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Quest Means Business
United States Adds A Record Number Of New Jobs, But New Lockdowns Are Threatening To Stop The Recovery; Atlantic City Casinos Open Ahead Of July 4th Weekend; Ghislaine Maxwell Has Been Arrested; At Least 162 Killed In Myanmar Mine Landslide; U.K. Court Blocks Venezuela's Madrid From Accessing $1B In Gold; Andrew Yang Calls For Monthly Payments To U.S. Households. Aired 3-4p ET
Aired July 02, 2020 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:00]
RICHARD QUEST, CNN HOST: Look at the morning and look at the markets, I am Richard Quest. Stocks have been up all day long, a good session. They gave
a lack a bit at lunchtime and then roared back. We are now more than one percent.
These are the markets, and the reasons why.
United States adds a record number of new jobs, but however, lockdowns and new lockdowns are threatening to stop the recovery.
Tesla shares are moving higher. The company is worth more than Disney or Coke.
And as Congress approved more stimulus, I will be speaking with the former presidential candidate, Andrew Yang.
We are live in New York. It is Thursday. It's July the 2nd. I'm Richard Quest. And yes, I mean business.
Good evening. There are numbers to celebrate. And there are worries about what comes next, and the two are related to the same thing.
Wall Street, though is preferring to look on the good side, arguably, they are looking at what has been gained in terms of new jobs, 4.8 million jobs
were added in June, a monthly record. But more importantly, now obviously, the losses were monthly records. More importantly, it was more than a
million better than expected.
Unemployment dropped down nearly two percent, down to 11 percent. Donald Trump says it proves the economy is roaring back. Yes and no. It is
certainly coming back strongly, but 50 million jobs have still gone since the pandemic hit.
The job gains come as a grim new milestone is noted, 50,000 new U.S. cases on Wednesday. Now, if you compare that -- if you compare the current U.S.
position with Germany, China, and Italy, the world's largest economies, absolutely going in the wrong direction and that's threatening the global
recovery.
Julia is with me. Julia Chatterley from "First Move." Julia, we need to put this in terms, if you like, of, on the one hand, there are the new jobs and
we will talk about that. On the secondhand, whether any further creation of jobs will be slowed down by new lockdowns. How do you balance the two?
JULIA CHATTERLEY, CNN ANCHOR, "FIRST MOVE": It is such a great question, Richard. The price of this great month of job gains is exactly what you are
saying, spiking cases all around the country. And remember this snapshot of the economy represented what America looked like on June 12th.
So if we go back to that cases chart and you mark on June 12th, it is right before we saw those cases spike, too, and reopenings were paused around the
country. It is just not an accurate reflection, Richard of where we are.
There are other things though, if I add back in the number of people that are saying, hey, I would like a job here, but I can't find one, the people
that are still misclassifying themselves as just out of the work force rather than unemployed. The unemployment rate is more like 16.5 percent. We
are seeing white people in America gain jobs at a far quicker rate than black people, and we know all of the racial tensions that we have seen over
the past weeks, too.
And we had more than 2.3 million people in the past week alone collectively asking for first-time benefits, including gig economy workers and the like.
So, the headline number here, Richard looks very strong. It masks the underlying fragilities and the situation here for job creation just got
that more complicated by the burgeoning virus around the country.
QUEST: But let's have a moment of glass half full.
CHATTERLEY: Of course.
QUEST: If we may. Looking at the way in which the job growth came back, more than 1.8 million more jobs than were expected, and if I've got it here
somewhere, the piece of paper, from -- here it is JPMorgan, from JPMorgan Research, it says bullseye, is the way it is described it. It says, the
speed of improvement of May and June has been impressive.
I am not taking away the problems. But I am asking you to focus on the impressive side of it.
CHATTERLEY: And I couldn't agree more. Everything good about this is captured. You know, the predictions on this number were between one million
and seven million. So, let's not take away from this number. Regaining 4.8 million jobs in the month of June is fantastic.
Regaining earlier remember on the month before as well, some 2.5 million jobs, also fantastic. And I do not want to detract away from that positive
headline number.
But there is still so much work to be done, Richard. And again, I go back to the point I began with. The price of this accelerated job creation and
not reopening safely is 50,000 cases of COVID in the United States at this moment. There is price to be paid here, Richard, and we are paying it.
QUEST: So briefly -- hang on. Briefly, Julia, one would imagine, then, next month the job creation's side of the equation will be much lower,
obviously, and we might even go the other way if you bear in mind that some of the places may re-furlough people.
[15:05:27]
CHATTERLEY: I've had two analysts. Richard today tell me that next month's jobs could be negative. Remember, it's what falls out in the wash, millions
of jobs get created and millions of jobs get lost and the net result is this figure that we see.
The other thing is around half of these jobs were added in hospitality and retail. Those most vulnerable to suspended reopenings or lockdowns if
that's what it takes to control the virus.
QUEST: Julia, good to see you. Thank you. We will talk more. Probably tomorrow. Thank you.
Well, it's July 4th, so maybe not. Employment is a lagging indicator, and a lot has changed since the dark days of April and May. The huge case spike
after Memorial Day, Goldman-Sachs now says half of Americans are under some form of restriction.
To be sure, it is down, but it is still rising. Twenty-three states are rolling back reopening plans and fears of July the 4th, creating a perfect
storm.
Alan Blinder is with me, the former Fed Vice Chair. He joins me from Princeton in New Jersey. Good to see you, Alan. Thank you. I appreciate it.
ALAN BLINDER, FORMER U.S. FEDERAL RESERVE VICE CHAIRMAN: Thank you.
QUEST: So when you look at this current very nuanced and difficult situation, where do you think the help comes from? Has the Fed got more it
can do? Bearing in mind it has only just introduced some of its more recent and newer policies.
BLINDER: The Fed has a little bit more it can do in terms of what you are talking about today, jobs and employment. It has a lot more it could do
should it need to it keep the financial system whole. The Fed has almost unlimited power to do -- well, almost unlimited power to do that, and a
real calamity, I suppose, it wouldn't be able to withstand it.
But the problems here are not mainly from the financial system. This is the opposite of 2008 when the financial system dragged everything down. In this
case, everything is dragging the financial system down. The Fed has prevented most of that damage, potential damage, to the financial system.
But it can't do anything about -- Julia mentioned, 50,000 new infections a day. She was exactly right. What she failed to mention is that that's not a
static number. That currently is going up. It is not going to be 50,000 tomorrow. We have not got control of this pandemic, and the Fed can't do
anything about that.
QUEST: And so, if you take today's numbers, the employment numbers that we got, that better than expected number of new jobs coupled with the 50,000
new cases and more restrictions on lockdowns -- I mean, I always hate to have the glass half empty, but it does suggest those two opposite pieces of
data -- it does suggest that the forward-looking nature of the economy is not going to be that rosy.
BLINDER: I think that's right. I mean, I'm worried -- I have been worried - - I have been saying from the get-go that the big danger here on the economic side, never mind deaths and things which is really the big danger,
was that there would be a second wave of the pandemic and the consequence of that, a double dip recession.
Now, we are not there yet by any means with this kind of a jobs report. But the danger is more than lurking. The danger of that is kind of staring us
in the face. You probably heard Dr. Anthony Fauci, I think it was just yesterday say we may be going to 100,000 case as day, and that may be
happening. And if that happens, these job numbers will start crumbling and going in the other direction, unfortunately.
QUEST: So, if you are crafting some -- I mean, I suppose you wouldn't be just crafting a stimulus package. If we get to that scenario, you are
actually crafting a full throttle rescue package again. Whether it is helicopter money or whatever, but when it comes time to craft that stimulus
package, where do you do it?
I mean, there are so many perspective options. What do you favor as the best form of stimulus to get an economy back on its feet?
[15:10:00]
BLINDER: Well, the good news is that the Feds' best form of stimulus once we start growing in a durable way again has already been put into place --
super low interest rates. They will then focus next -- they have more or less said this -- on forward guidance to keep the yield curve low and flat.
They know how to do that. They will do that.
To a great extent, they have already done that and we need to just get back to a position where people are willing to look at interest rates on car
loans and mortgages and so on, and that affects their spending. Some of that is happening already. More of that will happen.
On the fiscal side, we need to continue transfer payments. As you know, the very large unemployment benefits are scheduled to end at the ends of this
month. We can't let that happen.
I think we should change the form, but we can't let the amount crumble. And then once the economy has really got ahead of steam, conventional fiscal
policies like tax cuts -- and by the way, I would aim them at the low income and not the high income end -- can be efficacious.
Right now, it doesn't matter much if you cut people's income taxes. But later on, it will.
QUEST: Alan, in a number, on a chart, where are you in terms of the worry moment between zero being not worried, happy go lucky, off we go; ten, I'm
really worried, we are going over a cliff. Where are you on the scale at the moment?
BLINDER: I am probably around seven, and as I said, it's not because the Fed is not doing its job. It's not because the Treasury is not doing its
job. It's because the U.S. government is not doing its job with pandemic control.
QUEST: Good to see you. We will talk more as the summer goes on and we will get more reaction and thoughts and see how that needle moves on the
barometer. Thank you. Alan Blinder there.
Now, the new job numbers led to a rally in the markets. The markets chose to focus on, if you like, the positive it often does, arguably the rates
will stay down for a very long time.
They opened higher. The coronavirus jitters is what took the edge off it. This is the last day of trading before a holiday weekend. There will be
solid gains all around.
Millions of Americans though are still out of work. Some are of course, of those other workers are undocumented and they have their own unique
problems. All are struggling with food insecurity for the first time. Can you imagine? It's literally a case of where is my next meal coming from as
Vanessa Yurkevich reports from New York.
(BEGIN VIDEOTAPE)
MOHAMMAD RAZVI, CEO, COUNCIL OF PEOPLES ORGANIZATION: Well, of course, you've got milk. This is beautiful.
(END VIDEO CLIP)
VANESSA YURKEVICH, CNN BUSINESS AND POLITICS REPORTER (voice-over): It's not even 8:00 a.m., and Mohammad Razvi is in a frenzy.
(BEGIN VIDEO CLIP)
RAZVI: That's good, that's good. Right under, put it right under.
(END VIDEO CLIP)
YURKEVICH (voice-over): He is coordinating 400,000 pounds of food this week alone ...
(BEGIN VIDEO CLIP)
RAZVI: This is exactly what we're doing, right?
(END VIDEO CLIP)
YURKEVICH (voice-over): ... for hungry New Yorkers.
(BEGIN VIDEO CLIP)
RAZVI: We were previously servicing about 200 people a week. At the moment, we're servicing almost 15,000 people.
Look at the shopping carts.
(END VIDEO CLIP)
YURKEVICH (voice-over): Razvi estimates the majority of people in this line for food in Brooklyn are unemployed. Americans out of work are turning to
food pantries in record numbers.
In response, his group, Council of the Peoples Organization, turned its daycare centers and senior center into warehouses for food.
(BEGIN VIDEO CLIP)
YURKEVICH (on camera): The need is growing?
RAZVI: It's growing. What's happening is many people did not receive their unemployment checks, many people are not eligible. So they're the ones who
are actually really struggling.
(END VIDEO CLIP)
YURKEVICH (voice-over): The struggle is greatest in low-income communities, where minorities are unemployed in higher numbers. Eighty-four-year-old
Esme Roberts is getting her weekly delivery from COPO. She wouldn't be able to afford food otherwise. That's because her son was laid off, but he's
undocumented and ineligible for unemployment.
(BEGIN VIDEO CLIP)
ESME ROBERTS, RELIES ON MEAL DELIVERY: He used to pay all the light bills, and the gas bill and TV. That's why I have to take off the cable and all of
that, he was paying for all of that.
(END VIDEO CLIP)
YURKEVICH (voice-over): The estimated 7.6 million undocumented workers in the U.S., many who are out of a job, have no access to government
assistance. That has a ripple effect on the entire U.S. economy.
(BEGIN VIDEO CLIP)
HEIDI SHIERHOLZ, SENIOR ECONOMIST, ECONOMIC POLICY INSTITUTE: You have those folks not being able to spend. And the money that they are no longer
spending because they don't have it in terms of income, means other people lose their jobs and we have that vicious cycle.
(END VIDEO CLIP)
YURKEVICH (voice-over): Razvi sees that cycle playing out firsthand. The lines of the unemployed waiting for food here are only getting longer.
(BEGIN VIDEO CLIP)
YURKEVICH (on camera): Do you think that number is going to go down or up?
RAZVI: I'm hoping it goes down, but it doesn't look like it at the moment.
(END VIDEO CLIP)
YURKEVICH (voice over): Vanessa Yurkevich, CNN, Brooklyn, New York.
(END VIDEOTAPE)
[15:15:11]
QUEST: President Trump praises the U.S. job growth whilst conveniently perhaps ignoring the rate of infections that are ever expanding. We will
discuss that in a moment.
(COMMERCIAL BREAK)
QUEST: Fifty thousand new cases, a record, for the first time in the United States. Remember that chart I showed you early on in the program? Everybody
else is sharply lower. The U.S. is sharply higher. Record levels in some states. And the President says the virus is under control.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES: The crisis is being handled. Some areas that were very hard hit are now doing very well. Some
were doing very well and we thought they may be gone and they flare up, and we are putting out the fires.
(END VIDEO CLIP)
QUEST: Elizabeth Cohen is our senior medical correspondent. Elizabeth, I've got to play devil's advocate here with you if I may. The President says
those areas that were doing very well are now in difficulties. But it's manageable and it's under control. Is it?
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Oh, that's not the words that I hear from people who have looked at this and studied this. I was
speaking with an epidemiologist who has looked at these numbers and he said, this is a wildfire.
He said a house fire, you can get out and you can get in control of that, you can send a fire truck. You can put out a house fire. But he said, this
is a forest fire. How do you put out a forest fire?
These numbers are growing and growing and growing. I don't know why the President thinks that this is just something we can kind of just take care
of easily and sort of squash, get rid of this, squash it easily.
That's not going to happen. These numbers are growing. They will continue to grow. Hopefully they will get under control, but when you have, for
example, just in the State of Florida alone, you have thousands and thousands of new cases every single day. It is not easy to get that under
control.
QUEST: Okay. But if these new cases came about because of a somewhat promiscuous relaxing of the guidelines and the lockdowns, do you need to go
full throttle to a full lockdown to bring the cases back under control?
Elizabeth, we always knew cases were going -- confirmed cases would rise to a certain extent with an element of reopening.
[15:20:17]
COHEN: Oh sure. I mean, Richard, you and I have talked about this for months now, that it is very simple. You don't need a PhD in immunology to
know that when you bring people together, the case numbers go up. It is simple.
So, the experts that I have been talking to, and everyone feels slightly differently on this, but generally speaking, what they say is, you need to
be surgical about how you reopen.
I haven't heard anyone say let's go into lockdown the way we did before. Let's just completely close everything down.
Instead, for example, one epidemiologist said to me, you know, Florida for example needs to look at where it spread. Is it at those bars? We have all
seen video of the bars where there is a lot of people there. Is that the issue? If so, shut down the bars.
It doesn't mean you need to shut down everything. You need to be smart. You need to be a disease detective and figure out where is the spread coming
from and try to shut that off as precisely as possible.
QUEST: Elizabeth Cohen, our senior medical correspondent. Elizabeth, thank you. You heard Elizabeth say that you have to be smart, you have to be
surgical.
Well, in Atlantic City in New Jersey, they are reopening the casinos just in time for the July 4th holiday weekend when they are expecting it to be
extremely busy.
Now, of course, they have put in place a variety of measures. Brynn Gingras is there in Atlantic City. I can anticipate that you'll tell me they've got
sanitation, they've got Plexiglas. They've got social distancing on the floor, telling people where to stand.
But will it make a jot of difference if loads of people turn up and ignore it?
BRYNN GINGRAS, CNN NATIONAL CORRESPONDENT: You know, I have to say, Richard, it is possible. There is always this possibility it won't work and
then they are going to have scale things back. But I could tell you, so many people are really adhering to these measures.
Let me tell you right now what we are doing. We are going through a thermal scan. This is going to happens for every person that has to come in to the
casinos. So you can't even enter unless your body temperature is adequate to their standards. And if it is too high, they pull you aside, they give
you a drink. They give you a few minutes and then they check it again.
And again, if it is not adequate, you go right back out the door. So that's really even the first step, just to get into the hotel and casino.
And I want to show you, you could see this is the casino floor, obviously, and yes there are all of these measures in place. You can see in the slot
machines, they are creating social distancing by shutting off slot machines in certain places so that people have to be separated.
And a big thing, Richard, I want to get through several layers, but the big thing is the masks. Right? You could see, I am wearing one. All of the
people that are in here are wearing one. Well, there is really no reason when you are in here not to be wearing one because the Governor this week
of, New Jersey, he said, no more in-door dining. That was supposed to start today, and he scaled that back because of what he is seeing in other parts
of the country, even in New Jersey.
He doesn't want those numbers to go up. So, he got rid of in-door dining. So inside these casinos, you can't eat, you can't drink, you can't smoke.
So there is absolutely no reason to bring down your masks.
And people, I have got to tell you, everyone is wearing a mask. No one is taking that down. But I want you to hear also from the CEO of Hard Rock
talking about the mask issue.
(BEGIN VIDEO CLIP)
JIM ALLEN, CEO, HARD ROCK INTERNATIONAL: Our word is caution. Wear your mask. You know, keep six, eight feet minimum. Don't become involved in
large groups where you potentially increase your risk. Wearing a mask reduces your chances by 60-some percent.
So, we don't understand why people don't want to wear masks. I know they are uncomfortable, but the reality is, it is the right thing to do not just
for yourself, but frankly for others.
(END VIDEO CLIP)
GINGRAS: We showed you all the slot machines. Well, now you can see the tables. You can see the partitions are up between each player. If someone
new comes to the game, we have the dealers that are actually giving them sanitizer before they even touch any cards or any chips.
So again, there are so many layers that are going on. And then on top of that, Richard, they are keeping it a certain capacity, only 25 percent of
people can be on the casino floor. That's about 3,000 people here at the Hard Rock.
And even at the hotels, they can get about 1,500 rooms, which isn't the entirety of the hotel. So they have limited that as well. So, really, there
are so many layers that they guys are taking to make sure that they stay on course, keep those numbers down. They don't want to go backwards, only
looking forward -- Richard.
QUEST: Many thanks, Brynn. Put a dollar in a slot machine for me and I'll make sure I get the winnings before we finish. Thank you. Brynn Gingras who
is in Atlantic City.
Ghislaine Maxwell has been arrested in New England. She is Jeffrey Epstein's alleged right hand woman. Now, she is now facing six counts in
New York, including enticing minors to engage in illegal sexual acts.
There was a news conference just a short time ago where prosecutors also said they want to talk to Britain's Prince Andrew.
[15:25:10]
(BEGIN VIDEO CLIP)
AUDREY STRAUSS, ACTING U.S. ATTORNEY FOR THE SOUTHERN DISTRICT OF NEW YORK: I am not going to comment on anyone's status in this investigation, but I
will say that we would welcome Prince Andrew coming in to talk with us. We would like to have the benefit of his statement.
(END VIDEO CLIP)
QUEST: Kara Scannell is in New York with more on this -- Ghislaine Maxwell. Now, I was reading some of what they were saying in court. They say she has
been hiding out at this large estate that she has bought. She has basically been almost on the run.
KARA SCANNELL, CNN REPORTER: Yes. Richard, she has been hiding out, on the run since Jeffrey Epstein was charged last year, prosecutors say.
They say she was in this estate, a 156-acre estate in New Hampshire where they had been tracking her developments, and they said ultimately today,
they had enough to announce the charges and the unsealing of the indictment this week and picked her up to arrest her.
And Maxwell is facing some serious charges here, six counts, they said including enticing a minor to engage in illegal sexual activity. She also,
according to prosecutors, was involved with this much earlier than we previously knew.
They are alleging these charges date back to -- these activities date back to 1994, that's about eight years earlier than Jeffrey Epstein's charges
allege.
The prosecutors are saying that Maxwell helped recruit, groom, and ultimately engage in abuse of victims as young as 14 years old. She is due
in court in New Hampshire briefly in a couple of minutes, where she is expected to be presented with these charges.
Now, prosecutors are going to ask that she be detained. They are saying that she is a flight risk. She has three passports, 15 bank accounts
including one that in recent years had as much as $20 million in it and they say that she has no ties to the U.S.
Prosecutors say that their investigation is continuing. We have not yet heard from Maxwell or her attorney although she has maintained her
innocence during all of these years of civil investigation that have involved allegations from many victims saying that Maxwell was a recruiter
and really facilitated Epstein's crimes -- Richard.
QUEST: Kara Scannell in New York. One we will watch and obviously have the full case at court when it takes place. Many thanks.
Now, despite the record job numbers, many U.S. families are counting on more stimulus. It is a question of what sort of stimulus? How do you offer
the right amount? Andrew Yang is here to tell us after the break, how Congress can really help. It is QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
[15:00:45]
QUEST: I'm Richard Quest. Well, into July and there's plenty more QUEST MEANS BUSINESS in just a moment. Widespread unemployment is given calls --
call once again for the universal basic income. It's an idea that's been around for some time, and now Andrew Yang will be with us after the news
headlines. The former U.S. presidential candidate to give and tell us why this is a -- we should be revisiting it.
And Boeing is trying to ease fears about the future of flying during the coronavirus pandemic. But we need to ask and we will ask the Boeing senior
executive and their facilities mix if they all mixed, the flying cat is not safe when you can catch the virus. Or is it? That's really true in a moment
(INAUDIBLE) before any of that this is CNN. And on this network the news always comes first.
More than 160 people are dead after a landslide of jade mine in Myanmar. Officials say 54 other people have been taken to hospital. Emergency
service say a wave of mud swept the mine after heavy rains happened on Thursday morning. Accidents are common in Myanmar's gem mines, which of
course are largely unregulated.
A bill punishing China over its new security law in Hong Kong has cleared the U.S. Congress. It will impose sanctions on businesses and individuals
that helped China restrict Hong Kong's autonomy when unanimous support and a final Senate vote will now go to the President for his signature.
British court has blocked the Venezuelan government from accessing roughly a billion dollars in gold reserves being held in the Bank of England. The
court ruled that the British government does not recognize Nicolas Maduro as the legitimate president of Venezuela instead recognizes the opposition
leader Juan Guaido who is steadily -- steadfastly opposed to the release of this gold.
So despite the fact that 4.8 million people came off the unemployment rolls and the level of unemployment fell to some 11 percent. There was still a 1-
1/2 million new claimant's, as we saw on the latest numbers. In other words, it's two sides of a coin that suggests things may have got better,
but they're about to get a great deal worse, and that'll leave cause for what to do about stimulus.
The White House says it's considering more stimulus, maybe less money than the last round. The former Democratic presidential candidate Andrew Yang
says he knows what Congress can do to avoid another Great Depression. The emergency money for the people act, it would give $2,000 a month to adults
making less than 330,000 a year, 4000 of married couples making less than 260 and additional 500 per child up to three children.
Andrew Yang ran for president as Democrat. He also wanted the universal basic income and he's with me now. And your plan is expensive. Even those
who are in favor of it admit it will be expensive to implement. Just how expensive?
ANDREW YANG, CNN POLITICAL COMMENTATOR: Richard, we've already spent $3 trillion on stimulus packages. The problem is that most of that money did
not go to American families. And so, you're seeing right now the employment rate in the United States despite the recent uptick is below 55 percent. It
was 61 percent pre crisis. So that's over 10 million Americans who've gotten booted out of the labor force, and many of them are going to become
increasingly desperate.
America clearly has the resources to be able to make families whole and give people a secure path forward right now. We're just putting that money
in the hands of the big companies and the banks and not our families. So that's what we need to change. And if we do that, we have a chance to still
avert a great depression because we can see that this crisis is going to keep on rolling on and on in the United States for months.
QUEST: The universal basic income, those places where it's been tried, it has not been unduly successful.
[15:35:01]
YANG: It's been successful at every level. The studies I've seen in every setting where you see consistent improvements in health, mental health,
only two groups work at lower rates, new moms who spend more time with their children and teenagers who spend more time in school. So these are
the results that we've seen in the U.S., in other countries. And this is particularly vital during a pandemic.
Because right now you have Americans are unfortunately, reopening bars and going back to work in part because they don't have a choice. We have to
give Americans a chance to actually pursue the right actions according to our public health experts, instead of feeling like they have to go out to
be able to put food on the table.
QUEST: Surely one of the problem with all these policies, universal basic income, all of those different ones is that they get tainted by the other
side with the branding of socialism. And that does seem to be a complete aversion to that in this country. So even Democrats shy away from policies
which might be regarded as valid. But once they've been called socialist as Bernie Sanders discovered, they go no farther.
YANG: This isn't socialism, Richard, this is capitalism where income doesn't start at zero. The fact is putting money into people's hands will
be good for businesses, be good for job growth, be good for maintaining the economy throughout this crisis. So we have to think bigger about like you
just said common sense solutions. 74 percent of Americans are for direct cash relief during this time, including a majority of Republicans.
So this isn't about socialism versus capitalism. This is about common-sense ways that we can keep our economy strong and preserve millions of jobs
through a multi month shutdown.
QUEST: If you look at Joe Biden and who he should pick from his vice presidential nominee now, he said a woman, there are those who say should
be a woman of color. I guess you get to the point where you narrow the field. But do you narrow it on meritocracy?
YANG: No, I joke that Joe didn't mention that he was going to pick a woman when I talked to him because before he headed out of it, but he has many
incredible people to choose from, you know, I personally know several of the people that have been mentioned as front runners. And so to me, it's
not an either or in the sense that there are many incredibly qualified women who I know are being considered for his beat pick.
And this is a very personal choice that Joe understands well, because he knows you need to have the right chemistry with a partner in governance.
And so it's in Joe's hands, who he's going to pick and I'm sure he'll make a great decision.
QUEST: Good to see you, Andrew. Thank you. We'll talk again as the election gets closer. I appreciate your time. Andrew Yang joining me there. Now,
Tesla shares which are record high on new delivery numbers. It's at eight percent the stock so far, and Tesla is now officially the most valuable
automaker in the world. The title once held by Toyota. Clare Sebastian with me. Claire, this -- I'm just thinking back. I'm thinking back if you look,
it's worth more than Disney.
More than Coca-Cola, Exxon, and this stock which is now over 1000 was down at 200. Just
A year or two ago. Phenomenal.
CLARE SEBASTIAN, CNN INTERNATIONAL CORRESPONDENT: Yes, Richard. It's pretty extraordinary. Interesting. If you look at the delivery numbers today, they
delivered 90,000 vehicles in the last quarter. Very impressive, considering the macro environment -- considering their factory was shut down for about
half of that quarter. But then again, if you look at the stock price compared to last year, it's almost five times the level it was this time
last year.
And they produce -- they delivered 95,000 cars in the same quarter last year. So it's not like we're seeing phenomenal growth in the business. It's
really sort of the prospects that investors are buying into the prospects in China. The stranglehold they have over the electric vehicle market in
the U.S. And I think these delivery numbers given that macro environment have really propped up this valuation today.
I will say there, Richard, Elon Musk is feeling pretty confident, if not a little invincible right now. He's been tweeting up a storm in the last hour
taking on short sellers. This is not new. Of course, he says, Tesla will make fabulous short shorts and radiant red satin with gold trim. He says
he'll send some to the short seller enrichment commission to comfort them through these difficult times also.
And notably, Richard, and perhaps more seriously taking on the SEC, the Securities and Exchange Commission which of course have to sanction Tesla a
couple of years ago saying SEC, three-letter acronym middle word is Elon though. Let the viewers interpret that for themselves.
QUEST: But I'm just looking, forgive me looking down while I'm talking do you. Look, it gets to about 667 before the pandemic really takes hold.
[15:10:06]
QUEST: It drops to around 450 during the pandemic. It's the way it's gone from that low point. Oh, they are, we can see much better now you don't
need me. It's the way it's gone from that low point only two months ago, two months ago, from for whatever to 1120. So it's gone up 300 percent. Now
that is irrational, Clare.
QUEST: Well, Richard, this is in the context of a lot of, you know, exuberant should I say behavior that we've seen in the market over the
course of that time, but if you look at the facts around Tesla, they did post a surprising profit in the last quarter. That's their third
consecutive quarter of profit that starts to look more sustainable. And of course, you need four consecutive quarters for entry into the S&P 500 which
many are looking at as the next milestone for Tesla.
Plus, China, we're seeing a big rebound, they saw -- they saw sales that dip in April but strongly rebounded in May. So a lot of people are looking
at that. Of course, the biggest electric vehicle market in the world. So yes, the growth has been extraordinary. It's true. The short sellers are
getting squeezed as well. But I think that a lot of people are looking at this and seeing serious growth ahead.
We're seeing price targets around less today above 1000, as well as some lower than that, of course.
QUEST: Clare Sebastian. Clare, thank you. Watch it closely, please. We'll talk more about it. In a moment, Boeing wants to quell fears about what
it's like getting on a plane and the safety of that. Boeing senior executive with us after the break. What are these myths? Can you catch the
virus? If you are sitting in 14A, can you get it from someone in 23F? After the break.
(COMMERCIAL BREAK)
QUEST: To fly or not to fly, that is the question. Boeing is now trying to ease fears and concerns. They're catching coronavirus when flying. It's
launching a confident travel initiative, working with airlines to screen passengers and sanitize aircraft. Some carriers are facing criticism from
the U.S. health officials for booking flights to capacity.
(BEGIN VIDEO CLIP)
DR. ANTHONY FAUCI, DIRECTOR, NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES: That is something that is of concern. I'm not sure exactly what
went into that decision making.
DR. ROBERT REDFIELD, DIRECTOR, THE CENTERS FOR DISEASE CONTROL AND PREVENTION: When they announced that the other day, obviously there was
substantial disappointment with American Airlines, number the airlines had decided to keep the middle seat thing. I can't say this is under critical
review right now by us at CDC. We don't think it's the right message.
(END VIDEO CLIP)
[15:45:08]
QUEST: We'll talk about the critic, the middle seat with Dr. Jim Haas, he's the Director of Product Marketing for Boeing Commercial Planes. Jim is with
me from -- joins me now. And we'll talk about middle seats in a moment. I just want to go back to this core idea that you can catch the virus on a
plane. Now I know all about the H.P. Level A filters, hospital grade, air goes down sanitation, but there's still this fear that you can catch the
virus on a plane.
DR. JIM HAAS, DIRECTOR OF PRODUCT MARKETING, BOEING COMMERCIAL PLANES: Yes. And Richard, we want to reassure passengers about the safety and the
multiple layers of protection. We're working with the industry to put in the air travel journey. So this really goes not just on the airplane, but
from the entire journey from the time of passenger leaves home until he leaves the airplane.
So let me walk you through that because this will look a little bit different for the passengers. So passengers at home will be doing a health
check. Many airlines are asking them to confirm they have not had any virus-like symptoms. When they get to the airport, they'll notice more
spacing, more sanitation stations, perhaps some temperature checks. The whole purpose of this is to establish a layer of protection to keep the
viruses off the airplane.
Now before the passengers get on the airplane, there's another layer of protection. We're working very carefully with airlines to make sure they
understand how to disinfect the airplane and all the techniques and technologies that go with that. And then to your point, once passengers are
on board the airplane, the way the cabin airflow is vertically downward, not front to back.
The effectiveness of the HEPA filter is pulling out 99.9 percent of the viruses and bacteria and the rate at which the air is exchanged in the
cabin, every two to three minutes, the volume of cabin air is totally exchanged. All those really provide extra layers of protection for air
travel.
QUEST: Okay. But you but you would, you know, listening to what the two health experts from the CDC and the NIH say, Dr. Fauci said, you'd agree
that if you have the misfortune to sit next to somebody, a stranger who has the virus, there's a racing chance that you will get it.
HAAS: So, there are a couple of things here. And I think those comments were made without understanding the context of multiple layers of
protection. So, in everyday life, people are used to personal spacing, that's something we've all become accustomed to. But also, in everyday
life, there are those situations where personal spacing isn't either practical or possible. For instance, if you go get a haircut, you go to the
doctor or the dentist in those cases, other countermeasures are used.
We are setting up these other countermeasures in air travel through these multiple layers of protection. Now, to address your point of what if you're
sitting next to somebody who has a virus, the multiple layers of protection really are designed to prevent that person from getting on the airplane.
But if he does, this is why we recommend that passengers wear face masks. It's really part of a personal responsibility of not only not traveling to
feel ill, but also protecting yourself. So we're protecting ourselves and others when we travel.
QUEST: I see -- I see where you're going with that. Look, I'm here to take a flight myself and just say, a week or so and I probably travel more than
most. And I don't really have a concern because I'm aware of all the filters and this, that and the other. What I'm concerned about is the
system breaking down. I don't mean the filter system. I mean suddenly islands get clogged. Suddenly, there's too many people through security.
Suddenly the best laid plans to keep us separated, fail.
HAAS: Yes. And so, this is why we're working with the airports to put in new procedures to help maintain that spacing. But again, it all goes back
to trying to prevent people who are ill from flying. And, you know, an interesting point on this, Richard, is looking at the data. The
International Air Transport Association did a pretty extensive survey of over 18 major carriers from January through March of the year.
So this is before all these protective layers were in place. And they interviewed contact tracing with many, many people. What they found was
that they could not find any evidence of passenger to passenger transmission on all of those flights. So even without these protective
measures, it appears that the odds of catching a virus from another passenger on the flight are not high, they're low.
[15:50:04]
HAAS: All these additional protective measures would make that even lower.
QUEST: Jim, I am grateful to you -- for coming out tonight and talking about it. Thank you, sir. I appreciate it. Jim Haas.
HAAS: Thank you very much.
QUEST: (INAUDIBLE) that's really simple. They left home because they couldn't stand living with mom and dad. And now they're coming back because
they can't afford to live on their own and the virus has taken over. After the break (INAUDIBLE)
(COMMERCIAL BREAK)
QUEST: Welcome back. Ever since Twitter began marking some of the U.S. president's tweets as misleading or inciting violence. Donald Trump's
campaign has been looking for different social media outlet. Now, it may have found one as Tom Foreman tells us.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Parler is the only social media platform that protects your constitutional right to free speech.
TOM FOREMAN, CNN CORRESPONDENT: Never heard of Parler?
Team Trump is pushing the social media app as a new center for conservative conversation. With big-name Republicans signing up fast as the president's
campaign manager tweets, hey, Twitter, your days are numbered.
SEN. TED CRUZ (R-TX): Big tech is out of control, filled with hubris and flagrantly silencing those with whom they disagree.
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I love Twitter and tweeting and between that and Facebook, I have 10 million followers.
FOREMAN: Going into the 2016 election, Trump was a huge fan of big social media sites, especially Twitter, using it to pump his message directly to
his now nearly 83 million followers and to dodge the scrutiny of mainstream media.
TRUMP: It's a thing called free speech rights.
FOREMAN: He has long been criticized for promoting conspiracy theories, lies and racist tropes on Twitter, as he did with this video before
removing it hours later.
UNIDENTIFIED MALE: White power.
FOREMAN: But now with Twitter cracking down on some of his content for being misleading or encouraging violence --
TRUMP: There's nothing I'd rather do than get rid of my whole Twitter account.
FOREMAN: His campaign team is considering several other platforms, even working on one of their own to let Trump say what he will unquestioned,
unimpeded.
JOHN MATZE, CHIEF EXECUTIVE OFFICER, PARLER: The idea that there's no political censorship.
FOREMAN: Right now, Parler is getting the most buzz from conservatives who love it and progressives who say the app is biased against them, even as
the cofounder promising an electronic town square for all.
[15:55:05]
UNIDENTIFIED MALE: Without the idea that there's somebody looking over your shoulder, saying is that a politically correct view or not, is that the one
you're supposed to have?
(END VIDEOTAPE)
QUEST: Tom Foreman reporting there. Now before we go, I'm going to show you what the markets are doing. But it's also a chance, of course, for you to
get in touch with me, Richard.quest@cnn.com, because we're going to start next week, inviting some of you to join us for a bit of brunch, but it'll
be an online brunch or a general depending on whatever time zone you're at.
Richard.quest@cnn.com. If you may have seen this, we did this with working from home, the new reality. All you do is e-mail me. We will select a group
of people who will all get together at a particular time online and will be able to talk over the business of the day. If you'd like to be considered
to come along and do that, Richard.quest@cnn.com. We'll have one or two other ways in which you can also get hold of me. And you can also just add
to that.
The markets as we finally come to the end of today, we are showing strong gains. The unemployment numbers are what's drove the market, all three
indices are higher. The Dow or the NASDAQ is during the rest of the day. Now, well over 10,000 and 26000 not far off for the Dow Jones. That's it.
I'm Richard Quest in New York. Don't forget Richard.quest@cnn.com. Join us for the QMB cocktail hour.
We'll think of something to call it. Whatever you're up to in the hours ahead, I hope it is profitable. See you tomorrow.
JAKE TAPPER, CNN HOST: Welcome to THE LEAD. I'm Jake Tapper. And we begin this hour with the health lead and an alarming new record in just one day.
The United States some more new coronavirus cases than in the first two months of the pandemic. More than 50,000 people in the U.S. are confirmed
to be infected with coronavirus yesterday, the peak in April. Well that we've once thought would be the high point it's now been dwarfed as the
United States alone among wealthy and Western nations we should note. The United States seeing the curve trending in the wrong direction.
[16:00:01]
TAPPER: Dr. Anthony Fauci today saying that only about half the country really locked down when it was asked to, meaning the outbreak continued to
grow.
END
