Return to Transcripts main page
Quest Means Business
Emergency Hearing Over Fed; Senior CDC Officials Resign Amid Firing Of Monarez; U.S. Envoy Meets With Ukrainian Delegation in New York; Israel Declares Gaza City A "Dangerous Combat Zone"; Thailand Prime Minister Removed From Office Over Phone Call Scandal; Donald Trump Revokes Secret Service Detail For Kamala Harris; Rising Prices, Competition Squeeze Italy's Beach Clubs; Oman Air Is Focused On Its Niche, Not Huge Markets. Aired 4-5p ET
Aired August 29, 2025 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:14]
LYNDA KINKADE, CNN HOST: The closing bell is ringing on Wall Street, kicking off a holiday weekend here in the U.S. The New York City Parks
Commissioner and some lifeguards are doing the honors.
Concerns about inflation helped send the major averages lower today. Those are the markets, and these are the main events.
The battle over the Fed has its first day in court. A judge is weighing whether to temporarily keep Governor Lisa Cook in her position, despite
President Trump's decision to fire her.
A new U.S. tariff on packages is hurting small businesses around the world.
And how the price of a beach chair became the center of a political debate in Italy this summer.
Live from Atlanta. It is Friday, August 29th. I am Lynda Kincaid, in for Richard Quest, and this is QUEST MEANS BUSINESS.
Good evening.
Tonight, a court battle that could determine the future of the U.S. Federal Reserve is underway. A hearing over President Trump's attempt to fire Fed
Governor Lisa Cook ended without an immediate ruling. U.S. District Judge Jia Cobb spent more than two hours hearing arguments from Cook's attorney.
Cook wants the court to let her continue working while the legal battle plays out.
President Trump says he is removing Cook over allegations of mortgage fraud. Cook has called this accusation unproven, with her lawyer arguing
that the U.S. President simply wants to replace her with someone he prefers.
I want to bring in CNN legal analyst Joey Jackson for more.
Good to see you, Joey. Thanks for joining us.
JOEY JACKSON, CNN LEGAL ANALYST: Of course, Lynda. Good to be here.
KINKADE: So we are looking at a truly unprecedented legal battle right now. This is the first time in the Federal Reserve's 112-year history that a
sitting Governor Lisa Cook in this case, is facing removal by a President.
Just explain for us, you know how the President has legal authority to potentially remove a governor of the Fed Reserve without congressional
approval?
JACKSON: Yes, so that's the issue, really Lynda is really his presidential authority.
Now, presidents certainly have broad discretion with respect to who is in the Executive Branch, who is hired, who is fired. Oftentimes there are some
positions that require Senate confirmation, as this one has. The distinction here, though, is it in the Executive Branch as that term is
normally known.
Now when I say Executive Branch, what happens of course, in the U.S., you have the Executive Branch consisting of the President, and then you have
various other branches that carry out presidential policies. The IRS, for example, the Department of Justice is another example, and many other
branches.
Now, in this particular case, and of course, we have Congress, right, House and the Senate, and they do the legislative functions, passing laws. Then
we have that Supreme Court, right, the third branch of government, all of which are supposed to be co-equal. The distinction here, though, is that
this is really a separate branch. It was meant and designed when it was first created in 1913. You mentioned first time in 112 years, right, that
anything like this has happened.
It was meant and designed to be separate and apart from the President, to be insulated from the President, because it was felt that in order to set
economic policy, you need that independence. And what kind of independence am I speaking about? For example, if they have legislative recommendations,
meaning to Congress, as I just explained, they don't have to get Executive Branch approval. They just go and they do what they need to do.
There are other instances, right, which in terms of separating them from presidential authority. So the question here is, although the President is
the chief executive, and certainly he has vast powers, whether that extends to actually removing, firing someone in the Federal Reserve who is
separate, serving 14-year terms. And of course, you have to do it for cause, meaning there has to be if you do separate a particular reason. And
the issue also Lynda is whether there was a for cause or is this just him that is the President trying to exert control.
So that in broad strokes is what this is all about.
KINKADE: And of course, the timing of this is crucial, right? The Fed is due to meet next month to decide on interest rates. If Cook is still in
legal limbo here or removed, could that potentially delay the decision or undermine its legitimacy?
JACKSON: You know, so very interesting you mention that because that means with the timing, it really smacks, you can argue, of political overtones.
Now, the law is supposed to work where and when you speak of politics and interest rate setting, it should be divorced from that, right?
There should be no place if you're one of the seven members of the Reserve, you have the Chairperson and six members, it should be we are setting
economic policy because it is the right thing to do, not because President Trump says that you should cut interest rates, or Biden says you could
increase interest rates.
[16:05:04]
No, it should be about the long-term economic stability of the United States of America, and that's part and parcel to what I just explained,
which is why it has been so independent.
So when you look at the timing of it, oh, wait a minute. In mid-September, we are having this vote as to whether or not, and it is widely expected
that interest rates will be cut. The issue is will they be cut as much as this current President Trump wants them to be cut. And guess what? I
mentioned there is the chairperson and there are six others, if he is able to get rid of Miss Cook, Governor Cook because she is on the board, that is
what they call them, and he is able to appoint his own person, guess what? The person he appoints is going to vote to do exactly what he wants them to
do.
And so that's the issue of whether that's too political or whether it should remain isolated and really separate from presidential authority and
just focus on issues relating to the economy, divorce from anything the president wants to do.
And so now the courts have to decide whether or not her firing was lawful and appropriate, or whether or not it really transcends any legality. And
if it does, she will be kept in place, the vote will occur and we will see what happens if she is not in place at that time or Trump appoints someone,
too many unknowns at this point or whether she is in legal limbo and can vote, then we will see, because that will affect the mix, right? You need a
majority in order to move things forward in terms of economic policy.
KINKADE: All right, Joey Jackson, always great to get your analysis. Appreciate your time. Thank you.
JACKSON: Thanks, Lynda. Pleasure.
KINKADE: Well, U.S. Health Secretary RFK, Jr. has named his own deputy as the acting Director of the CDC. Jim O'Neill joined the HHS in June after
spending years as a Silicon Valley investor. He will take charge of CDC, which has been left in chaos after the abrupt firing of its director, Susan
Monarez.
Now, we are told that she clashed with Kennedy over vaccine policy and other matters. CNN's Kaitlan Collins spoke with three former CDC leaders
who resigned in the wake of her firing.
(BEGIN VIDEO CLIP)
DR. DANIEL JERNIGAN, FORMER DIRECTOR, NATIONAL CENTER FOR EMERGING AND ZOONOTIC INFECTIOUS DISEASES: We've been through multiple different
administrations. We've been able to work with a lot of different folks, different ideologies, but we always focused on the science.
Right now, I am not sure.
DR. DEBRA HOURY, FORMER CDC CHIEF SCIENCE AND MEDICAL OFFICER: If it is coming from CDC scientists, you can trust it. If it is coming from the
administration and hasn't been cleared by CDC scientists or reviewed by it, then I would have concerns.
DR. DEMETRE DASKALAKIS, FORMER DIRECTOR, NATIONAL CENTER FOR IMMUNIZATION AND RESPIRATORY DISEASE: I think that the disregard for experts, the clear
statement that experts should not be trusted, really makes it seem unlikely that his mission for CDC is to be a bastion of scientific expertise.
The direction that the country's public health is going is not one that is evidence based or science based, which is why our resignations are really
together, are trying to raise a red flag for everyone.
(END VIDEO CLIP)
KINKADE: Ukrainian officials met with U.S. Envoy Steve Witkoff in New York today to "push forward real diplomacy" as peace talks with Russia appear to
be losing steam.
The death toll from a massive Russian air assault on Kyiv earlier this week jumped to more than two dozen people. Ukraine's President said the
fatalities include four children.
Now, that attack came about two weeks after U.S. President Trump met with his Russian counterpart in Alaska and raised hopes for a meeting between
President Vladimir Putin and Volodymyr Zelenskyy.
Our Jennifer Hansler is in Washington for more at the State Department.
Good to have you with us, Jennifer.
So just take us through what happened today between the officials on the U.S. side and the Ukrainian side. Have they made any progress when it comes
to security aid or diplomacy?
JENNIFER HANSLER, CNN STATE DEPARTMENT PRODUCER: Well, Lynda, it does not seem like there has been a lot of progress, and notably, we have yet to
hear any sort of readout from the U.S. side of that meeting in New York this morning.
The Ukrainians, however, put out a fairly lengthy statement after that meeting and sort of the through line was that they want to see more
pressure on Moscow to fulfill any sort of diplomacy, and they are trying to drive home the point that they are ready to be a good faith partner in
those efforts to secure a peace agreement.
Now, Andrii Yermak put out a statement saying, "We believe that global pressure is needed to ensure Russia is genuinely ready to move forward
toward peace and in particular, to hold critically important leaders meetings for that purpose."
Now, we know they discussed the potential for such a meeting between President Zelenskyy and Putin. Moscow, to this point, has not given any
indication that they are ready to sit down at that level.
And notably, Lynda, in this meeting, Yermak said they invited Special Envoy Steve Witkoff to Ukraine. Now, of course, all of this is happening as there
are still ongoing discussions to try to firm up any sort of security guarantees that would underlay any sort of peace deal if one was reached.
There is the Coalition of the Willing, which is a multinational effort that is involving European and other nations that are trying to firm up what
they could contribute to any sort of peace deal, any sort of security guarantee?
I was told by a European source today that there has been progress on that front, that countries are willing to provide troops and aircraft and things
of that nature to try to have this in place that they can present then to the United States as they develop their own security guarantee proposal and
try to move things forward.
[16:10:18]
But of course, it is going to come down to whether Russia and Ukraine are willing to actually get to the table together, and it does not seem like
Moscow is at that point yet -- Lynda.
KINKADE: It certainly doesn't, but we know also today, Jennifer, that European leaders were discussing this and 26 out of 27 E.U. countries have
now formally demanded that Russia end hostilities.
How is the U.S. working with its European allies to coordinate a unified diplomatic response?
HANSLER: Well, they are having those discussions on the security guarantees. That is happening mostly on the military side of things,
though, Secretary of State Marco Rubio is sort of overseeing these initiatives on the National Security Council level. However, there is also
much more of a push from the European countries to put the pressure on Russia to actually do any sort of diplomacy on this front.
The U.S., for its part, has threatened these severe consequences. We've heard from President Trump saying there would be severe consequences, but
there has been no timeline for actually imposing any sort of harsher sanctions on this front or any sort of punitive measures. So it has been
the Europeans that have sort of put the pressure on Moscow here, and we have yet to hear anything from the U.S. that they are ready to join their
European allies in doing so -- Lynda.
KINKADE: All right, Jennifer Hansler at the State Department, our thanks to you.
Well, still to come, an exemption that allowed people to import low cost goods into the U.S. duty free has now ended. I am going to speak to an
Australian jewelry maker about how it is affecting her business. Stay with us. You're watching QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
[16:14:27]
KINKADE: Welcome back, I am Lynda Kinkade.
The exemption that allowed low cost shipments to enter the U.S. duty free is no more.
The De Minimis Rule had applied to packages worth less than $800.00. Now those deliveries are subject to tariffs. It has been left to shipping
agents like FedEx or the Royal Mail to collect that money. They can calculate the tariff based on the value of the item being sent, or they can
charge a flat fee based only on the tariff rate.
So if the item is coming from someplace like the E.U. or the U.K. where the tariff is less than the 16 percent, the fee is $80.00. If the tariff is
between 16 percent and 25 percent, like Vietnam, it is $160.00.
[16:15:07]
And of course, anything above 25 percent for countries like India or China, they will have a $200.00 tariff fee.
Well, Jess Van Den is the owner of Epheriell, an Australian jewelry maker. She joins us from Brisbane.
Thanks for getting up bright and early there to join us. We appreciate it.
JESS VAN DEN, AUSTRALIAN JEWELRY MAKER, EPHERIELL: Good day and thanks for having me.
KINKADE: So just tell us, for those who don't know, a little bit about your business and just how important are U.S. customers to you?
VAN DEN: Yes, so my jewelry business, Epheriell is a handmade family business. My husband and I run it here in Australia and the U.S. has up to
this point been 30 to 40 percent of my sales until a few weeks ago.
KINKADE: Wow! And so the Trump administration is arguing that 92 percent of packages that are coming into the U.S. haven't been paying any tariffs, and
that's costing the U.S. billions of dollars in lost tariffs.
But as a result of this policy change, there are many Postal Services like the Australian Post that are saying we can't deliver because we can't
handle all the logistics it is going to take to figure out these tariffs.
So how does that affect you if the Australian Post just won't send your packages?
VAN DEN: Well, we are just really stuck. Like I mean there are other options like FedEx for example, but the cost is just so prohibitive for a
small business like mine that it is not really a viable option.
And yes, so we don't know when Australia Post is going to be able to sort this problem out and be able to actually ship again to the U.S., and of
course, you mentioned earlier the main issue for me and why I actually stopped shipping a few weeks ago is that special duty fee where coming from
Australia, a package might have a fee of $80.00 on it, and I can't imagine many of my customers would be happy about that sort of fee.
KINKADE: Yes, exactly.
Have you heard from any of your customers at this point in time?
VAN DEN: Luckily, I got all of my orders out hopefully before the cutoff date and got them to America. But I have had a lot of support from people
saying, we understand, this is what you have to do and you know, I sent an e-mail out to my customers and said, for the next six months, I really -- I
don't know, I don't know, I don't know when this will be sorted. I don't know if I will be able to ship to you again anytime soon. So we just --
It is just -- and that's the most stressful part, is that we don't know, you know, this just -- we woke up one day and suddenly we had a countdown
to not being able to ship to one of our biggest markets.
KINKADE: Yes, and of course, Australia is not alone. Postal Services in so many other countries like the U.K., Germany, France, Japan, India are all
in the same boat when it comes to having services that have been suspended.
Do you think, as we've seen in the past, that this sort of policy under the Trump administration might be reversed or at least suspended?
VAN DEN: I guess we can hope. And again, it comes back to that uncertainty. You know, I have friends and colleagues who -- for whom the American
audience is like 80 to 90 percent of their business, and they are basically out of business until this can be sorted out. People all over the world,
this is affecting.
And we just -- we have no clue about when everything is going to get back to normal, if it ever will get back to normal. I mean, Australia has a 10
percent tariff. You know, when we get to the point where I know that that's all that's going to be charged, we can handle that. But it is that
uncertainty and that extra fee and not knowing what our customers would potentially be charged when we can even ship to them that is really
stressful at this point in time.
KINKADE: Yes, I can only imagine, Jess, and it seemed to me that the main reason for a policy like this was to target imports from, you know, big,
big companies like Amazon and SHEIN and Shopify and to a smaller extent, you know, Etsy and eBay.
Just tell us about how other businesses that you know of, like indie, small businesses are being caught up in this and what impact that could have on
the business long term?
VAN DEN: Well, some people it might just -- it might be the end for them. Like, honestly, because America is such a huge part of their market, they
might just have to close and go get a normal job or something. Like they can't indefinitely wait for this to be sorted out when they have lost all
their income and can't pay their bills, so it is actually having really profound impacts on a lot of people in a very negative way.
And yes, it is just -- it is a really hard time this year for small businesses like mine.
KINKADE: And what are you hearing from, you know, the Australian Post who has just suspended all these deliveries to the U.S. because, you know, for
example, like certain packages, if they are a gift and I am thinking, you know, I've got parents in Australia that are sending gifts to my children
here in the U.S., their grandkids, if it is a gift under $100.00, it is exempt. Right?
So if someone is sending a package from your business, it has to be under that threshold. Is that correct?
[16:20:10]
VAN DEN: Well, no, because it is not a gift, it is a commercial package. We can't class it as a gift, so it is not eligible.
KINKADE: Right? So it is only if someone in Australia buys it and sends it themselves, essentially it would be classified as a gift.
VAN DEN: Yes. Yes. If it is -- yes, it has to be like it has to be -- the recipient has to be receiving a gift; otherwise, it is a commercial package
and Australia Post is just not accepting any commercial packages at this time. And they did e-mail me a few days ago, I am a business customer, so I
got the e-mail where they sent out and told us that they were suspending shipping, which I think it was the 26th of July that they did that.
So, you know, with very little warning, really, and I know there were people scrambling to try to get stuff shipped, but it was too late.
KINKADE: Yes and it is going to be a struggle for, you know, places like the Australian Post that are already doing it tough.
We appreciate your time, Jess Van Den. We wish you all the best and hope for your sake that this policy is reversed or suspended in some way, shape
or form for small businesses like yours.
VAN DEN: Thanks, Lynda.
KINKADE: All right, well, that pressure from the U.S. is hanging over a big meeting in China this weekend. Chinese President Xi Jinping will host more
than 20 leaders, including Russian President Vladimir Putin and Indian Prime Minister Narendra Modi at a Regional Security Forum.
Here is more now from our Ivan Watson.
(BEGIN VIDEOTAPE)
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): Three world leaders whose countries dominate the map of Asia are about to meet in
China for a summit of the Shanghai Cooperation Organization, but looming over this Eurasian gathering will be the elephant not in the room.
YUN SUN, CHINA PROGRAM DIRECTOR, STIMSON CENTER: For this particular summit, U.S. may not be at the table, but U.S. is always present.
WATSON (voice over): India's Prime Minister Narendra Modi will make his first trip to China in seven years.
DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES OF AMERICA: We did it with India --
WATSON (voice over): Days after Trump slammed a 50 percent tariff on Indian exports to the U.S.
China and India's relationship cratered after a series of deadly clashes first erupted along their disputed border in 2020.
JOE BIDEN, FORMER PRESIDENT OF THE UNITED STATES OF AMERICA: So welcome again, Mr. Prime Minister. We have a big agenda.
WATSON (voice over): For decades, Washington has been grooming India as a Democratic counterbalance to China, but that suddenly changed in July when
Trump called India a dead economy and announced his punishing tariffs, insisting it was a penalty for buying Russian oil.
UNIDENTIFIED MALE: India needs the support of the United States and with that support no longer assured or in fact almost gone. Mr. Modi had no
option but to go and cut a deal with President Xi.
WATSON (voice over): Meanwhile, Russia's president will stand with his old friend Xi Jinping again shortly after Trump rolled out the red carpet for
Vladimir Putin in Alaska.
TRUMP: Thank you very much, Vladimir.
I am very disappointed with the conversation I had today with President Putin.
WATSON (voice over): But Trump's on again, off again overtures to the Russian strongman are unlikely to impact Russia and China's so-called no
limits partnership.
(VLADIMIR PUTIN speaking in foreign language.)
WATSON (voice over): Analysts say the glue that binds these once hostile neighbors ever closer is their shared perception of the U.S. as a threat.
SUN: For Washington's traditional terms that has been used is how do we break the Russia-China collusion? Well, it is a Catch 22 because your
desire to break their collusion is a reason that they collude at the first place.
WATSON (voice over): In 2022, just days before Russia's invasion of Ukraine, Putin and Xi called for the creation of a New World Order.
The U.S.' biggest global competitor is now capitalizing on Trump's chaotic diplomacy.
SUN: The message here is that we have seen China emphasize is China represent credibility. It represents stability, it represents policy
predictability.
WATSON (voice over): Expect Xi to use this summit to present a Chinese-led alternative to a world long dominated by the U.S.
Ivan Watson, CNN, Tianjin, China.
(END VIDEOTAPE)
KINKADE: Well, a bitcoin mining company backed by two of Donald Trump's sons could go public as soon as next month. American Bitcoin is merging
with Gryphon Digital Mining in an all stock deal, and some of its chief figures are in Asia to promote the crypto industry, as our Kristie Lu Stout
reports.
(BEGIN VIDEOTAPE)
ERIC TRUMP, PRESIDENT DONALD TRUMP'S SON AND VICE PRESIDENT OF TRUMP ORGANIZATION: Everybody wants Bitcoin. Everybody is buying Bitcoin.
KRISTIE LU STOUT, CNN INTERNATIONAL ANCHOR AND CORRESPONDENT (voice over): Eric trump is hyping crypto in Hong Kong just as Bitcoin is on fire.
In August, the digital asset hit a record high of $124,000.00. Crypto is booming on the back of policy support from Eric's father, U.S. President
Donald Trump and fans here at Bitcoin Asia are all in.
ROCKSTAR DEV, DEVELOPER: Bitcoin is just better technology for money.
UNIDENTIFIED MALE: Bitcoin is definitely going to play a very big part of the future.
UNIDENTIFIED FEMALE: I think it is going to be higher and higher.
UNIDENTIFIED FEMALE: We love Bitcoin.
STOUT (voice over): The Trump family has piled into crypto through a range of investments, including World Liberty Financial, Trump's very own meme
coin, and American Bitcoin set to start trading in September.
[16:25:23]
Chinese crypto mogul, Justin Sun, famous for paying over $6 million for a banana duct taped to a wall, pumped $75 million into World Liberty tokens.
Afterwards, U.S. Securities regulators hit pause on their civil fraud case against him.
HILLARY ALLEN, LAW PROFESSOR, AMERICAN UNIVERSITY: There are no limits on the opportunities that there are to seek favor with the person issuing
those crypto assets.
STOUT (voice over): After arranging Trump to speak at his conference last year --
TRUMP: I want to thank David Bailey for inviting me.
STOUT (voice over): Bailey is bringing the party to Hong Kong.
DAVID BAILEY, BITCOIN INVESTOR: China is one of the biggest Bitcoin mining locations in the world. They have one of the biggest user bases of Bitcoin
in the world. Their citizens own a huge percentage of the Bitcoin. They are a Bitcoin superpower and you know, my word of advice to China would be to
embrace being a Bitcoin superpower, just in the same way that the United States is embracing it and own it.
STOUT (voice over): In 2021, China banned crypto trading and mining over financial stability concerns, but sands are shifting.
STOUT (on camera): In August, Hong Kong became one of the first markets in the world to regulate issuers of fiat-backed stablecoins, that's crypto-
linked to real world currencies like the U.S. dollar. It is all part of a bigger bid for this Chinese city to become a digital assets hub.
ALLEN: The FOMO, the desire to be a hub comes from this, I think general sense in our society that we have that you need to be the leader in
whatever the latest hot technology is, because that's how you get progress, that's how you get growth.
There are a lot of negatives for society, and really the primary legal use case is speculation.
STOUT (voice over): "The New Yorker" estimates President Trump and his family have made over $2.3 billion from crypto ventures.
E. TRUMP: This is the time to buy. Volatility is your friend. Buy right now. Shut your eyes. Hold it for the next five years and you are going to
do terrifically well.
ROCKSTAR DEV: People love to hear Eric Trump. So I personally am not a big fan, but you know, like what he is doing for Bitcoin, I appreciate it.
STOUT (voice over): Judging from the hype here, they are banking on more upside to come in Asia.
Kristie Lu Stout, CNN, Hong Kong.
(END VIDEOTAPE)
KINKADE: Still ahead, Israel's military declares Gaza City a dangerous combat zone after it recovered the remains of two hostages. We will have
the latest next.
(COMMERCIAL BREAK)
[16:30:54]
KINKADE: Hello, I'm Lynda Kinkade. There's more QUEST MEANS BUSINESS in just a moment.
When U.S. President Donald Trump pulls Secret Service protection for former Vice President Kamala Harris.
And high rental costs are driving visitors away from Italy's beach clubs. I'll discuss this with Financial Times Milan's correspondent.
Before that, these are the headlines. A hearing over President Trump's attempt to fire Fed Reserve Governor Lisa Cook ended without any immediate
ruling. The judge spent more than two hours hearing arguments from Cook's attorney. The governor wants the court to let her continue working while
the legal battle plays out.
President Trump says he's removing the governor over allegations of mortgage fraud. Cook has called this accusation unproven.
Ukrainian delegates met with U.S. Special Envoy Steve Wyckoff in New York, the Ukrainian President Chief of Staff says he wants to, "Push forward with
real diplomacy with the U.S." It comes as the death toll in Kyiv is rising following Russia's second largest aerial attack since the war began.
Thailand's Prime Minister has been removed from office over a leaked phone call with Cambodia's former leader. The country's constitutional court
ruled on Friday that she violated ethics rules during that call, which took place back in June during heightened tensions between the two nations. The
ruling pushes Thailand into fresh political uncertainty.
A U.N. General Assembly is now less than two weeks away. The U.S. is following through on sanctions that will deny visas to members of the
Palestinian Authority and the Palestinian Liberation Organization.
The Trump administration is accusing the two organizations of continuing to support terrorism, but the U.S. is generally required to allow access for
foreign diplomats to the U.N.
The state department saying a short while ago that visa sanction waivers could be considered on a case by case basis, multiple allies of the U.S.
are expected to recognize a Palestinian state at that meeting, the Palestinian presidency expressed, "Deep regret and astonishment." The
spokesperson for the U.N. chief had this to say:
(BEGIN VIDEO CLIP)
STEPHANE DUJARRIC, SPOKESPERSON, U.N. SECRETARY-GENERAL: We obviously hope that this will be resolved. It is important that all member states,
permanent observers be able to be represented, especially, I think, in this case with the -- as we know, the upcoming two state solution. Meaning, that
that France and Saudi Arabia will host at the beginning of the G.A.
(END VIDEO CLIP)
KINKADE: In Gaza, the Israeli military has recovered the remains of two hostages. Israeli officials are vowing not to rest until all hostages are
brought home. CNN's Jeremy Diamond reports.
(BEGIN VIDEOTAPE)
JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, Israeli military bombardment and artillery shelling of Gaza City is indeed ramping up as
Israel prepares for a full-scale invasion of Gaza City, where nearly one million people live and are now at risk of being forcibly displaced.
The Israeli military indeed carrying out a number of strikes that have set off huge plumes of smoke, particularly in the northern part of Gaza City,
much of this seems to be a precursor for ground troop movement into that city.
As we know right now, there are Israeli troops that are operating just north of Gaza City in Jabalia, as well as in the southern Gaza City
neighborhood of Zeitoun. It's not clear how close we are to that ground troop movement actually happening in Gaza City, but the Israeli military
now declaring Gaza City a, "Dangerous combat zone", ending the temporary 10 hour per day tactical pauses that were meant to allow humanitarian aid to
flow in. In terms of that part of Gaza City, those tactical pauses effectively over now in Gaza City.
As an Israeli military official tells me, these are the initial stages of this Gaza City operation. 59 people have been killed over the course of the
past day, according to the Palestinian health ministry.
[16:35:10]
But of course, there are the broader risks of exacerbating the already awful humanitarian crisis in Gaza as a result of this military operation
with nearly a million people at risk of being forcibly displaced, and Gaza City, of course, already gripped by famine, according to U.N. experts.
Now, Israeli troops also operating elsewhere in Gaza and have recovered the bodies of two Israeli hostages. We only know the identity of one of those
hostages so far. His name is Ilan Weiss, he is 56, years old. He was killed in Hamas attack on October 7th on kibbutz Be'eri, and his body was then
taken into Gaza and has been held as a bargaining chip until now. But his body has now been returned to his family and will finally be able to get a
proper burial.
The fate of so many other hostages still hangs in the balance, though, there are now 48 hostages remaining in Gaza, 20 of whom are believed to be
alive. But we know, of course, that the conditions in which they are being held in are desperate.
Jeremy Diamond, CNN, Tel Aviv.
(END VIDEOTAPE)
KINKADE: Well, the court in Thailand has removed Prime Minister Paetongtarn Shinawatra from office. She's accused of a serious breach of ethics over a
phone call she had in June with Cambodia's former leader. During that call, she appeared to criticize her own country's military over border clashes
that led to the death of a Cambodian soldier.
Our Mike Valerio takes a closer look at the time Prime Ministers fall.
(BEGIN VIDEOTAPE)
MIKE VALERIO, CNN CORRESPONDENT (voice over): Well, Paetongtarn Shinawatra, who was Thailand's youngest ever serving Prime Minister, is now removed
from office, effective immediately.
So, what exactly is behind this move?
Well, a court in Thailand ruled that the now Former Prime Minister violated Thailand's ethics rules in a controversial phone call. The context this
goes back to tense border clashes over the summer between Thailand and Cambodia. Paetongtarn got on the phone with Cambodia's Former Prime
Minister, Hun Sen, and could be heard calling him, quote, uncle and appearing to criticize her own army's actions.
Paetongtarn added in that phone call that if Hun Sen, quote, wants anything, just tell me, and I will take care of it. End, quote, contentious
remarks that became the center of the court case against her. The phone call was recorded and leaked, confirmed as authentic by both sides, and
here is Paetongtarn after Friday's verdict.
PAETONGTARN SHINAWATRA, FORMER THAI PRIME MINISTER: First and foremost, with respect for the justice process, I accept the verdict of the
Constitutional Court. However, as a Thai person, I would like to affirm my sincerity and my genuine intention to always work for the country. In the
leaked audio clip, I didn't ask for anything for my personal gain.
VALERIO (voice over): So, this leaked phone call struck a nerve in Thailand, where nationalist fervor was already running high over the border
dispute and opponents accused Paetongtarn of compromising the country's national interests. The five-day conflict eventually resulted in at least
38 people dead, mostly civilians, and forced hundreds of thousands to flee their homes.
Paetongtarn is now the latest. The fourth member of her family to be dismissed as Premier. Her father, aunt and uncle have all been forced out
of office. So as for what happens now, Parliament will have to approve a new prime minister. If they can't, it raises the prospects of new
elections, and Thai voters may have to decide who becomes prime minister next.
Mike Valerio, CNN Seoul.
(END VIDEOTAPE)
KINKADE: Well, U.S. President Donald Trump has pulled Secret Service protection for Kamala Harris. As a former vice president, she was
guaranteed six months of protection, which expired on July 21st. CNN has learned that her detail was extended for an additional year by former
President Biden. Harris replaced Biden as the Democratic nominee for president last year, and is set to promote a new memoir about the campaign.
Well, Isaac Dovere is in Washington for more. Good to see you, Isaac.
So, President Trump has revoked, you know, Kamala Harris's Secret Service detail just before she's about to go on her book tour. Just explain the
rationale from the White House.
EDWARD-ISAAC DOVERE, CNN SENIOR REPORTER: Yes, well, so look, as you point out, she was entitled to just six months of protection after she left
office. That would have put it at July 21st, there was enough of a feeling of a threat that in the closing weeks of Joe Biden's Chairman office, he
signed this directive extending it. It had not been known publicly before that that was the case, but she had an extra year of protection, and all of
a sudden, yesterday, Donald Trump signed a letter that specifically targeted that directive and said that he's canceling it. He signed his own
-- his signature is on the bottom of it, it says you are hereby authorized to discontinue any security related procedures previously authorized by
executive memorandum, beyond those required by law, for the following individual, effective September 1st, 2025 former Vice President Kamala D.
Harris.
[16:40:22]
And again, his signature at the bottom of that, why this happened? Well, look, that's a good question. The White House has confirmed that this was
the decision made. They have not explained what the rationale was, whether there was any new threat assessment that they had from it.
We've also spoken to the United States Secret Service, and they said that the decision came from the White House, that it was not something that
started with the Secret Service, of them, reassessing where things were.
So, we don't know that there is any rationale to this that has been explained.
KINKADE: And this follows similar decisions, right, for other officials like Mike Pompeo and John Bolton, where Secret Service protections were
removed, were revoked. Is there a consistent policy guiding these sort of security decisions?
DOVERE: Well, what we know is that the president has been pulling back the protection of people that he does not like politically. That goes for John
Bolton. It goes for the children of Joe Biden, whose Secret Service protection he pulled back earlier than they may have had it pulled back
otherwise.
And in this case, obviously he and Kamala Harris ran against each other last year. He is canceling her security protection and doing it, it should
be said, this decision was made yesterday. Is effective September 1st. It is a very quick turnaround for Harris to figure out what sort of protection
she would have to deal with the ongoing threats that she may face, especially as you said, she had that on that book tour.
KINKADE: All right. Isaac Dovere, good to have you on the story. Thank you.
DOVERE: Thank you.
KINKADE: Well, still to come, the cost of chair and umbrella rentals are breaking the bank for beachgoers in Italy. The complaints are just one of
many for local beach clubs. We'll have all of that and much more coming up.
(COMMERCIAL BREAK)
[16:45:14]
KINKADE: Welcome back. I'm Lynda Kinkade.
Italian beach clubs have long been known for their family run hospitality. You rent a chair and an umbrella and a server brings you food and drinks.
Sounds quite delightful.
But now rising prices appear to be driving away visitors. A trade group says beach attendants fell 15 percent in July compared to the year before,
and these Italian institutions are already under pressure from the E.U. to be put up for public tender.
Well, Silvia Borrelli is the Milan correspondent for The Financial Times. She's been covering this story and joins us now live, good to have you with
us.
SILVIA SCIORILLI BORRELLI, MILAN CORRESPONDENT, FINANCIAL TIMES: Hi, Lynda.
KINKADE: So, Silvia, I do love being beside the seaside, but it is getting expensive here, but even more so in Italy, and it's driving away tourists.
So, just break down the costs of how expensive it is for a family to go to the beach in Italy.
BORRELLI: That's exactly right, especially for average Italians going to the beach, which was something just very typical and traditional for
Italian families over the summer, including because it's extremely hot over here, it's just becoming unaffordable. It's prices obviously are rising.
They're up 32 percent since 2021, there's an increasing number of Italians heading over to places like Albania, Croatia or even Cyprus, where the same
service so an umbrella and chairs can cost as low as five euro per day, as opposed to Italy, where average beaches cost around 25 or 30. That's just
for the sun bed, not including the food and places more expensive.
Places like Tuscany or Liguria, which are very popular with American tourists, with British and other international tourists, are even more
expensive. Prices can rise to as much as 200, 300 euro per day just for that service, and it's just driving away average Italians that are just
facing an economic crisis. Real wages are down in the country, and it's just becoming too much for normal families.
But obviously the numbers are still quite high when it comes to tourism in Italy, because you have a lot of foreign tourists with more spending power
that are able to come over to Italy and enjoy a great time.
KINKADE: It's interesting seeing Silvia, we're just showing on our screens, rows of empty beach chairs and umbrellas, which you see sometimes here in
Florida, right? Which you know you can't little -- you can't carve up a tiny little space on the sand with your own gear, because you've got all
these rows of empty seats and umbrellas, and it can be quite an eyesore.
What are the other factors, though, driving away tourists right now, is the cost of those the biggest thing? And is that going to be a wake up call
when it comes to public tender?
BORRELLI: Well, it is going to have to be a wakeup call, because these are public assets. Beaches are public assets, but they're operated privately,
usually by family-owned companies, and they've run these establishments now for more than 60 years, in some cases, without any kind of public tender,
for very little money.
Imagine the average yearly concession is 7000 euro. A normal family can even rent an apartment in cities like Milan or Rome for that low and these
establishments have revenues that can go over half a million euro, if not more, and sometimes payments are made by cash. And so it's very hard to
have an exact figure of how much money these establishments make.
So, the E.U. is asking Italy to put up these establishments the beach concessions for public tender, because obviously, they want to open up the
market to any market player who would like to have a try at running these establishments to make the market more competitive.
But successive governments have found it extremely hard to put this into practice. It's been 20 years of back and forth between Rome and Brussels,
and nothing has changed.
Now, they're supposed to go up for tender in 2027 but nothing yet. And this is extremely frustrating for Italians, including because these beach clubs
take up most of the beaches on the Italian coast. So, it's very hard to be able to go with your own gear and just sit at the beach without being
forced to pay for one of these sun umbrellas.
And so, obviously, people are just, you know, staying at home. 30 percent of Italians have opted for staycations this year or heading to other places
and even the mountains.
KINKADE: Yes, certainly frustrating. Hopefully it changes when those public tender goes when it goes out, when that request goes out.
Silvia Borrelli, we appreciate your time today. Thanks so much for joining us.
BORRELLI: Thank you.
KINKADE: Well, Oman Air is the latest to join the One World Alliance. Richard Quest sat down with the CEO to discuss his carrier's turnaround and
why he's targeting passengers flying direct to the country.
(COMMERCIAL BREAK)
[16:52:47]
KINKADE: Oman Air has officially become the 50th member -- the 15th member of the One World Alliance. The head of the Alliance says it will open up
existing and exciting customers -- connections, sorry, for customers.
Richard Quest sat down with the Oman Air CEO Con Korfiatis back in June. He says the key to success is being smart about which routes to offer.
(BEGIN VIDEOTAPE)
CON KORFIATIS, CEO, OMAN AIR: Oman is very unique. For those who have traveled there would know it's a beautiful destination, and it is different
to other parts of the Middle East, and I think with what goes on in the region, with the big guys as well, it's complimentary in terms of bringing
people in.
RICHARD QUEST, CNN HOST: But what is your goal? Is it point to point a national airline for Oman? Or is it transit traffic?
KORFIATIS: It is firstly, to be the direct connect to Oman, the direct flight is what distinguishes us from those we have to come one stop at the
same time. We're not saying transit traffic is unimportant, but it's not the prime focus which it used to be.
And so, the transit traffic selectively picking the right sort of connections and city pairs where we're not picking a big fight and we can
stand on their own and create a meaningful share.
QUEST: The justification for an airline in a geographically large, but population wise, smaller area, where others can do the traffic for you. The
Emirates can serve the rest of the world for the people of Oman.
KORFIATIS: I'd beg to differ, Richard, if that was the case, they'd be doing it, and they're not. We are the dominant share of the traffic, the
capacity. I mean, the guys next door are focused on huge markets and big mass volume, and we're a little bit more if you like niche.
QUEST: There's quite a few of you in the region that are niche airlines. I was thinking of yourselves, Royal Air Maroc, Royal Jordanian. All of you
are for your national carrier status, playing your role for your countries, which is interesting in the state age.
KORFIATIS: As I said, I think the region is big enough to have five giants or eight giants. Three is enough. Their own attractions in their countries
are different to what Oman has to offer as well. It's not the same experience. So, there is something different in Amman.
QUEST: I'm always slightly suspicious of niche airlines because you don't have the ability to offer that level of service. But you're going to tell
me otherwise.
[16:55:07]
KORFIATIS: I'm going to tell you otherwise.
When I came to the region eight, nine years ago, a lot of people were telling me about the most friendly people in the region of the Omanis. And
I think it's in the heart and soul of an Oman. And I think our service culture on board the aircraft as well translates. A big chunk of our crew
are Romani and those that we recruit, we train in the local culture.
QUEST: And your growth will be what? Now, I mean, you've got your cost base down. Where are you going to grow?
KORFIATIS: So, the cost-based reduction is still work in progress. That's a three year program. We're about a year -- almost a year and a half into
that.
In terms of growth, yes, we've shrunk. Took the airline in 2024 --
QUEST: Aren't you've taken a lot of criticism for that?
KORFIATIS: Well, we had a lot of complexity, which added to the cost base. Example, 20 wide body aircraft, six different aircraft configurations, not
really smart.
So, we've simplified our fleet to 787-9 specifically, and 737 Max aircraft. We've refocused the point to point more, and we've gone away from the roots
where it was just really price led, low yield, 85 percent transit, traffic. And once we've got the cost base to where it needs to be, we've then got a
platform to go back to growth.
(END VIDEOTAPE)
KINKADE: Well, for more about Oman during Richard for this weekend's "QUEST WORLD OF WONDER." That's Saturday at 8:30 p.m. in London, 9:30 p.m. Central
Europe time. Richard's visit to Oman was a big milestone, the 100th country he's ever visited. You can watch Richard attend a goat auction, swim in
Oman's crystal clear waters and descend into one of the world's deepest cave chambers.
It also airs next Monday and Tuesday. Following QUEST MEANS BUSINESS. Hopefully he'll let me carry his bags one day so I can tag along. That
sounds amazing.
Well, U.S. markets ending the week in the red after the latest consumer spending numbers just missed estimates. The Dow Jones fell 92 points. The
S&P 500 retreated from Thursday's records off six percent, the NASDAQ saw the worst of the day down more than one percent.
U.S. budget carrier Spirit Airlines filed for bankruptcy protection for the second time today. Dwindling cash and mounting losses derailed its
turnaround efforts since emerging its previous reorganization back in March.
Well, despite today's losses, the indices all posted gains this month. The Dow added two percent, it and the S&P 500 are now up for straight months.
The NASDAQ gained 1.6 percent investors are bracing for September, though historically, it's the worst month for stocks.
Well, that is QUEST MEANS BUSINESS. I'm Lynda Kinkade. "THE LEAD" with Jake Tapper starts now, and he'll be back with much more news in about an hour.
(COMMERCIAL BREAK)
END
