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Quest Means Business
War In Iran Triples Pace Of Inflation In The U.S.; Fed Expected To Hold Rates Steady At April Meeting; Tension Between U.S. And Iran Ahead Of Peace Talks; United States Vice President Backs Orban In Budapest Ahead Of Hungarian Elections; Sunday's Vote Could End Viktor Orban's 16 Years In Power; Report: European Union Airports Face Jet Fuel Shortages With Three Weeks. Aired 4-5p ET
Aired April 10, 2026 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:19]
PAULA NEWTON, CNN INTERNATIONAL HOST: So the markets cautiously optimistic going into the weekend. I will say as well, I am not sure what this
portends. They are ringing the bell from the Left Coast, San Francisco to be exact. We've got a lot going on that coast in the next few hours. Those
are the markets and these are the main events.
U.S. inflation spikes as the Iran War causes gas prices to surge.
The Artemis II crew is just hours away now from returning to Earth.
And Hungarian Prime Minister Viktor Orban is facing a possible end to his 16 years in power. We will speak with a Hungarian member of the European
Parliament ahead of this weekend's elections.
Live from New York. It is Friday, April 10th. I am Paula Newton in for Richard Quest and this is QUEST MEANS BUSINESS.
And good evening.
Tonight, the Iran War has reignited inflation in the United States, putting more pressure on consumers that, we remind you, are already under stress.
Prices rose 3.3 percent in the year ending March, and nearly one percent on the month. This is the stat that gets me. It means that the rate of
inflation has now tripled since the beginning of this war. The spike was driven largely, as you can guess, by the energy crisis, with gas prices
above $4.00 a gallon.
Now the pressure is getting to people. Consumer sentiment has plunged to the lowest level ever. Let me say that again, to the lowest level ever.
Americans are far from the only people hurt by this energy crisis. Farmers, truck drivers and other workers in Ireland are protesting high fuel prices.
Gas stations right across Asia are swamped with long lines. That includes this one in Manila.
Governments are taking measures, big and small to try and mitigate the damage. Pakistan, in fact, has closed schools and shortened work weeks.
African leaders are restricting electricity usage and Tanzania's president even downsized her motorcade to try and help.
Ken Rogoff is a prominent Economics Professor at Harvard University. He formerly served as the IMF Chief Economist. He joins me from Cambridge,
Massachusetts.
I am not sure what you would think in your old job about trying to sit down with what has happened in the last six to seven weeks. But here is a loaded
question for you, Ken, is this transitory? Even if we do get an end in the next few weeks, or maybe even the next few days to this conflict, how long
could the world still be dealing with this energy shock?
KENNETH ROGOFF, FORMER CHIEF ECONOMIST AT THE INTERNATIONAL MONETARY FUND: I don't think its transitory. I think that governments everywhere,
consumers, businesses realize this could happen again. They are going to take measures to build stockpiles, to reroute.
And just in general, these things like gas prices go up very fast, but can come down very slowly. But, you know, of course, Paula, the big question is
what does end mean? Is Iran going to continue to want a toll in the Straits of Hormuz payable in Chinese currency or crypto? Is Trump going to go into
business with them and charge half the troll -- toll? I mean, toll -- troll was an inadvertent slip.
I don't know. So, you know, it is clearly quite destabilizing. I think this is a bigger deal than Liberation Day.
Liberation Day was sort of something that Trump could walk back. It takes two to tango here. Iran has suffered enormous damage. They are not going to
give up their leverage easily. So I think we could be suffering from this for a while.
NEWTON: Yes, and maybe even three. Right? We don't know if Israel is going to sign on to any of this. I want to go back to this issue of consumer
sentiment. It has taken quite a hit and we know why.
But I have noticed that in the past few years, sometimes we've had this dent to consumer confidence, but there doesn't seem to be a clear
correlation between sentiment and how the U.S. economy is doing. The economy continues, at least here in the United States, to be just fine.
Thank you very much. Do you think the U.S. economy is now pressing its luck with this latest energy shock?
ROGOFF: Well, we have been doing okay, except if you're in the bottom half, I wouldn't even say the bottom 10 percent, the bottom half. Your wages have
not been going up really meaningfully relative to inflation and so there has been a lot of consumption coming from the top 10 percent, say, sorry, a
lot of consumption coming from the top 10 percent.
[16:05:10]
So, it is very uneven, so if you take a poll, of course, half of people are going to be very unhappy and I think that's obviously a great vulnerability
for the President going into midterms. How vulnerable is the economy overall? There are many wheels in motion. There is artificial intelligence,
which may be causing firms already to hire less people and people are worried about their jobs in the future. And obviously, the risk that
something else is around the corner, we seem to get a shock every other week.
NEWTON: Yes, and I am not sure any businesses are, quite frankly, consumers around the world have still gotten over COVID, especially in the more
vulnerable economies. And here we are again with another shock.
You know, Ken, I noticed that you're also warning of higher interest rates, which have huge implications for everyone from home loans, car loans, and
of course, business investment, but also governments. They now remain more indebted than ever. I don't see that changing do you?
ROGOFF: No, and we haven't prepared for this kind of shock. The government's plan was, well, we can deal with the shock because it usually
brings down interest rates. People get scared. They want to buy government bonds. And then you can issue more debt and it is not so bad. The Federal
Reserve can cut interest rates.
This kind of shock, which is pushing up inflation, it is pushing up interest rates for lots of reasons, it is not just the oil, it is also all
the expenditures everybody sees coming up with military spending, other pressures and higher interest rates are a lot harder to deal with,
especially when you already owe a lot of money.
So the governments of Europe are very stretched. The United States is stretched. Oddly enough, the emerging markets are a little stronger because
they have been preparing for this, which the advanced countries have not.
NEWTON: Yes, and that's an interesting fact going forward, especially when those consumers already tapped, look to their governments to try and
mitigate some of this and we are going to see how far those governments can dip into their pockets.
ROGOFF: Well, it is happening.
NEWTON: Yes, dip 3into their pockets as we continue with this. Look, all eyes, not just diplomatically and politically, but economically as well on
the weekend and those negotiations. Ken Rogoff, thanks so much. Appreciate it.
ROGOFF: Thank you.
NEWTON: Now, tensions continue to simmer between the U.S. and Iran ahead of this weekend's peace talks. The delegations are, though, set to meet in
Pakistan tomorrow. But both sides are trading sharp words in the meantime. President Trump says Iran has, "no cards" other than using the Strait of
Hormuz to hold the world hostage. I will say myself, those are quite the cards to be holding at this hour.
Vice President J.D. Vance, meantime, warned against trying to, "play" the U.S., at the same time, the Speaker of Iran's Parliament now demanding the
release of blocked Iranian assets before talks begin, along with a ceasefire in Lebanon.
Nic Robertson is on the ground for us in Islamabad, where talks are set to begin tomorrow. Nic, I know you've been trying to really chase this down,
understand how these negotiating teams are setting all of this up.
Can you set the table for us? Because if we actually have face-to-face negotiations between the United States and Iranian officials, really
historic.
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Not clear it is going to be face-to-face. I think everyone at the moment feels it is going to be
pretty big if the two sides get in the same building. The Iranian delegation arrived, landed here about an hour ago. J.D. Vance and his
delegation due in in a few hours' time. Talks in a major hotel behind a huge level of security in the secure red zone, in the center of the city. I
was down there earlier on today and the streets are deserted. A lot of security out there.
Those talks, though, proximity is expected because that's the way the talks were going previously before the war, when Oman was handling the
negotiations of those talks, talks in one room with one team, diplomats move, the negotiators move. The Pakistani negotiators will move to another
room. That's the sort of what is expected. It is possible they could end up in the same room, but I think you can't underestimate the level of distrust
that exists at the moment.
How is it going to look? Well, Iran is coming in with these demands. President Trump saying the Iranians have got a weak hand. I think the
assessment here is that the Iranians don't feel that they've got a weak hand, and I think we get a sense of that in their demands. The Iranians
coming in also saying it is their ten-point plan that's going to be talked about.
I've asked questions about that, and the perception here at the moment is, look, if you can lock in a number of those points, five, six or seven of
those points, maybe, then you can begin to lock in the ceasefire and make it look like it might work, and obviously, opening the Strait of Hormuz is
critical for the U.S. side.
[16:10:07]
J.D. Vance thinks is going to be able to make a pretty quick assessment of that. So the Iranians coming in, negotiators would like to take their time
have got a lot of strong demands. Not clear if the U.S. is going to accept any or even some of them. The U.S. coming in kind of wanting to get this
done quickly, get moved on from this position, get the oil flowing again from the Gulf Region.
Two different styles -- how is it actually going to work? Really, it is a make or break moment as Pakistan's Prime Minister said here before. A
couple of takeaways. I think at the moment, the Pakistan perspective, they really think that Vice President J.D. Vance is key and vital. It has done
well on the diplomatic front over the past few days, has been a key player there. The Iranians not wanting to work with, Steve Witkoff, Jared Kushner
because there is a lack of trust there, we have heard that from sources in the Gulf.
So, there is a potential for something to happen, but two entirely different styles of approaching negotiations and two fundamental different
beliefs of where the other side is, U.S. believing Iran more or less defeated; Iran believing that it can fight on longer.
NEWTON: Yes, Nic, you've really broken down the challenges quite correctly for us. Look forward to your reporting over the next few days and good to
have you on the ground.
Nic Robertson for us in Islamabad.
Now, as we've been mentioning, Israel's ongoing attacks across Lebanon are threatening to derail the fragile ceasefire between the U.S. and Iran.
UNICEF is warning that it is taking a devastating and inhumane toll on civilians, particularly children.
Nada Bashir visited a Beirut hospital and spoke with some of those affected.
(BEGIN VIDEOTAPE)
NADA BASHIR, CNN REPORTER (voice over): The pained cries of one of Lebanon's youngest casualties. She was injured after an Israeli airstrike
hit a college in Beirut, where she and her family had been sheltering. We are not identifying them as they have requested privacy.
BASHIR (on camera): This little girl is one of the hundreds of wounded patients that were brought into hospitals across Beirut following
Wednesday's devastating attack on the city, but her mother considers her one of the lucky ones. She was able to survive the attack, but there were
more than 300 who were killed.
UNIDENTIFIED FEMALE (through translator): When I heard the first strike, I ran out screaming, "My daughter! My daughter!" I couldn't see anything.
Just black everywhere. I could hear her voice. She was calling for me. "Mama, mama." I was digging through the debris with my hands.
I could just see her face, her head. I pulled her out with my hands and carried her. I was in shock.
BASHIR (voice over): At just three years old, her daughter has now lived through two wars between Israel and Lebanon. Israel claims it is targeting
Hezbollah forces, but across the country, civilians are paying a heavy price.
UNIDENTIFIED FEMALE (through translator): What have our children done to deserve this? What have they done? Why should my daughter have to cover her
ears from fear of the sound when she goes to sleep?
BASHIR (voice over): Doctors and nurses here at the Makassed Hospital say they were inundated with casualties. Civilians, they tell us, poured into
the hospital, many of them in a critical condition.
SABEEN ABOU AWDEH, EMERGENCY ROOM MANAGER, MAKASSED GENERAL HOSPITAL: There were like very, very bad injuries and of course, our own psychological
needs were not met as well. We had no time to see if our parents are okay. We didn't know where the blasts were. It was all over Lebanon. There is no
place safe anymore.
Like the last war, there were known targets. Now, we don't know where there is going to be a bombing.
BASHIR (voice over): Nurse Sabeen Abou Awdeh has reason to be fearful.
The military has accused Hezbollah forces of using ambulances for cover, warning that they too could be targeted. And now, an expanded evacuation
warning in Southern Beirut has placed the nearby Rafik Hariri University Hospital in the line of fire.
Doctors here say they have received dozens of bodies, many of them still waiting to be identified by their inconsolable families.
Mohammad Naser al-Din (ph) tells me his friend, Abbas was killed in a strike which hit a local grocery store. He was just 19.
MOHAMMAD NASER AL-DIN (through translator): We pulled him out from beneath the rubble. We only found him today. He was under the rubble since
Wednesday.
He is a martyr. What can we do?
BASHIR (voice over): Nada Bashir, CNN in Beirut.
(END VIDEOTAPE)
NEWTON: Okay, coming up for us, the Artemis II crew will be landing back on Earth in just a few short hours from now. I will ask a former NASA
astronaut what is in store for them.
(COMMERCIAL BREAK)
[16:17:31]
NEWTON: So at this moment, the crew of the Artemis II mission are making their final preparations to reenter into the Earth's atmosphere.
In the last 90 minutes, they have conducted their third and final major RTC burn, and that's done to precisely set their course for splashdown off the
Coast of California just after 8:00 P.M. Eastern Time tonight.
Now, before that, the crew and capsule will face some major physical tests. That includes reentering the Earth's atmosphere at more than 30 times the
speed of sound. And as you can see from this NASA animation, those speeds can cause the capsule to heat to an astounding point of temperature here. I
find it difficult to fathom this, as hot as 5,000 degrees Fahrenheit.
The heat shield and the capsule are something that NASA will be watching extremely closely, as you can imagine, and that's after issues on the
previous Artemis mission.
To discuss what we will see in the coming hours, I want to welcome in former NASA astronaut, Colonel Ron Garan. Thanks so much. It is good to see
you.
Ron, I've got to tell you, I am anxious just reading what I just read, never mind having to conduct it and that's -- you know, for those -- the
crew in space, but also at mission control, can you take us there? You're in the Orion. You're about to drop to Earth in essentially what is a
fireball.
How difficult is this? What would it be like for the crew? And is it making you nervous?
COLONEL RON GARAN, FORMER NASA ASTRONAUT: Yes, it is making me nervous. But I have to say, it is always a lot more nerve wracking to be outside of the
spacecraft than inside the spacecraft, because inside, you know what's going on. There is going to be a blackout of up to six minutes, and so, you
know, all of us on the ground won't know what is going on for six minutes, but the crew obviously will know what is going on at that time.
So they are going to have increasing Gs as they enter into the atmosphere as your graphics showed, there is going to be a fireball around the windows
outside the window. They will see fire going by. They will see sparks going by and then when those chutes open, they will be thrown all over the place,
so it is going to be a very thrilling journey back through the atmosphere at seven miles a second is what they are starting at. So, pretty, pretty
spectacular.
NEWTON: Yes. The way you former astronauts, current astronauts look at this thrilling, I would also say terrifying. So once they splash down, Ron, the
NASA Recovery Mission really gets to work. Just to remind everyone, this is a test mission for a reason. What will they be looking for in terms of, you
know, what does the crew look like? How are they doing?
[16:20:10]
How did the capsule, you know, get through this journey? There is a lot to work on, even when they splash down, right?
GARAN: Right. First and foremost is to get them aboard the naval vessel in one piece, safe and sound, and get them back and then, they're going to,
you know, assess them for health and there will be medical experiments that they will conduct. You know, they just went farther than anybody has been
ever, and you know, first time outside of low Earth orbit in 54 years. So, we definitely want to make sure they are okay.
But, first and foremost is the safety of the recovery.
NEWTON: We are looking at some NASA animation right now in terms of what this will take. As you've seen this unfold, what do you think has been
different about this mission than all the ones that have come before? And I mean, we are used to seeing the International Space Station. This is quite
different.
GARAN: Yes, the International Space Station is roughly 250 miles around the Earth and they went 250,000 miles from home. So it is a whole different
environment. The radiation profile is different, the trajectory that we have to do, the type of maneuvers we have to do.
So basically they've been falling back to the Earth since they left the sphere of influence of the moon, you know, a couple of days ago. And so
they're picking up speed as they fall to the Earth. And so, we haven't done that in a long time, in decades.
NEWTON: Yes, it is going to be extraordinary to see and I can't wait.
I have to say, Ron, I was reading just online some of the things that you've written, you've been incredibly thoughtful and prolific in trying to
convey your experience in space and what you believe to be the contributions that it makes, not just to space exploration, but to
humanity.
So, what is your take on Artemis II and what kind of new era of space exploration do you think it opens up?
GARAN: Yes, I think back in 1968, on Christmas Eve, 1968, we went through an evolutionary phase shift. You know, we -- when Apollo 8 came up from
behind the far side of the moon on their fourth orbit, they saw something never seen before by human eyes. They saw the whole planet hanging in the
blackness of space. And for a brief moment, back in 1968, the world was one.
People from all over the world, even in the Soviet Union, a nation that was locked in a space race with the U.S. and a Cold War with the West
proclaimed this a monumental achievement for all of humanity.
Now, we have an opportunity. We have the Earthset photo. So back in 1968, it was the Earthrise photo, now, we have the Earthset photo from Artemis
II. It is another opportunity for us to come together to unify. It is another call to action.
When you see the planet from that vantage point, you see the truth that each and every one of us is riding through the universe together on this
spaceship that we call Earth. We are all in space already. And so it is very unifying and Victor Glover, you know, on Easter talked about how when
we look back at Earth, we see one thing and we need to remember where we are and who we are, and that we are the same and the only way we get
through all of these challenges that we have is together. That's what this mission shows us. That's what Apollo 8 shows us, and we need to rise to the
occasion and unify under this reality, because this is the reality of what we are living under.
It is not the two dimensional maps that hang in classroom walls. It is that view of Earthset and Earthrise.
NEWTON: Well, Ron, we are going to take on board everything you just said and I know for so many people, it has been inspiring the last few days and
perhaps has given people renewed optimism, especially young people, so many of them that are now looking to space and wondering if they have a future
there.
Ron Garan for us, thanks so much. Really appreciate it.
GARAN: My pleasure.
NEWTON: And of course, we will have special coverage upcoming in the next few hours as the crew of the Artemis II mission returns to Earth following
their historic trip right around the moon. Join us at 7:00 P.M. Eastern, 4:00 P.M. Pacific Time. That's 7 A.M. Saturday in Hong Kong.
Now, unfortunately, we've got to get back here on Earth. The U.S. Treasury Secretary and Fed Chair called bank executives to an urgent meeting in
Washington, D.C. this week to discuss the potential cyber risks of Anthropic's latest A.I. model. That's according to a source.
The CEOs of Wells Fargo, Bank of America and Goldman Sachs were there. Bloomberg first reported this meeting and said the Citigroup and Morgan
Stanley CEOs were there as well.
Now, Anthropic has not publicly released its Mythos model, no yet anyway. That's due to cybercrime concerns. Access has only been granted to a
handful of companies as part of a defense initiative called Project Glasswing.
Theres concern that any security breaches or vulnerabilities could threaten public safety and national security. Lisa Eadicicco is with us in New York
here.
And I know you've been looking into this. Can you explain the concerns not just of Anthropic? I mean, they are the ones that created Mythos, but also
the U.S. government and we are now hearing from other governments as well that have more and more concerns about this.
[16:25:13]
LISA EADICICCO, CNN BUSINESS TECH EDITOR: Yes, Paula, I think the concerns here are just at the rate that A.I. is moving and how advanced A.I. is
becoming, especially at tasks like cybersecurity. What does that mean when the technology falls into the hands of bad actors and hackers? CNN has
spoken to cybersecurity experts about this who have said that A.I. is already making it possible for hackers with relatively little skill and
people with less technical knowledge to pull off exploits and to exploit vulnerabilities.
And at the same time, if you can imagine, you know, when a model like Anthropic's new Mythos model that the company has said is particularly good
at cybersecurity, what that can mean, and the company even said in a blog post that the model can find and exploit vulnerabilities across all of the
major operating systems and web browsers that people use, and even find old ones.
One of the vulnerabilities that they said that this model has found was nearly 30 years old. Right? So I think that example kind of illustrates the
point that is driving a lot of these concerns that these A.I. models and I don't think this is something that will be limited to Anthropic. You know,
a lot of these advancements don't happen in a vacuum. A lot of these frontier labs are pushing ahead and innovating and investing a lot in this.
So I imagine other models will also excel similarly in the future. I think it kind of just speaks to the concern that these A.I. models can, you know,
find vulnerabilities that humans have not been able to find and exploit them at a much larger scale.
NEWTON: And given the warnings, it is not just the U.S. that is developing these kinds of A.I. models at a rapid pace. I mean, China for so many
people is front of mind as well.
Is the Trump administration still against regulation on A.I.? Because many people are looking to that to, you know, to provide some kind of protection
or a firewall.
EADICICCO: So we haven't heard anything new on this specifically, but the Trump administration has made it very clear that their priorities around
A.I. involve making sure that the United States is a leader, and part of that is because of national security and this is a point that was
reiterated last month when the administration unveiled its policy framework for A.I. legislation.
And a lot of that framework, if you look through it, had to do with things like easing up on permitting for data centers so that American tech
companies can move faster. Also making sure that, you know, there isn't a patchwork of state-level regulation that could also hinder innovation.
And of course, this is just a framework right now, but I think it kind of gives you a clear view of how the administration views things. But that
also brings up concerns of its own because at the same time, you know, regulation is needed to ensure that companies are held accountable, of
course, and that these A.I. models and the products built around them are rolled out safely.
NEWTON: Lisa, I don't have a lot of time left, but we do have to remark that Meta, its A.I. ambitions have faltered and stalled, and yet now they
have a new model, right? It is called Muse Spark.
EADICICCO: Yes, so this is the first model coming out of Meta's Superintelligence Lab and I think the reason why there is a lot of
attention on this this week is because we haven't really had a lot of clarity around Meta's A.I. strategy so far. And so I think Wall Street is
really viewing this as a sign that Meta does have a clear direction.
A lot of the use cases that they mentioned that the model is good for is really sounds competitive with ChatGPT and Google's Gemini. So I think the
reason why there is a lot of interest in this right now is because it is kind of the first clear sign that Meta does intend to be a big challenger
to these other companies as well.
NEWTON: Yes, and we will wait to see how that settles into the new A.I. ecosystem.
Lisa, thanks so much. Really appreciate it.
Now the clock is ticking down to elections in Hungary, which pollsters predict could bring a major political change to the country and to Europe.
(COMMERCIAL BREAK)
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NEWTON: Hello. I'm Paula Newton, and there is more QUEST MEANS BUSINESS in a moment.
When Viktor Orban accuses the opposition of trying to seize power days before Hungary's parliamentary elections.
E.U. airports are at risk of facing systemic shortages of jet fuel in a matter of weeks. Before that, though, the headlines this hour.
Pakistan's prime minister calls it a make-or-break moment to achieve a permanent ceasefire. Negotiators from the U.S. and Iran are expected to
meet in Islamabad Saturday, amid tight security. President Donald Trump is threatening to renew attacks on Iran if those talks fail.
Russian President Vladimir Putin has declared a 32-hour ceasefire with Ukraine for Russian Orthodox Easter. That's this weekend. Posting on social
media, Ukrainian President Zelenskyy said he had repeatedly sought a pause of hostilities earlier in this month, and Ukrainians are skeptical of this
Russian overture.
Now, last year, the same agreement was reached, but both sides accused the other of breaking it.
Protesters in Ireland have blocked highways and oil infrastructure for a fourth day as they demand action on surging fuel prices. The head of fuels
for Ireland warned that the number of gas stations without fuel could hit 500 due to the blockades. The Irish prime minister says the country might
have to start refusing oil delivery soon, if these protests continue.
Now, ahead of an election --
Now ahead of an election which could end his 16 years in power, Hungarian Prime Minister Viktor Orban is accusing the opposition of trying to seize
power.
Posted a video message accusing his political opponents of colluding with four foreign secret services and threatening his supporters. It comes as
the far-right anti-EU pro-Kremlin leader has been trailing in the polls, and is facing a major challenge from center right leader Peter Magyar, and
that's in this upcoming election this weekend.
Melissa Bell -- pardon me. Melissa Bell has more on the foreign support that Orban himself has been seeking during this election cycle.
(BEGIN VIDEOTAPE)
MELISSA BELL, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): Hungary's Prime Minister Viktor Orban has had no shortage of friends
willing to travel to Budapest in his hour of need.
J.D. VANCE, VICE PRESIDENT OF THE UNITED STATES: Go to the polls in the weekend, stand with Viktor Orban.
BELL (voice over): From the American vice president to the secretary of state.
MARCO RUBIO, UNITED STATES SECRETARY OF STATE: Your success is our success.
BELL (voice over): Not to mention that of the European far-right. Several of its leaders also traveled to Hungary mid-campaign to support the man who
leads their fight against the European Union.
VIKTOR ORBAN, PRIME MINISTER OF HUNGARY (through translator): The left-wing elite in Brussels is weaker every day. On the other side, we the patriots,
are getting stronger, getting stronger in Central Europe.
[16:35:00]
BELL: But as much as Viktor Orban rails against the European Union, he has never quite shied away from taking its money. Take this $1.5 million
roundabout in western Hungary that was meant to be part of a logistics hub. It was built with money from European taxpayers, and yet, the railroad and
the container terminal that it was meant to link were never built, leaving behind just this monument to Viktor Orban's vision of Europe -- a road to
nowhere.
BELL (voice over): Instead, Orban has continued to milk Russia for cheap gas and oil, in defiance of Europe and to look to U.S. President Donald
Trump as a champion, with both leaders sharing disdain for Brussels.
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: My best wishes to Prime Minister Viktor Orban, who I am endorsing, as you know, I am endorsing his
election.
BELL (voice over): On Sunday, Orban and his Fidesz Party will come head-to- head with Peter Magyar, who is standing for the Tisza movement.
BELL: For all the support that Viktor Orban has received from abroad, it's been Peter Magyar's campaign inside the country on very domestic issues
that the polls suggest might be about to make the difference, even in traditional Fidesz strongholds like this town to the southwest of Budapest.
Melissa Bell, CNN, Szekesfehervar.
(END VIDEOTAPE)
NEWTON: Klara Dobrev is a member of the European Parliament for Hungary and the leader of the Democratic coalition party in Hungary, and she joins us
now from Budapest.
A big welcome to the program, as these are really momentous hours ahead for Hungary. I mean, even if the will of the majority in Hungary wants a new
government, you and other opposition members have warned that possible foreign interference, abuse of state-linked powers, intimidation,
manipulation, disinformation, all of this you say, has been present in this election.
How much do you worry that this will really distort the results?
KLARA DOBREV, LEADER, HUNGARIAN DEMOCRATIC COALITION: Well, look, we are living in this world of Orban in the last 16 years, and he has used Secret
Service, police, disinformation, Russian interference, all the time. So, that's one of the reason he could remain in power in the last 16 years. But
he has lost his majority within the nation, because the living standard, the health care, the education, the prices, the wages, it's terrible.
Once flourishing Central Eastern European country, Hungary, now became the poorest country in Europe, and that's thanks to Orban. So, he has lost his
majority. So, this time, I'm really thinking that we can have the chance to defeat him.
NEWTON: Do you think the interference of President Trump and Vice President J.D. Vance has helped or hurt Mr. Orban?
DOBREV: Well, I really hope that it hurt, because they have a friendship, which goes back along. The Project 2025 from President Trump, it's actually
Orban Viktor's Project 2010. So, it's from 15 years ago. How you take over a state, how you demolish the checks and balances, how you kick out civil
servants and replace them with political allies. That's how Hungary became the poorest country of Europe.
And that's how they are learning from each other in the role far-right populist movement. And I really think that people do see through this kind
of allies, because from Trump to Putin, from Le Pen in France to other far- right populists, this is not the future the majority of the Hungarians wants for themselves.
And this time, I think, the stake of the election is whether we do remain in Europe or not, because this politics of Victor Orban is taking us out
from the union.
NEWTON: Yes. He has certainly tried to stand up to the E.U. as much as he can and created some problems. I do want to ask you, though, given the dire
warnings that you and your party have presented, you know, you have said that also backing wholeheartedly the opposition could also be dangerous,
because it would concentrate power, your words now, and it would concentrate power in a personal way that you believe is dangerous.
I mean, I'm quoting you now. Would you want us to lay down in a deep trench and bury ourselves. Is that really the way to take on, you know, the danger
that you say Mr. Orban still presents to Hungary?
DOBREV: Well, look, Mr. Orban has created in the last 16 years, actually a dictatorship, what -- however you call it. So, it's one man -- one party's
power.
So, our task is not simply to replace Orban, to have another prime minister or to replace the party and have another ruling party. We have to replace
his regime. He really built a regime. So, it means that instead of Orban, we need a democracy. Instead of one-party system, we need to bring back the
checks and balances, the pluralism, this kind of parliamentary democracy, which can give Hungary a European future.
[16:40:05]
So, it's not simply an election of changing the government, it's really changing a regime, and it's going to be very hard.
On Sunday, I hope that we will have a wonderful night on the streets with a lot of joy, and being happy that we defeated finally, Orban. But the real
work will start on the 30th, on Monday, at the day after the election, because to demolish this regime and to build back this European Hungary,
what we dream of, it's going to be a hard work.
NEWTON: I know that, that is your aspiration and that of the other opposition leaders. But do you believe that this fragmentation among the
opposition, though, could allow Viktor Orban to slip in there again?
DOBREV: Well, now, as I see that if we, all of us, can mobilize our voters, then we really have the chance. Orban is mobilizing at the end of the
election with buying votes, actually, frightening people, with using Secret Service. So, mobilization of voters of the far right is really very, very
effective way how he is doing this before the election.
And we, on the opposition side, we have to mobilize the voters. And yes, you need very different kind of voters against the Orban regime. You need
conservatives, you need Democrats, you need social democrats. You need liberals. So, all of us, we have to join our forces. So that's why, if
there is a very strong fragmentation within the opposition, then, it will help. Orban.
If we can really join our forces, then, we can defeat him.
NEWTON: OK. Klara Dobrev, we will leave it there for now. We'll be watching carefully those results come in this weekend. Appreciate it.
DOBREV: Thank you, and fingers crossed.
NEWTON: All right.
Rising jet fuel prices are straining nearly every part of the supply chain: airports, airlines, and now, consumers. How travelers are eating those
extra costs. It's biting.
(COMMERCIAL BREAK)
NEWTON: So, E.U. airports are set to face systemic jet fuel shortages within three weeks, if the Strait of Hormuz isn't fully reopened. That's
according to the ACI Europe, the group that represents airports in the block.
Rising oil prices have jacked up jet fuel costs, at least 70 percent since this war started. Many airlines have started passing those inflated costs
on to consumers with higher air fares and checked baggage fees.
[16:45:05]
The Independence travel correspondent Simon Calder joins us now. And Simon, good to see you.
I'm very curious as to what you're seeing, because this could really get ugly. And I'm wondering, what do you see now? And do you think it will be
temporary?
SIMON CALDER, TRAVEL CORRESPONDENT, THE INDEPENDENT: Well, things, I'm sorry to say, are going to get worse before they get better. That is very
clearly the case. We are seeing, as you reported, at that European airlines are saying that they are going to be running short of jet fuel. They will
not be able to fly their normal operations in May. And that means there are probably millions of passengers in Europe who have booked their trips who
are simply going to be told, sorry, your flight isn't going.
It's a rather different picture in the U.S., where the main impact is on the price of jet fuel. We had Scott Kirby, the CEO of United, saying that
the increase in the price of jet fuel, if it stays as high as it currently is, will increase their costs by $11 billion every year, and that is in an
industry where the biggest profit that United has ever made is $5 billion. So, that's not going to add up.
I've been talking to the chief executive of EasyJet, the biggest budget airline in the U.K. He simply said, look, we pay -- we earn, typically, $10
per passenger we fly. If the price of aviation fuel goes up by $15, guess what? We have to put up prices.
So, consumers are going to have to get used to less choice, higher fares.
NEWTON: The math you just did for us is extraordinary, and, quite frankly, worrying for many people who want to go into this summer travel season
understanding that they want to afford a ticket. I mean, how bad do you see this getting in terms of people actually having sticker shock in one
direction? But also, you point out, in Europe, there may be no choice, no matter how much you want to pay.
CALDER: Well, look, we are going to see a reduction in the number of aircraft that are flying, of number of seats that are available simply
because, well, in the case of, once again, if United, they said, yes, we are going to cut out some of the red eyes, which don't make us any money.
We are looking at other commuter flights which were -- where we are losing money. So, the price of jet fuel -- SAS of Scandinavia have said, yes, we
are going to cut thousands of flights, because so many of these operations are marginally profitable until the price of jet fuel increases, at which
point, they simply are going to be losing the airline money.
So, yes, we are going to get sticker shock. The upside, at least, if you are traveling from North America, and in particular, from Europe to Asia,
Africa, and Australasia, is that very quickly, the big Middle East airlines are going to get back in the game if there is permanent peace in the Middle
East, because Emirates, Etihad, and Qatar Airways, based in Dubai, in Abu Dhabi, and in Doha respectively, are going to want to fill up their
aircraft, get their schedules back to 100 percent. And there is only one way to do that, and that is price.
So, on those long-haul routes, you can expect some bargains back. But I'm afraid everywhere else just get used to the idea that the cost of jet fuel
is increasing, and that is going to be reflected in the price of your ticket.
NEWTON: Yes, Simon. Incredibly sobering information there, but information we all need. We will wait to see what happens this weekend. It's incredible
that somebody wanting to go on a vacation in the summer of the fall needs to look to these negotiations in the next 72 hours to understand what their
flight is going to look like.
Simon Calder for us. Thanks so much. Appreciate it.
Now, the Masters Tournament is in full swing in Augusta. Yes, you are going to forgive me that pun, aren't you? Fans are not just excited about the
game play, they are also spending a lot of time in a gift shop. We will show you what all the hype is about.
(COMMERCIAL BREAK)
[16:51:54]
NEWTON: The second round of The Masters is underway in Augusta, Georgia. All 91 players are vying to punch their tickets to the next two rounds as
the playing field narrows to about 50 this evening. Defending champion Rory McIlroy is currently sharing the top spot, and he is looking to become just
the fourth golfer to win back-to-back titles at The Masters.
But as you can imagine, McIlroy has some stiff competition. At this hour, he is now tied with Patrick Reed.
Andy Scholes has a keen eye there on the leaderboard. And I have to say, just watching Rory McIlroy, though, coming off of his win, he definitely
seems more relaxed out there. That's for sure.
ANDY SCHOLES, CNN SPORTS ANCHOR: He is, Paula. And he told us that this week. He told us that after his first round yesterday, he said, you know,
no matter what happens out there on the course, he knows that after his round, he can go to the champions locker room, put on his green jacket,
have a Coke Zero and just relax.
He is definitely a different guy out there on the course now. He says before the tournament, he doesn't have that weight of the world on his
shoulders anymore, because he was able to finally get that green jacket last year, complete the career Grand Slam. But he -- as you mentioned, he
is looking for a little history at this Masters, because he would become only the fourth golf forever to go win back-to-back green jackets, joining
Jack Nicklaus, Nick Faldo, and Tiger Woods.
And at the beginning of his second round today, boy, did it look like he was maybe going to run away with this thing. He birdied two, three, four.
He then gave a shot back on five, and then he bogeyed again on 10. So, he has it six under right now for the tournament, tied with Patrick Reed, 2018
Masters Champion Patrick Reed.
So, right now, it's a -- it's a really tight tournament, Paula, and we'll see how it goes the rest of the day before we get to moving day tomorrow.
NEWTON: Yes, and we will wait for a few hours to see if there are any surprises about, you know, those who don't make the cut.
Listen, I didn't know this before, but the extracurricular activities at Augusta are extraordinary, really, because the exclusivity of the gift shop
really is making headlines, not just this year, but every year. Fill us in, Andy, because I know you have had a few tours around the gift shop
yourself, haven't you?
SCHOLES: So -- yes, yes. Unfortunately, I go in there way too much and spend way too much money., Paula. But -- so, The Masters really is the only
event in sports where, like, everyone at the event is wearing that event's merchandise. You can only buy Masters' merch this week at Augusta National.
That's the only time you can get it. It's very exclusive. So, everyone goes to that gift shop, and people spend a lot of money. And I caught up with a
lot of the patrons and asked them, how much did you spend?
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: You don't look at price tags when you are at The Masters. You just put everything in a bag.
UNIDENTIFIED MALE: This is confidential. My wife going to see this.
SCHOLES: Look, like you did quite well in the gift shop. How about how much did you spend?
UNIDENTIFIED MALE: And I think, we're about the 2200 number.
SCHOLES: 2200.
UNIDENTIFIED MALE: Like 800.
SCHOLES: 800? I guess that -- hey --
UNIDENTIFIED MALE: I think, plus 1200.
UNIDENTIFIED MALE: But, it's for -- it's for --
UNIDENTIFIED MALE: Plus 1200.
UNIDENTIFIED FEMALE: $550. But I was here yesterday too, and I spent more.
SCHOLES: 500 on the dot. 500?
UNIDENTIFIED FEMALE: 500.
UNIDENTIFIED FEMALE: I think, 400.
SCHOLES: 400?
UNIDENTIFIED FEMALE: Yes.
SCHOLES: Seven? We have -- I have a winner?
UNIDENTIFIED FEMALE: 860.
SCHOLES: 860!
UNIDENTIFIED MALE: We are at about two grand.
UNIDENTIFIED MALE: About 3500 bucks.
SCHOLES: 3500.
UNIDENTIFIED FEMALE: I'm coming back tomorrow, and I'm spending more too.
SCHOLES: OK. What all did you get?
[16:55:01]
UNIDENTIFIED FEMALE: Two polo shirts for my son.
UNIDENTIFIED MALE: Women's hats, bags.
UNIDENTIFIED MALE: Couple of jackets, zip ups, and toys for the kids.
SCHOLES: Oh --
UNIDENTIFIED MALE: Gnomes sweater.
SCHOLES: The gnomes sweater.
UNIDENTIFIED FEMALE: The new kind of zip up sweatshirt this year.
UNIDENTIFIED FEMALE: Ball markers, golf balls.
SCHOLES: Oh, the little mini gnome.
UNIDENTIFIED FEMALE: My yellow tumbler. My favorite color is yellow, and they had it in yellow.
UNIDENTIFIED FEMALE: I got my dog, this leash.
SCHOLES: Oh, the dog leash.
UNIDENTIFIED MALE: The limited-edition Masters watch.
UNIDENTIFIED FEMALE: Yes.
SCHOLES: OK.
How much did this cost you?
UNIDENTIFIED FEMALE: 300.
UNIDENTIFIED MALE: Go the other way.
SCHOLES: Is how much did that cost you?
UNIDENTIFIED FEMALE: I don't even know. You know, you don't look at price tags when you're at The Masters.
UNIDENTIFIED MALE: I'm going to be sending out invoices when I get back home. Yes. So --
(END VIDEOTAPE)
SCHOLES: Yes. I mean, Paula, when you are in that golf shop, you kind of just lose yourself. You're like, I guess I need this polo, maybe the socks
too. Maybe my dog does need a Master's dog ball.
NEWTON: My dog.
SCHOLES: And so, I actually -- I actually asked the cashier one time when I was checking out this week. I was like, what's the most someone has spent
in front of you, and they said someone got $12,000-worth of items.
So, man, people just come to The Masters and they do some shot.
NEWTON: Oh, my gosh. That is a great piece of trivia there. Again, it's -- you know, for some people, once in a lifetime experience, and they are not
wasting it. Man, is that 12,000?
All right. Andy, I have to say you got have an extraordinary forecast as well to go along with the golf this weekend. We will be keeping a close eye
on it. Thanks so much. Appreciate it.
Now, U.S. markets closed mixed on consumer sentiment, and that hit new lows. In fact, as inflation ticked up, investors also keeping a close eye
on the talks between Iran and the United States and Pakistan, and that is set for just a few hours from now. The Dow closed down half a percent. All
three indices posting weekly gains, though, which is interesting, given all that is at stake, again, in just one negotiating session here.
I want to look at some Dow components. Nvidia and Amazon are leading the gains after announcing a new A.I. safety partnership with Anthropic.
Also involved -- also involved here is Cisco, it was down a percentage point, as well as Apple, which closed flat, and Microsoft, which is down
slightly. Leading the lows are Verizon, Salesforce and Nike.
Now, again, these markets actually came out of a very good week here, as they were looking forward to a cease fire. All important to look for these
markets will be a look into next week to see if at least the cease fire holds. And of course, if they open the Strait of Hormuz.
We will be covering all of it for you. Do not forget our coverage of Artemis II. This is QUEST. MEANS BUSINESS. I'm Paula Newton, "THE LEAD"
with Jake Tapper is next.
(COMMERCIAL BREAK)
END
