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Quest Means Business
African Union Condemns Suspected Coup Against Malian President And Prime Minister; Walmart Warns Sales Slowed As Stimulus Money Dried Up; Trump Touts Economy In Response TO D.N.C. Critics. Aired 3-4p ET
Aired August 18, 2020 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:01:21]
ZAIN ASHER, CNN INTERNATIONAL HOST: The Dow is pretty much flat. We are off session lows of the day. The Dow has been in negative territory for
much of the day.
Those are the markets, and these are the reasons why.
U.S. stocks hit record highs as the Democrats warn the stock market is not the economy.
And Huawei tells CNN it will survive the latest round of U.S. sanctions.
And a new study shows how coronavirus could spread around an airplane cabin when most passengers are not wearing masks.
Coming you live from New York City. It is Tuesday, August 18th. I am Zain Asher and this is QUEST MEANS BUSINESS.
Good evening. We will have the day's business news in just a moment. But first, I want to bring you some breaking news right now out of Mali. The
African Union is condemning a suspected coup against Mali's President and Prime Minister.
The AU says that troops arrested both men on Tuesday. The West African nation last saw a coup back in 2012. The resulting chaos allowed militant
groups to take over large swaths of the country's northern territory.
David McKenzie joins us live now. So, David, we know that the President and Prime Minister have been arrested. What's the latest?
DAVID MCKENZIE, CNN CORRESPONDENT: Well, the latest is that it is a very fluid situation. You see these images of people in Bamako cheering the
military, presumably military involved in this mutiny as the African Union and others are calling it.
It appeared to get going in the early hours of the morning at a military barracks close to the Bamako some 15 kilometers away from Bamako.
And then throughout the day, a great deal of confusion. Government bureaucrats asked to go home, told to go home. There was early rumors that
this was yet another munity, possibly a coup. Just a moment ago, you had the African Union, the head of the commission there condemning what he said
was the arrest of the President, President Keita, the Prime Minister, several government ministers, unclear exactly where their location is right
now.
There has been some looting in the capital, including citizens going and helping themselves to items from the Justice Minister building owned by the
Justice Minister in the capital.
Now, this comes after months of protest in fact by the opposition, by ordinary Malians upset with the results and then intervention by the
Constitutional Court in an April legislative election.
But, of course that hasn't really seen direct involvement from the military. This is something of an altogether different order. But there has
been jubilation on streets by some. Condemnation from Ecowas, the regional body, the French government deeply involved in Mali including in fighting
the insurgency that you mentioned, Zain.
And at this stage, very unclear exactly how this will all progress. But at this stage, the key leadership of that country in the hands of mutineers --
Zain.
ASHER: The President and the Prime Ministers in the hands of a mutineer soldiers. David McKenzie, keeping an eye on the story for us, as we did
mention, it is certainly a fluid situation. David McKenzie live for us there. Thank you.
Tonight, despite a plethora of head winds, Wall Street reaches all-time highs. President Trump is celebrating as Democrats argue stock markets
don't quite tell the whole story.
The Dow is in a touch of red. The S&P 500, a broader measure of Wall Street is up and could close above its all-time high from February. The NASDAQ is
also on track to secure its second in a row closing high as well.
Speaking earlier at the White House, Donald Trump predicted the U.S. economy is on track to have a quote, "super V-shape recovery" from the
pandemic.
[15:05:31]
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES: We did do it once and we're doing it again and the number looks beyond a V. It looks like a super
v based on the kind of numbers that are coming out. I guess, you're seeing that.
They were saying that's not possible, and now, they are saying it is a super V, and that's what we are having --
(END VIDEO CLIP)
ASHER: And meantime, at the Democratic Convention, a very different picture being painted.
Cedric Richmond, a U.S. Congressman from Louisiana said a healthy economy is about more than just all-time highs on Wall Street.
(BEGIN VIDEO CLIP)
REP. CEDRIC RICHMOND (D-LA): When we talk about the economy, it's not just about the stock market. It's about whether you can find work that really
means something to you, instead of feeling like you are supposed to be grateful just to get a paycheck.
It's about whether people who didn't inherit millions from their parents can build a business from the ground up and have a real chance to compete,
and it's about whether in the richest country on Earth everyone, including women, and people of color, feel included and empowered.
(END VIDEO CLIP)
ASHER: Walmart neatly sums up the situation for blue chip companies. The world's largest retailer reported strong earnings, Tuesday. Americans spent
their stimulus checks and despite the pandemic, Walmart sales increase about nine percent in the second quarter. Shares, however, are down today
because the company is warning about what will happen now that the stimulus has stopped.
Clare Sebastian joins us live now. So, Clare, that really is the big question. Walmart clearly, one of the biggest beneficiaries of stimulus
checks. If that stimulus money doesn't continue to flow, what happens to Walmart and other retailers that have come to depend on Americans having
extra money?
CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT: Yes, well, they are very uncertain about that, Zain, and that's why Walmart and most of the other
retailers are reluctant to provide guidance going forward.
Another one to report earnings on Tuesday, Home Depot, said that they are reluctant to judge the second half of the year based on the first half of
the year.
But a couple of interesting numbers from Walmart. You said, their same store sales were up nine percent, their same store sales throughout the
quarter. In July, which is the last month of the quarter as Walmart measures it; that moderated to four percent.
So you go see the effects of waning stimulus measures, the end of the enhanced unemployment benefit. Things like eviction moratoriums, things
that are all starting to end in July at that started to have an effect on stimulus.
So Walmart is saying, we don't know what's going to happen with stimulus. Clearly, it was a major tailwind in this quarter going forward, so they are
hoping that it will continuing that it continues. But as it stands we don't have any progress on that front from Capitol Hill.
ASHER: Exactly. And so, if there is no progress at the time being, why aren't we seeing a greater reaction in terms of the broader U.S. market?
SEBASTIAN: Yes, I think this is a major question if you look at these markets despite the fact that this health crisis is definitely not over.
We are seeing hotspots throughout the country still, despite the fact that stimulus measures are waning, and don't forget, Zain, that props up
consumer spending, which is 70 percent of the economy.
The markets are still hitting record highs. That is because there are several more powerful forces at play here. One is because the markets are
really betting on a resolution eventually to this health crisis. The fact that by the end of this year and perhaps the first half of next year, there
will be the widespread distribution of a vaccine. That's what the markets are looking at.
And secondly, because of the leadership of tech, you cannot ignore this. Goldman Sachs said earlier this week that they believe the top five stocks
in the S&P 500, the biggest five, that's Microsoft, Apple, Amazon, Facebook and Alphabet, Google's parent company account for 14 percent of the S&P
500's 51 percent rise since its lows in March.
That leadership continues. That is a bet not only on the stay-at-home orders and the effect of all that, but on the fact that these stocks are
positioned to continue grow even beyond this. The trends that propel them forward, Cloud and e-commerce -- they have been accelerated by the
pandemic.
ASHER: Clare Sebastian live for us there. Thank you so much.
President Trump is attacking former First Lady Michelle Obama and her speech at the Democratic National Convention. Mr. Trump pointed to record
stock market highs as evidence of his economic record.
On Monday night, Mrs. Obama said the economy and the country have been hurt by the President's response to the pandemic.
(BEGIN VIDEO CLIP)
MICHELLE OBAMA, FORMER FIRST LADY OF THE UNITED STATES: More than 150,000 people have died, and our economy is in shambles because of a virus that
this President downplayed for too long.
It has left millions of people jobless. Too many have lost their healthcare. Too many are struggling to take care of basic necessities like
food and rent. Too many communities have been left in the lurch to grapple with whether and how to open our schools safely.
(END VIDEO CLIP)
[15:10:23]
ASHER: Even in an election year as chaotic as 2020, the old adage still holds true. For a lot of voters, the economy is really what it comes down
to.
A recent CNN poll found that 47 percent of voters consider the economy extremely important to how they would cast their vote. That was tied with
the pandemic for the top issue. That presents a real challenge for Biden.
The same poll asked voters who would better handle the economy? And in that, Biden trails Trump by eight points.
Let's talk about this with Karen Finney. She is a former Communications Director for the Democratic National Committee. She joins us live now from
Washington, D.C.
Karen, thank you so much for being with us. So, for the average person, 2020 has been a major struggle financially. In fact, the Democratic
National Convention just yesterday featured a number of average people talking about their financial woes.
Given that, especially the fact that you know, the unemployment insurance has run out for a lot of people, how much of a significant part is the
economy going to play in November?
KAREN FINNEY, FORMER COMMUNICATIONS DIRECTOR, DEMOCRATIC NATIONAL COMMITTEE: Oh, it is no question, it is always an important issue in
elections. And this time, as you mention, it's so closely intertwined with the COVID pandemic and how Americans are feeling the hurt, not just from a
health concern, but from the economic concerns on their pocket books, you know, job losses, reduced hours. And frankly, those frontline workers who
are having to take significant health risks.
You know, one of the issues that we are going to be talking about during this course of this convention and telling the stories of average Americans
is the ways in which many Americans, most Americans, frankly, feel that President Trump has not been, as Michelle Obama put it, empathetic. He
doesn't seem to see our challenges or feel our challenges.
And so that's part of the economic argument that's going to be made over these nights in the convention and frankly throughout the election.
ASHER: Did day one of the convention, though, do a good job of telling voters why they should vote for Joe Biden as opposed to why they simply
should not vote for President Trump?
FINNEY: Absolutely. I'll tell you. The first night was really the opening night of a conversation that will unfold over all four nights, and the
first night was really about character. And it was about what is the character -- you know, character matters. What is the character of the
person that we want representing us in the White House? Leading us in the White House? And what is the character of our country?
So many Americans -- you saw a number of people on Monday night speaking about their struggles and their challenges, many of whom had voted for
Donald Trump, but who frankly have moved away from hmm and are voting for Joe Biden because of a lack of character on the part of Donald Trump.
ASHER: And Michelle Obama's speech, obviously that was a major sort of a highlight from yesterday. The Obamas, when they talk about Trump, they sort
of make these various intonations, but they don't ever really say him by name. There is this sort of this Voldemort thing going on with President
Trump.
Is that an effective strategy, do you think?
FINNEY: Well, it is to some degree. Although, I think Michelle Obama did a pretty good job of making her case last night, quite forcefully, and really
spoke to the pain that people are feeling and used one of, you know, Donald Trump's phrases -- signature phrases, even.
So I think it's effective. You know, one of the things we see here in polls is that there are still people who may like Donald Trump personally, even
though they think, again, Michelle laid this out so beautifully, he is just not the right person for the job. He is not doing a good job. He's not able
to lead in this moment.
So part of the goal of last night was also to cast a wide net to those voters who are still not decided about Joe Biden and really speak to some
of the things we hear from Republicans who are again considering voting for Joe Biden, and their frustration with having voted for Donald Trump that
first time around.
ASHER: Former President Bill Clinton is going to be speaking tonight. I mean, you know, Bill Clinton -- and I should say, the Clintons, but Bill
Clinton, separately, is somewhat of a divisive figure, particularly among women within the Democratic Party.
Just explain the strategy of choosing him at this point in time to represent the party in this way.
FINNEY: Well, you know, he is an important figure in our party, and very beloved. As a President, he is still known as one of the greatest political
minds, frankly in the United States and he is such a global celebrity, if you will, and world view, that I think, you know, his perspective will be
welcomed tonight and he is beloved by Democrats.
Remember, the convention, if we were all gather together, part of it is a celebration of our party, and a celebration not just of where we have been,
and where we are doing. And President Clinton tonight's theme overall will be talking about leadership.
[15:15:32]
FINNEY: They are going to feature a number of up-and-coming leaders in our party, a number of down ballot races as we would call it. And who better
than Bill Clinton to talk about leadership and the kind of leadership that Joe Biden will bring, that Kamala Harris will bring, and the leadership
that we need in our country. I think that's the goal for tonight.
ASHER: We will see what happens later on. Karen Finney live for us there. Thank you so much.
FINNEY: Thank you.
ASHER: All right, coming up. Is it a death knell or just another business challenge? Huawei responds to the U.S. decision to cut it off from vital
computer chips with new sanctions.
And thousands attend a water park pool party in Wuhan, China, the original epicenter of the coronavirus pandemic. That's next.
(COMMERCIAL BREAK)
ASHER: A Huawei executive says the company will survive the latest round of sanctions after the U.S. cut off its access to vital computer chips. It
is a move some are calling a lethal blow to the Chinese tech company.
But Huawei U.S.A. Chief Security Officer told our Julia Chatterley, the company will bounce back.
(BEGIN VIDEO CLIP)
ANDY PURDY, CHIEF SECURITY OFFICER, HUAWEI, U.S.A.: We took a hit of about $12 billion in 2019 in our revenue and we may take a hit again. But we are
committed to the long term and we have the capabilities and resources to adjust over time.
JULIA CHATTERLEY, CNN BUSINESS ANCHOR, FIRST MOVE: So the message is whatever happens, Huawei will survive this.
PURDY: Well, we will survive. But as I said, I am particularly concerned about -- I am particularly about two thing. It is the tens of thousands of
Americans jobs that are at risk, and the impact of American policies on the competitiveness of the U.S. and the ability to bring internet connectivity
to the underserved and unserved both in American rural areas and to the three billion people around the world that don't have connectivity.
We do a lot better when there is one global common set of standards where governments don't control. It is a free and open exchange of information
and systems. And that's worked well over the history of the internet and it can work well in the future.
But it is definitely at risk right now.
[15:20:13]
CHATTERLEY: Do you think you can have a different conversation with a different administration, Andy? Or do you think the U.S. now as nation, as
a Congress, is that set against China, you are caught in the crossfire, nothing will change this?
PURDY: Well, the question of what might happen if there is a new administration has been often asked. I don't think one can say with
confidence what will happen with a new administration.
I do assume that there will be a little greater predictability. I think there's a chance that the U.S. would then treat our allies with a little
more respect and work on agreements that -- bilateral agreements that provide value to both sides.
But the kinds of issues that I am talking about in terms of what's necessary for organizations and citizens around the world for an objective
and transparent basis for knowing which products are worthy of trust, I think that's going to get greater attention than some of the policies that
are in place right now.
But the importance of those difficult security measures, those measures outlined in the DoD and U.S. 5G security strategies, those are going to be
very important, regardless of which administration is in office.
(END VIDEO CLIP)
ASHER: Months ago, Wuhan, China, was best known as being the epicenter of the coronavirus pandemic. Now, fear of COVID-19 seems to be fading for many
in the city.
Over the weekend, a massive crowd even felt safe enough to get out their swimming gear.
CNN producer, Steven Jiang has the story.
(BEGIN VIDEOTAPE)
STEVEN JIANG, CNN SENIOR BUREAU PRODUCER: Thousands of revelers packed a pool to the brim at a local water park in Wuhan, the ground zero of the
pandemic waving to the beat of the music and cooling down in the water last weekend without any masks or social distancing measures in sight.
Just four months ago, this city was reemerging from a brutal 76-day lockdown during which 11 million residents were mostly confined at home.
And such sweeping measures are now being credited by the authorities here for containing this virus not only in Wuhan, but also the rest of China
where they only recorded 22 new cases nationwide on Monday, all of them imported from overseas.
So this country is increasingly getting back to a sense of normalcy with the economy bouncing back, according to officials; movie theaters have
reopened. Domestic tourism is heating up and shopping malls, restaurants, and now water parks are getting crowded again.
All of this of course in sharp contrast to what is happening in many other countries around the world where tens of thousands of new cases are still
being reported on a daily basis, including in the U.S.
For its part, that Wuhan water park said its number of visitors in early August accounted for only half of the level it saw during the same period
last year. So now, it is offering half price discounts to some visitors.
Steven Jiang, CNN, Beijing.
(END VIDEOTAPE)
ASHER: The President of Belarus has deployed the military to the country's western borders. Alexander Lukashenko says that's due to statements from
some western countries, many of whom say his election victory two week ago was illegitimate.
Meanwhile, many of the country's workers have united against the government. Fred Pleitgen has more.
(BEGIN VIDEOTAPE)
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): Belarusians banding together to oust longtime dictator Alexander
Lukashenko. These are industrial workers supporting state media workers on strike, saying they're fed up with untruthful reporting.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE (through translator): I've decided to quit because many of my friends ended up locked in prisons and tortured. And these are
not just some people I read about. These are the people I know personally.
(END VIDEO CLIP)
PLEITGEN (voice over): The journalists want to finally report on the massive opposition protests that are bringing hundreds of thousands to the
streets and tell the truth about a brutal crackdown and thousands of arrests and reports of torture after last Sunday's election, which the
opposition says was rigged.
PLEITGEN (on camera): The opposition has called for a general strike here in this country, and that means that many factories are also walking off.
And they say that pressure is not going to stop until Alexander Lukashenko cedes power and also allows for a new election.
PLEITGEN (voice over): Lukashenko's answer, a clear no.
"My response to this," he says, "We held the elections, and until you kill me, there won't be any new elections."
Lukashenko tried to speak at one factory but was booed, workers yelling "Get out."
Many Belarusians fear Lukashenko might be trying to drag Vladimir Putin into invading Belarus. Lukashenko falsely claimed NATO is amassing forces
at Belarus' borders. The alliance has denied that. And Lukashenko says the protests in Belarus are a threat to Russia as well.
[15:25:07]
PLEITGEN (voice over): But while Putin has said he would help if needed, so far there are no signs he has any interest in moving his army into
Belarus like he did in Ukraine in 2014.
While European leaders have strongly condemned Lukashenko, weaker comments from President Trump.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: That's a terrible situation, Belarus. We'll be following it very closely.
(END VIDEO CLIP)
PLEITGEN (voice over): But for many Belarusians, there is no turning back. They vow to continue their action until they finally get free and fair
elections.
Fred Pleitgen, CNN, Minsk, Belarus.
(END VIDEOTAPE)
ASHER: All right, still to come here on QUEST MEANS BUSINESS, as the travel industry works to recover, a new study shows how coronavirus may
have spread throughout a plane in March. One of the authors of that study joins us next.
(COMMERCIAL BREAK)
ASHER: Hello, I'm Zain Asher. There is more QUEST MEANS BUSINESS in a moment when a new study shows how infected passengers could spread
coronavirus around an airline cabin. I'll speak to one of the authors of that study and Amazon is making a bet that workers will soon be back at the
office.
Before that though, these are the headlines we are following for you on CNN at this hour.
The European Union and African Union are condemning a suspected coup against Mali's President and Prime Minister. The AU says mutineer troops
arrested both men on Tuesday.
The West African nation last saw a coup in 2012. The result of that coup allowed extremist groups to gain a foot hold in the northern part of the
country.
A special tribunal from Lebanon has convicted the lead suspect in the 2005 assassination of former Prime Minister Rafic Al Hariri. Three others were
exonerated. Judges noted that they found no evidence of their involvement or that of Hezbollah leadership.
And Lebanese state media says authorities are issuing an arrest warrant for the General Manager of Beirut's Port. It follows nearly four hours of
interrogation.
[15:30:10]
Officials are set to resume questioning dozens of detainees including Lebanon's customs chief on Thursday.
And the U.S. Senate Intelligence Committee has new details about Russian interference and 2016 presidential race. The bipartisan report says that
Paul Manafort was working with a Russian intelligence officer while serving as the Trump campaign chairman. It says he sought to share campaign
information with the officer.
The head of the U.S. Postal Service announced Tuesday he is suspending changes to the mail system until after this year's election. He says he
wants to avoid any appearance. The changes would impact mail-in voting. He's scheduled to testify before congressional committees beginning on
Friday.
A new study out Tuesday finds that COVID-19 can potentially spread throughout an airplane cabin. Researchers in Germany looked at a March 9th
flight from Tel Aviv to Frankfurt. This was before a global pandemic had been declared. So, no one on board was wearing masks. Seven passengers
tested positive for the virus on arrival. Researchers later found two lightly cases of transmission on the plane. As you can see from this chart,
those people sat within two rows of the passengers within -- with COVID-19.
Dr. Sebastian Hoehl is one of the authors of that study, he's with the Institute of Medical Virology at the Goethe University in Frankfurt. He
joins us live now via Skype. Sebastian, thank you so much with us -- being with us. So, what does this study tell us about the safety of flying during
the pandemic? It is important to note that on that particular flight, nobody was wearing any masks, I understand, but what can we learn from
this, still?
SEBASTIAN HOEHL, PHYSICIAN, INSTITUTE OF MEDICAL VIROLOGY (via Skype): Yes, thank you for having me. This was indeed a very special circumstances back
in early March, where there were many index cases on one single flight. So, seven passengers tested positive on arrival, and four of them were
asymptomatic on arrival. And what we observed was, we did standardized interviews. We called them on the phone four weeks later, to determine
whether the other passengers had developed symptoms. And also, we offered antibody tests to those where transmission was suspected.
And what we discovered was that the rate of transmission was lower than what we would have expected, we would have expected to that to be a large
number of transmissions. But we could only observe two, as you mentioned, those were seated within this two-row parameter for droplet-mediated
infections. This is not uncommon for transmission to occur. But nevertheless, we did -- we did observe a transmission of -- very likely
transmission to have occurred on the flight. So, they may occur, but they were less frequent than what we would have expected.
ASHER: Right. So, in a way, I mean, especially given that nobody was wearing masks, the fact that still without any masks, only two people
lightly, you know, had the virus transmitted to them during this flight, that is actually rather encouraging, right?
HOEHL: That's how I would call it as well. Of course, this is just one single flight. So, the -- this is quite a small study in comparison but
indeed the number was low. And what probably helped in keeping this number low is the airflow in the cabin, which usually goes from the top -- from
the ceiling of the airplane to the bottom, and the air before recirculating, passes HEPA filters which are able to filter out small
droplets. So, this might have reduced the number of infections that occurred.
But nevertheless, as I said, it will be important to note when nobody's wearing a mask, and this special scenario transmission may occur still.
ASHER: OK. So, going forward, just in terms of what airlines can learn from this, in terms of making -- flying that much more safe. I mean, obviously
now, it is mandated to wear a mask, especially when you're flying out of the United States. But what else can airlines do just to really reduce the
risk of transmission? Do you think that perhaps blocking middle seats is something that also should be mandated as well? What else do you think?
HOEHL: This -- the blocking of the middle seat I -- we did not get any data. And this particular study, as you can observe that the transmissions
are as you can see in the figure that we have in the study, that the transmission were over the aisles. So, we don't know if this happened when
the passengers were sitting down, or whether when they were moving around, or if this was at the gate. So, I don't know how effective this measure is.
I mentioned it might be, but I don't know how effective it is.
But all those things that we usually -- that we have been advising for the last couple of months, avoid close contact, frequent hand hygiene.
[15:35:05]
And these needs must also apply to the entire flights, also to the situations at the gate and -- at the gate and to avoid crowding in any of
these situations during the flight. And of course, the special situation was in this case, nobody was wearing masks. And we don't know if they may
have been prevented had had they been wearing masks, at least the people who had no contact with the actual case of COVID-19.
ASHER: Yes, that the masks would have been probably changed dramatically the results, likely. I want to play a sound bite on Boeing. I want to play
a sound bite from a Boeing executive that Richard spoke to because the plane involved in the study was actually a Boeing 737 900. Last month,
Richard Quest spoke with Boeing's product marketing director about the odds of actually catching COVID on a flight. Jim Haas said cabin air is filtered
and circulated for passenger safety. I want to play what he had to say.
(BEGIN VIDEO CLIP)
JIM HAAS, DIRECTOR OF PRODUCT MARKETING, BOEING COMMERCIAL AIRPLANES: Once passengers are on board the airplane, the way the cabin airflow is
vertically downward, not front to back, the effectiveness of the HEPA filters pulling out 99.9 percent of the viruses and bacteria. And the rate
at which the air is exchanged in the cabin, every two to three minutes, the volume of cabin air is totally exchanged. All those really provide extra
layers of protection for air travel.
(END VIDEO CLIP)
ASHER: So, Sebastian, I know you touched on this earlier on when we first started talking, but just given the HEPA filters and given the way airflow
and circulation works in a cabin that is midflight, should people really fear flying as much as they do, do you think?
HOEHL: No, I don't think people should fear flying, more than all the other situations where people are crowded, it may well be that the conditions in
the airplane are better in preventing infections than other scenarios. So, it might also be discussed. This type of air circulation could also be
applied to other facilities on the ground. But what the study shows is that even though of the air -- the airflow is in the way that has been
described, the transmissions may occur.
And this has also been observed for other viruses that are transmitted through trouble and for other bacteria such as tuberculosis, influenza and
SARS. So, people should not worry, but they should also -- should have the appropriate measures such as wearing of masks which might have prevented,
but this is speculative.
ASHER: Sebastian Hoehl, live for us there. Thank you so much. Appreciate you joining us. The pandemic has forced companies to ask themselves hard
questions, like what they need and they don't. We'll talk about the future of the office as we know it, next.
(COMMERCIAL BREAK)
[15:40:00]
(COMMERCIAL BREAK)
ASHER: While some tech giants are preparing to keep a remote workforce, Amazon is heading the other way with a new hiring push. The company says
it's planning a $1.4 billion expansion in six American cities. To discuss the future of the office, let's bring in Anthony Malkin, he's a CEO of
Empire State Realty Trust. He joins us live now from New York. Anthony, thank you so much for being with us.
So, one of the biggest lessons from this pandemic is really the fact that, you know, you don't really need to live in a place like New York City in
order to be able to work for a New York City company. Based on that, what happened to high rise or hot -- very expensive real estate markets, like
Manhattan, for example, during this pandemic?
ANTHONY MALKIN, CEO, EMPIRE STATE REALTY TRUST (via Skype): Well, I would argue the point saying -- I would say that actually, work from work is
what's the future. Work from home is what is to sustain us and what allows us to get through this very difficult, disruptive time. I think Facebook,
Amazon, each of those has just made very large commitments, continued commitments to New York City. When you look at work from work, team
building, project development and execution, how do you develop culture?
How do you have that hallway validation, you go to a meeting what happens on the way to the meeting away from the meeting, it's very different from
you click on and off on Zoom. And I do think that people want to be at work. These young kids want to be at work. You've got a whole group of
people whose lives have been altered not just by going to work, but going to school. But they don't want to get killed. You know, they don't want to
get sick. So, long as we're in this interim period, I think that work from home will allow us to continue. Work from work was allow us to move
forward.
ASHER: However, I think a lot of companies are really realizing just how expensive is to operate these, especially in a place like Manhattan, is
hugely expensive office buildings. Obviously, a lot of companies, if they downsize and allow people to work from home, they can end up saving a
significant amount of money. So, based on that, even if you think that people will go back to the office, eventually, surely the types of space
that they invest in will change.
MALKIN: I think that's interesting. Number one, I think you'll find a lot less in density, I think you'll find a lot less in hot desking, where you
show up and you sit down at any available space. I think people will want their spaces. People don't want to be as crammed together as these offices
were. You know, New York City actually compared to Hong Kong, London, Paris, other major international capitals, is actually extremely reasonably
priced. It's less expensive, both in living and office occupancy than San Francisco.
ASHER: Just in terms of the Empire State, obviously an iconic building in New York City that's reopened actually, how do you figure out how and when
to reopen somewhere that is, you know, a major jewel for tourists at a time like this?
MALKIN: So, we actually have been open and with our observatory for -- we're in our fourth week now, we're largely catering to locals because of
all of the quarantine orders required from many states that come into New York State. But we've been -- we've been open. Our 102nd floor, we expect
to open on the 24th of this month. And we have made certain adjustments to protocols. People have to buy tickets online before they come in for a
scheduled time for a visit.
But we're open and we look forward to the fact that we'll be joined by The Metropolitan Museum of Art, Museum of Natural History, 9/11 Museum, all
these cultural establishments that will open on the 24th of August.
ASHER: So, how does this, sort of, post COVID experience, change, for a tourist attraction like the Empire State Building? How will the feel of it
be different with these restrictions?
MALKIN: Well, post COVID, I think it's going to be absolutely back to where it was. During COVID, we have gotten rid of certain things that you would
touch, with which you would interact, things to which you put your eyes close to them. That's different. You have to buy your ticket online, get a
temperature check on your way in, we have hand sanitizer all over the place, different dispensers available.
And we have our workers are actually going through extensive safety protocols, specific training through which we went, specific personal
protection equipment. So, in this interim period, while COVID is still out there, we have made certain adjustments. We've reduced our capacity and our
density as well.
ASHER: Right. Anthony Malkin, live for us there. Thank you so much.
MALKIN: Thank you.
[15:45:12]
ASHER: France will now require face masks in the offices starting in September. According to the Ministry of Labor, masks already mandatory in
public indoor spaces in some French cities. Masks are required outdoors as well. The announcement comes as France and other European countries
experienced an upsurge in COVID-19 cases, as our Melissa Bell reports.
(BEGIN VIDEOTAPE)
MELISSA BELL, CNN PARIS CORRESPONDENT: Here in Europe, concerns over the coronavirus figures in several countries in France, in Spain, but also in
Greece and Croatia. So many of those countries that Europeans making the most of open borders within the E.U. have been visiting in this holiday
period. In Paris, there's been a six-fold increase in the number of coronavirus cases in just 15 days. And new clusters around Marseille, the
south of France, where so many tourists have been heading.
Fresh restrictions now being considered, looking beyond the holiday period at the return to work with a number of different clusters associated with
office spaces, open plan office spaces regulations are being looked at there that would make the wearing of masks compulsory there, as well. In
other countries, restrictions being put in place as a result of those rising figures in Spain and Italy, but also in Greece and Croatia, to try
and limit those number of new cases that we've seen in countries that have so far been largely spared, countries like Greece and Croatia.
Europe then looking at how it can contain this summer bursts of tourism of activity of travel, and get those figures back under control. Melissa Bell,
CNN, Paris.
(END VIDEOTAPE)
ASHER: European markets closed lower in Tuesday. London posted the day steepest losses followed by Paris. Investors are reacting to growing
coronavirus cases in the region, as well as rising tensions between the U.S. and China, as companies around the world sent their employees home to
stop the spread of coronavirus. Many depended on Citrix to keep up productivity. We'll talk about what's next for the work from home
revolution with the Citrix CEO. That's next.
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ASHER: S&P 500 trades near all-time highs, there are clear winners and losers from the pandemic. Lockdown measures continue to harm travel
businesses like Carnival Cruises, United Airlines and Marriott. Meantime, companies like Netflix, Amazon and Zoom have made huge gains, serving
customers who are now stuck in their homes.
[15:50:08]
Citrix has also soared during the sudden work from home revolution, despite a drop after last month's earnings report. The digital workspace company is
up nearly 30 percent this year. David Henshall is the Citrix CEO. He joins us from Fort Lauderdale, Florida. David, thank you so much for being with
us. So, obviously, your company provides remote working solutions. You've benefited significantly during the pandemic. Walk us through what's been
the impact on subscriptions and renewal rates in this environment.
DAVID HENSHALL, CEO, CITRIX (via Skype): Certainly, our business results have been extremely strong over the first half of the year. You know, we're
fortunate enough to have a legacy of really delivering remote work infrastructure for hundreds of thousands of customers around the world and
we've been doing this for about 30 years. So, when the pandemic hit and customers were really rushing large populations to work remotely, it was
just a natural extension for us.
So, we saw our subscription businesses increase 50-plus percent year over year, renewal rates have been up. And more importantly, though, I think,
you know, we've just been able to, you know, service all of those thousands of customers and tens of millions of users, to put them in a position to be
productive, to be secure, to be engaged, regardless of where they are physically during this pandemic.
ASHER: So, despite the, sort of, rise in demand, especially initially, you know, the economic environment we're in right now is somewhat challenging,
and that could lead to further losses when it comes to your business, just like most businesses in this country, how are you diversifying the kinds of
products you offer in this climate?
HENSHALL: We've got a broad array of products already. We're focusing on remote work infrastructure, networking, and cloud technologies, those
things that we can really bring together to create this idea of a digital workspace. If you take a bigger step back and you think about the nuance of
this pandemic, and just look at the U.S. market for a minute. You have roughly 40 percent of the U.S. workforce working remotely, delivering about
60 percent of all economic output.
And I think the one real surprise for a lot of organizations during this period of time has just been, how productive, how engaged and how
successful their organizations have been in this mode, because let's face it, remote work is, in fact, work. And many organizations that I talked to,
healthcare, banking, you name it, are looking at this as an opportunity not only to leverage the infrastructure for today, tomorrow will be a hybrid
work model, but also, the infrastructure to radically transform their own businesses, new business models, new ways to engage with customers.
So, I think for us, this should be a tailwind for our business for many years.
ASHER: You mentioned obviously, productivity, sort of surprising a lot of business owners in this environment, people are more engaged, et cetera.
But in terms of some of the surveys that Citric has conducted in this environment, what are you gauging in terms of people's desire to work from
home because that really will have an impact, in terms of the long-term trends of this work from home revolution?
HENSHALL: Yes, it's across the board, not just Citrix surveys. But you know, many organizations are surveying these types of things right now. The
conclusion is that the vast majority of workers around the globe are looking for a more flexible environment. And the idea being that they can
be productive regardless of where they are. It's kind of an antiquated idea to presume that everyone is productive based on the number of hours they
spend in the physical work environment.
And I think this environment has really proven that incorrect. We've long had this view that work is about output. It's about engagement. And so,
providing a level of tools and services to allow people to be safe, be productive, to be engaged, whether they're in an office, at home, on the
road, or, frankly, anywhere in between, has really proven out during this period of time, and I think you're going to see many more organizations
embrace this idea going forward. It's better for their business. It's better for the employees and it's better for the bottom line.
ASHER: How prepared were companies just in advance of this pandemic, in terms of cybersecurity, obviously working from home presents new challenges
when it comes to cyber security. But also, aside from that, you know, bandwidth, for example, pressures on bandwidth, pressures on capacity, what
was the level of preparation going into this?
HENSHALL: It depends on the business and the geography, certainly. I was just speaking with a major European Bank the other day. They were
explaining that the investments that they made to really transform their business, both Citrix, Microsoft, a couple of our other partners, allowed
them to move 75,000 employees full almost overnight. And so, it was relatively seamless, but they concluded that they would have had a pretty
major problem had they not been making those investments ahead of time.
You look at organizations that we work with to help, you know, transform their companies to the cloud. University of Sydney is one example that
we've talked about where when a pandemic hit, they all of a sudden had 14,000 students in China that couldn't physically reached that. So, because
we had been engaged on a cloud transformation, they were able to put that infrastructure in place, you know, again nearly overnight to be able to
engage those students during the pandemic.
[15:55:11]
HENSHALL: And then, in the future, leverage the infrastructure for more of a remote learning infrastructure. So, those that had prepared and thought
about agility, digital transformation in many of these larger trends, I think they were in great shape. Others are still trying to play catch up
and so we'll be working with them for quite some time.
ASHER: Right. David Henshall, live for us there. Thank you so much. Appreciate you joining us.
HENSHALL: Thank you.
ASHER: We're in the last few minutes of trade on Wall Street. The Dow looks set to close a touch lower, down 80 points or so. Walmart is down despite
reporting stellar earnings. The company warned its sales will suffer without new stimulus from Washington. A lot of -- a lot of companies are in
that holding pattern because the stimulus bill has not been passed yet.
The S&P 500 looks set to close at a new record high. Its first in February after diving into a bear market at the start of the pandemic, as it has
rolled back. The NASDAQ will close at its second straight all-time high, continuing to ride the rally in tech. And that is QUEST MEANS BUSINESS. I'm
Zain Asher in New York. "THE LEAD" with Jake Tapper is up next. You're watching CNN.
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