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Quest Means Business

Dow Crosses 30,000 For The First Time, Welcoming Biden Transition; Europe Eases Coronavirus Restrictions; Quiet Holiday Season Deals Major Blow To U.S. Hotels; Africa Transported By Better Technology Logistics; Janet Yellen For Treasury Secretary, A Choice Applauded; Biden Introduces New Face Of Government In Foreign Policy And National Security. Aired 3-4p ET

Aired November 24, 2020 - 15:00   ET

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

[15:00:42]

RICHARD QUEST, CNN INTERNATIONAL HOST: And it's our day on Wall Street as the Dow goes through -- it just doesn't go through -- it powers through

30,000 with a gain of 1.5 percent of 440 points. A record on the Dow at 30,030 so far. We have got 60 minutes left to trade. This is what's

happened.

The Dow smashes through 30,000.

Donald Trump has cleared the way for the presidential transition to Joe Biden. The president-elect is adding familiar faces to his administration

which includes Janet Yellen as first female Treasury Secretary.

And the pandemic is costing airlines more than $150 billion. The CEO of KLM Royal Dutch Airlines with us live on this program.

We are live. We are in New York on Tuesday, November 24th. I'm Richard Quest, and of course, I mean business.

Good evening. Tonight, Wall Street welcomes in the Biden era and it does so with a resolutely strong bullish run. Up 1.5 percent taking the Dow above

30,000 for the first time ever. Now, you'll remember, of course, at its lowest point, it was down 19,000 during the worst back in March of this

year.

So, the cause of the rally is a rare dose of certainty from the White House. President Trump has finally allowed the transition to his successor

to begin and Joe Biden has been going ahead with key Cabinet picks.

Investors relieved to see Janet Yellen, the former Fed Chair is tapped to lead the Treasury. She'll lean on her experience to try to push through a

much needed stimulus deal.

Finally, the global economy is pinning its hope on encouraging data from several COVID-19 vaccines. There is one man who waited a long time for a

30,000 milestone. It is Peter Tuchman. He joins us -- hey, Peter. It's good to see you. We last --

PETER TUCHMAN, FLOOR BROKER, QUATTRO M SECURITIES: This hat is for you, Richard.

QUEST: We last spoke on March 9th, which funny enough was my birthday. Much has happened since then. So of all the factors, Peter that's led no this

latest bullish run. Which is it? Is it Biden's picks? Is it vaccines? Is it Trump transition? Which is it?

TUCHMAN: I really think you talked about it -- it is the relief that investors have that we are now formally going through a transition. Right?

Obviously, the individuals Mr. Biden are picking are familiar faces. They actually happen to be professionals in the Cabinet positions they are

taking, which is not something Mr. Trump felt was necessary, that has sort of given us a relief and comfort.

I think that the market is relieved the election is over. Obviously, we have had days that were more positive about the vaccine and whatnot. We

have got the vaccine. We've got the virus. We have got volatility.

All things that are contributing to the up and down motion of the market, but net-net market feels strong.

QUEST: The market is strong and I'm thinking if the vaccine, let's say with the next three or four months are very choppy, but long term investors

recognizing that a change is going to happen roughly mid next year, isn't it, as things get more back to normal.

TUCKMAN: You know what, Richard, I'm not clear. Look, obviously, we need leadership. We need a plan. We need the consumer to be healthy again.

Before that happens, the market is going to do what it's going to do. It will be up some days, it will be down some days.

This is a relief rally on the fact that we do have a transition. I'm hopeful that the vaccine will be something that will bring us back to some

level of normalcy, but I believe it is going to take a while.

The economy, as Chairman Powell mentioned the other day, the economy is never going to look the way it did again. What's it going to look like on

the other side of this? It's all brand new, right?

So, there is a lot of moving parts in this situation. Obviously, there is such a relief that we have some leadership in the White House at the

moment. Hopefully, he has plan that will get us healthy once again. And as we saw on February 12th, Richard, and I'm sure we spoke at some point

around that time when the markets hit their record high, one of the reasons was that the consumer was healthy.

[15:05:25]

TUCKMAN: The balance sheet of the banks was robust. Unemployment was at a good level and all those things contributed to the rally we had at that

time. Obviously, we are going to take -- it is going to take a while to get back to that robust, healthy consumer and that's our hope.

QUEST: Peter, I can't even begin to tell you how good it is to see you there and to see you and to have you back. It really gladdens my heart.

How are you in? I know you obviously had the virus, as did I, but how are you in?

TUCKMAN: You know what? I'm well. I am fighting a good fight. The virus really did take a lot of the steam out of my engine, and then I had further

long COVID symptoms that cost me to have a complete rebuild of my cervical spine, but you know what, Richard, as are you, you're a fighter, right?

Happy birthday to you from then, happy on your new union.

We're so happy to -- for me to see you now brings me such joy. It really does. It's been a long time.

QUEST: Likewise, Peter. Thank you, my good friend. Peter Tuckman joining me from the stock exchange.

TUCKMAN: Thirty thousand, let's go. Stay healthy.

QUEST: We're going to get there today. We are going to get there today, 30,000 on the Dow.

As CEOs have been among the loudest voices calling for a smooth transition pointing to the all pressing crisis weighing on the economy. Tim Ryan co-

signed the letter from more than 160 business leaders urging the Trump White House to concede.

Chairman of PwC joins me now. Good to see you as well, sir. It really -- it is just -- let's take a second to say it's good to see everybody and to

actually reflect that we're moving forward not backwards. There is a feeling today, isn't there, that things are moving forward. Not out of the

woods, but better than they were and a hell of a lot better than they could have been.

TIM RYAN, U.S. CHAIRMAN, PWC: Yes, Richard, it's good to see you and thank you for having me today. Without a doubt, there is a sense that the economy

and the country is moving forward. You mentioned earlier, we have got a vaccine. You have got some confidence in transition and you have got

overall still companies are holding up, and consumers are not withstanding some challenges feels pretty good as well. So, overall there's a sense of

moving forward.

QUEST: Now, let's strip away then the bon ami and let's dig underneath. Is it -- Peter was talking about the importance of the consumer and the

importance of businesses being able to get on with it.

We don't have an idea of how damaged that fundamental engine of the economy is. What is your gut feeling talking to your clients?

RYAN: You know, without a doubt, what is really interesting is CEOs feel good about their businesses, but they are worried about the economy. So

just think about that. They feel good about what they have been able to do in terms of controlling cost, driving new revenue channels, innovating and

transforming, but the overwhelming CEOs that were surveyed and we talked to believe the economy needs another boost of stimulus and that is primarily

to make sure the consumers stay strong and resilient, which is really the big concern particularly when you think about how hard hit small businesses

have been, which is a huge employment engine of our country.

So that clearly is one of the biggest concerns that we have out there right now. That's why overwhelming, regardless of where people sit, there is a

sense that we need another stimulus with some of the appointments that were made yesterday, the hope is we get that soon.

QUEST: Right, but the problem is of course that a stimulus was needed at the beginning of October, and it never came before the election. And there

are various deadlines such as evictions that will be coming when various rent restrictions come off and a variety of very detailed rule come to an

end. What's your fear?

RYAN: The fear is that we leave people behind. What is really important as we speak with CEOs, there is a great sense this is the time for business to

make sure we step up and take care of our people whether that be our workers community or whatnot.

The fear is that, we leave a tremendous part of the population behind as this pandemic goes on, which is why you mentioned some of these looming

deadlines that we have whether they be unemployment checks running out now that that stimulus has run out. There is a real concern that if we don't

get them out, we then are going to stall the good momentum that we have and that without a doubt is a big fear.

The other element is that certain parts of the economy when you think of manufacturing, there is actually shortage of workers in other parts of the

economy, small businesses, retail, restaurants and others. You've got unemployment going up and the question is how do we get the people skilled,

retrained to jobs they can thrive in where we actually have shortages.

[15:10:07]

QUEST: Tim, finally, these are my -- this is my word not yours, but take them as you will. There's a perversion with a stock market at record levels

over 30,000 on the Dow when the economy is in such dreadful condition and people are truly hurting, food lines, food banks, you know what I'm saying.

It's very hard to tell people to believe in capitalism when so many are hurting and the market is so strong.

RYAN: Without a doubt, Richard. I think one of things that we're hearing among the community is this is a time to make sure we understand that there

are many people out there hurting. It's one of the reasons we're seeing businesses lean in as much as they are and it's an opportunity for all of

us to continue to lean in.

When you think about getting back to the community, when you think about job creation and investing in education and making sure we're sharing the

benefits that companies are realizing we have gone through successful transformation and making sure you're sharing that because there is clearly

a dichotomy out there where one of the big opportunities that exist is how do we pull everybody along. Capitalism and making sure we're driving the

right purpose, we believe the in a more adherent CEO and community, that's both. It is not one or the other.

It is both going together and when you're taking care of the communities, taking care of workers, they can get results. We cannot forget that. That

is incredibly important particularly at a time like this. We realize there are a lot of people out there hurting right now.

QUEST: Tim Ryan, the head of PwC U.S.A. Thank you, sir. I appreciate it.

RYAN: Thank you.

QUEST: It is QUEST MEANS BUSINESS and we do have a grim new data from IATA, that's the aviation organization, well, you know that of course -- on the

price airlines are paying for the pandemic. The CEO of KLM in a moment, Pieter Elbers is on. What it would take to get passengers and planes moving

again. Good to have you this evening.

(COMMERCIAL BREAK)

QUEST: Europe showing early signs of recovery after a devastating winter COVID surge. France will start easing its lockdown this weekend, the

President, Emmanuel Macron announced on Tuesday, whilst Germany is working on allowing small groups to celebrate the Holidays together and England is

ending its nationwide lockdown next Wednesday, also reducing the quarantine period for international travelers from 14 days to five days, if you so-

called test out. You take a test after five days and if it's negative you can end your quarantine. It's rare bit of good news for airlines on account

of the pandemic's rising cost.

IATA, which of course is the industry body -- says aviation is set $157 billion this year and next. It's the biggest shock, of course, since World

War II.

Joining me now is KLM's chief executive, Pieter Elbers. He is with me from Amsterdam.

[15:15:23]

QUEST: Pieter, it is good to see you, sir. I'm just so sorry we weren't all able to be in Amsterdam for the IATA Annual General Meeting and Summit as

we normally would. But the event went ahead and you're facing formidable challenges trying to rebuild the industry.

PIETER ELBERS, CEO, KLM: Yes, sorry not having you here in Amsterdam, Richard and in fact, not having the entire aviation industry. We had today

the first virtual AGM taking place which just underpins the importance of being together. We did it virtual, but I really hope next year we are going

to be live again together.

QUEST: Now, let's listen to what Alan Joyce, leading IATA member said. Let's listen to what he says about obviously, we all accept that quarantine

is not a good idea, so the future is vaccination. Listen to Alan and then we'll talk after.

(BEGIN VIDEO CLIP)

ALAN JOYCE, CEO, QANTAS: We are looking at changing our terms and conditions to say for international travelers that we will ask people to

have a vaccination before they can get on the aircraft. Whether you need that domestically, we'll have to see what happens with COVID-19 and the

market. But certainly for international investors coming out and people leaving the country, we think that's a necessity.

(END VIDEO CLIP)

QUEST: How far along are you going to before you require an international vaccination before you will accept passengers on international flights?

ELBERS: Well, the fact that we do have some good news in the last two weeks on vaccines is very encouraging for our industry, and in fact, we could see

back at some sort of hope and glimpse of hope for the industry going forward.

From my view, it is a little premature today to decide precisely who and when we should be vaccinating. I think governments are still deciding what

is going to be the exact follow sequence procedures and so on and so forth.

But again, having the vaccine in place is going to be a very big step forward for our industry.

QUEST: Is the future essentially either you've had a test or you have a vaccine certificate and the logistics really, Pieter, is how you gain the

integrity of the system, isn't it, so that the vaccination certificate is lodged somewhere, the tests are lodged -- the whole common pass or travel

pass issue.

How far can we go with this, do you think?

ELBERS: Well it's going to take some time. I think this COVID-19 pandemic has demonstrated how difficult it is to have a uniformed and unified and

harmonized set of rules or measures all over the world, and after nine months, in fact, we're still dealing with different rules and different

regulations country by country.

I think even with the vaccines, we will be dealing with some sort of different rules and regulations. But again here, what's important is that

we restore the confidence of our consumers, the travelers and the combination of vaccination and testing really would help us to move

forward.

QUEST: Do we have a level playing field in aviation? When I look now at some airlines like your own and Air France, your sister company that got

billions from your various governments in forms of loans and grants. Lufthansa, the same. The state owned carriers of the Gulf and then you've

got those like Air Canada that will happily tell you, they didn't receive a penny from the government -- or well, I am happy to tell you, they didn't a

receive a penny from the government or IAG or British Airways and the like.

Have we got a level playing field for a competitive environment in a post- COVID airline world?

ELBERS: Well, obviously, the COVID situation has completely turned upside down the entire industry and every country trying to deal in the best

possible way with it. I think within Europe, the level one playing field is being ensured by the fact that the European Commission has defined a set of

rules and a framework in which such support from government by means of loans and guarantees should be matching in.

So that framework should eventually guarantee that level playing field. Having said that, we can see that a lot of different rules and measures are

taking country by country and with that, it's sometimes very difficult to compare exactly what is being done where and what is the final impact on

it.

But then if you see the staggering losses of the industry, it's obvious that the industry needs support to overcome this devastating impact of

COVID-19.

QUEST: Pieter, finally, and so Willie Walsh is to be the next head of IATA, assuming it's been passed and he will take over in March. Brave IATA. I

mean, what are you expecting and hoping from Willie Walsh?

[15:20:06]

ELBERS: Well, at KLM Royal Dutch Airlines, and me personally working there for the last 30 years, I've been competing with willie for the last 30

years and I look forward to work now together with him in IATA.

I mean, more seriously, IATA has done a great job under the leadership of Alexandre de Juniac, a lot of great work has been done in the past few

years and more recently with the dealing with the COVID-19. I think the task for IATA going forward is even bigger with pushing for further

harmonization and making sure that the airline industry will not only survive this, but also recover and reshape in a better way, building back

better the industry going forward.

I think that is going to be the big task on Willie's shoulders and the IATA Board of Governors. We will be happy to support him with that.

QUEST: Not as a competitor, but as a compatriot. Pieter Elbers, again, apologies we weren't able to be with you, of course, to enjoy your

hospitality in Amsterdam, but we look forward to that in future. Thank you, sir.

Now, Holiday travelers usually bring a festive air to hotels at this time of year. Their absence this season is painful. U.S. travel spending is set

to fall 45 percent, and Craig Group say two out of three hotels will need U.S. congressional aid to survive.

Vanessa Yurkevich is looking at the consequences.

(BEGIN VIDEOTAPE)

VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT (voice- over): Jesus Morales looks forward to the bustle of the holidays at Chicago's

historic Drake Hotel. Customer demands and long hours are tiring, but financially rewarding.

JESUS MORALES, FURLOUGHED SERVER: Last year, I was making good money, but it's gone. I don't know where I'm going back to work.

YURKEVICH (voice-over): This year, there's no holiday bonus. Morales worked here for 33 years, but was furloughed in March.

The Drake is one of Chicago's top hotels, where highly trained employees serve an elite clientele. But this year there are very few of both.

MORALES: My savings is gone, my under-the-pillow money is gone.

YURKEVICH (voice-over): The hotel industry has lost more than 650,000 jobs during the pandemic. Four in 10 hotel workers, like Morales, are still out

of work. These last few months have been taxing emotionally and financially. His daughter is recovering from an accident, and his wife

needs daily medication.

MORALES: I don't have health insurance right now. My insurance ran out like a month ago. To get my insurance, it costs about $1,200.00 a month and

there's just no way I can pay that.

YURKEVICH (voice-over): In New York, iconic hotels are shutting their doors. The Plaza is temporarily closed, the Roosevelt permanently and the

Fitzpatrick Grand Central hotel is running at 15 percent occupancy. Its sister hotel is shuttered.

YURKEVICH (on camera): What is it like to be sitting in your closed hotel right now?

JOHN FITZPATRICK, OWNER, FITZPATRICK HOTELS NORTH AMERICA: It's fairly eerie. It is costing a lot of money to stay closed, and every month it's

just drain, drain, drain. It's just in your blood as a hotelier, you never close your front door.

YURKEVICH (voice-over): Just 25 of John Fitzpatrick's 175 employees are working. Bilal Yayla was recently called back to bartend, but he says

without regular tips his income has dropped by more than 50 percent.

BILAL YAYLA, BARTENDER, FITZPATRICK GRAND CENTRAL HOTEL: I was out of work for almost three months, also we lost our insurance. And I have two babies

at home.

YURKEVICH (voice-over): In Miami, Jenny Brody has won awards as an elite concierge at the St. Regis Bal Harbour. But she and her husband were both

furloughed from their hotel jobs in March. He found a temporary job in October, she's still looking.

JENNY BRODY, FURLOUGHED CONCIERGE: You just kind of go into panic mode, like, did we save enough for this rainy day, so to speak? But really, 2020

has become a rainy year.

YURKEVICH (voice-over): At the end of this year, dozens of Federal protections for those out of work expire. For millions of Americans like

Morales, it's not the New Year he was expecting.

MORALES: Since I was 17, I've been working at least two jobs until now. So I've been paying taxes for 46 years, trying to be the best citizen of the

United States as you can. And it's just tough, it's just frustrating that the government is not doing much for the hardworking people.

(END VIDEOTAPE)

QUEST: So there you have the story. We heard from the airlines as the hotels. Well, of course, you have to see something when you finally get to

where you're going. The tourist numbers are dropping, major UNESCO World Heritage sites are suffering big financial losses.

More than one in four countries have closed sites totally. You see that on the map. It's that colored red. Those in light blue are partially closed.

Audrey Azoulay is the UNESCO Director General, joins me now from Paris. Good to see you, ma'am. Thank you.

I guess the issue here is what's the problem? Because over a period of time clearly these sites will reopen when visitor numbers come back. Since many

of these sites have been around hundreds, if not thousands of years, what's the issue?

[14:25:14]

AUDREY AZOULAY, DIRECTOR GENERAL, UNESCO: Well, at the height of the first wave of the pandemic, nearly 90 percent of those World Heritage sites were

closed and of course, you can imagine the impact for the people who live by organizing the visits, the tourism, the airlines. So there is first a shock

which is an economic shock.

But also, the fact that you cannot visit the sites, you cannot connect to this heritage is a problem for many people. That's why we have tried to

support organizing as well virtual visits of those World Heritage sites. But we have also taken this opportunity to engage reflection, a better more

important reflection on sustainable tourism because we have all seen the images of Venice without the millions of visitors or Angkor temple in

Cambodia without the tourists.

And it is also I think, a moment for us to think how we can better organize the visits of this world heritage site that we have to protect, to preserve

and to transmit to the next generations.

QUEST: So, the problem of course is, and I'm thinking back to those pictures we saw of smog and pollution. During the worse of the pandemic, it

all went away and now, a lot of it has come straight back again. If I apply the same principle to these Word Heritage sites, I don't know that there is

an easy or straightforward solution to sustainable tourism at these venues.

AZOULAY: There are ways, and actually, there are very interesting experiences already taking place around the world even before the pandemic

where sites that were over crowded were really at risk, not only the visit was not always nice for the visitors because there were so many people, but

there were risks as well for the protection and preservation of those sites.

And for instance, there have been measures of limitation of the number of visitors when you buy tickets that have a special time limit or you're

organized better, you prevent better. There are also things to do around that in order to have more sustainable tourism.

QUEST: Good to have you with us, Audrey, I appreciate you coming on tonight's program. Thank you, ma'am. Nice to see you.

Now, still ahead, Joe Biden says America is back and ready the lead the world once again. We'll have more on the President-elect's new Cabinet

nominees and how they could help reshape U.S. policy.

(COMMERCIAL BREAK)

[15:31:01]

QUEST: ...Quest (ph). There's a lot more QUEST MEANS BUSINESS as we continue together.

Joe Biden picks Janet Yellen to lead the U.S. Treasury. I'll speak to a former Obama advisor who says Yellen's exactly the right person to lead the

post-pandemic recovery.

And the long road to 30,000. The Dow has broken records in the midst of the economic crisis. Some say it's perverse, others say it's a sign of more

good times to come.

Whatever it is, before all of that, this is CNN. And on this network, the facts always come first.

The U.S. state of Pennsylvania has certified its election results earlier, confirming a victory for President Elect Joe Biden.

Several long shot attempts by the Trump campaign to overturn the votes there ended in failure.

Joe Biden kicked off his campaign in Philadelphia last May. He correctly predicted his adopted home state would deliver him the White House.

President Trump still has not conceded the election but he did take time today to pardon a turkey at the White House, an annual pre-Thanksgiving

tradition. Mr. Trump spared a bird named "Corn" from the dinner table however he took no questions at the event.

French lawmakers have approved a controversial new security law. It aims to make it a crime to publish images of off -- of on-duty police officers with

intent to cause them harm.

Thousands have rallied against the bill this weekend. Critics say it will make it harder to report policy brutality. The measure now goes to the

senate.

Joe Biden's wasting no time after getting the green light to officially begin his transition. He introduced the new face of his incoming government

-- at least the national security and foreign policy side a short time ago.

The president elect presented six key nominees including secretary of state, top national security officials.

Biden says the United States will reassert its historic role as a global leader.

(BEGIN VIDEO CLIP)

JOE BIDEN (D), PRESIDENT-ELECT OF THE UNITED STATES: It's a team that reflects the fact that America is back. The team meets this moment, this

team behind me.

They embody my core belief that America is strongest when it works with its allies.

Collectively, this team has secured some of the most defining national security and diplomatic achievements in recent memory made possible through

decades of experience working with our partners.

(END VIDEO CLIP)

QUEST: The sober tone reflecting the seriousness of the challenges ahead.

A contrast to how Donald Trump rolled out some of his potential cabinet picks four years ago.

You remember this reality TV star moment with Mitt Romney at a Trump-owned golf resort in New Jersey.

Romney was auditioning for secretary of state and the public was left hanging. Ultimately, of course, Romney didn't make the cut.

Now Jeff Zeleny is in Wilmington, Delaware following this event.

All right, Jeff. It's very different. It is designed, as you and I said yesterday, to court stability and all that goes with that. But there'll be

those people who say yes, same people back again.

JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT: Sure, it was a set of familiar faces in largely different roles, largely elevated roles.

But the point is, that's exactly the point that the Biden team was trying to make. That look, these are people who have deep experience in the

government.

It will be, of course, a challenge for the president-elect to try and find some new folks but that was not the mission today.

We are three weeks after election day exactly. And for him to be rolling out these cabinet officials -- we're sort of getting the first whiff of the

Biden doctrine, if you will, and it is simply America's back.

They said it over and over, Richard. I was standing in the room there, sitting in the room, and that was just a central theme.

Never mind what's happened the last four years, we're going to be here to try and repair some of these alliances, try and rebuild some of these

strategic cooperations.

[15:35:00]

That's not going be easy, of course. But that was clearly the point in these announcements and announcements we're going to see for the economic

team next week as well when Janet Yellen is announced.

So that is something the Biden team is embracing. The old ideas, they believe, are some bit of Xanax, if you will, for a jittery nation and

perhaps world as well.

QUEST: Good way of putting it. But the issue, of course, is does it matter, Jeff, if the president, the current president, sitting president, never

actually says I concede? Does it matter if he never -- he may turn up at the inauguration, he may do all of that but does it matter if he never

actually says to Biden, "You won"?

ZELENY: Richard, I think it only matters to his legacy. I think it matters only to how he is viewed, I do not think it matters to the process for what

President Elect Biden is trying to do or how this world is watching.

Of course, I think for the annals of history, it would be better for everyone involved for there to be some semblance of peaceful transition.

That's what history has dictated from winning presidents to losing presidents, that is just how it goes.

But no, I don't think it necessarily matters. What I was struck by in all of the announcements of this new team and all of the talking about the way

forward not one single mention of President Trump's name.

And perhaps that that is something that will drive this president batty the most, that he is slowly recessing from view here. Yes, he can call these

quick press conferences without taking questions but those days are soon to be numbered.

So for this team, they're not mentioning him. And I do not know that it matters actually, if he concedes.

So Joe Biden certainly is not expecting it and we'll see if it happens or not. But it's largely irrelevant at this point, I think.

QUEST: Jeff, always good to have you and your interpretations. Thank you, sir. I appreciate it.

Now Joe Biden's chosen former Fed Chair Janet Yellen, as you know, to lead the treasury. And it speaks to the president-elect's faith in institutions.

He's trusting her experience will help America overcome an historic economic crisis. And for good reason, it's trust born on activity and

faith.

Yellen chaired the counsel of economic advisers under Bill Clinton. She helped steer the U.S. out of the financial crisis as the first female chair

of the Federal Reserve.

And if confirmed, more history, the first woman to lead the U.S. Treasury.

Janet Yellen will have a long list of problems on her desk starting on day one. Congress is still deadlocked over a stimulus bill and getting that

over the line was probably going to be her first priority.

A surging pandemic adds to the urgency. One model from Washington University predicts U.S. cases will double by inauguration day.

And the growing health crisis -- as some economists are warning of double dips on the horizon.

Christina Romer worked closely with Janet Yellen as President Obama's top economist. She's now professor of economics at U.C. Berkeley.

Christina, it is good -- it's wonderful to have you. Thank you for taking time to speak to us today.

Look, forgive my first question is not to praise Janet Yellen. There is an enormous amount of people -- number of people doing that.

Instead, I want to know does she have the political nous -- all of her roles have been either in economics or at the Fed where your cloistered and

it's a rarefied atmosphere. Treasury secretary is down in the mud doing deals.

CHRISTINA ROMER, FMR. CHIEF COUNCIL OF ECONOMICS ADVISERS UNDER PRESIDENT OBAMA: I think she absolutely does.

So first, let's talk about the Fed. So as chair, you've got to get your votes in line and she's done a magnificent job of taking a lot of disparate

points of view and just coming up to really good outcomes.

So she is good at working within an organization and a big part of her job's going to be working within the administration. But she's got great

relationships with people in the senate, in the house.

It's actually striking the degree to which a number of Republican senators will say, I don't always agree with her but I trust her.

And I think that's going to be the most important thing as we try to forge some more fiscal action which, as got it absolutely right, that's got to be

her first action on day one, is to try to get movement there.

QUEST: Now you know -- as this picture shows, you know the former Fed chair well and you've known her for many years.

You know the good part about her strengths. Where do you think she's going to find it difficult? What part do you think will be the challenge for her?

Look, she'll rise to the occasion but what will be the challenge?

[15:40:00]

ROMER: Well, it's just simply the situation. Imagine coming in as treasury secretary in the middle of pandemic without a congress -- or at least

without a senate of your own party, all right, that could be just -- that is a challenge for absolutely anybody.

So I don't think anybody will be starting at a harder point in time. So that's got to be the main thing.

But I think she has a good relationship with -- obviously the existing Fed chair Jerome Powell, but with the people in the Biden orbit. I can

certainly see her having a real mind meld with many of them and with the president-elect.

QUEST: Was Janet Yellen very bitter not to get a second term?

ROMER: I'm not going to go into personal conversations but of course it has to be a disappointment.

QUEST: Right.

ROMER: I know on her behalf I was unbelievably disappointed that someone could do such a good job and be denied a second term. That is really not

what most presidents have done and not what this president should have done when her term came up.

QUEST: You look at the team that is being assembled. Let's just take John Kerry who I'm sure you know and you knew.

Senator, secretary of state, war hero and then goes onto -- just when the rest of us would be thinking about putting our feet up, he becomes climate

envoy as the U.S. has to restore leaving the Paris Accord.

Janet Yellen, again -- just when anybody else might be thinking well, I think I'll have a cup of tea and a rest, takes on this monumental task.

ROMER: Oh, well, look at Joe Biden. Right? He also said --

QUEST: Good point, good point.

ROMER: -- the soul of the nation was at stake and I'm going to step up. So no, it's a whole group of people who --

QUEST: Right.

ROMER: I think this is one of the biggest strengths of Janet is she not motivated by wanting power or prestige, she's motivated because she cares.

QUEST: Right.

ROMER: And she'll step out of her --

QUEST: Right.

ROMER: -- what must have been much more comfortable than -- and become treasury secretary.

QUEST: Let's just look, though, Christina -- finally. If we look at the market today, we're over over 30,000 on the Dow which is a good thing in a

sort of an abstract sense.

Except is it? This market has been pumped by the Fed, for good reason -- don't get me wrong, I'm not criticizing from that.

But at some point that has to A., reverse and B., at some point, the market needs to reflect the economic reality of what we're facing. Or maybe not.

ROMER: Yes. Ultimately, it does need to reflect economic reality and I think today part of what we're seeing is just this sense of relief that we

do have a new administration coming in whose defining feature is competency and concern with things like people's lives and the economy.

So I think that's the main thing. And I think that, once we get the economy back, of course it will be time to normalize monetary policy, all of those

things.

By the way, something that Janet Yellen was a big part of that initial normalization --

QUEST: Yes.

ROMER -- following the 2008 crisis. She handled it such grace we hardly even knew it was happening. So there's no question that those things will

happen but we got to get this economy healed first.

QUEST: I have a minor request. Please come back again as the economy gets - - as we go into next year and the new government, please come back again.

Christina, it's lovely to have you on the program. I appreciate it.

ROMER: Lovely to be with you.

QUEST: Thank you. Now we'll take a break. It's QUEST MEANS BUSINESS. Market closes in just about 20 minutes from now. And it's up dramatically (ph).

(COMMERCIAL BREAK)

[15:45:00]

QUEST: A special report now from our new series, "Connecting Africa," where we'll profile the people, the projects and the companies that are

revolutionizing African business.

Eleni Giokis met an award-winning logistics company that cargo owners become more efficient which, in turn, lowers the cost of goods.

(BEGIN VIDEOTAPE)

JEAN CLAUDE HOMAWOO, FOUNDER LORI SYSTEMS: When you have an efficient logistics, that additional cost ends up in the cost of the goods that

you're purchasing.

So the reason for Lori is to bring more efficiency so that we can lower the cost of goods and make our countries more competitive and goods more

affordable.

ELENI GIOKIS, CNN REPORTER: Jean Claude Homawoo and his team raised more than $20 million in 2016 to launch Lori Systems, described as the Uber of

trucks.

HOMAWOO: I would say what distinguishes LORI most is its technology. Which is a modular, cloud-based platform of applications, multiple applications

that are interconnected.

So in the logistics process you have cargo owners, you have transporters but you also have clerks on the ground.

And in order for logistics to be efficient, all of parties have to be able to communicate in real time, which allows the cargo to move quicker.

BHUPINDER DHILLON, DIRECTOR, DHILLON TRANSPORTERS: Before Lori Systems came into the market everything was handwritten whereas today everything is

online. We've saved a lot of time and money.

HOMAWOO: We've taken a different approach in every region taking the time to customize and custom design software for the continent.

So whereas in East Africa we were focused on bulk cargo, in West Africa we focus much more on fast-moving consumer goods, so finished goods.

GIOKOS: Nile Agro Industries Ltd is a typical cargo owner using the platform in East Africa.

BAGANZI FRANCIS, GROUP CORPORATE MANAGER, NILE AGRO INDUSTRIES, LTD: When the truck leaves Mombasa, you are able to track your timings so your

customers are aware of when you will be in the market, when the products will be in the market. And that has really helped us a lot.

GIOKOS: The company started using Lori Systems to export flour beyond the local market to South Sudan.

HOMAWOO: In order for two countries to feel comfortable with the movement of goods, more information, more transparency, more visibility is going to

be needed.

And that is precisely what our platform brings.

(END VIDEOTAPE)

QUEST: When we come back after a year of ups and downs, the Dow is making history. We'll have the closing numbers after this.

(COMMERCIAL BREAK)

[15:50:00]

QUEST: Wall Street celebrating a milestone this afternoon. It crossed 30,000 for the first time in history. And now it's at 30,014.

If we look at how it soared back from the steep decline at the start of the pandemic. The market is being fueled by positive vaccine news and optimism

over the incoming Biden administration.

But to hear from the current president, the record highs are all thanks to him.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: And I just want to congratulate all the people within the administration that work so hard.

And most importantly I want to congratulate the people of our country because there are no people like you. Thank you very much, everybody. Thank

you.

MULTIPLE SPEAKERS: (Inaudible).

UNIDENTIFIED SPEAKER: Mr. President, are you --

(END VIDEO CLIP)

QUEST: Now our lead business writer for CNN Business is Matt Egan, he's with me now.

Matt, there are 1,001 reasons why the market has roared up. Which do you find most appealing today?

MATT EGAN, CNN SENIOR WRITER: Today it's really about the fact that the transition to the Biden era is finally going to begin.

Which is why President Trump's comments taking a victory lap for Dow 30,000 seem a little misplaced to me.

Last night the Biden Administration -- I'm sorry, the Trump Administration finally gave the approval to do funding and give access to the Biden team

and that means that this formal transition can finally begin.

I think that has eased some concern on Wall Street about whether or not there would be this smooth transfer of power. It's not really about

anything else other than that today.

But, as you know, Richard, the bigger move is really about optimism on the vaccine front.

The fact that we have not one but two vaccines that are believed to be more than 90 percent effective against coronavirus, that is really good news.

And that has led to some confidence about what the economy will look like in 2021.

QUEST: Except, Matt, what do we do between now and then? Does this -- this market is at record highs; does it trade sideways, does it -- on a P/E

basis, if we start to get results from companies, they're not going to be that good in Q4 and certainly not in Q1 next year.

So how much of this market is a reflection of forward earnings?

EGAN: Right. So Rich, I think you raise a really good point because some of this optimism is already being built in.

If you look at some of the back to normal stocks, companies like MGM Resort and Marriott, Carnival, Simon Property Group which is a big mall owner,

they're all up big time this week, this month. We've seen energy stocks move up as well.

And so all of that is about building in what the economy will look like once the vaccine is available and distributed.

But you're right, it can't go straight up forever. We know that that does not end well.

[15:55:00]

So I think it's a really good question about what happens next because you do think that at some point the market has to kind of cool off, you don't

want to see a melt up situation.

And to your point, right now the economy does not look so great.

QUEST: Right.

EGAN: We've just seen economists are marking down their estimates for fourth-quarter growth. JP Morgan late last week came out and warned that

the economy, the U.S. economy at least, is probably going to shrink again in the first quarter.

So, Richard, you and I know that the market is looking ahead, the market is kind of looking beyond this short- to medium-term turbulence.

But the really economy, of course, is still hurting. And it will for some time.

QUEST: All right. Matt Egan, thank you, sir. We'll take a "Profitable Moment" after the break.

(COMMERCIAL BREAK)

[15:58:20]

QUEST: Tonight's profitable music -- profitable music -- "Profitable Moment". Can't even get that right.

Tonight's "Profitable Moment." The reality is, it's a bit of an interesting week.

It's first week that I'm back at the CNN studios here in New York although I've done a good job of making it clear otherwise. But here we are back in

the studios.

Secondly, today was the first time we'd spoken to Peter Tuckman, one of the great friends of this program since the pandemic began. And emotional for

myself and for Peter to see each other and get a chance to talk over markets.

And thirdly, of course, the market itself over 30,000.

If we'd said -- thought just eight, nine months ago when we were down at 19,000 and looking at what was going to happen going forward, if you'd said

that within nine months not only will you have recovered and be back where you are and the pandemic will not be over but there'll be light at the end

of the tunnel, I'm not sure what any one of us would have said. Anymore than if you'd said on New Year's Eve last year would we be in this mess at

the moment?

But it does prove that the Dow's at 30,000 and the economies are moving forward even though we've got a difficult three or four months ahead.

But the vaccines, a new administration, stability in policy, these are all good reasons why investors have legitimate cause to be a little bit more

optimistic than they were.

Oh, one other new change, new pair of glasses. Some of you will love them, some of you will hate them. And I'm sure you'll let me know either way.

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.

There it is. The Dow 30,041. A record.

END