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Quest Means Business

U.S. Unemployment Claims Skyrocket Shattering Records; U.K. Government Offers Economic Support For Self-Employed People; Renewed Signs Of Economic Life In China; 3.3. Million Americans Filed For Unemployment Last Week; Qatar Airways CEO: We Want To Help People Get Home; Sorrell: Coronavirus Inciting Digital Revolution; Concerns Russia Is Downplaying Extent Of Outbreak. Aired 3:30-4p ET

Aired March 26, 2020 - 15:00   ET

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

[15:00:25]

RICHARD QUEST, CNN BUSINESS ANCHOR, QUEST MEANS BUSINESS: Well, what do you know? It is Day 3 of a rally on Wall Street and what a rally. And it's

hard to justify in a sense the economic picture is far less bright. But we have got this rally. It is holding, 22,000 and these are the reasons why or

arguably why not.

Three million new unemployed workers. The U.S. economy is rewriting the record book.

But on the other side of the Atlantic, the Britain's Chancellor unveils historic new help for the self-employed.

And the U.S. Central Bank Chair, Jerome Powell says Central Banks are not out of ammo yet.

We are live tonight for you as always from New York on Thursday, March the 26th. I'm Richard Quest, and yes, we're all in it together.

A very good evening to you and a warm welcome. You're most welcome. The scale of the economic devastation from coronavirus has now been revealed or

at least, we're getting a good picture.

The number of Americans who filed for unemployment shattered records by a factor, more than three million filed last week -- an all-time high -- by

far. You have to go back to 1933 to get the last number record which was 500,000. Economists are warning this is just the tip of the iceberg.

The Economic Policy Institute believes 14 million people will lose their jobs by this summer, and as bad as those numbers are, they didn't come as a

surprise and perhaps that's the reason why U.S. markets rose so sharply and they have been up all day.

Investors are focusing on the stimulus and what happens after rather than the number so far. Julia Chatterley is with me. Julia, it feels wrong, that

a market is almost in celebration, but I realized it's not because there are now 3.3 million more people without a job. It feels wrong.

JULIA CHATTERLEY, CNN BUSINESS ANCHOR, FIRST MOVE: It's recovery. Remember, we got really, really, really beaten up and we've had loads of

stimulus, trillions of dollars of stimulus, the message from policymakers in the United States. Never mind anywhere else, of course, is that if we

require more money, we will provide it.

We are talking wartime levels of spending. We've had decorations of we will do whatever it takes. So to some degree, it makes sense. The concern for me

and I keep reiterating is that we haven't seen the worst of the data.

There are going to be businesses in this period that go bankrupt, Richard. There are businesses that are going to declare shocking numbers.

So, you know, I just -- I feel to your point, it just feels uncomfortable still at this stage.

QUEST: And particularly since the peak hasn't even arrived in New York, let alone the rest of the country.

Julia, listen to the U.S. Treasury Secretary, Steve Mnuchin, and please, you follow on after he is finished.

(BEGIN AUDIO CLIP)

STEVE MNUCHIN, U.S. TREASURY SECRETARY: I just think these numbers right now are not relevant. And you know, whether they're bigger or smaller in

the short term, you know, I mean, obviously, there are people who have jobless claims, and again, the good thing about this bill is the President

is protecting those people.

So, you know, now with these plans, small businesses, hopefully will be able to hire back a lot of those people.

(END AUDIO CLIP)

CHATTERLEY: Tone deaf. Misuse of a word. We will give him that he is sleep deprived, because he has been working hard on that Stimulus Bill and the

context of course, Richard is important that the help is coming.

But there's going to be delay even in the help just judging by the conversations that I'm having.

We knew what he meant. It wasn't the right time or the right word to use.

QUEST: Jerome Powell spoke this morning as well and we'll hear more about that later, but he basically said, he believes that it is a recession.

I mean, it's a bit like stating the blinding obvious at this particular moment and it really doesn't matter whether it's an official recession or

not, although there probably will be.

CHATTERLEY: This is recession.

QUEST: It is, but it does feel when he speaks that there's somebody who knows what they're doing.

CHATTERLEY: I couldn't agree more and the fact that he went on "The Today Show," you can tell who he was messaging at as well. This is leadership.

This is him trying to say, look, there's a steady hand at the wheel. We will do more if ultimately that's required, Richard and I think that was

the message that he was trying to convey.

The point is they're trying to stabilize the economy at this stage.

[15:05:07]

QUEST: Right.

CHATTERLEY: And put us in a position where we can recover afterwards.

QUEST: Julia, thank you. Julia Chatterley from "First Move." We appreciate that. Thank you.

Now, the British government said it was going to take a few more days to provide relief and a relief scheme for the millions of self-employed

British workers. Today, they came up with their plan. It provides them with grants worth 80 percent of their average monthly profits over the last

three years, and the same rescue package for employees last year, probably, they are the same.

The Chancellor now says the U.K. stimulus is one of the most generous that there is.

(BEGIN VIDEO CLIP)

RISHI SUNAK, BRITISH CHANCELLOR OF THE EXCHEQUER: What we have done well, I believe stand as one of the most significant economic interventions at

any point in the history of the British State and by any government anywhere in the world.

(END VIDEO CLIP)

QUEST: Anna Stewart is with me. This is a very interesting scheme. He has done the same thing for the self-employed that he did for the employed.

It'll be a bit more tricky though, won't it? To try to administer it.

ANNA STEWART, CNN REPORTER: It will and this is why it's taken almost an extra week to really sort out. This will be based on people's earnings over

the last three years, based on the tax returns.

And while it is very generous in terms of it very similar to the staff employee scheme and that was a relief for many people that I've spoken to

you, there are a few hiccups, a few concerns here, Richard.

For instance, you won't get paid until June. You apply now, but the money won't start coming into people's accounts until June.

For many people who are self-employed, that is too late. They've been burning through cash for the last few weeks already. It will hit people

that rent in the U.K. particularly hard.

Homeowners can also apply for a three-month mortgage holiday. People that rent are relying on very kind landlords if they cannot make those bills.

Some other things, it means you cannot continue to work at all if you are self-employed. So for some people, they might have been able to do maybe

five percent or ten percent of their usual workload, but will make no sense for them to continue to do that. They want to apply for this grant.

Also no good for anyone who has recently joined self-employment. You have to be self-employed for some time, ideally for the last three years to

prove your salary because they're worried about fraudulent cases, of course -- Richard.

QUEST: Anna Stewart in London with that. We'll talk more about that as the week moves on.

There are renewed signs of economic life in China. .

And Hasbro says it expects production to get fully caught up next month.

Brian Goldner is the Chief Executive of Hasbro. He says the company is in good financial position and won't have any layoffs. That is excellent news,

sir, as everybody wonders what happens.

If we look between what you've seen in China and what you've seen with your supply chains, and what you're now seeing in the United States, how do you

marry those two up? Give us some guidance?

BRIAN GOLDNER, CHIEF EXECUTIVE OF HASBRO (via phone): Well, we're clearly seeing that China is back up and running as of this week, and we would

catch up on some missed production from earlier in the year in the next several weeks.

We are seeing robust sales of our products, particularly our games business, our Play-Doh business and our NERF business, as parents continue

to look for ways to engage their kids to help them build in their creativity, to spend time at home, to make connections among one another.

And certainly games and Play-Doh and NERF are great ways to do that.

You know, it won't matter a lot about what the timetable is, as we go forward. We're all navigating this unprecedented situation and working

through the global implications.

And our first priority right now is the safety and health of our employees and their families as well as for people all around the world. And that's

why we are committed to paying our employees whether or not they have access to laptops, or not, we are paying all our employees. We want to

ensure that we can continue to operate as a successful company. And we recognize that we want to come through this successfully.

QUEST: Right. So you sort of hit both sides of the curve here, haven't you? When China was hit, it was your supply chain that was affected. Now,

that the supply chain is coming back on order. It's the demand side.

But the demand side, as you've just told us, is holding up. What's been the most difficult part of managing the crisis for you as a Chief Exec?

GOLDNER: Well, there's a lot of moving parts and pieces. Clearly, the timetable for when people can get back to normality is going to be

incredibly important and we do have to follow the science here.

Now, we clearly want to ensure that our people are able to be safe and to be healthy as we work virtually around the world. We have to still work on

a marketplace that has shifted dramatically toward e-com and a majority of people who are buying online are picking up at stores in their cars.

They're not going into stores so that changes the supply chain.

[15:10:10]

GOLDNER: And our teams are doing a tremendous job in addressing all of these changes on the fly. And then finally, our team wants to give back. We

are a group of passionate people who want to give back and so tomorrow in fact, we're launching a bring-home the fund campaign to support families by

staying indoors.

This is a global initiative to feature playtime tips and resources. It's developed by parents for parents, you know, who will get it at all facets.

QUEST: Brian, earlier in the crisis, there was lots of talk about Christmas. I know that seems a million miles away. But in your business,

Christmas is only yesterday, and it's going to be with us tomorrow. Do you see a lasting damage? Or can you get the toys by Christmas? I suppose

everybody wants to know.

GOLDNER: Yes, look, I think at this point, looking at some of the curves and depending on when people are able to come out of their homes and return

to retail, that time period in the summer is important and so we're running lots of different scenarios.

Certainly, our biggest quarters as a company are third quarter and then fourth quarter is our biggest. First and second quarters are smaller

historically. So it is really critical what we're able to do in the summer in terms of sourcing our new initiatives, and then where our consumers

globally in the third and fourth quarter as we enter into the holidays, that's going to be really the most important measure as to how we look at

the Christmas of 2020.

QUEST: Good to have you, sir, Brian, and you know, thank you. Good on you for not having to lay off anybody and for all you've said about your

initiatives. Thank you, sir. I appreciate it.

We will continue. It is a bullish day in the market, which might seem very strange when you look at the numbers, but there it is. It is up quite

strongly, very strongly, in fact, and we'll talk more about it in a moment. This is QUEST MEANS BUSINESS from New York.

(COMMERCIAL BREAK)

QUEST: To return to the United States data sets and the record number of jobless claims. Let's put it into context.

The weekly jobless claims going back to 1980, the previous record was 695,000 in 1982. Slightly more than the 2009 peak during the Great

Recession.

Today nearly five times as many. There you are. Joining me now, Robert Reich. He served as the U.S. Labor Secretary under President Clinton. He's

also the author of "The System: Who Rigged It and How We Fix It."

First of all, Professor, how are you feeling? All well with you and your family, I hope?

[15:15:12]

ROBERT REICH, SERVED AS THE U.S. LABOR SECRETARY UNDER PRESIDENT CLINTON: Well, so far so good, Richard, I -- and how about you? I hope you're doing

all right.

QUEST: We are. Thank you. And thank you for asking. So let's talk about what -- the jobless number. We knew was going to be a very high number.

Were you surprised? Was it a bit of a eye shocker for you just how high?

REICH: No, I thought it was going to be around three million, because if you look at how rapid the drop off in employment has been, you're seeing

really the most extraordinary shutdown of the American economy that the U.S. economy has ever endured or ever undergone, and this is appropriate.

We are shutting down for the purpose of preventing or at least slowing down the coronavirus, and so that you want people to be home. We want people to

be safe.

The public health concerns take prominence and precedence over the economy.

QUEST: Will the measures taken be sufficient to keep people afloat? Because that's really all you're talking about. It's a life raft and a life

jacket, rather than a -- will it be sufficient?

REICH: I don't think so. If you're talking about the measures that have just come through the Senate, and are waiting affirmation by the House of

Representatives, those measures are better than nothing, but they are not really going to get a lot of money to a lot of people as quickly as people

need it.

And certainly, they're not going to tide people over for very long. Remember, we're talking about a large portion of the American workforce who

could be -- I wouldn't be surprised if there was 30 percent or higher of American workers who are not in work, who are staying home.

And again, it's very believe that they're doing that. This is what we want in terms of trying to control this pandemic. But when you're talking about

that dimension, that degree, that number in a $21 trillion economy, a bailout or any kind of a bill that provides $2 trillion of relief with only

what? About several hundred billion going directly to people, $500 billion, almost $500 billion going to big corporations. Well, that's not really much

of a relief at all.

QUEST: The difficulty here is, isn't it, you've got to keep the big business going. You've got to bail out the airlines. You've got to do those

things for those companies that are systemically important to the economy.

And at the same time, you have to assist ordinary workers through paychecks and grants and the like, have they got the balance right?

REICH: No, I don't think you'd need to bail out the airlines and the cruise ships and the hotels. Why would you be to bail them out? They

already have a lot of collateral.

I mean, the airlines have these big aircraft. Hotels have hotels. The cruise ships have cruise ships. And they can get low interest loans. They

can, if worst comes to worst, they can work out their debts under Chapter 11. That's what Chapter 11 is for.

The airlines have used Chapter 11 -- at least every airline has used Chapter 11 over the past 20 years. No, what need to do is make sure that

this money goes to people and the provision in the bill providing unemployment insurance, fairly generous unemployment insurance. That's

good. It's not enough, but it is good as far as it goes.

$1,200.00 is just not enough.

QUEST: Robert, wouldn't it be -- wouldn't it be very disruptive in an already very disrupted time for large corporations to have to start

declaring Chapter 11?

REICH: Well, but they wouldn't have to declare Chapter 11, Richard. You know what happens, they work these things out with their creditors in the

shadow of bankruptcy. They don't actually go into bankruptcy.

I mean, the airline industry is not going to disappear. The cruise ship industry is not going to disappear. It's absurd to think that these big

industries are that vulnerable. They're not.

This is just not a typical economic downturn. This is not even a depression or a great recession. This is pushing the pause button on the economy for

public health purposes. And so, you know, these companies should not get a dime.

QUEST: Good to talk to you, sir. Thank you very much, Mr. Secretary. We'll talk more in the future. Thank you.

Now, on that very point that Robert Reich was saying, the chairman of the Federal Reserve says the longest economic expansion is likely over and

recession may already be here.

Jerome Powell emphasized the Fed will not run out of ammo to fight the virus downturn. The rates are already at zero.

(BEGIN VIDEO CLIP)

JEROME POWELL, U.S. FEDERAL RESERVE CHAIRMAN: When it comes to this lending, we're not going to run out of ammunition. That doesn't happen.

We may well be in a recession. But again, I would point to the difference between this and a normal recession. This isn't -- there's nothing

fundamentally wrong with our economy. Quite the contrary.

We would tend to listen to the experts. Dr. Fauci said something like the virus is going to set the timetable and that sounds right to me.

(END VIDEO CLIP)

[15:20:22]

QUEST: Jean-Claude Trichet led the European Central Bank, E.C.B. through the Great Recession. He joins me now from Paris tonight.

Jerome Powell may be right, Mr. Trichet, but the damage from this is so immediate, and so many companies may not come back. I wonder whether it

isn't similar to the GFC or the Great Depression.

JEAN-CLAUDE TRICHET; FORMER E.C.B. PRESIDENT: Well, it is certainly a very, very grave phenomenon. And it is true that what is very important is

that when we are over the bow of this period of sudden stop of many sectors, many segments of the economy, we can restart again, immediately or

at least extremely rapidly.

We should not accept that protective sector would be destroyed. And that is it seems to me what we tried all to do, if I may, that's only one hand and

governments on the other hand.

QUEST: The E.C.B. went a long way in in doing its ammunition. It has basically lubricated the financial system to ensure it doesn't seize up.

You're familiar of course with exactly how that has to be done.

But I suggest to you that when it comes to rebuilding the European economy, the E.C.B. is out of ammunition.

TRICHET: No, frankly speaking, I don't think so. But the E.C.B. can do only what a Central Bank can do, namely to provide liquidity without any

limit, you know that it is an unlimited supply of liquidity which is organized in Europe. It can provide a lot of credit with very, very low

interest rates, like the targeted long term refinancing operations to make credit available to all in Europe.

And it can intervene a loan market with a level of flexibility which is unseen with the pandemic program. All of that is being done, but of course,

the governments have to step in, the national government and I would say also, the European institutions.

QUEST: Finally, the G-20 has met both at Finance Ministers level and at leaders' level. Now, you remember of course, we spoke at the time, G-20,

back in the great financial crisis, London and Washington and thereafter, I put it to you, sir, time round, the G-20 might as well have saved the cost

of the phone call.

TRICHET: Well, I have to say that I was appalled myself because on the very beginning of these global crisis, obviously absolutely global, which

was born in Asia, in emerging Asia, we had no G-20 stepping in.

It is only now that we see this contact at the level of the heads, and I think that for a global problem of this magnitude, the worse since World

War II, it is really appalling again that the G-20 did not step in as rapidly as possible for a coherent, coordinated and comprehensive action,

which is overdue.

QUEST: Good to talk to you, sir. Before I let you go, how is your health? Are you all right? You bearing up well?

TRICHET: Yes.

QUEST: Good, John-Claude Trichet. Looking good there.

TRICHET: Thank you.

QUEST: Thank you. And now, we were talking about the G-20. World leaders from the biggest economies have committed to doing whatever it takes.

After an extraordinary Summit by teleconference, they vowed to present a united front. John Defterios is with me. Did you hear -- were you able to

hear John what John-Claude Trichet said. He was appalled at the lateness of the G-20. He is right, isn't he?

JOHN DEFTERIOS, CNN BUSINESS EMERGING MARKETS EDITOR: Well, we had this conversation Monday night, Richard, when we saw the Finance Ministers put

out their statement. It looked very vague. So was the final statement right now, but I have to say what a sign of the times, right, a virtual Summit

and the phrase of our times, do whatever it takes.

Now, it's interesting. The Chair of this, King Salman was saying, we need deeper coordinated action that the world is calling on the G-20, to John-

Claude Trichet's point right now, not yet. A senior adviser said that the wheels are turning in that direction, and instead they emphasize the $5

trillion that the G-20 has put into the game right now to rescue their economies.

[15:25:06]

DEFTERIOS: But what do we know? It's about $100 billion from the IMF and the World Bank, about $15 billion. Not a lot on debt relief for the

developing countries, some of the poorest in the world.

But this is an enormous task, Richard. We're talking about a quarter of the world's population. And so far, we just hear platitudes from the G-20, and

there's something that's going to happen, clearly not yet. And they have to do it, of course, well, before the Leaders' Summit in November. This is a

crisis at our doorstep.

QUEST: John, you know, just briefly, that phrase, whatever it takes, that just about shows the lack of originality of these people to latch on to a

phrase that was used before in another crisis, whereas for example, Christine Lagarde has got a new phrase, no limits. They had been better off

going with hers rather than Mario Draghi at five years ago.

DEFTERIOS: Well, I think there's a problem here for the G-20 in general. They celebrated their 20th Anniversary last year, and nobody knew about it

because they'd been dormant for 10 years.

Three key factors behind this, Richard. Donald Trump doesn't like international organizations. The ties with the U.S. and China are very

strained right now, so this is difficult around this bargaining table.

And we have a price war on oil between the United States, Saudi Arabia and Russia. This is all fronts working against the G-20.

Final point, the U.N. said today -- and this is horrible for the developing world -- that foreign direct investment they needed during the crisis is

likely to go down 40 percent in 2020 due to the coronavirus.

QUEST: John, thank you, sir, in Abu Dhabi. Keep well and we'll talk more tomorrow. Thank you.

As you and I continue tonight, I'll be speaking to the CEO of Qatar Airways.

Now, airlines are shutting down, left right and center, but he, Akbar Al Baker is boasting that he is continuing to fly, at least 35 percent of his

flights are running. Why? In a moment.

[15:30:00]

(COMMERCIAL BREAK)

RICHARD QUEST, CNN INTERNATIONAL HOST: Hello, I'm Richard Quest. There's more QUEST MEANS BUSINESS in just a moment. The chief executive of Qatar

Airways will join me on the line to explain how his company is surviving the coronavirus, as new figures from IATA reveal the extent of the damage.

And Sir Martin Sorrell will be with us to tell us and explain the worldwide disruption and the digital revolution that could spark as a result. This is

CNN, and here on this network, the facts always come first.

The pandemic has now passed two grim milestones, according to numbers from John Hopkins University, more than a half a million people worldwide have

been infected. And in the United States, more than 1,000 patients have died from COVID-19. The U.S. has now seen more than 78,000 cases. The pandemic

is also causing the U.S. economy to shed jobs at a pace never seen before. Almost 3.3 million Americans filed for an initial unemployment claims last

week. It's the highest number since the Labor Department started tracking those claims. And some economists say it's only the tip of the iceberg.

Spain's health minister says a recent data indicates the country is nearing a phase of stabilization in new coronavirus cases. The top Spanish health

official is tentatively pointed to signs of a peak in the data and noted the rate of increase is stabilizing. Spain has been very hard hit, and on

Wednesday, its coronavirus death toll surpassed China's.

Venezuela's embattled President Nicolas Maduro denounced the United States on Thursday over criminal charges filed against him in the U.S. The Trump

administration officially charged Mr. Maduro and other senior Venezuelan officials over alleged Narco-terrorism activities.

Not a massive stimulus package by -- passed by the Senate includes 61 billions pour for U.S. carriers. This chart from flight radar data shows

the extent of damage to the airline industry. The number of planes in the air fell sharply -- numerically, rather, as passengers stopped flying. You

can see the line on the left, new line on the right. IATA, the International Air Transport Association is calling on European leaders to

follow the U.S. and save European Airlines.

It believes more than 5 million European airline jobs could be lost as a result. IATA projects European air travel will fall by almost 50 percent

compared to this year. So far, airlines left, right and center are closing down, stopping flying, or simply laying off vast numbers. 98 percent of

international flying. On the line now is the CEO of Qatar Airways, Akbar Al Baker. Sir, you're still running 35 percent of your flights? Why are you

doing that when everybody else isn't?

AKBAR AL BAKER, CEO, QATAR AIRWAYS (via telephone): Well, we know that this is a very difficult time and that many people around the world are trying

to find a way to go home. So, we are just there to help this thousands of people around the world. We are, of course, the only global carrier

offering passengers the chance to go home safely to be with their family. And we are getting huge requests from embassies all over the world, to help

them to get their citizens back to their country.

QUEST: But it's one thing to run relief flights, which sort of can almost be ad hoc or they can be just isolated and -- but you're keeping up the

schedule, you're actually running flights to many of your destinations on a regular basis. Those planes must be nearly empty.

AL BAKER: Well, it is -- has a very low seat factor in one direction, but in the other direction, we are carrying nearly 85, 90 percent load, because

people really got surprised, frankly speaking, shocked to see with the speed in which the COVID-19 is spreading in their countries. And the

governments want to get their citizens back because they are stranded unexpectedly, not knowing the impact that this virus is going to do in

their countries, and they all want to go back.

QUEST: Right. Let's listen in to this video of a campaign that you're running at the moment.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Getting you back home is our priority. Qatar Airways, we will get you home. We understand that life is challenging right now. We

are here to --

(END VIDEO CLIP)

QUEST: How much is this -- how much is this costing you? I mean, you're obviously losing money like everybody else running the airline. And I

assume that the obviously you've got good state spot -- well, you're state- owned. And that your ruler has made it clear as everybody to use the phrase of the day, whatever it takes.

[15:35:07]

AL BAKER: Well, that is surely not the case. Qatar Airways has its own reserves, which now we are using. There will be a time when we will have to

ask our government for assistance. But as of now, we are managing with the reserves that we had. And we will continue to do so. But at the end of the

day, it's not only Qatar Airways, you can see that already many airlines have -- are asking for state aid, including the airlines that were

challenging us in the past for taking state aid. So, aviation plays a very important part in our life these days. And it is going to be imperative for

all the countries that have major airlines to support them. President Trump is already asking Congress for 50 billion aid to American carriers and so

are European carriers.

QUEST: Once this is over, the landscape will look very different. Not everyone will survive, will they, in terms of airlines?

AL BAKER: It will be a very, very difficult time for airlines. A lot of airlines will go belly up. And it will take a long time for our industry to

recover. But the industry is very resilient, it will recover. Sooner or later, once the big cloud of COVID-19 is settled.

QUEST: Good to have you on the program, Chief, as always, thank you very much. And now, we'll go to Larry Kudlow, the chief economic adviser to the

President.

(BEGIN VIDEO CLIP)

LARRY KUDLOW, DIRECTOR OF NATIONAL ECONOMIC COUNCIL: -- get the small business to file, that's our job. So, I hate to see the numbers jump. I

don't think anybody's terribly surprised. We're just going to work on giving some relief because it's only going to be a few weeks, I hope.

REPORTER: A few weeks, not a few months?

KUDLOW: It will be weeks -- it will be weeks and months, not years, that's for sure.

REPORTER: Yes. But I mean, are we talking about six weeks, but --

(END VIDEO CLIP)

QUEST: Well, that was Larry Kudlow there, getting the gist of it. Basically, no one likes to see the numbers but the U.S. is doing important

as he walks away a few weeks, a few months, not years, is what he said, just as he finished speaking outside the White House. We'll have a listen

back to what else he might have said while we were talking to Akbar Al Baker. And if it seems pertinent, of course, we'll bring it to you.

It is QUEST MEANS BUSINESS, a digital revolution. Sir Martin Sorrell believes it's happening now. And also, we want to find out what his view on

all these commercials from people telling you that we're with you and we're all in it together. Are we? In a moment.

(COMMERCIAL BREAK)

[15:40:14]

QUEST: You can't watch American television or look at newspapers and magazines without seeing multiple adverts. Basically, along the lines of

we'll get through this together, and we are there for you. In fact, it's getting quite nauseous just he sheer amount of corporations who are trying

to jump onto this bandwagon. Some would say it's almost unseemly. Sir Martin Sorrell is the Executive Chairman of the advertising firm S4

Capital. He joins me now live from London. My word, Sir Martin, unseemly, but it does seem a bit much, doesn't it?

MARTIN SORRELL, EXECUTIVE CHAIRMAN, S4 CAPITAL: Well, you would think so, Richard, I don't think so. We are in it altogether. I mean, this is --

people talk about is this recession the same or different to others. There hasn't been anything like it certainly in my experience, and the only real

analogy is to wartime and I think we are all in it together. The speed of this, the speed with market with which the market fell, the pressure that

businesses have come under so quickly and the scale of it is quite extraordinary and unprecedented.

So, I think corporations are reaching out in the right way. You may feel this way, but I don't think the consumers do. The other big thing is that

we're seeing the digital revolution I think accelerate as a result of what's happening at the consumer level, consumers are becoming more over

here I am in my pajamas in London. In my home studio, I've come and visit you in a studio it is much easier Richard. Online activity will be easier.

Use of media will be easier. Media owners will accelerate their switch from analog to digital.

And finally, people who run enterprises, run corporations will embrace digital transformation, I think more rapidly. So this, if there is any good

news from this, is it will speed change and push consumers, media owners and enterprise managers to move more quickly.

QUEST: But, but there's a difference. And we'll talk about -- there's a difference in that. Look at this. I'm just going to play a bit of a Ford

commercial, which is doing the rounds in a moment. And then show you how some I -- what I think is very clever use of advertising by some companies,

just for the social distancing. Have a look at the Ford commercial. That's just one (INAUDIBLE) of that.

(BEGIN VIDEO CLIP)

(END VIDEO CLIP)

QUEST: We all know that Ford is one of those companies that is involved also in the respirator building, and if you look at the way these four --

these company -- look at United Airlines, McDonald's and Audi, and that they're the way they've put up, they've changed their logos. That seems to

me to be a clever way of doing it. Martin, what would you advise a company that wants to somehow show it's involved?

SORRELL: Well, to be genuine, involved, I just come off a call, where I've seen what a number of major U.S. corporations are doing in relation to

respirators into protective equipment into ensuring employees, I mean, there are a number of initiatives, Richard, and I think you're being

decidedly unfair. This is not commercial exploitation. This is an attempt by corporations to engage themselves within -- with an event that is so

uncertain, so unpredictable and so all encompassing. This is not a recession just in financial terms. It affects the healthcare system. It

affects everybody, of all kinds and all places. And I think the emphasis by corporations is well-received and consumers, I think, will engage with

customers that with clients that do take this extremely seriously.

QUEST: Finally, I want to just go back to the point you made on the digital revolution that's now --

SORRELL: Yes.

QUEST: -- we've seen -- see changes or potential see changes only to see rollback after everybody gets back to normal. So, how would you say --

where do you actually see the main digital benefit coming? What will -- I mean, are you expecting more of your employees to say, Martin, you know

something, 40 percent of my time, I'm going to work from home. I've proved I can do it.

Well, I think their use of technology such as this, I think they're even better technologies that I've been exposed to in the last two or three

weeks of conference calls involving mayors, for example, from 80 cities across America, and a healthcare faculties and business school faculties.

[15:45:11]

The technology is extraordinarily sophisticated and will become more sophisticated as a result. My own view for what it's worth that this

recession that we will come out of this probably in Q4 of this year. And that would be it's dangerous to predict. But I think that's where we're

going to see a V-shaped recovery. And there will be an acceleration at all levels, Richard, at the consumer level, embracing technology, at the

enterprise level, and at the level of media owner, or media companies such as your own. This is going to accelerate the digital revolution. And if

there's any good news, and it's been really bad news so far, and big challenges for everyone. If there's any good news from this, it will mean

that we will use technology even more effectively.

QUEST: Martin, thank you for joining us, as always, keep well, and the best to you and your family. Thank you, sir. Appreciate it.

SORRELL: And stay healthy as well, Richard.

QUEST: Thank you. When we return, despite the bleak job numbers, investors appear optimistic. In a moment.

(COMMERCIAL BREAK)

QUEST: -- is bearing the initial brunt of jobless claims. 278,000 people have filed for unemployment last week, more than any other U.S. state. The

pandemic forced the salon, Barberella Beauty you're seeing it here near Philadelphia to close its doors and lay off its hairdressers. Now, the sign

on the door makes it clear. It's close temporarily, can't wait to see you again. To rehire people we hope when the crisis ends. Joining me, Trisha

Stewart, the owner of Barberella Beauty. She's with me now from Ambler, Pennsylvania. And I imagine that some of your people will have been amongst

those that did file for unemployment, perhaps because of the situation awful as it is.

TRISHA STEWART, OWNER, BARBERELLA BEAUTY (via Skype): Yes, yes. All 11 of my staff.

QUEST: That's very difficult for them and very difficult for you after you've been in business some -- a long number of years and you've won

awards for the work that you do in the region. So, how -- there was no choice, but you are now applying for a small business grant under this

scheme, and you're not having much success. Tell me more.

[15:50:07]

STEWART: It's just, you know, we're in a holding phase. So, there's just a lot of frustration. We don't know, when the application will be approved.

We're not able to get through to anyone to find this information out. So, it's just a lot of frustration and angst, just on when and how it's going

to come to fruition.

QUEST: Within that, the strain that it's putting on you must be tremendous, along with everybody else, but you hired these people, you had to let them

go. And you know, I think probably are wondering when you can take them back.

STEWART: Yes, I mean, it's horrible. I'm in contact with them, you know, mostly daily and just trying to keep the team mentality together. And we

don't know when the date will be, and there will be some apprehension, you know, health over anything, of course, so we don't want to rush back into

it. Since we, as hairstylist, can't, you know, social distance ourselves, we have to be more than six feet, you know, we're much closer than that.

So, it's a little scary.

QUEST: When it first started, and you first heard about coronavirus, and you saw it getting worse, did you pretty much guess that this is how it was

going to have to be? Or, did it come as a complete shock?

STEWART: I kind of saw the writing on the wall, I did. But it's still was shocking when it happened the way it did. And just in the rapid, you know,

just instant by instant, it was just hinging so quickly. It was -- that was the scary part.

QUEST: Finally, just to be clear, that when this finishes, we're all looking forward to it, you'll be back in business, won't you?

STEWART: Yes, I will.

QUEST: Good to talk to you. Thank you for joining us.

STEWART: Thanks for having me.

QUEST: Thank you from Ambler, Pennsylvania. Now there also are growing signs of concern over the coronavirus outbreak in Russia where the health

officials are now reporting 840 cases. The nearest are in Moscow. The city's mayor is closing all restaurants, bars and shops as everybody else

for a week, starts on Saturday. It comes amongst criticism that the government has been downplaying the seriousness of a pandemic. Our

correspondent Matthew Chance is in Moscow.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Does Russia have this coronavirus under control? Well, its Orthodox churches are still open.

Worshipers still kissing icons, which are then disinfected. It's not ideal, but the Church says it's trying to keep Russians calm.

If you close the churches that Orthodox people could stop panicking as they want to pray says this priest. Would rather they abstain from kissing the

icons, he adds. It doesn't seem to be much to ask amid a viral pandemic.

But Russians have good reason to be uncertain of the threat. In a country of more than 140 million, officials say timely action to seal borders,

quarantine infections and monitor with face recognition technology, people who could spread the virus has sped Russia, the catastrophe. Now befalling

other states, just like the church, it's a message of calm, not caution that Russia's political leaders most want to spread. Even President Putin,

67 years old, so at higher risk, has been declaring the outbreak under control and better than in other countries. While pictured on state media,

meeting crowds and shaking hands. It's certainly not social distancing. But even the Russian leader admits the country's low official tally may obscure

a much deeper crisis.

VLADIMIR PUTIN, PRESIDENT OF RUSSIA (through translator): Here's the thing, the authorities may not possess the full information because people, A,

sometimes don't report it, and B, they do not themselves know that they are sick.

CHANCE: And this is not the action of a government relaxed about coronavirus. A new hospital being thrown up rapidly outside Moscow, which

would significantly increase Russian capacity to cope with a surge of infections from critics, including one doctor close to a leading Russian

opposition figure suggests what's been happening in Russia up until now is a cover-up.

DR. ANASTASIA VASILIEVA, DOCTORS ALLIANCE (through translator): Doctors from hospitals are practically being turned into centers for treating

patients with coronavirus are reaching out to us. Instead of honestly talking about this, the authorities are masking the assignment of beds and

calling them beds for patients with pneumonia and acute respiratory viral infections.

CHANCE: Russian officials deny there's been any misleading information. And in recent days, Putin has finally being shown in full protective gear,

visiting a hospital, engaging with this crisis. While the number of confirmed infections in Russia remains suspiciously low, it seems to be

bracing itself for much worse to come. Matthew Chance, CNN.

[15:55:01]

QUEST: Now, the last few moments of trade on Wall Street for you. The Dow is up some 1100 points and it is on track for a third straight day of

gains. It's the longest streak since February the 6th. It's up 20 percent so far this week. And as for this late surge of buying, well, there's no

real reason for it. Other than maybe people are focusing on the letter that President Trump said to U.S. governors, saying that he hopes to open up

parts of the country bit by bit, he's going to break the country down into those that are most affected, least affected, moderately affected.

Anyway, that could be the reason. Otherwise, I think a lot of it's just to do with people have seen the rally. Don't want to get left behind, realize

the market was oversold, and want to get in. In other words, you and me. And that is QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New

York. Whatever you're up to in the hours ahead, I hope it is safe.

ANNOUNCER: This is CNN Breaking News.

JAKE TAPPER, CNN HOST: Welcome to THE LEAD. I'm Jake Tapper. Right now, the Dow is about to close up, as jobless claims soar to a record high 3.3

million Americans filing for unemployment just this week. It's four times the previous record set in 1982. But as you can see, the stock is closing

up about 1300 points. The $2 trillion stimulus plan, no doubt --

END