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Quest Means Business
After the two U.S. presidential candidates squared off in a tense debate, Lithuanian President Gitanas Nauseda said his country will continue to have good relations with whoever is elected. He spoke about his own election and leading a country during the pandemic. When National Audubon Society Vice President Steve Kress first began his quest to restore the historic puffin population on a small island off the coast of Maine, he had no idea it would become his life's work. Kress describes the long and difficult and discusses how some of the lessons he learned could help conservationists trying to protect other bird species; Lithuanian President On Leading Country In Time Of COVID-19; Aviation Workers Brace for Historic Job Cuts; Countries Easing Global Travel Restrictions; E.U. Launches Legal Action against U.K. Aired 3-4p ET
Aired October 01, 2020 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:10]
RICHARD QUEST, CNN BUSINESS ANCHOR: We have got 60 minutes left of trading on Wall Street, and the Dow Jones has been betwixt in between. The early
rally that we are seeing seems to have fizzled out.
As you can see, we were negative. Now we're just positive of it. And the way the markets are looking very -- I was going to say they are calm,
they're not. They're simply quiescent at the moment, laying low as they work out what's next. And this is the way the day has gone so far.
Thousands of airline workers are bracing themselves to be made redundant. Call it a furlough, call it losing their job. It's happening at the moment
because of job cuts in aviation history.
From Germany to Johannesburg, major economies are scrapping their blanket travel bans trying to be more targeted.
And Europe is -- the E.U. launches legal action against the U.K. over the controversial Brexit plan that's been put forward by Boris Johnson.
We are live in New York. It's QUEST MEANS BUSINESS. I'm Richard Quest on Thursday, October the 1st, and of course, yes, I mean business.
October the 1st meant that the CARES Act in the United States had come to an end as regards or the restrictions of the airline industry.
Good evening. Tonight, tens of thousands of employees in the airline industry are facing redundancy and furloughs after the Act, the deadline
expired last night. This means that the restrictions that the airlines in America had agreed to as a consequence of getting money from the U.S.
government had now ended, and they are now free if needed to make people redundant.
Thirty two thousand jobs are being lost between American and United Airlines. It goes the gamut from pilots, to flight attendants to baggage
handlers, counter agents, the whole lot. The CARES Act provisions expired.
Now, Steve Mnuchin, the U.S. Treasury Secretary has urged airline bosses to hold off actually implementing the losses that you're seeing. But the
airlines don't believe help is coming.
Both the CEO of United and the CEO of American wrote to the government saying that if money was forthcoming, then they would forestall or be able
to bring back the workers.
Sara Nelson is with me. President of the Association of Flight Attendants Union. Sara, it is good to see you.
This was -- I mean, the industry has gone over the cliff, and seemingly Mnuchin says, no, just give us a little bit more time.
SARA NELSON, PRESIDENT, ASSOCIATION OF FLIGHT ATTENDANTS UNION: It's as if people didn't understand what was really going to happen here. You know,
revenue has dropped off by 85 percent, Richard. We have business travel down 96 percent.
The only reason that the airline industry was staying together is because of the CARES Act because of this Payroll Support Program. This was a jobs
and infrastructure program. It required the airlines to keep all of the employees in their jobs, connected to our healthcare, and it required them
to continue service to all of the domestic cities that got serviced on March 1st. So that's very important in the middle of this pandemic as well.
All of those requirements go away today, and as you said, 32,000 at United an American alone; over 100,000 across the industry are waking up without a
paycheck, without a certainty, without any future.
QUEST: All right. But to those -- I mean, we will deal with the politics in just a second of this within the U.S., but there's an argument that
says, look, there's a new phrase that's become vogue, which is "viable jobs." The government -- I mean, in the U.K., for example, the government
says it will support viable jobs.
If the industry cannot support this level of employment and is unlikely to be able to do so without government support for the foreseeable future, how
do you square that?
NELSON: Richard, this has nothing to do with the industry being able to support these jobs. This has to do with the fact that we are right in the
middle of this crisis. In March, when we put this program in place, everyone expected or hoped that we would be on the road to recovery, that
we would have some ability to contain this virus, return to some form of normal activity across all the sectors.
[15:05:07]
NELSON: And the fact of the matter is that it's not just the airline industry, people don't have a reason to travel. Restaurants are not open.
Resorts are not open. Business meetings are not happening. Conventions are not happening.
So for all of these reasons, and because we're still very much right in the middle of this crisis, we need to continue the assistance.
Now, I want to be really clear, the airlines have weathered a lot of storms throughout the years. And for example, during the Great Recession of 2008,
the airlines weathered that just fine. There was a drop in demand of about 15 percent. That's significant for any business, but they're able to
weather that.
When we get back in April, when we bridge to April, we're going to be moving into the travel season. We're going to be six months closer to a
vaccine. We are going to be six months further along in our testing regimen, and the ability to get closer reopening this economy.
So these are viable jobs, but if we let them go, these are certified safety professionals with security checks, background checks, and it requires
months if not years to get people into these jobs. So if the economy is ready to start up again, but we don't have our airline industry ready to
go, we are going to have a much more sluggish return.
QUEST: Now, let's go back to the politics, which in a year, in an election month, I freely admit that I find it breathtaking that something wasn't put
together even at the last moment, bearing in mind were less than a month or two months from the election.
So why do you think it is that something hasn't been cobbled together for the airline industry to prevent these tens of thousands of job losses?
NELSON: Well, here's the thing. From the most fiscal conservative to the biggest progressive across the spectrum, everyone supports this provision
of relief. It's now a proven jobs program that spends less of the public's money to keep people in these jobs connected to our healthcare than taking
care of them on the unemployment line.
So everyone knows that this is a good program and a good use of that money, and for that reason, everyone supports it. They also support the continued
infrastructure that the Air Service provides.
So there is widespread support from Democrats, Republicans, Independents, and the White House as well. And this was all part of a larger coronavirus
relief package, and there were issues with the other issues in that package.
So now the question becomes, have you woken up to the fact that this was a true lift for the airline industry? And are you going to take action on the
one thing that everyone agrees on?
QUEST: All right. Listen to what Ed Bastian, CEO of Delta Airlines said this morning on the question of testing. And this is, of course, is for
those who are traveling domestically, and whether or not some form of mandatory compulsory -- I don't know -- testing regime could be put in
place. This is at Ed Bastian of Delta.
(BEGIN VIDEO CLIP)
POPPY HARLOW, CNN ANCHOR: Do you foresee a day when it is a condition to get on a Delta flight, you need to take a rapid COVID test? I mean, is
there a day where that may be the case six months or a year from now?
ED BASTIAN, CEO, DELTA AIRLINES: I think internationally, it very well maybe, either a rapid test or evidence of a vaccine or some type of form so
that everyone knows they've all been protected.
And it's maybe not as important only to the people on the plane, Poppy, but really to avoid the quarantines.
HARLOW: Yes.
BASTIAN: The thing that's holding traffic back internationally, and you know, in New York are the quarantine measures.
(END VIDEO CLIP)
QUEST: Would you be in favor, particularly internationally obviously of some form of, I would say mandatory testing. Some airlines like Emirates
are already requiring that if you go to the Gulf, would you be in favor of some testing regime?
NELSON: I agree with Ed Bastian. I agree that that has to be in place in order to return and have everyone feel confident. And we are used to, in
the airline industry, doing things that we don't do anywhere else for safety and security. And this is just another example of that. So
absolutely, we'd be in favor of that and it's the right thing to do.
QUEST: Sara, thank you for taking time. It's a busy day for you, I realized that. Let's talk again, as this thing moves forward.
And hopefully, of course, many or most of those jobs will be able to come back and they will be safe.
Sara, I appreciate it. Sara Nelson of the AFA ...
NELSON: Thank you, Richard.
QUEST: ... joining me.
The announcement of the job losses in the United States comes across as many countries are reopening and dropping some of the restrictions that
have been put in place, particularly the quarantine restriction that you heard Ed Bastian talking about.
The pandemic goes on, but the country stamping passports again. Germany has lifted blanket travel warnings outside the E.U. despite cases rising there.
South Africa is reopening to foreign tourists after a six-month travel ban. Peru is restarting international flights, opening up the country that's
been grounded since March.
And China preparing for Golden Week, which is the major boom in domestic travel. Hotel bookings are already up year-on-year.
But if you really want to see the difference between say China and the sort of things I was talking about there with Sara Nelson, and hearing from Ed
Bastian, look at how different it now is in Beijing, as David Culver reports.
[15:10:45]
(BEGIN VIDEOTAPE)
DAVID CULVER, CNN CORRESPONDENT (voice over): The start of China's Golden Week Holiday celebrating the country's founding leading to crowds like
this, travelers wearing masks but standing shoulder to shoulder at the train station. This marks the first major travel holiday in China since the
coronavirus outbreak began more than eight months ago, which makes this the first major test of COVID-19 containment here.
CULVER (on camera): Going back roughly to April, we've seen significant easing of restrictions across China. Sure, there have been cluster
outbreaks including one here in Beijing back in June, but many here are more worried about the spread in other parts of the world, and so most
Mainland Chinese travelers are staying within China's borders for their holiday, feeling a bit more protected perhaps, but it makes for a crowded
bubble.
[09:10:11]
CULVER (voice over): From October 1st through the 8th, China Tourism Academy estimates there will be some 550 million domestic trips taken. That
is nearly 70 percent of the trips taken at the same time last year.
Hotel bookings, however, are up 50 percent from 2019, and so too, is same- city and short distance travel. Think staycation.
Recent college graduate, Stephy Lu normally prefers to go abroad, but this year, she is among the millions planning a trip to another part of China.
(BEGIN VIDEO CLIP)
STEPHY LU, SHANGHAI RESIDENT (through translator): My main concern is the type of transportation. I want to make sure to stay in a familiar
environment which is safer so as to make sure there's not too many unfamiliar people mix together.
(END VIDEO CLIP)
CULVER (voice over): The last significant travel holiday here was the Chinese New Year, and while Beijing's Tourism Bureau canceled all large
scale celebrations for the holiday, we were at the Beijing train station as people crowded in to head to their hometowns, very few wearing masks, no
immediate worries, so it seemed.
Three days later, Wuhan, the original epicenter of the pandemic went on lockdown, and the streets of major cities like Shanghai went bare for
weeks.
This was the iconic Bund in February.
But gradually, social life resumed in April, more people venturing out, and just last weekend, the nighttime crowd packed in; most ditching the
facemask.
Major indoor events like this Beijing Auto Show also attracting crowds, a sign that many, who, for weeks were shuttered in their homes now feel
increasingly comfortable that the virus will stay contained.
CULVER (on camera): It is worth noting not everyone in China is traveling freely for this holiday week. For example, there are restrictions in major
cities like Shanghai for students. They're not allowed to leave the city unless they're willing to do two weeks quarantine before returning to the
classroom.
But the real focus is going to be on the days after Golden Week to see if cases rise or if containment is as strong as China's Central Government
portrays.
David Culver, CNN, Beijing.
(END VIDEOTAPE)
QUEST: Gloria Guevara is with me. She is the CEO of the World Travel and Tourism Organization. The W.T.T.C. that's the private body representing the
industry. Gloria is with me. So Gloria, this reopening that's taking place slowly but surely, even at a time when numbers are rising. From your point
of view, where is it going? What is the hallmark of when countries are now starting to be able to say we're open for others to arrive?
GLORIA GUEVARA, CEO, WORLD TRAVEL AND TOURISM ORGANIZATION: Hi, Richard. Thank you for having me.
We see some countries that they're doing a good job with the reopening, implementing either testing on arrival or some sort of measures and
removing the quarantines. The challenges we had with resuming international travel among most of the countries, I'm sure that you're aware with what
happened with the E.U. on Monday, where nine countries agree on the mobility of the people and removing these quarantines.
I think it is important here because countries can reopen and say that they are open for travel. But then at the same time, imposing quarantines is
sending the opposite message.
So for us, the solution is an international testing protocol so that you can have some test before departure, so that we don't export the virus and
at the same time, use that to remove the quarantine on arrival and you can have this movement of people and resume international travel and business
travel that is needed. There are a lot of cases out about both of that.
QUEST: All right, I hear lots of stories now of the number of jobs being lost. You see for example, in the U.S. today because the CARES Act, that's
a specific number of jobs for a specific reason of government support. But how concerned are you now as we go into a northern hemispheric winter that
the job losses really will pick up in the industry, and what's your latest number for what you forecast that will be?
[15:15:20]
GUEVARA: We're very concerned, because we haven't seen really the impact. This is like a tsunami coming to us without even seeing that. By the end of
the year, we're estimating 197 million jobs impacted globally. To give you perspective, that is the population of Mexico plus Canada and a little bit
more, or a little bit more than half of the U.S.
So it's a lot of jobs that are going to be lost, and as they remove all these support that we have, like, for instance, in the U.S. and in some
other countries around the world, that's when you're going to start seeing the real impact.
And let's remember also the domino effect, because if an airline is impacted, it is not only the employees of the airline. These are travel
agencies, the tour operators. These are the restaurants. It is the entire ecosystem.
QUEST: We were looking at the measures that you've been taking, if we just take a look at the latest campaign that you've got, which is again, getting
people to realize the number of tourists, the number of tourists and the effect that they have. What's this campaign about?
GUEVARA: Our campaign is about the social impact, because yes, we contribute 10 percent of the global GDP, one in 10 jobs. But let's talk
about the social impact. Fifty four percent are women -- were women, 30 percent youth. And of course, the restaurants and the waiters and all the
people impacted, so the campaign is about that.
QUEST: Let's have a listen in to some of the campaign and some of the commercial.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: .... world difference.
Remember how you made a difference when you traveled? Remember how much your travels meant to others?
Now just think of all the good you can do in the future.
Travel the world.
(END VIDEO CLIP)
QUEST: I do wonder. I wonder, Gloria, is it too late? Is it going to be able to do enough? Or are we just -- I mean, the jobs are going to go
because there are the tourists there because they don't feel safe to travel?
GUEVARA: Well, according to the data, Richard, a lot of travelers are feeling safe. When you look at the -- depending on the demographics, right?
The groups like the millennials, the Generation Z, even the Generation X are okay to travel.
What people are afraid is to be stuck in another country in a quarantine or being -- not knowing what is going to happen. That's the data. And that's
what the consumers are telling us.
They are concerned that we have is impacting the ecosystem. You're right. If we don't support these SMEs, if we don't support all these workers
throughout the industry, what is going to happen? The ecosystem is going to be impacted and there's going to be nothing to recover or not allowed to
recover.
So very important to have the support from governments through this phase so that we can weather this storm. Very important to resume international
travel.
Let's think about the impact. That's what the campaign is -- they impact that you make every single time that you travel that you help to reduce
poverty, you help to increase education, and you help to provide opportunities to reduce inequality. A lot of benefits that we have no idea
sometimes every time that we travel, we really make a difference and we distribute also the income between them: developed countries and also the
developing countries and the poorest in the world.
QUEST: Gloria Guevara, the CEO of the World Travel and Tourism Council, the W.T.T.C. Thank you.
GUEVARA: Thank you, Richard.
QUEST: In a moment, the legal case -- finally the E.U. has decided it's had enough. It warned the U.K. not to go ahead trying to change --
unilaterally changed the withdrawal agreement. Now, they're going to court. After the break.
(COMMERCIAL BREAK)
[15:21:34]
QUEST: The E.U. is now to sue the U.K. over their withdrawal -- unilateral decision to change the withdrawal agreement and for breaking what they see
as the Brexit game. Now, it's the Northern Ireland protocol. It's the heart of the dispute and the U.K. Cabinet Minister says the new law, you'll
remember, the Cabinet Minister said the new law allowed the U.K. to break international law and treaties in the phrase specific and limited ways.
Britain has now spoken to the E.U. "We will respond to the letter in due course."
Gideon Moore is the Firmwide Managing Partner at the law firm, Linklaters, joins me now. We'll talk about this to start with.
This is a -- this is -- I mean, to yank the U.K. before the court, it's surely just going to create more Brexit uncertainty before we get to the
end of the year.
GIDEON MOORE, FIRMWIDE MANAGING PARTNER, LINKLATERS: Richard, first of all, thanks very much for having me on this evening. The question you posed
is a very nuanced and very complicated one, and I think that it's that one best answered by the experts that are considering it.
And I figured with everyone else, we'll see how that plays out over the next period. But of course, as you say, it does stem from the Brexit
negotiations, which are ongoing, and it's certainly an area that we have spent some time advising our clients on how Brexit and what it may look
like as and when it's finally settled, will be by way of impact for our clients and their businesses.
So we spent a lot of time helping them navigate what is probably the most complicated area of law for many, many years that also have regard to our
own business and wellbeing of our business.
QUEST: Gideon --
MOORE: Yes.
QUEST: How will you be impacted in this sense once -- I mean, assuming there -- I mean either no deal, or a limited deal, a skinny deal, as it's
called? Will you still be able to have the tentacles into Europe to be able to advise your clients, do you think? Or will you be handicapped?
MOORE: We've spent a lot of time looking at this from our own perspectives as you would expect. We are an organization which as you say, does straddle
both the U.K. into continental Europe and out into Asia and the States.
And so we've had to have regard not only to the impact of the E.U.-U.K. discussions on the business of our clients, but also how it affects us as
an organization, particularly one that operates in a regulated environment.
I'm pleased to say that I've got the choice of 2,700 lawyers to be able to advise me and I've chosen carefully and the advice I'm getting is that we
have no doubt that we will be able to continue to advise our clients whichever way the decisions and the discussions fall.
QUEST: Related to this one of the other things we're hearing is that law firms are having increasing difficulties particularly the big law firms
with their for example, indemnity insurances on COVID, for example and this comes back to your point about you changed your policy about people working
from home. You're now allowing your colleagues to work up to 20 to 50 percent of their time.
Now are you worried, obviously not in terms of you allowing it, but how are you going to manage the supervision which is what a lot of people are now
finding is the difficulty, and the reason I raise this with you is that I do know that law firms, in particular, on this side of the Atlantic, and on
yours are having now to have some difficulty when it comes to indemnity insurance.
[15:25:24]
MOORE: It's not something that's been brought to my attention on the insurance side, and I have no doubt that my team would have done so had we
had difficulties in that respect, and I think that we have very recently renewed that.
But the point that you've raised about supervision is a very good one. Actually, the fact that someone has sat behind the screen working very hard
doesn't mean that you have more or less supervision, whether you are in the room next to them, or many miles away working remotely.
I think what it does come down to is trust and making sure that you have internal systems that ensure that proper supervision is given at all times.
I think it raises another point, obviously, that actually, supervision and learning and training was a big part of the professional services firm is,
it has to be said slightly more difficult if it is done remotely however well an organization goes about organizing itself, so as to support its
colleagues.
QUEST: Very interesting. That's a key crucial point. Grateful that you came on tonight, Gideon. Thank you. We will talk more about it. I
appreciate it. Thank you.
Now, in terms of the delays in how to keep ourselves safe during COVID. In the U.K., the N.H.S. track and trace system, the app is finally up and
running, or sort of. Here is CNN's Anna Stewart.
(BEGIN VIDEOTAPE)
BORIS JOHNSON, BRITISH PRIME MINISTER: We have a growing confidence that we will have a test, track and trace operation that will be world beating.
And yes, it will be in place. It will be in place by June the first.
(END VIDEO CLIP)
ANNA STEWART, CNN REPORTER (voice over): It took a lot longer than many expected. But finally, a test and trace app powered by Google and Apple has
launched in England and Wales.
STEWART (on camera): The app builds up a user's digital footprint using Bluetooth technology, which is constantly working in the background. It
registers a digital handshake every time it comes in close proximity to another phone using the app.
Now if one user develops COVID-19, and logs that into the phone, it sets off a chain reaction alerting all of those users who could be at risk.
STEWART (voice over): It can advise people to isolate for 14 days, but it's not legally binding or enforced, unlike instruction from the N.H.S.'s
human contact tracers.
An epidemiologist who advise the government on the app says it has some key advantages.
(BEGIN VIDEO CLIP)
CHRISTOPHE FRASER, PROFESSOR, UNIVERSITY OF OXFORD: Speed is the first thing. The second thing is that in some social settings, you know, in the
pub or in public transport, you may spend some time in close proximity to them and not know, you know their name or the contact details.
(END VIDEO CLIP)
STEWART (voice over): Other features include a QR code function, so users can check in to pubs, restaurants and other venues.
It isn't the U.K.'s first COVID-19 test and trace app. This earlier version was trialed on the Isle of Wight in May. It didn't work and was scrapped in
June, a delay that could impact public trust in the technology.
(BEGIN VIDEO CLIP)
SUSAN BANDUCCI, PROFESSOR, UNIVERSITY OF EXETER: Other countries did -- were much quicker in deploying an app. Other countries have had higher
uptake, like Iceland, up to 40 percent downloading and installing the app, but other countries like France has very -- they have very low uptake.
So I think, by those indicators, you know, maybe not world beating, but catching up.
(END VIDEO CLIP)
STEWART: Over a fifth of the population have already downloaded it. The real test, though, of whether it can be an effective tool, will people
self-isolate if the app suggests they should?
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: No, I wouldn't trust it.
STEWART (on camera): How about you?
UNIDENTIFIED MALE: I would, yes. Any advice is some advice.
UNIDENTIFIED MALE: Yes. Yes, of course. Yes. You've got to pay attention to that.
UNIDENTIFIED FEMALE: You can't complain about the government and the restrictions and COVID and people dying if you're not willing to do your
part.
STEWART: Delays, technical issues, privacy concerns -- all this means is that this app has had a troubled start. It is now finally here, but experts
say no matter how well it works, it'll only be one part of the fight against coronavirus.
Anna Stewart, CNN, London.
(END VIDEOTAPE)
QUEST: And in some moment after the break and the news headlines, so the coronavirus pandemic marches on, the U.S. election is in disarray it would
appear, and investors either aren't too concerned or they are concerned, but are plowing into the markets because it's the only game in town -- all
of which will be discussed after the break.
(COMMERCIAL BREAK)
[15:30:00]
RICHARD QUEST, CNN INTERNATIONAL HOST: Hello, I'm Richard Quest. There's a lot more QUEST MEANS BUSINESS in just a moment. Still to come, of course,
the President of Lithuania who gives us a view on how the rest of the world views the U.S. presidential election. Well, in the sense of the dreadful
debate, as we saw on Tuesday. And the contested election is now the number one worry on CEOs minds, as they consider just all the things. It's
overtaking COVID apparently, in terms of worrying distress, all of which is after the news headlines. Because this is CNN, and on this network, the
news always comes first.
U.K.'s Health Secretary has announced new COVID measures in Liverpool and other cities in northern England, following a rapid rise in cases. The
measures include a ban on households mixing in doors and recommendations against non-essential travel and amateur sports watching. Meanwhile,
Britain has added Turkey and Poland to the U.K. travel quarantine list. The Spanish government is announcing new lockdown measures in Madrid in
response to a rising case numbers. Residents will be required to stay at home for the most part, while shops, bars and restaurants will have to
reduce their capacity by half.
In Hong Kong, the police say they have arrested more than 80 people at a pro-democracy protest that includes several district councilors. The
protest was held on National Day, which marks the establishment of the People's Republic of China in 1949. is emerging the rest with full unlawful
assembly. Donald Trump continues to openly question whether he'd accept any changes to the rules on next presidential debates. The group that organizes
the debate says it will make changes to its next event after Tuesday's chaos. Mr. Trump tweeted, Why would I allow the commission to change the
rules when I won easily last time?
[15:35:04]
As we start the final quarter of the year, the markets are, I won't -- I wouldn't say (INAUDIBLE) I would just simply say they're in a torpid state,
having been on such volatility lately. Look at the numbers and you -- you'll see the big board is now just down 26, 27 points, but look at the
way the day has gone. It's actually in and out of the red over the day, and millions are still unemployed.
First time claims that came in this week for last week show 837,000 first time claims. It is a decline, but as you'll notice from the chart, we are
pretty much stuck at the bottom of the number of claims anywhere between 820, 850 through to 900,000. And the layoffs are mounting. The jobs
continue to go. 400 jobs are going at Goldman Sachs, 13,000 will go unless there's new government aid from United Airlines, and American Airlines
intends to lose 19,000 or furloughing 19,000.
So, in all of this economic maelstrom, there is, of course, the prospect of a contested election in which anything other than a total outright win for
Donald Trump gets either confused with fraud or gets thrown into the courts, ending up at the Supreme Court. RBC Capital Markets has come up
with some numbers, and it's surveyed portfolio managers. This is what they say, 76 percent are concerned about contested election, 66 percent of
layoffs, and you see down the list, slow recovery, 64. Second wave of Coronavirus, 63 percent. President Trump continues to feed this worry about
mail-in ballots and a contested election.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: There's fraud. They found them in creeks. They found some with the name Trump -- just happened to
have the name Trump just the other day in a wastepaper basket. They're being sent all over the place. They sent two in a democrat area. They sent
out 1,000 ballots, everybody got two ballots. This is going to be a fraud like you've never seen.
(END VIDEO CLIP)
QUEST: Now, Matt Egan is with me, senior writer for CNN Business. He joins me. Matt, before you begin, I will just clarify that, so far, there is no
evidence of any mass fraud, or indeed any fraud of any significant size in the election (INAUDIBLE) ballots, voter registration, early voting, there
is no evidence. Now, there has been any evidence it's been well-documented. So, Matt, why are investors so concerned?
MATT EGAN, CNN BUSINESS SENIOR WRITER: Well, Richard, that debate the other night did not exactly scream peaceful transfer of power. If anything, that
debacle really amplified these concerns around post-election chaos. And for the first time, we are getting some numbers behind that concern. You
mentioned the RBC poll. And what is so telling to me is that we are right now in the United States in the middle of the worst pandemic, in a century.
The United States economy and the world economy is really trying very hard to climb out of this historic collapse in activity. And yet, the number one
concern on Wall Street is this idea of a contested election.
And I think that part of the concern, Richard, is that there really is no playbook for this. We have very few historical parallels for this kind of
uncertainty in the world's biggest economy. The one exception, of course, is 2000 when Bush and Gore had this protracted standoff during that time
period, as you might expect, the stock market fell, the S&P 500 was down about five percent, small cap stocks, tech stocks, they fell even more.
Gold prices went up, people put money into ultra-safe government bonds. But, Richard, I think the one difference here is that even back in 2000,
there was no real doubt that eventually someone would concede, eventually there would be this orderly transfer of power. And I do think this time
around, there is a concern that it might not be that smooth.
QUEST: Right. So, Matt, in that environment, what happens between now and Election Day? Do we see people taking positions in the market, or do we
just see volatility?
EGAN: Well, Richard, I think that it's so important to remember that markets, they look forward, they price things in, and they react. And this
idea of election chaos is not new at all. Go back to late -- early in the summer, actually, late June, early July, there were all these signs that
investors were placing bets around post-election volatility. We saw a forward-looking volatility metrics were extremely elevated. So, one
interesting idea that has come up in the past few days is that, you know, maybe Wall Street is actually too pessimistic on the election. What if
there is an earlier than expected winner declared? What if perhaps Joe Biden emerges as the winner in a potential landslide.
[15:40:00]
And in that case, the markets could, in fact, be caught off guard, but the other way, and you could see a pretty significant relief rally in the stock
market. So, Richard, I just I think it is really telling right now, though, that the bar has been set so low, that investors just want to see that
someone is declared a winner. There's just that much concern over a contested election.
QUEST: Matt Egan -- Matt Egan, thank you. Now, Lithuanian President says that Lithuania will maintain good relations with whoever wins the
presidency. But I spoke to the President about what was happening in the United States, and, of course, what's happening in Belarus. His own
election was heated, and he says he can relate.
(BEGIN VIDEO CLIP)
GITANAS NAUSEDA, PRESIDENT OF LITHUANIA: I would say honestly, I did not forget my elections. They took place one year ago. And I remember that
temperature in those selections was very high, too. But at the end of the day, or the at the end of elections, you come to your opponent, and you say
thank you, you helped me to be better, because you were tough, you were very critical, but it served me well. So, I think that -- and, of course,
this is my wish, the elections should be transparent. And of course, they should include very serious questions about economy, foreign policy, social
life, and so on.
QUEST: Let's turn to this, the issue of Belarus on your doorstep, you've met Lukashenko. And -- but we've -- you don't -- you say you no longer
regard him as the legitimate leader of the country. But I can't see a way out here. I can't -- you know, he goes -- Lukashenko goes to Moscow and
Putin props him up. The E.U. says, he's illegitimate as the leader. There are people on the street. I don't see a way out.
NAUSEDA: I don't think that this situation is like a stone -- situation is changing. Tomorrow, it could be different. After tomorrow, different, too.
So, I think we have to be prepared, and we have to be prepared for a peaceful solution of this conflict. This was my idea, as I initiated the
peaceful plan of mediation between three sides: authorities, civil society, and some countries abroad, Russia, including but also European Union, and
he initiated this mediation but at that time, Lukashenko was not ready to take any proposals or offers from outside. Now, I think we have very
limited possibilities to continue those efforts of mediation, but we are switching to the second stage, and this stage is stage of sanctions. Yes,
we have to apply stronger measures against the regime because the regime is not willing to cooperate.
QUEST: You came into office last year, you came in on a -- on a wave of optimism and hope. What's it like then within a year when everything
literally almost falls apart? Where you're now having to lead a country like any other leader that is facing some of the most (INAUDIBLE) difficult
decisions and politics that we've ever faced? What's it like?
NAUSEDA: It's really a very tough time. And, you know, we need very creative solutions every day. Coronavirus is novelty and, for example, few
months ago, we lockdown the country because they didn't know how to deal with the Coronavirus. Now, we know a little bit more about the nature of
the virus, about possible consequences of the -- of the virus on the economy. And we applied different strategy. So, this is constant and a
long-term process of learning, learning every day. But, of course, it creates enormous pressure on politicians, on the political system, and
enormous pressure, psychological pressure on the society.
Society is tired and you can feel it everywhere, not only in my country, but in other countries, too. And people want results. And those results
could be delivered by a decisive factions of politicians no matter on the national level or on the level of European Union or in other countries.
(END VIDEO CLIP)
[15:45:03]
QUEST: Still to come after the break, the Seabird Conservation, how one man has returned entire breeds to the Gulf of Maine. It is the "CALL TO EARTH,"
and it's after the break.
(COMMERCIAL BREAK)
QUEST: CALL TO EARTH, CNN's environmental climate change challenge to inspire and to work together. And tonight, it's the work of the Rolex
laureate Stephen Kress. What did he do? Well, he brought the Atlantic Puffin back to the Gulf of Maine.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: For 47 years, Stephen Kress has had a central passion.
STEPHEN KRESS, ROLEX AWARD LAUREATE: My mission for life has been to learn more about the ocean birds.
UNIDENTIFIED FEMALE: At the heart of the mission, a very special species, the Puffin.
KRESS: Because they look and act kind of like people. People can relate to them. The way they walk. The pair rubs bills together, the way they raised
their family.
UNIDENTIFIED FEMALE: Puffins had already disappeared from the Maine coast after being hunted for food and feathers back in the 1800s. In 1973, Kress
began an effort to bring them back to Eastern Egg Rock, this tiny speck of an island just 30 minutes off the mainland. It wasn't an easy task. They
had to transplant young sea birds from Canada.
KRESS: The Puffin chicks from Newfoundland were put in each of these burrows, hand-fed and then they would come out when they were six weeks
old, and they will work their way to the edge of the island and swim off.
UNIDENTIFIED FEMALE: For four straight years, none of the puffins came back.
KRESS: So, I began trying to think like a puffin. And I realized that if young puffins did remember this island, maybe they wouldn't come ashore
because they were too timid. Puffins are social birds, and they like being with others of their kind.
UNIDENTIFIED FEMALE: Kress tried placing fake puffin decoys around the island. Within days, the first puffin returned.
[15:50:01]
KRESS: That decoy experience was the first beginning of what we now call social attraction. Social attraction simply means you're attracting birds
using artifacts like decoys, audio recordings, mirrors, scent, artificial burrows. Those techniques sort of give birds a little encouragement, just
to start -- to start the nucleus of a new colony.
UNIDENTIFIED FEMALE: Project Puffin has come a long way. Kress says there are now at least 1300 pairs of puffins across five main islands.
DONALD LYONS, DIRECTOR OF CONSERVATION SCIENCE, PROJECT PUFFIN: Project Puffin is a little bit of a miracle. One person's passion, Steve Kress, to
save a particular species inspired a whole group of people to pitch in. These social attraction techniques are now critically contributing to the
restoration of many threatened and endangered species across the world.
KRESS: Oh, what a cutie. Look at that. That's a puffin teenager.
UNIDENTIFIED FEMALE: Humans no longer need to hand rear the chicks. The puffins are doing a great job of that all by themselves. Researches track
the puffins by sight and with GPS tags, gaining valuable information about the health of local fisheries.
KRESS: The big thing that we discovered is that puffins are an amazing indicator of changes in the climate, the ocean climate. Gulf of Maine is
warming faster than any other ocean in the world. And the puffins being at the southern limit of their range, are very sensitive to those changes. The
oceans are declining in their productivity, which means there's less food, less oxygen being produced for humans to breathe as well.
UNIDENTIFIED FEMALE: Kress is still hopeful, though, through Project Puffin he's learned nature is resilient. It just needs a lot of care.
(END VIDEOTAPE)
QUEST: Pardon the pun, but totally uplifting, magnificent. "CALL TO EARTH," the changes that other people are making, and what you're making, too.
Please let us know your changes and how you respond with the hashtag #calltoearth.
(COMMERCIAL BREAK)
QUEST: In four hours' time or just about, the Tokyo Stock Exchange will open. The authorities say that they have taken measures to prevent a repeat
of the outage that happened on Thursday. The market ground to a halt. It was the worst closing of the market, which is the third largest in the
world. Selina Wang explains what went wrong.
(BEGIN VIDEOTAPE)
[00:00:10]
SELINA WANG, CNN CORRESPONDENT: The Tokyo Stock Exchange has halted trading for an entire day because of a hardware failure, an issue switching to a
back-up device. The exchange said it is planning to fix the issue and get back to normal trading tomorrow. But this does still mark the worst
breakdown the Tokyo exchange has ever had. Previous outages only impacted part of the trading day with the last major one in 2005. That's when
trading was halted for 4-1/2 hours. That actually led to the resignation of the Exchange's president at the time.
Now, Japan stock market is worth about $6 trillion. It's the third largest in the world after the U.S. and China. What this outage means is that
buying and selling a thousands of shares are frozen. It is a sigh of relief that this outage may only last one day. Investors have been on high alert
for any glitches after the August cyberattacks in New Zealand that caused multiple days of trading halts. This problem does shut down one of the only
major exchanges operating in Asia today because of the national holiday. You have Hong Kong, South Korea, Taiwan, and China markets that are all
closed. In fact, China's markets are closed for several days for Golden Week.
This glitch also comes on the same day that a closely watched report for the Bank of Japan was released. It tracks economic sentiment from Japanese
companies. What it showed was that the worst may be over for the Japanese economy. But confidence is still far below pre-pandemic levels. This outage
could also dampen investor confidence in the Japanese market and put pressure on stocks when the trading restarts. Selina Wang, CNN, Hong Kong.
(END VIDEOTAPE)
QUEST: And we will have a "PROFITABLE MOMENT" after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's "PROFITABLE MOMENT." I don't know why I am surprised that the Congress and the administration couldn't put together a CARES package
extension that would have allowed those in the airline industry to keep their jobs. 20, 30, 40,000 jobs will go now the restrictions of CARES no
longer exist. I don't know why I'm surprised. This is the same Congress and administration that was unable to renew the unemployment extension that was
giving people valuable, needed money at a time of crisis, so that they could pay their bills in this country. And in an industry where the best --
yes, the airline industry, the best guess says that it won't return to where it was until '23, '24, maybe even '25 at best.
And it's a part of the national infrastructure, and they still couldn't do a deal. So, that United lays off 13,000. American lays off 19,000. You
heard Sarah Nelson say today, this is about the future of the aviation and airline industry. Now, nobody wants to keep jobs going that simply will
never come back. But that's not the case here. Travel will return, those jobs will be needed. And they are highly skilled and require certification
and cannot quickly be replaced. Put it all together, and again, I don't know I am surprised when I see a U.S. political system that is totally
paralyzed and absolutely not fit for purpose as we witnessed on Tuesday night.
I'm not surprised, but I am disgusted. And that's QUEST MEANS BUSINESS for tonight, I'm Richard Quest in New York. Whatever you're up to in the hours
ahead, I hope it's profitable. The closing bell is ringing, the day is done.
END
