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Quest Means Business
US Loosens Restrictions as Russian Strikes Pound Ukraine; Two Undersea Cables in Baltic Sea Disrupted; Trump Considers New Candidate for Treasury Secretary; Netflix Brings In Massive Audience With Tyson-Paul Fight; Biden Requests $100 Billion For Disaster Aid; British Airways Working To Fix Technical Issue Amid Delays. Aired 4-5p ET
Aired November 18, 2024 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:05]
JULIA CHATTERLEY, CNN INTERNATIONAL HOST: The countdown there and smiles and cheers from the New York Stock Exchange, not enough to lift the Dow
though, spending most of the day in negative territory. NASDAQ bucking the trend though, you can cheer Tesla on for helping to lift that market in
particular.
Those are the stocks and these are the main events: The US will allow Ukraine to use its long-range missiles in Russia, but is it too late to
make a difference?
Budget carrier, Spirit Airlines filing for bankruptcy.
And Netflix is the real champ; despite technical glitches, more than 60 million viewers see Jake Paul defeat Mike Tyson.
Live from New York, it is Monday, November 18th. I am Julia Chatterley in for Richard Quest and this is QUEST MEANS BUSINESS.
And a good evening once more.
Moscow, warning of radical escalation if Ukraine strikes inside Russia with long-range American missiles. President Biden gave Kyiv the greenlight over
the weekend. The Kremlin saying the move will make the conflict worse.
Ukraine's President Volodymyr Zelenskyy celebrating the decision. Russia is scaling up its war effort launching its largest aerial attack against
Ukraine in months, as Nick Paton Walsh reports.
NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT: Julia, be there no doubt, this is a monumental decision by the Biden White House,
partly because they have spent so many months prevaricating, delaying making this permission clear because they warned it would be so escalatory
towards Russia.
In the past, Russian President Vladimir Putin has warned that if US made and supplied missiles were fired at targets inside of Russia by Ukraine,
that would essentially make US and NATO party to the conflict. He didn't speak today, but his foreign minister reiterated that point of view and so
this is a significant moment in a war now nearing its thousandth day.
(BEGIN VIDEOTAPE)
WALSH (voice over): The search for survivors after a Russian missile attack on Sumy Sunday night, 11 people here were killed, two of them children,
when missiles hit a residential neighborhood in this city near Ukraine's border with Russia.
Hours later, at least eight people were killed in a strike on Odesa. Horrifically, this is now the norm for Ukraine under near constant
bombardment after a thousand days of war.
Zelenskyy saying strikes show "what Russia is really interested in, only war." That war is not going Ukraine's way right now with sustained and slow
losses along the eastern front, perhaps a reason for the stark and significant policy change from the White House Sunday. Sources telling CNN
that the US President Joe Biden, has finally given Ukraine the go ahead to use long range American weapons to strike inside Russia.
The weapons are primarily meant to help Ukraine hold on to Kursk, according to one US official, that's the region in Southern Russia where Ukrainians
launched a counteroffensive this summer. A potential bargaining chip for the Ukrainians in any future peace talks.
Biden had refused for months to provide the weapons to Ukraine and then to permit them to strike inside Russia with them, but like previous decisions
over HIMARS missiles, Abrams tanks and F-16 jets, Biden delayed and then finally consented.
This change is unlikely to alter the battlefield overnight owing to how few ATACMS Ukraine can get, but it is a critical decision showing this outgoing
White House is keen to help Ukraine and entangle the United States yet deeper into this war just months ahead of Donald Trump taking office.
VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): Hits are not made with words, such things don't need announcements. Missiles will speak
for themselves.
(UNIDENTIFIED FEMALE speaking in foreign language.)
WALSH (voice over): "For Ukrainians, this is a little too late," this lady says.
(UNIDENTIFIED MALE speaking in foreign language.)
WALSH (voice over): "It should have been done at the very beginning, when Russia was too weak," another man adds.
(UNIDENTIFIED FEMALE speaking in foreign language.)
WALSH (voice over): In Russia, the news is being reported on state TV but so far, silence from Russian President Vladimir Putin, who has previously
said Ukraine firing US supplied ATACMS would be the equivalent of NATO entering the war.
Putin's spokesperson Monday said Biden was throwing "oil on the fire of the conflict." It'll burn brighter as both sides seek to maneuver ahead of the
Trump presidency.
(END VIDEOTAPE)
WALSH (on camera): So, Julia, it is important to remind people that these weapons are few as they are in supply, are unlikely, if used by Ukraine to
hit targets inside of Russia to significantly change a course of a war in which Russia does have the ascendant momentum on the battlefield, but it
marks a moment where really the Biden administration, in its closing months, is throwing caution to the wind, and I think that is all part of
all sides trying to improve their positions ahead of Trump taking office in January -- Julia.
[16:05:20]
CHATTERLEY: Thanks to Nick Paton Walsh there.
Now, two communications cables under the Baltic Sea have been suddenly disrupted. The line connecting Lithuania and Sweden was cut Sunday morning
according to the telecom that owns it.
Finland and Germany are investigating whether a link between their countries was also severed. They fear it may have been a target of "hybrid
warfare."
Anna Stewart has more.
(BEGIN VIDEOTAPE)
ANNA STEWART, CNN REPORTER: Well, this comes weeks after the US warned it had detected increased Russian military activity around key undersea cables
and this is not the first time Russia has been considered a potential culprit for sabotage under the sea, although their involvement has never
been confirmed.
Cinia, the Finnish-state controlled company operating this undersea cable between Finland and Germany, says they are investigating the cause of the
fault. Cables like this are critical for digital communication accounting for around 95 percent of the world's online traffic. They are used for
everything from financial transactions and military communications to streaming video on social media.
However, important data flows are usually routed between different cables to avoid overreliance on any single link, which may be some good news here,
given it will take days or weeks to repair this link between Finland and Germany.
Anna Stewart, CNN, London.
(END VIDEOTAPE)
CHATTERLEY: Our thanks to Anna there, too.
Now Donald Trump is expanding the pool of candidates to become his Treasury Secretary. We are learning the president-elect is now considering former
Fed Governor Kevin Warsh and billionaire investor, Mark Rowan. The fight over who will get the job spilled out into the open this weekend.
Trump's close ally, Elon Musk pushing for Cantor Fitzgerald CEO, Howard Lutnick. Hedge fund manager, Scott Bessent has been viewed as the
frontrunner. Musk says he would be a business as usual choice, and that Lutnick would enact change. All of that jockeying that pushed Trump to
consider alternatives.
Kristen Holmes is with me.
Kristen, perhaps all the candidates here and perhaps some of the advisers learned that you don't tell Donald Trump what to do. What do we think about
these additional candidates and why more have been added?
KRISTEN HOLMES, CNN NATIONAL CORRESPONDENT: Yes, I mean, Julia, it sounds like this has become a complete knife fight behind-the-scenes. We know that
at one point, Donald Trump had kind of settled on hedge fund manager, Scott Bessent that he had said, okay, that the entire team around him was working
to make sure that this would happen and get out there with Scott Bessent as Secretary of Treasury. Then, that never happened.
And we are told that's because Howard Lutnick, who is, of course head of the transition team wanted to throw his hat in the ring. Now, we are told
that didn't rub everybody the right way, that essentially he had been in charge of the process and was this him using the process to benefit
himself, particularly given his relationship with Donald Trump?
But I was told by senior advisers that even Trump was not thrilled with the way that Howard Lutnick was handling this. Now, it came down to the two of
them. They've been going back and forth particularly knives out on Howard Lutnick's side, as we saw. Elon Musk weighing in for Lutnick and that's
when they decided to expand the pool.
And Julia, just so you know, they had actually told me on Friday that they were going to announce Treasury that day. The team that works behind the
transition, they were meeting together. Scott Bessent came back down to Mar-a-Lago to meet with Trump again and yet, crickets for the next several
days.
I had also been told Interior and Energy, which we did get over those two days, so clearly Treasury, there is a hang up here. Now over the next two
people, Kevin Warsh, as you mentioned, he was not only the governor there, but he also was a longtime adviser to Donald Trump. He has advised him in
the past on many financial issues, so he is a favorite among Donald Trump and his close allies; and also Mark Rowan. I am told that people really
like him, that he is really in the mix is what I was told specifically that this wasn't just a float, that Donald Trump was seriously considering him.
But how this all plays out, that's happening behind-the-scenes at Mar-a- Lago today. Again, both of them just basically being called up last minute, being told the field was expanding and asked to show up to talk to Donald
Trump today. We will see how it all plays out and when we actually get that announcement, which really is critical particularly for somebody who ran on
economy and economic proposals to have that Secretary of Treasury in place, that's really the next key position that Donald Trump needs to name.
CHATTERLEY: Yes, an important one to get right. That's for sure.
Kristen Holmes, good to have you. Thank you.
Let's talk more about this. Economist, Anthony Chan is with us now. Sir, great to have you with us.
Whatever you think about the cons or the pros of shaking up departments and enacting change, when you have the deepest bond market in the world, you
have the world's reserve currency and you're running a wartime deficit, not to mention the debt levels, surely you need status quo in the Treasury
Department. Agree or disagree?
[16:10:10]
ANTHONY CHAN, FORMER CHIEF ECONOMIST, JPMORGAN CHASE: Well, I think you need stability and stability often is tantamount to the status quo.
But again, you have so many different forces out there in the mix that this is a real challenging decision for the president-elect given that the
forces are pushing him in many, many directions and the key for the President-elect trump is to make it appear as though it is his decision. If
there is any vision or appearance that he is being pushed in one direction and he makes that choice, then that is something that is going to have
people start asking the question, is he really in control of the situation, or is he basically just doing what some of the people are telling him to
do, especially powerful players and that's why I think it is taking a little bit longer.
CHATTERLEY: Yes, railroaded perhaps, is another term we could use here. Do you think that is the fate that has perhaps befallen Lutnick and Bessent,
potentially? I mean, you could suggest both have their pros and again, both have their cons, or at least limitations.
CHAN: I agree, both of them have some strong pros and some strong cons, but I think you're spot on.
The fact that if the president-elect decided to pick Lutnick, which is the preferred candidate of Elon Musk, one of his biggest campaign donors, then
it would appear as though as Elon Musk is running the show and that is not something that I think the president-elect is going to tolerate.
And at the same time, Scott Bessent is somebody that the president liked, worked well. He loved the way his television profile looked, his
appearances. He has said that many times. But again, does he want to antagonize his biggest donor?
So, it is one of those things where you want to keep your biggest donor happy, but at the same time, you don't want to give the appearance that
they have too much power. So hence, these new two candidates, I don't think it is a coincidence that both candidates are going out of their way to
downplay the fact that they are in the running, they're not expressing any strong desires to have the job. They are not suggesting that they are
pressuring in any way the president to choose them.
I don't think any of that is a coincidence.
CHATTERLEY: Yes, they've learned a lesson, perhaps from other's experiences.
Just on the surface, Mark Rowan of Apollo, which is obviously a big private equity giant here in the United States, the challenges that I can see,
first and foremost is stock ownership perhaps in Apollo, his own interests. He is a deal maker, and we know they have to sort of segregate, I guess,
one could suggest that Trump perhaps is an exception to some degree, so that might follow.
But the ownership and assets and the control that he has in Apollo would be a challenge, at least personally, for him, perhaps to set aside to take
this role.
CHAN: No, I agree, but it is not a challenge that is insurmountable. I think that the Trump selection team certainly was aware of that and they
still are moving forward in that direction, but the other thing to keep in mind is that Kevin Warsh has experience. He was a Federal Reserve governor.
He was almost in the running and almost the top choice of the president- elect to be the next -- to be the Fed chairman. He of course, ended up picking Jerome Powell
But later on, the president-elect even suggested that there was some buyer's remorse, that he wanted to -- he regretted not picking Kevin Warsh.
He likes him. He likes the way he looks. And again, he is somebody that would be friendly and acceptable to the financial markets. And right now,
another criteria that the president has, he wants a candidate that will be acceptable to Wall Street, acceptable to financial markets.
Remember, the president often measures his performance by how the stock market is doing. So, he would like somebody that would be able to be
friendly, be able to maneuver and be acceptable to Wall Street. So in no way can you say that the Treasury Secretary decision is going to hurt the
stock market in any way.
CHATTERLEY: Yes, and I think the president-elect knows that better than most and will protect that, I think, at all costs.
Tennessee Senator Bill Hagerty, another name, I think that's been sort of thrown into the mix potentially as well. To your point about ensuring that
investors, whether they're domestic or internationally, are comfortable with this decision, are you basically saying whether it is sort of any now
of the latter three, we can add in the senator, too, would be a comfortable pick? Because certainly investors seemed a little bit unsure about Howard
Lutnick.
CHAN: Well, yes, I think that that's going to be an important criteria, and that is why I would say that right now, the two leading contenders, without
being in the room, have to be Kevin Warsh and Mark Rowan.
[16:15:02]
CHATTERLEY: Yes.
CHAN: I think that the first two candidates, unfortunately were impacted by that negative set of events, the knife fighting that you heard about. All
of those things were not to their advantage, and unfortunately, both of those two individuals are qualified, but unfortunately they were victims of
that situation, unfortunate situation.
CHATTERLEY: Yes, park your ego at the door because there are bigger ones awaiting.
Anthony, good to have you with us.
CHAN: That's right.
CHATTERLEY: Yes. Thank you so much for that.
CHAN: Oh, my pleasure. Take care.
CHATTERLEY: Great to chat with you, sir. Thank you.
Now, a low cost US airline has declared bankruptcy and its struggles could make flying more expensive for everyone in the States. Details next on
QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to QUEST MEANS BUSINESS.
Israel has been exchanging deadly fire with Hezbollah militants in Lebanon amid a US push for a ceasefire. Israeli authorities say a rocket attack
launched from Lebanon killed one woman and wounded dozens of others in Northern Israel.
The Lebanese Health Ministry reports at least four people were killed in Central Beirut when an Israeli airstrike struck just hundreds of meters
from Parliament. Israel has been escalating its campaign against Hezbollah amid the ongoing ceasefire talks.
Nic Robertson joins us now from Jerusalem.
Nic, good to have you with us.
There is an attempt, it seems, to build on the proposal that was submitted by the United States to Lebanon last week. And now I believe a White House
envoy is going to be in the region this week. How much cautious hope or optimism can we apply to the latest talks?
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: I think the guidance we are getting from US officials is that they're putting a lot of energy into
it. The State Department, a few hours ago, they said that they heard back from both the Lebanese and the Israeli side, and it does appear that their
envoy that President Biden's envoy, Amos Hochstein will be back in the region. There is an expectation that he will be in Beirut.
There still seems to be a disconnect on some of the issues and that is certainly something that the State Department spokesman was mentioning
earlier today, but the difference at the moment, as we understand it, and of course, we don't have oversight of all the details here is that on the
Israeli side, they say that there is progress being made, but they need to have the right and the ability to strike back if there is a violation of
the terms of the ceasefire.
[16:20:10]
Now, when the Lebanese prime minister and the speaker of the Lebanese Parliament were asked about this in different interviews over the weekend,
both have had a degree of oversight of the US proposal that has been passed onwards to Hezbollah, they say they weren't aware of this language of the
Right of Action or the freedom -- operational freedom to strike back by Israeli forces and that is a key issue, we understand.
We certainly heard it from some of Prime Minister Benjamin Netanyahu's right wing ministers in his Cabinet, saying, absolutely, they must have the
ability to strike back if there is a violation of the terms. We don't know what that looks like and what detail or lack of detail may or may not have
been discussed, but there does seem to be momentum.
So I think to your question, quite simply put, at the moment, there is still hope and the broad terms of this are very much still in play.
CHATTERLEY: We will keep our fingers crossed that they can make further progress, Nic, to your point.
I also want to ask you about reports of a looting over the weekend. It was a convoy, I believe, of more than a hundred aid trucks, but almost a
hundred of them were looted and the drivers were held at gunpoint. Can you tell us what happened and by whom?
ROBERTSON: This is an absolutely staggering and is real first and a real low in terms of what is happening in Gaza. Obviously, a huge pressure by
the United States and others and particularly humanitarian organizations, and particularly by the UN's main relief agency, UNRWA on Israeli
authorities to open up and get more aid into Gaza and the authorities, Israeli authorities say that they are passing it through, that its getting
stacked up at their crossing points and it can't go through.
But this weekend, on Saturday, UNRWA said the main UN agency for getting relief to Palestinians in Gaza, that they sent a convoy of 109 big, huge
food trucks; and of those, 97 were taken at gunpoint by gunmen and it is not clear who although, it does appear the Hamas-led authorities in Gaza
are pointing their fingers at certain members of certain tribes in the in the southeast of Gaza. We don't have independent reporting on that, but
that's who they appear to be blaming at the moment.
But not only did they loot all the food from these 97 trucks, but they've also taken the trucks as well. This is quite staggering. But what UNRWA is
saying here, this appears to be they say a failure of Israel to live up to its obligations under international law, to make sure that the more than
two million people in Gaza get access to food, to water, and they say that means that these trucks under international law don't cease to be Israel's
security responsibility once they cross into Gaza, because they say Israel has a responsibility and an obligation under international law for the
situation in Gaza.
UNRWA says that Israel is obliged to make sure that there is security for these trucks to reach the people who need the food, for the food to be able
to get to the people. Now, the breakdown in law and order has been going on for quite some time. We've seen looting, ad hoc looting of trucks for many,
many months now. But what we've witnessed and what the UN is reporting over the weekend is quite staggering by anyone's imagination, 97 huge food
trucks taken and the food also gone with them and not clear what's going to happen to it.
The implications likely that this food would reemerge on the black market to be sold at exorbitant prices to the residents of Gaza, who are already
beleaguered.
CHATTERLEY: Yes, and that's the ultimate challenge now and they have to somehow take action to try and prevent this happening again. The UNRWA
Commissioner General calling this an impossible environment to operate in for all concerned, to your point, Nic.
Great to have you with us. Thank you. Nic Robertson there in Jerusalem.
Okay, let's move on.
Spirit Airlines has filed for bankruptcy protection. The budget carrier says it will operate as usual, though while it restructures. Even so,
Spirit's problems could have a ripple effect on US air travel. The company is known for low-base fares. If it cuts back routes or is bought by another
airline, other carriers may no longer have to compete with its rock bottom pricing.
Pete Muntean joins us now.
Pete, although regular viewers and those that are familiar with this story will know that they tried to be sold twice and it didn't happen and I think
they've lost more than what -- $2.5 billion over the last four years. The key here is Chapter 11. It is sort of a car wash in airline terms. What is
this going to mean first and foremost, for the airline and then we will talk about passengers.
[16:25:10]
PETE MUNTEAN, CNN AVIATION CORRESPONDENT: The big thing that this changes is competition, competition, competition, because people love to hate on
Spirit.
CHATTERLEY: Yes.
MUNTEAN: But you should really care about this even if you don't fly on Spirit. It really changed the industry, ushered in the term ultra-low cost
carriers. There are more of them now, like Frontier and Allegiant, really forced the major airlines to introduce the notorious basic economy fare.
And the bottom line here is this could have big implications for every other US airline.
It is a really competitive industry, so this might -- keyword "might" -- lead to ticket prices going up on other airlines.
Here is the good news. If you have a ticket or a credit on Spirit Airlines, you will not notice any change for now. Spirit insists in a statement that
guests can continue to book and fly without interruption and can use all tickets, credits, and loyalty points as normal. Also, no impact on workers
here.
We are hearing from Spirits' flight attendants union that they will remain on the job. Their contract is in place. No changes to pay or benefits, so
no immediate job furloughs like we saw airlines begin to do during the start of the pandemic.
Also, Spirit underscores that its vendors will continue to be paid. But big questions now about what will happen to Spirit Airlines in the long run?
Frontier Airlines tried to merge with Spirit in 2022, just a few months after that, JetBlue swooped in and tried to do the same thing, but its
acquisition of spirit was blocked by the Justice Department on antitrust grounds. Frontier ended its merger plans with Spirit earlier this month,
that led to this bankruptcy filing. No more apparent lifelines for Spirit Airlines.
It is saddled with about $3 billion in debt, so really now, it is on passengers to pay attention here. A top airline consumer advocate tells me
that flights could be eliminated in the months ahead, so it is especially important to sign up for those alerts and check your flight status online
obsessively.
One silver lining here, though, Julia, unlikely to have an impact on Thanksgiving or holiday travel, the Thanksgiving rush here in the US begins
in just days. Kind of hard to believe it is already here.
CHATTERLEY: Yes, that's what I was going to ask. So if people have tickets on Spirit Airlines, they don't have to worry about the immediate impact
potentially on flights. But if they do have tickets for the future, keep an eye on any potential changes going forward.
I mean, the beauty of Chapter 11 is that the hope is that you can continue to operate as a growing concern, and you sort of clean your balance sheet
up, but there could be consequences, is the point. But at least for now, everything will be honored if you have a ticket already. Just be vigilant.
MUNTEAN: That is the big thing to underscore here and I am part of this story, too, you know. I have a $200.00 credit on Spirit Airlines, and now
we are trying to figure out when we are going to take a flight on Spirit so we can use that. So hopefully that benefit doesn't go away.
You know, so many people are wondering that as well, especially with the Thanksgiving rush around the corner. The really big and interesting thing
here is that international travel will also see a bit of a spike, so Spirit Airlines does fly to some international destinations mostly in North
America and Central America. Also, it seems that those Thanksgiving travelers may go across the pond where Thanksgiving isn't as big of a
thing, sometimes you can find a pretty good deal on a ticket.
CHATTERLEY: Fantastic. Pete, quickly, we will let you go. Get that ticket booked immediately and fly soon. Great to have you. Thank you. Pete Muntean
there.
All right, Donald Trump has picked a vocal critic of Big Tech to run the FCC. Brendan Carr has accused social media companies of censoring
conservatives. What that's going to mean for the next four years, up next.
(COMMERCIAL BREAK)
[16:31:43]
JULIA CHATTERLEY, CNN ANCHOR: Hello. I'm Julia Chatterley. And there's more QUEST MEANS BUSINESS in a moment when we're learning new details of a major
breach of security of one of Britain's Royal residences.
And Netflix announces a record-breaking audience for its live streamed boxing match between Jake Paul and Mike Tyson. The broadcast did, however,
have its fair share of issues. But before that, the headlines this hour.
The Biden administration is asking the U.S. Congress to approve a disaster relief request for an eye popping $100 billion. That includes aid for those
impacted by hurricanes Milton and Helene which devastated parts of Florida, North Carolina and Georgia.
Lawyers for Sean Diddy Combs are accusing prosecutors of violating their client's constitutional rights for obtaining the music mogul's personal
notes from his jail cell. They're asking the judge overseeing Combs' sex trafficking case to hold a hearing about it. Over the weekend, the
prosecution fired new allegations at Combs, claiming that he, based in part, on those notes, been trying to influence witnesses ahead of his
trial.
British Airways says it's working to fix a technical issue as flyers report delays on I.T. issues with the airline. The carrier's Web site appeared to
be down in the U.K. The spokesperson for Heathrow Airport said it's investigating the issue and that the airport systems were operating as
normal.
French songwriter Charles Dumont has died at the age of 95. He's best known for writing Edith Piaf's biggest hit, Non, Je ne regrette rien. She went on
to sing nearly 40 more of his songs. Dumont was a trumpeter by training, and also worked with Barbra Streisand.
Donald Trump has picked a vocal critic of big tech to chair the Federal Communications Commission. Brendan Carr is currently the Commission's
ranking Republican. Carr responded with this post on X saying we must dismantle the censorship cartel and restore free speech rights for everyday
Americans. Carr has accused social media companies under unfairly silencing conservative views.
He wants to scrap section 230 of the Communications Decency Act, which, in part, shields them from lawsuits over the way they moderate content. Brian
Stelter is with me now. Oh, Brian, it's going to be an exciting four years. There's a couple of things here. There's the belief that perhaps the
censorship of one political party or affiliation versus the other. And then there's the powers over big tech or, let's be clear, the lack of them right
now for the FCC, which requires Congress to act.
Can we start there on the probability of Congress being able to act to give the FCC powers, on what repealing section 230 would mean?
BRIAN STELTER, FORMER CNN CHIEF MEDIA CORRESPONDENT: Right. One man's content moderation is another man's censorship. And that idea that
conservatives have been silenced and censored online, it's one of the animating principles of Trump's campaign of his reelection. That's why
Brendan Carr, as the incoming chairman, made it the very first statement he made last night when Trump appointed him chairman.
The very first statement Carr made was, we are going to restore free speech rights to Americans.
[16:35:03]
Lot of researchers, a lot of his critics say this is a mostly made-up issue, but it's at the animating force for the GOP. As you said, the
question is whether Congress will give car more power. Right now, the FCC, this regulatory agency in the U.S. It oversees local T.V. stations, local
radio stations, but it has basically no ability to regulate Google or Facebook or any of those big tech platforms.
It would take an act of Congress to change that. Of course, there is going to be a Republican House Majority and a Republican majority in the Senate,
but in order to advance this agenda, it would require new legislation, and we have not seen Congress in the past three decades willing to introduce
new legislation about communication. So, count me as skeptical, Julia, that we'll actually see legislative change.
But I think what we are going to see -- what we're already seeing, is that Brendan Carr is going to use his bully pulpit to change the FCC to be a lot
louder about these issues. The big message he's sending so far is that it's not business as usual.
CHATTERLEY: How would be my next response, even assuming by some enormous miracle, let's call it that, after the last 30 years. And as you quite
rightly pointed out, the Republicans have the House and the Senate. They do manage to change legislation, or even if they don't, and they want to make
changes. How? How do you moderate or legislate or regulate better than we have today?
STELTER: I am not sure there's an answer to that question, to be perfectly honest because challenges these social networks face, they are, of course,
very imperfect, very flawed. I mean, we could spend the rest of the hour talking about all the problems that Google and Facebook, other giants have
when it comes to the content on these platforms. But as I said, one man's moderation is another man's censorship.
There is no clean answer to these questions. And I'm not sure that the American people would like the results of Congress if one, really one
party, the Republicans, decide to impose new rules on this matter. That's frankly, why this -- on, you know, imperfect status quo has remained for
many years. But look, Carr is going to be loud about this. He already wrote letters last week to the heads of Apple, Microsoft and Google.
He'll continue to do that. And I know, I think my impression speaking with tech executives is that they expect this is going to be uncomfortable. Even
if there's not new legislation, they expect that they're going to hear a lot of noise about this issue for the months and maybe years to come.
CHATTERLEY: Yes. And the conversation is important. As you said, it animated the campaign. I certainly get animated on this subject. I also
love the wallpaper, by the way, Brian. Fantastic.
STELTER: Thanks.
CHATTERLEY: Floral, fabulous. Brian Stelter, thank you.
Now. Donald Trump has also named Chris Wright to be his energy secretary. He currently serves as the CEO of fracking company Liberty Energy. Wright
has been a staunch supporter of fossil fuels. U.S. weekly, oil output is already at a record high, and international groups warn the world needs to
move away from fossil fuels to hit climate targets. Bill Weir is with me now. Bill, great to have you.
You can be a realist about this and understand and accept to some degree that we're going to need gas and oil for the next, probably several
decades. Unfortunately, while we transition to a greater use of renewable and then hopefully use renewable. Is this man a realist, or is he going to
be really pushing for greater dirty energy production?
BILL WEIR, CNN CHIEF CLIMATE CORRESPONDENT: It feels like he's an evangelist for the old way of fossil fuels. In fact, Donald Trump, by all
accounts, picked him because he has this very compelling conversion story that he when he was at MIT, he was being taught that there was a finite
amount of fossil fuels and that they were overheating the planet. But then he learned, when he got into the sector, that it was really a gift, and
that it could liberate the global south from having to pick up firewood to power their lives.
And of course, that leaves out sustainable and modern energy that's booming around the world and all the warnings from science and the evidence that we
see of the hidden cost of fossil fuels. But in the first administration, Donald Trump picked Texas Governor Rick Perry, who is a big champion of
fossil fuels in his state as well. This one goes directly to industry. This gentleman's company services about 20 percent of the fracking wells in
North America.
So, he has a huge financial stake. He was a big donor to the Trump campaign. And of course, one thing we need to remind ourselves is that the
main job of the Energy Secretary of the United States is taking care of the nuclear weapons stockpile. But this one obviously chosen because of his
belief in fossil fuels.
CHATTERLEY: Wow. I didn't even realize that in terms of the scope of the responsibility, which is -- which is pretty fascinating. Speaking of scope
of responsibilities, COP, what's the latest, Bill? Give us good news, please.
WEIR: I wish I could, Julia. It's not going well. Well, you know, though, they started with maybe a nine-page memo. They were wrestling with, talking
about a trillion-plus dollars of loss and damage for developing countries that has ballooned now a 25-page draft.
[16:40:01]
So many complications being added in. A lot of criticism to the Azerbaijani leadership for letting process sort of bogged down and petty conversations
when the whole goal is to try to get another agreement. There was no agreement in the biodiversity summit COP in Cali, Colombia last month. If
they fail here, it would be the first time since 2009. And Copenhagen, when the world didn't come out of one of these at least some agreement on how to
move forward right now and now, with the Trump threat to pull out entirely, these are really fragile times.
But a lot of island nations, developing countries in the African continent and elsewhere, hoping for some sort of an agreement from that -- guarantees
a more smooth, fair transition for those people who are feeling the ravages of this firsthand.
CHATTERLEY: Bill, do you think the election and the result of the election did in some way suck some of the oxygen out of the room at this meeting?
And perhaps mean that people weren't as assured in their approach to the -- to the loss fund?
WEIR: It's just -- you would -- you'd think so. It's basic psychology, right? When the biggest pupil in the class, the most powerful historical
polluter in the United States says we're not -- we're out. And then in Argentina, the Libertarian president there, Milei says we're out, and makes
a big show of that. And then those countries that are on the fence, they could go either way when it comes to their energy sources based on the
financing and the encouragement of the rest of the world.
It's a fragile moment and the timing, unfortunately, this is a timed test that science tells us and that physics doesn't wait for politics to sort
itself out with every day. The polar ice sheets are melting. I just was reading a new report of the fresh water dumping in off of these melting
glaciers changing the way the currents in the Atlantic Ocean moved weather around the world. This is really major stuff unfolding as we speak. But the
leadership globally on this couldn't be further from to the task.
CHATTERLEY: Yes. We, as a population and a people, can't wait for the politics. We have to act individually and hopefully collectively. We make a
difference ourselves. Because, yes, these guys are a bit of a pain in the bottom at the moment. Bill Weir, good to have you with us being cautious,
diplomatic. Thank you.
Now a major breach of security for one of Britain's Royal residences. Masked thieves stole vehicles from Windsor Castle while members of the
British royal family were believed to be asleep nearby. Police said the incident took place in October, and that the burglars entered a farm
building on raw land. Max Foster has more.
(BEGIN VIDEO CLIP)
MAX FOSTER, CNN ROYAL CORRESPONDENT (voice-over): You would have thought it was one of the most secure compounds in Britain, a base for all the U.K.'s
senior royals. But that didn't stop burglars from breaking into Windsor castle grounds. Police say thieves entered a farm building on the Crown
Estate land late on Sunday, October the 13th, stealing a pickup truck and a quad bike before making their escape.
The farm just minutes away from Windsor Castle and from Adelaide cottage where the Prince and Princess of Wales have a family home, and they were
likely there that night.
(END VIDEO CLIP)
FOSTER (on camera): There's no indication that the royal family were targeted or ever in any danger. But the incident does show another security
breach surrounding the Royals. Kate and William live on the estate in a cottage during school term time with their children, and they don't live
with any staff, so it does raise questions. And for their part, Kensington and Buckingham Palace both say they don't comment on security matters.
FOSTER (voice-over): The break in just days before King Charles and Queen Camilla's long flight to visit Australia and Samoa. The couple weren't at
Windsor when the break in took place. Incidents like this aren't new, and this one certainly not the most serious. in 2021 a man broke into Windsor
Castle itself, wearing a mask and armed with this weapon, a crossbow. The 19-year-old was hoping to kill Queen Elizabeth II but he was stopped before
he could harm her. Still the incident raising serious concerns about security around the royal
family.
Max Foster CNN, London.
(END VIDEO CLIP)
CHATTERLEY: Our thanks to Max there. Now Netflix says its Jake Paul versus Mike Tyson fight brought in a record number of live viewers. We'll talk
about the streaming giant's new strategy of leaning into live next.
(COMMERCIAL BREAK)
[16:47:08]
CHATTERLEY: Welcome back. Friday's bout between Jake Paul and Mike Tyson was by no means boxing's greatest match, but Netflix says it was a record-
breaking night for the company. Nonetheless, up to 65 million households were streaming the event around the world, at least, according to Netflix,
perhaps that's why some viewers reported problems with Netflix freezing and buffering Friday night.
Clare Duffy is in New York. Wow. Clare, technical issues aside, and we can talk about how bad they were to have 65 million people watching. This is
enormous. Do we know how long for? And any more details on how long they stuck around?
CLARE DUFFY, CNN BUSINESS WRITER: Yes, Julia. It is huge. I think that 65 million number was the peak number for that Paul-Tyson fight, but they said
on average, there were about 60 million households who watched much of this event. So, it is really significant, and it makes sense that Netflix is
trying to host more of these live events. It's invested in not just live sports, but also live comedy, live reality shows, because it's trying to
replace cable television and get more people to cut the cord.
And with this Paul-Tyson fight, you saw people doing the kind of thing that people used to do with big television events, hosting parties, gathering at
bars. This was a really significant moment that people gathered to watch, and that's the kind of thing that Netflix is really trying to get people to
do here, as it looks to be a replacement for cable television.
CHATTERLEY: Yes. I mean, it's fantastic. The question is, can you monetize that, Clare, and how do you monetize that going forward? Because what a
great number to be able to go to advertisers and say, hey, we had a live audience. There could have been interaction. And in a similar way, perhaps
to the Super Bowl. You know, this is an advertising opportunity and a huge one.
DUFFY: Exactly. Yes. I do think for Netflix, the big question is, can it continue to host these live events without some of the kinds of glitches
that we saw during this fight on Friday? You know, I myself had to reload Netflix a couple of times to get these buffering issues to end. Lots of
people reported the stream was paused, and you can imagine some unhappy customers, if people paid for Netflix specifically to be able to watch this
fight and then couldn't watch the whole thing because of these technical issues.
I think that is what Netflix is going to have to get under control here as it continues to invest in live events. I mean looking forward for the
company, it's planning to host two Christmas Day NFL events live, one of them Beyonce, will be performing the halftime show. The company doesn't
want to have upset customers who weren't able to watch Beyonce because of technical issues. And Netflix did acknowledge this about Friday's fight.
It said that this was a mega event and that its buffering systems were on the ropes. Essentially, it sounds like it didn't have the computing power
and it didn't correctly anticipate the number of people that would be -- will be watching. And so, I think as Netflix looks forward to this being a
monetization opportunity, first, it has to get these technical issues under control.
[16:50:03]
CHATTERLEY: I think one can presume that that's exactly what they're working on from now until December 25th for that halftime show. What a
great story. Clare, thank you so much for that.
DUFFY: Thanks.
CHATTERLEY: Clare Duffy there. All right. Tropicana has revamped its iconic orange juice bottle. We'll tell you why this slimmer bottle is causing
controversy and seeking sales, next.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to QUEST MEANS BUSINESS. Orange Juice drinkers are putting the squeeze on Tropicana after the company introduced a new bottle
design. Sales down almost 20 percent in October from the year before. The new bottle was rolled out over the summer. It's six ounces smaller and more
minimalist than the original. Tropicana recommends stores sell it at a lower price but many customers say they getting ripped off.
Nathaniel Meyerson is in New York for us. I love this story. So basically, they shrink the bottle, they tell retailers to reduce the price. Good luck
with that in this kind of environment. And then consumers think they're suffering shrink lesion, which they probably are.
NATHANIEL MEYERSON, CNN BUSINESS REPORTER: We've got -- and we've got it right here, Julia. When I went to the store, when I went to Walgreens
today, the price hadn't changed and that's really the problem with this new bottle. You know, Tropicana was expecting the retailers to drop the price,
but they didn't drop the price. So, consumers are left with the same price, but you have a bottle that's thinner, that smaller.
And, you know, the old Tropicana bottle, Julia, it was very distinct. It was kind of this, you know, nicely-shaped bottle. It had an interesting
crown for the cap. This new bottle does not have any of those characteristics. So, consumers see it on the shelves and they're like,
where's the old bottle?
CHATTERLEY: I mean, remind me, didn't they make a mess up like this with packaging before? I feel like this is a bit of a Deja vu moment.
MEYERSON: This -- very good memory, Julia. So, in 2009 Tropicana, they removed the image of the orange with the straw, that image that everybody
knows, they changed it to a logo of -- or an orange juice glass and people were just furious. They -- Tropicana lost another 20 percent in sales and
rolled it back just six weeks after they had launched this new bottle. So, Tropicana clearly has not learned its lesson and that is to be extra
careful with package and design.
[16:55:03]
CHATTERLEY: And their loss right now is simply oranges gain. Coca-Cola.
MEYERSON: It is -- it is. Coca-Cola, simply orange has about four percentage point of market share. It's amazing how quickly, you know, just
a new bottle can have that impact.
CHATTERLEY: Yes. Shrinkflation, don't mess with something that apparently is working without explaining why. Yes. Nathaniel, we like this story.
Great to have you with us. Thank you.
All right. Coming up. We'll have the final numbers from Wall Street right after this.
(COMMERCIAL BREAK)
CHATTERLEY: U.S. stocks closing a little mixed to start the week. The Dow dipping into the red, as you can see, losing around a 10th of a percent
there. The S&P 500 holding in the green up four-tenths of one percent. And the NASDAQ, the out performer, both the S&P and NASDAQ, in fact, looking to
bounce back from their worst week since September last week. And two stocks helping pull the NASDAQ higher.
Tesla gaining over five percent after Bloomberg said Trump's transition team plans to ease federal rules for self-driving cars. Tesla shares are up
more than 30 percent since Election Day. Wowses. Trump media and technology groups popped 16-1/2 percent too, according to the Financial Times, it's in
talks to buy a crypto trading firm.
That would do it, given the buoyancy in that sector. And that's QUEST MEANS BUSINESS. I'm Julia Chatterley. "THE LEAD" with Jake Tapper starts right
now.
JAKE TAPPER, CNN ANCHOR: -- THE LEAD. I'm Jake Tapper. This hour, your cell phone and the personal contents you have on it, not just photos and video,
but your call log, your private messages, you might be surprised who can access all of that data. Ronan Farrow is here tell us what he learned in
the compelling new investigation into spyware and how your device could be turned against you.
Plus, the shocking death of a Russian ballet star who like so many others in that country accidentally fell from a building's balcony.
[17:00:05]
And leading this hour, President-elect Trump defending his picks for the people he wants to serve --
END
