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Quest Means Business
Markets Drop Sharply After US Job Numbers; Marijuana Stocks React To Pot's Pardon; Biden Warns Of Armageddon Amid Putin's Nuclear Threats; Thailand's King, P.M. Meet With Families Of The Dead; Biden Administration Restricts China's Access To Chip Technology; Portugal, Japan Are Top Destination In Conde Naste. Aired 3-4p ET
Aired October 07, 2022 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:28]
ELENI GIOKOS, CNN INTERNATIONAL HOST: It is a bitter end to a rollercoaster week on Wall Street. The Dow is down sharply and it is
erasing much of the gains from earlier this week, as you can see, down over two percent. Those are the markets and these are the main events.
US jobs numbers show the labor market is slowing, but investors fear it won't be enough to ease the Fed's rate increases.
President Biden warns that Russia's war in Ukraine is pushing the world closer to nuclear Armageddon.
And the White House signals it is ready to decriminalize marijuana, US cannabis companies hope it could lead to full legalization.
Live from Dubai, it is Friday, October 7th. I'm Eleni Giokos, I am in for Richard Quest, and this is QUEST MEANS BUSINESS.
A very good evening and welcome to the show.
Tonight, a cooling US labor market is still too strong for Wall Street investors. US markets are sharply lower today. The Dow is down almost 700
points, as you can see down over two percent. It has had a bad day and it is spilling over into the S&P and NASDAQ as well.
Now, this follows news that the US economy added 263,000 new jobs last month. That number is smaller than in recent months, but it is enough to
suggest another large rate hike is on the way at the Fed's next meeting.
President Biden noted that job and wage growth are slowing down, and speaking at a Volvo factory, he said the US economy is on a healthy track.
Listen in.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES: The pace of job growth is cooling, while still powering our recovery forward. Wage growth for workers
who made solid down from historic high pace months ago, but still growing for workers who deserve a raise. And this is the progress we need to see.
In the short term, to transition to a more stable growth that continues to deliver for workers and families are bringing inflation down, in the long
term, the economy built on a firmer foundation.
(END VIDEO CLIP)
GIOKOS: Marc Stewart is in Washington, DC for us. Marc, great to have you on.
We saw the market starting off on a good footing earlier this week. But again, I mean, it is ending much lower. It has to do with an overheated
jobs market, which of course is feeding into inflation. Could you break down the numbers that is creating this concern that the Fed still needs to
tighten?
MARC STEWART, CNN CORRESPONDENT: Absolutely, Eleni.
So 263,000 jobs were added last month. That is pretty much in line with economist expectations of 250,000 new jobs. We're in a situation where
actually fewer jobs added to the economy may be a good thing, because it shows it or it would show that things are slowing down considerably.
But this was a solid jobs report, and as you mentioned, it still is a reflection that the economy is slowing down. This was not an unexpected
number compared to earlier in December, where we saw extremely high readings and that certainly raised concern about where the American economy
is heading.
As far as the gains, where these jobs are being added: Leisure and hospitality, that includes things such as bars and restaurants saw some of
the biggest gains in this report, perhaps a reflection that things have finally reopened, at least in the US and that people feel comfortable
spending money once again.
As far as the health of the overall job market in the US, it is still very strong. Yes, we have seen some layoffs in recent months in the tech sector,
in finance, particularly involving housing, but there are still jobs available.
I was talking to an economist or actually, I should say a recruiter from a top headhunting firm, she pointed out that people are not only leaving
their jobs right now voluntarily, but they are finding other jobs. So, people feel like there is room to move within the American job market.
And as far as future layoffs, which is always a lingering concern, this recruiter said to me, companies will think long and hard like they always
do, but they may think twice because it was so difficult to get hiring levels up to where they are now, as well as keeping talent they already
have -- Eleni.
[15:05:01]
GIOKOS: Yes, interesting. It is not often that we hear that it is an employee's markets and I think that's what we're seeing at the moment and
it is not good for inflation. It's fascinating. It's like a paradox.
But I want you to listen to what President Biden's interpretation of the jobs numbers are in speaking at that event in Maryland today. Take a
listen.
(BEGIN VIDEO CLIP)
BIDEN: Many of my Republican friends are basically arguing that good news for the economy is bad news -- is bad news for America, as if they are
rooting for fewer jobs and lower wages.
It's all part of this trickle down mentality that says it doesn't matter what's happened in the mainstream, what really matters is what is happening
on Wall Street. Wall Street is doing well, everybody is doing well.
(END VIDEO CLIP)
GIOKOS: Super fascinating, Marc. What do you make of those comments?
STEWART: So Eleni, there is certainly a political aspect to all of this that the President is referring to. Let me talk about the economic argument
though. When you have a strong job market, it indicates that more people are working. When more people are working, more money is exchanging hands,
people feel comfortable, they have a license to spend money, meaning that for some products, that can increase demand at a time when the Federal
Reserve is trying to lower demand and cool off this red hot US economy.
There are indications as we have seen in the past that a strong jobs report is an indication to the Fed that it needs to keep raising interest rates,
because we want the demand to quell. So, if we raise interest rates, items will become more expensive.
So the goal is perhaps we will see more interest rate hikes, perhaps maybe not as severe as in the past, but they are here to stay.
GIOKOS: Marc, great to see you. Thank you very much for breaking that down for us.
Now, while the continued strength of the job market is making investors nervous, there are signs it is cooling off. Job gains have slowed over the
past 12 months, hiring is down significantly after peaking earlier this year, and the latest report on job openings shows that vacancies have also
been trending down.
Nela Richardson is the Chief Economist at payroll management company, ADP, and she joins me now. Nela, as I said, this is sort of a paradox, right?
You've got unemployment coming down, you have vacancies still sitting at around 10 percent. Well, they've declined 10 percent, but at the end of the
day, this is a market where there is demand for more people to enter the market and it is still being seen as a negative because actually,
economically, it's having a negative effect.
How do we reconcile these two counter arguments?
NELA RICHARDSON, CHIEF ECONOMIST, ADP: Yes, it is a very strange labor market, I will agree. Great to be with you.
I think what we're seeing is both the short term dynamics and the longer term structural change. So in the short term, we can't expect that the US
will continue to produce a half a million jobs a month, that's just not sustainable. The reason why we saw such outsized job gains was entirely due
to rebuilding and recapturing jobs lost during the pandemic. Remember, the US lost more than 20 million jobs over the course of six weeks during the
pandemic. That was all the jobs created in the previous 10 years, by and large.
So we had a lot of ground to make up. Now that that is becoming more stable, the monthly job gains will also be more steady, much more in line
with historical trends. That's what we saw this year.
At the same time, firms are still competing for talent. They're still trying to add headcount, and that is where wages are probably one of the
most -- the biggest indicators of where inflation is heading that the Fed is looking at right now.
GIOKOS: Yes, look, wage growth is up 7.8 percent. It has been quite interesting to see when the jobs market is going to stabilize or balance
out. Are we starting to see signs that that will be happening? I think the markets today are reading these latest figures that we have to see more
tightening. It is still very much overheated and we still have way too many jobs chasing too few people that want to enter back into the jobs market
that, of course, we saw the destruction of jobs during the pandemic.
RICHARDSON: Right. I think taken in totality, what the markets are focused on is that unemployment rate. It is three and a half percent.
That's a 50-year low. That's like a historic low. And that signals to the market that the Fed -- that the labor market is still far too tight, that
workers are not returning from the sidelines like was expected by higher wage gains.
And that means the Fed has some more work to do, right? They're going to have to see aggressive and tightening and raising interest rates and that
is what the market is reacting to. Not that this is bad news for the economy, but it signals a path higher for interest rates that are going to
stay higher for longer and that's not such great news for the markets.
[15:10:08]
GIOKOS: I want -- I mean, in terms of -- let's talk realistically here. We heard that, you know, we're starting to see more gains coming through in
leisure and hospitality. Are we heading back to sort of pre-pandemic levels, and I wonder if people feel confident enough, because this is what
Marc Stewart reported and just said, that people feel like they can leave work, they'll probably find something else and all in the midst of the big
probabilities of a possible recession down the line.
RICHARDSON: Yes, and if it is a recession, it will be the weirdest one recessions we've seen, with an unemployment rate at three and a half
percent. I actually think that the American worker is feeling very differently than that painted picture. Real wages are actually down year-
over-year. So, even though we've seen wage gains that are nominal, when you adjust for inflation, that high inflation that we've seen, workers are
losing ground, and that has added to a downbeat sentiment for consumers.
People are worried because they're not seeing their paychecks keep up with their expenditures and that points to some exasperation about the economy
overall.
GIOKOS: Nela, thank you so very much. Great to see you. Have a fantastic weekend.
All right, the world hasn't been this close to Armageddon in 60 years. That's President Biden's grim assessment of Russia's nuclear threat as
Putin's war in Ukraine continues to go against him. That's all coming up after the break.
(COMMERCIAL BREAK)
GIOKOS: Welcome back.
Now, it has been a bumpy couple of days for marijuana stocks. Canopy and Tilray, right now they are deep in the red as some investors take profits
on yesterday's gains of 22 and 30 percent, respectively, as you can see, they're down 23 and 18 percent. The surge came after US President Joe Biden
said he will pardon thousands of people convicted of marijuana possession under Federal law. It is a move that could affect thousands of Americans
and open the path to potentially easing the drug's Federal classification.
(Begin VT)
BIDEN: No one should be in jail just for using or possessing marijuana. It is already legal in many States. Criminal records for marijuana
possession have led to needless barriers to employment, to housing and educational opportunities, and that's before you address the racial
disparities around who suffers the consequences.
(END VIDEO CLIP)
[15:15:11]
GIOKOS: Well, Biden's move could be the first step towards full legalization that would be a major breakthrough for US cannabis companies.
Currently, marijuana is legal in 19 States and Washington, DC, and other 20 States allow it for medical purposes.
Because weed is still illegal at the Federal level, it is tough doing business. Most big banks shun cannabis companies, so to do credit card
networks, and they pay a high tax rate because marijuana is still classified as a Schedule One drug.
Ben Kovler is the CEO of Green Thumb Industries. He joins me now from Chicago.
Ben, great to see you. What did you make of the news that at Federal level, we could see a reclassification or at least decriminalization of marijuana
across the United States?
BEN KOVLER, CEO, GREEN THUMB INDUSTRIES: Sure, yes. Thanks for having me.
Big moment yesterday. We see this as a major change and the beginning of the new era really in US cannabis. The executive branch and the President
of the United States talking about de-scheduling, talking about pardons, and finally talking about getting people out of jail. It is a major moment
for the industry and for the thousands and thousands of people that work in the industry, that have been hurt by the industry and that are doing well
in the industry, all of us celebrate together.
GIOKOS: Yes. I mean, look, we know that marijuana has been decriminalized in many states in the United States. That being said, the fact that you
don't have sort of a blanket approach to the way that marijuana is classified, or that it is allowed to be used has been difficult for
companies. Could you explain what that's been like? Because most companies have had to list in Toronto, for example, not allowed to list in the United
States and also doing business cross states has also been tricky.
KOVLER: Sure. It is a very complex industry, and we think this is a catalyst for clarity and investors like clarity. But the setup is it's
federally illegal, yet various States have a legal cannabis program.
GIOKOS: Yes.
KOVLER: So, there are companies in the United States called MSOs, or Multi State Operators of which Green Thumb is one of the larger operators
in which we operate legally within each State system, but there is no cannabis that crosses state lines.
So, you operate within each system, according to that State system to hire local jobs and pay a lot of taxes. That's going very well. There is over
400,000 US citizens working in the cannabis space and it is generating tax revenue on a State by State basis that's larger than alcohol.
All the while, while the Federal government has said it is illegal. People are in jail. You can't use the credit cards and stock listings happen on
smaller exchanges without access to most investors.
GIOKOS: Yes, and that is really fascinating. I mean, I want you to give me a sense of what kind of law you would like to see come into place,
because it is one thing to decriminalize, allow people to use marijuana recreationally within their own property, for example, versus medical
cannabis use. And of course, it is never going to be black and white. There is going to be a gray area. What do you think the messaging should be?
KOVLER: Yes, I mean, the top line should be nobody should be in jail for nonviolent cannabis offenses whatsoever. So everybody should be out of jail
and the second is massive access. There needs to be new people allowed in the industry. There needs to be access to capital. And companies like Green
Thumb that operate in the United States that sell products that Americans know like RYTHM and Dogwalkers need to be listed on US exchanges, like the
New York Stock Exchange, or the NASDAQ. That will allow American investors and international investors access to these companies, and so will fuel
American capitalism into what should be a seventy to eighty billion dollar space in the United States.
GIOKOS: I want you to give me a sense in terms of when this decriminalization, and by the way, when South Africa where I come from did
this, there was a huge change in perception of usage. Right? It was major stigmatization that occurred.
Do you think that this is going to be the route that we will see in the United States as well?
KOVLER: I think it will be continued momentum. I think, we've hit the tipping point of destigmatizing, yet, it still exists. And so there will be
continued momentum on this really tidal wave of US cannabis. But there is certainly a lot of stereotypes. There's a lot of racial disparity. There's
a lot of lack of access. And so this is continuation of a more normalization of a product that actually brings a lot of people a lot of
wellbeing and that actually helps a lot of people live better.
GIOKOS: All right, Ben, thank you so very much. Great to have you on the show.
KOVLER: Thank you for having me. Thank you
GIOKOS: Ben Kovler there, from Green Thumb Industries.
[15:20:02]
GIOKOS: All right, moving on now. President Biden says the world is facing a once in a generation threat.
(BEGIN VIDEO CLIP)
JOHN F. KENNEDY, FORMER PRESIDENT OF THE UNITED STATES: Nuclear weapons are so destructive and ballistic missiles are so swift that any
substantially increased possibility of their use, or any sudden change in their deployment, may well be regarded as a definite threat to peace.
(END VIDEO CLIP)
GIOKOS: For the first time since 1962's Cuban Missile Crisis, the world is facing the prospect of nuclear Armageddon. That is the assessment of
President Biden on Russia's threats.
Biden told a Democratic fundraiser on Thursday, there is no such thing as the ability to easily use a tactical nuclear weapon and not end up with
Armageddon. US officials say the warning is not based on new evidence that Russia has changed its nuclear posture.
MJ Lee is at the White House for us.
MJ, good to see you.
Are we talking about the probabilities significantly increasing over the past few weeks that Biden would talk about a scenario of Armageddon? I
mean, does this mean that we are worried about the Russians changing their posture on the use of nuclear weapons, which they say they're not bluffing
should they in any way be attacked?
MJ LEE, CNN WHITE HOUSE CORRESPONDENT: Yes, you know, what I can tell you is that this obviously was an incredibly stunning warning that we heard
directly from President Biden, basically saying that he sees a direct threat of a nuclear war for the first time in 60 years. But there is
important context here.
These comments were not planned, they were unscripted. As you noted, he said this at a fundraiser. That is the kind of an environment where he
tends to typically be a little bit more loose, and we know that those comments actually ended up catching some in his own administration by
surprise, because that tone and that message was pretty different from what we've heard from others in the administration, when they've talked about
this issue in the past, when they've tried to really strike a more measured tone.
And what we have been told since is that there really hasn't been any new Intelligence or a new development, something new that the President learned
that prompted him to issue this really grim warning.
And in fact, it really was just according to one official, the President trying to speak frankly, about a general threat that he has seen and has
been on his mind, ever since Russia decided to invade Ukraine.
Now, officially, the position that we are hearing from this administration is that their position hasn't changed since he made these comments last
night, but their basic posture on this issue remains the same. I just think it is worth noting for our audience that this really isn't the first time
that we have seen President Biden strike a different tone or go a little further in his comments on an important issue compared to what we've heard
from others in the administration.
I just think the stakes obviously are incredibly high, because the topic that we're talking about is so serious, we are talking about the threat of
a nuclear war.
GIOKOS: All right, MJ Lee, thank you very much. Good to see you.
Now, a new plot twist in Elon Musk's tangled relationship with Twitter. The trial over his uncertain takeover bid has been delayed. It's seen as a win
for Musk who was set to be deposed.
The Musk and Twitter saga began over six months ago when Musk became the social media giants largest shareholder. The two signed a takeover deal,
and then he tried to back out just two months later. Twitter sued Musk. That is what is now being put on hold.
Musk says his offer is back on the table, but his attorneys say that Twitter won't take yes for an answer.
Paul La Monica is in New York.
Paul, we've been talking about this all week and I fear this is going to continue for some time to come. Tell us about this latest plot twist and it
is actually not coming from Elon Musk, it seems.
PAUL LA MONICA, CNN BUSINESS REPORTER: Yes. I mean, obviously, Eleni, Twitter is interested in getting acquired at $54.20 a share because it is a
big premium to where the stock was before Elon Musk came in with his investment, but Twitter has a fair reason -- a lot of reasons to be
skeptical of what Musk's true intentions are because he called off the deal, they were threatening to go to Court.
He is now saying that he's going to have the original deal back on the table, but the -- you know, they still haven't resolved things enough to
forestall this trial that is set to begin or was set to begin at the end of October.
So, there are still a lot of questions about what Twitter and Elon Musk need to do to negotiate the terms of this deal finalized, get it done and
then avoid having litigation continue, and I don't think this is over yet by any stretch of the imagination. Wall Street agrees because the stock is
not trading at $54.28. It's a little under 50.
[15:25:18]
GIOKOS: Yes. Well, there is a trust deficit here, isn't there? I think from both sides, right? Because Elon was talking about bots and that is why
he wanted more information. And then, you know, Twitter saying, well, we don't trust you. Are you going to pull out again? Are they just hedging
their bets right now?
LA MONICA: Yes, I mean, I think Twitter realizes that they still have in their back pocket that a Judge may force Elon Musk to go through with the
deal if Elon Musk decides yet again, and it is not out of the realm of possibility, because he is quite the material character to decide that,
hey, you know what I don't want to go through with this. I'm still concerned about the bots and fake accounts and other issues.
So, I think Twitter and Elon Musk really have to just sit down and come to an agreement about what Twitter will look like if Elon Musk actually takes
them over, resolve some of these concerns about the bots. I think the bigger issue is going to be what would Elon Musk do with Twitter going
forward to improve the business model because it's going to be hard for him to convince advertisers to come back to the platform full force when he
spent several months bashing Twitter for fake accounts and bots.
So, it's going to be very interesting to see what an Elon Musk-led Twitter if that happens, winds up looking like.
GIOKOS: Very counterproductive, I think. It has been interesting to watch.
Paul La Monica, thank you so much. Twitter, sitting at just below $50.00 a share.
All right, moving on now, and Ukraine's counteroffensive is making new progress. Volodymyr Zelenskyy says his army reclaimed 500 square kilometers
of his territory this week. As Ukraine gains land, Russian soldiers appear to be losing morale. That's coming up next.
(COMMERCIAL BREAK)
[15:30:13]
GIOKOS: Hello. I'm Eleni Giokos. And there's more QUEST MEANS BUSINESS in a moment when Kyiv says it's retaken hundreds of square kilometers of
territory, and it's weighing heavily on Russian morale.
And despite a chaotic summer Conde Nast says travel enthusiasm has never been higher. We'll look at the world's favorite destinations. Before that,
the headlines this hour.
Thailand's king is meeting with the families of the dead after Thursday's massacre at a childcare center. 36 people were killed in the attack in
Northern Thailand, most of them children. Earlier in the day the nation's Prime Minister Prayut Chan-o-cha met with the families of victims.
The U.S. is sanctioning people and entities that says are supporting North Korea's weapons programs. The Treasury Department says the entities based
in Singapore and the Marshall Islands are providing Pyongyang with fuel. North Korea launched a missile over Japan on Tuesday raising tensions in
the region.
The U.S. has announced new export controls to restrict China's ability to get advanced semiconductors. The Biden administration has made a point of
slowing Beijing's tech and military advances.
This year's Nobel Peace Prize was awarded to human rights groups from Ukraine and Russia, as well as the jailed rights activists in Belarus.
Ukraine center for civil liberties has been documenting war crimes committed by Russian troops. The Russian group Memorial was forced to shut
down last year. Ales Bialiatski has been detained without trial since 2020.
Ukraine has retaken more than 500 square kilometers of territory in the last week, according to President Zelenskyy and Russian troops are
suffering heavy losses. Even President Putin's so-called private army is feeling the strain. The Vagner Group, a mercenary force was deployed at the
start of the war intended to secure a quick victory for the Kremlin. But as Melissa Bell found out, the fighting is taking a toll on Wagner's ranks and
morale. Warning some images in this report are graphic.
(BEGIN VIDEOTAPE)
MELISSA BELL, CNN INTERNATIONAL CORRESPONDENT (voice over): The chaos of Ukraine's frontlines through the eyes of a Wagner mercenary.
UNIDENTIFIED MALE (through translator): Legs, guts, arms, boys, it's almost stuff (ph).
BELL (voice-over): A video shared exclusively with CNN by a member of Vladimir Putin so-called private army. One of those that who seen enough.
UNIDENTIFIED MALE (through translation): I'm sorry, bro. I'm sorry.
BELL (voice-over): A far cry from the slick propaganda used by Wagner to entice recruits to the depleted Russian front lines. Long kept in the
shadows by Moscow, the Elite paramilitary group or the musicians, as they call themselves now lionized for their role in Russia's springtime
victories.
Like the surrender of Azovstal or the full of Mariupol. The mercenaries experience initially making all the difference to Moscow, according to this
former Wagner commander.
MARAT GABIDULLIN, FORMER WAGNER MERCENARY (through translation): Without their active assistance, the Russian armed forces would not have been able
to move forward at all.
BELL (voice-over): The Kremlin didn't respond to our requests for comment. But a month-long, CNN investigation has found what the war has cost
Moscow's elite fighting force. It's men, it's confidence and it's allure.
Marat Gabidullin says Wagner fighters are paid $5,000 a month to do the work regular Russian soldiers can't or won't.
GABIDULLIN: There is not enough motivation on the money. Russian piece for the American dollars.
BELL (voice-over): Through their telegram channels and through intercepts, Ukrainian intelligence, keeps a watchful eye.
Moral within Wagner is low, says Andrei Yusof (ph). It wasn't designed to participate in a full-scale war.
GABIDULLIN (through translation): They're dissatisfied with the overall organization of the fighting, the inability to make competent decisions to
organize battles, and of course, this means losses.
BELL (voice-over): This video shared with CNN by Ukraine's Defense Ministry shows a mercenary desperately asking why there is no body armor for them.
[15:35:03]
UNIDENTIFIED MALE (through translation): There are no more flak jackets, no more helmets either.
BELL (voice-over): Of the estimated 5,000, Wagner mercenaries sent to Ukraine 1,500 have been killed, according to intelligence sources in Kyiv.
In Russia, that's meant recruitment drives. From front pages to billboards, the W orchestra is waiting for you, says this one, with a number to call
and no experience needed.
A recruiter telling CNN through WhatsApp that barring thuggery, terrorism and sexual impropriety, all criminal convictions are negotiable.
A man who appears to be the founder of Wagner, Yevgeny Prigozhin, personally offering clemency to prisoners for six months of military
service. The illusive oligarch no longer denying ties to the group that the war in Ukraine has both exposed and transformed.
YURIY BELOUSOV, UKRAINE'S WAR CRIMES PROSECUTOR: It really shows that these guys are in trouble, so they really don't have people. They're ready to
send anyone. There's no criteria for professionalism anymore.
BELL (voice-over): And that could mean more possible war crimes, especially on the retreat. This video shared with CNN by a Wagner soldier appears to
show mercenaries lining up the bodies of dead Ukrainian soldiers. In a chilling conversation, they debate whether to booby trap them or shoot
those who come to retrieve them before realizing that they're out of ammunition.
Melissa Bell, CNN, Kyiv.
(END VIDEOTAPE)
GIOKOS: Climate conscious teams are proving that you're never too young to make a difference. On the new Call to Earth, a 15-year-old Californian
discusses her path to environmental advocacy. That's coming up next.
(COMMERCIAL BREAK)
GIOKOS: Environmental sustainability is a critical issue for communities around the globe and young people are increasingly using the power of their
collective voices to get involved. Today on Call to Earth, we meet a Southern Californian teenager whose eco conscious journey began when she
decided to stop eating meat at the age of six. Now she is leading a global charge to help heal the planet.
(BEGIN VIDEOTAPE)
GENESIS BUTLER, ENVIRONMENTALIST AND ANIMAL RIGHTS ACTIVIST: I've always felt connected to Mother Earth. And I've spent the last eight years
speaking up for the Earth and animals and believe that I'm here today to do all I can to protect this beautiful planet.
UNIDENTIFIED FEMALE: Fifteen-year-old Genesis Butler is a globally recognized youth ambassador, passionate about protecting animals and
educating her peers on how they too can make environmentally conscious and sustainable life choices.
BUTLER: I see how animal rights activists are fighting so hard and environmentalists are speaking about veganism. And more animals are
starting to get left out and freed. But once they're free, like where are they going to go? They can just be wherever, so sanctuaries are super
needed. So I realized the importance of that. So I started Genesis for Animals.
UNIDENTIFIED FEMALE: The aim of Genesis for Animals is to connect plant- based food choices with climate solutions while also raising money to help support animal sanctuaries.
BUTLER: This one is Sid (ph). And Sid was rescued from a fire.
Genesis means a new beginning. And I think that it's something that was really fitting because they come from such terrible places to being loved.
All these pigs are rescued from (INAUDIBLE) now they're here they're living their best life, and they get value ups in their own mind.
I'll do online fundraisers and just like activities like if I speak to classes, or if I do like a speaking event, or mentioned Genesis for
Animals, and that's what helps get me more money is because people hear about things that I'm doing and they want to help donate so that I can
donate to more sanctuaries or they'll give it to my Genesis for Animals organization.
Today, I'm at the Watts-Willowbrook Boys and Girls Club and today I am speaking to some students about why it's so important to eat plant-based
and why I eat plant-based myself.
UNIDENTIFIED MALE: Is really feel good?
BUTLER: Yes, it's really good. There's companies that make meat just like normal meat, but it's just vegan. They use like soy beans or --
UNIDENTIFIED MALE: Soy what?
BUTLER: Yes. Like they make it into meat with a lot of -- like the kids, when you tell them about veganism, they're like, wow, like, I never knew
about this or they don't know about all the different foods you can eat because it's something that's completely new.
When you eat tofu, a lot of people think it tastes really bad. But that's only if you've season it wrong. Outreach events like this are so important
to me because -- and I think it's super important to educate kids about this because we're the ones we're the future.
Thank you.
HEIDI NEL, PRESIDENT, WILD ELEMENTS FOUNDATION: Genesis' activism and advocacy is so impressive. But it's critical because like, young people
aren't going to look to me for the answers, right? Like young people are going to look to Genesis. So to be able to collaborate with girl who's done
so much incredible advocacy is something that we want to continue to do.
UNIDENTIFIED FEMALE: When the pandemic hit, the enterprising young teen saw the global lockdown as an opportunity to connect online with new peers
around the world.
BUTLER: So I started Youth Climate saving that was during quarantine. And we have chapters all over the world, we have I think like 83 now. And we
have them in Africa and Dubai, all over in India and I meet all these youth from all over and we focus on talking about animal agriculture and how it's
harming our environment.
We aren't the leaders of the future. We are today's leader, and we can do this. Thank you.
Set up just thinking, well, our planet is doomed. Like we can't do anything. We're trying to turn that into well, we still can do something
and we can use our voices and we can raise awareness for this as much as we can before it's too late and we can't do anything about it.
(END VIDEOTAPE)
GIOKOS: All right. And be sure to let us know what you're doing to answer the call with the #CalltoEarth.
(COMMERCIAL BREAK)
[15:46:56]
GIOKOS: Welcome back. Now the latest signs of tourism's recovery comes from the United States. It created nearly 90,000 new leisure and hospitality
jobs last month, more than any other sector. Conde Nast Traveler says enthusiasm to visit new places has never been higher. It's all part of the
latest Readers Choice Award survey, which covers everything from top resorts spots to the best airlines.
And when it comes to countries, readers, we're partial to Portugal, Japan, and Thailand. The international airlines that came out on top included
Singapore Airlines, Turkish Airways, and Qatar Airways. Now Erin Florio is the executive editor of Conde Nast Traveler and had a hand in the magazines
future of travel feature. She joins me now from New York. Great to see you. I think I speak for so many people that everyone was so excited to be able
to travel once again after a horrible time during the pandemic.
What did your readers tell you? What did they reveal? I mean, I would say - - I was looking at the top countries, Portugal, Japan, Thailand, they're all sitting at the 90 mark. I go to Greece every year. I know that went to
number six. But I tell you, I think I felt it. I felt the excitement. And I'm sure you've seen it as well from your readers.
ERIN FLORIO, EXECUTIVE EDITOR, CONDE NAST TRAVELER: Yes, definitely. So I mean, what our Readers Choice Awards told us this year is that our readers
are so excited and enthusiastic about traveling again. I mean, we had almost a quarter of a million travelers, you know, sign up and vote in this
year's awards. And you mentioned the countries, I thought the country is really, really indicative of two things.
One that our readers were so excited to get back out there and explore Portugal, took the number one spot. Portugal has been climbing and climbing
for years now in popularity. I'm not surprised at all that it got that number one spot. But surprisingly, Japan also ranked really, really high.
Now, we haven't been able to actually go to Japan in a number of years. So this shows not only that our audience is excited about the places they've
just gone to.
But they're also thinking nostalgically about the places that they want to return to. You know, Japan had to host the Olympics with their borders
closed. So now is actually a fabulous time to go.
GIOKOS: Yes.
FLORIO: The country is going to be reopening in a couple of weeks. And they've got all that great infrastructure that they built for the Olympics
that hasn't been used yet.
GIOKOS: A very good point, right. I think a lot of people were hoping to get to Japan for the Olympics. I was just looking at the countries that
really made it in the top 10. And it seems that European countries seem to dominate once again. Why is that? And I'm seeing it's, you know, apart from
some emerging markets. Are people worried about getting stuck with COVID again? Did you get a sense that, you know, where travelers are more prone
to goes where they feel safest?
FLORIO: Well, I think some of it is practical. I mean, Europe opened up a lot quicker than the rest of the world. And, you know, geographically it is
just that much closer to at least the East Coast of the United States. So it made sense for travelers to return there. I think you're right, I think
COVID definitely encouraged travelers to travel within what they define as their comfort zone.
[15:50:03]
And it also encouraged travelers to go to places where they felt -- they felt there was a healthy amount of sort of infrastructure should something
happen while they were traveling. And the ability to sort of, you know, get out and change your plans really, really quickly. And I think you're
provided that level of comfort. Plus, you know, you have to -- it can't -- it can't go without saying that Europe is just, you know, a fabulous
continent.
And when you've been locked out of it for a year, it's probably the place you aren't going to rush back to, you're going to rush back to those places
like Greece, like Italy, those places that you've probably had visited many times before.
GIOKOS: Yes. I mean, I have to say I was a bit disappointed that we didn't see any African countries in the -- in the top spots. But I also want to
talk about airlines. And I want to talk about flights costs. I tell you, I'm just absolutely shocked at what we've been paying over the past six
months, what is going on? And just be honest with me, is it going to get even worse?
FLORIO: Yes. Well, I can't predict the future. And I really wish that I could, I think we all can admit that, you know, the cost of airline travel
has been more than we would have hoped for especially coming out of the pandemic. But you know, there are a lot of factors that are going into
that. Not just that, you know, a lot of the airlines scaled down their flights during the pandemic, and they're still yet to relaunch some of
those routes.
But of course, the cost of fuels, et cetera, has really factored in. I'm optimistic it's going to go down. I keep looking. I think a lot of people
actively look at the fares and keep alerts on the fares for the places that you want to be going to within the next few months. And when you see
something that feels reasonable, book it. You know, you might -- you might lock in a really good deal.
GIOKOS: Yes. Very quickly. In terms of space travel, because I'm, you know, the future of travel. You've written about this as a probability, but I'm
assuming that it's just for the rich, right? It's for people with really deep, deep pockets.
FLORIO: Well, I certainly can't pretend that at the moment, it's not for the one percent of the one percent. I mean, both, you know, Virgin Galactic
and Blue Origin did fly commercial flights this year. And we know who got on those planes. We know who got on those ships, right? But the good news
is, and I think this is something to watch, is that there's lots of indications that in the next decade or two, space travel is going to become
a little bit more democratized.
We have a great interview with Sir Richard Branson, talking about the future of travel on CNtraveler.com. And even he sort of suggests that, you
know, it isn't outside the realm of possibility that a company like Boeing might get involved within the next 20 years. And if Boeing's involved, that
means it's really opening up to a lot more people. So stay tuned.
GIOKOS: OK. I'm going to stick to going to beaches that are close by maybe the next generation, I don't know. But Erin, really good to see. Thank you
so much for your time.
All right, I want to take a final look at what markets are doing to end this week. And unfortunately, it's not good news. U.S. stocks are set to
close sharply lower down over two percent. That's a 632-point drop. Today's jobs report showed the U.S. labor market remains strong. And that is a
problem because it's fueling concerns of another large interest rates rise from the Fed.
Today's selling is a sharp turnaround from the two-day rally earlier this week. And the Dow picked up 1500 points on Monday. And Tuesday, a little
bit of optimism there. It's now given a lot of that back and it's poised to close back into bear market territory. Matt Egan is in New York for us.
Matt, I have to say that October is notoriously known to sort of be a bad month. We were a little bit excited beginning of the week. But it's all
turned pear shaped.
MATT EGAN, CNN REPORTER: Yes. It really has -- I mean, markets did start this week, this month, this quarter with a bang. And a lot of that optimism
was driven by hopes and maybe some evidence that the jobs market, the economy was slowing enough to convince the Federal Reserve to stop slamming
the brakes on the economy. And we have seen that optimism among investors go away because of today's jobs report.
I mean, this report showed the U.S. economy added 263,000 jobs last month and that does show a cooling off. But the jobs market remains really
uncomfortably hot right now. And investors are saying that really there's nothing about today's report that is going to convince the Fed to take its
foot off the brakes. And so the concern is that the Fed is going to overdo it especially because monetary policy works with a lag.
It takes months, maybe six to nine months until the full impact of the rate hikes actually hit the economy. And so, the risk is that the Fed won't know
that it's gone too far until it's too late.
GIOKOS: It's a really good point, right? Proactive versus reactive approaches. Matt, very quickly what are we expecting in terms of earnings?
What are we expecting in terms of data points that are going to move the markets in the next week?
[15:55:10]
EGAN: Well, two huge inflation gauges. Next week, they will help to show whether or not the Feds inflation medicine is actually working. I think
clearly, patience is running thin both on Main Street and on Wall Street.
GIOKOS: Yes. Matt Egan, always good to see you. Thank you so very much. All right. We have just moments away from the end of trade on Wall Street.
We'll have the final numbers and the closing bell right after this. Stay with us.
(COMMERCIAL BREAK)
GIOKOS: All right. There are moments to go before we close trade on Wall Street for the week. Investors didn't really like today's U.S. jobs report.
As you can see we're down just over two percent. Markets are taking a dive to the end of this week. And as you can see we're just losing 620 points as
we hit to the closing bell. The optimism of Monday and Tuesday has been whisked away by three straight days of losses.
Taking a closer look now at the Dow components, Dow is down as you can see S&P also taking a knock and so too is the NASDAQ and that is the heat map
as you can see. It is mostly in the red. Half of the stocks are down two percent or more. Tech stocks near the bottom with Microsoft and Intel both
down about five percent.
[16:00:04]
Loss is all around to end a week that started with (INAUDIBLE) All right. And that's it for QUEST MEANS BUSINESS. I'm Eleni Giokos in Dubai. The
closing bell is ringing on Wall street. "THE LEAD WITH JAKE TAPPER" starts right now. Take it.
END
