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Quest Means Business
Forecast Shows India's Death Toll Could Hit 13K A Day; Turkey Prepares For Its Toughest COVID Lockdown; Bank Losses From Archegos Fallout Top $10 Billion; Florida Authorized Sports Betting In Deal With Seminole Tribe; CDC Gives New Outdoor Mask Guidance For Fully Vaccinated People. Aired 3-4p ET
Aired April 27, 2021 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:24]
RICHARD QUEST, CNN INTERNATIONAL ANCHOR: Three o'clock in New York. We have an hour of trading left on Wall Street. And the Dow, look at the numbers,
the Dow has been in the red for most of the entire session, and eking out a small gain as we head to the final close, but it will be interesting to see
if it can hold that -- and 34,000 is also a dodgy number that will be interesting to see if we hold it before the day is finished.
The numbers in the market and these are the main events. President Biden says it's time to repay the favor and help India fight its coronavirus
surge.
The chaos from Archegos grows ever larger, banks have now lost more than $10 billion.
And Tesla's record profits. They got a hefty bump from Bitcoin.
We are live in New York. It is Tuesday. It is April 27th. I'm Richard Quest. And of course, I mean business.
Good evening. In India's time of need, the United States has vowed to return the favor. President Biden is offering to share his country's
surplus vaccines. In the last hour, Mr. Biden noted that India was there for the U.S. in the early days of the pandemic and said he has assured
Prime Minister Narendra Modi, American help is on the way.
(BEGIN VIDEO CLIP)
JOE BIDEN (D), PRESIDENT OF THE UNITED STATES: I've discussed with him when we'll be able to send actual vaccines to India, which will be my intention
to do. The problem is, right now, we have to make sure we have other vaccines like Novavax and others coming on probably. And I think, we will
be in a position to be able to share -- to share -- vaccines as well as knowhow with other countries who are in real need.
That's the hope and expectation.
And I might add, when we were in a bind at the very beginning, India helped us. Thank you.
(END VIDEO CLIP)
QUEST: Now, India is certainly in need of desperate help. The country is facing an unprecedented level of COVID-19 deaths. It is struggling with low
supplies of oxygen, and the hospitals are simply overwhelmed bordering on collapse.
Please, I do need to warn you what we're about to show you is disturbing. So look away if you wish, and I'll tell you when we're back.
These are pictures of a parking lot in New Delhi. It is a makeshift crematorium. The country says, nearly 2,800 people died of COVID-19 on
Tuesday. It also reported more than 323,000 new cases, the first decrease in a week.
I'll have you rejoin us because deaths lag infections, the worst is still likely to come. A statistical model from the University of Washington is
predicting the death rate could reach 13,000 per day. At the same time, those first shipments of medical aid from the U.K. and elsewhere have
arrived. France, Germany -- you see Lufthansa there -- Bhutan, and many other countries offering and delivering support along with corporations,
Microsoft, Apple, Google, pledging donations.
Vedika Sud is in New Delhi and joins me now.
The situation, Vedika, we know it's bad, and we know that as I just said that the deaths will follow the infections, and the infection rate is
rising. So, the help that's arrived, how is it being disbursed?
VEDIKA SUD, CNN REPORTER: Yes. We've heard that the first tranche has arrived from the United Kingdom. Help from Germany is on the way, and like
you mentioned, from France and other countries as well. So that has been taken to different parts of the country already. But that's just a small
percentage, Richard, at this point in time, because there is a colossal need for oxygen supply, medicines and other materials here in India.
I was at a crematorium yesterday, and I was at a hospital, and the firsthand account I had was extremely disturbing because you could see
young children at these crematoriums and they were there to say their final goodbyes to their parents. A mother had expired, someone else's father,
sisters, brothers, all of them there.
And from 10 o'clock in the morning local time, there were just bodies that were coming in. They were piled up. They were waiting to be cremated and
the final rites to be completed.
[15:05:04]
SUD: At the hospital that we went to, we were outside a COVID-19 critical care ward, and we saw so many people just drive up there in their cars, in
the back seats they had their family members gasping for breath, Richard. They were begging for a bed. They were begging for oxygen supply. And they
were told that neither a bed is available, nor oxygen supply.
These is a report from three places that I went to yesterday, a crematorium -- a makeshift crematorium. Just imagine, while those deaths are taking
place in a hospital, we have these makeshift crematoriums that are being constructed to make sure that there's enough space for the final rites to
carry on and then to a hospital.
(BEGIN VIDEOTAPE)
VEDIKA SUD, CNN REPORTER (on camera): These raging fires will continue all day and through the evening. The surge in cases has been so much that there
is a waiting list for these bodies to be put on the pile by family members.
There's a queue outside just waiting for the final rites to end for a family member who has died of COVID-19.
Body after body being brought into this crematorium in India's national capital of New Delhi that has seen a huge surge not only in cases, but in
fatalities as well. Family members pulling out bodies such as this one from ambulances lined up on this crematorium ground and taking them for
cremation.
They have grown up with these people. They've lived with them, and now, it's time to say their final goodbye.
NEERAJ PAL, UNCLE DIED OF COVID-19 (through translator): My uncle died at about 11:15 p.m. on April 24th. The hospital did not inform us. When we
called the help desk, we were told he is no more.
SUD: One of the most heartbreaking scenes I witnessed was when a 27-year- old was picking up the ashes of his 49-year-old mother. His brother is still in hospital recovering from COVID-19, while his father has just got
home after recovering from infection.
(END VIDEOTAPE)
QUEST: So, where is this going, Vedika? If we look at the current situation, are there measures in place now to prevent further infections?
For instance, just a month ago, tens of thousands of people packed the world's largest cricket stadium named after the Prime Minister. Look at the
pictures.
Now, what we are experiencing now, of course, in terms of infection and death arguably is the result of these types of events from matches of
England and India earlier in mid to late March and those sort of events.
So are they now taking strong lockdown measures to prevent further infection?
SUD: Well, the Modi government has made it clear that there will be no national lockdown coming up any time in the future. What has happened is
that partial lockdowns that have been announced by various states and cities to make sure that the worst-affected states and cities at least have
the lockdown in place, and they are not even calling it a lockdown because they fear this would create panic amongst people, so they are just calling
it a curfew here in India.
But you're right, Richard, it's not just that cricket game that we saw, entire series had been played here in India. There was this biggest
religious festival called the Kumbh Mela that takes place in Northern India, usually it is a four-month festival that was truncated to a month
and that was the excuse given from the Indian government for carrying it on further.
And from that very festival, there have been thousands of cases reported of people being infected because they were taking a dip in the Holy Ganges
River here in India, shoulder to shoulder. You had weddings and worse than that, you had political gatherings.
Politicians who should be at the forefront saying you know what, keep your distance, wear your masks, and don't gather, they are the ones who were
leading those election rallies and campaigns with thousands following them.
So, yes, there are measures in place now, but too little too late is what medical experts say here -- Richard.
QUEST: Vedika, thank you, in Delhi. Dr. Sangita Reddy is with me, the joint Managing Director of Apollo Hospitals, which is India's largest private
healthcare system, former President of the Federation of Indian Chambers of Commerce and Industry with me from Hyderabad.
Doctor, thank you. The situation is grave. When we hear numbers of 2,000 or 3,000 people a day dying in India, do you give those numbers credence? Or
is the death toll much higher, do you think?
DR. SANGITA REDDY, JOINT MANAGING DIRECTOR, APOLLO HOSPITALS: So, hi, Richard. It is, you know, undoubted that India is in the middle of an
extremely complex and very grim situation. And, you know, our data on death and India's ability to capture data is quite accurate, albeit there may be
a few days lag. But I think that the numbers must be near accurate.
The problem is that these deaths are now focused and concentrated in a few points, like right now Delhi is in the eye of the storm. And therefore, it
is creating the type of disturbing visual images that you saw, and the very sad reality of what is happening.
[15:10:12]
QUEST: So, in terms of your hospitals, which are the private sector, over 60 of them there, what are you short of at the moment? I'm reading that
you're not short of some medications and you've still got your capacity to add beds. So what are you short of? What do you need now?
REDDY: So, a few days ago in Delhi, we were not short of oxygen, but we were worried because every few hours, we have to keep making sure that we
got fresh supplies. There was a temporary shortage of remdesivir, but besides that, actually the Indian supply chain and manufacturing capacity
of the pharmaceutical sector has been pretty good.
In addition to the fact, India is capable of producing PPEs and masks, something we did not or could not do a year ago and this capacity and
capability has been built up as well. I think the biggest thing, which is under strain and stress, is the medical manpower itself. It's doctors and
nurses who are stretching themselves because every single health system has added beds.
We are currently operating over 4,500 beds for COVID, but in addition to that, we are doing over 5,000 patients in home-care and telemed kind of
treatment. We have taken up hotel rooms, almost 3,500 hotel rooms and put medical devices and clinicians in those to supervise patients over there,
so everybody is stretched.
I think that the biggest factor is there, but in addition to that, we are on the brink of various other shortages, and therefore all the global
outreach for, you know, to give us oxygen tanks, to give oxygen concentrators, all of these are very welcome and very appreciated.
QUEST: But they can't get there fast enough, and a country the size of India with a population the size of this country, at best, it is a drop in
the bucket. A welcome -- don't get me wrong -- a welcome drop. But as I understand what you're saying, there really is no solution other than to
wait this out with resources you have got and will get, and bear the consequences.
REDDY: So, I mean, in a way it is what is inevitable, but I don't think we're going to just wait it out. Everybody is finding ways to innovate, to
do more, to care more, to help more. And I just want to put one data point in front of you so that the world appreciates the fact that India is
actually capable of producing as much oxygen as is required.
The actual fact is that before COVID, India's demand for oxygen was about 700 metric tons per day. The demand jumped to almost three times that
during the first wave. But now it's gone about seven times. It's about 5,500 metric tons. But India produces 7,000 metric tons.
What we did not have was the ability to have tankers to move this from the production to the point of requirement or cylinders. But I think
governments and corporations have swung into action. Industries are stopping use of oxygen for manufacturing for a while and putting all the
output into the medical grade. And I believe we will be able to -- I can't say completely tide over, but definitely minimize the extent of the
suffering and the shortage, and that's what everybody is working on right now.
QUEST: Sangita Reddy, thank you. We will talk more. We will come back to you later in the week for an update on what's happening in your hospitals.
And I'm grateful that you've spoken to us tonight. Thank you.
Now, Turkey is preparing for its toughest lockdown yet, which starts on Thursday. Schools and restaurants are going to be closed for three weeks
and travel between cities will require prior permission.
And, yet, one exempt group will be tourists. Jomana Karadsheh is with me from Istanbul.
Now, how is this going to work where -- I mean, assuming tourists will want to go, but logistically, how is it going to work that tourists will, to
some extent, be exempt from this lockdown?
JOMANA KARADSHEH, CNN CORRESPONDENT: Well, you know, Richard, they have been doing this with the partial lockdowns that we have seen in the past
where much of the country would be under, for example, a stay-at-home order over the weekend, yet, tourists in the country are exempt, they are allowed
to go around. You should have your passport at hand so that if people are stopped, you can show police that you are a tourist in country.
[15:15:04]
KARADSHEH: There have been warnings that foreign residents of Turkeys are not exempt and that they should not be abusing this exemption. But,
Richard, I have to mention, this is the strictest lockdown we have seen so far. Turkey's government has really been trying to avoid this since the
start of the pandemic. They have really wanted to try and avoid a full shutdown because of the state of Turkey's economy.
As you know very well, it just can't handle a full lockdown.
But now they are at a point where they have had no other alternative. The numbers have been going up to unprecedented levels. You've got the tourist
season coming up. So, they are at a point now where we heard from President Erdogan saying that they need to bring the numbers down to below 5,000
cases a day or else they're going to be left behind.
If you look at what's going on in Europe where he says most of Europe is beginning this phase of reopening; if they are not able to do the same, get
the infection rates down, Turkey is going to be left behind in sectors like tourism and trade, he says, will be hit really hard.
QUEST: Jomana, that's all fair and good. But it raises the question -- I mean, I was in Istanbul just a few months ago where there wasn't an air of
normality about it, but there was certainly a more relaxed air about it, which begs the question, where did it go wrong? What did it not do that
enabled this wave?
And I realize Germany had the same problem, but it got on top of it. The U.K. had the same sort of issue. But what was unique about Istanbul or
Turkey's?
KARADSHEH: Well, Richard, when it comes to this specific wave, if you talk to health officials in the country, they would blame this on the very first
variant identified in the U.K. They say it spread really fast and this is what happened.
But also at the same time in March, and I believe probably this is around the same time you were in Istanbul, this is where they started opening up
the country again, relaxing a lot of the restrictions. It was a phase of normalization, as it was called at the time, and there was some level of
complacency, whether it's from the population, people here, or also officials accused of doing the same thing with mass public gatherings that
were taking place, political rallies that may have been criticized for.
And, at the same time, Richard, they opened up indoor dining, restaurants, cafes, and, yes, people were wearing masks when they are going around, but,
really, it was -- it felt that it was going too normal too fast. So this is probably one of the big contributing factors to these unprecedented
numbers. We're talking about more than 60,000 cases a day that were being registered in mid-April.
Now, the numbers are down to about 40-something thousand after a two-week partial lockdown, and a very ambitious number set by President Erdogan
getting below 5,000 cases and they have to do this rapidly, really fast, he says, to basically try and bring in the tourists and the foreign currency
this country really needs.
QUEST: And that of course, time is not on their side, bearing in mind that the way much of other countries are reopening.
Jomana, come back, of course, we'll talk more as the week goes on, and we'll see how that lockdown bites.
QUEST MEANS BUSINESS tonight, Bitcoin has helped propel Tesla to record profits that is on its earnings and Elon Musk's new TV performance.
(COMMERCIAL BREAK)
[15:21:16]
QUEST: Banks and financial institutions now say they have lost more than $10 billion from the collapse of the hedge fund, Archegos. UBS and Nomura
are the latest disclosing the extent of the damage. Now Credit Suisse is the hardest hit at $5.5 billion. Paul La Monica is with me.
Archegos was a family office. It was a hedge fund basically investing a family fortune and doing so in a risky basis using leverage and borrowed
money. Am I right in understanding these were the banks that lent them the money?
PAUL LA MONICA, CNN BUSINESS REPORTER: These were some of the banks. There are obviously several more that could still take some hits as well. But
obviously, you have Credit Suisse getting squeezed -- now, say that five times fast -- really by the collapse of Archegos and that has led to a
massive hit, executives being forced out of the company.
And I think there are a lot of questions, Richard, about whether or not regulators including the S.E.C. need to step in and do more do try and
prevent some of these problems at family offices, which typically don't get regulated by the S.E.C. in the same way that mutual funds, pension funds,
hedge funds are already.
QUEST: It is worth putting out, the phrase "family office" refers to an investment firm or hedge fund that is basically set up by very rich
families or institutions to run their own private investments. But it's hard to understand how a private fortune or even a large fortune can end up
borrowing $5.5 billion or have leverage debt of $5.5 billion to one institution.
LA MONICA: Yes. It is a staggering amount of money, Richard. But obviously these are companies that typically are founded by respected, high net worth
individuals with a Wall Street pedigree. So those are the people that tend to wind up getting more leverage, more lines of credit from large financial
institutions.
And that may not be a problem in and of itself except when these firms and this particular family office make gigantic bets on one particular sector,
I mean, you look here at what caused Archegos to blow up, and it was these huge bets on Viacom, on Discovery, on Chinese internet stocks.
It really was a bet on media and streaming that went awry. This is not something that happens if you have a diversified mix of investments in an
index fund or throughout just a larger collection of companies in a disparate group of industries.
QUEST: Extraordinary amount of money. Thank you. Paul La Monica, I appreciate it.
Tesla shares are slipping after Elon Musk warned that the chip shortage is creating difficult supply chain issues. Tesla is now down around four
percent, still up of course as you can see overall.
The company and its and staff technically have a cause to celebrates, the bet on Bitcoin has paid off, reportedly record quarterly profits and
adjusted earnings now reached a billion dollars.
Clare is with me. Clare Sebastian, how much of Bitcoin -- I mean, if they hadn't built and sold a car, they'd have made more money because of the
Bitcoin.
CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT: Yes. I mean, Bitcoin was profitable for them in the quarter, Richard. They bought $1.5 billion worth
of Bitcoin, famously. They sold about 10 percent of that. Elon Musk actually tweeted about this today. He said, they sold it to prove liquidity
of Bitcoin as an alternative to holding cash on their balance sheet.
So apparently, they sold it not to make money, but simply to prove that they could make money from Bitcoin, and they did.
The positive impact on profits were about $100 million. Overall net profit is about $438 million, so you can see that that's sort of almost a quarter,
and the other thing that some investors are looking at is the idea of regulatory environmental credits.
Tesla gets extra of those because of course, it beats its carbon targets and it can sell those to other automakers, and it made more than $500
million from that in the quarter.
But, this was a good quarter for their auto business as well, margins increased. It was a record in terms of profits and sales were up 74 percent
year-on-year, so the seventh straight profitable quarter for Tesla, Richard.
They factor in those environmental credits anyway. So that's why this is being seen by some as a positive quarter. The Street though taking a little
bit of a breather today.
QUEST: If we strip out Bitcoin and we strip out all the credits, Clare, just focus on the fact that it is a car company, a car manufacturer. If
what I get -- if what I hear from you is right, it's actually doing quite well as a car manufacturer.
SEBASTIAN: And extraordinary, Richard, it was only two years ago that they were not making a profit sustainably. We were questioning the whole thesis.
Not to say that there aren't challenges today, but as I say, the third straight record quarter when it comes to profits, seventh straight quarter
of profitability there. They are now in the S&P 500.
They are producing cars in china. They are going to be producing in Germany and building a factory in Austin.
The key challenges though, Richard, I think that we really have to talk about China. This is a country where Tesla was given a lot of access and
they are now hitting a lot of hurdles.
QUEST: And "SNL - Saturday Night Live," an institution, a rite of passage for stars, celebrities, politicians, and business leaders in this country.
Elon Musk is to present along with Miley Cyrus on May the 8th. That's all we know about it so far. Do we have anything of what was in the monologue
or what's going to be -- and do we have anything?
SEBASTIAN: Well, we know that there has been a bit of a backlash, Richard, against it. It sparked some controversy online including from some of the
performer who has taken part in "SNL" who would be performing alongside Elon Musk.
Now, he is not the first person to spot controversy when it comes to "SNL," Donald Trump when he hosted it back in 2015 was enormously controversial.
And of course, the things that people are talking about are Elon Musk's comments on COVID, playing down the pandemic a year ago. Recently, some
controversial comments on the vaccine have made people talk about whether or not he actually deserves to be part of "SNL."
But interesting because, look, it is part of the cultural zeitgeist, Elon Musk is too, and I think certainly, it won't be bad for ratings.
QUEST: Clare Sebastian, who will watch it as the rest of us and talk more about it. Thank you, Clare.
After more than a year, the C.D.C. now says fully vaccinated people in the United States can take their masks off in small outdoor gatherings. The
President says it's a great reason for more Americans to get the shot in a moment.
(COMMERCIAL BREAK)
[15:30:12]
QUEST: Vaccinated people in the United States can go maskless at small outdoor gatherings according to the CDC. The President says it's a sign of
what he's calling stunning progress in the fight against the virus and it's a good incentive to get the shot.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES: The bottom line is clear. If you're vaccinated, you can do more things more safely, both outdoors as
well as indoors. For -- so for those who haven't gotten the vaccination yet, especially if you're younger, or think you don't need it this is
another great reason to go get vaccinated.
(END VIDEO CLIP)
QUEST: Elizabeth Cohen is CNN senior medical correspondent and joins me now. I've read the CDC guidelines on the Web site. I mean, there are some
quirks in it in terms of what you can do indoors and outdoors and this event or that event. But the thrust is basically if you're outdoor, if
you've been fully vaccinated after the two weeks, you can dispense with this went outside.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: -- Richard, so let's get to that. Let's look at exactly what the CDC guidelines are saying. And
let's look at whether President Biden is right. Will people hear about these guidelines and think, ah, now I'll get vaccinated. So, let's take a
look. The CDC is saying in small outdoor gatherings, vaccinated people don't need to wear masks, even if they're hanging out with unvaccinated
people.
If you're not vaccinated, well, you should still wear a mask. If you're dining outdoors vaccinated people don't need to wear a mask, even if
they're dining with people from multiple households. If you're not vaccinated, you should wear a mask.
Now I will say for large gatherings, like an outdoor concert vaccinated people are being told that they still do need to wear masks. And in
addition, the CDC is saying that indoors, everyone should be wearing masks when they're doing things like going to restaurants or movie theaters or
malls.
But that those activities, even if everyone's wearing a mask are riskier for unvaccinated people. And again, we've heard President Biden say, well,
you know, we hope that these changes will make you say, oh, wow, now I'm going to get vaccinated. It's unclear if that will happen. It's unclear if
this will be the incentive that will make people change their minds. Richard?
QUEST: No, it won't. If you're anti-vax. My guess is -- you just take your mask off regardless. So, I mean, that's what's going to happen, isn't it?
This is going to be taken as a green light to take the mask off regardless.
COHEN: You know, I think that people who are really, truly anti-vaxxers, they're not going to listen to any of this, and they're not going to get
vaccinated. And that's not who the CDC is going for. They're going for that group that sort of in the gray area. They're hesitant, they're not sure,
they have a lot of questions, and they're hoping that this is sort of the carrot that gets them to say, ah, now I'll get vaccinated. But I share some
of your skepticism there, Richard.
I think that there are a lot of people in this hesitant category who were already eating outside without wearing a mask, who were already going to
gatherings, you know, small gatherings outside without wearing a mask. So, I don't know how much incentive this is because I think these people may --
maybe aren't wearing or already unmasking.
QUEST: Elizabeth Cohen, joining us. Thank you. Businesses will be expected to adapt to these new CDC guidelines. Jim Allen's with me, the chairman of
hard rock International. The company has worked with health officials to develop its safe and sound program for hotels and casinos. And it includes
social distancing, increased cleaning and touchless in room dining. Now, Jim in July, I spoke to you when cases were climbing in Florida, so it's a
long time ago.
You said you're prepared to close your door if that was necessary. This is what you tell me then.
(BEGIN VIDEO CLIP)
[15:35:04]
JIM ALLEN, CHAIRMAN, HARD ROCK INTERNATIONAL: I think it would be unfair to not suggest that yes, it is starting to become alarming and something like
revealing a potential -- taking a major step back, or even an additional closure is something that we're going to be talking about on a daily basis.
(END VIDEO CLIP)
QUEST: And so Jim's with me now the chairman of Hard Rock International. As you talked through this over what was the bad winter of rising numbers, how
does the company look today? What did you close? What did you have to deal with?
ALLEN: First of all, Richard, thanks for having us again. It's amazing how your July seemed like it was yesterday. But certainly, we've been very
fortunate here in Florida. When we think about the Hard Rock brand, we obviously think about it globally in over 70 countries. But Florida,
frankly, we did see some spikes. But it never got to the point that we needed to reclose any of our facilities.
And to the contrary, you know, I think Florida became a state where people were comfortable to utilize a mask but also have the common sense to
recognize that COVID is something that is very important to deal with in the appropriate way. And (INAUDIBLE) our business is actually up and up
significantly here in Florida.
QUEST: And if we look at the business overall and the way in which you are now preparing, obviously, in the U.S. and elsewhere for reopenings and
doing so safely.
ALLEN: You know, I think the business overall is still down significantly, specifically in the cafe and the hotel divisions. When we look at the
regional gaming markets here in the United States, the business is actually exceeding expectations, including -- I'll give you an example like we have
a new facility in Sacramento that's been open a little over a year now. It's actually exceeding its projections, where we thought it would be after
you know, six, seven, eight years.
So, regional markets are good. But the basic restaurant say like the Hard Rock in Times Square is still not even open. And many of our locations in
Europe still not even open. London for all intents and purposes, virtually close including our hotel there. So, as we look at the global footprint,
right? The business is still extremely challenged.
QUEST: And this is why the new treaty, the new agreement with Florida and with the tribes, the Seminole tribe is going to be so important as you
increase your gaming footprint in places like Florida.
ALLEN: You know, I think the compact obviously is receiving, you know, a lot of coverage since we signed it with Governor DeSantis on Friday. But
the reality is the footprint, the brick and mortar, the land based business is not changing at all, frankly, the previous agreement that we had
negotiated with the State of Florida, under regulatory curses regime. But what has changed is in this compact, we have the ability, subject to
ratification by the house in the Senate to offer sports betting, not just in our facilities, but on a mobile basis.
And obviously, that's a game changer for us. And that does expand the scope here in the State of Florida. But it is limited and (INAUDIBLE) to Florida
only.
QUEST: If we -- if we look at the company, if we look at the company of which you are head, what to you is the most significant part of it for the
future? And I know you're going to tell me how can you choose between your children to that extent but, you know, you are a CEO who has to make the
Chairman, you are the boss that has to make decisions on where you are going to put the firepower.
If that is the case, is it going to be bricks and mortar? Is it going to be sport betting? Where are you aiming for?
QUEST: So, I think if I take my hat off in my role with Hard Rock and seminal gaming, and as I look at it as an industry executive, I think
clearly one has to focus on the digital side of the business when you look five, 10 years and beyond.
But I think we are so fortunate because of the tribe sovereignty and the State of Florida growing to projections of 30 million people. And because
this particular agreement that we just signed, once again, I want to know which it still needs the House and the Senate's approval.
But I also should -- want to know is that we've been working with both of these chambers for quite some time but that that occurs, you know, candidly
the State of Florida is a wonderful place to be operating land-based casino and entertainment.
[15:40:07]
QUEST: Good to have you, Jim. We will talk more and we will continue to update on a great company. Thank you, sir. I appreciate it. And that's
QUEST MEANS BUSINESS for the moment. I'll be back at the top of the hour. We make a dash for the closing bell. Coming up next on CNN,
Living Golf. News never stops.
(COMMERCIAL BREAK)
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MONIQUE KALKMAN, FOUR-TIME PARALYMPIC GOLD MEDALIST: Sports was always a big part of my life. I played hockey, tennis, water polo sailing, horseback
riding, and tennis was my favorite and I had a -- I had a dream. I wanted to play at Wimbledon when I was a young girl. I was diagnosed with cancer
at the age of 14 and they operated upon the tumor. So, took the tumor away, had radiotherapy, chemotherapy, but the tumor pressed against my spine and
left me paraplegic.
So my mobility was taken away from one day to the other. The first thing when a doctor told me you will never walk again was oh my god. There goes
my dream. And I can never play sports again. But when I saw the Paralympics in 1980 I thought OK, this is possible, so why not do it in a different way
then.
O'DONOGHUE (voice-over): And that's exactly what Monique Kalkman did. Going on to represent the Netherlands in table tennis and wheelchair tennis
across four Paralympic Games, winning a total of seven medals, including four goals. In 2017, she was inducted into the International Tennis Hall of
Fame.
[10:45:01]
KALKMAN: In 2008, I started with golf 10 years after I stopped my tennis. And that was pure purely therapeutical because my health was deteriorating.
And I had to find ways to get better again. I fell in love with golf straight away, because I love all sports. And to hear that ball going into
the wall, it's very addictive. Golf is a fantastic sport for people with disabilities. First of all, for all types of disabilities, it's a perfect
sport.
And you can do it in your own intensity, on your own level, at your own time. So if you're not feeling well, you know, go. If you feel -- if you
have a better day, you can go.
O'DONOGHUE (voice-over): With more and more disabled to players taking up the sport. Courses are now providing more accessible facilities as the game
opens up.
KALKMAN: Goal for people with disabilities is still fairly new. So it's logical that not every clubhouse or all the facilities are accessible. So
the more players will come, the better will be accessible. Golf and disability sports in general as absolutely the power to change lives.
Sports for everybody is important. But for people with disability, I think it's even more important. It makes you physically stronger, it makes you
mentally stronger. It puts you back in the social environment. So I would say sports is very wide.
O'DONOGHUE (voice-over): 2021 has already been an incredible year for 27- year-old Kamaiu Johnson who realized his dream of playing on the PGA Tour. But his journey to the pinnacle of the game has been anything but
straightforward.
O'DONOGHUE: Kamaiu, great to speak to you. It's been quite the ride to get to this point. Where did your golf journey begin?
KAMAIU JOHNSON, PROFESSIONAL GOLFER: Yes, yes. So growing up in Madison. You know, I didn't even think about golf, my best friend play but I never
really asked him to go to the golf course. You know, it wasn't even a thing for us. I just stuck to baseball and until really, I got to Tallahassee. I
was 14 years old. I was outside of my apartment complex, swinging a stick and Jan Auger who was a G.M. at Hilaman Golf Course at the time. She came
up to me.
JAN AUGER, GENERAL MANAGER, HILAMAN GOLF COURSE: I said, hey, you want to arrange and get some real balls? And he's like, yes, and his face just lit
off.
JOHNSON: She could have said, hey, you're trespassing. You know, why are you here?
AUGER: The arrangement was if he kind of would help out and he could play for a dollar.
JOHNSON: It changed my life for the better. I started hanging around people who I wanted to be like, I started carrying myself better, speaking better.
So golf really had a big part of saving my life.
O'DONOGHUE: And was it an instant connection that you felt with the sport?
JOHNSON: Yes, yes. It was life changing. It's literally the greatest game ever played. Once you make that first contact, that ball gets up in the air
and soars up in the air, you're instantly connected. You know, I grew up an apartment complex were eight to 10 people in with two bedrooms. So when I
got a chance to go to the golf course, it was really, really like my piece. And, you know, even though I've struggled, no matter how hard, you know,
golf gets, you know, I've been through way harder times and a bad round of golf.
O'DONOGHUE: You've obviously excelled and earned opportunities over this past year, Kamaiu, but have you felt there have been extra hurdles put in
front of you as a black man trying to progress to the pinnacle of the game?
JOHNSON: Yes, yes, absolutely. There's racism in golf. There's racism in this country. But, you know, I don't -- I don't look at racism as -- like,
I look at it as a hurdle for sure. But I really look at it as motivation. And as a black man in America, as I was taught, always taught to wear the
mask. And don't really let people know how you really feel inside when they do bad things to you. So, I just use racism and hurdles and golf as
motivation to get to higher levels.
O'DONOGHUE: With the platform that Kamaiu has built he has created a foundation aimed at removing some of the hurdles that he's faced in the
game.
JOHNSON: The things that I want to do with my foundation is just to get more any city kids involved in the game of golf, and just to show them
that, you know, like I said, no matter where you come from, no matter what you're doing, you can play this game of golf.
O'DONOGHUE: And what are the long-term goals for you now?
JOHNSON: Yes, I mean, the long-term goal was just continue to inspire people. To continue to inspire the kids in my community. Make it to the PGA
Tour, be one of the top players on the PGA Tour but also continuing to inspire people, continue to tell my story but continue to also let the
golfing community and let everyone know that there's more kids out there just like me.
[15:50:02]
JOHNSON: And if we can realize that then, you know, the world would be a better place. The golf industry would be a better place and we'll all grow.
(COMMERCIAL BREAK)
O'DONOGHUE (voice-over): Climate change is perhaps the most pressing issue the world is facing today. With temperatures and sea levels continuing to
rise, the game of golf is not immune to the effects of global warming. The R&A are the governing body behind Britain's Open Championship. One of the
oldest and most prestigious sports events in the world. In recent years, the organization has been leading the way in promoting sustainability in
the sport.
PHILIP RUSSELL, ASSISTANT DIRECTOR OF SUSTAINABILITY, R&A: So, for ourselves at the R&A as an organization, we define our purpose as working
to make golf more accessible, appealing and inclusive, and to ensure the sport is thriving and 50 years from now. So, when we look at the long-term
development plan for the sport, bringing new people into the sport, expanding its reach the golf courses, the golf facilities are very much at
the heart of that and they've got to be sustainable.
O'DONOGHUE (voice-over): In 2018, the R&A launched the golf course 2030 initiative, aimed at providing research and solutions to make the sport
more sustainable around the world, in areas ranging from water use to grass species and greenkeeper education.
RUSSELL: So, at the R&A we know we have an important role, both as a governing body in terms of raising awareness, taking a leadership position
to help drive change on the sustainability agenda. We work with 144 different countries.
And we're finding absolutely sustainability is fast moving up the agenda in terms of important strategic topics for golf facility operators,
developers, national federations because we can all see now that as we look ahead in the coming decades, we want to make sure the sport is resilient,
is sustainable and is robust.
O'DONOGHUE (voice-over): The U.N. report in 2019 found that around one million animal and plant species are now at risk of extinction.
RUSSELL: Last year, the R&A announced a partnership with the Royal Society for Protection of Birds aimed at ensuring that golf courses can provide
habitats for native species, as urban areas continue to grow.
When we look at golf courses holistically, and we realize that they are incredibly important areas of natural landscapes, we've been losing a lot
of our green spaces. And that's put a lot of pressure on birdlife in terms of nesting ground, in terms of breeding ground.
And we've realized that it's very, very important that as golf facility operators as developers, we're also thinking about the habitat benefits
that we can realize, through for instance, maintaining certain types of habitat, even encourages certain types of habitat.
O'DONOGHUE: (voice-over): The R&A's drive for a more sustainable sport also extends to their flagship event, the Open Championship. And in 2019, the
tournament became one of the first global sporting events to remove single- used plastic water bottles.
RUSSELL: We've seen in the last years that one of the most concerning problems that we have globally is the pollution of our oceans caused by
single-used plastic. So at our event, the Open which we organize the oldest of golf majors, historically, we were reliant on single-used plastic water
bottles. That's the way that we provided water for players, for fans, for officials, for staff on site. And given that we played on links golf
courses right next to the ocean, we knew it was incredibly important that we made this change ourselves.
And we were delighted to bring a model to reality whereby we could completely eliminate single-used plastic water bottles across the event.
And we did that by bringing in on-site free water filling stations, encouraging people to bring their own refillable bottle to the venue and
then also supplying across the event stainless steel refillable water bottles.
O'DONOGHUE (on camera): Climate change affects all of us and we're told we all need to play our part. With the 2021 event just around the corner,
perhaps the Open Championship can continue to set an example as golf aims for a more sustainable future.
(COMMERCIAL BREAK)
QUEST: Hello, I'm Richard Quest. We now have a dash to the closing bell which is just over two minutes away. And this is how we are finishing. The
Dow once again above 34,000 barely just 12 points on a gain of 30. So it turned positive in the afternoon. We've got a gain of 30. It's anybody's
guess whether that'll hold for two minutes. My feeling is it will. Meanwhile the S&P is on track to close at a record high for the second day
in a row.
Not the same for the NASDAQ. It's lost momentum from yesterday's all-time high. You see the number on the screen.
President Biden will send vaccines to India. He said earlier today. Meanwhile, Sangita Reddy, joint managing director of Apollo Hospitals,
which is India's largest health care system, describe the current situation and the awful toll on her staff as the number of infections and the number
of fatalities from COVID continue to rise.
(BEGIN VIDEO CLIP)
DR. DR. SANGITA REDDY, JOINT MANAGING DIRECTOR, APOLLO HOSPITALS ENTERPRISES: I think the biggest thing which is under strain and stress is
the medical manpower itself. Which doctors and nurses were stretching themselves because every single health system has added beds. We're
currently operating over 4500 beds for COVID but in addition to that, we are doing over 5000 patients in homecare and telemental kind of treatment.
We have taken our hotel rooms, almost 3500 hotel rooms and put medical devices and clinicians in those to supervise patients over there. So
everybody is stretched.
(END VIDEO CLIP)
QUEST: And finally, an even split just about have red and green across the Dow 30. These are the numbers. McDonald's, the banks, they're the top, 3M,
Intel, Verizon is at the bottom (INAUDIBLE) results. That's the way the markets are looking. I'm Richard Quest. Whatever you're up to in the hours
ahead I hope it is profitable.
[16:00:02]
QUEST: The closing bell on Wall Street is now ringing. "THE LEAD" with Jake Tapper starts now.
END
