picture taken by that
portrait? It is an amazing portrait.
MAMDANI: It is.
TRUMP: I hope the picture comes out good, but it is an amazing portrait in the Cabinet Room, so he is a big fan of the New Deal, I guess and of FDR.
Yes.
REPORTER: Mr. President, you said that you both spoke about crime.
TRUMP: Yes.
REPORTER: There are many police officers that come off the rolls at the end of this year in New York City. Are you going to allow those police to be
replaced with police officers, actual cops, and are you going to require that that happens? Would there be some consequences?
TRUMP: Well, I hope it happens. But again, that's going to be ultimately the mayor's decision.
REPORTER: What's your answer?
TRUMP: Is that I look forward to delivering public safety with the NYPD. And I've said over the course of our campaign that we have the number of
police officers today. They are the ones --
REPORTER: What is that number?
TRUMP: That's budgeted about 35,000 headcount. And I think the key thing is that we have to make it easier for police to focus on police work, not ask
them to respond to 200,000 mental health calls a year.
REPORTER: So is that a reduction from what you're at right now, or are you committing to maintaining the same level of cops?
MAMDANI: I've committed over the course of the campaign to maintaining the 35,000. That's the headcount that we had through the campaign.
REPORTER: And not replace them with caseworkers or social workers?
MAMDANI: No, I've said that's the headcount that we want. What we need to do is make sure they can focus on serious crime.
TRUMP: And he just retained a great police commissioner, I believe. Right?
MAMDANI: Yes. We did, Commissioner Tisch.
TRUMP: You did. If the newspapers are correct.
MAMDANI: That one they are correct about.
TRUMP: He retained I think somebody that is a good friend of some of the people in my family, of Ivanka, and they say she is really good, really
competent and he just retained her, so that's a good sign.
REPORTER: Are there still topics that you see the two of you disagreeing on in the future? And do you think you'll have more meetings like this?
TRUMP: There will be topics that we disagree on. I think we will probably come to a conclusion. And, ultimately he will convince me or ill convince
him, you know, it is for the good of New York.
Ultimately, it is for the good of New York. I don't care about affiliations or parties or anything else. I want to see if this city could be
unbelievable, if he could be a spectacular success, I would be very happy.
REPORTER: Do you think you guys will meet more in the future?
TRUMP: Still?
REPORTER: Do you think you'll meet again in the future? You know throughout the administration?
TRUMP: I think we will. I think we will. I hope we do. I enjoy the meeting. We had a great meeting.
Please --
REPORTER: Mr. President, Republican Elise Stefanik has campaigned multiple times by calling Zohran Mamdani a jihadist. Do you think you're standing
next to a jihadist right now in the Oval Office?
TRUMP: No, I don't, but, she is out there campaigning and you know, you say things sometimes in a campaign. She is a very capable person. But you
really have to ask her about that. But I don't particularly, I think -- I met with a man who is a very rational person. I met with a man who wants to
see -- really wants to see New York be great again.
And I can say again, because New York was great, you know, when I came down to Washington initially, the city was so hot. It was doing great. We were
having some telltale signs of problems. We had a mayor that was not doing a great job, but still, it was moving along.
And, it went bad. It really went, you know, pretty bad and he can -- I think it has been at lower points, but it went pretty bad.
I think he can bring it back.
Now the question is, will he bring it back all the way? Will he bring it back greater than ever before, which is I guarantee that's his wish. I
think he wants to make it greater than ever before. And if he can, we will be out there cheering. I will be cheering for him.
Okay, thank you very much everybody.
REPORTER: (INAUDIBLE) chose not to answer the question about the synagogue (INAUDIBLE)
TRUMP: Thank you very much.
MAMDANI: No, I care very deeply about Jewish safety. And I look forward to rooting out antisemitism across the five boroughs and protecting Jewish New
Yorkers and every new yorker who calls city home.
RICHARD QUEST, CNN INTERNATIONAL HOST, "QUEST MEANS BUSINESS": Well, there we have it. That was a lesson, a tutorial, a masterclass if you will in
diplomacy and how to get on when you don't get on.
President Trump and the New York Mayor-elect Zohran Mamdani, speaking in their face-to-face meeting. President Trump -- I am just going to read you
a synopsis of the comments I made while I was listening.
The President described the mayor-elect as a very rational person.
[16:10:10]
He is different. He has a chance to do something. We agree on a lot. We agree on more than I thought. When it comes to the issues, Mamdani agreed,
there needs to be more housing, crime needs to come down. The President said, I will be helping him, not hurting him, and he can do some things
that will be great.
The mayor-elect stood by and although he didn't quite give a ringing endorsement to all President Trump's policies, whenever he was asked, he
always found a way to bring it back to a positive element in terms of President Trump and the relationship with New York. It was quite an
achievement by both men who had been absolutely rude about each other in their various campaigns.
Kristen Holmes is with me at The White House, Gloria Pazmino is with me in New York. I am going to start -- which of you was more gob-smacked, as we
say in Britain, at the way in which these men -- they played nice because they had to and I wondered how much it is real.
Start with you, Kristen Holmes. You're at The White House.
KRISTEN HOLMES, CNN SENIOR WHITE HOUSE CORRESPONDENT: So I am going to have to disagree with you a little bit here, Richard.
President Trump is not known for playing nice even when he has to. He has spent the last several months calling Mamdani a communist, talking about
how he is going to ruin New York City. It did seem like President Trump was actually charmed by Mamdani, like they had a positive interaction. And on
top of that, President Trump went even further than just being diplomatic.
He said at one point that he would be happy to live in the city of New York with Mamdani as mayor after this meeting. He praised him at almost every
opportunity, and in one remarkable moment, he essentially said that it was okay if Mamdani called him a fascist, because that was something that he
had said before.
When he was also asked the question about being -- Mamdani calling him a despot, he said, I've been called worse things, so it is really not that
bad of an insult.
I mean, President Trump doesn't talk like this if he doesn't want to. He clearly was somewhat charmed by the incoming mayor of New York, and he did
seem impressed, not just impressed with him as a person, but also impressed that he won this position, saying over and over again, this is a huge
position. I would have wanted to be mayor at some point of New York.
Yes, I think on the other side and I will let gloria talk to it, there was a lot of playing, parsing of words and diplomatic talk, but I would say for
President Trump, he seemed genuinely happy with the meeting that he had.
QUEST: Gloria, you're in New York.
GLORIA PAZMINO, CNN NATIONAL CORRESPONDENT: That's exactly right and I think part of what we just saw was the President kind of undercut many of
the Republican talking points that we have been hearing since the election of Zohran Mamdani, right, that New York City would become sort of this
wasteland and that people would leave the city in droves because he is going to take office on January 1st, and we literally just heard the
President, the leader of the Republican Party, said that he would have no problem living in New York City under a Mamdani administration.
At the end of his meeting, he called Mamdani a reasonable person, and so I think this is just a fascinating moment watching these two men who have
been publicly sparring for the past several months. And I have to say that to Kristen's point, you know, I have spoken to a lot of business leaders,
Republicans here in New York; conservatives, people who were really uneasy about Mamdani's campaign, about his prospects in the election.
And as soon as they were able to get some one-on-one time with him, they walked away being absolutely charmed. The reality is, you know, many of his
senior aides tell me he is good in a room. But I think going into this meeting today, the question was, is he going to be able to, you know, keep
up with Trump, who is also very good in a room. And I think we saw that he was.
QUEST: And, back at The White House, Kristen, the interesting thing will be when the policies start coming because what the President said is, you
know, because the President had said, I won't fund it, I will keep the money back. And he did say at one point, well, when asked, you know, what
will you do? Will you pull back the money? He said, well, it depends what he does.
Now, where I saw a lot of common ground was on this issue of crime down and building more houses, you know better than anyone, Kristen, if you really
want to get the President's attention, you've just got to talk construction. You've just got to go into the land of building, and all of a
sudden he will engage like none other.
HOLMES: Yes, certainly. And look, we don't know if this is going to last. I mean, this is a moment in time.
[16:15:10]
They had a productive meeting as President Trump said. And again, President Trump seemed charmed by Mamdani and clearly was not -- went into the
meeting and came out of it with a different take on the meeting.
I mean, one thing to keep in mind here, when you talk about bringing the press in, generally speaking, when President Trump has guests that come, he
brings in the press at the top of the meeting before it even really starts, once they've sat down and then has them film that, then they leave and the
meeting commences.
You can see here that they clearly were waiting to see how this meeting was going to go, because they brought in the press this time, at the very end
of the meeting. So I don't think there were a huge level of expectations. I think, again, everyone, the press and even those inside of The White House
were a little bit skeptical as to how this was going to play out.
But President Trump made it clear that he wanted to support Mamdani moving forward. Again, complete opposite of what we've heard for the last several
months. When it came to the incoming New York mayor.
QUEST: I will leave you to get on with your duties, Kristen. Thank you for that. I will just stay with Gloria for one more, if I may.
HOLMES: Thank you.
QUEST: Gloria, so back in New York, how do you think this will have gone -- at one level, everybody, of course, needs -- look we are in New York. I am
in New York, you're in New York, I pay New York taxes. You pay New York taxes.
We all want this relationship to work simply because we all have to pay the bills here. But can it work?
PAZMINO: Look, I think New Yorkers are a lot of things, but I think that there are a lot of New Yorkers who are looking at this through a very sort
of realistic lens. I think, you know, people who support Mamdani and people who voted for him here in New York City, I think expected him to go in
there with kind of like a New York attitude, right, to not bow down to the President, to not sort of like, smile and get along, you know, just to get
along.
I think they expect this mayor-elect to go in there and show that he is going to put up a fight. You know, there is a lot of very real issues on
the table in the next few months. The federal funding -- is Trump going to take the same approach he has been taking in other cities when it comes to
immigration enforcement? Will he deploy the National Guard?
And so I think New Yorkers want to see a mayor that's going to stand up for their city, a city that has abjectly rejected Donald Trump for several
years now, and I think we saw in that meeting that there is a possibility that they might actually have a good relationship.
Now, to Kristen's point, you know, who knows how long this will last, and we know that the political winds in Washington blow in every different
direction, you know, every different day.
So I think people were expecting him to kind of go in and hold his own, and at least for now, it looks like he has given that were not seeing some sort
of, you know, fight breaking out here inside the Oval Office.
QUEST: Great. Thank you, Gloria. Okay.
Now I want to turn to Ukraine and President Zelenskyy. He is describing it as a choice between dignity and losing a key ally. The reason that key
ally, President Trump says he is giving Kyiv until Thursday to respond to his 28-point plan to end the war with Russia.
The draft proposal would require major concessions from Ukraine. It would have to give up land, including land that it hasn't already lost in the
Donbas region. It would have to limit the size of its military, 600,000 and renounce any plans to join NATO.
Remember, both Ukraine and NATO have said it is on a path. Zelenskyy told his country that he is working round the clock to come up with a response.
(BEGIN VIDEO CLIP)
VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): This is one of the most difficult moments in our history. The pressure on Ukraine is
now at its most intense.
Ukraine may now face a very difficult choice either the loss of dignity or the risk of losing a key partner or 28 difficult points, or an extremely
harsh winter.
The most difficult and further risks are a life without freedom, without dignity, without justice, and believing someone who has already attacked us
twice.
(END VIDEO CLIP)
QUEST: Jim Sciutto knows better than anyone this situation.
Now look, the Europeans can't make up the shortfall if Donald Trump goes away and doesn't supply arms, maybe economically they can, but not really -
- but not militarily.
And so the Europeans weren't even consulted on this plan. The plan is -- I am just saving you time here, Jim. The time in many cases is mainly
Russia's talking points and wish and demand list. So where does it go?
JIM SCIUTTO, CNN HOST, THE BRIEF: So, Richard, I've been speaking to diplomats in Europe. I've been speaking to lawmakers in Ukraine and
lawmakers here in the U.S., both Democrat and Republican, mind you.
[16:20:10]
And the reaction to this plan is outrage. I can't think of a of a stronger word. I think it fits that. I spoke to a Democratic lawmaker a short time
ago. He calls this calls this an embarrassment for the U.S. that endangers not just Ukraine's security, but America's security.
A Republican lawmaker, Brian Fitzpatrick from Pennsylvania, he just tweeted, he calls this unserious nonsense. That's the kind of thing you're
hearing from both parties in this country.
Let me take you to Ukraine, where I spoke to a military commander there who said that this would be forcing capitulation on Ukraine and in Europe, as
so often happens, the private comments I hear from European officials is panic.
And in fact, one of them used the word "panic" in Europe to describe their reaction to this.
Now publicly, they can't say that because they find themselves back in a position they've been many times before, where the President stakes out a
position that they see as not only against Ukraine's interests, but their own interests, Europe's security, and so publicly they are saying, we are
going to talk to the President. We will -- you know, this is just -- you know, it is a fluid document, et cetera.
Privately, they are scared, frankly. They are scared that he is going to basically abandon Ukraine and apply this enormous pressure.
QUEST: Okay, but how do we get from Alaska through to you can win this after all, when it says to Zelenskyy through to I am thinking I might send
you long range missiles to basically saying e-mail me your demands, Mr. Putin, and I will pass them on.
SCIUTTO: I will tell you, Richard, that I've covered President Trump for some time, going back to 2016, with particular attention to his Russia
policy and the most consistent feature of his Russian policy is looking for a deal with Vladimir Putin. Right?
I mean, the diversions are when he says, okay, we are going to apply sanctions, for instance, on Russian oil companies, which, by the way, just
started today and the timing of this statement and those sanctions has been noted to me by several European officials, like why today? The day that,
you know, these go into effect, is he trying to pull them back?
But the most consistent feature of his approach has been looking for some way to kind of make a deal with Putin. He imagines that he can end this war
magically, and also improve and restart U.S.-Russia relations.
QUEST: Right. Can I just throw one last quick final question at you? Which is, I mean, does this deal stand any chance of Zelenskyy -- when I say any
chance, of course, he stands a technical chance -- any realistic chance of Zelenskyy accepting it?
SCIUTTO: As long as Ukraine looks at it as capitulation and basically the end of its sovereignty, no. And I think, you know, Europe has been evolving
over time, Richard, in my conversations where I think they are prepared to go alone if need be, right?
They know that they want U.S. support, but given the choice between U.S. support and saving Ukraine, right? I mean, they -- and they look at that as
also saving their own security, they'll choose saving their own security.
You know, they would live without it. They want it. Arguably, they need it, but they're not going to go so far as to surrender.
QUEST: Jim, you'll be with us in 90 minutes with more -- I am grateful. Thank you, sir.
SCIUTTO: Thank you.
QUEST: And we will take more. We will take a break, short one, and we will be back.
(COMMERCIAL BREAK)
[16:26:17]
QUEST: It is no surprise that Donald Trump and Mayor-elect Mamdani got along so well. After all, they may be traditionally on the opposite side of
the political aisle, but they do have common ground. Take a look.
Here is the mayor-elect's platform. He wants to freeze rent in stabilized apartments. He wants city owned grocery stores and free buses. It is all
about affordability and Mr. Trump's economic policies, cutting inflation and housing costs, slashing gas and grocery prices and no taxes on tips or
overtime.
Now, when we look at them side by side, the two of them boil down to affordability. Huge difference in how you get there. For instance, Rana is
with me, a huge difference.
Rana, freezing rents would be -- in stabilized apartments would be an anathema to Donald Trump, who was sort of was a landlord and his late
father was not known for his generosity with his tenants and also, you know, you get a slash gas and grocery, drilling and there are differences,
but there seems to be a core where they can agree and then agree to disagree.
RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST: You know, I see the similarities as being really more about Mamdani and Trump as political
candidates, political beings.
They are both really, really able to tap into a visceral sense of what is going on in the public and exploit that, leverage that for their own gains.
That's a good thing as a politician. They are both very responsive to that populist impulse in ways that a lot of centrist candidates haven't been.
Other than that, though, it is hard for me to think of anything that at a core level, they would agree upon. Now, Mamdani is a kind of a wild card.
We don't really know what he is going to be all about yet. He came out with a lot of very sort of, far-left slogans, affordability was clearly the key;
free buses, free childcare.
But at the end of the day, and I think you can see this from the meeting with Trump, he is talking to a lot of people and he knows how to talk to a
lot of people, which is the core of a great political candidate.
Donald Trump is a financialized guy. He is a guy that made money from brands and from not making things, but leveraging things. I don't think
that's Mamdani's jam.
QUEST: No, but you see here what I see, you've got Mamdani who can in a way he knows what he wants and how to get it. Donald Trump, similarly.
FOROOHAR: True!
QUEST: Both of them the same, but at some point that by that same rationale they will turn on each other when it suits them.
FOROOHAR: Oh, sure. Oh, sure and they already have. I mean, remember, one of the first things that Mamdani did when he won was get up to the mic and
say, Donald Trump, if you want to take on migrants in the city, you're going to have to go through all of us. I mean, it was a very -- in a way,
it was a very Trumpian way to approach victory. I am not going to be gracious, I am going to get louder.
Again, you know, I think that he has got a lot of positives as a political candidate; as a policy maker, it is going to be very interesting to see
where he lands.
QUEST: And if we actually look at the -- again, I am sort of on unsafe ground here because you live in New York. I live in New York. We are
talking about New York. You know, we are all wondering what he is going to do and how much more it is going to cost those of us who maybe earn a bob
or two more, how much it is going to cost us in taxes, and that's where it is going to get tricky for him when he starts putting up taxes.
FOROOHAR: Right. And I think this gets to something that a lot of people in America and maybe other parts of the world find difficult to understand,
which is to make, say, two or three -- even $300,000.00 in New York City, if you've got a couple of kids, if you're paying rent, you know, average
rent is $4,000.00 or more for a small apartment, then suddenly it feels like a very middle class life.
[16:30:14]
And if you start hiking taxes on those types of people and they start leaving, that's when you get into that slippery slope of, are we in the
70s? Are people not riding the train? Are they not sending their children to public school? Are they leaving for other places? Other cities?
I mean, I am going to be very interested to see do second cities on the East Coast, like Baltimore, for example, which is very cheap and where
crime is actually improving, do they start to see an uptick if taxes go up in New York or is this mayor able to really keep the creative classes and
the middle classes here?
And, you know, finance, we haven't talked about finance, we should come back to that another day. Finance industry is leaving New York and that may
be even more important than whatever happens with the mayor.
QUEST: I think whatever did happen, it was a remarkable performance, quite extraordinary. All right, Rana, have a lovely weekend. Whatever you're up
to, I am grateful.
FOROOHAR: Thank you.
QUEST: Now, Mohamed El-Erian, always good to turn to when there are questions to be asked. Mohamed says in his latest article, let me find it.
He says, yes, there is a bubble, an A.I. bubble, but it may be a rational bubble. What's he talking about? Rational bubbles? He'll explain. There he
is. He'll explain after the break, rational bubbles galore in a moment.
(COMMERCIAL BREAK)
QUEST: Hello. I'm Richard Quest. Together we'll enjoy QUEST MEANS BUSINESS.
Smashing smartphones and quitting social media, discussing the Luddite movement for the 21st Century, and take a stroll down most expensive
shopping street in the world, nay, Paris, nor Singapore. Before that, we'll tell you where it is of course.
This is CNN, and here the news always comes first. President Trump says Ukraine has until Thursday to respond to his administration's proposal to
end the war in Russia. He also told Fox News he has no plans to extend that Thursday deadline.
[16:35:09]
Ukrainian President Volodymyr Zelenskyy says his country is facing one of the most difficult moments in its history, it risks losing dignity or a key
ally.
Israeli settlers in the occupied West Bank have set dozens of cars on fire in the town of Huwara. Minister say around 150 cars were destroyed at a
scrap yard on Thursday, it follows the Prime Minister -- Israeli Prime Minister Benjamin Netanyahu, convening a security meeting on rising settler
violence.
President Trump has said he wants to help New York City's mayor elect to succeed. He met Zohran Mamdani at the White House after denouncing him
previously during the campaigns as a communist. Mamdani, the mayor-elect, said he had a very productive meeting and focused on questions of
affordability.
Wall Street closed higher, finishing a choppy week of trading. The Dow and the S&P lost more than one half percent. Investors received some -- you can
see the way the week went. It's all been a bit tricky, really, one way and other. You see, think about it, we had strong earnings from Walmart and
Nvidia. Good jobs growth in September, you've got concerns about the Deds and the possible next decision, and then the A.I. bubble.
All week, we've been asking our guests about the A.I. bubble.
(BEGIN VIDEO CLIP)
QUEST: Most people accept that we are in some sort of bubble or balloon. The market is facing several threats, most notably, of course, the A.I. and
sky high valuations.
KEN FISHER, FOUNDER AND EXECUTIVE CHAIR, FISHER INVESTMENTS: If it were a bubble, few people would be calling it a bubble, when it's really a bubble,
most people are calling it an opportunity.
QUEST: We have the profitable and the unprofitable, the chip makers. Now they are also profitable. I mean,
Thank you.
JONATHAN CORPINA, SENIOR MANAGING PARTNER, MERIDIAN EQUITY PARTNERS: Do we get lofty levels when we get some A.I. headlines that move our markets
higher? Yes, and that's the breadth of our market. That's what moves it back and forth.
But I don't think we're trading at the such inflated levels where there's a bubble that's going to burst.
(END VIDEO CLIP)
QUEST: Now two options, informed opinions. We are not in a bubble. Our next guest says, A.I. could be a rational bubble. He says, whatever the bubble
is an inevitable part of developing and adopting a revolutionary tool that will fundamentally improve productivity and growth.
Wharton professor, El-Erian's advisor, Mohamed El-Erian is with me now. This is exactly what we've been saying, you and I on this program, the
inevitability of a new way of working, if you will. It -- I don't know why. Who knows why, but it produces this disproportionate bubble effect, and
that's the issue.
MOHAMED EL-ERIAN, RENE M. KERN PRACTICE PROFESSOR, WHARTON SCHOOL: Indeed. And it happens for a number of reasons, Richard. First, people bet on lots
of potential winners because the payoff is so huge, but there will be only a handful of winners.
Secondly, we're seeing what we showed you in that calm period, companies are putting a A.I. label on what they're doing and attracting money simply
for changing their label.
And then thirdly, we're seeing some companies involved in the arm race of A.I., starting to resort to a lot of debt financing, to a lot of circular
financing, and that normally doesn't end well.
But you know what, the underlying result will be to direct a lot of capital into an area full of innovation which will produce the equivalent of
electricity, meaning a general purpose technology that impacts so much of what we do, and we as a whole will be better off.
QUEST: Would you class what we are seeing as irrational exuberance?
EL-ERIAN: So, it's definitely exuberance, but it is rational, because the payoff is so huge. Compare it to the other extreme, the tulip bubble. And
people were betting on tulip, that was completely irrational. This is rational. There will be winners, but you're betting on many, many horses. A
few horses will get enormous payoffs, and the rest are going to end up in the glue factory.
QUEST: What a beautiful turn of place for a Friday. The point about this is, you know, in that scenario, in terms of market investor strategy, you
hold your own, yes, you maybe take a profit, and you prepare for maybe a 10, 15, 20 percent downturn if it happens in a market, because that's what
markets do. But you don't get too unduly concerned.
[16:40:16]
EL-ERIAN: Correct, and you get ready to buy to the companies that are likely to be winners.
QUEST: You've just skated to some very, very thin ice there, you're heading dangerously.
EL-ERIAN: I'm happy -- I'm happy to skate there, because ultimately, good investors have three characteristics, Richard, as you know. One,
resilience. You can absorb a short term downturn in the market. You need resilience for that.
Two, agility. Certain names overshoot on the way up, but they also overshoot on the way down, and taking advantage of that, especially
companies with really sound fundamentals.
And then the third issue is to be open minded, to understand like, like we're having this discussion as to the dynamics that are leading this are
dynamic we've seen elsewhere.
QUEST: This is fascinating, because over the course of particularly this week, my view on the market has changed from one of, this is a bubble that
will probably end badly to no, it's -- I think you phrase it, I misread the article, but this is a rational bubble that's inevitable in these
environments. But actually it makes perfect sense.
EL-ERIAN: I completely agree. And not only does it make perfect sense, it will leave us -- lead us better off.
It is remarkable what A.I. will enable, as long as we make sure it is diffused properly, adopted properly, as long as the mindset of companies is
not just on labor displacement, but on labor enhancing, because that's where the real promise is. As long as bad actors are mitigated against.
These are all possible steps that we should be taking to mitigate the risks. But I have no doubt in my mind that this is a significant
productivity promise at a really important time.
QUEST: And I'm grateful, have a lovely weekend. Sir, glad to have you on the program tonight. Mohamed, as always. Thank you, sir.
When it comes to screen time, here's a snapshot of how the QMB Team spends how many hours a day on their phone. We also threw in the brief as well.
We'll be speaking to someone who thinks that number should be much closer, if not at zero.
(COMMERCIAL BREAK)
[16:45:51]
QUEST: So, look, it's a matter of fact, many of us feel addicted to our smartphones. You and I have talked about it on this program many times.
This is my screen time for this week alone, on average, seven hours. Be fair about this. Most of it is we did an analysis. It's e-mails, WhatsApps,
and it's all sorts of productivity stuff.
I might need instead a dumb phone. They've become an important tool for people looking to disconnect for a while. The called Modern Luddites are
taking inspiration from the 19th century textile workers who smashed the looms that they -- at the mills in England that they weren't worried would
drive down their wages.
Gabriela Nguyen is one of their founders of Appstinence, a student organization that advises people how to wean themselves from their
smartphones. We did the test in the office. Everybody was around. I know, look, anywhere between three and seven or eight hours screen time, but it's
not easy to put that down, is it?
GABRIELA NGUYEN, FOUNDER, APPSTINENCE: Not at all. It's one of those things that's an issue we're having. It's seen severely amongst my generation. I'm
24 now, by the way.
But it's also one of these issues that are projected for the future, and in particular, I think for corporations and advertisers, your main audience. I
wouldn't be focusing now, but I'd be looking forward.
QUEST: So, here's the test. How do I gain the benefits of Appstinence, but enjoy the fruits as well of modern tele -- you know, of my smartphone?
Because clearly I've still got to do e-mails. I've still got to do many, many things that I can own banking, that I can only do on my phone. How do
I balance it out? Tell me what to do.
NGUYEN: Well, the one thing I really -- I really put a pin on there, is the word balance. I think a lot of times we talk about the word balance, we
think that it's measured in time, that if I just spend just the right amount of time, I've just perfectly optimized my system, and just have that
right amount then that's the goal that I'm trying to achieve.
But what we're seeing here, especially with young people today, who just feel like they're totally out of control, that this fight for screen time,
either with it's with ourselves or with parents with children, this idea of balance is not what people think that it is, and the reason is, is because
these technologies are just specifically designed to be addictive, and that's really what abstinence is. It's not saying no to all technology,
right? It's saying no to the technology that's specifically designed to be addictive.
So, that's really a laundry list at this point of technologies. It's like social media platforms, Facebook, TikTok, Instagram, A.I. companionship
services, dating apps, online betting, gambling services. The list goes on because platforms have become like black holes.
QUEST: Right. But I -- we did a feature on this with the -- with a woman who wrote the book How to Break Up with Your Phone. So yes, I'm very
familiar with this concept.
But by the same token, that addictive serotonin push also happens with WhatsApp. It also happens with e-mails, just looking to check, have I got
another e-mail? Has there another message? It does somebody like me.
And I do wonder how -- see the other problem is, you know, the 24-year-olds have with respect, you know, you grew up with all of this. It's people in
my -- like me, the 60s, I worry that I'm slipping into it all.
NGUYEN: Yes, exactly. It's one of those things that it's a balance, of course, in balance in the sense of, it's between the technology you use and
then what you're actually doing in the real world, and in particular for young people, that's the difficult part.
Is if you've built your life around these technologies, then the world that you then stepping into once you say you want to become abstinent, is not
there, because, as you know, if you've spent so much time building your life in the real world that it's there for when you get off of it.
But that's the difficulty having to imagine something you haven't yet -- haven't yet gained.
QUEST: And I'm grateful for your time. Thank you. Let's talk again. Let's not leave it too long, because this is fascinating. Thank you very much for
taking time tonight.
And so, to our "CONNECTING AFRICA" tonight, tropical, sweet and tangy. I adore pineapples. And in Africa, it's more than just a tasty treat. Of
course, it's a business and a very large one. Globally, the pineapple market, billions, Nigeria, Ghana, Benin, Cote d'Ivoire, major producers.
Victoria Rubadiri sees one agri food business.
[16:50:15]
"CONNECTING AFRICA"
QUEST: As you and I continue tonight, the name is Bond, Bond Street. It's London's shopping mecca, and it's now the most expensive retail
destination. I gave Anna Cooban and the credit card. Let's see how much damage she did.
(COMMERCIAL BREAK)
[16:55:38]
QUEST: If you're looking to spend big this Friday, this Black Friday night forward the London's new Bond Street. It's been ranked as the most
expensive retail destination in the world, a new report shows rents 20 percent up high Haven among Fifth Avenue in Milan, it's a strong sign of
investor confidence. Returning to the British capital, Anna Cooban shows us more.
(BEGIN VIDEOTAPE)
ANNA COOBAN, CNN BUSINESS AND ECONOMICS REPORTER: I'm standing on the most expensive retail strip in the world. New Bond Street in London has
overtaken Milan and New York as the priciest place to be selling stuff to the ultra-wealthy.
COOBAN (voice over): According to a new report from commercial real estate company Cushman and Wakefield, rents over the last year on new Bond Street
increased by 22 percent to over $2,200 per square foot per year. Rents in New York on upper Fifth Avenue stayed at around $2,000 per square foot, and
losing the top spot is Milan's Fashion District via Monte Napoleone. Again, there have been no rent increases this year.
So, why are these luxury brands scrambling for a spot on this sidewalk.
COOBAN: Burberry, it's an iconic British fashion brand, and the company recently posted its first quarter of growth in two years.
Now, as CEO Joshua Schulman has talked recently about the importance of going back to basics, displaying the iconic scarves and trench coats in the
shop windows, and the report by Cushman and Wakefield has made it clear that how important it is for brands to really lean into their flagship
stores, being in person, smelling, touching, feeling the clothes that is really good for business.
It's not just coats and scarves that are really pushing up the rents here. I'm here between Burlington Gardens and Clifford Street. Now this is the
most hotly contested slice of retail real estate in the world right now, and it's where you get your diamonds.
COOBAN (voice over): It's so easy to get swept up in the glitz and glamor before you remember the price tag, I guess I'll just settle for a spot of
window shopping.
COOBAN: Most people will do their shopping a stone's throw from here, neither Oxford Street or Regent Street, but even there, there have been
double digit rent increases. So, it's going to be an expensive Christmas, not just for shoppers, but for the shops.
Anna Cooban, CNN, London.
(END VIDEOTAPE)
QUEST: Not sure how much she actually spent in the end. And that is QUEST MEANS BUSINESS, I'm Richard Quest in New York. Whatever you're up to in the
hours ahead, I do hope it's profitable. Let's get together on Monday. Have a good day.
(COMMERCIAL BREAK)
END
