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Quest Means Business
IMF Upgrades Global Growth Forecast As Tariffs Take Shape; Israel Rejects U.K. Plan To Recognize Palestinian State; Source: NYC Gunman Who Killed Four Had Grievances With NFL; AstraZeneca Announces $50 Billion U.S. Investment; Ghislaine Maxwell Demands Immunity To Testify To Congress; U.S. Consumers May See Coffee Prices From Brazil Go Up; Union Pacific, Norfolk Southern Announce Merger. Aired 4-5p ET
Aired July 29, 2025 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:12]
RICHARD QUEST, CNN INTERNATIONAL HOST, "QUEST MEANS BUSINESS": Closing bell ringing on Wall Street. Daiwa Capital ringing the closing bell. Down day
for the markets. They are right down across the board, but they've been down all day. It is an interesting day, bearing in mind the trade talks
that we've been seeing. But there you are, one, two, all right, oh strong gavels, I think.
Those are the markets and the main events of the day: The IMF raises its forecast for global growth, but says the economy remains on unsteady
ground.
The chief executive of AstraZeneca will be with me explaining why he is going to cut prices in the U.S. and raise them in Europe.
And coast-to-coast, a merger that will create the first coast-to-coast railroad. It is for freight in the United States.
And I promise you, no more train noises. That's the last one.
We are live in New York. It is Tuesday. It is July the 29th. Where has the month gone? I am Richard Quest, and in July, as elsewhere, I mean business.
Good evening.
We begin tonight with an upgrade from the IMF. This year's global growth forecast is now going to be three percent, they believe with trade
agreements in the U.S. falling into place. The IMF expects a bit more growth in the U.S., Eurozone, British and the Chinese economy.
It is partly because tariff rates now are lower for the United States than those that were believed during the last reel back in April, and also the
U.S. dollar is weakening and that softens the blow from the trade war. Just look, you can see on that map just how if you take a look and across the
board pretty much that fall.
The IMF's chief economist Pierre-Olivier Gourinchas joins me from Washington.
Sir, the numbers are relatively small, but it is the direction that I think that is significant, and you're clearly -- I don't want to overstate it --
so let's just say marginally more optimistic than you were earlier in the year.
PIERRE-OLIVIER GOURINCHAS, IMF CHIEF ECONOMIST: Yes, indeed, Richard, and thanks for having me. I mean, what we are seeing is a global economy that
is a bit more resilient than we were expecting back in April, and there are basically three factors behind this. The first one, you've already
mentioned the tariffs that we are seeing right now as of July of 2025 are lower for a number of countries compared to where they were expected to be
back in April, and of course, lower tariffs means there can be a little bit more growth. That's one thing.
The second thing is financial conditions have actually been quite supportive. We've seen markets that have rebounded quite strongly. You've
mentioned the dollar depreciating. That has provided a little bit of growth in some countries.
And third, what we are seeing in the first quarter of the year, there was a lot -- a lot of export trying to get ahead of the tariffs --
QUEST: Right.
GOURINCHAS: -- what we call front loading and that has supported activity in Europe and Asia in particular.
QUEST: I was reading this morning, the actual numbers are quite startling. Yes, everyone is happy at 15 percent to a certain extent because it is
better than 20 or 30 percent, but it is still the highest tariffs since Smoot-Hawley.
Now with that scenario, how do you think it affects global growth? Or can we simply not -- can we simply not gauge it at this point?
GOURINCHAS: No, no, we can't gauge it. In fact, you're absolutely right. We are seeing the overall -- the effective tariff rate that the U.S. is
putting on the rest of the world. We are estimating it in our report to be around 17 percent. The recent trade deals that have been announced in the
last ten days or so are unlikely to change that number very much.
It used to be less than three percent at the end of 2024, so a massive increase in the tariff rate that the U.S. is putting on the rest of the
world, and when we look at our forecast, not compared to April, but compared to what we had right before April, right before the tariffs were
announced, then what we see is a downgrade of global growth.
So the tariffs are hurting the global economy. They're hurting pretty much every country. But they are not as bad as was what was expected back in
April.
QUEST: Okay. The question of monetary policy and the ability to cut rates. Do you believe especially for the United States, that now we've got
certainty on the tariffs and there doesn't appear to be the longstanding inflationary shock, and we have a lower tariff rate that there is now room
and grounds for easing of monetary policy, maybe not tomorrow, but September.
[16:05:10]
GOURINCHAS: Well, I think it is too early to tell. And first I want to say that when you say there is certainty on the tariff, I mean, I am not quite
sure there is certainty on the tariff yet. These are -- a lot of the deals that have been announced are pretty high level, a lot of the blanks have to
be filled in. We will have to see if indeed the tariff rates remain stable at the new levels that have been announced, that will take a little bit of
time.
Measures of trade policy uncertainty remain very high, that's point number one. Point number two, we are going to see an increase in prices in the
U.S. related to the tariffs. We already see some signs of that in the June CPI for instance. We expect to see more of that in the second half of the
year and into 2026.
So on the one hand, the Fed is to gauge how much of this price pressures are going to be coming down the pike, and on the other hand, how much the
labor market is likely to soften. It has been softening very marginally so far. So that's the balance between these two that will determine whether
they're in a position to cut rates or not.
QUEST: Let's talk to the developing world, as the dollar has weakened, one wonders where -- is the fund still as concerned as it was or more concerned
even at the debt load that developing world has taken on post-pandemic and post that is unsustainable. Do you still see a debt crisis in the making?
GOURINCHAS: Well, we are seeing a number of countries are facing significantly tight funding conditions when looking, especially at low
income countries, but the effect of the dollar is playing out on two dimensions here. One is the financial conditions, so for countries that
have dollar debt, for instance, the dollar depreciation is helping. It is giving them a little bit of a lift. It is easing financial conditions for
them, that's a plus.
But the dollar depreciation is also amplifying the tariff shock for these countries. They're getting not only the tariff for the goods they want to
ship to the U.S., but now their currency is becoming stronger, which makes it harder to sell in the U.S.
So there is what happens on the trade side. There is what happens on the financial side. On balance, we are not seeing a huge increase in debt
distress in low income countries right now, but one needs to be watching carefully in that space.
QUEST: And dare I say it, that the -- you know, the economies are all in reasonably good shape and the worst prognoses from an early look at the
Trump administration, doesn't look like it is coming to fruition. And in fact, not only did the Fed engineer its soft landing, but actually, I mean,
things aren't bad.
GOURINCHAS: Well, things aren't bad, you're absolutely right. We are not seeing a huge slowdown in growth for the reasons we just discussed. But at
the same time, there aren't that great either. The growth rates were having three percent, this is below pre-COVID growth rates. We are seeing when we
look and we look five years out, we are seeing medium term growth that is around the same level, around three percent. That's not very good.
We have a number of challenges ahead of us. There are a number of funding needs that countries have that we need more growth, and what we are seeing
is productivity growth, which is ultimately the engine behind economic growth has not been very strong.
QUEST: I am grateful. Thank you so much, sir. We will talk about this. You always bring it to life for us and make it relevant and I am grateful to
have you with us tonight.
Now, the British Prime Minister, Sir Keir Starmer, says the U.K. will recognize Palestinian statehood unless there are major moves by Israel to
end the situation in Gaza.
(BEGIN VIDEO CLIP)
KEIR STARMER, BRITISH PRIME MINISTER: So today, as part of this process towards peace, I can confirm the U.K. will recognize the state of Palestine
by the United Nations General Assembly in September unless the Israeli government takes substantive steps to end the appalling situation in Gaza,
agree to a ceasefire and commit to a long term sustainable peace, reviving the prospect of a two-state solution.
(END VIDEO CLIP)
QUEST: Israel's Prime Minister Benjamin Netanyahu has called the plan a reward for Hamas that would backfire on the U.K. saying "Appeasement
towards jihadist terrorists always fails and it will fail you, too," referring to Sir Keir.
A U.N. backed initiative that tracks food security, says the worst case scenario of famine is now unfolding in Gaza. Israel says 52 packages were
dropped into the enclave on Tuesday in coordination with Arab countries, Sir Keir says aid from the U.K. was delivered by air, and the French
Foreign Ministry says it will start airdropping aid in the coming days.
Fawaz Gerges is the Professor of International Relations at the London School of Economics and the author of "The Great Betrayal: The Struggle for
Freedom and Democracy in the Middle East."
[16:10:10]
It is always good to have you with us. I am so grateful for that.
Before we get into the situation there, I don't really understand what Sir Keir is up to with this, because when I heard it, I thought, look, surely
if you're going to -- you know, if you're of a mind to recognize statehood, just go ahead and do it. Why are you going through the convolutions of
tying it to something, doing something? I mean, do you see the relevance of the connection?
FAWAZ GERGES, PROFESSOR OF INTERNATIONAL RELATIONS, LONDON SCHOOL OF ECONOMICS: Oh, absolutely. You're absolutely correct.
Starmer has been reluctant to recognize a Palestinian state because he believed that unilaterally recognizing a Palestinian state would be
considered performative politics as opposed to basically making a difference.
What has happened in the past few weeks is that Starmer is pressed between a rock, domestic pressure, 250 lawmakers basically wrote a letter to
Starmer calling on the Prime Minister to recognize a Palestinian state. Tremendous pressure. I don't know whether you are in London or not. I mean,
overwhelming pressure as a result of rising starvation and worst case scenarios and horrible images of Palestinians' children starving and a hard
place, Starmer does not really want to upset Donald Trump.
Remember the U.K.-U.S. relationship is extremely strategic for Starmer, but at the end of the day, what he is trying to do is to really play for time.
He has tried to hold the thing from the middle, but at the end of the day, what we need to understand here is that really what Starmer said today and
what President Macron, the decision to recognize a Palestinian state reflects the deepening isolation of Israel in the world. Israel has fewer
and fewer friends.
We are talking about -- please.
TRUMP: Even Donald Trump is now, today, several times has said, you know, this idea of there being no starvation, though, is simply not true. I mean,
he was somewhat facetiously sort of saying, oh, yes, there is no -- you know, tell me we are seeing the pictures, don't tell me there is no hunger
there.
Why do you think Israel is doing it?
It is arguably -- the level of unnecessary opprobrium being put on their head. Why are they doing it, in your view?
GERGES: Well, I think there is there is a strategy behind it. I don't think we are talking -- Israel is not an irrational actor, and the overarching
strategy of Israel is very simple, it is to basically displace the Palestinians from Gaza, is to settle Gaza, is to end the very idea of a
Palestinian state.
I mean, Israeli Ministers have made it very clear even today, they want to basically displace the 2.2 million Palestinians of Gaza. They want to end
the whole idea of Palestinian state. I mean, they have destroyed every single habitat in Gaza -- schools, clinics, hospitals, mosques,
universities. I mean, there is nothing left in Gaza and they are making really -- they are punishing the population because at the end of the day,
Israeli leaders believe that if the Palestinians really had no choice, they basically would pack and leave to various countries.
QUEST: I preface my next question with obviously two wrongs never make a right. Let's just get -- you know, make that clear, but the inability or
let's start with the unwillingness of Hamas and arguably now the inability -- they don't know where the hostages are, they don't know some of them,
whether they are alive or dead. The inability and unwillingness of Hamas to do this, to do what President Trump has demanded. If they did, arguably the
situation would alleviate very quickly.
GERGES: Look, Hamas is not my cup of tea. I am not defending Hamas here, but Hamas has been desperately trying to reach a ceasefire. Hamas has made
it very clear it is willing to have a comprehensive deal. In fact, Hamas made it very clear multiple times it wants to basically release all the
hostages for ending the war -- Israel ending the war.
The question is not why Hamas has not released the released the hostages. The question is, Benjamin Netanyahu does not really want to end the war.
Benjamin Netanyahu has repeatedly said he wants his hostages back, but he wants to resume the war after he gets the hostages back, so in many ways --
[16:15:06]
QUEST: So let me ask you then, and we are running out of time, but I do want your thoughtful answer prompts this question.
If you're Hamas, release the hostages and prove then to the world that Israel is not going to stop the war.
GERGES: I mean, you're asking a question that really has no relationship to the question of geopolitics and strategy. Hamas knows very well that what
Israel wants, Israel wants to basically destroy Hamas. Israel wants Hamas to surrender. Israel wants to reoccupy Gaza. Israel wants to deepen its
occupation of Palestinian lands.
For Hamas, the only strategic card it has are the hostages, even though the hostages should not have taken place in the first place.
QUEST: I am always so grateful that we can have this forthright discussion, and thank you very much for joining us tonight. I wish you well this
evening. Thank you.
It is QUEST MEANS BUSINESS live from New York. In a moment, the police are uncovering clues and looking into the motive for Monday's shooting at a New
York skyscraper. The investigation on the security, well, it is -- I mean, this is just extraordinarily awful.
(COMMERCIAL BREAK)
QUEST: Police found a host of items in the car belonging to the gunman who killed four people and then shot himself following his rampage through a
New York office tower. Now, what they found included ammunition, another loaded gun and medication. This is all according to law enforcement
sources.
A note that was found in the shooter's pocket stated he suffered from CTE. It is a brain disease linked to head trauma. He also said he had grievances
with the U.S. National Football League, the NFL. Officials say he was headed to the NFL's office in the building, but apparently took the wrong
elevator or lift.
CNN's Brynn Gingras joins us now with the latest.
The awfulness of the event, but it now seems as if mental health issues are going to be a large part of this. What have you been learning during the
course of the busy day?
BRYNN GINGRAS, CNN CORRESPONDENT: Yes, that's right Richard, we are learning that the gunman, Shane Tamura was actually put on a psychiatric
hold twice. Authorities actually in Las Vegas observed him walking around the streets and thought possibly he might be a harm to himself by his
behavior and put him on a psychiatric hold. That is what we are learning from sources.
[16:20:07]
But really, getting to the crux of why this happened, investigators are looking into that suicide note that was in his back pocket, talking about
CTE, seeing if those claims are actually valid and they're doing that also by sending investigators to Las Vegas, Tamura's steps from Vegas here to
New York City before this, you know, brazen attack happened.
They say that he left work or didn't show up to work, I should say, last Sunday and that is the last time that he was seen by his coworkers. They
believe that is when he started to make his cross country drive here to New York City.
And what we are learning also is that search warrants are going on in Las Vegas and also here in New York. They are looking through what was left
behind in that double parked car outside of this building. Investigators found a loaded revolver, they found some prescription medication, two
phones. So search warrants are also being conducted on those phones.
As far as the weapon that was used in this attack, authorities say it was an AR-15, and we've just learned that part of that weapon was actually
bought by an associate and investigators are now saying they know who that associate is, and they're going to conduct interviews with that person to
kind of figure out exactly why it was given to Tamura as that is a very federal mandated part of the gun and would have been difficult for Tamura
to get -- illegal for Tamura to get with the gun permit that he had.
So there are a lot of threads going on in the investigation trying to sort of answer those questions. And of course, now Richard, at the same time,
this area is really just shocked, saddened. We are seeing flowers, balloons being laid outside this building, which is closed as we learn about those
four others that were killed in this attack.
QUEST: I am grateful, Brynn Gingras outside the building in Manhattan.
And so to the way we live our lives in skyscrapers in New York. I.D. card readers, metal detectors, turnstiles, security features that are in every
building now in New York's office towers.
The mayor, Eric Adams, says that 346 Park Avenue went even further. He describes that the lobby alarm could have disabled the elevators, and that
there were safe rooms with bulletproof doors, but the gunman was able to get past the lobby and reach the 33rd floor.
John Miller, CNN's chief law enforcement and intelligence analyst, is well familiar with the security provisions necessary in buildings like these. So
did they have the right stuff and it wasn't used? Was it not working? Did somebody drop the ball? Or was it what a classic case of --
JOHN MILLER, CNN CHIEF LAW ENFORCEMENT AND INTELLIGENCE ANALYST: Well I think that, first of all, too early to make that assessment. This happened
yesterday and they have to go through all of those systems and every piece of video and figure out step by step what occurred. But I also think when
you consider conventional security, you know, Richard, even as you described in the skyscrapers of New York City, where they have the layered
approach, you know, video running, you've got a visitor's desk where you have to sign in. They have to find out that you're authorized to go up to
that floor. In many buildings, they give you a card that will get you through the turnstile, but the elevator will only take you to that floor.
In older buildings, you can control the floors by what buttons you press in the elevator.
All of that said, when an individual walks in and opens fire with a semi- automatic weapon, 30-round magazines, additional ammunition and starts killing people on the spot, none of those measures are really built for
that kind of attack.
These are buildings where thousands of people come day in, day out, not secure government facilities where you're going to be going through metal
detectors and so on, it is just not the way business is done in those buildings.
QUEST: So with your experience, what -- as you say, it is too soon to do the full what lessons are learned, but as you look at this, hey, I worked
out the question, as you look at this, John, what was the first thing that you thought, oh, we've got this situation again. They didn't do this or
we've always known about that or they should have thought about the other. What was the bell that rang?
MILLER: It actually was the opposite, you know, first I looked at the building. Okay, who is the security people they used? It is a very good
company with a very good reputation. Okay, who runs the building? It is Rudin Management.
During my time with the NYPD, you know, the Rudins were constantly on the phone looking for security updates. What's the threat condition? What's out
there in the ether? What do we need to be looking out for based on the tenants we have? If there was an attack or an incident, you know, in Times
Square or Midtown, the second call I got was usually from Bill Rudin saying, what do we know? And what do we need to be doing on our end?
[16:25:06]
The second thing is, well, they went above and beyond. Not only did they have their own built-in security systems, but they had hired two uniformed
armed police officers in in full NYPD uniform to increase that security presence in the lobby.
But again, that doesn't anticipate -- it anticipates all kinds of trouble. There are outfits like Blackstone that have been the target of protests.
There's the NFL, there are law firms involved in controversial cases. It is a -- KPMG is there. I mean, it is a high-end building, but it doesn't
anticipate basically what was a full-on active shooter assault by someone who walked in shooting, didn't try to get past security and opened fire,
that was his opening round there.
QUEST: So are we talking about -- are we back to, if you will, we've gone around the board and were back to where we started, which is mental health
issues need to be better addressed in this country in terms of identification, treatment, et cetera, et cetera. And, and I know this is
going to have any viewer and constitutional viewers up in arms, take away more guns.
MILLER: Well, this is part of a pattern that we have learned to adjust and live with, which is another individual with an assault weapon who comes to
a place driven by some grievance, and their solution is that they and they alone can deal with this problem by some kind of violent attack where they
take the lives of strangers.
And here is an individual who has had two mental health encounters with law enforcement, who is on multiple medications in the car. They found Zoloft
for depression, zolmitriptan for migraines, and pain, cannabis, which he could have been taken for either medical or personal reasons. But this is
an individual who is walking around with multiple weapons, one of them given to him by a friend, at least the part that made it function as a
weapon. The other, purchased legally by himself as recently as June.
So we really have to take a deeper look at the Red Flag Laws and what does it take for those alarm bells to go off short of being adjudicated by a
judge in court under law, as mentally ill.
QUEST: I am grateful, John, thank you as always.
MILLER: Thanks, Richard.
QUEST: In a moment, I sat down with the AstraZeneca chief executive, Sir Pascal Soriot. We were in the C-suite in the sky as you can see, discussing
the Trump tariffs, drug pricing, and the influence of A.I.
(COMMERCIAL BREAK)
[16:30:44]
QUEST: Hello, I'm Richard Quest. Together we'll have a lot more QUEST MEANS BUSINESS. And we're talking to the AstraZeneca chief executive about the
company's $50 billion investment in the United States with tariffs being threatened and major American railroad companies announce they'll be
merging form a transcontinental corporation. I promised there were more. I lied.
Before that, this is CNN and on this network, the news always comes first.
The British prime minister, Sir Keir Starmer, says the United Kingdom will recognize a Palestinian state in September. That is unless Israel takes
substantive steps to end what Sir Keir calls the appalling situation in Gaza. Israel's Prime Minister Benjamin Netanyahu says Starmer's
announcement is a reward to Hamas and will ultimately undermine British security.
Officials say the man who shot a New York skyscraper in New York may have been targeting the offices of the NFL, the National Football League. The
police say the man killed four people and then turned his gun on himself on Monday evening. A source says a suicide note in his pocket said he suffered
from CTE, which is a disease linked to head trauma.
The U.S. and China have wrapped up two days of trade talks in Sweden without a final resolution. The U.S. Treasury secretary and the USTR, the
trade representative, still called the talks constructive. They suggested the current tariff truce could be extended beyond the 12th of August.
European stock markets closed higher, with one major exception. It was Denmark. And that's because its main index was weighed down by Novo
Nordisk, which fell -- I mean, for a company like this, 23 percent single biggest daily drop in value. The maker of Ozempic and Wegovy slashed its
annual sales and profit forecast amid growing competition from other weight loss drugs.
On the other hand, AstraZeneca beat its second quarter earnings forecast. It was buoyed by sales of its heart, kidney and cancer drugs. I was joined
in the C-suite in the sky by the chief executive, Sir Pascal Soriot. Now, AstraZeneca announced today that it plans to cut drug prices in the United
States. Only last week it said it would invest $50 billion towards manufacturing and research in the U.S.
I asked Sir Pascal about the proposed price cuts and whether the President Trump may have played a role.
(BEGIN VIDEOTAPE)
PASCAL SORIOT, CEO, ASTRAZENECA: I think the fundamental question really is that the R&D in our industry has to be funded across the rich countries,
not only America. So there has to be a rebalancing. The president calls it equalization of prices between rich countries. And of course, you can GDP
adjust. But that's really the fundamental issue that has been there for a few years and is growing and has to be addressed.
The prices in the U.S. have to come down over time, and then the prices in Europe have to go up. They don't need to go massively up. They need to go a
little bit up. Yes.
QUEST: You've announced a major investment in the United States. You already have large scale, I mean, when I read the announcement, it made it
sound like you just arrived yesterday but, you know, but you already have lots of manufacturing, production and research facilities here. But this is
a huge one that you announced.
SORIOT: Yes, absolutely. We announced that we are committing $50 billion over the next few years until 2030 to support our growth in the United
States. And these investments will go into manufacturing, and they will go into R&D.
QUEST: Do you believe by having these production facilities and increasing, for example, the 15 percent tariff now that, of course, has just been
announced with the E.U., you can essentially avoid the majority of tariffs by producing here in the United States?
SORIOT: Absolutely. But, you know, we are almost there ourselves because we have this 11 manufacturing sites. We've just announced a multi-billion
dollar investment, manufacturing investment in Virginia.
[16:35:04]
The governor and his team have been incredible. They've moved at the speed of business, 33 days to reach an agreement for multi-billion dollar
investment. So we will be totally self-sufficient for the supply of medicines to American patients. We will also export out of the U.S., but
again, we will be, I mean, the tariffs are not so relevant to us ultimately because we'll be self-sufficient.
QUEST: I'll turn the corner. Let's turn to the coin over. Europe seems to be in trouble. And by that I mean, you know, you take the Draghi report,
you take the competitiveness, you take the production facilities. You're across Europe obviously. And do you see that? Do you see the difference
now? Do you see the changes that Europe needs to make that isn't being made?
SORIOT: Absolutely. I mean, look, I'm old enough that I remember the -- when I started in the industry, innovation was driven out of Europe. We
were selling pills at the time. That's what we had. Today there is an explosion of technologies to deal with diseases. And most of that
innovation has come out of the U.S. And Europe has been falling behind. China is ramping up quickly. So in our -- in our industry today, innovation
comes from the U.S. primarily and China, and Europe is falling behind.
QUEST: What does Europe need to do then?
SORIOT: I think Europe needs to create an environment that attracts investment. It's not there.
QUEST: What does that mean? I'm sorry. I'd like to push you on that because what does that actually mean in reality?
SORIOT: In reality, for our industry.
QUEST: Yes. Sure.
SORIOT: I talk about our industry, of course, means create an environment where companies believe the medicines they invent, develop, and developing
medicine is as costly as producing a plane, as developing a new plane. Right? It's billions of dollars. People -- companies have to believe that
these medicines are going to be accessible to patients and reimbursed by Social Security systems.
If you believe that your medicines will not get access, not be reimbursed, patients will not be able to use them. You invest elsewhere and there's
tremendous opportunities to invest in the U.S. and in the rest of the world because we should remember, the rest of the world is also catching up. Many
countries are investing and growing, so Europe has to really sort of catch up.
QUEST: And the use of A.I. in large learning models, I was astonished at the amount in which A.I., and pharmaceuticals, the way you're using it,
it's extraordinary.
SORIOT: Yes, absolutely. I mean, A.I. is totally transforming the way we -- the way we operate. Of course, like in other industries, it's helping us
improve process and cut costs, that's for sure. But the most exciting piece is the innovation part, is that how do you use the biologic data you have,
the genetic data you have, combine this with A.I. to actually invent new medicines and develop them faster? And we do this.
I mean, you know, discovering new medicines is one step. The next step is to optimize the molecule. This is something that in the past used to take
six, seven months. Now you do that in two weeks with A.I. So the transformative effect of A.I. is incredible.
QUEST: Give me a picture for your company five years from now.
SORIOT: Well, five years from now, I hope we are going to be close to our $80 billion target that we want to achieve by 2030.
QUEST: That's very ambition. Very ambitious.
SORIOT: I hope we will deliver 20 new medicines and more to patients for very severe diseases. And I hope that we will have led this A.I.
transformation and this technology explosion. Antibody drug conjugate, cell therapy, oligonucleotides. So many new technologies that exist out there
that will transform the way medicines is practiced.
You know, when I started, we had pills, very limited tools. Today you have so many tools. Doctors have so many tools to cure people.
(END VIDEOTAPE)
QUEST: The CEO of AstraZeneca.
The attorney for Ghislaine Maxwell says she will offer to testify before the U.S. Congress as long as she's granted immunity. Maxwell is an
associate of Jeffrey Epstein, is currently serving a 20-year prison sentence for sex trafficking. The offer follows -- her offer follows
meetings with the Deputy Attorney General Todd Blanche.
Alayna Treene is at the White House.
This is all very complex in a sense of it's tied up with her comment that, you know, her appeal is still pending before the Supreme Court. Therefore
she doesn't want to jeopardize herself. But the committee has already said, no, it's not going to grant her immunity. So where does this go now?
ALAYNA TREENE, CNN WHITE HOUSE CORRESPONDENT: I think that's still a key question. And look, what you mentioned about her case still pending before
the Supreme Court, her, you know, plea to try and have them overturn her conviction.
[16:40:07]
That was actually one of the other kind of requirements that they are -- conditions, I should say, that Maxwell's attorneys had sent to the
committee saying they wanted to wait until that matter before the court was settled, before she would potentially testify.
But you're right. I mean, the number one condition that Maxwell's attorneys laid out was to have her be granted immunity. And, of course, we've already
heard from the committee, as you said, that that's not something that they are willing to do. I also know, and this has been reported over the last
several weeks now, many Republicans who are eager to hear from her, to have her testify before the committee had also said that just having any sort of
immunity when it comes to Ghislaine Maxwell was not on the table for them.
I want to lay out for you, though, some of the other conditions that her attorneys had put out in this letter to the Oversight Committee, they had
said, in addition to the formal immunity, they said that the interview couldn't happen at the correctional facility where she's serving her
sentence. They also argued that in order to prepare adequately for this, that they were recommending or really asking for the committee to provide
Ghislaine Maxwell with the questions in advance, something I can tell you from covering Congress for many years, Richard, is just not something they
do if ever in this case, something many people -- lawmakers find inappropriate, and then again, that idea that the interview would be
scheduled after her Supreme Court case is settled.
And then what was also very interesting is what they put at the end of that note. And essentially it was kind of, you know, a final appeal to President
Donald Trump asking for clemency. This is what her attorneys wrote. They said, quote, "Of course, in the alternative, if Miss Maxwell were to
receive clemency, she would be willing and eager to testify openly and honestly in public before Congress," essentially saying, you know, hey,
asking the president, give me immunity here.
QUEST: All right. Yes.
TREENE: And I will testify. But something one I should just point out here, Richard, is that the president has so far not really given a specific
answer on whether or not he would pardon Ghislaine Maxwell, but many people in the administration, I know from my conversations with them, do not think
something like that would be appropriate. So again, to really answer your question, it's unclear where this goes from here, but I know lawmakers
still want some answers from her.
QUEST: I'm grateful. Thank you, Alayna. Thank you for that. Thank you.
And it is just worth pointing out, just in case any of you were marginally just wondering, there is, of course the difference between the immunity
that she is seeking and a pardon, which of course is what people are talking about, whether or not President Trump would be -- might think about
or he said he has the -- he's able to, but he's obviously not (INAUDIBLE).
Anyway, filling your morning cup of coffee -- let's move on -- may soon empty your wallet. Why buying Brazilian beans is a big cost for the average
buyer.
(COMMERCIAL BREAK)
[16:45:57]
QUEST: Morning cup of coffee is a necessity. The daily ritual may soon go up in price for U.S. coffee drinkers, and it's all because of potential
tariffs between Brazil and the Trump administration.
CNN's Isa Soares has been sniffing the beans.
(BEGIN VIDEOTAPE)
ISA SOARES, CNN CORRESPONDENT: There's nothing quite like going into your favorite coffee shop. The sounds, the smells. And then, of course, the
payoff. Starting your morning with one of these.
Coffee is what fuels many of us. That is certainly the case with me, journalist and mom to two young boys. We love it because it's warm, it's
aromatic. And let's not forget, the caffeine kick, the most important. And in many places around the world, it is relatively affordable. But if you're
in the United States, that may be about to change.
(Voice-over): That's because President Donald Trump is threatening to impose a 50 percent tariff on Brazilian goods.
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Brazil is an example, has been not good to us. Not good at all.
SOARES: And that includes coffee. The issue is Brazil is a coffee superpower. It's the world's largest producer. And its beans account for
around a third of the coffee consumed in the United States.
JON KINNARD, LOS ANGELES COFFEE SHOP OWNER: It's the foundation for most blends because of its affordability, because of its accessibility, and its
consistency. It's pretty much found in almost every blend you can find out there on the market.
SOARES: But in a coffee trade war, the U.S. does have some leverage. If Brazil is the largest exporter, the U.S. is the largest importer. So
there's some sort of symbiotic relationship between the two. One that growers in Brazil want to see thriving.
JOAO MACHADO, PRESIDENT, COFFEE GROWERS ASSOCIATION OF VALE DO CAFE (through translator): We're awaiting political negotiations and agreements
because we don't want to stop selling to the United States. Coffee is a global commodity.
SOARES: Small-scale producers are especially vulnerable, and they know what will happen if the U.S. goes looking for coffee elsewhere.
THIAGO GARCIA, COFFEE PRODUCER: There will be a surplus of coffee, and the tendency is for it to lower prices here in Brazil until they find another
way to export to other countries.
SOARES: But in the U.S., retailers say consumers will suffer as well.
KINNARD: The price point of Brazilian coffee is so crucial in the industry. So unfortunately, it's just going to be passed on to the consumer.
SOARES: Brazil says it's trying to resolve the issue diplomatically, hoping President Trump may be willing to negotiate. Knowing full well that in a
war over coffee, nobody wins.
Isa Soares, CNN.
(END VIDEOTAPE)
QUEST: I'm more of a cup of tea man.
Now, straight ahead, the train from coast to coast. It's the dream promised by a new American mega-merger.
(COMMERCIAL BREAK)
[16:51:29]
QUEST: All aboard. That's a wimpy whistle, if I may say so. Could we not do better than that? Anyway, two of America's largest rail companies, Union
Pacific and Norfolk Southern, have announced plans. It's a mega-merger, and they're going to create America's first transcontinental freight railroad.
The passenger service has been available since the 1800s.
Now, it's been an American dream for well over a century as you see in this season of HBO's the "Gilded Age."
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I have a vision. A railroad that will transform this country and perhaps the world.
UNIDENTIFIED MALE: An illusory vision.
UNIDENTIFIED MALE: I want to connect all the major cities of America to create a continuous line from New York to Chicago, and then from Chicago to
California without 10 stops along the way. It can be done.
UNIDENTIFIED MALE: Perhaps. But you say it too easily. This will be a feat to rival Moses parting the Red Sea.
(END VIDEO CLIP)
QUEST: Well, in many ways it was because it has taken so long.
Joining me now, William Vantuono, the editor-in-chief of "Railway Age."
Why was this deal done? These two companies have been around a long time. Union Pacific is twice the size of the other, so -- but why did they decide
it had to be done?
WILLIAM C. VANTUONO, EDITOR-IN-CHIEF, RAILWAY AGE: Well, you have to go back in history, railroad history of course. Railroad mergers have been
taking place since, well, almost since the rail industry was started in the United States almost 200 years ago. Both Union Pacific and Norfolk
Southern, their systems today, are the result of many, many mergers. It's probably --
QUEST: Was there an impetus for this particular one now, I guess is what I'm trying to understand.
VANTUONO: Yes. I would say that the timing, the timing is right from a regulatory and a political standpoint. The railroads, as strong as they are
and as healthy as they are, the reality is that they've been losing -- freight railroads have been losing market share to their competitors, to
trucks, for many, many, many years. And it's thought that the best way to deliver better service, faster service, more seamless service is by -- is
by merging and also shareholder value.
QUEST: Right. You see it makes sense in many ways because whenever I'm traveling around this magnificent country, most of the rail traffic is on -
- freight traffic on rail, these massively long trains that seem to go on for hours, in the middle of the night, and they owned the track, of course,
which is another issue for Amtrak, but that's a subject for a different day.
So do you see a -- do you see a future for a growth in rail traffic?
VANTUONO: Yes, I do. You know, growth has been talked about for quite some time. And the railroads are growing. There's been a lot of business
development now. There's been a lot of industrial development. Railroads are actively pursuing new customers.
[16:55:04]
But it's been -- it's been a struggle. And the key is going to be providing the service that the shippers expect. As you know we're -- you know, we're
in an age where if you're a consumer and bear in mind that the railroads don't serve consumers.
QUEST: Yes.
VANTUONO: Directly. OK. They provide the transportation of the -- for the raw materials in most cases. And in many cases also finished products like
automobiles and industrial products. But the service has to -- has to be there. You know, as consumers we can go online and we can order something
from Amazon and we know exactly when it's going to be shipped. And we know pretty much exactly when it's going to turn up.
We know the price, we know how long it's going to take. Well, railroad customers don't necessarily have that luxury.
QUEST: Right.
VANTUONO: You know, given -- yes. And -- but this this is what our -- in these times this is what we expect.
QUEST: Right.
VANTUONO: And the railroads have to get on board with that. And to do that they have to be as seamless as possible.
QUEST: We unfortunately like the trains, we're out of time. Thank you, sir. I'm grateful, as always for that. I appreciate your time tonight.
Now I need to update you with Wall Street, which finished lower. The investors are waiting for tomorrow's rate decision by the Fed. If they --
I'll tell you what, if they do cut interest rates, I'll buy a round of drinks. How about that? I'm so sure they're not going to. But you've got a
lot of big names reporting disappointing earnings. And that's what's happened. UnitedHealthcare finished more than 7 percent down. Profit
forecast well short of low expectations. Merck was also off.
We'll take a "Profitable Moment" after the break.
(COMMERCIAL BREAK)
QUEST: Say what you will about Donald Trump, but there'll be no aspect of American life and arguably global economics that will remain untouched by
the time he leaves office. We had a good example of that tonight with our interview with Sir Pascal Soriot of AstraZeneca. So prices in the United
States will come down, but that means that prices elsewhere will go up because this rebalancing, the U.S. has always paid more because consumers
demand more, and therefore the demand is there and therefore the prices go up.
But now what we heard tonight is that this can no longer continue. There has to be a rebalancing and Europe has to play its role more. And actually
that means probably paying more for drug prices. Once again, President Trump's force of sheer personality, character and will, whatever you like,
is forcing massive change in so many areas of global commerce.
Now you can arguably say it would have happened anyway. And some would say, well, it shouldn't happen or it should happen, but what you can't really
argue against is that change is taking place. What it'll all finally look like, I don't really know.
But when you get CEOs like we heard tonight giving the overview of an industry as important as pharmaceuticals, we all feel a lot better informed
of what's happening in the global economy.
And that's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New York. Whatever you're up to, I hope it's profitable. I'll see you tomorrow.
END
