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First Move with Julia Chatterley

President Trump Says He Might Shut Twitter Down After The Social Media Platform Flagged Two Of His Tweets; Protest Continues In Hong Kong; SpaceX And NASA To Put Astronauts In Space For The First Time After Many Years. Aired 9-10a ET

Aired May 27, 2020 - 09:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[09:00:32]

RICHARD QUEST, CNN BUSINESS ANCHOR: Live from New York, I'm Richard Quest. It is the middle of the week, and this is what you need to know.

Twitter -- the threat of Twitter. President Trump says that he might shut Twitter down after the social media platform -- after two of his tweets,

two tweets, have now been flagged.

In Hong Kong, the protests continue. We need to assess exactly the severity and what the message from China will be on that.

And the return to space. This is everybody's -- and it should probably the best story of the day. SpaceX and NASA are trying to put -- or will

hopefully put people, astronauts, into space from U.S. soil, the first time for many years.

It is Wednesday. It's the middle of the week. This is FIRST MOVE.

A very good day to you. Julia Chatterley is off and I'm sitting in. We have an hour together to see what is happening. We will also have the opening

bell, of course, in a little while. The Dow and the futures are solidly higher so far.

Now, bearing in mind what we saw yesterday and the way we're seeing the market and the enthusiasm at the moment. It could be a second day of good

gains.

The NASDAQ futures are lagging. There is hope for improving economic activity in the United States. It is offsetting worsening U.S.-China

relations. It is the same underlying current and on any given day, one or the other seems to be more dominant.

China is still readying tough new security laws for Hong Kong.

News on a potential COVID vaccine is also helping what is happening. The Novavex CEO says its vaccine is looking promising and could be ready by the

end of the year. That still of course means we would have to go through the flu season for 2020 to get anywhere near the numbers.

As for the United States, the number of people who have died is now nearing 99,000, and 350,000 people worldwide have succumbed because of COVID.

Asia, a quick run around the Asia bosses. Japanese stocks gained on new stimulus. Japan's government has approved a $1.1 trillion package on top of

everything else. Europe is higher with financial and travel stocks among the best gains, not surprising.

The economies are opening up. There are firm dates for different parts of the economy that is why you're seeing Paris up two percent.

Let's immediately get to the drivers that are moving the markets and that we will be following throughout the course of the day.

In Hong Kong there has been more violence and police taking a zero tolerance approach. Three hundred demonstrators have been arrested over the

new controversial new security law that is passed by Beijing without Hong Kong's consent.

Ivan Watson is with us from Hong Kong and has been speaking in an exclusive interview with the Chief Secretary Carrie Lam.

Before we hear from Carrie Lam, the overnight demonstrations -- overnight to Europe and the United States day time of course for you -- the

demonstrations that we've seen, how would you rank them?

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Look, nowhere near the numbers we saw last year in more than six months of protests. The

police presence was enormous around the Legislative Council where this new law that would criminalize mocking the Chinese National Anthem was to be

discussed, the final vote on that have been pushed back a week.

The other piece of legislation is this National Security Law which is being drafted by the National People's Congress in Beijing which would

criminalize terrorism, sedition, subversion.

Police in Hong Kong say they arrested at least 300 people for illegal assembly, possessing weapons, things like that here in Hong Kong today.

I spoke with Matthew Cheung, he is the number two official in the Hong Kong administration and he tried to reassure business circles that the new

National Security Law would only affect a fraction of the people in this former British colony. Take a listen.

(BEGIN VIDEO CLIP)

MATTHEW CHEUNG, HONG KONG CHIEF SECRETARY FOR ADMINISTRATION: 99.99 percent of the Hong Kong population will not be affected.

They go about their lives, they continue their investments in Hong Kong, coming in and out of Hong Kong, free flow of capital, information, and so

on.

Foreign media most welcome here in Hong Kong.

[09:05:09]

WATSON: Could someone who is deemed or accused of being a terrorist or of committing subversion be taken to Mainland China for prosecution under this

new law?

CHEUNG: As I said, all of these are details yet to be announced. Everybody is waiting for it. So we are also following developments closely. We will

cooperate fully in the process and reflect the views, aspirations, and concerns of course of the local and international community.

WATSON: There are these concerns and people raising these questions and you are saying trust us, it'll get figured out. But you, personally, don't

have a say in the drafting of this legislation.

CHEUNG: The answers will be in the public arena before long. The drafting process takes a bit of time, but in the process, we take account of the

views, aspirations and concerns.

WATSON: Let me ask another question. There is very strict censorship in nearby Mainland China. Would that trickle into Hong Kong society? Into

social media sphere? Into media?

CHEUNG: I doubt it. I doubt it. It is Hong Kong's essential --

WATSON: Can you guarantee that?

CHEUNG: Well, it is commonsense.

(END VIDEO CLIP)

WATTERS: So, you can hear there, he is trying to reassure people that life will not change in Hong Kong, but doesn't have any of the details and can't

guarantee anything because he -- the number two official in the administration here is not a part of the drafting of this legislation,

which is being handled in the Chinese capital, Beijing.

And that is one of the questions, Richard, that has been raised by a number of governments around the world. Hong Kong is supposed to be ruled

autonomously in this one country two systems system that Hong Kongers are supposed to rule themselves until the year 2047.

And there is no indication whether this would be a one off, where Mainland China dictates to Hong Kong how it is governed or this is part of a

slippery slope.

And, again, this important official here in Hong Kong cannot provide guarantees because he is not a party to the process -- Richard.

QUEST: Ivan Watson in Hong Kong. We'll continue to watch. Thank you. As of course, if there are more developments, please come back. We'll talk more

about it.

Now, Elon Musk. History is to be made. There are so many firsts in what is happening today. SpaceX Falcon is to carry NASA astronauts to the Space

Station. Donald trump will attend today's launch.

Rachel Crane is with us at the Kennedy Space Center. I say there are so many firsts concerning this because you have got the first U.S. astronauts

taking off from the United States for a decade or more. You've got the first participation by a private company. There are lots of firsts. What

for you is the most exciting part about today?

RACHEL CRANE, CNN BUSINESS INNOVATIONS AND SPACE CORRESPONDENT: Well, Richard, first of all, fingers crossed that this launch happens today. The

weather is being closely monitored here at Kennedy Space Station.

As you can see now, the sun is shining, but a few minutes ago, there were torrential downpours and the weather isn't just important here at Kennedy

Space Center, it is being monitored all across the Eastern Seaboard, across North Atlantic and off the coast of the island that's because Crew Dragon

has a very, very unique end-to-end abort system.

This is something no other spacecraft in NASA's history has ever had. NASA says this potentially makes the spacecraft be most safe space craft they've

ever operated.

And for me, personally, Richard, the most exciting part is here to witness this historic event that we hope will take off today.

It's been nearly nine years since U.S. astronauts have launched American rockets from American soil. So, this is hopefully, it will be a very, very

historic day and we will be here to witness it.

QUEST: Now, the President will also be there to witness it, which adds an element to it. But I guess, what we're -- the other thing I'm fascinated

about is that NASA is launching during a pandemic and the measures they've had to ensure that the astronauts, themselves, have not caught coronavirus

and that those around them could not have infected them.

CRANE: That's correct, Richard. It is not just NASA having to take those precautions, also SpaceX. You know, a lot of their employees, the ones that

can, working from home, but of course NASA proceeded forward with this launch deeming it mission critical.

You can feel, though, the difference here at the Kennedy Space Center today. The fact that this is happening during a pandemic. The crowds, they

are nowhere to be seen. Even the media coverage.

Typically, there would be over 1,500 people credentialed for this event and there is just, you know, a few handfuls of us here today.

But NASA, you know, they tested the astronauts twice now to make sure they do not have COVID. As with any mission, they've been quarantined for two

weeks prior to lift-off.

Temperature checks being taken all across Kennedy here, and anyone that is coming into contact with the astronauts and everyone wearing masks and

protective gear.

So, you know, they are taking all of the proper precautions to make sure that the astronauts are safe, so they do not then infect anybody onboard

the station -- Richard.

[09:10:32]

QUEST: Okay. Quick question for a quick answer. What is your gut feeling? Will it launch today?

CRANE: You know, we're at 60 percent favorable weather at this point. I am praying that it takes off, but all I can go is with the data and right now,

they say 60 percent, so crossing these fingers, Richard. You'll be the first to see and know.

QUEST: All right. I will. Because if it launches, we will know hopefully with "Quest Means Business," we'll be on air at the time. Rachel, I am very

envious. Watching a launch is a tremendous experience. Thank you for joining us this morning. I appreciate it.

Donald Trump is threatening social media with more regulation or even closure after Twitter has now branded and put a mark against two of his

tweets.

Donie O'Sullivan is with me. The President's words basically leave little room for doubt. He says that the conservatives are not getting a fair crack

at the whip. They're being censored and he'll regulate or close them down. Can he?

DONIE O'SULLIVAN, CNN BUSINESS REPORTER: Essentially not. No, Richard. I mean, he could -- what lawmakers in Washington could do is they could make

it a lot more difficult and a lot more expensive for companies like Twitter to do business. They could bring in a whole lot of new laws and new rules.

Not about regulating speech as such, but making the companies responsible for threats that are made on their platform, hate that posted on their

platform, which I guess is sort of ironic enough coming from the President of the United States.

But you know, this was entirely predictable. Over all Memorial Weekend, the holiday weekend here in the United States, President Trump was tweeting

misinformation, falsely accused Joe Scarborough, a former Congressman and now TV host here of murder, was making false claims about mail-in ballots,

saying that the Governor in California was sending mail-in ballots to undocumented immigrants.

Of course, mail-in ballots are becoming a big issue here as America prepares for an election in the time of COVID-19.

So, really, I think he was testing the limits of what he could say on the platform. It is the first time that Twitter has really taken any action

against its most prolific user and right on cue pretty much on Tuesday evening when they did take this action, the President, his campaign, the

White House were immediately out there saying, this is anticonservative bias and that Twitter, they say, is trying to stifle free speech.

QUEST: I guess, Facebook hasn't followed suit as far as I know and others are watching. Do you get the feeling, Donie, this is Twitter putting its

toe in the water to see what would happen before doing anything more drastic such as actually removing a tweet or forbidding a tweet or taking

it -- I mean, can't imagine taking the account down.

O'SULLIVAN: Yes, it is so hard to know, Richard. I mean, you know as well as I do that Silicon Valley, these technology executives, they really don't

want to get in the fact checking business.

One, because it is politically explosive; but, two, it is pretty expensive. I mean, you can't really train algorithms to check facts in the way that is

demanded, so they have to hire human beings which eventually cuts into their bottom line.

So they have been really, really been slow. I mean, Trump has tweeted hundreds, if not thousands of pieces of misinformation down through the

years that Twitter has left to fly.

So, it's difficult to see or to really know I think what these companies want to do. They're inconsistent in implementing their own rules.

As you mentioned, Facebook, the exact same message actually. Trump posted the exact same message about mail-in ballots in California. He posted that

exact same message on Facebook and Facebook did nothing about it.

Meanwhile, Twitter and Facebook will go to Congress together as they've testified numerous times and say when it comes to misinformation about the

election, we're in sync, we're working together.

So, it is so difficult to know where this is going to go, but I think it is going to really be a hot political potato for Trump and for Democrats this

political cycle.

[09:15:09]

QUEST: Donie O'Sullivan, thank you. Anna Stewart is next. We will talk about the E.U. bailout proposals and the idea that they are going to

introduce some form of mutualized borrowing.

Anna Stewart is with me. The budget has been put out. This is a recovery plan. Is it part of the major normal budget or is this something special

that they are planning? And to thread the whole lot in there, Anna, is this mutualization of debt?

ANNA STEWART, CNN REPORTER: It is effectively mutualization of debt. It is not dissimilar to something we were talking about weeks and weeks ago that

was highly controversial, corona bonds.

Now, this is being attached to the next seven-year budget, so it is part of those negotiations, but that is separate, and the proposal today from the

E.U. Commission is for three quarters of a trillion euros to be given out to different sectors and different countries that need it most and are

separating that into 500 billion euros that will be given out in grants that do not have to be paid back, and 250 billion euros in loans.

This is crucial for the Southern European member states. Those that entered the pandemic already with heavy levels of debt, also those of course that

rely on tourism, so they are extremely badly hit economically due to lockdown -- Richard.

QUEST: Anna Stewart. Anna, thank you.

Now, let's take a look at the stories making news from around the world this morning.

And of course, we start with Latin America. It's become a new epicenter of the coronavirus pandemic with more infections reported per day than in

Europe or the United States.

More than 2.4 million cases have been diagnosed across the region and 140,000 people have died.

Here in the U.S., the presumptive Democratic presidential nominee, I do love the way we call him. That is -- in other words, he is likely to get

the job as the nominee -- strongly criticized President Trump for not wearing a facemask.

(BEGIN VIDEO CLIP)

JOE BIDEN (D), PRESUMPTIVE DEMOCRATIC PRESIDENTIAL NOMINEE: He is a fool. An absolute fool to talk that way. I mean, every leading doctor in the

world is saying we should wear a mask when you are in a crowd.

I think you've got a President that is supposed to lead by example, and I've watched the President yesterday wearing no mask, you know, and still

making fun of the fact that I wore a mask.

The truth of the matter is that I think you're supposed to lead by example.

(END VIDEO CLIP)

QUEST: Still to come on FIRST MOVE live from the living room as they say, a new SpaceX mission is poised to make history. The head of NASA will tell

me what it means for the U.S. Space Program.

And a kiosk that checks your temperature in under a second. The company whose technology could revolutionize the fight against COVID-19.

(COMMERCIAL BREAK)

[09:20:54]

QUEST: A warm welcome back to FIRST MOVE as we await the opening bell, I should say will just be with us in about 15 minutes or so, and we'll have a

look and see exactly how the markets are doing.

The futures are mixed, if you look at what is happening. Many big tech name firms are pulling back. The blue chips set to outperform after the Dow's

two percent rise on Tuesday. They now seem to be the one that is going to do it on Wednesday as well.

Economically sensitive small caps have risen for the fourth straight session. The Russell 2000 up almost 3.5 percent since Tuesday.

JPMorgan's Jamie Dimon says the U.S. could see a fairly rapid recovery later this year. He says JPMorgan will continue to boost credit reserves

for bad loans.

SpaceX is preparing to launch its first manned mission into space this afternoon. The SpaceX's Crew Dragon capsule will carry NASA astronauts to

the ISS, the International Space Station.

The Crew Dragon is a very different spacecraft than its predecessor, the shuttle. It was retired back in 2011. The crew sits in a capsule which is

launched from a rocket called Falcon 9 and they will be wearing sleek, one- piece space suits, not at all like the previous bulkier space suits.

Jim Bridenstine is the Administrator of NASA and he joins me now. Mr. Administrator, thank you, very good of you to give us time. So good to have

you.

Look, for you, what is the most significant part about what is being done today? Is it the return to space from U.S. soil? Is it the private

participation of SpaceX? Is it the prospect for the future? What gets you about it?

JIM BRIDENSTINE, ADMINISTRATOR, NASA: So, I think it is all of the above. What we are doing -- and I think this is it in a nutshell, we are ushering

in a new era in human space flight where NASA is a customer and we want to be one customer of many customers in a very robust commercial market place

in lower earth orbit.

But also have numerous providers that are competing on cost and innovation. When I we are a customer, NASA used to purchase, own and operate all of its

hardware to get to the International Space Station.

But now what we're saying is hey, we want to buy a service and we want you as the provider to go get customers that are not NASA, to drive down our

costs, but we also want to have numerous providers that are competing on cost and innovation again to drive down cost.

So this is a new era in human space flight where it is going to be done commercially and of course NASA is ready to step up to the plate and be a

customer.

QUEST: I'm glad you've taken us straight away down that road because we are a business program and we can now get our hands dirty on the business

of space. But Administrator, is it a real commercial market? At the end of the day ...

BRIDENSTINE: Absolutely.

QUEST: ... besides launching satellites, aren't you the only real customer for putting manned space at the moment?

BRIDENSTINE: Yes, at the moment, we are. But we have to think about what is happening on the International Space Station.

We are proving that we can compound pharmaceuticals in the micro gravity of space which we cannot do here on earth. We can create immunizations, for

example, we created an immunization for salmonella that we could not create in the gravity well of earth and because of that, lives around the world

are being saved.

Now, it is not that big of a deal in the United States of America, but in a lot of other countries, salmonella is a serious cause of death.

When we think about, right now, we are proving on the International Space Station that we can create human organs using adult stem cells. In other

words, we can use your skin cells to create an organ that is your own DNA.

Now, right now we are creating tissue, but eventually full organs and it is going to transform how we do Medicine here on earth.

These are commercial capabilities for the future and we believe a market in the future where there is going to be a lot of capitalization.

[09:25:10]

QUEST: If SpaceX, not that it would, but if SpaceX were to go bust, if Elon Musk's company goes out of business, are you obliged to bail them out?

BRIDENSTINE: No, I don't think so. Again, remember what we're doing, we are creating a marketplace where NASA is one customer of many customers,

but we also have numerous providers that are competing on cost and innovation.

So, I wouldn't say that we're obliged to bail them out. What I would say is that in this process, we have been working with them in the development of

their vehicle, but there is going to come a day where they have to stand on their own two feet.

And by the way, they're already getting customers that are not NASA.

QUEST: It is good to see you. We talked business, but the excitement of the day must not be overlooked. Congratulations, sir, on what I'm sure --

in a word, yes or no, do you think it'll launch today?

BRIDENSTINE: Yes.

QUEST: Good to see you, sir. Thank you very much. We wish you well. The Administrator of NASA and I am so glad we were able to talk business there,

but the science will be today, the majesty of the moment.

The opening bell, I keep wanting to say closing bell because "Quest Means Business" of course, we are on the closing bell, but that is hours away,

many hours away, so let's concentrate on the opening bell.

We have got the blue chips looking good. The techs are not so good, put it all together and it is going to be a great session on the New York Stock

Exchange. Second day of trading on the floor in the post pandemic era.

It is FIRST MOVE. I'm Richard Quest.

(COMMERCIAL BREAK)

[09:30:00]

QUEST: The opening bell on Wall Street, off to the races. WarnerMedia, HBO Max ringing the opening bell this morning, ringing it virtually as it

launches its streaming service. HBO Max more in a moment, that is of course, WarnerMedia, the parent company of CNN and we wish our colleagues

and friends at HBO Max -- we'll talk more about this in just a moment, the significance of HBO Max and what it means.

Now, the market you can see there, really out of the gate has a fair old lick, up nearly 1.5 percent, a gain of 345 points as expected. Though it is

a mixed open overall. The same themes as yesterday.

Global businesses are reopening and there is the hope for the vaccine. So the Dow is over 25,000 and the S&P 500 has crossed a key support level, it

is over 3,000. Bear in mind, as you look at these numbers where we were only two months ago for this level of recovery is quite extraordinary.

Twitter is down in early trading. This is after President Trump has threatened to regulate or even shut social media down after Twitter put a

fact check label on his tweets.

Big day for WarnerMedia. HBO Max is launching today. They rang the opening bell. Brian Stelter is with me. What is the significance in the sense that

there are plenty of streaming services, there are some new ones like Disney with Disney Plus, and arguably, HBO Max is late to the game?

BRIAN STELTER, CNN CHIEF MEDIA CORRESPONDENT: Think back to At&T and Time Warner and that announcement in 2016. The vision back then is what is

actually happening now. A flagship streaming service that will take on the likes of Netflix and Disney.

Whether it will be as big and as successful, we will only know years from now, but at least, it is a major, major bet in this category.

Look, Richard, every major media company has to do something like this, some sort of online subscription model. Now we know what HBO and

WarnerMedia looks like. I downloaded the app this morning. I didn't use my employee discount, Richard, I paid full price, I want you to know.

And you know, when you scroll through and you see a variety of content, there are a lot of options for kids, a lot of options for adults, a lot of

options for families. There is a wide array of content.

So the question will be whether people will actually come and download it and check it out.

QUEST: You paid your own company full price?

STELTER: Full price.

QUEST: I am not sure whether to congratulate you or excoriate you, but regardless. We'll deal with that in a moment. The fact though, original

content, Brian. When I look at Netflix, Amazon Prime which I think has some of the best stuff out there in terms of original content -- what is HBO Max

going to do?

It has already making stuff for HBO and it has got Warner Brother Studios, but are they going to bespoke for the streaming service?

STELTER: They are. They call these Max Originals. There is a new one with Anna Kendrick called "Love Lies" it premiers today. There is a new Elmo

show today.

There are some original series you'll only find on this service, but there are not a lot of them. And frankly, that's partly due to the pandemic.

Production has been shut down and that is a problem for HBO Max, but also a problem for its rivals. So HBO's argument is, hey, yes, we are going to be

slowed down, but so are all of these other competitors.

Bob Greenblatt is the executive who is in charge of making HBO Max a huge success. He says this is all about streaming opportunities, not streaming

wars. He believes four or five, most homes will pay for four or five of these services and that HBO Max will be in the mix.

That will be the real test to see if HBO Max can get in that mix. I'm the kind of person that subscribes to all of them. But most people are not like

that. They are only going to subscribe to the ones they really, really want.

What this service has going for it is HBO. Shows like "West World" and all of those shows that people know really well, but there is a reason why HBO

was never as popular as Netflix.

This company knows it needs to broaden the tent and have a lot more programming in order to compete with the Netflixes of the world.

QUEST: Our boss, the new CEO of WarnerMedia has said that going global is crucial. It is the future. Now, we know that.

[09:35:10]

QUEST: But for too long, U.S. executives have regarded the large part of domestic money as being the Holy Grail.

Now, do you think that mentality shifted so that the rest of the world is as significant, bearing in mind the language differences as the U.S.

domestic market?

STELTER: I do, but I think Netflix is so far ahead on this front. Look at the way they are producing shows right now in South Korea and other

countries, which is giving them new programming in the midst of a pandemic.

It is Netflix's game and everybody else is playing catch up. And one thing that HBO Max is going to have a challenge with is the price. $15.00 a

month, unless there is a discount. That's going to be a challenge to get people on board for that reason.

But if anybody has the pockets and the will power to do this, it is AT&T. We're looking at a few massive players in this field. Netflix, Disney,

AT&T, and don't forget Comcast, they are about to launch their version of this in the summer, but also very U.S. domestic focus, the first.

What we are going to see is they are going to launch in the U.S. and then try to go around the world.

QUEST: All right. Brian, while we were talking, I got a note from the boss, I've got fiver to give you back. You get your discount. I'll take it

out of my own pocket if necessary. I am so distressed that you're paying full price.

I might not recover before lunch time. Brian Stelter who has paid full price and that's an amazing fact.

When we come back, after the break, changes are afoot in the hotel industry.

STELTER: All right, great. Thank you very much. See you.

(BEGIN VIDEO CLIP)

RUDY TAUSCHER, GENERAL MANAGER, FOUR SEASONS HOTEL, NEW YORK: ... gone through financial crisis and 9/11 here in New York and now, COVID-19. It

will reshape us. It will reshape this industry.

(END VIDEO CLIP)

QUEST: And the Four Seasons Hotel here in New York. How does a luxury brand at the top end manage to reopen for guests in the era of coronavirus?

(COMMERCIAL BREAK)

[09:40:20]

QUEST: Two of Florida's key tourist attractions may get the go ahead to reopen, they are Walt Disney World and Sea World.

Between them, they are presenting safety plans to local officials. Disney is going for a phased reopening with the theme park having suffered a 10

percent revenue drop in the company's last earnings report. Not really -- I mean, it doesn't really tell the whole story because of the way the dates

all fell. The COVID-19, one will expect a second quarter, there will virtually be no revenue in the second quarter and it depends on just how

they manage to reopen.

Hotels are slowly reopening across the world, but how do you open a hotel safely, bearing in mind the virus, the needs of the guests? It all becomes

even more challenging when people are paying thousands of dollars a night and you are in the hotel luxury market.

(BEGIN VIDEOTAPE)

QUEST (voice over): No buffets, no mini bars, no frenetic power lunches. In this unprecedented crisis, hospitality is being reinvented. COVID-19 has

changed everything.

On Manhattan's billionaire's row, we now find a barracks for those fighting on the front lines.

QUEST (on camera): The Four Seasons is one of New York's poshest hotels in midtown Manhattan on 57th Street.

The hotel is closed, of course, to the general public. Instead, half of it is being used to house medical staff.

QUEST (voice over): The art deco details are here. That's just about the only thing that hasn't changed.

The grand foyer is closed as part of a plan designed in consultation with doctors at Johns Hopkins.

QUEST (on camera): Mask on, as I'm now meeting other people.

QUEST (voice over): There's an alternate entrance where I'm greeted not by a concierge or a porter, rather a nurse in PPE.

A temperature check, a few medical questions, and the ubiquitous hand sanitizer. Only then am I admitted to the green zone and follow the arrows.

Near a makeshift front desk, fine dining and room service has been swapped for bottled water and boxed meals.

TAUSCHER: Difficult for us right now. Service is in our DNA. We love to connect as human beings and we cannot, we have to keep distance and we are

providing without a human touch.

QUEST (voice over): Rudy Tauscher, the hotel's General Manager recognizes this is hospitality in the era of COVID-19, but it goes against every fiber

of his mine host being.

This Four Seasons is housing frontline workers so their precautions are extreme.

Now, that plan is being adapted for the general public.

TAUSCHER: The hotels will need to operate different. We are very fortunate here. We have a huge spatial layout. We have two entrances. We can design

the hotel.

But if you don't have this opportunity and you have a small lobby and you have crammed restaurants, then you have to look at it differently.

QUEST (voice over): The world is starting to move. There's a glimmer of increasing demand for hotel bookings.

According to hospitality analysis from STR, occupancy last week hit 32 percent in the United States. That's up from last month, but let's be

blunt, it's less than half of what it was this time last year.

QUEST (on camera): All hotels are now working out the logistics of how do you reopen in COVID world? Should room service be allowed in? How often do

you clean? Guests who don't want their rooms cleaned, sanitizing all these rooms on a daily basis. Should gyms be allowed? Spas? The list goes on and

on.

Can you imagine a situation whereby guests say to you, I don't want you to come in the room, don't worry about room service. Leave the sheets or the

new fresh towels, I'll do it myself.

TAUSCHER: Yes, we expect the guests to tell us to not service our rooms today, come back tomorrow.

QUEST: But you never thought you would have to deal with these -- this sort of thing in your career?

TAUSCHER: No, never. That's a new one. I've gone through financial crisis and 9/11 here in New York and now COVID-19. It will reshape us. It will

reshape this industry.

QUEST: The great advantage of a hotel is it is a refuge from home life. So said George Bernard Shaw. Now grand hotels like the Four Seasons have to

redefine what it means to be mine host.

(END VIDEOTAPE)

[09:45:18]

QUEST: Many us have been relying on the fact that we've had the virus and have had an antibody test which shows we've had it and have some

protection.

Well, for those of us who have got that, alarming news from the C.D.C. The U.S. C.D.C. says that such tests are wrong up to 50 percent of the time.

The tests look for evidence of an immune response of the infection, but the agency is warning the tests are too inaccurate to use to make for making

important policy decisions such as whether an employee can go back into an office building.

In other words, it is telling healthcare providers to find the most accurate antibody test available and consider testing each patient twice.

And so do temperature testing, and a new idea, the Germany based Pyramid Computer offering which is a thermal sensing kiosk. The CEO, Josef

Schneider is with me to talk about this, after the break. We'll discuss exactly what it means.

I beg your pardon --

(COMMERCIAL BREAK)

QUEST: Josef Schneider is with me to tell me and to talk about this kiosk. Why is it different? What is different about it other than just pointing a

temperature gun at somebody's head?

JOSEF SCHNEIDER, CEO, PYRAMID COMPUTER (via Skype): Hi, Richard. Actually, it is self-service and this will help a lot in order to make processes

quicker and to integrate it in our normal life because the new normal will be nothing like the old normal.

And we have a lot of experience on the kiosk side. We are the largest producer of self-service kiosks. We have the most experience with over

33,000 kiosks in the quick serve restaurant area.

So, most of the people out there have already used one of our products, and we believe this will be the new normal very, very soon.

QUEST: So, looking at the demonstration that you were just doing on there, this isn't like the airports is it, where you walk past the thermal

machine? This is where you stand in front of it, it does its business, and you get a print out.

SCHNEIDER: Yes, because the point there would be to make it personal and to have the privacy rights opportunities with the person, so it is a

cooperation between us who are doing hardware. We have a software company who does the interface and the database behind it which is IntraEdge, a

privacy platform that is by Intel and that makes it very special that you are the master of your own data and it is privatized.

But all the venues like sports stadiums, and concert would have information on a person basis, but you are the master of your data and as you know, the

output as well, I was in China during the SARS crisis in 2002, so that's when all the temperature kiosks came up and it was not clear back then, is

it a one-time pony or it will last and it last and nobody sees it anymore.

[09:50:31]

QUEST: Right.

SCHNEIDER: So it is integrated in our normal way of flying and that is what we believe will happen as well, and therefore, it needs to be

seamless. It needs to be something that you are not afraid to give away your data.

It is private data, your health data, and on the other hand, it needs to be quick and work on that end. And it is only a piece of the puzzle. Of

course, it is only a first line of defense.

This is not everything. There are clear limits in temperature screening, so we believe that it needs to be more of a concept, but it is one piece to

start the whole thing.

QUEST: Josef, thank you. We'll watch closely to see how it is used and how it is implemented. I am grateful. Thank you for joining us.

Now, the countdown is beginning for the historic SpaceX launch. The controversies and controversies -- depending on how you say it -- of Elon

Musk. Clare Sebastian is with us.

You know my view, Ms. Sebastian. I'm always just amazed and impressed by Elon Musk despite the various vagrancies of his, let's just say,

eccentricities.

CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT: Yes, Richard, I think you would have to be in the majority because despite the controversy which

frankly has re-ramped up over the past few months during this pandemic, despite the various setbacks that he has faced in the past, his rise

continues, his businesses, both Tesla and SpaceX have reached heights that few in the past would have deemed possible.

You only have to look at the stock price, Richard, up some 95 percent this year. But this is a man unlike other visionary CEOs that we see out there,

unlike the likes of Tim Cook and Jeff Bezos who are so deeply intertwined with his brand and that is something that is going to continue with new

challenges -- Richard.

(BEGIN VIDEOTAPE)

SEBASTIAN (voice over): Elon Musk's unfiltered style and unedited tweets haven't tempered his rise. Tesla is the clear market leader in electric

vehicles. The company stock price has quadrupled in the past year and now, he is bringing back human space flight to American soil.

(BEGIN VIDEO CLIP)

DAN IVES, MANAGING DIRECTOR AND SENIOR EQUITY RESEARCH ANALYST, WEDBUSH SECURITIES: He is almost viewed as half on-like in terms of when you look

at the stock north of $800.00 going through this COVID-19 pandemic as a car company and everything that Tesla and Musk has been through on the cusp of

launching another rocket into space with SpaceX.

The Musk brand has gone much more what I would say almost cultural iconic status among his fans.

(END VIDEO CLIP)

SEBASTIAN (voice over): Controversy is a big part of the brand and that has also hit new highs in the past few months. Musk tweeting, quote, "The

coronavirus panic is dumb," and proclaiming there would probably be no new cases in the U.S. by the end of April.

On Tesla's most recent earnings call, he railed against lockdown orders.

(BEGIN AUDIO CLIP)

ELON MUSK, CEO, TESLA: To say that they cannot leave their house and they will be arrested if they do, this is fascist.

(END AUDIO CLIP)

SEBASTIAN (voice over): His frustration culminating in mid-May when he reopened his California factory in defiance of local regulations.

While he eventually reached a deal with the county, experts say the move carries considerable reputational risk for Musk should the plant have

health and safety issues later, not enough to deter a presidential tweet in support of Musk's battle to reopen.

(BEGIN VIDEO CLIP)

IVES: As rebellious as he is, he is almost become viewed as such an asset within the country to both state government officials and others that have

different transportational and logistical worries and that is why, I think you will continue to see that status elevate, especially not just on

Tesla's side, but SpaceX is a big piece.

(END VIDEO CLIP)

SEBASTIAN (voice over): Brand Musk has with stood multiple spats with investors.

(BEGIN AUDIO CLIP)

MUSK: Boring bonehead questions are not cool, next.

(END AUDIO CLIP)

SEBASTIAN (voice over): A lawsuit by U.S. regulators over a series of tweets that cost him the chairmanship of Tesla.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Musk's tweets were false and misleading.

(END VIDEO CLIP)

SEBASTIAN (voice over): And a trial for defamation, which he won. And yet, as the global pandemic upends the auto market, competition in electric

vehicles mounts, and he takes a giant leap into human space travel, the ultimate disrupter's brand faces a whole new set of challenges.

(END VIDEOTAPE)

SEBASTIAN: You know, Richard, Elon Musk takes these big risks. He makes these bold moves, but he is willing to take on that risk personally.

The same CEO who said when he reopened his California factory in defiance of those local regulations, he said on Twitter, if anyone should be

arrested, it should be me.

[09:55:07]

SEBASTIAN: He has gone on television this morning and said about today's launch, if anything goes wrong, it is my fault -- Richard.

QUEST: I do admire that. It won't be his fault or may be his fault, but it is unlikely to be directly his fault but leadership from the front, one has

to admire that, a great potential.

Thank you. Clare Sebastian with that.

Now, just a look at the markets very quickly just before I love you and leave you and how they're trading.

And bear in mind that we'll have the closing bell for you on "Quest Means Business" in just a few hours from now. Here they are.

The gains have evaporated from the Dow, likewise, for the S&P. The NASDAQ is negative. I think it is going to be very hard for all three markets to

end positive today.

"Quest Means Business" is in a few hours from now. I can't work out how many, but you know the answers. 3:00 New York. 8:00 London. 9:00 Central

Europe.

And as always, whatever you're up to between now and then, I hope it's profitable.

[10:00:00]

END

END