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Quest Means Business
Overseas Visits to U.S. Drop in June; Original Hermes Birkin Bag Sold for $10 Million at Auction; Waldorf Astoria Bets Big on Luxury Residences. Lula Vows Reciprocity Against Trump's 50 Percent Tariff Threat; Trump's Domestic Policy Law Makes Cuts to Social Safety Net; Ukraine's Allies Meet as Russia Steps Up Aerial Assault. Aired 4-5p ET
Aired July 10, 2025 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:11]
PAULA NEWTON, CNN INTERNATIONAL HOST: The resiliency of these markets. I mean, look at that. You know, that's a pretty good day for the Dow,
considering how close it is to its record high. The NASDAQ holding on as well as the S&P shrugging off a lot of these tariff worries. Those are the
markets, and these are the main events.
Brazil's President threatens to retaliate if the U.S. implements 50 percent tariffs.
The number of international visitors to the United States falls in June.
And Jane Birkin's original Hermes bag sells for -- wait for it -- $10 million at auction.
Live from New York. It is Thursday, July 10th. I am Paula Newton, in for Richard Quest, and this is QUEST MEANS BUSINESS.
And good evening, everyone.
Tonight, Brazil's President vows to respond after President Trump threatens a 50 percent tariff. Luiz Inacio Lula da Silva convened an urgent meeting
of his Cabinet earlier. He previously said Brazil would retaliate. The 50 percent tariff is the highest rate President Trump has proposed on any
country this week, and would kick in next month.
Mr. Trump has cited what he calls a witch hunt against Brazil's former President, Jair Bolsonaro, who has bragged about his ties to the U.S.
President. Now, Bolsonaro is facing trial for allegedly attempting to stage a coup against President Lula. Our Isa Soares explains.
(BEGIN VIDEOTAPE)
ISA SOARES, CNN ANCHOR AND CORRESPONDENT: President Trump is using the economy as a political weapon. He has been saying that tariffs are about
leveling the playing field, that there is a trade imbalance and that the United States is being ripped off by other countries. In the case of
Brazil, that is not true.
President Trump yet is imposing a 50 percent tariff on the country. The reason you ask? A court case against former President Jair Bolsonaro, a
case which he says is a witch hunt in this letter and should end immediately.
So this is not about business, but about his buddy. The two have been friends since Trump's first term.
DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES OF AMERICA: Probably because of the relationship that we have, Brazil and the United States have
never been closer.
(JAIR BOLSONARO speaking in foreign language.)
SOARES (voice over): And they've been building on that relationship ever since.
In 2022, Trump supported Bolsonaro's bid for reelection.
TRUMP: So I strongly endorse President Bolsonaro. He will be your leader for hopefully a long time.
SOARES (voice over): And even though he lost to current President Lula da Silva, Bolsonaro came out for Trump ahead of the 2024 election in the U.S.,
praising their exceptional relationship when he appeared at a CPAC Convention.
TRUMP: President Bolsonaro, a great honor.
SOARES (voice over): Now back at the White House, Trump, using the weight of the office to help his buddy out. But why is Bolsonaro on trial?
UNIDENTIFIED MALE: They're getting into the Capitol tonight.
SOARES (voice over): Well, remember when Trump supporters stormed the Capitol? Brazil had its own version on January the 8th, 2023. Pro-Bolsonaro
protesters broke into Congress and the Presidential Palace.
I was there in the aftermath, and I personally saw the damage the rioters had done ransacking government buildings, destroying artifacts, including
art pieces, even setting some buildings on fire.
Prosecutors say they found a connection between the riots and Brazil's former president, and earlier this year. They charged Bolsonaro, along with
33 other people, in connection with an alleged plot to overthrow the government. Those accused deny the charges.
For his part, the Brazilian leader says his country has a right to reciprocate the tariffs and has refused to get involved in Bolsonaro's
court case, telling Trump to do the same.
LUIZ INACIO LULA DA SILVA, BRAZILIAN PRESIDENT (through translator): This country has laws, this country has rules and this country has an owner and
that's the Brazilian people. So save your judgments for your own life and keep them out of ours.
SOARES (voice over): Isa Soares, CNN, London.
(END VIDEOTAPE)
NEWTON: So for some context here, a 50 percent tariff on Brazil could raise prices on everyday goods. The U.S. runs a trade surplus with Brazil, that
is, Brazil buys more from the U.S. than it sells and major imports into the U.S. from Brazil include items like coffee and orange juice, prices in both
commodities jumped Thursday.
Key Brazilian industries could also face headwinds. Shares in airplane manufacturer Embraer fell on the news.
Uria Fancelli is a political analyst for CNN Portugal, and he joins me now from Sao Paulo.
Good to see you.
[16:05:08]
You know, to use a technical term, this is a political bun fight, not an economic one, apparently. I am really curious to learn from you how
Brazilians are seeing this? Do the majority feel that President Trump is interfering in their politics?
URIA FANCELLI, POLITICAL ANALYST, CNN PORTUGAL: Good evening, Paula. It is nice to be here.
Well, Bolsonaro and his supporters are trying to blame the tariffs on Lula, saying it is all because of his lack of pragmatism or this supposed -- or
Lula's supposed anti-Western stance, and at the same time, Lula's supporters, the left wing, they're blaming it all on Bolsonaro and they are
embracing a kind of discourse that is more expected from right wingers, so more nationalistic.
So we are seeing Brazilians really divided. It is a highly polarized country. We will have presidential elections next year in October, and
Bolsonaro, he can't run for office because he has been considered unable to run by the Brazilian Supreme Court, but he will probably have someone to
appoint to run against current President Lula.
NEWTON: So I hear what you're saying that the country is polarized and that's pretty much they see whatever is happening right now with the
tariffs through that lens, right, through the aperture of politics. Economically, though, which country do you believe would be the biggest
loser here? I mean, we just pointed out that, in fact, Brazil buys more from the United States than it sells.
FANCELLI: I think Brazil is actually a very easy target, because the argument used by Donald Trump about so-called trade injustices committed by
Brazil is completely detached from reality.
In 2024, Brazil actually ran a trade deficit with the United States of over $280 million and if we include services, the U.S. has had a surplus of more
than $250 billion with Brazil over the past decade. So among the world's major economies, Brazil is one of the few where the trade balance clearly
favors the United States. So it is an argument that simply -- it doesn't make any sense. And what does it signal to the rest of the world? I think
two things.
First, that trade on large scale is now being openly used as a tool of pressure over a country's internal decisions, including judicial ones, so
everyone should be aware of that, meaning no one is safe. And second, that if the target is the BRICS, it is worth noticing that both Brazil and India
have tried to maintain an image that is not anti-Western, unlike what China and Russia might be pushing.
They want to position the BRICS as an alternative bloc, not an oppositional one. But when Trump acts this way, it is only reinforcing the Global South
narrative, one that sees the U.S. as an unpredictable and increasingly aggressive, but Brazil is definitely the weaker side, the Brazilian exports
to the U.S. only represent less than one percent of total U.S. imports.
NEWTON: And I hear you on that, especially when it comes to the BRICS and how they have stood. It is not supposed to be against the United States,
but that is the way Donald Trump interprets it.
How much do you believe a tariff war, a trade war like this will influence Lula's government to further strengthen its relationship with China?
FANCELLI: I think it definitely brings Brazil and China closer. Lula will have to find a very smart way to respond. Donald Trump made it very clear
during his letter to -- on his letter to the Brazilian government, saying that if Brazil decided to impose -- to hit Brazil -- the U.S. with more
tariffs, then Trump would escalate even further.
So President Lula is now considering using an existing tool, the so-called Law of Economic Reciprocity as a way to respond. But for now, the Brazilian
government is holding off. They're waiting to see if this 50 percent tariffs will actually go into effect. So until August 1st, Paula, it is all
about watching and preparing. The big challenge for Brazil is this: How do you respond in a way that shows strength, but without shooting yourself in
the foot. No one wants to end up in a spiral of tit-for-tat tariffs that end up doing more harm than good, especially when you know you're the
smaller player in this equation.
Retaliation definitely is on the table, but if it happens, it will have to come in a very smart and strategic ways. For example, with Brazil, Brazil
is already talking about suspending patents of U.S. pharmaceuticals, which would open the door for local companies to produce generic versions of
expensive American medications.
[16:10:14]
NEWTON: Right. It is an option. But I hear you, it would be quite an escalation.
Uria Fancelli, thank you so much. Really appreciate your analysis there.
Now, the president's proposal for 50 percent tariffs on Brazil is the latest instance of him using tariffs as an economic weapon, but for a
political purpose.
On Sunday, he threatened an extra 10 percent tariff -- I remember I was just talking about this -- on any country aligning itself with what he
called anti-American policies of the BRICS nations. Now, it wasn't his first threat against the bloc. In November, he threatened a hundred percent
tariffs unless they commit to not creating a shared currency.
And in February he imposed tariffs on China, Canada and Mexico, ostensibly over fentanyl trafficking.
Alayna Treene is at the White House who has been consistently on the tariff beat.
The tariffs on Brazil, they won't be imposed until August 1st. So you just heard some of our analysis there, but it doesn't seem to me that there is
any common ground here. It is not like the other countries where there is an open negotiation and he might be using this, President Trump, as some
kind of negotiation tactic.
ALAYNA TREENE, CNN REPORTER: Yeah, I mean, there are a few huge differences with these tariffs to Brazil, particularly when you look at the flurry of
letters that President Donald Trump has sent to different countries in recent days.
One is that the 50 percent tariff that he is proposing to impose on August 1st is far higher than the tariffs that he has argued he was planning to
put on other countries. But then, of course, it is also the political nature of these tariffs.
The President wrote this specifically. He said that the way Brazil has treated former President Bolsonaro, a highly respected leader throughout
the world during his term, including by the United States is an international disgrace. And you're right, this quickly escalating dispute
because we've now seen, of course, Brazilian President Lula argued that they are going to respond, his country, in turn, with reciprocal tariffs of
their own if the President moves forward with these.
You know, it is unclear how they're going to get out of this because the President has seemed to make, you know, ending this prosecution of
Bolsonaro as the key to ultimately lifting these potential tariffs and that's the big issue, I think, here. And that's why I think these tariffs,
specifically this letter that he had sent to Brazil, is getting so much attention because of the nature of the political, you know, wanting to
intervene in political politics on behalf of an ally of the President.
And one thing as well, I think, is important to note here, important context, Paula, is that we actually did see Bolsonaro do an interview with
"The Wall Street Journal" a few months ago, and he argued that he was going to be, you know, or he, hoped I should say that this White House would put
economic pressure on the government of Brazil, the New President, Lula's government, to try and get him out of this, you know, some of these legal
challenges that he is facing.
And so all of that, I think, is why there is so much attention on this and also a lot of questions of one, how can this de-escalate? But also is the
President actually going to move ahead with this? And if he does, is there going to be a way out of this?
NEWTON: Yes, you make a good point. You wonder if the Trump administration is running, you know, the script of Bolsonaro and his allies, given what he
said quite bluntly to "The Wall Street Journal."
Before you go, I want to ask you about Congress' role in all of this and it is not just about the threats of tariffs on Brazil, but other proposed
tariffs. Congress is supposed to have the last word here. These tariffs aren't necessarily a national security interest and that's really the only
reason that the President on his own, is supposed to be able to impose these tariffs.
TREENE: That's exactly right. You know, the authority does lie with Congress to impose tariffs unless it is for National Security purpose and
we've really seen the President essentially ever since he began some of these trade wars and wanting to impose these tariffs on multiple countries,
this has been a key question and a key issue that has continuously come up that we've really seen this administration try to push the bounds of power
-- of executive power on.
Look, what we have now heard repeatedly from officials here at the White House and the broader Trump administration is that they believe it is the
President's prerogative. They believe he won a mandate in the election, that this is something that he gets to decide. They do still, you've seen
this in some of the policy papers on a lot of these tariffs that they do cite National Security concerns for the reasoning and the justification for
him moving forward with this, but there is no question, Paula, that we've seen a number of lawmakers on Capitol Hill argue that this is beyond his
authority and that, you know, wanting to look at this. But so far, we haven't really seen any significant challenges to kind of prove that he is
going to back away from this at this point.
But again, going back to my point about Brazil specifically, you're right, this is in relation to all of these tariffs. But I think that's why, again,
Brazil is so different here because if it really is a political nature for some of you know, him saying that he needs to end, that Brazil needs to end
the prosecution of Bolsonaro as the reasoning mostly for those tariffs, that is where perhaps Congress might have, you know, more justification to
try and fight some of these.
[16:15:11]
NEWTON: Right. I hear you, that it might actually be a test case for how much further he can go with these tariffs, and if he can go through with
them at all.
Alayna Treene for us, grateful to you.
Now, as Russia hits Ukraine with record-breaking airstrikes, Western leaders are trying to force President Putin to the negotiating table. We
will discuss a day of diplomacy after the break.
(COMMERCIAL BREAK)
NEWTON: U.S. continuing jobless claims have risen to nearly two million. That is the highest level since November 2021. Now, President Trump's
domestic policy law is set to make cuts to benefits that people use during hard times. That includes programs like food stamps and Medicaid.
In fact, CNN's Jeff Zeleny spoke to a woman in Missouri who relies on Medicaid for her daughter with cerebral palsy.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: It's not a luxury. This is not a luxury. I do not have my daughter enrolled on Medicaid so that we can have fancy things. I have
my daughter enrolled in Medicaid so that we can keep her alive.
I am worried that the red tape is going to affect our Medicaid because of just the oversight burdens. And that as a result. I am going to lose my
daughter.
(END VIDEO CLIP)
NEWTON: Now, this might come as a surprise to some. The U.S. actually spends a lot of money on social programs. Nearly 30 percent of its GDP as
of 2019, now, you'll note that's before the pandemic, led to big spending fluctuations almost everywhere in the world. The U.K. isn't far behind,
spending more than 24 percent of its GDP on social programs that year.
Now, Prime Minister Keir Starmer had to recently walk back a plan to cut disability benefits after facing a rebellion from Labour lawmakers.
Danny Sriskandarajah is the CEO of the New Economics Foundation. He is also the former CEO of Oxfam, and he joins us now.
Happy to have you with us.
Now, look, the economists have declared that Britain's social contract is fraying. They didn't say it was failing, though. Starmer's Labour Party has
been in government for a year now. Voters, though already grumbling, is the fragility of that social safety net something that Labour is always
expected to uphold? Is that really at the heart of the voters' contempt right now?
DANNY SRISKANDARAJAH, CEO, NEW ECONOMICS FOUNDATION: Absolutely. I think there is a lot of disappointment amongst an electorate that gave this
government a huge majority about a year ago, but since then, the Labour government has really struggled to make inroads into a cost of living
crisis that's been with us for quite a few years.
[16:20:11]
Britain had high inflation for several years and wages, especially for the lower end of the labor market, just weren't keeping up. And I think there
was a lot of hope that this progressive Labour government would do more to protect those at sort of the lower end of the economy and that just hasn't
been happening, and of course, for a whole bunch of other reasons to do with fiscal responsibility and the so-called fiscal rules, the government
has actually gone ahead and tried to cut benefits for the poorest people in the country, including those living with disabilities.
NEWTON: And in terms of that pressure on the social safety net, I mean, it is a phenomenon that will strike nearly every developed country. Starmer,
in fact, has spoken quite bluntly that if Britain is to defend itself from an existential threat and still grow the economy, there will be sacrifices.
Now you argue what is needed is a tax system for the 21st Century. What does that look like? Because many people do not believe that that's
possible right now if you want to keep the structure of a social safety net intact.
SRISKANDARAJAH: Yes, look, there is a huge dilemma, not just for the U.K., but almost all of the western world, which is that the tax system that
we've built is not generating nearly enough resources for the expenditure, not just welfare, but also, you know, defense increasingly and all sorts of
other things that are expected of the state and if you play it forward for the next couple of decades, given what is going on in terms of technology,
demography and aging society, that gap is just going to get bigger and bigger.
In the U.K., the government's official forecaster thinks the gap between what the tax base will raise and what the government will need by 2050 goes
to 20 percentage points of GDP, i.e. the government will raise 40 percent worth of GDP in taxes but need 60 percent to meet the costs of running the
state as we know it.
And I think its high time we look at how to have a fundamental redesign of our tax system so that we can tax wealth, for example. You know, we are
living in a time in which wealth inequality is skyrocketing, and yet governments seem unable or unwilling to be able to tax wealth or to raise
other --
NEWTON: I don't have to tell you that in the largest economies, this is falling on deaf ears already.
SRISKANDARAJAH: Well, it is falling on deaf ears. But I think the economic reality is going to bite. So it is a question of when, not if, we raise
taxes, particularly on wealth, but it is also other things, right? So you know, a lot of countries, the U.S. is a good example, fuel duties and other
duties on fossil fuels, you know, pay for a lot of transport infrastructure. But, you know, in Europe, there is already a huge
transition to zero emission vehicles, and so fuel duty revenues are falling.
The state needs to find a better way to raise resources to maintain roads and public infrastructure and so that's what I mean about a 21st Century
tax system that is going to be effective in raising resources.
NEWTON: Danny, listen, in the midst of all of this and everyone trying to grapple with all of this, you actually are in the midst of a four-day
workweek. That's how you work. You are a proponent of it as well, and yet the world is finding out that in the world of A.I., keeping work and
finding work, even, it really mimics like a "Survivor" island episode here.
Do you think in this environment that you and I were just discussing, limited resources, what is the virtue of a four-day workweek in that?
SRISKANDARAJAH: Well, look, first of all, we do need to acknowledge for a lot of people in a lot of parts of the world, life is particularly tough at
the moment, it feels insecure. And that's why cuts to the welfare system is exactly the sort of wrong sort of thing we need to do.
But then again, if you think about what's going to happen in the way that technology will change our working lives, the sort of 20th Century
assumption that we all turn up to work and work five days a week, and, you know, and productivity decline in the way that we did in the 20th Century
is no longer going to hold.
You know, A.I. is already transforming the way that many industries work and I think we need to think about fundamentally different ways of
organizing work. One of those is a four-day working week. You know, it was only about a century ago that in many parts of the world, workers were
having to work six days a week, then it dropped to five days a week and I think it is only inevitable.
The good news is, productivity is on the rise. You know, I manage a team of 40 odd people who seem incredibly happy, but also, importantly, more
productive. And, you know, with less burnout and less stress. And I think that's the sort of future we need to be thinking about and then redesign a
society and economy and a state around that, rather than somehow pretend that we can keep all that was there in the 20th Century for decades to
come.
[16:25:01]
NEWTON: Danny Sriskandarajah, a provocative conversation. Your book is "Power to the People." It is about reimagining democracy in the 21st
Century. I thank you for a conversation that we know will continue. Appreciate it.
Now, Russia launched a ferocious air assault against Ukraine for a second straight night. CNN crews in Kyiv, in fact, caught the attack on video. You
can see the explosions lighting up the sky there. At least two people were killed.
Ukraine's President Zelenskyy, meanwhile, met with Italian Prime Minister Giorgia Meloni in Rome. Miss Meloni floated the possibility of tougher
sanctions on Russia. And in London, British Prime Minister Keir Starmer and French President Emmanuel Macron held a call with other allies. Mr. Macron
says Russia needs to be forced to the negotiating table.
Nic Robertson is in London.
Nic, if only it was that simple. You know, this Coalition of the Willing seems now to be more deliberate and robust, but how do you see their
approach toward Russia changing?
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: I think they've come out of the sort of darkness, if you will, the shadows of what they've been
planning. The Coalition of the Willing really jumped up and became a big thing after President Zelenskyy had that horrific meeting with President
Trump in the Oval Office in late March -- in late February, rather, and Keir Starmer and Emmanuel Macron really kind of, you know, figuratively and
literally put their arms around him and Ukraine and said, okay, we are going to lead the way to supporting Ukraine militarily if the United States
is going to pull itself out of this equation, become more isolationist.
But they did do one thing, this Coalition of the Willing didn't kind of get in the way of President Trump and his efforts to have a discussion with
President Putin about a ceasefire. They kind of kept their powder dry, if you will. But what they've done now is put on the table something that is
really going to -- irritate is probably an understatement of what it is going to do to President Putin.
What they've said is that come a ceasefire, within hours, they want to have a military force ready to go in to help reconstitute, reinvigorate,
strengthen Ukraine's military through training, through armaments, make its skies defensible with coalition aircraft, they say. So they're putting on
the table here a position that they've been working on behind-the-scenes. There would even be a two-star general go and set up office in Kyiv to kind
of oversee this force, a three-star general, initially in Paris, so all of this is new positioning.
But the way they announced it today was actually in conjunction for the first time, the Coalition of the Willing had a U.S. official participant,
Keith Kellogg, plus a couple of U.S. senators. Keith Kellogg by the way, President Trump's special envoy on Ukraine. So there was some signaling in
there that there was kind of U.S. buy-in and we know that President Trump has been getting frustrated with President Putin.
Does it really mean a change in position? Perhaps it just narrows down the negotiating space that President Trump has with Putin, but I think a lot of
people would say that Putin has been playing Trump along because he wanted to have a summer offensive, and he has bought the time to do that.
NEWTON: You know, as well it was discussed and it does relate directly back to Russia, among other countries, a nuclear deterrent for both France and
the U.K. and the rest of Europe, for that matter that is not as reliant on the United States. The details of this are also starting to come together.
What more did you learn?
ROBERTSON: Yes, this is again, a robust position by the Europeans, for the Europeans, a message not only to President Putin, but really one to
President Trump, who really questioned whether the U.S. nuclear deterrent would be available for NATO allies as part of Article V, which really got
the U.K. and France, the two nuclear powers in Europe, to kind of look at each other and go, well, that's on us. So what they've announced here is
that they will join their nuclear deterrents together to protect Europe if Europe comes under significant threat, a threat that they would define.
But I think it was also interesting that in the press conference today that Keir Starmer had with Emmanuel Macron, Macron spoke about that this is --
they are still sovereign states, that they can still make sovereign decisions. So although they're coalescing forces, coming together on this
point, there is still this strong national narrative.
That said, it is still a move in the direction of a stronger European military cohesion that's been so long under discussion, you know, to
protect themselves to help bolster Ukraine, but also clearly in the growing absence of a strong U.S. commitment to European partners, and I think that
is a signal of a change that's happening, part of a process, not everything yet, only a small step, but it is a direction.
NEWTON: Yes and it might be -- it might look substantially different in a year or two in terms of what we were used to in the post-Cold War era. Nic
Robertson for us, thanks so much.
Now, a new report finds tourists are still shying away from the United States. We will break down the latest travel patterns. That's next.
(COMMERCIAL BREAK)
[16:30:24]
NEWTON: Hello, I'm Paula Newton and there's more QUEST MEANS BUSINESS in a moment when Richard Quest gives us a glimpse inside New York's legendary
Waldorf Astoria Hotel after a multiyear renovation. And $10 million for a handbag? Yes. One of the most famous handbags in the world has just been
auctioned off in Paris. Before that, though, the headlines this hour.
A U.S. judge has issued a nationwide block against President Donald Trump's order seeking to end birthright citizenship. Now last month, the Supreme
Court limited judges from issuing nationwide orders, though it did leave in an exemption -- an exception, pardon me, for class action lawsuits, as in
this case. The Trump administration will be able to appeal.
Overnight, Moscow launched one of its fiercest attacks on Kyiv. Dramatic images show an intense Russian bombardment targeting the capital. Ukrainian
officials say at least two people were killed and more than a dozen wounded.
Ten people have been rescued from the Red Sea after a Houthi attack sank their ship near Yemen. That's according to the E.U.'s Maritime Security
Mission. Three people on board were killed. The U.S. mission to Yemen is accusing Houthis of kidnaping some of the remaining crew members.
Delta Airlines restored its profit outlook for the year. Off an earnings beat, shares rallied 12 percent to its highest level since March. Investor
confidence gave other airlines a boost as well.
[16:35:04]
Now, in April, you'll remember Delta was the first major U.S. carrier to pull its forecast due to economic uncertainty. Now, CEO Ed Bastian says
bookings have stabilized, in his words, as travelers start coming back.
Now, overall, new data is showing that the U.S. is struggling to attract tourists from overseas. Visits fell 3.4 percent in June year over year.
Trips from 11 of the top visiting countries stalled last month. Tourists from Germany down 3.7 percent, France 5.5 percent. Ecuador had the steepest
drop at 14 percent.
Skift editor-in-chief Sarah Kopit joins us now.
Good to see you. The headlines were dire this spring, and visits to the U.S. we can see in the data, right, they fall, and those didn't even
include Canada and Mexico. And those were also down as well.
Do you feel like we have reached a bottom here? And is that why Delta, for instance, is more bullish?
SARAH KOPIT, EDITOR-IN-CHIEF, SKIFT: Well, Delta flies out of the United States, too. So I'm not ready to call the bottom yet. Look, Brand USA, both
the destination marketing organization which is responsible for bringing tourists to the United States, and just the wider brand of the United
States of America is really hurting right now. What we saw this past month is really now a trend, right? It started in March when we had very steep
declines in inbound tourists. It continued in May and now in June.
So it's not a one off, it's really happening. The rest of the world is -- they're really not as interested in coming here right now.
NEWTON: And you mentioned it yourself, right? It's a branding and marketing problem. I mean, look, if you speak to people and I'm sure you have
anecdotally, they do not feel that the United States is a safe place for non-citizens right now, whether that's true or not, but are also visitors
finding it difficult to secure visas?
KOPIT: Yes, some of them definitely are. I mean, the immigration policy of the United States right now has made just the welcoming of people who are
not citizens of the United States of America, it is more difficult to come here, both from paperwork at the border. We've seen it over and over again
in -- since January, since the Trump administration took office.
So, you know, when you're coming on vacation, when you're coming inbound, you're going to take your family, you're going to take a trip, really,
truly, you want to go somewhere where you feel welcome, and what travelers are telling us with their dollars, with their pocketbooks, is that they
don't feel welcome here in the United States.
NEWTON: Sarah, what are the repercussions of this for so many in the United States? And is it falling on deaf ears in the Oval Office?
KOPIT: Yes. So the one thing that I don't think a lot of people realize is just how big of a business travel and tourism is for the United States and
for all of the various businesses that it touches in our economy. So right now, if this holds, the U.S. stands to lose $12.5 billion from these
projections that are going on right now.
So, you know, what's going on in the Oval Office, that is anyone's guess. I don't know if they're sitting there talking about it and wondering what
they can do, but they certainly are not -- haven't taken many policy moves. As a matter of fact, they just caught in the big beautiful bill, they cut
Brand USA, again, that's the DMO that's responsible for marketing tourism of the United States. They cut their funding by 80 percent. So that is one
signal that we're seeing out of this White House.
NEWTON: So this is not an industry clearly for right now that the Trump administration is interested in supporting.
There is a little bit of good news here. These new TSA guidelines, right? We are finally, in most cases, allowed to keep our --
KOPIT: Yes.
NEWTON: Our shoes on. With this irritant gone, you know, I am wondering what picks up the slack here. Are more, you know, Americans going to
decide, OK, we can go away for the weekend, the airports not as much of a hassle as I'm used to it being?
KOPIT: Well, the thing that Americans really are doing right now is taking road trips. That's one thing that we have seen really have a big resurgence
is that people are getting in their car and they're driving. They're going to see other parts of the United States. I think one of the reasons for
that is not so much the shoes at the airport, although a welcome change for everyone, surely. It's that people are, you know, they're weighing the
economy.
You know, what's in their bank account. And then the road trip is more of the last minute decision, the last minute trip. We see this in hotels,
short-term rentals, all across the board. So that's what people are doing this summer.
NEWTON: Sarah Kopit, we will leave it there for now, but we'll continue to check in to you -- check in with you because it is curious in the sense
that this was at one point in time something American governments would welcome people and want them to vacation in the United States.
KOPIT: Yes.
NEWTON: Appreciate your time. Thanks.
KOPIT: Thank you.
[16:40:03]
NEWTON: Now, the original -- the original Birkin bag has sold for more than $10 million. We'll talk about the auction of the iconic handbag that once
belonged to its namesake, actress and singer Jane Birkin.
(COMMERCIAL BREAK)
NEWTON: Vampire bats, snakes, dark caves. Yes, it's already a nightmare for me because this does sound like the stuff of nightmares. But for one
Mexican ecologist, you know, it's just another day in the field.
Today on "Call to Earth," we go on an adventure with Rodrigo Medellin, who, as part of the Rolex Perpetual Planet initiative, has spent the last four
decades campaigning to save bats in his home country.
(BEGIN VIDEOTAPE)
RODRIGO MEDELLIN, LEAD RESEARCHER, NATIONAL AUTONOMOUS UNIVERSITY OF MEXICO: This is an area of tropical forest. But this is the dry season, so
you can see that the ecosystem is very, very dry. It's very, very hot. So bats are not going to be very active tonight. But this is going to help us
hopefully catch two, maybe three bats. Crossing fingers.
ZAIN ASHER, CNN CORRESPONDENT (voice-over): Mexican ecologist Rodrigo Medellin has spent more than 40 years studying, educating and campaigning
to protect bats in his country.
MEDELLIN: My dedication to bats is very tightly linked to convincing other people that bats are incredibly important for your everyday well-being.
ASHER: On this trip, he's accompanied by two of his own teammates. And a group of local students, educators and farmers who he aims to inspire
through up close interactions with his favorite winged mammal.
MEDELLIN: This is the mustached bat.
[16:45:02]
This is a very common insectivorous species from all of tropical Mexico, Central America, and South America. As you can see, it has really beautiful
wings.
(Speaking in foreign language)
ASHER: Globally, bat populations are declining because of a number of threats including habitat loss, climate change and disease. But Rodrigo
believes their biggest problem is a bad reputation.
MEDELLIN: Bats are very mysterious. Many people fear them, many people attack them, despise them. Where did it come from? Why do they have that
negative public image? Very likely it has something to do with an incredible novel called "Dracula," written by Bram Stoker in the 1800s.
(Through translator): It's the furry-legged vampire bat. Look at his hairy legs. Can you see? The furry legged vampire bat.
Bats are certainly not more full of diseases than your dog or your cat, so that has been horribly exaggerated. And the bats are the losing end of this
equation. So what we do many times is just to explain to people that bats are not dangerous.
This is a baby nectar feeding bat. For the moment, it's safe, but there's more than 100 snakes around it. Any second one of them can come and grab
it.
One of my projects is to document the ecosystem services provided by bats all around the world. This time, we're surrounded by many thousands of bats
that feed on insects, nectar and pollen from flowers, and fruit. Those three provide incredible ecosystem services for all of us.
ASHER: In other words, bats help control pests, disperse seeds, and pollinate key crops here and across the planet.
MEDELLIN: Mexico is a very lucky country. We are one of the very few mega diversity countries. That is an incredible privilege, but also an amazing
responsibility for all of Mexicans. We need to defend our nature, our biodiversity and our bats. They are amazing and they give you benefits
every day of our lives.
(END VIDEOTAPE)
NEWTON: Now let us know what you're doing to answer the call with the hashtag "Call to Earth."
(COMMERCIAL BREAK)
[16:50:33]
NEWTON: One of the most famous handbags in the world has just been auctioned off in Paris. The original Birkin bag has sold for $10 million.
And yes, you guessed it, it makes it the most expensive handbag ever to sell at auction.
Now it belonged to its namesake, actress and singer Jane Birkin, who died in 2023. Before her passing, she spoke with CNN's Christiane Amanpour about
the bag's legacy.
(BEGIN VIDEO CLIP)
JANE BIRKIN, ACTRESS AND SINGER: It was funny to come to New York and they said, oh, Birkin, like the bag? I said, yes, now the bag is going to sing.
(LAUGHTER)
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL ANCHOR: That's a good one.
BIRKIN: Lou told me that people say to her, you mean you're the daughter of the bag? So I thought, oh, bless me, you know, when I'm dead, then when I'm
dead, then not only is it "Je T'aime Moi Non Plus," but it will possibly even only talk about the bag.
(END VIDEO CLIP)
NEWTON: That is not true, is it, Anna Stewart? She is accomplished in her own right. But the story of the Birkin, legend.
ANNA STEWART, CNN CORRESPONDENT: Yes, I mean, this is a hallowed story now and fashion lore. She inspired this bag by just happening to meet up with
the CEO of Hermes at the time on a flight to Paris and complained because her handbag just wasn't fitting all of her documents, complained it wasn't
functional enough, so they scribbled on the back of some sort of serviette or maybe even a sick bag a pattern for this bag. And this is the OG.
Now what you get for just over $10 million, Paula, is not just this bag, but you get all the scratches, the scuffs, the sort of sticky residue from
stickers in the past that go along with it. Not really what you expect to buy for $10 million, but of course that is all part of the story. And what
I kind of love about this bag and have increasingly loved through the day where I've been telling this story, is just the fact that this was quite a
loved and very used bag.
She had it on the floor. She had it filled with stuff. These days you buy a Birkin and it ends up, you know, behind a piece of glass at home and
occasionally goes out and sits on a handbag stool in a restaurant.
NEWTON: You're right. It's almost like an extension of your personality at this point. And in terms of it being a cultural touch point, right, Anna,
it really is like that for so many people now, men and some, sorry, women and some men, even.
STEWART: Absolutely. And you know what, Paula? There is an argument. There is an argument for buying a Birkin bag increasingly so I find because
actually it really does hold its value. Now, new, this bag in 1984 was worth $2,000. Now it's more like $13,000, but actually it's the secondary
market where the value absolutely skyrockets because there aren't enough of them. The clients that Hermes will sell to is really limited.
So this is a study between 1980 and 2015. You will see the Birkin increased in value by 14.2 percent a year, outpacing the S&P, outpacing gold. I wish
I had a more recent study for you, but you know, not enough banks are focusing on a Birkin as alternative investment. But there you go. There is
value in it.
NEWTON: OK.
STEWART: And I just wonder if we see this sell again, will it sell for more than $10 million?
NEWTON: But you and I both know after what happened today, that in fact that value has gone up. I take your point. Maybe this facts and figures
aren't recent enough, but, yes, it makes such a good point about how this is actually an investment.
What we need to do, Anna, is find the next Birkin bag, and to that point, I will give you my carry bag. I'm never sure of advice for you. OK. Now,
look, I just want to -- this is washable, OK? I can't tell you what's on the cover. It's very sturdy and very washable. Only about 45 American
dollars.
STEWART: Nice.
NEWTON: And the reason I point this out, that the Birkin maybe does belong in a museum. And why? Because I floated around London with a beautiful
Italian number for five years and got a frozen shoulder from how much I carried in it so it's just a piece of advice. I think the Birkin should
stay, you know, at the auction house, and then in a special place in your home. Don't carry it around. It can be dangerous to your health.
STEWART: You know, I didn't buy it, Paula. That wasn't me.
NEWTON: I better not be, Anna. After all we've spoken about.
Anna Stewart, for us, fascinating really. I really, I didn't know that about the value. So thank you very much. Appreciate it.
Now we are talking about luxury again. And when it comes to luxury real estate in New York, a classic is coming back in style. The iconic Waldorf
Astoria is opening its doors for the first time since beginning renovations in 2017, and it's betting big on luxury real estate. Now the hotel has
downsized from 1400 guest rooms to just about 700 rooms, half of which are luxury condos.
Now, the property's general manager showed Richard Quest, one of the residences on sale for, oh, you know, just about $12 million.
[16:55:06]
(BEGIN VIDEOTAPE)
LUIGI ROMANIELLO, MANAGING DIRECTOR, WALDORF ASTORIA NEW YORK: It's a residential lobby so when you come in, you have your private concierge, of
course. Of course we have our team.
RICHARD QUEST, CNN INTERNATIONAL ANCHOR: So the elevators to the residences.
UNIDENTIFIED MALE: Yes.
QUEST: Are not the same as the resident -- for the hotel?
ROMANIELLO: No. They're separate. They're separate. So we have a bank of elevators just for the residents.
QUEST: So did you have to put in -- did you have to put in new elevators?
ROMANIELLO: We had to put all new elevators in.
QUEST: Really?
ROMANIELLO: For the residents. Yes. This was an incredible, you know, when you, when you look --
QUEST: So you must have just gutted the place?
ROMANIELLO: We gutted the entire thing.
Well, we wanted to, first of all, we wanted to reduce the size of the hotel, you know, because we used to have 1400 rooms before, so now we are
down to 375 rooms, so we can have best deliver the service and really give that ultra luxury Waldorf Astoria New York service we're famous for. And
then we want to do for the very, very first time in the history of Waldorf Astoria in New York, now you can have an opportunity to actually owned one
of the residents.
You know, before we used to have, you know, long term residents, as you heard. You know, I was looking at, you know, Cole Porter, 30 years he lived
here. Can you imagine that? And -- but it was always like, almost like a lease long term stay. But now you can actually physically own one of the
beautiful residences.
QUEST: It's not cheap though, is it?
ROMANIELLO: This one over here is Josh Green. You know, and it's a three- bedroom. Yes. This one goes for about $12 million, all decorated. But we have price points for every single audience.
QUEST: When the hotel opens, you're right, it's going to be a lot smaller therefore a lot more expensive and exclusive in a sense. Higher up, higher
up the chain. But this place also was very well known for its banqueting, its events, ladies in long gowns and --
ROMANIELLO: Of course, of course.
QUEST: Walking up and down. Is that going to be part of the future?
ROMANIELLO: The grand ballroom is like the crown jewel of Waldorf Astoria New York. I mean, it is the crown jewel and it's got that kind of
statement. And yes, we will bring back all the galas, all, you know, the events that the Waldorf Astoria used to celebrate.
QUEST: Because the Waldorf is so well known. How aware are you of its history and its character?
ROMANIELLO: I feel like I've been preparing all my life for this job. You know, it's so meaningful to me just to see the love that New Yorkers have
for this hotel, you know? And by the way, I'm going to be living in the hotel, so I'm going to be living in one of the residences. So I'm going to
be very, very close to my team members, you know, to my guests, to my owners. They're going to make a life and be here, you know? So this is
going to be the most incredible journey of my life.
(END VIDEOTAPE)
NEWTON: Our thanks to Richard there. Couldn't we move the QUEST MEANS BUSINESS office there as well?
I'm Paula Newton. "THE LEAD WITH JAKE TAPPER" is next.
(COMMERCIAL BREAK)
END
