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Quest Means Business
Merkel Vows Response To Navalny's Attempted Murder; Dow Crosses 29,000 For The First Time Since February; WTO Seeks New Leadership At Time Of Economic Upheaval; Daimler Reveals New Mercedes-Benz S-Class; Wolfgang Puck On Leading Restaurants Through Crisis. Aired 3-4p ET
Aired September 02, 2020 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:00]
RICHARD QUEST, CNN BUSINESS ANCHOR, QUEST MEANS BUSINESS: And as you can see, the Dow Jones Industrials is edging ever closer to 29,000, a level not
seen since back in February. It might make it whilst we are on air, or certainly -- there you are. It has even made it whilst we were just
talking, 29,000 on the Dow Jones.
That's the way the market is looking. It is a bullish day. The reasons behind in the next hour.
It is bullish despite some grim news. United airlines says that it will furlough 20 percent of its frontline staff.
Greece is on the wrong end of European travel restrictions. The country's Tourism Minister is with me shortly.
And Daimler's Chief Executive says Daimler has dodged the curveballs. You will hear him on this program.
We are live from New York. It is the mid-week, Wednesday edition, it is September 2nd. I am Richard Quest. And indeed, I mean business.
Good evening. The woes of the airline industry are well and truly coming home to roost, in warnings that have gone unheeded by the U.S. Congress.
Well now, United said we warned you, so now, we are going to furlough permanently 16,000 employees.
Air travel is still restricted. Capacity is greatly reduced. Passenger numbers are way down.
U.S. Federal aid expires -- or the limitations expire on October 1st and that is when the airlines, United says it will do an involuntarily furlough
of 16,000 employees, 20 percent of the front line workers.
There is no considerable rebound seen in the aviation industry until a vaccine is widely available.
Pete Muntean is our aviation correspondent. He is with me now. No one could say United didn't warn months ago. They said, it could be 32,000. So, I
guess coming in at 16,000, they would say they have done whatever they can, but these are the number that has to leave.
PETE MUNTEAN, CNN AVIATION CORRESPONDENT: That 16,000 number, Richard, is still very stark the airline says. It actually calls it heartbreaking
considering the fact that there is no airline recovery coming it says, no vaccine to bring passengers back, no sign of new Federal aid to keep these
jobs.
You know, what is so interesting as you mentioned is that this number is actually a lot smaller than what United forecast back in July. United is
actually thanking being 7,000 employees for taking early outs or early retirements.
An unknown number of employees are taking voluntary paid leave or other incentive packages although in this new memo to employees, United does
underscore that the number of people who are going to be furloughed October 1st could be zero if Congress steps up to the plate once more and extends
the CARES Act beyond October 1st saving these jobs into 2021, but that October 1st cliff is only a few weeks away -- Richard.
QUEST: Other airlines, if we look at the numbers, other airlines have come up with similar large losses of staff. We have got United's number. But
also Delta has said it will lose staff. American has said it will lose staff.
These are the numbers that we are looking at. American has warned of 19,000. Delta says 2,000 furloughed pilots; 16,000 for United.
On the international front, we know there are thousands will go at Lufthansa. British Airways says it will cut up to 12,000.
Pete, I mean, even with help, even with government programs, until the flying public feels more secure, then, really, we are looking at a
considerably smaller airline sector.
MUNTEAN: United makes no bones about it, Richard. They say there has to be a widely developed and available vaccine so passengers feel comfortable to
come back.
There is no mistaking, though, that Federal aid will really only stop the bleeding. Airlines everywhere, as you said, are hurting. You know, so far,
this talk is only about furloughs. But now the question is, as we go into the fall and the winter, will we be talking about airlines folding
completely?
You know, United's Chairman, Oscar Munoz said in an exclusive interview with CNN that he does anticipate airlines going out of business. We will
see, though, if that happens as this pandemic drags on.
So far, no major airlines have gone out of business, only smaller regional airlines -- Richard.
QUEST: Pete Muntean in Washington. Pete, thank you. Now, it may seem such an obvious point to make, but you'll see why in a second.
Planes obviously take passengers from A to B. If they are not flying, those passengers aren't getting there and the destinations are suffering.
[15:05:21]
QUEST: The summer slump in European travel has been dramatic, and as we go into the fall and the autumn, so we can now we can see that in crystal
clear clarity.
Travel corridors set up in emergencies are now being slammed shut after a brutal season. E.U. cases are rising. Let me tell you, the U.K. could
remove Portugal from its safe list. There are new restrictions on Greece from Scotland and Wales. TUI is cancelling trips to resorts on the Island
of Zante.
Overall, look at how the summer season has played out in terms of those countries and how much their numbers were down. Croatia is the worse.
Croatia saw numbers down 87 percent. For Portugal and Spain, down 64 percent. Greece down 67 percent. Arguably, it was an achievement that they
held the line at 67 percent.
Harry Theoharis is the Tourism Minister in Greece. He joins me now from Athens. Minister, you didn't -- I mean, you did the best you could, but now
the numbers of infections are rising, even if they are not from imported tourists. So what's gone wrong in Greece?
HARRY THEOHARIS, GREEK, TOURISM MINISTER: Well, it is not a case of things going wrong. When we opened our economy, obviously, we expected and we
expect the number of cases to go up.
We've seen, if you like, a second wave in all the countries. What we did, we explained the plan a few months ago together with you. I am happy to say
we remained with that plan exactly as we said then and we are taking targeted measures when and where it is necessary, and it has been
necessary.
I mean, people in the summer relax a bit more and it is understandable that as I said before that the cases would rise.
Our measures seem to take effect. We have taken some places off the restricted list. So this is good overall. But a very dynamic process. A
very difficult process and we are monitoring it daily.
QUEST: The recent TUI flight back to the U.K., where numerous passengers were on board had the virus, whether they got it in Greece or not, or the
circumstances of it, I mean, what it shows, and what it proves is just how difficult it has been for you to keep your tourism industry open at such a
difficult period.
THEOHARIS: Yes, of course. Back in April, obviously, I would have said that it's not possible to open up. But it is very hard work and with a lot
of cooperation from every part of the industry and of course the public sector, we managed to open and we managed to keep the engines running and
the engines going.
I am very proud of that. And we are going to continue doing whatever it takes to keep our people and our tourists, our guests safe.
Now, we are seeing that we are ready to take any difficult decisions to sort of stop parties, stop wedding or, you know, gatherings in bars after
12:00. So we are doing whatever it takes to keep our people safe.
And when things get better -- and they have been better in the areas where we ...
QUEST: Minister?
THEOHARIS: ... imposed them, we will lift them.
QUEST: Minister, what I do want to get into, as we go into the winter, where you know, the summer season is drawing to a close. Greece
traditionally has longer season because of your position in the Mediterranean and the Greek Sea where you are -- but as you go into winter,
this is going to become a crisis, an economic crisis of another different kind for you, isn't it?
THEOHARIS: Well, of course. We monitored the economic situation as well. That's why we are doing our best to keep the economy with safety in our
mind. But at the same time, we want to ensure that whatever economic hardship and whatever economic problems are still there in the winter, we
will have enough "ammunition," quote-unquote in order to support and to bring the needed to try and support to both employees and the enterprises.
Rest assured that no enterprise and no single employee that needs our support will not find it. We will support each and every one of them.
[15:10:07]
QUEST: Your numbers are down roughly 70 percent, 67 percent.
THEOHARIS: Yes.
QUEST: How much permanent -- how much permanent muscle from the industry do you think has been cut away? Those restaurants, tavernas that won't be
able to come back, those resorts that simply weren't able to get the financing to keep going. What do you think the permanent damage has been to
your tourism industry?
THEOHARIS: WELL, this is again a dynamic situation. Nobody knows the end date yet. We don't know on the health front when we will see some kind of
return to normality.
So this -- the answer to your question might be very different in two, three, four or five months' time.
But for the time being, I would say that the problems are up to a point manageable. I do not see things that will destroy, if you like, the value -
- the assets of what we have built during the past few years.
All this, however, is very contingent on how the pandemic will unfold. Nobody knows.
QUEST: Finally, Minister, how difficult has it been running an industry where at the whim of one government or another -- whether for good reason
or not -- you have suddenly found the entire scenario change.
Scotland suddenly put you on the banned list, another country takes you off the list, and somebody else puts another country. When you talk to other
European ministers, how difficult has it been to manage this?
THEOHARIS: Yes, it's been very, very difficult. We now are back in the stage where we need more coordinated action on a European level. From our
point of view, the Scottish decision has been harsh and we would like to see under the basis of the decision is, because the yardstick that the U.K.
has put on its own of 20 cases per 100,000 of population, we are nowhere near that.
So, if you like, we need more cooperation and coordination in order to ensure that there is more stability it has been a very, very rough and
very, very difficult year.
QUEST: Minister, we are grateful that you have spoken to us on several indication and we will continue to keep in touch with you obviously with
the situation in Greece. Very glad to have you with us tonight on QUEST MEANS BUSINESS.
Now a milestone for China of course which is where the whole virus began in the first place. Now, flights in and out of Beijing to certain select
destinations are about to resume, international flights, specifically. CNN's David Culver is our correspondent in Beijing.
DAVID CULVER, CNN CORRESPONDENT: Richard, this is a big step in things getting back to where we were before the outbreak. China announcing that
from Beijing, the capital, they will be resuming international flights to specific countries that they have listed. Those countries that they have
deemed to be mostly under control when it comes to the outbreak.
We are talking about Cambodia, Greece, Denmark, Thailand, Pakistan, Australia, Canada, and Sweden. Now, what does it mean?
Well, it means eligible passengers are from those countries, individuals with specific visas can come into Beijing and will be able to leave China.
So that's a start in opening borders. However, we have got to stress, the borders here are still very much sealed off to most every tourist, most
every foreigner really.
Chinese nationals will also be allowed to enter and leave. Here's where it will change a bit, though. It is not just coming into Beijing and going
about your daily life. It is coming in to Beijing, getting a nucleic acid test and then going through two weeks of government quarantine.
In fact, here in Beijing, they have already designation one of those facilities to be several miles outside of where we are in the city center.
It is going to be the fifth ring area of this city. It is pretty far out. But it is their way of getting things a step closer to where we were --
Richard.
QUEST: David Culver reporting there from Beijing. Now, the W.T.O. is facing down a global crisis, protectionism from the U.S. over a variety of
issues on its disputes panel.
And the Director General is gone. Well, the outgoing Director General Roberto Acevedo stepped down and he will be with us after the break.
(COMMERCIAL BREAK)
[15:17:33]
QUEST: As you know, the search is on for the new head of the W.T.O., the World Trade Organization and we will be speaking to all the candidates here
on this program.
Reuters describes the W.T.O. as damaged. The Wire calls it in systemic crisis because of Trump administration policies.
There is certainly a general feeling that the W.T.O., the World Trade Organization is not in good shape.
The outgoing leader, Roberto Acevedo joins me now to talk about his time there and the challenges now. He has left the W.T.O. to join Pepsi. We will
talk about that in a second.
Roberto, good to see you. Thank you for talking to us. And we always thank you for joining us always on QUEST MEANS BUSINESS. It has been good to have
you as this has gone through.
But the organization you led for seven years is perceived to be in crisis. Although you may not have created that crisis, the question is, your legacy
in the stewardship of it. How do you see it?
ROBERTO ACEVEDO, OUTGOING DIRECTOR GENERAL OF WORLD TRADE ORGANIZATION: Well, Richard, I have been doing this for 23 years and I don't recall a
moment when the W.T.O. was not in crisis. I have to tell you, even when I took office. The organization was 18 years old. It had never delivered one
single agreement. And we had a Doha round that was going nowhere.
The organization had no sense of direction at that point in time, and nobody's fault, I have to say. It was nobody's fault. It was just the
politics and how difficult it is to manage things in our organization that decides by consensus that unanimous decision of 164 countries.
Nonetheless, we managed to do quite a bit. Early on in my mandate we concluded several agreements, the trade facilitation agreement. The first
agreement that the W.T.O. had ever delivered, then the information technology agreement, the elimination of export subsidies.
There were a number of things that we did, and afterwards, facing the perfect storm, and that's the point that I think you are driving at.
And what we could do, for instance in this perfect storm was to create new ways of negotiation.
[15:20:03]
QUEST: Right. If I jump in here, sir, because the issue also, of course you also faced was President Trump and his outward hostility to the W.T.O.
believing it to be unfair to the U.S., too favorable to china, and so forth.
Now, I expect you are not going to agree with that. But the question is, how difficult did it make your job that the U.S. President was so hostile
to the W.T.O.
ACEVEDO: The degree of changes that was required by the U.S. administration was out of reach, certainly, in the early moments. I have no
doubts in my mind that the W.T.O. needs to reform.
The world has changed, and the major players have changed their powers. The shift in power at the economic level has changed considerably.
But you cannot deliver those changes overnight. This is a process that is going to take several years to re-form the organization, to change things.
The rules need updating.
I have been saying this for the whole time, but until countries are truly engaged in deciding to change, I think it is not going to happen. And I
fear that the W.T.O. and the reform of the W.T.O. for a while was not the priority of some administrations that were critical to making it happen.
QUEST: Are you bitter? Are you bitter in a way at the way in which you were --I mean, if you listen, let's just listen to what you said to me very
early on in one of the unfairnesses of television is that we can play your own words back to you.
Let's do that, so we hear some of the things you said in those early interviews about your hopes for your time at the W.T.O.
(BEGIN VIDEO CLIP)
ACEVEDO: Protectionism has become a lot more complex. It has become more sophisticated. In the past, protectionism was about raising tariffs or was
about providing export subsidies or domestic subsidies.
Today, it is not like that anymore because the W.T.O. disciplines avoid that. You simply cannot do that. So what protectionism has done, it has
evolved.
(END VIDEO CLIP)
QUEST: Now, that protectionism that's evolved became the defining force. Is it possible now with the wisdom of hindsight of office, to put
protectionism back in the bottle?
ACEVEDO: Not without a significant change in the politics. Clearly, today, especially if you look at the U.S./China axis and it is a very antagonistic
relationship that you see in so many different ways.
Unless you see a changing of that, I see protectionism as a tool to address many of the tensions that you see in the world today. So to the extent that
this shift in competitiveness that some countries become more competitive than others, when the labor market is under pressure because of new
technologies, because of, you know, structural unemployment in many areas, I think the easy -- the easy response to that is to find a foreign force, a
foreign enemy, something that is happening outside our borders.
And protectionism addresses precisely that. You say, look, it is not our fault. We are competitive. We are doing fine. The problem is, what is
happening in the world is that people are taking advantage of the situation.
And the only response that can I give to that is to raise barriers and to protect my market, protect my companies. That's the easy answer, but that's
not the right answer. That's not going to solve the problem.
QUEST: All right, so the next person who takes the job, there are eight candidates. We are talking to them throughout this program over the next
few weeks. Do you -- I think this is going to be a long question for a short answer. Do you have a preference? Do you have a view on, of the eight
candidates, who should get it?
ACEVEDO: No. I have no preference whatsoever. The only thing I would say is, choose the right person that is committed to reform. Because no reform,
no future for the W.T.O. I can guarantee that.
So whoever is my successor, that person has to be committed to changing things significantly.
QUEST: Final question, sir, you have moved out. I mean you've gone from the W.T.O. and you have gone to Pepsi where there is a whole new raft of
new challenges. But I was looking at your bio if you like, your CV, this will be -- unless I am dramatically mistaken, which is possible, of course,
that this is your first major role in the private sector.
Now, admittedly, it is in a sort of policy area, but it is in a for-profit company where previously you have either been a diplomat or at the W.T.O.,
an international negotiator. Are you ready for that change? Will it be a big change for you?
[15:25:39]
ACEVEDO: I think it's a perfect fit, actually. First and foremost, I was pretty much committed to change to the private sector. I had more than 30
years of public sector, and I decided that, you know, before I actually retire, and I still have some road ahead of me, I wanted to change things
and to do something different.
PepsiCo offered me an opportunity, the challenge of the position. It is a very high-level position, so I can contribute in a very positive manner. I
can be part of the vision. And I know the CEO, Ramon Laguarta, he is a person with -- that excels both professionally and in ethics.
The company is dedicated to thing which is more than just a business, more than just the growth of the company. It's also about helping the
environment. It's about helping the communities, especially in the times of COVID.
But after that, structurally, the company is responding to these bigger challenges and wants to be a leader in environment, social, and government
issues, and governance issues, and I'm really thrilled to be part of that project.
QUEST: All right. Sir, it has always been a treat and a pleasure talking to you. I hope that you remain a good friend of this program, QUEST MEANS
BUSINESS and in your new role, we will still talk to you about those increasingly important issues, but this time you will obviously be coming
at it from a different way.
We might even seek your opinion on whoever does get the W.T.O. job. Good to see you, Roberto, and thank you. I appreciate it.
ACEVEDO: Always a pleasure, Richard. Always stimulating.
QUEST: Thank you. All right, let's look at the markets, which have got some stimulation of their own under way at the moment.
A quick look at how the Dow has powered on through. We have had a bullish session. There you are, look at that, over 29,000, first time since
February, 1.5 percent. It is about whether or not there will be a deal for more stimulus. This, and that, and the other.
The market likes what it's seeing at the moment. We still have one of the candidates to talk to today -- the Mexican candidate -- on the W.T.O.
candidacy. He will be joining me later in the program to put their case as we go through all the candidates over the next few days who are seeking
Roberto Acevedo's job.
We will have more after the break. This is QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
[15:30:00]
QUEST: Hello, I'm Richard Quest. There's more QUEST MEANS BUSINESS for you in just a moment or two. The Dow is about 29,000. We need to understand
why, and what's been going on. We know the markets on a tab, but why the Dow particularly today. And the celebrity chef Wolfgang Puck is with us
tonight. Restaurants are far from tasty. The restaurant business is far from tasty, and just how much damage can be expected if the return of
inside dining doesn't come to places like New York or capacity increased. We'll talk about that with him in just a moment. This is QUEST MEANS
BUSINESS and CNN. And on this network, of course, the news always comes first.
The German Chancellor Angela Merkel says there's no doubt that the Russian opposition leader Alexei Navalny was poisoned, and she's demanding answers
from the Kremlin. Merkel says tests proved that a Navalny was attacked with a Novichok nerve agent and accuses Russia of trying to silence him. The
trial began to 14 people charged in connection with the 2015 terrorist attack in Paris. They began when gunmen killed 12 people at the offices of
Charlie Hebdo, a French satirical magazine. In all, 17 people were killed over three days before police killed the gunman.
The former Italian Prime Minister Silvio Berlusconi has tested positive for COVID-19. His office tells us that the 83-year-old media tycoon does not
have symptoms and is working remotely from his home near Milan. Prince Harry and Megan Markel have signed a multi-year deal with Netflix. The
streaming service says they will produce films, documentaries and children's programming. In January, they stunned the U.K. when they
announced they were stepping back from royal duties. The couple and their child now live and reside in California.
Alexei Navalny was poisoned with Novichok says the Germans, and the E.U. has described the poisoning as being despicable and cowardly. Now, Navalny
is in intensive care in a German Hospital in Berlin. Russia is denying that any crime took place. Merkel is calling it an attempted murder and says
there will be consequences.
(BEGIN VIDEO CLIP)
ANGELA MERKEL, CHANCELLOR OF GERMANY (through translator): We are informing our E.U. and NATO partners about the results of the findings. We will
deliberate together, and depending on the Russian reaction, we will decide on an adequate common reaction.
(END VIDEO CLIP)
QUEST: Fred Pleitgen is with me outside the hospital in Berlin. Fred, we'll do the politics in just one second, but a brief update, please, on
Navalny's condition. Is he out of danger?
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, he's certainly not out of danger, but his life, at least, appears to be out of
danger. Richard, we got an update actually from the hospital just a couple of hours ago. And they said, of course, he's still very much in serious
condition. He is still also being mechanically ventilated as the hospital put it.
Now, they do say that he is in somewhat stable condition, and his life is not under threat anymore. But they also said that this is going to be what
they call a long illness, of course, because of the fact that he was administered Novichok, and that there could also be long-term damage to
Alexei Navalny, as well. Of course, that's going to be one of the big question is that, even though it seems as though Alexei Navalny is going to
survive all of this, it is very much unclear whether or not this is going to be something that is going to leave him with lasting damage for an
extended period of time, Richard.
[15:35:08]
QUEST: OK. Again, on the river side, please, the -- this has turned -- this is going like Salisbury in the U.K. This turns into she-said-he-said.
Merkel says he was poisoned by the Russian government. Putin says it wasn't us. We end up no better.
PLEITGEN: Well, that's -- that is entirely possible. But you do see that the Germans from day one, since Alexei Navalny got here, they certainly
wanted to take their time with all of this, and they certainly want to be sure that they do have all the facts. I mean, Alexei Navalny was brought
here to the Charite Hospital from on a medivac flight on August 22nd. And the Germans really took until now, until September 2nd to come out with the
actual results. And they didn't just involve a few labs on all this. They went to the best lab here in Germany, which is the toxicology department of
the German military, and they came back today and they said, unequivocally, without any sort of doubt that it was Novichok that was administered to
Alexei Navalny.
Now, Angela Merkel did not specifically say that she believes that the Russians did this. She just says that the Russians have some serious
questions that only they can answer and that they need to answer. And, you know, Richard, this is one of the few times that I've really seen Angela
Merkel really evidently angry as she came up to the podium today. And that's also, of course, one of the reasons why the Germans are saying
they're going to consult with their E.U. partners, they're going to consult with NATO, and then just decide what the best way forward is. But they do
also say that they want to give the Russians a chance to clear all of this up.
Of course, we've already heard from the Russians today, they once again said that all this is anti-Russian propaganda. And they also said that when
Alexei Navalny was in that hospital in Omsk that there was no sign of any chemicals inside his system. Certainly, doesn't seem as though at this
point in time, the international community and certainly Germany is buying that. But you do still hear the Germans saying what they're demanding now
is transparent investigation into all this as unlikely as they believe that that might be, Richard.
QUEST: All right, Fred. Thank you, Fred Pleitgen, in Berlin. So, the Dow right at the top of this program, we saw it go through 29,000 for the first
time since February. And now, if we look at the underlying numbers within it, the Dow 30, you can see it's the cyclicals, interestingly, that have
done the push today. Things like 3M, Honeywell, et cetera, are amongst the top gainers. Coca Cola cyclical, IBM, Intel, it's tech. Dow good solid
stock, literally if you like. Paul La Monica, why today, Paul, what happened?
PAUL LA MONICA, CNN BUSINESS REPORTER: Yes, it is interesting to see this rotation out of some of the sexier big tech names that have been leading
the market for some time. Apple is one of the few stocks in the Dow that is lower today, one of the FAANG group, of course, but Salesforce, one of the
new entrants in the Dow, one of the companies that helped replace ExxonMobil, it is down today, as well, but it's not simply a case of tech
falling while the rest of the market is rising. You mentioned some of those cyclicals, but IBM and Intel are both tech stocks, as well. They're just
more cyclical older tech companies.
You're seeing semiconductors rally today, Nvdia, which has been one of the hottest stocks in the market actually bigger than Intel, worth more than
Intel now, not the Dow, but a leader in the S&P 500. That stock is rallying, too. So, you're seeing chip stocks rally, and I think that is a
sign that people are hoping that the broader economy is going to make a comeback as chip stocks are definitely a macro leader, you know, a market
leader when you see the economy.
QUEST: Oh, pulling the strands together, we see -- we see the spider's web of the economy. Paul La Monica, thank you. And after this short break, we
will be hearing from one of the candidates who wants to join and become the leader of the WTF. In a moment.
(COMMERCIAL BREAK)
[15:40:00]
QUEST: Earlier on, we heard from the outgoing Director General of the -- actually, he's gone -- of the WTO, the World Trade Organization. He said
reform must be at the heart of his successors' agenda, who is currently facing what Azevedo described as a Perfect Storm. There are eight
candidates to replace him. We're talking to them all during the process. Jesus Seade is the Mexican nominee to head the WTO. He joins me from Hong
Kong, where it is the middle of the night. Sir, we're very grateful that you've stayed up this late to talk to us. And you're the Mexico's
candidate, your predecessor, if you get it, the predecessor says, reform of the WTO must be at the heart. So, how will you offer up reform?
JESUS SEADE, MEXICO'S NOMINEE FOR WTO DIRECTOR-GENERAL (via Skype): Well, there are lots of things that have to happen. The first one is that
negotiations have to be engaged in a serious way. It's the heart of the WTO system and for 26 years, we've had almost no negotiation. Secondly, the
appellate body is not on the floor. It's not working. We have to make it work. But then third, we have to -- have to make the place a lot more
efficient, inclusive, and dynamic. That's probably a good agenda for reform.
QUEST: All right, but the critics say that you're too closely allied to the United States. After all, you've got the USMCA through. So, can you
evidence sufficient independence, if you like, from a North America agenda that might still be dominated by Donald Trump after November?
SEADE: No, I really don't see what this can be based on. I negotiated with United States, the USMCA and got very good results that the United States
was not exactly keen at the beginning to do -- to agree on. We negotiated well. I have shown an ability to negotiate with the United States which is
crucial for WTO. But otherwise, all my life, I've spent more time in Europe than anywhere else in the world, including my country. And I have lived for
10 years in Hong Kong. I have worked on all the world. I'm a citizen of the world, close to everybody, not too close to anybody.
QUEST: Oh, I love that phrase, "Close to everybody, not too close to anybody." Your trade credentials are impeccable having negotiated the USMCA
and been heavily involved in trade during your professional life. But I wonder if there's a -- do you have the reformist mindset, bearing in mind,
Azevedo came in when the Doha Round was still around, and he killed it off, facility -- the best achievements with facilitation and minor agreements.
Is it ever possible to get a major multilateral trade deal?
SEADE: Oh, it is absolutely not only possible, it is possible, it is essential. Without it, the laureate you will continue to wither away into
irrelevance. We need a big agreement on a number of areas. In agriculture, on the green economy and development, sustainable development, on
transparency across the board, transparency in trade practices, in investment decisions, in prices, which is the only way for the United
States and China and everybody else to begin to get closer to each other.
[15:45:17]
We need a big result and precisely because things have gotten worse. I believe that everybody is listening to the call of need to move forward.
And so, this is all about moving forward. And that's what I can offer.
QUEST: Good to have you with us, sir. I'm very grateful. It's quarter to 4:00 in the morning for you in Hong Kong. I'm glad and grateful that you
stayed up tonight to talk to us. Thank you.
SEADE: Like there are spies in the --
QUEST: The chief executive of Daimler -- thank you, sir. The chief executive of Daimler has just launched a new S when -- Class Mercedes-Benz
car, just so at the height of your like of a pandemic. You might arguably say that this is not the time to be launching a new car when times are so
difficult, but the CEO of Daimler says the company has done remarkably well. All things considered.
(BEGIN VIDEO CLIP)
OLA KALLENIUS, CEO, DAIMLER AG: When the pandemic hit the markets, we had an unprecedent reduction in sales, especially the quarter two. But we had
had a little bit of a warning because we saw this come to China first, and already in February, we saw the sales drop. But already, June, July, we
started pick back up again. So, the whole topic of buying a luxury car, making sure that you have the individual freedom, the self-determined
mobility that our founding fathers invented. We are slightly optimistic that we're going to gradually return back to some kind of normality.
QUEST: The optimism is good and the new car that you are offering up, I'll be reading up on its various A.I. features. I find the one -- I mean, you
know, maybe just because I'm the wrong side of 50, but I'd find the -- this one that lifts the vehicle and the side impact -- in the event of a side
impact within 10th of a second, it will raise the vehicle. Is this the new future, these sort of enhanced safety security devices?
KALLENIUS: The S-Class is the flagship of the Mercedes portfolio. So, of course, our engineers, they really want to improve the vehicle in all
dimensions and safety has always been something that Mercedes Benz brand has stood for. And the feature that you just mentioned is just one of these
many little angels that takes care of you. If you God forbid, end up in an accident, you want the vehicle to give you maximum protection. This will be
the vehicle -- the first vehicle in the world with an airbag actually for somebody sitting in the backseat. So, so many features are going into the
S-Class that are designed to protect you or protect the people around you.
QUEST: Once tempted to always ask you, did you consider delaying the launch of this car? Nobody wants to have a major launch in the middle of a
pandemic. But I guess you get to the point where you got to do it sometime. So, where are those discussions?
KALLENIUS: When we sat here in March, and we looked at the project and said, we have the last six months, the final stretch of this project,
really, to get across the finish line. And at the same time, parts of the company is in lockdown. Some people are in home office. How do you do it?
And here I really have to applaud the team, the engineering team, the project team around the S-Class. They had the ingenuity, the flexibility,
all the passion to keep this project on time. So, we're launching according to our original schedule, and the reaction that we have had from customers
and fans around the world, people really are waiting for this car. So, I'm very proud that we're on time.
QUEST: So, you're ready for that. You're ready for Brexit, you're dealing the pandemic. You know, one looks at a variety of issues, and here you are
launching a luxury car, which of course, is crucial to your future success. In all of these global issues, which one is worrying you the most at the
moment?
KALLENIUS: Well, you have just mentioned, if we use baseball terms, a few curveballs that were thrown at us this year, but in our core, we're a
innovation and technology and engineering company, we're looking at pushing boundaries. We're in the transformation of the -- of the whole automotive
industry going towards CO2 neutrality, and digitization, using artificial intelligence. So, we believe pushing ahead, especially when the times are
maybe a little bit stormy, bring those new attractive products, and the customer will come.
(END VIDEO CLIP)
QUEST: CEO of Daimler. After the break, Wolfgang Puck will be with me, the famous celebrity restauranter and cook on the crisis facing the industry of
-- of high-end restaurants. There's Wolfgang. We'll be with you after the break, Wolfgang.
[15:50:07]
(COMMERCIAL BREAK)
QUEST: Michelin star restaurants are slowly coming back to life. According to the guidebooks, 83 percent of them have opened worldwide, but of course,
it is spotty. Restaurants need to -- the high-end restaurants need to maintain their valuable reputations. That is difficult to do with new
restrictions on indoor dining. Wolfgang Puck has had to close two of his restaurants. Still more than 30 restaurants, bars and lounges remaining in
the -- in the group. Wolfgang Puck joins me now from Los Angeles via Skype. The challenge, obviously, Wolfgang, is to open safely, but also to do so
where you have capacity restraints that often only allow you to have 20, 30, or 40 percent of diners. Does this simply make the economics
impossible?
WOLFGANG PUCK, MICHELIN STAR CHEF (via Skype): Well, you know, Richard, there are certain things when there is a big problem, we've found the
solution. For example, a cut at 45 pounds in London, we open the outside for the first time. I never thought we should have outside a terrace. And
you know what, it has become so popular. People love to eat outside, you know? I think it's really wherever there is a space. Now, I must say the
weather in London is not always Great. So, sometimes we tried to set it up half an hour later, the rain comes and everything has to move inside.
But I think, to me, here in Los Angeles, some of our restaurants are closed still. Maui is still closed, so New York, we just opened at New York, just
opened outside only. New York has the same bad weather, you know, often that all of a sudden, you've got a thunderstorm, and then it's -- so, it's
still very, very difficult. We still have a lot of restaurants who are closed, like in Washington, DC, we are closed totally. And in Dallas, we
are closed. So, I think --
QUEST: Wolfgang --
PUCK: -- we try our best. Yes.
QUEST: The ability -- the ability to open and offer fine dining will get more difficult in the winter, won't it? And so, what is it that high-end
restaurants like you want from governments, from policymakers, from cities, what would make your job and life easier?
[15:55:10]
PUCK: Well, I really believe when four counts, we're going to need some restriction probably and some way to serve inside. If it's 50 percent or 30
percent, whatever it is, but we're going to need part of it because the weather is getting colder and the weather is getting more and more rainy.
So, I think if the policymakers can come up with a unified way to say, OK, let's just give them 25 or 50 percent of the maximum maybe occupancy, that
way we can continue the business. If not, I have to close down again.
QUEST: That's going to be the big fear, which of course, we don't wish because that's obviously -- so, if you had to sum up the -- your hope
because we always like to end positive here on QUEST MEANS BUSINESS in the business world. Your hope for how -- briefly, for how you think this can go
forward, as we look forward to Christmas?
PUCK: Well, I hope it's going to change. I hope we're going to have the pandemic under control a little more than we have it now, especially here
in L.A. County, where we have five restaurants. So, I think it's really an important part that we get the pandemic under control somehow. And then,
hopefully, my hope is really to get 50 percent occupancy, enough social distancing, maybe if we put some plexiglass in between the tables, so that
way people feel comfortable because my biggest fear is my employees that they get sick, but also our guests. I want our guests to feel comfortable.
If not, they won't come to the restaurant.
QUEST: You and I will meet in Los Angeles or somewhere suitably, socially distance, where we can then talk about these and other issues. Wolfgang
Puck, I appreciate you joining me tonight on QUEST MEANS BUSINESS. Thank you, sir.
PUCK: Thank you.
QUEST: And we will take -- we will take a "PROFITABLE MOMENT" after the break.
(COMMERCIAL BREAK)
QUEST: Travel and tourism is the world's largest single industry. That is why we give so much time and love and attention on QUEST MEANS BUSINESS.
And tonight, you heard three views on it, from the airlines, which of course, are cutting back dramatically, tens of thousands of employees. To
the resorts that are now facing a difficult winter ahead, for example, that you heard from the Greek tourism minister. And finally, from Wolfgang Puck
with his restaurants, what they need in terms of regulation, and easing of restrictions, and help from governments and authorities.
I raised all three of them, because what's now clear is that the authorities, regulators and governments need to do more to help these three
crucial areas of hospitality, transport, travel and tourism. That is going to be the key to ensuring that there aren't hundreds of thousands of
people, more people put out of work as we go into a difficult autumn and winter. And that's QUEST MEANS BUSINESS for tonight, I'm Richard Quest in
New York. Whatever you're up to in the hours ahead, I hope it's profitable. The closing bell is ringing. The Dow is over 29,000. The day is done.
END
END
