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Quest Means Business
March on Washington Coincides With Polarized Presidential Race; Shinzo Abe, Famous For Abenomics, Resigns; U.S. Dollar Weakens On Fed Inflation Call. Aired 3-4p ET
Aired August 28, 2020 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:10]
ZAIN ASHER, CNN INTERNATIONAL HOST: All right, let's take a look and see how the Dow is doing. The Dow is up about 150 points. It has pretty much
erased all of its losses for the year 2020. It is on track to cap off a record-breaking August. Those are the markets and these are the reasons
why.
A Trojan horse for socialism. Donald Trump says his election battle with Joe Biden is a fight for the economic soul of America.
And the end of Abenomics. Japan's longest serving Prime Minister Shinzo Abe resigns citing health reasons.
And Hurricane Laura leaves a trail of destruction through Louisiana and Texas bringing oil production in the U.S. energy heartland to a halt.
Coming to you live from New York, it is Friday, August 28th. I'm Zain Asher in for Richard Quest. And this is QUEST MEANS BUSINESS.
Good evening. Right now, a historic march on Washington in a time of social unrest unlike anything the U.S. has seen in decades. The demonstrations
stand in stark contrast to the divisive tone at the Republican National Convention.
In President Trump's pitch to the nation, he cast his opponent Joe Biden as a man bent on destroying the American way of life. Take a listen.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: This is the most important election in the history of our country. There has never been such a
difference between two parties or two individuals in ideology, philosophy, or vision than there is right now.
(END VIDEO CLIP)
ASHER: Jeff Zeleny has all the details.
(BEGIN VIDEOTAPE)
JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT (voice-over): President Trump formally accepted his party's re-nomination, turning the White House
South Lawn into a full-blown Trump rally.
(BEGIN VIDEO CLIP)
TRUMP: I profoundly accept this nomination for President of the United States.
(CHEERING AND APPLAUSE)
(END VIDEO CLIP)
ZELENY (voice-over): On the final night of the Republican Convention, the President spoke before more than 1,500 supporters, with few masks and no
social distancing.
This, after months of the Trump administration's own health experts urging people to avoid large gatherings to slow the spread of the coronavirus.
Trump praised and misrepresented his handling of the crisis, while the U.S. continues to face a high human cost from the pandemic.
(BEGIN VIDEO CLIP)
TRUMP: We are meeting this challenge. We are delivering life-saving therapies, and we'll produce a vaccine before the end of the year or maybe
even sooner.
(END VIDEO CLIP)
ZELENY (voice-over): He also warned a Joe Biden-led response would cripple the economy.
(BEGIN VIDEO CLIP)
TRUMP: Instead of following the science, Joe Biden wants to inflict a painful shutdown on the entire country.
Joe Biden's plan is not a solution to the virus, but rather, it's a surrender to the virus.
(CHEERING AND APPLAUSE)
TRUMP: My administration has a very different approach: to save as many lives as possible, we are focusing on the science, the facts, and the data.
(END VIDEO CLIP)
ZELENY (voice-over): Yet Biden has only said he would shut down the country if scientists recommend it.
(BEGIN VIDEO CLIP)
JOE BIDEN (D), PRESIDENTIAL NOMINEE: I would be prepared to do whatever it takes to save lives. Because we cannot get the country moving until we
control the virus.
(END VIDEO CLIP)
ZELENY (voice-over): As the President's daughter, Ivanka Trump, tried to soften his image --
(BEGIN VIDEO CLIP)
IVANKA TRUMP, PRESIDENT TRUMP'S DAUGHTER: I recognize that my dad's communications style is not to everyone's taste.
(END VIDEO CLIP)
ZELENY (voice-over): People gathered outside the White House to protest racial injustice.
[VIDEO CLIP PLAYS]
ZELENY (voice-over): Trump did not mention Jacob Blake, who was shot by police in Kenosha, Wisconsin, earlier this week, or two of the people
allegedly killed by a 17-year-old during a protest. But he did warn a Biden presidency would lead to an attack on public safety.
(BEGIN VIDEO CLIP)
TRUMP: We must never allow mob rule. We can never allow mob rule.
(APPLAUSE)
TRUMP: In the strongest possible terms, the Republican Party condemns the rioting, looting, arson, and violence we have seen in Democrat-run cities,
all, like Kenosha, Minneapolis, Portland, Chicago, and New York, and many others -- Democrat-run.
(END VIDEO CLIP)
ZELENY (voice-over): It was one of many blistering attacks on Biden, a moderate Democrat, whose record Trump repeatedly mischaracterized as
radical.
(BEGIN VIDEO CLIP)
TRUMP: Biden is a Trojan horse for socialism.
(END VIDEO CLIP)
ZELENY (voice-over): Ahead of a fireworks celebration, Trump told voters, November's election could have historic consequences.
(BEGIN VIDEO CLIP)
TRUMP: At no time before have voters faced a clearer choice between two parties, two visions, two philosophies, or two agendas. This election will
decide whether we save the American dream or whether we allow a socialist agenda to demolish our cherished destiny.
(END VIDEOTAPE)
[15:05:13]
ASHER: We will have more on Trump's big campaign pitch in a moment. But first, let's get state to the historic March on Washington. CNN's Brian
Todd is at the scene.
So, last night, Brian, Trump did not mention the name of Jacob Blake. He did not mention the name of George Floyd. When you have the President of
the United States, the most important political figure in this country, not acknowledging police brutality as a real issue, what can these protests or
this march in particular actually achieve?
BRIAN TODD, CNN CORRESPONDENT: Well, Zain, you know what, a lot of protesters we talked to have expressed frustration at what the President
did, and what his aides and his allies did at the Republican Convention in not mentioning the police violence as much as they thought they that
should. That's a big point of frustration among the crowd here today.
What they can do about is things like this, this march on Washington has been a very positive message today, a very powerful message. It is a
message of hope, but it is also a message of pain and frustration.
I want to set the scene for you a little bit. Our photojournalist, Jake Shire and I can kind of zoom over here. This crowd has just finished
marching or still marching actually from the Lincoln Memorial to the Martin Luther King, Jr. Memorial.
That thick throng of crowd right there, that's where the Martin Luther King, Jr. Memorial is, some moving along the tiled basin moving away from
the march.
Others over here, still streaming in and just kind of milling around. But there's been some very powerful speeches today by the families of Jacob
Blake, Breonna Taylor, George Floyd and others. Those relatives -- their message are really being heard by the crowd here.
Their message has been largely that this is the moment, if we don't get change and police reform right now, and justice reform right now, they are
worried that we may never get.
I just spoke to two African American ladies from Columbus, Ohio. They are both grandmothers. They are hopeful that those messages are coming through.
They are hopeful that that change is go to be happening.
But what is interesting, Zain, is both of them told me this, they both have sons and grandsons who they talk to about how to behave when the police
stop you because their family members have been stopped quite often by police in Columbus, Ohio.
They say they have to have what they call "the talk" to them. The talk is how to behave when a police officer stops you. Keep your hands on the
wheel, do exactly what the officer says. If you have to reach for something, tell the officers exactly what you are reaching for and why
you're doing it et cetera.
All of that, they have had to tell their sons and grandsons, including kids in their family as young as nine years old. So that gives you some
perspective of what a lot of them African American families are feeling today.
They are going through this, having to tell their families these messages about how to behave with police, even to children as young as nine years
old -- Zain.
ASHER: Absolutely heartbreaking that in 2020, people have to have that talk. I know many, many black families have had to have that talk with
their sons. Let's hope there is concrete change. Brian Todd live for us there. Thank you so much.
As activists march on Washington, the U.S. President returned to a favorite line of his to try and court black voters at last night's R.N.C.
(BEGIN VIDEO CLIP)
TRUMP: And I say very modestly that I have done more for the African American community than any President since Abraham Lincoln, our first
Republican President.
(END VIDEO CLIP)
ASHER: Since social justice has proven a losing issue for the President, his appeal to communities of color have often come down to jobs, which he
tied into doomsday warnings about his opponent, Joe Biden.
(BEGIN VIDEO CLIP)
TRUMP: Joe Biden is not a savior of America's soul. He is the destroyer of America's jobs. And if given the chance, he will be the destroyer of
American greatness.
(END VIDEO CLIP)
ASHER: But it is worth noting that even before the pandemic, job growth during Trump's first three years in office trailed the last three years of
the Obama-Biden White House by 1.5 million.
Former U.S. Labor Secretary Robert Reich joins us live now from California. Robert, thank you so much for being with us. So, you heard the President
there saying that he believes he has done more for black people in this country than any other president since Abraham Lincoln.
When you think about this recovery after the pandemic, it is clearly not going to be inclusive. What is the sort of recovery going to look like for
black people, for people of color, especially those working in minimum wage jobs, do you think?
ROBERT REICH, FORMER U.S. LABOR SECRETARY: Well, Zain, it's pretty clear right now that black people, people of color, Hispanic people, Latinos in
the United States have suffered more in this pandemic both in terms of deaths and also in terms of loss of jobs and wages than have anybody else.
But remember, everybody has lost ground, and everybody was losing ground starting in March. For Donald Trump to assume and to state that the economy
is good is really not just a lie, but it really is an outrageous lie because there are 13 million Americans who reported just recently, just
last week, that they or their families have experienced hunger within the previous week.
[15:10:28]
REICH: So, this is not just a matter of job loss, it is a matter of a lot of people falling into the worst poverty in living memory.
ASHER: And also, I mean the fact is the President really underestimated, you know, the seriousness of this pandemic. How much could he have really
protected the labor market had he acted sooner. Do you think?
REICH: Well, it is pretty clear, and this is the view of them, the consensus of economists that the pandemic is the major reason why we have
an economic downturn today, and also among people who are epidemiologists - - I can't say the word -- people who are really looking at public health.
These people also have a clear consensus that Donald Trump, through his failure to fact, his calling the virus a hoax initially, and his failure to
take appropriate action, is very much responsible for the coronavirus, COVID-19 getting out of control here in the United States to a far greater
extent than it has been out of control elsewhere among advanced nations.
ASHER: In terms of his second term, if he gets one, the President did talk about the fact that he intends and he promises to create 10 million jobs
within ten months, I believe, next year, if he is reelected.
Just -- I mean that's quite ambitious. Just walk us through how on Earth he goes about achieving that.
REICH: I am not sure how he goes about achieving that. I was Labor Secretary under Bill Clinton, and I know how difficult it is to create
jobs, particularly when you are in the White House. I mean, Presidents don't really create jobs for one thing.
But for another thing, when you are in the midst of a deep depression -- and remember, this depression right now -- I am using the word depression
advisedly because the United States economy is worse off today in terms of jobs and wages than we have been since the Great Depression of the 1930s.
It is very hard to get out of -- this kind of the depths of a depression/recession. So, I am not sure how Donald Trump plans to do it.
The way that the Federal government can possibly do it is to stop the pandemic, to curtail all sorts of public interactions, make sure everybody
wears masks, that's something that Donald Trump conspicuously did not do and his supporters did not last night at the Republican National
Convention.
Also, it is important to maintain social distancing, to do a lot of testing. Donald trump has actually ordered his C.D.C. and the departments
that are involved not to do as much testing as before. That's a step in the wrong direction.
It's also important to stimulate the economy and the Trump administration has not actually, and neither has the Senate Republicans found any way to
agree with the Democrats about what the stimulus ought to be.
The Democrats, since May, have a major stimulus plan on the table. But there has been no real reaction from the Senate Republicans.
ASHER: And a lot of people desperately need that extra $600.00 a week in terms of unemployment insurance.
Robert Reich, former Labor Secretary, thank you so much for being with us. Appreciate it.
REICH: Thank you.
ASHER: Shinzo Abe shocked Asian markets by announcing he will step down as Japan's Prime Minister as Japan enters in yet another recession.
We will discuss the legacy and the future of Abenomics next.
(COMMERCIAL BREAK)
[15:16:48]
ASHER: Japan's Nikkei closed down nearly 1.5 percent Friday after the surprise resignation of Prime Minister Shinzo Abe. Abe says he needs to
focus on fighting worsening health problems. The longest serving Prime Minister in Japan's history, Abe launched an aggressive fight to revive the
country's ailing economy with mixed results. Will Ripley looks back at a remarkable career.
(BEGIN VIDEOTAPE)
WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT (on camera): Japanese Prime Minister Shinzo Abe leaves behind a mixed legacy as Prime Minister. He got
the conversation started about major institutional and defense reforms that Japan previously hadn't even been willing to discuss, but he acknowledged
when he stepped down that a lot of those goals, he simply wasn't able to achieve.
RIPLEY (on camera): Japan's longest serving Prime Minister, Shinzo Abe had big dreams of a Japanese comeback. A comeback marred by a series of
setbacks.
The Tokyo 2020 Olympics, Abe's greatest achievement could become his greatest disappointment.
Japan spent billions only to see the games postponed by the coronavirus pandemic. The games were a cornerstone of Abe's plan to revive a struggling
economy and transform Japan into a global destination.
Abe promised a brighter future looking bleak after 2011's massive earthquake, tsunami and Fukushima nuclear meltdown.
Abenomics was an ambitious plan was to overhaul Japan's economy with stimulus and reform. It led to record-high government debt and failed to
make a lasting dent in decades of deflation. Problems made worse by Japan's aging population and shrinking work force.
Abe also tried to strengthen Japan's military, reinterpreting the nation's Pacifist Constitution drafted after World War II. The move led to massive
protests in the Japanese capital.
Abe's visits to a controversial war shrine angered his Asian neighbors. He was criticized for not making a new apology at the 70th anniversary of
World War II accused of trying to rewrite Japan's brutal war time past.
Abe began fighting for more military power during his first time as Prime Minister in 2006. At 52, he became Japan's youngest post war leader.
Corruption scandals within his party caused Abe's popularity to plummet.
He resigned a year later, blaming health problems.
Abe had ambition, and roots in a powerful political dynasty. Two former Prime Ministers in his family. Reelected in 2012, Abe declared, Japan is
back.
He tried to raise Japan's profile on a global stage, developing allies in Europe, India, and Southeast Asia, trying to mend frosty relations with
China.
Abe made history in 2016, appearing alongside former U.S. President Barack Obama in Hiroshima, and later, Pearl Harbor.
Abe was one of the first world leaders to form an alliance with Donald Trump taking the U.S. President out for a hamburger in Tokyo.
[15:20:05]
RIPLEY (on camera): Prime Minister Abe was in fact one of the first world leaders to befriend President Trump and he also had a good relationship
with the former President, Obama.
It shows that he was skillful in building alliances with leaders from all different types of backgrounds and it was all part of his goal to elevate
Japan on a global stage.
If the Olympics do go off next year as planned that will be a huge achievement for the former Prime Minister who intends to remain an active
lawmaker in Japan as he receives treatment.
Will Ripley, CNN, Hong Kong.
(END VIDEOTAPE)
ASHER: We often talk about the alphabet soup of economic recoveries on this program. During the pandemic, the hope has been for a quick V-shape. Now
many economists predict a longer-term U or W shape.
The letter we don't always mention is L, when growth falls and stays low and that's what Japan was facing when Shinzo Abe returned to office in
2012. Decades of stagnation.
Abe launched his grand economic experiment known as Abenomics with three arrows: massive monetary stimulus, increased government spending and
structural reforms as well.
Abe and his allies says that it was a success. Critics point to Japan's debt to GDP ratio which is the highest among industrialized nations. The
country was hurling towards another recession even before the coronavirus.
Catherine Mann is the Chief Global Economist for Citi. She is joining us live now from New Hampshire. Catherine, thank you so much for being with
us.
So just walk us through Japan's -- or rather Shinzo Abe's economic legacy. How successful was he in terms of boosting the economy after years of
stagnation when he took office in 2012? How successful were his aggressive monetary stimulus?
CATHERINE MANN, CHIEF GLOBAL ECONOMIST, CITI: Well, you know, there were the three arrows. There was the fiscal arrow, there was the monetary arrow,
and then the structural arrow. They were not of equal lengths and so we can't expect that the outcome was exactly as they expected.
But I think one of the challenges that Japan really faced, and Abe, with his programs, is that it is very hard to do monetary stimulus in a global
economy.
You know, it is very hard for those very low interest rates which were in place in Japan for an extended period of time to actually generate the kind
of domestic investment that would have been necessary in order to lift the economy.
So, in some sense, you know, we can also argue that whatever the multipliers might have been because of the structural issues, they were not
as large as they would have hoped for. So, you know, it really is a point, and then of course on the fiscal side, a couple of tax increases there were
not helpful in terms of generating economic activity either.
So, you know, on each one of the arrows, you know, some of the feathers were not really in place so they didn't go quite the way that he would have
expected.
ASHER: All right, so you mentioned the tax increases.
MANN: Yes.
ASHER: There were also issues with the missed target in terms of two percent inflation. There were labor shortages in the construction sector as
well in Japan. So what will the economic priorities of his successor be, do you think?
MANN: Well, it's really a tough thing to say at this point in time because in many cases, countries are dealing including Japan, are dealing with the
COVID crisis and how to manage their economy in the face of this incredible head wind.
So whoever comes in has a two-way punch to deal with. One is the very immediate concerns associated with COVID and how to manage the economy
through that.
But you know, in the longer term, all economies, Japan maybe more than most have to deal with both rising -- the question about rising living
standards, as well as how to promote debt sustainability.
And really, the only way that countries are going to be able to do that is with a package of policies that generate a lot more private sector
activity, private sector investment, and employment that goes along with it, including of women, in Japan particularly, and you need that in order
to generate economic growth to both raise living standards as well as to promote debt sustainability.
It's a big challenge for his successor.
ASHER: Debt sustainability, promoting living standards. But overall, just in terms of how Shinzo Abe has handled this pandemic just over the last
couple of months, what sort of key policies has he implemented to really keep the economy or try to keep the economy afloat?
MANN: Japan has taken a slightly less aggressive approach to some of the issues or strategies for dealing with COVID in part because the economy and
its participants are already used to things like wearing masks, a very common thing in Japan. And you know, hand washing and so forth.
So, some of the basic issues of how to handle COVID was something that was sort of business as usual in Japan. Now, in terms of testing and in terms
of addressing some of the other hot spots, again, Japan was in the position of being relatively better off earlier throughout this crisis. We'll see
how thing proceed going forward.
[15:25:15]
ASHER: Catherine, standby because we want to talk about some key changes in the Fed policy.
While the Japanese yen is rising on Abe's announcement, the U.S. dollar is dipping on new policy changes from the Federal Reserve. The bank will now
allow inflation to pass two percent likely keeping interest rates lower for longer.
Chairman Jerome Powell explained the decision at Jackson Hall Economic Symposium on Thursday.
(BEGIN VIDEO CLIP)
JEROME POWELL, U.S. FEDERAL RESERVE CHAIR: We are certainly mindful that higher prices for essential items such as food, gasoline, and shelter add
to the burdens faced by many families, especially those struggling with lost jobs and incomes.
However, inflation that is persistently too low can pose serious risk to the economy.
(END VIDEO CLIP)
ASHER: Catherine Mann is back with me. So, let's talk about these key changes made by the Fed. This likely will mean that the Federal Reserve
will keep interest rates lower for much longer. How significant is this do you think?
MANN: Well, you know it is really very interesting that the language of changing the word symmetric to average has generated so much of a view of
how this represents different policy at the Federal Reserve.
My view is that the market has overestimated what average means, as opposed to symmetric.
The emphasis on labor markets is something that the Fed has been saying for quite some time, even pre-COVID. Even when unemployment rate was 3.5
percent, they were emphasizing the importance of keeping the unemployment rate low in order to bring in the labor force people who had not been in
the labor force for some time, and for providing an opportunity for rising wages.
So, to me, what has happened in this announcement with Powell on the monetary framework is he has doubled down or reemphasized points that have
already been clear if you have been reading the tea leaves carefully.
So the market reaction, you know, is -- it's always something new with a new fees of language for the market to react, but for me, this is the same
policy as they had in place before.
ASHER: Well, that's interesting, so you think the market basically may have overreacted there. Catherine Mann, live for us there, we've got to leave it
there because we ran out of time, sadly, but thank you so much. Have a nice weekend.
Nearly six decades after Martin Luther King, Jr. shared his dream of racial equality, Americans are still fighting for justice. Just ahead, we will
take you to a new March on Washington that is now underway. That's next.
(COMMERCIAL BREAK)
[15:30:51]
ASHER: Hello, everyone, I'm Zain Asher. There's more QUEST MEANS BUSINESS in a moment when we'll discuss how player protests in the U.S. have brought
some of the world's biggest sports leagues to a standstill.
And Donald Trump is promising a COVID vaccine by the end of the year much sooner than even officials in his own administration are predicting.
Before that, though, the headlines this hour. An attorney representing the suspected shooter in Kenosha, Wisconsin says it was a classic case of self-
defense. 17-year old Kyle Rittenhouse allegedly opened fire during a protest against the police shooting of Jacob Blake, killing two people and
wounding another. Rittenhouse is facing charges including homicide and underage possession of a dangerous weapon.
U.S. House Democrats are moving forward with a resolution to hold Mike Pompeo in contempt of Congress. The House Foreign Affairs Committee
Chairman says the Secretary of State has repeatedly refused to hand over subpoenaed records, among other things. He cited documents related to
American foreign policy towards Ukraine.
And Russian opposition activist Alexei Navalny remains in a medically induced coma. Doctors in Germany say his condition is serious but stable
after a suspected poisoning, while the Russian government has denied wrongdoing. Navalny's Chief of Staff interviewed by CNN says that he
believes otherwise.
(BEGIN VIDEO CLIP)
LEONID VOLKOV, NAVALNY'S CHIEF OF STAFF: And the level of organization of the whole cover up operation. How's the doctors reacted. How's Kremlin
propaganda built up. Also, the official reaction by putting himself on talking to international leaders, direction of Putin's spokesperson Peskov,
their refusal even to open up a criminal investigation proves that Mr. Putin is responsible.
(END VIDEO CLIP)
ASHER: Thousands of people in Washington are walking in the footsteps of Martin Luther King Jr. today, demanding racial justice exactly 57 years
after the Civil Rights hero, rouse the nation with his I Have a Dream speech. Today's marchers are demanding an end to police brutality outraged
by a series of shootings of black men, including Jacob Blake. His sister and his father addressed the crowd earlier. Their words certainly very
heavy by pain.
(BEGIN VIDEO CLIP)
JACOB BLAKE, SR., FATHER OF MAN SHOT BY POLICE: There are two systems of justice in the United States. There's a white system and there's a black
system. The black system isn't doing so well. But we're going to stand up, every black person in the United States is going to stand up. We're tired.
I'm tired of looking at cameras and seeing these young Black and brown people suffer.
LETETRA WIDMAN, SISTER OF MAN SHOT BY POLICE: America, your reality is not real. Catering to your delusions is no longer an option. We will not
pretend. We will not be your docile slaves. We will not be a foot stool to oppression. Most of all, we will not dress up this genocide and then boom,
and call it police brutality.
(END VIDEO CLIP)
ASHER: Professional basketball players will resume Playoff games tomorrow after boycotting them for several days over Jacob Blake's shooting and the
wider issue of racial injustice in America.
We've now learned that NBA legend Michael Jordan was the primary mediator between players and owners and help broker the agreement to return to the
core.
CNN's Sports Coy Wire joins us live now. So, Coy, when you hear some people as a former NFL player yourself, when you hear some people many of whom
perhaps side with the President say that athletes in this country should just play and they should stay out of politics? What do you say to them?
[15:35:03]
COY WIRE, CNN SPORTS ANCHOR: That's the frustrating part for many athletes and former athletes who are looked up to and look to by so many here in the
United States for their leadership, for their guidance. It's something -- it's a role that players take very seriously.
And think about Zain, what these NBA players have been feeling recently. Before this COVID compromise season ever even started, many NBA players had
concerns about leaving their families and communities during such tumultuous times here in America. They would have to be isolated away from
them for months in the NBA's bubble in Florida.
So, as racial tensions rose to an even higher level in the wake of the police shooting of Jacob Blake, it became even over -- more overwhelming
for the players who are already missing the people they love most. And those that felt they needed to be doing more to help people in their
communities.
Oklahoma City Thunder superstar Chris Paul fought tears describing the strain that players were feeling just less than an hour ago. Listen to
this.
(BEGIN VIDEO CLIP)
CHRIS PAUL, NBPA PRESIDENT/OKLAHOMA CITY THUNDER: Guys are tired, I mean, tired. And I'm say -- when I say tired, we're not physically tired. We're
just tired of seeing the same thing over and over again. We're all tired of just seeing the same thing over and over again. And everybody just expects
us to be OK just because we get paid great money.
You know, we're human, we have real feelings and I'm glad that we got a chance to get in a room together to talk with one another and not just
cross paths and say good luck in your game today.
(END VIDEO CLIP)
WIRE: Now, after hours of meetings the last two days NBA players, coaches and league and team officials, they hash out a plan to put an end to that
historic stoppage of the Playoffs. Players will return to action Saturday but only after some unprecedented move, some of which are aimed directly at
the upcoming U.S. presidential election, the League and the players union announced they will immediately establish a social justice coalition which
will focus on initiatives that work towards meaningful police and criminal justice reform that will have team officials work with local elections
officials to convert NBA arenas into voting locations to increase safe access points for voters during this pandemic.
The two sides also announcing that advertising spots in each NBA Playoff game will be dedicated to encouraging people to vote and raising awareness
around voter access. These were just some of the moves Zain that led players to a place where they feel comfortable about returning to action.
Now, it seems that players are ready to play and continue to use the game as a platform to promote social justice and empower black communities.
Only now, Zain, they have even more specific action plans in place.
ASHER: And Cory, when you think about just -- you know, everything that's happening with the player is actually boycotting in the first place. Some
of them are refusing to play and many of them protesting this, does of this really add new meaning and really new weight to some of the sacrifices that
Colin Kaepernick made?
WIRE: It certainly does because in the case of Colin Kaepernick while his movement was profound, this was a man who was able to continue -- not able
to continue to play even though he wanted to. He was speculated that he was blackballed from the league, they said.
So, now you have athletes who can play but are choosing not to. They said we don't want to focus on the game anymore, it's too much of a distraction.
We want to divert the attention back to what's truly important hearing.
As Chris Paul mentioned, just about an hour ago, he was so moved that it wasn't just NBA players shifting the focus from games back to the fight for
racial equality and social injustice. It was the WNBA, MLB, Major League Soccer, NHL, the NFL all halting games and practices to try to get people
to understand how important this is and to make sure to keep focus on what needs to be the focus.
ASHER: Well said. Coy Wire live for us there. Thank you so much.
America's oil Hartline -- heartland, excuse me, is picking up the pieces after Hurricane Laura rip through the Gulf Coast. We'll take a look at how
the industry is faring with the CEO of Canary.
(COMMERCIAL BREAK)
[15:41:40]
ASHER: Hurricane Laura has left a trail of devastation across Texas and Louisiana. The storm came ashore early Thursday tearing off roofs and
leaving thousands of people without power. Still, damage is less than initially feared.
The storm's path went right through the heartland of the U.S. oil and gas industry. 84 percent of oil assets in the region were affected in terms of
shutdown and evacuations.
Dan Eberhart is the CEO of Canary LLC. He joins us live now from New York via Skype. So, Dan, just walk us through how badly were you impacted just
in terms of Canary's assets.
DAN EBERHART, CEO, CANARY LLC (via Skype): We were actually fairly lucky. Our facility in Lafayette -- you know, lost power for a little while, and
but our employees are fine and the facility will be OK.
But it's really disrupted a lot of our customers and it's -- and the most damaging impact has really been to the export terminals.
ASHER: And what sort of sustained impact? I understand that you guys emerged fairly lucky. But what sort of sustained impact do you think that
this will have overall just in terms of production platforms in the region in general?
EBERHART: Sure. So, about 310 platforms offshore were taken offline about 84 percent of the oil and gas production, about 60 percent of the LNG
production.
But really, the biggest detrimental effect from this is the export market. So, there's about a million of the three million barrels a day that the
U.S. exports that aren't happening this week.
And then, about 830,000 barrels a day of refined products that the U.S. normally exports are not being exported. So, that's the major detrimental
takeaway from Hurricane Laura on the international oil market right now.
ASHER: So, exports are a major issue and not being able to export some of that product. Just walk us through some of the issues overall, though, in
terms of oversupply that the industry has been facing, even before Hurricane Laura devastated that region.
EBERHART: Sure. So, the biggest reason that the hurricane hasn't really impacted the pricing very much is because of COVID and the lack of demand
is really -- you know, caused the reaction of the hurricane to be relatively minor in terms of the oil price.
This is because last year, we used about 101 million barrels a day. Q2, the average fell to about 85 million barrels a day worldwide. Now we're back up
to about 93 million barrels a day, but there's just a huge loss amount of slack in the system right now.
So, you know, any kind of supply disruption isn't really felt that bad because people are just driving a little bit less than flying a lot less.
So, the demand is pretty muted. And the world is really awash in supply of oil right now and a lot of places oil cheaper than water.
ASHER: Gosh, and so, where do you expect -- what do you expect in terms of demand actually really picking back up? Short of a vaccine -- I mean,
barring a vaccine, which, you know, may happen in a few months may happen early next year. How on earth does oil pick up in terms of demand without
that?
EBERHART: Well, just to keep this in perspective, in the Great Recession, we saw worldwide all demand fall by a little more than 1-1/2 percent
overall, annually. And this crisis is apparently destroyed about 15 percent of demand worldwide.
So, even climbing back from that, we've got a long way to go to get back to where we were demand wise. And in February, I think it's going to be years.
Remember, about 30 percent of oil consumption is jet fuel and demand for that is just extremely muted right now. And I think that, you know, the
economic growth forecast for the year all have to be thrown away.
And so, we're really looking at you know, something like two to six years to get back to the demand we had for oil in February, unfortunately, I
think.
[15:45:13]
ASHER: And by then, I mean, who knows? The landscape just in terms of the oil markets will be completely different. Dan Eberhart live for us there.
Thank you so much. Appreciate it.
EBERHART: Thank you.
ASHER: The world rushes to find a coronavirus vaccine and the U.S. president is promising to have one surprisingly soon. Chief Executive, one
of the companies developing a vaccine joins us after the break.
(COMMERCIAL BREAK)
ASHER: Walmart hopes to get into the social media game. The retail giant says it is joining Microsoft's bid to purchase the wildly popular video app
Tiktok unless it finds a U.S. buyer by September 15. President Trump is threatening to ban the Chinese-based company from doing business in the
United States. CNN's Selina Wang has more.
(BEGIN VIDEOTAPE)
SELINA WANG, CNN CORRESPONDENT: Walmart is partnering with Microsoft in an attempt to buy TikTok but why would a retail giant be interested in a short
video app? Well, TikTok is one of America's most influential social networks with some 100 million monthly active users in the United States.
What that means for Walmart is access to a large young consumer base to potentially buy its products, user insights into the coveted Gen Z
demographic as well as a potentially very lucrative advertising audience. This could also help Walmart turn TikTok into an e-commerce platform for
both its creators and users.
In China, ByteDance's version of TikTok in the country, they are called Douyin already has e-commerce integrated into it.
Now, this isn't the first time Walmart has teamed up with Microsoft either. 2018, Walmart signed a five-year deal to use Microsoft's cloud computing
services. The two companies are also investors in Indian e-commerce giant Flipkart.
Either way, they are still up against competition from Oracle for this potential bid. It's also unclear how Microsoft and Walmart would divide
their stakes in the company if they were successful.
It is going to be a major deal. However, analysts estimate that TikTok's U.S. operations are valued at between $40-50 billion.
This announcement of Walmart's involvement in this deal comes just hours after TikTok CEO Kevin Mayer announced that he's stepping down. A former
Disney's executive industry experts have noted that Kevin Mayer's departure will be a major setback for the company.
[15:50:08]
WANG: The twists and turns involved in TikTok here really underscore how difficult it is for Chinese owned and Chinese companies, technology
companies in particular operating in the United States, especially as the Trump administration escalates its attempts to decouple the two technology
ecosystems. Selina Wang, CNN, Hong Kong.
(END VIDEOTAPE)
ASHER: Returning to one of our top stories, President Trump at the Republican National Convention, he promised Americans a vaccine could be
available a lot sooner than expected.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We are delivering life saving therapies and will produce a vaccine before the end of the year, or maybe
even sooner.
We will defeat the virus and the pandemic and emerge stronger than ever before.
(END VIDEO CLIP)
ASHER: Mr. Trump's own official say the trial data needed to approve the vaccines most likely won't be ready until at least October. October 19
vaccines from U.S. based Arcturus Therapeutics has recently begun human trials and could provide the vaccine to dozens of countries around the
world.
Arcturus CEO and President Joseph Payne is here joining us live now from San Diego, California via Skype. Joseph, thank you so much for being with
us.
So, how realistic -- based on the president's words, how realistic is it to have a vaccine out by the end of the year? And what do you generally make
of the politicization of the vaccine process in this country?
JOSEPH PAYNE, CEO AND PRESIDENT, ARCTURUS THERAPEUTICS: It's great question. First of all, it's great to be with you Zain, I appreciate the
time.
The Trump -- the Trump administration in the country is definitely enthusiastic and excited about the recent progress and trials of vaccines.
It's no doubt an exciting time.
I think the scientific community and as a group of companies that are engaged in working on vaccines like Arcturus, we definitely want to get
these vaccines approved as soon as possible and available. It's important that these vaccines are manufacturable and ready to distribute as soon as
possible.
So, with respect to when, I think the Trump's comments are optimistic and ambitious, but I think it's worthwhile to try to get them out as soon as
possible and in line with what others are saying,
ASHER: Right, so it's worthwhile to get them out as soon as possible. So how do you do that process? How do you expedite that process without
cutting corners? How do you do that safely?
PAYNE: Well, rephrasing your question, it's all about approval. And the regulatory agencies are responsible for when to approve a drug, whether
it's for emergency use authorization, or otherwise.
And we've had the opportunity to work with and talk with many different countries and different regulatory agencies around the globe. And you can
see that it's ultimately their decision when something is approved or not. And we've seen other countries approved vaccines fairly -- you know, right
away.
But again, it's not this finish line that's been -- you know, this horse race that we're participating in. People originally were thinking that the
finish line is approval, but we're starting to get a better understanding what the finish line really is. It's not just approval, but it's
availability of a vaccine of one that suitably safe and effective.
And U.S. is leading the way. There's a lot of exciting vaccines. And it's definitely an exciting time.
ASHER: You know, a lot of people have talked about and yet, obviously, you talked about the importance of the regulatory process. A lot of people have
talked about just how much pressure this administration may be putting on the FDA in terms of approving a vaccine.
But just switching gears though, what are the challenges in terms of distributing a vaccine on this sort of scale? We're talking hundreds of
millions of doses, if not more?
PAYNE: Yes, it's extraordinarily costly and expensive. So, you know, one of the reasons why countries are engaged with the Arcturus vaccine candidate
is it's a potential single administration. And you can imagine if you're distributing a vaccine twice for a shot plus a booster. Hurting cats is
difficult enough, let alone hurting humans into come in for a second administration. So, there's extraordinary costs with distributing the
vaccine and the logistics of doing that.
But in addition, there's storage considerations and supply chain considerations. You want to make sure the vaccine is reasonably stable and
does not require -- you know, costly -- you know, freezers that it can be distributed in a -- in a much more simple manner. And that's important as
well.
[15:55:03]
ASHER: OK. And you know, CNN conducted a poll at the start of this month and 56 percent of Americans say that they would not take a vaccine, if it
was made available. What do you make of those kinds of numbers, the fact that there's such little trust in the vaccine process here?
PAYNE: Well, there's people that want access to the first vaccines, but they also want access to any improvements or a better vaccines, right?
You know, here we are in the summer of 2020. And people are missing out on the Olympics. And so, the scientific community is looking at the vaccine
Olympics and they're seeing different types of vaccines doing a good job and different events within this Olympics. You want to make sure you have a
high neutralizing antibody titers.
So in that event, the titer event. You know, people are familiar with the word titers, but neutralizing antibody titers need to be high. And the RNA
vaccines are doing an extraordinary job there.
But there's another event where its T-cell data, and the viral vector vaccines are gathering promising data with T-cells. And that's important
for the durability of the vaccine and how long it lasts.
And there's another event on how low the dose is. The lower the dose, the better the safety profile like.
So, there's different events in these Olympics and Arcturus is definitely hoping to get gold medals in each of these events. We're very excited
because our preclinical data has suggested that we have high neutralizing antibody titers, like we've seen with other RNA vaccines. But also, that
we've seen robust T-cell induction. So, in that event where we have a chance of doing very well, as well.
And our first dose that we're evaluating in the clinic was one microgram. You know, some of the doses for these vaccines are at a thousand micrograms
or a hundred micrograms, or 30 micrograms. So, a low dose means less stuffs injected, and --
ASHER: Right.
PAYNE: And less injection site reactions, right? And so, you know, less muscle pain in the local environment after an injection would be -- would
be very important as well.
So, that's a way to address your question that there will be a substantial portion of the people that will get very --
ASHER: Joseph, I have to -- I have -- I have to interrupt you because we are running out of time. I do actually stand corrected. It's 56 percent of
people said they would take the vaccine, I believe 43 percent also said they -- 44 percent also said they would not. But the numbers are still
relatively high.
But Joseph Payne, it was great to have you on the show. Thank you so much. And that is QUEST MEANS BUSINESS. I'm Zain Asher. "THE LEAD" with Jake
Tapper is up next.
(COMMERCIAL BREAK)
ANNOUNCER: This is CNN Breaking News.
JAKE TAPPER, CNN HOST: Welcome to THE LEAD, I'm Jake Tapper.
This afternoon, 57 years after the march on Washington, thousands have gathered for a new march on Washington still calling for racial equality at
the same spot where Martin Luther King Jr. delivered his I Have a Dream speech.
The planning begun after police killed George Floyd, yet the nation is now grappling with another black man shot by police, Jacob Blake, shot seven
times in the back, now fighting for his life. Jacob Blake's father is one of those people marching to get today in Washington.
Moments ago, former First Lady Michelle Obama tweeted a lengthy statement saying she is devastated by the shootings in Wisconsin and exhausted and
frustrated, she says, but noting that the protests in her words are, "Opening eyes."
END
