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Quest Means Business

U.S. Stocks Set for Record-Breaking Close; New Cases Rise in U.K. to Six-Month High as Lockdown Ends; Tokyo Marks Start of Olympics with Subdued Ceremony; Government: We're Past Third COVID-19 Wave Peak; Former Bolsonaro Fans Turn On Him Over Broken Promises; Kayak CEO: Business Travel Will Bend With Leisure Travel. Aired 3-4p ET

Aired July 23, 2021 - 15:00:00   ET

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

[15:00:18]

RICHARD QUEST, CNN BUSINESS HOST: OK, it is 60 minutes, literally, to the end of trading and it could be records all around to finish a volatile week

on Wall Street.

The market up has been up on the big board. The triple stack, also showing records, record on the Dow, records on the S&P, record on the NASDAQ, if we

close where we are at the moment, those are the markets and the main events of the day, concerning this shrugging off the variant volatility and those

fresh highs.

South Africa says its third COVID wave is past its peak, the chief executive of Investec on the violence that we've seen in South Africa.

And the cauldron has been lit. Tokyo 2020 is officially underway. We'll be live at the Olympic Stadium.

We are live in New York on Friday. It is July 23rd. I'm Richard Quest. And yes, I mean business.

Good evening, doom and gloom on Monday turns into sunlight and cheer by Friday. The difference the five days can make on the market. The week

started with horrible falls, COVID worries, inflation, even talk of correction.

Now, as you can see from those numbers, we end at record highs. On Monday, the Dow had fallen 726 points, a two percent loss. It clawed back those and

more on Tuesday and Wednesday. And now, we are on track for a one percent gain for the week.

In fact, despite all of these turbulence, all three indices will give records if we close where we are.

Paul La Monica is here. Paul, nothing changed between Monday's fall, Tuesday, Wednesday, Thursday, and Friday's rallies. So, what did change?

PAUL LA MONICA, CNN BUSINESS REPORTER: Well, I would beg to differ and say that some things have changed. We have had very strong earnings supporting

the markets, and I think that is why investors are excited heading into the close of this week. The inflation fears are diminishing a little bit and

people recognize that corporate profits are surging, and we are probably going to have even better results next week when a slew of tech companies

all report their biggest, you know, their latest earnings for the second quarter.

You've got all of the FAANG stocks, except Netflix which already reported on this week, plus Microsoft and Tesla.

QUEST: But Paul, the inflation scenario is still worrisome. Tapering will happen later this year. The economic fundamentals as the delta variant

worsens hasn't changed.

LA MONICA: Yes. I mean, here is what the bulls on Wall Street are saying though, Richard. One, tapering isn't guaranteed to start later this year.

The Fed will hear more from Jay Powell next week. They could still take a slow and steady wait and see approach to tapering and eventually raising

interest rates.

You're right about the delta variant, but here is the issue. For people that are vaccinated, they probably aren't that worried about the delta

variant of COVID. They are still going out about their daily business. They're going back to work. They're going back to movie theaters and

restaurants.

And if you're not vaccinated and you haven't been vaccinated by now, you're probably not worried, either, because you would have gotten vaccinated

already.

QUEST: Paul, you will forgive me if I do a little bit of smug gloating. Snap shares are up 25 percent. The earnings beat, strong user growth. And

viewers, of course, of this program are well familiar with my shareholding of Snap.

I bought the IPO back at $28.00. All right? $28.00, and I thought -- it then bottomed out roundabout $5.00. It is now a new all-time high of

$78.00. And my Snap investment has been quite a saga.

(BEGIN VIDEO CLIP)

QUEST: I just can't see myself taking pictures with rabbit ears, mustaches, and all the other paraphernalia that goes with it. What are you all

laughing at?

[15:05:06]

QUEST: Snap judgment. The market has begun trading in the biggest IPO of the year, the biggest tech IPO I've seen so far.

So my snap investment, because as you know, we are all enjoying the schadenfreude of my misery.

LA MONICA: My condolences.

QUEST: On Snap. Yes, but more than that, it is down now 58 percent from where I bought it. Because I bought it the day after the IPO at the all-

time high of around $28.00 a share.

Interesting numbers as well because we've just got over here, Snap. Snap is off 7.5 percent. Now I think by the way, just for those who wish to enjoy

my discomfort, I think that now does take my Snap holdings to a loss of more than 50 percent.

UNIDENTIFIED MALE: But if you're an investor in this stock much like Richard Quest is, and if he were here today, we would ask him how much

money he's lost so far. It is a really painful position to be in.

ZAIN ASHER, CNN HOST: I don't envy Richard at all.

QUEST: Shares of Snap -- Snap. 22.8 percent.

My snap shares, which I bought just after the IPO are now -- 27 percent rise, are now down only 69 percent. At this rate -- the coffees will be on

me.

(END VIDEO CLIP)

QUEST: Paul, I mean, my only regret of course is that when it was down at four and five and all of those, I didn't buy another thousand or so. That

would have been good wisdom and a little foresight. What has happened with Snap that has caused the market to take it from where it was down 12, 13,

and 14 for so long, up to 17 and 18?

LA MONICA: Yes. You should have dollar cost average, Richard, and that was a fun trip down memory lane there.

I think really what it comes down to is that there were a lot of people skeptical of whether or not Snapchat would be able to continue to post very

strong gains and not just users, but ad revenue because you had obviously, Facebook and Instagram, a lot of times just cloning popular Snapchat

features and Facebook clearly has more marketing muscle and a bigger market valuation, so they could kind of push Snapchat around.

And then that didn't really pan out. And then you had TikTok, now emerge as the hot new Gen Z social media platform. So people worry that maybe TikTok

would you know, really hurt Snapchat. But I think you have to give this company credit. They have withstood the pressure from both Facebook and

TikTok and the user growth is very dramatic, and advertisers recognized this is a legitimate place that they want to be to reach younger consumers.

QUEST: Paul La Monica, thank you. I appreciate it. Have a good weekend, Paul. And to those viewers who are just -- to those of you who are just

wondering about this Snap holding that I have and figuring that it must be some great wonderful holding, let me tell you, it is all of $11,000.00

worth. Well, it is now. I think, it was about $5,000.00 when I started, and it has gained 178 percent.

And no, there is no intention to sell it at the moment. We are going to have a lot more fun with Snap before we're finished.

European markets have also finished the week strong. The leading averages, about one percent or more in Paris, Frankfurt, and Zurich, the FTSE London,

not quite as much. That is maybe a reaction to the latest Purchasing Managers Index, which of course you're familiar with, it has fallen in the

U.K. to 57.7, quite a sharp fall from 62.2 the previous month and lower than expected.

The U.K. economy has hit bumps since fully emerging this week from lockdown. An estimated 800,000 people have tested positive over the week

for COVID, and that has caused more people to get pinged by the National Health Service test and trace app.

As a result, gas stations and supermarkets have warned of shortages because their workers are getting pinged and forced to self-isolate. So, the

government has taken steps to alleviate this.

Scott McLean is in London. They are basically saying to a certain number of core essential employees, if you get pinged, a test will do instead of

self-isolation. Is that going to work?

SCOTT MCLEAN, CNN CORRESPONDENT: Well, we are going to wait and see, Richard. I mean, there is a lot of people, as you said, hundreds of

thousands of people who have been told to self-isolate, in fact, in just a single week, about 620,000 were told by that app to self-isolate. That is

about one percent of the population of England and Wales.

So, the government was concerned, rightly so, about real disruption to the food supply. I was at the grocery store yesterday. The shelves are still

quite well stocked in the vast majority of the parts of the country. So, there's no big crisis here right now.

[15:10:01]

MCLEAN: But clearly the government was hearing enough from these industries to say, OK, we have got to do something if 15 percent to 20 percent of the

workforce is off having to isolate, we might have problem down the road.

So, they've identified about 500 or so key sites infecting about 10,000 or so people who can have these exceptions from quarantine, if they can show a

negative test. These are upstream facilities. Dairy processing, bread making, you know, things like that, grocery store depots, those are the

kinds of things. The grocery store staff, themselves, they are not getting any kind of exemption -- Richard.

QUEST: So, one week on, has the mood in Britain, despite these rising pings and the fact that the Prime Minister, the leader of the opposition, and the

Chancellor of the Exchequer, the finance minister, are all self-isolating, how is the mood in the U.K.? You've had some good weather, has the mood

improved?

MCLEAN: I think, people -- I mean, Richard, you should know this, I think people get a little bit grumpier when it gets hot because nobody has air

conditioning in this country, neither do I.

But in terms of -- you know, this is really a grand experiment that the U.K. is embarking on. Can you lift virtually all of the restrictions, let

the virus run wild through the younger, unvaccinated parts of the population, and hope that the vaccine does its job with the older parts of

the population? In theory, it sounds like a decent plan. In practice though, as you mentioned, some pretty high-profile politicians right now

spending the week in isolation. About one in 75 people is the current estimate, have the virus right now in England.

As I mentioned, one percent of people got pinged to isolate in just a single week. And the pace of vaccinations has slowed down to its slowest

rate since the vaccination campaign began. So, I am not sure that you can call that a smashing success at this point.

But on the bright side, deaths and hospitalizations are a fraction of what they would be without the vaccine. And the vast majority of people who are

showing up in hospitals, Richard, are under the age of 50. Obviously, they are much, much less likely to die and 93 percent of them, the latest data

just out today, shows were either only partially vaccinated or not vaccinated at all. That means the vaccine by and large is doing what it is

supposed to do.

Obviously, the big risk though is some new variant that is better at beating the vaccine comes along that could derail everything. Scientists

say that the conditions that we have right now, high vaccination rates, a lot of cases, sort of the perfect scenario for that to happen.

QUEST: We will talk more. Thank you, Scott McLean. Appreciate it.

Despite rising COVID cases, a state of emergency, and several controversies, the 2020 Olympics are now officially underway in Tokyo.

We'll be in the Japanese capital, next.

(COMMERCIAL BREAK)

[15:15:20]

QUEST: Massive wave of budget, and delayed for a year, it doesn't matter. After all the controversies and all the COVID cases, all the concerns on

the Olympics, it was time at last to sit back and enjoy the show.

[VIDEO CLIP PLAYS]

QUEST: Fireworks lit up the sky in Shinjuku as the opening ceremony finished just a few hours ago. Unique attractions, including this

remarkable drone display above the Olympic Stadium. More than 1,800 drones came together to form a giant globe in the sky.

It was the Japanese tennis star, Naomi Osaka who was chosen to light the Olympic cauldron and that followed the traditional parade of teams into the

Stadium. Country by country, it was up to athletes themselves to generate the atmosphere. Only 950 sponsors and dignitaries inside the stadium

itself.

Selina Wang is in Tokyo. OK, thank you again for staying up late or getting up early. I'm not sure which it is. We can see dawn on its way which

arrives in the next half-hour or so. But it is underway now. The protesters were there. Yes, they made a bit of noise.

Now, let's concentrate on what happens next. So tell me, what does happen next?

SELINA WANG, CNN CORRESPONDENT: Well, Richard, you are right. We have actually been here all through the night, seeing the protesters come and

go. The people actually leave that Olympic venue, just around 950 of them in a venue that can seat 68,000 people and now, the Games have finally

officially kicked off, Richard.

It is hard to believe after a year-long delay, and up until the last minute, questions about whether or not Japan could actually pull this off.

So, we have more and more competitions. They've already been underway for a couple of days now, but really kicking off in full force and the world will

soon start to see more records being broken, medals being won, and victories -- Richard.

QUEST: If we look at the views, because I know you've been talking to people. Is there a shift? Now this is underway, do people in japan, or

those you have managed to speak to, do they believe, you know, it's here.

WANG: Richard, I've been speaking to people almost every day for the past half a year or so about the Olympics, and public sentiment has only shifted

somewhat, and the polls still show that the majority in Japan don't want these Games to go ahead even at this point in time.

And at the protests today, of course, they are still chanting to cancel these Games that is putting money and politics, ahead of people's lives.

And when I talk on residents, still a lot of concern about the fact that just 20 percent of the people here are fully vaccinated and you still have

COVID-19 cases surging in Tokyo, still under a state of emergency. So many people I speak to, whether it is a taxi driver or others that we are

interviewing on the streets, who say why weren't these Games postponed by another year?

But also some excitement as well, some people who are really looking forward to watching all of these Games on TV, so take a listen here to some

of the conversations I've had with people outside of the National Stadium.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: They might need on control the coronavirus better first and then think about it. Yes, that's what I feel.

UNIDENTIFIED FEMALE: I had 20 tickets to the Games. All my sisters were supposed to come to Japan to experience it with me. And so it is kind of

bitter sweet that I can't do it anymore.

Up until two weeks ago, I said I am going to go to the Games, and they canceled all of it. So, I am trying to get as close as possible as I can

because I love the Olympics.

UNIDENTIFIED FEMALE: Yes, we're worried. But I think it is just once in a lifetime. So, we're here to support.

(END VIDEO CLIP)

WANG: So Richard, a mix of excitement and some anxiety.

QUEST: Selina Wang, thank you.

Now, the delta variant has burst the travel bubble down under. New Zealand's Prime Minister, Jacinda Ardern announced a suspension of all

quarantine-free travel from Australia where lockdowns have failed to stop infections from rising in multiple states.

In the last 24 hour, New South Wales has reported 136 new locally acquired cases. Victoria, that's Melbourne, announced 14 and South Australia

announced one. About half of Australia's population of 30 million is under some form of lockdown -- COVID lockdown.

[15:20:00]

QUEST: The CEO of Kayak, Steve Hafner, he is with me now. Before we talk about the future and the trends for the future, I just need to know, from

what you're seeing, the U.S. is going gang busters and tougher for travel at the moment, and those countries in Europe that have opened up seem to be

doing well.

What is the trend that you are seeing at the moment, Steve?

STEVE HAFNER, CEO, KAYAK: Yes, Richard, thanks for having me on again. We see exactly the same thing. In countries where vaccination rates are high

and hospitalizations are down, and government restrictions open up, people want to travel. So the demand bounces back very quickly.

So, you see that here domestically in the U.S. and you're seeing it now in Europe. You know, the big question mark though is for countries that don't

have the benefit of high vaccination rates like Australia and New Zealand. What they are going to do in the medium term to balance the health risk of

the population with the economic rebound that they need.

QUEST: And, the hope had been that at least in the northern hemisphere, summer 2021, would at least get off the ground and be a half decent one. I

don't think that's necessarily the case now.

HAFNER: I might quibble with that a little bit, Richard. I mean, I think if you see, you look at the U.S., you look at Western Europe, travel certainly

is bouncing back. So, over the past couple of weeks, the major U.S. airlines have reported results and a couple of them even turned a profit.

Although it comes with a big asterisk of a few billion in government aid.

But if you look at our query volume for example at Kayak, we're only down about 20 percent versus 2019 for domestic queries and we are only down

about 40 percent for international queries. So, I think that the market will come back. The question mark is, when does business travel come back

and when does international travel return to 2019 levels?

QUEST: I want to turn to business travel because you've got this new Kayak for Business, which you planned before the pandemic. Now, I have heard a

thousand and one numbers. I've talked to CEOs up and down. Nobody really knows the percentage of permanent loss of business travel. What do you

think it is?

HAFNER: You know, my boss who is the CEO of Booking Holdings thinks it is permanently down. I'm a little bit more optimistic than that because I

think business travel is a great thing to secure new relationships and new customers and accounts. So, I think it will come back.

And I also see a new trend, at least with the kayak users of blending leisure travel with business. So, now when you go on a trip, you stay an

extra couple days, you get to experience the city and the destination and you can still do work because you know how to use Zoom these days.

So, I'm on the optimistic side that we will see a good rebound and it will get back to historical levels.

QUEST: That's interesting, because I won't say that's a contrarian view, but I would say that it is a more optimistic than the general consensus

view at the moment, and for Kayak, how important is the business traveler vis-a-vis leisure?

HAFNER: It is an important element, but it is not as important it is to the airlines themselves. So at Kayak, we think about 80 percent of our use is

by business travelers. Certainly, that's the norm. That's not where it is today because most offices still aren't open. So people aren't traveling on

planes to go visit office that's aren't open, obviously.

And as you know from your trip from Newark to London, recently, it is no fun wearing a mask for six hours, either.

So, you know, I think the travel will return. The airlines CEO certainly are adding capacity. So you saw United order 270 new jets, and American is

said, they are bringing back 1,500 pilots and 4,000 flight attendants. So, I think the schedules will come back. Offices will reopen and business

travel will return.

QUEST: Now, Steve, I wanted to ask you, how many time over the years, with all the travel you've done, have you actually managed to practice pleasure

and managed to have time off -- no, no, I hold my hands up. I am guilty. I've never managed to do it. Maybe once.

But perhaps you've hit on something when you say, the Zoom aspect does mean you can have a bit of pleasure, continue to work, and enjoy something. But

it is going to be -- I can't say I've ever been a great -- I've managed to do it successfully. You?

HAFNER: Look, I try to enjoy every destination I go to. You know, we've got 26 offices around the world at Kayak, and I pay a visit to them normally at

least once a year. And yes, they are in great cities. You have got to get out and see the city, Richard. So shame on you for not taking advantage of

that.

And it is funny, when we talked to -- we just surveyed 1,400 people at Kayak in conjunction with YouGov, people want to combine business and

leisure, and I think as a corporate employee, you've got to make that available to your employees to go see the world. Mix it.

QUEST: I agree completely. Listen, I'll take that on board. I agree. Pleasure is the way forward. I've just got to learn how to do it. Steve, it

is always great to talk to you. Have a great summer if we don't speak before the end of the summer. Get out there and see some things. Thank you,

sir.

HAFNER: You, too.

[15:25:08]

QUEST: One of the world's great natural wonders and a major tourist draw in its own right, the Great Barrier Reef off the coast of Australia is not

going to be put on the endangered list. The environmentalists aren't happy about that as Anna Coren reports.

(BEGIN VIDEOTAPE)

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: In a major blow to the future of the Great Barrier Reef, the World Heritage Committee has agreed not

being place this natural wonder on the endangered list, despite the scientific evidence that shows it is clearly under threat from climate

change.

The 21-country committee on Friday ignored the findings from UNESCO and instead, sided with the Australian government which launched a fierce

lobbying campaign against the proposed listing.

Australia's Environment Minister went on an eight-day lobbying trip around the world on a government plane spending taxpayer dollars and carbon

emissions to secure the votes.

Australia is a major producer of coal and gas. It is the third largest exporter of fossil fuels and one of the highest per capita carbon emitters

in the world. The government has been reluctant, if not opposed to implementing policies to tackle climate change, but it says, the Reef is

the best managed in the world with billions of dollars of funding.

It also said the UNESCO committee had not examined the Reef first hand.

In 2014, UNESCO wanted to list the Great Barrier Reef as endangered, but Australia opposed it. Since then, there have been three mass bleachings on

the Reef in the past five years that have left sections dead. This is first time a world heritage site was recommended to be placed on the endangered

list due to the impact of climate change.

But Friday's decision against the listing means UNESCO will instead carry out a mission to the 2,300 kilometer Reef, the largest coral reef system

and biggest living infrastructure in the world, which can be seen from space.

Australia will need to send a report to UNESCO by February of next year on efforts and measures to preserve the quote, "outstanding universal value of

the reef."

Scientists are devastated by the decision. One professor told me that the Reef was in decline and will continue to be in decline. He said the

Australian government was more interested in protecting the fossil fuel industry and those jobs than future of the Great Barrier Reef.

Anna Coren, CNN, Hong Kong.

(END VIDEOTAPE)

QUEST: As we continue, you and me this evening. The worst is behind. That's the assessment of South Africa's government as it calculates the cost of a

COVID wave, and the appalling riots that were seen.

The CEO of Investec is with me from Johannesburg to hear what the investment community thinks in a moment.

(COMMERCIAL BREAK)

[15:30:57]

QUEST: The South African government says the third COVID wave has passed its peak. Officials are to meet next week. This with regard to discuss

potential easing of restrictions. Cases have dropped sharply and the health minister says that vaccinations are now picking up. The strongest wave yet

has left a path of destruction behind it. The COVID surge came as tensions spilled over after the former President Jacob Zuma was arrested.

More than 300 people died in riots that followed. The government estimated the losses at 3-1/2 billion dollars. With me as the CEO of the financial

services firm Investec. Joins me from Johannesburg via Skype. Sir, it is good to see you. Thank you for joining us on a Friday night. The message

that South Africa has sent to the world rightly or wrongly, is one of awfulness in terms of vaccines and a COVID. And horror in terms of riots.

How do you square that? How do you mix that into what you tell investors?

FANI TITI, CHIEF EXECUTIVE OFFICER, INVESTEC (via Skype): Thank you for having me, Richard. Obviously, the last week was a very difficult week in

the last 27 years of democracy in South Africa, because the level of instability and insecurity that was evidenced everywhere in KwaZulu-Natal

and in parts of housing was very disconcerting. And as you see, on the other hand, we are making significant progress in terms of our vaccination

program.

The government initially had a target of 250,000 vaccinations per day. We are now looking at about 400,000 middle August. So yes, the tale of two

cities, as it were.

QUEST: What would you say though? How do you convince somebody to invest in a country where the perception remains one of basically economic

incompetence, and arguably corruption?

TITI: Look, the government has been doing a lot of work to fight corruption. You referenced the fact that the former President, Mr. Jacob

Zuma is now incarcerated, that alone shows that the country is making progress in terms of the rule of law. There have been a number of other

arrests relating to the corruption that we have seen over the last number of years. So there is some progress, but that progress is not unfettered by

some challenges, like we saw last week.

We have to start I think with local investors are showing confidence in the economy in terms of rebuilding from what happened last week. And over time,

as we make more progress I believe that international investors will look again at the country.

QUEST: See, that's the point. You've just -- you've put your finger on it. The opportunities in South Africa have never been greater, larger, more

exciting, emerging market with the rule of law and (INAUDIBLE) a stable democracy should be roaring ahead. Are you -- are you optimistic that those

-- the necessary reforms can be put in place, even under what is de facto a single party?

TITI: I think we were at the cusp of significant progress. You may know that the government had liberalized the energy sector through allowing

corporates to generate their own energy and there are a number of other reforms that were being implemented. So the riots came at the most

inopportune time. We are a commodity economy, as you know, and commodities have done particularly well.

And government finances were beginning to improve as a consequence. So, at a point when the investment case was looking particularly strong, we've had

this setback but we've got to try to build back better. Build an economy in a country that is more inclusive, because there will be actors, bad actors

that will try to destabilize the country in future.

[15:35:10]

TITI: Again, the responsive government was shockingly inept, slow, not with the right scale. And I hope that the government will be more prepared next

time if some of these instigators try to destabilize the country again.

QUEST: You know, viewers to our program know about my snap investment which managed to lose a fortune but has come back strong at the end, as we've

been talking about. Is it a case with South Africa, if I had $1.00 to spare, would you suggest South Africa?

TITI: South Africa is an emerging market that has deep pools of liquidity, a strong private sector, a strong governance infrastructure in terms of the

Reserve Bank, the Treasury, and as I said earlier on, we were beginning to implement a number of reform programs. I think on the back of those if

there is courage from the President and the ruling party to implement structural reforms, we can see the economy come back again but there has

been a setback and it may take a bit of time to rebuild.

QUEST: Fani, one of the reasons I love having you on the program is the forthright way in which you tell it to us, and you don't sugarcoat the bill

when it has to be said you're the man or said about South Africa. Thank you, sir. Have a lovely weekend.

(CROSSTALK)

QUEST: In Brazil, the COVID death call climb, so does the anger of the president, Jair Bolsonaro. As Isa Soares now shows even his passionate fans

have grown disillusioned with his response to the crisis.

(BEGIN VIDEOTAPE)

ISA SOARES, CNN INTERNATIONAL CORRESPONDENT (voice-over): One of President Jair Bolsonaro's most enthusiastic supporters Ana Claudia Graf thought the

right-wing leader would be Brazil's savior.

ANA CLAUDIA GRAF, FORMER BOLSONARO SUPPORTER (through translator): He appeared to us as a man who defended the fight against corruption, who

defended the family institution, who said he would never allow cronyism that it would be a different government. I really believed in this thing

that was sold to me. I went all in. I fought for it to happen.

SOARES: But 2-1/2 years after Bolsonaro has swept to power this former fan is full of regret.

GRAF: It was a mistake. It was the biggest mistake of my life.

SOARES: Tired of corruption allegations, devastated by Brazil's COVID death toll. She's become a full time political activist, demanding her

president's impeachment.

GRAF: I will not shut up. I will fight. I will fight until I take this man out of power.

SOARES: Graf is one of many to lose faith in the country's leader, putting pressure on Bolsonaro ahead of presidential elections next year. The

President's disapproval rating is at an all-time high. For the first time since he took office, more than half of voters now support impeachment

proceedings, at issue is handling of the COVID pandemic.

UNIDENTIFIED FEMALE (through translator): No more than half a million people dead.

SOARES: Bolsonaro skeptical lockdowns, masks and vaccines once dismiss the virus as a literal flu. It's now playing more than half a million lives in

Brazil. The world's second highest death toll. He faces a major senate investigation.

JAIR BOLSONARO, BRAZILIAN PRESIDENT (through translator): I won't answer to these kinds of people under no circumstances.

SOARES: The government has also been rocked by corruption allegations over the purchase of COVID vaccines. Damaging the image of a president who

promised to root out graft. As anger rises on the streets former allies turn their backs on the president. Disillusioned with a man who swept their

party to power.

JUNIOR BOZZELLA, BRAZILIAN FEDERAL CONGRESSMAN (through translator): We really imagined that he was tough, that he was honest, and that he was

going to fight for everything that was wrong in the Republic. But in the end, it turned out to be nothing like that.

SOARES: Junior Bozzella is a federal congressman from Bolsonaro's party, the PSL. He's backing a fresh impeachment requests that has support from

lawmakers from the left and right.

BOZZELLA: Every day that he is in power advances the process of corruption. He is bleeding the public coffers. And at the time of pandemic, he's not

giving a damn, shrugging his shoulders and making firm, mocking death in the lives of Brazilians.

SOARES: But Bolsonaro's critics worry he may not accept defeat next year.

BOLSONARO: I'll hand over the presidential sash to whoever wins the election cleanly. Not with fraud.

SOARES: At a recent bike rally, these Bolsonaristas stand firm, saying their president is a scapegoat fighting to change the country for the

better.

UNIDENTIFIED MALE (through translator): They will invent anything that's an excuse. Everything that happens is Bolsonaro's fault.

UNIDENTIFIED MALE (through translator): He's being bullied, abused, suffocated and even so we're seeing him do things others haven't been able

to do in 30 years.

[15:4009]

SOARES: The question now how long Brazil will stand behind its populist leader? Isa Soares, CNN.

(END VIDEOTAPE)

QUEST: And that's QUEST MEANS BUSINESS. Bearing in mind we are looking at records on all three of the major indices. So I'll have a top of the hour a

dash for the closing bell. Coming up next. Africa Avant-Garde.

(COMMERCIAL BREAK)

[15:58:13]

QUEST: I'm Richard Quest. Together we'll have a dash to the closing bell. And we're only two minutes away from the trading day over. There is only

one story in the markets and it is one of records. Delta fears are in the rear view mirror. The Dow is up sharply, the best of the day over almost

over 35,000 which means all three indices will close tonight at record highs by some measure across the board.

Tech stocks are surging and there are strong earnings from American Express. Airline stocks and airline earnings this week show clear signs of

recovery for the U.S. travel sector at least. Business travel may remain well below pre pandemic levels, but the CEO of Kayak tells me he's

confident those numbers will bounce back. And what he says bleisure were the future.

(BEGIN VIDEO CLIP)

STEVE HAFNER, CHIEF EXECUTIVE OFFICER, KAYAK: I think business travel is a great thing to secure new relationships and new customers and accounts. So

I think it will come back. And I also see a new trend at least with a Kayak users of blending leisure travel with business. So now when you go on a

trip you stay an extra couple days, you get to experience the city and the destination.

And you can still do work because you know how to use Zoom these days. So I'm on the optimistic side that we will see a good rebound and it will get

back to historical levels.

(END VIDEO CLIP)

QUEST: Mostly green on the Dow. Visa is the best. Intel is the worst. Sharp loss for Intel there on chip fairs. Otherwise it is largely green screen

with consumer staples doing the best of all competitors continued momentum. And that is our dash to the bell. I'm Richard Quest. Record on the Dow,

record on the S&P record on the NASDAQ. Whatever you're up to in the hours ahead, I hope it's profitable. The closing bell is ringing.

[16:00:04]

QUEST: "THE LEAD" with Pamela Brown is next.

END