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QUEST MEANS BUSINESS

Anthony Fauci Says A Vaccine This Year Is Not A Dream As The U.S. Government Offers Billions More In Funding; Russia Racing To Become First To Approve Vaccine; Big Tech Firms Post Huge Earnings One Day After Antitrust Hearing; White House Condemns Hong Kong Election Postponement; Film Director Alan Parker Dies At 76; Teenager Arrest And Charged Over Twitter Hack. Aired 3-4p ET

Aired July 31, 2020 - 15:00:00   ET

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


[15:00:20]

ZAIN ASHER, CNN HOST: Tech stocks are struggling to prop up the Dow. Let's take a look and see how the Dow is actually doing. Right now, last time I

checked -- there we have it, 76 points or so in the red. It is lower for the second straight session. Those are the markets, and these are the

reasons why.

Anthony Fauci says a vaccine this year is not a dream as the U.S. government offers billions more in funding.

Monster earnings round off an eventful week for the Titans of tech.

And Europe falls into recession with yet more dire growth numbers.

Coming to you live from New York, it is Friday, July 31st. I'm Zain Asher. And this is QUEST MEANS BUSINESS.

Tonight, cautious optimism from top U.S. health experts that a coronavirus vaccine may be just months away. Dr. Anthony Fauci and others testified on

Capitol Hill today just after drug giants Sanofi and GlaxoSmithKline announced a $2.1 billion deal with the U.S. government to speed up its

vaccine race. Dr. Fauci says the U.S. is moving rapidly, but not recklessly.

(BEGIN VIDEO CLIP)

DR. ANTHONY FAUCI, DIRECTOR, NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES: There is never a guarantee that you are going to get a safe and

effective vaccine, but from everything we've seen now in the animal data, as well as the early human data, we feel cautiously optimistic that we will

have a vaccine by the end this year and as we go into 2021.

So, I don't think it is dreaming, Congresswoman, I believe it's a reality.

(END VIDEO CLIP)

ASHER: CNN's Lauren Fox is live on Capitol Hill. So, Lauren, you just heard Dr. Fauci there saying that it is a possibility that the U.S. could

actually get a vaccine this year before the end of the year.

But, overall, what is the national strategy according to Anthony Fauci in just terms of getting this virus under control overall?

LAUREN FOX, CNN CONGRESSIONAL REPORTER: Well, you know, what you heard over and over again from Dr. Fauci earlier today was this is about getting back

to basics. This is about wearing a mask. This is about keeping six feet distanced from other people. Avoiding crowds. Washing your hands.

You heard those methods for controlling this virus repeated over and over again by Dr. Fauci. Now, in terms of the vaccine, he was very clear, and he

was asked by multiple members, that, yes, this is moving quickly. But no steps in terms of safety or efficacy are going to be reduced just because

the U.S. is trying to get a vaccine quickly.

He said, you know, he is very confident in this process. That's really important because here in the United States, there are folks who are

concerned about the safety of this vaccine because it's moving quickly.

He said, look, those concerns aren't valid. They are not warranted. There is nothing about this process that entails us skipping any important steps

to make sure that anyone who eventually receives this vaccine will be doing so knowing that it is a safe and effective strategy for containing the

coronavirus.

He also said that he expects there could be a vaccine by the end of the year and that it's not dreaming to consider and be optimistic that that

will be the case -- Zain.

ASHER: Lauren Fox, live for us there, thank you so much. Appreciate it.

Dr. Fauci also talked about other countries' efforts to fast track a vaccine. Russia plans to be the first in the world, saying it will approve

a vaccine in less than two weeks. Dr. Anthony Fauci had this warning.

(BEGIN VIDEO CLIP)

FAUCI: I do hope that the Chinese and the Russians are actually testing the vaccine before they are administering the vaccine to anyone. Because claims

of having a vaccine ready to distribute before you do testing, I think, is problematic at best.

(END VIDEO CLIP)

ASHER: Russian scientists say their vaccine is quick to develop because it's modified from one already fighting other diseases. Russia's Sovereign

Wealth Fund is financing the research. Its CEO, Kiril Dimitriev says not only are U.S. pharmaceutical companies expressing interest in the vaccine,

but at least 20 other countries as well.

Kiril Dimitriev joins us live now from Moscow. Sir, Kiril, you heard Dr. Anthony Fauci there who was testifying during a U.S. subcommittee hearing

on the COVID response here in the United States saying that he hopes that Russia is actually testing the vaccine before administering it because

giving people the vaccine without actually testing it is no doubt problematic at best. What is your response to what Dr. Fauci said there?

KIRIL DIMITRIEV, CEO, RUSSIA SOVEREIGN WEALTH FUND: Sure thing. Of course, Russia is testing extensively and actually safety is at the core of the

Russian vaccine. Because everybody talks about politics of the vaccine, very few people actually ask how it works.

[15:05:08]

DIMITRIEV: So actually, Russia selected the safest delivery method to deliver the spikes of the coronavirus to the human cell which is called

adenovirus vector.

This is basically like flu virus that has been modified to multiply in human cells and there had been extensive studies of the adenovirus vectors

to show that they are safe, including in the U.S. and it makes it very different for example from MRNA or monkey adenovirus that have not been

studied extensively that really have not been studied the long term consequences including fertility of those approaches.

So we selected the safest approach. It has been extensively tested, not only now but also in Ebola vaccine, we got approved. In MERS vaccine, it

was approved and Mr. Ginzburg and Miss Golikova in charge of this project really of course are testing it very extensively, but we chose the safest

possible delivery mechanism.

ASHER: So are you willing to release sort of public verifiable scientific data to the international community to prove that this vaccine is safe and

effective and that you have tested it successfully? And if so, when?

DIMITRIEV: Of course, all of the data will be released in August just as we released all data on Ebola vaccine, on MERS vaccine, and of course all of

the data will be released. U.S. has also done extensive studies of adenovirus vaccines and as a unique feature of our approach is we actually

used two different vectors to deliver the coronavirus spike.

And we believe this approach will provide for a longer lasting immunity because having two vectors is better than having just one delivery

mechanism. But all of the data will be shared, and I will tell you, from first and second phase we have hundred percent of people developing

immunity after Day 21. It doubles up to the second shot, hundred percent of animals were also protected. So all of this data, the world will see in

August.

ASHER: Because even if you have the data, though, what do you make of claims around the world that perhaps in Russia's case, in terms of

developing this vaccine that there were indeed corners cut because approval times were sped up and clinical evaluations were also sped up as well. What

do you say to those accusations?

DIMITRIEV: Well, I think they just fail to understand the history of vaccine development in Russia. Actually, the first vaccine was done in

Russia in 1768 by Catherine the Great, 30 years before a vaccine was administered in the U.S.

We have very strict approval processes. Russia has always been one of the top vaccine developers.

So our Minister of Health will be approving this, of course, we will make absolutely sure that the vaccine is absolutely safe. President Putin said

that the vaccine has to be absolutely safety. And of course, safety is the main priority of Russia and no corners will be cut.

ASHER: So, if the vaccine actually does work, how will Russia work with the international community? Obviously, there are many countries around the

world that Russia doesn't have exactly the best relationship with. How will Russia work with countries like for example, like the U.S., like for

example, the U.K., France, et cetera to make sure that everybody who needs this vaccine is actually able to get it?

DIMITRIEV: Well, first of all, we are completely open and want to have partnerships with the world. More than 20 countries approached us on our

vaccine. We are going to build it jointly with five countries that will be manufacturing the vaccine jointly with us.

We believe that other vaccines will also succeed. I think the world needs to have many vaccines and frankly, we believe that we need to have a

political ceasefire around coronavirus vaccines and about coronavirus in general because too much politics hinders possible solutions.

For example, we have also very fast tests that can increase the throughput of existing testing systems three or four times. I think U.S. can also use

this solution and we are happy to provide it, but political barriers prevent from some of those good technologies that could be adapted, and I

think that's not very good.

I think all of the good technologies have to be adopted just as for example, Russia will also be producing Oxford-AstraZeneca vaccine, so we

are open to partnerships. We believe that many vaccines are needed in the world.

ASHER: All right, Kiril Dimitriev, thank you so much. Appreciate it.

DIMITRIEV: Thank you.

ASHER: America's biggest tech giants are smashing their earnings expectations after testifying before Congress that their companies were not

the juggernauts they seemed.

They have driven the NASDAQ well above the Dow Jones this year and adding to that margin today. Facebook, Apple and Amazon are all surging; Alphabet,

Google's parent company is heading the other way, though it beat expectations, too.

Clare Sebastian joins us live now in New York.

So Clare, how is it that Big Tech has crushed it when you look at the broader climate; clearly, there is a lot left to be desired?

CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT: Yes, Zain. I think there is an acknowledgment -- there is Tim Cook actually, the CEO of Apple acknowledged

this on the call saying clearly these results stand in stark relief to the rest of the economy.

The obvious answer is of course, the work from home lockdowns really played to these companies' strength. It drove huge demand for things like apps,

like Cloud, like e-commerce. All of the things that these companies produce. Social networking of course. So that's the tech part.

But, I think when we talk about the tech giants, the word giant is also important in this context.

[15:10:18]

SEBASTIAN: These were already some biggest companies, if not the biggest companies in America and that strength is what has propelled them forward.

They have for example, in Apple's case, more cash on their books than pretty much any other U.S. company. They can afford to weather this. They

can afford to pivot. Companies like Amazon for example, Amazon says, it will continue to spend billions of dollars on COVID-related expenses even

despite spending $4 billion in the last quarter, they still doubled their profits compared to the previous year.

So, you can see just where the strength is getting them, and I think that's why we see that they have been able to weather this and to grow so much in

this context.

ASHER: All right, Clare Sebastian, live for us. Thank you so much.

A day after the U.S. reported its worst-ever drop in GDP, Europe suffers a fall that is even worse. Now, a new COVID infection is threatening to

reverse the economic recovery. We will have that story next.

ASHER: Hurricane Isaias is threatening parts of the Caribbean and the Southern U.S. The storm is currently forecast to reach Florida's East

Coast, Saturday. Governor Ron DeSantis has declared a state of emergency.

The timing couldn't be worse. Florida has just set a record for COVID-19 deaths for a fourth straight day. The Miami Beach Mayor, Daniel Gelber

joins us live now via Skype.

So, Florida reporting a record number of COVID deaths and now having to deal with this hurricane. How is the area preparing?

MAYOR DANIEL GELBER (D-FL), MIAMI BEACH: Well, we have been worried about a hurricane coming in the middle of this, so we actually figured out ways to

move people around in a way that's going to make sense.

In my area, which is the Miami-Dade County, South Florida, we think we are just going to get side swiped by the hurricane. There is not even an

evacuation order in my city or in the county at this point.

ASHER: So overall, though, just in terms of how the local Florida economy is dealing with COVID, just walk us through, with so many areas shut down,

with people's livelihoods at stake, how is the area coping?

GELBER: Not well at this point. Certainly, in the short-term, this is having a very deep impact on our economy. I mean, you know, look,

hospitality industry is one of, if not our biggest sector, and it certainly is in my city.

And so that's a crowd based economy. That's a gathering based economy. So it is hard when you are relying on airplane traffic and cruise traffic and

just people coming here to come into hotels.

[15:15:26]

GELBER: We have reduced capacity in the hotels. We've closed our beautiful restaurants inside, so you can only eat outside. We have limited our retail

to a smaller percentage. Our promenades are still attracting so many people, in fact, we have a 10:00 p.m. curfew throughout the city as well.

So, you know, we really do realize that this is -- we are not the kind of economy that's going to do well in this kind of pandemic.

ASHER: So, what needs to change going forward to ensure that fewer lives are lost during this pandemic?

GELBER: Well, our county alone had, today -- the Department of Health in the State reported nearly a hundred deaths. We are getting the bulk of

everything in Miami-Dade County. There are 67 counties in Florida.

I think what we have to do -- first of all, the virus is at a very high level. We are getting 2,500 to 3,000 new cases a day. Huge numbers of

deaths every day. We have got to get the percentage of positive, which is about 20 percent down to well below 10 percent.

So people have to wear masks. They have to do all the things that everybody says they have to do and they have to do it conscientiously.

Most of the local leaders are wary of another shelter in place order. But it may be necessary if we cannot get this thing below 10 percent.

ASHER: So, just in terms of people adhering to the warnings -- obviously there are parts of Florida that are in fear right now because of the

hurricane that is on its way. But just in terms of people adhering to the notion of wearing masks and social distancing, what are you seeing there as

mayor?

GELBER: Well, my residents do a very good job. We have a $50.00 fine, by the way, if you fail to wear a mask outside or anywhere where you are

supposed to.

But there are not nearly enough people doing it. Unfortunately, our President -- President Trump has tried to make it somehow a political issue

so people still I hear don't want to wear it because they think it is somehow an infringement on their freedom, which is a very selfish and

wrong-headed view.

Our governor has not done much better. He refuses to issue a statewide mask order which would clearly send a message to the people certainly that care

deeply about what he has to say, that they ought to be doing it.

So we have suffered from mixed messages and a lack of urgency coming from the top. Local leaders, mayors like myself, and commissions we get it

because we are trying very hard to cajole people into following directions.

ASHER: The idea of wearing a mask in certain parts of this country has certainly been majorly politicized. How do you get around that? How do you

educate people that it is not a political issue, but it is a matter of life and death, really?

GELBER: Well, through repetition, through explanation and by example, which is why you know, when the President doesn't want to wear a mask, it is not

great. It doesn't tell everybody else they have to.

Listen, it is a cultural thing to a certain extent. Some countries, people are accustomed to doing it or they don't think it is a big thing.

For here, in our country, for some reason, people seem to draw upon a political statement for it, like it's an infringement of their rights.

I try to tell people that it is a very patriotic thing to do. We have people who make sacrifices all the time, much greater sacrifices.

Sacrifices of their lives even for their fellow neighbors.

So to just simply ask them to do this small thing for a friend, a loved one or someone they don't even know seems to be a little thing they can do, so

I think it is -- I don't want to offend anybody. I think it's a very American thing to do to make those kinds of sacrifices.

ASHER: So, just in terms of going forward, though, I mean, how hopeful are you that you know, without another sort of complete shutdown that places

like Florida can get this thing under control?

GELBER: I'm not hopeful, to be very honest with you, because -- and we are at almost 20 percent -- we are just under 20 percent positivity, and we

have moved probably to 19 or 18.5 percent in the last few weeks. But I don't see how we get to 10 percent in less than two months unless we do

something dramatic where people get a little bit more careful about it.

Perhaps the number of deaths unfortunately will shake people into doing the right thing or we may have to do a shelter in place for a small period of

time just to get people focused on this. Because, frankly, this level of positivity of the virus, this level of infection on a daily basis, 3,000 in

just our county -- these number of deaths, almost a hundred in just our county, are way too much to tolerate.

So I think if we don't get this down soon, we will take more drastic action and hopefully drive it down.

[15:20:15]

ASHER: Yes, time is a factor. The pressure is on. Dan Gelber live for us. Thank you so much. Appreciate it.

GELBER: Thank you. Thank you.

ASHER: Europe's economy suffered its worst fall since records began confirming the bloc plunged into a deep recession. Following three months

of heavy lockdowns, the E.U. shrank 11.9 percent in the second quarter.

More recent indicators show activity recovering after Europe initially flattened the curve. Now, new infections spikes are threatening that

process.

If we annualize things to compare directly with a shocking 33 percent drop out of the United States, Europe is even worst. Annualized, Europe GDP fell

39.8 percent. That's higher than the U.S.

The country's hardest hit by the virus saw the biggest drop, Italy fell 12 percent. France fell nearly 14 percent and Spain fell more than 18 percent.

Cyril Vanier is in Paris for us. So, Cyril, the biggest decline in history for the E.U., and this is coming -- it couldn't come at a worse time, these

numbers, because there are now murmurings of second wave in several countries across Europe.

CYRIL VANIER, CNN CORRESPONDENT: Yes, absolutely, Zain. I mean, first of all, I want to underscore what you said. This is unprecedented. The Euro

zone since the single currency was created has never seen anything like that since records started being kept in the '90s.

This is far worse than what occurred during and after the 2008 financial crisis. We are talking about the biggest economies in Europe and in the

Euro zone being hit where non-essential business activities stopped for a matter of several months.

And so, Spain you mentioned, 18 percent. Let's just take a moment to reflect on that number, Zain. We knew the numbers were going to be bad, but

quantifying gives us a sense of the size of this problem. That means that almost one-fifth of the economy, the economic activity of one of Europe's

biggest economies just disappeared over a three-month period. I mean, talk about unprecedented.

France is not that far behind with just under a 14 percent contraction, then you've got Italy, even a country like Germany, which from a health

standpoint was not that badly hit by the virus relative to its neighbors, it is still in deep recession territory with an economy that shrank 10

percent in the second quarter.

Now, to address, Zain what you were saying about the timing of this. We are seeing the coronavirus indicators across most of these countries trending

in the wrong direction in recent weeks, and there have been local re- confinements, targeted measures. Everybody -- every country wants to avoid a national lockdown. They know now how much it would cost their economy --

Zain.

ASHER: And so, how on Earth does Europe rebound from all of this -- Cyril.

VANIER: That's the silver lining. The rebound has begun. In fact, the rebound started, albeit timidly, as soon as the confinement measures

started being lifted in mid-May. Then you started seeing domestic consumption back up. Manufacturing go back up, industrial production, even

exports which had been dragging down these economies.

So that started going slowly back up in May, in June, with momentum carrying it into the third quarter and that is why the forecast for the

third quarter is going to be better than the second.

But now, let's take -- let's look at a longer time span. How long do we think Europe is going to take to recover from this? Well, we do have some

forecasts from the European Commission. They think that by the end of 2021, the European economy's GDP, the European growth will still not be back to

where it was before the crisis.

So I think that gives us a good sense of how long it's going to take, and also the question of how they rebound is directly linked to where the virus

goes because we said the indicators were trending in the wrong direction, and that assumption by the European Commission, that European GDP isn't

going to get better over the next year and a half that assumes there is going to be no second wave of this pandemic, which if you look at recent

indicators that has got to give you pause about that assumption. It is a risky gamble.

ASHER: Absolutely. Cyril Vanier live for us there. Thank you so much.

The U.K. meanwhile is putting the brakes on its plan to reopen. Coronavirus cases have been creeping higher. Casinos, bowling alleys and skating rinks

in England were due to open Saturday. They will now remain shuttered until at least August 15th.

Nic Robertson has more in London.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Here in London, the British Prime Minister for the first time now says it is time to dial back

the easing of lockdown across the whole country. To use his words, "It is time to squeeze the brake." The warning light, he says has come on, on the

dashboard.

England's Chief Medical Officer says that opening up across the country has gone as far as it can go. Coronavirus infections are going up and that's

going to change some of the planned easing.

Weddings, gatherings of up to 30 people at weddings were going to be allowed in August. That is now on hold. The Prime Minister also says that

more indoor locations, people are going to be required to wear facemasks, in museums and in churches. That he says, he expects to have laws in place

to enforce that by the 8th of August.

[15:25:24]

ROBERTSON: He said people can expect to see the police enforcing those new laws. And this comes at a weekend when there is going to be a mini heat

wave here. Concerns that people will go out and may forget about social distancing.

Nic Robertson, CNN, London.

(END VIDEOTAPE)

ASHER: The coronavirus pandemic has been called the greatest crisis the travel industry has ever faced. Up next, a special report on how the sector

is coping with this new normal.

(COMMERCIAL BREAK)

ASHER: Hello, everyone. I'm Zain Asher. There is more QUEST MEANS BUSINESS in a moment when we will have a report from Greece, Japan, and the

Caribbean as we weigh out the damage COVID has caused to the global tourism industry.

And the city of lights has gone dark during the pandemic leaving many of Paris biggest tourist attractions in financial turmoil.

Before that, though, this is CNN, and on this network, the facts always come first.

The World Health Organization is reporting a record number of new coronavirus cases. Nearly 300,000 over the last 24 hours. More than half of

those are in the Americas.

The agency calls the pandemic a once in a century health crisis whose effects will be felt for decades to come.

The White House is condemning Hong Kong's move to postpone its local elections over public health concerns. Press Secretary Kayleigh McEnany

says it undermines the democratic process.

Her statement came moments after she defended President Trump's tweet suggesting the U.S. delay its election.

English filmmaker Alan Parker has died.

[15:30:08]

He was a world renowned for directing classics such as Bugsy Malone, Midnight Express and Evita over career spanning decades. He was knighted by

Queen Elizabeth back in 2002. Parker was 76 years old.

A teenager in Florida has been arrested and charged over the major Twitter hack that affected former U.S. President Barack Obama and former Vice

President Joe Biden. The minor was arrested on Friday morning. In the hack, several high-profile accounts were hijacked to promote a Bitcoin scam.

More on that arrest in Florida over the Twitter hack, Donnie O'Sullivan joins us live now. So Donnie, what do we know about this teenager? I

understand he was 17 years old. What charges is he facing?

DONIE O'SULLIVAN, CNN REPORTER: That's correct, Zain. Yes, he was arrested in Tampa this morning. The 17-year-olds who prosecutors in the state say

played a role in really Twitter's -- the biggest hack in Twitter's history. You know, took -- taking over the accounts of Barack Obama, Vice President

Joe Biden, Elon Musk, Bill Gates, Kanye West and so many others all as part of a Bitcoin scam.

Now the prosecutors even though FBI and the U.S. Department of Justice was investigating this case and ultimately found this teenager in Florida. He

will be charged by state prosecutors there. We are told because it is easier in Florida under Florida State law to charge a minor as an adult if

it is done a true the state system. We're also receiving just some new word that there may be also other individuals who have been identified and have

been charged by -- as part of this but we'll bring that to you as soon as we have it confirmed.

But you know, really, I guess remarkable that a 17-year-olds could play a role in this. And it does, of course raise really serious concerns and

questions about the integrity of Twitter's security systems boss at the same time, you know, I think when a lot of people saw this hack, a few

weeks ago, there was a lot of people concerned that particularly with these high-profile individuals that it might have been the work of a nation

state.

Particularly when politicians were involved some people, you know, maybe using direct private messages on Twitter. So at least by what we know right

now, it doesn't appear to be the work the job of a nation state. So, there might be some sense of relief, that is the case that it was appears to be a

financial criminal scam. Zain?

ASHER: All right. Donnie O'Sullivan live for us there. Thank you so much. All right. So more breaking news into CNN, Donald Trump is expected to sign

an order forcing the Chinese company ByteDance to sell its U.S. operations of TikTok. The White House is concerned that TikTok may be a national

security risk. Some critics of the company worried that the data it collects on American users could end up in the hands of the Chinese

government.

CNN's Brian Fung is following this story from Washington for us. So, Brian, the Trump administration has been quite skeptical of this company for quite

some time.

BRIAN FUNG, CNN TECHNOLOGY REPORTER: That's right. It's previously said it wants to ban TikTok from the United States. Now this decision or this order

that may be coming down from the Trump administration is just short of that. Basically, it would require ByteDance, the parent company of TikTok

to spin off its operations and potentially become owned by a U.S. entity. It's not clear who yet but ultimately, if this does go through, it would

mean that TikTok would no longer be owned by an Chinese company, thus potentially rectifying some of the national security concerns surrounding

this company.

Now, of course, cybersecurity experts have said that the data that TikTok collects on its users are is similar to the type of data that many other

tech companies collect. And just because TikTok is owned by a Chinese company doesn't mean Chinese intelligence officials aren't interested in

that same data held by other companies as well. So really, you know, when you -- when you talk about TikTok, it's very hard to disentangle its

Chinese ownership from the broader politics involving the Trump administration and China, which is partly what has really complicated some

of these discussions.

Now, when you talk about the number of users on TikTok, it's just potentially in the millions here. It's grown massively popular. In fact,

it's become a platform where many younger users have used it to, you know, gain -- make TikTok into a political force by, you know, trying to

encourage people to buy tickets to President Trump's political rallies.

[15:35:10]

FUNG: And some have speculated that that may be a reason why the Trump administration has been pursuing TikTok so hard. Nevertheless, it seems,

you know, there may be major movement in what's a could become a pivotal moment for this Chinese own companies. Zain?

ASHER: Brian Fung life for us there. Thank you so much. Summertime in Paris is usually high season for travelers. This year cafes and museums are open

but mostly empty. We'll look at the cost of the economy after the break.

(COMMERCIAL BREAK)

ASHER: Tonight, one tour operator says it's the greatest crisis the travel industry has ever faced despite hopes for a shortened summer season. More

restrictions are being reintroduced and more travel corridors are collapsing. Now the warnings are that some tourism jobs may actually never

return. The tour operator I mentioned is TUI. On Thursday, they announced they'll close more than 100 stores in the U.K. and Ireland.

Belgium is the latest country to face new travel restrictions from its European neighbors after Spain faced similar measures. And IAG has today

joined the list of companies predicting it will be years before air traffic gets back to normal. Wherever you turn, economies that depend on tourism

are struggling to hold down this new normal.

(BEGIN VIDEOTAPE)

JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: I'm John Defterios on the island of Amorgos in Greece, where tourism traffic is starting to pick up

during the crucial month of August. Greece made a major push for international travelers starting July 1 because tourism makes up about 20

percent of GDP. The Greek government responded quickly to limit the spread of the pandemic early on, and this one applauds primarily from most Greeks

overall.

But there are some concerns that the random testing taking place upon arrival is to turn some bookings according to tourism specialists. At the

hotel we're staying at they said they have strong bookings for the month of August, but they're worried about cancellations. We've heard worse reports

on other major islands with major hotel groups right now. It's been an unusually slow month of July.

Once said it was like Greece 20 years ago before it became a major destination. We've been on the ground for about a week, and it's primarily

Greek nationals, French and Italian tourists making up the bulk of the traffic.

[15:40:07]

DEFTERIOS: Prior to the pandemic, they were hoping for a record of arrivals more than 34 million this year. But due to a late start, and worries about

restrictions coming back into place in the European Union, this target that the set of about 20 percent of 2019 revenues seems very difficult to hit.

(BEGIN VIDEOTAPE)

KAORI ENJOJI, JOURNALIST: I'm Kaori Enjoji in Okinawa, Japan. This tropical island would normally be full of tourists this time of year. The Japanese

government is launching a massive $12-1/2 billion-dollar program to try and boost tourism subsidizing as much as half of travel costs. But with new

coronavirus cases hitting a record high across the country, governors of cities that might benefit the most say they're against it.

I spoke to one of them, the mayor of Chatan here and he says he's worried that tourists might import the virus and the island has not enough medical

capacity to deal with an outbreak. Plus, there are two clusters of U.S. military bases on the island, dubbed go to, the plan has been so unpopular.

It's being called go to trouble instead. Not to mention face masks on the beach might make for some pretty funny tan lines.

PATRICK OPPMANN, CNN CORRESPONDENT: I'm Patrick Oppmann in Havana, Cuba. Health officials say that they've managed to bring the spread of the

coronavirus under control. But this island has been hard hit economically. Look around. Usually in Old Havana you'd see tourists snapping photos,

Cubans trying to sell them things. Right now, it is a ghost town. And that is because for the last four months, there has been no tourism on this

island.

In late March, the first cases of coronavirus reported here were actually according to health officials, Italian tourists that had brought the

disease with them. Ever since then all commercial flights in or out Island have been shut down. It's been very hard for Cuba state tourism economy

also for the Cubans and red homes have restaurants, take tours around and old cars. Cuba eventually will open up, they've already opened up some keys

off the coast small islands.

But Cuban official say that no tourists as of yet have come and they're still figuring out how to reopen this island, while still keeping the Cuban

people safe.

(END VIDEOTAPE)

ASHER: And this is not just about saving the summer. The U.S. Travel Association today says you can't have a broad economic recovery without a

travel recovery. Simon Calder is a travel editor for The Independent newspaper in the U.K. So, Simon just given all the uncertainty in the

various quarantine rules, for example we're seeing in the U.K. to countries like Spain, for example, and other countries perhaps following suit. What

does the short-term future look like for the global travel sector do you think?

SIMON CALDER, TRAVEL EDITOR, THE INDEPENDENT: It looks absolutely chaotic, I'm sorry to say it. Let's go back. Here we are in Europe, just a few hours

remaining of July, at the start of July, that was when Europe was supposed to get it all together, the barriers between countries within the European

Union were going to come down. And we would have something like in a normal summer.

But it's been far from normal as you've been reporting and particularly for the erratic bands and restrictions that British tourists have been facing,

particularly since, well, six days ago, almost to the minute suddenly, British people were told if you're going to go to the favorite country in

the E.U. for the British tourists, Spain, then you're going to have to self-isolate at home for two weeks when you get back.

Still, many people out there who were touching down just as that announcement was being made by which stage it was too late. I've been

traveling quite far and wide in Europe, though. Certainly, in Italy. North of Italy is doing pretty well relative to the rest of Europe. And that's

basically because things are seen as being relatively safe. And more particularly, you can get Austrians, German Swiss people driving across.

And people generally are feeling much safer if they're in their own cars. South of France, meanwhile, it's looking pretty normal and relatively

speaking. But elsewhere in Europe, it's just an absolute patchwork. And Cyprus opens tomorrow to British travelers, but hardly any will be turning

up because they said, well, that's great. You can come to our country from the first of August, but unfortunately, you're going to have to spend

around $200 to get a COVID-19 test in advance.

And that's going to be at your expense, so utter disarray. The second biggest travel company to -- that from the U.K. called Jet2 have canceled

many, many hundreds of holidays of flights out there because they simply think it's too onerous for people. That just gives you a snapshot of how

tough things are.

[15:45:07]

ASHER: Gosh. Yes, you mentioned a couple of bright spots. For example, you said northern Italy, you talked about the south of France. But overall,

aside from those bright spots, when you look at just the global travel industry, overall, worldwide, what happens to the people particularly who

work in the informal sectors in say, developing countries? What happens to their livelihoods especially if they work and travel?

CALDER: Exactly. And that's the huge problem particularly affecting Africa. Clearly, you've got amazing travel destinations everywhere from Egypt in

the northeast to maybe or in the southwest. They're fantastic countries like Tunisia and Morocco in the north, Kenya and Tanzania, Uganda, for

their wildlife and so on. And those places are basically empty. They depend hugely on wealthy people from developed countries coming in and spending

freely and doing it year-round.

And I've been talking to camp owners in Masai Mara in Kenya and they've been keeping things afloat, keeping paying their staff, but they're now

basically just saying, this has been going on for months, there is no signal about when these places are going to open up when foreign

governments will let their citizens go to Africa. And, frankly, we can't keep doing this. It's an absolute catastrophe.

And you've absolutely got it right, that it is the people working in the informal economies in developing countries who are going to suffer the most

and in a year of summer when everybody is suffering, that is really something.

ASHER: Yes, you mentioned of course, that parts of Africa that are -- that are really going through it right now. But, of course, so much mixed

message and really just such little coordination between various governments around the world. And that means huge disruption for travelers.

All right. Simon Calder live for us there. Thank you so much. Still to come. The City of Light has gone dark during the pandemic, leaving many of

Paris' biggest tourist attractions in financial turmoil.

(COMMERCIAL BREAK)

ASHER: Most years France enjoys one of the world's healthiest tourism industry. So much so that Parisians are famously weary of the summit

incursions into their city because of the pandemic, the City of Light has lost a little of its earlier. Melissa Bell reports from Paris.

(BEGIN VIDEOTAPE)

[15:50:09]

MELISSA BELL, CNN PARIS CORRESPONDENT: The only difference are the masks, otherwise, Paris, the city of arts and light and love as much as it ever

was. The shops are open, the artists are out the bars, the bistros, the museums, there is only one crucial ingredient missing, the tourists.

And what is Paris without? Last year 50 million of them came for the monuments, the cathedrals, the museums, the history, spending 22 billion

euros and once again making Paris the most visited city in the world. This year, the French and the odd European tourists have it pretty much to

themselves.

ARNAUD DANIEL, MANAGING DIRECTOR, BATEAUX PARISIENS (through translator): We don't get back to our historic levels before 2022. I have been in charge

of the battle Belizean for seven years now and we have known crises, floods and terror attacks and we always picked ourselves up.

BELL: But for now, hotel occupancy rates here in Paris are down at 86 percent on what they were a year ago. And the worst is at the very top end

of the market, the so-called "palace hotels" that depend almost entirely for their business on American, Asian and Middle Eastern tourism, places

like the Ritz here in the Place Vendome, they have simply remained closed.

And that will come at a dizzying cost to France's public finances.

CHRISTOPHE LAURE, PRESIDENT, UMIH PRESTIGE: Well, we are very fortunate in France to have this government support. It's quite unique in the world.

It's 70 percent of the gross salary, which is 84 percent of your net is very unique. And it's very important for us to have that.

BELL: French authorities have said that they'll continue covering most of the salaries for people who can't work until at least September, but that

money is going to have to come from somewhere even as the French economy is predicted to contract by 10 percent this year. Perhaps most worrying for

people looking at France's tourism industry. This should be its high season on an ordinary July day.

The Loop who would get 30 to 40,000 visitors that figure is under 10,000 a day right now. Much now depends on when those global travel restrictions

will be lifted. But also and perhaps more importantly, whether long term people are ever going to want to come back to Paris in the same numbers

that they did before.

LAURE: Perhaps a country if you have a vaccine or you have a treatment, then people will have to go back to normal life. We have to enjoy the life.

Melissa Bell, CNN, Paris.

(END VIDEOTAPE)

ASHER: For those who are tired of working from home, Georgia is recruiting tourists to come work from its region. The country is starting a special

visa program for long-term visitors and is already in the process of reopening. Georgia is just one of 11 countries on Europe's revised safe

travel less tourism and travel account for 26 percent of its entire economy. That's according to the WTTC.

Mariam Kvrivishvili is the head of Georgia's National Tourism Administration. She joins us live now from Tbilisi. So, Marian, thank you

so much for being with us. So you're offering Georgia as a place where people can take a break from COVID just because you have Georgia, the

country has such few numbers in terms of COVID-19 death. A population of 10 million and only 16 reported deaths. Just tell us a bit more about this

initiative.

It looks as though we are having a bit of trouble with Mariam Kvrivishvili's audio. We're going to try and get her back. Actually,

there's only seven minutes left in the show -- after the show, so unfortunately, we didn't make it in terms of getting her on the show,

hopefully next time. But the travel industry struggles are not just felt in tourism destinations. Towns outside airports are also suffering from the

slump in aviation.

Anna Stewart reports from Crawley England right outside Gatwick Airport.

(BEGIN VIDEOTAPE)

ANNA STEWART, CNN REPORTER: Virgin Atlantic planes were a familiar sight at London's Gatwick Airport pre pandemic. In May, the airline closed its space

here, at least for now in a pandemic restructure. All the airlines are still here, but they're only flying a fraction of their usual flights. At

the height of the U.K.'s locked down, Gatwick closed one of its terminals. 200 staff were terminated and a person percent of eligible staff on the

government's furlough scheme. Some have now returned to work.

STEWART WINGATE, CHIEF EXECUTIVE OFFICER, GATWICK AIRPORT: But I think for us, we've already reduced our workforce by just less than 25 percent. But

what we'll have to do is to look at the demand for flights this winter and also into next year. And just as any business will do, we'll have to right

size our operation to the customer demand. So it's too early to tell. But unfortunately, a lot of jobs have been lost already. And I would envisage

more jobs. Last in the coming months

[15:55:00]

STEWART: That has huge implications for Crawley, the town closest to Gatwick, which relies heavily on aviation.

WINGATE: As time has gone on it's coming increasingly clear that we're seeing some up to perhaps 40 percent of people affected directly by this.

They're already over a third of the town on furloughing. When you throw in people who had to go into Universal Credit. It's about 40 percent of

current workers in that situation. And when you're going to start see furlough moving one down at the end of the month, we're going to see those

numbers go up a lot, lot higher.

It's a shopping area at all. We're going to survive and people don't have discretionary spend.

STEWAET: It's unsettling prospects for a town still emerging from lockdown.

UNIDENTIFIED FEMALE: I suppose because so many people laid off especially being the airport. Yes. Especially for my children and my grandchildren.

STEWART: Crawley is the most vulnerable of all the U.K.'s large towns and cities according to the Centre for Cities. They want the government to

extend the furlough scheme for the aviation sector beyond October. And they say failure to do so could have a detrimental impact on the wider local

economy.

KATHRIN ENENKEL, SENIOR ANALYST, CENTRE FOR CITIES: It's not only people directly affected by the approach or suffering from the -- from the current

crisis actually also like all the local services here. And this makes the whole thing so dangerous but we must also wait a bit for October what is

really happening then was -- yeah, the furloughing scheme and whether we really see the spike in unemployment.

STEWART: More businesses here may have to close up shop long after lockdown is lifted.

Anna Stewart, CNN, Crawley, U.K.

(END VIDEOTAPE)

ASHER: All right. Let's take a look. Last few minutes, not four minutes to go in terms of trade on Wall Street. The Dow Jones let's see is closing up

narrowly up ever so slightly only up by 60 points or so. Boyd by stellar gains from big tech, we got Stellar earnings from Facebook, Amazon and

several tech companies. The market made a late push after being down a full one percent in earlier trading, now it's up ever so slightly.

Apple is miles ahead of the front of the pack up more than 10 percent for the day. They posted record third quarter earnings and announced a stock

split as well. But elsewhere, the Dow 30, there's a whole lot of red, you can see on your screen. Chevron brought up rear down nearly 40 -- 44

percent excuse me after posting disappointing earnings. And that is QUEST MEANS BUSINESS. I'm Zain Asha. "THE LEAD" with Jake Tapper is next.

(COMMERCIAL BREAK)

END