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Quest Means Business
Millions Evacuated As Powerful Category 4 Storm Prepares To Slam Into The Southern United States; Republican National Convention Rolls Into Day Three; CDC's New Coronavirus Testing Guidance Has Some Health Experts Scratching Their Heads; First Lady's Speech Mentions COVID And Race Relations; White House Weighs Executive Action To Help U.S. Airlines; Top- Paid Footballer Messi Says He Wants Out Of Barcelona. Aired 3-4p ET
Aired August 26, 2020 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:12]
ZAIN ASHER, CNN INTERNATIONAL HOST: All right, let's take a look here. Stocks are at record highs. The Dow is actually staging a late session
comeback after some early losses. The Dow is up 28 points or so, so pretty much flat. We did get some positive numbers in terms of durable goods.
Those are the markets, and these are the reasons why.
Millions are evacuated as a powerful Category 4 storm prepares to slam into the southern United States.
The Trump campaign stakes its reelection hopes of an economic comeback as the Republican Convention rolls into day three.
And Hollywood hopes for a happy ending to its summer blockbuster season as "Tenet" hits movie theaters as well.
It is Wednesday, August 26th. I'm Zain Asher, in for Richard Quest. And this is QUEST MEANS BUSINESS.
All right, we begin with the devastating storm taking aim at the U.S. Gulf Coast. Laura has just been upgraded and is now an extremely dangerous
Category Four hurricane that is expected to make landfall after midnight tonight along the Louisiana-Texas border.
Forecasters describe the storm surge as un-survivable. Waters are already rising along the coast and more than 1.5 million people have been told to
evacuate the area.
The Governor of Louisiana made this plea to residents a short time ago.
(BEGIN VIDEO CLIP)
GOV. JOHN BEL EDWARDS (D-LA): We need everyone in Southwest Louisiana paying very, very close attention to this storm and heeding the warnings
that have been going out for a number of hours now.
You are going to hear ranges of storm surge that we haven't heard in Louisiana since Hurricane Audrey in 1957. You are going to hear the word
un-survivable to describe the storm surge that we are expecting.
(END VIDEO CLIP)
ASHER: All right, let's bring in meteorologist Jennifer Gray at the CNN Weather Center. So, Jennifer, this is one of the fastest intensifying
storms in history. We could actually see a storm surge of up to 13 feet. Just walk us through that.
JENNIFER GRAY, CNN METEOROLOGIST: We absolutely could. That storm surge could that high, five to six meters. It is going to be easy to do with this
storm.
One of those reasons is because this area along the Gulf Coast is very, very low lying. South Louisiana, a lot of mash land. We have a lot of lakes
and rivers that feed into the Gulf of Mexico.
So this is an incredibly vulnerable portion of the Gulf Coast if not the most vulnerable, and so that's why water is going to so easily go inland.
Storm surge is going to be the biggest threat with this storm, as well as the storm. It is not going to be like Harvey, if you remember back in 2017.
There was a flooding event where it sat over one area for days and days at a time. This is going to be a wind and a storm surge threat with this
storm, 220 kilometer per hour wind with gusts of 250.
Now, this storm is expected to make a turn more northward in the next couple of hours. We are still waiting on that turn and when that happens,
and if it does happen in the next few hours, that will put Houston more out of this storm or at least out of the center of the storm, where we will
have it more so along the Texas-Louisiana border riding right up the spine there.
So we are already seeing those outer bands come on shore with the rain, the lightning, the tornado potential is there as well, and as this storm gets
closer, the winds are only going to pick up, the rain get harder and that storm surge is just going to push in.
We are already seeing storm surge of about a meter, maybe half a meter or so, but it is going to get up to five or six meters especially this this
area shaded in hot pink, and that's the area that is so vulnerable.
The water could make it up to Interstate 10 that runs right through Beaumont and Lake Charles. That's an incredibly busy interstate that runs
across the south, and so water could get that far north. That's how low lying these areas are.
So all of the areas shaded in red, that's where we could see the water inundation when the storm comes on shore. So it is actually really
remarkable to see how far that the storm surge is going to get.
Here is the high risk forecast radar. This is a big storm. It could be a strong Category Four, maybe even a Category Five at landfall. This region
has never experienced a storm of this magnitude since we have been keeping records.
And so, these storms can wobble a little bit to the west, a little bit to the east, so if the track holds the models, this is what we are going to
get over the next couple of days, and still a significant storm by the time it makes it far inland to North Louisiana, Arkansas even we could see some
devastating wind as well as flooding there.
So here is the maximum wind threat. You can see this area shaded in purple, that's where we are going to get the highest winds as this storm moves
north and continues to weaken, we could still get some pretty fierce winds far inland.
Forecast rainfall, you can see anywhere from 150 to 250 millimeters of rain. Some areas getting up to 500, so this is like I mentioned, not as
much a flooding concern. Some areas of course will flood. We could get quite a bit of rain, but I think the biggest concern with this storm, Zain,
is most definitely going to be that storm surge, the water inundation as well as the wind.
[15:05:32]
ASHER: Un-survivable is the adjective that a lot of people are using to describe this. Jennifer Gray live for us there, thank you so much.
I want to turn now to U.S. politics where Republicans are staking their case for Donald Trump's reelection on his handling of the economy and
largely ignoring the language shadow of the pandemic.
Night two of the convention made almost no mention of the coronavirus until First Lady, Melania Trump offered the first words of sympathy to the
nation.
As the convention rolls into day three, Vice President Mike Pence will be speaking, as well as Second Lady, Karen Pence as well. Also Senators Joni
Ernst and Marsha Blackburn, too. Kellyanne Conway, the outgoing counselor to the President, and Lara Trump, the president's daughter-in-law and
campaign adviser.
Ryan Nobles joins us live now from Washington. So, let's start with the First Lady's speech because she displayed compassion and warmth.
She told people who are suffering in this country, you are not alone. She showed a lot of intense gratitude to first responders and doctors who have
been dealing with this pandemic.
Was the First Lady's speech somewhat representative of what the President should have been saying all along?
RYAN NOBLES, CNN WASHINGTON CORRESPONDENT: I think there is a case to be made for that, Zain and I do think that the First Lady to a certain extent
benefits from the fact she takes an exact opposite approach to her public persona than President Trump does, right?
I mean, President Trump is out in the public eye as much as humanly possible. He has found a way to work himself into every night of
programming throughout this convention, where Melania Trump rarely, if ever, is speaking to a big group of people.
She rarely grants interviews of any kind. She seldom, if ever, gives any speeches. So most of the time, what she is thinking is a mystery. She also
doesn't have a wide group of people around her who leak little tidbits about what she is thinking to the media.
So I think that's why there was so much interest in what she had to say last night, and it also served as such a counter balance to what we normal
normally hear out of President Trump.
He does not have a great deal of empathy. That is not a strength for President Trump, and Melania Trump truly demonstrated that last night.
Now, it is difficult to ignore the fact that even though she says these things that they don't necessarily marry with what the administration has
done up until this point, but that's been part of this convention, right, creating the theater and a presentation about Donald Trump, his
administration, and his campaign for the American voters, and Melania Trump did that pretty effectively last night.
ASHER: She didn't really sort of tell that many interesting or intimate stories about Donald Trump in terms of who he is as a man. You know, based
on that, did she do a good job of actually humanizing the President, do you think?
NOBLES: She didn't. You are right about that, and I think that was probably one of the things that people were looking for last night.
But, again, this wasn't necessarily about Donald Trump. This was about Melania Trump, and at one point, she described herself as an independent
woman, which I think was a subtle signal about the way she wanted to present herself last night.
She rarely talked about President Trump at all, but she did encourage people to vote for him and she also said that she believed that he was
working as hard as he possibly could to end the coronavirus pandemic.
But you are right, generally, First Ladies talk about their connections to their husbands and we did not see that last night.
ASHER: Ryan Nobles live for us there. Thank you so much.
Republicans have so far barely mentioned coronavirus during their national convention, but it was an unavoidable subject for the White House Chief
Economic Adviser, Larry Kudlow. Kudlow's brief remarks, Tuesday contained multiple falsehoods and misleading statements about Donald Trump's economic
record and the pandemic.
(BEGIN VIDEO CLIP)
LARRY KUDLOW, DIRECTOR, NATIONAL ECONOMIC COUNCIL: Inheriting a stagnant economy on the front end of recession, the program of tax cuts, historic
rollback of onerous regulations that crippled small business.
Unleashing energy to become the world's number one producer, and free, fair, and reciprocal trade deals to bolster manufacturing, agriculture,
technology, and other sectors.
The economy was rebuilt in three years.
(END VIDEO CLIP)
ASHER: First of all, it is certainly not true that Donald Trump inherited a stagnant economy near recession. GDP growth during the Trump administration
was a trend that started under President Barack Obama after the Great Financial Crisis that abruptly ended with the pandemic.
Here's Kudlow's low's take on that.
(BEGIN VIDEO CLIP)
KUDLOW: Then came a once in a 100-year pandemic. It was awful. Health and economic impacts were tragic. Hardship and heart break wherever where.
But presidential leadership came swiftly and effectively with an extraordinary rescue for health and safety to successfully fight the COVID
virus.
(END VIDEO CLIP)
[15:10:10]
ASHER: So you heard Kudlow there speaking about the pandemic as though it was over. While new cases are declining, more than 1,000 Americans died
from the disease on Tuesday alone.
And the U.S. response is among the world's worst. Just compare to it Europe and Asia, the U.S. has four percent of the world's population, but 24
percent of coronavirus cases.
(BEGIN VIDEO CLIP)
KUDLOW: A great bipartisan rescue also saved the economy. Right now, our economic health is coming back with emergency spending and tax cuts,
Americans are going back to work.
There is a housing boom. There is an auto boom. A manufacturing boom. A consumer spending boom. Stocks are in record territory.
A V-shaped recovery is pointing to better than 20 percent growth in the second half of this year.
(END VIDEO CLIP)
ASHER: First, after passing an initial rescue, the Trump administration has so far been unable to agree on a second badly needed stimulus package.
Second, while market indices are at record highs, about only half of Americans actually own stocks and most of the market gains have gone to
wealthier households.
Finally, no experts share Kudlow's optimistic outlook. This week, the National Association for Business Economic said a speedy V shaped recovery
is more unlikely than ever.
Now, economists say the economy won't actually fully recover until the middle of 2022 at the earliest.
CNN's economics commentator, Catherine Rampell joins us live now from New York. So first of all, what do you make of the number of falsehoods that
were in Larry Kudlow's speech?
And also the fact that he talked about the economic recovery and economic stagnations and issues in this country financially as though they were in
the past tense and had already been dealt with?
CATHERINE RAMPELL, CNN ECONOMICS COMMENTATOR: You know, it is interesting. It sounds like a great economic record, unfortunately, it is not President
Trump's record to date. Right?
Look, the economy was doing relatively well under the first three years of this President. Not that Presidents control economies, but at least, he can
say he presided over a growing economy, falling unemployment, et cetera, but those were the same trends virtually that we had under the final term
of Obama.
Since then, we have had the highest unemployment rate in decades. We still are losing -- we are still missing, rather, about a third of low-wage jobs
that had disappeared earlier this spring.
Kudlow talks about this booming recovery and it is true that if you are a higher wage, white collar college educated working from home type
households that you are doing better.
Your job has probably been fine if you lost it temporarily, it is probably back.
However, the households that are not fine are the so-called forgotten men and women that Trump normally claims to champion, blue collar, working
class, less likely to have college degree type workers.
Those people still have very high unemployment rates, and it feels a little bit tone deaf, I would say, for this President and for his economic
advisers to be touting this wonderful victory party, this victory lap that they seem to be running right now given the reality on the ground for what
are supposed to be his people.
ASHER: Right, because on the one hand, he is talking about a V-shaped recovery but it was just last week, Thursday, the initial jobless claims
came in at above one million.
So, just based with that, just talk to us about the unevenness of this recovery. I mean, obviously, one of the main things the President has to do
if he is reelected is to make sure that this recovery is much more inclusive than it appears to be.
RAMPELL: Right. Right now we sort of have two economies. You have a buoyant recovery, reflected by a lot of the stats that Kudlow was talking about,
sitting atop of what is essentially a possible depression.
You have the stock market is doing well, but of course, as you mentioned, many Americans don't have stocks. They don't have much or anything in their
private retirement savings. They are not feeling any of the wealth gains that are accumulating because of that.
Meanwhile, you have those same households that are missing out in the stock market boom facing eviction, facing possible homelessness, food insecurity,
possible bankruptcy shortages, and so on.
So you really have this two-track economy happening right now, and again, it is great to celebrate what gains we have seen, but we should not write-
off the struggles that are being felt by predominantly lower income working class households that have not been made whole and may never be made whole
or at least not for quite a long time given the fact that so many businesses have been permanently put out of operations for example.
ASHER: Larry Kudlow is right about one thing, and that is the pandemic was of course an unforeseen economically catastrophic event that nobody could
have prepared for.
However, there have been even before that, a number of promises the Trump administration has not kept based on what they promised during the campaign
in 2016.
[15:15:22]
ASHER: First and foremost, this idea of having four percent economic growth a year in the U.S. Second of all, reducing the national debt, decreasing
the trade deficit, having Apple make most of their products in the United States.
Based on that, based on the failure to keep its promises even before the pandemic, why should voters give this administration another four more
years, even if you were just talking about the economy?
RAMPELL: That's an excellent question. Look, the record under Trump, the economic record was not bad. But, as you point out, it fell far short of
the tremendous promises that this President had made.
And part of the reason why he was falling short of those promises is that Presidents don't control the economy, right? Trump like to take credit for
gains in stock markets, for gyrations in the unemployment rates, but most of those kinds of business cycle trends or market trends are beyond his
control.
Those were structural changes that were happening. The coronavirus pandemic, again, beyond his control. That said, a number of the policy
decisions that were made in the face of that crisis, undoubtedly, made things much worse.
Downplaying it to begin with, calling for businesses to reopen before the spread of the pandemic was truly under control. All of those kinds of
things will prolong the duration of the economic pain in addition to the duration, potentially, of the virus itself up until at least we have a
vaccine.
So if you are a voter out there, you have to look at this record and say, he wasn't delivering before. They are taking this victory lap now, when I
have zero dollars in my bank account. What exactly do I have to look forward to given what's been delivered to date and given the challenges
facing this country already.
ASHER: Catherine Rampell, live for us, thank you.
RAMPELL: Thank you.
ASHER: All right, still to come here, the C.D.C.'s new coronavirus testing guidance has some health experts scratching their heads. What we have
learned about the Trump administration's role in the change.
(COMMERCIAL BREAK)
ASHER: The C.D.C. has suddenly issued new COVID testing guidance, quietly changing its website. C.D.C. guidance now says that people without symptoms
may not need to be tested even if they have been in close contact with someone known to have had the coronavirus.
[15:20:10]
ASHER: The move has baffled some doctors as the U.S. continues to struggle with a high case count. A senior health official tells CNN the C.D.C. was
pressured from the top down to change its testing guidance.
Let's get to CNN's Nick Valencia in Atlanta for more on this. So Nick, I mean, how dangerous is this? Just walk us through the potential
ramifications of this dramatic change in testing guidance.
NICK VALENCIA, CNN CORRESPONDENT: Well, we are hearing from public health experts and professionals proximate to this coronavirus response who are
calling it flat out ridiculous, saying this is another example of the White House putting politics ahead of science.
And as you very clearly laid out there, Zain, a Federal health official telling me that the sudden change in C.D.C. guidance basically discouraging
people from getting testing is coming from pressure at the highest ranks of the Donald Trump administration.
The White House, to H.H.S. to the C.D.C. We did reach out to the C.D.C. for a statement about their sudden change in guidance. They were unwilling to
provide a comment on their own change in guidance punting instead to Health and Human Services.
It was just within the last hour that the Assistant Secretary for H.H.S. held a phone call with reporters in which he says that this is not to
discourage testing. It is actually for more appropriate testing. You could really just characterize that as more spin.
If this all played out the way Admiral Bret Giroir says it does -- or did rather, this was presented to the White House Taskforce on Thursday, the
same day that Dr. Anthony Fauci was having surgery on his vocal cords.
So the top doctor at the Taskforce seemingly unaware that these changes were coming. The C.D.C. again not commenting and again, Zain, you know,
H.H.S. saying that this is about more testing. But really, this falls in line with what we have been hearing weeks during the pandemic directly from
the President of the United States who has called for a slowdown in testing, saying that if there was less testing, there would be less cases.
And it seems as though, Zain that this recommendation or these new recommendations last that President Trump will be getting exactly what he
wants.
No one, no public health expert in the country right now will say that this is a good idea. They will tell you we need more testing in order to control
this virus, so very dangerous indeed -- Zain.
ASHER: Yes, that's what happens when politics get in the way of health and safety. Nick Valencia live for us there. Thank you so much.
The U.S. markets are up on Wednesday on some new and hopeful economic data. The NASDAQ and the S&P 500 are seeking a fourth straight day of record
highs.
The Dow is up two after a slight fall on Tuesday.
Open Table is reporting a recovery in the restaurant industry, but it's a different picture depending on where you are in the world.
The U.K. government has been offering a discount scheme all August to get Britons eating out, and that's led to a significant rebound among
restaurants on the Open Table app.
Compare that though to the U.S. where openings have plateaued between 6 to 7 percent for the past few months. OpenTable CEO Debby Soo joins us live
now from New Hampshire.
So just where are we, Debby in terms of restaurant bookings now compared to the start of the pandemic. What are you seeing in terms of trends?
DEBBY SOO, CEO, OPENTABLE: Well, the data really varies depending on what region or country you are looking at.
In the U.S. like you mentioned, we are still seeing a drop year-over-year in terms of seated reservations. But there are countries like the U.K. or
Germany for example, where we are actually seeing seated reservations up year-over-year.
ASHER: So you take over at OpenTable as CEO during a relatively, I could say tumultuous time. It has been a very difficult time for the restaurant
industry.
You came from Kayak. You were an executive there. How has the recovery in the restaurant space compared to the travel space? What are you noticing?
SOO: Well, for both industries, they have been hit very, very hard by this pandemic. The restaurant industry has been hit particularly hard, I would
say.
Restaurants even before COVID were operating on razor thin margins, and now you add on top of that safety precautions and measures that restaurants
have to be taking, the capacity restrictions that they are facing, it is becoming even more difficult.
In terms of recovery, I would say, if I had to predict having been on both on the travel and the dining side of the business, I would predict that
dining would recover faster.
As restrictions loosen, as case counts stabilize or go down and people are feeling safer and more comfortable to dine out, they want to dine out.
We recently conducted a survey at OpenTable and found that 25 percent of Americans now are dining out once a week. So the demand is there.
ASHER: The demand is there now. I mean, obviously, it is going to take some time to get back to normal of course. But, you know, you alluded to this.
Even before the pandemic that restaurant business as you know is quite a difficult one and it is prone to failure.
Restaurants in general have a high rate of closures in terms of not being able to stay afloat and make it. So just walk us through what sort of --
what are the levels of permanent closures we are going to see as a result of this pandemic in terms of restaurants that stay shut for good after
this?
[15:25:18]
SOO: We have predicted that one out of four restaurants will not make it through this pandemic. We came out a few weeks ago and said that. And now
looking at the numbers, we think that that estimate might even be conservative.
At OpenTable, our main mission right now is to help restaurants forge through this crisis and do everything we can to help them. We may have
waved our subscription and reservation fees through the remainder of the year.
We have launched features like safety precautions so restaurants can easily let diners know what precautions they are taking, whether their servers are
wearing masks, or table spacing, disinfectant provided, all of that.
So we are trying to do everything we can to keep restaurants open and surviving during this terrible time.
ASHER: Not just OpenTable, but also various governments around the world are also trying to do their part. We touched on the fact that the U.K. has
got this eat out to help out program, where if you are part of the scheme, if you are a restaurant and you are part of the scheme, the U.S. government
will actually pick up 50 percent of the tab. I believe it is capped at ten pounds in terms of the meal price.
SOO: Yes.
ASHER: So, what do you think in terms of where government policies around the world in the various countries that OpenTable operates in, where
government policies have actually been that much more effective in getting restaurants back?
SOO: I think any aid that governments can be giving to the restaurant industry right now is necessary and welcome. You've mentioned some of the
initiatives that the U.S. government and the U.K. government have done.
The eat out to help out campaign, we have seen, and our data has really helped seated reservations go up. So that campaign if where if you dine
Monday through Wednesday, the government will help foot part of the bill.
And what we have seen in our data is that reservations during Mondays through Wednesdays are spiking through the roof.
I believe that scheme or that program is over at the end of this month. So for those of new the U.K., I encourage you to take advantage.
But again, anything the government can be doing to be helping this industry at this time I think is so necessary. And for all of us and all of you out
there watching, what we can be doing to support our restaurants is to dine out at them, order delivery, or order takeout to support them.
ASHER: Yes, my husband and I actually order takeout once a week just to support our local restaurants. So I am proud to say, I am doing my part.
Debby Soo, live for us there, thank you so much.
All right, coming up, we head back to U.S. politics. Former White House Communications Director Anthony Scaramucci is here with his take on night
two of the Republican National Convention.
Thanks next.
(COMMERCIAL BREAK)
[15:30:00]
ASHER: Hello everyone, I'm Zain Asher. There's more QUEST MEANS BUSINESS in a moment, when we'll look at how movie theaters are putting their hopes on
one major blockbuster to save the summer season. And as we reach the halfway point of the RNC, former White House communications chief Anthony
Scaramucci shares his thoughts on the Trump campaign strategy. Before that, though, the headlines this hour.
Hurricane Laura is now a dangerous category 4 storm, it is barreling towards the Louisiana Texas state line and is expected to bring
unsurvivable storm surges, according to the National Hurricane Center. Officials say the storm will be catastrophic and they are urging citizens
in the path of the storm to evacuate.
A Hong Kong lawmaker arrested Wednesday has called allegations stemming from demonstrations a year ago, absurd. Police told CNN, the pro-democracy
official has been charged with perverting the course of justice and accessing a computer with dishonest intent.
Some breaking news in Kenosha, Wisconsin, police have announced the arrest of a 17-year-old suspect connected to Tuesday night's shootings. The
shooting has left two people dead and one injured. The violence happened during the third night of demonstrations in response to the police shooting
of a 29-year-old black man, Jacob Blake.
The issue of U.S. racial tensions came up Tuesday night at the Republican National Convention. First Lady Melania Trump mentioned the harsh reality
of the country's history and asked the nation to refocus on the future. She also calls for an end to violence and looting. Meantime, the President's
son Eric, raised the dark specter of mob violence, fear and destruction.
Let's turn now to Anthony Scaramucci. He's the founder of Skybridge Capital and a former White House communications director. He joins us live now from
Southampton, New York via Skype. Anthony, thank you so much for being with us. So, in terms of this version of Donald Trump that is being portrayed, I
mean, he's being portrayed in a heroic light. You've met the President, you've obviously worked for him, you've spent time with him. What do you
make of this version of him that is being portrayed at this convention?
ANTHONY SCARAMUCCI, FOUNDER AND MANAGING PARTNER, SKYBRIDGE CAPITAL (via Skype): I think it's a very clever version. I mean, I want to be objective.
I don't like what they're doing. The international committee probably would understand it less. But they're subverting the government buildings,
there's a direct violation of our law to do that. He's not allowed to have uniformed Marines opening doors for him at a political event.
And so, he's a law and order president. That's the great irony of it, but he's breaking all the walls inside the White House. But if you're asking me
about the imagery of what he's doing, it's false imagery, but I do think it's effective. The President has said 22,000 lies, since he started, and
this lie about those people that he was making U.S. citizens last night, many of those people -- you really understand as immigration laws couldn't
get into the country now. So, it's sort of a force.
But I understand why he's doing it. It's going to cause the polls to temporarily tighten. But he's basically finished. Because if you look at
the COVID-19 response, the mishandling of the pandemic and the disastrous economic consequences of that, the American people are going to vote him
out. He's got a high floor, Zain, but he has a very similar ceiling, meaning he's not going to budge from the 40 to 43 percent zone. You can't
make the electoral college math work at those levels.
ASHER: Yes, I mean, of course, there's people who are going to vote him no matter what, but it's the question about the undecided voters that you
know, it looks as though he's not going to do too well with it. So, you touched on this whole thing about you know, the presidential pardon, having
Mike Pompeo speak from Jerusalem, Melania Trump in the Rose Garden. When you think about this sort of breaking up tradition, if not laws, is there
any length this president will not go to, as we gear up to November 3rd?
SCARAMUCCI: Well, you know, Ambassador Bolton said that in his book. You know, I -- unfortunately, because John didn't testify during the
impeachment crisis.
[15:35:08]
SCARAMUCCI: His book didn't get the attention and fanfare that it needed. But if you read chapter eight of John's book, it is the orange jumpsuit
chapter, Zain. I mean, it's literally there's lawlessness and high criminality going on. And so, what's happening now, he's moving the
morality of very good people. Secretary Pompeo is a great human being, a great citizen. He made a very big mistake last night. You know, you don't
go to Jerusalem and beam in as the Secretary of State. No one has ever done that.
And he knows better. He went to West Point. He served in our army. They thanked him for his service. He was at Harvard Law School. He understands
the Constitution, but he's subverting it to please the President, and that is demagoguery. And so, there's a group of willing Republicans, myself
included, that are broken off from the Republican Party that are supporting Joe Biden. He didn't have that in 2016. And that's basically all you need.
You know, the great irony, Zain, Steve Bannon said three to five percent of the Republicans break off. It's game over for President Trump. We're hoping
to make it 8 to 10 percent before this is over.
ASHER: Well, we'll see what happens there. But I want to touch on Melania Trump's speech, obviously, you were watching, she made a line that made
headlines pretty much all over the world, which was, total honesty is what we as citizens deserve from our president. Obviously, you know Melania.
Surely, she must have known that that line was going to be met with quite a degree of division.
SCARAMUCCI: Well, listen, you know, I don't like talking about people's personal lives. I -- if you've never been tabloided, Zain, you sort of try
to stay out of that. But here's what I would say, go look through the speech, take a yellow highlighter and you can find three or four barbs that
are direct hits on President Trump. And so, it tells you a little bit about their relationship, but tells you a little bit about the irony. And she
knows what she's doing. She walked up the steps of the plane once, and I don't care.
You shared that fashion statement on the back of her jacket. Not a lot of love lost between the two of them since the Stormy Daniels situation. It's
pretty well-documented. And that was a shot. You know, there's a direct hit, actually. So, you know, 22,000 lies later, it was a little bit of an
ironic statement. But in fairness to the First Lady, I thought she did a good job last night. She's a compassionate person. And she lent her heart
out to the people that have suffered during the pandemic. Nobody else did that at this convention in the last two days. So, I tip my cap to her for
that.
ASHER: Yes, I mean, it was definitely a compassionate speech. You know, she tried to do her best to appeal beyond the base to other voters, in terms of
undecided voters, as did Tim Scott on Monday night as well. I mean, based on that, what do you make of the division we're seeing within the
Republican Party between the Melania Trumps and the Tim Scotts on one hand. Well, I guess I'd put Nikki Haley in that category too. And then the Donald
J. Trump Jr. And those who are really just there to give red meat to the base.
SCARAMUCCI: Well, I think Tim Scott and Nikki Haley have a political Rubik's cube in their hand, and they're trying to find the right colors to
match what they really like. I think both of them probably do not like or actually despise elements of Trumpism. But the flip side is, they didn't
want to break from the tent because they thought that that would have 2024 consequences. I see it the opposite way. This is sort of like he's the
Night King. He's a dark demagogue figure.
When he leaves the stage, it's going to be very similar to what happened to Joe McCarthy. The people around Joe McCarthy got eviscerated and they made
a very bad decision to allow themselves to be bullied and to allow the American public to be bullied by the demagogue. So, I think it's a bad
decision for those people. We'll have to see what happens there. Certainly not to the hard-right radical spectrum. I like Governor Haley a great deal.
I consider her and Mike Haley personal friends of mine.
But you know, listen, we have a political disagreement right now. We'll fight it out until November 3rd, and then we'll have to see what happens as
we set up for 2024.
ASHER: Yes, it'll be interesting to see all these -- all these senators and various politicians who have decided to stick with President Trump through
this. If he doesn't make it, as you're saying, what will happen to their careers, right? Anthony Scaramucci live for us there. Thank you so much.
Appreciate it.
SCARAMUCCI: Thank you.
ASHER: Meantime, President Trump is apparently considering executive action to avoid mass layoffs at U.S. airlines. White House Chief of Staff Mark
Meadows says he has spoken with several carriers. American Airlines warns it could cut thousands of jobs by October if it cannot get federal aid.
CNN's Alison Kosik has more.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Hi, Zain. It's not just American Airlines, other airlines and their labor unions are trying to lobby
Congress for $25 billion and that's on top of the $25 billion they already got from the CARES Act relief package. Focusing on American, it received
$5.8 billion in March with a promise to save jobs for six months.
[15:40:07]
KOSIK: Well, now that time has run out, and American has announced these layoffs and these furloughs that could happen on October 1st, unless it
gets that additional help. Now, those 19,000 people affected include thousands of frontline workers like flight attendants, and pilots. And it's
not just employees being impacted by American's difficulties. Passengers will also feel the effects of the cuts. The airline also announced it plans
to suspend service to 15 cities in October, saying there's low demand.
Airlines, so far, have been blocked from stopping service to destinations as was stipulated when they accepted the funding from the government. But
those restrictions once again run out on October 1st.
We are also seeing the pandemic weighing on travel demand at Delta Airlines. The airline is saying it will furlough 1,900 pilots when the
funding runs out from March. Now, the thinking with all this was, of course, that the virus would be under control, not the case.
If you look at an internal memo from Delta to its employees, it said we are six months into this pandemic and only 25 percent of our revenues have been
recovered. Unfortunately, we see few catalysts over the next six months to meaningful change this trajectory. Delta did say, however, that it may be
able to avoid or reduce the furloughs if cost reducing agreements are able to be made with their union, or if federal funding is extended. Zain?
ASHER: Barcelona's $100 million man wants out. Top footballer Lionel Messi could be wearing a new jersey soon and another club might be signing even
bigger paychecks to get him. We'll have more than that ahead.
(COMMERCIAL BREAK)
ASHER: The world's highest paid footballer is seeking a change of scenery. Lionel Messi wants out of Barcelona after 20 years with the club. Here's
our Amanda Davis with more.
AMANDA DAVIES, CNN INTERNATIONAL SPORTS CORRESPONDENT: Zain, the fans who gathered outside the Camp Nou on Tuesday night made it very clear how they
feel about this news. For so long, Lionel Messi and Barcelona have been synonymous, so integral to each other's success since Messi joins as a 13-
year-old and made his competitive debut in 2004, winning Champions League trophies, La Liga crowns and Messi himself winning those records six World
Player of the Year titles.
[15:45:08]
He on more than one occasion has said he intends to see out his career at Barcelona. But in recent times, the results, the trophies just haven't been
there, and in particular, the Champions League, the one he has so publicly said he wants to win again. So, that 8-2 drubbing, that humiliation by
Bayern Munich, a couple of weeks ago, the exit of another manager in Quique Setien.
And on Tuesday night, Messi at the age of 33, with one year left on his contract, has handed in a transfer request, asking to leave immediately.
The terms of how that exit will happen are still open for debate. Is there a big release fee that is in his contract or with the situation that has
transpired with this coronavirus, affected season? Have things changed? That is all very much up for discussion between the parties in question.
What we do know is that there are not many clubs who can realistically afford him despite all the mains, during the rounds on social media, every
club across the planet staking their claim that perhaps the greatest player there is, in real terms. Any of those clubs that we're looking at would
provide a fantastic storyline. Will we see a rekindling of his partnership with Neymar at Paris Saint-Germain or perhaps he moves to Italy to Inter
Milan, where there will be a renewal of that rivalry with Cristiano Ronaldo, of course, who's now at Juventus.
Or how about Manchester City, where Pep Guardiola, the man who was so intrinsic to Messi's success at Barcelona is of course, now in charge. Lots
of options. Lots still on the table. There is no doubt every step of the way. This move, whichever move it will be, will have the eyes of the world
watching. Amanda Davies, CNN, London.
ASHER: A landmark day for movie lovers, Hollywood is rolling out its first blockbuster in months and it's Christopher Nolan's Tenet and U.S. theaters
are hoping it can be a lifeline.
(COMMERCIAL BREAK)
[15:50:10]
ASHER: The summer's first global blockbuster is officially on the big screen. Christopher Nolan's Tenet launches internationally today with a
plug from one of Hollywood's biggest stars.
(BEGIN VIDEO CLIP)
TOM CRUISE, HOLLYWOOD ACTOR: Here we are. Back to the movies.
(END VIDEO CLIP)
ASHER: Tom Cruise may have seen Tenet in London, but U.S. theaters are relying on the film to boost their box office numbers next month. U.S.
ticket sales last weekend were down 93 percent from the year before. Tenet is distributed by Warner Brothers pictures which says parent company with
CNN. Shelli Taylor is the CEO of Alamo Drafthouse theater cinema in the U.S. She joins us live now from Austin, Texas via Skype. Shelli, thank you
so much for being with us.
So, what do you expect in terms of audiences coming back? Obviously, next month, you've got a big blockbuster, like Tenet. What does it look like in
terms of where audience levels will be? Do you think?
SHELLI TAYLOR, CEO, ALAMO DRAFTHOUSE CINEMA (via Skype): Yes, that's a great question. What we can look back on is this past weekend. We opened a
handful of our theaters and a huge thank you to all of our teammates in our theater Support Center and our franchisees who did that. And in doing so,
we have a lot of folks coming back and excited to just be back at the movies.
ASHER: But how will the experience be different for people just in terms of how space is utilized? And, you know, obviously, there's going to be
mandatory masks and that sort of thing. What can people expect?
TAYLOR: Yes, that's super important. So, we have spent a lot of time thinking about the safest possible way to experience the theater while
continuing to have a great theater experience. So, you'll find everything from online ticketing and purchasing to minimize contact, to enhance
sanitation and cleaning procedures, masks, of course, we ask everyone to bring and wear a mask, except when they're eating or drinking inside the
theater, as well as temperature checks and a number of different safety procedures.
ASHER: You've also offered audience goers the ability to rent their own private theater for, I believe it starts at $150. I mean, is that something
that people have shown more interest in, in this environment?
TAYLOR: We were -- we were blown away by the number of private theaters that we've been selling. It's great to see families and friends and groups
of people come up to 30. We have a great lineup for them of theaters or excuse me, movies to select. And so far, it's been really popular.
ASHER: How do you decide which theaters to open? I mean, obviously, part of it is dependent on local laws and what's happening in each individual area
or state. But is there a strategy in terms of why you might open one theater and not another at this time?
TAYLOR: Yes, of course. It is local laws. And then also, just looking at COVID cases and how they're, you know, they need to be flattening or
declining. But we're also looking at profitability and in which theaters we can open and at least break even or do better, which is important for the
business as we weather this storm.
ASHER: And just in terms of the long-term trends for movie theaters, I mean, people have been talking about this idea that streaming is going to
overtake the need for people to go to movies or there's not going to be that much interest. This is well before the pandemic. You know, what is the
pandemic mean for just the long-term interests in people actually wanting to go to the movie theater as they avoid crowds?
TAYLOR: Yes, I can just speak from my own experience, right? Like, me, along with many people, we've been watching movies at home. But I can also
tell you that people are yearning to return to the cinema, you know, that experience with, you know, big sound and picture, you know, community with
good food. And so, I think that even, you know, COVID or post COVID, people do want to go out to the cinema.
ASHER: All right. Shelli Taylor live for us there. Thank you so much.
TAYLOR: Thank you.
ASHER: All right. So, it's the last few minutes of trade on Wall Street. The Dow has recovered to some of its earlier losses and is set to close its
session slightly higher. Meantime, the NASDAQ and the S&P 500 are on track for a fourth straight day of record highs. Salesforce shares are up 26
percent on news it will join the Dow 30 on August 31st. That's next week. Investors are looking ahead to Thursday. And Jerome Powell will speak at
the economic summit in Jackson Hole.
We'll bring you more on that in the coming hours. All right. IMAX has already begun reopening in China, with more than 360 theaters nationwide.
Speaking earlier on the first move, its CEO said he's already seeing reasons for optimism.
[15:55:10]
(BEGIN VIDEO CLIP)
RICHARD GELFOND, CEO, IMAX: So, in China, the first Chinese blockbuster was released this past weekend, called the 800. And it did $115 million, which
was the sixth highest local language opening in history. And that was with social limitations, only 50 percent of the screens, and you're completely
correct. The numbers are not going to be as high as historic numbers.
But the fact is, where it's safe to go see a movie in those territories where people feel safe, they're going to go and there have been protocols
all over the world. As a matter of fact, in North America, the association has set some extremely stringent guidelines which don't only include masks,
but they include things like cleaning, social distancing, reduced capacity. In Korea, we opened a movie called the Peninsula, a few weeks ago. It was a
very high-grossing movie. So, I think in places where people feel safe, they're going to come back to the movies.
(END VIDEO CLIP)
ASHER: And that is QUEST MEANS BUSINESS. I'm Zain Asher in New York. The news continues right here on CNN.
(COMMERCIAL BREAK)
JAKE TAPPER, CNN HOST: Welcome to THE LEAD. I'm Jake Tapper. We begin this hour with the 2020 lead, as we head into the third night of the Republican
National Convention. Tonight, Vice President Pence will deliver his nomination acceptance speech from Fort McHenry in Baltimore, Maryland with
an audience of more than 100 guests expected. Pence's remarks are still being written we're told.
But a source tells CNN that he plans to address the recent violence in Wisconsin, hoping to make a case for standing for the National Anthem and
he will attack the Democratic presidential nominee Joe Biden. One source saying he plans to quote, take some lumber to Joe. Pence's wife, Second
Lady Karen Pence will also speak, as well as outgoing White House counselor, Kellyanne Conway. And the Trump campaign official says President
Trump will participate in tonight's program as he has every night so far.
White House officials are defending President Trump's use of the White House, the people's house, as a political backdrop throughout the
convention, which breaks of course, long standing precedent and a 1939 law, called the Hatch Act.
END
