Return to Transcripts main page

Quest Means Business

Watchdog: U.S. Treasury Sent $1.4B In Stimulus To Deceased; U.K. Historic Langham Hotel Set To Reopen As Restrictions Ease; Pakistan Int'l Airlines Grounds Pilots With Fake Licenses; Amazon: More People Using Alexa During Pandemic; Apple And Disney Are Pulling The Plug On Some U.S. Reopening As The Coronavirus Cases Keeps Climbing; Interview With Miami City Mayor Francis Suarez (R) Regarding Florida Reporting 5,000 New COVID- 19 Cases On Thursday; Week Of Reckoning For Corporate Germany. Aired 3-4p ET

Aired June 25, 2020 - 15:00   ET

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

[15:00:16]

RICHARD QUEST, CNN BUSINESS ANCHOR, QUEST MEANS BUSINESS: There is an hour to go of trading on the Thursday session and the markets have somewhat

stabilized after Wednesday's sharp falls. Off 2.5 percent on Wednesday.

As you can see from today's markets, they are back to something approaching normality. Bounced all over the place, but it does so an element of

reasonableness back in the market.

Meanwhile the corporate news and the reasons behind are anything but stable. Apple and Disney are pulling the plug on some U.S. reopening as the

coronavirus cases keeps climbing.

Lufthansa gets its $10 billion bailout approval from Berlin. It was approved by the shareholders.

And the U.S. government has sent more than $1 billion of stimulus money to dead Americans. You couldn't make it up.

Live from New York, on Thursday, it is June, the 25th. I'm Richard Quest. And of course, yes, I mean business.

Good evening. The United States is seeing the biggest one-day jump in coronavirus cases since April. And it's mainly of course in the west and in

the southeast where the number of cases has risen dramatically, forcing many authorities to start to ponder what restrictions now need to be put

back in place.

As they do so, businesses are taking the lead. The reopening of Disneyland, California has been delayed. It was due to reopen next month. Meanwhile,

Apple is re-closing stores in Houston and in Florida. It's also looking to do the same in other areas that are seeing spikes in cases.

Cristina Alesci is with me from New York. The interesting thing here -- and we are going to talk about it in all of its different variances is that the

governments are not the ones re-imposing lockdowns and closures. It is companies that are doing it ahead.

CRISTINA ALESCI, CNN BUSINESS POLITICS AND BUSINESS CORRESPONDENT: That's right, Richard. You know that companies are squarely focused on their

liability here if their employees and their customers get sick, then they are going to be the target of litigation, and so that is driving definitely

some of the decision making.

But it depends on the company. In Apple's case as you noted, it did decide to close down some stores last week in places where coronavirus cases were

rising. Arizona, Texas, North Carolina, South Carolina, and then last night, it added more locations in Texas.

Now, this is a big deal because if companies cannot kind of sketch out what the next several weeks and months look like, how are they going to do any

kind of long term planning that is necessary for a true economic recovery in the U.S.?

Now, in the case of Disney, it did say it was working with local authorities to figure out what the reopening would look like in the

California parks. But in the Florida location, its biggest park in the United States, it is facing increasing pressure from employees who say they

don't feel safe returning back to work.

And it remains to be seen whether they will reevaluate the plan to open in July in Florida, a state of course that is seeing a rise in cases, Richard.

But two important implications here. One, as I said, it does make it more difficult and undermines the case for that V-shaped recovery that the

President always talks about. And it does -- it may hurt him going into the election.

The other big piece of this story, of course, is that companies really need some visibility going forward, and they don't get to dictate that, neither

does the government. The virus will dictate that, and that's almost hard -- almost impossible to predict, Richard, as you know.

QUEST: Right. But how much of this is now out of control in terms of the spread of the virus? We are not seeing numbers like we saw -- I mean across

the United States, it is higher. Of course we haven't quite got the New York sort of individual state numbers, but you wouldn't expect that. I am

worried here, Cristina that we are going to see drip, drip, drip numbers getting bigger, but actually it never overwhelms.

ALESCI: Yes, I mean, I think that's the tricky part. I think you can't look at the numbers on a national basis if you are a business leader, you

have to look at what is happening in your individual state that -- and the area where you operate. That is why we are hearing -- to your point about

corporate leadership, we are hearing companies that have their own infectious disease doctors, that have their own dashboards, and they have

their own metrics for reopening because they simply can't rely on this big picture look at what's going on.

The bottom line here, Richard, is that companies cannot expand. They cannot place more of their budgets on R&D development, and hiring employees if

they don't know what their future looks like. And that undermines economic growth on the whole. And it could end up essentially causing another wave

of unemployment down the line, right? We are looking at lots of different factors here -- Richard.

[15:05:44]

QUEST: All right. Cristina Alesci. Cristina, thank you. Before we go on, I want you to listen to a recent comment from the President of the United

States. Donald Trump speaking at the weekend at a church rally was quite clear about what he said was happening to the virus. And it's important to

hear this because from this will flow the rest of our discussion. This is what the President had to say.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES: If you look, the numbers are very minuscule compared to what it was. It's dying out.

(END VIDEO CLIP)

QUEST: It's dying out. It's dying out. The numbers are much less than what they were. Now, let's carry on with our program.

A record number of increases in the three most populous states -- California, Texas, Florida. Texas is now slowing the reopening. The

Governor still isn't forcing masks, but it is slowing the reopening. The C.D.C. says the number could be even higher.

For every one person diagnosed, the C.D.C. believe, ten have been missed. The White House Economic Adviser has repeatedly said no more closures. Now,

even Larry Kudlow is reversing course.

(BEGIN VIDEO CLIP)

LARRY KUDLOW, DIRECTOR, NATIONAL ECONOMIC COUNCIL: There are spikes and hot spots. There is no -- no doubt about that. And there will be some

shutdowns in individual places or certain stores.

The health experts are not telling us that there is second wave. And we have the tools to deal with this much more expeditiously than we had two or

three months ago.

(END VIDEO CLIP)

QUEST: Remember the President said, it's going away, it's going to fade away. Florida today passed more than 5,000 daily new cases again, again.

The epicenter is in Miami-Dade County. The highest death rate in the state is in Miami-Dade County. That's sort of the famous bit, if you like,

besides the parks. That's a bit for Miami and all around that sort of area.

Nearly a thousand new infections reported, and their hospital system has now reported it is under strain, a 108 percent rise in COVID patients. Rosa

Flores is in Miami. Am I overstating it? Am I going too far in what I am saying -- Rosa.

ROSA FLORES, CNN CORRESPONDENT: Not at all. You know, we have talked to experts who say it very simply, Richard. They say there are a lot of young

people in Florida that are out partying, not social distancing, not wearing their masks, and then going home and intermingling with their parents and

their grandparents and then going to work and intermingling with their coworkers. That's how this virus is spreading here in Florida.

And of course, there are a lot of leaders that are very concerned. Just to give you a sliver, a slice of the pie here, here in Miami-Dade County, this

is the epicenter of the COVID-19 crisis in the State of Florida.

Just yesterday, it had a 27 percent positivity rate. The goal for the county is to stay under 10 percent. Well, they have exceeded 10 percent for

the past ten years here at Jackson Health where I am. They are reporting a 108 percent increase in the past 16 days of COVID-19 patients.

Now, I am in Miami-Dade, in more of the metro area, but just south of here according to the Mayor, there is an outbreak involving farm workers.

Now, these farm workers according to the Mayor live in very close quarters. This virus is spreading very quickly. And even though these workers don't

need a hospital bed, they don't need hospital care, they do need a place to isolate.

And so, the county, what it's doing is providing hotel rooms for these individuals for them to isolate and recover from this virus. The Mayor of

this city has mandated the wearing of masks across the city. And now is pushing for possible fines if people are not wearing masks.

Richard, it's very concerning. But I've got to leave you with this. Because with everything I have reported to you and told you about, the Governor of

this State is not mandating masks to be worn statewide -- Richard.

[15:10:10]

QUEST: Rosa, thank you. I appreciate that, because that will now take us to the Mayor of Miami, the City of Miami, Francis Suarez, who joins me now

live.

Mr. Mayor, firstly thank you for giving us time. These are very difficult, some would say dangerous times that require a great sense of leadership.

So, Mr. Mayor, first of all, what we are seeing in Miami and elsewhere is exactly, exactly what the experts like Dr. Fauci and Dr. Birx predicted

would happen in these places that reopened when they didn't meet the C.D.C. guidelines. Isn't that so?

MAYOR FRANCIS SUAREZ (R), MIAMI: Yes. We are seeing unfortunately, particularly over the last three or four days, some of the highest numbers

that we have seen from the beginning of this pandemic. To put it in context, you know, our high watermark when we implemented the stay-at-home

order on March 24th was about 533 cases.

We have had three days in the last week that had close to 900 cases or over 900 cases, so almost double the high watermark.

You know, we were last city that opened in the entire state. The criteria that the White House had established which was to see a declining number of

cases for at least a two-week period, we actually saw a declining period of COVID cases for over a month.

But as -- I think when I said when we reopened is there are two paths, there is the path of responsibility and the path of irresponsibility. And

if we go out there and we are not social distancing, we are not washing our hands, we are not practicing all of the different requirements that we

should be practicing, then the numbers are going to go up. And they have been.

QUEST: Well, they have done. That's exactly what's happened. The Governor still will not mandate masks even though you have done this in the City of

Miami. Can you please tell me why anyone would not mandate masks, which are widely regarded by the C.D.C. and the W.H.O. -- anybody and everybody -- as

being one of the mitigating factors, and yet seemingly in Florida, the Governor will not do it?

SUAREZ: Well, we did and we did it on Monday after looking at the data that we looked at. We have our statisticians, epidemiologists and we even

confirmed with the Department of Health.

And not only did I do it as Mayor, but I led a coalition of mayors who also do it at the same time, I believe, 15 cities have some level of mask

requirement. Even Miami-Dade County has clarified a prior order that they had to interpret it to mean that you should be wearing masks when you can't

practice social distancing in public.

But the truth of the matter is, our job is to be transparent about the information and also to explain to the public and to our residents, what

are the best steps that they can take to protect themselves, and in short of reversing the openings and re-implementing a stay-at-home order, masks

in public worn is the best way that our citizens can protect themselves and protect others.

QUEST: Right. But if things carry on as they are, you are going to end up re-imposing the stay-at-home order. That is the logical inevitability of

the path that Florida is on.

SUAREZ: Well, I tell you what. It is something that we cannot discount. We know how effective it was in late March. You know, we saw the numbers start

declining from an average of 30 new cases per day to a decline of 14 cases per day. So, we saw a tremendous impact when we did that. So we know it

works.

Unfortunately, it is also crippling to the economy and we have to balance that with the present day circumstances that we are in, which are very

different from what they were in early March.

QUEST: The importance of tourism to your economy cannot be overstated now. Now, obviously the tourists from Europe, that's not really going to happen

this year as long as the travel ban on both sides is in effect.

Domestic tourism, which everybody agrees is going to be the way forward. But if you don't get these numbers down, nobody is going to be coming to

visit, will they?

SUAREZ: And that's the point. I mean, I think the point is, people have to understand and they are afraid that we would potentially be re-imposing the

lockdown or potentially reversing some of the openings, the bad press that we get from the elevating numbers is as bad or worse than us as a

government reversing some of these orders because if people don't come and our economy is so dependent on tourism then you are not going to have

customers.

And a lot of businesses will close on their own because of liability reasons, et cetera.

So we have to be very careful. That's why we ordered the masks in public rule. Today, we are going to be imposing fines, you know, by law, if you

are not wearing a mask in public and that's what we have to do to get the message across.

[15:15:36]

QUEST: Mr. Mayor, I'm grateful that you took time from your busy day to speak to us. Thank you, sir.

SUAREZ: You've got it. Thank you.

QUEST: Corporate Germany is often perhaps not thought of as the most exciting place. However, the last week would certainly disprove that.

Everything from settlements and litigation, corporate fraud on a giant scale, and a vast government bailout of an airline.

Whatever will come next? Corporate Germany, next.

(COMMERCIAL BREAK)

QUEST: A week of reckoning for Corporate Germany in some unusual cases. Extraordinary. Wirecard for example, filed for insolvency days after $2

billion accounting scandal came to light. The money just isn't there.

Bayer has agreed to pay $10 billion to settle lawsuits with cancer patient over the Roundup weed killer and Lufthansa secured approval for a $10

billion bailout. And what is interesting here is, the CEO said, Carsten Spohr said, I wouldn't survive without the cash.

(BEGIN VIDEO CLIP)

CARSTEN SPOHR, CEO, LUFTHANSA (through translator): We know that the consequences of this crisis will affect the company for years to come.

According to everything we can predict and calculate today, we need nine billion euros of capital to successfully overcome this crisis.

(END VIDEO CLIP)

QUEST: Fred Pleitgen is our correspondent. He's in Berlin. This has been a tumultuous week for Corporate Germany. The Lufthansa -- I mean, the Wire

one is just simply fraud. Bayer is bailing itself out of a bad situation. And Lufthansa, what's interesting is, other governments -- other airlines

have gone to the shareholders and the market. Lufthansa has gone to the government.

[15:20:00]

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, you're absolutely right, Richard. I think I suppose the American airlines who have

gone to their shareholders and raised money by themselves, but European airlines, at least some of the bigger ones, and I think that Lufthansa in

Europe really sees itself in competition with for instance, Air France KLM and they've obviously have gone to their governments as well.

And I did also hear from some folks at Lufthansa that they actually felt that maybe Air France KLM were having a bit of an easier time from their

respective governments and Lufthansa was having from the German government because as you know, it was quite a long process that took place, which of

course also had to do with the fact that the shareholders for Lufthansa for a very long time were on the fence.

Particularly one major shareholder, Heinz Hermann Thiele who said he wasn't sure whether or not this bailout was exactly was good for Lufthansa,

because of course, in return for getting this bailout, they have to give up some of their slots in their hub in Munich and Frankfurt.

So you're right. It is a different way of going about things a lot of the American carriers did, but the Lufthansa CEO that we just heard there,

Carsten Spohr, of course, he felt that Lufthansa -- I am not necessarily sure wouldn't survive without that cash, but certainly they do feel they

will have an easier time getting out of this crisis if they had that cash that they have now gotten -- Richard.

QUEST: If we look at the way in which the reopening is going in Germany, Fred, we have obviously -- I know there have been upticks in hot spots in

food processing plants and the like. But by and large, is the German government content that they have it under control and that there aren't

serious outbreaks?

PLEITGEN: Well, I do think that they believe that there are serious outbreaks. I think by and large what they are saying right now is that they

do think the situation is under control. What they are saying is there are big outbreaks, but they are regionalized outbreaks and they believe that

these outbreaks are still under control.

Now, that doesn't mean that those outbreaks are going to stay under control. That's something you hear again and again from government

officials. They do say that in these places -- and of course, by and large, we are talking about the German meat processing industry, where you have

one meat processing plant where over 1,500 people have been diagnosed with COVID-19. It is a huge issue and the whole area has gone back under

lockdown.

They know that if it spreads the other regions, it could be a major problem for this country. At the same time, they say that at this point in time,

they believe that the situation is still under control, but they do also say that those lockdowns need to be in place to make sure that it stays

that way and to make sure that the country can continue to open up the way that it has.

Because of course, this is something that has hurt the German economy a great deal and it has probably hurt the German economy a lot more than many

other economies because it is such an export-based economy. And not only is, obviously, the demand here at home is very low right now among German

consumers, but exporting anything is a really big problem.

What I am hearing for instance from the German gigantic -- and you know this very well, Richard, machine tool sector, a big machine sector. They

say exports right now are a really, really big problem.

And then you have things like cars for instance as well. Well, right now, who is buying a car around the world at this point in time? It is a big

problem and the German companies do know that they are going to have to deal with this in some way, shape, or form.

It is going to be a very, very difficult time, even more difficult of course if the coronavirus situation would get, I wouldn't say, out of

control but would become worse again than it was before.

QUEST: Fred Pleitgen who is in Berlin. Fred, thank you. We will day with airlines. In Australia, Qantas announced it is cutting 6,000 jobs and

raising $1.3 billion U.S. in new equity.

The airline is furloughing 15,000 employees. That continues. It will ground up to a hundred aircraft for 12 months. It is all part of a plan to save

$10 billion U.S. over the next three years.

The Chief Executive Officer, Allan Joyce said Qantas had no choice.

(BEGIN VIDEO CLIP)

ALLAN JOYCE, CEO, QANTAS: The collapse of billions of dollars of revenue leaves us with little choice if we are to save as many jobs as possible

longer term.

Many of the 6,000 job losses we have announced today are people who have spent decades here, they are people we know personally, they are people

that we have known for a long time.

(END VIDEO CLIP)

QUEST: The ripple effects are being felt far and wide within supply chains, customers, and the like. Boeing for example, has put suppliers on

notice. It has warned Spirit Aerosystems that makes fuselages for the company that it's reducing the parts shipments for this year.

It's reducing the number of fuselages it wants to get from Spirit. Spirit in turn will obviously have to furlough or make other arrangements with its

own employees.

Honeywell is developing new cleaning technology to boost passenger confidence. The opposite side of the coin. Mike Madsen is CEO of Honeywell

Aerospace. He joins me from Phoenix, Arizona, joins me via Skype.

[15:25:10]

QUEST: We will talk about the new ultraviolet machine that you are doing in just a second, but I do want to understand this ripple effect that comes

were the airlines, no passengers, airlines make losses, they cut back on spending and that works its way back to people like yourselves.

MIKE MADSEN, PRESIDENT AND CEO, HONEYWELL AEROSPACE: Yes, absolutely. It is a very challenging environment right now throughout commercial air

transport. All of the airlines are struggling. And you know, the whole industry is affected by this.

Honeywell is no different. I'm fortunate we are part of a diverse business that isn't solely linked to commercial or transport. But nonetheless, it is

a challenging environment for sure. That's why we are so focus on trying to solve, certainly, the situation right now with regard to the COVID virus,

but making certain that people feel safer and feel confident in traveling and trying to get people back on the airplanes again.

QUEST: And you are doing that, Mike -- I mean, you know, it's one of the things that does what it says on the tin. The Honeywell UV Cabin System. In

10 minutes, for a couple of dollars per flight.

Now, I gather the idea is, this machine looks like a beverage cart. It goes up the aisle, arms out and it basically blasts with UV light.

MADSEN: Yes, that's right. That's basically it. It is a device that can be rolled on and off the aircraft in between the flights. It uses UV light,

which is a proven technology -- UVC light, which is the wavelength that has been demonstrated through use in hospitals and other places to have a very

strong effect on a large number of bacteria and viruses.

It moves through the plane. It takes no skill to operate it. It moves through the plane in about 10 minutes for just a few dollars per flight,

and the great thing about it is, it provides a very consistent uniform cleaning process that the airlines can use. It doesn't require skill to

operate and it has been proven very effective.

QUEST: Does it kill coronavirus?

MADSENT: Well, we don't -- you know, we are not virologists, we don't get into the business of testing things with viruses, but we do know that UV

light has been used many years to sanitize surfaces and to provide that level of cleanliness that we think the airline community needs right now.

It is very effective and has been shown to be very effective on a large number of viruses and bacteria. So we are running tests. Our customers are

running tests. We have had demo units out there now for a while.

We are very confident in its effectiveness. So, we like the fact that it is fast. Our customers have told us they like that. They need something they

can use quickly between flights and is effective. And most importantly, perhaps repeatable that you know what you are going to get when you use the

system and you are going to have nice clean surfaces in the aircraft when you are done with it.

QUEST: The industry -- there is no fine date that everybody says things will be become to normal. And when I look at a company like Honeywell,

which again, you have fingers in many pies, the ability to see the sort of economic activity is crucial for people like yourselves. What are you

expecting is going to happen?

MADSENT: Well, I certainly don't think this is a short-lived phenomenon. It is not just a health crisis, it is an economic crisis, as we have been

talking about here on the show today. So, this isn't something that's just going to go away as COVID starts to retreat.

That's why we are so committed to what we are doing here. Not only with the UV technology but also technologies to monitor air quality in the aircraft.

We have a system that is going to be available here in about a month or a month and a half that will help with air quality, air circulation

monitoring on the aircraft.

Really, you know, the aircraft today have hepa filters. But this device will enable the flight attendants and the air crew to monitor the

circulation of air in the cabin and make adjustments to increase the fresh air.

Similarly systems for airports. We have a thermal rebellion system we have introduced that's on a trial basis now with a number of large companies

that enables for example, airport authorities to monitor people who come into the airport to determine if they have a fever or if they are wearing

or not wearing a mask.

We think all of this has to work together for the long term, not just the short-term, but the long term. One thing this crisis has highlighted is the

importance of continued vigilance relative to airport travel.

QUEST: Good to have you with us, sir. I appreciate it. Thank you.

MADSEN: Thank you very much.

[15:30:14]

QUEST: It was Benjamin -- it was Benjamin Franklin, who said, of course, about life certainties of nothing more certain than death and taxes. Well,

he could have added if you're dead, the U.S. government will still send you money. The stimulus checks that went to people that are with us no more

later.

(COMMERCIAL BREAK)

QUEST: Hello, I'm Richard Quest. Of course, there's a lot more QUEST MEANS BUSINESS coming for you in just a moment. We'll discuss why dead Americans

got more than a billion dollars' worth of stimulus money, which they were intended to spend. And the London hotel opens a new chapter in its 150-year

history. Welcoming guests in the era of COVID, the Langham Hotel. We'll talk about -- we'll talk with the general manager in a moment. Before any

further, this is CNN, and on this network, of course, with you and me, the news comes first.

The world's second deadliest Ebola outbreak has been declared over. It lasted nearly two years in the Democratic Republic of Congo. Unfortunately,

another outbreak is already underway in a Western province, while COVID-19 poses its own separate threat. Several of President Trump's top campaign

staffers are spending the week in quarantine. They attended his Oklahoma rally last Saturday and interacted with some colleagues who later tested

positive for the virus. Two Secret Service officers at the rally were also infected.

Unilever's Indian subsidiary is changing the name of its Fair & Lovely skin-lightening products. The company says it's removing the word fair.

Those products have long been criticized by activists for promoting lighter skin. The company says the move is meant to create a more inclusive vision

of beauty.

[15:35:04]

Another 1-1/2 million Americans filed for unemployment last week. First time claims have now been falling every week since mid-March. Of course,

when they reached that horrendous peak, still massive of room to go. The number of claims, continuing claims is hovering around 20 million.

Meanwhile, this is a story that'll have you talking. The watchdog that looks after the fiscal responsibility. It says the U.S. Treasury sent $1.4

billion in stimulus checks to dead people. Over a million deceased Americans received the money. Julia Chatterley from "FIRST MOVE" is very

much alive and with us. And come on, Julia, what on -- I mean, I -- when I heard this, I sort of was slightly aghast, and I thought this is -- this is

a testament to how difficult it must have been.

JULIA CHATTERLEY, CNN INTERNATIONAL ANCHOR: Yes, it's a grown moment and it's happened to other governments in the past, let's be clear, but it's a

cocktail mix of the speed at which they were working. The difficulty, miscommunication of public sector red tape, let's be clear. And the result

is that more than a million dead people received checks. Now, it actually gets a little bit more interesting because the IRS who was giving out these

checks, did this because they didn't think they had the authority not to. So, they didn't even screen these people to see if they were any longer or

they were still alive. So, they looked at the tax returns in 2019. They looked at the tax returns for 2018. And if these people filed their taxes,

they got the check if they ultimately qualify.

Now, I will give them some credit; they raised the issue with Congress, apparently, Richard and they said when they were drafting the legislation,

hang on a second, what happens if people qualify for a check, but they've passed away? Looks like they never got an answer. And of course, when

Treasury found out what was going on, they were like, hang on a second, rein in these checks and ask the people for their money back. But this

support says they're not going to try very hard to get this money back. Yes.

QUEST: The COVID situation deteriorated at a frightening pace, and which, of course, leads to -- I mean, you saw the IMF, we report suggesting cause

much deeper recession and longer lasting. However, Julia, what now in the U.S. is the best thinking for the next form of stimulus?

CHATTERLEY: Well, the good news is they are thinking that more stimulus is needed. And they are quite right, Richard. I mean, we have a whole host of

things going on. States are dealing with the financial impact of fighting the virus, their hospitals, individually, and just because of the

accounting rules in the United States, they have to balance the books. So, they've got fewer revenues coming in; they've got more expenses going out.

And if they ultimately can't balance the books, they have to fire workers, and that's what we're seeing. So, they need money first and foremost, but

critically for jobs, as you mentioned, we've got 20 million people claiming benefits. Those bump up in benefits run off in July. And that needs to be

fixed, too. So, there's a number of things, and they have to do it quickly.

QUEST: Julia, it'll be "FIRST MOVE" tomorrow. Thank you.

CHATTERLEY: Well.

QUEST: Europe -- we've talked a lot about the United States, and how the rising number of Coronavirus cases has given cause for concern. Europe is

by no means out of the woods, facing its own resurgence in cases of the virus. According to the World Health Organization, Europe last week, show

an increase in weekly cases. Perhaps that was to be expected, but it was the first uptick in months. If left unchecked, according to WHO officials,

the increase could push the healthcare system to the brink. There is the fear amid all of this. In the U.K. a little over a week, hotels will be

allowed to reopen, as indeed, well, pubs and restaurants.

London's historic Langham Hotel, opens its doors on July the 4th. The hotel says they'll check temperatures on arrivals, sanitize luggage before room

delivery. Bob Van Den Oord is the managing director. He joins us via Skype. So, you've had -- you've had a good time to prepare. And we've talked

elsewhere on this program about the difficulty of a five-star experience when -- whilst also providing a sanitized experience. Are you ready?

BOB VAN DEN OORD, MANAGING DIRECTOR, LANGHAM HOTEL: Yes, I am, Richard. We are ready. And you know, we've been -- we've been in lockdown now for a

good 14 weeks. So, we had 14 weeks to prepare for this moment, and I must tell you, we are super excited. We opened 155 years ago here, as one of the

very first European Grand hotels, with the very first hotel to have moving elevators and running water. And it's only appropriate now to be one of the

very first luxury hotels to actually reopen for the summer.

[15:40:09]

QUEST: Right. Now, I -- you know, I stayed in the hotel, I've stayed several times in the hotel and very pleasant while, too. And I did my

journalists training in that particular building in a previous era. Probably, where you're sitting now, I learned shorthand, and not very well.

Hopefully, better than the hotel, but when you're -- the competition for guests will be intense between yourselves and others. And making money

after COVID won't be easy.

VAN DEN OORD: No, that's absolutely right, Richard. And look, I think the next three months is not about making money, the next three months is

opening our doors, letting everyone know we're here, we're open, we value your business, and we want you to come back. So, we've come up, we've

arranged different programs, and some very nice packages for people to come stay here. Maybe spend some time in our cooking school source, or indeed do

a beer and gin tasting in a quintessentially English pub, the Wigmore.

And these next three months are just to really reengage with all our clientele and all our guests. And the money part? You know, next year, I'm

sure we'll be able to go from an operating loss later this year to a break- even point, and then next year, we turn it into a profit.

QUEST: Bob, the challenge -- I mean, guests will not want room service. They won't want people in their rooms, or they might want people in their

rooms to service the rooms. Getting that balance right, but I presume you are prepared for guests to come in and say, I want nothing to do with your

people. I don't want you in. You can leave the towels and the sheets outside. I'll take care of it myself. Don't step over the door.

VAN DEN OORD: And if that's what they want, and that's what we will do. I mean, we're really here to give a bespoke experience to every guest. And on

arrival, we'll go through a questionnaire, just to get to know them a little bit. What are they most afraid of? How can -- how can service their

room? How can we take care of them? So, we absolutely going to accommodate all of their requests. But rest assured, Richard, we spend a lot of time

with our associates and training, and to really go through all the new protocols that we're going to have to put in place.

QUEST: Right. Here comes the promise. Bob, when we're back in London and things are back to normal, I think we need to present QUEST MEANS BUSINESS

from your lobby or your restaurant, is that all right?

VAN DEN OORD: Love it.

QUEST: We look forward to joining you there. And then, you can -- go ahead.

VAN DEN OORD: I love that. I'd love to have you back and your crew here at the hotel, and we can have a glass of wine together toasting to the future.

QUEST: Absolutely. And that cooking class. Good to see you, Bob, thank you. Another promise on the list. Don't worry, one of the producers. Josh is

keeping a spreadsheet. Thank you, Mike. Josh is keeping a spreadsheet. We know what we promised. We're going to work our way through them. And if we

can't, we will put our hands up and say, Sorry. As we continue, this is another extraordinary story. Never mind. Pakistan's flagship airline is

taking extraordinary steps after the government found almost a third of its pilots were using fake licenses. And we'll explain what that means. It's

not quite as bad as it sounds, but it's still pretty dreadful.

(COMMERCIAL BREAK)

[15:45:00]

QUEST: IATA says it is concerned by the report that nearly a third of Pakistan's civil pilots civilian -- in the civilian fleet have been flying

using what's called fake licenses. IATA's calling it a serious lapse, an oversight. Pakistan International Airlines says it has grounded about 150

pilots, and says the problem is industry wide. David Soucie our Aviation Safety Analyst, and joins me now. When we say fake pilot -- fake licenses,

what do we mean? Are they -- are they knocking something up on Photoshop?

DAVID SOUCIE, CNN AVIATION SAFETY ANALYST: No, Richard, it's actually not that at all. These pilots have gone through their training, they've

actually got hours beneath them. And then, when it comes time to get the testing, the written tests that they take, they ask someone else to do it

for them. So, they're basically cheating on the test is what this is implying.

QUEST: Why do they do this? I mean, what's the point?

SOUCIE: Well, no one really knows. I mean, why does anyone take the shortcut? It is terrible for the pilots that that really did do it the

right way. And I've already heard from some of those pilots in Pakistan, good pilots that did it the right way and took the test properly and passed

it. It makes them look bad. There's no reason for them to look bad for this. This is actually a problem with the CAA oversight, the Civil Aviation

Authority in Pakistan, who didn't verify that the people that were taking these tests were actually the same people that were there at the testing

center.

So, why they do this? There's a number of reasons it is not an easy test to take. That written test is extremely difficult. I just renewed my pilot's

license, as well, recently, my unmanned aerial vehicle pilot's license. And that test took a lot of study. And the only reason I can think someone

would want to cheat on this is just simply they don't think they know the information, or they're just not prepared enough for it.

QUEST: It's raised the question, I mean, the size and scale of this. Obviously, there's also the question of whether examiners were involved,

whether the authorities have turned blind eyes. And to put it crudely, whether bribes have been paid to get some of these licenses. I think you'd

agree, this is not a safe way to proceed.

SOUCIE: Absolutely not. And you would think that there has to be some kind of bribery or something to gain in this if you follow the money trail. No

one's going to do this for free for someone else, just as a favor. This is obviously something that when there -- were involved that many people, this

is something that was a systemic process. It's a process that someone knew about. Obviously, a lot of people knew about it to have that many pilots

involved in it. So, this CAA, they have their hands full right now, trying to redo how they look at oversight and safety and pilot issuing and

oversight.

QUEST: David, David Soucie, I appreciate your time, sir. Thank you. When we come back, we're all familiar with the -- most of us are familiar with

asking Alexa a question or two. Well, what sort of questions we've been asking in COVID times? How have the trends change? Because whether you like

Alexa or not, the fact is that we can glean a lot about what we're all thinking and doing from Alexa, he, she, it.

(COMMERCIAL BREAK)

QUEST: As Amazon works its way ever deeper into our lives with gadgets like Alexa, so we can now start to turn to Amazon for some data about exactly

what we're all looking at. And how were our behaviors are changing the things we're asking Alexa to play. Tom Taylor is with me, Senior Vice

President of Amazon Alexa. He joins me from Seattle. And Tom, first of all, I was going to do something clever and witty with Alexa, however, which

I've been using as the clock while I've been making the program, however, I turned around and knocked it on the floor. So, I have -- I have the

foresaid device, but Alexa, speak to me. Alexa, no, having nothing on it. Tell me what have you learned from the way we are using gadgets and the

sorts of things we're doing through Alexa?

TOM TAYLOR, SENIOR VICE PRESIDENT, AMAZON ALEXA (via Skype): Yes, thank you, Richard. We'll get you a new device if you have any problems. But,

yes, a lot has changed from our customer behavior from the Coronavirus. But I first also just want to say we all had to move very fast. And I want to

thank all the people that continue to be on the front lines that are -- our healthcare workers, as well as our own fulfillment center and customer

service. One of the first things that changed was Amazon had to move very quickly in terms of shifting our own supply chain to start producing

personal protective equipment, which we weren't doing before, and new safety precautions.

One of the things we did very quickly, was actually in the medical community where doctors and nurses who had to go in and treat patients

needed protective equipment, and imagine going in and out of that room and having to waste that equipment. And so, we donated over tens of thousands

of Echo show devices that we actually put in patient's room so that doctors and nurses could talk to the patient without having to go through the use

of protective equipment. And we did that with Northwell Health and Sloan Kettering, and (INAUDIBLE) University. So just that early part, a lot of

things that the team moved very quickly on for just a medical emergency. And so, I love to -- go ahead.

QUEST: So, what's the big -- what's the one thing that we're all asking Alexa during COVID?

TAYLOR: Well, there's a couple things. I think, certainly, people are looking for a sense of connection, whether that's with coworkers or with

family. We see people sending hugs, parents asking for help to raise their kids. We all have busy times. And I've heard cases of like the grandparent

will tell the parent, Hey, from 3:00 to 5:00, I'm going to teach guitar lessons to my grandkid, even though I'm 2,000 miles away. So, I think the

sense of connection is huge.

[15:55:02]

People are asking very different questions, of course, about like, What is COVID? What is the difference? What are -- what are the restrictions in my

state? Why do I have to wear a mask? Amazon has worked with a number of credible sources such as the CDC and WHO to try and answer these questions

for our customers. And, you know, some other things.

QUEST: Don't worry -- don't worry, I've already bought the replacement. It's kind of you to offer, but it's already on the way. So, Alexa has told

me. Thank you for joining us, I appreciate it.

TAYLOR: It'll be there quickly.

QUEST: And it was, it's amazing. You managed to deliver the Alexa overnight. That, I'll give you an achievement for that. Thank you, sir. I

appreciate it. And that is our program for tonight. No "PROFITABLE MOMENT." I'm Richard Quest in New York. I'm off tomorrow. And -- but regardless, the

market is all over the place. I'm having a day off, and it remains me to say to you, whatever you're up to in the hours ahead, I hope it is

profitable. Look at that. Best of the day for the Dow, worth another bong.

(COMMERCIAL BREAK)

ANNOUNCER: This is CNN Breaking News.

END