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At Least 188 Killed After Major Earthquakes Hit Venezuela; Major Disruption to European Services, Schools; U.N. Pauses Hormuz Strait Evacuation After Vessel Attacked. Venezuela Rocked by Its Strongest Earthquake in a Century; Earthquake New Factor in Venezuela's Changing Economy; Supreme Court Sides with Trump in Two Major Immigration Cases; Companies "Debrand" to Avoid Conflict with FIFA Sponsors. Aired 4-5p ET
Aired June 25, 2026 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:15]
PAULA NEWTON, CNN INTERNATIONAL HOST: A very modest gain there for the Dow, but the real story is people were expecting a comeback of tech today, it
just didn't happen. Those are the markets and these are the main events.
A massive search and rescue operation is underway in Venezuela after two major earthquakes struck Wednesday.
The record breaking temperatures won't let up, Europe's heat wave takes its toll on businesses and employees.
And some World Cup fans are coming home with more than memories. How Ranch Dressing became the souvenir of the tournament.
Live from New York, it is Thursday, June 25th.
I am Paula Newton, in for Richard Quest and this is QUEST MEANS BUSINESS.
And a very good evening to you in Venezuela, a desperate race, of course, time is of the essence here as they try and find survivors after the worst
earthquake there in more than a century.
(VIDEO CLIP PLAYS)
NEWTON: Those are the scenes -- horrifying scenes, in fact, from the airport near Caracas as two major earthquakes hit the north of Venezuela
just seconds apart. The second quake, a magnitude 7.5, was twice as large as the first.
These are new images now from the airport that is just north of Venezuela. At least 188 people reported dead, with hundreds more injured.
You look at these aerial images and they do give you a sense of just how widespread and severe the damage is. Rescuers are still working around the
clock as countries around the world ramp up their aid efforts.
Stefano Pozzebon has more now on how the devastation unfolded.
(BEGIN VIDEOTAPE)
STEFANO POZZEBON, CNN CONTRIBUTOR: Not one, but two earthquakes shaking Venezuela in a matter of seconds, killing well over 100 people and injuring
around 1,000 more. Authorities say dozens of buildings collapsed in the capital, Caracas, less than 200 miles from the epicenter.
The first quake measured magnitude 7.2, striking just after 6:00 P.M. on Wednesday; less than a minutes later, an even stronger 7.5 tremor.
Authorities say more than 40 aftershocks were reported.
Interim President Delcy Rodriguez declaring a State of Emergency while survivors are still in shock.
UNIDENTIFIED FEMALE (through translator): I am 59 years old and I felt the earthquake very strongly. Inside my house, the glasses, the plates --
everything fell. We believe it was quite strong because it shook for a long time.
You could see the water in the hotel pools sloshing out, and there is a lot of debris in the streets, and many people outside.
POZZEBON (voice over): In the areas hit the hardest, entire buildings reduced to piles of concrete and twisted metal. Rescue teams working
through the night. The search for people trapped in the rubble, never ceasing.
UNIDENTIFIED FEMALE (through translator): I was here when I managed to get dressed. He helped me and all the walls were cracked. We managed to open
the door however we could. There was a cloud of smoke that wouldn't let us see and when we went downstairs, the scene was like a horror movie.
We had to climb over the rubble and everything. The building superintendent with the baby and older neighbors coming down, but from that building, I
only saw that one family got out.
POZZEBON (voice over): Officials warned the death toll could rise as first responders reach areas still cut off by the damage, while international aid
is starting to reach Venezuela to provide help for one of the deadliest natural tragedies here in this century.
Stefano Pozzebon, CNN, Bogota, Colombia.
(END VIDEOTAPE)
NEWTON: Now, as you can imagine, after watching that report, many are desperate to find their friends and loved ones. Journalist, Mary Triny Mena
has this report now from Venezuela.
(BEGIN VIDEOTAPE)
MARY TRINY MENA, JOURNALIST: I am at Playa Grande. This is one of the areas most devastated by the two earthquakes that took place Wednesday in
Venezuela.
Here, there is an active survivor rescue, and there are neighbors and rescue teams trying to locate the people that are still inside of this
building, like this man.
What is your name, senor?
CARLOS BAEZ, LOCAL RESIDENT: Carlos Baez.
MENA: Carlos is a neighbor, and he is trying to get in touch with a lady that is in that building. He is waving at us.
(CARLOS BAEZ speaking in foreign language.)
[16:05:10]
MENA: Every time Carlos talks to her, she is trying to wave her hand with the red cloth.
(CARLOS BAEZ speaking in foreign language.)
MENA: So many people that are trapped from yesterday are trying to get the sense of the time that they are being stuck there and trying to make the
efforts to bring more rescue teams, more people to this area that is still with many people alive and they want, of course, that they are out of this
situation as soon as possible.
La Guaira, as I said, this is one of the areas most devastated in Venezuela, especially the international airport of Caracas that is located
here.
As you can see, there is a lot of rubble and debris in these buildings that I am in right now. An entire complex of buildings are devastated.
For CNN Maria Triny Mena.
(END VIDEOTAPE)
NEWTON: Nicolas Meslaoui is a regional team lead at Catholic Relief Services. He joins me now from Panama City, Panama, and will be traveling
to Venezuela shortly.
Nicolas, thanks for being here. I am wondering what route are you taking to get there? We know the airport remains closed. And when you arrive, what
are your priorities on the ground?
NICOLAS MESLAOUI, REGIONAL TEAM LEAD, CATHOLIC RELIEF SERVICES: Well, thank you so much for having us. We are currently exploring different routes. We
are waiting for the airport to resume flights, but also going by land through Colombia or other regional airports.
In these first hours, our priority is to save lives. We are currently hearing that families are just wondering where their loved ones, where are
they going to sleep tonight? Is it safe to go home? Where can they find help?
The first hours we spent assessing the needs on the ground, we are already doing that since yesterday, through our church partner, Caritas Venezuela,
assessing what are the needs not only in Caracas, but in neighboring states where thousands of people are currently without homes, without electricity,
without water, and without medicines.
NEWTON: Yes, and so much of what we are seeing now is obviously from Caracas, and yet, there are towns and villages where aid and rescue teams
still have not arrived. How challenging do you expect that to be, especially given there are still problems with getting power,
communication, potable water?
MESLAOUI: Yes, that's a very important question.
What is very key to keep in mind right now is that these earthquake are hitting a country that is already under enormous strain. Many families were
already struggling to access basic services -- water, electricity, and that is making the response efforts even harder.
And that's why we are working as Catholic Relief Services through our church network or church partners that are on the ground in affected areas
where rescue efforts haven't started, but aid has already been distributed. We know access is currently complex in some remote areas, and many families
have already come to our churches and other areas to ask for services.
NEWTON: You know, you make such a good point, and the U.N. has indicated that more than one in four Venezuelans before this devastating earthquake
were already in humanitarian need. You know, Venezuela's health care system, I don't have to remind you, was already in a state of ruin before
this earthquake.
What will it take for the injured to get the emergency care they need? And I stress emergency care they need. We are already 24 hours in, and it is
going to be difficult, even though, of course, the government has said they need every health care professional on the job right now.
MESLAOUI: Yes, that's a very good point. A lot of help is on its way. There is already a lot of action from the humanitarian community in the country,
in a country that has been going on a crisis for several years. The church in particular is using its existing health network health facilities to
provide basic assistance with normal way is on its way. More help is on its way.
We are currently on our way to get to Venezuela, getting basic supplies that are in the country, but also importing critical life-saving supplies
such as medicines, but also mental health support that is so critical when these emergencies happen.
NEWTON: You know, to people who have loved ones, friends in Venezuela right now, what would you tell them about the desperation they feel? So many
people have been unable to reach their loved ones. How long do you think it will take to get some kind of stabilization, I would say to the people of
Venezuela?
MESLAOUI: Well, based on our experience with these large scale emergencies, this could take months or years. We are not only focusing on saving lives
right now, but also making sure we can help people to rebuild their lives. What we are hearing on the ground from our church partners is that the
situation right now is very dangerous, not only in Caracas, but also in other states.
There is so much damage to homes, schools, businesses, churches, roads, among many other infrastructure. People are digging through the rubble.
[16:10:08]
Right now, we need a lot of assistance to make sure people can survive. People can have a place to stay, some basic food, some basic medicines.
Also some psychosocial support.
But in the next few weeks, we need to start rebuilding people's lives. This could take months or years.
NEWTON: Nicolas, I know your organization has been working in Venezuela for decades, in fact, and I have seen the churches and the outreach for myself
in Venezuela. Do you believe the government will cooperate here? Do you believe there will be a hindrance? Have you been in touch with them?
MESLAOUI: Well, what we know so far is that the authorities are responding very quickly to this disaster. And right now, our focus is on making sure
that we are meeting urgent needs. We are trying to save lives and making sure people have a place to stay, have basic supplies, basic clothing, and
we will continue to work with the Venezuelan church and international partners to continue to help people not only survive, but also recover from
this major disaster.
NEWTON: All right, Nicolas, we hear you. This will clearly have perhaps a generational impact at this point as, again, this kind of devastation
hasn't been seen in quite a few decades in Venezuela. Appreciate it. And the best of luck in getting there and getting your relief services into
Venezuela.
Appreciate your time.
MESLAOUI: Thank you so much.
NEWTON: Next for us, the big smoke is red hot. The U.K. breaks yet another heat record for June. We look at how Europe is coping under its brutal heat
wave.
(COMMERCIAL BREAK)
NEWTON: Another day of record breaking temperatures in Europe and a heat wave that has already killed hundreds of people. Now, the U.K. has broken
its record for June for the second straight day, while France endured its hottest night on record.
In Spain, meantime, officials say more than 200 people have died over the last four days, with deaths reported in France and Italy as well. European
transport networks have cancelled services over fears train lines could buckle in the heat. This as nearly 10,000 schools have been forced to close
in France.
Anna Stewart is in London suffering as you must, Anna, there in the heat. It is really quite serious. I am wondering what the word is there from
where you are in terms of how people are coping.
I see many people there behind you out in the streets, but this is still going to go on for a few more days.
[16:15:05]
ANNA STEWART, CNN REPORTER: Yes, we've got at least another day of this and I can show you the thermometer I've been taking around with me today,
Paula.
It is now around 31 degrees Centigrade. I think that is roughly 90 degrees Fahrenheit. This now feels really cool. We are now used to temperatures
heading up towards 40 degrees Centigrade. And everyone we have spoken today has really been about work because it is feeling too hot to do anything at
all. But of course, everyone does have to go to work and not everyone works in an air conditioned office.
There is legally no upper limit when it comes to temperatures in the workplace here in the U.K. Employers just have to provide a "reasonable
temperature and reasonable conditions in the workplace." But that's nearly impossible in some situations.
I went to a construction site, I went to a dry cleaners. I've been to a few restaurant kitchens and the temperatures are crazy. This is a pizzeria, a
bread store. The temperature in the kitchen there with my little thermometer was 46 degrees Centigrade. That is 110 degrees Fahrenheit.
The Front of House, Zee described opening the pizza oven as like opening the gates of hell, but you know, ordinarily it is always hot in the pizza
oven, but you get a little bit of a break. This pizzeria is struggling. The fridges aren't all working, so some of the drinks are no longer cold. They
are having to move them around. The air conditioning units aren't working in parts of the restaurant and he is struggling, but they are staying
positive.
Have a listen to what Zee has been up to today to just try and keep things working.
(BEGIN VIDEO CLIP)
ZOLLIE NYANGWA, FRONT OF HOUSE, BREAD STALL: I have to be really creative. So what we did today is freezing a bunch of cloths with a bit of water, and
then those are really quick, five to 10 minutes. We take those around and we wrap them around our heads, around our necks, wherever it is needed
possible. Yes, sir. I do have a box with me.
So yes, you just have to be really creative with the ways that you want to tackle the heat wave.
(END VIDEO CLIP)
STEWART: The simple fact is, the U.K. is really not built for heat. In fact, it is actually built for the opposite. Lots of old buildings around
here are built to keep heat in, and not everyone has air conditioning, certainly not at home and not in many offices and workplaces.
There is no legal upper limit in terms of temperature. But you will like this, Paula. There is a twist in the legislation, but deep into it,
employees do have to give you a thermometer in your workplace, so you're allowed to know how hot it is, but you may not be able to do anything about
it -- Paula.
NEWTON: Yes, let's not go over that right now. Perhaps it is something, though, that they might want to take up at Westminster.
Anna Stewart for us. It is 9:17, folks, and still over 30 degrees Celsius in London. Anna Stewart for us. Thanks so much. Appreciate it.
Now, after four months, oil prices are starting to return to their levels from before the U.S. and Israel launched a war with Iran. Right now, Brent
crude is, well just above $70.00 there. You see WTI at almost $72.00, Brent over $75.00.
The shift comes as shipping traffic is starting to tentatively return to the Strait of Hormuz after Iran and the U.S. reached a framework of a deal
to end the conflict, but the route is far from secure. The U.N. Maritime Agency is pausing its efforts to shepherd stranded ships through the Strait
after a vessel was attacked today in the Gulf of Oman.
Iran's Revolutionary Guard Corps says that only routes designated by Tehran can be used to pass through the Strait, and any vessels moving through on
other routes are putting themselves in danger.
Paul Volker is a former U.S. Ambassador to NATO and former U.S. Special Representative for Ukraine Negotiations. He currently serves as a
Distinguished Fellow at the Center for European Policy Analysis and a senior advisor for The Atlantic Council.
Ambassador, I really want to thank you for joining us. I can only imagine what you're thinking when you hear about the confusion there still in the
Strait. I mean, do you think this is a form of negotiation for Iran at this point? And it means that there will be lots of stops and starts to this
process over the next few weeks.
KURT VOLKER, FORMER U.S. AMBASSADOR TO NATO AND FORMER U.S. SPECIAL REPRESENTATIVE FOR UKRAINE NEGOTIATIONS: Well, you could call it a form of
negotiation. You could call it a form of pressure.
Basically, Iran feels that it has gained control over the Strait of Hormuz. It has gotten everyone's assent, including the United States that the
shipping lanes will move East through Iranian territorial waters, not in the Gulf of Oman, where they used to be. They will charge fees for
security, for dredging the channels, for removing mines -- you name it, and they will require coordination with Iranian authorities before a vessel
goes in or comes out of the Strait, and this is something that they are already beginning to impose.
The Memorandum of Understanding says free passage, but it is not really clear what free passage means if you're talking about issues like safety
and security.
[16:20:10]
And you have clients of Iran, people who want to buy Iranian oil like China, like Pakistan, who are perfectly happy to pay a little fee as well.
So Iran is asserting its control over this, and it knows the U.S. does not want to reengage in massive military action. So, it thinks it can get away
with this.
NEWTON: Now, in fact, it does seem at times that the United States has completely taken any of its leverage off the table. Iran's top negotiator,
in fact, is denying U.S. Vice President J.D. Vance's claim that Tehran will use its unfrozen funds to buy American crops and this is what was tweeted
earlier: "The only crop were harvesting is what you planted, decades of mistrust," to say that that is provocative is an understatement.
Ambassador, what does this tell you? I mean, really -- what does this tell you about this MOU and where we might go next with this?
VOLKER: Yes, there is a rule that anyone negotiating anything should remember, which is that anything that is not in the agreement is open. It
is the same as it was before. It is not restricted in any way.
So we might have a few terms in this MOU that we will point to and say, okay, there is a ceasefire. Okay, we are going to have a future negotiation
about Iran's nuclear program. But anything else that's not in there, like Iran's support for Hezbollah, Iran's support for Hamas, Iran's intention to
attack American interests around the world, those things all remain.
And what we have now is an Iranian regime that is emboldened, is now also getting funds and is going to continue its theocratic, its ideological
crusade against the West for as far as we can see, and we may decide, look, it is not worth fighting a war over that, that's a fine choice, but we have
to be prepared for dealing with that Iran that still exists.
NEWTON: Yes, it may not have been worth starting a war over it as well.
I do want to move on to Ukraine, especially given your experience. I mean, look, you and I both saw that the G7 leaders say they want this Iran
conflict done and dusted. They supported the MOU, how much do you believe that can clear the way for attention and resources to now concentrate on
Ukraine? We saw the NATO Secretary General in the Oval yesterday trying to set the table for the NATO Summit to come.
I mean, you're in Poland right now, right? How crucial is it that maybe finally they can get to some kind of ceasefire to have Vladimir Putin agree
to that if they can't get to a deal?
VOLKER: Right. Well, I think, you know, talking with Europeans here in Poland, there is a little bit of a sigh of relief that the U.S. has been
distracted from the Russia-Ukraine war because U.S. involvement has been one of supporting Putin and putting pressure on Ukraine, which none of them
agree with. So it has been a nice respite.
During that respite, Ukraine has turned the tide of the war. Ukraine now has an advantage over Russia in drones, counter drones, electronic warfare,
long range strikes with strategic impact as opposed to what Russia does, which has civilian impact.
Taking out Russian logistics, Crimea is now in a very perilous position because of the inability of Russia to provide supplies, including fuel. So
this war has taken a turn in Ukraine's favor.
The U.S. has been largely out of it for the past several months, partly because of the war against Iran, and I think seeing that Russia is
gradually losing and Ukraine is gradually winning, President Trump and the Trump administration have gradually taken a more Ukraine supportive or at
least a soft line with respect to Ukraine, thinking that they actually might come out ahead here and that has been very welcome.
NEWTON: Ambassador Volker, though, I just want to lean on your experience. How do -- how does NATO, the European allies get this over the line?
Because we could still be heading into another winter here with this conflict continuing.
VOLKER: Yes, well, I have to say, I do think another winter is the most likely scenario. But the only way this war ends, let's be clear about this.
Vladimir Putin started this war. The only reason it continues is because he still thinks he can defeat Ukraine and take over its territory and its
leadership and he is not persuaded otherwise.
But he is losing: He is losing territory. He is losing troops. He is losing money. And at a certain point, Putin is going to need a ceasefire.
If we want to accelerate an end to the war, we have to increase that pressure on Putin, so he thinks that he needs a ceasefire sooner rather
than later.
[16:25:00]
At this stage, people are helping. Europe is helping. They have given Ukraine a 90 billion euro loan to invest in its industry. But, Putin still
thinks he can ride this out.
The more we can pile on, the better it is possible to get a ceasefire this year. But I think Putin wants one more shot at Ukraine's electricity grid
this winter before he finally gives it up.
NEWTON: Yes, your words are chilling to anyone in Ukraine right now. We will see what happens in this NATO Summit as, again, those leaders are
clear that they want Iran done so that they can concentrate on Ukraine.
Ambassador Volker, once again, thanks so much for your insights. Appreciate it.
VOLKER: My pleasure. Thank you.
NEWTON: Now, the chip maker, Micron rebounded from Monday's losses in a big way. Shares jumped about 15 percent after the company reported blockbuster
earnings, Wednesday. Micron's market value even briefly surpassed both Meta and Tesla's. The chip sector as a whole turned in a mixed performance, and
this is what got my attention, Broadcom and NVIDIA closed lower. AMD and Intel both jumped.
Clare Duffy is in New York and will make sense of all of this for all of us, I promise you.
You know, when you looked at futures this morning, you really thought there would be some kind of tech comeback off of Micron? There wasn't.
I mean, there are still a lot of antsy people out there about the trade.
CLARE DUFFY, CNN BUSINESS WRITER: Yes, Paula, it is really interesting watching the A.I. roller coaster over the last few months. I think it just
tells you how much is riding on this industry, how much the markets are depending on its success because anytime investors have a question about
whether companies are going to deliver on the promises that they've made, they do get a little bit antsy.
Of course, thankfully, Micron posted massive returns here. You had third quarter profits, $28.2 billion. That is 15 times what it made in the year
ago quarter and that is because Micron provides these memory semiconductor chips that are in such high demand, they are needed for the data center
buildout and they are in really short supply. So that gives Micron a really rosy future outlook when you talk about revenue.
The company said that it has secured contracts that would provide $100 billion in revenue in the coming years. And so I do think it is -- you know
investors clearly are not turning away from A.I. altogether, but I think you may be seeing some rotation in this space. Whether it is away from a
company like NVIDIA, where perhaps a lot of the value investors believe is already baked into the stock. Certainly, we are seeing the hyperscalers
down, investors continue to have a lot of questions about whether their massive spending on A.I. infrastructure is going to pay off and when that
is going to happen.
But I think you start to see investors be more interested in these companies like Micron, that are the beneficiaries of this data center
buildout that are providing the supplies. Micron, of course, is an example of that, but I was also noting that Corning, which is providing fiber optic
technology for data centers, Caterpillar, which is very involved in the physical buildout of data centers, those stocks are also up today.
And so I think you're seeing investors looking for opportunities in the A.I. trade, but not leaving A.I. altogether -- Paula.
NEWTON: Yes, especially since so much of the revenue or the profits in so many of these A.I. trades, it was already in the valuation. So like you
said, they are shopping around looking for other values in the market.
Clare Duffy for us from New York. Thanks so much.
DUFFY: Thank you.
NEWTON: Now, our coverage of the disaster in Venezuela continues this hour after powerful twin earthquakes hammered the country. We have more from one
of the most impacted areas, coming up.
(COMMERCIAL BREAK)
[16:31:31]
NEWTON: Hello, I'm Paula Newton, and there's more QUEST MEANS BUSINESS in a moment when shares in roundup maker Bayer are up after the Supreme Court
ruled in favor of the company over a cancer lawsuit. And Kraft Heinz is trying to cash in on the World Cup, even if it's not an official sponsor.
Richard Quest speaks to the company's chief marketing officer. But before that, the headlines this hour.
At least 188 people have now been killed in the worst earthquake to hit Venezuela in a century. The national assembly also reports that more than
1500 people have been injured. A 7.5 magnitude quake struck less than one minute after a 7.2 foreshock.
A second record-setting day of heat in the U.K. and right across Europe. Officials in Britain have extended a rare red extreme heat warning into
Friday. France had its hottest night ever recorded from Wednesday into Thursday. And in Spain, officials say more than 200 people have died from
heat related illnesses.
The U.S. Supreme Court has given Donald Trump two big wins on immigration. The conservative dominated court said migrants cannot apply for asylum
unless they are already on U.S. soil. The high court also voted to allow the Trump administration to end temporary protections that had been granted
to people fleeing war and violence in Haiti, Syria and other countries.
We're turning now to our top story, the devastating series of earthquakes in Venezuela. One of the most impacted areas is the Los Palos Grandes
neighborhood in eastern Caracas.
Osmary Hernandez is there with more.
(BEGIN VIDEOTAPE)
OSMARY HERNANDEZ, CNN EN ESPANOL CORRESPONDENT: We are walking in Los Palos Grandes. This is a neighborhood located in the east of Caracas and one of
the most affected after the power earthquake that broke Venezuela.
Let's see how is the situation where the rescue are working in the area. They are trying to remove the debris and try to rescue some people because
around there are some relatives waiting for news about them. They say that they have not communication with them for so many hours. And at this moment
they are trying to rescue four young men in this building and at the same time, the feeling in the area is with pain, with sadness, also with fear,
still with fear.
Some people spend the night in squares, also in public spaces because they don't know if the cracks like this one that we can see in this building can
affect the structure and can make that building collapse like other four buildings in this same area. But also in the middle of this, a chaotic
situation. We can feel the solidarity of the people, people who come here to bring with them medicines, food, water, some masks because in this area
you have to wear a mask like this one because there are so much power around and sometimes it's difficult to breathe.
[16:35:06]
It's difficult to see. And people, there are some volunteers here working to help people and to help also the rescue to support the rescue with food,
with water, and waiting for the international aid.
(END VIDEOTAPE)
NEWTON: Our thanks there to Osmary.
Now all of this comes as we have been tracking energy companies that are considering increasing their investment in Venezuela's infrastructure.
Shell, for instance, has been exploring a move back into the oil rich nation after the capture of President Nicolas Maduro. And it says all of
its employees in Venezuela are now accounted for. Chevron already has considerable operations in the country. It, too, says its workers there
have been accounted for.
Jorge Pinon is a former BP executive in Latin America and the Caribbean, and he joins us now.
Good to have you on the program. I mean, we've pointed out, right, that Chevron and other energy companies working in Venezuela say their employees
are accounted for. Operations have not really been disrupted, but we've been looking at images from places like the airport. The airport remains
closed. Some of the areas in this country are still unreachable.
What kind of adversity do you see ahead in Venezuela, first, for finding survivors, right, then treating the wounded, but then trying to get the
basic infrastructure up and running here?
JORGE PINON, FORMER BP EXECUTIVE IN LATIN AMERICA AND CARIBBEAN: The major challenge that the industry and also the population in Venezuela faces
today is the lack of electricity. Electric power is down. So it is very difficult, for example, for pumps that move either oil or water for them to
operate. So the main challenge today is not only, of course, all of the debris and destruction that we all see.
But again, the lack of electric power, on the oil sector there seems to be no structural change or impact. But remember, there are over 3,000 oil
wells, 600 kilometers of pipeline, a number of export ports, warehouses. So still the country has to go, at least the industry, has to go through a
tedious inspection of its infrastructure to see what shape it really is.
NEWTON: Yes. And that in itself, as you point out, without power and even water in some areas is going to be a herculean task. I mean, I argue that
this earthquake will have a generational impact for Venezuela. I don't know if you agree with that, but I do want to make a fine point that this isn't
just about business, right? Venezuela needs the proceeds from their energy and their resources to rebuild the country now more than ever.
How do you see that being possible, and how do you believe a lot of these energy companies, with their investment, will be critical to that?
PINON: Well, I think long term the best news is the news that Chevron and Shell and others have already made public their intent to develop the 300
million -- thousand million barrels of reserves that Venezuela has. By the way, not only oil, but also natural gas. So long term, I think the
storyline for Venezuela is very positive. Short term they just last month surpassed the one million barrels a day of production.
At 1.2 million barrels a day of production, that's certainly now is going to come to a halt here during the next 30 days. Again, maybe not because of
structural changes, but because of the lack of electricity. So we'll have to see. Long term, I think Venezuela still has a very positive story to
tell.
NEWTON: And yet they do have to recover from what we're looking at now. I wonder how much of a liability you believe the current regime is. I mean,
these are the same people who have mismanaged the economy for more than a decade.
I mean, look, Jorge, I've spent a lot of time in Venezuela. I've been in hospitals that had no supplies, have been in morgues that didn't have body
bags. You know what they are facing here. Can this government really manage this kind of a disaster?
PINON: It's not only this government, but the next government to come. A lot of the oil companies are saying, fine, I might very well sign an
agreement with the current government. But when there are free elections and a new government comes into place a year or two years from now, that
new government decides that the rules of the game are going to change. So a lot of the issues that international oil companies face in Venezuela is
political continuity.
This certainly is a temporary government. Eventually Venezuela will have free elections. And we'll see what the new leadership has to say. So short
term, very questionable news as far as what's going to happen, but long term, I think everybody, even the country of Venezuela and the
international investors are very bullish in Venezuela.
NEWTON: And you're talking about elections. There are no elections set right now. The opposition isn't even allowed back into the country at this
point. Not all political prisoners have been released. I could go on.
[16:40:03]
Again, we are looking at the absolute devastation of some areas of Caracas and some of the, you know, regions that have been hard hit. I mean, you
say, do you think this will set things back only a few months then that you were still quite optimistic for this in, let's say, six months?
PINON: I am, because, again, in Venezuela, the storyline is its oil reserves. You have 300 billion barrels of oil. It's the largest oil
reserves anywhere in the world. And everybody wants a piece of that. They want a piece of those reserves long term, by the way. No short term, long
term, to establish the relationship that companies like Exxon and Shell and BP and others have had over the years. And then, of course, most recently
Chevron.
So stability and political stability and political continuity is very important for the oil companies. We want to be sure that the agreements
that we signed today are valid two or three years from now. I think everybody is betting on that that will be the case. And that's why I and
others are very bullish on Venezuela long term.
NEWTON: Certainly for us, especially the young generation in Venezuela, we certainly hope that you are correct as we continue to watch this tragedy
unfold at this hour.
Jorge Pinon, thank you so much. Appreciate it.
PINON: Pleasure, Paula. Thank you.
NEWTON: Now, the U.S. Supreme Court has President Trump two big wins as it begins wrapping up its term. But the differences of opinion from justice
showed through from the bench today in a way we almost never see. Details ahead on QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
NEWTON: The Supreme Court is wrapping up its term with several key cases still left to go. Today, justices gave President Donald Trump some big
wins, ruling that he can end temporary deportation protections for some foreign nationals and reviving a controversial policy that works to slash
the number of asylum seekers who can be processed at the border.
CNN chief Supreme Court analyst Joan Biskupic joins us now.
Joan, listen, I was watching your reporting as these decisions came down this morning. And I was absolutely riveted by your reaction because you
described what happened on the bench between these justices. Please do tell.
JOAN BISKUPIC, CNN SUPREME COURT ANALYST: Thank you. And it's good to see you. And I'm glad it captivated you because in some ways, these two
decisions were expected.
[16:45:02]
You know, they were both subject to oral arguments in the spring. The justices tip their hand and they've been incredibly deferential to the
executive, especially to President Donald Trump. So it was expected that the justices would rule for the administration and allow it to revive this
policy of metering people at the Mexican border to limit the number of people coming through here to claim asylum.
And then the other one, as you said, for the temporary protected status, which had been given to Haiti and Syrian people here, that the Trump
administration now wants to lift, and we can get into those details. But I expected those bottom line rulings. But what I didn't expect was the
fireworks in the room.
Justice Alito, one of our leading conservative jurists, had the majority opinion for both of them. And when he finishes reading the first one, which
was the one that had to do with who is eligible at the southern border, he pauses. And Justice Sotomayor, who has written a dissent, suddenly starts
reading excerpts of that dissent from the bench.
Now, I've asked for some clarification on how surprised he was, because I'll tell you what he said after she spent 10 minutes, which is like three
times as long as he spent on the -- an excerpt from his majority opinion. She spent 10 minutes talking about how wrong this was and what she did
right away, Paula, was she brought us all back to the 1930s America when the Holocaust was going on in Nazi Germany, and some 900 Jewish refugees
were looking for refuge somewhere, going first to Cuba and then to the U.S. and they were turned away and had to go back to Germany. And so many of
them were murdered there.
Justice Sotomayor says from the bench, and she's kind of comparing the moral imperative of then to the moral imperative of now. So she finishes us
up. And before Justice Alito then goes on to announce the second opinion in the temporary protected status one involving Haitians and Syrians, he says
-- he suggests he was blindsided. He says, you know, if I had known that the dissent was going to say that, I would have added more to my -- to what
I gave for the majority. And I couldn't tell if he was surprised. It almost sounded -- what it sounded like, to tell you the truth, is that he was
surprised that she was going to read a dissent, because if Justice Sotomayor had even told him she was going to read a dissent, he would have
known that it was going to be impassioned.
I mean, she's not going to bother reading a dissent from the bench unless it is quite heated, because normally dissents aren't given orally as you
probably know. So he sat there and stood for a while, but, you know, we will often see Justice Alito being mad, but this time for him to, like,
declare out loud that he felt somehow caught off guard was really unusual. And then he went on after that to explain how the administration had all
the discretion in the world to then lift the temporary protected status for Haitians and Syrians here, and that judges could not review that.
It really shut the door to judicial review, which again hands the administration a lot of power in the immigration and refugee space.
NEWTON: Yes. In fact, very transformative for the immigration policy here in the United States. But, Joan, thanks for recounting that because, again,
what is unprecedented here is some of that to and fro that you just described from the bench. It really gives you an indication of how
contentious this is.
Joan Biskupic for us, and we're not done yet with the Supreme Court in this session. Thanks so much. Really appreciate it.
BISKUPIC: That's right. See you Monday.
NEWTON: See you Monday. Thank you. And we will be right back with more in a moment.
(COMMERCIAL BREAK)
[16:51:26]
NEWTON: Two World Cup matches underway right now. Germany and Ecuador are facing off at New York-New Jersey stadium. It's tied. I'll let you know who
won right now. And curacao and Ivory Coast are playing in Philadelphia. Ivory Coast has the lead there, one-nil. There are four more matches later
on. And yes, Team USA will try to continue their hot start to the World Cup against Turkey.
Now, one thing that FIFA does not play around with are its sponsorships. It's very strict in fact. Certain companies involved in the World Cup have
been forced to de-brand in order to avoid conflict with FIFA sponsors.
You're going to want to hear about this and Richard Quest has the story.
(BEGIN VIDEOTAPE)
RICHARD QUEST, CNN BUSINESS EDITOR AT LARGE: The FIFA World Cup is, of course, one of the world's biggest, most expensive sponsorship
opportunities for marketing. You've only got to look at the names and companies involved, how much they've paid to be associated with the
worldwide event. But the effect of that, of course, is that FIFA requires any other names to be taken off.
So, for example, the Lumen Stadium in Seattle has to be called the Seattle Stadium because you can't use the marketing name. And indeed, even within
the stadium, things have been blacked out, as we heard about on QUEST MEANS BUSINESS last week.
HUGH WEBER, PRESIDENT OF BUSINESS OPERATIONS, SEATTLE SOUNDERS FC: FIFA is the global representation of the sport. We just saw a story about the
Knicks and how it's taken over New York City, but each one of these matches that will be hosted in Canada, U.S. and Mexico has a viewership that's
actually larger than even the finals, the match -- finals game that happened with the Knicks. So they carry a lot of weight. And so when they
come along and say, we want to have a Seattle Stadium instead of what you call it, we tend to comply.
QUEST: Then there are those companies that are taking advantage, if you will, of being on the other side. Kraft Heinz is got two examples of where
their products, their ranch dressing and their Heinz ketchup are both in some way or other fallen foul of the World Cup as I heard from the chief
marketing officer.
TODD KAPLAN, CHIEF MARKETING OFFICER, KRAFT HEINZ: Brand building is about not just about big TV ads and all that stuff. It's about having a heartbeat
and a pulse for your brand and being relevant in these cultural moments where your brand matters. And there's been a couple of things that have
come up quite recently, even as you think about the soccer that's all happening in North America at the moment from an international perspective.
One great story is the -- we have to move with speed and agility, I will tell you about. And one of the stories is on, when you go to a lot of these
stadiums right now, FIFA has blacked out, you know, logos on the stadium, signage in the stadiums. They very much want to have official sponsors, all
of that kind of stuff.
QUEST: And we've talked about it on QUEST MEANS BUSINESS where --
KAPLAN: We've talked about it, right.
QUEST: In Seattle. Everything has been --
KAPLAN: Blacked out, right. And to be clear, we are not an official partner. And listen, with all respect, we have a lot of respect for FIFA as
an organization and what they're doing.
QUEST: But?
KAPLAN: We found -- we started seeing through social listening on social media that in stadiums, in the suites of the stadiums, even down to the
condiments, so there were condiments next to all the hot dogs, hamburgers, whatever people having on all the bottles of Heinz black electrical tape,
people were blacking out the bottles, even down to that level of the branding was frowned upon. And so rather than -- and we started to see this
getting traction on social media, people were like, oh, my gosh, even like blacking out the condiments. What's happening?
We moved very quickly with our team in Canada to say, you know what, why don't we lean into this?
[16:55:03]
And so we actually came out with Heinz unofficial stadium ketchup in Canada. And it basically it's a bottle of Heinz with black tape over the
Heinz logos throughout it. And we're giving that to consumers so consumers at home can have the authentic stadium experience in their homes, which has
black tape on your Heinz. So --
QUEST: It's very clever.
KAPLAN: It's just moving very quickly with things like that.
QUEST: And then you've got the ranch.
KAPLAN: Oh, ranch is another thing, too. So one of the great things about this World Cup is seeing all the fans coming into America and experiencing
all the best parts of America from different cultures and whatnot. And one of the things that's been so fascinating has been ranch dressing. It's a
great American delicacy, ranch dressing, and a lot of people from other countries are coming in and they're just, oh, my gosh, I have to bring this
home. I'm dipping my pizza in it, I'm dipping my fries.
And so they're bringing bottles back with them to the airports, but they're getting confiscated at TSA, at the security at the airport, because you
can't bring liquids in a big bottle. And so you're seeing pictures from airports of ranch dressing in the garbage cans, all thrown out, and TSA
even issued guidance to consumers and said, reminder, ranch dressing counts as a liquid. We said, well, we have ranch dressing, we have Kraft ranch
dressing, which is one of the best tasting ranches out there.
And we said, why don't we lean into this as well? And so within 24 hours, we came out with these 3.4 ounce little sachets of ranch that you have that
you usually get in a restaurant. And we're now giving them away to consumers at scale, where you put enough of them in a clear, a clear carry
on that it adds up to the size of a total bottle. And so now we're leaning into that moment as well.
QUEST: As a brand marketer, as the -- this requires a mindset change from you.
KAPLAN: Yes. Yes.
QUEST: To be able to say, dong, light bulb, this is happening. There's a horse that I can ride.
KAPLAN: Yes, that's right. And I think it's one of those things that some of the best ideas and executions are not briefed that we end up doing.
There still is a lot of traditional marketing. You brief the agency, build an ad, do a lot of the, you know, social media, how we do a lot of that.
But there's a lot of it that is just keeping your ear to the ground, having diverse teams, being in tune with what's going on in that cultural pulse,
to know where and when your brand matters, whether it's through a sport, a situation that's relevant to your brand, whether it's through something
else in culture.
And again, it's not about chasing everything out there. It's about finding those right beats where your brand matters, and figuring out a way through
creativity and organic media, and earned media on how you can drive touchpoints for your brand and engagement. This idea of people opting in
because then these are the articles and the posts on social that people forward to their friends, they text to their family. They're like, oh, my
god, did you see this?
That's a much higher engagement than coming in through paid media solely at the top of the funnel. So you need both. And it's a skill that we're trying
to move very quickly through agility here at Kraft Heinz.
(END VIDEOTAPE)
NEWTON: Our thanks to Richard for that culinary cameo because this is QUEST MEANS BUSINESS. I am Paula Newton, and "THE LEAD WITH JAKE TAPPER" is next.
END
