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Quest Means Business
Advisers: Trump Fires Katie Zacharia As White House Press Secretary; Chalmers: Focused On The Fight Against Inflation; Pope Leo Has Phone Call with Russia's Vladimir Putin; Republicans, Democrats Hold Competing Rallies Across United States; Alef Completes 1,000th Flying Car Test Flight; Antoine Arnault: We Never Really Look At Quarterly Results. Aired 4-5p ET
Aired October 16, 2026 - 16:00:00 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: And so, it got kind of ugly right after lunch, as you can see there, down all the way. But especially take a
look at that NASDAQ, A.I. jitters taking hold for investors there.
Those are the markets and these are the main events. Katie Zacharia is out as White House Press Secretary just five days after taking the job.
Fed Chair Kevin Warsh says A.I. is delivering a shock to the U.S. economy and Antoine Arnault, one of the heirs of the world's largest fashion
empire, discusses succession plans at LVMH.
Live from New York, it is Friday, October 16th. I am Paula Newton, in for Richard Quest and this is QUEST MEANS BUSINESS.
And a very good evening to everyone. We do begin in Washington, and a shakeup in the White House Press Office.
Advisers to President Trump say he has fired his brand new Press Secretary, Katie Zacharia.
Zacharia held the job for less than one turbulent week. Her debut at the podium lasted just 14 minutes on Tuesday and was widely panned. Her
credibility was also called into question.
Zacharia frequently promoted herself as an attorney, even though she never actually passed the bar exam in any state. President Trump said he asked
Zacharia earlier to, in his words, reconsider the role.
Listen.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: I know, Katie, that in my opinion, she was treated very, very unfairly. Very unfairly by
the news. Let's go with the fake news or the news or the media. You take any term you want.
And I said, Katie, do you need this? I don't think you need this.
(END VIDEO CLIP)
NEWTON: Kevin Liptak is with me.
I am wondering if you can run us through what likely went on in The White House, because he had come out and said that she should reconsider the job,
and then we heard from The White House that she had indeed been fired.
KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: Right. I mean, the President doesn't come out and tell the world that he wants you to reconsider your
post without an outcome that is not you leaving the post. You know, this is pretty evident from the President when he was speaking to reporters there
on the South Lawn.
In fact, by that point, we are told that the deed had been done essentially, that Katie Zacharia would no longer be filling this very, very
important position. And I do think, you know, it does kind of underscore an issue that we seem to be experiencing here at The White House, which is the
President sort of finding this person on television and offering them one of the most important jobs in the entire federal government without any
real consideration for the experience or the requirements for something like this and it seems to have all now crashed down around him. This was, I
think, a flop in a lot of ways.
You know, the President didn't initially think that that initial outing on Tuesday when as poorly as so many other people seemed to think it did, he
came out and suggested that she had done a great job, and by the time he had gotten on Air Force One to fly to Alaska, he didn't seem to think
anything was wrong.
It was only after, I think he began hearing from people that this was not sort of a serious look for a White House at a very critical moment
politically, but also just globally, given all of the things that are going on, I think it was reinforced with him that he needed to have someone who
was more confident in this job, and perhaps knew a little bit more about what was going on around the government, and so that they could credibly
relay that to the press and to the public.
And by, I think, the end of this week, it had become clear to the President that Katie Zacharia was not that person. There were also, I think, some
very telling interviews that she did on Fox News over the last 24 hours that perhaps she thought would have been more friendly terrain, but turned
out to be surprisingly combative.
You know, Sean Hannity, who is on Fox and is a friend of the President's, really sort of grilled her on this question of whether she had ever passed
the bar, which she has not, and why she had allowed it to be out there, that she was an attorney. That was much, I think, tougher than people would
have expected and it continued again this morning in an interview on "Fox & Friends". They asked her whether she thought that she retained the
confidence of the President, and she said, yes, she did. She wouldn't be there otherwise.
We talked to her on her way in, and she continued to suggest that she planned to do additional briefing. She encouraged reporters to continue
working with her, but of course, it was only a few hours later that she was out of the job.
[16:05:09]
NEWTON: Yes, it certainly underscores as well, Kevin, a certain level of chaos in this administration that can't be easy for American taxpayers to
witness, given this is a taxpayer paid for position and something that is important in order to inform voters.
Kevin Liptak for us at The White House, grateful to you.
Now, the Chairman of the U.S. Federal Reserve says artificial intelligence has become a shock to the economy. Kevin Warsh addressed the IMF World Bank
meetings in Thailand. He struck a hawkish tone, vowing to return price stability for U.S. consumers. Big investments in A.I. along with high
energy prices have kept inflation elevated.
Warsh cautioned that the A.I. transition may at times be difficult. The Chairman, however, said it will help the economy in the long run. Listen.
(BEGIN VIDEO CLIP)
KEVIN WARSH, U.S. FEDERAL RESERVE CHAIRMAN: If you're a central banker and you're in the business of trying to ensure stable prices and full
employment, you've got to recognize this as a shock. But it is a positive supply shock in the medium term. I do fundamentally believe that.
(END VIDEO CLIP)
NEWTON: Ken Rogoff is the former chief economist for the IMF. He is now an economics professor at Harvard, and he joins us now.
I do wonder what you make of this. So Warsh, as we just heard him said, it will be a positive supply shock in the medium term. I mean, look, can you
have caution? Right? You have cautioned that while the opportunities are significant, that so is the volatility and the risk.
Where do you parse this now? And I have to point out, I mean, A.I. investors have been quite jitterish, as we saw just this afternoon.
KENNETH ROGOFF, FORMER CHIEF ECONOMIST AT THE INTERNATIONAL MONETARY FUND: Well, I think first and foremost, Warsh probably doesn't want to raise
interest rates unless he has to at the next meeting. He did it once and he probably doesn't want to do it twice.
He recognizes that if inflation stays high, he is going to do it several times. But just before the election, he doesn't want to. So nothing makes
him happier than having the conversation be about something, you know, like this.
But yes, nobody knows where A.I. is going. I guarantee you, everyone in Thailand, they had all the world's central bankers, finance ministers
converging on Thailand. That's all -- they were talking about, they don't know where it is going.
I suspect that Warsh got the job by saying that he thought it would make interest rates go down. Mr. President, the interest rates will go down, you
don't have to worry.
But it was notable in these remarks that he said, well, it looks like the demand is coming first. Everybody is consuming more. There is a lot of
investment that's driving prices up, and he is getting things ready for that, he is going to raise interest rates, but he had enough confidence in
his board and his recent achievement -- his recent media that he doesn't have to this time.
So that's what I was hearing, and I think everyone else was hearing that, too.
NEWTON: And in terms of this A.I. shock to the economy, how does that dovetail to the debt markets right now? I mean, A.I. is competing with
sovereign debt. We see yields rise. We talk about inflation that seems incredibly stubborn. Now, you say, and you've already stated that look, you
do not think he is going to raise interest rates and yet what other tools are at his disposal right now?
ROGOFF: No, I think that he is going to raise interest rates several times. But what he is trying to avoid is doing it just before the election. I
mean, it is just very tricky ground for any Central Bank, I know they are not supposed to look at politics, they all look at politics. It is part of
preserving their independence.
So I think for sure, near term, there is no question they are driving up interest rates. It is not just all the data centers and everything, it is a
lot of people think they are going to be richer. The stock markets making them richer. We are getting very strong consumption in the United States,
particularly from people who are getting the benefit from all of these stock price increases, but I think from others who think they are going to
get the benefits from more government spending over time.
So yes, that is what he is dealing with. He was looking to have investors think he would sit on his hands for now.
NEWTON: For now, and yet, I am wondering what you see in the year to come. I mean, look, the word shock, that means it is going to be jolting, and as
much as some people say that the A.I. will have the productivity gains, we are seeing that those gains could come much more slowly, and so I ask you
this, Ken, given your prior positions, you know, some people do not believe that Chair Warsh really has that much power in order to really bring down
inflation meaningfully or do anything to kind of calm the shock that is coming to the market through A.I.
ROGOFF: Well, he doesn't have anything to do with A.I. is taking away jobs if it is causing cyberattacks and all kinds of other problems.
[16:10:10]
The Chair of the Fed cannot do that, but he can address inflation, not overnight. He needs to see where it is going.
But the interest rate is a very powerful tool. It cuts demand and you're seeing it in the A.I. companies. You're talking about the jitters. There
are some of these A.I. companies as interest rates are going up, it is not just the Fed, it is other things, but as interest rates are going up, some
of them are starting to fold. They can't all take the heat.
Interest rates going up is very painful for a business that is growing, trying to hire new people. They need money. So it is a very powerful
instrument.
NEWTON: We will see -- exactly see how far he goes if he does raise rates in December. But you are correct, there are a lot of jitters in the market
this week about the issuance of that debt.
Ken Rogoff have a great weekend. Always good to touch base with you. Appreciate it.
ROGOFF: You too.
NEWTON: Now, Australia's treasurer warns he is seeing substantial pressure on bond yields. You can understand why, just given the discussion we just
had with Ken Rogoff.
Now, Richard Quest caught up with Jim Chalmers at the CNN Global Perspectives Event in Bangkok and asked him if there is potential for that
upward pressure to boil over.
(BEGIN VIDEOTAPE)
JIM CHALMERS, AUSTRALIAN TREASURER: From our point of view, we are focused on our part of the fight against inflation. You know, we've been able to
get the budget in much better condition than what it was when we came to office, but we know that there is more work to do there.
Budgets aren't the primary determinant of prices in our economy, but we can continue to play a helpful role and that is our focus.
RICHARD QUEST, CNN INTERNATIONAL HOST, "QUEST MEANS BUSINESS": But the de- jour stuff is really about bond yields, and it is about whether or not a crisis is going to erupt. It is certainly brewing, but will it boil over?
CHALMERS: Look, not our expectation. You know, I got all of our financial and economic regulators together a couple of weeks ago in Australia to go
through all of the scenarios and contingencies and we are seeing some fairly substantial upward pressure on bond yields. You see that right
around the world -- U.S., Japan, elsewhere in Australia as well.
But so far it has been an orderly reaction from the market.
QUEST: In your view is that -- what is feeding it? Is it -- is it just that the U.S. and in certain E.U. countries that there is great worry about
deficits, or is it a crowding out of investment from hyperscalers and those sort of things?
CHALMERS: Yes.
QUEST: What --
CHALMERS: I think it is at least those two things, but probably more like five things. I think it is the people's expectations about inflation
because of what is happening, this prolonged war in the Middle East. You saw with American inflation, the numbers that have just come out, we saw a
spike in the U.S. because of global oil prices. That's the first one.
Secondly, you know, the expectation around every major advanced economy right now, the market is pricing in more interest rate rises. There are
concerns about the debt position of different countries around the world. There is the competition from the hyperscalers, this absolute mountain of
capital that the hyperscalers are raising.
And then, the fifth category, I think, is this backdrop of accelerating change energy, technology, demography, industry, geopolitics and just that
level of uncertainty that everybody is dealing with here.
QUEST: The worry, of course, is that it creates such uncertainty that things fall over, that an accident happens, that there is a fissure in the
market, whether it be whatever. And then the whole lot comes tumbling down.
Now, we are clearly in a much better position than we were in GFC or debt crisis. So that's never forgotten, but the big difference, of course, is
that the risk is magnitude, because A.I. is magnitude, and the debt levels are magnitude.
CHALMERS: Look, there is more than the usual amount of volatility, and that means more than the usual amount of risk. I think that's true.
From an Australian point of view, you know we've got a sliver of the gross debt to GDP that other countries have got, and so primarily we think about
this in terms of borrowing costs. But for Australia, we've been able to get that debt trajectory down a bit.
We are exposed to this upward pressure on bond yields and what that means for borrowing costs. But for us, we are better placed and better prepared
than a lot of other countries, but we are obviously monitoring all of these developments very closely.
QUEST: I need you to take off your Treasurer hat and put on your politician hat, if you may, sir.
Pauline Hanson on the right.
CHALMERS: Yes.
QUEST: There are those of us who were -- who raised eyebrows that Miss Hanson is back. I mean, those of us of a certain age remember in previous
times, but it is obviously a worry because the support now being given to the right along in other countries as well, do you see this as a temporary
phenomenon?
CHALMERS: That remains to be seen.
QUEST: Are you concerned by it?
CHALMERS: Yes. And you know, we never underestimate our political opponents. We don't take the outcome of the next election for granted,
never have, never will.
[16:15:11]
And I think it is self-evident that Australia, like a lot of other countries, including countries represented here, we are seeing the rise of
the far-right.
QUEST: But what message is it saying that you in more sort of middle of the road governments have to take on board if you're not going to lose? What is
the message?
CHALMERS: Well, I think it reflects the very serious and substantial pressure that people are under. You know, this inflation challenge that
we've got made much worse by the war in the Middle East is weighing heavily on people in Australia and around the world, and so we don't -- again, we
don't dismiss that.
We recognize that, we are responding in tangible ways. Tax cuts, universal health care, wages, paid parental leave. And we are also reforming our
economy. We recognize as a sensible party of the center in Australia, that you can be a sensible party of the center and not necessarily just spend
all of your time defending the status quo.
For example, in the housing market and the tax system. We are engaged in some pretty contested and contentious tax reform.
(END VIDEOTAPE)
NEWTON: Thanks to Richard once again.
Now Paris is widely recognized as the fashion capital of the world, and few companies, if any, have a larger presence than LVMH. Richard Quest was in
town last week for a look at the company's workshops.
(BEGIN VIDEO CLIP)
QUEST: Not surprisingly, on the Champs-Elysee here in Paris, LVMH has a sizable presence from the watch company, Tag Hauer, over there to Dior,
which is near the Arc de Triomphe or indeed, of course, the piece de resistance, Louis Vuitton, the Flagship store.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
NEWTON: So Pope Leo made a phone call to Russian President Vladimir Putin from the hospital today. This is just days after his lung cancer surgery.
The Vatican says Leo expressed his concern about the grave humanitarian situation in Oleshky, which is a Ukrainian city occupied by Russia.
Ukrainian authorities say about 2,000 civilians remain there and supply routes for food and medicine are blocked. The Pope called for a local
ceasefire to allow for civilians to be evacuated and aid to be delivered.
CNN's Christopher Lamb is in Rome for us tonight.
I am -- this really caught my attention, Christopher, and I am wondering if you can, you know, let us in behind-the-scenes here.
[16:20:10]
CHRISTOPHER LAMB, CNN VATICAN CORRESPONDENT: Yes, well, Paula, I think that Pope Leo was very keen, we are told, by one of his senior aides, Cardinal
Parolin to take the initiative to raise with President Putin the plight of the people in Oleshky, southern part of Ukraine, and I think that the Pope
even as you say, in his hospital bed and recovering from surgery and his lung cancer diagnosis is still trying to affect or use his soft power to
try and affect change, to try and build a more peaceful world.
I think the Vatican has been concerned for a long time about trying to broker some kind of dialogue or some kind of mediation between Russia and
Ukraine.
Pope Leo has spoken about this many times. I mean, you may remember, at Pope Francis' funeral, that extraordinary picture of President Trump and
President Zelenskyy speaking together, something to look at just before that funeral.
And there is a sense that the Vatican tries to offer itself as a kind of mediator to try and bring about some kind of resolution or humanitarian
help for the people of Ukraine.
And there is talk of perhaps some sort of humanitarian corridor being created. So I think that's what was really behind Pope Leo's phone call, if
he could in some way influence the President by using his moral authority, his soft power, and, you know, the fact that Leo is doing that from the
Gemelli Hospital shows just how keen he is to respond to this emergency, but also that he is getting back to work after what has been a very
difficult time.
He has had this lung surgery, this cancer diagnosis, and a lot of uncertainty over the future of his health -- Paula.
NEWTON: Yes, and he must have been concerned that even though he certainly is still trying to recuperate, that time was of the essence and he figured,
I guess, that if he was going to have any influence, now was as good a time as any.
Christopher Lamb, really grateful to you to be in Rome for us live tonight as we continue to watch the Pope's condition, and obviously, as you said,
what he has been doing to get back to work. Appreciate it.
Now LVMH is showing off its workshops and private ateliers across the globe. That's starting today. It is a rare look at the craftsmanship behind
dozens of the groups luxury brands.
Antoine Arnault, one of the heirs to LVMH, says the event showcases how important quality is to the company. He gave our Richard Quest and I am
envious, a tour of the Journees Particulieres Projects in Paris.
(BEGIN VIDEOTAPE)
ANTOINE ARNAULT, LVMH: This is an incredible skill.
QUEST: These are beautiful.
ARNAULT: Yes!
QUEST: You better make sure that the stock management makes sure that that stays there.
ARNAULT: Yes! People forget how products are made. They forget the artisanship and the craft that is needed to -- and the time and the
meticulousness, if that's a word in English that is needed to produce these beautiful shoes, fashion garments, handbags and we want with the rest of
the group that once every few years, what happens behind the curtains, what happens behind the scene is open and that anybody and everybody, not simply
clients, can come and ask questions and spend time with the artisans so that they explain their craft.
And so that the spectator sees and realizes how difficult it is to produce such an incredible product.
You have shoes and clothes and belts and sort of these, you know, more modern sneakers to cater to.
QUEST: Do you think there are some people who think, what is the world coming to?
ARNAULT: Maybe!
QUEST: What?
ARNAULT: We had, you know what --
QUEST: The fall of the empire.
ARNAULT: We had a few who were so critical at the beginning of this --
QUEST: Yes?
ARNAULT: -- and now they only wear it.
QUEST: In terms of a of a company the size of LVMH. It is a niche area in a sense, but it sets a tone for the rest of the products, doesn't it, in a
sense, that level of quality that is there.
[16:25:10]
How difficult is it to maintain in today's economic environment that level of specialism, of craftsmanship?
ARNAULT: Well, it is everything to us. The way we think of our brands and of our maison and every sort of subcategory of products is that we need to
give the maximum possible quality to every one of our customers.
There will never be any compromise on quality. That is why sometimes actually, and we've been criticized for it, prices of our products increase
because the raw material increases, the price of energy increases -- you know, the price of labor increases, and thus, the price of the final
product increases.
QUEST: Let's just suffice it to say, this is a price or two. It is about $1,200.00.
ARNAULT: Yes, indeed.
QUEST: And this is about $800.00. I understand that there are people in this world who can afford this.
ARNAULT: Yes.
QUEST: I get it, and that's just the way it has always been, isn't it? I am not asking you to defend it. I am asking you to sort of to comment or to
give me a perspective on it, luxury!
ARNAULT: Well --
QUEST: Luxury.
ARNAULT: Okay. Okay. Well, luxury, it is, you know, this is not just a regular t-shirt and not the same that you're going to find in the store in
front of us, which is beautiful or in a fast fashion -- I mean, the function is going to be the same, but the level of craft, the raw material,
the durability, the way that, you know, you're going to wear this t-shirt in ten years when your, I don't know, a Zara t-shirt will be completely in
the --
QUEST: That will have them writing to us!
It is really difficult, isn't it? Because the sort of people who buy your stuff aren't necessarily the sort of people who are going to be hit by an
affordability crisis per se, but it again, it is the relationship that you have to this idea of quality.
ARNAULT: Yes. So I don't want to say that you're wrong, but we don't sell only to millionaires and billionaires. You know, we have products that are
more affordable. We have perfumes, for example. We have cosmetics, lipsticks, and I am not saying that everybody can afford them, but they are
quite more accessible than you imagine when you are here in the Berluti store with thousand euros pair of shoes.
QUEST: Yes, I don't -- I've had a bout of indigestion when I looked at some of this or some of those things. And how was it for you as an image? How is
it -- how significant is it that you do have the products that do go to a more accessible range?
ARNAULT: Yes. We don't think of it like this. I mean, every maison has its customer target and wants to access, you know, their specific customer.
However, if you look at the group at large, we see that, yes, we are pretty well represented on every level of sort of accessibility for these
customers.
Now, of course, I come back to the quality. It is absolutely essential, and this Journees Particulieres are a real way to showcase how important it is
for us. I know that sometimes we can be a little bit caricatured, or it can be seen as such a big group that it has to be made on an industrial level.
But it is not true at all.
QUEST: Yes.
ARNAULT: Actually the exact opposite.
(END VIDEOTAPE)
NEWTON: Fascinating interview, again, love to be Richard in that situation. After the break, Elon Musk is looking to take Tesla to new heights, but he
is not alone. We hear from a competitor whose company just logged its 1,000th test flight after this. Look at it fly!
(COMMERCIAL BREAK)
[16:32:11]
NEWTON: Hello, I'm Paula Newton, and there is more QUEST MEANS BUSINESS in a moment.
When Elon Musk says Tesla is making good on its promise to make a flying car, we speak to the CEO of another flying car company about the challenges
that it brings.
And speaking of Elon Musk, he is been pouring eye-watering amounts of cash into the Texas Senate race.
Harry Enten will take us through the numbers.
Before that, though, the headlines this hour.
Now, White House Press Secretary Katie Zacharia has been fired after less than a week on the job.
President Trump's advisers say he fired her after a turbulent week. Zacharia had come under intense scrutiny after a short and awkward briefing
on Tuesday.
She was also forced to admit that she is not a licensed attorney, even though she had publicly presented herself that.
Police are searching for a motive behind Thursday's deadly shooting at an elementary school in Bend, Oregon. Authorities say a 16-year-old forced his
way into the school by shooting at locked doors.
Three children, ages 5, 8, and 11, were killed, along with a teacher. Another child and teacher were injured. The shooter was killed by a
bystander before police arrived.
Pope Leo made a phone call to Vladimir Putin today. He urged the Russian leader to allow a humanitarian ceasefire in a Ukrainian city currently
under siege.
Now, we also got our first look at the pope following his surgery this week for lung cancer. He conducted a private mass and will do a public one on
Sunday.
Just 18 days left until the U.S. midterm elections, Republicans and Democrats are hitting the campaign trail hard. Right now, President Trump
is speaking at a rally in Dalton, Georgia. It's in support of Congressman Mike Collins, who is running against Jon Ossoff for a Senate seat.
Now, meantime, new filings with the Federal Election Commission are shedding light on Elon Musk's heavy influence. We'll call it that on the
nation's midterm races.
The tech billionaire contributed more than $150 million to boost Republican efforts in the unusually competitive Texas Senate race.
Texas is where many of Musk's business interests are based, and that includes SpaceX, Tesla, and X.
Our chief data analyst Harry Enten joins us now.
Harry, been dying to talk to you as we're only 18 days out. So, we will start with the money. Right?
Does it make a difference? It's huge amounts this time, as it was last time. But I mean, come on, $150 million just in Texas?
HARRY ENTEN, CNN CHIEF DATA REPORTER: I mean, it's Nutter Butter. Right? But there is a reason -- I mean, you said it best, and the look on your
face too.
I mean, look, but here is the -- here is the thing. The reason Elon Musk needs to spend so much in Texas is because Ken Paxton, the Republican
Senate nominee, hasn't been able really to raise much money himself.
[16:35:07]
I mean, in the -- you know, in the last quarter, what did he raise? Like $19 million or $18 million, including joint fundraising committees. He has
to essentially Musk has to come in and put in all of that money because James Talarico has been raising so much money.
I mean, what did he raise? Like $64 million or something like that? The Democratic nominee. So, essentially, Musk is trying to come in here and be
the savior for the Republican candidate in that race, Ken Paxton.
But at the end of the day, Republicans have been spending all of this money across the map, and it really has not been shifting these seats. So,
essentially, to me, I look at this and I say it probably isn't going to be the thing that ultimately makes the difference.
NEWTON: All right, Harry, we are going to go to the poll of polls, as we call it. You are the expert on this, and you will remember the nightmare
that so many have had with polls over the last decade. People are asking again. They are saying that look, it's not whether or not there will be a
blue wave, but that there will be one. How -- you know, how big will that wave be?
ENTEN: Yes.
NEWTON: But what do you think in terms of when you see the difference in the way polling is conducted right now today compared to even let's say two
years ago?
ENTEN: I mean, look, polling is always changing a little -- back, I got a little feedback in my ear, so, I'm going to take my ear out. But here is
the situation: polling has always changed, or has been changing over the last few cycles, and a lot of people are trying to capture those folks that
they missed the last few cycles.
But I want you to take a look at your number on your screen right here. This is Marist Poll. A bunch of polls have come out, they show the same
basic thing that is, James Talarico is ahead, but we would signify it state it's no clear.
There is simply put never been a Texas Senate race this late in the campaign, this century, in which a Democrat has even been nominally ahead.
So, this is very different from what we are looking at.
And yes, it is a hundred percent the case that the polls have been underestimating Republicans the last few cycles.
However, that being said, you go back to 2018, which was the last time you really had a midterm competitive race in Texas. James Talarico is polling
significantly better than Beto O'Rourke. And more than that, Ken Paxton is historically unpopular. He is the least popular Senate candidate in Texas
this entire century. No one is even close.
I'm not saying that Democrats are going to finally pull it off in Texas, but I am saying they are in their best position. And when you look across
the political map at this point, Democrats do have the advantage. I think the question is, will the polling error be like what it was in 2024, where
it underestimated Republicans, or will it be like what it was in 2022, when the polling underestimated Democrats?
There is probably going to be a polling miss, and there will be some across the political map. The question is who ultimately benefits, and if you know
the answer to that one, my dear friend, then, I dare say we should all be heading to Vegas right now, because I think there would be a lot of money
to be made.
NEWTON: Vegas. I hear you. And since then, we've had you know the prediction markets as well. But Harry, I'm really glad you brought up 2022
because you are correct. I had forgotten about that. But again, you are right, my friend.
(CROSSTALK)
ENTEN: I try.
NEWTON: Harry Enten, come back often in the next 18 days. We'll be calling --
(CROSSTALK)
ENTEN: Sounds great.
NEWTON: Don't go far.
ENTEN: I won't be.
NEWTON: Thank you very much.
ENTEN: I'll be ready at the hit, hit a home run.
NEWTON: All right. All right. Sounds good.
Safe to say now, Elon Musk, as we just heard, he is been busy. Last night, the CEO of Tesla and SpaceX unveiled a new flying -- I don't call it
hopping vehicle dubbed the Tesla Roadster. It uses suction to climb the steep ramp. You see it here. Air jets to help land the vehicle and can
reach nearly 100 kilometers per hour in less than a second.
But even Musk had some skepticism ahead of the Roadster's display. Listen.
(BEGIN VIDEO CLIP)
ELON MUSK, CHIEF EXECUTIVE OFFICER, SPACEX AND TESLA: Success is not guaranteed. So, I want to, you know -- I mean that. It will probably work.
But if it doesn't work, we are at a safe distance.
(END VIDEO CLIP)
NEWTON: Tesla is not the only car company going airborne. My next guest runs a company that just completed its 1,000th test flight last night, and
now, in the spirit of friendly competition.
Alef is showing how it can soar over the competition, figuratively and literally. You see it there. That's a Tesla Cybertruck and Roadster you are
seeing parked there on the ground. Alef Aeronautics CEO Jim Dukhovny joins us now.
Jim, good to see you. We are, of course, all curious. When we look at these vehicles, you have been at this for several years, and you have gotten
different rounds of funding. But we ask both you and Elon Musk: When is any of this going to come to fruition? When are we going to see any of these in
the air or on the ground?
[16:40:02]
JIM DUKHOVNY, CHIEF EXECUTIVE OFFICER, ALEF AERONAUTICS: Thanks, Paula.
So, we already started making the first one to deliver to the customer. So, you might see it as early as beginning of the next year. That doesn't mean
you are going to see many of them. Right?
You are going to see one, then you are going to see two, then you are going to see 10, then you are going to see 100, maybe.
You correctly pointed out that Tesla just made the first one and we made 1,000th one. So, we, a little bit ahead. But that being said, Tesla has
much more money than we do.
We are pretty mature at this point, and we hope to get it out as early as the beginning of the next year. With the first one, is already 75 percent
done to deliver to the customer.
NEWTON: OK. You say deliver to the customer, but you must have gone through a lot of regulatory approval here. Where can it be used? How can it be
used? What -- how many of its capabilities?
Because there are a lot of prototype cars that you can take to a racetrack, but that doesn't mean you can drive it to the grocery store.
DUKHOVNY: Correct. So, there is a lot of regulations. Tesla, for that demo, they got a fair exception for that. But they will have to do the full type
certification, which is many years and many billions of dollars.
We made our car conformant to the ultralight use. So, ultralight classification allows you to fly without certification and without pilot
license, but with a lot of restrictions.
That being said, you can literally use it today. The next version of Alef car would be LSA light sport aircraft, which again, does not only requires
a special awards and certification and does not require full type certification.
Hence, we have quicker path to market. But yes, we had to make it conformant to these rules, and that would took us 11 years.
NEWTON: 11 years so far, Jim, you are saying that perhaps the first one will be delivered early in the next year. I'm wondering what the cost will
be, first off? And when do you see what kind of timeline do you see for full commercialization here?
Are we talking at one decade, two decades?
DUKHOVNY: No, I think it's much sooner than that. We hope to get it like very soon, like I said, like early next year, we already started building
it.
The car is already -- you saw some videos. If you look at earlier, like videos available online. We are already flying in the cities. But again,
the main thing was to make it conformant. Right? So, we spent all this time on safety.
There is -- it's not a secret that the main barrier, if you want to call it, or main thing which will make it available everywhere is safety. That's
what we were working for 11 years: is safety to get it there.
When it will be ubiquitous, it's hard to tell. It depends on many factors. It depends on adoption. A lot of people skeptical. This is why I am here.
This is why I'm trying to make sure that people actually know how safe it is, how good it is, and everything like that.
There is regulations. We had to make it conformant to the regulations. So, I think the mass adoption will take time, but I don't think it will be
decades. I think, maybe five years.
NEWTON: All right. We have to leave it there. But I have to ask you how much then? I had read about $300,000. Are we still looking in that -- in
that category?
DUKHOVNY: Correct. So, as you know, economy works like this. When you make one, it's very expensive. So first one, $300,000, because it's going to
take us almost close to that to make one.
As we make more, as we make it mass manufacturing as we optimize manufacturing, as we get the volume, eventually, it should be under
$25,000.
(CROSSTALK)
NEWTON: OK. 25 --
DUKHOVNY: And the reason for it is --
(CROSSTALK)
NEWTON: I got -- I got to go.
(CROSSTALK)
DUKHOVNY: Reason for it is very simple. Is --
NEWTON: I got to go, Jim. We are going to leave it there for now. But $25,000, we are going to come back to you often just to see how this is
going. Appreciate your time.
DUKHOVNY: Thank you, Paula.
NEWTON: Now, when we return, part two of Richard Quest's interview with one of the heirs to the LVMH Empire.
And Antoine Arnault describes running the company with his four siblings and their agreement to stay away from tabloid rumors.
(BEGIN VIDEO CLIP)
ANTOINE ARNAULT, DIRECTOR OF IMAGE AND ENVIRONMENT, LVMH: 20 percent of it is true, and 80 percent of it is invented. So, it's difficult to manage.
But we decided now collectively not to read them, to just let them on the side and not make any decisions based on these silly rumors.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
[16:46:56]
NEWTON: Cote d'Ivoire is Africa's top global cocoa producer and exporter. While most raw beans have typically been exported and processed abroad, one
company is building factories across West Africa to process these beans at home.
CNN's Victoria Rubadiri explores how the move is creating value and boosting local economies.
(BEGIN VIDEOTAPE)
VICTORIA RUBADIRI, CNN INTERNATIONAL CORRESPONDENT (voice over): These raw, bitter, earthy cocoa beans are destined for a sweet future.
Soon, many beans like these will be going to a newly built processing facility in the southwest port city of San Pedro, Cote d'Ivoire.
DOMINIQUE G'BESSO, PROJECT DIRECTOR, ATLANTIC COCOA CORPORATION: We started in May 2025 for the erection of this plant. We have around 250 people
working now on the project. By the end of this year, we are planning to finish with installation of equipment.
RUBADIRI (voice over): This $86 million processing facility will be the latest addition to the Atlantic Cocoa Corporation's portfolio. Expected to
be operational next year, the company says it's strategically placed to be both close to farmers and the port, and will have capacity to process
64,000 metric tons of beans a year.
PIERRE OUATTARA GNINAHOPHIN, MANAGING DIRECTOR, ATLANTIC COCOA CORPORATION: You know that cocoa is exported mainly in Europe and in America, Asia. It
means that it will bring back foreign currency.
RUBADIRI (voice over): The Atlantic Cocoa Corporation or ACC, currently manages two other processing facilities, one in Abidjan, and another in
Kribi, Cameroon.
GNINAHOPHIN: From the cocoa beans, we are producing cocoa liquor, cocoa butter, cocoa cake, and also cocoa powder in Cameroon plants. This product
will be shipped in Europe, in USA, or Asia, and partly in Africa.
RUBADIRI (voice over): The company is optimistic as it looks for opportunities to become a cocoa powerhouse within the continent.
RUBADIRI (voice over): In total, we will have 176,000 ton of beans grinding capacity per year.
In the next 10 year, ACC -- we are seeing ACC to be a real leader, I can say in West Africa and also in Central Africa, because we are -- we are
willing to build more and more branding facility.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
[16:52:08]
NEWTON: So, the man behind some of the biggest names in fashion, Bernard Arnault released a letter over the summer with rare insight into his family
and the inner workings of LVMH.
It was in response to a Le Monde investigation into him and his company. Arnault's letter read in part: "Luxury is one of the rare sectors to think
in generations rather than quarters. A cognac ages between 10 and 50 years before being sold." You don't direct like that -- "You don't direct that
like a digital platform: it's maintained, it's prepared, it's passed on."
Richard Quest asked his son, Antoine Arnault, a LVMH executive, about that statement.
(BEGIN VIDEOTAPE)
ARNAULT: I must say, for us, it's very comfortable, because even when the weather is a little bit difficult, we can say that we are -- we are looking
five, 10, 20, maybe even 50 years ahead. But it's true.
It's actually how we function in our group. We never really look at quarterly results, or even worse, weekly results. Of course, we have them
on our desk somewhere, and we know what is going on to be able to fine tune and manage the company.
But any strategic decision is always taken with this very long horizon ahead, and my father really insists on this not only with us, his children,
who all work with him in the group, but for any manager.
RICHARD QUEST, CNN INTERNATIONAL ANCHOR: The letter says about those articles, about the review thing. I would have appreciated at least a shred
of nuance, perhaps acknowledging how five highly driven personalities -- that's you and your siblings. Five highly driven personalities manage to
work under the same roof without the entire enterprise dissolving into a tragic Italian soap opera.
So, how do you do it -- the five of you?
ARNAULT: Well, first of all, we have been raised our whole life knowing we were going to work with him and then together. So, that, you know helps
when from a very young age, you are -- you are sort of, I mean, not told because it's a -- it's a very nice problem to have, but you are on that
track. And second of all, we just spend a lot of time together, we speak all the time, we have, I mean -- sorry to put it that way, but WhatsApp
groups where, you know, we exchange constantly about, you know, family issues or family good news, and sometimes, yes, we don't agree.
But doesn't anyone, whether it's in the same family or in a group of friends or in a company, we sometimes disagree.
But it's very healthy to disagree. Let's agree to disagree. Let's you know put it all on the table, resolve our issues once in a while, and then, I'm
not -- I mean, not saying it's a -- it's a, you know, the magical world of Walt Disney every day, but it's a -- it's a family, and it's a family group
a little bit more visible than others for sure.
[16:55:06]
QUEST: Do you weary at this voyeuristic interest that people have in the family? Does it become just a bit oh, get over it?
ARNAULT: Yes. Yes, yes, it does. And in the recent years, a whole new category of press has started to exist in France, which is like small
confidential letters that write almost every day about, you know, things happening or rumors. I would say 20 percent of it is true, and 80 percent
of it is invented.
So, it's difficult to manage, but we decided now collectively not to read them, to just let them on the side, and not make any decisions based on
these silly rumors.
QUEST: Final question, because you have joined the executive committee, and I read up more about the executive committee than I wish to know over the
last few days. Just to work out what exactly what not. And it's all about strategy. So, now, you are there. What do you want to do? What do you hope
your contribution is going to be?
Not just to say, executive committee, but as you work your way through the ranks, what do you want your contribution to be?
ARNAULT: Listen, I think, my role is going to be to pursue my father's incredible work and fantastic ascension to creating this wonderful group,
and to make sure it with my brothers and sister that it continues on this track for decades, if not centuries to come, with our supervision, our very
careful management of these houses and (INAUDIBLE) in general.
(CROSSTALK)
QUEST: Can I give you a word? Can I give you a word?
ARNAULT: Please?
QUEST: Custodianship, these -- of these maisons.
ARNAULT: Yes.
QUEST: Would that be appropriate?
ARNAULT: Absolutely. Yes, it would be. And it's a big responsibility. You know, we have 240,000 people working in this group. 40,000 in France. For
every one person working in the group in France directly, you have four indirect jobs that are associated to it in France. So, you know, it's a
couple of 100,000 people and families that depend on us and on the way that we manage this group.
And we are so proud of the way my father created it. And now, it's going to be one -- I mean, he is still very much you know piloting this ship, but
one day we will be the ones who will have to be in charge. And it's a great honor, but also a great responsibility.
(END VIDEOTAPE)
NEWTON: Candid interview, and we thank Richard for bringing it to us.
And that is QUEST MEANS BUSINESS. I'm Paula Newton. "THE LEAD" with Jake Tapper is next.
(COMMERCIAL BREAK)
END
