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Quest Means Business

Millions Face Extreme Weather Across the Globe; Tourists Flock To The French Riviera; UK Consumer Price Index Falls To 7.6 Percent In June; French Aviation Strikes Threaten Summer Season; USAID Chief Blasts Putin For Ending Grain Deal; Sustainability Is A Journey for Silversea. Aired 3- 4p ET

Aired July 19, 2023 - 15:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[15:00:26]

RICHARD QUEST, CNN INTERNATIONAL HOST: There is an hour to go before trading ends on Wall Street and it looks like it's going to be an eight-day

winning streak for the Dow. The market is up sharply. Look at the numbers and you'll see as we go through the program, how things are trading.

A hundred and fifty-six, it has been green throughout the course of the session. Those are the markets and these are the main events we're looking

at tonight.

Record heat in Europe takes its toll, including a toll on my voice as it gets ever more grainy. It is straining health systems. The WHO Europe

director is with me to talk about the dangers and the depths of this increasing heatwave.

Inflation is finally easing in Britain. That's a relief for consumers and the Bank of England, the question of whether or not it will still need to

raise rates further.

And a summer of strikes in Europe. It's threatening air travel across the continent. We have the CEO of the Cote d'Azur to tell us what's happening.

Live from Nice in the French Riviera, the Cote d'Azur, I'm Richard Quest. It's July the 19th. And most certainly, on the Riviera, I mean business.

Now, a warm welcome to Nice in the Cote d'Azur, I've been filming for "World of Wonder," and it has given me a first-hand look at exactly the

situation here, just how awful the heat has been, how people are suffering, and the various worries that can be.

It is the French Riviera, the quintessential European summer destination. It really doesn't get more elegant or perhaps quintessential than this.

But here as summer on the Riviera, the continent's challenges are front and center.

Just over there is the airport, the Nice Airport, airport of the Cote d'Azur with delays from strikes and capacity controls and worries about air

traffic across Europe, and then you've got the summer heat that is simply baking away at the tourists. Everybody is sweltering, the number of deaths

is rising, and what's worse, of course, it doesn't look like it's going to get too much better in the very near future.

So this in this hour, I'm going to be joined by the World Health Organization regional director for Europe. He is going to put it into

perspective over what needs to be done. It is Hans Kluge who will be with me very shortly and the CEO of the airport of Cote d'Azur is with me, and

you'll hear from the president and the chief executive of Silversea Cruises, I met Barbara in Monte Carlo earlier in the week.

The temperature right now -- by the way, I do need to apologize, I'm sounding a bit throaty and hoarse, it has been the case of the hot weather

taking its toll. It gets right on your chest, but we will manage and we will get through one way or the other.

The temperature at the moment here in Nice is 29 degrees Celsius. That's just about 80-something for those who like to work in old money. It was in

the 40s in Italy, well over a hundred, and arguably, we've not seen the worst yet.

Close to record temperatures across the whole swathe of Southern Europe amid this blistering heatwave, wildfires in Greece, Spain, and Switzerland.

Greek crews are fighting three major blazes at this very moment, one is dangerously close to Athens. And the Spanish weather office says coastal

waters have also hit a record. The averages would have been 24.6 Celsius, that's more than two degrees higher than July, which is somewhat ironic

since the 2.5, of course, under the Paris Accords.

Talking of Paris, let's go there to Melissa Bell.

Now the number of regions -- sorry about my voice this evening, Melissa, finally taking its toll from having been in this heat -- but the number of

regions that are suffering and have had record cold temperatures is rising.

[15:05:02]

MELISSA BELL, CNN CORRESPONDENT: That's right. Here in Paris, a little bit cooler than where you are tonight, Richard, but still nine regions of

France that remain on high alert because they fear that tomorrow, the temperatures will rise higher still. Already yesterday was nine different

towns that saw all-time records, they simply hadn't seen those temperatures before, rather than like what we've seen in parts of Italy and of Greece.

The fear is that it's going to get worse in part, so Spain is likely to see a little respite, but those very high temperatures you mentioned in Italy,

and Greece, specifically, where they're simply not getting those fires under control, likely to rise still further.

And I think, Richard, that's the point. It's not just that these are very high temperatures in particular localities of different parts of the

European continent, it is the sustained nature of these heatwaves that have just gone on for so long, and the meteorologists predict that over the next

weeks, we're likely to continue to see sustained, abnormally high temperatures, and that of course, has a huge impact on life itself, on

tourism, for now, not being felt but likely to be felt in the future -- Richard.

QUEST: Okay, so the issue, Melissa, is how long this lasts? And even if we come off the record temperatures, from what I am reading, we're not going

back to below average. This is still going to be an extremely hot and dangerous summer.

BELL: Exactly. What we saw last summer, already, we've seen a summer of heatwave after heatwave, Richard, really high temperatures. Once the soil,

the ground was parched, those wildfires you will remember spreading as far as London. The fear is now that although we're seeing them for the time

being in Greece, a few in Switzerland as well, unusually, that over the next few weeks, as that parched land continues to bake, you're going to see

that spread much more.

In fact, the European Union is now having to have a fleet of Canadair, those planes they can send to European countries to try to get the fires on

control, they now have that within the control of Brussels since last year, because, Richard, this is likely to continue.

What Europe is having to do now is deal summer after summer with prolonged periods of heat, all of that brings with it with fires in parts of the

country that we simply hadn't seen before.

So many of those planes now in Greece trying to help them there. The fear is that that could happen, of course, elsewhere. No respite in sight, and

of course for the tourists, at this season, when you have a huge majority of the tourism to Europe, people come in July and August, many of those

tourists simply weren't expecting the kind of scenes they saw the Colosseum in Rome closing, the Acropolis in Athens. It's simply too hot to function.

And remember, this is a continent, we simply don't do air conditioning. It's a tiny proportion of homes that are equipped. So for the tourists,

it's getting difficult and for Europe, it's about thinking how they're going to function completely different to how they have so far -- Richard.

QUEST: Melissa Bell, next time pop yourself on a train and come down here to the south of France.

Melissa Bell joining me from Paris.

BELL: I would love that.

QUEST: The whole world -- I'll even buy the ticket -- the whole world is experiencing these very high dangerous temperatures, in the northern

hemispheric summer and the southern hemispheric summer. The World Health Organization is warning that the heat is putting strain on healthcare

systems, and of course it hits hardest those least able to cope.

With me as Hans Kluge who is the WHO -- World Health Organization regional director for Europe.

Sir, thank you.

HANS KLUGE, REGIONAL DIRECTOR FOR EUROPE, WORLD HEALTH ORGANIZATION: My pleasure.

QUEST: I hope we didn't interfere too much in your vacation or your time away being here.

KLUGE: Still at work, Richard.

QUEST: Still work. Yes. How worried are you that the number of deaths, the number of illnesses -- look at me, I mean, you know, a bit of the

bronchials because of the sheer heat.

KLUGE: We are very concerned, Richard. I mean, last year, which in many countries in which it was recorded as the hottest ever in history, roughly

60,000 people passed away, unnecessary, and this year, it look set to be even hotter.

QUEST: When you say they passed away, and it's unnecessary, what can people do? If you haven't got air conditioning and you've got limited access to

somewhere cool, what do you literally do?

KLUGE: Well, the good news is, a lot of those deaths are preventable. Number one, keep out of the heat as much as possible. Meaning two to three

hours a day at least in a cooler place. Be very careful with children and pets in parked cars. Number two, keep your home cool as much as you can.

QUEST: You see, when I hear you say that, sorry to interrupt you, but when I hear you say that, I think well, he's stating the bleeding obvious, but

it's not that easy for some people to be able to do that.

KLUGE: The third one is much more easy, Richard, it is to keep your body cool, meaning no alcohol. Yesterday, you had a big reception, you had no

drop of alcohol we served. Stay away from caffeinated drinks, from sugary drinks. Water, water, water. Your linen, your clothes, make it light, make

it loosely fitting, these are all things we can do.

[15:10:08]

QUEST: So listening to what you're saying, I'm doing all the wrong things.

KLUGE: If I see you, it will be custom, yes, Richard.

QUEST: Because I've drank numerous cups of coffee today, I'm standing here schvitzing in a wool suit to try and be correct on television and I've been

stressed from running around.

KLUGE: Caffeine pushes the water out of your body, so limit the caffeine, limit the alcohol, limit the sugar. Take a mocktail, you know, with low

sugar content and a lot of water.

QUEST: Okay. If the experts on the climate side are right, this is going to be the new normal. Is that what you expect?

KLUGE: Well, Richard, let me say something that definitely there is no time to lose, but mankind has overcome several times in history, big challenges.

It is a huge challenge. I mean, the climate crisis is a health crisis.

QUEST: Do you believe this extraordinary temperature is as a result of the climate crisis?

KLUGE: No doubt.

QUEST: No doubt.

KLUGE: Yes.

QUEST: This isn't just an aberration over a year or two?

KLUGE: No, because we have been following this and over the past 20 years, the heat-related mortality has increased in Europe beyond 30 percent.

QUEST: If that is the case and this is becoming the new normal, our time is running out.

KLUGE: Absolutely. That's why we in the region two weeks ago organized the Budapest Conference with all 53 Minister of Health and Environment to

really raise the awareness.

This is the first one, raise awareness, because the climate crisis is a heat crisis. Get the youth on board. I mean, we have the youth declaration,

they are bursting with innovations and solutions.

QUEST: But you see, we've got COP coming up later this year. It will be a controversial COP as they always are, but if we look at the floods in

India, we look at the monsoons in Southeast Asia, we look at the exceptional heat in say, for example, the southern United States,

dangerously hot in Phoenix, Arizona, and the Southwest.

But we seem to be incapable of actually grasping the severity of it. We continually talk about it as if, oh, it is a little bit hot.

KLUGE: That's why we need the political will. Let me give you an example. Every year, government spend $600 billion on subsidies for fossil fuels. We

need to change that into an investment in cheap, renewable energy sources, particularly for health care facilities, because we have anecdotal

evidence, Richard, that already in southern Europe, by 20 percent, the admissions to the hospitals are increasing.

QUEST: It is very good to see you.

KLUGE: My pleasure.

QUEST: Thank you very much indeed. Actually, I think I might even take your advice.

KLUGE: Yes, please do so.

QUEST: I think I might just take his advice and start to remove my tie. Thank you very much indeed.

KLUGE: Thank you, Richard.

QUEST: Now, while I disrobe and start to get a little bit more comfortable, if we consider the Cote d'Azur, this of course is the busiest time of the

year.

The place is packed from Monte Carlo, right the way to Nice to Marseille and all points in between, and people come here for a very good reason. It

is elegant, it is sophisticated, it's expensive, and you're going to have a very good time.

(BEGIN VIDEOTAPE)

QUEST (voice over): This is the amongst the most spectacular, expensive, and desired destinations in the world. The Cote d'Azur.

This is where the Alps meets the Mediterranean. And here, they do things all a little grander.

A place where to be sure, the rich and famous rendezvous, where celebrities stalk the Cannes Film Festival red carpet, and billionaires breathe on

their mega yachts.

If you want to drink, it's a martini, and it must be shaken not stirred preferably at the Monte Carlo Casino.

(CLIP FROM "JAMES BOND" MOVIE.)

JAMES BOND, FICTIONAL CHARACTER: You know that's not have bad.

QUEST (on camera): I don't want to overstate it, but the thing about Nice is it is a little less snobby than the other places on the Cote d'Azur.

There is Cannes, Saint-Tropez and certainly perhaps, Monte Carlo.

This is a city with a downtown, an old town, a new town, different areas, different feelings, different moods.

Nice as they say is different.

QUEST (voice over): For more than two centuries, kings and queens have made the Cote d'Azur a summer home. Intellectuals and artists have argued their

way around the Corniche. Pablo Picasso was a favorite.

Rock and roll royalty like the Rolling Stones, well, they moved here in 1971 to avoid British taxes. They recorded "Exile on Main Street" in the

basement of the Nelcott Villa.

Millions of people come here to enjoy the unique experience of the South of France.

[15:15:08]

QUEST (on camera): The Cote d'Azur is amongst the most desirable seaside settings in the world, which is interesting, because the beach itself at

Nice is far from perfect. It is all pebbles and rocks, at least the public parties, but then you get to the private beaches, where for the right

price, a deck chair, an umbrella, and a perfect view is all yours.

QUEST (voice over): Here, I can watch one of the greatest holiday destinations come to life.

Oh, yes. Nice. is so nice.

(END VIDEOTAPE)

QUEST: And by the way, the cost of that deck chair, if you want the front seat or on the pier, 95 euros, for that, you get the chair and a towel.

What a bargain.

And I've been doing a bit of a study about the cost of a cup of coffee along the Cote d'Azur. I will have results for you in just a moment.

Coming up after the break, we will talk about British inflation finally starting to moderate, but is it enough for the Bank of England to hold off

raising rates any further?

QUEST MEANS BUSINESS, it's summertime.

(COMMERCIAL BREAK)

QUEST: I challenge you not to want to go and do that, such good fun, even if it probably costs $150.00 just to have a quick run around, but it's all

great fun.

Now the cost of living of course here on the Cote d'Azur has risen as it has everywhere else, but there was some better news in the United Kingdom.

British inflation has fallen back somewhat, 7.9, still ridiculously high on target rate of two percent, but eight percent year-on-year in June, it is

the lowest since March of last year. It eases pressure, so they think, on the Bank of England.

What's interesting is food inflation is still at a 17.3 percent, but that is lower than 18.

Anna Stewart, the core question, is this -- I mean, eight percent is still ridiculously high, but is it -- what is the smart money? Is it considered

sufficient for the Bank of England, not to really have to stomp harder on brakes?

[15:20:13]

ANNA STEWART, CNN REPORTER: I have been speaking to a few economists today, and it does feel actually like we are at a tipping point and I was

wondering whether we need to see another month before we can really call this a trend, because in the UK, we had thought inflation would fall and

then being horrified almost every month.

But looking at some of the forward-looking data, like PPI, which was released today, producers input price inflation that actually turned

negative for the first time since November 2020. So things I would say are looking good.

You are right about food inflation, that's fallen, also, core and services. So it's not just the huge drop in energy prices. It looks like it's really

feeding through the entire process. And you're right, now the expectation is the Bank of England will raise rates, but only by a quarter of a percent

next month rather than half -- Richard.

QUEST: It's too soon to say that inflation has been slayed.

STEWART: It's too soon. And listen, you made this point. Just because inflation is slowing doesn't mean prices are falling. Life is incredibly

expensive in the UK and it is getting more so, because inflation is still around eight percent, and the cost of living crisis is pushing people to

strike.

I know you're talking about this in your show, in the UK, here this week, junior doctors have just ended a strike. Consultants start one tomorrow. We

have train strikes starting this week, a whole week of London underground strikes next week. We have Gatwick Airport striking at the end of July and

the beginning of August, so you can see how this is being felt by the UK and also thinking back to all of those strikes on the economy -- Richard.

QUEST: Right. But this is exactly the moment in a sense, Anna, where the Bank of England and policymakers will be terrified of the upward spiral

through wage inflation.

So I'm guessing the necessity. I mean, it's cruel to say it, and it gives me no pleasure, but from policymakers' point of view, the necessity of

holding wage inflation down so that it doesn't just create a self- fulfilling prophecy is never more important than now.

STEWART: So wage inflation. Richard, it's so interesting, you bring this up, that was 7.3 percent in the second quarter. Inflation is now at 7.9

percent. You're beginning to see them converge.

So I think at this stage, this is when the Bank of England, yes will be very concerned about wages. They don't want wages to go up. But the UK

public well, they feel differently. And perhaps in Europe, given a deck chair, you say in Nice cost, was it 95 euros? Does it make its own

cocktails? Does it give you a massage?

QUEST: No, but it is opposite the Carlton Hotel, and it is on the pier and you seem to be the sort of person who might enjoy being seen to be seen

occasionally. And therefore, if you were here, I would happily buy you that deck chair.

STEWART: You offered Melissa Bell a ticket, I'll take one, too -- Richard.

QUEST: Low-cost carrier. She's coming on the train, you're coming low-cost carrier. We'll talk about low-cost carrier in just a moment.

Anna Stewart, up in London. Grateful for your time tonight.

Let's go to Kenya now where there have been reports of people being shot as a result of protests because of taxes.

Now, several people are believed to have been shot. One is believed to have been killed. The government says taxes generate jobs and revenue. Well,

that's hardly revolutionary.

But it's the first of three days of protests and they've turned violent. The United Nations is concerned about police violence.

Larry Madowo is in Nairobi reporting this for us.

So what's behind it? I mean, we all pay -- we all have taxes that we have to pay. Why have these protests against taxes taken on this violent deadly

toll?

LARRY MADOWO, CNN CORRESPONDENT: They have become that headline about taxes, Richard, but they began as opposition protests against the

legitimacy of the election of President William Ruto 10 months ago, but luckily for them, the high cost of living has become the thing that they

can hitch their wagon on to because President Ruto's administration badly needs cash, and one of the ways of doing that is by increasing taxes. For

instance, they did that recently.

And fuel -- and if fuel is expensive, then everything else becomes expensive. They're introducing a deeply unpopular tax hike, for instance,

on housing levies and these are things that people are not happy about. And because of that, these opposition protests have devolved into anti-

government protests and you've seen them turn violent today.

We saw police using teargas, hand grenades, water cannons to try and hold back protesters because President Ruta's administration promised that these

are illegal and they would not allow them to take place. What the opposition did achieve here is score a win by keeping people away from the

streets in the capital here in Nairobi and two other major cities in Mombasa in the coast and in Kisumu.

[15:25:10]

The streets are almost empty and that is a win for them because the Kenya private sector alliance, Richard has said, every day these protests happen,

the Kenyan economy loses about three billion shillings, that's over 21 million dollars.

QUEST: Is there evidence that the economy is stabilizing in Kenya? Because the raising of tax revenues, the collecting of revenues has been a serious

problem, not just in Kenya but in other African countries, too. Kenya perhaps arguably has made a greater effort to actually get the money in.

MADOWO: There is some evidence of stabilization, but there needs to be a whole lot more and what President Ruto is trying to do is to raise that

revenue. He says a lot of people are evading taxes. They are not just paying their fair share.

But on the other hand, he's going to widen the tax base here and part of doing that, unfortunately means these tax hikes that have become deeply

unpopular.

And Kenya has done, yes, better than other countries, incidentally, Anna Stewart was talking about inflation, inflation at 7.9 percent here just

like the UK, but for a lot of people, in the 10 months since President Ruto took over, they feel that their life has gotten worse.

So even among those who don't agree with this protest, they say something has got to give because life is becoming way too expensive and my income

has not expanded to match that.

QUEST: Larry in Nairobi, thank you. Larry Madowo joining me.

We're going to stay in Kenya, because if you're looking for a nickname, if you will, for Kenya, how about Savannah Silicon. One entrepreneur who Eleni

Giokos has been meeting talks about the entrepreneurial spirit, the ability of tech to play a full rounded role in that Kenya's technology revolution.

(BEGIN VIDEOTAPE)

ELENI GIOKOS, CNN INTERNATIONAL HOST (on camera): I'm in Nairobi and markets like this across Africa are the lifeblood of the continent.

In fact, informal traders are what make things tick and work, and the question has always remained, how to formalize the informal? And technology

might just be the solution to propel this industry into a new economic reality.

GIOKOS (voice over): Known by some as the Silicon Savannah, Nairobi is becoming an increasingly important player in the international tech scene.

Adanian Labs is just one example of local tech success here, founded in Kenya and active across several African countries, Adanian is on a mission

to cultivate startups in the technology field.

IRENE KIWIA, CO-FOUNDER, ADANIAN LABS: So we're a technology company, a Pan-African technology company, and what has really founded as was our

mission to actuate the tech revolution on the continent, by making sure that Africans are an active and proactive participants in the Fourth

Industrial Revolution.

I mean, the good thing about Africa, Kenya, and you know, Sub Sahara Africa is a young continent, right? So there's a lot of vibrant young people, and

they're all looking to create value for themselves, create wealth for themselves.

Unfortunately, Africa as a continent has so many things that are a challenge, but that's where the opportunity is. So technology allows us to

leapfrog things in a way that we're not able to do before.

If you look at the African history, we've missed the Industrial Revolution, we've missed a couple of things. But for the first time ever, we have a

technology revolution where we are able to create impact and change the status quo of this continent and the young people are the people who are

going to do that.

GIOKOS: So you've been around for three years, and you've already made such big headway. Firstly, did you anticipate that you would grow so fast? And I

guess what is the future for you? What are you seeing coming up?

KIWIA: Yes, it's been an exciting three years. And I think we've managed to do all this because of also the place where we have decided to go to market

from. I mean, we built the company from Kenya.

If you look at what's happening in Africa, Kenya is becoming a hub of tech for the continent. So I think that was very, very key. And the future is

absolutely exciting.

We are building the largest tech company on this continent. And by largest, I mean in terms of the impact that will create across sectors, but also the

fact that you know, our aim is to digitize this 80 percent, you know the SME ecosystems and build a connected Africa, a borderless Africa, so I'm

extremely excited.

(END VIDEOTAPE)

[15:30:27]

QUEST: "Connecting Africa" and as the sun sets here in Nice, so the music from the Nice Jazz Festival over there, the sort of background noise from

the airport over there, one of the great things about Nice is the airport is literally in the middle of the city or just to side of it.

We will have the CEO of the Cote d'Azur Airport, he will be joining me in just a moment.

It is QUEST MEANS BUSINESS and we are live tonight on the Cote d'Azur.

(MUSIC PLAYING)

(COMMERCIAL BREAK)

(MUSIC PLAYING)

QUEST: Hello, I'm Richard Quest there's, more QUEST MEANS BUSINESS in just a moment.

Wheat prices are firming up. Of course, now that Russia has withdrawn from the grain agreement to export, Ukrainian grain, we will show you what's

happening there. Certainly as Russia seems to be attacking various facilities.

And the CEO of Silversea Cruises on how we want to go further and see more and can often only do it by boat. We will have that for you in just a

moment.

It's QUEST MEANS BUSINESS. Tonight, we are on the Cote d'Azur.

(MUSIC PLAYING)

QUEST: Now the French air traffic controllers' strike has caused all sorts of problems. Delays across the continent because so many holiday flights

have to pass over French airspace. And you can see here the French airspace is a massive part of the European flight routes.

Delays are already happening. Nice has had flights delayed throughout the day. Almost all departures were delayed between 5 and 6 pm. After 6 pm,

still some delays but it's getting better. Franck Goldnadel is the CEO of the Aeroports of the Cote d'Azur.

[15:35:00]

QUEST: Sir, how good to see you. Your airport is just over there. For the size and scale, it's an extraordinarily busy airport.

FRANCK GOLDNADEL, CEO, AEROPORTS DE LA COTE D'AZUR: Yes, if you compare the size of the airport compared to the major airport, we are a small airport.

We have one in France. And we have double airports. We have a private jet airport and then a commercial jet airport. And this is important for the

Cote d'Azur.

QUEST: I notice you're not quite back to 2019 numbers. Although this year you might hit it.

GOLDNADEL: We are very quiet. The traffic recovery of 2019, about 95. Percent.

QUEST: But the private jets, the number of private jets is phenomenal.

Are you the busiest private jet airport?

GOLDNADEL: We are not running about records and number of. But yes, during the summer period, and not just the summer period, the window just

(INAUDIBLE) Cannes (ph) and the Formula 1 race in Monaco, we are doubly the busiest airport because of this exhibition.

QUEST: Now I know it's not your business as such. You are running an airport. But the environmental issue over private jets, I mean, as I drove

past your airport today, it's just jet after jet after jet, dozens and dozens of them. They brought a handful of people here. They will sit there.

Can this be justified in this day and age?

GOLDNADEL: Yes. And we are not proposing business and (INAUDIBLE) commitment. We are perhaps the most important airport with the largest

commitment develop sustainable issues.

Just an example of business, jet aviation. You see a lot of airplanes. But you don't hear anything, any noise because the auxiliary core unit are

closed, are off because we are using the engine only for takeoff. And when the airplane lands, after it stops, you will never use any engine until the

departure.

QUEST: The ability for this airport to grow is somewhat limited by virtue of where you are. I mean you can't go this way or that way. I suppose you

can't really because the land is so expensive.

GOLDNADEL: I hope that all your public will come and will see that we are between the sea, the city and between arrivals. So the space is the space

we have.

QUEST: Right. And after --

(CROSSTALK)

QUEST: -- show you how to make better use of the air traffic control space, continue (INAUDIBLE) European skies.

(CROSSTALK)

QUEST: All these sorts of things.

GOLDNADEL: But we have two in ways like on the Heathrow. So we don't need any runway, traditional runway. What we need in the future is to adapt the

facilities for passengers. Because we are not running after a number of passengers.

We want to welcome all the passengers coming to visit the Cote d'Azur. We are not in a mass market. But we want to have quality.

QUEST: Right. But you are getting more longhaul flights. I'm thinking particularly of the United States -- United, Delta; more and more U.S.

carriers are coming in, even if it's only seasonal. And they're engaging their aircraft as well. So you've got an underlying level of growth.

Can you cope with it?

GOLDNADEL: Yes, because we want to be connected. And it's important for the Cote d'Azur and especially for American citizens. They love the Cote

d'Azur. We love it here.

QUEST: Are you in favor of the limitation of French air traffic control industrial action?

So it's only to and from France or in France; domestic flights. It's not the high altitude over France which is really causing chaos for everybody

else.

GOLDNADEL: You have a lot of discussion about it. We know it's an important point. But to be honest, we didn't face any big troubles during the strike

of ITCB because for the longer aircrafts, longhaul aircraft we don't have any issues; perhaps some delays. But not conservation (ph).

QUEST: As we look to the rest of the summer, will it be better than last year, will it be the same as last year?

Or worse than last year in terms of delays and air traffic control problems?

GOLDNADEL: The air traffic controller is not only a French question. It's a European question. Today with the traffic we have a route, sometime because

of the traffic and because of the weather, you can have regulations.

Because during the last two, weeks we have a lot of thunderstorms in Europe. That causes a lot of delays. But to be honest, we are working a lot

with all the partner to limit as possible all the different difficulties we can have.

[15:40:00]

QUEST: I have to say, it's a delightful airport. I just like the fact it's right at the end of the road, literally at the end of the road here, the

airport is there.

Very grateful, sir.

GOLDNADEL: You can come with your bicycle. You can run to the. Airport This is amazing.

QUEST: Tomorrow morning I shall do just that. Good to see you, sir, thank you.

GOLDNADEL: Good to see you.

QUEST: QUEST MEANS BUSINESS tonight from Nice in the south of France.

Vladimir Putin has halted the grain deal that was allowing Ukraine to export on the Black Sea. Now, of course, any ship carrying grain is a

potential target. We will talk about that in just a moment. QUEST MEANS BUSINESS.

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QUEST: Wheat prices are soaring once again as the grain deal comes to an end and tensions mount but now, of course, there are some serious worries

about any ships that might be caught up in violence as they're trying to export.

So prices are up more than 8 percent. Putin's upped the ante. He spoke about ships bound for Ukraine and said all will be considered carriers of

military cargo and then blamed the West for the breakdown of the deal.

And for the second night, Russia is continuing to unleash barrages of missile strikes on the port of Odessa. It's aiming to hit the economy as

much as killing people on the ground. Kyiv says the target of infrastructure is that which is used for grain exports. Alex Marquardt

reports.

(BEGIN VIDEOTAPE)

ALEX MARQUARDT, CNN SENIOR NATIONAL SECURITY CORRESPONDENT (voice-over): An extraordinary display of firepower as Ukrainian air defenses furiously

tried to fend off a major Russian air assault. It was the second night in a row that Ukraine's biggest port city

Odessa came under Russian drone and cruise missile attack. Tracer rounds soaring into the sky, some appearing to make contact as the sky glowed.

The second night's barrage significantly larger than the first as multiple enormous blast echoed across the city on Wednesday before dawn, so violent

they made car alarms go off.

It was a city still rattled. When top Biden administration officials Samantha Power, the head of the U.S. Development Agency USAID arrived in

the Odessa port on Tuesday.

[15:45:00]

MARQUARDT (voice-over): In an exclusive interview, she blasted Russia's decision to pull out of the Green Deal.

SAMANTHA POWER, ADMINISTRATOR, USAID: The idea that Putin would play roulette with the hungriest people in the world at the time of the greatest

food crisis in our lifetimes is just deeply disturbing.

MARQUARDT: So are you still optimistic that the Russians can be brought back in?

POWER: It is going to require pressure not only from the United States in the United Nations but from those countries in Sub Saharan Africa who will

suffer most from the higher grain and oil prices.

MARQUARDT: The Russian complaint has been that this has been one sided, Ukraine has been the only ones who have benefited from this, that they

haven't been able to export their foodstuffs, their fertilizer. What do you make of that argument?

POWER: Sanctions have not been imposed on Russian food and fertilizer, the idea that Russia should benefit from a deal designed to undo the effects of

Russia's cruel and inhuman blockade against a sovereign country is absurd.

MARQUARDT (voice-over): Power announced the U.S. would be giving another $250 million to help Ukrainian agriculture and investments she argues will

help stabilize global food prices as the Russian onslaught continues.

Overnight, an Odessa resident was trapped under a collapsed house after it was struck by a cruise missile.

He's alive, a man says, he's breathing. Just one person was hurt in the more than two hour Russian attack on this city.

The military practice firing on would be Russian target at sea, preparing for all kinds of attacks that with or without a Grain Deal, Power says will

continue.

POWER: You are a bully and an aggressor. It is always easier to lob missiles and send drones at civilian infrastructure. So I think our -- we

absolutely should expect the worst from the Russian Federation as it continues to struggle on the battlefield.

MARQUARDT (voice-over): The Kremlin had said that Tuesday's attack on Odessa and elsewhere in the South was a retaliatory strike for Ukraine's

attack on the Kerch Bridge, which connects Russia to illegally annexed Crimea. 3

According to Vladimir Putin spokesman Moscow is still looking at other ways to respond even further -- Alex Marquardt, CNN, Odessa.

(END VIDEOTAPE)

QUEST: After the, break we are going to talk to the president of Silversea Cruises. The cruise industry has been the slowest part of travel and

tourism (INAUDIBLE) post pandemic. But now things are moving. And more ships are coming down here to the Cote d'Azur. QUEST MEANS BUSINESS; we are

live tonight in Nice.

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[15:50:00]

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QUEST: The Silversea Cruise line, which is the largest ultraluxury cruise line, is part of the RCL Group. They are seeing increased demand at all

levels. Earlier in the week, I went just along the coast to Monte Carlo, to the Monaco Yacht Club, where I met the CEO of Silversea Cruises.

And I spoke to Barbara and I asked her about the recovery that's been taking place. It has been slower for cruises but now things are really

picking up.

(BEGIN VIDEOTAPE)

BARBARA MUCKERMANN, PRESIDENT AND CEO, SILVERSEA CRUISES: The cruise industry is the only industry that was completely shut down and for such a

long amount of time.

But now everybody, all the players are about 2019 numbers. The industry grew quite significantly during the pandemic. And it's part of the demand

basically from every market around the world.

QUEST: So what is your most popular product?

MUCKERMANN: Depends how -- if you're looking at popularity for the most (INAUDIBLE) or the biggest volume. The biggest voluble will always be the

Mediterranean.

We're here in the south of France today.

(CROSSTALK)

MUCKERMANN: It's not here today. She's close by. But you know, who they want is sail the Med. So from a value perspective, maybe it's number one.

But from an aspiration perspective, Antarctica is the destination that is seeing more and more growth, followed by the Galapagos.

QUEST: And within those markets, the fighting ground is what?

Because how much luxury can do you physically give someone?

MUCKERMANN: So to your point when --

(CROSSTALK)

QUEST: You can only sleep on so many threads of cotton.

MUCKERMANN: Absolutely, Richard. In fact, Silversea prides itself about destination leadership because the real point is offering the experiences

money can't buy. So what we do on our, ships we will, you, know rent private islands in the Philippines just for the guests of the ship that

they can go have a party.

We will organize in the long bay in the north of Vietnam a whole private dinner. The same on the Great Wall of China. So these kinds of experiences

money can't buy, that's really what drives the market.

QUEST: And that is fascinating because that is taking an experience, i.e. going on a cruise, and layering another experience upon it. And what we

know from research is that the great fighting ground for travel and tourism is experimental in the future.

Would you agree?

(CROSSTALK)

MUCKERMANN: -- 100 percent.

QUEST: We've all got enough of everything.

MUCKERMANN: Yes.

QUEST: We don't need more of something.

MUCKERMANN: But not only you are seeing a shift from durable goods to experiences. There's a shift in consumption. It's a huge trend. And we are

profiting from the trend. If you think about it, because the ship moves, it allows access to these remote destinations.

QUEST: In terms of different parts of the world, China hasn't yet picked up fully. We see the latest numbers. But China is not as important to you yet

as the United States.

MUCKERMANN: For luxury cruising it's not yet, to your point. But it is the first market (INAUDIBLE) destination when we sail Antarctica. And they want

to go with the best ship. They want to fly there. We are the only ones to operate a charter flight to Antarctica to avoid the great passage.

And that is a very expensive product that really is the flagship (INAUDIBLE).

QUEST: Growth comes with its challenges. And I think there is no greater challenge than environmental. Now you will tell me that you are the most

sustainable. And your new ship that you are about to sail is the greenest, most sustainable in the world. I assume that's what you will tell me. But

convincing people of this is different.

MUCKERMANN: Absolutely. Look at sustainability and every industry is a journal (ph). It is no magic wand that we'll, from one day to the other,

create a completely emission free ship.

Royal Caribbean group has been at the forefront of investments. So we are committed to a zero emission ship (INAUDIBLE). Silver Nova, the ship that

you are taking over on the 14th of August, she is the most sustainable ship in ultraluxury.

In for all the features starting from liquefied natural gas propulsion, which is the best transitional fuel you can have, for example.

One place I need to go.

MUCKERMANN: Antarctica.

QUEST: Antarctica?

MUCKERMANN: Or the other one -- we just launched this year --

[15:55:00]

MUCKERMANN: And this is on my bucket list. Is actually Kangaamiut (ph) in the north of Greenland, Polar Bear County. It's so remote it doesn't even

have a commercial airport.

QUEST: You are sailing.

MUCKERMANN: We are sailing there a private charter plane of course because that's the only way to get. There and we promise the bear sighting.

QUEST: You promise the bears?

MUCKERMANN: We promise the bears.

(LAUGHTER)

QUEST: Is that a bit like this ski resort that promises the snow?

(LAUGHTER)

QUEST: Keep everything cool.

MUCKERMANN: Yes, absolutely.

(END VIDEOTAPE)

QUEST: Right, Galapagos, polar bears; I know where I'm off to at some point in the future. Maybe not on a private jet. In fact, I'm talking of heading

back, I'll be heading back to New York tomorrow or flying back on the first flight from here to London and then to New York.

Which means I will be back with you for a Summer Friday. This week's Summer Friday is coming from the New York Botanical Gardens. It is fantastic. From

Nice to the New York Botanical Gardens, who could want more?

It is 8 p London, 9 p Paris, 9 p Cote d'Azur. We shall return for more avec un Profitable Moment. Or something.

END