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Quest Means Business

Major European Travel Stocks Sinking In London Exchange; Fortnite Maker Sues Apple And Google After App Store Removal; Dozens Of Police Drop Shields, Greet Protesters In Belarus; Turkey Considers Suspending Diplomatic Ties With UAE; Brazil's Economy Falls Nearly 11 Percent In Q2. Aired 3-4p ET

Aired August 14, 2020 - 15:00   ET

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

[15:00:20]

RICHARD QUEST, CNN BUSINESS ANCHOR: Last day of the trading week, and there is just an hour left to trade. The markets betwixt and between.

The direction of the early part of the week seems to have evaporated. You see that by the fact, you know, you are up a bit and then you're down a bit

and the Dow is virtually unchanged.

The sort of factors that investors have thought of today, and the factors affecting the markets.

Travel stocks have been sinking as Europe's summer season is turning sour, making the best of what they can.

The makers of Fortnite entering a Battle Royale with Apple and Google. And Chinese retailers have had a tough month, and that's weighing on markets

around the world.

Live from New York, I'm Richard Quest on Friday. It's August the 14th. Of course, I mean business.

Good evening. It is the middle of August, and the European summer holiday season should be in full swing. People are trying to do their best, but as

you will hear in tonight's program, that's proving just about impossible because of the various COVID restrictions.

Travel corridors are collapsing, quarantines are being introduced or strengthened, and travel companies are basically having an exceptionally

tough time, to say nothing of the companies.

So, Germany is now designating Majorca as a coronavirus-risk zone. So it joins nearly all of Spanish, you'll remember of course that the U.K.

already has the whole of Spain. Spanish bars and clubs are closing across the country.

And the U.K. has now implemented quarantine restrictions for travelers returning from France and The Netherlands. All of that will happen -- come

into force tomorrow, given only hours to get home in time.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We have chosen, when we heard the news late last night, we changed our plans and decided to come straight home to miss the

quarantine.

UNIDENTIFIED MALE: It just seems completely disorganized. It just seems utterly ridiculous. But, hey, you know, I've driven for what -- 11 hours

with breaks, so you know, getting back to make sure that I don't have to self-isolate. That's it, really.

(END VIDEO CLIP)

QUEST: So, as you can see, the situation in Europe, whilst people go away to have a good time and to rest has now turned into something far more

stressful.

Nina dos Santos reports on the plight of those tourists in France.

(BEGIN VIDEOTAPE)

NINA DOS SANTOS, CNN CORRESPONDENT: In yet another blow to what's left of the last few weeks of the European holiday summer season, the U.K.

government decided to impose a 14-day quarantine rule on travelers returning from places like France, Malta, and also The Netherlands as well

as the island of Aruba and the Turks and Caicos in the Caribbean.

All of this was designed to try and avoid reimporting coronavirus from places where infection rates are rising like in France.

And in fact, France is going to be the country that will be dealt the biggest blow from this. Its government said that it expressed regret at the

British decision, didn't rule out taking perhaps reciprocal measures.

Although it is unclear just how effective those would be with just three or so weeks left of this tourism season to go.

Grant Shapps, the British Transport Secretary said that the estimated about 160,000 Britons were in France as of Friday morning, and that prompted

concerns that many of them would try and head north towards the Port of Calais, desperately to try and get on a train under the channel or

otherwise on a ferry.

But the operators of those services stressed to people that if they didn't have a ticket, please, do not head towards those ports.

Either way though, the new quarantine restriction comes into force at 4:00 a.m. on Saturday. For those who haven't made it back to British shores by

then, they will have to self-isolate for 14 days thereafter.

Nina dos Santos, CNN, in London.

(END VIDEOTAPE)

QUEST: This is all having a serious effect of course on the share prices of those companies involved. All the major travel companies are lower. IAG,

owners of Iberia and British Airways, EasyJet, Ryanair and TUI, the shares have sunk on the market by some considerable amount.

If you take TUI, for example, which is the largest travel group in the world, nearly double digit losses there.

[15:05:10]

QUEST: The travel industry and the various companies and countries are trying to put a brave face on what is turning into an awful time.

For example, yesterday, Portugal's Tourism Minister told me their numbers were only down by 50 percent. Throughout the course of the week, we have

reflected what's been going on and hearing just how bad the situation is for travelers and countries alike.

(BEGIN VIDEO CLIP)

RITA MARQUES, PORTUGUESE SECRETARY OF STATE FOR TOURISM: We estimate a kind of 50 percent -- maybe 50 percent less receipts -- tourist receipts when

compared to what we had last year. But still, people are coming.

ERICH SIXT, CEO, SIXT: In Europe, on some airports, we are already at pre- corona times. Hotspots like Majorca, like Sardinia in Italy, like the French quarter's tour, and especially Germany.

TONY FERNANDES, CEO, AIRASIA GROUP: We need optimism now. If we put our heads in the sand and try and die, then we might as well close down now.

Flying is important. Flying is an important part of the economy.

DR. HANS KLUGE, EUROPE DIRECTOR, WORLD HEALTH ORGANIZATION: Thirty one out of 50 countries are seeing quite a significant increase in cases, which is

anticipated once the lockdowns were lifted.

So absolutely, to regionalize the solidarity looking across the borders is very, very important.

(END VIDEO CLIP)

QUEST: The W.T.T.C., that's the private body representing the tourist industry has been writing to government ministers in Europe asking for a

coordinated response. Gloria Guevara is with me, the President and CEO of the W.T.T.C. She joins me now from Crete.

Hopefully, Gloria, you are trying to have a bit of a holiday during all of this. But as we have covered all week, it's just about impossible, even for

those countries that are doing half well, to have anything like normality.

GLORIA GUEVARA, PRESIDENT AND CEO, WORLD TRAVEL AND TOURISM COUNCIL: That's absolutely right, Richard. Thank you for having me and greetings from

Greece. Unfortunately, this is a disaster.

The lack of coordination among governments is pretty sad, and we are heading in the worst case scenario. It is totally unprecedented. They are

working in silos. We don't have a coordinated approach.

That's why 120 of our CEOs from around the world with W.T.T.C., we wrote to the G-7 plus Spain, Australia and South Korea, beggin them, asking them to

coordinate because this unbelievable thing we are seeing, the lack of coordination is impacting our sector already.

A hundred and twenty one million jobs have been affected as you know, and we are heading to the worst scenario, which is 197 million by tend of the

year if they don't work together, if they don't coordinate.

QUEST: I am not sure I understand what you mean by coordinate. Because each country has its own coronavirus situation where they are going to stop and

start, allow and disallow travelers to and from those countries in a worse position.

GUEVARA: Let me give you four examples, Richard with this lack of coordination. I understand that every country has the right to make their

own decisions. But with power also comes responsibility, right?

We need to have consistency. Travel is not just within the country. It is international. As you know, it is the backbone for it. For instance,

wearing a mask. We need consistency.

Wearing a mask in all forms of transportation. Depending on the country, they impose whatever they think is the best. Why they don't work together

and to find the same protocols.

Second is testing. We need massive investments in testing. Testing that is PCR accuracy, 90 percent, that is fast, that is cheap, that you can get the

results within less than 90 minutes and you can do testing before departure.

If they can talk and coordinate and have standards in testing that we can play massive testing before for instance, international departures, then

you have the guarantee that everyone on your flight has tested negative and then have the quarantine only in the positives.

Look at what is going on right now in France and in all of these countries. It is unbelievable that we are heading in that direction.

And I understand the decision from the U.K., don't get me wrong. But why there is no coordination? Why they don't talk to each other? Why they don't

define the policies as we have done in some crisis in the past like in the 2008 financial crisis. Right?

QUEST: It is a bit different, I think, because the number of people -- the number of people who are actually involved at the grassroots in terms of

having to do something.

During the Great Financial Crisis, ordinary people really couldn't do much other than suffer. But here, there is masks issues, there is quarantine

issues. There are all of these sorts of things.

Now, Gloria, you are not going to get that coordination you seek. I can't see it happening. I can't see how it does happen. So now, warn, please,

what's the consequences of going forward of this poor summer season?

[15:10:18]

GUEVARA: Well, summer pretty much is lost. It's gone. As you say, it is the most important season in the largest region in the world in tourism, which

is Europe.

Because of this lack of coordination, this summer unfortunately is not going to recover. Now, we are heading to the worst case scenario, which is

by the end of the year, 197 million people will be impacted somehow.

More jobs are going to be lost. More companies are going to be affected and it is going to be very painful, the recovery because everything is

connected.

Now I believe that 10 leaders -- we only need 10 leaders to coordinate. I don't know if that's too much to ask, Richard because in reality, who is in

charge of helping us out of this crisis? Who can really take the leadership and help us?

Now, we have received some positive responses from some of these leaders, I have to say that I will be sharing with you hopefully soon because we also

wrote to the opposition of these leaders, and also some interesting responses we have received.

So, I think that they care, but they need to have a Summit and coordinate and help us to get out of this because the premise of -- they cannot do it

alone of course.

QUEST: Gloria, if you are on holiday in Crete, and I hope you are, do try and have some sort of a rest, at least rest and relax. Thank you.

GUEVARA: Thank you, Richard.

QUEST: Now, in just a moment, Fortnite is casting Apple as the villain.

It has been kicked out of the app -- well, it is all about in-app purchases. We will explain how one of the world's most popular gaming sites

is now in on attack against Apple and Google. In a moment.

(COMMERCIAL BREAK)

QUEST: The maker of Fortnite is suing Apple and Google, the game has been removed from most App Stores. It's an argument and a row over in-app

purchases.

To prove its point, Epic Games, which is the maker, has parodied Apple's famous 1984 advert.

[VIDEO CLIP PLAYS]

[15:15:06]

QUEST: Apple is now cast as the villain. It's about the 30 percent fee that Apple and Google collect.

Now, Epic has offered discounts if users buy direct. But that violates Apple store's -- the App Store terms. The lawsuit says Apple is abusing its

power to maintain its monopoly.

It is a Battle Royale for Apple, with many hundreds of millions and billions of dollars at stake.

This is the way the Fortnite map looks at the moment. Apple has dominated for years. Forcing developers to relinquish a cut of sales.

Now, new players are challenging the turf. Epic is the most recent. The games are hugely popular. It has launched an appeal and a legal fight.

Spotify stopped supporting in-app purchases and has filed a complaint against Apple saying they have deprived consumers for too long.

The European Commission is investigating. There are two antitrust investigations. There would be fines and revenue losses.

Clare Sebastian is with me. Clare, all right, what is this all about, Clare? Really, at the end of the day, here is my phone and, in my case,, it

is an iPhone, but it could just easily be an android phone.

Here is my phone. I have apps. Sometimes they require me to buy thing within the app if I choose. But now Fortnite is saying no?

CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT: Yes, Richard, the key thing here is that Fortnite is taking on a bigger battle than just getting kicked

off the App Store and Google Play. This is a battle that goes way beyond that.

In fact, you could argue they have sort of been spoiling for this for a while. They had lease lawsuits that were pretty much ready to go with that

very well produced video. And all of that came about after they sort of pulled the trigger on this new system which allowed users to bypass Apple's

own payment option in their app on iOS and do it directly through Epic.

So this is about the App Store policies and Google Play. But App Store more so, because Google's Android is a much more open system and it is less

proprietary in that people can buy apps through different methods.

So Epic is taking on this battle. It is calling this anti-competitive. It calls Apple in the lawsuit a behemoth seeking to sort of block competition

and stifle innovation.

It says that Apple and google are sort of breaking their promises that they made at the beginning of their lives to be these open ecosystems.

So that's what this is all about, and for the moment, Richard, for the 350 million registered Fortnite users, this is a potential concern. If you have

got Fortnight already downloaded on your iOS or Android device, you can keep it, but you are going to need to update it, and if you wanted to

download it, you can't do that at the moment.

QUEST: All right, extraordinary. All right, Clare Sebastian there.

Strauss Zelnick is with me, the CEO of Take Two Interactive. He know all about this. The makers of Grand Theft Auto, NBA 2K, one of it -- all

amongst the most popular games out there -- joins me from Bedford Hills in New York.

All right, sir, there are now opportunities to stand on the fence or sit on the fence. Where do you stand on this battle? And are they right, Epic, in

taking on Apple and Google over these in-app purchases? Is it time for change?

STRAUSS ZELNICK, CEO, TAKE TWO INTERACTIVE: You know, I think our viewers, we try to be friends with all distributors and we distribute our products

widely. We want to be where the consumer is.

So, generally speaking, I wouldn't be in favor of using litigation as a business tool. I do think -- now, I have said this before, I think that as

the world opens up, as there are more opportunities for distribution through other services, for example, Epic's own service, that the terms of

distribution will and have to change, and those terms will become more friendly to publishers like ourselves.

At the same time, what really matters is the consumer experience. So what we are looking for is to optimize business terms, of course, and to

optimize the consumer experience with the latter, frankly being more important.

But generally speaking, you know, we try to conduct businesses on an ongoing business basis and we resort to litigation rarely, if at all.

QUEST: All right. But the numbers that you brought out today -- your latest numbers, I should say, they show gaming, obviously, a huge rise for you

over the pandemic period. I guess at one level, I am not surprised.

But at the same time, it does raise the question, where to next?

ZELNICK: I think that's a great question. The first thing is to register, and you of course know this well. We are the midst of a very tragic

situation for most people, never mind the tragedy of loss of life, but also the tragedy of sickness, and the economic privations that have affected so

many people.

So we have to put this in context before we talk about how well we are doing.

[15:20:20]

ZELNICK: Yes, we are doing well in this context because people are at home with time on their hands and they are consuming more entertainment.

We don't necessarily expect that that will continue. We certainly wouldn't bake that into your numbers. However, it does seem that there is a systemic

shift from linear entertainment to interactive entertainment as people realize what we have to offer, which is in addition to a visual experience

and a game play experience, we offer a social experience.

You can actually talk with your friends around the world and create new friend while you play our game and have your experiences, and I think

people are realizing that is really contract extraordinary, and particularly extraordinary when you are stuck at home.

QUEST: But just reading from your release, this comes back to what we were saying earlier. You say nearly seven years after its initial release, the

title, Grand Auto Theft has now sold nearly 135 million units, therefore the future of distribution channels and related costs such as in-app

purchases is very significant, particularly in this -- I mean, it won't grow as fast, but these numbers continue to grow.

ZELNICK: Absolutely. It is very significant. And as I said, as the opportunities broaden and as virtually all companies in this space go

direct to consumer, as Epic has, as Rock Star Games, our division has, then that will put pressure on the terms of engagement. Unquestionably.

QUEST: My apologies, of course, it is Grand Theft Auto. I looked down and missed it in the moment.

ZELNICK: That's okay.

QUEST: What do people want?

ZELNICK: We will take it either way.

QUEST: What -- I thought -- with 130 -- hey, listen, with 135 million units sold, one mess from me ain't going to make much difference.

ZELNICK: Call it what you want.

QUEST: But don't call you early for breakfast. Look, at the end of the day, sir, the amount of money spent developing these, the user experience in

playing them, the idea now of multiuser, where do you take it next, from a user perspective?

ZELNICK: Well, that's such a great question. I mean, we pride ourselves on all of the labels that comprise Take Two Interactive, of delivering the

highest quality experiences.

Our strategy is to be the best creatively, the most efficient, and the most innovative company in the entertainment business, so where we go from here

is always trying to deliver something that is better, broader, and something that a consumer has never seen before.

In my experience in entertainment, the biggest hits are the ones that are least expected. You have to surprise and delight consumers with everything

you bring out, and that's why all of our titles are working from Grand Theft Auto to Red Dead Redemption to NBA 2K, to Borderlands, Civilization

and the rest of our catalogue, which is performing incredibly well.

In the past quarter, our net bookings were just shy of a billion dollars. Our current consumer spending was up over 127 percent year-over-year.

You mentioned unit sales of Grand Theft Auto with the basketball title, it sold 14 million units, Borderland is 10.5, Red Dead Redemption, 232 million

units. These are astonishing number.

QUEST: Absolutely astonishing. Anybody who thinks that gaming is just a little bit of something that people do in their spare time, it might be

only on the individual basis, but sir, I am very grateful that you are with us to help put that into perspective and we will talk again as the year

moves on.

I appreciate you giving us time. Thank you.

ZELNICK: Thank you for having me.

QUEST: U.S. markets will end the week -- we will have a look. They are sort of all -- it has all gone a bit funny towards the end of the week for the

Dow Jones Industrials. It couldn't really keep the impetus, barely changed, but down.

Same with the S&P. The NASDAQ up half a percent.

Such good gains seen earlier in the week though, so we have to take exactly what we have got there.

Mohamed El-Erian is the Chief Economic Adviser at Allianz who I am sure is well familiar with Grand Theft Auto and would give me a run for my money

any day in a game -- but we will come to that in a moment.

This is really tricky now because the stimulus is starting to wear off. The measures for unemployed are coming to an end, whether it is in Britain,

U.S., Germany, or wherever.

COVID is still there and rising. What happens next?

MOHAMED EL-ERIAN, CHIEF ECONOMIC ADVISER, ALLIANZ: So, all of these thing, as important as they are, the market unfortunately will shrug them off,

because Richard, the only thing the market cares about right now is Federal Reserve and other Central Bank support.

If they continue to believe -- and this is deeply conditioned right now in the psyche of the markets -- if they continue to believe that Central Banks

will do more and more, then these markets will shrug off everything you've mentioned just like they've shrugged off the news earlier this week that we

are not going to get a relief bill in the U.S.

[15:25:33]

EL-ERIAN: So, you know, it is scary to watch. But one has got to respect what's called technicals, because they are very powerful.

QUEST: Okay. So Central Banks, particularly in those countries where of course they print their own currency, they can print forever. They can buy

every bit of garbage in the market if they want to. But when is enough, enough? When do even Central Banks say, we can do no more?

EL-ERIAN: So, I don't think you will ever hear Central Banks say we can do no more. They will always say we can do more. Just like a doctor will tend

to care with a patient even if they don't have the right medicine, and that's what is happening.

In my view, they have done too much, but they have done too much for understandable reasons, because they haven't been able to hand off to other

government entities that have much better tools.

So what we have to worry about is not whether Central Banks will do more, they will. It is whether the collateral damage and unintended consequences

of their actions become too large, and if we continue, we are going to head not only to zombie companies, but also zombie markets and that undermines

capitalism and undermine a market-based system.

QUEST: So, hang on here. So, I realized you know what I am asking is just about impossible. But, Mohamed, if a Central Banker gets to the point and

says, okay, we are not going to do any more. We are going to force the issue with politicians because we are no longer effective, is effectively

what they will be saying, and therefore, we are going to force the issue.

At what point do they do that?

EL-ERIAN: They have tried that, and every time they have tried, the market had a temper tantrum and Central Banks did a 180. The last thing Central

Banks want to do is be the entity responsible for market volatility that undermines the economy. So they ends up in a lose-lose situation.

If they do more, they distort the markets even more. If they do less, they disrupt the markets and that is the position they are in. But there is a

solution. This is not about engineering. This is about politics, Richard.

QUEST: Okay. But, you know, there are people who need to pay bills. I've already said on this program, the disgusting nature of politics in this

country whereby politicians could not get a deal to put money into the hands of people, so they could buy food, but Central Bankers can't do that.

All Central Bankers can do, Mohamed, is put money into the market to people who have already got more than they need or whoever should have.

EL-ERIAN: Yes. Ironically, Central Banks are inadvertently contributing to wealth inequality. To a certain extent, even to income inequality and they

are worried that these two things will result in the inequality of opportunity.

But what they will tell you is TINA -- there is no alternative. If nobody else moves, we have to move. They would rather move with imperfect

instruments than do nothing, and that's the problem we are in is this lose- lose. The more you do with imperfect instruments, the more you damage the long term prospects of the economy.

QUEST: Right. Have you ever played Grand Theft Auto, Mohamed? I must confess, I haven't. And I clearly need to since 135 million people have

played it. Have you ever had a go at it?

EL-ERIAN: I have not. But I like the comment he said when he said I am looking down here, we want to surprise and delight our customers. Because

that's what Central Banks want to do.

So, no, I haven't played it and I would like to try, but I think I am going to embarrass myself in trying. You know, I just haven't had a chance to

play it. But you and I should try and then play against each other and see who is more incompetent. I believe I am.

QUEST: Oh, no, no, no, no. You are a novice when it comes to incompetence. I have got you there. The level of incompetence, we will discuss that and

we will arrange that before the year is out. And maybe a bit of money for charity, too. Good to see you, as always, Mohamed El-Erian joining us.

Hopefully, you are going to get a holiday, too, before the end of the year now.

[15:30:24]

Now, in just a moment, shoppers in the world's two top economies are key to the global recovery. Retail sales have been working to lure them. Back in a

moment.

(COMMERCIAL BREAK)

QUEST: Hello. I'm Richard Quest as more QUEST MEANS BUSINESS in just a moment. The moment everybody seems to be taking bets on who's going to win

to Mohamed El-Erian and myself with Grand Theft Auto. We can solve it up before Christmas. Now before we get to any further on the program, let's

take a look at the news headlines because this is CNN and on this network the news always comes first.

Look at this. A remarkable scene in Belarus capital. Some 50 riot police dropped their shields on Friday when braced by anti-government protesters.

Nearly 7000 people have been arrested in nearly a week of demonstrations of what many see as a sham election as Alexander Lukashenko has claimed 80

percent of the vote.

Turkey is considering suspending diplomatic ties with the UAE over its new peace accord with Israel. President Erdogan says he may withdraw his

ambassador from Abu Dhabi. Turkey's calling the deal a betrayal of the Palestinians long standing demands for statehood.

The Brazilian economy contracted almost 11 percent in the last quarter, as the company is ravaged by the pandemic by every metric. It's amongst one of

the world's worst hit.

[15:35:02]

QUEST: Yet President Bolsonaro now has his highest approval ratings since the start of his term last January at 37 percent.

The consumer is an important part of the economy in the United States and China. And disappointing retail sales in both economies has now given great

cause for concern about what's going to happen next. If the consumers stop spending, where do we go? Retail sales in China are down 1.1 percent from

July 2019. And U.S. sales up 1.2 percent. But both figures are less than expected.

In other words, the U.S. should have been higher and the China shouldn't have been as low. Annie Young-Scrivner is the chief executive of Godiva

Chocolate. He joins me now from New York via Skype. All right, so you've had to close your retail stores to obviously join COVID. And that's

required you to find different ways to get your delicious chocolates into the mouths of consumers.

ANNIE YOUNG-SCRIVNER, CHIEF EXECUTIVE OFFICER, GODIVA CHOCOLATIER (via Skype): Yes, Richard. Thanks for having me. Chocolate continues to grow and

one of the things that we have been able to do is really amplify our digital segment which is growing triple digit across the globe. The other

thing that we did is to be where consumers are shopping is to open up consumer packaged goods business as well.

Getting into channels like grocery, like mass, like drug, opening up a new segment of business, and it's where consumers are shopping today. When you

look at the global size, it's about 18 billion in revenue and premium chocolate has been growing faster in that segment than any other

chocolates. And Godiva wants a big bite out of that movement.

QUEST: Right now, but of course before and not necessarily you personally, but before premium projects have been a little snobbish about some of those

retail outlets believing they devalued the brand.

YOUNG-SCRIVNER: I think that people are realizing the same consumer shops and all different channels. And number one to consumer is taste when you're

in the food and beverage business. And we use the same great quality of ingredients. And now we're just making ourselves a little bit more

accessible, right price point for the right channel of business. In fact, during this whole pandemic, we launched a brand new line of chocolate bars

called Signature and it's perfect for this environment.

QUEST: Do you imagine that you won't -- you open many of those stores again? They're very expensive to keep. There are a lot of them are flagship

in name and it's an opportunity to cut costs by getting rid of them on the leases.

YOUNG-SCRIVNER: I think brick and mortar is going to change. I think it's still going to exist because consumers are demanding omnichannel

experience. But I think digital technology will be on the forefront. When we open our stores and the stores that are open today, you could use the

Godiva app, you could mobile order and pay, you could do curbside and we could deliver to your home.

It makes it seamless. So, if you want to shop digitally and have that whole digital experience, if you want to do digital plus have physical

experience, we will offer that as well.

QUEST: Annie, I just want to get a feeling from you. And as all this happened, you had to completely rethink your business, your plans and

everything. And how difficult was it for you? Never mind the great team that you've got with you, but just for you, as a CEO, to focus and say, I

am going to have to rethink this completely.

YOUNG-SCRIVNER: I think it was a very challenging time. I remember calling friends asking, have you ever experienced this? And what I heard is if you

add 911, plus the financial crisis, and you make it worse, that's the situation that we're in. You always want to make sure you take care of your

people first. It was 18 hours a day, seven days a week. And I'm so fortunate to have a strong team.

But we quickly realize how the consumer was engaging what she or he wanted. Our whole advertising changed. We only connected when it was appropriate,

but even the content change as people were cooking more at home.

[15:10:01]

YOUNG-SCRIVNER: Chocolate became an ingredient. We had our Chef Thierry give cooking classes on chicken mole. Last week, we just launched focaccia

bread with goat cheese and chocolate. So we really understood where the mindset was.

QUEST: Thank you so much. I appreciate it. Have a good weekend. Thank you. Now, when COVID has -- the crisis has extended the slump in Dubai's real

estate industry. Construction giant Damac has seen difficult times before and also sees difficulties ahead. The CEO tells a Zain Asher the pandemic

is helping to ease one problem which is oversupply.

(BEGIN VIDEO CLIP)

HUSSAIN SAJWANI, CHIEF EXECUTIVE OFFICER, DAMAC: In the last two years or '18 or '19, there has been oversupply, no question about it. And I am the

one who said that publicly that is over supply house because the good news if there's any of COVID-19, that the supply is stopped from March almost

until now, and I think most of our competitors realize that time is not easy. And they cannot just dump the more supply to the market.

Now we will manage -- I think we will manage oversupply definitely this year going to be tough year, as you know, because it was locked down

whatever in the world economy and all that impact of COVID-19. I think next year, especially, it's a lot of the second half of it. I am quite positive

about it because with the export and expectation of the number of tourism is going to come to Dubai.

ZAIN ASHER, CNN BUSINESS AND PERSONAL FINANCE CORRESPONDENT: Given that it's just been one month since Dubai has opened its doors to the rest of

the world. How long do you think it will take to actually see demand really pick up to where it needs to be?

SAJWANI: Believe it or not, we already seen the demand picture of the month of July and we see our collection up by 30 percent in July versus June.

People when buying property and then we as (INAUDIBLE) enhance our technological abilities, meeting a lot of customers, our brokers, our

agents, on the video conferencing and putting heavy emphasis on technology to be interactive with our customers. Having said that, still, yes, the

demand to pick up, the world economy has to open up.

ASHER: No one can deny the long-term impact of COVID-19 not just to Dubai but for every part of the world. Just walk us through how you think your

business will change just in terms of at least the types of real estate projects you invest in in the future.

SAJWANI: I give you an example. We are avoiding now. I need tall towers when we were, you know, very big in that. So, I think towers of 60, 80-

storey, dozen elevators you have to wait so long for elevators, people are not comfortable. Focus going to be more than the last six-storeys, to offer

stories up to 15 stories. No question office buildings, gonna see a glut. When I see it 12 storeys up to 15 storeys.

(INAUDIBLE) office buildings going to see a (INAUDIBLE) see oversupply because people are going to be -- some of them working from home. Some of

them be able to use more technology on the videoconferencing and so forth. But still people have to live and people have to have a house and people

have to have an apartment. And that will not change fundamentally.

(END VIDEO CLIP)

QUEST: When we come back. The eight candidates to be the head of the WTO, the World Trade Organization. We've said we'll speak to all of them between

now and the election. The first one After the break.

(COMMERCIAL BREAK)

[10:46:21]

QUEST: There are eight candidates vying to replace Roberto Azevedo as the head of the World Trade Organization, the WTO. We said here on QUEST MEANS

BUSINESS we're going to speak to each of them between now when the final decision is made, there they all are. The -- it'll be done by consensus

apparently. WTO countries ambassadors will get together and see if they can agree, they don't have a vote to have a strange way of doing things.

Well, those candidates and former foreign minister is Tudor Ulianovschi who joins me now live. Sir, good to have you, Tudor. The - you've been foreign

minister of Moldova; you've been the ambassador in Geneva which has allowed you to work on WTO issues. But you don't have the experience of trade, the

other candidates too. Do you think that would be a big handicap for you?

TUDOR ULIANOVSCHI, CANDIDATE FOR DIRECTOR-GENERAL OF WTO: Well, good evening, Richard and thank you for the invitation. I look forward to the

conversation. I indeed bring to the table the experience that I had as an ambassador to the WTO. And by the way, in that capacity, I had the

opportunity to be also for the first time the chairman of the balance of payments committee of the WTO.

And particularly, I was involved in negotiations on trade, or preparing the Buenos Aires, a ministerial declaration of WTO. And I was one of the four

Geneva-based ambassadors that participated at the negotiating the first draft of the Ministerial Conference, which is the highest level of decision

making with in the WTO. That having said, as well as the foreign minister, that adds to the ability to be able to negotiate politically with global

leaders, but also with the counterparts in various capitals.

So, I would focus on the results that I have registered but also particularly on trade negotiations which I had in Geneva and abroad.

QUEST: All right. So, the issue with the WTO is how to make it relevant again, but not just at the dispute area. But more importantly, in terms of

future trade talks, the last major trade round collapse, lots of incremental and celery trade deals like facilitation. Do you -- do you

believe in multilateral trade or do you see the future as more regional or bilateral?

ULIANOVSCHI: Well, I am a strong proponent of multilateral trade system and I'm a strong believer that WTO is absolutely necessary and is more relevant

than ever. And particularly WTO is playing and will be playing a very important role to tackle the negative impacts of COVID-19 on the global

financial situation, and also addressing the 18.5 drop of the global merchandise trade which is going to be registered in the second half of

this year.

So, from that point of view, I do think that WTO as the multilateral agency has the capacity and, in my opinion, WTO members have necessary will. At

the same time, I do -- I agree with you that at the moment, we are registering more and more lateral discussions, which I think have a

positive feedback.

QUEST: Now, what were you -- assuming you get the job and assuming for the purposes of this question, President Trump gets reelected. What will you

say to the USTR when he says I'm going to pull out, you're waste of time, you are -- the WTO is firmly against, although it's weighted against the

United States.

[15:50:12]

ULIANOVSCHI: Well, every decision in WTO, of course, is taking based on the dialogue. And based on the participation within the global trade. I have

not seen that kind of initiative yet. And I do believe that the first step would be to engage in a political dialogue and making sure that there is a

necessary political will to be able to renegotiate the aspects that have raised concerns, but at the same time to be able to start negotiations and

discussions on the issues that are not yet regulated within WTO because it's always a work in progress.

And from that point of view, I have been -- as a foreign minister, I have visited Washington several times and I have dealt in negotiations on

bilateral level with both U.S., China, European Union and others. And I'm sure that a good political able D.G. would be able to start political talks

and gradually converting them to a constructive (INAUDIBLE)

QUEST: I shall be writing that down. Good political able D.G. Sir, good luck in your candidacy. We will follow closely. And of course, as this

moves forward, I wish you well in your endeavors. So, thank you for talking to us tonight. We will of course be speaking to all candidates, or at least

those who have agreed to talk to us between now and the September the 7th.

Still ahead. It's a case of lives versus livelihoods in South Africa. South Africa faces some tough decisions. The pandemic makes an already risky

profession even more dangerous.

(COMMERCIAL BREAK)

QUEST: In South Africa, mine workers have a terrible choice to make between lives and livelihood. Eleni Giokos has this special report.

(BEGIN VIDEOTAPE)

ELENI GIOKOS, CNN CORRESPONDENT: Descending more than 200 meters into a coal mine has always carried a certain level of risk and it settles

(INAUDIBLE) mine. They've always taken serious precautions. On my belts, an emergency breathing pack and sensor that will stop the heavy machinery if I

get too close. Still, working through South Africa's COVID-19 peak brings a new level of fear to even the most hardened of miners.

[10:55:10]

UNIDENTIFIED MALE: (INAUDIBLE) I pray for (INAUDIBLE) the greatest survivor who tested positive in this mine.

GIOKOS: Pelaelo Mthombeni was this mine's first employee to come down with the virus. She's grateful to be back underground.

PELAELO MTHOMBENI, SASOL MINE WORKER: My kids go to school because of this job.

GIOKOS: And the sector is just as essential for South Africa's economy. Around 80 percent of its power still comes from coal.

How many of those jobs are essential and critical skills that aren't easily replaced?

SANDILE SIYAYA, GENERAL MANAGER, SASOL IMPUMELELO COLLIERY: Ninety percent, above 90 percent but I must say, everybody that we have on the mine is

utterly critical. Everybody that's working underground is critical.

GIOKOS: But even with a constant mask wearing, the constant sanitizing between shifts the clinic on site cases here continue to rise. More than

100 positive cases at this mine alone.

SIYAYA: We have got about 16 percent loss in production that we have experienced on this particular mine.

GIOKOS: I mean, look, we're still heading towards the peak.

SIYAYA: Yes, yes.

GIOKOS: Does this worry you? Does it scare you that the production losses are going to be inevitable?

SIYAYA: If I said that was not worry, I will be lying to you, I'm definitely worried.

MANZEZULU NKAMBULE, ASSOCIATION OF MINEWORKERS AND CONSTRUCTION UNION: COVID-19 will be an eye opener, especially in the -- in the mining sector.

Right across the board, you could see the numbers arising. They've been inhaling this test for years. Now when this virus comes in, it finds an

immune system that is already weakened, and then it attacks.

GIOKOS: Its community transmission outside (INAUDIBLE) gates, that is driving the spread here. And the union says not enough is being done to

address it.

UNIDENTIFIED MALE: Once you live to mine, they they're for good. They forgot about you. So, you must look after yourself.

GIOKOS: (INAUDIBLE) is returning home after nine hours underground.

UNIDENTIFIED MALE: They say the COVID-19 attacks the lungs. I feel (INAUDIBLE)

GIOKOS: Even at the Sasol-owned housing complex where he lives with his wife and two sons. He says no one from his company has come to talk about

COVID-19 since the pandemic began.

UNIDENTIFIED MALE: I never see someone came here. It's tough, it's tough.

GIOKOS: But he'll keep going underground. Like so many in the sector. He's an essential employee and the job means everything. Eleni Giokos CNN,

Secunda, South Africa.

(COMMERCIAL BREAK)

QUEST: A brief profitable moment tonight. We've talked so much about going on holiday vacations you heard earlier in the program. Well, I'm on

vacation for the next two weeks, pandemic aside, economic problems going away. Now, let's all be there when I come back. We all need a break. So, I

wish you well over the next two weeks and manage hopefully that you too will get a holiday.

Take a break. Get away from it all, whether at home or abroad. Quarantined or not. Let's all take time to relax. And that's QUEST MEANS BUSINESS for

tonight. I'm Richard Quest in New York.

[16:03]

QUEST: Whatever you're up to in the weeks ahead, I hope it's profitable.

END