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Quest Means Business

U.S. Stocks Rally After Surge In Chinese Markets; Warren Buffett To Buy Dominion Energy's Natural Gas Asset For $10 Billion; U.K. Arts Industry Welcome U.K. Government Support Fund; Israel Renews Strict Limitations As COVID-19 Cases Surge; Chinese Ambassador Accuses U.K. Of Gross Interference In Hong Kong; Heathrow Airport Piloting Test Program For Arrivals. Aired 3- 4p ET

Aired July 06, 2020 - 15:00   ET

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

[15:00:08]

RICHARD QUEST, CNN INTERNATIONAL ANCHOR: Sixty minutes to the end of trading on Wall Street, a new day, a new week, and there are good gains

that are being seen across the market at the moment. All the major indexes are quite a bit higher, and if you look at it, they've gone up one in a

third, maybe just off the best of the day, roughly over 400 when I was with you earlier on "First Move."

Well, that's the way the markets are looking and these are the reasons behind what we're seeing.

The bulls are back in China, strong market in China. The rest of the world is joining in, in some celebration of some sort of one type or another.

Warren Buffett is making his first big deal of the pandemic.

And the CEO of Emirates Group tells us tonight it's time to reopen slowly and surely. That's the airlines.

We'll also be talking to the head of Dubai tourism.

We are live from New York on Monday. It is July 6th. I'm Richard Quest, and yes, I mean business.

Good evening. What started out as a market rally in Asia, particularly in China, has now pushed stocks higher across the globe. Hong Kong did also

join in, I might add.

The Dow in New York is climbing more than 300 points, despite rising COVID cases over the holiday weekend. But the market seems to have been able to

brush off much of that.

China has gained stirring as the bullish global sentiment, Mainland China, Hong Kong, they're all showing excellent gains. And the Shanghai Composite

led all the Asian markets higher.

It's interesting and it is worth noting, if you look at Southeast Asia, ASEAN markets such as for example, Malaysia and similar countries, they are

also seeing EPS -- earnings per shares -- very much higher than the general trend, 25 and 30.

Kristina Hooper is the Chief Global Strategist of INVESCO. She joins me now. Let's just parse this down, first of all, too. We'll start with China

and if you like, we'll work through the region and into the United States. China's gains are based, basically, on optimism, but optimism of what?

KRISTINA HOOPER, CHIEF GLOBAL STRATEGIST, INVESCO: Well, there's certainly optimism around economic activity. We've seen very significant improvement

over the last several months.

Now we've seen that in the U.S. as well, but what's different about China is that they've actually been able to bend that curve. They've controlled

the virus. So, it's a different kind of scenario than in the U.S., and of course, China also got that nice boost from state media, suggesting or

urging Chinese households to invest in Chinese equities.

QUEST: So, China -- I guess, to understand this, are those gains in China, are they well based? Because it's well known that the Chinese government is

not averse to manipulating the market one way or the other when it seems the right moment. And say with, to a certain extent, economic data. So, are

you satisfied that the Chinese gains are real ones?

HOOPER: I am satisfied, for the most part, given that the fundamentals are better than the last time we saw that kind of significant rally that was

goosed by China encouraging investment.

Back then, we saw more leverage and we saw higher valuations. So, this is on a more solid foundation this time, which suggests it has legs.

QUEST: Take this to the United States, and the sort of market that we have seen, the ebullience. Now, I can understand how we make up a lot of losses

since the March lows. But it's this difficult period now where we're no longer recouping that which was lost, but now we're making fresh gains and

there doesn't seem to be the economic fundamentals to truly justify the gains we're seeing.

HOOPER: Well, we certainly have seen improvement in economic activity. The concern is that that could be quite fleeting, given that we haven't been

able to control the spread of the virus in many parts of the United States.

We also are flying somewhat blind in that so many companies, almost 40 percent of the companies in the S&P 500 have dispensed with earnings

guidance this year.

So, it makes for a situation of significant uncertainty.

[15:05:02]

QUEST: Right. But I guess, you know, Goldman is now saying it expects lower growth this year. Citi overnight, in its note, said basically it expects

the market to trade sideways for the next few months into 2021.

Where is your view on the market between now and, say, oh, I don't know, end of year, spring of next?

HOOPER: Well, I do believe the big gains are behind us for this year. I would expect a scenario where over the next few months, we have significant

volatility. We could see a substantial pullback, but I would actually expect the stock market to end a bit higher by year end than where we are

today, and a lot of that is because there's an upward bias built into stocks because of Fed policy.

State media in China might be encouraging households to invest, but in the U.S., we're a bit more subtle. The Fed just gets more accommodative.

QUEST: Good to have you. Thank you. I appreciate that.

HOOPER: Thank you, Richard.

QUEST: We've been talking about the Fed there. Tomorrow on this program, at this time, we will have one of the Fed's top policymakers. An exclusive

interview with the Vice Chair of the Federal Reserve, Richard Clarida who will be with us.

We'll discuss the fed's response to the coronavirus crisis, the shape of the global recovery, and that point that Kristina was just making a second

ago that the Fed is the one that's driving the market's gains.

You'll hear us discuss that on QUEST MEANS BUSINESS.

Warren Buffett has made his first big foray into the market to the tune of $10 billion. Clare Sebastian is with me. Where's the money gone?

CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT: Well, it's the natural gas transportation storage assets, Richard, of Dominion Energy. This is a

significant boost to Berkshire Hathaway's already existing energy portfolio and it shows Warren Buffett's commitment, interestingly, to fossil fuels at

a time when others are moving away, including Dominion Energy, which basically said, in coming out with this deal that they are looking to sort

of zero net carbon future.

But also interesting because Berkshire Hathaway and in particular, Buffett have not really done anything since the beginning of the pandemic. There's

been a lot of scrutiny over the fact that Warren Buffett sold his stakes in the big U.S. airlines. Their stocks have since gone up. People have been

questioning that.

So, this really the biggest -- his first and biggest move since that happened and I think it shows -- it's not an elephant-size deal which is

something that he talked about last year. It's only sort of $4 billion in cash, $5.7 billion in debt, nothing compared to the acquisition they made

of Precision Castparts, that aerospace company four years ago for $37 billion.

It shows a bit of caution. It shows his propensity for value investing, but he is now putting money to work, which is what people have been looking

for.

QUEST: And as he does that, and the money sort of -- everybody watches to see where he goes. Now, oil and gas, one wouldn't have thought,

necessarily, was a tremendous investment with low oil prices, although they've come back.

He's a long-term investor. How does he see his investments now? Where does he see the growth forward?

SEBASTIAN: It's difficult to see at the moment, Richard. As you say -- as I said, he pulled his money out of airlines. He said that they're going to be

in a bit of trouble for a number of years. He does have a big stake in Apple, about 5.7 percent, which he is sticking with and oil and gas, energy

in particular, has been a big focus of his.

He invested $10 billion in Occidental Petroleum, for its acquisition of Anadarko that was fairly recent, and now this shows that commitment.

Obviously, there are, as you mentioned, challenges in this sector. Dominion Energy basically on the same day that this deal with Berkshire Hathaway was

announcing that it was pulling out of the Atlantic Pipeline Project with Duke Energy. That was worth $8 billion.

We just heard that the Dakota Access Pipeline will have to be shut down because of environmental concerns. So, this is a difficult environment for

fossil fuels, but Warren Buffett is someone who looks to try and get into things people need, insurance, railroads, things like that, and he said in

his recent shareholder meeting in May, never bet against the United States.

QUEST: Clare Sebastian joining me from New York. Clare, thank you. Back to Europe where we look at how the markets have traded and optimism over the

economic recovery is there.

The U.K. opened pubs and a variety of other forms of venues. The European Commission has given conditional approval for remdesivir for use in the

E.U. I suppose that becomes a question of whether they can get it since it's widely believed that the U.S. has bought up the forthcoming stocks.

And the U.K. arts industry has welcomed nearly $2 billion in U.K. government money to support theaters, museums, music venues, heritage sites

and the like, some of which have been allowed to reopen, many of which have still got to open.

The Actors Union Equity, of course, says the money must be used to support creative freelancers. However, cinemas and theaters are still in the dark

in some places. Cinemas are now allowed to be reopening in others with strict rules in place.

The CEO of Cineworld, Mooky Greidinger joins me from Haifa in Israel. Good to have you. Thank you for doing this. Now, you're opening the cinemas in

certain places. You've got a 50 percent capacity. It varies in different countries but essentially a 50 percent capacity. Can you make money on that

basis?

[15:10:51]

MOOKY GREIDINGER, CEO, CINEWORLD: Of course we can. The business in cinemas is really the business of peaks, and what makes things difficult for us

with 50 percent and, let's say, maybe possible for us with less than 50 percent is that we need our capacity in the peaks, which are the weekends

and mainly the weekends where we're opening the big movies.

So while the general capacity or the average in the cinemas will be somewhere around 25 percent, you can't come and say you can live with 50

percent for long, but I think for a start, and where now top priority is really the safety of our customers and our teams, 50 percent is good

enough. This will work for a while, and after that, we hope that things will get better and we'll be able to go back to 100 percent capacity in the

busy weekends.

QUEST: The question of masks, should they, shouldn't they? Now, this idea that where they are the legal requirement, people should wear them and I

understand the nature of the cinema is such, everybody is facing to the front, there's no talking, so I understand that the possible route of

transmission is less. But where do you stand on masks?

GREIDINGER: Look, we are taking it market by market. And first of all, the first thing we must do is to obey all the regulations and the restrictions

we are getting with the different governments.

Cineworld Group is acting in ten different territories and the demands -- the restrictions are different. But on the other hand, we hear also

customers and we feel right now that most of them for sure want to wear masks in the lobby and in the entrance to the cinema.

Whether they will put it on for the whole movie or not, this is different. Here again, like you said, everybody is sitting on his own, the social

distancing exists between transactions, so families sitting together but on the other end, you don't sit near a stranger.

So, this will be mainly territory based.

QUEST: The other day, we had a story about the number of movies that producers are sending straight to streaming. Now, when the cinemas were

closed, there was obviously strong reason for doing that and some suggested, a person I talked to, you wouldn't do that. But you're firm,

aren't you? You will not show in your theaters and cinemas, movies that are also concurrently being launched in streaming.

GREIDINGER: Yes. I think the answer here goes in two parts. First of all, we are showing movies that are respecting what we call the theatrical

window. This is what we show, otherwise, this is a TV product in our eyes and this goes directly to home entertainment, which is a big business.

Now, movies that are going directly to home entertainment is not something which is new. It's existed already for more than 20 years. Sometimes, the

producer, for certain reasons, maybe he's not so happy with the result of the movie, maybe he thinks it's more urgent for him to go into home

entertainment. Maybe he has a good offer. He would take it to this. This is not something which is new.

Naturally, in the time of the COVID-19, some of the producers said they don't want to wait, and they want -- they need, also, the cash. They have

their issues as well; it's not only us -- and took the movies directly to streaming.

This is nothing, I think, that talks about the future. That window exists, the major studios are committed to it. We need to remember that the cinema

industry have generated in 2019, $43 billion worldwide in box office.

Out of this, about $20 billion was the share of the movie distributors and studios and producers. This is not an amount you just throw over overnight.

And the phenomena of our business is that if you will look into the history -- or anyone, if we look into the history, we will see that the bigger the

movie is in the cinemas, the bigger than it is in home entertainment.

QUEST: All right.

GREIDINGER: Why is this? I cannot explain. But the most successful Bond movie will be in cinema. It would do more money in VOD, DVD, and in many

other formats that it will show later.

QUEST: All right, Mooky, we shall leave it there. Thank you, sir, for joining us. It is appreciated. Thank you.

Now after the break, we will take a look at tourism. Dubai is one of the world's number one destinations. It's also got one of the world's leading

airlines. You'll hear from the CEO of Emirates Group, Sheikh Ahmed, and we'll have Dubai tourism after the break.

(COMMERCIAL BREAK)

QUEST: Travel and tourism is a crucially important part of the global economy, which is why we spend so much time talking about it on QUEST MEANS

BUSINESS.

Dubai is pretty much at the center these days of much of global tourism and travel. And now, the Emirates is on the verge of a crucial new phase in its

coronavirus recovery.

Tonight, you're going to hear from two of the most powerful business leaders in that industry from Dubai and from the Emirates. From Tuesday,

international tourists will be allowed to travel to Dubai provided they show a recent negative COVID test.

The tourism industry accounts for almost 12 percent of the economy, probably higher, according to the latest numbers. The head of Dubai's

Tourism Ministry is with me in a minute.

It's also a huge moment for Emirates, the airline and the group. The crisis has forced the airline to lay off thousands of staff. It was the world's

largest airline by revenue kilometers. When it comes to reopening the group, the CEO says there's no choice in leveraging the risk/reward.

Sheikh Ahmed bin Saeed Al Maktoum spoke to John Defterios earlier who said, for many governments, now the time is just how you go about doing it.

(BEGIN VIDEO CLIP)

SHEIKH AHMED BIN SAEED AL MAKTOUM, CHAIRMAN AND CEO, EMIRATES GROUPS: I think for the governments around the world, I think nobody can afford it,

so we take the measure, we open up slowly and surely and just carry on with our lives and business.

JOHN DEFTERIOS, CNN BUSINESS EMERGING MARKETS EDITOR: This is normally a slow period in Dubai because of the temperatures here in the Gulf right

now. What is the initial reaction, and because you set the measures within Dubai Airport, the new safety precautions, do people feel comfortable to

come in?

[15:20:34]

AL MAKTOUM: Yes, I think we did whatever possible on the government side in the UAE to make sure that the people, when they will come here, they will

be safe. I think it is a busy period for people to go out and also for a lot of people, you know, that we do a lot of packages during the summer to

attract a lot of business.

And I am also, confident with what's happening in the last couple of weeks, we see the hotels are doing well. Some of the hotels even during the

weekend, there is up to 80 percent occupancy. So that's really is very positive from the local market and now also we are -- we like to see the

international businesses really coming back to Dubai and the UAE.

DEFTERIOS: But you know the debate right now, Your Highness, it's a debate against the risk and reward. Is it worth the risk to get the reward of

restarting the economy, or is the reality, there's no choice at this stage?

AL MAKTOUM: I think there is no choice, and also, we have to take measures. We always take calculated risk, and I think we have done whatever it takes,

really, to ensure that people who come here to be safe. I think we did so many tests to make sure also that we are geared for it.

At the airport, we're using the PCRs, people coming in or leaving also to ensure also people leaving here. It is our reputation that we want to make

sure and also to protect our staff around the airport and the city to feel very happy to do what they've been learning over the year.

DEFTERIOS: You know, you've dealt in the past with the Gulf War, Iran/Iraq War, the shock of the global financial crisis. Now people say it will be

very difficult for Dubai to snap back. You lived through each one of those. What's the answer? How deep is this, and can Dubai recover with this being

the opening salvo or the opening gun?

AL MAKTOUM: You know, I think what we went with this COVID-19, it's different than what we've been through over the last 30 or 34 years doing

business through a global crisis, but I think the whole world really will come over it. I think we are geared. We have the facilities. We have the

manpower. Everything is needed there to set.

We've been testing, also, the facility and how we really see that -- the revamp of the business coming back slowly but surely.

DEFTERIOS: What do you tell the passenger, though, now, some don't want to wear the mask, some don't want to take the precaution. This doesn't work

unless you get global collaboration and cooperation, right, from those who want to use Emirates Air or come into the Emirates, right?

AL MAKTOUM: Yes. I think we have to follow the rules. I think, in the past, if we say that you have to be sitting down when the aircraft is moving or

there is a turbulence, you have to fasten your seatbelt, so we have to go. We have to follow the authority, and that's by law.

So you sit there, you wear a mask. You have to protect, also, yourself. We will protect you from the staff side, moving within the aircraft, but also

you have to take certain measures when you are in your seats.

(END VIDEO CLIP)

QUEST: That's the CEO of Emirates Group. Joining me now is Helal Al Marri, the Director General of Dubai Department of Tourism and Commerce marketing.

Good to have you, sir. I appreciate it.

I think -- look, I understand the measures that are being taken, and I think probably one of the most original and innovative is this idea of

COVID tests upon arrival. I understand how it's going to work. I get it. But do you think people will be willing to make the journey in the first

place?

HELAL AL MARRI, DIRECTOR GENERAL, DUBAI DEPARTMENT OF TOURISM AND COMMERCE MARKETING: Well, good evening, Richard. First of all, let me say hi to

everyone and let me also say our thoughts and prayers go out to all those affected by this pandemic.

And also, thanks to all the people who have been working on the front lines for these past months taking care of us all.

With regards to your question, look, I mean, there are certain travel requirements. I don't think the COVID test is the only thing we have. So,

first of all, people who are coming to Dubai, you know, they need to make their health declaration, which the airline provides.

[15:25:09]

AL MARRI: In Dubai Airport, you also have all the thermal imaging, which, you know, they need to undergo. Now, people could take the COVID test

before they come and many people do opt to do that. It's valid up 96 hours before.

For those who don't, they need to take it in the city and that's our way of safeguarding really everyone coming into the city and again, this ensures

we don't need to apply quarantine to those who test negative and of course those who test positive, they can be taken care of, either institutional

stays such as a hotel that's been set up or if they need hospitalization.

QUEST: So, when do you hope that travelers from -- particularly from the E.U. and others will be able to travel to the UAE and to Dubai?

AL MARRI: Look, you know, with regards to the situation with the E.U., that's a very fluid situation. What we understand is these lists are being

updated every couple of weeks. The authorities here are in touch with the authorities over there and working on things.

When it comes to the UAE, you have to appreciate that we're following the W.H.O. advice, which is test, test, test. And you know, we're doing that

many tests, you will find some people who are positive and don't have signs.

And again, it could be that we're slightly disadvantaged in that case, and you know, unless everybody is looking at the same metrics, which is, you

know, number of positive cases, you know, per testing per hundred thousand.

QUEST: Okay. What's your best guess, Helal, for when you would hope to see numbers, I guess, even approaching that which you had before? I mean, I

know airlines are sort of saying, 2022-20'23, some are going far out as 2025.

Well, you've got Expo coming up. There's been talk about what you're going to do there. So what are the plans? What is the plan?

AL MARRI: Look, I mean, I think you need really to think about how sentiments have changed. If we rewind six to eight weeks, everybody was in

lockdown, and everybody was in a much more pessimistic situation.

Today, countries are opening up, albeit slowly, but I do expect a lot of countries to open up over the course of the summer. So as we come into the

fall and the winter, travel will normalize, albeit within this COVID situation.

You know, once we look through that, you know, to post-COVID, things -- we're expected to come back to normal. This is an event. There's not a

systemic issue with travel overall. People still really want to go on holiday. We can see that from the searches online and from the demand.

QUEST: Right. And as you put this together, I guess the question is the confidence building, isn't it? At the end of the day, you can have all the

-- the airline can have as much PPE, you can have all the tests, everything go round.

You've got a great product. No one doubts that. It is this confidence question of when people will feel able to travel again. What's your gut

feeling telling you?

AL MARRI: Look, I mean, we're monitoring the trends. I mean, you know, again, as I said, if you go back ten weeks, not that many people were

looking for holidays.

Today, when you look, a lot of people are looking, a lot of people are looking for this summer, the fall. We're seeing different trends. Some of

the things, which is last minute --

QUEST: Oh. Well, that's a shame. That was going rather well, but unfortunately, the line did freeze there. It just shows you, these things

happen.

Coming up in just a moment, Brazil has topped 1.5 million coronavirus cases, yet bars and restaurants in the biggest cities remain open. Needless

to say, that's causing a great deal of distress.

We're in Sao Paulo in just a moment. QUEST MEANS BUSINESS.

(COMMERCIAL BREAK)

[15:30:00]

QUEST: Welcome back. More QUEST MEANS BUSINESS in just a moment. We're looking at Heathrow Airport's potential new testing program for those who

want to avoid the 14-day U.K. coronavirus quarantine. It's not underway yet but they have got hopes.

And Patagonia was one of the first to join -- Patagonia started the Facebook ad boycott, hundreds of brands have followed. The company's

marketing chief will be with me. Before all of that, this is CNN. And on this network, the news always comes first.

Israel is re-imposing strict limitations by closing down bars, gyms, event halls, and other venues, as coronavirus cases surged in the last week, the

country's average run 800 cases a day. That compares with only 20 new cases a day back in mid-May.

China's ambassador to the U.K. is accusing the British government of gross interference in Hong Kong. The U.K. is offering residency to overseas

passport holders who want to leave the former colony. The U.K. said Beijing's new security law breaches the agreement that returned Hong Kong

to China.

Prince Harry says the U.K. must take a hard look at its colonial past. He says an honest reckoning is needed to move the Commonwealth forward. But he

and his wife were addressing an online session of the Queen's Commonwealth trust. The Italian composer Ennio Morricone died on Monday. He claimed to

fame during the Spaghetti Westerns of the 1960s, like The Good, The Bad and The Ugly has impact well beyond film, influencing some of the world's

biggest musicians. After several nominations, he won his first Oscar in 2016. And he was 91 years old.

Well, this is interesting, bars, restaurants and beauty shops have reopened in Brazil's financial home in Sao Paulo. Now that might seem, well, a

little remarkable bearing in mind the way the numbers have been going in Brazil. Sao Paulo eased restrictions despite surges in coronavirus cases,

more than 1.6 million infections and a death toll near 65,000. CNN's Bill Weir is in Sao Paulo for us tonight.

BILL WEIR, CNN CORRESPONDENT: Yes, Richard, greetings from the old town of Sao Paulo, a center of commerce for centuries, very quiet during the

initial lockdown but back in business today. As you can see, the sidewalks are absolutely packed, social distancing, nothing near reality in this

scenario here. And many of these shops are very tight and they have (INAUDIBLE) coming over with lists of menus of their wares to try to lure

you into those shops. It's impossible to enforce any of the standards we're hearing from health professionals.

[15:35:10]

WEIR: But this is pretty indicative, this attitude, to that of the president of Brazil, Jair Bolsonaro from the beginning, dismissed this as a

little flu and a lot of hype. And his policies have been changing by the week erratically. He fired his first health minister, because they

disagreed over quarantine and social distancing rules. That man's replacement lasted less than a month and now a general, loyal to the

president, but with zero experience in the public health sector, is now running the pandemic response in a country of 212 million.

As they are reopening big cities, as the bars in Rio and the beaches in Rio, and the shops and salons here in Sao Paulo are reopening, Brazil is

second now of the United States in terms of deaths and infections, 1.6 million infections, 65,000 or so deaths, which could surpass the United

States if they stay on this trajectory. And at the same time, President Bolsonaro vetoed proposed laws that would have made mask mandatory at

church and school and shops and prisons, and also provide free masks to those who live in favelas and can't afford them.

His -- he seems to be betting his entire political future on the economy, regardless of the body count attached to this pandemic. But what's

interesting is, Brazil is a rather sophisticated country when it comes to the healthcare system. Bolsonaro wanted to privatize it that added another

layer of politics to it. But these folks have been through Zika and HIV crisis and have thousands of well qualified doctors frustrated by the

system being, sort of, handcuffed by the politics of it all.

But it also makes this country prime for a vaccine trial which are underway, two of them, one from China, one from the University of Oxford,

are going to start testing thousands of Brazilians, hoping to find that much anticipated elusive cure for coronavirus. Richard?

QUEST: Bill Weir is in Sao Paulo. We'll hear more from Bill in the days ahead. In just a moment, the pressure on Facebook came from the companies.

Now, Facebook is to meet those companies. Well, we'll talk to one of those who have been an activist against Facebook on wanting change, in just a

moment.

(COMMERCIAL BREAK)

[15:40:07]

QUEST: Welcome back. Mark Zuckerberg is to meet the organizers of some of the companies that have been behind the ad boycott of Facebook. Meanwhile,

as New Zealand's largest newspaper company is also the latest to join. Stuff Newspaper group tells Stuff on Monday, it would stop posting its

material on Facebook and Instagram. Campaigns started by civil rights advocates who wanted the social media company to do more. Now, Patagonia is

one of the earliest to join and said the stakes were too high to do nothing. Cory Bayers is the company's VP of Marketing. Cory is with me.

Now, well, what a lot of time what a lot of water has gone under the bridge, since you were first joined right at the beginning, in the sense

that many more joined and Facebook and Zuckerberg made certain key commitments of what they were going to do. But the stop (INAUDIBLE) for

profit don't believe that that's enough. Where do you stand? Has Facebook done enough?

CORY BAYERS, VICE PRESIDENT OF MARKETING, PATAGONIA (via Skype): Well, like you pointed out, they have made some commitments, but we need to see a lot

more detail. I do believe there's a lot more they can be doing. And we need to see the detail of some of the claims that they came forth with last

week.

QUEST: Ok. But the sort of things, reading the activists' demands are very much sort of in the -- in the weeds and in the engineering of Facebook,

board representation at the executive level, more monitors, all sorts of things that actually can't be ignored once you've put them in place, rather

than airy fairy policy statements.

BAYERS: That's correct. I mean, simply put, they need to be more responsible. They're a publishing platform, and they're being used to

spread hate and misinformation, and they're doing very little about it. From secure elections to global pandemic, to racial justice, I mean, the

stakes are just too high right now. We need to be in the weeds and they need to be -- to have a conscience about what they're doing. They cannot

continue with the same business model.

QUEST: Isn't it for -- they're only six percent, seven percent, maybe nine percent of the revenue has come from very large businesses, most come from

small businesses. And there were two aspects of that when Facebook's marketing head sent out a note, basically saying we don't respond to

financial pressure. How do you respond to that?

BAYERS: Well, as you pointed out, the percentage, it is pretty clear. It seems like they are driven by you know, financial means. So, without, you

know, any government interaction, this is our only means to really address the problem and have them change their ways. We've been in dialogue for

some time and prior to this campaign. They continue to ignore and not make the change that's needed. So, this is a -- this is our only way, I think,

to get together and actually put that pressure.

QUEST: Right. All right, Cory, let me -- let's go to the heart of it, though. I'm curious to hear from you. How far do you think speech should be

allowed to go on Facebook? It's the old first amendment business. Can I say hateful, nasty, unpleasant, vulgar things, providing I don't cross the line

of the law?

BAYERS: Look, I mean, free speech is the cornerstone of this country. But it's also got to be held in tension with the other values such as equality

and safety and democratic participation. There's a difference between free speech and hate speech that puts people in physical danger. There's also

the 14th amendment. I'm no constitutional lawyer, but what that also guarantees equal protection to all Americans, including those who are

harmed by hate speech.

QUEST: But I always -- but when we go down this road, I always feel that somehow we're losing the other bit of the First Amendment, which is, you

know, your right to say something really nasty, unpleasant, almost vulgar, but within the lines of the law. Just because it's hateful, doesn't mean

somebody shouldn't have the right to say it.

BAYERS: But when it involves physical danger and acts of violence, it is -- it has crossed the line. And that has been proven. This hate speech has

crossed the line.

QUEST: Cory, I thank you for joining and I think you'll agree the discussion that we'll certainly have again, and you're most welcome. As

this comes forward too, I'm very excited to have you back so that we can discuss the parameters once we know what Facebook's prepared to do and how

far you think that needs -- still need to go. Good to have you. Thank you, sir. Now, as we continue tonight, it is the ultimate add on for the age of

coronavirus.

[15:45:09]

QUEST: Patagonia has test that comes with your airline ticket. I'll speak to the company trading it. First, John Defterios has "THE GLOBAL ENERGY

CHALLENGE."

(BEGIN VIDEOTAPE)

JOHN DEFTERIOS, CNN BUSINESS EMERGING MARKETS EDITOR: Here at the Orogiallo pasta factory near Naples, 50 years of Italian culinary tradition meets

innovation. Earlier this year, these machines grinding out Orecchiette and spaghetti, were powered by a new fuel. Hydrogen mixed with natural gas, a

cutting-edge experiment in Europe that showcases green hydrogen as a clean energy source of the future.

MARCO ALVERA, CEO OF SNAM: It's big, it's happening, and it's happening faster than we all expected.

DEFTERIOS: Mixing hydrogen, an industrial production, is a trial being taken by one of Europe's largest gas providers, Snam. There is growing

pressure from energy companies to change their business strategies and tackle climate change. Snam believes it might have the answer. By

introducing just 10 percent of hydrogen into its existing gas network, the company believes CO2 emissions will be reduced by 5 million tons annually.

And it's betting that within three decades, green hydrogen will provide a quarter of Italy's energy.

ALVERA: We think it will get to between 3 and 5 percent in 2030, and we see it getting up to 25 percent by 2050. We see costs allowing for this

revolution to happen without really much need for subsidies or taxes. And so, it's a way to fuel the green deal.

DEFTERIOS: Producing green hydrogen from renewables remains expensive. The electricity produced by solar panels and wind turbines splits water into

hydrogen and oxygen through electrolysis. The hydrogen then flows to factories and service stations, it can power industrial production, fuel

vehicles or be stored for future use. But amid greater public demand for countries to feature clean energy, in any coronavirus recovery packages,

several governments are announcing green hydrogen projects as part of economic stimulus plans.

MORRY MARKOWITZ, PRESIDENT AND EXECUTIVE DIRECTOR, FUEL CELL AND HYDROGEN ENERGY ASSOCIATION: There's a greater recognition that we need to do

something now. We cannot wait. Costs are coming down, and they're coming down dramatically, while also consumers are looking for more greener

products, and that together is creating that bad advantage that we hadn't seen in the past.

DEFTERIOS: With costs falling and experiments like here the Orogiallo pasta factory, green hydrogen could become a major player in the global energy

system. John Defterios, CNN.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

[15:50:00]

(COMMERCIAL BREAK)

QUEST: Heathrow Airport wants to start offering COVID tests to arriving passengers from those countries not on the U.K.'s acceptance list. The idea

will be to use a saliva-based swab test. The results will be known within hours. And if you've got an -- the idea is to avoid the negative -- the 14-

day quarantine. Those who tested negative could travel freely. Those who tested positive would either be kicked out or would have to go into

quarantine.

Collinson Group is hoping to run the trial. CEO David Evans, who joins me from England. Look, it's a great idea. The issue is that you can really now

convincing the U.K. government to let you and Swissport do it. How close are you to doing it?

DAVID EVANS, JOINT CEO, COLLINSON (via Skype): Well, I'd like to think we're very close. We've had a number of letters to the Secretary of State

for Transport and the Secretary of State for Health. And they've indicated that they're certainly open to doing something here. It's a great

compliment to the strategy we've got in place, opening up already those non quarantined countries, exempt from quarantine about 50 of them so far. So,

they certainly think it is something that will work closely with us, and government and industry working together.

QUEST: Right, and the idea is what? You test them at the airport. So, they go to -- they go home and leave their name and address, so you can contact

them afterwards or is it fast enough that you can give them the result while they're there?

EVANS: No. So, we've opted to use the PCR test, which is the most sensitive of all the tests out there and it gives us a much more accurate result. So,

that means you do have to wait a bit of time. The idea is you book the test before your arrival. Once you arrive into Heathrow, which is our pilot

partner we're launching with, once you arrive into Heathrow, you'll go through -- you'll be guided towards your test.

You'll take your tests, you'll go off to your original point of destination, you'll wait there for a spell, hopefully between five and

seven hours. It could be up to 24. We are expecting it to be much sooner. Then once you've got the all clear that you haven't got coronavirus, as you

said, you're free to go about your business and get on with your business trip or your vacation.

QUEST: So, some places like Hong Kong are already doing something similar. There are lots of jurisdictions that are trying and have worked around

this. The U.K.'s government -- the U.K. government's policies of a quarantine is a sledgehammer, frankly, as one is about to go into it in the

next week or so.

The -- why have you -- why is it not being put forward? This is not new, this idea of not new. And now there are 75 countries who are allowed. There

wouldn't be that many people anyway. So, what's the delay? So, what's the delay?

EVANS: Well, if I could look inside the inside of government, so I wish I could tell you. I think the reality is that the U.K. has been hit hard with

coronavirus. I think they want to make sure they protect the country. That's why they put the borders up and they made sure they push that

through. They've released it slowly. Now is the time to, as you say, open up for those people that are coming from countries that haven't yet got the

same level of coronavirus under control (INAUDIBLE) in a scientific-led manner.

Test the people. We know under one percent of the population so far had coronavirus. It's a small number. But by putting this protection in place,

you can let most people travel, get the economy's back running again.

QUEST: And if we look at general travel, with your experience at Collinson, if we look at the trends that we're seeing, now tonight, we had Dubai on

the program, you may -- you wouldn't have heard the Dubai tourism head talking about the measures they're taking.

It's something similar in that sense. Tests that's taken before. Everybody's playing around with these different mechanisms for doing it. Do

you think travel gets back to -- what dates your date do you think when we get back to something approaching the sort of travel we've seen?

EVANS: Well, I think we're not going to see the travel that we saw coming into this year for a good 18 months, maybe two years. But what I do think

is we're going to continue to see the curve that we've seen over the last six weeks, right?

There's no doubt about it. We've seen the stats that came out of the U.S. over the holiday weekend, people are traveling again and now picking up to

March levels. I think we're going to see the same in Europe over the next few weeks, as the European Sky is open.

And I think providing we get this testing sorted, the governments get themselves sorted, we're going to get to the summer. That's what's critical

for the airline industry.

[15:55:10]

EVANS: That's what's critical for the hospitality industry in the hotels. Got to get the summer open. We've got to move quickly now.

QUEST: David, thank you. That's excellent. Glad to have you on the program tonight. And then look at the markets before we finish. It's becoming very

dark here in New York, by the way. The rain is threatening, the storms are often. The last few minutes of trade on Wall Street, a gain of -- best of

the day.

We are at the best of the day, getting over one percent, back on the back of China. Apple is amongst the top performers as tech Scott lead the

market. Walmart, Home Depot, they are seeing declines. If you look at the Dow 30, Goldman Sachs is up rather strongly as well.

And the reminder for tomorrow's program when you look at the markets. An exclusive interview with the vice chair of the Federal Reserve, Richard

Clarida. He'll be with me tomorrow live on the program, extended interview. We're going to give it as much time as we can, and probably a little bit

more after that. We'll take a profitable moment after the break.

(COMMERCIAL BREAK)

QUEST: Tonight's profitable moment, we all want to travel, Europe needs a break, and everybody wants to just have a few weeks off. The best way, of

course, is not have any quarantine requirements at all. So far, governments have practiced and played around with bubbles and corridors, Australia and

New Zealand and the like. And Europe now has these countries, 15 of them, where you can travel quarantine free, the U.K. has 75. But this doesn't

really help for a long-term benefit for those company -- countries that are within bubble zones and quarantine free.

And we haven't even seen what the United States is going to come up with when it does finally allow travel to and from its borders. The best hope,

so far, does seem to be what Dubai is coming up with. And the U.K. may play around with some form of test upon arrival, that if you pass, you can stay,

and if you don't, you have to go into quarantine.

It's simple. Its straightforward. And yes, you can even make the traveler pay for it. Now, that's what you call a good idea. And that is QUEST MEANS

BUSINESS for tonight. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, I hope it's profitable. The market is at its top of the

day, the Dow Jones bell is ringing. The day is coming.

END