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Quest Means Business

England Has Lifted Its Quarantine Rules For 59 Countries; In The United States, Number Of Daily COVID-19 Case Surging Once Again To Record Highs; Washington Redskins To Review Name Amid Pressure From Sponsors; Trump To Attend Fireworks Show At Mount Rushmore; Turkey Begins Trial Of 20 Saudi Charged In Khashoggi Murder; Castex Replaces Philippe As French Prime Minister. Aired 3-4p ET

Aired July 03, 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 BUSINESS ANCHOR: These are the stories though that are still around and they moved markets.

Britain has scrapped its quarantine plans for dozens of countries, there are notable exceptions. We will go through that for you.

U.S. coronavirus cases hit a daily record. It all happened on the start of a holiday weekend.

And as you were just hearing, Corporate America helped spark a backlash over the Washington Redskins and their controversial NFL name.

We are live from New York. It is Friday. It is July the 3rd. I'm Richard Quest, and even on a Holiday weekend, of course, I mean business.

So, more travel changes. England has lifted its quarantine rules to about 59 to 60-odd countries that will now be able to visit England without going

into quarantine. Note I say England. The other national regions of the United Kingdom, Scotland, Wales, and Northern Ireland haven't -- their so-

called default administrations haven't signed on to that yet. It all makes for some confusion.

They are opening -- England is opening up for the summer season with reciprocity. The U.K.'s Chief Medical Officer says the country is walking a

very fine line.

(BEGIN VIDEO CLIP)

CHRIS WHITTY, CHIEF MEDICAL OFFICER FOR ENGLAND: There are really serious risks on both sides of the path that we as a country, we as a society are

trying to walk. Go too far one side and the virus comes back again. Go too far the other side and we get even further -- and I speak as someone -- you

know, this is a medical point, increases in unemployment, deprivation increasing and all the social ills that go with that.

So we are -- either side of the path we are on, there are risks, and we are going to have health problems and we are going to have economic problems

for sure.

(END VIDEO CLIP)

QUEST: Anna Stewart is with me. We will deal with what Sir Chris was saying just there in a second. First though, which countries are involved, and

which are not?

ANNA STEWART, CNN REPORTER: Well, yes, so we have the list, the travel corridor list. It came much later than we expected, days later, we believe

that was due to differences between England, Wales, and Scotland.

So, currently, this exemption for quarantine is for 60 countries and British overseas territories traveling into England, as you said, Richard,

not the rest of the U.K.

It is so interesting not just who is on the list, but who isn't on the list. Notably absent, the U.S.A. and Portugal, which has caused some

frustration. Portuguese Foreign Affairs Ministry tweeted just in the last couple of hours saying it thinks it is absurd that the U.K. will still

quarantine travelers from Portugal. It says, the U.K.'s high death rate of COVID-19 says it is higher than Portugal's makes that very frustrating for

them.

No explanation yet as to which countries are not on there, and why. When there will be a review and what parameters do these countries need to meet

to get on England's exemption list -- Richard.

QUEST: Okay, but here is the nonsense. You can fly in to London if you're on the list, and drive within a matter of hours across the border of Wales

or across the border into Scotland. So de facto, Anna Stewart, the England list is for the United Kingdom.

STEWART: Well, this is going to be incredibly difficult, I would say impossible to really implement in one country and not the other two. I

crossed the Welsh border just last week, Richard. I went to a meat plant outbreak there.

There was no one stopping you at the border. There is no infrastructure at the border. So it would be very difficult to maintain.

I would say though, we have had the blanket quarantine in place for just over three weeks. There has been little or possibly no enforcement of it at

all. Not a single report of someone being fined for breaking that quarantine, and I know anecdotally plenty of people who have travelled into

the U.K. and had not strictly quarantined.

So, the other question is, will this be more strictly enforced particularly given there is now a sort of naughty list of countries where they will make

you quarantine supposedly if you travel in from them because there is a higher risk of the virus.

QUEST: Well, that is of course is the issue when the list gets reviewed. Now, as you will hear in just a moment, obviously, the United States, the

situation is deteriorating rapidly.

But is it your view and the view of those that this will enable people in Britain to go on a summer holiday to Europe, if they have the confidence

the do so? And that second part, I suggest might be more important than the first.

STEWART: I think you are right. I think the second part is really difficult. We have been speaking about Airbus, today, there is news from

Air France.

These CEOs of these big businesses saying that transport travel will not go back to normal for years. We are not just talking about weeks or months.

The blanket quarantine in the U.K. has been damaging for the industry. Ryanair has said that it has really come too late.

[15:05:09]

STEWART: It has already been damaging for the economy although they welcome this latest step. I think people will take a holiday, but not anything like

normal levels. The question is, will there be enough people wanting to fly away, will there be enough people wanting to come into the U.K. for a

holiday to really sustain millions of jobs and thousands of businesses?

QUEST: Anna Stewart, we will talk more about it. Have a good weekend. I know, it is not a long weekend, but have a good weekend to you, too.

In the United States, the number of daily case is surging once again to record highs. The holiday weekend pretty much starts now. Today is the

holiday in lieu of July the 4th, which is on a Saturday.

The U.S. is outpacing other countries way, way -- look at the numbers so far on Friday, 27,790. Russia second highest. Saudi Arabia is up there.

Colombia, and Chile.

Several states in America, in the U.S., several individual states, on their own would outclass many countries. Florida obviously, 10,000. California,

much larger; Texas, and so won.

Nick Watt is in Los Angeles. I look at the numbers and they are -- they are not creeping up. They've crept up and they didn't do it that stealthily

either. So what is the fundamental fear this holiday weekend? Will we see rampant packed beaches and amusement parks and the like?

NICK WATT, CNN CORRESPONDENT: Yes, we will. Hold on, I am just having trouble with my mask, Richard. I am just going the take this off. Hold on

one second. Yes, so listen.

QUEST: Oh, it got caught.

WATT: Most places that were scared -- Richard, most places that were scared of seeing crowds have closed the beaches. So, we are talking a lot of

California, a lot of Southern Florida.

So the issue, though, is will people abide by that? Now, we just heard the Governor of Texas saying that they are now seeing a spike because of what

happened on Memorial Day when people gathered in crowds. That's why he is now making Texans wear masks.

So it is going to be fascinating to see if people really do stay off the sand -- Richard.

QUEST: But I do -- the number is so bad, I mean, 50,000 yesterday. We will see what it is today. The number is so bad. And the remedial action

necessary probably greater than anything we have seen so far.

Listening to what Anthony Fauci said yesterday about we are losing the battle, has that sunk in?

WATT: I don't think it has. Listen, on the numbers, you know, we are now seeing, as you mentioned, Richard, in the U.S. around 50,000 new cases a

day.

Now, that is more cases than a lot of countries have suffered during this entire pandemic. You know, Manhattan Beach, which is where I am today,

partly tells us why the U.S. is having such a problem.

So the county has closed the beach. The pier is also closed. The bike path is closed. But what they call the strand, where people can walk, is open.

So, you have got so many overlying jurisdictions in this country that people are a little bit confused as to what they are supposed to do.

Now, the Governor of Texas making masks mandatory, Richard, that could be a watershed moment. Texas is one of the most conservative freedom-loving

states in this country. There has been a lot of opposition to masks from people who are more conservative and freedom-loving.

So Governor Abbott pulling that trigger might be a watershed and might make other governors and mayors think, okay, you know what, I can do this, I can

make masks mandatory. I can put politics aside and put public health to the fore -- Richard.

QUEST: There is also some extraordinary stories of coronavirus parties with cash prizes for the first person who catches it, which besides just being

obviously wrong, is sick in the mind.

WATT: Right. That was down in Tuscaloosa. There was another incident which was very interesting up in New York.

So, a bunch of cases were tied to one house party. So the local officials tried to do the contact and trace. And they were getting the phone slammed

down on them. The people who were at that party, who were in their 20s were saying we don't want to give you any information, we don't have to give you

any information.

So the county issued eight subpoenas to people saying, you will give us the information, and they did. But yes, it is that younger generation now in

the country that they are looking at. The average age of people being infected is dropping, dropping, dropping which is good in one sense in that

we hope that not many of those will die because they are younger.

But if they are younger and infected, they can give it to grandma and grandpa.

[15:10:23]

QUEST: Thank you. Nick Watt, who is in Los Angeles. Thank you. Of course, you heard the issue being put forward by the Chief Medical Officer in

Britain.

Go too far one way, and you end up with COVID -- rampant COVID. Go too far the other and you end up with problems for economies.

Agustin Carstens is well aware of this sort of issues. He is the former Central Bank Governor of Mexico, a country that's being particularly badly

hit. Now, head for the Bank for International Settlements, he is aware that in sorting out the economic problems, it is up to Central Banks who have

led the way.

(BEGIN VIDEO CLIP)

AGUSTIN CARSTENS, FORMER CENTRAL BANK GOVERNOR OF MEXICO: The bottom line in all of this is the fact that we need to have a solution to the

underlying cause of the problem, which is basically the pandemic.

If from a medical point of view, a solution will not come soon, of course the economy will be lingered and monetary policy and fiscal policy will

have to be prolonged in terms of its cumulative stance.

Now, at some point in time, the crisis will meet -- will basically move from a situation where liquidities of these, in essence, and there is where

Central Banks mostly have the muscle to a solvency issue, and their fiscal policy should take the slack.

What is important is to get also growth going and the penalty of the policies, and for that, we also need structural reforms. So, I think that

we need to insist our far more structure reforms now and to the only depend on what fiscal and monetary policy can do.

QUEST: Finally, sir, after 2009, '10, '11, '12, the GFC, the sovereign debt crisis, quantitative easing, we thought we had seen anything. I bet you

thought as you came to your time in Mexico, you thought, you know something, I don't think I could see anything that rivals the great

testimony crisis, well, guess what? We did. We have. What do you reflect on that?

CARSTENS: Well, what I reflect on is that for crisis management, authorities need to be prepared. Basically, you need to think that you

don't know from where the crisis will come, but you better have your instruments ready. And I think, in this case, it proved to be the case that

Central Banks were ready to react.

It really is amazing how quickly they reacted to the nature of this crisis and how fast they could deploy all of their instruments.

(END VIDEO CLIP)

QUEST: Now, to the naughty problem the Washington Redskins and mounting pressure to change the name of the team.

The team says, the NFL Washington Redskins say they will now consider a change in name, but they are only doing so after major investors sent

letters to the team, sponsors, FedEx, Pepsi and Nike. They are demanding they will drop support for the team if they don't change what is believe to

be a racist moniker.

All of this, amid the massive protest against racism in the United States. Alison Kosik is covering the story for us.

All right, so, the Washington Redskins have been around for some time. There have been numerous attempts to get them to change their name before.

None of them successfully. Why is this one likely to succeed?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: I think the time is different. The movement that we saw began in June, Richard, with the protests, the

mood in the United States is different.

I think that, along with the strong push from these investment groups, almost a hundred of them, worth collectively more than $620 billion, I

think all of that pressure sort of boiled up and put enough pressure on the Washington Redskins to make this stunning announcement that it will

consider a thorough review of its name, something that hasn't -- no one would ever think would happen before, especially with Dan Snyder who is the

team's owner who said -- who had really dug his heels in and said he would never have the name changed.

Now his name is actually part of the Washington Redskins' statement once again saying that the team will undergo a thorough review as far as its

name and mascot go.

QUEST: Okay. But what about the fans? I mean, they are attached to the name. There could be an element that simply says, you know, this is what

the name is. Where do we stop and start changing things left, right, and center and leave it as it is.

[15:15:16]

KOSIK: You know what? Some fans may agree, some fans may not. But I think, we are seeing a sea change in the way Americans feel about the injustices

on certain groups in this country.

I think you are seeing a lot of Americans stand behind what's now not just a moment but a movement. I think many Americans are jumping on board this

movement as well.

QUEST: All right, Alison, I have heard so often this idea that this time it's different. I remain skeptical, not cynical, but skeptical that this

time it is different not because of the severity, but simply because we have been here before, on equally egregious terms.

KOSIK: Well, but we are seeing -- we are seeing huge changes being made. You know, if you reference them as opposed to versus what we have seen in

the past. In the past, we have seen statements from companies, we have seen donations.

Well, now, we are seeing company literally change the name of their products. We are seeing statues come down. So, you know, these may

obviously be baby steps. These are just the beginning steps on what really needs to be done here.

You know, we are even seeing companies like Sephora take a 15 percent pledge saying we are going to -- 15 percent of our vendors or 15 percent of

what we sell will come from black-owned businesses. This was unheard of years and years ago.

So we are seeing some companies, yes, inconsistently, depending on what industry it is, take steps that we wouldn't ordinarily have seen them take

before.

Fast forward to the Washington Redskins, no one would ever have thought the Washington Redskins would finally change their name. Dan Snyder, when I say

he dug his heels in, he dug his heels in in the past. He said there would be no name change. Now, he seems to be on board, as well as the NFL itself,

Roger Goodell.

QUEST: Alison Kosik. Thank you, Alison.

Now, in a moment, the CEO of Gol Airlines from Brazil. All of his major competitors seem to be going bankrupt, and one wonders, the strength of his

own airline and how to make good.

We will talk about that after the break. The Latin American aviation industry -- it is devastated.

(COMMERCIAL BREAK)

[15:20:04]

QUEST: The two major airline groups in Latin America have both filed for bankruptcy. The cause should offer opportunities for the other carriers in

the region. But many of them are also pulling out, closing down, or simply cutting back.

The situation for aviation in Latin America is dreadful, and promises to get worse. Stefano Pozzebon reports from Bogota.

(BEGIN VIDEOTAPE)

STEFANO POZZEBON, REPORTER (voice over): Leeslie Barragan is folding her uniform for the last time. Like hundreds of other Colombian workers in the

flight industry, she lost her job because of COVID-19.

(BEGIN VIDEO CLIP)

LEESLIE BARRAGAN, FORMER FLIGHT ASSISTANT (through translator): It has been my whole life's dream to be a flight attendant for Avianca. And now, I have

to say goodbye to that dream, not because I didn't do my job, but because of coronavirus.

(END VIDEO CLIP)

POZZEBON (voice over): The future is frightening for the single mother and her family who are moving because they can no longer afford their flat.

Leeslie's story is not unique. Across Latin America, businesses are scaling down as the International Monetary Fund predicts this pandemic will trigger

the harshest economic recession in decades.

Airlines in particular are taking a hit as people stopped traveling for work and for pleasure.

LATAM, Avianca and AeroMexico, three of Latin America's major carriers having filed for bankruptcy since May. Normally, one of the biggest hubs in

the region, Bogota's airport is all but closed.

This vending machine used to sell snacks, it has now been reequipped to sell face masks, but there is nobody here to buy them

POZZEBON (on camera): You can almost feel an eerie atmosphere walking around these halls that are now complete empty. This airport is working

hard to provide increased safety measures for when the flights will finally resume.

POZZEBON (voice over): The International Air Transport Association thinks the air industry won't recover until 2023. So the impact on jobs like

Leeslie's could be long standing.

(BEGIN VIDEO CLIP)

BARRAGAN (through translator): Both my mother and my daughter depend on me. Mine was our only salary. We have no other income and we have to pay rent,

food and school fees now.

(END VIDEO CLIP)

POZZEBON (voice over): In a statement to CNN, Avianca said, dismissals like Leeslie's case, "reflect that post-COVID operations will be much more

reduced once we will be allowed to fly again."

With limited road infrastructure, traveling by air is often the only way of connecting cities and businesses. To avoid further layoffs, some workers

are coming up with preventive solutions.

The Colombian Pilots Union say they have proposed a voluntary pay cut across the board as long as Avianca doesn't release a single pilot in the

next two years.

(BEGIN VIDEO CLIP)

CAPT. JULIA PINZON, AVIANCA PILOT (through translator): Our proposal is simple, don't fire anyone. We supplement our own wages and when you'll need

pilots, they are already part of the company and trained.

(END VIDEO CLIP)

POZZEBON (voice over): While Captain Pinzon waits for Avianca's response to the offer, he and thousands of other flight crew members are flying blind,

searching for hope on the horizon.

Stefano Pozzebon, CNN, Bogota.

(END VIDEOTAPE)

QUEST: Paulo Kakinoff, the CEO of Gol Airlines joins me from Sao Paulo. Good to have you, sir. Thank you.

Your principal competitors are going bankrupt. They are still flying but they are going bankrupt. And there are some questions, of course, about

your own airline's ability to keep going. The auditors are going to raise some issues about that in your account. Will you be able to survive?

PAULO KAKINOFF, CEO, GOL AIRLINES: Hi Richard, thank you very much for having me. Let me start by saying first, we have 12 months of cash on hand

as a minimum. We increased that from ten months of cash on hand through a series of cost reduction measures such as, many of our lessors and

suppliers who have been partnering with us for 19 years were willing to negotiate contracts and we have successfully addressed all of them.

The management took a five to six percent pay cut. That includes myself. We have made also an unprecedented agreement to protect jobs. We have 5,000

plus crew members until the end of 2021 by reducing monthly payroll by 50 percent. Other employees have taken voluntary redundancies or paid leave of

absences.

So, I can't imagine that we could face ourselves in a tougher situation than we are right now due to the actions taken not at this time only, but

along the last three years. We have rebalanced our --

QUEST: All right. Let me jump in.

KAKINOFF: Please.

QUEST: Let me jump in here. The -- if I may, the ability, though -- we know that flying isn't coming back to anything like previous levels. And even

though you have made these cost-cutting measures, I also see for example, LATAM is teaming up with Azul to sort of do an alliance. The competition is

weakened, but strengthening up.

What are you going to do to strengthen your own footprint?

[15:25:16]

KAKINOFF: Actually, our business model is the biggest advantage. We are the sole airline in Brazil operating a single standard fleet concept. So, we

have already the lowest costs at the same time that we are less dependent on the international demand. Only 50 percent of our revenues are coming

from the foreign markets.

So we are now in the position to even expand our market share while our competitors are contracting. So we have come from an already very

competitive environment.

There is -- through these yield cost reduction measures that we have taken, I believe the company is more than robust enough to face this new and

challenging scenario.

QUEST: Interesting, this idea of expanding. You know, I saw Alan Joyce of Qantas. In their statement, they say, they were raising money to take

advantage of opportunities that will come along in the recovery.

Do you believe there will be opportunities where you can pick up routes, aircraft, market share? Are you thinking on those lines?

KAKINOFF: I think that definitely the company is positioned to take advantage and further enhance our presence in the market.

I mean, we have the proper product. We have the flexibility to very fast adapt ourselves in terms of company size, you know, by operating only 727s,

we can quickly react to any market variation.

This is nothing good to face this time. This is how we have established our business already for 19 years. Brazil is typically a very volatile market,

so got used to that we adapt ourselves very fast, and therefore, we can also take this opportunity to enhance the performance.

QUEST: And indeed you might. You might even get your 737 MAXs back in the air before too long if the F.A.A. testing that took place earlier this week

went well. Thank you sir. Thank you for joining us. We will go from the air to the sea.

KAKINOFF: Thank you very much.

QUEST: Well, not so much the sea, let's go on a city cruise along the River of Thames. The managing director of City Cruises is with me after the

break.

(COMMERCIAL BREAK)

[15:30:54]

QUEST: Hello, I'm Richard Quest. There is more QUEST MEANS BUSINESS for you in just a moment. Chief Executive of Impossible Foods will be with us.

Brand new deal with Starbucks. How can you really know can they actually service such a large deal as that?

And Hamilton takes a shot at streaming after skipping the big screen entirely. It's a trend that was already underway, but it's being hurried

along quite nicely by coronavirus. All of that of course, we'll have to wait because this is CNN. And on this network, the news always comes first.

President Trump and his wife are traveling to Mount Rushmore in South Dakota on Friday for an evening fireworks celebration for the Fourth of

July. It's all taking place against the advice of public health officials as the event will not require masks or social distancing.

The trial has begun in Turkey in the murder of the journalist Jamal Khashoggi. He was killed after entering the Saudi consulate in Istanbul in

2018. Consul staff has testified on Friday that they were denied access to the consul general's residence on the day that dissident journalists were

missing. 20 Saudi suspects are being tried in absentia.

France has a new prime minister, John Kasich will replace the resigning Edouard Philippe, as part of a cabinet reshuffle. The new premier says his

focus is on mitigating the economic crisis brought about by coronavirus.

The focus of this week on QUEST MEANS BUSINESS has very much been on travel tourism and the reopening of Europe. The E.U. came up with its list. The

U.S. wasn't on it. The U.K. today has come up with its list. And throughout the course of the week, we brought you the names of the decision makers who

are helping to reopen and get summer underway.

(BEGIN VIDEO CLIP)

TOM JENKINS, CHIEF EXECUTIVE OFFICER, EUROPEAN TOURISM ASSOCIATION: What the commission has done is really stepped into the driver's seat for the

first time in three or four months, and told the member states of the Schengen area that they really have to relax their borders between

themselves.

ZURAB POLOLIKASHVILI, SECRETARY GENERAL, WORLD TOURISM ORGANIZATION: We should -- really clear recommendations for all member states and to have

more control, control doesn't mean to have very strict and very difficult procedures.

JENKINS: I have to say the moment this is not a good moment for international travel, even if there were no restrictions in place.

KRISJANIS KARINS, LATVIAN PRIME MINISTER: We fall well understand that at any time a new wave or a disease could swell up. So we're ready at any

time. If needed to change our measures to be a little more restrictive than we are today.

POLOLIKASHVILI: Europe will be again the example how to open, how to reopen, restart tourists. And I'm sure that's in upcoming two or three or

four months we'll come back to normal.

(END VIDEO CLIP)

QUEST: Once you've got to where you're going you want to something to do while you're there. City Cruises is resuming tours along that River Thames

amongst others. The new hygiene measures as you would expect with social distancing, the managing director, Kyle Houghton joins me from Reigate,

England via Skype. And Kyle, the measures that you're taking seem fairly sort of standard in the sense of social distancing and the sanitation,

sanitizing of this vote, but you're not requiring masks.

KYLE HOUGHTON, MANAGING DIRECTOR, CITY CRUISES (via Skype): Well, no, that's right, Richard, we're not requiring masks but we are asking our

passengers to wear masks, masks off compulsory or public transport here in London. And we're asking people to wear masks and we fully expect that that

will become common practice.

QUEST: Why not just -- I don't belabor the point, but why not just require them?

[15:35:03]

QUEST: We know -- I mean, put it this way, Kyle, by not requiring them you're making more of them of an issue than if you do require them.

HOUGHTON: I don't think so. I think it's, you know, there's individual responsibility to other people that you're on the vessel with the people

surrounding and most people in London at the moment are wearing masks and taking on that responsibility. For us as an organization to police that

would lead us into confrontation with customers. And we don't really want that, but we will be advising.

And if other customers have a problem with it, we've advised our staff on how to work that situation and ensure that both parties are happy and we

can resolve it.

QUEST: You must have been pleased of course this morning, with the government announcing all those countries, 59 countries that can now visit

the U.K. without requiring quarantine because your big problem of course is same for everybody is this one of confidence, you set -- in your statement

you say, we hope after reading this guide, you have the confidence in our health and safety measures and feel safe in the knowledge.

We've done everything to minimize risk. That's the big issue for all places like yours, isn't it? Confidence.

HOUGHTON: It is -- we need our customers to have confidence. We've taken all the steps that we have with social distancing, our boats will be

sanitized overnight, bacteria clean, and we have a cleaning process why the boats are in service. We've taken all the steps that we can and we've been

very -- we're very proud that we've been awarded a COVID secure your award from visit Britain that shows and shows all the steps that we've been

taking.

And this has been well recognized in the U.K. already and I hope it will be recognized by our overseas visitors as well.

QUEST: Also, you've now got the cost issue of the countries involved. Now the United States for obvious reasons, even Russia for obvious reasons is

not involved in on the list. Some of the largest spending tourists. Do you think -- do you think that the list of 59 have so far that will be

sufficient for you to drum up your business when you add in, of course, for example, staycation is too?

HOUGHTON: I think with the new capacity levels that we are allowed to operate to do social distancing, that having the larger European companies

or countries having access to the U.K., that is fantastic news today. We'd love America to be with us. That's very important for our business.

Unfortunately, not but actually this has been very good news for us. Our business is about 5050 overseas versus domestic and --

QUEST: All right.

HOUGHTON: -- all the research that we have in the U.K. is that domestic customers are looking to get out about on tomorrow on Saturday.

QUEST: Kyle, quickly, can you make money at these lower capacity levels?

HOUGHTON: The online to that is yes. We have already streamlined our operation. We've reduced our schedules and we've had to remove some of the

products from sale. But the ones that we have operating will make money if we hit the right required. Passenger volumes.

QUEST: Good to see you, sir. How's your business doing? It's doing very well by the sound of it. We'll talk more hopefully as the summer goes on.

And just a moment, so movies used to go to the big screen first and then streaming and online and cable was all secondary. Not anymore. When

Hamilton goes to the stream of first, you know, a change has taken place. You'll see it after the break.

(COMMERCIAL BREAK)

QUEST: If you like me, you haven't been able to get a ticket For Love or Money or otherwise to see Hamilton, whether it be Broadway or elsewhere.

Now you can watch it online. No, I just not. The original cast performance is now streaming on Disney Plus, it's not part of the free or the basic,

you have to pay extra for it. The film version was supposed to be released in theaters next year. COVID-19 has forced a change in those plans.

The issue of how to release blockbuster big movies which were meant to go to theaters and then to go streaming when we don't know when the theaters

are going to open. It's one that's been deviling Hollywood.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: The day so far?

UNIDENTIFIED MALE: Today, tomorrow, it's all the same.

UNIDENTIFIED FEMALE: You, what is going on?

QUEST: It was back in January when Palm Springs, Andy Samberg, new romantic comedy was on track to make a big splash. He had sold at Sundance for a

record price, reportedly more than $17 million. The buyers, Hulu and the distributor Neon had agreed for a jewel release. It would go to the

theaters first and then online. Then came COVID. Now the movie theaters are shot across the United States and in the rest of the world.

UNIDENTIFIED MALE: It's one of those infinite time loop situations you might have heard about.

QUEST: The producer said goodbye to the idea of a splashy theatrical release, and instead, Palm Springs will premiere on Hulu on July the 10th,

and there'll be a few driving theaters as well.

DYLAN SELLERS, PRODUCER AND FINANCIER, PALM SPRINGS: It was something that, you know, Andy and I and the director and everybody, you know, we're

looking forward to. So we're definitely bummed out a little bit. But that's the world we're in right now.

QUEST: To release so not to release, that is the question that faces all of Hollywood now. The studios have delayed big budget films like Christopher

Nolan's Tenet, and Disney's Mulan, waiting, hoping that movie theaters may reopen, studios cannot wait forever. Some are choosing instead to rent or

sell the movie direct to viewers known as PVOD or premium video on demand.

JEFF BOCK, SENIOR MEDIA ANALYST, EXHIBITOR RELATIONS: If theaters Do not open in July or even if they do and then they close down or if attendance

is just air, I guarantee that one of these big blockbuster films is going to take a chance go PVOD, and we're going to know we're going to have the

answer to how much film can -- how much a film can gross on this streaming format? Can it make a billion dollars?

QUEST: More on these films like kids' movies, indie comedies, and horror, are already releasing on streaming service or on demand. And what's more?

They're finding captive profitable audiences.

UNIDENTIFIED MALE: There are other kinds of trolls.

QUEST: Trolls world tour actually brought in more money for universal through on demand, and the first Trolls movie did in the theaters. As for

Palm Springs, the producer Dylan Sellers says putting the film on indefinite hold wasn't really an option. Because they're a small studio I

need to recoup the costs. Even without theatrical release he says they'll turn a profit.

SELLERS: I think if you talk to the folks at Hulu, they'll tell you that this has been an incredible attraction for their viewers. It is surpassing

all their expectations.

[15:40:04]

SELLERS: In terms of, you know, audience subscriber interest.

QUEST: The clear losers in all of this are the movie theaters. The movie chain, AMC is now warning it has serious doubts it can even stay in

business. Viewers were already shifting online. The pandemic has sped up this transition.

BOCK: The battle is being won by streaming right now and for the foreseeable future that's going to continue.

QUEST: Blockbusters to be sure will probably always be shown in the movie theaters first. At least for now.

(END VIDEOTAPE)

QUEST: We continue it. So the United States is on lockdown, Impossible Foods has been a massive deal with Starbucks. All right, the impossible

sausage. We'll talk about the sausages after the break.

(COMMERCIAL BREAK)

QUEST: This is a holiday weekend as you're aware. Locked out at least in the United States, lockdown and the backyard, well nothing else with a

barbecue or (INAUDIBLE) and now impossible sausage available at 20,000 locations including Starbucks which has an enormous contract to have.

Impossible says demand is high despite closures of restaurants. Pat Brown is the Impossible Food CEO in Stanford, California.

And you all -- you have -- Pat, good to see you. You've increased again and again and again the number of outlets -- retail outlets where the

Impossible meats are available. And that now the Starbucks with impossible sausage takes us into a different league, isn't it?

PAT BROWN, CHIEF EXECUTIVE OFFICER, IMPOSSIBLE FOODS: Yes, Starbucks is by far our -- in terms of the number of units, the biggest customer so far

15,000 across the country. So next a big deal for us and we're really proud and happy to be working with Starbucks.

QUEST: What about the idea that you're on the record many times as saying, you know, there's impossible and others and the whole COVID pandemic as

well does start to spell the end for meat -- for meat production, particularly if you look at the way in which so many meat plants have been

hit by really nasty outbreaks of COVID. How do you square that circle?

BROWN: Oh, well, first of all, it's not -- doesn't smell the end of meat, there's going to be meat it's just not going to be produced the way it is

today using animals, quality and slaughtering animals with the catastrophic environmental impact that has.

[15:50:12]

BROWN: I think the cocaine epidemic has probably had a bit of a catalytic effect. It's really hard to say because we're in the middle of it right

now. But the demise of the animal-based food industry was inevitable before that epidemic, and it is inevitable and we believe that the industry will

be essentially in the rearview mirror within 15 years.

QUEST: Pat, what point do you reach short-term capacity, whereby, you know, you have grown so fast, impossible has grown so fast, that I wonder how you

consolidate before you pardon the pun take another bite?

BROWN: If I understand the question, you know, fast growth was baked into our mission and our strategy from day one, we set out to completely replace

animals in the zoo system by 2035. And so from the start, we have deliberately chosen ingredients for which there's a robust supply chain.

And our production process uses the kind of food processing equipment that might be used in a bakery, it's widely available.

So that doesn't pose a barrier to scale. But the fact is, as you -- as you say, scaling production is inherently a challenge. And for us, I think we

just -- we're racing to keep ahead of the demand and to stay on our trajectory. But so far, so good. Last year, we had a hiccup or the demand

got ahead of our ability to produce. We're not going to let that happen again.

QUEST: We'll learn from these hiccups. Pat, it is good to see you sir.

BROWN: Yes.

QUEST: I'm grateful to you. Your sausages will be gracing, barbecues left, right and center. Thank you, sir. Impossible Foods CEO.

BROWN: Okay. Thank you.

QUEST: Think about this. First of all, they left home. Then they came back. One of the things about the coronavirus is that many children having left

the nest have now found its time to return to the bank and home of mum and dad. Clare Sebastian reports.

(BEGIN VIDEOTAPE)

CLARE SEBASTIAN, CNN INTERNATIONAL CORRESPONDENT: When Daniel Tetley left la in mid-March to celebrate his 25th birthday in New York, he had no idea

he wouldn't be going back.

DANIEL TETLEY, FORMER RESTAURANT SERVER: The moment that I landed, I had my phone blew up. I have like 1,000 text. My restaurant has shut down. New

York City had shut down. My parents came and picked me up. And we came back to Connecticut and I never went back.

SEBASTIAN: He was followed from the restaurant he worked at and his lease was monthly so he simply gave notice and a friend shipped his belongings.

TETLEY: My two other siblings, all three of us are home again, and I don't think anyone ever thought that we would ever be in this situation again in

our childhood home.

SEBASTIAN: Least of all, his mom Kathleen.

KATHLEEN TETLEY, HAS THREE ADULT KIDS LIVING AT HOME: Now, there's meals every night for mom to cook. The laundry is always filled with somebody

else using my washer. The dishwasher runs night and day. The (INAUDIBLE) are crazy.

SEBASTIAN: Daniel and his siblings are among 2.7 million Americans mostly aged 25 and under who moved in with parents or grandparents in March and

April this year, taking the total to a record 32 million according to real estate Web sites, Zillow.

SKYLAR OLSEN, SENIOR PRINCIPAL ECONOMIST, ZILLOW: When you think about the size of the people that are moving back home, you're talking at around $726

million at risk that traditionally flows into that rental market. Now, rent non-payment or more people doubling up like this moving back home is

causing the pressure to come off of rent growth.

SEBASTIAN: Young people have been some of the hardest hit by job losses during the pandemic. Now, if the unemployment picture continues to improve,

we may see some of them starting to come back into the rental market. But it's not just those lost jobs who decided to head back home to mom and dad.

TARIKA GADH, MANAGEMENT CONSULTANT: The rumors started spreading in New York that subways are going to close down, the city is going to shut down,

and offices are shutting down. So, at that point, I booked a flight home.

SEBASTIAN: 24-year-old Tarika Gadh works as a management consultant in New York, a job she can keep doing from her parent's house in L.A.

GADH: I live alone in New York in a one-bedroom apartment just knowing that if I had to be quarantined alone, I knew it wouldn't be easy.

SEBASTIAN: Her New York lease was up in May and she didn't extend. Her plan now is to stay with her parents until her office reopens.

GADH: I definitely fear in a way that it is stunting my growth as a -- as a recent college graduate.

[10:55:03]

GADH: I think even my mom is worried about me. She keeps telling people that this is a wasted year for me.

SEBASTIAN: An expert say, the longer young people stay at home, the deeper the impact on real estate.

OLSEN: It is an incredible advantage to avoid rent, especially when rent is taking up a larger and larger share of income and student loan debt is at

record highs. Now, if they stay in their Gen X parents homes, then that could have repercussions not just for the rental market, but for the for

sale market as well in the future.

SEBASTIAN: Weeks have already turned to months for millions of Americans living in these new arrangements. The question now is whether the months

turned to years. Clare Sebastian, CNN, New York.

(END VIDEOTAPE)

QUEST: Before I leave you tonight, let me remind you, you can join us for the Q and V brunch. Cocktail hour. Happy Hour. We haven't quite decided

what it's going to be. But send me an email to Richard.quest@cnn.com and we will put your name into the part, the parts in the pilot as to those names

that we're looking forward to join us. So it's Richard.quest@cnn.com, which actually is my e-mail address.

We really have to come up with them so not clogging up the e-mail account. And we will let you know the details who's chosen, what we'll be talking

about, on what meal or drink or beverage, you should be prepared. That's it otherwise, I'm Richard Quest, that's QUEST MEANS BUSINESS for tonight. I'm

Richard Quest in New York, wherever you're tuning your eyes ahead this weekend, I hope it is profitable. See you Monday.

(COMMERCIAL BREAK)

ANNOUNCER: This is CNN Breaking News.

JAKE TAPPER, CNN HOST: And welcome to this special edition of THE LEAD. I'm Jake Tapper. We continue this hour with our health lead, the coronavirus

crisis. 36 states in the U.S. have a rising number of infections and for the second day in a row, the United States is hitting a record-high number

of cases in one day. Now it's more than 52,000. And with July 4th tomorrow, health officials are currently worried that celebrations will lead to

another major surge in infections.

What one infectious disease doctor called the makings of a perfect storm. Dr. Anthony Fauci, the nation's leading infectious disease expert is

already warning that the nation is clearly headed in the wrong direction and he is saying it's in our hands as a nation to stop this crisis from

getting worse as the CDC is currently projecting 148,000 coronavirus deaths in this nation.

END