Return to Transcripts main page
Quest Means Business
Iran Declares Hormuz Strait Open But Imposes Conditions; Oil Drops, Stocks Up After Iran Says Hormuz Strait Is Open; Sources: CEO Of Anthropic Meeting With Trump's Top Adviser; United Kingdom Chancellor Warns Of Long- Term Impacts Of Iran War; Pope Leo Spreads Message Of Peace In Cameroon; Kenyan Company Becomes Dominant Force In Iron Ore Sector; Exact Location Of Shakespeare's London Home Now Identified. Aired 4-5p ET
Aired April 17, 2026 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:25]
RICHARD QUEST, CNN INTERNATIONAL HOST, "QUEST MEANS BUSINESS": Closing bell ringing on Wall Street. It is a Friday and what a Friday. As you can see
from that sea of green that we've had throughout the course of the day. We will get to the reasons in just a moment.
Come on, Pinnacle West, one, and a two and a one, two, three, four. Trading is over. The Dow is up over one and three quarters. It had been a thousand
points up earlier in the session. So we are off of the tops if you will.
As for the triple stack, that shows the story of records on the S&P and records on the NASDAQ, record highs. Lots to talk about. Those are the
markets and the events we will be dealing with over the next hour.
Oil prices drop more than eight percent after Iran's Foreign Minister declares the Straits completely open.
The chief exec of Anthropic visiting The White House after the administration blacklisted his company's A.I. model.
And the Australian baker who will take your family recipe and put it on the menu. So when we were in Sydney, she recreated my mother's cheesecake.
We are live in London. It is Friday. It is April the 17th. I am Richard Quest and on Friday, as elsewhere, I mean business.
Good evening.
We begin tonight as Iran declaring the Strait of Hormuz open. Now, that sounds a fairly simple statement to make, but there are differing opinions
about what it means.
Iran's Foreign Minister said the waterway is completely open as a result of the ceasefire between Israel and Lebanon. The Revolutionary Guard says
commercial ships must use Iran's designated route, that's the northern bit, and military vessels are not allowed.
So President Trump claims Iran agreed to never shut down the Strait again and the President -- U.S. President posted that the U.S. blockade on Iran
remains in effect. Markets had a kneejerk reaction this morning. What we saw was Brent down at one point, 11 percent, Now you can just see it, it is
down nine percent and West Texas is also down.
You know the reasons why, because of the Straits and the idea that the Strait is now open and that the supply may get going again is what has
driven it down.
Nic Robertson is in Islamabad.
Nic, look, let's cut right to the chase here. Can you give us some light and guidance on exactly what the Strait is open means/
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Take one big step away to what the Foreign Minister of Pakistan, key interlocutor between the U.S.
and Iran said today while he was at a diplomatic conference in Turkey. He said the deal is about 80 percent done, 20 percent is remaining.
But the opening of the Strait of Hormuz today, the kerfuffle afterwards, the push back, if you will, from the hardliners who said the Foreign
Minister hadn't got it right, here is the additional details as you laid out. And by the way, further pushback, because President Trump said that he
was going to leave the us blockade in place, which the hardliners in Iran said violates the ceasefire agreement, indicating again, that they would
not open the Strait of Hormuz.
This shows us that there are tensions, as everyone expected, between the hardliners and the moderates in Iran. The problem is, it is the moderates
that have been doing the negotiation, and no one really knows what the test is going to be. And there is 20 percent of negotiations to go. So, we are
still in open water.
QUEST: But, Nic, there is a view in the market that the longer that there is a cessation of hostilities, the more difficult it would be to ramp them
up again and start it all over again, and therefore, at least this truce, whatever you want to call it, is likely to continue, which may lead to the
proper opening up.
ROBERTSON: You know, the markets have a remarkable ability amongst all the myriad and many brains that come from all different corners of the world to
sort of predict things. Also go down as fast as they go up sometimes. We all know that.
Look -- but you know, I am talking to sources here, Richard, and I think there is still a sense that this can all get done, but I think we all just
saw today that it can jump forward and then hit the rocks again.
But, you know, I've got to say, everyone I am talking to is trying desperately to make this work.
[16:05:10]
And as you say, the atmospherics of the ceasefire holding tells you a lot, that the both sides really would like to make this happen. But again, it is
the last bit that's the toughest bit -- Richard.
QUEST: Nic Robertson in Islamabad late at night, grateful that you're staying up late for us.
Whatever happens, you and I, over the course of the last few weeks, we've made it quite clear, oil and gas supplies returning to normal won't come
easily.
Rystad Energy estimates the war caused $58 billion worth of damage to infrastructure, a third of that in Iran. The head of the IAEA says it will
take two years for Gulf production to recover.
In the short term, suspended production, safety, security reasons, storage, all sorts of reasons, and then the shipping even with the Strait open,
tankers need at least 10 days to reach their destination.
Michael Stoppard is with me. The principal of Stoppard Energy.
Michael, you heard what -- I mean, where are we exactly in terms of what is available, what is needed and what is likely?
MICHAEL STOPPARD, PRINCIPAL, STOPPARD ENERGY: Well, first of all, thanks for the invitation to join you. It is great to be here.
QUEST: Sure.
STOPPARD: And we are living on borrowed time, and that is why there is this urgency among all parties to find a solution to this. I really think it is
quite striking that we are now seven weeks in and we haven't seen the more catastrophic outcomes that some forecast, but we are living on borrowed
time before we run out.
QUEST: Why do you think the futures market -- I mean, the spot market is up at 140 to 150, why do you think the futures contract has not reached there
yet?
STOPPARD: I think the markets believe that there has to be a solution to this problem and that it will be found, and that then we can get a return
to normality. What worries me and what concerns me is I don't see visibility on how that is going to happen.
QUEST: Okay. But they've stopped fighting. The Iranians say the Straits are open. We can have a definitional argument about that.
STOPPARD: Yes.
QUEST: The President says he is going to blockade until everything is sorted. You've got to admit, surely, that we are a little bit closer to
something good than the opposite.
STOPPARD: Well, it has certainly been a good news day, and I think that is why the market is reacting in the way that it is. We've heard very positive
signs from both sides of the confrontation, but we mustn't be buoyed by day-to-day tweets and statements.
QUEST: So how much oil do you think -- take for example, aviation fuel. How much do you think is out there?
STOPPARD: I think I mean, you're right to focus on jet fuel oil. This is the most concerning. I've been speaking to a lot of people concerned about
flights being cut. I think we are all concerned about the fact that flights will be cut. That is where the real initial pain point is showing up.
QUEST: Yes, but okay, so there are only a certain number of jet fuel companies. They get the stuff in, they refine it, it goes into tanks, it
goes by pipes. How will they manage that when it starts getting dodgy? Will they say to Lufthansa Group, all right, you know you want 5,000 tons this
week. You're only going to get 2,000. Make the best use of it as you can.
STOPPARD: There are only two ways you can resolve this. You either have to cut flights or price will be -- the arbiter price will decide. Price will
go through the roof until people have to cut flights anyway.
QUEST: Do you think we are looking at -- well, how long would it take to start replenishing the stocks in the refineries for jet fuel particularly,
do you think?
STOPPARD: I think weeks, we are talking weeks.
QUEST: Really?
STOPPARD: Yes.
QUEST: So whatever happens here -- even if out of those ships in the Straits, even if they start leaving tonight, we are weeks -- we are going
to have some form of mini shortage in about three or four weeks' time.
STOPPARD: I think this is the key point that the solution to this crisis, we are not talking days, we are talking weeks or rather months, depending
on which product you're looking at, yes.
QUEST: And look at the price again. Can we just show the two benchmarks? Where do you believe the natural floor -- when I say natural floor, I mean
--
STOPPARD: There is no natural floor.
QUEST: Yes, but what I mean by that is, you know, we were at 65 before and there was -- we were awash with oil. Bearing in the price premium for risk,
where do you think we will be?
STOPPARD: Well, my personal view is that prices are going to go up from those levels because I think we've seen, as you use the word kneejerk,
which I think is the right one, I think the market has responded, has overshot in today's selloff.
QUEST: Really? I mean, but that it always does that, doesn't it? It finds an equilibrium over time.
STOPPARD: Oh, we are seeing violent oscillations from day-to-day and that will continue, of course, we are in a very volatile situation. But my
feeling is that the risk overall is more to the upside and the downside over the coming weeks.
QUEST: What is your number one worry at the moment in terms of where we stand looking at all of this?
STOPPARD: Oh, my number one worry is that what we are currently talking about is a disruption to flows. What would be much more serious -- even
more serious would be a disruption to infrastructure, to asset integrity, and we are --
QUEST: But you heard my question to Nic Robertson that the cessation of hostilities, it is very difficult to start them up again.
STOPPARD: Let's hope so.
[16:10:10]
QUEST: You don't believe me?
STOPPARD: Well, I think we've still got two parties that are very separated and I am very cautious about drawing conclusions from day-to-day headlines.
I think we are in a very delicate and very volatile situation.
QUEST: On the really long term, how do we prevent this from happening again? Iran now has short of regime change and you know, that Iran now has
the -- you can build a pipeline, of course, out the other side of Saudi, but that will cost you billions and take years.
How do we avoid this again -- or do we not, we just live with it.
STOPPARD: I think we live with it. I think that's the answer. As you say, many of the solutions are long-term solutions, possibly solutions to the
next energy crisis.
But for the time being, we are where we are.
QUEST: Have a good weekend, sir. It is good to see you. Thank you, sir.
STOPPARD: Thank you very much.
QUEST: In a moment, the chief executive of Anthropic, heading to The White House after the Trump administration, effectively blacklisted his company
from government works, in a moment.
(COMMERCIAL BREAK)
QUEST: The chief executive of Anthropic is visiting The White House today, where he is meeting President Trump's chief-of-staff, Susie Wiles. The tech
company is locked in a battle with the administration over its A.I. model, Claude.
Last month, The Pentagon blacklisted Anthropic as a supply chain risk following Anthropic's refusal to expand the ways in which the U.S. military
could use Claude during warfare.
Clare Duffy is with me.
This is an interesting development, isn't it? It is a major development in a sense and I am wondering who -- you know, is this the olive branch being
offered?
CLARE DUFFY, CNN BUSINESS WRITER: Yes, Richard, it is going to be really interesting to watch the challenge for the government right now is they
are, as you said, currently engaged in this legal back and forth with Anthropic about their decision to blacklist its technology, calling it a
supply chain security risk, something that has only previously ever been applied to adversary technology.
They are engaged in that battle, at the same time, the government still wants access to this company's very powerful technology. Case in point,
this new model that Anthropic has released on a limited basis called Mythos, it has warned that there are serious cyber implications with this
technology because it could be abused by hackers, but it could also help organizations more quickly find cybersecurity vulnerability.
So you have to imagine that The White House doesn't want to miss out on this very important technology, powerful technology that is already causing
waves on Wall Street, in Washington. They are trying, I think, to find a middle ground here and not lose access to this company's technology
altogether.
[16:15:05]
QUEST: The other issue -- I know you've been looking at is, this whole question of A.I. vigilantes, anti-A.I. Tell me about exactly the concerns
now that are existing on this.
DUFFY: Well, Richard, I was looking into the suspect in the attack on OpenAI CEO, Sam Altman's home, Daniel Moreno Gama and looking at the
reaction to this attack.
Online, there are certain corners of the internet where people are actually celebrating this attack, calling Moreno-Gama a hero, saying it was
justified because of concerns over A.I. risks and this seems to be something that is transitioning increasingly from anonymous online comments
to in-person violence.
Three days before that attack on Sam Altman's home, an Indianapolis Council member had shots fired into his home after he approved a data center in his
district. I also looked into Moreno-Gama's online presence, he was commenting and involved in a number of online forums discussing A.I. risks.
He talked about wanting to Luigi tech CEOs, referring to the accused killer of UnitedHealthcare CEO, Brian Thompson. He spoke on forums dedicated to
StopAI and PauseAI.
Those are more mainstream safety organizations, and they both have disavowed this attack. I spoke with PauseAI CEO, Maxime Fournes. He told me
that in response to this, the organization is going to double down on what we've always done, he said, peaceful, lawful advocacy. I think it is very
important that moments like ours -- movements like ours, which are entirely peaceful stay on top of what is happening because there could be darker
movements that start rising.
So sort of a troubling trend, Richard, of again, these offline comments moving into the real world, putting people in this industry at risk. But I
think really speaks to the serious fears that people have about this technology taking our jobs, potentially posing an existential risk to
humans, which is something that the suspect, Moreno-Gama had talked about online.
QUEST: I am grateful for you this evening. Thank you very much, Clare. Good to talk to you.
The World Cup is less than two months away, at least the start of the tournament is expected to draw millions of football fans. As you'd expect,
across North America, the host cities are in full preparation mode and so are the fans.
In the city of Miami, now, interestingly, getting your hands on a ticket, that's difficult and it certainly won't be cheap.
(BEGIN VIDEOTAPE)
CAROLINA PEGUERO, CNN CORRESPONDENT: Not everyone has been lucky enough to secure tickets to the World Cup, a process that usually relies on
lotteries, but that hasn't stopped fans from continuing their quest for these coveted tickets.
ERICK SOLMS, FAN: I apply for the lottery. I did not get them, so I had to go through third-party reseller tickets.
PEGUERO (voice over): Eric, an Ecuadorian fan from Florida, is crystal clear on one thing, he cannot let this opportunity slip away.
SOLMS: Just looking for the right moment, the right time, and looking at the supply and demand.
PEGUERO (voice over): But how much does it cost to watch your national team at the World Cup?
SOLMS: One game, $400.00. The second game was going to be like around $800.00, and the third game, which is against Germany, which has the most
demand, it is going to be about $1,200.00.
PEGUERO (voice over): And that's not counting the other expenses like flights, food and hotels. Miami is preparing to welcome millions of
visitors in areas like Wynwood. The streets, murals and urban art are beginning to reflect pure football.
SORAYA ROBERTS, WYNWOOD CHAMBER OF COMMERCE: We are ready to host them. We have a variety of different activations. We have a lot of our members from
the Wynwood Chamber of Commerce hosting fan zones here locally.
PEGUERO (voice over): Something that small businesses also appreciate -- those anticipating a significant increase in customers and sales.
SEBASTIAN GALLEGOS, MARKETING MANAGER, CLASSIC FOOTBALL SHIRTS: Even on any given day nowadays, we could already see something like 350 people walk
into a store on a random Tuesday. So imagine with all of the -- all the supporters from like, for example, in The Netherlands, Scotland, all of
these people that come in extreme waves.
PEGUERO (on camera): Are you going to come to the -- any of the experiences that they have? The fan base experience?
KIMBERLY MCDANAGH, FAN: We love to.
LIAM MCDANAGH, FAN: They cost an arm and a leg.
PEGUERO (voice over): Begs the question, is it worth it?
SOLMS: Is it financially worth it? I don't know, but is it worth it? It is like a personal goal of mine to get off my bucket list. Absolutely!
PEGUERO (voice over): Carolina Peguero, CNN, Miami.
(END VIDEOTAPE)
QUEST: The global economy, we have been talking a lot about it this week. It stands to benefit, of course, if the Strait of Hormuz reopens. The
closure was enough to do real damage. But how much damage and where and the necessary measures? We will talk about that next. It is QUEST MEANS
BUSINESS. Good evening to you.
(COMMERCIAL BREAK)
[16:22:36]
QUEST: Hello, I am Richard Quest.
A lot more QUEST MEANS BUSINESS. U.K. economy was stronger than expected before the Iran conflict. The Economic Secretary to the U.K. Treasury, she
will be telling me about the damage and how they hope to repair it.
And the MasterChef Australia, Larissa Takchi tells me why she started baking other people's recipes. She gave my mother's cheesecake a go.
We will get to all of that, including the cheesecake, which was delicious, but only after the headlines, because this is CNN and on this network, the
news always comes first.
Iran has declared the Strait of Hormuz open. Even so, the U.S. says it is maintaining its blockade on Iranian ports. According to Iranian state
media, Tehran considers the is American blockade a ceasefire violation. The Revolutionary Guard says ships must use Iran's designated route.
After a week of attack by U.S. President Donald Trump, the Pope has said mass before a huge crowd in Cameroon, around 120,000 people there. It is
the biggest gathering yet, congregation for the Pope's four-nation tour in Africa, Pope Leo urged those present to reject every form of abuse or
violence.
Sources are telling us Anthropic's chief executive, Dario Amodei is meeting with The White House chief-of-staff today. The Pentagon recently
blacklisted the company's Claude A.I. model. Since then, details about Anthropic's new powerful Mythos tool have leaked. It is expected to be a
game changer in defense cybersecurity.
An agreement to reopen the Strait is part of a broader negotiation between the U.S. and Iran. President Trump has been expressing great confidence
that a deal can be reached in the coming days, saying Tehran has, in his words, the President's words, agreed to everything.
Brian Todd is in Washington.
Is that everybody else's understanding -- Brian.
BRIAN TODD, CNN CORRESPONDENT: That's unclear, Richard. You know, as you mentioned, President Trump very confident that a deal is going to be
reached in a day or two. There is reason for optimism right now, but there are also some conflicting messages between the U.S. and Iranian sides and
some conflicting messages within the Iranian regime itself. I am going to get to that in a moment.
But let's talk about kind of the broader picture.
[16:25:06]
The President, in an interview with CBS News, said Iran has agreed to everything, including, according to President Trump, working to remove
enriched uranium from Iranian soil and bringing it to the U.S. Well, that's the first part of the mixed messaging, because the Iranian Foreign Ministry
spokesperson says that Iran has not agreed to that. He denied that there is a deal to remove the enriched uranium from Iranian soil and bring it to the
U.S. So mixed messaging there, conflicting messaging on both sides there.
Also, a little bit of conflict regarding the blockade of Iranian ports by the U.S. military. Donald Trump says the blockade of the Iranian ports is
going to remain in effect, basically until a peace deal is reached, which he is confident, as you mentioned, will be in the next day or two.
But Iran has said if that blockade continues, that is a violation of the ceasefire. So, what happens when they discuss all of that? Is that going to
lead to a breakdown in the talks in the next day or two? That's going to be critical.
Also, conflicting messaging within the Iranian government itself regarding the opening of the Strait of Hormuz, leading to some questions as to
whether the Iranians themselves are on the same page among themselves. What I mean is this -- Iran's Foreign Minister, Abbas Araghchi has said the
Strait of Hormuz is completely open to all commercial traffic. But some hardline Iranian news outlets, Richard saying there will still be some
restrictions on Marine traffic.
The U.S. military has already turned back 19 vessels because of the blockade of Iranian ports. Is the Strait of Hormuz completely open? Is it
not completely open? You're getting all sorts of conflicting messages all over the place regarding these peace negotiations.
Again, with the blockade, with the opening of the Strait of Hormuz, and have they reached a deal to remove enriched uranium from the Iranian soil
or not? President Trump says yes, the Iranian Foreign Ministry spokesperson says no, no such deal has been reached.
So, where are we in some of this? Again, reason for optimism right now, Richard, but still some conflicting messaging that has to be resolved
between these two sides.
QUEST: Right. Right. Thank you, sir. Brian Todd in Washington.
That conflict had a significant impact on the world's economy, The IMF's global economic -- the WEO raised three scenarios. The best case, 3.1
percent growth assumes energy stabilizes. Today's announcement could help that. The economic harm is already real, even in the West, inflation in the
U.S. rose to 3.3. Consumer sentiment record low.
Nathan Sheets is Global Head of International Economics at Citi. We are glad that you are there, sir, at the IMF meetings in Washington to help us
understand what is happening.
Listen, core question -- core question -- as you look at it tonight, how much damage is already baked into the economic cake?
NATHAN SHEETS, GLOBAL HEAD OF INTERNATIONAL ECONOMICS, CITI: I am cautiously optimistic on that score. I think that certainly we've seen
enough damage that the next six weeks or so could be pretty rough. But if we are able to get the oil flowing through the Strait again fairly soon, I
am hopeful that the second half of the year might be closer to the IMF's best case scenario, as opposed to some of those other ones that you showed.
QUEST: It is also crucially important, from the Fed's point of view, because if things start moving now, well, the Fed can look through this
temporary blip in inflation, which is likely to sort of moderate or mitigate by the end of the year.
If things stay longer for longer, sort of higher for longer, they will have to act.
SHEETS: Yes. The Fed has got a real challenge here that even before the oil prices moved up with Iran, it had missed its inflation target for five
years in a row and inflation is not running at two percent, it is running at three percent, and as you have further inflationary pressures as a
result of higher oil prices, it does force the Fed's hand and reduce its scope to cut at a minimum.
And if its sustained, it may be necessary for the Fed to hike.
QUEST: Do you -- Donald Trump keeps wanting cuts in interest rates. I am guessing that you don't think there should be anything of the sort at the
moment.
SHEETS: I think that the best case scenario for the real economy is for the Fed to be on hold for as long as it can be, but no scope for cuts anytime
soon.
You know, the primary impetus of the cuts we saw was a softening of the labor market. But some of the recent labor market data have been a lot
stronger and have reduced the need for cuts, if anything.
[16:30:17]
QUEST: One of the beauties of Citi is the breadth and scale that you have in the United States, and that's at all levels. It's both in the M&A areas,
it's in the investment banking, it's in the corporate provision of services, and it's in retail banking.
So, what are you feeling percolating up from your customers?
SHEETS: I think, on the one hand, they are struggling with the uncertainties that are prevalent in the global economy. But on the other
hand, we have also seen in recent years, a global economy that is resilient and notwithstanding the challenges and uncertainties that have existed.
The economy has been able to continue to grow. And I think what our what our clients are struggling with, is how do we balance that uncertainty on
the one hand against the resilience we've seen on the other? And what does it mean for this episode?
QUEST: Nathan, I was just thinking, how many IMF and World Bank meetings have you been to over the years, do you think?
SHEETS: I would guess somewhere around 50 plus or minus a few.
QUEST: You do. You hold it up, but more than me. You hold it up well. Good to see you, sir. Have a good weekend. Thank you, sir.
SHEETS: Thank you.
QUEST: The Strait of Hormuz may be opening back up. The damage and destruction, the oil and gas sector has suffered won't be quickly
rectified.
The U.K., of course, will be talking in a second to the economic secretary to the treasury, in a moment.
(COMMERCIAL BREAK)
QUEST: Tonight's QUEST MEAN'S BUSINESS comes from London. And here in the U.K., stocks were up after Iran announced the reopening of the strait. It
comes as fresh U.K. economic data for February showed a 0.5 percent rise.
So, the economy is performing better than forecast, and has been for some months. The U.K. Chancellor Rachel Reeves has issued a warning about the
long-term impact of the Middle East conflict. Saying, that after extensive destruction, the damage is done.
With me is Lucy Rigby, the economic secretary to the treasury, and the city minister.
[16:35:05]
Minister, thank you. You are at the IMF and World Bank. Very grateful to have you with us tonight.
When Rachel -- when your boss, Rachel Reeves, when she says that the damage is done, we sort of know what she means, because we have had seven weeks of
this. But are you able to quantify what that damage the extent is?
LUCY RIGBY, CITY MINISTER, UNITED KINGDOM: Hi, Richard. It's great -- it's great to be with you here from Washington.
And look, the chancellor and I are here in D.C. at the IMF to be making the case for a secure and resilient economic growth.
Now, obviously, you referred to the conflict and the disruption that we have seen to global supply chains, and I think that just underlines what
the chancellor has been talking about for really quite some time now, and indeed putting this into practice in the U.K., which is making the case for
that secure and resilient growth.
And from day one in the U.K., we have been talking about stability, we have been making sure that the U.K. is a really great place to invest. We have
been removing the barriers to growth, and we have been pursuing a really, you know, sensible and strong position when it comes to the public
finances, which of course, puts you in a much better position to withstand the conflicts like the one that we are -- we are seeing at the moment.
But Richard, if I may, I just -- I think the chancellor is also been talking about the importance of international partnerships, and that really
highlights that what she is been talking about here at the IMF. And, of course, our partnership with the United States is extremely important.
We have got 1.2 trillion pounds invested in each other's economies. We are each other's largest investors.
(CROSSTALK)
QUEST: Right.
RIGBY: So, this is a really, really important relationship.
QUEST: But on that question of relationships, I mean --
(CROSSTALK)
RIGBY: Yes.
QUEST: How far, how much damage do you think has been done to the fundamental underlying, to use the phrase, special relationship. I mean,
it's not very nice when the U.S. president consistently beats up and insults the British prime minister. Does that do lasting damage, in your
view?
RIGBY: Richard, we have a special relationship with the United States, which has endured for many, many, many years. And I think really
fundamental to that partnership is what I've just been talking about, the fact that we have 1.2 trillion pounds invested in in each other's
economies.
(CROSSTALK)
QUEST: Right.
RIGBY: Now, the chancellor has been clear what she thinks about the conflict, and she is also said, and, you know, obviously, I wholeheartedly
agree with her on this, that friends can disagree with each other from time to time. But none of that goes to hurt the enduring nature of the special
relationship.
And as I said, that clad trading relationship between our two nations is incredibly important. It's particularly important to the U.K., and it's
very important to the U.S. as well. We have millions of jobs. Millions of British people go to work every day for U.S. companies and vice versa.
(CROSSTALK)
QUEST: Right. So, these -- the one of the big debates currently here in the United Kingdom, where I'm lucky to be at the moment is this question of
increased defense spending and the defense strategic review. And paying for that, which is where you come into it -- paying for it, and the question of
the trade off with the welfare state and the welfare.
Now, we all know you can't get a quart out of a pint pot, and we all know that difficult decisions have to be made.
I guess your core supporters would say it seems weird that a Labor government cuts welfare to pay for defense.
RIGBY: Richard, we are spending more on defense and we are reforming welfare. We have actually, you know, you have got to look at the
chancellor's record on this. She -- we, as a government are putting more money into defense than we have ever seen -- we have seen since the period
of the Cold War. So, we are investing more in defense.
We know we've got to spend more on defense. The prime minister is committed to doing that, and we have set out that increase. That, in fact, the
defense investment plan that you refer to will publish that when we are able to do so.
But look -- but look, we are, the fundamental point is, in this more volatile world, we know that we have got to spend more on defense, and we
have said that we are going to do that.
QUEST: The -- how difficult is it at the moment, representing or being out with Britain, bearing in mind the stories back home are concerning the
prime minister, concerning his -- the strength of the position that he is in, particularly relating to the former Washington Ambassador Peter
Mandelson.
We heard what -- I heard today what the P.M. said. Well, we have -- we have seen the quotes from the prime minister.
[16:40:02]
Can he survive this?
RIGBY: Of course, he can. He is been very, very clear that he wasn't made aware of this issue, which has just arisen over the last 24 hours about
vetting.
(CROSSTALK)
QUEST: Right.
RIGBY: He is been very, very clear about that, and he said he's going to come to the House of Commons on Monday and make a statement when he's able
to do.
QUEST: The reality is -- I've got in front of me, minister, the words of Mark Carney from his speech in Davos, you will recall he said -- he said he
talks about solving problems, global problems. We are pursuing variable geometry, different conditions and coalitions for different issues based on
common values.
Now, that's what you were just talking about at the moment in terms of international relations. But this idea of a variable geometry, I'll be
friends with you on this. I'll be friends with you on that. This is something new. This is -- there is no common grouping that they like they
used to be.
RIGBY: Look, I think international partnerships of many, many different kinds, and indeed, international fora are important. And as the chance has
been making clear, I think they are increasingly important in a -- in a more volatile world. Now, it's fantastic news that we heard earlier today
that the Straits of Hormuz are going to be open again. That's really, really good news indeed. And we need now to see a permanent cease fire in
that regard.
But the prime minister today co-hosted an international summit with 45 other countries, which is about trying to ensure the freedom of the freedom
of navigation in that regard. That's another really good example, not only of U.K. leadership, but of different groups working together to very good
ends, and indeed, very good ends from an economic point of view, as well.
QUEST: Minister, I'm grateful. I know you've got a very busy agenda. Please, next time, hopefully, we can tap -- we can talk face to face here
in London. It will be lovely to have a chat and then talk over these economic issues.
(CROSSTALK)
RIGBY: Indeed. That would be good, Richard.
QUEST: Good to see you, ma'am.
RIGBY: Nice to talk to you.
QUEST: Thank you.
Now, after a week of being targeted by President Trump, Pope Leo is continuing his trip historic to Africa. He visited a Catholic hospital in
Cameroon. He blessed both patients and staff. There were massive crowds at a stadium in Douala, where he said mass and spread the message of peace.
Our Vatican correspondent is Christopher Lamb. He is traveling with His Holiness, and sent us this dispatch.
CHRISTOPHER LAMB, CNN VATICAN CORRESPONDENT: Well, a crowd of hundreds of thousands have turned out in Douala in Cameroon for a mass presided at Pope
Leo. It just underlines how the Catholic Church in Africa is such a crucial part of the church that Pope Leo leads today.
Around a third of the country are Catholics. And, of course, this is a place where there has been huge amounts of conflict between the French and
the English-speaking parts. This is the French part of Cameroon. Pope Leo was in the English part on Thursday. Leo has been emphasizing his message
of peace throughout his time in Cameroon, of course, at the same time, President Trump has continued to attack him, and Leo, though, showing his
determination to keep on talking about peace, about the world, he said, being ravaged by a few tyrants with billions of dollars being spent on
conflict and war.
Leo showing his determination to keep emphasizing the message that are important to him and to the church, in a part of the world so crucial to
the future and the present of Catholicism.
Christopher Lamb, CNN, Douala.
QUEST: Now in Kenya, the Devki Group has become a dominant force in the iron ore sector, supplying around 50 percent of the country's steel demand.
The company is looking beyond its borders, expanding into neighboring Uganda, as Victoria Rubadiri explains.
(BEGIN VIDEOTAPE)
VICTORIA RUBADIRI, CNN INTERNATIONAL CORRESPONDENT (voice over): This hot, bubbling iron ore is in the midst of being transformed into strong, durable
steel. The material is seen as the backbone of construction due to its strength and versatility.
Devki Group says it supplies more than 50 percent of Kenya's steel needs from factories across the country, including here in Samburu, near Mombasa
on the country's east coast.
MOHAN TRIPATHI, PLANT HEAD, DEVKI STEEL MILLS: We produce 50,000 tons per month all together, billets, wire rods and TMTs.
RUBADIRI (voice over): The plant manager says its raw materials are typically sourced from South Africa or India.
To make the steel, the iron ore is heated to remove oxygen and impurities, then, melted with scrap iron before being molded into its final product.
[16:45:07]
RUBADIRI: So, these are high reinforcement steel bars behind me, getting ready to be transported to various clients across the country. Mostly
construction, they are the more popular products made here at the steel plant that actually meets 50 percent of Kenya's steel demand alone.
RUBADIRI (voice over): The company says it operates 19 factories across Kenya to keep up with the growing steel demand, demand that is pushing the
Devki Group to also expand elsewhere. It's investing more than half a billion dollars to build a new steel processing plant in Tororo, Uganda.
SPRIKANT SWAMINATHAN, GENERAL MANAGER, DEVKI GROUP OF COMPANIOES, UGANDA: The land development is completed. The civil foundation and related civil
works are going on.
RUBADIRI (voice over): Devki's goal is to tap into the high-grade purity of Uganda's iron ore.
SWAMINATHAN: What makes the iron ore in Uganda special is the FE ratio is about -- above 62, which makes it high quality. And then, the reducibility
factor is also low, of the iron ore. Hence, it is very much sought after.
RUBADIRI (voice over): The company says it expects the plant to be commercially operational by late 2027. Once up and running, it will begin
exporting steel products across East Africa, and it could drastically reduce the country's trade deficit when it comes to iron and steel.
As of 2024, Uganda was importing more than $600 million worth of iron and steel while exporting less than $200 million.
SWAMINATHAN: Devki is planning to export annually, 500 million USD-worth of steel products. What is going to be the net economic effect? The deficit is
straight away coming down.
(END VIDEOTAPE)
QUEST: I don't think it's any great secret to you, dear viewer. I have a sweet tooth.
And one of my favorite desserts is my late mother's cheesecake. Well, I was in Sydney recently, as you know, and a master chef Australia winner, we
created mum's recipe.
(BEGIN VIDEO CLIP)
LARISSA TAKCHI, WINNER, 2019 MASTERCHEF AUSTRALIA: Yes?
QUEST: You captured the creaminess?
TAKCHI: Yes. OK, great.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
QUEST: I think, I better do a bit of Shakespeare for this. He has eaten me out of house and home. If you are not familiar with that English saying,
then you don't know your Shakespeare.
[16:50:04]
A chance discovery in an archive has revealed the exact location of Shakespeare's home in London for the first time.
CNN James Frater has been to see.
(BEGIN VIDEOTAPE)
JAMES FRATER, CNN LONDON PRODUCER (voice over): it's long been known that Shakespeare owned a home in London. But where exactly has kept academics
guessing for centuries. That is, until now.
FRATER: It's generally believed that somewhere between the river and St Paul's Cathedral here in Blackfriars, in these narrow streets that his
property used to be.
FRATER (voice over): This modest blue plaque cautiously declares that the playwright purchased lodgings near this site.
FRATER: But in new research by Lucy Munro at London's King's College, this plaque is actually spot on. This is exactly where Shakespeare lived at Five
St. Andrews Hill.
FRATER (voice over): So, what did his house actually look like?
FRATER: Munro says the property was L-shaped, not massive, but relatively substantial.
FRATER (voice over): And it would have sat above the gateway to a 13th century friary that used to stand here.
17th Century Blackfriars would have been a lively mix of people, Gentry rubbing shoulders with an increasing number of tradespeople, according to
Munro.
FRATER: In her research, there were tennis courts nearby, there was a bowling alley, and many, many other entertainment venues. But also, there
was the pub just next door, where perhaps the bard enjoyed a drink or two.
FRATER (voice over): Crucially, for Shakespeare, it was less than a five- minute walk from the Blackfriars Playhouse and just across the river from the famous Globe Theater.
The original house didn't survive the Great Fire of London in 1666, and is one of the reasons why the exact location has remained such a mystery.
But at long last, no plague upon any houses, as we now know exactly where his house stood.
(END VIDEOTAPE)
QUEST: Now, it is no secret that I -- there is never been a dessert I've met that I didn't like. And as you recall, I was in Sydney only a few weeks
ago and had to sample some local treats. And I was fortunate, I also got to try two cakes made by a MasterChef champion Larissa Takchi. She won the
Australia competition in 2019. And she told me about how that experience led to more opportunities.
(BEGIN VIDEOTAPE)
TAKCHI: It was a massive deal, I think because especially, I was the youngest winner to win as well.
I was so young when it did happen. So, actually winning it, I didn't think of the gravity that it would take and how much it would impact my life.
QUEST: One of the things that you have made as your specialty, is that people can bring a recipe, and tell me about this.
TAKCHI: Yes.
QUEST: Where did it come from?
TAKCHI: I live in a very rural town, where you buy things on the side of the road, such as produce, et cetera, et cetera.
I started doing something similar. So, I used to bake bread.
QUEST: Yes.
TAKCHI: And I opened up a roadside bakery outside my house. So, every Sunday, I was baking, putting bread out for people, and people started to
buy my bread. And this is when I started to get to know my community on a much more personal level.
I found that I didn't know who my neighbors were up until I opened up that little store.
QUEST: But this idea of people can bring the recipe to you --
(CROSSTALK)
TAKCHI: Yes.
QUEST: Where did that come from?
TAKCHI: OK. So, the demand was quite intense, and I had to open up my own space at my bakery in Castle Hill, Luca Bakery.
And I wanted to connect to my community on a much deeper level through memory, because I think food can evoke memories, and stories, and emotion,
and that's kind of where I wanted to connect with people more.
QUEST: Tell me about this.
TAKCHI: This is my mom's recipe. So, this is like a pear self-saucing pudding.
It's got like a caramelly base, got cooked pears in there, and like a really light sponge on top. Yes.
QUEST: Oh, look at this.
TAKCHI: Get a bit of sauce though, as well.
QUEST: Yes, absolutely.
TAKCHI: Yes.
QUEST: There we go. Thank you so much
TAKCHI: Thank you. Thank you.
QUEST: Still warm.
TAKCHI: Yes. Straight from the oven.
QUEST: Now, I asked my sisters what recipe to bring to you. And they said, my mum's cheesecake.
TAKCHI: Yes.
QUEST: My mom's since passed.
TAKCHI: Yes.
QUEST: And we sent you the handwritten version.
TAKCHI: Yes.
QUEST: And we also sent you one that we did --
TAKCHI: Yes.
QUEST: Would you like to cut a slice?
TAKCHI: Yes. See, this is where I would have brought you into the bakery and asked you a lot of questions.
QUEST: Really?
TAKCHI: Yes. Because there are things on there that couldn't understand. I think it was more of a British thing.
For example, the oven temperature. I didn't understand what that -- what regular four meant.
QUEST: Kev?
KEV (PH): Gas mark four.
QUEST: It's a gas mark.
TAKCHI: Yes. But what does that mean?
QUEST: Well, in British oven and -- stoves and ovens, you wouldn't -- you just have a number one, two, three, four. So, regular --
[16:55:01]
TAKCHI: Oh, OK. Yes, I just winged it, to be honest. I'm hoping this is what --
(CROSSTALK)
QUEST: Oh, look at that. Look at this.
It is.
TAKCHI: When was the last time you had this?
QUEST: Well, she is been gone for goodness knows how long.
TAKCHI: Oh, I hope this brings back some memories. Good ones.
Yes?
QUEST: You captured the creaminess.
TAKCHI: Yes. OK, great.
See, I don't know what this memory is. You got to take me back there and tell me if this is what it's --
QUEST: She didn't make it that often, but when she did, Sunday lunch. Desert for Sunday lunch with a roast.
We had guests.
TAKCHI: It's very -- it's very creamy.
QUEST: It's very creamy.
TAKCHI: I was questioning the recipe, but I stay true to it. I didn't put my influence to it whatsoever. I wanted to experience it with you.
QUEST: Oh, that is delicious. That takes me luck. Mom, God bless.
(END VIDEOTAPE)
QUEST: And you can see more of my trip to Sydney. It's "WORLD OF WONDER". It's Sydney. It starts at -- on Saturday at 4:30 Eastern, 9:30 at London.
It's -- and again, after QUEST MEANS BUSINESS. Lots of times when you can see it. Can't shake a stick and miss it.
We have a "PROFITABLE MOMENT" after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's "PROFITABLE MOMENT". I feel guilty. Why? Because I have spent most of the day sort of pouring cold water on this market rally that
we saw, not just in equities, but also the way the price of oil fell so sharply.
And the reason that I was pouring water, a cold water, and dousing the flames is simple, because there is such a huge gap between the promise and
the markets randomness and knee jerk, kick there, and off we go. And the reality of actually, nothing's happened.
So far, the ships haven't moved out of the Strait of Hormuz. Those that have tried have got turned back. The blockade is still going. They are
still -- the parties are very far apart on exactly the detail of it, and the devil is in the detail. And yes, one pours water because one's been
here before with President Trump in these negotiations. And there is a kernel of truth in exactly what's happening between the parties, but
sifting that truth and working out, is it going to be sufficient to get you over the final line? That's the impossible part.
And the truth is, when it comes to this whole business with oil prices in the Straits of Hormuz, we do not know.
[17:00:06]
So, I'm afraid that's the way it has to be tonight as I leave you and love you. But I'm going to leave you with the thought that at least, the prices
are down, at least, things are looking better, at least, they are not fighting, at least, the violence has stopped, and got least, we can say the
talks are likely to begin, which is good enough for me.
Because that's QUEST MEANS BUSINESS for this Friday night. I am Richard Quest in London. Wherever you are up to in the hours ahead, I hope it's
profitable. Have a lovely, lovely weekend.
END
