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Quest Means Business
IEA Chief Warns Europe Has Six Weeks of Jet Fuel Left; Australia Paying Hefty Price for Iran War; LIV Golf Funding Uncertainty; Cocoa Prices Tumble. Trump to Invite Leaders of Israel and Lebanon to White House; Trump Announces Ceasefire in Lebanon; Hegseth Warns Iran's Military, "We are Watching You."Aired 4:00p-5p ET
Aired April 16, 2026 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:18]
RICHARD QUEST, CNN INTERNATIONAL HOST, "QUEST MEANS BUSINESS": Closing bell ringing on Wall Street. The Dow, as you can see, comfortably in positive,
over 109. Morgan Stanley Investment Manager, hundred, doing the business. Come along, sir. Here we go. And oh, come on, put us out of our misery and
a one and two and a one, two, three, four. Trading is over. No records on the Dow, but we do have records on the S&P 500 and the NASDAQ, because
those are the markets and these are the stories we are talking about today.
President Trump says there will be a 10-day ceasefire between Israel and Lebanon. On this program tonight, Lebanese Finance Minister.
The U.S. Defense Secretary says the blockade on the Straits of Hormuz will last as long as it takes. Hapag-Lloyd is on the show tonight.
And the world's largest chocolate maker has slashed its forecast. The effects of falling cocoa prices.
We are live in London. Thursday, April the 16th. I am Richard Quest. I mean business.
Good evening.
President Trump has announced a temporary ceasefire between Israel and Lebanon. It is supposed to start an hour from now at 5:00 Eastern Time. The
President says he will invite Prime Minister Benjamin Netanyahu of Israel and the Lebanese President, Joseph Aoun, to The White House for talks.
There is no elaboration on what has been agreed so far.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES OF AMERICA: With Lebanon, it is very exciting. I think we are going to have a deal. We are going to
have a meeting first time in 44 years, and Lebanon will be meeting with Israel, and they are probably going to do it at The White House.
REPORTER: Mr. President, when do you think they would --
TRUMP: Over the next or two.
(END VIDEO CLIP)
QUEST: Now, the President said Hezbollah is on board. Israel has indicated it has no plans to withdraw from its positions in the Southern Lebanon
while ceasefire is in effect. So, what is the situation in Lebanon at the moment?
Israel has destroyed the last bridge over the Litani River. The Israeli Army says to us that they were attacking in the vicinity and did not target
the bridge directly. The Litani River divides Lebanon without any crossings. Tens of thousands of people in the south are cut off from the
rest of the population.
So, Yassine Jaber is the Lebanese Finance Minister. The Minister is with me now.
Minister, good evening. You're in Washington at the IMF and World Bank. What do you -- I understand, you know, you're away from Beirut and from
what is happening, but you are obviously in touch. What do you understand is the position in regard to this ceasefire?
YASSINE JABER, LEBANESE FINANCE MINISTER: Of course, Richard, it is a much needed ceasefire. You know, we've been requesting a ceasefire for a while
and I mean, so much destruction has been made, as you just mentioned, the last bridge that has been connecting the south of Litani to the rest of
Lebanon has been destroyed today.
I mean, and over one million people are displaced from their homes, from their villages, from the cities, and you have 150,000 in temporary shelters
in tents, et cetera. I mean, the ceasefire, especially, especially Richard, after the attack on last Wednesday, attack on Beirut itself, where a lot of
civilians were killed, there were a lot of people were injured.
QUEST: So is it your understanding that there will be this meeting between your President and the Israeli Prime Minister in Washington at some point
in the next couple of weeks?
JABER: Well, Richard, I just heard that, you know, from your program, I was watching your program and just heard that I have no information about it. I
mean, this has happened within the past couple of hours, and I had not been able to get in touch with Lebanon yet. You know, it is middle of the night
there now.
QUEST: Right now, in terms of the nature of any ceasefire and a way forward, the Lebanese government is no friend really of Hezbollah and will
be glad to see them disarmed and gone. But at the same time, you want Israel to stop shelling and destroying the Israeli -- the Lebanese
infrastructure.
How can you square that circle for the future?
[16:05:10]
JABER: Well, I think, you know, I mean, we have reached the point where, as I said, a ceasefire is needed. You know, I mean, the issue of disarming or
whatever, this can only be done with a political arrangement. So the Lebanese government, the Lebanese army will be, you know, handling these
issues, but it has to be given a chance.
As you know, Richard, we had a ceasefire agreement, you know, under Resolution 1701 and this -- for 15 months since the 24th of November 2024,
but over the 15 months, I mean, the shelling continued. It did not stop for one day, it did not stop, you know, assassinations, killings, all of that
and that didn't help actually, the Lebanese government and the Lebanese Army to really do much, you know.
QUEST: So let's just look to the future, Minister. Let's assume that the ceasefire can be put in place and that there can be some form of long
lasting, and I know that is a big if. Can you see any scenario in which a government in Lebanon can work with a government in Israel for common
economic good?
JABER: Well, it is too early to talk about that, Richard. I mean, today, let us first of all, see, as you properly said, let's see if the ceasefire
-- if the ceasefire works. If there is actually -- I mean, is the Israeli Army going to respect it or is it going to be like what happened in the
past 15 months that I mentioned that there were daily bombings, you know, drones all over the capital, all that was happening, you know, so let's
see.
I mean, first of all, if there is going to be goodwill, there is going to be respect of U.N. resolutions, and then the government in the future have
to discuss this issue.
QUEST: In terms of getting Lebanon's economy functioning. You know, you are a country. Yes, I understand you've been bombed the life out of it at the
moment, but you are a country with great resources and educated population, tremendous potential.
Besides the ceasefire, which I agree is a sine qua non of a future, what else do you need from the international community?
JABER: Well, at the moment we need -- we need support on the humanitarian level. That's why we came to Washington in spite of the of the war going on
in our country. We came here to speak to the World Bank to try and find the resources to put our case forward to the international community because I
think at the moment, the first priority is humanitarian. How do you deal with one million people that got displaced within 48 hours? And what do you
do? What are they going to be doing?
Even if there is a ceasefire today, there are parts of Lebanon that the people cannot go back to. There are homes that have been destroyed. So we
have a huge mission. Yes, we do have good prospects for the country. Actually, our government, since it took over in February 2024, we have
built a huge reform momentum. You know, we have done a lot of reforms. You know, we are working on a new banking law. We are working on resolving all
the issues that have accumulated since the past.
But unfortunately now it has been derailed for the moment. But we have every intention as we are dealing with the humanitarian issue, to continue
with the reforms to work with the IMF, to reach an agreement with them, to have an arrangement, to have a -- you know, a keep on, you know, building
and preparing the country for a better future.
QUEST: Minister, I am grateful. You've got very busy times, and I am thankful that you took time out in Washington to talk to us. Good to speak
to you tonight.
So to our political and global affairs analyst, Barak Ravid is with me. You were listening there to the Minister. He is not able to confirm because it
is just happening, whether there will actually be a meeting. It is the question of whether a ceasefire can be put in place.
Donald Trump says he is putting one in place. We've not heard this confirmed from either side yet. What do you make of that?
BARAK RAVID, CNN POLITICAL AND FOREIGN POLICY ANALYST: So several things. First, Israel confirmed that it will abide by the ceasefire. And I also
think I saw in the Lebanese press and the Arab press quotes from sources in Hezbollah that said that they will also abide by the ceasefire and I think
most chances are that this will happen.
You know, sometimes ceasefire takes some time to take hold. It is never in the first minute, sometimes it takes a few hours.
[16:10:10]
But I get the sense that both sides will abide by it. Hezbollah wants the ceasefire. Israel didn't really want the ceasefire, but when Donald Trump
asked, Benjamin Netanyahu, he cannot say no. And I also think that there is a very good chance that this ceasefire will not only be a 10-day ceasefire,
as it is officially defined, but will be extended.
QUEST: Okay.
RAVID: Donald Trump also said that a meeting between Netanyahu and President Aoun of Lebanon could take place in The White House within a week
or two. I don't know if that is going to happen, but if it will, this is a real historical thing that Trump will be able to say, here is a real
achievement.
QUEST: Okay, let's just take that because I asked the Minister, you will have heard me assuming this all goes, can you see a scenario where the two
governments can do business, albeit for distance? And he didn't say yes. He said it is too early to talk about that.
If there -- to have Aoun and Netanyahu meet, might have great performative value, but if nothing comes from it, what is its purpose, you tell me?
RAVID: First, I think performative value is value. That's one thing. Second, in the statement, the joint statement that the State Department put
out an hour ago to describe the understanding between the parties, there were some pretty significant sentences. The first one is that Israel and
Lebanon, for the first time in history, recognize each other's sovereignty and territorial integrity.
This means that Lebanon recognizes Israel, and this means that Israel does not have any territorial claims from Lebanon, meaning it commits to
eventually, if there is a peace deal, pull out its troops from Lebanon. That's number one.
Number two, this statement says that both countries, both governments, announced that they are not in a state of war anymore. This is a historic
statement. Nevertheless, those are just words. They are important, but they are just words.
On the ground, Hezbollah still exists, I think that will be the challenge.
QUEST: So that is the problem -- that's the problem. Hezbollah -- look, my enemy's enemy is my friend to that extent. The Lebanese government would
certainly like to see Hezbollah also removed as a force. But how realistic is that?
RAVID: Well, I think what happened today and if there will be a meeting in The White House, I think it will only increase. There will be more and more
political pressure on Hezbollah to disarm, and this political pressure will not only be from within Lebanon that people went through terrible 40 days
in this country, and the majority of Lebanese did not want this war.
Hezbollah entered this war to help Iran. The majority of Lebanese didn't want to get involved, and I think that many countries in the Arab world,
mainly Saudi Arabia will put a lot of pressure in order to move forward with the disarmament of Hezbollah. It is not going to happen immediately.
It is not going to happen in two weeks or in two months. It is a process, it will take time.
But I think that what we saw today is the most significant breakthrough in relations between Israel and Lebanon for decades. Maybe, maybe for -- maybe
more than any other time in both countries' history.
QUEST: I am grateful. Thank you, sir, we will talk more. This is going to be one we will talk about again and again.
RAVID: Thank you.
QUEST: The whole disruption in the Gulf has forced one of the world's biggest shipping companies to suspend multiple routes. The CEO of Germany's
Hapag-Lloyd is here. There you are. There you are, sir. Stay where you are and we will talk. We will talk shipping and all things like that after the
break. QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
[16:16:57]
QUEST: President Trump says the United States could reach a deal with Iran before their ceasefire agreement expires. He told reporters that the U.S.
blockade is proving as effective as airstrikes, and that more talks could take place this weekend.
The Pentagon says it is prepared to maintain the blockade as long as it takes for Iran to make concessions.
Pete Hegseth, the Defense Secretary, says the U.S. is ready to resume fighting if needed.
(BEGIN VIDEO CLIP)
PETE HEGSETH, U.S. DEPARTMENT OF DEFENSE SECRETARY: We will start with a message to Iran's military leadership, to the K.H. leadership and IRGC
leadership, we are watching you. Our capabilities are not the same. Our military and yours, Remember, this is not a fair fight and we know what
military assets you are moving and where you are moving them to.
(END VIDEO CLIP)
QUEST: Now, the blockade has forced the German shipping company Hapag-Lloyd to radically alter its services. I am going to show you now the various
different routes and how they have changed.
Now, this route, the Gemini Asia Gulf Express from China, right around Southeast Asia, along through Southeast Asia up there, that of course, has
been completely shut down. All of these ports across the continent are not receiving cargo from the Middle East, because, of course, this one here
relies on Jebel Ali, which is the massive UAE free port.
And if you can't get in there, well, you're not going to be able to make this particular route. So, then you go from India to the Gulf for obvious
reasons. This is far more -- this is more difficult because it is taking advantage of many more ports within the Straits of Hormuz and the sea, and
you can see how that is being affected. You can't really get down there which means of course, a crucial area, the world's most populous country is
now cut off from the Persian Gulf.
Look at Kuwait, and you certainly see the difficulty for Kuwait. The Kuwait Feeder Service, as it is known, is suspended as well. Routes operating have
been told to skip certain ports to try and make up. One example, again, Jebel Ali is here. The disruption after disruption after disruption.
So how has it all affected Hapag-Lloyd's share price? You know, it is down obviously from its highs of 160 euros down to 120. But I am surprised its
holding up right as well.
More important is the human toll. They have six ships that are stuck in the Gulf at the moment. Dozens of crew members on board. They have access to
food and water.
The chief executive of Hapag-Lloyd is Rolf Habben Jansen. He is with me now.
Sir, it is good to see you. I am grateful.
I guess, you know, our thoughts are always first and foremost with those people most affected and those are the seamen and women who are stuck in
the Gulf.
ROLF HABBEN JANSEN, CHIEF EXECUTIVE, HAPAG-LLOYD: They are, and at the moment, as you said, we have six ships stuck there with about 25 people on
board of each of the ships so that makes 150 people. And of course, we are keen to get them out, but at the moment that's unfortunately not possible.
We should not forget though, that we also have several hundred people working in the Emirates and a couple of other countries there in the Gulf.
[16:20:10 ]
Many of them have gone back to their home countries, but as the situation now seems to stabilize a bit, we are also getting quite a few of them
actually back into the office as from this and next week.
QUEST: So losing access to those Gulf ports, how would you quantify it, in terms of the whole, you know, you're Hapag-Lloyd essentially ferry service
of cargo around the world, which you do extremely successfully. If you take that out, you can get from Asia to Europe the long way. You can take things
round and about upside down. But it is a real puzzle.
JANSEN: It is, and of course, getting in and out of the Upper Gulf is nearly impossible because yes, there are a few land bridges, but they have
nowhere near the capacity that you would have when you can utilize the ships. So yes, that's a big problem, and in terms of the size of it, I
think if you look at Hapag-Lloyd's roughly seven percent of our business is related to the Upper Gulf.
So for us, that means that we miss about 15,000 or 20,000 to use a week that we normally would be moving.
QUEST: What is also, of course, worrying is it is not just the Upper Gulf. You've also got the Red Sea, you've also got all of these other areas,
you've got the Houthis in other parts of the world and that in itself is causing more disruption.
What for you -- which industries do you think are being most affected by all of this?
JANSEN: I think in the end, everybody is affected by that. Of course, for people in the Upper Gulf, there, it is very much about food. That's
probably the most important, apart from the limitations that there are, of course, on oil exports.
When you look at the Red Sea, that of course is a situation that we have now faced for quite a long time. Earlier this year, we tried to go back to
the Red Sea, but that then turned out not to be possible just yet. I think, though, that meantime, at this point in time, the impact of that on most of
the supply chains is not so significant because we've had that situation for now almost two-and-a-half years, which means that most of those supply
chains have just been adjusted to longer transit times that we typically now see from Asia to Europe, or also to the U.S.
QUEST: On this question of the longer time and the reworking of the supply chain. For Hapag-Lloyd, and the ability to keep routes open. So, for
instance, at some point you're going to have to be faced with the question, shall we go around the Straits of Hormuz? Shall we go back to the Upper
Gulf? Shall we go into these areas?
Now, I am going to save you the time of telling me that safety is first for all your -- for all your ships and your sailors. But you're going to have
to make that decision at one point and what will be that based on?
JANSEN: That's very difficult to judge. I mean, we had a similar situation on the Red Sea where we have been watching that on a weekly basis. In the
beginning of this year, we said, let's make a plan to gradually go back through the Red Sea. Then we assumed that we would be able to have close
protection from Aspides, that in the end turned out to be a lot more difficult than we anticipated, which meant that we had to adjust again the
plan and go back around the Cape.
I think when you look at the situation that we see today around the Strait of Hormuz, that could change quite quickly, but it could also take longer.
The challenge there, of course, is that contrary to what you have on the Red Sea, you basically have no alternative because even if you want to go -
- if you don't want to go through the Red Sea, but you need to go to the Mediterranean, or even if you have to go to Jeddah, you can still go
around.
It takes a lot longer, but you can still get there. So that's of course not possible if you have to go in -- want to go in and out of the Upper Gulf.
QUEST: You know, I say this half sort of flippancy, except it is so serious. You've got a -- you've got the danger of going around the Straits
because of Iran. You've got the U.S. blockade, which would prevent you going anyway. You're damned if you do, and you're damned if you don't.
JANSEN: Sort of. But that's also why, as you said, you know, we shouldn't say it, but it is still safety first, yes. And that's why most of our ships
are still at anchor in the Gulf at this point in time.
QUEST: Really grateful, sir. Thank you for talking to us exclusively tonight, giving us -- it is really important that we actually hear the sort
of companies behind the news and that puts perspective into what we are all talking about. I am grateful you joined us tonight.
Thank you.
[16:25:10]
Pope Leo is criticizing what he calls tyrants for spending billions in the wars around the globe. The Pope made the comments during his stop in
Cameroon, where tens of thousands of people have been killed in separatist conflicts in the country.
The Pope is calling for an end to the bloodshed. Our Vatican correspondent, Christopher Lamb has sent this report.
(BEGIN VIDEOTAPE)
CHRISTOPHER LAMB, CNN VATICAN CORRESPONDENT: Well, thousands have turned out to see Pope Leo here in Bamenda in Cameroon. Leo, coming to this part
of the country where there has been so much conflict between English- speaking separatists and the Francophone government and people giving him a joyous welcome.
And Leo himself seems to be in his element in this part of the world. Of course, Leo, a former missionary in the Global South, spending years in
Latin America here feeling very much at home in Africa. Now, Leo had a very strong message at a peace meeting in Bamenda.
This is what he had to say --
POPE LEO XIV, BISHOP OF ROME, HEAD OF THE CATHOLIC CHURCH AND SOVEREIGN OF THE VATICAN CITY STATE: Woe to those who manipulate religion in the very
name of God for their own military, economic or political gain, dragging that which is sacred into darkness and filth.
The masters of war pretended not to know that it takes only a moment to destroy it. And often, a life is often not enough to rebuild.
They turn a blind eye to the fact that billions of dollars are spent on killing and devastation, yet, the resources needed for healing, education
and restoration are nowhere to be found.
LAMB: Leo, concluding his day in Bamenda with a mass here at the airport, with thousands here waiting to see him and to take part in this very
special celebration.
Leo here in Africa, in Cameroon, as part of a long four-country visit to the continent.
Christopher Lamb, CNN, Bamenda.
(END VIDEOTAPE)
QUEST: President Trump is not taking kindly to Leo's rhetoric, calling on him to stop acting like a politician. This evening, Christiane Amanpour
spoke to the archbishop of Chicago, who defended Pope Leo's comments.
(BEGIN VIDEO CLIP)
CHRISTIANE AMANPOUR, CNN INTERNATIONAL ANCHOR: Tell me why this kind of escalation of words is happening?
CARDINAL BLASE J. CUPICH, ARCHBISHOP OF CHICAGO: Well, I think it is in keeping with his obligation and his sacred mission of sharing the gospel
and that, I think is something that has always been a part of the church's teaching that tyrants and those who wage wars really do harm to the common
good.
Those teachings go back many years and so, he is in keeping with that mission.
AMANPOUR: Do you think, Archbishop, that Trump is right or the others in the administration are right when they think that Pope Leo is addressing
him with these comments. And is he?
CUPICH: Well, I think that he is addressing the -- as he says, the zeal for war, where war is now in vogue. For me, it has all the appearance of an
organized effort to discredit and marginalize voice of the Catholic Church in the public square and it would be really sad if this turns out to be a
new chapter in the sad history of anti-Catholicism in this country.
(END VIDEO CLIP)
QUEST: Interestingly, tonight, Donald Trump says "I have a right to disagree with the Pope," he told reporters when asked about it. He says --
the U.S. President says, "The Pope can say what he wants and I want him to say what he wants, but I can disagree. Understand this is the real world,
it is a nasty world."
Rising oil prices are putting pressure on European airports, a top energy official says jet fuel might run out in six weeks. In a moment.
(COMMERCIAL BREAK)
[16:32:08]
QUEST: Hello, I'm Richard Quest. We have a lot more QUEST MEANS BUSINESS. Europe could be on the verge of running out of jet fuel. The head of the
IEA tells the AP flight cancellations might be next. And shares in the world's biggest chocolate maker plunge as it warns of the impact of falling
cocoa prices.
We will get to all of that after the headlines because this is CNN and here are the news comes first.
A 10-day ceasefire in Lebanon is due to take effect in around half an hour from now. President Trump says he'll invite the leaders of Israel and
Lebanon to the White House soon. He says the deal includes Hezbollah. Israel says it did not agree to the Hezbollah demand to withdraw troops
from Lebanon.
Ukrainian authorities say a massive air attack by Russia killed at least 18 people across the country. The strikes destroyed homes and set fires in
Kyiv and other major cities. The Ukrainian Air Force says Russia fired 700 drones and dozens of missiles. It's one of the biggest attacks so far this
year.
President Trump has nominated a former public health official to lead the U.S. Centers for Disease Control and Prevention, the CDC. Doctor Erica
Schwartz is a former Coast Guard officer and deputy surgeon general. The agency's former director was ousted in August after clashing with the Trump
administration over vaccine policies.
Europe could reportedly run out of jet fuel by June, according to the head of the IEA, International Energy Agency. He told the AP he expects European
carriers to soon start canceling flights if the strait remains closed. The fear is shared by Europe's airport, the trade group there warned of
systemic shortages by the end of the month. The cost of what is there has soared by nearly 70 percent since the war started.
"Independent's" travel correspondent Simon Calder, he joins me now.
Simon, this is, I mean, it's a one level. It's obvious in the sense that the oil that was in the refineries has now got to be -- is being used up
and no more has been replaced it. So what are airlines going to do? We've already seen some moves.
SIMON CALDER, TRAVEL CORRESPONDENT, THE INDEPENDENT: Yes, we have. Now the one thing I disagree with the head of the IEA about warning that fuel will
run out is that I think that is, frankly, far too blanket a statement. What he needs to say is that there will start being material shortages of
aviation fuel by then, and talking to the big airlines, I've talked to the biggest low cost airline in Europe, which is Ryanair, they say we're
absolutely fine until mid to late May.
[16:35:02]
After that, if the Strait of Hormuz is still closed, then we will see some problems at some of our airports. EasyJet, the second biggest airline for
budget travelers in Europe, is saying, yes, we're absolutely fine all the way through until mid-May.
QUEST: Right.
CALDER: We're not sure after that because, well, frankly, we don't know what is happening.
QUEST: Right.
CALDER: But we are not going to see suddenly all of Europe's airports grounded. You will initially start seeing, I suspect, some shortages at
particular airports and maybe in particular countries.
QUEST: Right, but --
CALDER: But actually the airlines can work around that. We've seen one or two airports in Italy running short of fuel, but actually only the smaller
airports that airlines will just, OK, well, that's fine. We'll arrive with enough fuel in our tanks to fly out again.
What we are seeing already, Richard, is cancellations because of the high price of fuel. I'm booked on a flight tomorrow. That was canceled. They
said sorry, demand is too soft. Fuel price too high.
QUEST: Right. But at what point, Simon? Simon, so we saw Lufthansa making some fleet announcements of, that they're going to retire some older planes
sooner. We know in the U.S. and United has cut back by 5 percent. Would you expect proactive measures by, say, the IAG group, Lufthansa's group and Air
France-KLM to start -- to prioritize the more profitable and more important routes in their spider's web?
CALDER: Well, I think they already are. And you can see that, for instance, with United, which is basically right at the start of the crisis, it said,
OK, we are -- we are getting rid of about 5 percent of our schedule, and that will be the 5 percent, which when aviation fuel is relatively cheap,
was marginally profitable. And when aviation fuel doubles in price, then they become very unprofitable. And so it's better to keep those aircraft on
the ground. We're seeing that in various other parts of the world.
QUEST: Right.
CALDER: And typically we'll see a reduction in flying and an increase in fuel surcharges. Of course, the two things go together.
QUEST: But, Simon, all the airlines buy their fuel from essentially the same people. I mean, the fuel is pumped into big tanks at the offsite to
the airport and then sent underground. So you're going to end up with who gets what. The fuel suppliers are going to have to start, you know,
rationing or choosing who gets what.
CALDER: Yes. And you could have some almighty auction with the price going even higher. I think what's much more likely to happen is that the airlines
collectively will say, OK, we're going to reduce our schedules by, say, 20 percent, or you might find national governments or the European Union
imposing a cut like that.
Now, that would be unprecedented but these are strange times. If that were to happen, a lot of (INAUDIBLE) would be thinking, that's 1 in 5 flights.
What about my vacation? What about my important family or business trip? But actually, because of the high frequencies that you're seeing on so many
routes in and from Europe, you could actually thin out the schedules. And the main losers from this would actually be the people who are being
hesitant about booking at the moment, because they might find that actually, for example, easyJet has reduced its flights from London Gatwick
to Nice from six to five or four a day, and there aren't any seats left or the ones that there are, are costing $500 one way.
QUEST: As I just -- funny you should choose that one because I've got to go down to Nice in a couple of months. And I discovered the BA nonstop from
London to Nice was 1400 pounds. But anyway, there we are. That's a -- that's a story for another day.
Good to see you, Simon. Thank you for joining us.
Now, Australia's finance minister, the treasurer, says his country has about a month's supply of jet fuel left. And the bigger worry is that the
war will put additional pressure on the Australian economy. Inflation has picked up. Treasurer Jim Chalmers told me the cost of the war has already
been serious and very likely could get worse.
(BEGIN VIDEO CLIP)
JIM CHALMERS, AUSTRALIAN TREASURER: It feels like a very dangerous moment for the global economy. The consequences and the costs of this war in the
Middle East are already very serious, and they risk being quite severe. We saw that in the International Monetary Fund scenarios, which were released
earlier this week. And so I think there's a level of concern here amongst economic ministers gathered in Washington, D.C., that even when the Strait
of Hormuz is properly reopened again, we'll still feel the consequences of this oil shock for some time.
[16:40:00]
It's possible that the conditions in the global economy get more difficult before they get easier. And so all of this is playing out in our
considerations at home in Australia, and particularly when it comes to putting together the government's fifth budget.
QUEST: And that's the big problem, isn't there? Because, as I was talking to the chief economist at the IMF, the amount of headroom, fiscal headroom,
as you say, is limited, not just you, other governments, but at the same time, you have to put in place measures to help business and homes and
households who are affected. How are you balancing that?
CHALMERS: Well, the primary way that we can help, the most effective way that we are helping already is to secure more supply. Whether it's
uncontracted shipments in and around the world, securing more of that for Australia, engaging with our industry, with our international partners.
Even in the course of the last 24 hours, I've met with economic ministers from the countries which provide more than 50 percent of our diesel, around
three quarters of our petrol and our jet aviation fuel.
And so all of that engagement is the best way that we can help to secure more supply. Beyond that, we've cut petrol taxes temporarily, and we're
considering other ways to support families and small businesses as well, because they're doing it especially tough.
You know, the Australian people and Australian small businesses, they don't choose to circumstances of this war in the Middle East, but they're paying
a hefty price for it. And so we're doing what we responsibly can to help people through that, recognizing the other pressures in our economy,
including inflation and including some of those fiscal pressures.
QUEST: I know the reserve bank's independent, but as they're looking at higher inflation, what argument would you use if you were asked for them to
stave off raising rates, even though inflation has been above target for some considerable period?
CHALMERS: Well, as you correctly anticipated in your question, Richard, I don't give free advice to the Independent Reserve Bank. There are good
reasons why Australian treasurers don't do that. But I do acknowledge that whether you're making policy, monetary policy, as a central bank governor
or a board member, or whether you're making fiscal policy as a treasurer or a governor or a government, there are some difficult balances to strike
here.
We are expecting higher inflation. We are expecting slower growth. And so we have to weigh those pressures up. Now, I'm confident as a government in
our budget that we will get the balance right. But I'm not complacent about it because we're hostage to those developments in the Middle East.
But also the other thing that's important to your viewers, Richard, we're thinking about Australia, is we go into this period of difficulty with some
very considerable strengths. You know, the IMF data that came out this week said that Australia's got one of the three strongest budget positions in
the G20, for example. We had unemployment come out yesterday at 4.3 percent. So very low unemployment, lots of jobs still being created in the
Australian economy.
We had faster GDP growth than any major advanced economy to finish 2025. And so we've got a lot coming at us from around the world. But we've got a
lot going for us as well. In Australia, it's a very good investment destination. We've got a lot of strengths even as we go through this
difficult period together.
QUEST: Treasurer, finally, you know, be blunt, how pissed off are you that you're put into this position, arguably a war of choice that with
ramifications that hadn't been thought through? You had an economy that was chugging along very nicely, and now all of a sudden there are black clouds
upon in every horizon, in every different direction.
CHALMERS: Well, it's certainly true that towards the end of last year, we were seeing some very welcome private sector momentum. We were seeing
momentum in dwelling investment and in other ways. And so to the extent that we're now dealing with another economic shock, of course, that's
frustrating. And it's a consequence of decisions that we're not involved in, but which our Australian economy and our people and small businesses
are paying a hefty price for.
I think that's self-evident. And that's another one of the reasons why, from an economic point of view, the end of this war can't come soon enough.
There have been some welcome developments in discussions around ceasefires, but we need to see an enduring end to this war. We need to see the
ceasefire stick. We need to see the Strait of Hormuz open in a meaningful and ongoing way so that we can try and get the show back on the road.
(END VIDEOTAPE)
QUEST: That's the Australian chancellor, treasurer as he's know, of course, Jim Chalmers.
And so speculation now that the future of the LIV Golf League could be in question. What's gone wrong? Coy Wire is with me, after the break.
(COMMERCIAL BREAK)
[16:47:22]
QUEST: The CEO of LIV Golf says it's business as usual. And yet there are these reports that the controversial breakaway league could lose its
funding. It was launched in 2022. The idea was to rival the PGA Tour by offering players massive sums of money. It's primarily funded by Saudi's
sovereign fund PIF, Public Investment Fund.
Coy Wire is with me. What's the latest? I mean, LIV was supposed to do something with the PGA Tour. That never really happened. Now there's this -
- well, you tell me, please.
COY WIRE, CNN WORLD SPORT: Yes, that's exactly right. I'll get to that in a second, Richard.
LIV, as you mentioned, insisting it's business as usual. The tour teeing it up in Mexico on Thursday. But behind the scenes, the tour is being forced
to quiet these growing concerns about its long term future amid some swirling shutdown rumors.
Now, LIV is backed by the Saudi Arabia's Public Investment Fund, as Richard said, which has poured a reported $5 billion plus into the breakaway tour
since its inception in 2022. But global economic pressures, including volatility in the oil markets, has raised questions about future spending,
according to reports from the "Wall Street Journal" and "Financial Times."
Now, earlier Thursday, a Saudi source familiar with the matter told CNN that the PIF would not be pulling out of LIV Golf this year, saying in
part, "The PIF is in for this year, but is restructuring as they were supposed to merge with the PGA Tour. But that deal did not go through."
They added that, "They had been approached by some for investment or buyout, but had to put those on hold for the PGA talks. As of now, they are
looking at all options."
QUEST: Right.
WIRE: Now, amid all the rumors, Richard, LIV CEO Scott O'Neil sent a letter to employees saying in part, "While the media landscape is often filled
with speculation, our reality is defined by the work we do on the grass. We're heading into the heart of our 2026 schedule, with the full energy of
an organization that's bigger, louder, and more influential than ever before."
QUEST: All right.
WIRE: Richard, so you have LIV vehemently saying that they are going on as they typically would. They have lost superstars like Brooks Koepka, Patrick
Reed recently. They still have Jon Rahm, Bryson DeChambeau and Phil Mickelson.
Now, meantime, Richard, you remember one person that never gave LIV the time of day is now back-to-back champ, Masters champ Rory McIlroy. He's
been a vocal critic of LIV since its inception. Let's take a listen to what he said about the tour in 2022.
(BEGIN VIDEO CLIP)
UNIDENTIFIED REPORTER: What's the damage already done, do you feel, to the sport of golf?
RORY MCILROY, SIX-TIME MAJOR CHAMPION: I think it's just ripped it apart at this point. It's -- not to the game of golf, right? You know, golf is golf
as a game is massive. But men's professional golf is a very small part of that. But that's the world that I operate in and what it's done to the
world of men's professional golf is ripped it apart, which is unfortunate.
[16:50:08]
I'm trying to do things all for the right reasons. And, you know, those 18 guys over there have done things that I don't agree with. And, you know,
it's a shame that it's come to this point.
(END VIDEO CLIP)
WIRE: You can imagine, Richard, that Rory will be asked about these latest rumors surrounding LIV. He may have a lot to say, but for now, LIV says
nothing's changed.
QUEST: I'm grateful to you, Coy. Thank you very much.
The global supply of cocoa has soared. It's doing real damage to chocolate makers like Barry Callebaut. The shares plunged more than 15 percent. The
only good part about all of this is I've got some chocolate in front of me, or I will have in a second or two. But we will explain why this is a
serious business and turn rather bitter.
(COMMERCIAL BREAK)
QUEST: Oh, gosh. Look at it. Chocolate, chocolate, chocolate.
Barry Callebaut, the world's largest chocolate maker, is slashing its profit forecast. Shares down very sharply. And one reason, they say, is the
weak outlook over the supply. Prices have plunged since 2024. Strong harvests in West Africa created a record surplus of beans. Demand has not
kept up. Look at that. Barry Callebaut says its sales will soon rebound but warns earnings will be under pressure for longer.
Hanna Zaldy is with me. This is classic. You're going to have to perform for your supper here. You get chocolate if, if --
HANNA ZALDY, CNN BUSINESS SENIOR CORRESPONDENT: Right, right. OK.
QUEST: Tell me what's gone wrong.
ZALDY: I may get ahead of myself.
QUEST: What's gone wrong here?
ZALDY: So we had prices surge in 2024, $12,000 a ton. You saw it on the graph there a record high because of poor weather in West Africa. Ghana and
Ivory Coast produce about 60 percent of the world's cocoa. Prices now coming way down. But for Barry Callebaut, you would think that would be
good news. Cocoa prices are coming down. Barry Callebaut makes chocolate, but it's a timing issue.
So they link the price of the chocolate they sell to their customers, which are the likes of Nestle, Mondelez, et cetera. They link that to the current
market price of cocoa, cocoa futures. So you saw on the chart there, it's about 3500 dollars. But they bought cocoa months ahead when prices were
much higher. So now they're still making chocolate with that cocoa.
QUEST: So they're buying the raw materials at one price but selling the chocolate at spot or whatever -- what is going now.
ZALDY: Well, exactly. I mean, and the idea, the idea of linking it to the spot price is to pass the cocoa cost on. So it makes sense, except when you
get these wild price swings.
QUEST: OK, but are we going to see cheaper chocolate in the shops?
ZALDY: That's the question. Because as you well know, the price of the chocolate that we buy on the shop shelf, only one small part of that is
cocoa.
[16:55:06]
There's energy input costs. There's transport, there's packaging, there's marketing and branding. So the short answer is no, not soon. Certainly
didn't come in time for Easter. Some analysts say we may later on in the year, perhaps in time for Halloween.
QUEST: The one I'm thinking of, the people I'm thinking of are the chocolate or the cocoa growers. And I've been to the (INAUDIBLE), and I've
seen them. They always get the hardest end. I mean, even with cooperatives and negotiated prices and price control boards and those sort of things.
What's going to happen there?
ZALDY: Excellent question. And I think that they always get the short end of the stick. That is true of farmers all over the world and farming all
over the world. Barry Callebaut didn't really say much about that. But they are one of the world's biggest or the world's biggest supplier of
chocolate. So you would imagine they would have a good insight into that. And I think it is an important point to make because this chocolate here,
although it may cost two pounds, three pounds on the shop shelf.
QUEST: Oh, imagine that. Well, whatever next. You know, come on, you're being disingenuous. You're about 95 percent. You've just gone for the --
ZALDY: That's true. I was telling Richard before we came on that I eat, I eat 90 percent dark chocolate. OK. That's the one. I'll take this --
QUEST: Take the lot.
ZALDY: I'll take all of it. OK. Thanks.
QUEST: Thank you very much.
We will have a "Profitable Moment" after the break. QUEST MEANS BUSINESS. Good evening.
(COMMERCIAL BREAK)
QUEST: Tonight's "Profitable Moment."
I was booking an airline ticket today as part of my travels towards the summer for "World of Wonder." And I suddenly thought, hang on, that fare,
New York-London-New York, that's extremely expensive. That's more than usual. And then I looked at the matrix to see exactly how the fare was over
the course of the previous and the following weeks. And it was the same. And I thought, this is very odd.
And then it dawned on me. Price increases as a result of fuel costs. Sure enough, I would say that the tickets are about 20 percent more than we
would normally have paid or previously have paid. And that's exactly what we're all going to experience in the days and weeks ahead. As the fuel
price stays high, there were some -- maybe fuel surcharges, but I don't think so in Europe. You're not looking at fuel surcharges. You're looking
at higher core prices, higher ancillary prices.
And that's how it's going to be reflected. And that, of course, assumes that there will be jet fuel and that your flight isn't canceled. And if
your flight is canceled, well, then you're out of luck anyway. But it could all -- we just don't know. Certainly I do not see prices coming down in the
short term. Sorry about that.
And that's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in London. Whatever you're up to in the hours ahead, I hope it's profitable. Thank you
for your time.
END
