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Quest Means Business
Alphabet, Microsoft Shares Crushed On Weak Earnings; Sunak: Economic Responsibility At Heart Of My Mission; Ukraine Preparing Counteroffensive To Retake Kherson; U.S. Stocks Higher For Third Straight Day; Former Barclays CEO "Already In A Recession"; Chinese Yuan At Lowest Since 2007; Standard Chartered CEO Says "Always Will Be Black Swan Events"; Saudi Ambassador On Ukraine War, Oil; U.S. Imposes New Sanctions On Iran Over Violent Crackdown On Protests; Nigerians Forced To Use Floodwater Despite Cholera Risk; Quest's World Of Wonder: Singapore; Dash To The Bell. Aired 3-4p ET
Aired October 26, 2022 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:23]
ALISON KOSIK, CNN BUSINESS HOST: A mixed day on Wall Street. The NASDAQ is leading the way down with losses at almost two percent. The Dow is
trying to hold on to gains though.
Those are the markets and these are the main events: Poor tech earnings spur wider fears about the state of the economy.
The new UK Prime Minister delays a closely watched budget.
And devastating floods leave Nigerians with no access to safe drinking water.
Live from New York. It is Wednesday, October 26th. I'm Alison Kosik, in for Richard Quest, and this is QUEST MEANS BUSINESS.
Good evening.
Big tech stocks tumbled today as weak earnings fan fears of a global slowdown. The tech heavy NASDAQ and the S&P 500 were both dragged down. The
Dow has been less affected though.
Shares of Alphabet are down more than eight percent after a third quarter miss on weak ad sales. Microsoft is down about seven percent on
disappointing Cloud revenue and weak guidance. Their results, still concerns about the tech sector's ability to withstand high inflation and
rising rates.
Investors will soon have a better picture, Meta releasing its third quarter results after the closing bell today. Amazon and Apple report tomorrow.
I want to bring in Rahel Solomon. She joins us live now from New York.
Rahel, great to see you.
So, let's talk about these earnings. Microsoft reporting its worst quarter in two years; Alphabet missing estimates in revenue even falling at YouTube
of all things. I'm curious what your read is on their results and what you think that these results have to say about the broader economy?
RAHEL SOLOMON, CNN BUSINESS CORRESPONDENT: Well, it's interesting, Alison, because we haven't seen ad revenue fall for YouTube, as you pointed
out, since Alphabet actually started breaking that apart. So that was certainly something that raised a lot of eyebrows. And I think you can view
these results a few different ways.
On the one sense, it signals that it will remain a tough environment for the tech players, right? I mean, we're going to hear from Meta after the
bell in a few hours. And you can see Microsoft, Alphabet still solidly lower. But we're also going to hear from some of the big heavyweights
tomorrow, like Apple and Amazon.
And so there are a lot of sort of ways you can read this just in terms of what this means for the tech players, but also what this means for the
broader economy.
And Alison, we tend to think of advertising and marketing budgets, in times of economic uncertainty, in times of economic anxiety. That's one of the
first places you start to see companies pull back, that's one of the first places you start to see belt tightening.
So, it certainly doesn't make you feel great when you hear a name like Alphabet saying that it is seeing digital ad pull back on areas like for
things like mortgages and loans.
And of course, Alison, you know, what's happening in the US housing market where we have seen housing sales really fall quite significantly because of
higher interest rates.
So, at a time when it felt like maybe it was more isolated to the housing industry, you're starting to see the spillover effect, right? You're
starting to hear digital ad players like Alphabet say, "Oh, but by the way, it's impacting us, too."
And yet, we've also got corporate earnings this week that were actually solidly positive from some of the consumer names. So names like Visa, Kraft
Heinz, GM, Coca-Cola, UPS, they all came in actually much stronger than expected.
And so Alison, I feel like it's one of those things where any given day you get one data point that signals trouble is just right ahead, and then you
get another data point that suggests well, maybe things are actually fine for now.
KOSIK: Oh, I hear you. Plenty of conflicting signals we are getting.
So you mentioned Meta reporting after the bell today. You look at its shares, they are down 60 percent for the year and I know investors are
concerned about Mark Zuckerberg's bet on the Metaverse. What are you hearing in this respect?
SOLOMON: Well, some investors actually -- Meta got a note this week from an investor, a prominent investor suggesting maybe you should stop spending
so much on the Metaverse, right? I mean, cap it out of -- I think it was about $5 billion per year in that area. So investors are already starting
to feel like sort of scale back on some of these loftier ambitions.
That said, Meta still does have quite a bit of cash. We are expecting however, to hear of slowing subscriber growth, slowing growth rather for
users. We are presumably expecting to see slower digital ad spend for Meta. I mean, we heard that from Alphabet, right? So presumably, we will hear the
same from Facebook.
So, it is one of those things where even though Meta has the cash now, to your point, Alison, you're already starting to hear prominent investors
say, be careful, be cautious, be conservative, and maybe not spend too much on the Metaverse even though that is of course, a huge priority for Mark
Zuckerberg.
[15:05:04]
KOSIK: All right, Rahel Solomon, thanks.
In a survey out this week, more than half of business economists who were polled said the United States will likely be in a recession within the next
12 months, while more than one in 10 say we're already in one.
Those are the latest findings from the National Association for Business Economics with respondents citing high interest rates as the greatest risk
for companies.
I want to bring in Julia Coronado. She is the President of the National Association for Business Economics, and she joins us from Austin, Texas.
Great to have you with us.
JULIA CORONADO, PRESIDENT, NATIONAL ASSOCIATION FOR BUSINESS ECONOMICS: My pleasure.
So I do want to focus on that one point from the survey that more than five out of 10 panelists in the NBER study, in this survey, indicate that the US
economy has a more than even likelihood of entering a recession in the next 12 months. Eleven percent believe the US economy is already in a recession.
Where do you stand on this? First of all, do you think that the US is currently in a recession?
CORONADO: Definitely not. I don't think a recession is characterized by a three-and-a-half percent unemployment rate, and you can actually see that
tension in the survey details.
So you do see companies are reporting that their sales growth is slowing. Most companies still have either stable or rising sales, but you've got a
much greater fraction of companies reporting declining sales. And at the same time, you can still see that labor market resiliency. They are still
hiring, they're still giving out wage gains.
And as long as that's true, consumers are going to stay on track. They might slow their spending, they might become more price sensitive, but you
know, it is a very strong self-reinforcing dynamic when consumers are getting jobs and income.
So over the next 12 months is a long horizon and I think that if we go into a recession, it would be that gradual deterioration in the willingness to
hire and pay new employees that would eat into the consumer. What we've seen is consumer resiliency so far.
KOSIK: You know, a good bit of the blame for a recession is being placed squarely on the Fed, which is aggressively raising rates. But, you know,
you look at the Fed Minutes, the most recent one, they show some cracks, and even some whispers that the Fed may actually pull back a bit despite
data showing that the hikes so far haven't yet been shown to be effective, meaning the Fed may slow down the speed and maybe the size of these rate
hikes. Do you agree with that sentiment?
CORONADO: Yes, so even the most hawkish member of the FOMC, everybody on the Fed Board is on the same page with you raise rates to a certain level,
and then you stop and you hold them there and let that restraint take its effect on the economy.
There are lags from when you tighten policy to when it has its full effect on the economy. We don't know exactly how long they are, but we know that
the economy has not yet absorbed the full impact of Fed tightening.
And so if you keep going, you're almost guaranteeing a recession, and of course, that's a source of anxiety for respondents to our survey, given how
fast the Fed has been going.
So, I do think a slowdown in the pace of tightening is quite possible, not at the November meeting coming up, but maybe after that, because rates will
already be high and we are starting to see the leading indicators of a cooldown.
You cited the housing market, it is experiencing a very rapid contraction that will spill into broader areas, furniture spending, home improvement,
willingness to spend, as there is a negative wealth effect from both declining stock values and declining home values. All of that takes some
time to feed into consumer psychology and spending plans.
So, the Fed, you know will likely stop. It has signaled its plans whether a little bit higher or a little bit lower that it's going to hike through Q1
and then probably hold there for a while, and we've seen a few other indications from financial markets that the Fed is getting to a restrictive
stance. Markets are the leading indicator and we're seeing in the earnings reports you were just discussing, some signs of cooling, some signs of
pressure, that again, are a reflection that policy is having its intended effect and inflation, even though we haven't seen the decisive evidence we
would like that it is cooling, is very likely to cool over the next year.
KOSIK: Yes, some think that that cooling has already happened, that inflation possibly peaked in June, but there is the stickiness to contend
with.
I'm curious about your thoughts about where inflation will wind up landing. I mean, do you see two percent even being a realistic expectation anymore?
CORONADO: Certainly it's a reasonable expectation, the question is horizon: How quickly can you get there? And when we do have this kind of
underlying broad-based wage and price dynamics, they have stabilized even at the broad level, but they're still high, and the Fed would like to bring
that down.
[15:10:13]
CORONADO: Well, if we're out of the inflation emergency, that is that period of spiking, rising inflation of potentially unanchored inflation
expectations, and we're in the zone of a much cooler economy, some signs of cooling price pressures. Again, the Fed can maybe exercise a little bit
more patience in letting that play out.
There was a term we used to use in the 90s called opportunistic disinflation, which is you use -- you let that inflation come down over
time, but you don't necessarily drive the economy into a recession to get to two percent quickly, because that could be counterproductive to its
other mandate, which is maximum employment.
So there is going to be harder decisions on how to balance those risks going forward. Again, the next meeting is sort of a done deal, but December
and into 2023, balancing those pressures is going to be a harder judgement call.
KOSIK: All right, Julia Coronado with the NBER, pleasure speaking with you today. Thank you.
CORONADO: My pleasure.
KOSIK: European leaders have been warning for months of a difficult and expensive winter ahead. Now, their preparations are paying off with lower
natural gas prices. That's next on QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
KOSIK: Welcome back.
I'm Alison Kosik.
The UK's new Prime Minister laid out his economic goals in Parliament this morning.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Prime Minister --
(CROWD all in agreement.)
(END VIDEO CLIP)
KOSIK: Rishi Sunak was met with cheers at his first Prime Minister's Questions. He told MPs that his government will be guided by economic
stability and responsibility, and he warned that tough times lie ahead.
(BEGIN VIDEO CLIP)
RISHI SUNAK (British Prime Minister): We will have to take difficult decisions to restore economic stability and confidence.
I'm the first to admit that mistakes were made and that's the reason I'm standing here. Leadership is not selling fairy tales. It is confronting
challenges and that is the leadership the British people will get from this government.
(END VIDEO CLIP)
KOSIK: The government's fiscal plan has now been delayed until November 17th. It was due to come out Monday before the Bank of England's next
meeting.
Bianca Nobilo has more on Sunak's reception in the House of Commons.
[15:15:09]
(BEGIN VIDEOTAPE)
BIANCA NOBILO, CNN INTERNATIONAL CORRESPONDENT: Rishi Sunak delivered for the Conservative Party at his first Prime Minister's questions, his first
since becoming leader of the Conservative Party and Britain's Prime Minister on Tuesday.
He had only 24 hours to prepare to face the House of Commons and the Conservative benches behind him are full of cheers and support for the new
Prime Minister, as energetic and boisterous as I've seen them in a number of years.
Keir Starmer, the leader of the Labour Party and Ian Blackford, the leader of the Scottish National Party both sincerely celebrated the fact that
Britain's new Prime Minister is of Asian heritage.
Starmer didn't waste too much time on celebration and pleasantries though before he started asking hard questions. To begin with, revolving around
Sunak's reappointment of Suella Braverman as Home Secretary. So far his most controversial appointment since becoming Prime Minister.
That's because Brotherman was fired as Home Secretary six days before her reappointment. She was sacked by Liz Truss for a security breach. So there
have been questions raised and eyebrows by the Labour Party and other opposition parties as to whether or not there was some kind of deal made
behind the scenes between Sunak and Braverman.
But in terms of giving his party more confidence and more enthusiasm for the Prime Minister and the direction of the party, Sunak seems to have
delivered.
It was interesting to see him go up against Keir Starmer, as both politicians have some similarities in terms of their communication style,
known for being serious, having a good grasp of the brief, and detail.
Watching them go toe to toe, it seems that Sunak may be able to get his wish, which he said at the beginning of this Prime Minister's Questions,
which was to have serious grown up exchanges with the leader of the opposition.
Bianca Nobilo, CNN, London.
(END VIDEOTAPE)
KOSIK: The Prime Minister spoke to Parliament mostly about the UK economy, but he has also touched upon Britain's support for Ukraine and to
make sure the terrible war is seen through to its successful conclusion.
That promise comes as Ukraine prepares a counteroffensive in the Kherson region, which Russia seized in the early days of the war.
Eight months of fighting has taken a heavy toll on Ukraine.
Our Julia Chatterley spoke with the head of Ukraine's largest private energy company about the challenges it is facing.
(BEGIN VIDEO CLIP)
MAKSYM TIMCHENKO, CEO, DTEK ENERGY GROUP: Now, this war transformed into completely different form. It is physical destruction of our critical
infrastructure.
Since 10th of October, more missiles and drones were used to attack critical infrastructure than military facilities.
This is the face of Russia, so they create humanitarian disaster in the middle of Europe.
(END VIDEO CLIP)
KOSIK: Europeans could soon get a small break in skyrocketing energy costs. Natural gas prices in Europe have fallen below 100 euros per
megawatt hour for the first time since Russia slashed its supplies this summer. Prices have been high for several months.
The drop comes after European governments succeeded in building up sizeable stockpiles of fuel while urging homes and businesses to cut consumption and
searching for new gas supplies.
Anna Stewart joins us now from London.
This was a huge turn of events for Europe. Why this price drop?
ANNA STEWART, CNN REPORTER: It is quite extraordinary, isn't it? Part of this is storage facilities right now in Europe are over 90 percent full,
which means the EU has actually smashed its plans. It wanted to see these storage facilities at 80 percent full by November. So, already really far
beyond that.
It's down to hard work in terms of procuring LNG from elsewhere -- Qatar, the USA -- a lot of money, it has paid a very high price to do so. And also
some luck, Alison. You know, it's a really mild October at the moment, people aren't switching on heating in their homes across the continent yet,
and also reduced demand because the EU has made it very clear that people need to do that now, certain measures in different Member States to do sort
of their end.
The other issue when we look at storage, though, is it really reveals Europe's limits, and I think that's what we're seeing really in the price
in terms of near-term contracts and that is because, lots of LNG vessels are just floating off the coast of Europe, actually unable at this stage to
offload.
There is a lack of LNG infrastructure. There is a lack of storage facilities for it to be able to maximize beyond this point. So, that is why
we are seeing that gas price where it is now. So, it is good news, but in quite a limited way.
KOSIK: Yes, and you're speaking about a limited way. So, if we look ahead, and we think about this sort of energy crisis averted if that's even
true, but if you look ahead, do gas futures -- do prices -- do they look set to stay at this level?
STEWART: You can see them rise December, January, February. They would certainly rise as we go forward, and also we've got to hope at this stage,
this is something I speak to analysts, which always shocks me is that people are really hoping for a mild winter. When you start to hope and
place bets on the weather, you know you're in trouble.
[15:20:06]
STEWART: Looking further ahead, we will approach next year in a completely different stage to this year, because EU relied on Russia for 40
percent of its gas needs, it'll go into next year, perhaps with that nearly at zero.
Storage facilities will likely be entirely depleted, and it will be worse depending on how cold the winter is. So, then you have to look further
afield.
So next winter actually could be a much worse situation for Europe than this one and you have to also think beyond what we're seeing now in terms
of procuring more LNG, the investment that is needed in technology like hydrogen infrastructure, more LNG terminals, more regasification
facilities, more storage facilities would be really useful.
And also policy, and this is something the EU is working really hard on right now trying to work out how they can reduce prices for the entire
bloc, whether that is through joint procurement, whether that is through capping gas prices, and how you do that or whether maybe EU-wide subsidies,
particularly if gas is powering electricity as opposed to heating.
So lots is being discussed at this moment, but there is certainly an awareness when you speak to experts that they may avert crisis this winter,
but they may not next -- Alison.
KOSIK: Right, but hopefully they'll use the time to prep and get in order for the next winter season.
Anna Stewart, great to see you.
The energy crisis triggered by the war in Ukraine has many countries looking for fossil fuel alternatives. Canada is among those looking to step
up its use of nuclear energy. The country says it will dedicate more than $700 million to developing a new small scale nuclear reactor.
Nuclear power doesn't produce greenhouse gas emissions, but it requires uranium and a lot of that uranium comes from Russia and Central Asia.
Amir Adnani is the CEO of the Uranium Energy Corporation and he joins us now from Vancouver.
Thanks for being here.
AMIR ADNANI, CEO, URANIUM ENERGY CORPORATION: It's my pleasure to be here. Thank you.
KOSIK: So I'm going to get to the broader story of uranium in just a moment. But first, a sort of a company specific question for you, because
not all -- I have noticed not all of your plants and your projects are actually in production, though you have permits in place. Talk us through
what the holdup is.
ADNANI: The holdup not just for our company, but for most Western companies over the last decade has been a combination of very fierce
competition from state-owned companies of Russia and China in the nuclear fuel and uranium industry, and also depressed uranium prices that we
experienced that over the same timeframe.
Almost 80 percent of mine development shifted away from Western supplies towards countries like Kazakhstan, Russia, Uzbekistan, or parts of Africa.
And so, our company definitely is in a leadership position today, in terms of having some of the largest ready to go into production resources and
infrastructure in the United States and Canada.
We've completed over half a billion dollars of investments in acquiring new projects, again, in the West, and now more than ever, there is really a
need to diversify away from Russian state on supply chains of nuclear fuel of uranium, and this is really the movement afoot here that we're noticing.
Again, most uranium mines in the West were either shut down over the last decade, or simply, no new development took place. So this is the position
we find ourselves in, right, where all of a sudden our energy supply chains are being stressed due to geopolitical uncertainty.
And there is a really important need to have to ramp up quickly the supplies of uranium and to your point, and you've pointed out very
correctly, there is incredible demand for small modular reactors to be built. But again, how can we keep developing these new amazing technologies
to meet our energy needs, if we don't have the fuel the uranium to actually run them and we have to keep depending on Russia? This is not an acceptable
position to be in.
KOSIK: So as more and more countries look to nuclear power to meet their energy security and climate needs, how is your company positioning for this
trend?
ADNANI: We do notice that and we believe that the trend certainly is to rely on nuclear energy to meet decarbonization, electrification, and also
energy security needs for various -- for all nations.
I mean, look, even China is planning to build 150 reactors in the next 15 years. Our country -- our company really believes that Western countries
will need to diversify away from Russian supplies, and that includes supplies coming from former Soviet Union States. And what we've done, as
I've pointed out, is to really take the view that in the United States and Canada, you have States, you have jurisdictions like Texas, Wyoming,
Saskatchewan, that are mining friendly, and welcome the development of uranium mines and all have the geologic settings and potential for it.
[15:25:02]
ADNANI: So we have completed a number of transactions over the last year and we have an 18-year history where during that period, we prepared for
production to lead Western production hire.
As I mentioned, we've completed over a half a billion dollars of investments and acquisitions and building a portfolio in Canada, in
Saskatchewan, where you have some of the highest grade uranium deposits in the world. Saskatchewan would be like the Persian Gulf of the oil and gas
industry. Very rich, very big deposits, but also in the United States, where the US currently produces no uranium and is the world's largest
consumer of uranium for power and electricity generation.
KOSIK: Do you see the US changing that in any way?
ADNANI: Totally. I mean, we are -- one of the members of my team today, and over the course of this week has been in Washington has, in fact
visited the White House. We're talking to individuals and leadership at the Department of Energy.
The US more than ever recognizes that it is a vulnerability, a national security vulnerability to be so dependent on Russia. There is a bill in the
US Senate to potentially ban Russian uranium imports in the US and the US needs uranium again, more than any other country on the planet for power
generation and to support the development of small modular reactors.
The US plans to build 300 small modular reactors in the next 25 years. That is going to double its energy capacity from nuclear power during that
timeframe.
How can that happen again without having domestic and very robust supply sources, so the US establishing a strategic uranium reserves for the first
time since the 1950s, to purchase and stockpile uranium for the government accounts, and this is all on a bipartisan basis.
We have -- we are seeing bipartisan support for nuclear energy for developing domestic nuclear fuel capabilities. That's uranium. That's
conversion enrichment. And again, this is quite historic because I can tell you, as an entrepreneur, I founded my company 18 years ago. I have never
seen in my 18 years this much support from Washington for nuclear energy on a bipartisan basis.
KOSIK: All right, Amir. Amir Adnani, the CEO of the Uranium Energy Corporation. Thanks for being here.
ADNANI: Thank you.
KOSIK: Thousands turned out to mark 40 days since the death of a young Iranian woman. We are going to show you how the unrest is spreading to new
groups across Iran.
(COMMERCIAL BREAK)
[15:30:00]
(MUSIC PLAYING)
KOSIK: In Iran, a terrorist attack on a shrine has killed at least 15 people, according to a local official. It happened just hours ago in the
southern city of Shiraz.
On state news, eyewitnesses said screams were heard in the women's section of the shrine before a man with a collision pop (ph) fired
indiscriminately. Iranian media say there were three gunman involved and two are in custody. The reports say all three are foreign nationals. There
is no word yet on a motive.
Elsewhere in Iran, thousands turned out to mark 40 days since the death of Mahsa Amini. She is the 22-year-old woman who died after being detained by
police. The gatherings turned into anti government protests, resulting in clashes between mourners and the police. Nada Bashir looks at how Amini's
death has galvanized a movement.
(BEGIN VIDEOTAPE)
NADA BASHIR, CNN CORRESPONDENT (voice-over): The final resting place of Mahsa Amini, a place of mourning and, now, of protest.
Amini's name has become synonymous with a movement that is posing the biggest threat to the Iranian regime in years, sparked in the wake of the
22-year old's death while in the custody of Iran's notorious morality police.
Detained for allegedly contravening the country's strict dress code. But now, as the Iranian people commemorate 40 days since Amini's death, a
significant mark of both mourning and remembrance, the movement has grown into something far more wide reaching than its initial call for women's
rights.
FIRUZAH MAHMOUDI, UNITED FOR IRAN: It was a protest that quickly turned into a movement and an uprising and some, of course, say that there is
definitely components of beginning parts of a revolution.
BASHIR: And how important is Mahsa Amini's legacy in really driving forward this protest movement?
MAHMOUDI: Jina's death was a spark that led to this massive fire, right that we are seeing across the country. That initial protest was not even
about hijab. It was of course about, that but that is much more than that.
It's about body autonomy. It's about gender equality. It's about basic rights, of leading the life we want and not being oppressed, half of the
population being oppressed by the government.
BASHIR (voice-over): Amini's name is now remembered alongside a growing list of women who've lost their lives at the hands of Iran's security
forces. The authorities deny responsibility, disregarding the mounting evidence of the regime's brutal and deadly crackdown on protesters.
TARA SEPEHRI FAR, HUMAN RIGHTS WATCH: We have use of air paintball guns, shotguns with metal or plastic pellets and also instances of use of assault
weapons, assault rifles, clashing or style weapons or even handguns that have been documented.
BASHIR (voice-over): This, in addition to the mass detention of hundreds, if not thousands of protesters.
Six weeks on, however, and the movement isn't losing steam with protests gripping the country's universities and high schools and historic action by
teachers, business owners, factory workers, even oil refinery workers, the backbone of Iran's economy.
The call for reform and for regime change is only growing louder.
(END VIDEOTAPE)
KOSIK: In Nigeria, devastating floods have killed hundreds of people and have left millions more in need of emergency aid. Great swaths of the
country have been affected. And many people have no choice but to drink and wash in floodwater, despite the high risk of infections. Larry Madowo has
more from one of the flood hit areas.
(BEGIN VIDEOTAPE)
LARRY MADOWO, CNN CORRESPONDENT (voice-over): Communities still submerged nearly a month after the flooding began with no end in sight. Boats have
become the only way to get around much of Bayelsa States in southern Nigeria. The streets have turned to rivers, driving entire communities away
from their homes.
Mama Obi (ph) takes us to what is left over her home. The water is still waist high.
MADOWO (voice-over): "We have really suffered," she says, "tell the government to help us."
[15:35:00]
MADOWO: Everything you own is here under the water and this your house.
UNIDENTIFIED MALE: Yes, lots. So everything.
MADOWO: Some are living rough on the streets, washing with this water, cooking with it and bathing in it. Even though people's homes and
businesses and livelihoods are already submerged, it's still raining and there's more expected.
The Nigerian government is warning this could go on through November. So even more of this.
This is Nigeria's worst flooding in a decade. Aniso Handy has remained in his house through it all.
ANISO HANDY, FLOOD VICTIM: Nigerians are used to manage, if not would've all died. We have not seen a situation where people are not cared for. But
Nigerians care for themselves. We are just like infants that have no father, no mother.
MADOWO: The feeling of abandonment runs deep here. Victims are disappointed with the Nigerian government's response which hasn't declared
the flood and national emergency.
UNIDENTIFIED MALE: We're not comfortable and now they fear for (INAUDIBLE) sick.
MADOWO: We're next to the local cemetery and residents have reported seeing bodies floating here in this water. This flood has displaced not
just the living, also the dead. The floods have affected 33 of Nigeria's 36 states, partly due to well above average rainfall.
Bayelsa is among those cut off from the nation with major highways underwater.
The situation has been exacerbated by poor drainage infrastructure and an overflowing dam in neighboring Cameroon but with a warmer climate causing
more intense rainfall authorities have also blamed it on climate change. Angering some Nigerians.
In this community though, there are more short-term consequences. So you are worried about the children mostly.
NDIA OKAZI, FLOOD VICTIM: Yes. My children they're not going to school again. Now when (INAUDIBLE) me.
MADOWO: It's a tough life to navigate for humans and animals alike. But life must go on -- Larry Madowo, CNN, Nigeria.
(END VIDEOTAPE)
KOSIK: Heathrow Airport has warned it will be a number of years before travel demand returns to pre pandemic levels. The bosses of Europe's
busiest airport blaming cost of living pressures, COVID and Russia's invasion of Ukraine put an unexpected 25 percent drop in travelers this
year compared to 2019.
In Turkiye, however, the tourism industry is showing some signs of recovery. One major project in Istanbul called Galataport is helping draw
visitors to the city. Richard Quest toured the new cruise terminal with its chief marketing officer, Mehmet Bali.
(BEGIN VIDEOTAPE)
MEHMET BALI, CHIEF MARKETING OFFICER, GALATAPORT: It is likely a mega project. It's 1.7 billion dollar investment which is carried out by those
who are former holding. It has of course the organic beauties. It has the heritage, it has the history of keraka (ph). It has the Bosphorus views,
the sea, the historical peninsular views.
It has shopping and gastronomy, restaurants; we have around 50 to 60 restaurants. And of course we have arts and culture.
RICHARD QUEST, CNN HOST: And then you have this.
BALI: Of course, the cruise port. This pier that we are on that has been built in 1895. So this has been a port for a long time. So now it is a more
modern state at cruise port. What we did here is the most interesting part of Galataport.
For example, is that the terminal is under the ground. The reason for that is a cruise port means a temporary customs area.
QUEST: So these giant, very solid -- these go up and down to create the sterile area for the cruise port.
BALI: Exactly. We have 176 now of those hydraulic units. They are individually controlled. So when the ship comes, for example, 300 meters
long in length, we opened around 320 meters length of hatches and we put the side panels and it becomes, as you said, a sterile, temporary customs
area.
QUEST: But how do you entice people to come?
Because obviously Istanbul's over there, the main tourist areas.
BALI: The thing is, first of all, this is in the heart of Istanbul. Secondly, this is an area that was underutilized for a couple of decades.
These places were old warehouses. This place was closed because it was a customs area.
Once it opens, people of Istanbul embraced it. This place has been here for 1,000 years. You use by the people of Istanbul with different cultures,
different nationalities, different religions.
QUEST: Let's take a walk. Let's take a look at what's further inside.
[15:40:00]
QUEST: How do you make sure it's local and not just a cacophony of Western brands?
Isn't that a challenge, to give people a reason?
This has got locals.
BALI: It is a mixture actually because, first of all, it is open to everyone and it's accessible to everyone. Galataport Istanbul's main goal
is to be accessible to everyone. In terms of food and shopping and arts and culture, that's why we invest a lot in art in public spaces.
We usually never do ticketed events so everyone can come and enjoy the music and everything.
QUEST: So what happens here?
BALI: This is actually the world's first underground cruise terminal.
QUEST: Wow.
BALI: And this is the bus parking area actually.
QUEST: Where do the passengers come get in here, from on buses?
BALI: They can either come by taxi, come by bus or they can walk down as we did from Galataport Istanbul's main entrance. That is the check-in
counters for the two ships that we have at port right now.
And they drop their luggage there. They check in. They go one flight up to -- for the passport counter and they start boarding. And this port actually
is capable of accommodating three ships and 15,000 passengers in one day.
(END VIDEOTAPE)
KOSIK: And that's QUEST MEANS BUSINESS. I'm Alison Kosik. Follow me on Instagram and Twitter at Alison Kosik, I will be back at the top of the
hour as we make a dash for the closing bell. Up next, "QUEST'S WORLD OF WONDER."
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(COMMERCIAL BREAK)
[15:45:00]
(BEGIN VIDEOTAPE)
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QUEST (voice-over): There is something deliciously familiar about coming back to Singapore. This is a city whose reputation precedes any arrival.
After two years of COVID closure, Singapore is now reopening itself to the world. It is doing so in typical fashion with vigor and vim.
QUEST: Over the years, I've been coming to Singapore regularly. It is a great place to transit and a superb place to visit in its own right. I have
not been here for the last four years for obvious reasons. So this is a great opportunity for me to reconnect with an old friend.
(MUSIC PLAYING)
QUEST (voice-over): Clean, of course; safe, few doubt; affluent, absolutely. It is one of the world's wealthiest nations. If its previous
reputation was staid, dare I say boring, the movie, "Crazy Rich Asians" put paid to that.
Singapore's seeds of success go back to the 1800s when Sir Stamford Raffles -- yes, he after whom the hotel is named -- established a colony as a
strategic trading post for the British East India Company.
Its position as a crossroads grew. That attracted Chinese, Malay, Indian and European cultures.
RISHI BUDHRANI, COMEDIAN AND ACTOR (voice-over): What you have got here is an Indian origin man with his roots in Pakistan pre-partition, with a
Singapore and Indian standup comedian. And we are in the middle of Chinatown in Singapore. And we are trying to thread some Egyptian cotton
made in Bangkok. It does not get more global than this.
QUEST (voice-over): The tongue-in-cheek humor of Rishi Budhrani can normally be found on stage.
R. BUDHRANI (voice-over): Audience is not here yet. No, they are not late. It's an hour before.
UNIDENTIFIED MALE: We are still waiting, Budhrani.
QUEST (voice-over): He is one of Singapore's best known comics. Today, he is with his dad at his father's tailoring shop.
R. BUDHRANI (voice-over): Like with any comic, I had a lot of bits inspired by my dad.
Remember about you sent me the invoice?
PARKASH BUDHRANI, RISHI'S FATHER (voice-over): Yes.
QUEST (voice-over): Known as Jimmy to his customers, Rishi's dad grew up in Singapore, having settled here with his family after the partition of
India.
P. BUDHRANI (voice-over): It was backwards then. But now you can see it is a first class city now.
QUEST (voice-over): He has been a tailor here since the 1970s.
R. BUDHRANI (voice-over): From a really young age, my dad kept the kids away from the business actively. You know, become a doctor, a lawyer, an
engineer. Here I am. I'm telling jokes to drunk white people in bars around the world. He must be so proud.
P. BUDHRANI (voice-over): Yes, I am.
Yep.
QUEST (voice-over): His dad has heard it before.
You're from Singapore, born and bred.
R. BUDHRANI (voice-over): Yes, one hunted percent. When people find out I am a standup comedian in Singapore, there's always these questions.
What?
Singapore has got comedy?
I thought you could not even chew gum there.
R. BUDHRANI (voice-over): Even for those of us who kind of veer off track, as a comedian, it is simple. Someone once said, yes, you are out of the box
but you are in an invisible circle still. And you don't know about it.
QUEST (voice-over): He is talking about Singapore's rules over what can be performed and where. When Singapore separated from Malaysia, becoming
independent in 1965, it was small. So the challenges of building a world- class city-state were immense.
Li Quan Yu transformed the place. The priorities were stability, law and order. And there was a golden thread that ran throughout: economic growth.
For a city so open in its trade, it can become prickly when it comes to criticism.
R. BUDHRANI (voice-over): I think standup comedy being one of the last few bastions of free speech, not just in Singapore but anywhere around the
world, that gives me the kind of freedom to share my thoughts.
Let me hear you make some noise, everybody.
QUEST (voice-over): Do not make the mistake of thinking that he is a rebel. He is a contradiction like so many who were brought up here.
[15:50:00]
QUEST (voice-over): He is fiercely loyal to Singapore, warts and all.
R. BUDHRANI (voice-over): I love the place. It is home. And I am a kid of the heartlands. I grew up in this little neighborhood called Bedok (ph). I
played football under the block. I broke lights, got chased by cops.
I'm in my 30s. I look at kids today and I'm going like, you don't know how good you have it.
You know what I'm saying?
In my time, if I'm 35, well, I'm 38. But you don't have to tell people.
I'm 35. It's not costing you to be friendly.
QUEST (voice-over): What about me, I'm 60.
R. BUDHRANI (voice-over): Well, so you have your own show. Right?
QUEST (voice-over): He said it, not me.
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(COMMERCIAL BREAK)
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QUEST (voice-over): The only constant in Singapore is change. Land is reclaimed, buildings sprout up and then it's all change again take. For
instance the Marina Bay Sands.
What a line over there.
Before the Marina Bay Sands was built, the line was the defining landmark of Singapore. Then they decided to put up this. I always say it was a very
brave decision. Because when you build something like this, you don't know if it is going to become an icon or an eyesore.
The decision to build speaks volumes about the way that Singapore thinks.
I can ponder these grand thoughts while I dip myself in the largest rooftop infinity pool in the world. Singapore does not like to boast. It just
quietly and confidently gets on doing things that others merely talk about.
Singapore, with its mix of cultural influences, assaults the senses -- sights, smells, sounds and definitely tastes.
At the core of eating here, is the Hawker Centre. And this man's mission:
DR. LESLIE TAY, PHYSICIAN AND FOODIE (voice-over): To a Singaporean is to have a favorite Hawker Centre and having the favorite hawkers.
Find any porridge?
QUEST (voice-over): Dr. Leslie Tay is a doctor by profession and a foodie by passion, famous for his cooking and critiques.
TAY (voice-over): Pate, one of my favorite foods.
QUEST (voice-over): It is his one man crusade to make hawker food as sought after as haute cuisine.
TAY (voice-over): So in order to eat (INAUDIBLE), you need to have a glove like this. It is the kind of food that was born out of after the Second
World War, especially the '50s and '60s.
So it is all the Chinese and Malay and Indian influenced foods. There is fried noodles, rice dishes. There is Malay curries.
QUEST (voice-over): The Hawker Centre is not only for the tourists. Singaporeans of all stripes eat here regularly. It is the nation's dining
room.
TAY (voice-over): Food we all grew up with. It is traditional because it has been there when I was a kid. We are here at the Golden Mouth Food
Center.
QUEST (voice-over): Follow the doctor's orders.
TAY (voice-over): This man is one of our legendary hawkers in this food center.
[15:55:00]
TAY (voice-over): Not many people like him left because a lot of them have retired. But he has been doing this one dish, day in and day out, for the
last 40 years. So it is bound to be good.
QUEST (voice-over): The doctor knows best.
The doctor has prescribed an oyster egg omelette and a clay pot rice. For Dr. Tay, there is one answer.
TAY (voice-over): My favorite dish of all time is fried Hokkien noodles, full stop.
QUEST (voice-over): And one hawker is trying to preserve this dish for the next generation.
TAY (voice-over): You saw him, he has been frying noodles for 40 years. Now we have a young man who is taking on the task of frying Hokkien Mee. He
started frying a few years ago. It was the first dish that made me fall in love with Hokkien.
You do this every day, many, many times a day. He does the same thing over and over.
ANDRE ONG, HOKKIEN MEE HAWKER: Not really. Every day, we are trying to improvise. So there's always something new.
TAY (voice-over): So it is the pursuit of the perfect plate of Hokkien Mee that drives you.
ONG (voice-over): Every day.
QUEST (voice-over): This is painstaking work. So few young people want to take it on.
TAY (voice-over): It is not easy to find young hawkers who are so passionate, who are intent on just cooking the one dish, perhaps for the
next few years or even the rest of their lives.
QUEST (voice-over): To visit and eat here is like experiencing all of Singapore under one roof.
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(COMMERCIAL BREAK)
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KOSIK: It is the dash to the closing bell and we are just two minutes away. Weak tech earnings are threatening to snap a three day rally on Wall
Street. The Dow has given back most of the day's gains. It had been up more than 300 points.
The S&P 500 is set to close lower. The tech heavy Nasdaq is off almost 2 percent. No surprise there after disappointing results from Alphabet and
Microsoft.
The Dow component is the story of earnings today. Visa beat on profits and is at the top of the board, up over 4 percent. We talked about Microsoft
falling short, it is deep in the red, down over 7 percent. Apple, that is down as well. Apple reports its earnings tomorrow.
Boeing is down sharply as it struggles to deliver on new U.S. presidential planes. And that is your dash to the bell. I'm Alison Kosik. The closing
bell is ringing. "THE LEAD WITH JOHN BERMAN" starts now.
END
