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Quest Means Business
Trump Vetoes Defense Bill; Will The Republicans Face Off With Trump Over Relief Package?; Bollinger Champagne Sales Pop In U.S.; OECD Candidate Vladimir; Stopping Food Waste; The Tasteful Japanese Way. Aired 3-4p ET.
Aired December 23, 2020 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:13]
RICHARD QUEST, CNN BUSINESS ANCHOR, QUEST MEANS BUSINESS: The Dow is within touching distance of a new all-time highs just before Christmas. The
market has been up all day. That's the sort of session we know that the gains are going to hold. Look at that. It's been solid green throughout the
course of the session. And really you've got to ask yourself why when you look at the underlying trends, economics, business, and the like.
That's the way the market is, and this is what has happened during the course of the day.
Boris Johnson, a last minute Brexit deal, according to reports could be tonight or early tomorrow morning.
Donald Trump is complaining about the COVID relief bill, and it was his team that negotiated it.
And AstraZeneca's vaccine is now being reviewed by British regulators after the company handed over the data.
We're live in New York on Wednesday. It's December the 23rd. I'm Richard Quest, even before Christmas, I mean business.
Good evening. Officials on both sides of the English Channel now say that there is progress and that they are as close as they've ever been to
reaching a Brexit trade agreement.
It could be in place as soon as the coming hours. The principles the negotiators are said to be in close contact, looking to settle this before
Christmas.
Nima Elbagir is outside 10 Downing Street. All right. What can you tell us, rumors of press conferences, rumors of deals and who is going to speak,
when and what? What do no, Nima?
NIMA ELBAGIR, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, on record, officially, nothing. Number 10 is saying that they have nothing to announce
this evening, and nothing to tell us. But as you've just outlined, rumors are swirling that on the three key sticking points: access for fishing in
British waters, the level playing field, also the issue of arbitration should either side not stick to the deal negotiated that we are closer than
ever.
The hope is that if we can't seal something tonight, the expectation is that it would be pushed into next week, because the all-important papers
here in the U.K. will not be able to report to it much past tomorrow.
So this Prime Minister, if nothing else, likes to have a big event around him when he does have good news.
QUEST: So the fisheries, it's highly complicated, but the general view seem to be that it would be bizarre for the entire Brexit negotiation to
fail on the issue of fish.
ELBAGIR: Yes, however, it's not so much the issue of fish, it is the issue of characters involved. This is the same Prime Minister who was part of
vote leave, made British control over British waters such a key issue and it was really catchy.
Why can't the United Kingdom control how much access it gets to fish in its own waters? Why our European Union partners able to make 600 million plus
out of British fish? I mean, you know, fish and chips, Richard.
It was very catchy and the Prime Minister made as much hay out of it as he could. So it's whether he can handle having to backpedal and having to come
back and say that maybe perhaps Europe didn't give him what he promised the voters.
But we are so close to the possibility of even more pandemonium and after the scenes that people have witnessed after the embarrassment, frankly, of
Lufthansa landing in Britain loaded with fresh food and goods as a present from the German people, the sense is that the British public will accept a
lot if they don't have to go through shortages and those kind of national embarrassments again -- Richard.
QUEST: Okay, so let's assume for the purposes of this question, and it is a big assumption, but let's assume that they do a deal. What does this deal
look like in terms of -- and let's assume also they can get it in place by the end of the year?
Again, it's a big ask, but what does this mean on January the first, second -- what actually has to then -- what will be the difference?
ELBAGIR: Well, in fact, what the deal will do is it will allow things to stay the same so that you can have access, you can have goods arriving from
the European Mainland, and the hope is that Britain will be given some kind third party status that will allow things to stay just about enough the
same that the government can argue that it has pulled off a coup.
But the worry is what happens when you come out of that period of just the same, when you have to renegotiate? What impact is this going to have on
Britain as a potentially attractive place for businesses to base themselves when we do go back to business as usual?
[15:05:22]
ELBAGIR: These are all the questions, and also Richard, the key question is, was it worth it? Was all of this worth it? Especially seeing what
happens when Britain is outside of the club.
I mean, thank God that that closing of the borders happened towards the end of the transition period, and that the European Union Commission was able
to advise European member states to try and roll back some of those restrictions and support Britain because if we had already crashed out of
the European Union, they would not have been able to save Britain from itself.
Those food shortages that we saw, those supermarket chains and their warnings that would have been a much worse reality.
QUEST: Good point. Thank you, Nima. Nima Elbagir in Downing Street tonight as we wait to hear more from the Prime Minister.
British health authorities have begun COVID testing for truck drivers stranded in Dover. Thousands of trucks are still waiting to cross over from
the Port of Dover into France.
The border has been reopened only for U.K. travelers with a negative COVID- 19 test. Look at the number of trucks. There are about 3,000 of them or so.
Meanwhile, there have been tensions high with the angry scuffles between police and the truck drivers who have been stuck in their vehicles for
days, as you can see, caused this sort of -- I wouldn't say full scale riot or anything like that, but certainly scuffles of the like.
Salma is with me in Dover, so they are going to start testing with the flow test. Have they begun?
SALMA ABDELAZIZ, CNN REPORTER: They have begun, Richard, and that's why you see, I know you showed those pictures of what was happening earlier,
but that's why you see a moment of calm around me really, after a very chaotic day.
I'm going to start by explaining to you what's happening now. So we have just seen the first few vehicles. Our team has just seen the first few
vehicles go right behind me there. In that area, in that quarter, there are healthcare workers that are testing drivers, but they can only let in a
handful at a time. Police tell us, 30, but drivers here say they only witness less than that crossing.
They keep the drivers and their trucks for 30 minutes. They test them. If you get a negative test, you move along and you get on the ferry and you
can cross into Europe.
But again, up to 10,000 drivers located in this region, 30 at a time in 30 minutes, do the math. I can, it's very complicated, but I'm going to tell
you it's going to take a while.
The British government says it will be days before this is unblocked. But I just want to show you first how the day unfolded, Richard. Take a look.
(BEGIN VIDEOTAPE)
ABDELAZIZ (voice over): As the sun rises on Dover's White Cliffs, so does the exasperation of truck drivers stuck at the border. Thousands of haulers
waiting to return to Mainland Europe.
UNIDENTIFIED MALE: No shower. No toilet.
UNIDENTIFIED MALE: No toilets. Over there, you have one [bleep] petrol station and they close the toilet. Why close the [bleep] toilet. Why? Why
close the [bleep] toilet?
ABDELAZIZ (voice over): Claiming a new variant of coronavirus, the British government ramped up its lockdown. The French took their lead temporarily
closing the border.
ABDELAZIZ (on camera): This is what we've watched play out all day, tensions between stranded truckers and the police faceoff and shouting and
yelling.
But it's not just about the health and safety of these drivers, it is about the critical job they do keeping this vital supply route open between U.K.
and Mainland Europe and it is leaving Britain feeling completely isolated.
ABDELAZIZ (voice over): Officially, the border is open to truckers with a negative test result from the past 72 hours. But it will take many days to
clear the backlog.
This is why. More than 4,000 trucks parked on the tarmac of a local airport, along the highway the same.
The view among the truckers crosses all language barriers. The testing program announced Tuesday was nowhere to be found for much of the day.
UNIDENTIFIED MALE: Last night when we come here, asked the policeman and police said we try online and we tried all the time and they write. No test
for England.
ABDELAZIZ (on camera): You tried online and you couldn't get a test.
UNIDENTIFIED MALE: All the time we tried and no test.
ABDELAZIZ (voice over): The longer they wait, the little sanitation, the greater the risks amid a pandemic. Frustration leads to indignation from
both drivers and police.
Finally, a testing unit arrived as dusk fell.
And the day came to a close as it began, with tensions high.
Most anxiously trying to get home for Christmas, and others heading further from it.
(END VIDEOTAPE)
QUEST: So, Salma, as we look at the situation, we've got those trucks waiting to go across. It's hard to distinguish how much of all of this was
Brexit, inspired in the sense that this is what it would look like, if there was a hard Brexit and the U.K. crashed out of the transitional
period.
ABDELAZIZ: I completely get what you mean, Richard. There is a lot of trying to interpret the motivations of politicians, trying to read between
the lines in this story.
What I can tell you is, witnessing what the British government has done over the course of these last few days because I've been reporting since
Prime Minister Boris Johnson went on the air on Saturday night in that surprise announcement and told everyone that there is a variant that is 70
percent more transmissible and that all of these areas in London are going to go into lockdown.
What I can tell you is it's very difficult to find and to trust the language of politicians on any side because that same Prime Minister who
went out and said, this variant is dangerous, it is out of control. We need to lock down was then on Monday addressing not just his own countrymen, but
really all of Europe and saying, don't worry, I don't think one driver sitting in an isolated vehicle is really much worry in terms of
transmissibility. Don't worry, you're not going to have shortages.
Don't worry, I'm going to solve this in a matter of hours on Monday. And here we are on Wednesday. I can tell you there has been a lot of
misinformation. There has been a lot of back and forth. It's very difficult to keep track.
Just to give you another example, Prime Minister Boris Johnson told us on Monday, there's 175 trucks parked on that motorway. Right now, we know that
there is between 8,000 to 10,000. That is a huge number difference there, and we still haven't heard from Prime Minister Boris Johnson about this
issue since that time.
This really gives you a definitive definition of those who rule and those who are ruled, those who have and those who do not have. If you had the
money to pay for a test, Richard, you could cross into France. That test costs about $200 -- 200 pounds maybe. These truckers don't have that money.
They're going to have to sit here and wait for days living on the streets until they can cross, until these authorities get it together -- Richard.
QUEST: Salma, thank you. Salma in Dover. Thank you.
European markets stayed optimistic despite days of chaos at the U.K. border. That ended -- it all ended on Wednesday's session higher.
Frankfurt and Paris saw the biggest gains. Zurich managed to squeak out a small win.
AstraZeneca submitted a full set of data on its COVID vaccine to U.K. regulators. The British Health Secretary Matt Hancock has called it the
next step towards a decision on deploying the vaccine which was co- developed with Oxford University.
Matt Hancock, the Health Secretary confirms the Pfizer-BioNTech vaccine is now being administered to residents of U.K. care homes. They're at the top
of the priority list. He says the vaccine is how Britain will escape the pandemic.
(BEGIN VIDEO CLIP)
MATT HANCOCK, BRITISH HEALTH SECRETARY: The vaccine is our route out of all this, and however tough this Christmas and this winter is going to be,
we know that the transforming force of science is helping to find a way through.
(END VIDEO CLIP)
QUEST: Jeremy Richardson is the CEO of Four Seasons Healthcare Group. He is with me now. So, how's it going? I mean, this is obviously the vital, I
would say, literally lifeline that is enabling homes, residential homes and care homes to sort of get back to a normality.
JEREMY RICHARDSON, CEO, FOUR SEASONS HEALTHCARE GROUP: Good evening, Richard. I mean, yes, I think I would just -- I'd take reference with one
word that you used there. I mean, the answer is that the vaccine will be the lifeline, it isn't yet, because to use a mountaineering analogy, we've
just left base camp and we're in the foothills here. We've got an awfully long way to go.
And as you know, we only have one vaccine at the moment, which is the Pfizer-BioNTech vaccine. It's difficult to administer. It needs to be
stored at very cold temperatures. At the moment, it's being delivered at 50 hub hospitals and it's taking time for it to be delivered.
So the challenge at the moment is to get on and vaccinate as many people as possible, but we've only just started the process.
QUEST: Right. But how much of the stuff can you get your hands on for elderly residents?
RICHARDSON: Well, if I give you some numbers, I mean, the U.K. has got about 800,000 doses at the moment. And to date, we have had administered
about 2,000 doses in our care homes, and that is split roughly 50/50 between residents and team members.
So about two percent of our residents, and two percent of our team have been vaccinated. So we've made a start, but there's an awfully long way to
go.
We're dependent and we are reliant really on the local authorities and the local N.H.S. trusts in England because whilst the announcement and the
procurement is made centrally, the delivery of all of these things is done through local government.
[15:15:10]
QUEST: So when AstraZeneca -- I mean, AstraZeneca is now being reviewed by the U.K. authorities, the data on that. That will be a huge benefit, not
only because many more -- the British government has bought many more AstraZeneca's, but it is easier for you to handle. It can be handled in the
normal way of vaccines.
So are you pinning quite a lot of -- hope is the wrong word -- but you know what I mean, on AstraZeneca vaccine coming on?
RICHARDSON: I think you're absolutely correct. Yes. I mean, there are two things that go in AstraZeneca's favor. One, we've got 100 million doses, so
substantially more. And secondly, it's much easier to handle and much more straightforward to administer.
So yes, I think there is much more hope that the AstraZeneca vaccine will be the one that really allows us to move out of this.
But again, there's still a logistics exercise of delivering it and we will make sure that we get people vaccinated as quickly as we possibly can. We
are dependent on third parties to make that happen.
So, you know, I think it's really important that people understand that there is this gap between perception and reality. Perception being that the
vaccine has been rolled out already. The reality being that it is being rolled out and it is going to take us probably two or three months to
vaccinate everybody.
QUEST: Jeremy, I think I may even know the answer to this before I ask you, but let's go ahead anyway. Any of your residents, elderly residents,
those who of course, are in the 70s, 80s and 90s, are any of them showing any reservations about taking the vaccine, the sort of grumblings that
we've heard from elsewhere?
RICHARDSON: Well, look, I can't speak on behalf of every individual, obviously, and we have to go through the process of making sure that we've
got consent forms in place for everybody. If they don't have capacity, we have to make sure that their next of kin has given consent for them to take
the vaccine.
But broadly speaking, no, the messaging that I'm getting is that everybody is desperately keen to take this vaccine. And the reason being, that they
see that as a way for them to get proper access to their families again.
QUEST: Right. Jeremy, one of the questions that's occurred to me, it is nearly Christmas, sir, I'll take the extra time. There is a difference here
between vaccinating some people in healthcare and things like that. But actually vaccinating those people who are most at risk, the elderly, where
the death toll has been the highest. Get COVID in your nursing home and it is a death sentence to the home.
There must be a tremendous feeling of, I don't know, of just relief for you and for the people there.
RICHARDSON: Well, I think I'd say a couple of things. First of all, COVID going into a care home is not a death sentence. So we saw substantially
higher deaths than average in April and May. That was the first wave of the pandemic.
Since June the 20th, our death rate has been below the five-year seasonal average. So yes, we have got outbreaks of COVID in a number of our homes at
the moment, but we're not seeing the same level of deaths and that's encouraging.
So I think care homes are now safe places to be. That's the first point that I would make. The second though around the vaccines is, absolutely,
you know, we're delighted that the vaccine is coming. We're delighted that that is going to give people access to their families, again, because
quality of life for people at the end of their life is as important to quality of life for other people.
And if I could make one plea to government, it would be that we focus our resources, which are not infinite in the areas that they're going to make
the biggest difference.
You're quite right to say that the people over the age of 80 have a 13 times higher risk of death from COVID. So focusing our resources there, I
think is where they are best deployed.
QUEST: Wishing you and your family the very best, sir. Thank you for taking time. Thank you.
A disgrace is what President Trump calls the newly passed coronavirus relief bill. He is suggesting he could veto it, just as several key
assistance programs are set to expire.
And a move that could reshape the entire IPO market. Direct IPOs. We will explain.
(COMMERCIAL BREAK)
[15:21:32]
QUEST: Breaking news. Now, Donald Trump has just vetoed the U.S. Defense Bill, the National Defense Bill, which Congress had passed with a veto
proof majority. He vetoed it for numerous reasons. He was upset over the fact that it didn't repeal a completely unrelated bit of legislation called
Section 230.
That's the bit that protects internet companies from being liable for what's posted on their site, and what Donald Trump said is if you do not
include a repeal of 230, I will not pass into law the Defense Expenditure Bill, well, they didn't and he has, but it is veto proof. In other words,
they could overturn that. Let's see what happens.
The New York Stock Exchange is celebrating after U.S. regulators have approved a new way for companies to go public. It is known as a direct
listing.
It means companies sell shares directly to investors on day one. They don't go through clearing banks, investment banks, underwriters and the like.
Those banks have taken the lead on pricing international and traditional IPOs and they get it wrong. You know, we've talked about this a million
times on this program.
Look at Airbnb, IPO 68, closing price, 144, Wednesday 162. DoorDash 102 -- I mean, you know bearing in mind -- bearing in mind that the banks are
supposed to price what the market believes. As you can see, it's not even anything close to relevant.
Earlier on "First Move," the Exchange's Vice Chairman said this is a watershed moment.
(BEGIN VIDEO CLIP)
JOHN TUTTLE, VICE CHAIRMAN, NEW YORK STOCK EXCHANGE: This is a game changer for the capital markets. We've been working for quite some time
with different market participants and stakeholders to create more pathways to the public markets, more tailored to meet company's objectives and
providing more access to investors and that's what the direct listing with a capital raise does.
You mentioned Spotify, that was the first company to pursue a direct listing soon followed with Slack, Palantir, Asana, and now what we're doing
is taking the very best of the IPO, which means the ability to raise capital and bring it together with the very best of the direct listing,
like what you saw with Spotify, and the ability to have efficient pricing and democratized access and bringing them together into a new offering.
QUEST: All right, now, I have railed and fumed for months, if not years of what I see as the incompetence of the banking system in pricing and the
investment.
These latest examples bring into ridicule the whole pricing mechanism. And you've got to say to the bankers involved, what are you thinking?
TUTTLE: Well, look for companies that value efficiency of pricing and the ability to raise capital, they now have a new option. We work closely with
the banks. The folks there are the best in the world at what they do. But we can see from time to time, there's often a big dislocation between where
share is priced and where the public values them when they open here on the New York Stock Exchange.
So again, for some companies, the well-worn path of an IPO is still an option. But for those that value the efficiency of pricing, which a direct
listing plus capital raise brings right now have that option.
QUEST: Just a quick -- a couple more quick points, how are you getting -- the Spotify was chaotic. It was beautifully chaotic. Don't get me wrong. It
had a wonderful majesty to the process of democratization. But I guess you don't want that every IPO.
TUTTLE: Look this is about bringing as many buyers and sellers together in one place at one time to find the best price to open a company's stock and
to welcome them into the public market in a fair, orderly and democratized way and that's what we're doing with the direct listing.
[15:25:16]
QUEST: One other things, you've asked the DMMs -- designated Market Makers to work remotely. Is this just because of regulation? Or has there been an
infection?
TUTTLE: Now look, from time to time -- you know, we're going to continue to monitor events here in New York and across the country. And from time to
time, we may dial up or dial back our posture here when it comes to the people we bring into the building.
And we're following very, very good safety protocols here. We want to lead from the front in showing companies how they can bring their workforces
back in a safe way. We brought our floor back online in May, and again, we're going to continue to monitor the events.
So if there is an uptick in the New York area or in other parts of the country, we want to be able to respond accordingly here at the New York
Stock Exchange.
(END VIDEO CLIP)
QUEST: John Tuttle talking to me earlier on "First Move."
Traveling for work is a distant memory for many. My next guest says business travel will come back and come back strong.
The Chief Executive of IHG, owner of Intercontinental Hotels and Resorts, he is with us.
(COMMERCIAL BREAK)
QUEST: More QUEST MEANS BUSINESS in just a moment. The Chief Executive of IHG Intercontinental Hotels tell me he is getting tired of video meetings,
he is and you are and that's why he thinks his business is going to roar back.
And Bollinger Champagne will be with me to raise a glass before Christmas. Which country is the biggest export market for Bollinger? Stay with us and
you'll find out.
You'll find out after the news headlines, because this is CNN and on this network, the facts always come first.
The United Kingdom health authorities say they have detected two cases of yet another new variant of COVID-19. One originally identified in South
Africa.
[15:30:07]
The British health secretary, Matt Hancock, says it's even more transmissible and appears to have mutated further than the other new
variant that was recently discovered.
He's announced new restrictions for travelers arriving in the U.K. from South Africa.
Iraq's criticizing President Trump's pardon of four Blackwater guards who were involved in a 2007 massacre saying the president did not take into
account the seriousness of the crimes committed.
Seventeen civilians including two boys were killed when Blackwater private contractors opened fire in Bagdad.
U.S. Attorney General Bill Barr said goodbye to his justice department employees on Wednesday.
CNN has obtained an internal email sent to the department. He wrote in part that staffers have risen to meet historic challenges and upheld a
vital mission to enforce the rule of law.
Well, breaking news. Donald Trump's vetoed the defense bill which congress had passed -- by the way, with a veto-proof majority -- all because of
section 230 in a completely unrelated piece of legislation that gives a defense or it gives protection, legal protection, to internet companies for
being sued for what's on their sites.
John Harwood is at the White House.
Now, as I understand it -- and, John, I know you'll correct me -- this is bizarre. There is no relationship to section 230 and the National Defense
Authorization Act.
JOHN HARWOOD, CNN WHITE HOUSE CORRESPONDENT: No relationship at all. The president was simply grabbing on that vehicle to try to play out his
attempt to hit back at tech companies.
Republicans tried to talk him out of it on the very basis of what you just said, this has nothing to do with the defense bill, we're all for the
defense bill.
So it passed with veto-proof majorities. And members had made arrangements to come back next week to override the expected veto. This has long been
signaled and people expected it.
The significance of actually seeing it happen though is this, Richard. Trump in the past has sometimes fulminated against bills, denounced them,
suggested or threatened that he would veto them and then simply not do it - - he's got a very short attention span.
We didn't know when he went after the COVID relief bill and the omnibus spending bill last night, which is needed both to distribute $900 billion
in COVID relief but also to prevent a government shutdown in the United States, we didn't know if he was simply ranting harmlessly or whether he
actually intended to take the bill down.
We still don't know the answer to that question.
But the fact he went through with a veto of the defense bill is a suggestion that maybe he's more serious than in the past about trying to
stop this bill.
QUEST: Right.
HARWOOD: House Republicans are on a conference call right now trying to figure out what to do next. They've all been, of course, thrown under the
bus because they supported this bill.
And we're just going to have to wait to see what the president does.
He is due to leave in about 30 minutes' time --
QUEST: So, John --
HARWOOD: -- for Mar-a-Lago to spend a few days of the Christmas holidays. And I think members hope that change of scenery could cause him to -- their
hope is that it could cause him to back off this veto suggestion that he's made on the COVID bill.
QUEST: This is a mess, isn't it? Essentially, the government -- congress had hoped that checks would be mailed next week. One assumes they're ready
to push the button to start printing them, if that happens, or at least do the direct deposits.
But bearing in mind it's Wednesday, Christmas is on Friday, that's not going to happen. We're now looking at the New Year.
How far, in your view, will Republicans in congress go to appease the president to get him to pass?
HARWOOD: I don't think they're going to appease him at all other than rhetorically trying to flatter him and convince him to do something
different.
The president's asked for much higher checks up from 600 per person to 2,000 dollars per person. Republicans oppose that, they cannot pass that
in the senate.
Nancy Pelosi immediately said yes, Mr. President, we accept your offer. That's not going anywhere because Republicans don't support it.
The question is whether the president tries to stop this bill or not. They could -- if he promptly vetoes the bill, Republicans, if they are committed
to it can override the president's veto.
They passed the COVID relief bill --
QUEST: Right.
HARWOOD: -- with more than enough votes in the house and senate to do that.
QUEST: So --
HARWOOD: But those members are very scared of Donald Trump and scared of his grip on their base. And if he actually goes to war with them on this,
he might be able to sustain that veto.
And if that happens, huge black eye for the Republican Party. And that's what they're worried about.
QUEST: John, so many questions that I wanted to get to; we will over the next couple of days on procedural issues.
Grateful to have you, sir. Thank you.
HARWOOD: (Inaudible).
[15:35:00]
QUEST: A top U.S. official tells CNN he wants more airlines to start testing passengers as the National Institutes of Health says testing should
now be the norm not the exception when it comes to international travel.
DR. FRANCIS COLLINS, DIRECTOR, U.S. NATIONAL INSTITUTES OF HEALTH: We shouldn't be thinking about travel restrictions just on the basis of some
new mutation, we would really like to try to prevent travel from being a case where the virus spreads more widely.
So the idea of having everybody who's doing international travel tested before they get on the plane and a few days afterward would make a lot of
sense. And it shouldn't take this new mutant to cause us to recognize that would be a really important thing to do.
A number of airlines have started to do that. If more did it, that would be a good thing.
QUEST: The chief executive of IHG Intercontinental Hotels told me the demand for business travel will bounce back some day.
Keith Barr joined me from London. He did so before the U.K. entered a stricter lockdown, tier four.
However, Barr says people are getting tired of Zoom conversations.
KEITH BARR, CEO, INTERCONTINENTAL HOTELS GROUP: That leisure demand is there and it's going to come back. We know it's going to come back strong
next summer when effectively the vaccine continues to be deployed.
So how do you access that demand and balance out for more measured recovery in business demand too? And so how do you make sure your brand portfolio
leans a bit more into leisure, into certain markets, and you're appealing to a different segment of customers too.
Because leisure's been the most resilient. We saw that after 9/11, we saw that after the financial crisis. We're seeing it today.
QUEST: Listening to you, Keith, you're still -- you still have a hefty dose of you believe business travel is going to come back.
I'm hearing from other people who've said it's he'll for leather for leisure.
BARR: Business travel, it will come back. I think the most commonly used words this year have probably been "you're on mute," right?
QUEST:
BARR: Everyone is just tired -- and I'd like to be sitting across from you right now, Richard, having a conversation.
We've talked about having our board meetings, how not being together over the dinner and having the sidebar conversations, how much we're missing.
The difficulty of reading somebody's body language in a group meeting of ten people on video -- people love to connect. It's in our nature.
And so business travel will come back. It will take time though and I think -- so we're not back to 2019 next year but groups, meetings and
events will come back. Business travel will come back.
There's places I need to go and people I need to meet with and the same thing for you. And so, I think it will look a little different.
I think there'll be more bleasure coming back as people are learning to -- I can work remotely and tie this with a family trip.
So I'm thinking next year I can maybe take another week traveling with my family, I'll work a week remotely. But we'll be in another destination
which I wouldn't have previously done. And so that could be good for our business.
QUEST: The CEO of IHG. Even in these difficult times, it seems Americans are still finding things to celebrate.
We'll speak to the managing director of the champagne company who tells me U.S. sales are on fire.
[15:40:00]
QUEST: Consumer spending in the United States has dropped for the first time since April and lots of companies are feeling the pinch. That much we
know.
A few are thriving. The holidays and the approach -- and expensive stuff.
Bollinger Champagne says the U.S. market is on fire.
Charles-Armand De Belenet-- is the managing director of Champagne Bollinger. He joins me from Exelon, Provence. Good to have you, sir.
Now this is interesting. Why do you think -- money's tight, times are hard -- are people sort of choosing to celebrate with expensive champagne?
CHARLES-ARMAND DE BELENET, MANAGING DIRECTOR, CHAMPAGNE BOLLINGER: Well, I think it's good news, it's good news for the champagne category.
Because the champagne market is on fire in the U.S. due to a big change in terms of consumption habit.
In the past, before the pandemic, champagne was mainly about celebration but now it's much more about enjoyment Belone with your friends, with your
family. And for that you are ready to spend quite a lot of money to get the best wines and the best food.
QUEST: Lucky in that the tariffs last year didn't hit you. And I guess you're also drinking a bottle of your own champagne because now that the
Biden Administration is coming in next year, it's highly unlikely that French champagne will suddenly be added to the list.
DE BELENET: Yes, we hope so. We had a tough year here already with the Brexit, the Brexit that should happen, let's see what will happen.
But we had the Brexit and we had -- we have as well the risk of tax in the U.S. But now it seems that it's going in the right direction, so we cross
our fingers.
QUEST: So what are you going to do? Let's say that there is a deal -- and we don't know what the deal is like but I'm looking at your list. Your top
ten exports of champagne generally are the United Kingdom.
So what are you -- what is your plan for January the 1st and going into next year since you don't really know whether there'll be a deal or not?
DE BELENET: Yes. So what we had to do is to forecast a hard Brexit. So what we decided to do is ship two months of stock in the U.K. before the
end of the year. So we were extremely busy the last two months.
But now on a mid-term perspective, we believe that it won't change a lot because there is a strong love story between champagne and U.K. wine
lovers. So we don't believe that it will change next year.
QUEST: Times have been so just downright difficult over the last year and France is in a dreadful situation tonight -- the U.K. is, the U.S. is.
Do you think people when they -- on New Year's Eve, they lift a glass of Bollinger champagne or whatever, do you think that they are just
celebrating the end of a horrible year, are they -- what hope goes with them for next year, do you think?
DE BELENET: Well, I think it won't be about celebration because there was almost nothing to celebrate during 2020.
But I guess, once again, it's about having good time, quality time with your family and your friends. And for that a glass of Bollinger is perfect
for that.
So that's why we're quite confident for this end of the year.
QUEST: Are you enjoying a glass of your own beverage?
DE BELENET: Yes. Yes, I do. It's 9:00 p.m. in France. So it's a perfect timing for having a glass of Bollinger.
QUEST: Right -- steady on, steady on. The reality is your Bollinger is expensive. There are -- don't have a have a drink at the thought of this -
- but there are cheaper and there are, heaven forbid, sparkling wines of good provenance from elsewhere in the world.
Why do you think people still go for the big names?
DE BELENET: I think it's all about taste, it's all about taste. At the end of the day, Bollinger, it's a very specific taste. It's about power
and elegance and it's a very unique taste.
[15:45:00]
So it's very difficult to compare with other wines. And it's recognized as a great taste. And that's why this year we were extremely lucky to be
selected as one of the top ten wine by the "Wine Spectator."
So when you have the quality, then you're ready to pay the price.
You say that it's expensive --
QUEST: Right.
DE BELENET: -- but, in fact, a bottle of Bollinger is around $50. But we age it during at least four years and everything is done by hand. It's
about craftsmanship.
So it's very good quality for money.
QUEST: Well, a toast to 20 -- I don't have any Bollinger, not that I can see around the studio -- but I have got a French sparkling water so it'll
have to do. I wish you, sir, all the best.
Salut to the New Year. Thank you for joining us.
DE BELENET: Thank you so much. Merry Christmas. Bye-bye.
QUEST: And to you.
Now though food and drink excesses are common at this time of the year and while you can be forgiven for indulging during the holidays, food waste is
something that we must all actively work to prevent.
Selina Wang has more. It's today's "Eco Solutions."
(BEGIN VIDEOTAPE)
SALINA WANG, CNN CORRESPONDENT : Nine a.m. in Tokyo's Toyosu fish market. The biggest and best fish sold hours ago; customers are mostly gone, too.
But not Masakura Ugiyama (ph), the restauranter is hoping to buy whatever is left. Fish that are misshapen, dented or slightly discolored.
FUTOSHI NAKAMURA, PRESIDENT, MUGEN & CO-FOUNDER MOTTAINAI PROJECT (Through Translator): Three billion yen worth of fish is thrown away every year
because it isn't standard or is unpopular.
We wanted to open a restaurant which let people know about this waste fish and eat well at low prices. This is why we started the Mottainai Project
restaurant.
WANG: Mottainai is a Japanese word inspired by a centuries-old concept rooted in the Buddhist philosophy of respecting the value in all things.
NAKAMURA (Through Translator): The word mottainai includes several meanings. One of the meanings is what a waste. For example, we use mott
when we throw away food that is still edible.
WANG: It happens more than you think, even in Japan. Nearly 6.5 million tons of food are wasted here each year, according to most recent government
data.
Here there's a value in everything. And customers clearly don't seem to mind mottainai.
Elsewhere in Tokyo, technology helps. Kazuma Kawagoe is a former chef turned start up founder.
His app, Tabete, matches users with eateries offering discounted food before it's thrown away.
KAZUMA KAWAGOE, CEO, CO-COOKING: We thought creating an app would be the most suitable way to make people recognize the problem of food waste and to
start a social movement.
WANG: Tabete launched in 2018. It's especially helped bakeries which sell products with short shelf lives.
Users, too -- more than 300,000 people have signed up so far.
Ugiyama sees this mottainai movement taking hold across Japan because, as he put it, why waste a good thing?
WANG (Voice Over): Selena Wang, CNN.
(END VIDEOTAPE)
QUEST: The Czech Republic. Tough new COVID restrictions set to take effect. In just a moment, we'll discuss with the president of the Czech
Chamber of Commerce.
(COMMERCIAL BREAK)
[15:50:00]
QUEST: The OECD's current secretary general says he hopes for a return to multilateral talks, trade talks, next year.
If it comes to pass, it'll be one of these ten candidates that will see it through. Member nations will make the decision early next year with a new
one by March.
Vladimir Dlouhy is the Czech Republic's candidate and president of the Czech Chamber of Commerce. He joins me now.
Sir, why do you want to be head of the OECD? And before we get to that, which we will, if we look at the situation in the Czech Republic at the
moment, the COVID situation is truly dreadful and you have one of the worst situations in the Western Hemisphere.
VLADIMIR DLOUHY, PRESIDENT, CZECH CHAMBER OF COMMERCE: Hello. Thank you very much for inviting me, Richard.
Well, of course, we are struggling very hardly (ph) with COVID. Were one of the best in managing in Europe in managing in spring than we relaxed
probably too quickly over the summer.
Were hit by the second wave in the autumn. And now we came to a rather painful understanding that COVID is going to be with us all the time,
probably over next three to six months before the vaccination really takes place.
And we must get used to that and we must work with that.
But I don't think Czech Republic is in particular a kind of outlier. Because if you look at the numbers around us, Germany currently, Austria
and others, they are struggling.
Maybe we were a little advanced, so to speak --
QUEST: Right. So --
DLOUHY: -- in being mostly hit. But I believe that we are not outlier, just Europe is struggling with COVID again.
QUEST: The OECD -- and if you were to become the secretary general at a time of great uncertainty and change, what would you do?
DLOUHY: Well, I think reacting to COVID is the most important thing for whoever becomes to be new secretary general, he or she.
He will have to steer the institution to do what OECD is known to be doing best. Provide excellent database analyses and provide best possible
recommendation for the policies.
And the policies are about mitigating the economic impact over the next three to six months -- when I said I expect COVID will be still with us,
probably over the whole next year before global vaccination becomes to be effective --and then, obviously, to restart the economy globally again.
And I believe the most important thing is here is to invest, to invest, to invest.
Because with the public programs to allow the investment to attract the foreign capital and, of course, understanding that there will be some kind
of a creative destruction (ph) so the help, the support must be very much targeting exactly to those who need it and to those who can assure the
restart of the global economy.
QUEST: And finally, briefly, do you expect the business environment -- how long do you expect it to remain pretty dreadful?
DLOUHY: I believe that it's going to be difficult over the whole next year, whole 2021.
And of course, it depends how long we will be struggling with the pandemics as we have been struggling at least in Europe but also in the U.S. over
past few weeks.
And I believe that -- I don't want to be a messenger of the bad news but probably we will have the period when the problem of liquidity is going to
move to the problem of solvency of many companies.
[15:55:00]
So I expect a rather difficult first half of the next year, stabilization in the second half of '21 and hopefully when the policies also including
also the debt relief for the most hit countries, especially in the developing world --
QUEST: Right.
DLOUHY: -- I hope that this policy will restart the economy at the beginning of 2022.
QUEST: Good to have you, sir. We'll talk more as and when you proceed to the next round. I'm grateful to your time tonight.
I wish you and your family the season's greetings. And --
DLOUHY: The same to you. Merry Christmas, and hopefully --
QUEST: Thank you.
DLOUHY: -- the next year is going to be better. Thank you.
QUEST: Well, yes -- thank you. We certainly hope that.
I was about to say it couldn't get much worse and then I suddenly remembered it could always get much worse.
Good to see you, sir.
We will take a "Profitable Moment" after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's "Profitable Moment." This is the last time before Christmas that we'll be together.
Yes, I'm with you tomorrow. But that's more QUEST MEANS CHRISTMAS than any business news or QUEST MEANS BUSINESS.
No, no. Essentially, this is the last time before Christmas. And it's a good opportunity for us just to think about what we've heard tonight.
How good that we've heard from Bollinger Champagne, the expensive stuff, they're having almost a record year. People are buying it. Not just to
celebrate but to commiserate and be grateful for what they've got.
And also tonight, we had the CEO of the care homes. Just imagine just the sheer relief, the gratitude, the wonderment of giving a vaccination to
those most vulnerable. Those in their 70s, 80s, 90s who are most at risk of when they get COVID it could be the end.
Those two stories alone give us reason to be a little bit more cheerful tonight.
And even if you haven't got a bit of Bollinger, well, at least we can all just take a few seconds to think, to pause, and to celebrate.
It's not going to be an easy Christmas. Many of you aren't with your friends and families, I'm not. But we're going to get through it and we'll
be through to next week.
So it just remains for me to say -- look,, I don't have any Bollinger -- I'm back to the Perrier once again, the sparkling water.
That is 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.
I'll be with you tomorrow for QUEST MEANS CHRISTMAS, I hope you'll have a chance to join me then.
We're just about at a record, the closing bell's ringing. The day is done.
END
