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Quest Means Business
Officials: Not Breaching Classroom Was Wrong Decision; Zelenskyy Calls Russian Donbas Offensive Genocide; DP World CEO: Global Cooperation Needed To Fight Hunger; WHO: Good Window Of Opportunity To Stop Monkeypox; Jury Begins Deliberations In The Depp-Heard Trial; Gun Makers Pulls Out OF NRA Convention After Mass Shooting. Aired 3-4p ET
Aired May 27, 2022 - 15:00 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 ANCHOR: It's Friday, an hour to go before the end trading and markets are on an upward swing. They've been up all session
you can see there.
If we close up, and I'd be astonished if we don't. Stocks would break a seven-week losing streak. The markets are up all the major markets are.
Those are the markets the main events that we're talking about today.
"It was the wrong decision," an admission from Texas officials, the police should have immediately breached the door during the deadly school
shooting.
Ukraine's President Zelenskyy says Russia is preventing nearly half of Ukraine's grains from reaching global markets.
And the chief executive of Marriott tells me he isn't seeing signs of recession in the demand from his customers.
We are in London tonight. It is Friday, it's May the 27th. I'm Richard Quest, and in London, I mean business.
Good evening.
In the last few hours, Texas Police have admitted officers made the wrong decision during the mass shooting in Uvalde. The state's Director of Public
Safety now admits with hindsight, responders should have confronted the gunman sooner. He explained the timeline of Tuesday's attack during a
heated news conference.
At 11:30, a minute before the shooting started a teacher called the police. The first officers arrived five minutes later. By 12:03, nearly 20 officers
were outside the classroom, but they did not storm it. They waited nearly 50 minutes more to enter the room and then shoot the gunman.
CNN's Shimon Prokupecz asked at the news conference why they took so long to act.
(BEGIN VIDEO CLIP)
SHIMON PROKUPECZ, CNN CRIME AND JUSTICE CORRESPONDENT: You say there were 19 officers gathered in the hallway or somewhere, what efforts were
made to try and break through that door? You say it was locked. What efforts were the officers making to try and break through either that door
or another door to get inside that classroom?
COL. STEVEN MCCRAW, DIRECTOR, TEXAS DEPARTMENT OF PUBLIC SAFETY: None of that time. The on-scene commander at the time, believed that it had
transitioned from an active shooter to a barricaded subject.
PROKUPECZ: Sir, you have people who are alive, children who are calling 9- 1-1 saying, please send the police. They are alive in that classroom. There are lives that are at risk.
MCCRAW: We're well aware of that.
PROKUPECZ: Right. But why was this decision made not to go in and rescue these children?
MCCRAW: Again, you know, the on-scene commander considered a barricaded subject and that there was time and there were no more children at risk.
Obviously, obviously, you know, based upon the information, we have, the word "children" in that classroom that were at risk, and it was in fact,
still an active shooter situation and not a barricaded subject.
(END VIDEO CLIP)
QUEST: Adrienne Broaddus is in Uvalde, in Texas with me now. This has completely changed the entire sort of architecture of what has happened.
But what I was interested when I listened to what the officer said, he said, with hindsight and there is now this view, isn't there that with
hindsight, we should have done that.
But there are other officers who say, no, no, no, no, no. There is no hindsight here, even at that time, the obvious thing to do was that. So
square that circle for me tonight.
ADRIENNE BROADDUS, CNN CORRESPONDENT: You know, the response is something folks may be divided over for years to come. Moving forward, perhaps what
happened here will be a case study for other members of law enforcement.
Listen, it's easy to have something happen and the next day or even years down the road, look back, analyze it, and poke holes in what happened and
really say what you should have done or what you could have done.
Also, although he laid out that timeline, we also laid out another detailed timeline and the director of public safety here in Texas gave us a warning
before releasing the timeline of the 9-1-1 calls, saying it's better for me to read them versus allowing the reporters to hear them.
[15:05:01]
So, as you did mention, that first 9-1-1 call came in around 11:30 AM from a panicked teacher; following that, a call comes in from a girl who
identified herself in Room 112. That was at 12:03. And then around 12:10, a girl in room 112 calls back saying multiple dead. And then at 12:13, she
called again.
She was whispering when she spoke with the 9-1-1 dispatcher, and then around 12:16, the girl in 112 calls back saying eight to nine students are
alive. And keep in mind, this is key, this is critical. She is relaying information to the dispatcher, letting the dispatcher know that some of the
students are still alive.
Now at 12:19, a different caller calls 9-1-1 and when that person calls 9- 1-1, someone else in the room tells that caller to hang up the phone. According to the Director of Public Safety, shots are heard over that 9-1-1
call, at least three. Then we move to 12:36, we return to the girl who was in room 112. She calls back and the operator asked her to stay on the line
but to be quiet, and she says he shut the door.
This caller is narrating and telling the dispatcher what happened. And then at 12:43, she says, "Please send the police now." She said she could hear
people next door. And then at 12:47, the caller repeats almost pleading for help, "Please send the police now." At 12:50 shots are fired and they can
be heard over the call, and then at 12:55, the 9-1-1 Operator reports a loud commotion says it sounds like officers are moving children out of the
room.
I can't help but to think of these children calling 9-1-1. When you're young, your parents teach you if you need help, if you're in trouble, if
there's danger, call 9-1-1 and help will be on the way, but they waited.
QUEST: Police were outside. Adrienne, thank you very much. Adrienne in Texas. Thank you.
To Ukraine now, Russian forces are fighting to get control of the country's Eastern Donbass region, closing in on the last pocket of resistance in
Luhansk. Ukraine says it's fiercely defending the city of Severodonetsk acknowledging however, Russians are now occupying two-thirds of its
perimeter.
President Zelenskyy says the Russian offensive in the Donbas amounts to genocide.
(BEGIN VIDEO CLIP)
VOLODYMYR ZELENSKYY, UKRAINE PRESIDENT (through translator): In cities and communities closer to the Russian border, in Donetsk and Luhansk, they
gather everyone they can to fill the place of those killed and wounded in the occupation contingent. All this, including the deportation of our
people and the mass killings of civilians is an obvious policy of genocide pursued by Russia.
(END VIDEO CLIP)
QUEST: Now, Russian forces are occupying Izium and are using it as a base from which to launch attacks to the South.
CNN's Nick Paton Walsh is reporting on fierce fighting that's now been going on in these days around that city.
(BEGIN VIDEOTAPE)
NICK PATON WALSH, CNN INTERNATIONAL SECURITY EDITOR (voice over): Putin would leave little of what he claims to liberate. An artillery duel has
been raging for days, torching around the vital Russian held town of Izium. Up on high, in a position we were asked not to reveal, these Ukrainian
troops dug in and buoyant, have a clear view of the damage below -- but also, their enemy.
(on camera): So the Russians are just a kilometer on the brow of this hill, in that direction.
(voice over): This unit only here two days, but say they have already destroyed a Russian tank. Yes, they play to the cameras, but it's pretty
clear up here. Their morale is sky high.
(UNIDENTIFIED MALE speaking in foreign language.)
TRANSLATION: Where is my armored Hummer?
PATON WALSH (voice over): They are exposed, but ready, keen to show off actually gleeful at the international menu of weapons they've been sent.
Almost a silly amount.
These Swedish anti-tank munitions, and of course, a British NLAW. Then from out of the grass, a German one which they're particularly like, a Polish
grenade, no training on them, just practical use they joke, giving them the widest experience of anti-tank weapons in Europe.
(UNIDENTIFIED MALES speaking in foreign language.)
PATON WALSH (voice over): Parading also what the Russians left: Thermal optics and a Soviet era anti-tank weapon that they wind up like a
telephone.
UNIDENTIFIED MALE: Boom.
[15:10:10]
PATON WALSH (voice over): Yet still, the Russians persist, even as the prisoners these troops have taken have revealed how young the soldiers
they're fighting are.
(UNIDENTIFIED MALE speaking in foreign language.)
TRANSLATION: They're children who have grown up only under Putin. They don't know any other kind of power.
They say, "Putin said so, he can't deceive us."
We are doing everything right, like zombies.
It's like the firmware in their brains was updated because they only quote phrases. Poor and happy. Sad to look at them.
PATON WALSH (voice over): In the village below, the endless shelling is flushing the remaining life out.
(UNIDENTIFIED FEMALE speaking in foreign language.)
PATON WALSH (voice over): This woman said telling me her name would make no difference.
(UNIDENTIFIED FEMALE speaking in foreign language.)
TRANSLATION: There were 11 explosions around my house last night. Holes, 11. Go and count them. I sat in the cellar on my knees asking God to put
goodness in people's brains. Will the brain hold up?
It will. See? I am here.
PATON WALSH (voice over): They really don't know where they'll go or what, if anything, they can come back to, just that life has no space left here.
Nick Paton Walsh, CNN, near Izium, Ukraine.
(END VIDEOTAPE)
QUEST: President Zelenskyy has said that Russian blockades are preventing nearly half of Ukraine's grain exports from getting to the market. The
country has 22 million tons of grain in its silos, and Ukrainian officials said the country has been unable to reach agreement with Russia for safe
shipping lines. The U.N. says the conflict is helping drive 44 million people to the brink of starvation.
It was the issue that we heard about again and again, the number one question of food insecurity and hunger in our Davos coverage throughout the
course of the week. Now the Chief Executive of DP World is calling for global cooperation to solve and prevent World Hunger that's happening as a
result.
I spoke to Sultan Ahmed bin Sulayem at Davos. He told me shippers have the capacity to move the food as long as they have access to the ports.
(BEGIN VIDEOTAPE)
SULTAN AHMED BIN SULAYEM, CHAIRMAN AND CEO, DP WORLD: If there is a way of a corridor, it could be moved, but Richard, not just the food. Food is in
fact the most dangerous because countries are running out of supplies of food, fuel.
I was in America two weeks ago, $5.00 a gallon. I don't think the world can continue with these inflationary prices. But when it comes to food, in my
opinion. They have to be a united nation, collaborative effort including all the stakeholders to make sure there is a safe corridor to take the food
out.
Because the food is available, the grain is available, how to take it. There are ports available.
QUEST: And if the food -- if there was a way out, would there be the ships and containers and the bulk carriers to do it?
SULAYEM: Absolutely. They are available. They are all available, the ships --
QUEST: At a price.
SULAYEM: Yes. But bulk carriers are available. Container ship may be busy, but carriers are available. Because in a bulk within a container, you just
put it in.
QUEST: How concerned are you? How worried are you?
SULAYEM: I think it will be resolved. I think the urgency of a solution for the food supply is going to force everybody to find a solution, to come
to terms with each other. They have to.
QUEST: You and I have spoken several times on supply chain issues.
SULAYEM: Yes.
QUEST: Are they getting better?
SULAYEM: I hope so. It's not going to be easy. It's not going to be fast, still going to linger this year and sometime next year.
QUEST: What's the driving force now of them? Is it China? Is it the war in Ukraine? What is moving --
SULAYEM: All of the above, because China still is locked down and it is the biggest manufacturer of the world. So there are delays.
The empty container that bring the cargo are full of cargo, they haven't reached destination. That will linger with us and the world will make it
easier.
QUEST: What is DP World doing with the Metaverse and vice versa? How is that not just jargon?
SULAYEM: Let me tell you when the pandemic came, we have to spend a lot of money in digital platforms. We knew there are a digital platforms, but
really didn't need it. And by using the digital platform, and we realize how close we want to be with the customers, then we really see that the
Metaverse today could give us that.
QUEST: What is -- but what do you mean by that?
SULAYEM: Let me tell you. On the port side, it is going to make our life much easier. We have for example, training for employees. We have a good
trainer. Imagine in the Metaverse, in the DP Metaverse, you will have the trainer who is the best and you will have a trainee who's in Senegal or who
is in Philippines, he is sitting alone, but in the Metaverse, when he wears this, he is among all of them.
[15:15:10]
So that makes it more interactive. A truck is going to pick up a container on the port. Using the technology, it can come faster, and not waste time.
Repairs, if something goes wrong in a place and the best maintenance guy is in Dubai, I don't have to send him. He can guide him and he'll be with him
and walk in the terminal and tell him how to fix it.
So in the port, in the call center, it is very boring when you call the call center. In the Metaverse, you will have all the information with an
avatar who will help you.
QUEST: So how careful do you have to be that it actually has real positive benefits? And isn't just a gimmick for jargon's sake, because everybody is
doing Metaverse?
SULAYEM: Listen, It is something we need today. This is missing, whereby how do we interact with them? Let me tell you, a customer today. He has
been honest, in our terminal. He is selling it.
He can actually go to the buyer and look at it, and even their device allows them to smell it. There's a coffee trader who is in Rwanda, and he
can do the same. We have a Traders Market where people are selling different products in a place. The buyers in Tanzania could be in the
Metaverse and with them.
If I need to build an office building for a customer in Dhaka, how long it takes to build a building? I can build him a virtual office in the
Metaverse and he can do his business with customers.
(END VIDEOTAPE)
QUEST: Sultan Ahmed bin Sulayem of DP World talking to me at Davos.
Now, one of the great beauties of Davos of course, is the ability to speak to so many people -- CEOs, government ministers, and the like. We can't
broadcast them all in one go, but we have Davos+ for you.
We've got the OECD Secretary General, the Marriott Chief Executive, and Edelman's CEO all to come on the risks of recession.
QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
QUEST: Now markets, markets in the U.S. are highly likely to stop the eighth-week losing streak. The Dow is up around one percent. One a half
percent, no, but look at the NASDAQ, three percent as well. Let's not get too excited. The NASDAQ is still off nearly 23 percent since the start of
the year.
[15:20:02]
Rahel is with me. So I guess the core question as we look at these graphs, is why?
Is this just, Rahel, a case of if the fruit and veg got cheap enough in the market, somebody would buy to make a soup? You know if something gets cheap
enough, people will buy.
RAHEL SOLOMON, CNN BUSINESS CORRESPONDENT: Well, that's perhaps one explanation, Richard, and also we got some good news this week, right? We
got some good news from a key inflationary reading today. I want to put those numbers up for you.
This is the PCE reading. This is the Fed's favorite and preferred inflation gauge. That came in this last month at 6.3 percent in April year-over-year.
That was a decline from 6.6 in March. Core PCE that came in at 4.9 over 5.2.
So, Richard, not necessarily a cause for celebration, but perhaps another sign that inflation had moderated. And to your point, I want to take a step
back, too, right and let's think about this week.
Earlier this week, Monday and Tuesday, we got some positive comments from some of the U.S. banks like JPMorgan and Bank of America. We also learned
this week, Richard, that the retail picture is not as bleak as it may have appeared last week. We heard from some retailers this week that they
actually had pretty decent quarters.
So perhaps, it is not as doom and gloom as it appeared last week, but not necessarily time to start, you know, throwing up high fives just yet.
QUEST: Right. So the way I see it is, the market knows that there are these half a percentage point increases two or three coming down the road
and that is pricing them in, which is what we've seen. And the argument, I guess is whether you throw more fuel on the fire with any data and results,
but that we seem to have got a suggestion that things are at least stabilizing.
SOLOMON: It appears that things are stabilizing, but I also want to take the opposite perspective, too, Richard.
QUEST: There we go. On the one hand, on the other hand.
SOLOMON: On the one hand, yes, all of the points that I just mentioned, but on the other hand, I want to put up the personal savings rate. Take a
look at this, the personal savings rate dipped to the lowest amount in more than 10 years. You can see on this chart where it spikes there a few years
ago when all of that stimulus was added to the economy and look at it now, Richard.
So, as we have talked about, yes, consumers, it appears have been able to absorb some of these cost pressures, but for how much longer? Because it
appears that they're dipping into their savings to do it.
So some good news, but there is that, too. Right?
I also want to say that the inflation report that we got today, it showed some moderating, but in areas of essentials, Richard, not so much. Of
course, gas, still very high, 42 percent year-over-year and shelter.
So on the one hand, but on the other case.
QUEST: Before Christmas, I'm going to get you off the fence in one way or the other. Have a good weekend, Rahel.
SOLOMON: Try me. Try me, Richard.
QUEST: Rahel, have a good weekend.
SOLOMON: You, too.
QUEST: All right, the head of the OECD says Russia's war in Ukraine has changed the driving cause of inflation. Mathias Cormann told me he thinks
Central Banks realize the urgency of lowering costs and he described how the war will affect the global economy.
(BEGIN VIDEOTAPE)
MATHIAS CORMANN, CHAIRMAN, OECD: Growth will be lower as a result of the war in Ukraine and inflation will be higher. I mean, the world economy was
recovering very strongly, was recovering more rapidly than we had anticipated. And then we have Russia's unprovoked, unjustifiable illegal
war of aggression and that has had a negative impact on the economy, clearly.
QUEST: Right. But as Central Banks -- I mean, we can have a sort of a fairly moot argument about whether or not they were behind the curve or
not, should they have moved sooner. But the reality is they are moving now, how significant do you expect the rate rises to be?
CORMANN: Well, I mean, before the war, the inflation story was different in different parts of the world.
QUEST: But it is still there.
CORMANN: It was there, but there was an expectation that supply blockages and supply challenges were going to ease and it was over time that
inflation pressure was going to ease, now we're in a situation where of course, I mean, inflation is a big problem and Central Banks across the
world, including in the U.S. and in particular in the U.S. clearly signaled that they will take whatever measures are required to get on top of
inflation.
QUEST: I know that the Fed can affect a soft landing, do you think they will have a soft landing?
CORMANN: Well, I mean, I think that the Fed is very conscious of the need to make decisions now and not to wait and to take whatever decision is
required to ensure that we have the best chance of a soft landing for sure.
QUEST: Okay. But if you look at for example, the war, its effect, the energy costs and inflation, and then you have the issue of the food
insecurity, which is just going to be horrendous.
CORMANN: But all of the issues that you're raising are related to the war and there's a lot of things we don't know there. We don't know how much
longer the war will go. We don't know how much worse it will get.
I mean, if your question is would the world be better off if the war would stop now? I would say, yes, of course, and all of these issues would not be
as challenging and not be as bad.
[15:25:10]
QUEST: But if we just take the war as being, you can't take it to one side, but --
CORMANN: You can't.
QUEST: No, you can't. But what's the thing that bothers you the most?
CORMANN: Well, I mean, clearly, the world was recovering strongly, and some of the inflationary pressures actually came from the strength and the
speed of the recovery. So that's important to understand.
Then, in some parts of the world, there were demand pressures in other parts of the supply pressure. So the inflation story wasn't quite the same.
Right now, what worries me the most is how much longer is this terrible, atrocious war going to last? And how much more damage is it going to do to
the people of Ukraine and to people around the world?
QUEST: On the other side of the world, you still have China locked down, and likely to be in some form or variation of lockdown for the foreseeable
future. Where does that fit into? The ability for the developed economies to grow?
CORMANN: Well, I mean, it has one -- you know, it's one of the downside risks -- especially China is a very significant trading nation. It's a
significant exporter and having big ports in China affected by lockdowns has an impact on global supply chains.
And, you know, whatever makes global supply chains less efficient is bad for the economy. And so, you know, of course, it would be preferable that
in China and in other parts of the world, if we could get on top and remain on top of the pandemic.
QUEST: Now, take your one hat off, put the other hat on, I'm just kidding, just to make it quite clear that I'm now moving from your role as an
executive into former Cabinet Minister and Australian politician. Were you surprised that the party -- Scott Morrison lost and lost as he did?
CORMANN: Well, look, you know, I love Australia. Australia is an awesome country, in my view, it is the best country in the world. We are a strong
and vibrant democracy and the people of Australia have spoken. And you know, in Australia -- in Australia, we know how -- in Australia, we know
how to manage a peaceful transfer of power.
And you know, I wish and we all wish Anthony Albanese and his government very well. We want him to do the best he can for Australia and he has my
best wishes and congratulations.
(END VIDEOTAPE)
QUEST: And that is how you become the head of the OECD, one of the world's top diplomats in a sense of being able to answer a question and keep
everybody on side.
U.S. politicians are having a mixed response to attending a gun lobby's group convention this weekend in Texas. It is one of the largest. Those who
are going to Houston, who is staying at home and how they are justifying their decisions.
It is QUEST MEANS BUSINESS. Good evening to you.
(COMMERCIAL BREAK)
[15:30:57]
QUEST: Hello. I'm Richard Quest. There's more QUEST MEANS BUSINESS in just a moment. The chief executive of Marriott tells us demand is roaring back
after a pandemic slump.
Release a new Top Gun film has some critics asking has Hollywood run out of new ideas? We'll get to all of that after I've updated you with the
headlines because this is CNN and the news was comes fast.
Finland and Argentina are amongst the latest countries reporting their first cases of Monkeypox. The World Health Organization says nearly 200
cases have been detected in more than 20 countries recently. It says that with the right measures there's a good window of opportunity to stop the
outbreak.
A jury has begun deliberations and the Johnny Depp and Amber Heard defamation trial. The Pirates of the Caribbean actor is suing her, his ex-
wife over an op-ed that she wrote in 2018, calling herself a public figure representing domestic abuse. That claims, it caused him to do his work is
countersuing.
A Texas official has acknowledged that police made a wrong decision. Their response to Tuesday's school shooting in Uvalde. It says an onsite
commander thought the gunman was barricaded in the classroom, the active fake shooter phase of the operation had ended. Instead of immediately
entering the room. He waited for a tactical team to show up.
Most powerful gun lobby group in America is held during a convention in Houston in Texas. It's less than 500 kilometers from the site of the mass
shooting. The maker of the gun used to murder 19 children and two adults will not attend the NRA convention this weekend. Daniel defense said now is
not the time to promote their product. Other high-profile attendees are still going and that includes the former President Donald Trump, the
governor of Texas, who will speak via recorded message and Senator Ted Cruz.
Some CEOs with business in Texas are speaking out against gun violence. David Solomon of Goldman urge elected officials to enact policies to make
communities safer. One of his employees in New York was shot dead on Sunday.
Tesla CEO Elon Musk a major employer in Texas, told CNBC he supports tight background checks for gun sales and supports limiting who can own assault
weapons.
The Los Angeles dedicated Thursday's front page to the shooting's young victims. It published a full list of their names, their ages, and a report
on how U.S. gun laws are easing despite an increase in mass shootings.
With me is Patrick Soon-Shiong, the owner of the L.A. Times. He's also the Executive Chairman of ImmunityBio. As the owner of the Times and a major
CEO, what do you see as your responsibility both for yourself and the paper in this regard?
PATRICK SOON-SHIONG, EXECUTIVE CHAIRMAN, L.A. TIMES: Well, for myself as a physician person worried about the health care and the wellness of the
population. I think we really need to be a lead in terms of giving not only advice, but truthfulness and integrity of news. As the newspaper owner, I
think, to really keep this newspaper business live and vibrant. And -- because I think it's really important for the community.
QUEST: But as we see politicians duck and weave over this question of greater or no-gun control. Do you see it -- would you ring the editor and
say, listen, I am the proprietor and I've decided we are saying more gun control, even if that cost me readers. I want the paper to be saying this.
SOON-SHIONG: I feel very strongly about that. Whether it'd be control, whether it it'd be how are we managing COVID, how we're managing social
justice I think we should be a voice for the people on behalf of the people.
[15:35:08]
And it's not about trying to be left or right. I think it's outrageous that we as a country have one of the highest causes of death and children to be
guns.
QUEST: That said, how do you -- and again, you, you're in a very powerful position, because A, you're an expert on health, which we'll talk about in
a second and B, you know, you own a -- you own a newspaper. How do you want the paper to campaign for better gun control?
SOON-SHIONG: Again, again, I'm going to be separate news from opinion, and op-ed. And I think within the op-ed pages. I think it's important to have
both voices, but at least to put the voice of what the paper feels or what we feel is editorial on the -- what we think is right and good for the
nation. So yes, on -- in that context, we will have our hope and to have some say. In the context of news and reporting, independence is critical.
QUEST: Let's talk about COVID. Because -- I mean, you've you kindly and generously removed your mask in the studio, and we have ensured that
there's the correct distance between us, the safe distance between us. But you and a lot of people who are -- who know about this subject say that we
are in for a -- we're not -- it's not over yet.
SOON-SHIONG: Well, it's so sad because not only it's not over yet, it was completely predictable what's going on. When we developed antibody-based
vaccines, I predicted since 2020, that we'd create (INAUDIBLE) we are actually creating now an opportunity for this virus to mutate because
that's what virus does against antibodies. Until you can clear the virus with a T-cell vaccine renounce like a broken record.
Not only will you not be able to stop this pandemic but there's consequences now, which I'm really concerned about with the long COVID.
QUEST: When you say long COVID, not everybody suffered from long COVID today.
SOON-SHIONG: Well, I don't know if we know what -- when you say not everybody suffered from long COVID.
QUEST: I mean, I suffered from what I, you know, and I wrote it -- I wrote and written about it, where I will suddenly become extremely confused. I
will have a mental fog that will just descend upon me. I will be grasping for a word that's quite obvious. And it might last a day, it might last a
week. But then it just throw away. Is that what you're talking about or are you talking about some physiological disease ailment, whatever that might
be afflicting us in the future?
SOON-SHIONG: The latter, unfortunately. And, you know, now's not the time to create fear or concern. But the science that we are looking at, let me
give you some example. I'm working very much with Dr. (INAUDIBLE) in Mount Sinai. He's done more autopsies in patients who have died without having
been infected with COVID. And what we're finding now is months, seven months, 10 months, now as a paper showing 15 months that this virus resides
in the body in every vital organ, brain, gut, pancreas, lung, for months and months and months.
A virus that persists, or genomic sequences that persist, have known long- term consequences, which -- at a later time we should discuss.
QUEST: I mean, the one I immediately think of of course, is HIV, which lives in goodness knows how many cells in different types of the body which
is why it's almost impossible to eradicate it.
SOON-SHIONG: Exactly. It's now been shown that this virus goes into thing called monocytes deep into the bone marrow. So the concern for that is
there are seven known viruses that cause cancer.
QUEST: I -- I'm going to -- I know you said earlier and you said at the beginning that you don't -- you want to be alarmist and you're not making
the claim that it is. Is it -- are we moving to a situation that life looks normal, except in China, but we just don't know the long-term ramifications
of this virus.
SOON-SHIONG: Unfortunately, when you say we just don't know there are few people who do know. And that's what some of them --
QUEST: What would you like us to do? Do you think we should all go back to wearing masks more frequently than we do?
SOON-SHIONG: Completely. I mean, the concern is Deltacron which is now out, by the way. The combination of Omicron and Delta. People getting -- I mean,
I don't know, it's very clear, you're getting infected even after vaccination. You're getting infected after having been infected. And what's
even -- I've just spoke to my colleague last night, is the patient now in the hospital in New York that's getting infected and mutated multiple
mutations in real time in this person's body.
[15:40:07]
So to wear a mask or around is not only good for you, but good for all of us.
QUEST: Thank you very much, sir. We'll talk more.
SOON-SHIONG: We'll do.
QUEST: It's really good to have you with us tonight.
(CROSSTALK)
SOON-SHIONG: Thank you, man.
(CROSSTALK)
QUEST: Thank you, sir. Thank you. With all of this going on, who does the public trust more in 2022? Tthe government or big business? According to
Edelman's annual Trust Barometer, business wins out again. And with that trust comes public demands that business do a lot more to tackle society's
problems. Edelman's chief executive is Richard Edelman in Davos. We talked about the survey's findings.
(BEGIN VIDEOTAPE)
RICHARD EDELMAN, CHIEF EXECUTIVE OFFICER, EDELMAN: It's business again as the number one. And actually all institutions rose, especially democracies.
But what's fascinating, Richard, is that rise was all in the top three quartiles of income. The bottom quartile had zero increase in trust.
QUEST: So, who's losing trust? Who needs to be worried?
EDELMAN: The bottom quartile is worried about inflation, they're worried about war, they're worried about another health issue. They're worried
about their financial security if there's a recession, and they might get fired. So, the bottom quartile, the yellow vest is just the beginning.
QUEST: Really? Do governments need to worry about from what -- from what you see in the survey?
EDELMAN: Government has to worry because they're not seen as competent. The big change is 50-point Delta between business and government. Therefore,
businesses being asked to do all these things in societal issues such as diversity and inclusion, or sustainability, et cetera. But you'd think
government should leave.
QUEST: Right. But is business being asked now to do too much? Is it overweight and buckling under the strain? And I'm thinking here, Florida,
Disney.
EDELMAN: Great point. The new juggle that they have to do is they had run their business, then they have societal issues. Now, the third ball is
geopolitics because again, 95 percent of people said, I want you to get out of a country where there's an invasion. So get out of Russia, and big trust
reward for companies that got out, big trust down for companies that stayed. But geopolitics is a broad definition.
So now it's repressive governments or human rights and all these new things. So you're right. The Imperial overstretch of business might be
here.
QUEST: This year's Davos feels very different and I don't just mean the obvious that there's no snow. It seems much more serious. There are fewer
people here that's less fruitfully going on over in the promenade. There's not as many vulgar storefronts.
EDELMAN: Look, I think the best thing about it is smaller number of people, more serious conversations. And business people recognize the impact of
inflation or, you know, cost of living or all these things that, you know, are going to be blamed on them. And they're really worried that government
isn't able to act.
QUEST: And are you having better, more detailed, more relevant talks here than in previous years?
EDELMAN: I think CEOs are absolutely opening up. They're asking questions because they don't actually have answers. And they feel as if there's a lot
of moving plates, and they have to come to a place where they can run their business well, deal with the employees because these are activist employees
now also belief driven consumers and ESG-driven investors. So they got a lot of things to handle.
(END VIDEOTAPE)
QUEST: And managing them is one of the challenges. It's been a tough couple of years, particularly of course, for the travel industry. The CEO of
Marriott joined me to discuss what is next.
(COMMERCIAL BREAK)
[15:46:34]
QUEST: Chief executive of Marriott says troubled demand is roaring back after the pandemic and that despite uncertainty in places like China.
Anthony Capuano told me this week in Davos, business travel, not that surprising, rebounding too.
(BEGIN VIDEOTAPE)
ANTHONY CAPUANO, CHIEF EXECUTIVE OFFICER, MARRIOTT: There are many factors, whether it's economic indicators that would suggest there may be a
recession on the horizon. The war in Ukraine, the lockdown in China. There are a whole host of issues, but we're not seeing it yet in our demand
patterns.
QUEST: So that pent up demand, the bucket list, whatever we call it, yes. That's still driving.
CAPUANO: No question. That and the fact that in the U.S. which is our biggest market, there are $2 trillion, plus or minus in savings accounts.
And I'm certainly not a sociologist, but I do think you talk about bucket list. I think the uncertainty created by the pandemic is causing folks -- I
want to start checking items off that bucket list. And it's rarely the purchase of goods. Its experiences and traveling.
QUEST: When you do look now what your priorities are, what are they?
CAPUANO: We've got to continue to restore confidence in the safety of travel, particularly in the group segment. If believe the numbers, one in
five jobs lost over the last two years, was in the tourism and travel sector, we've -- and for decades, it was a sector that was viewed as a safe
harbor for employment. We've got to restore that confidence in the workforce. And then I think technology.
Increasingly, the adoption of technology by necessity through the pandemic, we've got to continue to invest and innovate on the technology front.
QUEST: Airbnb is withdrawing from China. That's not something you could do even if you wanted to. You've got lots of hotels there and your pipeline is
there. So how are you managing this lockdown and uncertainty in China, which will be with us for the foreseeable future?
CAPUANO: Well, the great thing about our business as you well know, we get to reprice and resell our inventory each and every day. And so, it has been
intellectually fascinating to watch. There will be a breakout in a major city in China, lockdown is put in place. We see demand fall precipitously.
But when containment is achieved, and the market opens back up, we see occupancy recover very, very quickly. And so, there's a great deal of
uncertainty. And that's why it's such a worry for us.
QUEST: Give me some optimism. Give me some optimism.
CAPUANO: The demand for our hotels, particularly in leisure segments, led the recovery. Year to date we're 10 percent ahead of where we were in '19
and leisure. What I'm most encouraged about if you look at our performance in the first quarter, group business has roared back. In the U.S. we think
through the last three quarters of the year, we'll be single digits shy of where we were in '19.
Business travel, lots of discussion about. Business travel is forever changed, there'll be reduced permanently by 50 percent. In the fourth
quarter of last year, we were down 30 percent. In the first quarter of this year down between 10 and 15. So, there is slow steady recovery in business
travel.
(END VIDEOTAPE)
QUEST: Now the -- to other areas. The sequel of Top Gun was led to years because of the pandemic. Tom Cruise's new movies in theater isn't expected
to be a blockbuster. But what does it really tell us about new ideas? Is it just all recycled to the old stuff?
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
[15:52:36]
UNIDENTIFIED MALE: What the hell.
UNIDENTIFIED MALE: Good morning, aviators. This is your captain speaking.
UNIDENTIFIED MALE: They were off.
QUEST (voice over): Top Gun Maverick is expected to meet $80 million this weekend. It's a sequel to the 1986 blockbuster. Both of (INAUDIBLE) star
Tom Cruise. Hollywood has been relying heavier than ever on so-called franchise films. If you look at the top 10 grocers of the year, only two
are not based on a previous title or video game. Frank Pallotta is with me.
(END VIDEO CLIP)
QUEST (on camera): Is that different, Frank? I'm always very worried when sort of people start drawing these trends.
And then you suddenly realize, well, it's always been like this for the last 30 odd years. Is this different?
FRANK PALLOTTA, CNN MEDIA REPORTER: No, it's not really different at all. I mean, it -- back in the 80s, they used to have sequels all the time. It's
just the differences is that now we've seen kind of these multi -- these kind of cinematic universes pop up. And we just have this proliferation of
sequels. So, just everything now is this equal. That's how things have changed. But I think that when we talk about Top Gun Maverick, this is very
different than your standard Marvel movie, or your standard recoil or prequel or reboot or whatever you want to say.
This is a movie that comes 36 years after the original. This is a movie that actually isn't a part of a franchise. You don't have to really see the
original Top Gun to enjoy this movie. It obviously helps to know who Maverick is and know the basis of the story. And it's obviously calls back
to a lot in the original film. But it's unlike a Marvel movie where you don't have to watch 17,000 shows and movies to understand what's happening
in this one movie. And I think that's going to be to the benefit of it this weekend.
QUEST: It gets two groups, doesn't it? It gets those who saw the original and it gets those who start up initio and have no idea what it was all
about. Is it worth going to see?
PALLOTA: I haven't seen it yet. But from everyone I've talked to you, they love it. They love it more than the original film which is a classic to
many, many people and one of the biggest blockbusters of all time. People - - it has a 97 percent score on Rotten Tomatoes. It made $19 million last for its preview showings. It's on track to be Tom Cruise's biggest opening
ever by a large margin.
And to be quite honest, it's a huge deal for theaters because they've been struggling to get back, you know, older audiences.
[15:55:05]
And this is a -- this is a really great chance for them because think about this. It was 36 years ago this movie came out. So, the people who are going
to see it because they were there to see the original are an audience that they really need to get back for theaters. Because you can't just rely on
people who are, you know, in college and earlier. You need a bunch of different people.
QUEST: Frank, good to have you. Have a good weekend, sir.
I want to show you what's happening on the markets. And well, we're just about at the top of the day. 513. I mean, we might just be a few points off
the top, but an eight-week losing streak is coming to an end, at least tonight. If you look at the Dow 30, the Dow 30 is all green. You don't see
that very often. What's interesting, the thing I want you to focus on there are two stocks. Boeing and Apple.
Apple because it's always the stock that we've -- bounces back quicker than any other. And that seems to be a telling sign that Apple is once again,
sort of showing away in a market. Boeing after the appallingness of its recent performance, again, showing it's at the top. And in fact Boeing is a
large part of why the market is up. By the way, the NASDAQ is up three percent so. I can show you the triple stack very quickly as we go to break.
Whilst we go to have a break there'll be a profitable moment afterwards. And the NASDAQ is up three percent.
(COMMERCIAL BREAK)
QUEST: Tonight's profitable moment. It's Friday. I don't leave your the miserable thought. But I have been asking myself, am I too miserable? I
make too pessimistic? Several people in Davos accused me of this. They said look, there were young entrepreneurs here. There are social entrepreneurs.
There are people who are creating things, new ideas, the vibrancy. Yes, there's a Ukraine and yes, there's China and yes, there's COVID.
But we are still moving forward. And the more I thought about it on the train back to (INAUDIBLE) on the plane back to London today. I thought
they're right. Quest, cheer up of it. It's not as bad as you might think. And even if it is, it'll soon be over. You know how that goes. That --
somebody once said to me, it'll be all right. Then the other person said it already is. And that's QUEST MEANS BUSINESS for tonight. I'm a cheerful,
optimistic Richard Quest tonight.
[16:00:00]
The market is green, that will always put you in a good mood. Whatever you're up to in the hours ahead, yes, I hope it's profitable.
END
