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Quest Means Business
E.U. Reaches Breakthrough on $2.1 Trillion Stimulus Deal; E.U. Regulators Set to Meet to Authorize Vaccine this Month; U.S. Advisory Panel to Vote on Pfizer Vaccine Authorization; Airbnb Shares Fly As Travel In 2021 May Be Vastly Different; Glacier Melt Caused By "Frozen Rainforest Of Biodiversity"; Planet Fitness Looking Healthy For 2021; Amtrak Looks Forward To Vaccines Increasing Ridership. Aired 3-4p ET
Aired December 10, 2020 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:04]
RICHARD QUEST, CNN BUSINESS ANCHOR: An hour before the close of business and the Dow has dipped below 30,000 looking at the market. It's been red
all day, not as bad as it was maybe at the open, which is interesting considering that Airbnb has launched on the NASDAQ and that has pushed it
higher, but we are off nearly half a percent on the Dow Jones, under 30,000.
The way the markets are looking and the day so far. Europe gets a double helping of economic aid, fiscal and monetary stimulus has been secured.
U.S. regulators are deciding now if they will authorize Pfizer's coronavirus vaccine.
And as I said, Airbnb has started trading on NASDAQ. The company is worth more than $100 billion.
We all live in New York on Thursday. It's December the 10th. I am Richard Quest and I mean business.
Good evening. We begin tonight as European leaders have reached a breakthrough on stimulus spending. The E.U. is now ready to approve it $2.1
trillion, seven-year budget and a recovery package on top of that, some $600 billion from this European Central Bank.
The E.C.B. President Christine Lagarde says the ongoing pandemic calls for dramatic measures.
(BEGIN VIDEO CLIP)
CHRISTINE LAGARDE, E.C.B. PRESIDENT: We all had hoped that once the first wave was over, vaccinations would be on their way, would be rolled out and
we would have herd immunity in short order.
This is not happening because of the second wave, because of the additional containment measures, because of the logistics associated with vaccination.
We know now that is going to take pretty much the whole of 21 and for the economy to then pick up, it's going to be a matter of a few additional
months.
So, we're providing potential financing, to make sure that financing conditions are favorable and supportive to get across those troubled water
and root the recovery in solid ground. That's what it is.
QUEST: Shamik Dhar is the Chief Economist joining me, from Bank of New York Mellon. He joins me now from Surrey, in England. So, we have here an
interesting thing.
First of all, let's deal with the stimulus coming from the Commission. They've got their budget through by some weird four-page document that
clarifies issues for Poland and Hungary.
I mean, it's classic Euro fudge, but it does mean that the stimulus package or the recovery package and the budget can be passed.
SHAMIK DHAR, CHIEF ECONOMIST, BANK OF NEW YORK MELLON: Yes, I mean, you're absolutely right, Richard, it's Euro fudge, as usual. But it's important
Euro fudge in this case, because I think that fiscal package, actually compared even with the monetary measures that we've heard about today is
actually the more important thing.
And so yes, absolutely. I think it is good news. It's sensible, on the part of both the European Council and the E.C.B. to have done what they've done
today.
QUEST: These E.C.B. measures are more of the same, in a sense, more purchases more lending facilities. And as we go into the harsh winter, is
it your view that it's necessary, not just sufficient?
DHAR: I think that's a really nice way of putting it, I think, yes, absolutely. It is necessary. We're going through here in Europe what I
describe as a bit of an air pocket between through sort of Q4 and Q1, a bit of a sort of turbulent period, before hopefully, vaccine rollouts get
going, and we get much, much stronger growth in the middle of next year.
Now, it makes sense, I think, in that context, to offer as much support as possible. But, you know, it's clear that QE over time seems to have had a
diminishing impact per Euro of QE spent.
QUEST: I mean, it's had almost -- we've got to the point now where they are doing it just to maintain the books, so to speak, any hope that it actually
does have a stipulative effect is on the downside.
But I want to really turnabout Brexit because the British Prime Minister, Boris Johnson is saying tonight, it's possible no deal. They have this date
on Sunday, in a few weeks ahead, you know, it has to be done by then. How much has the market priced in the fact of a no deal Brexit do you think?
DHAR: So, it's been moving around a lot recently. I think the market until very recently was pricing in something like a 75 to 80 percent chance of a
deal. I always felt that was a bit optimistic. I think, for a long time, it's been more like 50/50.
These are deep part issues of principle in particular, the level playing field issues and of course, the U.K. negotiating team has adopted a much
sort of tougher stance throughout the year.
So, I honestly genuinely think it's about 50/50 at the moment moving down below 50 at the latest activities.
[15:05:13]
QUEST: Right, but on the economic front, and I mean, I assume the U.K. economy, the last thing it really needs is this sort of hit. But how bad
would that hit be?
I mean, you used to be, of course, the Chief Economist in the Foreign Office, and you're well familiar with the ins and outs of how bad it would
be.
DHAR: Yes, thank you. And I made myself quite unpopular for an office by arguing that actually, it will be nasty, but not maybe as nasty as a lot of
people, a lot of my fellow economists were suggesting.
I think look, we'll see -- we will definitely see disruption in the event of no deal. I think it could cost the U.K. economy the order of sort of one
to two percent spread out really over the first two quarters of the year.
After that, I suspect things are much more sort of open than most things. I don't think this is a sort of an effect that's going to drag on for years
and years.
What that means, I think, is that, you know, it's something you want to avoid -- one or two percent GDP loss is something you want to avoid, which
is why a deal is a good thing, but not at all costs.
So, I think that's what's informed the U.K. negotiating position this year.
QUEST: Good to have you. Well, let's talk more as the year moves on into next year. I am very glad to have you on as part of the team now on QUEST
MEANS BUSINESS. Thank you, sir.
So, as we were just saying, the actual issue of Brexit, the new stimulus in Europe comes at a decisive moment for the E.U. facing three crises all at
once. The breakthrough on stimulus might help head off the double dip recession.
Regulators also having to authorize a COVID vaccine within the month. You're going to hear from the European Health Commissioner in a moment.
And finally, contingency plans in case of a post Brexit chaos in January. That's important, as the British Prime Minister now says the U.K. could
leave without a deal.
(BEGIN VIDEO CLIP)
BORIS JOHNSON, BRITISH PRIME MINISTER: And so, what I told the Cabinet this evening is to get on and make those preparations. We're not stopping. The
talks will continue to negotiate.
But looking at where we are, I do think it's vital that everybody now gets ready for that Australian option.
(END VIDEO CLIP)
QUEST: The Australian option is basically no deal, and that sense of stalemate has been echoed by European leaders in Brussels with our
correspondent Nic Robertson.
(BEGIN VIDEOTAPE)
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Well, perhaps it was the Swedish Prime Minister arriving here for the E.U. Leaders' Summit
meeting that summed up the mood, best saying he felt it was a more gloomy situation, that it seemed like a deal wasn't so likely, that's despite that
we are meeting late Wednesday night between Boris Johnson and the European Commission President Ursula von der Leyen.
They talked over dinner, they both agree that there were serious obstacles, gaps remain, not clear if they can bridge those gaps. This is how Ursula
von der Leyen described it.
URSULA VON DER LEYEN, EUROPEAN COMMISSION PRESIDENT: I had a very long conversation yesterday night with the Prime Minister Boris Johnson, it was
a good conversation, but it is difficult. We are willing to grant access to the single market to our British friends. It's the largest single market in
the world.
But the conditions have to be fair. They have to be fair for our workers and for our companies. And this fine balance of fairness has not been
achieved so far. Our negotiators are still working, and we will take a decision on Sunday.
ROBERTSON: A decision to be taken Sunday, she says. But in the meantime, the 27 different E.U. leaders here concerned about what happens if there
really isn't a deal by the end of the year, the 31st of December deadline that there is.
Ursula von der Leyen announcing contingency measures that there would be regulations to cover air travel regulations, to cover the safety of air
travel, regulations to cover road transportation, and perhaps most difficult for the British to swallow, regulations that would allow the
European Union fishermen to continue fishing in British waters.
This is really a very difficult time in the negotiations. They are still ongoing. But the mood here gloomy, like the Swedish Prime Minister said.
Nic Robertson, CNN, Brussels.
(END VIDEOTAPE)
QUEST: And so to the issue of vaccination, the U.K. is vaccinating patients for COVID-19 as we speak. The U.S. is meeting, as we speak, to authorize
the Pfizer vaccine that could happen before the day is out. And yet, European regulators if they are in a rush, it would appear not to be.
They say they'll meet on authorization sometime before December the 29th.
[15:10:05]
QUEST: Stella Kyriakides is the E.U. Health Commissioner. She joins me now from Cyprus. Commissioner, thank you. Good to have you with the program.
Look let's agree one thing, you know, every regulator is saying that they are ensuring the vaccine is safe. So, the British say it, the Australians
say it, the Canadians say it, and the Americans say it. You will no doubt say it in your answer.
So, my question becomes why is it taking Europe longer to ensure that to everybody else?
STELLA KYRIAKIDES, E.U. HEALTH COMMISSIONER: Well, first of all, good evening, Richard. It's a pleasure to be with you again. And you're right,
everybody is really focused globally on having access to a safe and effective vaccine, which will lead us out of this pandemic.
And I would say that, yes, all the regulators are looking at safety issues and efficacy issues, and this is exactly what the European Medicines Agency
is doing. But it is taking a different procedure.
We're going -- we're moving with a conditional marketing authorization, which is different to the emergency use authorization that for example, the
U.K. has followed.
So, speed is of course of essence. But as we have said, from the very beginning, safety and efficacy is really paramount in our eyes.
QUEST: Understood. Understood. But that doesn't explain why you chose a method, this conditional method that is going to take longer, maybe just
two or three weeks.
But you know, they're saying that the U.K. when it vaccinated only over 75, or over 80, before you've even got rolled up the sleeves.
KYRIAKIDES: Well, first of all, I'd say, Richard, that this isn't really a race between countries. The only race we are all in is against this virus.
And this is a global effort because we're facing a global pandemic.
The decision to go with a conditional marketing authorization was a decision taken by all 27 member states, which could have gone with -- which
could have each gone with an emergency use authorization, but we decided that we would all move together for 27 member states, so that this vaccine
once it is authorized, or vaccines once they are authorized, they will be available for all 27 member states at the same time.
And this is in a sense, really the essence of solidarity of the batting strategy of the E.U.
QUEST: Now, let's stay with solidarity, Commissioner, are you prepared to say now that people should not travel over the Christmas period? Dr. Fauci
has said don't travel even though U.S. -- the confusion is over here I am - - but what do you now say should happen in the E.U.?
KYRIAKIDES: What I am saying, and I have always been giving the same message is that this Christmas, the festive season, which is about to begin
is going to be a different Christmas.
Richard, 2020 has been different in every way. It's changed our lives, our livelihoods, all of our celebrations, the way we have had our holidays has
been different. And this Christmas will also be different.
So, what I would ask us all to have in mind is that this is a Christmas about really working together, about saving as many lives as possible.
QUEST: Commissioner, can I interrupt you, ma'am? Forgive me, what's so difficult about saying don't travel.
KYRIAKIDES: I wouldn't say to people not to travel, I would say that one needs to travel safely. And I would say that one needs to make sure that
they're keeping all the rules that have been in place for the last eight months.
So, it is important that we understand that now that there is a horizon of hope with a vaccine around the corner. We need to continue to take all the
measures so that we're protecting not only ourselves, but the vulnerable among us.
And I will just like share with you the statistics and the data that I have had today. As the numbers pan today within the E.U., every 25 seconds, one
citizen loses their lives through COVID-19. The measures that member states have been taking over the past week have proved to be effective.
We are seeing a decline in the number of cases and thankfully, a decline in ICU admissions and slowly declining mortality. But we are not where we were
in June. The plateau is much higher.
So we're in a very fragile situation and we need to understand this moving forward for the next few months and this includes Christmas that we need to
continue taking more measures.
[15:15:11]
QUEST: So I understand that. But to some extent we've had a window on what could happen, an experiment, if you like, in the United States with
Thanksgiving, and the surge is now starting and the record level of deaths has just been reached in this country at 3,000.
Isn't that cause to say not only do what you have been doing, but go even further, and basically, stay at home this Christmas, or there will be a
January surge?
KYRIAKIDES: Well, first of all, I want to extend my heartfelt condolences to all those in the United States who have lost loved ones and for those
who are going through COVID-19 at the moment, and what I would say to everyone, and this, I really want to send this message to all citizens
wherever they are, is that we really need to work together to fight this pandemic.
And if this takes having a different Christmas, it will mean that next Christmas, we will be able to celebrate all together with no one missing
around the table because we didn't take our measures this year.
And for myself, this is so important to say this because these are not just numbers that we're seeing every day, and that you're repeating every day in
new cases. These are people, these are families, and these are -- so let's please use this Christmas and see it in a different way, a Christmas
really, of solidarity.
There is hope now with the vaccine to be available, and we must make sure that we protect our citizens, as well as possible. Keep everyone safe,
until as many people are vaccinated to be able to get out of this very, very difficult public crisis.
QUEST: Commissioner, I wish you and your family well this Christmas, wherever you may be celebrating, or however you may be celebrating. I wish
you well. Thank you, ma'am for joining us.
KYRIAKIDES: I wish you well, too, Richard. Thank you.
QUEST: Thank you. In just a moment, staying with vaccines, the U.S. is getting closer to its first dose. Less than 24 hours after the country hit
a crushing milestone, more than 3,000 dead.
QUEST MEANS BUSINESS, good evening.
(COMMERCIAL BREAK)
[15:20:02]
QUEST: To news now, regulators are meeting at the moment and the crucial decision on whether to authorize the Pfizer vaccine for emergency use.
A discussion and the vote will take place any moment now. It comes after a day of devastating milestone, there more than 3,000 Americans lost their
lives to COVID-19 on Wednesday.
Our senior medical correspondent, Elizabeth Cohen is with me. Let's first of all, just be clear, they are going to approve it. I mean, it's
inconceivable, surely that they would say no.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Richard, I think you're right, it's generally accepted that they're going to approve it, but they
want to put all the science out there, all the results, all the side effects all the everything so that they're completely transparent.
And this really matters, it's not just a sort of a nice thing to do. Vaccine hesitancy for this particular vaccine is really high in the United
States as it is in some other countries. And the hope is that the more that they put it out there and are transparent, the more people will trust it.
And there really are some real questions that need to be answered about who maybe should or should not get this vaccine.
QUEST: Okay, so those who are saying they don't want to take it, we've seen that number going up and then coming down. I don't know what more they want
it by way of proof, other than the time of people having taken it and not been injured by it.
COHEN: You know, I'm not sure that these folks are actually looking for proof as much as they just have this fear. And I think it's going to be
interesting to see once this vaccine is out there and people start getting it and then they know someone who got it, their friend got it, their mother
got it, their sister got it, their brother got it, and they were fine.
And I think that's what might turn the tide. It's not the data necessarily. It's one seeing that this is a transparent process that the F.D.A. is not
hiding. They're having these meetings out in the open for everyone to watch online if they want to, and then seeing people they know get it and do
fine.
QUEST: Finally, 3,000 people died in the United States. Is this the Thanksgiving surge?
COHEN: That is probably some of what's going on here. I mean, it was the travel at Thanksgiving, which was just a few weeks ago. When we see lots of
travel, we know because we've seen this before, you see lots of travel, people get sick, people end up in the hospital. And then the weeks go by
and you see the death rates go up, unfortunately.
So some of it is that and some of it is also just, you know, as time goes on the growth, it's unfortunately not linear. It just, you know, keeps
growing and growing and growing.
QUEST: Now, we see the numbers on the screen in terms of the number of confirmed deaths. Thank you. Elizabeth Cohen joining me.
FedEx is gearing up to move millions of doses of Pfizer's vaccine. The company says it has enough air cargo capacity to handle deliveries and that
it is working with governments worldwide on distribution.
Karen Reddington is the President of FedEx Express Europe, with me now from Amsterdam via Skype. Karen, it is good to have you and what's the biggest
challenge that you've got in terms of it? I mean, Pfizer has the challenge of making it. The doctors have the challenge of people being prepared to
take it. What's your challenge?
KAREN REDDINGTON, PRESIDENT, FEDEX EXPRESS EUROPE: Well, thank you very much, Richard. Really when we think about this, this is what FedEx does day
in and day out. We were built around the idea of moving complex logistics around the globe. So we've been planning for this for a while.
And when we think about what we bring to bear here, we have significant scale, FedEx is the largest air cargo airline in the world. We have 670
aircraft plus, we connect those around the globe and that network is integrated into a vast ground network.
You add to that our experience and capabilities in the healthcare and life science business. We are adept at being able to move time critical,
temperature sensitive shipments around the globe.
And then just for that extra layer of security, we've recently been innovating around our FedEx Surround platform along with Microsoft. This
allows us to use predictive analytics to be able to sort of get ahead of this, start to anticipate any roadblocks we might see along the way,
whether it's weather or traffic, and make sure that we get this vaccine from the manufacturers, from the origin site to the point of use on time,
intact and with integrity.
And so it's all down to the planning and then making sure that we tightly manage this on the day.
QUEST: The challenge, of course is not getting it to the major, if you like distribution centers or the major capital cities, it's going to be that
next that second, third, fourth fifth wave in 2021 where the vaccine has to be taken to more remote parts of the world.
Now obviously you have capacity for these complicated, deep freeze treatment forms, but I presume something like the AstraZeneca, which can be
done at a much more normal temperature is easier?
[15:25:11]
REDDINGTON: Well, absolutely, I mean, we certainly have the capacity. We move 17 million packages around the globe every day. But I don't think it's
a question so much of what is easier, it really comes down to understanding the needs of the packages that we're moving and then coordinating with the
pharmaceutical industry and with governments to make sure that we tightly and accurately understand the requirements for moving this package.
You know, what geographies we're moving it into? What specific locations? Is it at hospitals or clinics? And then understanding the conditions that
we need to maintain that package at?
And then we come together with a tight solution that will allow us to all succeed together? And do you remember that we cover a vast geography.
We touch 220 plus countries and territories around the globe. We deliver to 99 percent of the world's GDP every day, so we've got this covered.
QUEST: You've got it covered and we'll talk to you more. I am looking forward, Karen, once we get to the New Year, let's catch up again on QUEST
MEANS BUSINESS so we can actually understand how it's moving because we have a great level of logistics. And this really is all about the
logistics.
Karen, I wish you and your family well for the holiday period. Thank you, ma'am for joining us on QUEST MEANS BUSINESS.
REDDINGTON: Thanks very much, Richard.
QUEST: Thank you. Airbnb shares skyrocket. The company makes its debut on Wall Street.
Look, I've got a beef about this. And it's really this. Why bother pricing it at all? Why bother paying banks large sums of money to come up with a
price when it is effectively -- I think we'll go for that.
After the break.
(COMMERCIAL BREAK)
[15:30:00]
QUEST: Hello, I'm Richard Quest. More QUEST MEANS BUSINESS in a moment.
Airbnb has just pulled off the biggest U.S. IPO of the year. It's doubled its share price in the first few hours of trade.
And years of daily train commutes between D.C. and Delaware, they named Joe Biden "Amtrak Joe." The CEO of Amtrak will tell us what a Biden presidency
could mean for his company.
As we continue tonight, this is CNN, and on this network, the facts and the news always come first.
Prime minister Benjamin of Israel -- the Prime Minister of Israel, Benjamin Netanyahu, is praising what he's calling a historic peace agreement between
Israel and Morocco.
Earlier, President Trump tweeted that both countries have agreed to establish full diplomatic relations. Morocco will become the fourth Arab
country this year to normalize ties with Israel.
President Elect Joe Biden is again turning to another familiar face to serve in his administration. He's chosen the former national security
adviser Susan Rice to run the White House domestic policy council.
She previously served as the U.S. ambassador to the United Nations.
The talk show host Ellen DeGeneres says she has tested positive for COVID- 19. The show was back in production for the last few months with safety protocols in place.
She says she's in good health at the moment. There's no telling yet when she might be back on air.
Airbnb shares rose as much as 142 percent after the vacation rental company IPO'd this morning. This is the way the shares are looking at the moment.
Only 81 percent, what's gone wrong? The CEO told CNN that travel has taken on new significance during this difficult year.
(BEGIN VIDEO CLIP)
BRIAN CHESKY, CEO, AIRBNB: I don't think the world ever goes back to January. And if that's true, I don't think travel goes back to January.
Now, it doesn't mean travel's over, it doesn't mean business travel's over. But I do think there's going to be a major mix shift from business travel
to leisure travel. Because obviously a world that zoom's a world of flexibility.
(END VIDEO CLIP)
QUEST: So I just got that wrong, didn't I? I read the as $88 as a percentage, it's actually still up 120 percent. So apologies for that.
Paul La Monica makes my point even more. We'll get to that -- we'll get to the problem in pricing in a moment, which you know I always harp on about.
Let's just talk about Airbnb. Why should it be doing so well when there's such problems in terms of whether people can travel or not?
PAUL R. LA MONICA CNN BUSINESS REPORTER: Yes, exactly, Richard. This is the opposite of what happened with DoorDash yesterday. DoorDash surged because
of all the optimism about food delivery services during these COVID-19 pandemic times.
I think with the case of Airbnb, people are looking ahead to a future where there is a vaccine, where people may be willing to travel more often again.
And they look back and realize that, pre-pandemic, Airbnb was doing a pretty good job of disrupting the travel business and taking a lot of share
from hotels and other traditional lodging companies.
So I think the hope is that this revenue decline in the first part of 2020, that reverses and that the company goes back to solid revenue gains in
2021.
It's a big if, I'm not saying it's definitely going to happen. I think that's the justification for --
QUEST: Oh, I think --
LA MONICA: (inaudible) price today.
QUEST: I think it's justified. I think that things will get back to some form of normality and people like Airbnb will benefit.
Which comes back to my point. Why bother pricing? With a straight face, how can you price something that then doubles upon its opening?
LA MONICA: Yes. It's the top question that has plagued start-ups for many years.
When you have a company that's going public, by being a private company, you don't necessarily know exactly what the demand is going to be for your
stock at a certain price and you have that delicate balance.
If you price it too low then you wind up potentially getting the one-day pop like we're seeing but if you price it too high then psychologically
that could scare off individual investors then you don't wind up getting a big one-day gain.
And even if you are leaving money on the table because what you raise is based on the price that you set it at, not what it opens at, it is about
vanity to a certain extent.
I think these executives and the investment bankers like being able to say hey, our stock doubled in its first day of trading, whether or not that
means it's a good long-term buy, obviously not.
But remember, Richard, Facebook was flat on its first day of trading. I don't think Mark Zuckerberg is shedding too many tears about that this day
and age.
QUEST: No, absolutely. Good point.
LA MONICA: (Inaudible).
QUEST: We'll leave it there. I could keep going a lot longer on this one. All right. Paul La Monica, thank you.
Like Airbnb, Planet Fitness is benefiting from investor optimism for a big rebound next year. The company's shares are hovering near pre-pandemic
levels despite the threat of more gym closures as COVID numbers worsen in the U.S.
The CEO's Chris Rondeau, he joins us now from Hampton in New Hampshire. Chris, it is good to have you with us.
[15:35:00]
This is interesting. Your stock and I'm not -- we're not a stock program, per se, but your stock seems to suggest the market likes the environment.
But clearly, more closures and a difficult Q1 is ahead.
CHRIS RONDEAU, CEO, PLANET FITNESS: Sure, right. Yes -- thanks for having me on, Richard. I think what the investors are really seeing in the market
is saying that, granted, we're in a difficult time right now, and this year's been very difficult, but we've weathered the storm really well.
We still have 2,100 stores, we had no closures because of COVID. And coming out of COVID I believe strongly, and I think the world does, is that people
will pay closer attention to their health coming out of this.
So the brighter side of the tailwind of this industry is that people'll pay more attention to getting healthy. So once we get through this, gyms are
going to be the place to go.
QUEST: There is a huge discrepancy between reality and perception. The perception is that the gyms are all a hotbed of bio-disaster and that
COVID's rampant and everybody's hot and sweaty and breathing all over each other.
Now that's not true. But nor is it true that it's a risk-free environment because you do have people breathing hard, even if it's into a mask, in a
closed environment.
RONDEAU: Sure. You've heard it -- there's no risk-free environment, any place has really got some risk level.
You know, an interesting study came out of the U.K. of their track-and- trace app. And they tracked and traced some of their people here and the citizens of the U.K..
And they tracked that the most likely exposure was at supermarkets at 18 percent. Second was secondary schools and primary schools at 10 to 12
percent. Gyms were at 1.1 percent. That's it.
And we, Planet Fitness. Since May reopening, we've had over 100 million workouts and have had no breakouts or contractions within the facility. And
the exposure rate is less than 1 per 100,000 workouts. It's like eight ten thousandths of a percent.
So we've proved we can operate safely and it's something that's good for your health. Obesity, diabetes, heart disease, lung disease; which, when
you look at COVID, that's what's affecting the most. So to close a gym is counterproductive.
QUEST: I freely admit that I'm a gymaholic, although I of sort of fell dangerously off during COVID and I've got a few pounds here that need to be
dealt with.
But Chris, what worries me when I'm back in the gym is I see people slacking off in terms of cleaning equipment. I see people not being -- a
complacency is setting back in.
RONDEAU: Yes. I think in Planet Fitnesses even before COVID, we were meticulously clean and the etiquette of our members is I'd say second to
none. Where members even before COVID were cleaning equipment after every use.
We have cleaning stations throughout the facility, we have sanitization spray that they can use to clean the equipment -- and it happened to be an
approved agent to kill COVID, believe it or not, even pre-COVID.
And it's almost amplified more. I work out at my local Planet here in Seabrook, New Hampshire, and people are meticulously cleaning equipment
before and after every use.
But the masks are important. We have touchless check-in. We also have a crowd meter on our app so before you leave the house, you can determine do
you feel safe or not, do you want to wait an extra hour to come in.
So the big thing is making sure the clubs are clean, that you're wearing your PPE and you're wiping stuff down before and after use.
QUEST: Chris, let's promise that when this is all over, the next interview or future interview, we'll do it at a Planet Fitness here in New York, you
on one treadmill --
RONDEAU: Please do.
QUEST: -- me on the other And we see who falls over first.
RONDEAU: Let's do it. Thank you for having me on.
QUEST: Thank you. Good to see you. Chris Rondeau joining me from New Hampshire.
In a moment, QUEST MEANS BUSINESS tonight. Busy night as you can tell.
As the biodiversity is thriving in one of the earth's coldest places and the rising sea levels never end.
"Call to Earth," after the break.
(COMMERCIAL BREAK)
[15:40:00]
QUEST: The Arctic, we're all about the Arctic this week on "Call to Earth." The call to action for the environment showing critical issues like global
warming, deforestation.
The Arctic is where our focus has been. And we've been championing some of the people working to protect the region's wildlife and environment.
Today, for example, the glacier scientist Rolex awards laureate Joseph Cook and the study on how microscopic life forms are melting Greenland's ice
sheets, and -- well, the sea levels are rising.
(BEGIN VIDEOTAPE)
JOSEPH COOK, GLACIOLOGIST: The ice, itself, is just kind of a blank canvas where people had previously thought it was lifeless and fairly static.
But when you look under a microscope, the Greenland ice sheet in particular and other glaciers too reveal themselves to be a frozen rainforest of
biodiversity.
KRISTIE LU STOUT, CALL TO EARTH NARRATOR: Glaciologist Joseph Cook studies microscopic lifeforms that thrive in some of the coldest places on earth.
His pioneering research shows these tiny organisms are contributing to sea level rise.
COOK: When these microbes grow on the surface of glaciers and ice sheets, they change the color.
If you go out on a hot day wearing a black T-shirt, you get warmer than if you go out on a hot day wearing a white T-shirt. The same thing happens on
the ice.
These algae is like the black T-shirt for the glaciers causing it to warm up in the sun and melt faster.
STOUT: Another threat to the ice, these melt holes are formed by a substance called cryoconite, a combination of microbes and dust particles
that speed up the melting process.
COOK: These algae are not a new phenomenon. With climate change, there's a larger area for these algae to cover because snow retreats further and
faster each summer.
So a larger area of the ice can be darkened and that means more ice is melted and contributing to sea level rise.
STOUT: Thousands of miles away on the south coast of England, Cook's hometown is at risk of sea level rise.
COOK: On a nice, sunny day, the Arctic seems just so distant and so separated. But we're here connected to the poles by the ocean.
When those giant ice sheets and glaciers in the Arctic and Antarctic melt they contribute water to sea level rise and we experience that here.
Projecting out into the future for places like this, we foresee higher sea levels which means more rapid erosion of the cliff lines which puts the
land above the cliff lines at risk.
Well, it's a global problem, and it doesn't just affect people on the coasts. Because, firstly, the base level is higher and that pushes water
back up all of our waterways so people on river flood plains are also at risk.
STOUT: Cook says new technology like drones and satellites combined with cloud computing have revolutionized his research. Allowing him to track the
growth of algae on a continental scale and predict how it will shape our oceans for years to come.
COOK: We have now established that these algae are darkening the ice and causing it to melt faster. So we need to be able to develop robust methods
for mapping these algae and their impact.
So we can say over the next ten years or over the next 100 years this is how much the ice sheet's going to melt.
[15:45:00]
I think the situation is becoming urgent. Certainly, we're seeing the accelerated rate of ice loss in the Arctic and the Antarctic.
If we want to make good decisions about how to manage our land and our economy into the future, we have to have good projections of sea level
rise.
Being on the surface of Greenland ice sheet, you are aware of both its enormity but also its vulnerability to our actions. So you also realize
that you're important and that your actions matter.
(END VIDEOTAPE)
QUEST: And it's important we showcase inspirational stories like the one you just saw.
It's all part of the CNN "Call to Earth" initiative, and we need to know your part.
And so using the hashtag #calltoearth.
(COMMERCIAL BREAK)
(Sound - train whistle)
QUEST: All aboard! What an evocative sound, that whistle.
For nearly 50 years, Amtrak's been taking millions of riders across America, myself included. And the president-elect.
Joe Biden has been riding the rails since he was a senator in the 1970s.
Here is "Amtrak Joe," as he's known, at the Wilmington station which is now named after him. He's campaigned from the train platform in the past and he
might take Amtrak to his inauguration.
Amtrak says it wants to work with the Biden Administration to get the economy moving.
Bill Flynn is the CEO of Amtrak. He joins me now from New York via Skype.
Bill, it is good to have you on QUEST MEANS BUSINESS.
Amtrak is about to get a friend, a real friend, in the White House. What would you like to get from the administration?
BILL FLYNN, CEO, AMTRAK: Well, good afternoon, Richard. And you made a very important point just a moment ago.
Amtrak will be celebrating its 50th anniversary here in May in 2021. And we are, indeed, looking forward to working with the new administration.
And I think they set the day one priorities and first 100-day priorities after that and then a longer-term view.
We're the point where vaccines are being approved and vaccines are about to be distributed. And so that's going to be critical for us as we think about
the level of ridership and the protection of our employees.
That the vaccines indeed are effectively distributed and are available to our employees as the essential workers that they are and that catalyzes
further recovery in ridership.
[15:50:00]
And we also need funding. We have submitted our funding request and increased that request.
And as the COVID pandemic took effect, through the course of this year, right now we're operating on a continuing resolution. And we have a request
for supplemental funding of $2.9 billion for a total of $4.9 billion this year. And that's urgent, from our perspective.
As we think about the first 100 days of the new administration, we'll need to establish the funding for fiscal year 2022 -- we operate on an October 1
through September 30 financial year -- and we'll be submitting that request in 2020 (ph) in February.
But the challenge is we're getting our funding on an annual basis. And in the current congress, in the House, a new surface new transportation bill
was offered and that provided up to $60 billion of funding for Amtrak over the five-year period.
So that longer-term investment in Amtrak and in our infrastructure's key.
QUEST: Bill, every company, every transportation company is deciding, taking this opportunity -- that horrible phrase don't waste a good crisis -
- but to decide what their role is in the future.
What's Amtrak, what do you see as the future in terms of Amtrak? Is it just niche routes, is it just the northeast of the United States? Can you build
a long-distance route high-speed real (ph) network? What's the future?
FLYNN: Oh, I believe Amtrak's role is essential and it's not just the northeast corridor, Washington to Boston. But I think Washington to Boston
points out what, indeed, Amtrak can be and what Amtrak can contribute and to the mobility needs of our country with our inner city passenger rail
services.
A couple of numbers. The interstate highway system was largely completed in the U.S. around the middle '90s, 1992. And since then, only about 13
percent of lane capacity has been added since 1992.
Population has grown 28 percent -- call that 90 million people in that same period of time -- but vehicle miles traveled have increased 65 percent.
And you know it yourself, if you drive not only within our major urban areas but between them -- think about the congestion between New York and
Washington --
QUEST: Right.
FLYNN: -- just by way of example. But you know what? The Amtrak route structure hasn't fundamentally changed since 1971.
So from our perspective, there are 25 to 28 metropolitan corridors, for an example, where multiple daily train service could provide very much needed
intercity transportation at a substantially lower environmental footprint - -
QUEST: Can you --
FLYNN: -- and one that is competitive for our customers.
QUEST: Can you make that argument -- well, you can make that argument -- can you win that argument?
FLYNN: Oh, I believe we can win that argument, I absolutely can make the argument. The company, of course, can.
And we have other examples, it's just not Washington to Boston. We've had good growth prior to the pandemic in North Carolina, a route from Raleigh
to Charlotte. There's route extension from Richmond into Petersburg.
We're looking at services to go from Chicago, increased services, from Chicago to Milwaukee and then on to St. Paul, Minneapolis.
There's no effective passenger service between Birmingham and Atlanta, Birmingham and New Orleans, Atlanta and Nashville.
And then look at just our West Coast routes. Our second largest corridor -- we talk about Washington to Boston -- is actually San Diego to Los Angeles
and beyond.
So there is demand for our services. And those services will meet those needs.
QUEST: Can I ask you, finally are you preparing a special train to take the president elect to his inauguration? Come on, you can let me into a secret.
FLYNN: I can't let you into a secret. But if the president's inaugural committee wanted to talk with Amtrak about a special train, we'd be
delighted to speak with him --
QUEST: Good to talk to you
FLYNN: -- or speak to his team, I should say.
QUEST: Yes. Thank you, sir. I appreciate your time tonight, thank you.
Last few moments of trade on Wall Street. The Dow has been down, it's going to be lower. It's responding to a jobless claims increase where investors
are worried about the stimulus gridlock in Washington.
It's just all a miserable sort of day even though the weather's nice but the day's not looking that good on the markets.
We'll take a "Profitable Moment" -- that's the way the markets are looking -- we'll take a "Profitable Moment" after the break.
(COMMERCIAL BREAK)
[15:55:00]
QUEST: Tonight's "Profitable Moment."
Today we had an interesting IPO; Airbnb launched itself on the Nasdaq and the price of the stock went up more than 100 percent. It's currently up
more than 120 percent.
Now Airbnb's an interesting one because it's a real company with real customers and a real business. Many of us have used it, I've used it on
numerous occasions, I'm sure you have, too.
This is not a case of scooby-doo.com. This is a case of a real company doing business.
(Audio interruption)
UNIDENTIFIED SPEAKER: We now turn to draft resolution 18 --
(Audio resumes)
QUEST: And therefore, we now have to ask ourselves, what does this mean when you get a company like Airbnb getting not just getting a piece of
paper but a massive explosion in its share price?
Frankly, bankers are paid money to know what the price should be. And if you go up by 10 percent, 15 percent, 20 percent, well, that's what you
want, a feel-good factor.
But to go up 120 percent on your open and not have the shame of saying we clearly got the price wrong for a reputable company that's quite mature and
we know what it does and is well liked?
I'm sorry, this one just doesn't hold water to me.
Airbnb's pricing was a shambles. The stock price has done well, the company will thrive. But, however, the bankers should have red faces all around.
And that's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New York.
Whatever you're up to in the hours ahead -- here's the bell -- I hope it is profitable.
The Dow is down. When the bell finally rings, it will be a down day.
Jake Tapper and THE LEAD is next.
ANNOUNCER: This is CNN BREAKING NEWS.
JAKE TAPPER, CNN HOST, THE LEAD: Welcome to THE LEAD," I'm Jake Tapper. And we start with breaking news in the health lead today.
What could be a massive step forward for America's first coronavirus vaccine. Right now an FDA panel is discussing whether Pfizer's vaccine
should be authorized for emergency use.
The FDA could give the official green light as soon as this meeting ends and the first Americans could, theoretically, get vaccinated by this
weekend.
It is a glimmer of hope in what has been a terrible and tragic week.
Right now, the U.S. has a record number, record number, of COVID hospitalizations, more than 106,000.
Yesterday was the deadliest day of the pandemic so far in the United States and one of the deadliest days.
END
