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Quest Means Business
Israel Under Pressure After Strike Kills Seven Aid Workers; Iran Vows Decisive Response To Consulate Attack In Syria; Tesla Shares Drop Following Lower Q1 Sales; Trump Rallies In Battleground States Of Wisconsin And Michigan; Florida Supreme Court Paves Way For 6-Week Abortion Ban; Blaze At Istanbul Nightclub Kills At Least 29; Shares In Calvin Klein Owner Tumble On Revenue Forecast; Taylor Swift Joins Forbes List Of Billionaires. Aired 4-5p ET
Aired April 02, 2024 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:07]
JULIA CHATTERLEY, CNN INTERNATIONAL HOST: Power GE Power spinoff Vernova ringing the closing bell. Today's smiles and cheers there, but look at the
markets though.
The Dow, off some one percent moving further away from that 40,000 level. Those are the markets and these are the main events: Outrage and
condemnation from some of Israel's closest allies after an Israeli strike kills seven aid workers.
Donald Trump hits the campaign trail the morning after posting $175 million bonded in his civil fraud case.
And Tesla shares dropping after deliveries fall by more than eight percent.
Live from New York, it is Tuesday, April 2nd. I am Julia Chatterley, in for Richard Quest, and this is QUEST MEANS BUSINESS.
Israel under growing pressure tonight show after an Israeli military strike killed seven aid workers in Gaza. The victims were World Central Kitchen,
which has been providing food to hungry Palestinians.
The Israeli Prime Minister Benjamin Netanyahu says the workers were "unintentionally struck." France, says there is "no justification for such
a tragedy." The British prime minister told Netanyahu today that the situation was "increasingly intolerable," and the White House has now also
condemned the strike.
(BEGIN VIDEO CLIP)
ADM. JOHN KIRBY (RET), COORDINATOR FOR STRATEGIC COMMUNICATIONS AT THE NATIONAL SECURITY COUNCIL: We were outraged to learn of an IDF strike that
killed a number of civilian humanitarian workers yesterday from the World Central Kitchen which has been relentless in working to get food to those
who are hungry in Gaza, and quite frankly, around the world.
We send our deepest condolences to their families and loved ones.
(END VIDEO CLIP)
CHATTERLEY: And Melissa Bell has more on the aid workers who were killed.
(BEGIN VIDEOTAPE)
ZOMI FRANKCOM, ACTIVATION MANAGER, WORLD CENTRAL KITCHEN: Hey this is Zomi and Chef Olivier with me. We are at the Deir al-Balah kitchen, and we've
got the mise en place.
MELISSA BELL, CNN CORRESPONDENT: Smiling in one of her final mornings. Zomi Frankcom, an Australian aid worker, one of the seven World Central Kitchen
employees, killed by an Israeli airstrike as they delivered food to a warehouse in Central Gaza.
A dual US-Canada citizen, UK nationals, a Polish man, and a Palestinian also amongst those killed.
The hum of war drones drowning out the sound of ambulance sirens as their bodies were brought to hospital after the strike, but too late, all trying
to bring relief to the more than one million Gazans, the UN says are now facing famine; all now in body bags.
The logo of the aid organization, a reminder of the lengths the charity went to, to protect its own. Traveling as they were according to the World
Central Kitchen through a deconflicted zone whilst coordinating their movements with the IDF.
The charity, which was selling central in getting around the blockade by getting the first maritime shipment of aid into Gaza, now saying that it
needs to assess its future in The Strip.
Israeli Prime Minister Benjamin Netanyahu acknowledged the tragic loss of what he described as innocent lives.
BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER (through translator): Unfortunately, in the last day, there was a tragic case of our forces
unintentionally hitting innocent people in the Gaza Strip, it happens in war. We will investigate it right to the end.
BELL (voice over): So far, at least 196 aid workers have lost their lives in the occupied territories since the start of the war, according to the UN
agency asked with relief there, the World Central Kitchen workers, just the latest.
Among them, the Palestinian driver and translator, Saif Issam Abu Taha. His loved ones, forced to say goodbye to a man who died, trying to help others
to survive.
Melissa Bell, CNN, Jerusalem.
(END VIDEOTAPE)
CHATTERLEY: And Nic Robertson join us now with more on this.
Nic, the words "outraged, increasingly intolerable," the words of allies to Israel at this moment. It steeps the pressure on them once again to firstly
explain what happened here in what appeared to be quite a surgical strike, and secondly, to push for a pause given that this exacerbates the already
painful food situation or lack of it in Gaza.
[16:05:00]
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes, a very sad situation and it is absolutely causing outrage and dismay and despair. A
thorough quick and impartial type of investigation that the US Secretary of State, Antony Blinken called for, impartial, it is not something that the
Israeli Defense Forces have in the past easily given to.
They are saying right down from the defense chief that there is going to be a thorough investigation. Herzi Halevi, the top commander of the IDF says
that he will review the findings of the investigation.
Their plan is to learn lessons, but the lessons being taken away from the humanitarian aid givers is, it just isn't safe. And as Melissa was talking
about in her report there, this was the group that pioneered an alternate way to get aid around, essentially what many Palestinians in Gaza view as a
blockade of aid getting to them from Israel and through the border from Egypt as well.
Israel says that it is helping and doing everything it can to get food across the border, but it is the UN's assessment as people are close to
starvation.
So the World Central Kitchen had found that innovative way around it, and this is an object lesson, if you will, in the words of the Israeli Prime
Minister, when he says, this happens in war of what can happen in these situations, and it sends a very, very chilling message to anyone that would
want to go in and help the people of Gaza.
The investigation, of course, will be judged internationally. We know that the British prime minister a short time ago called the Israeli Prime
Minister Benjamin Netanyahu and expressed to him the absolute importance of improving humanitarian aid, access and distribution in Gaza and in no
uncertain terms that this was not acceptable, the killing of these aid workers.
But it will be how transparent will that investigation that is being promised be and how immediate and how quick? And I think that will be the
final assessment by agencies, aid agencies of how effectively they can work there if they don't feel that they are getting to the bottom of what Israel
says, it will get to the bottom of, and it has a lot of information already.
It knows the drones that fired at those three vehicles and those times that it happened. It will know who was behind the controls of those drones, it
will know the instructions they have; it will know the conversations that have been had -- all of that will be available in a very short space of
time.
So that will be where I think the next move on this rests, it will be the judgment of that investigation.
CHATTERLEY: And the reiteration, though of that message on the protection of civilians has been provided many times throughout this crisis.
Not the only threat that Israel faces at this moment, a fresh threat after that airstrike on the Iranian embassy complex in Syria that killed seven
Iranian officials.
Tehran, we know has blamed Israel for the attack, which it said is an assault on its sovereign territory. They have now promised to respond. Nic.
The us has also just said its assessment is that is Israel did carry out that airstrike in Damascus.
What kind of response can we expect to see from Iran that doesn't take what has long been a shadow war fought through proxies right out into the open?
ROBERTSON: Yes, it seems the United States is still creating a lot of distance and understandably because it says it didn't have anything to do
with that attack, didn't know about it coming, doesn't know now anything about the intended targets.
This was asked -- the deputy spokesperson at the Pentagon was asked whether or not this was a diplomatic facility and the spokesperson said that they
didn't know, of course.
The Israelis are saying that they're not going to comment on this attack and that this wasn't a diplomatic facility, that this was a place of
meeting for Quds Force, IRGC commanders to have a meeting and there has certainly been some leaks to some media that would suggest that.
However, we don't know. We don't have access to that kind of information. We don't know what was going on inside that building.
We do know that if that had been happening, the people who were killed were very -- we are aware of, were very high-value potential targets to Israel
because one of them was allegedly so senior, he was in charge of organizing the fight against Israel in both Syria and Lebanon.
How will Israel respond to what Iran says is going to be, you know, their response to that isn't clear, but Israel's strike if it was them and they
said isn't in Damascus, they clearly calculated as they have in the past that this was within their red lines, not to trigger a bigger conflict.
And I was speaking earlier to an intelligence official in the region whose assessment was that Iran's response may not be in the region and may not be
through the usual proxies like Hezbollah and Lebanon, and would be also trying to avoid crossing over that red line.
[16:10:12]
You know, I think there is a potential here for Iran to try to go like for like, and get -- and try to target an Israeli diplomatic facility somewhere
in the world that it thinks is a soft target.
How quickly can they do that? It is not clear.
CHATTERLEY: Nic, a calculated risk perhaps, but a challenge to Iran nonetheless.
Nic Robertson there, thank you for your context as always.
Now, US Secretary of State, Antony Blinken says the US remains committed to Israel's security. Blinken spoke to reporters in Paris today along with
his French counterpart. He says the US gives Israel weapons to deter others from attacking.
(BEGIN VIDEO CLIP)
ANTONY BLINKEN, US SECRETARY OF STATE: Security relationship we have with Israel is not just about Gaza, Hamas, October 7th. It is also about the
threats posed to Israel by Hezbollah, by Iran, by various other actors in the region.
Each one of which has vowed one way or another to try to destroy Israel.
(END VIDEO CLIP)
CHATTERLEY: The Biden administration is set to approve an $18 billion sale of fighter jets to Israel. It would include up to 50 American made F-15s,
that would be the largest weapons sale to Israel since October 7th.
Natasha Bertrand is at the Pentagon, too.
Natasha, we are also expecting the administration to notify Congress, I believe of the sale of precision-guided munitions as well.
How much harder does the agreement on this and providing approval on this too get in the wake of what we saw with World Central Kitchen and the loss
of NGO members yesterday?
NATASHA BERTRAND, CNN NATIONAL SECURITY CORRESPONDENT: Well, look optically, it is pretty bad for the Biden administration and their critics
are going to seize on these sales and have seized on these sales to emphasize the need for the US to condition or restrict military aid to
Israel precisely because of what we saw today or yesterday, I should say, with Israel's attack on that WCK convoy.
But it doesn't appear at this time like the administration is willing to, in any way kind of rein in the weapon sales that it is approving for the
Israelis, because as you heard, the Secretary of State say there, this is in the US' perspective, a long-term investment in Israel's security, not
only as part of this war against Hamas in Gaza, but also as part of the larger regional context where Israel is facing threats from Hezbollah in
Lebanon and from Iran.
And so from the US' point of view, these arms sales need to continue because the US has made a commitment essentially to allowing Israel to
defend itself.
And right now, although this massive weapons sale, this $18 billion weapons sale is set to be approved by the administration, it is going to set off a
really important debate, I think on Capitol Hill here amongst lawmakers who are deeply skeptical of providing this kind of equipment to Israel, even if
it is not going to be delivered in the next four to five years, right? Because these fighter jets, they do have to be built and manufactured, and
this is not an immediate thing that the Israelis are going to get.
But it speaks to, I think the larger issue here, which is that the US does not appear to be using its leverage that it has with these military sales
to try to get Israel to conform to the kind of behavior in war that the US he has been encouraging them to conduct themselves by.
And that is going to be the point, I think, that we see many lawmakers here make and have already started to make is that the US has this leverage, so
why doesn't it start using it if it says publicly that Israel is not doing enough to protect civilians there, that I think is the big question we are
going to see play out here.
CHATTERLEY: Yes, Natasha, you raise some vitally important points. It raises questions for, indeed the US Congress, but also for American voters,
too.
Natasha Bertrand, thank you.
Okay, we are going to take a break here on QUEST MEANS BUSINESS, but when we come back, Canada's Niagara region is one of the country's most popular
tourist attractions and it is pretty easy to see why. You are looking at live pictures of the falls.
Well, next week's solar eclipse has locals bracing for a deluge of a different kind -- up to one million visitors.
We will explain how they prepare, next.
(COMMERCIAL BREAK)
[16:17:09]
CHATTERLEY: Welcome back to QUEST MEANS BUSINESS and a sharp drop in Tesla's sales caught investors by surprise. Its shares closed down nearly
five percent, as you can see there, lower on the disappointing Q1 numbers.
Tesla's deliveries were off eight percent from a year ago, that's the first drop, in fact, since the pandemic.
The company is blaming production problems and Red Sea shipping delays. Tesla's challenges, however, go deeper as its share price suggests, over
the past year. They include growing competition, particularly in China, and slowing demand for EVs.
Colin Rusch is the managing director at Oppenheimer & Company Investments and he joins us now from New York.
Colin, fantastic to have you with us.
Now, I read your notes. You were expecting a disappointment in the first quarter, but you lowered your delivery estimates to 468,000 vehicles and it
was significantly even below that.
How disappointed are you?
COLIN RUSCH, MANAGING DIRECTOR, OPPENHEIMER & COMPANY INVESTMENTS: It is good to see a kind of a flush on the expectations here.
So obviously, the first quarter was very disappointing from an overall volume, but it does point to some of the production issues that they had
with the arson in Berlin as well as the Red Sea supply chain issues.
But also, it allows them to reset the bar for investors on both margins and expectations for growth, and I think we will see those changes in
estimates, flow through on all the street's estimates here over the next couple of weeks.
CHATTERLEY: You mean they will lower them effectively. Does that have a further impact on the share price in your mind?
RUSCH: Absolutely. So, for the result that was as disappointing as we saw today, to see the stock only off five percent suggests that folks were
expecting pretty, pretty ugly results.
And so now we will see a bottom get built into the expectations. And so are our anticipation is that we will see expectations to get cut a little bit
going into the first quarter results, and then start to move higher from here.
And so investors will probably likely start to get a little bit more constructive and start thinking about buying the stock here at these
levels.
CHATTERLEY: So Colin, let's explain what's going on to some degree or help me understand because they have been cutting prices and that sends a signal
to a potential consumer, at least in my mind that, hey, maybe I will wait off and hand on fire, buying one because prices might come down even
further and then you have a sort of waiting game.
Have they got that price signaling mechanism, right, with the market because I think it is all the more important before they bring the Model 2
to market as well. Do they have the right mechanism, a messaging system going with potential buyers?
RUSCH: I think they've been working with it. They've been very tactical about how they use price as a lever to stimulate demand, and what we saw
this quarter is that they lowered prices and then signaled that they would raise prices starting at the beginning of the second quarter.
And so we've seen that happen and we thought that they would sell an awful lot of vehicles through the end of March, but the sell-through just didn't
happen. And so I think what we are seeing as investors or non-investors, but consumers are to wait for some of these newer models with the Highland,
which is the update on the Model 3, really come to market, which has some additional features.
[16:20:18]
Folks are also starting to look at FSD, which is the full self-driving and getting a chance to take a look at that before they commit to a vehicle.
And we are seeing the company, I think learn the lessons of lowering the price so it does allow consumers to wait and they are starting to reverse
that trend now.
CHATTERLEY: Part of the story for you and the growth opportunity is tied to what they are doing in AI, and ultimately how they monetize that, Colin.
What are your expectations there and when do you really expect to see perhaps concrete noises from Tesla and Tesla's CEO, Elon Musk in order to
perhaps provide some underpinning as you discussed to the share price.
RUSCH: Yes, it is a great question and I think it is important to differentiate between AI for the physical world and AI for digital assets.
And tesla in our view, is very much the leader in terms of AI for the physical world. All of their cars are collecting data and its uniform
camera data off of the vehicles of both drivable path for the vehicles, but also on human interactions on the street.
And so what they're doing is really starting to train their system around how to navigate the streets as the vehicle, but also starting to collect
data on how humans interact to really inform their robot program where they're starting to look at factory workers that are automated and really
moving that optimist program forward.
So for us, we think this is the early days. They've been able to monetize the FSD, this full self-driving program in a reasonable way. We think they
will actually recognize some deferred revenue here in the first quarter with the bigger issues around how this really starts to transform the
physical world and automating the physical world and how those programs start to come forward.
And then we see some of the first indications this year and we will start to see a lot more of it as we get into 2026 and 2027.
CHATTERLEY: Yes and to be fair, management have been very honest about that, haven't they, talking about sort of web-based AI training versus the
practicalities in the real world and connecting the dots on that. It is going to be interesting to see what they say about this and when.
Colin, great to chat with you. Thank you. Colin Rusch there.
Now, the Niagara region have Canada declared a state of emergency ahead of Monday's full solar eclipse.
It is one of the best areas to see it and visitors are expected to inundate that part of Ontario.
Here is Paula Newton with what to expect.
(BEGIN VIDEOTAPE)
PAULA NEWTON, CNN INTERNATIONAL HOST AND CORRESPONDENT (voice over): Niagara Falls is known for its stunning views. The number of people
expected to visit the famous waterfalls may soon become a spectacle in itself.
It's a prime viewing site for the solar eclipse on April 8th as it crosses North America, passing over Mexico, the United States and Canada.
MAYOR JIM DIODATI, NIAGARA FALLS, CANADA: Even though we get 14 million people every year, it's over the year. It's not all at one time. To get one
million at one time would be by far the biggest crowd that we've ever had.
NEWTON (voice over): Canada's Niagara region has declared a state of emergency so that emergency services can prepare for the influx of people.
Hotels, stores and restaurants are gearing up for the visitors, which are estimated to outnumber the locals.
Ontario's Niagara region has a population of nearly half a million people, but some business owners say they're looking forward to some extra company.
GABRIEL GABRIE, PIZZERIA OWNER: We're expecting to have a full house for the first time in a long time. We're coming up for the winter season, so
it's an exciting time.
NEWTON (voice over): By the time the eclipse is fully visible over Niagara Falls, at approximately 3:18 PM Eastern Time, it will be nearing the end of
its trek across the continent, which happens when it passes over the coast of Newfoundland and Labrador.
It will be the first total eclipse in Canada since 1979 and the last time the contiguous US will see one until 2044. So it's a sight many people say
they don't want to miss.
JASON HARLOW, UNIVERSITY OF TORONTO: Having that collective feeling of, oh, the sun's gone and seeing something that's so rare and so beautiful to see
the stars come out in the day. Yes, it's something that my kids will remember their whole lives.
(END VIDEOTAPE)
CHATTERLEY: And you can join us next Monday for the total solar eclipse as it travels from Mexico across America and into Canada. Our special coverage
starts at noon Eastern Time. That's 5:00 PM in London.
Now, Donald Trump is back on the campaign trail, challenging President Biden for his immigration policy, a live report from Wisconsin, where Trump
is hoping to win back voters with a familiar message.
That's next.
(COMMERCIAL BREAK)
[16:28:48]
CHATTERLEY: US President Joe Biden spoke today with China's President Xi Jinping for the first time since their meeting back in last November. The
White House described the call as candid.
It touched upon a number of topics, including technology, trade, and Taiwan. China says Xi emphasized the need for respectful dialogue and
avoiding provocation.
Finland would observe a national day of mourning on Wednesday afterward a 12-year-old died and two other children were seriously wounded in a school
shooting.
Finnish Police say they have a 12-year-old suspect in custody who is a fellow student of the victims. The Finnish news agency reports, the handgun
used was licensed to a close relative of the alleged shooter. The motive is unknown.
Severe weather is ripping through the eastern half of the United States. A new tornado watch has been issued for parts of Missouri, Illinois, Indiana,
and Kentucky. Forecasters are also warning residents that large hail and damaging wind gusts could be headed their way.
The German Football Association is redesigning the numbering on its national jerseys after claiming that the number 44 resembles the Nazi SS
logo. No player wears that number, but Adidas has been allowing customers to create custom jerseys with any two number. The company removed the
option after images with the number 44 were widely shared online.
[16:30:23]
And Donald Trump is back on campaign trail today after posting a $175 million bond to stop the seizure of his assets while he appeals a massive
civil fraud verdict. He's also visiting Michigan and Wisconsin, two critical battleground states he won back in 2016 and then lost in 2020. He
addressed a group of law enforcement officers in Grand Rapids with a focus on what he calls, quote, "Biden's border bloodbath."
And the former president will likely keep pushing that message at his upcoming rally in Green Bay, Wisconsin.
Kristen Holmes joins us from there now.
Kristen, Green Bay is what, 2400 kilometers from the Mexico border? Just how much is that sort of anti-immigration message going to resonate with
voters there?
KRISTEN HOLMES, CNN CORRESPONDENT: Well, that was the messaging that carried him to the White House in 2016. It helped me boost him in the
polls. It helped him really create a surprise win here in Wisconsin and in Michigan, and they are hoping that it propels him to the White House again
in 2024.
Now he might have more luck this time, even more luck than 2016 because there's recent polls showed that immigration is the top issue for voters in
a way that it just hasn't been in decades. So yes, he is not anywhere close to the border but this is a message that is resonating with Americans
across the country. And Donald Trump is really doubling down. He's also doubling down on his rhetoric on immigrants, essentially saying that they
are animals.
Take a listen to part of what he said.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Please don't call them animals, they're humans. I said, no, they're not humans. They're not humans. They're
animals. Nancy Pelosi told me that, she said, please don't use the word animals, sir, when you're talking about these people. I said, I'll use the
word animal because that's what they are.
(END VIDEO CLIP)
HOLMES: Now part of this is referring to violent crimes that some migrants have committed. Just to note, as we have said over and over again, all data
shows that migrants or immigrants are less likely to make crimes than actually civilians. But there have been a number of high-profile cases and
Donald Trump has really latched onto that. He is trying to stoke here. He is trying to talk to these voters and say that they are not safe because of
those who were crossing over the border.
Now it is resonating with some people. Now I'll note that he actually has not been here in Wisconsin since 2022, but there is a lot of enthusiasm
here today. There were people, hundreds of people lined up in the sleet, rain and snow for hours just to see him in roughly an hour. So there is
still some energy around him.
What they're really trying to do in a state like Wisconsin where he lost with a narrow margin back in 2020 is try to find voters who had supported
him in 2016 but in 2020 maybe they were done with him, maybe they were exhausted from all of the Trump of it. They want to bring them back into
the fold. And that's part of what they're hoping to do today.
CHATTERLEY: Yes, and Kristen, you're doing a great job there, being challenged by the speaker in the room given the energy that you're
discussing.
Trump is clearly on the campaign trail fresh from being further gagged or at least witnessing an extension of the gag order tied to the hush money
payments trial that's set to begin in a couple of weeks' time. He can now no longer talk about the judge in the case nor the judge's family. Do we
expect him to abide by those terms?
HOLMES: Well, he's going to try to say everything he possibly can, walk up to the line without crossing it. Remember when he's actually broken this
gag order in the past, not this one specifically but in another case in New York, he was ordered to pay a pretty steep fine. That did slow down his
rhetoric. He didn't change it. It just made it so that he was walking right up to the line.
I will tell you that I'm told by senior advisers that he is briefed on exactly what he can and cannot say it. And in fact, some of his posts have
actually gone through lawyers to make sure that they don't defy that gag order because he doesn't want to have to pay that fine. So if he can hold
it back, he will. Again, he has been briefed on what he can and can't say, but it is Donald Trump and he often just says exactly what pops into his
mind.
So if he is going to cross that -- break that gag order, he will do so knowing that he is saying something that was breached within that order.
CHATTERLEY: Yes. And in this case, I'm sure his defense is sort of praying that he doesn't step over the line. It's in his own best interests to keep
quiet here.
HOLMES: Absolutely.
CHATTERLEY: Kristen Holmes, thank you so much for that.
All right. Turning to Florida, which is now at the center of the U.S. political debate over reproductive rights. The state Supreme Court has just
cleared the way for one of the most restrictive abortion bans in the United States. The justices upheld the state's 15-week ban on abortion, a ruling
that will now allow a six-week ban to take effect within 30 days when many women do not even realize they're pregnant at six weeks.
[16:35:09]
President Biden slammed the ruling in a new campaign ad attacking Donald Trump on abortions. His team is quoting Florida voters in hopes of winning
the state in November's presidential election.
Joining us now from Florida is Carlo Suarez.
Carlo, just walk us through the ballot measure and how it may change the electoral landscape there as people perhaps base their votes on this
judgment.
CARLO SUAREZ, CNN CORRESPONDENT: Yes, that's the big question over the next couple of months because Democrats here believed that they can better
organize around this issue of abortion and that in turn will turn out the vote. Now whether it's enough to turn a pretty reliably red state like
Florida blue, of course we'll know come November.
Now this ballot amendment could expand and that's a big question. It could expand reproductive care here in Florida. The amendment which needs 60
percent of voters to approve it would prohibit the restriction of an abortion before viability. And that's key because were talking around the
24 to 28 weeks of pregnancy.
Right now abortion providers in Florida tell me that their focus is really on this six-week ban, which again takes effect in 30 days. Planned
Parenthood of South Florida told us that they are right now making more appointments available to women and that they're working with out-of-state
providers once this ban does take hold.
Florida is about to join several other states across the south that really severely restrict, if not ban abortions. About 84,000 women last year
received reproductive services in the state of Florida with a number of women coming to Florida from states with some of these restrictions.
Now earlier today, the secretary of Health and Human Services Xavier Becerra, he was here in South Florida for an event on reproductive health
care and he talked about these issues in the context of the debate over IVF treatment in the state of Alabama and the overall debate that this country
is having on a medication abortion services. Here's a bit of what he said.
(BEGIN VIDEO CLIP)
XAVIER BECERRA, U.S. HEALTH AND HUMAN SERVICES SECRETARY: No woman in America should live in medical apartheid. Now it has become clear that Roe
vs. Wade was more than just about abortion. It should be now clear that Dobbs was more than just about abortion.
(END VIDEO CLIP)
SUAREZ: All right, so, Julia, of course, we expect both of these issues to play out politically in Florida. Democrats in the state said that they are
going to campaign on this issue and then there's some Republicans in the state of Florida, including the Florida state speaker of the House, who
said point blank that he plans to campaign against this ballot amendment. And so Republicans in Florida are going to be put in a tough spot here
coming out in opposition to this ballot amendment if you believe some of the polling which shows that there is some support for some of these
abortion rights.
CHATTERLEY: Yes, that's the key, Carlo, as you said in the beginning, it will have an impact on women and families across the state. The question
is, does it ultimately change their decision on how they vote? Carlos Cuarez for now, thank you.
Now dozens of people have died after a fire broke out in an Istanbul nightclub. The club was under renovation. We'll have more details on just
what happened after this.
(COMMERCIAL BREAK)
[16:41:03]
CHATTERLEY: A nightclub fire in Turkey has claimed the lives of at least 29 people. The fire took place at the Masquerade Club in Istanbul which was
under renovation.
Scott McLean has more from the scene of the fire.
SCOTT MCLEAN, CNN CORRESPONDENT: Julia, this is a residential neighborhood. You see apartment blocks on this street. There's one coffee shop on the
corner. It's not the kind of place that you expect to find a nightclub and yet right across the street in the bottom floor of this 16-story tower,
there was one. And you can see here from the fire damage where the flames would have started on the lower floors and then raced up the side of this
building.
The nightclub called the Masquerade Club was actually closed at the time for renovations during Ramadan. There's workers inside at the time when
this fire broke out. And we spoke to one woman who lives in this building who said that she heard screams initially. She tried to get out her own
building and in the panic she initially couldn't open the door. She ended up climbing down the balcony and when she got out to safety, she realized
it was this one that was on fire and she said it was like hell.
Neighbors say that inside of the club it was sort of a bit of a labyrinth, went straight down several floors and there was really only one way in or
one way out. There had been now several people detained as part of the investigation, including the business manager of the club and the person
responsible for the renovations as well. There are also experts into occupational health and safety doing their own separate investigation.
And of course, there are going to be questions as to how this kind of a place, given the fact that there was really only one way in, one way out,
very tight kind of place where a lot of people would be all at one time, how this kind of place could have gotten signed off for a fire safety
certificate, which it had back in 2018, according to the Istanbul mayor -- Julia.
CHATTERLEY: And our thanks to Scott McLean there.
All right. We're going to take a break here on QUEST MEANS BUSINESS, but what do some out there, Taylor Swift and Christian Louboutin, all have in
common? I can tell you, they're all new members of "Forbes" list of billionaires. We'll have the magazine's senior editor to discuss, next.
(COMMERCIAL BREAK)
[16:45:52]
CHATTERLEY: Welcome back. The company behind brands like Calvin Klein and Tommy Hilfiger plummeted on a weak revenue forecast. PVH closed down more
than 22 percent. The apparel makers saying demand in Europe is particularly challenging. It said revenue could fall up to 7 percent this year. Analysts
were expecting a drop of around 2 percent, just to give you that sense.
Nathaniel Meyersohn is in New York and joins us now.
Nathaniel, to what extent has this to do with perhaps the bigger macro issues the other big retailers are facing versus the transformation plan
that PVH were trying to enact to help boost sales of Calvin Klein and Tommy Hilfiger? What's the waiting here?
NATHANIEL MEYERSOHN, CNN BUSINESS CORRESPONDENT: So, Julia, I think that it has to do more with the macroeconomic conditions and the kind of the
consumer slowdown that we're seeing in Europe and the United States, in North America. And PVH is not the only brand that has warned of a consumer
slowdown. We're hearing similar commentary from Nike and Lululemon here in the United States.
And you think back to 2021, 2022, these brands were doing really well when demand was really strong, supply was very tight, but there's been
definitely a reversal. People were going out and spending on clothing and accessories, but there's been more of a reversal, a shift to experiences
and services, as well as kind of an inflation hit. So that is impacting companies like PVH, Nike, and that's why we're seeing kind of the stock get
hit really hard right now.
CHATTERLEY: Yes. I was just looking at their North American business for Calvin Klein and it was down, what, 8 percent in the fourth quarter driven
by the wholesale business. What's taking place with that shift from the wholesale to the direct-to-consumer sort of fronting part of the business?
Because surely that's perhaps factoring into some of the challenges that they're facing here as well.
MEYERSOHN: It is, Julia. So yes, so direct sales, which are more profitable for brands like PVH, up 9 percent, but wholesale at department stores down
10 percent. And traditionally these brands have relied on wholesale distributors to get out their products when department stores were really
strong, but they're trying to rein in kind of some of these sales, get them more through their own stores and online.
But that's challenging for these retailers. Yes, the profits are higher, but we still do see consumers going to department stores and other
wholesalers. So those channels are still very important. And what we're seeing right now with PVH is how difficult it is to kind of manage the
shift. You want to increase your direct-to-consumer sales, but you don't want your wholesale revenue to decline 10 percent. So a difficult balance
for the company right now.
CHATTERLEY: Yes, and struggling to find it, at least for this moment.
Nathaniel, great to have you with us. Thank you for that update there.
Now "Forbes" has just come out with its annual list of billionaires. The usual names are on top as you would expect, to LVMH's Bernard Arnault,
whose family is worth some cool $233 billion. Then you've got the likes of Elon Musk, Jeff Bezos, Mark Zuckerberg, the usual suspects. There were also
some high-profile newcomers this year, too. Sam Altman, the CEO of OpenAI, the luxury shoe designer Christian Louboutin, and a woman who's made quite
a bit of news lately.
(MUSIC)
CHATTERLEY: "Mean" by Taylor Swift there, of course. And she really is one of a kind. The first musician to make the "Forbes" list of billionaires
based solely on her songs and performances.
Chase Peterson-Withorn is the senior editor of "Forbes," and he joins us now.
Chase, we'll talk about Taylor Swift, but let's just take a step back because the list is clearly expanded this year. And for the most part,
people are getting significantly richer, too.
CHASE PETERSON-WITHORN, SENIOR EDITOR, FORBES: Yes, that's right. It's a banner year for billionaires all around the world. We found 2,781 of them,
which is easily the most we've ever found.
[16:50:08]
And they are richer than they've ever been, billionaire wealthy, something like $14.2 trillion in total, which is $2 trillion more than just a year
ago. So great year for billionaires.
CHATTERLEY: Wow. A $2 trillion jump on 2023. Impressive.
Let's talk about the usual suspects. I mentioned it then. Normally what they're doing is sort of jockeying for position. Bernard Arnault of LVMH,
and then you have the likes of Elon Musk and Jeff Bezos, though I have to say the gap is widening between Bernard Arnault and what we're seeing from
Elon Musk, of course, in part due to the performance of Tesla.
PETERSON-WITHORN: Yes, that's right. So Arnault is $38 billion richer than Elon Musk in second place this year. And its LVMH stock is doing great. You
know, it was an up year for Arnault. And it's not going quite as well for Musk who's, of course, doing just fine, but Tesla shares are down from
their high. His investment in Twitter has been not the best business decision maybe from a pure dollar standpoint. And he lost some stock
options he might be having to give up. So it's not as good of a year for Musk.
CHATTERLEY: Yes. But as you said, they're still doing pretty fine. You could still leave count of the billions that we're talking about.
PETERSON-WITHORN: Yes.
CHATTERLEY: What I also loved in the report is that we've got a whole section on the billionaires getting rich from AI. And obviously we
mentioned Sam Altman of OpenAI but there's a whole host of them that are and have had a game-changing year in terms of wealth as a result of the
financial gains of AI and the optimism.
PETERSON-WITHORN: Yes, it's been -- it's a great year for billionaires. It's a really great year. If you have anything to do with artificial
intelligence, there are tons of new billionaires who have joined the ranks, who have AI companies or who are using AI heavily in their companies, or
people who are, you know, running businesses that are producing semiconductors or, you know, cloud storage space, things like that.
So, you know, AMD's Lisa Su is new. Sam Altman, you've mentioned. But also it's been really good for existing tech billionaires even, you know,
because the rising tides have sort of lifted their boats as well. And so the biggest gainer of all is Mark Zuckerberg, who, you know, Meta is not
directly an AI company, but, you know, they're making investments in AI and they're certainly benefiting from all this investor enthusiasm for
companies that will be able to employ AI.
And so, you know, Zach is $116 billion richer than he was last year. So if you have any attachment to AI whatsoever, you're seeing some dollar signs
this year.
CHATTERLEY: Yes. Just mention it, it might be worth it, and that will also perhaps add to your net wealth as well. It was nice actually that you
mentioned some of the women that are also gaining in this sphere as well, which I like. Lisa Su, as you mentioned, key among those at AMD. Talk to me
about Taylor Swift then because this is perhaps one of the most exciting new entrants, not the first musician, but the first to do this solely with
the songs that she's producing and obviously direct associations with that.
PETERSON-WITHORN: Yes, exactly. So there's more and more money to be made in music these days if you're at the top. You know, we've seen this huge
sales of catalogs over recent years, and also, you know, the money you can make touring can be pretty substantial, but, you know, most celebrities who
become billionaires, they have other business ventures. Kim Kardashian has Skims. Rihanna has Fenty.
But Taylor Swift is the first person to do it just off of raking in money touring, recording, and of course famously re-recording her way to the
billionaires list. So, yes, she's new and we have heard about $1.1 billion at, you know, age 34. So plenty of room to grow.
CHATTERLEY: She's not doing badly. How do you calculate all these individuals' worth, by the way?
PETERSON-WITHORN: Yes.
CHATTERLEY: Because obviously a lot of them have interest in stocks, but some of them simply don't. So how do you collate all the information to
judge?
PETERSON-WITHORN: Yes, it's a huge investigative project. You know, of course, we are looking at publicly traded stocks. We're also digging deep
into any sort of filings we can find, legal filings, regulatory filings, annual reports. We're interviewing these billionaires directly. We're
interviewing, you know, their business partners. We're interviewing industry sources and then we're trying to figure out what their public
companies are worth, but also their private companies, what their yachts are worth and their jets.
And I mean, you know, if there's anything out there that people are buying and selling, there are people who helped them buy and sell it. And so we're
talking to those people. So when we go to value a private island we call, you know, the private island guy that everybody is buying and selling their
private island to.
(LAUGHTER)
CHATTERLEY: This is true forensic accounting, Chase. And congratulations, by the way, to India, which set the record, didn't they, for 200
billionaires as well.
[16:55:02]
We've run out of time. Great to chat to you. Thank you for the work. Fascinating, Chase. Good to talk to you.
PETERSON-WITHORN: Yes. Thank you.
CHATTERLEY: OK, and this just into CNN, Donald Trump is asking for permission to file a motion for the judge in his New York hush money case
to recuse himself. Trump's lawyers argue the judge is conflicted by his daughter's political work. The judge already declined to recuse himself
when asked to do so last year. They're asking me again now that Trump is the presumptive Republican nominee. The trial, of course, is set to begin
on April 15th.
We'll see how far that goes.
Now coming up, we'll have the final numbers from Wall Street right after this.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back. And today we say goodbye to a business icon, General Electric. The company completed its three-way split. GE dates all
the way back to 1892 with the merger of Edison, General Electric, and Thompson Houston. Four years later, it became one of the original 12
companies listed on the Dow Jones. GE made everything from jet engines to light houses to household appliances.
(VIDEO CLIP OF GE 1979 AD)
CHATTERLEY: And as of today, GE Vernova, GE Healthcare and GE Aerospace publicly traded as independent entities. And all three dipped into the red.
The Dow Jones off to a slow second quarter, too, which perhaps explains it. That site nearly 400 points moving further away from that 40,000 level.
Perhaps crucial to this what's going on in bonds, the U.S. 10-year yield at the highest level since November, as traders continue to take chips off the
table, pulling back their expectations for that rate cut to happen from the Fed in June. Less probability of that happening after Jay Powell's comments
on Friday. Patience on rate cuts.
And that's QUEST MEANS BUSINESS. I'm Julia Chatterley. Thank you for joining us. "THE LEAD WITH JAKE TAPPER" starts now.
JAKE TAPPER, CNN ANCHOR: -- council right now as a member, a man who marched in Charlottesville alongside the Neo-Nazis and the white
supremacists, as the new organized effort taking place today to kick him out of that city council seat. Plus less than one week out from the solar
eclipse, what cities will have a full view of the event. Plus who will only see parts of the eclipse. We'll map out where you need to travel as you
scramble to find those especially designed glasses.
END
