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Quest Means Business
European Stocks Bounce Back to End Week on Strong Note; Man Found Decapitated in Parisian Suburb, Police Kill Attacker; Viewer Whiplash Between Trump and Biden Town Halls; French Anti-Terror Officials Investigating Decapitation; Cases In Europe Surging Much Faster Than In U.S.; Europe Introducing New Measures to Curb Second Wave. Aired 3-4p ET
Aired October 16, 2020 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:10]
RICHARD QUEST, CNN BUSINESS HOST: It is Friday, the end of the week and the last trading day. Sixty minutes of trading still to go and the market is
ebullient and strong. It has been up all day.
Interestingly, think about the COVID crisis. Think about the two debates last night or the two Town Halls last night. What are investors seeing
there? We'll talk about it over the course of this hour.
The day has been busy. This is what's happened.
A gruesome attack in Paris hours before coronavirus curfew comes in. We will be in the French capital very shortly.
The W.H.O. - World Health Organization says national lockdowns are a last resort as European cases explode.
And Vice President -- former Vice President Joe Biden scores an upset victory over Donald Trump in the U.S. TV ratings.
Live from New York. It is Friday. It's October the 16th. I'm Richard Quest and of course, I mean business.
Good evening. We begin tonight with a historic event taking place in Paris where the coronavirus curfew is about to kick in. Now, it starts at
midnight, but of course from tomorrow, that curfew will begin even earlier.
Ten French cities in France at the moment are all imposing nighttime lockdowns. It comes amid unprecedented surges. France has recorded more
than 30,000 daily cases for the first time since the pandemic began.
The World Health Organization is warning of an exponential rise across the continent. France, U.K. and Russia are amongst the hardest hit. And by
January, the European death toll could be five times its April peaks as the W.H.O.
The Europe Director is very worried and says national lockdowns are a last resort.
(BEGIN VIDEO CLIP)
DR. HANS KLUGE, W.H.O. REGIONAL DIRECTOR FOR EUROPE: In March, the lockdown was a default option because everyone was caught off guard. Now, we know
much better, and in that sense, what I am calling for is for what they call targeted proportionate measures, escalating, engaging the communities where
we have to look both at the direct impact of COVID.
And in March, we only looked at the direct impact of COVID. Now, we get wiser. We have to look at what they call the collateral damage, the social
issue and economically.
(END VIDEO CLIP)
QUEST: The issue of COVID, the wide and then narrow effects. Well, the markets have had their own frolic of their own.
If you look at how markets have traded in Europe, all things considered, a strong performance by one and a half, one and three quarters, two percent.
The bouncing back from Thursday lows, the auto stocks were performing the best for what to do in terms of the livelihoods. The former E.C.B.
President John-Claude Trichet says and warns governments not to waste money as they are pouring billions if not trillions into economies in a wide
variety of different plans.
The former president of the E.C.B. is warning that one major risk is that the money being spent won't be targeted. It will be propping up jobs that
no longer should exist. It will be trying to get back to where we were when the entire economic situation is completely different.
(BEGIN VIDEOTAPE)
JEAN-CLAUDE TRICHET, FORMER PRESIDENT OF THE E.C.B.: This is really a health problem, and we have to solve the health problem as soon as possible
for all, and this is of course a global issue of first magnitude. How to have the vaccine in all countries that are all badly need of getting out of
this terrible mess.
QUEST: Handling the economic side, obviously the Central Bank seems to be particularly, has put out a plethora, I mean, an entire smorgasbord of
various plans, programs, essentially buying anything and almost everything, but governments have done a lot, but the argument is they still need to do
more. Where do you think? What do you think?
[15:05:04]
TRICHET: I think that if you take government's whole taken into account, they have been extraordinarily bold and extraordinarily sweet in their
response. So I would -- I would say that we have to congratulate her.
But then also knowing that in any case, of course, and this money, which is gigantic, should not be wasted. And that's one of the problem.
When you are opening up all the coffers to that extent, you have a risk of wasting money. So my message would be not waste the money which is
appropriate, which is necessary. But again, don't take advantage of the fact that it looks like there is no limit to the spending.
QUEST: When you say wasting money, do you see signs of wastage?
TRICHET: I think it's a big risk, because it looks like neither in the U.S. nor in Europe, nor in all advanced economies, there is an image for public
spending, we know that there are limits, we know that at the time, we'll have to pay for that.
So it is appropriate to be up to the challenge today, but let's be very cautious not having to our children or grandchildren to pay for, I would
say unnecessary measures that would be spent, we will have to reallocate resources when time comes.
And if we concentrate only on maintaining entities, enterprises, entities, and activities that will not be needed after the pandemic, then we are
probably doing a bad job because we will have to facilitate the transition to facilitate the reallocation of resources.
QUEST: At what point does reality strike the markets do you think in the sense that, you know, earnings are going to suffer because it may be a
partially V-shape, but it looks more like a K or a U, at some point, the reality is going to dawn that Central Banks can't continue to offer this
free money, all of this cheap money, and that companies aren't going to do as well or maybe I'm wrong.
TRICHET: No, you're right. Of course, this is a transitory period. It cannot go forever. If it went forever, it would only mean that the
situation is dramatic forever, and that is unthinkable.
So at the time, things will go better. I mean, go better in the real economy, progressively. Of course, all the way and progressively. And of
course, that will not call for the Central Banks to continue to be as extraordinarily accommodating as they are today.
So I am expecting, you know, progressive, more orderly situation in the heat economy side, and of course, we saw that already. We said that
already. The health issue is absolutely key and commands everything, and then at the very moment where the situation goes better, the Central Bank
will not be called to continue to be as extraordinarily accommodating.
Of course, at a time or a reality, we come in the market and is the reason why, if I have a message, it would be continue to be very cautious and
prudent on the market because we knew that the present situation is largely artificial.
(END VIDEOTAPE)
QUEST: CNN Breaking News to bring to your attention. An attack Paris a couple of hours ago that left -- that has left one person decapitated and
the police shooting dead the assailant.
Our correspondent, Jim Bittermann is in Paris. We spoke an hour or so ago when facts was sort of rather few and far between. But we now know quite a
bit more about the person who was attacked and the circumstances or at least the assailant. What do we know?
JIM BITTERMANN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, Richard, we're getting details very slowly, and one of the reasons I believe is
because the President of France, Emmanuel Macron is on his way to the scene right now. I suspect that once he gets there, there'll be more a release of
information.
But in any case, it has now been confirmed that the victim was a teacher at a secondary school, which is very nearby the border of these two towns,
about 45 minutes or so to the northwest of Paris, Conflans-Sainte-Honorine and Eragny-sur-Oise. These two towns are kind of sister counties. In any
case, the teacher was a teacher in a school in one town.
The assailant was shot dead by police when they refuse to give up a knife, just a short distance away in the neighboring town of Eragny.
In any case, the President is on his way. They are along with force other Ministers and the Prime Minister. We understand one of the ministers with
him is the Minister of Education, Jean-Michel Blanquer, and just a few minutes ago, he tweeted this, he said, "Tonight, the Republic is attacked
with a despicable assassination of one of its servants, a professor. I think of him and his family. Our unity and steadfastness are the only
answers to the monstrosity of Islamic terrorism."
So he has identified this specifically as Islamic terrorism, the Education Minister -- Richard.
QUEST: Right, and this is from other accounts that I'm seeing and correct me if I'm wrong or if it is not confirmed. This might have to do with the
Charlie Hebdo, the various the drawings and the cartoons of "The Prophet," and which some say -- I mean, do we know that there is a linkage between
that and this attack?
BITTERMANN: We don't know. It hasn't been confirmed. But that's a great suspicion here. It was just last month that there was a very similar kind
of attack outside the former offices of Charlie Hebdo here in Paris. Two people were critically injured in that attack and two other slightly
injured, and it was a knife attack something like this.
And this is about the fifth time this year that we have had similar kinds of attacks with knives, some of them deadly, some of them not. But in any
case, this attack tonight, proved to be deadly for the professor at that secondary school. His assailant was also killed in when he failed to give
up his arm to police -- Richard.
QUEST: We can see -- we are seeing some people arrive. But we can't see if that was the President, although it is a very large group of people. It
does look like Macron. My producer says, you're seeing it on a much larger screen. And certainly, the large numbers of people involved would suggest
senior officials. Anyway, they've gone inside and we can't see them anymore.
But here's a -- look, why would Macron go to the scene? I know it's sort of part of the tradition here in France at the first whiff of something like
this, the President or the senior ministers head off to it, but I wonder whether it's called for?
BITTERMANN: Well there's a lot going on here, Richard and in a lot of different ways, the President may have wanted to emphasize the fact that he
was engaged at all levels. He's just been on the air this week talking about the curfew that's been put in place in France.
This is, I guess, a chance for him to show that he doesn't -- he hasn't taken his eye off the ball off terrorism. He's gone out there, you know,
almost immediately. He left the Elysee Palace in that motorcade, rather large motorcade with other ministers and the Prime Minister.
So there's a great group of politicians out there, even though this attack compared to some of the other attacks that have struck France in the last
five years. This attack, not as severe, but still, it's the kind of thing that's happening on Macron's watch. And perhaps he feels the obligation to
emphasize the importance of it by its own presence on the scene.
The Elysee immediately activated the crisis cell -- the anti-terrorism crisis cell, and the anti-terrorism prosecutor is involved. So there's no
question, I think that they are branding this as an act of terrorism and perhaps the President wanted to show that he in fact, is on duty at all
fronts this week -- Richard.
QUEST: Jim Bittermann in Paris. Jim, thank you. When there is more to report, please do come back.
As we continue on QUEST MEANS BUSINESS tonight, it was an evening of dueling Town Halls between Joe Biden and President Trump. But who won the
ratings battle, never mind, the presidential battle. We will tell you after the break along with Armando Iannucci.
Now the creator of "Veep" says even he couldn't make up what's been happening with the U.S. President. In a moment you'll hear from him.
(COMMERCIAL BREAK)
[15:16:24]
QUEST: Early viewing numbers from last night's dueling Town Halls between Biden and Trump was sure a surprise. According to the preliminary numbers
and they are not final, Joe Biden on ABC attracted around 12 million viewers. However, Donald Trump on NBC got 10.4 million viewers.
Now Donald Trump of course is famous for being ratings obsessed, and arguably, some said the only reason he did that Town Hall at 8:00 p.m. was
again so he could prove he got greater numbers than Joe Biden.
However, for viewers, perhaps like me, who spent most of the evening switching between the two in breaks, the difference could not have been
greater. One was a very detailed, some would say wonkish arguably boring account of policy. The other was a lot of noise and light, but arguably
very little substance. Have a watch.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Just the other day they came out with a statement that 85 percent of the people that wear masks catch
it. So I mean, this is a very --
SAVANNAH GUTHRIE, NBC NEWS ANCHOR: They didn't say that. I know that study.
TRUMP: That's what I heard and that's what I saw.
JOE BIDEN (D), PRESIDENTIAL NOMINEE: The words of a President matter.
UNIDENTIFIED FEMALE: Absolutely.
BIDEN: No matter whether they are good, bad or indifferent, they matter. And when a President doesn't wear a mask or makes fun of folks like me when
I was wearing a mask for a long time, then as you know, people say, well, it mustn't be that important.
TRUMP: Why aren't you asking Joe Biden questions about why doesn't he condemn Antifa? Why does he say it doesn't exist?
GUTHRIE: Because you're here --
TRUMP: Antifa -- that's so cute. Antifa exists. They're vicious. They're violent. They kill people and they are burning down our cities. And they
happen to be radical left.
BIDEN: If I'm elected President, the first thing -- and not a joke -- and you can ask if they tell you your dad's old friend is in the Republican
side, I'm going to pick up the phone and call him and say, let's get together. We've got to figure out how we're going to move forward here
because there's so many things we really do agree on.
(END VIDEO CLIP)
QUEST: David Chalian is our political director. He joins me now. The best quote I saw during the event was one of the commentators who was doing live
update said that Joe Biden was boring, dull, detailed, and thank God for that, that's what we need.
DAVID CHALIAN, CNN POLITICAL DIRECTOR: I certainly think that was Joe Biden's strategic mission, Richard. When you're the front runner in a race,
the principle rule you want to follow is do no harm. So Joe Biden went into his Town Hall last night with that in mind.
He was not looking to mix things up or grab the headlines, he wanted to do no harm and he did. He went in there, and as you noted, he did so with
substance, right? I mean, he talked in detail about his tax policy. He talked in detail about Criminal Justice Reform, and of course, kept up his
criticism of the President's handling of the coronavirus pandemic.
QUEST: The numbers are now pretty heavily in Joe Biden's favor, have we reached the point where it's too late for the President to pull it back.
CHALIAN: No, I don't think we have. I mean, we've seen races turn in closing days of a campaign and you can't count for anything sort of
unexpected. You also can't account for the success -- potential success of foreign interference or voter suppression efforts, so I'm not sure that we
can say this race is over.
[15:20:08]
CHALIAN: You are right. The numbers are in Joe Biden's favor. He is the clear front runner in this race. And as you know, I mean, we've seen now so
much early voting here in the United States that, I would say between 10 and 15 percent of the expected overall electorate when all the votes are
counted 10 to 15 percent of those votes have already been cast.
So the time is dwindling for the President to be able to turn around his fortunes.
QUEST: When I watched the President last night, particularly on this QAnon and the Antifa and all of this white supremacy. I mean, he's already got
his base who are hardly likely to desert him at this late stage. Why does he feel the need to continually alienate that middle ground that could be
brought into the fold? Or more likely from now from 2016 back into the fold?
CHALIAN: Yes. Well, Richard, this is the million-dollar question. I mean, you have just posed it. I have asked every day of the Trump presidency, as
I observed for three and a half years, nearly four years of what he has done. What is the President doing today, to add to his coalition of
support? And on almost every day of the Trump presidency, he wasn't.
You're asking now why at the end. He is still playing to his base. Because he has shunned the middle and didn't try to broaden his appeal throughout
his presidency. His only strategy for re-election at this point is to mine deeper into his base and find Trump-minded voters out there who didn't show
up in 2016 or 2018 in the midterms and get them to join the effort. That's his only path to re-election now.
QUEST: David Chalian joining us. Thank you.
CHALIAN: Sure.
QUEST: Now, the performance that we saw from the President of the United States last night, to some extent was a vintage performance and fits the
pattern of his recent behaviors. Let's remember, just what he has done so far and it makes sense in a moment.
We had the motorcade -- the motorcade when he had COVID, arguably, putting his Secret Service detail at great risk. Then, the "Evita" balcony moment
later in that same day. Off comes the mask, as you can see.
And only today, he tweeted a satirical story as if it were real. This is the way the President did it. The creator of "Veep" says he couldn't make
this up if he tried and he knows a thing or two about satire.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Oh my god. It's like she's walking on a carpet of mice.
UNIDENTIFIED MALE: Jesus Christ, Gary, are those real shoes? Those are dog toys.
UNIDENTIFIED MALE: It sounds like that theme from "Psycho."
(END VIDEO CLIP)
QUEST: "Veep" airs on HBO, which of course -- "Veep" airs on HBO, which shares the parent company with CNN.
Armando Iannucci is with me, the man behind "Veep." He joins me now. I read your article in "New York" Magazine, and it fits with what we've talked
about on this program before that just when you think it can't get more wild, it does. You couldn't have written this.
ARMANDO IANNUCCI, CREATOR, "VEEP": No, all for the days when the President is having squeaky shoes was the main headline. Yes, I think it goes back to
the point you were making with David. He is an entertainer, Donald Trump. You know, he is a ratings fanatic.
You know, and it all started with him exaggerating the inauguration crowd. He tweets regularly about the size of the audience that he gets at rallies.
He finds any opinion poll that has him ahead. He is obsessed with numbers, and I think that's why he can't change because actually, he courts people
who will applaud him. That's what he's used to and that's what he will keep on doing.
QUEST: Armando, does he make your job easier or harder? Because in the one sense, he is providing more -- a good example, if you had said that before
the election, firstly, right at the last minute the President will get COVID and B, there would be a Supreme Court Justice, the most famous and
loved, Ruth Bader Ginsburg would die weeks before, thus, setting off the biggest challenge there. I would have said, you are mad. This would never
occur in a book or a film.
IANNUCCI: That would be reality, jumping the shark, really.
Well, the thing that has changed is that when we did shows like "Veep," there were a set of agreed norms and rules by how -- by which politics was
conducted. And what we did in every episode was show how those rules were sometimes bent and occasionally broken.
[15:25:18]
IANNUCCI: But when a President says, you know, literally, I can shoot someone in the face in the middle of Fifth Avenue and still get elected,
there are no rules. That's the point that -- politics is governed. And therefore, it's very difficult to show that lack of rules being broken.
And therefore we're in this sort of strange fantasy land where something more bizarre than the day before it happens, and yet, it is happening in
the real world.
QUEST: Was this inevitable? I am old enough to remember the election of Jimmy Carter and everybody got terribly excited that a peanut farmer had
got elected, even though being a Governor that was ignored.
But then we had the rest of the world scoffing at Ronald Reagan. Trust those Americans to elect an actor. Therefore, if we follow that line, and
under to its logical conclusion, do we end up with the reality show?
IANNUCCI: Yes, I think part of the problem is, with the expansion of social media, anything seems as equally valid as anything else. You know, when you
go on these websites, they all look roughly the same.
So you can have something, you know, an article from "The Washington Post," but when it's put up, something that's been put up on Breitbart, or
wherever, the look of it is the same. And therefore, it is very difficult to judge what is true and what's real.
And once that blurring of what is real and what is false happens, then we're in a kind of strange new "Through the Looking Glass," you know, we
talked about QAnon, the QAnon and the contact with the Republican movement means that you know, this is going to continue, irrespective of whether
Trump wins the next election.
QUEST: And for you, as you sit down to write the next, bearing in mind, that whatever you write, frankly, much as I love your work, sir, but
whatever you write, it will be eclipsed by the reality of the last four years. So which way will you write in future?
IANNUCCI: Well, I am writing -- I'm currently writing Avenue 5 on HBO, which is set 40 years in the future and in space.
I think my solution to what's happening now is get as far away from the present day as possible and as far away from the planet as possible, and
hopefully, in that kind of sense of detachment, be able to make some kind of observation about what the heck is going on.
QUEST: Armando, having you on the program set the entire office a Twitter, so to speak this morning and I can see why and we're very grateful that you
joined us. Thank you very much indeed. I appreciate it.
IANNUCCI: My pleasure. Thank you very much.
QUEST: It is QUEST MEANS BUSINESS at the end of the week. The numbers in Europe on COVID are truly alarming. National lockdowns can't be far away
say some; others believe that that would be a grave mistake. We'll talk about it after the break.
This is QUEST MEANS BUSINESS at the end of the week.
(COMMERCIAL BREAK)
[15:31:19]
QUEST: Hello, I'm Richard Quest. Of course, there's more QUEST MEANS BUSINESS. We have another half hour or so to go together. And when we do,
we'll tell you about the worsening situation in Europe and half of medical experts about what they basically are we looking at more national lockdowns
if these regional shutdowns don't work.
And the CEO of Safaricom from Africa will be with us. The shift to mobile payments has picked up the pace in a continent that was already well ahead
of everybody else. We'll discuss that.
This is CNN. And we'll do it all after you've had the news headlines because on this network, the news always comes first.
In France, counter terror prosecutors investigating the beheading of a school teacher in a suburb in Paris. He shot and killed the alleged
attacker. France's Education Minister is calling the teachers death a despicable assassination.
The British Prime Minister Boris Johnson says Britain should prepare for no deal -- no trade deal Brexit and accuses of the European Union refusing to
negotiate seriously. Prime Minister is floating the idea of an Australia style relationship instead, based on global trading principles. E.U.
negotiators say they're ready to resume talks next week. The U.S. has now surpassed eight million coronavirus cases, and that figure still leads the
world.
Although India is close behind and Brazil as a distant third. Then there's a steep drop off Russia is the only other country with more than a million
cases.
This time tomorrow, Paris will be in lockdown and curfew. There will be difficulties meeting people in London and across the European continent.
New restrictions are starting to bite ever tighter. It has been a record week for the number of COVID cases, looking at the seven-day moving average
and comparing it to the beginning of the pandemic. And you see what a worsening situation it is.
The Europe, by the way, far exceeds the United States, the E.U. has about twice the number of population per day the whole continent of Europe. So,
as we've done and looking at it as a sort of as the forecast and the forecast is not good. It is gloomy to say the very least. Locked down
clouds are gathering some cases, mandatory national lockdowns, there are mandatory curfews in France and in Italy.
There's no indoor gatherings with other families that aren't in your bubble or above the rule of six in the U.K. In Catalonia recording the restaurants
are being shut. And Germany has some very detailed but possibly the most restrictive limiting travel within regions. Dr. Ashish Jha is the Dean of
the Brown University School of Public Health and joins me now. Doctor, good to see you as always. So very grateful for you.
And I guess these countries, they're all doing the same thing, but in different ways, restricting the ability of people to meet. Do we know the
circumstances which gives rise to most cases? Is it meeting in houses, meeting in pubs, is it so? What -- where do people catch it?
[15:35:03]
DR. ASHISH JHA, DEAN, THE BROWN UNIVERSITY SCHOOL OF PUBLIC HEALTH: Yes, great. Thanks for having me on and it's a great question. And we know a lot
more now than we did back in March. What we know now is that this virus spreads when large numbers of people gather indoors and are not wearing
masks. That can happen in bars where it's very hard to wear masks, because you're drinking often happens in indoor dining restaurants.
And it happens in people's homes when you have five or 10 friends over one person can be an asymptomatic spreader have no symptoms at all, and can
spread it to everybody. This is happening across Europe; it's starting to happen across --
QUEST: So, let's talk about the U.S. The U.S. has traditionally been about up to a month behind the rest of the world in this. It was at the
beginning. And that seems to have followed through. Is it your feeling the U.S. will get a sizable second wave similar? I mean, we hope it doesn't.
But do you deal in facts not hopes, a large second wave, similar third wave in the U.S. case, similar to what you're seeing?
JHA: Yes, so what we saw in Europe, the reason things look so bad now and are likely to get much worse across the European continent is because cases
started rising in early to mid-August and people largely ignored it, policymakers ignored it. And now they're at a point where they can't ignore
it anymore. This is what happens over and over again. And that's starting to happen in the U.S. Cases have started rising about a month later than
the increases in Europe.
And we're ignoring, we're acting like there's no new wave coming here. And the problem with this virus is that by the time you see hospitalizations,
and deaths, you've got two to four weeks of infections already built in. This is a virus that punishes you if you're slow to respond.
QUEST: So, yesterday, we had one of the former head of Public Health England on the program, who chastised me when I suggested that maybe this
is just all too difficult. He points out New Zealand, Australia, Singapore, whole variety of other countries have managed to contain. But I think that
in somewhat so generous, is it possible for these large countries like the U.S., U.K., Germany, France, to maintain the necessary restrictions to beat
this?
JHA: So, I think it is and let me say why. So first of all, Japan is a pretty large country, I mean, obviously homogeneous, but still, it's a
large country, and they've done a good job. Germany, relative to other European countries has done a fabulous job. And it isn't like we have no
idea what to do. We do know what to do. And the key things everybody knows avoiding indoor -- large indoor gatherings, wearing masks, having a good
testing program.
If we do those things, and if we act early, when we start seeing increases in cases, closing our eyes for two months and hoping it goes away is not a
strategy. But if we act early, we can stem these kind of outbreaks off. What has happened in Europe is that they've waited two months, six weeks to
two months. And now things are really bad. And now people are acting. They're just being way too slow.
So, I think yes, proactive action can make a huge difference. And I think absolutely larger European countries and the United States can manage this
disease without having to lock down.
QUEST: Ashish, we know you're very busy man. I'm grateful that you're taking time to speak to us. Thank you, doctor. It's appreciated. After the
break, World Food hung up, it was inevitable that as the situation got worse, and poverty rose and people lost their jobs, but now the levels of
which hunger has reached and has gone deep into societies. It means that with this World Food Day takes on a completely different scale. After the
break.
(COMMERCIAL BREAK)
[15:41:27]
QUEST: According to the World Food Programme, the number of people who are now hungry and deep severe poverty and hunger has risen to more than 250
million, which means as the coronavirus continues to bite the situation gets ever worse, putting greater pressure on governments on how they
respond.
(BEGIN VIDEOTAPE)
ELENI GIOKOS, CNN CORRESPONDENT: I'm a (INAUDIBLE) in Johannesburg, and today we have families, children waiting for the weekly food parcel and it
basically includes staples, like cornmeal, the likes of oil, some soap as well as sanitizer. And this will last the family for a whole month. It
seems like this existed before COVID-19 and before the lockdown. According to Stat South Africa almost seven million people in the country went hungry
in 2017.
And then, of course, the lockdown exacerbated, an already dire situation with around two out of five adults losing their main source of income in
the month of May and June this year. Causing a devastating impact on households with half of families running out of money for food and of
course children were also under big pressure. The nutrition program that was feeding around 9.6 million children daily came to a standstill for a
few months.
Now we're emerging out of the lockdowns, economic activities resuming but assistance like this absolutely remains vital in South Africa.
PATRICK OPPMANN, CNN CORRESPONDENT: I'm Patrick Oppmann in Havana. And what you see here, a food line that goes on for blocks is now become a common
occurrence following the coronavirus outbreak. Cuba is certainly no stranger to shortages or scarcities. But now, everywhere you look all
across this island, there are lines that go on for hours sometimes just for one single item, people waiting in the hot sun for hours or more.
Often that item runs out before the line does. The Cuban government blames increase U.S. sanctions and the fact that there are not been any tourists,
hardly any tourists to Cuba for now, more than six months, they say that they're going to begin to reopen the economy. And that should help the
economic situation here. But no one expects these lines to disappear anytime soon.
ANNA STEWART, CNN REPORTER: I'm Anna Stewart in London. The pandemic has pushed people into poverty on an unprecedented scale here in the U.K. In
March there was an 81 percent increase in people needing help from food banks like this one according to the Trussell Trust charity, at the start
of the U.K. is locked down around half of those turning up for emergency food parcels had never needed help from one before.
Job losses, reduced hours and reduce pay have been detrimental, particularly to those who are already on low incomes. The number of people
on welfare support who do Universal Credit here in the U.K. has more than doubled this year. And it's expected to rise further. The government's
furlough scheme has ended, and the new replacement scheme is far less generous. Many feared that the U.K. could be on the brink of mass
unemployment.
The Trussell Tust charity says that 670,000 additional people could be classed as destitute by the end of this year, but the government doesn't do
more to support them.
(END VIDEOTAPE)
QUEST: Anna Stewart. World Expo was meant to take place in Dubai in this year. But of course COVID (INAUDIBLE) to that and now the authorities are
pushed into 2021.
[15:45:01]
QUEST: It will go ahead 190 countries are to take place and to take -- to become involved. And CNN's John Defterios has been taking a look.
(BEGIN VIDEO CLIP)
JOHN DEFTERIOS, CNN BUSINESS EMERGING MARKETS EDITOR: About a 40-minute drive south of downtown Dubai, a site that will be the center of a major
international event next year is taking shape. It's getting ready to host the First World Expo in the Arab world, attracting millions of visitors
over six months to witness the latest and innovation from around the globe.
CARLA SLIM, ECONOMIST, STANDARD CHARTERED BANK: A World Expo is a large exhibition that is public. And its objective is to be a meeting point for
the global community to share innovations and really contribute to the progress on international issues. Launching new ideas that can improve the
quality of the world population. They're of similar magnitude as the Olympic Games, and also the FIFA World Cup.
DEFTERIOS: The Expo 2020 site is vast. The size of more than 600 football fields. When it opens in October 2021. You will see more than 190 countries
coming together to showcase breakthroughs and future innovations across three broad themes.
AHMED AL KHATIB, CHIEF DEVELOPMENT AND DELIVERY OFFICER, EXPO 2020: The main theme of the Expo is connecting minds creating future. Our focus on
this Expo is three areas on the area of sustainability, mobility and opportunity.
DEFTERIOS: Delayed by a year because of COVID-19 work on the site is at an advanced stage with participating countries currently building their
pavilions and installing their exhibitions.
AL KHATIB: In terms of construction, we are at the very final stage. So, our target to finish everything by the end of this year in terms of
construction of the site.
DEFTERIOS: By hosting the event, Dubai is hoping for an economic windfall, stimulating a number of key sectors.
SLIM: During the six months in which the event is being held. We do expect to see a short-term boost to consumption, to domestic demand, specifically
in sectors such as retail trade, hospitality and housing.
DEFTERIOS: It's also hoped that Expo 2020 will leave a lasting economic legacy and further raise Dubai's international profile as a leading tourist
destination. John Defterios, CNN, Dubai.
(END VIDEOTAPE)
QUEST: And we will be on the road to Expo all the way until next year. When I went to Nairobi a couple years ago I was astounded by the growth of
digital money particularly M-PESA. After the break, the Safaricom CEO will be with us to talk about M-PESA and how Africa is taking advantage of the
surge of COVID to move to a digital economy.
(COMMERCIAL BREAK)
QUEST: A move to a cashless society has moved ever faster. With the onset of COVID more and more mobile money and digital money providers are doing
record business. And Safaricom in East Africa now says it now is controlling 50 percent of the market in that area. M-PESA. It's the mobile
money trailblazer which was created in 2007. There's also just savings and loans. 42 million people use it. I discovered M-PESA when I went to Nairobi
two years ago.
(BEGIN VIDEO CLIP)
QUEST: You take M-PESA?
UNIDENTIFIED FEMALE: Yes, take M-PESA.
QUEST: Yes. Of course, they do. M-PESA.
UNIDENTIFIED MALE: M-PESA. We can accept.
QUEST: Hah. Now this is the real test. Can I buy newspapers using M-PESA?
(END VIDEO CLIP)
QUEST: The CEO of Safaricom is Peter Ndegwa, he joins me now. Good to talk to you, sir. I appreciate it. And you -- I see in the latest number.
PETER NDEGWA, CHIEF EXECUTIVE OFFICER, SAFARICOM: Thank you, Richard.
QUEST: Safaricom, you now -- you now control 50 percent of remittances back into the country. And as we look at the growth of M-PESA and other digital
economies, what is your hope for next?
NDEGWA: Thank you, Richard, for having me on this program. Yes, you're right. And it's good that you've come to Nairobi because sometimes the
story of M-PESA is unbelievable for those who have not been in this country. So yes, we do control slightly more than 50 percent of the
international money transfers into the country. But the bigger story is what M-PESA is to the population in the -- in this country.
We have about 26 million customers in Kenya. And you're right, we have 42 million, including the rest of the region. We undertake about 21 million
transactions daily. And it is becoming the universal payment platform. You can pay -- you can use M-PESA to pay anything from -- yeah.
QUEST: Right. So, M-PESA is there but -- and it's obviously had a great increase as a result of COVID in the sense that people don't want to touch
money. It's a much more simple solution to it. How do you see it now developing? If you are the largest on the block, what do you do next?
NDEGWA: So, we plan to take it to a new level, Richard, So, on the individual side, we want to expand what we are able to do with M-PESA. We
already providing credit, we launched a credit product called Fuliza last year, which is now 1.8 billion so far in 11 months. We want to take it to a
new level. We want to go into new products. And we also see a big opportunity for SMEs. We know that SMEs have been affected significantly by
COVID prices as they come back to life after COVID.
We want to support SMEs. So, SMEs control 40 percent of their economic activity and employ 80 percent in Kenya. We want to be two empire SMEs to
do their business better.
QUEST: Right. Is there a danger that is COVID, a real danger COVID so impoverishes and so basically destroys large parts of the economy, that it
puts the clock back, that actually parts of Africa will take many, many more years to recover from this? Financially, economically and of course,
health wise.
NDEGWA: Richard, the COVID crisis is much more about socio economic crisis as you say. But as a health crisis, actually, we've been able to manage the
health effect much better. I do believe that we need to support SMEs because most people, 80 percent of their employment in Kenya and across
Sub-Saharan Africa comes from SMEs.
[15:55:00]
NDEGWA: That's why we are really wanting to empower SMEs using M-PESA. And also, through digital services so that we can bring them back. We have
partnering with the government but also other partners across the -- including bank to support them to come back into the country.
QUEST: Peter, it is good to have you on the program on QUEST MEANS BUSINESS tonight. I'm grateful you're taking time. Thank you, sir, for joining us.
And we --
NDEGWA: Thank you, Richard.
(CROSSTALK)
QUEST: -- profitable moment after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's profitable moment. This is the last QUEST MEANS BUSINESS for a few weeks. We decided that so much is happening in the United States
with its Supreme Court or of course, as we get clever, ever closer to the election, as well as international events and the markets that we would let
our colleague Jake Tapper take over in the afternoon at this time just until the election.
So, give you the best, most detailed and the largest account of what's happening in the most important race, election race taking place at the
moment. Well, I'll be during the next three weeks, I'll be on my travels, not on holiday, world of wonder going off to Dubai. And then from Dubai.
Well, we'll be out far East, and then across to Turkey. So, if you see me on the way, stop, wave, socially distance of course, say hello.
And if we happen to meet up at an airport or somewhere on route where we can have a socially distance a cup of tea, you get the idea. These are
going to be tumultuous weeks when perhaps economics and financial ease take back seats to what's happening in politics and the healthcare. And that's
why we're pretty confident that you'll stay with us at this time for the good coverage and the detailed questioning of "THE LEAD."
For me, I'll see you after the election and as always, I wish you well, good health and say whatever you're up to in the weeks ahead I hope it's
profitable. "THE LEAD" with Jake Tapper is next. The market (INAUDIBLE)
(COMMERCIAL BREAK)
ANNOUNCER: This is CNN Breaking News.
JAKE TAPPER, CNN HOST: Welcome to our second hour of THE LEAD. I'm Jake Tapper. We're continuing this hour with the 2020 lead. We are waiting for
Joe Biden to speak any moment in Michigan as President Trump is on a rally spree in the final 18-day stretch of the presidential race with more than
20 million ballots already cast in this election.
END
