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Quest Means Business
Hezbollah Warns Israelis to Choose Ceasefire or Pain; Parts of US Provided Missile Defense System Arrive in Israel; Oil Prices Fall on Signs Conflict Won't Disrupt Supply; Inflation Reduction Act a Boost to U.S. Jobs and Growth; Boeing Announces Plans to Raise Billions; China-Europe Rivalry Heats Up as EV Tariffs Loom; Pioneering CEOs Warn Against Rollback of DEI Initiatives; Smithsonian National Zoo Welcomes Two Pandas from China. Aired 4-5p ET
Aired October 15, 2024 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:17]
JULIA CHATTERLEY, CNN INTERNATIONAL HOST: Lots of smiles and clacking over at the New York Stock Exchange, but the market mood, a little dissimilar.
As you can see, the Dow off some eight-tenths of one percent. Chipmaker ASML cutting its forecast warning about China, and that's dragged the
entire sector lower. Those are the markets, and these are the main events.
Hezbollah, de facto leader, warning Israel to accept a ceasefire in Lebanon or face "pain."
Boeing plans to raise tens of billions of dollars in a bid to shore up its finances.
And what's black and white and cute all over, two pandas making the journey from China to the United States.
Live from New York. It's Tuesday, October 15th. I'm Julia Chatterley, in for Richard Quest and this is QUEST MEANS BUSINESS.
Good evening once again, and tonight, Hezbollah has a warning for Israel after Benjamin Netanyahu threatens to strike the militant group
"everywhere" in Lebanon. Hezbollah's de facto leader responded directly to the Israeli public calling on them to accept a ceasefire or face pain. He
said, without a truce, millions of Israelis could be displaced.
The Israeli prime minister vowed earlier that the IDF will strike Hezbollah without mercy, including in Beirut. Netanyahu was speaking at a military
base where four soldiers were killed by a Hezbollah drone this weekend.
Jeremy Diamond is in Jerusalem for us tonight.
Jeremy, good to have you with us. It's interesting to hear the deputy secretary general of Hezbollah talking about a ceasefire, and I'm assuming
that's not tied, as it, along has been to a ceasefire also in Gaza, but it doesn't sound that the Israeli prime minister is willing to entertain that
prospect, particularly after this weekend's drone attack.
JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, for now, at least, there is no question that these two sides do not appear to be headed on the path
of de-escalation. While Hezbollah has said that they are open to a ceasefire, it's not clear whether they would be open to doing what the
Israeli government ultimately wants them to do, and that is to not only stop firing rockets on Northern Israel, but also, of course, to move their
forces north of the Litani River, some 30 kilometers north of the Lebanon- Israel border.
And in recent days, I had an opportunity to go into Southern Lebanon with the Israeli military to see what this ground operation that has been
carried out over the course of the last two weeks actually looks like. It was an opportunity to not only get a sense of the objectives that they have
set what they have accomplished, but also, of course, to ask them tough questions about what they are doing and the impact it is having on
civilians.
And we should note that we reported from Lebanon under Israeli military escort at all times, and we did retain, however, editorial control over our
final report.
(BEGIN VIDEO CLIP)
DIAMOND (voice over): In the ruins of this Southern Lebanese village, amid flattened buildings, crumpled cars and mounds of rubble, there are also
Israeli soldiers. Two weeks into their ground operation, they now control multiple villages like this one, but for how long and how much deeper into
Lebanon will they go?
Israeli Humvees now slice straight through the border into the rocky terrain of Southern Lebanon.
DIAMOND (on camera): Nearly two weeks ago, Israeli ground troops came in here in the first major Israeli ground operation in nearly two decades, and
they're now taking us to see one of their positions inside Lebanon.
DIAMOND (voice over): Arriving on the ground, it's immediately clear, this village is now firmly in Israeli hands. Supplies are being brought in,
tanks are parked in a courtyard, and troops have settled into homes where Lebanese civilians once lived.
DIAMOND (on camera): So we're about two miles inside of Southern Lebanon, and you can see the destruction around us that's been wrought by this
ground operation, also by Israeli strikes over the course of the last year.
What we're also seeing is that this is a clear Israeli position that has been established with artillery fire now firing off in the distance. And
it's interesting because the Israeli military, of course, is describing all of this as limited, targeted raids.
But we are also seeing, of course, that they have established positions inside of Southern Lebanon for an offensive that they insist is not going
to go much deeper.
This is an established Israeli military position inside of Southern Lebanon. How is this a raid?
COL. ROY RUSSO, ISRAELI DEFENSE FORCES: Well, as the as you can see, and as you walk by, those outposts that we're right now holding are temporary.
There is no outposts designed, built and operated by the IDF. These are tactical, temporary, time limited.
[16:05:04]
DIAMOND (voice over): Colonel Roy Russo, the chief-of-staff of the 91st Division, says his orders are to clear the area closest to the border and
nothing more.
RUSSO: There is no objective that was designed to us to go into Beirut or Dahieh or something like that. No, we need to limit the threat at the
tactical range that enables Hezbollah to pose a threat on the communities.
DIAMOND (voice over): Deeper inside this former Hezbollah stronghold, Colonel Russo and his troops show us what they say that threat looks like.
RUSSO: You can see here anti-tank missiles. You can see rockets. You can see brand new AK-47.
DIAMOND (voice over): Multiple stashes of weapons which the Israeli military says Hezbollah plan to use in attacks on Northern Israeli
communities, a claim CNN cannot independently verify.
Israeli troops are now fighting to clear other villages like this one, to remove what they say is a key part of the Hezbollah threat that has
displaced some 60,000 residents of Northern Israel.
Soldiers here say Hezbollah has shown itself to be a tough, well-trained enemy carrying out tactical ambushes that have already killed 10 Israeli
troops.
Israel's war in Lebanon already stretches far beyond the battlefield of these border communities. More than 2,300 people have been killed in
Israeli strikes across Lebanon, including several hundred women and children, according to the Lebanese Health Ministry, and more than a
million people have fled their homes as Israel intensifies its attacks, ordering residents of a quarter of Lebanon's territory to evacuate.
DIAMOND (on camera): That is an enormous cost for this kind of ground operation, the kind of strikes that you guys are conducting.
RUSSO: Right. I think the responsibilities of Hezbollah, I think if they haven't launched an attack on October 8th, we wouldn't be here.
DIAMOND (voice over): As the cost continues to mount for Lebanon civilians, Colonel Russo says he believes the Israeli ground operation will be counted
in weeks, not months, but as smoke rises beyond the tree line, a reminder that this war is far from over.
(END VIDEOTAPE)
DIAMOND (on camera): And Julia, while Colonel Russo told us he believes that war -- this ground operation, will be measured in weeks, not months,
we are already hearing calls inside of Israel to continue, not only to continue this ground operation, but to expand it further. And that's not
just coming from the right wing in Israeli politics.
Benny Gantz, a former member of the Israeli War Cabinet, a member of the opposition, currently, he is calling for exactly that. And so we know, of
course, that there is a history of Israel starting limited ground operations in Lebanon, and ultimately that evolving into something much
longer and much deeper into Lebanese territory -- Julia.
CHATTERLEY: Yes. Those Israelis sensing an opportunity here with Hezbollah on the back foot after the past few weeks, perhaps.
Jeremy Diamond in Tel Aviv for us. Thank you so much for that.
Now, the Biden administration is warning the Israeli government about the humanitarian situation in Gaza. It sent a letter demanding Israel improve
the crisis in the enclave within 30 days, or risk a halt in US military assistance.
In the meantime, The Pentagon announced US personnel and parts of a missile defense system have arrived in Israel. It comes, as we learn, Israel has
also assured the United States it will avoid hitting Iranian oil and nuclear facilities in a retaliatory strike.
Jim Sciutto is in Washington for us now.
Jim, great to have you with us. I guess, a palpable sigh of relief from the White House that three weeks out from a presidential election, oil
facilities and nuclear facilities, for that matter, will not be targeted by the Israelis at this moment.
Do you think that delivery of the THAAD missile system, and let's be clear, a hundred US troops to operate it perhaps, is very much tied to that.
JIM SCIUTTO CNN ANCHOR AND CHIEF NATIONAL SECURITY CORRESPONDENT: It is possibly connected.
I mean, listen, the threat from Iranian missiles has been made clear twice this year, in April and just a couple of weeks ago. So Israel has certainly
shown the need for missile defense, a great deal of which is its own, but in both of those strikes, US assets were crucial in helping to shoot down
those missiles, and in fact, some of the missiles were shot down by US assets in the region, as well as those of other partners, including going
back to April.
So additional help, particularly as there is constant concern that each reaction to each side's attacks leads -- will lead to a greater
retaliation, that the scale, in other words, of each strike will grow each time.
So you know that missile defense likely was requested and needed by Israel prior to any discussions as to how it was going to respond to the Iranian
attack.
But listen, I mean, you and I have talked about this a number of times. There have been quite public disagreements between US and Israeli officials
on a whole host of things in terms of the conduct of the war in Gaza and Lebanon and elsewhere.
[16:10:00]
So here is a disagreement on the scope of Israel's response that may be resolved, right, because we know that US officials were not happy with the
prospect of, for instance, striking Iranian nuclear facilities or perhaps oil facilities.
So if it is resolved, as the reporting indicates, that would be something we haven't seen in sometime between these two allies.
CHATTERLEY: Yes, and we've also seen both Biden and Kamala Harris talking about the need for a ceasefire.
SCIUTTO: Yes.
CHATTERLEY: So it's interesting to see the deputy secretary general now of Hezbollah saying, look, you need to agree to a ceasefire, or you're going
to face pain at a time when the Israelis are very much on the front foot as far as Hezbollah is concerned.
Do you think, as a result, any closer even to a ceasefire in Lebanon? Because up until now, really, Hezbollah has tied a ceasefire with them to,
or at least across the border, to a ceasefire in Gaza too?
SCIUTTO: Yes, it is hard to see evidence that we're closer to such a ceasefire. Are we further away than we were yesterday? I suppose that's the
question.
I mean, you have this constant effort. You'll often hear from Israeli officials this phrasing, escalate to de-escalate, right? Reestablish
deterrence, and then once you establish that strength, and perhaps the conditions will be set for a ceasefire.
But listen, we've seen quite aggressive military action in Gaza, and the ceasefire negotiations there appeared and by the way, that has that other
piece, which is the hostage release deal, as those many dozens of Israeli hostages continue to be held there, and that ceasefire talk has gone
nowhere in a number of weeks.
So it's not clear if there's any credible progress towards a ceasefire with regards to Lebanon. And you see, for instance, Jeremy's piece there, and
the presence of Israeli ground forces in Lebanon, it doesn't look like they're leaving anytime soon.
So, I mean, we haven't seen the public evidence of that -- of those cease fire talks moving forward in any way.
CHATTERLEY: Yes, and as Jeremy was saying, perhaps even more support in Israel for continuing to tackle Hezbollah rather than less.
Jim, always great to get your wisdom. Thank you.
SCIUTTO: Thank you.
CHATTERLEY: Jim Sciutto there.
Now on a programming note, last Wednesday, we ran a report that showed some script in Farsi and Hebrew on a poster in Tehran. There was a
mistranslation of the Hebrew text on the poster, and we do regret that error.
Now, energy prices retreated after those reports that Iran's oil fields are safe, at least for now. WTI and Brent crude both down by around four
percent as you can see there. The International Energy Agency is also predicting an oil surplus next year.
The situation in the Middle East has had a limited effect on supplies, and weak demand in China in particular has also helped keep prices down.
Helima Croft is the Global Head of Commodity Strategy at RBC Capital Markets, and she joins us now.
Helima, there's clearly lots of angles here, but there is relief, palpable belief, I think, that you can see in the market that there appears to be
some kind of agreement not to target oil infrastructure. What's in the price today in terms of geopolitical risk, first and foremost, and then
we'll break it down to the other drivers.
HELIMA CROFT, GLOBAL HEAD OF COMMODITY STRATEGY, RBC CAPITAL MARKETS: Well, I would just say the geopolitical risk premium has evaporated with that
"Washington Post" story.
Now what I think we don't know is what an Iranian response will look like to what is the impending Israeli strike. I mean, "The Washington Post"
article did indicate that a strike on military facilities is definitely on the table. You could potentially have senior Iranian personnel targeted.
And so the question is, does Iran simply say, okay, like in April, this period, back and forth, with Israel is over for now, or do we see further
escalation? Because I was in Washington last week, and even that "Washington Post" story indicated that the Israelis have not entirely taken
off a strike on Iranian oil facilities off the table. It's just not in this current round that they are planning.
So the question is, if you have escalation, is oil potentially caught in the crossfires? Or are we done with this phase? Are we moving to de-
escalation when it comes to Iran-Israel? We simply don't know that yet.
CHATTERLEY: Yes, it's tough to -- it's tough to trade on that. You can rule nothing out. What about US efforts, as an aside, to sanction shipping
companies and trading houses involved in Iranian oil trade. I mean, I sort of watched the market move not at all when, when that was announced. There
is sort of deep skepticism, I think that that will successfully limit their export operations at all. What do you make of those efforts?
CROFT: Right. I mean, there is significant sanctions architecture in place. I mean, the White House has the tools at its disposal of secondary
sanctions to significantly restrict the amount of oil Iran is allowed to export, and so I'm not sure market participants looking at the selective
sanctions on ships and trading entities are going to think that really moves the needle.
It is really a question about how much does Washington really want to enforce the maximum pressure sanctions from Trump that still remain on the
books.
[16:00:02]
So I think there is some skepticism, because to date, the Biden administration has not seen particularly inclined for rigorous sanctions
enforcement effort when it comes to oil.
The Biden administration has been very focused on keeping oil on the market and keeping oil prices contained. Hence, a lot of the negotiations with
Israel were around don't hit energy facilities. They are very worried about an oil price shock.
CHATTERLEY: Yes, no White House wants gas prices to spike three weeks out from a presidential election, bottom line.
CROFT: Right.
CHATTERLEY: Into the mix now, we've got OPEC as well cutting its global oil demand forecast. I think it was the third consecutive month that we saw
that.
CROFT: Right.
CHATTERLEY: There is also been a lack of clarity over Chinese stimulus and the timing and the scale of that, too.
CROFT: Right.
CHATTERLEY: And that's sort of all feeding into the story as well and then --
CROFT: That is weighing on the market.
CHATTERLEY: Yes.
CROFT: Absolutely. And the question about, will OPEC begin returning barrels in December? There had been back and forth about whether Saudi
Arabia was going to sunset its one million barrel a day unilateral cut faster than they planned to in June because of issues around compliance
with Iraq and Kazakhstan.
So the market has been very nervous about the demand outlook, about potential oversupply next year, and they really were caught off guard by
this run up in prices because of renewed geopolitical concerns.
So I think there are people in the market that want to wind the clock back a couple of weeks and say we're done with this geopolitical story, but the
question is, are we really done? I think we'll know in the next few days whether we can really say for now the Iran-Israel confrontation is in the
rear view mirror.
CHATTERLEY: Yes, but not right now.
Helima Croft, thank you so much. Great to have you on the show.
CROFT: Thank you.
CHATTERLEY: Now, I've said it several times already in the show, we are in the final sprint in the race for the White House. Donald Trump and Kamala
Harris both set for high profile events on Fox News. You heard me right.
The discussion on that, next.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to QUEST MEANS BUSINESS.
Donald Trump says he is planning to implement some of the highest tariffs in history if he is elected. The former president took questions at the
Economic Club of Chicago at an event hosted by Bloomberg. He says the tariffs are necessary to protect the US auto industry.
(BEGIN VIDEO CLIP)
DONALD TRUMP, FORMER PRESIDENT OF THE UNITED STATES: What am I going to do? Negotiate with Mexico or China, you're not going to get anything from them.
I said, I'm going to put a one hundred, two hundred, or three hundred.
I'm going to put the highest tariff in history, meaning I'm going to stop them from ever selling a car into the United States.
[16:20:10]
CHATTERLEY: Kamala Harris, meanwhile, is sitting down for an interview in Detroit with the radio host, Charlamagne tha God, his program, "The
Breakfast Club," is popular among Black Americans. Recent polls show that Trump has made incremental gains with that demographic.
And there was an unusual turn last night, too during Trump's townhall in Pennsylvania. He abruptly stopped taking questions and became something of
a DJ. The former president proceeded to dance for more than 30 minutes. Vice President Harris then posted on X, "Hope he's okay."
Fox News will be at the center of the race tomorrow. Trump will participate in a townhall focused on women's issues, hosted by the right leaning
network that will be taped this evening and will air tomorrow morning.
Kamala Harris will be interviewed by Fox on Wednesday night. That network, of course, hasn't always been so friendly to Democrats.
Brian Stelter is with me now.
Brian, great to have you with us. I spoke to the pollster, Frank Luntz, yesterday on my show, and I said, look, three weeks to go, how do you win
the votes that you need to win the election and convince those perhaps that won't vote at all to get to the polls?
And he said, Trump should stop talking period, and Kamala should speak to news sort of niche outlets, and those tackle those people that sort of
avoid the news in general. So if that's true, why is she speaking to Fox News?
BRIAN STELTER, CNN CHIEF MEDIA ANALYST: I think she's trying to leave no stone unturned. She is trying to speak to a wide array of media outlets,
some of which are really not in the news business at all. She's reaching out to podcasters, to radio hosts, to live streamers, and in many ways, she
is going for all of these different niches.
Some of it is about reaching people who avoid the news or cynical about the news, but I do think that upcoming interview with Fox News does belong in a
bucket all of its own.
That Fox interview is unique for the following reason: Fox is like going to the enemy camp for Kamala Harris. The network exists on a 24/7 basis to
demean and disparage her with only little bits of news in between all of that pro-Trump opinion.
So for Harris to go on to Fox, it's both a statement of courage, you know, at least to Democrats, she's saying, hey, I'm willing to go into the enemy
territory. But more importantly, for Harris, it's also a way to reach persuadable voters, because most of the people who she needs to reach,
they're not watching, you know, the outlet she's already been on. She has to venture into places like Fox to win over that final one or two or three
percent.
CHATTERLEY: Yes, you could call it a brave decision. The question is, do some of those clips get cut up and used by the right leaning media to
annihilate her just on little sections?
STELTER: Yes.
CHATTERLEY: I mean, that's the danger, isn't it. What about Trump on Fox News talking about women's issues with a female audience? I believe as
well, this could be interesting, too.
STELTER: An all-female town hall. That is right. That is also striking. Mostly what Donald Trump is doing is staying to right wing safe spaces.
He's mostly doing interviews in the right wing media bubble. That's the same bubble that Harris is trying to pop by being willing to go on Fox.
But I think the advice that Frank Luntz was talking about makes a lot of sense, and Trump is violating that by, for example, talking with the
Bloomberg editor today in Chicago at the Economic Club. Trump is doing interviews that seem sometimes random or unorganized, where there's not
always a clear strategy about who he's trying to reach and if he ends up losing the election, we will look back and look, for example, at last
night's random town hall that turned into a dance party, and we, people will say, oh, well, this was clearly not very organized in the final
stretch.
I feel like when I look at Harris' media strategy, I see a reason behind every single event she's doing; with Trump, maybe not quite as organized.
CHATTERLEY: I mean, you definitely can't call that a friendly moderator if you're talking about Mr. Micklethwait, over at -- the chief editor of
Bloomberg.
STELTER: That's true.
CHATTERLEY: I mean, that was -- that was always going to be a tough interview, and yet the audience was clapping at times. He was very Trumpian
in that interview.
STELTER: That's true.
CHATTERLEY: But what do you make of the dancing, by the way? Because there were two people taken ill. It was an impromptu dance session because I
think people were leaving, because there were delays.
So there's perhaps some justification for why you would decide to end the town hall and do something else, but 40 minutes of dancing and music is
another interesting choice.
STELTER: Yes, it is confusing. Maybe, he just didn't want to answer questions. I actually was glad that this kind of went viral today for the
following reason.
There is a lot made of Trump's dark messaging and sometimes, in some cases, racist anti-immigrant messaging, but we also need to recognize why his fans
love him. Why is there such a loving relationship? Why is there such a deep connection?
And when he's up on stage dancing to those greatest hits, when he seems to be having a good time with the audience, that actually does speak to the
love that is experienced between Trump and his audience. It's a very unique relationship in American politics.
So I know his haters are looking at that video and saying it looked really weird, but to his fans, it's something that creates a strong connection.
[16:25:05]
CHATTERLEY: It's such an important point. Don't discount it just because perhaps the other candidate asks him if he's okay in this circumstance.
It's interesting.
Yes, we've made that mistake before, I think, or some have.
Brian Stelter, always great to chat with you, sir. Thank you.
Now, a new report claims that the US Inflation Reduction Act could create 600,000 jobs over the next five years. The analysis was conducted by the
clean energy group, E2.
It says the project has announced since the IRA was signed, would add more than $230 billion to the US economy. The Inflation Reduction Act is the
largest investment in clean energy in US history.
Donald Trump says he pulled back the law's unspent dollars "something that E2 says would hurt the economy." Trump went after the Inflation Reduction
Act again at that event we were just discussing today.
(BEGIN VIDEO CLIP)
DONALD TRUMP, FORMER PRESIDENT OF THE UNITED STATES: Biden went two years with no inflation because he inherited from me, and then they started
spending money like drunken sailors. They spent so much money, it was so ridiculous the money they were spending.
They were spending on the green new scam, a green new scam, the Green New Deal. You know, it was conceived of by AOC plus three.
(END VIDEO CLIP)
CHATTERLEY: Bob Keefe is the executive director of E2 and the author of "Clean Economy."
Now, Bob, fantastic to get you on the show.
You carried out the survey to mark what, two years actually since the IRA was signed, the Inflation Reduction Act, but it was very much focused on
clean energy. Just explain why in your words, it wasn't a scam, to use the former president's words and that and the actual impact that you see it
already having.
BOB KEEFE, EXECUTIVE DIRECTOR OF E2 AND AUTHOR OF "CLEAN ECONOMY": Well, thank you, Julia.
Look, I think you could say the IRA is already an unmitigated success story. I mean, my organization, E2 has been tracking clean energy projects
around the country since the IRA was passed two years ago.
What we know is that there are more than 300 major clean energy projects and factories coming out of the ground now in America, electric vehicle
factory, solar panel plants, wind turbine parks makers, heat pump manufacturers, hydrogen hubs now and offshore wind and offshore wind ports.
When was the last time we've seen that kind of investment in America? And it's not just tax money, it's not just grants. These are companies from all
around the world investing in America now, because we finally, finally, finally decided to do something about climate change in this country.
CHATTERLEY: So let's say the unspent dollars, as the former president was talking about, are then removed. What would be, and you sort of talk about
this in the report and in subsequent surveys, what would be the jobs, the wages, the investment impact if some of that then was repealed?
KEEFE: Well, Julia, we just polled more than 900 clean energy businesses around the country, and what they've said is 85 percent of them said the
IRA is important, or very important to their business; 53 percent said that they would lose business if it was repealed or rolled back; 21 percent said
they'd have to lay off employees; 11 percent said they'd have to close or be forced to relocate to another country.
So we already know that the IRA is working. It is creating jobs, driving investments all around America. We now know what will happen if it goes
away, which is companies will cut back, workers, will lose jobs, and frankly, America would become less competitive in what is expected to be a
$23 trillion global marketplace for clean energy goods.
CHATTERLEY: You know what's also stood out to me and the issue of climate change, and tackling climate change has become far more politicized in the
last two years, which is unfortunate, yet, when we look at some of the data that you've produced as a result of these surveys, the three states that
have benefited most actually from the IRA, Michigan, Georgia and North Carolina.
So for the most part, we're talking about red states actually, that have benefited, at least to a greater degree, for the most part, than some of
the blue states. Is that clear to the people in those states, even if there are businesses there that perhaps are involved in less clean energy and
therefore have suffered also?
KEEFE: Well, look, when you look at those 350 major projects around the country, Julia, something like 60 percent of them are in Republican
congressional districts.
CHATTERLEY: Yes.
KEEFE: As part of the book, I traveled through Georgia and North Carolina, South Carolina, other parts of the country. And what I would say is that
there's nothing political, there is nothing partisan about creating jobs, driving economic growth, bringing new opportunities to areas around the
country that, frankly, were bypassed by previous economic transitions.
You know, I went down to Dalton, Georgia, the congressional district of Republican firebrand, Marjorie Taylor Greene. That's where a Korean company
called Qcells is building one of the biggest solar panel factories in the western hemisphere, creating 4,000 jobs.
Go on the other side of Georgia and Hyundai is investing in its biggest EV factory in the world. It is going to employ something like 8,500 Georgians,
or look to the cornfields of De Soto, Kansas, where a Japanese company, Panasonic is building a battery factory at the site of what used to be a
munitions plant during World War Two.
It's going to be one of the biggest economic developments that state has ever seen and you're seeing this all over the country, Julia, red states,
blue states. There's nothing political. There should be nothing political or partisan about creating jobs, driving economic growth and making America
competitive.
CHATTERLEY: Yes, unfortunately, there shouldn't be, but there is. I guess you could argue that the White House has done a not substantial enough job
of arguing the point that there have been substantial benefits to this and you're pointing them out here.
But you know what was also interesting to me in the survey that you produced beyond the wages and the jobs benefits was the idea that this deal
helped reduce risk and that encouraged investment because it gave a path and it gave clarity for investors that, look, this is the direction we're
headed in, and you can invest. And I think that confidence is underestimated.
KEEFE: That's right.
CHATTERLEY: At this moment.
KEEFE: Well, look, before I do what I do, I was a business journalist for a lot of years and, you know this as well as I do, there's nothing that's
more important to companies than clarity about what the futures go and without market certainty, they don't invest. They can't invest. What the
IRA did was set tax policy that includes tax credits for clean energy investments for the next 10 years.
That's huge. That's a big deal. And that's why companies are now investing beyond government grants and loans and everything else. Companies, private
sector companies have invested more than $120 billion in private capital into these factories I'm talking about, and as long as we don't go
backward, that money is going to continue to flow to the United States.
CHATTERLEY: Yes, this for me is critical because companies have to invest for the next five to 10 years, not just based on an election cycle. And
I've seen the reaction in the Middle East and in Europe where they say, look, we actually can't compete with what was created in the United States.
So that's the key for me.
Bob, great to chat to you, sir. Thank you so much. Interesting survey.
KEEFE: My pleasure.
CHATTERLEY: Thank you.
KEEFE: Thank you.
CHATTERLEY: All right. Coming up, Boeing announcing plans to reach fresh funds as its crises show no sign of going away. That's next.
(COMMERCIAL BREAK)
[16:35:38]
CHATTERLEY: Hello, I'm Julia Chatterley, and there's more QUEST MEANS BUSINESS in a moment when we look at Boeing's cash crunch as a costly
strike adds to the plane maker's problems. And two top black CEOs warning companies against abandoning diversity initiatives after a conservative
backlash. But before that the headlines this hour.
The first day of early voting in Georgia is underway for November's presidential election. And there has been a record-breaking turnout. A
state official says more than 250,000 votes have been cast as of 4:00 p.m. local.
About 160,000 homes and businesses in Florida are still without a power after Hurricane Milton. The storm made landfall nearly one week ago. About
half of those outages are in Hillsborough County where the city of Tampa is located. 24 people in Florida lost their lives due to the storm.
North Korea blew up two major roads that once linked it to South Korea. They've not been used for years. It's mainly a symbolic gesture given the
border between the two countries is heavily fortified. A few days earlier, the North claimed South Korea flew propaganda drones over Pyongyang.
Lufthansa has been hit with a $4 million fine in the U.S. for civil rights violations. The airline prohibited 128 Jewish passengers from boarding a
connecting flight based on alleged misbehavior by some of them. The U.S. says the passengers who were mostly dressed in orthodox garb were penalized
as a single group. Lufthansa denies discriminating against anyone.
Boeing says it plans to raise tens of billions of dollars while confronting several crises. The most pressing one now is a month-long strike that has
shut down one factory. The acting U.S. labor secretary met with both sides on Monday. Talks broke down last week and the company is burning through
cash.
Vanessa Yurkevich is with us now.
Vanessa, I read earlier that Boeing was already burning $1 billion a month in cash even before this strike began. What is their financial situation
today? And do we have a real sense of how much money they need to raise?
VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Yes, this is a financially strapped company and this morning's regulatory filing
essentially illustrates just how bad it is. They're borrowing about $10 billion from banks and then they're trying to sell about $15 billion in
stock and debt. And this really caps off what has been a really rough week for Boeing.
Just last week on Tuesday talks broke down between the union and Boeing which essentially has prolonged the strike even longer. And one estimate
puts the losses for Boeing and workers at about $5 billion in just the first month. And then on Friday, you have a double whammy, a judge
essentially not ruling on a guilty plea that Boeing had made with the Department of Justice. They would've settled for hundreds of millions of
dollars over two fatal crashes of their 737 MAX jets.
Instead, the victims, the family's -- victims' families wanted $25 billion, but now with this sort of non-ruling, they could have to pony up more
money. And then that same day, Boeing announcing 10 percent of their employees are going to be laid off in the next couple of months. That's
about 17,000 employees. And then just today, Boeing essentially saying we need more cash. They are about $33 billion in debt and that has been
something that Boeing has really struggled with.
And of course, this strike, Julia, just making things so much worse for the company.
CHATTERLEY: Yes. And they were already dealing with production concerns and production delays, which is going to have a financial impact. And if you're
getting rid of 17,000 people in jobs, that's going to have a knock-on impact, too.
What is the hope of ending this dispute with the unions? I mean, it's clearly not a silver bullet, but it is crucial at this moment, I think,
particularly for confidence and some degree of optimism.
YURKEVICH: Absolutely. And sort of the big guns came into town on Monday. You had acting labor secretary Julie Su who made the trip out to Seattle to
meet separately with the union and with Boeing. The union president telling us that he met with Julie Su, she met with the bargaining team, and she
really wanted to try to understand what the roadblocks were in these negotiations.
[16:40:09]
The two sides don't have plans to get back to the negotiating table but of course Julie Su coming to town is significant. She has helped avoid several
strikes as well as helped settle several strikes. One on the West Coast with the West Coast dock workers last year. She helped avert -- she helped
the UAW and the big three automakers, start to get talks going again, and then just last week or a week or two ago, she helped avert the East Coast
and Gulf Coast -- she helps settle rather the East Coast strike that was happening here with the ports, Julia.
So maybe there'll be some movement soon, maybe not. It's really of course up to these two sides and sometimes it's all about who blinks first, Julia.
CHATTERLEY: Yes. Boeing certainly hoping for some blinking.
Vanessa Yurkevich, great to have you with us. Thank you.
Now, a record 1.7 million electric and hybrid cars were sold last month, according to the research firm Roe Motion. That's more than 30 percent
increase from September last year. The numbers from Roe Motion show EV sales accelerating in China and stalling in Europe.
Anna Stewart looks at how that's playing out to the Paris Auto Show which just wrapped up its second day.
(BEGIN VIDEOTAPE)
ANNA STEWART, CNN INTERNATIONAL CORRESPONDENT (voice-over): Driverless cars, monster trucks, and electric vehicles. This year's Paris Auto Show
promises to be a return to former glory. Fresh from launching its new robotaxi, Tesla returns for the first time in six years. But the main focus
will be competition between China and Europe.
STEFAN BRATZEL, DIRECTOR, CENTER OF AUTOMOTIVE MANAGEMENT: Now a few Chinese manufacturers in this motor show and so I'm quite interested what
their innovations are.
STEWART: Europe's car industry is in crisis. Stellantis, BMW, Mercedes, and Volkswagen, all recently issued profit warnings.
CARLOS TAVARES, CEO, STELLANTIS: We are going to be challenged, and I would say brutally challenged, by the Chinese offensive on the European market.
STEWART: The European Union says China is flooding the market with low-cost electric vehicles. They recently voted to impose tariffs up to 45 percent
on EVs made in China.
BRATZEL: I think it's not a really good idea because, of course, we will have a kind of a chain reaction on the very important Chinese market.
STEWART: China has already hit back, targeting French brandy and threatening tariffs on imports or pork products and large-engine vehicles.
OLA KALLENIUS, MERCEDES CEO: Yes. This is a very tough market environment.
OLIVER ZIPSE, BMW CEO: Growing regulation to protectionist measures.
OLIVER BLUME, VOLKSWAGEN GROUP CEO: Our environment is challenging.
STEWART: For Volkswagen, that could mean closing factories in Germany for the first time in the company's history.
BRATZEL: We in Germany won't be cheaper, but we have to be as much more innovative as we are more expensive.
STEWART: This week in Paris, it's all glitz and glamour for Europe's carmakers. But under the bonnet, the struggles may be just beginning.
Anna Stewart, CNN, London.
(END VIDEOTAPE)
CHATTERLEY: Now the former CEO of Merck and American Express have a warning for companies that are cutting their diversity initiatives. They say you're
losing out on some of the best talent. That story next.
(COMMERCIAL BREAK)
[16:46:14]
CHATTERLEY: Welcome back. The former CEOs of Merch and American Express say companies that turn their back on diversity efforts will pay a price. Ken
Frazier and Ken Chenault say their businesses will miss out on top talent and deny people opportunities. Their warnings come as diversity programs
face legal and political attack from conservatives. Chenault and Frazier are pushing their own hiring initiative called OneTen, which aims to create
jobs for people without college degrees.
Nathaniel Meyersohn spoke to the former CEOs and he joins us now from New York.
This is so important because DEI has become a dirty, highly politicized word. And we've seen some very high-profile examples. Bud, Bud Light, I
think would be a great example of what we've seen in recent months. How are they defining DEI and how are things changing?
NATHANIEL MEYERSOHN, CNN BUSINESS CORRESPONDENT: Yes, Julia, I think that's one of the central questions. What is DEI? There's so much kind of
misinformation. It has become, as you say, a dirty word, kind of a politicized word.
You know, I think opponents say that DEI is reverse racism and it's hiring, you know, just because somebody is black or just based on race. But that is
not really what DEI is. DEI is about promoting kind of inclusion and equal opportunities for people based on challenges that they face. Whether it's
the color of their skin or the neighborhood they grew up in, or the school they went to.
It's designed to encourage representation and equal opportunity among a broader pool of talent. You know, than traditionally which has just been
white men. And the kind of the big challenges that companies are facing right now is that there's so much pressure on them from right-wing, you
know, political leaders and legal threats. And so they're having to kind of pull back some of their DEI initiatives and their DEI policies, companies
like Harley Davidson, John Deere, typically companies with more politically conservative customers and with custom and brands that are kind of new to
DEI and really haven't had it imbedded in their companies for that long.
CHATTERLEY: I mean, the point is there shouldn't be a compromise here. You can still have a meritocracy, you just have to be a bit more open about how
you search for candidates, where you search for candidates, and that might just take a little bit more time.
MEYERSOHN: Right.
CHATTERLEY: I mean, I remember Boston Consulting Group did a survey saying, look, it does help the bottom line. Diverse businesses do do better.
MEYERSOHN: Yes. You know, Boston Consulting Group has found that, you know, DEI programs, they boost the bottom line. They help attract talent. And
companies to cut it, cut these DEI programs really face big risks and could hurt their businesses if they pull back.
Julia, you mentioned meritocracy. I think Ken Chenault kind of made an interesting point about why DEI and why merit actually worked hand in hand
together. They support one another. You know, merit, we think of merit as promoting the best people, but the definition of merit is really kind of
not balanced Chenault told me. You know, 50 years ago, the people who are being promoted and the people who were, quote-unquote, you know, the
meritocracy was just, you know, white people (INAUDIBLE) was flawed then.
It's not that people now are being kind of hired or promoted just because of their color -- the color of their skin. But it's attracting talent from
a wider array of people that we've ever -- than we've ever had before.
CHATTERLEY: Yes. I came from the financial and banking industry and what meritocracy did there for management.
MEYERSOHN: Right. Exactly.
CHATTERLEY: Quite frankly. Yes. That's a whole different conversation.
Nathaniel, great conversation with these two CEOs and it does need promoting further I think and understanding better. Great to have you.
Thank you.
[16:50:06]
Now, two pandas from China have arrived at the Smithsonian's National Zoo in the United States. David Culver went to great lengths to follow their
journey to Washington -- oh, there you go. That's next.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: You're not only putting on just the suit by itself. You're also going to put panda's urine and poop on your arm so you will
have the scent.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back. Pandemonium in Washington, D.C. Today the Smithsonian National Zoo welcomed to unbearably -- see what I did there --
cut pandas from China. Bao Li and Qing Bao are both 3 years old.
David Culver was granted firsthand access.
(BEGIN VIDEOTAPE)
DAVID CULVER, CNN SENIOR U.S. NATIONAL CORRESPONDENT: They're saying Bao Li and Qing Bao, have safe trip. You are getting a very rare look at the panda
sendoff here in China. I've never been this close to a panda, but there she is.
(Voice-over): A few hours earlier a private farewell for the 3-year-old panda pair and the ceremonial transfer of care from China to the U.S. We
got here a few days ahead of the sendoff.
We made it. It's a long journey.
(Voice-over): Traveling to Chengdu and meeting up with panda keepers from the Smithsonian's National Zoo.
Thanks for making time. I know you guys are busy, Mariel, Trish.
(Voice-over): We catch them just outside the panda quarantine zone.
UNIDENTIFIED FEMALE: This was what I worked for and it feels so surreal.
CULVER: The majestic mountains of Sichuan Province or the natural habitat for these beloved creatures.
The chances of us actually seeing one up here we're told are quite slim.
(Voice-over): We're granted access to a reserve that tourists aren't allowed, joining researchers from the Smithsonian who specialize in panda
rewilding or efforts to reintroduce them to their natural habitat.
MELISSA SONGER, CONSERVATION BIOLOGIST, SMITHSONIAN'S NATIONAL ZOO: Part of the reason for putting them in an area like this and keeping them away from
people so that they're not acclimatized (PH) to people. You wouldn't want to release a panda and have them approach a village, for example.
CULVER: We're told we can meet some of the forest panda trackers, but first, we need to suit up.
All right, let's try it.
(Voice-over): A panda suit. Just in case we stumbled across a panda cub.
They don't want humans to become part of their everyday routine. So it's for that reason that we're suiting up to look like them.
[16:55:04]
Do it look like a panda?
UNIDENTIFIED FEMALE: Yes. You're not only putting on just the suit by itself. You're also going to put panda's urine and poop on so you will have
the scent.
CULVER: Sorry? Has that been on this suit before?
UNIDENTIFIED FEMALE: This is clean. It's been cleaned.
CULVER: Oh.
UNIDENTIFIED FEMALE: So if they sense on a certain area that a cub is nearby, they're going to put on the hood and just go into hiding.
CULVER (voice-over): Conservation efforts like these are funded in part by the Panda Exchange Program.
UNIDENTIFIED FEMALE: Are two guys that came over 20 years ago.
CULVER: Zoos like the Smithsonian's pay $1 million a year to host a pair of giant pandas, adding to the pressure.
BRANDIE SMITH, DIRECTOR, SMITHSONIAN'S NATIONAL ZOO: Just imagine, everything we do the entire world is watching and there's no margin for
error.
CULVER: Especially given how beloved pandas are in places like Chengdu. The creatures are larger than life here. And their most loyal fans stand hours
in line to catch a glimpse of their favorite ones.
It seems like everybody gets super excited. They've already got their positions.
(Voice-over): And there are panda influencers like A'Qiu, who posts content from his bedroom.
So you're into pandas.
UNIDENTIFIED MALE: I should -- sorry, before we start, can we just move one big panda to that one there?
CULVER (voice-over): Which doubles as his studio.
Why do you love them so much?
A'QIU: Cute. So cute.
CULVER: The pandas that go part of the exchange program from here in China to the U.S. What do you make of that?
A'QIU (through translator): This is an agreement between China and the U.S. and because I love my country and I love pandas, I support it.
CULVER (voice-over): The panda exchange or panda diplomacy dates back to 1972. President Nixon's historic visit sparking China to send pandas to the
U.S. And now to many other countries.
Months of planning to pull off this transfer. And in Washington renovations to make sure Bao Li and Qing Bao's new home is just right.
UNIDENTIFIED FEMALE: We've done some tree trimming in here also because we know they're going to climb. They love to climb.
CULVER: The zoo has been advertising pandas are coming and now they've arrived.
David Culver, CNN, Chengdu, China.
(END VIDEOTAPE)
CHATTERLEY: My favorite part that when David asked, do I look like a panda, and that enthusiastic yes. No, David, you didn't look like a panda.
All right, coming up, we'll have the final numbers from Wall Street right after this. Stay with us.
(COMMERCIAL BREAK)
CHATTERLEY: Just time for a quick update from Wall Street. U.S. markets are closing low. The Nasdaq falling 1 percent --
END
