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Quest Means Business
US Adds 272,000 Jobs in May, Blowing Past Expectations; Biden Gives Speech on Democracy at Normandy Battle Site; YouTuber Arrested After Explosives Video Shoot; GameStop Shares Drop Amid Live Stream By Roaring Kitty. Aired 4-5p ET
Aired June 07, 2024 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:09]
JULIA CHATTERLEY, CNN INTERNATIONAL HOST: Citi ringing the closing bell there this Friday at the New York Stock Exchange in honor of Pride Month,
not enough to keep stocks in the green though, giving back some of their gains this week.
Those are the markets than these are the main event: Red hot US jobs numbers, dashing hopes for a Fed rate cut in the near future.
President Biden calls on Americans to defend democracy after the 80th anniversary of the D-Day landings.
And GameStop chares closing sharply lower on a volatile day that included a livestream from its mean meme stock supporter.
Live from New York. It's Friday, June 7th, I'm Julia Chatterley, in for Richard Quest, and this this QUEST MEANS BUSINESS.
And a good evening once again, tonight, a surprisingly strong jobs growth in the United States is dashing hopes that the Federal Reserve will cut
interest rates anytime soon.
The US economy adding 272,000 jobs net in May, that's far, far more than expected. And American workers earning more as well with wage growth coming
in touch stronger than expected, too. Average hourly earnings are now up full 4.1 percent on the year outpacing inflation.
On the flip side, however, unemployment rose to four percent for the first time in over two years. We will explain.
Andrew Hollenhorst is the chief US economist at Citi, and he joins us now.
Andrew, give me your take on these numbers. I know you've already decided it is going to have Federal Reserve rate cut implications because you've
pushed back your expectations for when they first make a cut.
ANDREW HOLLENHORST, CHIEF US ECONOMIST, CITI: That's right, Julia, it certainly matters for the Fed when they see that 272,000 jobs number and
what they're trying to do is cool this economy and bring down inflation. Those are the kind of jobs numbers that aren't necessarily going to do
that.
On the other hand, and you've mentioned it, we have the unemployment rate coming up to 4.0 percent, so that's kind of sending the opposite message.
So a really difficult point for the Fed here, I think where they have to look at all this data, figure out what they're going to do.
I think the jobs number alone is strong enough that we can rule out a rate cut in July and think that maybe September is when they'll be cutting
rates.
CHATTERLEY: Okay. So you are saying September, I mean in the aftermath of this, certainly interest rates and investors in the bond market were only
really fully pricing the first cut by December. So it really did create a bit of a jolt in these numbers.
I want to go back to what you said about sort of the offset with a four percent unemployment rate because there have been other signs of softening
if you go to what we call the Household Survey, which is the real gauge of conversations with households themselves, that's weakening, job openings
are weakening; so the picture is less obvious perhaps than this headline number suggests.
HOLLENHORST: That's absolutely right. Definitely more nuanced, more complicated than just the headline Payrolls Establishment Survey number,
and there is a bit of a mystery in the data because we keep getting these just extremely strong Monthly Establishment Survey payrolls readings where
the BLS goes out and surveys businesses.
When they the Bureau of Labor Statistics calls people and asks them, are you working? Are you looking for a job, that's where the unemployment rate
comes from. If you look at employment by that household survey measure, employment is only up about 400,000 over the last year. Compare that to
payrolls that are up 2.8 million, so we just have a huge difference between these two surveys and if I were a Fed official, I would be paying attention
to both and I would be looking at these other indicators that are suggesting we may have more loosening going on in the labor market.
CHATTERLEY: Okay. And that sort of feeds into your broader forecast because as we've discussed, you've said, look now, were going to do or you think
we're going to see the first cut from the Federal Reserve in September, but you also expect to cut then to follow in November and December.
What's driving that? Because now you're far more bearish or pessimistic about the economic outlook, perhaps to allow for that than investors are.
HOLLENHORST: Yes, and we're looking at these other labor market indicators. The household survey, maybe the most important one, but other things also,
if you look at the JOLTS survey, which gives us a hiring rate for the US economy, that hiring rate is down at 3.6 percent, the lowest that we've
seen in 10 years. So another indicator that is showing us, maybe things are a little bit softer.
What tends to happen with the labor market is that you have this slow movement upward in the unemployment rate and that's what we've seen
bottoming around 3.5 percent, now up at 4.0 percent.
[16:05:03]
And then it really accelerates just after that, and that's what we are concerned about is that, this seems to be playing out a standard cyclical
dynamic where there is some tightness that's loosening in the labor market, but then you just keep loosening even through those pre-pandemic norms.
That's where we think we are going to go. If that is what we are going to go, then you'll see the Fed that turns from their inflation mandate to
their employment mandate and cuts at every subsequent meeting.
CHATTERLEY: Yes, that's interesting because I was sort of surprised in a way at how you responded to that question because you had the choice that
you could have talked about jobs or you could have talked about inflation. And we know they're obviously tied, but it is interesting that we continue
to hone in on the jobs market.
We've got an inflation print next week, we are also going to hear from the Fed as well. What do you want to see from that? And hear from the Fed to
confirm your thinking on still the possibility of what -- three quarters of a percentage point rate cut this year?
HOLLENHORST: That's right. A lot more information out next week.
That core CPI inflation print and that is what I would look at, the month- on-month, excluding food and energy print that needs to continue to slow. We saw a lot stronger readings in the first quarter of this year, Fed
officials are feeling pretty good about where they were around December of last year.
Subsequently, inflation picked up. We need to see subsequent slowing in the inflation data, and then I think what we will hear from Chair Powell and
what would keep are kind of fed cut view on the table is just keeping all of these meetings live and acknowledging how volatile and sometimes even
conflicting the data have been that the Fed will be looking month by month at each of these data frames and making a decision based on the current
data.
CHATTERLEY: Yes, so he is just going to reiterate the message that we've had now for many months, which is we are still watching the data, and I
think to some extent not in any urgency to move here because they don't want -- what they don't want to do is, as we've discussed many times, I
think ease rates too early and have a pop back in inflation and sort of raise expectations of what we certainly don't want, which is price
pressures returning.
HOLLENHORST: That's right. It's going to be wait and see until we see some clear evidence that things are really moving in one direction or the other,
and with these kinds of data points, like very strong job growth, but an unemployment rate that's coming up, it is just very difficult to make that
judgment.
CHATTERLEY: Yes, so unfortunately, if you're out there watching, hoping for rate cuts, you're just going to have to wait a little bit longer.
Andrew Hollenhorst, great to chat with you, sir.
HOLLENHORST: That's right.
CHATTERLEY: Have a fantastic weekend.
Okay, 80 years after D-Day, US President Joe Biden summoned the spirits of Allied troops who fought at Normandy as he called on Americans to defend
democracy today.
He was speaking from Normandy where Army rangers scaled the cliffs in 1944 to dismantle German artillery. President Biden said those brave men would
want their modern fellow citizens to do their part to protect against authoritarianism.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES: I am not asking us to give or risk or lives, but they are asking us to care for others in our country
more than ourselves.
They're not asking us to do their job, they're asking us to do our job to protect freedom in our time, to defend democracy, to stand up aggression
abroad and at home, to be part of something bigger than ourselves.
(END VIDEO CLIP)
CHATTERLEY: Melissa Bell joins us now from Paris.
Melissa, another day, I think of comparing what we saw 80 years ago, the fight, the sacrifice with what is taking place with war in Europe today.
It was notable to me actually that we saw President Biden apologizing to President Zelenskyy for the delay in support at the same time as the
Ukrainians are saying, look, we are having to ration energy due to the infrastructure damage and they've suffered the highest civilian casualties
in almost a year as a result of what we've seen in Kharkiv, the results of those delays are bleak.
MELISSA BELL, CNN CORRESPONDENT: That's right, Julia, and I think what we've seen over the course of these last couple of days from President
Biden, but also from President Macron is that a keen eye on domestic audiences, both for the American and the French presidents, remember we've
got European elections coming up here very shortly in which the far-right is expected to do well, so an urgent message of support for democracy.
But also both men keeping a close eye on events in Ukraine, as you say, that apology coming, even as the gains being made in Russia are largely put
down to those delays.
Remember that if you cast your mind back at the end of last year, Kyiv must have wondered whether its friends were going to be a steadfast as they had
promised, they would be, not only with that important $61 billion aid package that was delayed for so long on Capitol Hill, but of course, at the
very time when Europeans were finding their own extra funding delayed by Hungarian opposition.
So a re-affirmation of their desire to keep on helping and to do so at a time when I think there is a greater sense of urgency given the reverses
there have been on the ground in Ukraine.
[16:10:11]
It is certainly what has helped focus the minds, Julia, when it has come to allowing Ukraine, for instance, use western weapons on Russian targets that
have themselves targeted Ukrainian positions, but it was also at the heart of what we heard from President Macron tonight. He met with President
Zelenskyy, a bilateral meeting here in Paris. There is a dinner going on at the Elysee Palace.
But before they sat down for supper, what the two men spoke of was the urgent need for France do more. France pledging now mirage jet fighters,
but also President Macron going back to that question that he raised in February of the need now to be able to help Ukrainians train their
personnel.
One of the things that President Macron is hoping is that the French are going to be able to train about four-and-a-half thousand Ukrainian
soldiers, a proper French brigade that would be created, which is another step further and beyond the red lines that had so long prevented any such
thing happening on Ukrainian soil. Again, that was raised at the end of the press conference.
So there is the show of support, the optics of the last few days, that important message about the historical line between 80 years ago and what
is happening now on the edges of Europe, a need to do more and to do better and to go further to meeting the needs of Ukrainians on the ground at a
time when you say it isn't just the frontlines that are feeling the pressure of Russian advances up in the northeast above Kharkiv, but the
civilian population, given what we've seen overnight, those renewed attacks on the civilian energy infrastructure and depleted energy reserves that
Ukraine has.
There is a sense that the country is facing something of a turning point, and what we heard here this week, and will continue here again tomorrow,
Julia since President Biden is now back in Paris, he is back from Normandy where you heard him speak those words.
He will lay a wreath here at the Tomb of the Unknown Soldier before state dinner with Emmanuel Macron in the evening and again, we expect both the
optics and the words of both men to speak to that. The need to hold firm because of what they stand for in their own countries, but also because of
the urgent needs on the ground in Ukraine -- Julia.
CHATTERLEY: Yes, not just about what happened 80 years ago, but also something very present today.
Melissa Bell in Paris there, thank you.
Now US First Lady Jill Biden attended D-Day ceremonies in Normandy on Thursday, then flew home to Delaware to attend Hunter Biden's trial on
federal gun charges and it was a pretty dramatic day in court for the president's son as his adult daughter, Naomi, gave emotional testimony
about her father's drug use and the defense scrapped its entire witness list.
It is still unclear if Hunter Biden will take the stand himself.
Paula Reid has more.
PAULA REID, CNN SENIOR LEGAL AFFAIRS CORRESPONDENT: Julia, many unexpected turns today in court here in Wilmington, Delaware. Let's first take the
fact that the jury got to go home early.
After the lunch break, the defense completely shifted up their strategy, no longer saying they're going to call James Biden, Hunter's uncle or other
witnesses. Instead, they say their last witness may or may not be Hunter Biden on Monday. They are going to have a long weekend to think about
whether they're going to call him.
But before this happened, Hunter Bidens daughter, Naomi Biden took the stand. Now she is an adult. She has graduated from law school. She is
married and she took the stand to testify about two instances which she saw her father in 2018.
The first was in the late summer of 2018. He was in rehab. He reached out to meet with her. He said he had arranged a trip if she would make it, she
and her then boyfriend, now husband made the trip out to California and she testified that at that time, he was as clean and as clear as she had seen
him since her uncle, Beau Biden had died in 2015. She testified that she was really proud of him at that time.
She said she also saw him in October, specifically October 19th, during the period where he owned the gun at the center of this case, and she said at
that time, he seemed as clean and clear as you did in California and that she was very hopeful.
Things took a bit of a turn once prosecutors got up. They appeared to catch the defense team a little off guard with text messages between Hunter and
Naomi during that trip in New York and those text messages show so that Hunter Biden would go kind of dark on his daughter for long periods of
time, texted her at two in the morning, trying to arrange to pick up his car that she had borrowed to move.
It also showed that she was reaching out, trying to meet up with him and that he was not being super cooperative. But she testified she had no
evidence that he was doing drugs or using drugs.
There is also the issue of his car. Remember the gun at the center of this case that was found by her aunt, Hallie Biden on October 23rd, and Hallie
Biden testified that not only did she he find the gun, she also found drugs and drug paraphernalia on October 23rd.
Well, on the stand his daughter, Naomi, testified that on the 19th she had that same car. She didn't see any evidence of drug paraphernalia. So
prosecutors tried to connect those two and said, well, if you didn't see any drug paraphernalia on the 19th, someone must have put it there before
the 23rd, insinuating that it was Hunter Biden.
So it is unclear exactly what the jury will conclude from this, but the jury was very attentive. I think there was a lot of compassion for Naomi in
the room, especially from the First Lady.
[16:15:10]
Her grandmother who was in the front row. Motion for Naomi's husband to sit right next to her. They've been all their supporting Hunter and clearly,
they were also supporting Naomi today -- Julia.
CHATTERLEY: Our thanks to Paula Reid there.
Now coming up on QUEST MEANS BUSINESS, an Irish fast food chain called Supermac's has won the legal battle with McDonald's. It all began with
Supermac's ambitions for European expansion.
We'll discuss with its founder, next.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to QUEST MEANS BUSINESS.
More than 370 million Europeans are eligible to vote to this weekend, helping shape the political direction of the EU for the next five years.
Voting began on Thursday and runs until Sunday for the candidates in the European Parliament. Far-right parties could soon emerge with big gains and
significantly more say.
Clare Sebastian explains why.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE (through translator): We will act by expelling delinquent, criminals, and foreign Islamists who pose a threat to national
security.
CLARE SEBASTIAN, CNN CORRESPONDENT (voice over): From threats of mass expulsions in France to openly Islamophobic campaign material, this from
far-right Portuguese party, Shega, asking, which Europe do you want?
Emboldened by winning elections at home, Europe's far right is pushing the boundaries as it eyes big gains in EU Parliament elections.
CATHERINE FIESCHI, VISITING FELLOW, EUROPEAN UNIVERSITY INSTITUTE: They've tried in different places and in different ways to kind of test the waters
and trying to be bolder if they can, right? To see how closely they can flirt with really inflammatory rhetoric.
SEBASTIAN (voice over): With just weeks to go, Germany's Alternative for Deutschland crossed a line after its lead candidate claimed the Nazi
paramilitary group the SS were, "not all criminals."
France's Marine Le Pen kicking the party out of her far right coalition in the EU Parliament.
SEBASTIAN (on camera): So it's really a sort of litmus test as to how far right is too far.
FIESCHI: Yes, that's right. Because, you know, these parties really live or die by their own domestic public opinions.
SEBASTIAN (voice over): For Hungary's voters, culture wars are playing well. Prime Minister Viktor Orban's party has put up billboards showing
opposition leaders carrying gender, among other things, on a dinner plate to Brussels.
[16:20:06]
Not clear yet how that will play out for France, where candidate Marion Marechal is promising to, "preserve our families, our values in the face of
wokeism."
Or Italy, "Pregnant men and woke madness. No thank you," reads this post from far right Deputy Prime Minister Matteo Salvini.
FIESCHI: For them, it's an upending of the natural order, right, which is, you know, sort of the heart of ultra-conservative ideology.
SEBASTIAN (voice over): And if that doesn't work, there's always the war in Ukraine.
Prime Minister Orban's party in Hungary holding a massive peace rally in recent days.
"Free, neutral, safe," one slogan from Austria's lead far right candidate, calling for an end to, "warmongering" by Europe.
Here, though, divisions in Europe's far right are stark. Italy's Giorgia Meloni, a key supporter of aid for Ukraine.
And so, in what could be Europe's most right-wing Parliament ever, alliances may be blurred.
Clare Sebastian, CNN, London.
(END VIDEOTAPE)
CHATTERLEY: Now to a David versus Goliath battle in the European fast-food world, the Irish chain Supermac's has won its trademark battle with
McDonald's over the Big Mac name.
The EU General Court ruled that McDonald's has lost its trademark of that name in respect to chicken products in operating restaurants. The dispute
started when Supermac's decided to expand into Europe. McDonald's said it would confuse people because if its association with the Big Mac.
Pat McDonagh is the founder and managing director of Supermac's and he joins us now.
Pat just describe this moment and how it feels first and foremost, because I appreciate this was seven years in the making or the fighting.
PAT MCDONAGH, FOUNDER AND MANAGING DIRECTOR, SUPERMAC'S: Yes, well, we in Supermac's are delighted as the European Court came down on our side
because this started back in 2017 and even somewhat earlier where we applied for a trademark license or a trademark in the people, which is in
the Alicante's realm, and which is the people who decide or will give out trademarks or who will license the trademarks, whatever we want to say it.
And McDonald's objected to it, have said that there would be confusion between McDonald's and our company. And they objected to it on the grounds
that the menu was pretty much the same, the color of the layout and color of the design was much the same as such.
So we thought it wasn't anyways near. We have different types of products and different decor, different uniforms, et cetera and different color
scheme.
So basically, they objected to our application and we took a look at what they were doing and we realized then that has about 800 trademarks in
Europe, a lot of them which they didn't use, but which they prevented other companies from using and accordingly, we looked at that the Big Mac was
licensed foreign, was licensed for not alone, just a meat product, but also for chicken products and indeed for -- and we objected that.
And this is the end result of that basically that McDonald's were told that either you use it or lose it, so what it really has established is that
anyone or any company that is holding trademarks, unless than use them within five years, they lose the license for them.
CHATTERLEY: Yes. I mean, Europeans out there, I think are scratching their heads because to them, Big Mac is a beef burger, but I did discover that
actually a chicken Big Mac does exist in the United States. This obviously refers to Europe only.
But I think Pat, the deal here was that they didn't want you to have the Mac in your name because it is sort of in some way they thought contravened
and was confusing for people.
This is a big company, however, to take on. Were you daunted? I mean, its clever in a way, the route you took to beat them back and they're saying,
okay, it is fine, it doesn't matter, you know, we've still got Big Mac and people still know Big Mac, but I mean, how much money did you spend
fighting them?
MCDONAGH: It's quite a lot, but you know, when you believe in something, you have to stand by it and stand up for your beliefs.
So we have no issue with McDonald's using the Big Mac as a burger, what we had the issue with was that they objected to us using Supermac's and
register its trademark in Europe.
CHATTERLEY: Yes.
MCDONAGH: So really it was as a result of that that as they say, the case was taken, and it was a David and Goliath case, but sometimes you have to
fight for what you believe in.
CHATTERLEY: Yes, and certainly will.
[16:25:05]
So now, you are full steam ahead with the European expansion plans. I know you've obviously got the UK still to win over because that's a separate
system now, of course, post-Brexit.
But are you going to do the expansion that you initially began sort of looking at back in 2017?
MCDONAGH: Yes, it was as a result of a lot of inquiries we had on franchises in the UK at the time actually that we looked to see, could we
expand across Europe.
Now, we have to reassess where we are existing because time changes quite a lot, and there are some actually coincidentally, we had requests for
something like 50 franchises today right across Europe because of probably the publicity we have gotten in the last 24 hours or so.
So yes, we will be reassessing where we stand and looking forward to expanding, and certainly across Europe in the next few years.
CHATTERLEY: My producer, Ronan says that you got him through many nights while he was at university.
You obviously have Mighty Mac and McDonalds have Big Mac. Which one is better? Am I allowed to ask?
MCDONAGH: Oh look, we use fresh meat, fresh herbs, quality meat, so we will probably side with our own product.
CHATTERLEY: Diplomatically.
MCDONAGH: Our biggest seller happens to be the chicken breast sandwich, but anyway, that's another story.
CHATTERLEY: That's a whole another lawsuit.
Very quickly, the Irish deputy prime minister, I saw was campaigning ahead of the European election vote, of course, this weekend, and we was at a
Supermac's branch. Look. We've got him there.
Tough to politicize a burger, sir, but how closely are you watching this vote? How concerned are you and do you encourage people to get out there
and vote?
MCDONAGH: Absolutely, well, you know, I mean, because this decision was made by the European Parliament or the European Court of Justice in
Brussels, of course, it is a big decision, a big help to us.
But yes, I think there is a lot of turbulence right across the world at the moment, and it is important that everyone cast their votes and everyone has
their say because I think for the future, there is going to be a lot of differences of opinion. And therefore, encouraging that most people should
vote for whoever they think is going to be -- going to lead them. There is unique leadership now needed right across the world and it is important
that people fought for whoever they think is going to lead them at best for the next few years.
CHATTERLEY: Yes. Wise words, sir. The way I was told, if I don't vote, I don't have the right to complain. So yes, get out and vote.
Sir, great to chat with you and congratulations again on the win.
Pat McDonagh there.
MCDONAGH: Great.
CHATTERLEY: Supermac's boss.
Now the meme stock guru, Roaring Kitty streamed on YouTube for the first time in three years. It didn't help his sizable stake in GameStop, however,
whose shared plunged nearly 40 percent in the trading session.
We will bring you all the details after this.
(COMMERCIAL BREAK)
[16:31:54]
CHATTERLEY: Hello. I'm Julia Chatterley. There's more QUEST MEANS BUSINESS in a moment when aircraft delivery delays are starting to weigh on the
bottom line of major carriers. We'll hear from the chair of Turkish Airlines.
And how much money is too much? Music legend Gene Simmons tells Richard why he's still launching new business ventures at 74. Before that, the
headlines this hour.
The breaking news just in. A man has been arrested after assaulting Danish Prime Minister
Mette Frederiksen in Copenhagen on Friday. That's according to Denmark's public broadcaster. The Latvian Prime Minister says she's deeply shocked by
the attack and wishes her counterpart a speedy recovery. We'll keep you updated as we learn more.
U.S. officials have been privately urging Benny Gantz not to leave the Israeli war cabinet. The former Israeli Defense Minister has threatened to
withdraw from the government if the cabinet doesn't lay out a plan for the war. The U.S. is worried Gantz departure could threaten the ceasefire deal.
U.S. Supreme Court Justice Clarence Thomas acknowledges that Republican donor paid for his trip to Bali back in 2019. Gifts and travel, Thomas and
other justices received were detailed in financial disclosure reports released on Friday. Among them concert tickets Beyonce gave to Justice
Ketanji Brown Jackson valued at $3,700.
A YouTuber is facing federal charges after posting this footage that looks like it's straight out of the video game Grand Theft Auto. The post is
called destroying a Lamborghini with fireworks. Prosecutors say it was filmed in Southern California without any permit. The director has been
charged with putting an explosive on an aircraft. He could face up to 10 years in prison.
And GameStop shares closed nearly 40 percent lower on a volatile day that included a live stream by its main meme stock supporter. Keith Gill, better
known as Roaring Kitty went live on YouTube for the first time in three years. More than 600,000 people tuned in to hear what he had to say which
have to be said wasn't all that substantive. The GameStop had already beaten him to the punch too.
The company unexpectedly posted its latest results this morning. It reported a 30 percent drop in quarterly sales, though it had narrowed its
losses. The quarterly earnings had been scheduled to come out on Tuesday next week. Clare Duffy is in New York for us. It -- this has the sequel to
dumb money in the making, Clare. What did he have to say? Because I listened to it for a short while, and then, quite frankly, gave up.
CLARE DUFFY, CNN BUSINESS WRITER: Yes, Julie. I mean, this whole thing really sort of captured the absurdity of this revived mean stock -- mean
stock craze. He shows up. He's wearing sunglasses. He's wearing a fake bandage on his head. He is drinking a beer. At one point, somebody asks him
if he has a lawyer with him while he's doing this live stream. And he said no, but maybe I should.
[16:35:05]
And look, he sort of tried to explain his thesis here when it comes to his somebody asks him if he has a lawyer with him while he's doing this live
stream. And he said no, but maybe I should and look, he sort of tried to explain his thesis here when it comes to his investment in GameStop. He
said it is based on a feeling that I have. And he said the foundation of this feeling is the longtime outlook that a company like this has.
The prospect that it could work out very well in the long term, but in the short term, things are not going very well for him. He sits there and he's
watching in the background as the share price is going down, and then it gets halted, and then it goes down some more. Ultimately, as you said,
ending the day down about 40 percent which has wiped out about $50 million of the value of his holdings in this company.
And the thing that really got me is at the end of this stream, he says cheers and chugs the rest of his beer which, you know, maybe I would do if
I had just watched myself lose that amount of money in real time. But this isn't just about him anymore. This has potentially serious implications for
the people who might be inspired by him, perhaps bought GameStop shares earlier this week, when they were much higher, and now are also facing the
prospect of losing a lot of money, Julia.
CHATTERLEY: I would like to go back and watch it again, if I can possibly bear it, and see at what point he actually talked about real fundamentals,
quite frankly. But I will just make the point that I looked on the YouTube count description, and it says the Roaring Kitty channel and live streams
are for educational and entertainment purposes only. I don't provide personal investment advice or stock recommendations during the stream.
Really?
DUFFY: Yes.
CHATTERLEY: Oh, go on. Must been watching something else.
DUFFY: Well, important disclosure for him in this moment when reportedly, regulators are looking into his trading activity. And look, I mean, he can
talk all he wants about how he is not really giving investment advice, he warned people during the stream today that a lot of the companies that he
invests in or traditionally, very volatile, but it's clear whether he says he intends to or not, that the things he's saying do have an impact on this
stock.
And so, I certainly would be watching closely to see how regulators do end up viewing that.
CHATTERLEY: Yes. I hope they were watching the whole thing. Very quickly, because I mentioned it in the introduction and I think it's very important.
We were expecting GameStop's results on Tuesday next week. They clearly and I'm speculating, but assumed that the price would rise as a result of more
talk and him, funnily enough, coming on YouTube for the first time in three years. So, they pre-released numbers. And Clare, they were bad.
DUFFY: Yes, they were not great. The company reported that shares or I'm sorry, sales had fallen. Losses had narrowed, but the company still lost
$32.3 million in the first quarter, and it is interesting, if they ended up having to pre-release this in anticipation of Gill's live stream here, you
know, he says he believes in CEO, Ryan Cohen. He has faith in this company, but he may be making their lives more difficult by creating so much
volatility in the stock as they're trying to turn this company around.
CHATTERLEY: Yes. I mean, they're having to sell more stock to try and raise funds, and it helps if it's higher rather than lower but awkward if it's
been bid up for nefarious reasons. What a mess, Clare, and serious to your point. Clare Duffy, thank you.
Now airline executives are facing aircraft delivery delays. The chairman of Turkish Airlines tells us he's not expecting things to change anytime soon.
(COMMERCIAL BREAK)
[16:40:58]
CHATTERLEY: Welcome back. Aircraft delivery delays are starting to weigh on the bottom line of major carriers. Richard Quest spoke to the chairman of
Turkish Airlines, Ahmet Bolat said that while planes are in short supply, passengers, meanwhile, are plentiful.
(BEGIN VIDEO CLIP)
AHMET BOLAT, CHAIRMAN, TURKISH AIRLINES: There is a lack of aircraft in the market, lack of spare engines. So how to utilize the available aircraft.
Available asset is very important. There is no problem finding the passengers. Passengers is always there.
RICHARD QUEST, CNN INTERNATIONAL ANCHOR: Is it hitting your growth yet? And your ability to grow?
BOLAT: Maybe two, three percent. Not more than that. Our lease aircraft are not coming due to the delivery problems. We lease aircraft from Airbus and
Boeing on the -- from the assembly line, but they are going to be late. And what is affecting our agent actually. Agents supposed to have half of the
fleet with new generation narrowbodies. Right now we have only 20 percent.
QUEST: How do you manage that with difficulty obviously? It's the big stuff you need
BOLAT: No, what I mean is for the agent, it's the low cost. You know, the configuration is very straightforward. You don't have to have a fancy IFEs
and so on. But replacing the -- for TK, our brand, it will be different from our existing cabins and wet leases is possible for a jet, but for TK,
we never prefer wet leases.
QUEST: Where will you grow Turkish now? What markets are left to expand?
BOLAT: Richard, what we are really focusing now sustainability of the Turkish Airline because you have to make profit to sustain the growth. So,
we are after valuable passengers. What I mean is the passengers coming to Turkey. So, we identify 11 countries, U.S., Canada, Mexico and Indonesia,
Malaysia, Japan, Korea, China and Taiwan and Australia. And we are shooting for 10 million tourists from these countries. And these passengers, on the
average, brings $3,000 per person to Turkey.
QUEST: Your strategy is similar, in a sense. Emirates wants to bring people to Dubai, and they have a lot of transfer traffic as well. To a certain
extent, you're saying you want people to go to Turkey. But where does the transfer traffic become important?
BOLAT: Every seat on the aircraft should be full, but you have to make sure that this passenger brings value. You know, the tradeoff between spill cost
and spoiled cost, famous aviation economy. So, we are going to connect people. We will continue the bigger connector in the world. Any passenger
comes to Istanbul airport, we can connect them less than 2-1/2 hours on the average to his next destination.
But meanwhile, we are telling the people, look what you cannot find in the world. What you can find in Istanbul, Turkey is the culture, history and
gastronomy.
QUEST: Finally, sir, IATA says everybody's making money. Margins are only at three percent but I'm guessing your margins are higher.
BOLAT: Little higher. Yes.
QUEST: A little higher than that. Are these the good times?
BOLAT: Last year was better. And -- but now is more healthier because we have more competition, so that you can take care of yourselves. You --
right now, we are changing our business class seats and in two years, every Turkish (INAUDIBLE) passengers will have free internet but fast internet,
that's important. If there is a challenges, if there's a competition, then you try to find other ways to please the customers.
[16:45:00]
That's important, if there is a challenges, if there's a competition, then you try to find other ways to please the customers.
(END VIDEO CLIP)
CHATTERLEY: Richard Quest there with Ahmet Bolat at the IATA meeting this week in Dubai. Now some of the biggest names in aviation are also signaling
a positive outlook for the industry. For today's edition of Think Big, which had also sat down with Lufthansa's CEO to get a closer look at what
might be in store in the future.
(BEGIN VIDEO CLIP)
CARSTEN SPOHR, CHIEF EXECUTIVE OFFICER, LUFTHANSA GROUP: We lost three years on COVID, so it's now time to look ahead instead of, yes, getting
worried too much about the last years.
QUEST (voice-over): Are we facing a different environment now? Are things better than they were?
No, I -- let's say, I maintain my optimism that this industry, with a very healthy demand around the world and significant supply challenges around
the world, is moving towards a more healthy future as an industry. We are now at 15 euros profit per passenger and that is a good number if you look
back, but I think it's showing that profitability is increasing. The industry is able to invest sustainability. Investments can be made.
QUEST: How far are you prepared to compromise on ETA?
SPOHR: Well, we're not compromising on anything which would endanger the future of ETA. We are buying or investing into ETA because we believe in
the sustainable future for that company and anything which would not allow that company to have a future, obviously would decide or force us to decide
to step back from the transaction.
QUEST: The sustainability question. I mean, I -- you -- I don't know how many times I've heard everybody say, there's not enough stuff in the world
and there never will be enough, and the targets can't be reaching. What point is reality going to sink in in Europe?
SPOHR: There's realistic shortages of either physical availability of -- for example synthetic fuels, which we don't have. You need enormous amounts
of renewable energy to create enough synthetic fuels. We might not have that energy available in '26 and '27. '28 or we don't want to use it for
staff, but rather use it for somewhere else, mobility on the ground, heating of buildings.
So, I think this kind of discussion will take place. The industry stays committed but the passenger also has to be willing to pay for the
additional cost. So, I think there's a lot of realistic questions to be answered.
QUEST: I cannot decide if we're in the best of times or the worst of times, or somewhere in the middle. This industry makes money and then it loses
vast chunks of it.
SPOHR: This cycle of making money or that face of making money, I think will last longer. As I said, I'm optimistic about global demand being
fairly strong, stable, and at the same time, the old mistake of the industry creating over capacities. We are limited in reviewing our own
mistakes by engine shortages and airframe shortages. So --
QUEST: Somebody else is preventing you from actually making it --
(CROSSTALK)
SPOHR: I would also hope that we have learned from previous mistakes. But even if we have not, we won't be able to repeat them due to the shortages
on the supply side.
(END VIDEO CLIP)
CHATTERLEY: Now here on QUEST MEANS BUSINESS we know a thing or two about the bottom line. So does our next guest, Gene Simmons who started the band
Kiss. He tells Richard why he can never have enough money.
(COMMERCIAL BREAK)
[16:50:58]
CHATTERLEY: Welcome back. Gene Simmons, one of the founding members of the band Kiss turned 75 this year. And although his band has called it quits,
Simmons says he's never felt better. Gene has been a friend of this show for years and his nonstop attitude is nothing new. Just take a listen to
what he told Richard back in 2009.
(BEGIN VIDEO CLIP)
GENE SIMMONS, FORMER KISS MEMBER: You have to have a reason to get up every single day, because the real question is here, if you're the fastest human
being on earth, will you get up the next morning at the crack of dawn and try to beat your own fastest mile? If you don't, you're dead or waiting to
die. If you do, you're alive. Because it's never about the kill. It's always about the hunt. I am forever hunting.
(END VIDEO CLIP)
CHATTERLEY: It's all about the hunt. Richard caught up with Gene ahead of his European Summer Tour. They talked about the Kiss holograms he's working
on, and why he thinks you can never make too much money.
(BEGIN VIDEO CLIP)
SIMMONS: I'm no longer touring with Kiss. So, I've got a Gene Simmons solo band which is headlining festivals and so on. I'll be going to Europe mid-
July through mid-August, just having the time of my life.
QUEST: You've also been looking at this whole idea of Avatar, haven't you? I was -- earlier last year, I was with Bjorn in Sweden, and the whole Abba
experience that they've now put in London, which is actually ideal for Kiss's larger than life stage performances.
SIMMONS: Well, you're spot on again. That is the company that we have a relationship with, but I'm not going to be specific about that. And Kiss
avatars are indeed in the works. It's going to blow your mind. Anything you've ever encountered or could imagine. And it doesn't matter if you love
Kiss or not. This is going to be, you know, it's like Godzilla, 52 storeys tall is coming down the streets of Fifth Avenue.
It doesn't matter if you've never seen it. You just go, Oh my God, that's what it's like.
QUEST: This idea of selling the catalog, I understand business or a business program QUEST MEANS BUSINESS. I understand that there's a -- it's
a very good way of amortizing and releasing the value in the assets. Is it difficult to sell the catalog? Do you feel like you've sold a bit of
yourself?
SIMMONS: Well, there's emotional and then there's business and sell them the two make sense. You know, you've got to pick and choose your battles
wisely. So, I don't know about you, but as I get closer to the end of life, to the end of race, I speed up. I don't slow down. So, what am I going to
do with next numbers of hundreds of millions of dollars? And at a certain point, take the cash, my friend.
QUEST: You've been involved. You are very much a spokesperson for doing the right thing. How worried are you that what's happening in this country is
not good? Promises to get worse, and there's no easy solution?
SIMMONS: These are difficult times. I've never seen the country more polarized, but that's not entirely true. I'm old enough to have lived
through the Vietnam era where if you walked down the street and you happened to be in the wrong side or your hair was too long, and mine sent
back here, you would get your butt kicked in. America, love it or leave it used to be the phrase. So, there was real polarization based on a war that
half the country didn't want, and half the country thought should happen to stop the spread of communism in simple terms.
We will get out of darkness. Democracy will survive. Both candidates have flaws in them, as far as I'm concerned, but unfortunately, there's no room
for a third candidate.
QUEST: Final thought. How do you stay optimistic when we get to a certain age, we've got the aches and pains that go with it. But how does one
maintain --
[16:55:08]
SIMSSIONS: I don't.
QUEST: You don't?
SIMMONS: I'm blessed because genes are part of the magic of life. You're either born with the (INAUDIBLE) I'm 74. I'm going to be 75. I know you
don't want to hear that. I've never had a massage in my life. I've never been high or drunk and never smoked cigarettes. And I can, you know, I go
hiking three to five times. I'm feel more energetic now than I have in 20 years. Look, Jagger, God bless him, just went out with the stones at 80
years old and he's running around on stage much easier than perhaps you and I would. Well, maybe, maybe not as much as I am.
QUEST: Why do you want to keep doing money bags this, money bags that? You have earned enough money to sit up on your backside, pop your feet up and -
-
(CROSSTALK)
SIMMONS: I hope -- I hope -- I hope you never say that ever again to any living being but especially to yourself. There's no such thing as you have
enough money. But Richard Quest, my invitation to you as a friend is, if you ever have a spare dollar you don't want, please send it to me. That
will make me happier.
(END VIDEO CLIP)
CHATTERLEY: OK Coming up. We'll have the closing numbers from Wall Street right after this. Stay with us.
(COMMERCIAL BREAK)
CHURCH: So, a final round up for you today. Strong U.S. jobs report appears to make a Fed rate cut less likely in the near term. The reaction on Wall
Street, pretty muted. Take a look at that. The Dow fell just modestly, closing down just over 87 points after slipping in the last hour of trade.
Let me give you a look at some of the Dow components. Just to give you a sense. 3M finishing on top, closing more than 2-1/2 percent higher.
JPMorgan, also in the green. Goldman Sachs, not quite as lucky, dropping around point seven percent. McDonald's finishing near the bottom. We
discussed their legal battle loss with the Irish chain Supermax, UnitedHealth fell more than two percent in the session too. And a reminder
of one of our top stories today, GameStop shares closing nearly 40 percent lower on a day that included a live stream by its main stock booster.
Roaring Kitty went live on YouTube for the first time in three years. More than 600,000 people tuned in. GameStop posted their earnings this morning,
two days before they were scheduled to. Their sales slowed sharply from last year.
[17:00:05]
Don't buy this stock if you care about the fundamentals. That is QUEST MEANS BUSINESS. I'm Julia Chatterley. "THE LEAD" with Jake Tapper starts
now.
END
