Return to Transcripts main page
First Move with Julia Chatterley
Another 6.6 Million People Filed For Unemployment Benefits In The United States; Health Of U.K. Prime Minister Boris Johnson Continues To Improve; CFO Of Conference App, Zoom, Speaks About Their New Privacy Protections. Aired 9-10a ET
Aired April 09, 2020 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:01]
JULIA CHATTERLEY, CNN BUSINESS ANCHOR: From New York, I'm Julia Chatterley. This is FIRST MOVE, and here's your need to know.
Pandemic pain. Another 6.6 million people filed for unemployment benefits in the United States.
Continued improvement. The latest on the health of the U.K. Prime Minister Boris Johnson.
And pandemic privacy. We speak to the CFO of conference app, Zoom about their new protections.
It's Thursday. Let's take a move.
Welcome once again to FIRST MOVE. It's so great to be with you as always, and some welcome news first, on the social distancing measures being taken
here in the United States and across Europe, it seems that they are helping.
We're seeing the curve flatten here in the United States and we appear to be seeing cases peak in parts of Europe, too, however, the economic damage
from the self-induced shutdowns deepens.
As I mentioned, we now know a further 6.6 million Americans filed for first time unemployment benefits just in the last week. That equates to over 60
million people thrown out of work in the last three weeks alone. What's more, we know there are backlogs, big backlogs in processing these claims.
If you remember yesterday, Paul Krugman told us that he expects a 20 percent unemployment rate in the United States by mid-April. Key, of
course, to stemming that -- loans to the biggest employers in the nation -- the small businesses.
We could see a vote in the Senate on an additional $250 billion worth of lending capacity, just to try and calm things down, but the Democrats are
arguing more money for states and healthcare should be added, too. You can't choose between these things. It's time to act.
The Fed though -- the Federal Reserve -- not hanging around, taking fresh action today to help get loans out to businesses. Among others, they are
offering in total some $2.3 trillion in new lending programs including an additional $600 billion worth of support for medium sized businesses.
We'll hear from Jay Powell at 10:00 a.m. Eastern Time to get more detail on what this all means and how quickly, of course, it will work.
For now, U.S. futures are higher on the news after a strong session Wednesday. The Dow and the S&P rising more than three percent encouraging
medical data as I've mentioned and continued talk about somehow getting the U.S. economy up and running, I think helping sentiment here even the talk
worth something.
European stocks rising, too, and Asia having as you can see broadly mixed, but the ones that I'm showing you here are positive. I just remain
concerned about how we open up the United States economy without some form of mass testing.
We saw that in places like South Korea. We see it we think happening in China, too. For now, Europe is key. Discussions underway in France, Germany
and Italy, too. Norway, Austria, Denmark and the Czech Republic have already announced gradual reopening, and for the economies, for the people
that can't come soon enough. We'll be discussing.
For now though, Richard Quest joins us. Richard, I don't know where to start. First on the shocking, the devastating increase that we keep seeing
in in those claiming for unemployment benefits in the United States.
We know this because it's purposeful, but also the Federal Reserve stepping up here and saying, look, we'll make more money available, whatever it
takes.
RICHARD QUEST, CNN BUSINESS ANCHOR, "QUEST MEANS BUSINESS": Essentially, what the Fed is doing, is agreeing to use all these loans, these payroll
protection loans that the banks are making as collateral for further loans against it.
This new Main Street facility is for those companies with more than 500 employees who don't have direct access, those under 500 employees use the
PPP, the Payroll Protection.
And I've got here, I printed it out this morning, Julia, just a list of all the different plans that the Fed has put in place, and they're all
basically the same thing.
In some shape or form, the Fed is acting as the backstop, agreeing to take commercial paper from companies, government bonds, and now these payroll
protection loans as collateral against further lending.
CHATTERLEY: Yes, they'll buy anything. They'll try and keep borrowing costs down for corporates, push money, but to the small and medium-sized
enterprises, even the municipalities, I saw that word in this, too, which I do think is critical.
Richard, do you remember during the financial crisis where we'd always use this word, transition mechanism, or the phrase, it's OK throwing money at
something but you have to actually see the cash get there. And what we're struggling with in the United States is the transition mechanism of
agreeing money for people and for businesses, but it's just taking time to get to them and that remains a problem.
[09:05:11]
QUEST: Right. And I'm glad you talked about transmission and the mechanism because if we look at what the Bank of England has done today, the BoE has
short circuited the transmission mechanism, normally through the government gilts market, and is now making direct loans to the government its so-
called monetary financing.
Now, monetary financing is allowed by the BoE because of its Constitution and the way it runs, it is strictly forbidden by the European Central Bank.
There can be no direct monetary financing of government expenditures by the Central Bank.
And this is a major development as well which shows the size and scale it mounts. On the markets, quickly, Julia, I think the testing. I know you'll
caution, and I think you're right with your caution, and bearing in mind your caution, I think they are testing and testing the upper limits of what
they believe the appetite for investors is at the moment.
CHATTERLEY: I couldn't agree more to be honest, and you know, when you held up those sheets of paper, I was just running it through in my mind as well,
we have seen nothing like this in terms of stimulus -- so financial aid.
So at the same time when we're saying and we bring it back to the science that we don't know what reopening the economy looks like. We don't know
what the science of Getting on top of the health crisis looks like nor do we have any sense of understanding of how potent throwing this kind of
money at the system does, not only for the underlying economy, but for markets, too; and those two things are different.
QUEST: And - and - and, that was event a thought. I know this is a long way in the future, and we're not worrying about this now, but it all has to be
unwound at some point.
I mean, you know, 2021 -- all of this has to be unwound, please God, we get to the position where we have to unwind. Let me leave you with that.
Please, can we get to that position?
CHATTERLEY: Yes, higher taxes. We still haven't unwound what we did during the financial crisis, Richard. Who knows where this ends?
Thank you so much for that. Great discussion as always. Richard Quest.
Now as the U.S. faces up to unemployment catastrophe, another crisis -- a jobs crisis. Spain, one of those nations also looking to try and get its
country restarted. The Prime Minister, Pedro Sanchez says the pandemic's peak has been reached, and the country will soon start de-escalating
lockdown measures.
Scott McLean is in Madrid and joins us now. Scott, when I look at Europe, no country, more than Spain needs to protect its economy and get restarted;
however, that looks like, but what does that actually mean in practice for Spain?
SCOTT MCLEAN, CNN CORRESPONDENT: Sure. So one of the things that Spain has been pushing for is a pan-European solution to their economic problems
which have been deep and will likely be long lasting.
This is a country that had 13 percent unemployment even before the coronavirus came along. So today, the group of 19 Finance Ministers that
use -- the countries that use the euro will be meeting today to try to hash out some kind of a solution on European stimulus to the coronavirus.
On a basic level, the divide has been north-south. Countries like Germany and Holland versus countries like Italy and Spain. Germany and Holland, not
wanting to take on debt from less affluent countries like Italy or Spain. Spain, though, really wanting things to be done in unison, originally
pushing for Europe to issue debt, so called coronabonds, which have been a nonstarter for the Germans.
But the Prime Minister, Pedro Sanchez has really been on a lobbying campaign writing in 10 European newspapers just a couple of days ago that,
look, you need some cohesion otherwise it will threaten the viability or will badly damage this European project.
The Spanish Foreign Minister went even further than that telling a French newspaper that either Europe will kill the coronavirus or the coronavirus
will kill Europe.
CHATTERLEY: Wow. What a potent statement. Scott, you know, I've spent a lot of time in Spain. I've been in Madrid many times. I'm just looking at the
street and I recognize it behind you. And it's utterly empty.
And as much as the conversation in Spain is about, look, how are we going to restart? What I'm seeing behind you is a capital city that remains on
significant shutdown measures and will continue to be like that for the next month, I believe. What does restart look like? Are they giving us any
detail?
MCLEAN: Yes, it's a great question. You know, I've spoken to friends in the United States or in the U.K. who have a very different idea of lockdown.
Here it means something quite different.
As you can see, this is one of the main shopping streets in Madrid. We're just steps away from the physical center of the city, and there's almost
nobody here.
[09:10:11]
MCLEAN: People are only allowed out of their homes to go to work, and only if they are essential workers, or to go to the grocery store or the
pharmacy or to get essential supplies.
And so today, the Spanish Parliament is voting actually, probably as we speak, they are very likely voting on whether to extend the state of
emergency until April 26th. That is likely to pass.
But the government is promising that nonessential workers which who have had to stay home for about the last two weeks or so will be allowed to go
back to their jobs beginning on Monday.
This applies to industries like construction and manufacturing, but does not apply to restaurants and bars. So this scene is going to stay as it is
for quite some time.
In terms of where we are in the death toll and the numbers. You mentioned, the Prime Minister said that this country has reached its peak and now it's
sort of on the decline. It's managed to flatten the curve. And that seems to be true.
The number of deaths was almost 700, but the number of new active cases or the increase in active cases, I should say, was less than a thousand for
the last two days. That's the first time that's happened in almost a month.
But Julia, there are some real questions about the accuracy of the numbers here in Spain. A CNN analysis done by my colleagues and I showed that there
were 3,000 plus deaths more than average compared to last year in the last half of the month of March that were not attributed to the coronavirus.
And so the true number of deaths is likely much higher. Case in point the regional government of Madrid says that thousands of people have died in
nursing homes who had coronavirus symptoms, but were never actually tested and thus were not added to the official tally.
For its part though, the Spanish government says look, it counts anyone as a coronavirus death if they tested positive for the virus. That they say is
in line with European and W.H.O. guidelines.
CHATTERLEY: Yes, it's just worrying isn't it? We really are at the beginning of this. Scott, great to have you with us. Scott McLean there.
Stay safe.
All right, the British Prime Minister is in good spirits and his condition is improving says his spokesman. Boris Johnson spent a third night in
intensive care fighting COVID-19 symptoms.
Nick Paton Walsh joins us now. Nick, well, improvement we take that. That's good news.
NICK PATON WALSH, CNN INTERNATIONAL SECURITY EDITOR: Absolutely, yes. But it is I think the first day, it's fair to say that we've had the suggestion
that he is getting better. Yesterday, we're being told that he was stable and responding to treatment. Today, as you said, they go on to point out,
he has had a good night and continues to improve.
He is still receiving "standard oxygen treatment," the suggestion clearly being from his adviser that he is not on a ventilator, and I think it is
fair to say now that the British public are getting a slow drip of good news about his condition.
Certainly, no bad news is good news by definition itself, Julia. So yes, that notion I think that the top medical care that he is able to get in the
United Kingdom seems certainly to be paying off at this point -- Julia.
CHATTERLEY: Great news. Nick Paton Walsh, thank you so much for that update there.
All right, in the next hour, OPEC will have a virtual meeting with its partners to discuss cutting oil supply, the price war between Saudi Arabia
and Russia and a lack of demand.
Of course, Brent crude to plummet 50 percent year-to-date. Prices today, as you can see, are a little bit higher. Clearly some optimism there. John
Defterios joins us now.
John, what are you hearing heading into this meeting about what kind of deal may be struck -- my apologies -- and who may be involved in that deal,
because that's key, too.
JOHN DEFTERIOS, CNN BUSINESS EMERGING MARKETS EDITOR: It is very key, Julia. We've heard a lot in the last 45 minutes. Tough times require tough
measures, and that's what we're hearing, particularly because the demand side of the equation is dropping so fast.
A week ago when we talked, there was maybe a drop of 20 million barrels a day. Now, we're looking at 30 to 35. So there is no choice.
Again, it goes back to the big three -- the United States, Saudi Arabia and Russia. Donald Trump brought the latter two back together again and we're
hearing in the last hour that Saudi Arabia is now willing to cut four million barrels a day. These are being leaked out regionally.
That would be though from a base in April, when they ramped up their productions going from 12 million barrels a day to above eight million
barrels a day.
Russia now, get this, Julia, going to 1.6 million barrels a day of a cut. That is equal to or slightly higher than what they walked out of for the
entire group just a month ago. That's how much things have changed.
Now, Vladimir Putin is holding a very tough line on the United States and other G-20 members saying, it cannot come in with a practical or automatic
cut to the table. That automatic is that the Energy Information Administration saying the U.S. will lose a million barrels a day in 2020
and another million in 2021, which by the way, I think is low.
Putin said you have to be firm on that, and they've invited 12 other players beyond the United States and Canada. Alberta is showing cooperation
here, so is Brazil, even Norway.
But by this time tomorrow at the G-20, they have to say what is hard and fast. If you can't deliver that, don't ask us to put up better than 10
million barrels on the table at this stage.
[09:15:12]
CHATTERLEY: You know, it's fascinating, John, when we spoke to the American Petroleum Institute chief last week, he said, look, it's happening
organically in the United States, up to a third of our capacities gone, or at least has been switched off due to low prices anyway. Does that matter
in these discussions if that's what the message from the United States is? It's happening organically.
DEFTERIOS: Well, it doesn't matter, and I'll tell you why. It's because of the flexibility of the U.S. shale producers, Julia. They can go on and go
off and they're owned by the majors by and large, all the acquisitions in the last 18 months.
So it's interesting the narrative from Donald Trump now when it comes to OPEC. He hated them before and says that has now broken, and we know the
threshold pain here. $70.00 on the top where we were in January, $20.00 to $25.00 on the bottom. So can this collective group, 23 from OPEC Plus, a
dozen other players that are around the table and on the phone conference today, come with a package that gets you to between $40.00 and $45.00 to
$50.00 for the rest of 2020.
The other surprise I think here, Julia would be the G-20 tomorrow would say look, on our side, we're going to start filling our strategic reserves and
boost demand to stabilize the market. That would be a big win.
The final point here, Saudi Arabia is under intense pressure, yet another letter from nearly 50 congressmen and women to the Crown Prince of Saudi
Arabia saying you're the G-20. Chair, you're an ally of the United States. You buy weapons. We back who on Iran. Do the right thing. They're not
saying that to Vladimir Putin or anyone else, but clearly to Riyadh.
CHATTERLEY: Yes, there's no cushion on that G-20 chair at this moment. John Defterios, thank you as always.
All right, we're going to take a quick break here on FIRST MOVE, but coming up in our segment, a time to act. What Colgate-Palmolive is doing at a time
when we need health and hygiene products more than ever?
And also keeping it clean, important advice to ensure your Zoom chat doesn't get some unwanted visitors. That's coming up. Stay with us.
(COMMERCIAL BREAK)
[09:20:15]
CHATTERLEY: Welcome back to FIRST MOVE, and what an extraordinary hour it's been for markets. U.S. futures have turned higher after the U.S. Federal
Reserve announced yet another, whatever it takes moment announcing some further $2.3 trillion in new support programs. That includes a $600 billion
amount in fresh help for small and medium-sized enterprises and aid to state and local governments, too, just simply to help them lower borrowing
costs.
Fed Chair Jay Powell is set to talk more about all of this at the top of the hour, but as you can see, U.S. futures certainly reacting to that.
Also before the bell, the U.S. announcing that a further 6.6 million Americans filed for first time jobless benefits. That's more than 16
million people doing so since the crisis began in the space of three weeks.
Today's numbers coming in at close to analysts worst estimates and probably understates the number of people that are trying to ask for support here.
Joining us now, Jason Furman Professor of Practice of Economic Policy at Harvard University. He is also a former Chair of the White House Council of
Economic Advisers and was one of the first to suggest making direct payments to those in need.
Jason, fantastic to have you on the show once again. First, I just want to get your assessment of what we're seeing here in terms of the sheer scale
of people that are claiming unemployment benefits, not a surprise to many, but these are shocking absolute numbers.
JASON FURMAN, PROFESSOR, HARVARD UNIVERSITY: Yes, these are shocking numbers, and in one sense, it confirms what we didn't need economic data to
even know, which is that much of the economy is being shut down. It's being shut down on purpose to battle a virus.
But there is a flip side to it. These are 17 million people that are going to be getting benefits. They're going to be getting an extra $600.00 a
week. The criteria for those benefits have been loosened, and we don't know how many have been fired, which was a big problem versus furloughed and
will be rehired when the economy restarts.
That's what we'll need to keep our eye on going forward. How much of this is temporary assistance versus a prolonged period of unemployment?
CHATTERLEY: I know it's putting you on the spot and desperately hard to gauge here, but that is such an important point. What's your gauge or
estimate of what proportion perhaps will be scooped back up again, very quickly if we can restart the economy over the next couple of months?
FURMAN: Yes, I mean, I think certainly at least 50 percent but that still means it is devastated. So instead of 17 million, it is eight million
people that are genuinely unemployed.
So I think you're going to see a huge crunch in the economy. I mean, you're seeing it right now. You're going to see then a partial bounce back in the
economy as people get rehired as business activity restarts. And then how far that partial bounce back goes to undo the crunch is so critical.
You know, I think it might just be, you know, a bit more than half which will leave us with a long slog ahead of us after that initial reopening
period.
CHATTERLEY: How long do you think it takes, on that point to get back to the point we were before this began? There's a risk here that we have a
persistent problem with the number of people that are out of work.
FURMAN: Yes, I worry that it's a five-year period before we get our unemployment rate down. It's hard to lower unemployment rates very quickly
because to find a new job, to go out and find a new job is tough.
And employers need to interview a bunch of people. You need to send a resume to a bunch of places, and that's a tough process that takes time. So
the rehiring people, that will be fine, but once you get past the rehiring phase, labor markets just take a long time to sort themselves out,
unfortunately.
CHATTERLEY: You made a great point as well about the fact that we have seen unemployment benefits extended. They've been expanded to gig economy
workers, to self-employed, too, which I think is important in this country, also, but we've seen challenges getting money out to small and medium-sized
enterprises that people are struggling to even file for unemployment.
This system was not built to cope with this volume of claims. Is there anything based on your experience and understanding that could be done to
make this quicker?
FURMAN: Yes, I mean, I was frustrated with the unemployment insurance system before this in terms of, it has been starved of administrative
funding, it didn't function nearly as well as it should have before this, and this is a massive amount to cope with.
They have put a lot of administrative funding into unemployment insurance. It's going to take time for that to work through and hire the people they
need to, but some states are transferring people from other departments into the unemployment insurance department.
[09:25:07]
FURMAN: The small business lending program definitely got off to a rocky start, but on the other hand, this is a massive new government program that
launched within two weeks.
If they straighten these problems out in two weeks, it'll be, you know, one month to get the program up and running. You know, that's miraculously
fast. So, we need to be really, really fast. We're getting pretty fast.
CHATTERLEY: Yes. Should more money be added? If Congress can come with some agreement, should more money be added?
FURMAN: Yes, the Small Business Program appears to be set to run out of money. You know, I had some qualms about that program. But now that
Congress has passed it, I think it should be funded.
States and localities was the biggest omission in the CARES Act. It paid for the emergency spending needs of states. The biggest problem is how our
states going to pay for their teachers in September?
We're going to want our children back in school. We're going to need teachers and their tax revenue is down enormously.
There's going to be huge state budget cuts, including on education if we don't support them. So that's really important.
And then at some point, we're going to need to extend the assistance that we've already done, because a lot of it expires over the summer and our
problems will not unfortunately, I don't think and over the summer.
CHATTERLEY: Yes, extension and expansion. That's the takeaway I'm getting from this conversation.
FURMAN: Well staged.
CHATTERLEY: Jason, fantastic to talk to you again. Jason Furman, we will speak to you soon. Stay safe, sir.
FURMAN: You, too.
CHATTERLEY: OK, we're counting down to the market open. What a morning. News from the Federal Reserve, we are waiting for Jay Powell, of course.
This is the reaction in futures and more devastating job losses in the United States, too. More to discuss. Stay with us.
(COMMERCIAL BREAK)
[09:30:00]
CHATTERLEY: A thumbs up there for some of our essential workers and quite right, too. Welcome back to FIRST MOVE. U.S. stock markets are open for
trading this Thursday, the last trading session of the week due to Good Friday observances, too.
Stocks are beginning the session with solid gains after more mammoth stimulus coming from the Federal Reserve. They announced fresh programs to
help support the U.S. economy during this period of shutdown, announcing $2.3 trillion to be specific in new support including fresh lending to
small and medium-sized businesses as well as state and local governments, too, just trying to keep borrowing costs for these areas down.
Also this, after yet another dire report on jobless claims filings in the United States, a further 6.6 million people filed last week. Christine
Romans joins us now on this.
Christine, never has support, I think from the Federal Reserve been more desperately required here. Because once again, those filings for jobless
claims, an astonishing number, probably underestimating the number of people that are asking for help here.
CHRISTINE ROMANS, CNN BUSINESS CHIEF BUSINESS CORRESPONDENT: Yes, when you look at it, in March, the American labor market had 162 million people in
it. You take out 16.5 million in just three weeks, that's 10 percent of the labor market in just three weeks, laid off.
And it's so important to point out, some of those are furloughs. We don't know exactly how many so they could be poised to return at some point, and
that's important for recovery. But a lot of these are layoffs and it can be hard to repair damage done in the American labor market.
It's so interesting because to prevent the spread of one crisis, you risk creating a new one, and that is telling people to stay at home has
consequences, it means jobs are lost.
And that is a really interesting dilemma where we find ourselves here, especially when you've got the President now talking about he wants to open
up with a big bang. He says we're ahead of the curve, ahead of schedule for opening up the economy, but you don't want to risk -- and these numbers
certainly, certainly cause so much concern.
We see so many people losing their jobs, they don't want to come back too early either, and risk permanent damage to the American economy and the
labor market.
CHATTERLEY: No, it's that delicate balancing act of protecting those that are being pressured as a result of the measures that we're taking to try
and control the health crisis. We all hope it's a big bang, Christine, we hope that the economy can kick back in as soon as possible and people can
get their jobs back.
Support measures. That's what's key. And whether Congress can agree more support, it looks like the Federal Reserve this morning saying we're not
waiting around. We're going to try and backstop all of these programs and keep borrowing costs down for people.
ROMANS: And the Fed really a mainstream backstop? When you look at some of the things that they've done, they have really, you know, you've always
seen the Fed is sort of, you know, protecting the integrity of the financial system and making sure there's oxygen flowing in the financial
system writ large, and then that eventually supports Main Street.
But I'm seeing a Fed here that is going out of its way to make sure that this is Main Street bailout, a Main Street backstop, and that is incredibly
important here, especially after 2008 and 2009.
Remember, where so much money of deficit spending occurred, and in the end, it was the perception that it was Wall Street that was bailed out, you
know, the bad guys were bailed out. The people who caused the crisis were bailed out, and the people who were hurt by the crisis weren't.
And I see a very different kind of mode of attack this time around.
CHATTERLEY: Yes, absolutely. Christine Romans, thank you so much for that.
As Christine was saying there, never a better time to act, and it's time to act and more and more companies are responding to that call to action.
Today, we're focusing on Colgate-Palmolive. It's the world's largest producer of toothpaste as well as many other household products.
The company has just announced it is producing 25 million bars of soap for the World Health Organization. Colgate also says it is donating $20 million
worth of health and hygiene products to those most in need.
Dr. Maria Ryan is the Chief Clinical Officer at Colgate-Palmolive, and she joins us now.
Dr. Ryan, fantastic to have you with us. Talk to me about the decision from the company to take action of this form and simply how you're going about
achieving it.
DR. MARIA RYAN, CHIEF CLINICAL OFFICER, COLGATE-PALMOLIVE (via Skype): Yes, Julia, it's so nice to be here with you. And I wish I was actually there
with you but we're all doing our part, staying home and trying to prevent transmission of the disease.
You know, our founder William Colgate over 200 years ago started our company as a soap company, and we've continued to grow as you've mentioned,
not only in personal care, but oral care, home care and even pet nutrition.
[09:35:10]
RYAN: And as a healthcare provider, I can tell you the importance of hand washing. It is our first line of defense against disease transmission, and
Colgate as a global company with global reach to the global communities that we service, we thought it was really important for us to support the
World Health Organization's #SafeHands global initiative by donating the 25 million bars of soap that you mentioned, that will go out to families most
in need.
And in addition, you know, that bar of soap ends up being an educational vehicle because we have an info-demic as well as our pandemic with people
getting lots of information, some of it good, some not so good.
And so on the bar of soap itself, it will describe proper hand washing techniques. You know, when you lather up, not only cleaning the palms of
your hands, but the back of your hands, each individual finger, in between the fingers, the nails underneath the nails, and the risks.
So that information is really important to share with people throughout the world, and so the soap will be distributed by our NGO partners throughout
the world based on recommendations made by the World Health Organization to the communities that are really most in need.
CHATTERLEY: To your exact, the first line of defense and whatever we can do to keep promoting that is very important. You're also doing an employee
matching scheme if your employees want to donate money, which I did want to draw attention to, too, but you have 34,000 employees.
I was looking at where they're located and we were just showing that around the world. How do you go about protecting 34,000 employees operating all
over the world at various different stages of this epidemic? Talk to me -- as the chief clinician at Palmolive -- at Colgate-Palmolive -- how are you
doing that?
RYAN: Well, you know, I'm very proud of our company. I think the initiative not only with the World Health Organization, but the $20 million in
products that we are donating as well and distributing through international aid agencies, you know, to provide people who are in need
because we have a financial crisis as well.
With the proper, you know, hygiene and personal care products that they need during this crisis, it is important as well as the donations we as
employees will be making to provide funds to those, you know, in the front lines, whether they're healthcare organizations, et cetera.
And so the company itself is taking really all the necessary precautions to protect her employees. Many of us are working from home. We can't travel.
That's why I'm not with you there today.
But there are added precautions for our employees who actually have to make these health and hygiene products that are so necessary at this time that
are working in the plants throughout the world.
And fortunately, we have such a robust distribution -- global distribution that we can have -- very, very quickly.
CHATTERLEY: Dr. Ryan, I just wanted to ask you quickly, because I do want to talk to you as well about getting back to work. Italy -- you also have
operations in Italy, too. And this is a country we've been focusing on. What's your plan for getting back to work in that specific country?
RYAN: Yes, I think we have plans that are specific to various regions throughout the world. And obviously, we are very aware of how this virus is
rolling out in different parts of the world, and so we have to specifically look at the needs of each area.
China was hit first, and China is coming back up first. Other areas of the world that are hit harder, like Italy, things will take some time. However,
we continue to operate to the best of our abilities, taking all of the precautions of you know, staggering our work schedules, social distancing,
hand washing stations that are put in in many more places than before to allow for that social distancing, providing people with PPE as needed and
enhancing the cleansing and sanitization of various facilities throughout the world.
[09:40:10]
CHATTERLEY: The new normal. That is the reflection of the new normal. Dr. Maria Ryan, thank you so much for everything you and your employees are
doing and it was great to chat with you. We shall reconvene in person in the future. Stay safe.
RYAN: I hope so. Stay safe and well, Julia. The same to all of your listeners and keep your hands clean.
CHATTERLEY: I promise. And we shall do the best. Thank you. All right.
RYAN: Bye-bye.
CHATTERLEY: We are going to take a break here on FIRST MOVE.
But coming up --
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: We're ready to go guys. Thank you so much for coming to the wedding.
(END VIDEO CLIP)
CHATTERLEY: Getting married by Zoom. It started as a business tool. Now it's a social savior. The CFO joins us next with some important tips.
(COMMERCIAL BREAK)
CHATTERLEY: Whether it is serious business meetings, happy hours, classes or even online weddings, the popularity of Zoom has -- well, zoomed despite
the threat of virtual gatecrashers.
We'll hear from the CFO in just a moment, but first, as Clare Sebastian reports, Zoom is throwing a lifeline to locked down businesses and many
more.
(BEGIN VIDEOTAPE)
CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT (voice-over): Adapting to life under lockdown, one crunch at a time. For Jacqui Arce-Quinton and Jeff
Quinton, owners of two Pure Barre workout studios in New Jersey, this was the closest they could get to business as usual with the help of Zoom.
(BEGIN VIDEO CLIP)
JACQUI ARCE-QUINTON, PURE BARRE WORKOUT STUDIO OWNER, PRINCETON: We are able to see all of the clients and kind of correct their form as if it were
in the studio, but also our clients can see each other who they're typically used to taking class with. So it keeps that community vibe.
(END VIDEO CLIP)
SEBASTIAN (voice-over): On March 15th, they made the difficult decision to close their studios, one of which only opened in January, just one day
before New Jersey's governor made it mandatory.
By 9:30 a.m. the next morning, they were up and running online. Revenue is limited with customers now paying just half the usual monthly rate. They've
applied for a small business loan. These classes should make it easier to bounce back.
(BEGIN VIDEO CLIP)
JEFF QUINTON, PURE BARRE WORKOUT STUDIO OWNER, PRINCETON: So Zoom is definitely helping us retain clients and retain some of the business that
we have.
(END VIDEO CLIP)
SEBASTIAN (voice-over): The importance of keeping your brand relevant during this time is something Elana Horwich also discovered through Zoom.
[09:45:25]
(BEGIN VIDEO CLIP)
ELANA HORWICH, COOKBOOK AUTHOR AND COOKERY TEACHER: So what's happening right now is little bubbles are forming around the garlic.
(END VIDEO CLIP)
SEBASTIAN (voice-over): The cookbook author and cookery teacher started offering free cooking classes on Zoom several weeks ago, as a good deed.
(BEGIN VIDEO CLIP)
HORWICH: It's raised my social media numbers. It's brought many people to my mailing list. It has increased my book sales.
(END VIDEO CLIP)
SEBASTIAN (voice-over): As huge swathes of the world's population has entered lockdown, Zoom went from 10 million users in December to more than
200 million in March. Its market value now dwarfing the major U.S. airlines.
And when so many businesses, schools, religious organizations even a British government Cabinet meeting all rely on the platform, security is
critical.
In the U.S., the F.B.I. has warned about a rise in so called Zoom-bombing, hackers dropping into meetings or school classes and displaying
pornographic and/or hate images and threatening language.
The New York's Department of Education even instructed its schools to move away from Zoom in favor of Microsoft Teams.
(BEGIN VIDEO CLIP)
ERIC YUAN, CEO AND FOUNDER, ZOOM: We had some missteps over the past few weeks, and our engineers are good, and now we learned a lesson and we have
top-down ensured on privacy and security.
(END VIDEO CLIP)
SEBASTIAN (voice-over): Still, while it took a global pandemic to make Zoom a household name, for some new customers, habits are forming.
(BEGIN VIDEO CLIP)
HORWICH: I can imagine that once we're out of quarantine, I imagine that I would build a profitable online cooking school so that I can teach from my
home and reach people all over the world.
Can you use a flavored olive oil? No, you may not.
Next question --
(END VIDEO CLIP)
SEBASTIAN (voice-over): Clare Sebastian, CNN, New York.
(END VIDEOTAPE)
CHATTERLEY: Kelly Steckelberg is CFO of Zoom and joins us now. Kelly, I'm sure you were listening to that. You literally became all things to
everyone in the space of a few months, 10 million people to 200 million. Is that at the core of the challenges that you've had? You were overwhelmed in
a very short space of time.
KELLY STECKELBERG, CHIEF FINANCIAL OFFICER, ZOOM: Hi, Julia. Thanks for having me. I think, really, what it comes down to is Zoom was built
originally to be an enterprise platform, and enterprises and organizations tends to where we have leveraging in, they have IT organizations that help
educate their users into things like privacy settings.
And what we've seen is all of these amazing new use cases. I love hearing examples in the intro, and starting to see all of these different use cases
that we had never even contemplated before, and thinking about the features, functionality, security features that is the use cases required
and that's really what we've been focused on for the last --
CHATTERLEY: You know, it's interesting because I saw your CEO say that many times, too. It was always about businesses rather than about consumers, and
you have to find a balance.
But in the end businesses surely care about privacy, too. Can you not create a product over the next 90 days, and I know you have a plan in place
now that will cater for all going forward?
STECKELBERG: Yes, so the amazing thing about our platform is it has always worked whether you are an individual, sole proprietor all the way to
enterprise. I mean, you can have exactly the opportunity here which is to be more focused to ensure that privacy and security extends across that
sort of reach of users as well.
So over the next 90 days, we announced that we are halting new feature introductions on the platform and really taking that time to devote all our
engineering resources to ensuring that the platform is secure and meets all of the privacy requirements out of -- for all the new users that we've seen
on the platform as well as our existing users as well.
CHATTERLEY: There's a class action lawsuit over information given to Facebook. There were questions over end to end encryption. There were
issues about information being passed on to China or directed via China. Is all of that now fixed for all the millions of people that are watching this
that use Zoom? Are they safe from any of those things?
STECKELBERG: Yes. So the overlying message that I want to convey is, absolutely, Zoom is safe. You know, part of the expansion of this -- we
have given it to -- we are now providing free or -- in 20 countries around the globe, and we really want to ensure that we are keeping all of those
students and their teachers safe.
In terms of some of the specific items you addressed, so the Facebook SDK, as soon as we became aware of that, we released a new release that night to
meet the configuration of allowing the transmission of any unnecessary data, ensures configuration -- we have removed -- we do have a data center
in China, but there's no exchange and there is no data being transferred from U.S. to China.
[09:50:15]
STECKELBERG: And then in terms of end to end encryption, we are 256 encrypted for meetings in our platform and we are continuing to --
CHATTERLEY: So to be very clear, China has no ability to spy on anybody having a conference via Zoom at this moment.
STECKELBERG: That is absolutely true. No ability.
CHATTERLEY: OK, we checked that. Zoom-bombing, another topical subject of people butting in unexpectedly, in some cases graphic. You guys say look at
the privacy settings. Talk us through very briefly top tips. What do people need to do to prevent Zoom-bombing.
STECKELBERG: Yes. OK. So there were some really simple and easy ways that everybody can used to keep their meetings secure and prevent unwanted
guests. So first and foremost, add a password to your meeting. Very simple to do that. Don't post your meeting IDs in social media. Don't get unwanted
attention from people that you don't want coming into your meetings. And last but not least, limit the screen sharing capability to only folks and
that will also prevent disruption from invited guests in the meeting who are taking over control of the meeting in an unwanted way.
CHATTERLEY: So there are ways to prevent Zoom-bombing, you just have to follow the terms and conditions.
The other thing I think that people are wondering here and it's an investor question, too, if we fast forward a year and we don't know what the end of
this pandemic, this health pandemic looks like, do you think more businesses, more individuals will be communicating via Zoom and via other
options, too, than there were prior to this? Can you hold on to many of the millions of people that have joined in the last month or two months?
STECKELBERG: Absolutely. I think we have an example of that in your intro package that small businesses are seeing ways to reach people around the
globe that they never had the opportunity to do that for, as well as create human interest stories like grandmother's reading to your grandchildren
across the country, and there's no reason why that should ever stop once we go back to more of a sense of normalcy.
Video communication is just being integrated into every aspect of our daily lives now and Zoom is here to support that.
CHATTERLEY: Yes, we're going to continue this conversation, no doubt. Great to have you with us today. And thank you so much for tackling all my
questions. Kelly Stackelberg, CFO of Zoom. Thank you so much for that.
And I've tweeted out details of where you can find more important tips and advice @jchatterleyCNN which helps you protect those Zoom conference calls
and meetings.
All right, coming up after the break, heroes who don't have to wear a cape, just a Golden State Warriors jersey will do. Steph Curry lifts up some
hard-pressed ICU nurses face-to-face, next.
(COMMERCIAL BREAK)
[09:55:19]
CHATTERLEY: Welcome back to FIRST MOVE. As we wrap up the show this morning, I want to leave you with the story of an Intensive Care Unit nurse
in Oakland, California.
Basketball fan, Shelby Delaney wears a Steph Curry Golden State Warriors jersey under her uniform. Well, the man himself couldn't resist a FaceTime
call with Shelby and her team. It was a small act of kindness making a huge difference, as you'll see the results at the end of this.
That's it for me. Stay safe, please, and we'll see you tomorrow.
(BEGIN VIDEO CLIP)
SHELBY DELANEY, NURSE: Thank you. I really appreciate you for everything you've done for me and for the entire Bay Area, and for calling us today
and taking the time.
STEPH CURRY, BASKETBALL PLAYER, GOLDEN STATE WARRIOR: Absolutely. Thank you so much. I know you guys have a very important work to do.
DELANEY: We do.
CURRY: We have so many people praying for you, rooting for you, and I know as things continue to go, hopefully, everybody take their responsibility,
their first responsibility is to try to end this thing quickly sooner or later, but thank you so much and I wish you good luck.
DELANEY: Thank you.
GROUP: Thank you.
CURRY: Thank you, everybody.
UNIDENTIFIED FEMALE: Thank you.
UNIDENTIFIED FEMALE: Bye.
UNIDENTIFIED FEMALE: Thank you so much.
UNIDENTIFIED FEMALE: Bye.
UNIDENTIFIED FEMALE: All right. I appreciate you.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
[10:00:00]
END
