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Quest Means Business
The Best of Quest Means Business. Aired 3-4p ET
Aired December 27, 2019 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:01:28]
UNIDENTIFIED MALE AND FEMALE: Five, four, three, two, one.
RICHARD QUEST, CNN ANCHOR: Wall Street -- all lit up for Christmas, as we come to the end of an extremely busy year. A trade war and Brexit. Qantas
testing the effects of the world's longest flight and I got my own moment with a stunt jet team. What a year it's been. Let's go for a ride
together.
Here we are again, the end of another year and a good moment for us to look back and take stock of some of the major events and put them into
perspective, the benefit of hindsight, and perhaps, there was no single event that was more important than the relationship between the Chairman of
the Federal Reserve and the President of the United States. Policymakers at the Fed and executive at the White House.
Even though the Fed cut rate multiple times this year, President Trump accused the Bank of holding back on economic growth. Now, speaking to me
earlier in the year, the Vice Chair of the Fed, Richard Clarida said, when they get all these pressures and threats, accusations and comments, they're
not fazed at all.
(BEGIN VIDEO CLIP)
RICHARD CLARIDA, VICE CHAIRMAN OF THE FEDERAL RESERVE: Well, let me just say this very clearly and without any equivocation, we have a very simple
mandate given to us by the Congress. It's a dual mandate. Our job is to use our tools to achieve maximum employment and price stability. That is
the only thing that motivates me and my colleagues.
We have a process here, it's not just us. We have Reserve Bank Presidents and I can tell you, I don't feel the pressure. The only pressure I feel is
to do the best job we can to keep the economy at full employment and price stability.
(END VIDEO CLIP)
QUEST: Rate cuts haven't stopped the President from insulting the Fed Chair. In August, he said, "Jerome Powell is like the golfer who can't
putt." I gave monetary policy my best shot in our studio. The question is which club will the Fed swing as it goes out? My trusty caddy with a club
or two. Thank you, sir.
Now, most of you who watch this program know my view on golf. Brings a good walk fiddling with sticks. Donald Trump wants a driver to hit a full
one percent basis cut, something along the lines of -- he is not going to get it.
Instead, investors are betting far more likely on a nice chip. They're going to use a wedge and aim for a cut of 50 to 75 basis points by the end
of the year with a bit of luck and a following wind.
Oh, so close. There is a chance, however, that despite presidential criticism, Chair Powell will use his putting skills with a nice short 25
percent basis points.
A couple of those wouldn't go amiss. There we go there. One, two, three. You get the idea.
[15:05:01]
QUEST: Now the Fed has a somewhat more scientific method for making decisions. Richard Clarida gave me a tour of the floor where policy is
made.
(BEGIN VIDEO CLIP)
CLARIDA: I get chills every day walking in. It's a lot of history in this building, in these hallways, and as you'll see, it's pretty compact along
here. The Governors are all along this corridor, so when I want to see Chair Powell or Randy Quarles or Brainard. Mickey Bowman, it's not -- I
have to make an appointment or a 20-minute walk because she just walked down the hall.
QUEST: Do you -- I mean, do you really do that?
CLARIDA: Oh, yes.
QUEST: That you're popping into each other's office and sort of -- have you seen this? Or coffee for that?
CLARIDA: Certainly. Certainly, Chair Powell has walk-in privileges as do the other Governors, and we see each other a lot. We have lunch regularly.
May, I give you a little tour of the Board.
QUEST: Yes.
CLARIDA: This is obviously --
QUEST: There it is.
CLARIDA: The seal.
QUEST: Wow.
CLARIDA: So Richard, this is -- this is where it all takes place eight times a year. I always wonder, how did they come up with eight? Not 12 or
six, but eight times a year, so we meet.
I can come show you our chairs. We actually -- in case we forget, we actually have little labels indicating where we sit. So you'll see this is
my seat and this is Chair Powell and Vice Chair Quarles and Governor Brainard and Bowman, so we all sit along this side.
QUEST: Oh, so the Governors are on this side.
CLARIDA: The Governors are on this side and then when we have meetings of the full committee, the rest of the committee members, the Reserve Bank
President, Chicago, New York, Philadelphia will all sit around the table and then the rest of the room is filled with the staff.
So these are big meetings. As you'll see, it fills the room.
QUEST: And is it cut and thrust? Or is it -- I mean --
CLARIDA: Excuse me?
QUEST: Is there cut and thrust?
CLARIDA: Oh, sure. And luckily for Fed watchers, there are transcripts of the meetings released with a five-year lag, so you can go back and you --
and including sometimes attempts at humor that work and sometimes don't work.
I should say, although, you should look at these plaques, they are very interesting. This room was actually used extensively during World War II,
too in order to basically -- to game plan the D-Day invasion. It was done in this room.
Read the plaque, "The decisions reached in this room during '43 and '44 set the pattern for Allied collaboration for the successful prosecution of
World War II."
QUEST: And all the reserve notes on the wall.
CLARIDA: And we have some reserve notes on the wall, and we have a nice big map up here to remind us of the country is divided into 12 Reserve
Districts. And so that map indicates.
QUEST: Final question, so last time, accused of squeezing more out. Final question, is it more difficult for you? You used to commentate? You're an
expert, an economist. Is it more -- was it difficult for you to realize that the sort of things you might have said on my program, you can no
longer really just as freely say, because it will move markets.
CLARIDA: Well, that's obviously a consideration and also I try to be very careful doing any of that to distinguish between my particular view and the
sense of the committee because any decision on policies of the committee decision not a Richard Clarida decision, so I try to be careful with that.
QUEST: But you can't just freelance.
CLARIDA: I try not to freelance.
QUEST: Pleasure. Thank you very much.
CLARIDA: Thank you, Richard.
QUEST: Thank you for showing us round. This is magnificent.
CLARIDA: Absolutely.
(END VIDEO CLIP)
QUEST: Aside from Fed policy, another great unknown this year -- Brexit. The U.K. was supposed to leave the E.U. back in March, and instead, we saw
extensions, elections and plenty of shouting.
(BEGIN VIDEO CLIP)
THERESA MAY, FORMER BRITISH PRIME MINISTER: I have got some advice for the Right Honorable Gentleman, look behind you.
JOHN BERCOW, FORMER SPEAKER OF THE HOUSE OF COMMONS: Order. Order.
BORIS JOHNSON, BRITISH PRIME MINISTER: There is only one chlorinated chicken that I can see in this House, and he is on that bench.
JEREMY CORBYN, BRITISH MEMBER OF PARLIAMENT, LABOUR PARTY: I think that that's quite enough of the playground politics of the Conservative Party
this evening.
JOHNSON: Call the election, you great big girl's blouse.
BERCOW: Don't just stipulate. Don't rant. Spare us the theatrics. Behave yourself. Be a good boy, young man.
(END VIDEO CLIP)
QUEST: Order. Order. When it comes to the Brexit mess, the writing is well and truly on the wall literally. One artist offered up this
interpretation of Theresa May sleepwalking and falling over hurdles earlier this year, and the man behind the work can by the name Loretto. I asked
him, what led him to this project.
[15:10:04]
(BEGIN VIDEO CLIP)
LORETTO, GRAFFITI ARTIST: I feel so inspired about all these things that happened actually, you know, on the quality from here and other countries,
United States and I think it's a lot of inspiration for artists really.
QUEST: But your art -- you're not European?
LORETTO: No.
QUEST: But you've decided that this satirical art against Brexit, what was the motivation when you feel the mood of the country?
LORETTO: It's like, I think, as an artist, we feel some chimes as inspirational how people feel.
QUEST: Right, so what are you saying about Brexit here?
LORETTO: Why do I say -- I think she need to think what people are thinking and what people are telling, because I think a leader must do
sometimes what people won't expect her to do, yes, and I think --
QUEST: Are you surprised at how popular these pictures have been? I saw lots of people take them?
LORETTO: I'm so happy about it.
QUEST: I mean, it has been quite a -- people are taking pictures and when I saw you the other day, people coming up and talking to you.
LORETTO: Yes, I like that.
QUEST: What are they saying about it? What are they saying?
LORETTO: They like the artworks. They like the meaning. They like the color because I want also to create something beautiful about maybe a
higher moment. Yes. Because this is all about life, right? Through her moments, we can create something good, you know.
And give some sort of message, yes, and also, in another hand to do like a comedy about like a comedian.
(END VIDEO CLIP)
QUEST: Well, Britain didn't manage to leave the E.U. this year. I did manage to leave Britain and went all the way to Australia on the longest
flight the world.
(COMMERCIAL BREAK)
QUEST: 2019 was such a busy year in one's travels. Airports, trains, journeys galore. And I have the passport stamps to prove it. All told, I
was in London for some 20 trips with Brexit this and Brexit that. I've been to Finland, twice, Helsinki. And the capital of Christmas, Rovaniemi,
where it's all about Santa Claus.
Marrakech with the camels. Hawaii with the tropical drinks and a summer rest about the Queen Mary 2. There were elephants in Sri Lanka and of
course, a quilt in Edinburg.
But as you and I know, travel isn't there any catching a bit there and the destination, it's about the journey, too. Qantas designed Project Sunrise
to be the world's longest flight from London to Sydney. Now, this was the expectation.
[15:15:05]
(BEGIN VIDEO CLIP)
QUEST: Imagine sitting here for 19 straight hours. Qantas wants to see how people handle the world's longest routes and it is running test flights
before -- do you have to? That's disgusting.
Commercial -- this isn't much better. Commercial services, it's all in aid of Project Sunrise. Get me out of here.
(BEGIN VIDEO CLIP)
QUEST: Now, Project Sunrise is turning more and more towards reality. And the reality is more spacious, though no less trying. From the science of
our sleep to a rare double sunrise. The flight was as much an experiment as it was an experience.
(BEGIN VIDEO CLIP)
QUEST (voice over): 4:30 in the morning when check-in begins.
UNIDENTIFIED FEMALE: Are you checking any baggage in?
QUEST (voice over): For QS 7879, the flight from London to Sydney.
QUEST: Good morning.
QUEST (voice over): We lift off before dawn and head east and our first sunrise on this double sunrise flight. It's a rare aviation event for the
same flight to see two sunrises across different days. Even the Qantas CEO takes time to capture the moment.
This flight is all about research for both crew and passengers. Learning how our bodies handle long ultra-long haul.
UNIDENTIFIED FEMALE: This really gives us a good indication of their sleep behavior at different times.
QUEST (voice over): That means exercise. Luckily, the plane is empty.
QUEST (on camera): This flight is an airline CEO's nightmare. Rows and rows of empty seats. They have to be empty. If they were filled with
passengers, we would never get to Sydney.
QUEST (voice over): The flight is also about research with the pilots and their brain patterns. Qantas will need to convince regulators to allow
pilots to be on duty for up to 24 hours.
UNIDENTIFIED FEMALE: I'm wearing an EEG monitor. This one will measure the alertness level while I'm sitting in the flight deck operating. I'll
switch to a different one for night.
QUEST (voice over): Our first meal is crafted to promote sleep.
UNIDENTIFIED MALE: So the way we've designed the menu is to really support the sleep cycles and the wake cycles throughout the flight. We've got the
high GI bread, and we're pairing that with dishes that have good quality for example, and that helps to encourage the production of serotonin and
melatonin.
QUEST (voice over): Halfway there and over China, some are sleeping, others or not, I'm just enjoying the experience.
Our second sunrise comes as we pass the Philippines. It's thought less than a thousand passengers in total have experienced the double sunrise.
QUEST (on camera): We're flying over the South China Sea and we've been airborne for some 12 hours, and we still have the equivalent of London to
New York to do.
QUEST (voice over): Qantas has put a lot of money and effort into ultra- long haul research far more than other airlines who have similar routes.
Alan Joyce explains why.
ALAN JOYCE, CEO, QANTAS: You can't do the type of studying that we're doing on regular flights. The pilot has got to be wearing headgear.
They've got to be testing you and I and you can't do that regular flights that you can do on these delivery flights.
QUEST (voice over): Before long, we're on final approach. This flight has got much faster than I expected. Not exactly sure what I've done for all
these hours. We landed in Sydney.
UNIDENTIFIED MALE: Congratulations on that flight.
QUEST (voice over): Now, we've broken the record. Yes, we've made history.
QUEST (on camera): So it looks like we've done it. The longest flight in the world in both time at about 19 hours 19 minutes and distance, well over
10,000 miles. Two records, one flight.
(END VIDEO CLIP)
QUEST: Flying takes a toll on the environment that much we are well aware. And 2019 saw calls to de-incentivize frequent flying, and a new willingness
from airlines to tackle environmental issues.
Qantas' Chief Executive Alan Joyce told me he is aware there's a problem and said his airline is working to fix it.
(BEGIN VIDEO CLIP)
QUEST: You're going carbon neutral by 2050. Aviation airlines, you are the whipping boy now in the environmental debate.
JOYCE: Yes.
QUEST: Do you think that's unfair?
JOYCE: Well, you know, I think you can't throw the baby out with the bathwater. You know, the positives of aviation that it has generated for
the world. It gets people to understand different communities, different cultures, it gets people to visit family and friends. It promotes
business. It promotes economic activity, and we are conscious that a large part of our communities now are uncomfortable with traveling.
[15:20:00]
JOYCE: We need to fix that, and what airlines have to do like we have is commit that we will get to net carbon neutral by 2050. That we give people
the ability to offset our carbon emissions; that we do develop sustainable aviation fuel, which is what we're doing. Because you cannot throw the
baby out with the bathwater.
QUEST: Do you think though -- I find with carbon offsetting schemes, I always -- when I say it's not -- it's a scam. But I always wonder where
the money goes? Who audits it? And it almost seems like a jolly good idea, but I'm not sure it works.
JOYCE: So the schemes that we have, and we've got one of the biggest schemes in the world, 10 percent of our customers on qantas.com offset the
carbon emissions. They are certified by the Australian government. They have to deliver a benefit that that is certified, so it goes through a very
rigorous process that we audit, that the government audits and with that --
QUEST: But it is still seen as a do-gooder thing. You know, you tick the box, whatever, but if you ask most business travelers, they don't do it.
JOYCE: So I'll tell you what? A lot of our corporate accounts are now doing it as part of their dealing with Qantas and all of Qantas's duty
travel are offset against carbon emissions.
QUEST: Carbon neutral by 2050. Can you not do it sooner?
JOYCE: So no, I think to get there, you're going to need to develop a sustainable aviation fuel, and to get that to be an economic alternative is
going to take a number of years, I think to get there. And it's going to need new technology.
We're replacing all the 747s by the end of next year. But the new technology, a new aircraft is going to be key in also helping get there.
Can I say also for people that are having a view on carbon offsetting, isn't it better to do that than nothing?
And I would encourage people, really to offset our carbons, we do as I said, I try and encourage as many of our customers to do it because it is
better to contribute back to the environment by offsetting your carbon emissions in projects that I can see having a big benefit to the
environment.
(END VIDEO CLIP)
QUEST: One startup has the solution to going green when you get off the plane. It's one small hop for man, one giant leap for the planet. Yes,
it's pogo sticks.
(BEGIN VIDEO CLIP)
QUEST: Oh, well done. Genius are hopping mad. The Swedish startup Cangoroo is launching a pogo stick rental service from San Francisco to
Paris.
Now, it is the alternative to the one that I've been using, which is highly preferable -- where am I going? Just bear with me one moment, I promise
you I will return. Yes, it's highly good, and we've done this one before.
But why would you forsake this to go with this? Right. How realistic all of it? Smart pogo sticks count your jumps. It also has a GPS to keep you
bouncing the right way. It'll cost $1.00 to unlock 30 cents per minute. It's not allowed on the highways and indeed in the studios and we will
probably all be fired.
Adam Mikkelsen is the CEO and cofounder of Cangoroo. He joins me from Malmo, Sweden via Skype. You can't be serious about this?
ADAM MIKKELSEN, CEO AND COFOUNDER, CANGOROO: Well, in fact we are. And like thinking about it, like we don't see that we're actually going to
compete with the e-scooters per se, but what we do see is that having pogo sticks in the city especially by, you know, city parks and boardwalks and
stuff like that people could, you know, have fun and they could, you know, get some well needed workouts into their daily routine. So we've got a
demand for it.
QUEST: So where did the idea come from? Because it's not the sort of thing you wake up on an average Tuesday and think, you know, I think I'm
going to bring out the pogo stick.
MIKKELSEN: Yes, so basically with a background in branding and marketing, we run an advertising agency as well. So we've been following the
micromobility industry for quite a while, and what we saw was basically that all of today's players are quite generic in the industry.
So we -- basically, we saw an opening for a brand to launch that are actually kind of putting brand first. And you know, naturally, the pogo
sticks won't be our only product, but we definitely see that as our main product.
(END VIDEO CLIP)
QUEST: And the man who promised to do whatever it takes to save the euro has stepped down. Now, there's a new head of the European Central Bank.
(COMMERCIAL BREAK)
[15:25:46]
QUEST: He 2019 brought changes at the top of some of the world's most important financial institutions. For instance, Christine Lagarde left the
IMF to join the European Central Bank replacing Mario Draghi.
Anna Stewart looks back at the man known as Super Mario.
(BEGIN VIDEOTAPE)
ANNA STEWART, CNN REPORTER (voice over): He is known as Super Mario, the man who saved the Eurozone.
He became head of European Central Bank in the middle of the European debt crisis. Europe had already bailed out Ireland, Portugal and Greece and
anti-austerity protests were sweeping across the continent. Markets were in turmoil. Politicians were worried about the breakup of the Eurozone.
Then in July 2012, Mario Draghi said this.
(BEGIN VIDEO CLIP)
MARIO DRAGHI, FORMER HEAD OF EUROPEAN CENTRAL BANK: The ECB is ready to do whatever it takes to preserve the euro.
(END VIDEO CLIP)
STEWART (voice over): It wasn't even an official ECB meeting, but that speech defined Draghi's legacy. Three words, whatever it takes. It was
enough to calm investors' nerves, the Eurozone survived.
And although Draghi backed up his words with action, an emergency bond buying program with OMT, it was never needed. In his eight years as ECB
President, Draghi never raised interest rates.
In fact he took rates into negative territory. He also has a store of controversial program of stimulus buying nearly $3 trillion of Eurozone
assets. One press conference stands out in Draghi's career.
In 2015, a feminist activist made a surprise appearance. She showers him confetti while yelling, "End the ECB dictatorship." As soon as she was
removed, Draghi coolly returned to his statement.
It wasn't just what he said but what he wore that drew the attention of the financial world. Some claiming the color of his tie indicated his stance
on monetary policy, the methodology diligently pursued by French bank, Credit Agricole, only be found completely lacking of any real correlation.
No doubt his successor, Christine Lagarde will undergo similar scrutiny, perhaps on the color of her scarves.
Draghi enjoyed the job, despite the enormous pressures it presented.
(BEGIN VIDEO CLIP)
DRAGHI: It was originally an obligation, then it became a welcome obligation, and then even a pleasure.
(END VIDEO CLIP)
STEWART (voice over): Meanwhile, journalists wanted forward guidance on his next career move. His answer --
(BEGIN VIDEO CLIP)
DRAGHI: But if you want more information, just ask my wife.
(END VIDEO CLIP)
STEWART (voice over): Anna Stewart, CNN, London.
(END VIDEOTAPE)
QUEST: Christine Lagarde says she trusts Mario Draghi has done the right thing. Some of Draghi's colleagues disagreed with his whatever it takes
redux and resigned. That means Christine Lagarde is walking into a bank that's divided on the future of stimulus.
At the IMF Headquarters in Washington, she told me dissent is healthy and even necessary, up to a point.
(BEGIN VIDEO CLIP)
CHRISTINE LAGARDE, THEN OUTGOING MANAGING DIRECTOR, IMF: You know, it's -- I think it is good that there are different opinions. And if it was
unanimity consensus, there would be none of that debate which is so necessary and productive because who has the ultimate gospel on economics?
On monetary policies? There's a lot of uncertainty. There's a lot of questioning going on at the moment.
What actually works? What doesn't work? What are the good transmission channels? So I think to have the debate is very healthy and very good and
there should be room for dissent.
I think what I'm most concerned about, and it's been my life and my DNA is to bring people together and once the decision is made to actually live
with it and speak to it. Because it's been the decision of the group.
QUEST: Is that even possible at something like the ECB?
LAGARDE: We'll see. We'll see. As I said, debate, dissent, arguments -- all of that is necessary and it's healthy. Once the decision is made,
there should be a landscape where we're all in it together and we'll move forward.
QUEST: Finally, we have to always come back to fixing the roof while the sun shines.
[15:30:03]
QUEST: You've done a lot of work on structural reform here at the Fund, but countries have done nowhere near enough. It's even worse in Europe,
where a certain element of structural reform has been done. But the move towards that single digital market, all the other things that the ECB has
been calling for are still -- do you have great hopes for success?
LAGARDE: I will certainly advocate and do my part in order to help deeper and better structural reforms to just unleash the potential of Europeans'
enterprises, households, entrepreneurs, because there is a richness there that in many instances is restricted or refrained by too much bureaucracy,
not enough mobility, not enough flexibility and fluidity, so I will do the best I can in my field.
QUEST: But now you're really going to be tested, aren't you? Because you're going into an economic field, and really what this job now requires
is not a PhD or an economist, it requires somebody who can pull this whole thing together, isn't it? Who can keep this train on the tracks?
LAGARDE: Yes, keep the train on tracks and drive the monetary bus in the direction of stability and cohesion, and I will do the best I can to do
that job.
QUEST: Do you worry that you can be bamboozled by the economists?
LAGARDE: They've always tried to do that with me. You know, when I joined as Minister of Finance, they all said at the time, she's a lawyer. Well, I
can listen, I can absorb. I've eaten a lot of files and tried to understand a lot of concepts. I don't master them, and I'll never be a PhD
in Economics, let alone macro, you know, macroeconomics or econometrics.
I've had it at the IMF as well. You know, it's a fantastic institution, which is largely dominated by economists. They probably all thought at the
time, she's a lawyer. She was a Finance Minister for a little while, but she is just a lawyer.
Well, again, I can listen. I can absorb. I can learn from everybody. I'm sure the same thing will happen to me at the ECB, we'll see.
(END VIDEO CLIP)
QUEST: We couldn't let Madam Lagarde go to Frankfurt empty handed and for luck, we couldn't open our present inside, so we went to the roof of the
IMF.
(BEGIN VIDEO CLIP)
QUEST: You constantly say fix the roof while the sun shines.
LAGARDE: Yes.
QUEST: Where you are going, it's not bad.
LAGARDE: It's so bad. It's not raining. You're right. But the sun is not really shining either, yet.
QUEST: And where you're going, arguably, there are more rain showers. Arguably, a lot more rain showers in Frankfurt, ECB, Eurozone, Brexit -- so
we figured you'd need this. We figured you need this. It is your own umbrella, but despite the fact it is dark outside in your world, it is
always sunny.
LAGARDE: Being optimistic has a lot to do with inspiring confidence. And that's what we are very short of at the moment. Thank you.
QUEST: Thank you.
LAGARDE: Thank you, Richard.
(END VIDEO CLIP)
QUEST: Bill Campbell was one of the most influential players in Silicon Valley, and most of us never even knew who he was. He coached the biggest
bosses in high tech and big tech, from Bill Gates, to Steve Jobs to Eric Schmidt, and two fellow Alphabet alums who wrote a book on just how and why
Campbell was so effective.
(BEGIN VIDEO CLIP)
QUEST: You've all had mentors. You've had mentors. You've had professional mentors. You've had people who have guided you? What was the
difference here?
ALAN EAGLE, DIRECTOR, EXECUTIVE COMMUNICATIONS, GOOGLE: You know, it's both very difficult and very simple. A lot of the things that Bill did,
any of us can do as managers and leaders. You know, it starts with being a good manager running a tight ship. Second, building trust and really
listening to people, really having their back.
ERIC SCHMIDT, FORMER EXECUTIVE DIRECTOR, ALPHABET: But almost everybody I know, the first reaction they have is, I don't need a coach. By the way,
that was my reaction. That was his reaction.
JONATHAN ROSENBERG, ADVISOR, ALPHABET: It was my reaction, too.
SCHMIDT: We don't need coaches.
QUEST: So what would you say to me, if I say to you, I don't need a coach if I work for you. What would you say?
SCHMIDT: I'd say, do tennis players have coaches?
QUEST: Yes.
SCHMIDT: Yes. And the tennis players are better than the coaches, aren't they? And still they have coaches. Maybe coaching is different than doing
--
ROSENBERG: Is every one of your shows terrific?
QUEST: Oh, that's a very nasty question. I'll thank you not to go there.
ROSENBERG: What Bill would do if he were here, he would have told you that you're the best host in the industry. And then one day when you had a show
that wasn't so good, he'd say, you know, you weren't your best today.
You're much more likely to listen to somebody who behaves that way.
SCHMIDT: Notice he didn't say that you did a bad job. He said you could have done better and then you yourself, make yourself better. That's what
coaching is.
Coaching is letting you see where you can be and getting you then --
(END VIDEO CLIP)
QUEST: After the break, as "Top Gun" makes a comeback, I underwent a stomach churning, acrobatic jet experience. I was inverted and tossed
around the skies. I need to sit down.
(COMMERCIAL BREAK)
[15:37:48]
QUEST: It is time to open up the presents. Maybe a model plane if you're lucky. The Breitling Jet Team gave me a truly tremendous gift earlier this
year, my very own "Top Gun" moment.
(BEGIN VIDEO CLIP)
QUEST (voice over): This is not your typical flight where you ensure your seatbelt is fastened --
Seven thousand feet above ground, and the Breitling Jet Team, it's a battle of lumps.
It all began in such an orderly fashion. Excitement overflowing in the room.
GEORGE KERN, CEO, BREITLING: So Richard would be in position number three and we will have a fantastic view on the whole jet -- the seven jets. It's
frightening, but I'm sure he will enjoy it.
QUEST (voice over): For this sort of flight, preparation is everything.
KERN: This one. You have to wear this one. This is your size.
QUEST (voice over): You can't fly if you're not dressed properly.
QUEST (on camera): Perfectly comfortable.
QUEST (voice over): Like any other flight. Here, there is a safety briefing. But this one involves ejector seats.
UNIDENTIFIED MALE: Let's go.
QUEST: And so into the air where everything changed. I was fine for the first loop. The barrel roll had me in stitches.
[15:40:10]
QUEST (voice over): And then, the second loop. (INAUDIBLE) requires you wear a veil over the rest.
Back on the ground, I can reflect the pilot's skills, the plane's performance, the excellence of the experience. I feel elated. Let's be
honest though, I won't be doing this again.
(END VIDEO CLIP)
QUEST: In a year of acrimony over impeachment and Brexit, there was one feel good moment that took place in July, the world celebrated one of
mankind's greatest achievements -- 50 years since this moment.
[VIDEO CLIP PLAYS]
QUEST: That that was the result of course of years of effort, setbacks, sacrifice. Sir Richard Branson told me how the moon landing half a century
ago prompted him to start his own space company.
(BEGIN VIDEO CLIP)
RICHARD BRANSON, FOUNDER, VIRGIN GALACTIC: I think if Neil and Buzz had not landed on the moon, we wouldn't be running Virgin Galactic, our space
company and I suspect Elon and Jeff wouldn't have been running theirs.
So it was for me, it was what inspired me to ultimately start Virgin Galactic and get people into space.
QUEST: You were 19 when the event happened, and I'm guessing you remember it very well.
BRANSON: I was sitting in front of a tiny black and white TV set. There was only one channel in those days, BBC and with my family, my sisters, we
were all huddled around the TV in our pajamas, watching, you know, the most extraordinary event and it was just one of those things -- I mean, maybe
the only one in my lifetime, there was nothing but good attached to it.
And you had all the best scientists in the world getting together to make it happen. The last time we have had with America who got together to make
something happen, it was the nuclear bombs, so how lovely that we had something that the whole world could embrace.
(END VIDEO CLIP)
QUEST: Now in October, his company, Virgin Galactic boldly went where no space company has gone before -- a public listing. Sir Richard told us
it's all part of his quest to get Virgin Galactic moving faster.
(BEGIN VIDEO CLIP)
BRANSON: What's exciting is the public can now invest in a spaceship company, they've never been able to do that before. They can invest in the
best spaceship company, there is -- Virgin Galactic.
And we've managed to get the resources from this flow for Virgin Galactic to expand rapidly the number of spaceships we've got. And the advantage of
expanding the amount of spaceships we've got rapidly is that we'll be able to start bringing the price down in the years to come. So, you know, it's
great -- it's great to be able to prove that we have built a company that the public love and the institutions love and it's so far so good.
ELENI GIOKOS, CNN BUSINESS AFRICA CORRESPONDENT: When I look at this spaceship, I mean, it looks like an airplane. I know that you guys do have
an ambition to get into hypersonic travel as well, which is, I mean, it will help someone like me who's always in the air. But how quickly can
that happen?
GEORGE WHITESIDES, CEO, VIRGIN GALAGTIC: Well, I think what's exciting is that when we are operating commercially, and we've already done this in
test flight is we're going to be the only company that's bringing people on a winged vehicle at Mach 3-plus speeds, right? So that's really
tremendous, right? That's a huge thing.
And we're going to be developing, you know, a ton of data that will help us design future vehicles, and that's going to come --
GIOKOS: Is that under process already?
WHITSIDES: Yes, it is already in the process. And so -- and so, you know, we recently had this great investment from Boeing, you know, which put a
bit of money into the company and that closed along with this deal, and we're going to work with them to think about high speed mobility solutions,
right?
How do we get people from one place to another, you know, much faster on the Earth's surface? And so we don't know where that journey will exactly
lead in terms of what the exact design will be. But I think it's an exciting pathway and it is like you say, it is a huge market for --
GIOKOS: Yes, I know
(END VIDEO CLIP)
QUEST: Throughout the year, we watched Beyond Meat and its share price. It seems to be the gift that kept on giving. It was one of the best
performing IPOs of the year. That was then, this is now. We'll take a look at how the fake meat performed against the real thing. We had a full
throttle taste test.
(COMMERCIAL BREAK)
[15:46:58]
QUEST: I love the holiday season, all the treats, cookies for me, a biscuit or two and carrot for Rudolph. The year was the year of fake meat.
Beyond Meat stocks skyrocketed. Its rival Impossible Foods said it had no plans to follow suit and go public.
(BEGIN VIDEO CLIP)
DAVID LEE, CHIEF FINANCIAL OFFICER, IMPOSSIBLE FOODS: Well, investors look at $1.5 trillion meat and dairy market globally and they're recognizing the
meat eaters and we see this every day, consumers of the Impossible Whopper are saying you know what, we want something better. And that's a huge
opportunity for the business as well as the mission to make the world a better place.
QUEST: Okay, but the -- you must have been greatly fortified when you saw the way Beyond Meat did? Rocket on the market.
LEE: We were extremely pleased for them and for anyone who seeks to serve the mission we have.
QUEST: But you don't intend to stay private forever, do you? Shouldn't you be turning those yet?
UNIDENTIFIED MALE: Just a couple more seconds and we'll get into that. You'll see that you'll sear, it's just like beef.
QUEST: Oh, it is. It is.
UNIDENTIFIED MALE: The visual cues are exactly the same. It responds the same and you can use it for much more than a burger.
QUEST: Really?
UNIDENTIFIED MALE: Yes, meatballs, meatloaf, lasagna, tacos -- you name it. Anything that you can do with the ground meat.
LEE: Dumplings in Hong Kong. It's in Korean food in Macau. It performs like beef, it transforms though it is plant based.
QUEST: Right. So back to your financials.
LEE: Yes.
QUEST: Mr. Lee, you're a private company. You don't have to reveal, but you are going to have to reveal at some point. When -- let's just go
straight -- a simple question. When do you hope to IPO? If only because your investors will wish to realize and have an avenue out?
LEE: We have to give our investors great return. There is no question. But that does not presuppose that we have to IPO.
QUEST: You are in -- and are you in competition with Beyond Meat? You sort of have an amalgam of overlap in the restaurant business, but they are
meat to consumer, you are meat to the industry.
LEE: I think that our competition for Impossible Foods is not Beyond Meat. We don't compete really for capital. We don't compete for share of
stomach. Our consumer is the meat eater. Our true competition for the meat eater is what they're choosing to eat today from an animal.
(END VIDEO CLIP)
QUEST: I then had dinner with Guru La Monica where we put the fake meat to a real test.
(BEGIN VIDEO CLIP)
QUEST: Do you think this is the future? I will wait until you finish. What did it taste like first?
PAUL LA MONICA, CNN BUSINESS REPORTER: There's a lot of ketchup on here so I taste the ketchup. No, I've never had the Beyond Meat burger before. I
will admit I like the Impossible better. I've had the Impossible burger several times, including at the now defunct corporate cafe in this
building.
But as a person who does not feel any reason to stop eating meat, I will enjoy a meatless, plant-based burger every now and then I don't feel like
I'm missing all that much.
QUEST: All right, try the -- that was the Beyond. Try the Impossible.
LA MONICA: Try the Impossible.
QUEST: Which sort of looks a little more meaty.
LA MONICA: I like the fact that it has that texture and the red meat sort of feel to it.
QUEST: But they are not IPO-ing yet, are they? At some point they will, no doubt?
LA MONICA: I would have to think they will especially as I talk with my mouth full, I hope my mother is not watching or my wife for that matter. I
think that Impossible will eventually need to go public in order to stay competitive with Beyond.
[15:50:00]
And also, Richard, the key thing is Beyond Meat -- Impossible does not have a retail presence yet. That's something they're working on.
I'm looking forward to the day where I can buy one of these and make it at home. You can't do that yet. I think an IPO will help them in that
regard.
QUEST: Now, this is the meat one. The real meat. Can you tell the difference? Can you tell the difference?
LA MONICA: I can actually. There's something about the texture. It's juicier. I think that Beyond Meat and Impossible have done an admirable
job of mimicking the mouth-feel for lack of a better word -- has that ever been used on CNNI before -- of real beef, but there is no substitute for a
real meat burger in my --
QUEST: But if I'm playing with my food that's what --
LA MONICA: You shouldn't do that, Richard.
QUEST: I know, but --
LA MONICA: The dad in me says you should not.
QUEST: That's what the three of them look like. Now can you tell which is which just from that? Can you tell because it gets to the point where you
really can't, but does it really matter? Who is going to be the winner in this?
LA MONICA: Beef versus plant based or Impossible versus Beyond Meat?
QUEST: Yes.
LA MONICA: I mean, I think that clearly, clearly, I think that both of these companies have done a good job of catering to people like us who want
to eat a real beef burger, but occasionally have the plant-based, healthier non-meat solution as well.
But I mean, at the end of the day, I'm not going to Shake Shack anytime soon and try and ask for a meatless burger if they have one.
QUEST: Right. Well, it was very kind of you to join me for dinner. I have to dash, and you'll take care of the check. Thank you.
(END VIDEO CLIP)
QUEST: Oh, which one? Which one? Decisions. Decisions. Still to come. Old shows become new media. The fight for content breaks out across the
streaming landscape. Oh, I can't have that one.
(COMMERCIAL BREAK)
QUEST: The Holiday times is for lazing on the couch and Clare and I are cozy here on the couch from "Friends," not our favorite Christmas shows and
movies. But this year it's going to be a lot more complicated when it comes to deciding what to watch.
CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT: Yes, that's right, Richard. This year, there's a slew of streaming services. In Christmas past, of
course, we have Hulu, Netflix and Amazon Prime. Now, Christmas present -- we can add in Disney Plus and Apple Plus and by Christmas future, we will
have Peacock, HBO Max and BritBox which announced their launch this year.
QUEST: Except they're all still fighting over content and content these days is about good old fashioned programs, and shows like "Friends."
SEBASTIAN: Exactly. "Friends," 236 episodes, 10 seasons still on Netflix, but not for long because it's moving to HBO Max next year. It's a sitcom,
but it's also a streaming staple, Richard, and big brands have been cashing in on its nostalgic revival.
QUEST: Turn up the telly.
(BEGIN VIDEOTAPE)
SEBASTIAN (voice over): From product placement --
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: This wonder broom is amazing.
(END VIDEO CLIP)
[15:55:00]
SEBASTIAN (voice over): To memorabilia and even haircuts, "Friends" has always been a brand that sells.
SEBASTIAN (on camera): And 25 years on that hasn't changed. It's still not enough of you as just to watch the show. They want to live in the
world of Monica, Chandler, Ross, Rachel, Phoebe and Joey and that means eating their food, sitting on their couch and of course, drinking their
coffee.
And businesses are taking advantage. Coffee chain, Coffee Bean and Tea Leaf jumped at the chance of a tie up for the anniversary launching a
special edition range of coffee specialty drinks and memorabilia.
(BEGIN VIDEO CLIP)
DARRIN KELLARIS, VP MARKETING, COFFEE BEANS AND TEA LEAF: Our "Friends" themed coffee mugs we pre-released and actually sold out in about three
hours.
(END VIDEO CLIP)
SEBASTIAN (voice over): They also hosted two pop up Central Perk events in Los Angeles in August.
(BEGIN VIDEO CLIP)
KELLARIS: Those two locations we saw significant spikes in foot traffic, but more importantly as a business it really bolstered system wide sales.
RACHEL GREEN, FICTIONAL CHARACTER, FRIENDS: Isn't it cool? It's an apothecary table.
(END VIDEO CLIP)
SEBASTIAN (voice over): "Pottery Barn" also brought back the famous apothecary table which despite its thousand dollar price tag is a top
seller in its department, the company says, it must be the antique properties.
(BEGIN VIDEO CLIP)
PHOEBE BUFFAY, FICTIONAL CHARACTER, FRIENDS: You can almost smell the opium.
(END VIDEO CLIP)
SEBASTIAN (voice over): Even Lego is getting in on the action with a $60.00 replica of Central Perk. Lego says it's one of its fastest selling
sets ever.
SEBASTIAN (on camera): Now, of course, none of these promotions would work nearly as well if "Friends" hadn't experienced a revival in the age of
streaming. Last year, it was Netflix's second most watched show and the company reportedly paid around $100 million to keep the rights to the show
for one more year before it goes on a break, moving to Warner Media's HBO Max streaming service in 2020.
(BEGIN VIDEO CLIP)
DAN IVES, EQUITY ANALYST, WEDBUSH SECURITIES: It's an iconic show and ultimately it's really one of the crown jewels of streaming. Everything
changed now with HBO coming in a major shot across the bow of Netflix taking "Friends" and I ultimately believe two to three percent of Netflix
viewers watch it just because of "Friends."
(END VIDEO CLIP)
SEBASTIAN (voice over): So for those who say "Friends" and money, don't mix.
(BEGIN VIDEO CLIP)
BUFFAY: What's more important? Your friends or money?
(END VIDEO CLIP)
SEBASTIAN (voice over): This 25-year-old sitcom still gets the last laugh.
(END VIDEOTAPE)
QUEST: You have to get in the Holiday spirit at this time of year. And that's it for this Special Edition of QUEST MEANS BUSINESS. What a
magnificent, year it has been and it wouldn't have been half as good without you.
So whatever you're up to in the year ahead, I know, it'll be profitable.
[15:57:25]
END
