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Quest Means Business

$2 Trillion Aid Out Of Congress, For Trump Signature; Boris Johnson Tests Positive For COVID-19; KLM To Cut Jobs, Run Vastly Reduced Flight Schedule; Boeing Grapples With Coronavirus Woes In Washington; Florida Bridal Shop making Masks For Medical Workers; Dow Posts Biggest Weekly Points Gains Ever. Aired 3-4p ET

Aired March 27, 2020 - 15:00   ET

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

[15:00:21]

RICHARD QUEST, CNN ANCHOR: The three-day winning streak appears over. There are signs of progress on Capitol Hill, and the market is down, and

these are the reasons why or at least into the soup that is going on at the moment.

Aye says the House, a $2 trillion stimulus plan now heading to the President's desk.

Meanwhile, Donald Trump lashes out at car companies on Twitter.

And all divisions diehard. Europe is split over launching coronabonds.

We are live in New York, the end of a busy week all around for everybody. It is Friday. March 27th. I am Richard Quest, and yes, I mean business.

A very good evening to you. This evening, the largest savior and stimulus package the world has seen is now out of the U.S. Congress and it is on its

way to the desk of President Trump.

This was the scene 90 minutes ago as the House passed the massive $2 trillion aid package, despite an attempt from one Republican, one last

minute attempt to block it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The question is on adoption of the motion, those in favor say aye.

AUDIENCE: Aye.

UNIDENTIFIED MALE: Those opposed say no.

UNIDENTIFIED MALE: No.

UNIDENTIFIED MALE: The ayes have it.

(END VIDEO CLIP)

QUEST: The ayes have it, an initial bailout for both American businesses and individuals and experts agree more will be needed.

The milestone that is grim, the U.S. has now surpassed China with the most coronavirus cases, a signal that the worst is likely yet to come.

And Wall Street is lower at the end of what have been a good week for the markets. The Dow is out of a bear market just for the moment. The broader

markets are still down more than 20 percent for the year.

And the best week for the Dow since 1938, this is despite today's losses. Julia Chatterley is with me. So I suppose having risen 20 percent, you

can't blame the Dow if it takes a breather.

JULIA CHATTERLEY, CNN ANCHOR, "FIRST MOVE": Just read that sentence again for me. What did you say? You said it's been the best week since 1938,

despite today's declines.

QUEST: Forgive me, I'm not hearing -- I'm not hearing you. Hang on a second, Julia. So somebody needs to push a button so that I can hear what

you're saying. Let's try that again. Are you with me, Julia?

CHATTERLEY: Can you hear me?

QUEST: No, I can see your lips moving. But I can't hear you. We will -- we'll come back to you in just a second when that anomaly has been --

because I need to challenge you on the various items that are there.

Now, the virus has hobbled the global economy right now and it's impossible to say how long that will last. John Hopkins says there are more than

576,000 global cases and more than 26,000 deaths.

The U.S. now as the most cases in the world. Doctors and nurses and state leaders say they desperately need medical supplies and protective

equipment.

China's government is closing the borders to foreigners, effectively sealing off the country to stave off outbreak and the British Prime

Minister Boris Johnson has tested positive for the virus. Here's what he said.

(BEGIN VIDEO CLIP)

BORIS JOHNSON, BRITISH PRIME MINISTER: I've developed mild symptoms of the coronavirus. That's to say, a temperature and a persistent cough.

I am working from home. I'm self-isolating and that's entirely the right thing to do.

(END VIDEO CLIP)

QUEST: Bianca Nobilo is with me from London. How realistic is this? I mean, we're very glad that he's not more seriously unwell. But how

realistic is it for the Prime Minister to continue to lead the government?

BIANCA NOBILO, CNN CORRESPONDENT: Well, Richard, a lot of the government's activities had moved to video conferencing and calls because of the self-

isolating and wanting to set an example to the public at large.

And it's not just Boris Johnson. It's also his Health Secretary, Matt Hancock who just a few hours after Boris Johnson made his announcement said

that he was experiencing mild symptoms and had tested positive for coronavirus.

Then we heard that Britain's Chief Medical Officer Professor Chris Whitty was experiencing symptoms that he thought suggested he had coronavirus,

too. So those are the three individuals really at the helm of this country's strategy on combating the virus.

Boris Johnson says that he's determined to continue doing his job as it is. I know that people inside Downing Street are hurrying over to his office,

leaving food, leaving documents, knocking at the door and then running off again. That's how things are being done.

[15:05:04]

NOBILO: And he is conference calling with his Cabinet. We also know that if Boris Johnson, for some reason couldn't continue in his role, and this

is the early -- the early stage of him having this virus -- that Dominic Raab, the Foreign Secretary and first Secretary of State would be, as it

stands, the person to take over in that instance.

QUEST: We know that he is doing okay, and that there is a line of succession in place. But I heard the press conference and there was a very

good question asked to Michael Gove, the Cabinet Minister, basically this, since the Prime Minister, the Chief Medical Officer and the Health

Secretary all have got it, doesn't it beg the question that they were either foolish in their social distancing or were -- they were either

foolish or negligent?

NOBILO: It was a very powerful question, especially as Boris Johnson was seen as early as last night. He went out into the steps of Downing Street,

a few meters away from the Chancellor, Rishi Sunak who himself is not self- isolating at the moment in order to clap for the NHS, the British Health Service which every country is appreciating their health service at the

moment.

But in Britain, the NHS is a national symbol and a national treasure as well. He said that he wanted to partake in that. So he was outside Downing

Street clapping despite knowing that he had symptoms of this just before he was tested.

It does beg many questions. Of course, world leaders and leaders such as Prince Charles as well have many public engagements, they are a lot more

exposed even than the average person.

But people are asking the question is why he didn't take his own advice. Boris Johnson was scolded by the Medical Community for proudly stating that

he was still shaking hands just a number of weeks ago.

It is a critical situation for government to be in, to have three of the most significant individuals who are looking after this being positive for

the virus, most likely.

So we'll just have to -- we'll have to see how that pans out, Richard. But it's also important to note that in the U.K., constitutionally speaking,

the Cabinet makes policy. It is not just the Prime Minister, so that will continue as usual.

QUEST: Bianca, finally, the way in which this, the numbers -- listening to the press conference, the number of people doubling in the United Kingdom,

and we're starting to get reports of people who have passed away because there wasn't a ventilator, or there wasn't the facilities and the UK is not

believed to be at the apex yet, is it?

NOBILO: No, it isn't. We don't know quite how far off the peak Britain is. Obviously, every country is trying to flatten that peak. In the press

conference today, Michael Gove announced that it seemed that the infection rate in the United Kingdom was doubling every three to four days and the

Deputy Chief Medical Officer, Jenny Harries said that Britain won't expect to see any kind of positive movement in the figures, any kind of mitigation

of the death rate for at least a couple of weeks because that's when the measures that the country is taking will start to have an effect.

In the meantime, you referenced the capacity. I've been speaking to members of the NHS deeply concerned about their own protective equipment, about the

access to ventilators. Many hospitals that I've been speaking to not just in London, but outside already at capacity and we know new hospitals are

being built such as the NHS Nightingale at the Excel Center, which will have the capacity for 4,000 beds and now two other locations have been

confirmed scouted out by the Army also build hospitals there as well to try and create that capacity so sorely needed right now.

QUEST: Bianca, thank you. Have a good weekend. Bianca Nobilo who is in London. Julia should be back with me and hopefully with a bit of hope. A

couple of pens in the meter and a following. Julia, can I hear you?

CHATTERLEY: That was a lot of hopes. Can you hear me?

QUEST: I can. All right. I don't know which was better. You couldn't hear my question or I couldn't hear you either. So look, Julia, the day and the

way it has gone, not surprising that the Dow has decided just to take a bit of a breather.

CHATTERLEY: It really isn't. Actually what I did was ask you to repeat the sentence that you'd read into me, which was this was the best week since

1938, having the worst and fastest downdraft in stocks on record.

These markets remain unhealthy in my mind, Richard and I'll say that again and again. These volatility swings. The measurements, the fear gauge in

equities, what we call the VIX Volatility Index, still soaring.

There's all sorts of other things going on in in other areas. The mortgage market once again being talked about today as being under extreme duress

because certain parts of that market, people who have got mortgages have been given 90 days and told that they don't have to make their payments.

There's all sorts of things going. It is a case of that movie, "What Lies Beneath" here, Richard, as well as on the surface. I remain cautious.

QUEST: Right, listen, you're the former trader. You're the one who knows, you know when your gut tells you that there's something --

CHATTERLEY: Yes, it is that.

[15:10:07]

QUEST: That there's something smelly and -- you know in the drains, then you're the one who we listen to on this.

But on this mortgage point because credit spreads are tightening and things are getting more difficult. Things are getting a lot more difficult. Where

do you fear that the danger is?

CHATTERLEY: I think that in the end, the Federal Reserve will sort these things. They will underpin whichever market is required. We know they now

have this mandate that allows them to take action wherever, but when you make a blanket announcement that certain parts of the market and I don't

want to get too technical about this.

But there's Fannie and Freddie mortgage originations and those have been given relief. People don't have to pay those mortgages back. It has a

ripple effect, a butterfly effect in the market and there's bonds in parts of the market that suddenly start to trade at less than the value they

should be worth.

So I think in the end, we'll get through this, but bring it back to the health crisis, bring it back to the things that we don't know here and the

uncertainty. It's all these things combined.

QUEST: And it is back to the health crisis. The economics will follow the health crisis, not the other way around. Julia, have a lovely weekend. Get

some rest, if you can, and we will rejoin battle on Monday.

But Julia was talking there about the health crisis leading the way and President Trump wants to ease U.S. social distancing guidelines by rating

each county according to the level of risk.

The goal is to have the entire country reopened by Easter which is April the 12th. Some members of his Taskforce have called that date,

aspirational.

Speaking on CNN's Coronavirus Town Hall, Microsoft cofounder Bill Gates as an extended locked down nation nationwide is the answer.

(BEGIN VIDEO CLIP)

BILL GATES, MICROSOFT COFOUNDER AND PHILANTHROPIST: We are entering to a tough period that if we do it right, we'll only have to do it once for six

to 10 weeks. But we have to do it, it has to be the whole country. We have to raise the level of testing and the prioritization of that testing quite

dramatically.

(END VIDEO CLIP)

QUEST: For every month that there is a lockdown and shutdown, the OECD estimates that major economies will shave roughly two percent of their

annual GDP growth.

The Secretary General Angel Gurria, frequently on this program, says that high costs will save money in the long run, and the first priority of

course, is saving lives.

James Sweeney is with me, the Chief Economist at Credit Suisse. He joins me now. We are obviously in a recession in one form or another. Do you agree

that closing the whole thing down, even losing two percent of GDP is better than an early opening with all its risks?

JAMES SWEENEY, CHIEF ECONOMIST, CREDIT SUISSE (via phone): I think that you have to accept some tradeoff between shutting the economy down and

stopping this virus. I think it's much more important to stop the virus than to disrupt the economy.

And I think what you're seeing from fiscal and monetary policy is really the use of war finance, or time policy measures in order to make sure the

payments that people have can be made to the extent possible, and people get a little bit surprised that you can do this, but you can do this.

So use that machinery which exists and focus on the healthcare crisis.

QUEST: The risk of course, is of something unknown. You may have heard me talking to Julia there, something in a credit market on an obscure bond

market, some form of credit default swaps. Are you hearing of spreads, becoming dangerously unwound?

SWEENEY: There has been a significant improvement. I mean, the vast array of monetary policy measures that have been done have been really helpful.

I mean, most people when they think about Central Banks, they think about interest rate changes. But the most important tool of the Central Bank is

the ability to lend against assets, or to buy assets in a crisis.

And one thing that's really important that most people don't really understand is that they have a list. They have a list of what collateral

they'll accept, in exchange for money that they print, or money that they lend out.

And what happens in a crisis is they broaden that list of what they'll accept and now you have investment grade bonds and asset backed securities

and commercial paper. They've really expanded that list and that's very helpful. That backstops those markets. It doesn't solve every problem but

it does help.

QUEST: So James, as we go into the weekend with markets see-sawing, what for you, rather than looking back at what the banks -- the Central Banks

have done what for you is the next stage forward in the economic management of this crisis?

[15:15:08]

SWEENEY: Well, I think you have to look at, you know, what is the doubling time of the virus? And how many places do you have exponential growth

continuing? In terms of policy measures, you know, I think when you're doing unlimited quantitative easing, that's really the same as yield curve

control when you're setting interest rates.

It's just, a yield curve control without an interest rate, it is out of target, but you're saying, look, we can buy as much as we want and we have

the firepower to buy as much as we want.

So going from unlimited QE to yield curve control is sort of the next monetary policy step and then on the fiscal side, and while you just got an

enormous bill, I think if you had to have this shutdown last more than another, say, six weeks, then maybe you'd have to do another bill.

Because again, it's about getting some money into the hands of funds and households so that they can pay their bills and survive.

QUEST: James, have a good weekend. Let's talk to you next week if we may, sir, to keep on top of and getting your perspective as this is developing.

Now Europe is facing a new crisis, and all divisions are remaining over Coronabonds. Spain and Italy are warning of a shock without precedent if

they don't find a plan soon.

And runways around the world full of parked planes. The Chief Executive of KLM joins me in just a moment hopefully.

(COMMERCIAL BREAK)

QUEST: In Europe, Italy has now recorded its highest daily jump in coronavirus deaths. Health officials say the country has not yet even

reached the peak. Cases in Spain now tops 60,000 with almost 5,000 people who have died.

At the same time the E.U. is arguing over how to respond and the divisions -- the old divisions are on full display. According to sources, Spain and

Italy blocked a final statement after marathon meetings, arguing it was vague and lacked concrete measures.

Now they joined seven other countries who are calling for Coronabonds. This is a pooled debt securitization from across the E.U.

It's a name with -- it's a new name, we know Germany, Austria, Finland and the Netherlands are opposed to this joint financing through a single bond -

- Euro bonds, if you'd like to call it that.

[15:20:06]

QUEST: Fred Pleitgen is in Berlin. We met this before during the sovereign debt crisis, where they wanted to issue a common bond backed by the

governments of all. The northern countries said it was equivalent to giving the southern countries a blank check, what happened this time?

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, I think the northern countries, Richard are essentially saying exactly the same

thing. They say they don't believe that they need any new instruments to try and tackle all of this.

They say that some of the existing instruments have been used, for instance, in the sovereign debt crisis are something that can be used

again. It was quite interesting because this week, I had the chance to speak to Germany's Finance Minister and then just yesterday actually

listened in to Angela Merkel's press conference that she held by telephone from home, and both of those top German politicians, one of course, the

head of government said they believe at this point in time, these instruments or any sort of new instruments are not necessary.

They want these countries to use the European Stability Mechanism. That was one of the things, Richard, that really kicked off that fight that went on

during the E.U. heads of state and head of government conference call/video call.

Because, Italian Giuseppe Conte in particular was saying, look, the European Stability Mechanism was an imperfect instrument for the sovereign

debt crisis. It certainly isn't going to help us solve this crisis right now. He is calling for more solidarity and fast solidarity -- Richard.

QUEST: It's extraordinary, isn't it? Yet, Merkel says, whatever it takes, I'll pay with it, and in the interview with you, the Fin Min said, whatever

it takes, but they still bull -- they are prepared to break the virginity of the deficit, and actually, you know, the scales will fall from their

eyes, and they'll spend money but they won't go for European -- the mutualization of European debt, a posh way of saying Eurobonds.

PLEITGEN: Yes, and that's one of the things that actually the head of the European Commission, Ursula von der Leyen who is German and who, you know,

Richard is an ally of Angela Merkel. She was criticizing some of these countries that she says are not doing enough in this situation to help all

other countries.

She said a lot of countries had a me-first approach, and that doesn't necessarily only account, for instance, to the financial response that

we're seeing now, for this, in the case of Eurobonds, where of course now, they all have to find a new way to try and make this work.

But if you generally look at the response to this crisis, so far, what you're seeing right now, for instance, in Italy, is a severe shortage there

in the medical system, whereas in Germany, you have less shortages, and you have some capacity still there.

But at the same time, the pictures that you're seeing is, for instance, help coming from Russia, help coming from China, help coming from Cuba, and

just now the other European countries who many believe should have stepped in a lot earlier, now starting to do so with the Germans taking, for

instance, some patients from France and from Italy as well.

It's something that the European Commission has been criticizing not just the financial response, but that is certainly is going to be the much

bigger issue at the end of the day, Richard because as you know, the health crisis in all of it is something that all these nations believe they can

overcome.

But the economic crisis, the financial crisis that is sure to come afterwards, that's something where they're sort of trying to set the stage

right now, and that's really going to be a test for how much European solidarity there is going to be and how they're going to move forward --

Richard.

QUEST: You and I need to talk about that next week, whether or not a beggar thy neighbor policy is well and truly underway within the E.U. I

think it is. We'll talk about it next week.

The cost of saving the global economy has already soared to staggering levels. The numbers are expected to climb even further.

Governments and Central Banks, $7 trillion so far. $2 trillion from the U.S. government in its rescue package. $850 billion from the European

Central Bank and individual stimulus packages, costly ones from the likes of China, the global figure will go even higher.

Andrey Kostin is the President and Chairman of Russia's VTB Bank. It is always good to have you, sir. Always good to have you to talk these things

through.

First of all, before we get to the meat and veg of economics, are you well? Are you weathering this crisis okay?

ANDREY KOSTIN, PRESIDENT AND CHAIRMAN, RUSSIA'S VTB BANK: Yes, Richard. Thank you very much. Look at me, I'm well protected, you know? No problem.

QUEST: Good. Right. So, Russia.

KOSTIN: Nice to hear from you. Nice to hear from you. I hope you're all right. Yes.

QUEST: I am. Thank you. Let's talk about Russia.

KOSTIN: Yes.

QUEST: Is Russia fooling itself? Is the government being fully honest, do you think, about what's likely to happen in Russia?

KOSTIN: We believe -- I believe so. At the moment, we have slightly more than 1,000 cases. Russian authorities had probably a more liberal approach

to the problem as European countries for example.

But today, I think Russian government is learning from the experience of Europe and America and China, started to introduce much more strict

measures.

For example, the Russian President announced that starting from Monday next week, most of the Russian industries will be on a one week paid leave. This

is some kind of a soft quarantine, I would say.

So everything will be closed. Everything will be closed. Theaters, restaurants, stadiums, and people will stay home being paid for one week.

[15:25:12]

KOSTIN: I think that's a big step forward to the isolation.

QUEST: On the economic front. The oil price is falling, some say it will go as low as $10.00 a barrel. This row, this argument between Russia and

Saudi over oil. What do you make of it? It seems highly inappropriate to be battling over oil at a time of crisis like this.

KOSTIN: Richard, personally, I think that it isn't very much better nowadays because the domestic demand on oil because of the virus is much

more damaging than the collapse of agreement between Russia and OPEC cartel.

And I think we might expect, the present situation, any price for oil between zero and 25, probably for the next month or so.

So I believe that, in this case, that doesn't very much matter, but my personal opinion, really the United States, Russia and Saudi should find a

way how to cooperate on this.

Frankly speaking, I can assure you on behalf of the Russian people, Russians don't want to inflict any damage to the American economy, to the

American people.

I think that if there's an opportunity, we should sit together and discuss this issue, but basically, that is not the main reason for what we have in

the economy today.

The basic problem is of course, the virus. We don't know how to cope with it, how long will it last? And these kind of things.

QUEST: Andrey, promise me, we can talk to you again, when -- as these measures take effect so we can get a better idea of what's happening in

Russia. It's good to see you, sir. Thank you.

KOSTIN: Okay. Thank you, Richard.

QUEST: Thank you. Now the skies is wrenching across Europe and the United States, the Chief Executive of KLM will be with me live from Schiphol

Airport in just a moment.

(COMMERCIAL BREAK)

[15:30:00]

QUEST: Hello, I'm Richard Quest. There's a lot more cosmic business in just a moment. KLM is catching nearly all of its flight starting this weekend.

KLM's chief executive, Pieter Elbers, is with me in one moment.

And "Voices of the crisis." You're going to hear from the bridal shop owner, who's now in the business of making masks.

This is CNN. And on this network, the facts always come first.

Spain is now reporting more than 64,000 coronavirus cases and nearly 5,000 deaths. The rise in deaths is up 769 on Friday, set a new record for the

country. Spain's health officials say the output there appears to have stabilized.

France is using one of the world's most beloved landmarks to pay tribute to health care workers on the frontlines. The Eiffel Tower lit a short time

ago with messages of Merci, thanks, thank you. The show also reminds the rest of the population to stay at home.

France's extended lock -- nation lockdown has now been going for two more weeks.

As you see on old tank and now to John floating holiday ship. The U.S. Navy ship, Mercy, has arrived in Los Angeles to help ease the burden on

overwhelmed hospitals. Medical patients who have illnesses other than coronavirus will be taken there for treatment.

Starting this weekend, KLM will cut almost all of its flights. The new summer schedule will be just 10 percent of what it normally runs. It's in

flight service will minimize physical contact between passengers and crew. And it also plans to cut up to 2,000 jobs.

Now, Boeing 747s are being removed from the fleet early. However 777s and 78s in future fly on the Intercontinental routes. As for currently, well,

there you have it, the planes are parked at Schiphol.

The chief executive of KLM is Pieter Elbers. He joins me now from Schiphol Airport. Good to see you. So this new schedule, you decided to keep some

flights. I'm curious as to the thinking when other airlines like Austria, or like Brussels decided to ground the fleet for the crisis.

PIETER ELBERS, CHIEF EXECUTIVE OFFICER, KLM: Well, we wanted to keep some service, in fact, in operation in order to do things to repatriate still a

lot of people who are outside Europe, bring them back home, bring them back here to Europe or elsewise, bring people from here, back to their

countries, and also move some cargo. We see there's a lot of need for medical supplies. So we really like to keep some operation for those cargo

movements.

QUEST: We're running out of adjectives to describe the situation for the world's airlines. How badly hit financially is KLM, Air France KLM going to

be?

ELBERS: Well, last year, we celebrated hundred years. And I would -- I would tend to say that this is the worst crisis in our history in terms of

impact. And we have never seen something on such a global scale, with so much uncertainty going forward.

QUEST: What do you want from government, which, by the way, of course, has quite a good stake in your airline after last year? But what do you want

government to provide for you? Do you want loans? Do you want grants? Do you want bail? What is it?

ELBERS: Well, we're discussing various topics with our government here in the Netherlands, and my colleagues in France are doing the exact same.

The prime objective is some of the short term measures and we're quite pleased with the short term announcements which the government has done in

order to support some of the companies to continue to have their salaries being paid towards the employees in order to keep some operation running.

And that's very helpful for us in this very difficult times.

QUEST: You -- the group Air France KLM didn't go into this crisis in a particularly strong position. Many airlines did, and some didn't. I suppose

-- for both -- for both Air France and KLM, but particularly for KLM, you're too big to fail, aren't you? The government has no choice. It has to

see your survival.

ELBERS: Well, the impact of KLM on the Dutch economy is enormous. Indeed, we are the second largest private employer of the country. We're standing

here at an airport which is virtually empty, where last year 71 million passengers in the past.

The impact on the economy is enormous. And as such the economy of the Netherlands and the future of KLM are tightly connected, and that's

precisely where there's a lot of support from the government in order to help us to face this incredible heavy storm in our industry.

[15:35:13]

QUEST: What restrictions are you prepared to accept for help? For -- I mean, you know, there's always a symbolic one that the CEO will take no

pay, but executive pay, no more bailout -- sorry. No more dividends, no more share buybacks. All those sort of things are on the table. Are you

prepared to take those conditions?

ELBERS: Well, if taking no pay would solve the situation of the company, I would do it right away. I think the real issue is we're discussing with the

government today, what should be done on the short term, the conditions is something to be later to be discussed in what the exact shape and form that

has to take place.

Our prime concern now is to make sure that we bring as much as people back home who are stranded all over the world, and that we bring in the needed

medical supplies and goods from all over the world here in order to deal with this health situation.

QUEST: Let's talk about that because your alliance partners, the Chinese alliance partners have been flying masks to you, which is a reversal, of

course, from what you were doing when China was at the worst part, isn't it?

ELBERS: Yes. Well, we -- about two months ago, we helped the Chinese with providing masks and indeed we received the same one in return. And

obviously, we are very grateful with the help and the supplies we got from our friends in China. The Chinese carrier still had the operations into

Amsterdam so they shipped it in and it was really much needed for our hospitals here, but also for our crews.

And I'm tremendously proud on our crews who are still making the flights and try to do it in the best possible ways in order to bring back people

home.

QUEST: I'm glad you led me to your crews. Have a listen. I'm sure you heard it a million times, but we're playing it again anyway, of one of your

purses on a recent flight. She said goodbye to the passengers. Have a listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Nowadays music brings us together and that's why I will sing a song to you to say goodbye. I wish you all the best and love

and stay healthy from us. KLM crew. So this is for you.

When will I see you again? When will we share precious moments? Will I have to wait forever? Will I have to suffer and cry...

(END VIDEO CLIP)

QUEST: Well, Pieter, I bet that's not in the list of announcements they're supposed to make. What did you feel when you heard that story? That's

really pretty something, isn't it?

(END VIDEO CLIP)

ELBERS: Yes. Well, it's definitely not in our -- in our standard rulebook. But that's precisely where I'm so proud of our crews. They just do what

they feel is the right thing to do. And singing this song, you cannot put it in any instruction, it was just done by one of the colleagues who felt

like doing it.

And, yes, it touched me also, when I saw it. It felt me -- it made me feel a little bit emotional too. And I think it shows our commitment to our --

to our customers, to our clients and the deep connection between our teams and the company. And that's why I'm confident we'll make it through. It's

going to be tough, but we'll make a through.

QUEST: Pieter, we've known each other a long time. I wish you well, and what is an absolutely unprecedented time for the industry. Thank you, sir,

for taking time joining us today.

Now, Boeing says it doesn't want a bailout. The company says it doesn't want the government to take a stake. But that might be the price of saving

it or not. Well, let's talk about it after the break. It's "QUEST MEANS BUSINESS." Good day to you.

(COMMERCIAL BREAK)

[15:40:36]

QUEST: The U.S. Treasury Secretary, Steven Mnuchin, says that Boeing doesn't want a federal bailout. Now, the shares are down 59 -- 49 percent

this year and operations in Washington have been closed for two weeks.

CNN's Sara Sidner looks at how Boeing is battling the COVID crisis.

(BEGIN VIDEOTAPE)

SARA SIDNER, CNN INTERNATIONAL CORRESPONDENT (voice-over): Washington State is still reeling, 149 people dead, the second highest death toll in America

from the novel coronavirus.

GOV. JAY INSLEE (D-WA): We've got to pound it and we've got to pound it until it's done. And I'm glad that Washingtonians are pitching in into what

is really a warfare against a fatal disease in our state.

SIDNER: That war has meant a major hit to the state's economy -- empty downtown Seattle streets, and a more than 800 percent increase in

unemployment claims.

One of the state's biggest employers, Boeing, which for now is paying employees, has shut down for two weeks after a worker died from COVID- 19.

Boeing announced it was suspending work at its Washington facilities Monday, hours before the governor issued a stay-at-home order.

About half of Boeing's 138,000 employees work in Washington State, the first state to experience a deadly coronavirus outbreak. Economic relief

may be on the way.

UNIDENTIFIED MALE: On this vote, the ayes are 96.

SIDNER: The Senate passed a $2 trillion stimulus bill --

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Ninety-six to zero.

SIDNER: -- praised by the president, who pushed the House to pass it, too.

A sizeable chunk of that stimulus package, $70 billion, will go to the airline industry and airports. Boeing called for $60 billion for U.S.

aerospace companies that make planes. And Boeing, itself, could qualify for an additional $17 billion.

JULIA CHATTERLEY, CNN INTERNATIONAL ANCHOR: This is the definition of too big to fail.

SIDNER: But unlike when taxpayers got a stake in the automotive industry when it was bailed out by the Obama administration in 2009, Boeing's CEO

told Fox Business he does not want the government to own a stake in Boeing in exchange for taxpayer-funded stimulus money.

DAVE CALHOUN, CHIEF EXECUTIVE OFFICER, BOEING: Nobody has an interest in retaining government equity in their company. We want to pay everything

back -- everybody does. And to think that that's not our motive is sort of silly.

I don't have a need for an equity stake. If they force it, we just -- we just look at all the other options and we've got plenty of them.

SIDNER: The idea of a government bailout in the first place had one of its board members bail from her position. Former U.S. ambassador to the U.N.

Nikki Haley left the board in protest, saying "I cannot support a move to lean on the federal government for a stimulus or bailout that prioritizes

our company over others and relies on taxpayers to guarantee our financial position."

CALHOUN: Nikki has been a great member. When a philosophical argument encumbers your ability to help the board represent itself to the

government, it -- you have to make that decision. So that's what she did. And now, we're moving on.

SIDNER: Boeing has faced serious criticism long before COVID-19 closed it down. Its 737 MAX aircraft grounded after two of its passenger planes

crashed, killing all 364 people on board.

Nevertheless, Boeing may also get more of a bailout than other industries. It's a huge employer in the United States.

[15:45:07]

INSLEE: As far as the dollars for aerospace, you know, this is such an important industry in our state. We have to be pleased by any infusion that

can help employment increase and be stable in the future.

I believe that we rightfully as taxpayers, you know, ought to be able to require some of the beneficiaries to be mindful of fairness for their

employees and the rest of the country.

SIDNER: Sara Sidner, CNN.

(END VIDEOTAPE)

QUEST: Large companies, of course, are switching production to a wartime effort for COVID-19, and so are the small ones. The bridal shop owner who

was making masks instead of dresses. It's all -- that's after you have enjoyed the global energy challenge.

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[15:50:21]

QUEST: On this program, we're committed to bringing you the voices of the crisis. Those businesses, medium and small, that are making difficult

decisions in order to stay afloat. Normally, this would be the busiest time of the year for a bridal shop in Florida. Now, it's all its customers have

canceled their orders. And so the stores had to get creative.

It's making masks instead of dresses. And now it can't keep up with demand, Vicky Anglo is the owner of Anglo Couture. She joins me via Skype from

Clearwater in Florida. Good to see you, Vicky. Thank you.

When the government restrictions came in, and all those orders and deposits started to cancel, what does it feel like?

VICKY ANGLO, OWNER, ANGLO COUTURE: Well, there was a couple days of uncertainty along with everything else being uncertain. But, you know, I

was just trying to figure out what we're going to do and how I'm going to keep my people busy and my contractors and my seamstresses.

So I had a couple friends that are nurses, and they started calling me and they're asking me if we have fabric and if we can make covers for their

masks. And I was like, you know what? I could try, you know, the least I can do is I can help you have time on my hands. And so that's how it all

kind of started.

QUEST: So you're now making these covers for the masks. And I'm looking at the pictures now. And you're managing to keep many of the people who did

work for you, or at least some of them, you're managing to keep some of them come them going.

ANGLO: Yes, Richard. The demand is -- has been overwhelming. And it's like they don't have enough medical supplies. What we're doing is we're just

supplying them with a cover for their medical N95S masks, so that their masks can be reused and they don't get their actual medical mask soil.

It's not to -- like our covers are not to be used as protection. That's not what it is. So, yes, we were able to keep our seamstresses busy, and also

keep our contractors employed. And in addition, we have a lot of like, do it yourself, people that have reached out and they want to know us.

QUEST: Wow.

ANGLO: I'm thinking of bringing them on board just because there is such a big demand. I wouldn't even believe it myself, if I didn't hear from the

horse's mouth.

Quest: All right. Now, this is interesting because you're doing this and it's going to keep you going or at least gives you something to keep you

going. And all those weddings that have been postponed and all those dresses that you are going to make, well, please God, they'll come back in

the autumn or next spring and you'll be making them as well.

ANGLO: Yes, I definitely hope so. You know, people are very scared of continuing with their plans. So everything is at a halt in the bridal world

at the moment. But at least I feel good being able to, you know (INAUDIBLE) claim for our healthcare providers.

QUEST: Thank you very much. Have a lovely weekend. It's good to finish and hear a "Voice of the Crisis" on a positive note. We needed to hear that

tonight.

These are some of the things you've been sending each other. I'm going to look at some of the memes that have been doing the rounds. Look at this.

Parenting during the coronavirus shutdown, day one, Mary Poppins, day three, we get the message.

Others that you're sending each other. I think we got one more working from home on day one, already. And by day 14, that's a -- that's a favorite of

mine. As for the markets, I'll have a look and see how they're doing before we finish with a quick profitable moment.

[15:55:06]

The market has fallen quite sharply in the last 20 odd minutes or so. Yes, look at that, a very steep decline. I can't -- I mean, I could probably

conjure up one or two reasons why, but I think it's -- people don't want to be long into the weekend. And the stimulus package is priced in and all the

other things. But we are not going to let that get us down as we head into the weekend.

Tonight's profitable moment, I'll be hosting a special program this weekend, WFH, the new reality. Now, it is the new reality of how we're all

having to work from home. It's a Saturday at 1:00 at Eastern and across the globe at various different times.

Thank you for being with me this week. It has been a busy week in one way or another. But I'm very glad we've got each other to talk over business

and economics at this time every day. Richardquest.cnn.com if you want to get in touch.

And that's "QUEST MEANS BUSINESS" for tonight. I'm Richard quest in New York. Whatever you're up to over the weekend, I hope it's profitable and

please stay safe. See you on Monday.

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