Return to Transcripts main page

First Move with Julia Chatterley

U.S. Congress Nearing A Deal On More Support As 40,000 U.S. Lives Are Lost To COVID-19; Germany, Europe's Biggest Economy Begins To Re-start; U.S. Oil Hits A 21-year Low As Demand Drops And Storage Fills. Aired 9-10a ET

Aired April 20, 2020 - 09:00   ET

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


[09:00:14]

JULIA CHATTERLEY, CNN INTERNATIONAL ANCHOR: Live from New York, I'm Julia Chatterley. This is FIRST MOVE and here is your need to know.

Tests and tragedies. Congress nearing a deal on more support as 40,000 U.S. lives are lost to COVID-19.

Germany getting going. Europe's biggest economy begins to re-start.

And crude collapses. U.S. oil hits a 21-year low as demand drops and storage fills.

It's Monday. Let's make a move.

Welcome once again to all our FIRST MOVErs around the world. I hope you all managed a safe and restful weekend. Some truly devastating news as you

heard there and our hearts go out to all those affected.

But also at the same time, some encouraging news for you on the show today, too, and this morning from all around the world.

We'll begin in New York. Governor Cuomo said hospitalization numbers continue to fall. Other states have flattened the curve, too.

As I mentioned as well in Germany, just the latest country to begin the gradual process of re-opening but, of course, the conversational around the

world, too, comes back to testing and tracing capabilities.

That's the thread that we will be following throughout this week for you. More work required on this.

On Wall Street, meanwhile, futures are lower, this after a second straight week of gains for U.S. stocks. In fact, that is the first time that we've

seen that since February.

You guys know my views. Stock markets do not represent or reflect economies especially when Central Banks like the Federal Reserve are splashing the

cash to the sum of trillions of dollars.

The best gauge I can give you for that, and you are looking at it, the small cap stocks are down some 26 percent year-to-date. Meanwhile, if you

take a look at the tech heavy NASDAQ, that is down less than four percent for the year.

This week, tech giants IBM and Netflix will report guidance, as always, with all of these companies, not just the tech sector will be key.

But Netflix of course is one of the leading stay-at-home stocks. They've actually gained more than 30 percent so far this year. Wow.

To Asia now where China cut its benchmark lending rates yet again today. This of course following Friday's dismal growth numbers. Support remains

key for their economy, too. And, of course, that will have an impact on the performance of the rest of the world as well.

Let's get to the drivers because we start there, but in the United States, too. The White House says a deal to replenish relief funds, many for small

businesses, could be announced as soon as today. Details are still being hammered out.

Christine Romans joins us now. Christine, not a moment too soon quite frankly for the small businesses here in the United States. The compromise

here is money for testing it seems and for hospitals, but billions of dollars and perhaps some set aside, too, for some of the underrepresented

businesses as well in the United States.

CHRISTINE ROMANS, CNN BUSINESS CHIEF BUSINESS CORRESPONDENT: Yes, there is this feeling that the process has just been very quick, of course, just a

couple of weeks all of this money going out the door, but also, there is this real frustration that this was a system that a bail out really that

favored companies that already had existing relationships with their banks, already had lines of credit, and also favor some big companies.

There are about a dozen big restaurant companies or hotel companies, some of them public, right, who have access to other forms of capital that were

tapping this PPP program while mom-and-pop locations were left out in the cold.

So, the money is good and necessary and needed now, today, right, yesterday in some cases because so many of the small businesses frankly just don't

have any money left in the bank to pay their bills and they need this money immediately.

CHATTERLEY: The restaurant sector is an interesting one. That small businesses there as you and I have discussed in the past, an average of 16

days of cash and we are already more than a month into this shutdown. How is that supposed to work? It doesn't.

And yet, to your point, big chain restaurants like Shake Shack coming out over the weekend and saying, look, we've got the money. We're giving it

back. Our workers need it, others need it more.

ROMANS: Look, I mean, there was a lot of, I would say rage from some corners that some -- and there are also, you know, hedge funds, hedge

companies owned by hedge funds that were tapping into these small business loans while small business owners were left sort of in the dark.

So that was really was an optic, I think that they need to try to figure out how to avoid here going forward for this next round. The devil is in

the details as they always say. We are seeing what the top line numbers are.

There is a political will of course, Julia, to get this done, but you want to make sure this is not tilted, again, to the maybe financially plugged-in

companies and not to the real Main Street companies who need this. This is survival.

[09:05:14]

CHATTERLEY: Yes, when I was hearing about what the contours of this program were last week, the suggestion was there were going to be no conditions

attached.

Then came the small business administration's details of how the money was given out, over a quarter of the money going to just two percent of

businesses, and you get the sense everyone went, okay, some money here must be set aside for the smaller banks. Perhaps the online lenders, too, that

can get to the smallest businesses.

ROMANS: To be fair, they have got to get the money out there. They've never, never pushed this much money out the door in so short a time, so

there are bound to be hiccups, but you just want this fundamental feeling of fairness. Right?

That Main Street gets a fair shake here and there is access to this money. Remember, if they use this money to pay -- use 75 percent of this money to

pay their payrolls, it is free money and that is so important to these companies.

CHATTERLEY: Yes, it is. Absolute life line. Christine Romans, thank you for that.

Also, here in the United States, the federal government clashing with states over testing capacity. President Trump says there is enough testing

to re-open the economy, but many governors are saying that simply is not true.

John Harwood is live in Washington for us. John, we were talking last week, some hope of, perhaps, galvanizing a national effort to coordinate testing,

but we're still down to a he said-she said-he said between the White House and the individual states and none of these numbers tie up to what's

required.

JOHN HARWOOD, CNN WHITE HOUSE CORRESPONDENT: We are, Julia, though there are some glimmers of progress. You have got to make a distinction between

what President Trump says and what he does.

He is saying it's up to the states. He is protecting himself against charges of mismanaging in case it doesn't work out as states try to roll

out testing.

But he has tentatively agreed with the House Democrats, his administration has to add $25 billion for testing ramp up in the small business plan that

they are negotiating right now, so that is positive.

Secondly, last night, President Trump announced he is going to use the Production Defense Act to direct the production of swabs, which is one of

the key testing components.

The President has been resisting that step before, so this is a small step. There are many other things he could do, but it is an indication that he

was feeling the pressure from those governors and responded to it.

We'll see if we get similar action on things like reagents and test kits and other elements of the supply chain.

CHATTERLEY: And I completely agree with you that there are glimmers of hope here, John, but the idea that $25 billion for this is enough, we've had

experts on this show saying ten times that, particularly when you compare to the economic damage that's being wrought and the necessity to get the

economy going again.

Testing is everything. Far more money should be pushed towards that, and I have to say, I think that is a fair point, too.

HARWOOD: No, no. I completely agree with you, but remember, the administration initially was resisting anything but small business money in

that package and they had resisted using the DPA.

Now, what you hear from Democrats and some governors is that he needs a full mobilization of the Defense Production Act, something like a pandemic

testing board at a national level to get tests to all of the places that they're needed sooner. He is not willing to do that.

So, there is a big gap between the need and what he has agreed to do but there are baby steps in the direction of what we need to do.

CHATTERLEY: Yes. You're right, and we should acknowledge each one of those steps, John, but you and I will fight for that pandemic testing board

because I think that is probably what is required here.

John Harwood, sir, as always, a pleasure. Thank you so much for joining us with the latest from D.C. there.

Now, to Europe where some countries begin to loosen virus lockdown restrictions. This week, in Norway, children return to kindergarten. Parks

and forests in Poland are no longer off limits. And in the Czech Republic, they have reopened some shops, too.

Leading the way, however it seems is Germany, Europe's biggest economy. The country's Chancellor will give a press conference in around a half an

hour's time as a broad swathe of businesses from car dealers to book stores return to work.

Fred Pleitgen joins us now on this. Fred, I bring in the conversation I was just having with John there. Fantastic to get the economy moving again and

get these businesses back to work, but how is that being managed with testing and controlling and making sure that we don't see a further spike

in cases once again?

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, you know what, that is really the big issue and that's also something the Germans

are talking about, and I think that Angela Merkel is also going to be talking about as well in the press statement that we believe is coming up

in about 20 minutes.

Essentially what the Germans are saying, look, we're able to open up because so far, the mass testing that's been conducted here in this

country, also quite frankly the discipline of the people here in this country in keeping with that social -- that physical distancing, that has

really helped to bring the new amount of corona cases down and that is why they are able to do some of the loosening that you are seeing.

Now, I don't know if you can see behind me, there are actually a lot of people here in this pedestrian zone right now as these shops are able to

open for the first time and they say they are absolutely happy to be able to get out of the house again.

They are absolutely happy to be going to stores that are actually open, and we talked to some store owners who said it was a disaster when their shops

were closed even though they got government aid. Everybody here very happy with this.

But, Angela Merkel has been saying, look, people, don't get careless. This can all go in the wrong direction very, very quickly. She said the gains

that have been made so far have been fragile and while some of the measures have been loosened, some of the restrictions have been eased, she says

people really have to watch out, keep the social distancing going.

And it is quite interesting, Julia, to see here in Germany, because there are some states like up in the north where I am right now who are fairly

lenient in the way that they are opening things, but there are other states like for instance Bavaria, like for instance, Saxony who are now making it

mandatory for people in a place like this to be wearing masks. That's something that you have to do if you want to go into the stores, if you

want to go on public transport.

So, its difference is now that's being handled. But I can tell you, the German government, the state governments here are keeping an absolutely

close and watchful eye on the amount of new corona cases to see whether or not there is a spike as a result of what you're seeing behind me right now

with many more people here on the streets and going to shops -- Julia.

CHATTERLEY: Yes. Two observations and I was just watching while you were talking there. You have a lot of people behind you as you mentioned. A lot

of people there, too, not wearing those masks.

So, just as you were mentioning the different areas, do the number of people that are wearing masks, perhaps how stringent the state authorities

are being, depend on how high the cases were in those regions, because actually, I am surprised by what I'm seeing behind you.

PLEITGEN: Yes. Certainly. I mean, it is a bit surprising to sometimes see, but one of the things that people are saying, look, they're trying to keep

their social distancing. They say if they keep six feet apart, they think that it is going to be fine, it is going to be okay.

And to be fair, there are also a lot of people going out who are going out, who are voluntarily wearing these masks, but you are right. By far it is

not most people who are out here, and at the same time, this amount of people wearing masks is about what we saw before, before the stores were

opened.

And there you did see the cases, the amount of new corona cases decrease and go down, so that is really the thing that the government is watching

out for.

If they now opened it up without making people wear masks, and there is a guideline by the German government by the way that is telling people, we do

highly recommend that you wear a mask if you go into a public place and you go into a store, but they have not made it mandatory yet.

And the reason why they did that, Julia, is because they say that so far people have been so disciplined in the social distancing and keeping their

distance from other people that it hasn't been necessary so far.

But that is also something they're keeping an eye on whether or not you might see a blanket order in Germany to wear masks in public places

certainly when going in to stores and going to public transport. Really interesting situation here.

CHATTERLEY: Yes. It really is. It is going to be a sort of day by day, isn't it? And we just see how you need to calibrate that.

PLEITGEN: Yes.

CHATTERLEY: It would be interesting to see what the Chancellor says later this morning. Fred, great to have you with us. Fred Pleitgen there for us

in Germany.

Now, the price of U.S. crude has crashed to the lowest level in 21 years. West Texas Intermediate trading close to 40 percent lower plunging well

below $12.00 a barrel. Wow. Look at that.

John Defterios is with us. John, this is what capitulation looks like. As you and I were discussing, we saw the supply cuts. We knew they weren't

enough. Now, storage capacity is filling up and there is very little demand out there. This is reflecting that -- all those things.

JOHN DEFTERIOS, CNN BUSINESS EMERGING MARKETS EDITOR: Yes, especially in the United States, Julia, and I think this last leg down is exposing the

U.S. vulnerabilities particularly when it comes to storage right now.

We have about half a billion barrels of extra production and the oil hotels, if you will, are running out of vacancy. They have about a month

until that happens.

And we have to remind the viewers, you know, for WTI, we were at $68.00 -- $66.00 a barrel in January and the Iranian tensions and then the pandemic

has just knocked the legs out here.

And this is accentuated because the contract expires for WTI tomorrow and we see the forward contract of about $6.00 to $8.00 above the current

level, but you can't argue with the 40 percent correction.

Also this IEA report that came out Friday reiterated how dangerous that price war was because it started March 6th at the meeting in Vienna where I

was, and will carry through if you think about it until May 1st, that's when the cuts from OPEC actually come into place.

So, they call it the crucial seven weeks that broke the back of the market particularly of the U.S. market right now.

And the other thing that is very vulnerable here, I spoke to a senior trader on the phone yesterday, and he said, you know, you cannot fool the

market with the fake numbers that are being thrown out here.

There was a promise ten days ago at the G-20 meeting of Energy Ministers that took place, that virtual meeting they said they were going to be

buying 200 million barrels a day of crude and some 200 million barrels over the next few months, outside of China,we don't see it, Julia.

[09:15:24]

DEFTERIOS: So, they talk about taking off 20 million barrels a day between OPEC, the U.S., Canada, and Brazil and then the purchases from the G-20,

the market is saying we don't believe it right now.

CHATTERLEY: Yes. And also, we're flying blind on the demand from it too, so it's the triple whammy of the situation that we are dealing with.

John, what does this mean in terms of jobs particularly for the United States when we are seeing prices this low? What does it mean particularly

for the shale players?

DEFTERIOS: Well, I think for Donald Trump, it was a mistake to say mission accomplished because he said I solved this trade war and I protected

hundreds of thousands of jobs.

We have folks like Rystad Energy which is a consultancy making calculations on this price range of around $20.00 a barrel. They are saying, 140

companies will go bankrupt this year and another 400 -- did you hear what I said? Four hundred in 2021.

If you have $10.00 oil which I don't think is going to hold, Julia, they are saying that number could double in 2021. So, it is acute, the

situation.

You talked about demand. We see that the OPEC cuts are just below 10 million barrels a day. The IEA shocked everyone saying that this drop in

demand is not just for April, but will average 23 million barrels a day through the second quarter.

So what is the new normal, Julia? The new normal could be through the end of the year that we lose nine to 10 million barrels a day, nine to 10

percent throughout the year, which makes this correction in U.S. oil prices in particular and rebalancing very, very difficult going forward.

CHATTERLEY: Bankruptcies and bailouts, the two Bs, I think for this sector going forward based on what we're seeing.

John Defterios, thank you so much for joining us on that. Worrying.

All right, let me bring you up to speed now with some of the other stories making headlines around the world.

Canada is reeling from one of the deadliest mass shootings in its history. A gunman killed 16 people in a 12-hour rampage on Saturday in the Canadian

province of Nova Scotia.

The 51-year-old suspect was killed in a shootout with police. Investigators are searching for a motive.

And Prince Harry and Meghan Markle say they've cut off all dealings with four British tabloids after years of strained relations.

In a letter, the couple have told "The Daily Mail" and "The Sun" and "The Mirror" and "The Express" to expect zero engagement and that there is real

human cost to the way they go about their business. Wow. I think, there's perhaps more important things going on in the world.

All right. Coming up later on in the show, cutting through the spin and exposing the crisis for what it is. Former Australian Prime Minister Kevin

Rudd tells me how we got into this mess and how we get out of it, more importantly.

Plus a new innovation we can all see through where prospects and protection go hand in hand. Clearly, a safer way to test. We've got the details. Stay

with us.

(COMMERCIAL BREAK)

[09:21:10]

CHATTERLEY: Welcome back to FIRST MOVE live from New York, and we're still looking like a lower open to take place for U.S. stock markets this Monday

as investors await fresh data on the economic damage wrought by COVID-19.

New U.S. jobless claims numbers will be out Thursday along with our first look at U.S. and European manufacturing data for April. The first full

month of the COVID-19 lockdown.

Consultancy McKinsey says nearly 60 million workers in the E.U. and the U.K. could be subject to furloughs, lay-offs or wage cuts in the month

ahead. It says the E.U. unemployment rate could almost double to more than 11 percent.

In the meantime, reports say department store chain, Neiman Marcus could file for bankruptcy as soon as this week. That would make it one of the

most high profile retail victims of the crisis so far.

And as some European nations slowly follow Asian nations letting businesses breathe again, those include Germany and Norway, global leaders are looking

for the best way to get the world back on its feet again.

Former Australian Prime Minister Kevin Rudd joins us now via Skype. He is currently the President of the Asia Society Policy Institute. Kevin, always

a pleasure to have you on the show.

Clearly, the economic data spells out the urgency, health crisis aside, of getting economies back up and running. Are you fearful and how fearful, if

so, of policy mistakes being made here with the speed at which these decisions are being made?

KEVIN RUDD, FORMER AUSTRALIAN PRIME MINISTER (via Skype): To be fair to those, Julia, in decision-making positions now, this is an inordinately

complex policy challenge. It is the double barrel of the public health dimensions and the economic dimensions.

So, so far, the complexity of this at an intellectual level, giving rise to policy complexity, has been a real problem and then summoning the political

capital necessary to get decisions taken and implemented.

But after a slow start on the economic side, slow in convening the G-7, slow in convening the G-20, and the French and the Saudis had to step into

the breach on both of those institutions, it is good to see that some of the machinery now, particularly through the G-20 framework has begun to be

mobilized.

The work being done now by the Finance Ministers, you mentioned before in the earlier report, the Energy Ministers -- having all of these key

economies around one table, albeit a virtual table is a step in the right direction.

One further point, though, is on the global machinery, the I.M.F. so far, International Monetary Fund, is also doing a sound job at incorporating

much of the institutional learnings we had from the global crisis, which I well remember ten years ago.

CHATTERLEY: You know, it is interesting, in the past, we would have been talking about U.S. leadership driving many of the kind of responses I think

that is required when you are facing a global pandemic.

Instead of which, we're challenged I think here in the United States deciding how to operate in terms of re-opening, when, a lack of testing at

the nation level and criticizing bodies like the World Health Organization. Where does that leave us?

RUDD: Well, in the past, what normally has happened when a crisis hits like the Global Financial Crisis, I was Prime Minister when that unfolded, and

to give President George Bush his due, President Bush stepped into the breach and Hank Paulson was delivered the responsibility of dealing with

the U.S. financial system domestically.

And, George Bush was then tasked with pulling together the G-20 at Summit level for the first time.

So, the world both in that crisis and since it have become familiar with U.S. global leadership.

[09:25:14]

RUDD: Now, President Trump has a different approach. His America first political catch strategy has had a palpable effect on when the global

institutions work or don't work.

And so, President Macron has stepped into the bridge on the G-7, the Saudi leadership on the G-20. I.M.F. as I said before, functioning well, but it's

been difficult because of, shall we say, the rising nationalism and protectionism we've seen in the core of this exercise which has been

reflected in very much the postures taken by the United States itself.

CHATTERLEY: One of the other big differences between now and the financial crisis is that China -- China's economy is that much more important and

when China's economy slows or reports bad data, the whole world knows about it.

Kevin, there have been questions about trust in economic data, trust in the health data, and the communication that we've had from China. How worried

are you as someone who knows this country and the leadership incredibly well?

RUDD: Well, Julia, as we've discussed on this program a few times before, the data as it emerges from China always has to be tested against

alternative sources of data.

The growth predictions for example at present for this calendar year of 2020, China has yet to officially revise its official numbers for the year.

But plainly, if you put together all of the analyses we've seen from others, independent and some Chinese institutions, China will be very

fortunate, indeed, to come out of calendar year 2020 with probably zero growth.

But even Chinese institutions like CICC are now beginning to indicate very low growth achievement this year. So, the reality is we've got to always

distill the official numbers put out by the Central Statistical Bureau with what we find from alternative data sources.

China's economic recovery in my judgment, Julia, having looked at this economy for the last 35 years, will be patchy, uneven. It will depend on

industry. It'll depend on regions. It'll depend on whether these are manufacturing industries or domestic service industries.

But here's the big caveat on last time. The problem we now have is that China's own economy and its recovery will be hampered by the massive

recession we see unfolding in the rest of the world including its principal economic partners. That is a big factor and it's new.

CHATTERLEY: Right. Yes, if they are producing things and no one is buying that is going to harm their economy. The consumer in particular for me has

been lackluster in the early data that we've seen from China, too, and the consumer is far less important in the Chinese economy than it is in some of

the developed nations like the United States, like elsewhere.

How worried are you about the speed of recovery that we are capable of achieving? Exactly to your point, the whole world is impacted here.

RUDD: Well as you know, this is a three or four-piston global economy. Piston number one is the United States. Open question. I listened carefully

to your report before about double digit American unemployment emerging.

Two, similarly with Europe, a huge hit in the major central economies of Europe. Britain, the French, and the German economies, and then the

prospect of double digit unemployment there as the year unfolds.

China, I see at the second half of the year, there will be reasonable recovery, but not sufficient to compensate for the collapsed growth in the

first and second quarters.

On the Chinese consumer that you mentioned before, consumption does represent a high proportion of GDP now than it used to and the one central

stimulus package we see emerging from the Chinese government so far are consumer coupons being sent out to individuals to encourage them to lift

demand.

But, of course, as you know that is always calibrated with the return to normal life.

So, how does it all balance out in the end now that we have a Japan problem as well? I've got to say, by the time we get to the midpoint of the year, I

regret to say that the I.M.F.'s projections of several days ago about where we'd land with global growth by year's end may appear to be on the

optimistic side.

CHATTERLEY: Yes. Diplomatically put. I agree with you. Some of those pistons looking severely cracked at this stage. The question is, can we

piece them together? Kevin, great to have you with us as always. Kevin Rudd speaking there.

RUDD: Thanks, Julia.

CHATTERLEY: Thank you. Stay safe, sir, and great to chat to you again.

All right. The market open is next. Stay with us.

(COMMERCIAL BREAK)

[09:33:00]

CHATTERLEY: Welcome back to FIRST MOVE where markets are open, up and running this Monday's session and we are lower as we begin, as you can see,

off some 1.8 percent for the Dow.

Energy stocks are posting steep, early losses as the oil price tumbles again as we were discussing earlier in the show. We have got U.S. crude

currently, down some 40 percent as you can see. Now, trading just $11.00 a barrel.

This comes amid fears over demand, storage facilities are hitting their limits, too, and as John mentioned earlier, a key futures contract is

expiring tomorrow, so that is also putting some degree of nervousness into the market and pressure on prices.

In the meantime, New York Governor Cuomo said over the weekend that it is only halftime in the state's battle with COVID-19 and new polls show a

majority of Americans still fear that stay-at-home guidelines will be lifted too quickly.

This, I think, is a reality check. After two weeks of back-to-back gains on Wall Street, and as I said before, more U.S. testing is crucial here if

states are to begin opening up their economies safely. That's the broader view.

And it remains politically contentious at least here in the United States as many state governors call for more tests. Vice President Mike Pence says

the country is conducting around 150,000 tests a day.

But a widely discussed study by Harvard University says a minimum of 500,000 tests a day are needed to reopen the economy. My next guest thinks

the United States does not have sufficient testing capabilities to reopen.

Dr. John Lynch is a Board Member of the Infectious Diseases Society of America and Associate Medical Director at Harbor View Medical Center in

Seattle. Dr. Lynch, great to have you on the show. Thank you so much for joining us.

I just gave two numbers there, our current capacity which is 150,000 tests a day and some suggestion that we need -- what -- more than three times

that. What is your view of what this country requires in terms of testing on a daily basis?

[09:35:07]

DR. JOHN LYNCH, BOARD MEMBER, INFECTIOUS DISEASES SOCIETY OF AMERICA: Yes. Thanks for having me on. It is really important to think about this in two

contexts. One is a public health capacity and the second one is hospital capacity.

I can tell you right now talking to colleagues around the United States that for Infectious Disease doctors trying to get these tests done, it is

still not nearly where we need to be in order to simply take care of patients who are presenting with signs and symptoms of COVID-19.

The second is the public health capacity, the ability to do contact tracing is so important for controlling this. As we ease the social distancing

back, it is still not there either. We have to remember these tests also have to be embedded in a program to deliver them, and that program hasn't

been well-developed around the country.

CHATTERLEY: So, just to be clear, firstly you are saying even in hospitals, people are presenting with symptoms of COVID-19 and hospitals around the

country still don't have enough tests to test those people. That is your first point.

LYNCH: Correct. There are people presenting with probably mild illnesses or moderate illnesses where a lot of doctors don't have access to the tests

right now.

CHATTERLEY: And then, your second point, and I think this is critical, is also being able to trace once we've got somebody we've tested and they're

positive. You have to be testing those that they've been in contact with and finding out who else could have this. How many tests should we be doing

on average per person that we find that tests positive?

LYNCH: Well, it really depends upon the region you live in. So, here in my area of Seattle, we think that for every one person who is probably

infected, they probably have three or four or five contacts. But that is in the period of social distancing.

Here in Seattle, we've been practicing this now for quite a long time. But as those ease back, those number of contacts are probably going to increase

as people return to work.

CHATTERLEY: So, should we be having this discussion at all or should we be galvanizing at the state or the nation state level in the United States to

bump up our testing capacity? Because for me, given this conversation, there should be no reopening. We need to remain socially distant --

physically distant.

LYNCH: Yes, the social distancing has really bought us time, right, to build hospital capacity, to build up stores of PPE, to build up public

health capacity, but we still lack a Federal, nationwide plan for all of this is going to work.

We need to get access to tests in a way that you don't have to see a doctor for and we need to coordinate it at a regional level and a national level,

so its access is equitable everywhere.

We can plan for reopening the country to back off and ease social distancing, but we have to do it with a recognition that these tools need

to be in place in order to allow us to do that social distancing back up.

But also recognize that we're going to probably need to re-engage with some form of social distancing as those tools show us that more cases are

showing up.

CHATTERLEY: Yes. A daily decision is going to needed to calibrate this based on what we see in terms of cases. I think we have all, particularly,

on this show seen what other countries have done. South Korea, Taiwan for example, Singapore, these testing sites, mobile testing sites for example,

they are popping up in places around the United States, but nothing has been done on, again, a nationwide level to tackle this.

Are we even testing healthcare workers enough, never mind, those that present with symptoms coming into hospitals?

LYNCH: Well, you know, I can't speak for everyone in the country, but if we're not testing minimally symptomatic patients then I think we're

probably not testing healthcare workers as much as possible.

Here at my facility, at the University of Washington, we've made employee testing a really high priority and with that high priority in local

testing, we've tested well over 4,000 employees and that is in just one city.

That is not what's happening across the country, and we know this is a very high risk group that needs to be confident about the work they're doing.

They need to be able to stay home when they're ill.

So, that's again, part of the planning process that isn't in place. How do we provide for healthcare workers? How do we provide for first responders?

And then, how do we provide for the public going forward? It still remains open in terms of the national priority.

CHATTERLEY: Is this the message that the IDSA, obviously, you're a Board member is giving to the White House at this moment? And is there anywhere

around the country where you go actual judging by the numbers, the lack of cases or relative lack of cases they are safe? Or is this just a blanket

message -- we're not ready?

LYNCH: Well, I think, you know, it has to be applied locally and that is one of the key things around public health in the United States and

probably anywhere, but this message is really for the rest of the country. We need to be paying attention.

Our local health leaders, but our state leaders, our governors need to be engaging with the Federal government around what are the next steps that

are needed?

That national coordination is still not there and part of the IDSA recommendation is the establishment of a taskforce, both experts in public

health and infectious diseases and public health projects to get this work done in a coordinated fashion that is agnostic of other demands and needs.

It really needs to be what is safe and effective so that we can put the tools in place to allow the social distancing to back off and to recognize,

this is going to be a pattern that is going to continue for weeks and months and maybe even a year or two to come.

[09:40:18]

CHATTERLEY: Yes, and that's the message. A testing taskforce a nation, White House-led testing taskforce to coordinate this. It is what the

Defense Production Act is for.

Dr. John Lynch, thank you so much for coming to join us and to talk this through, and stay safe, sir. Please, you and your staff.

LYNCH: Thank you. Will do. Thanks for having me on.

CHATTERLEY: Thank you. The message once again. Oh, my phone is thanking me. Most welcome. Up next, the flat pack testing booth -- could this innovation

be exactly what we were just talking about? The key to fast and safe testing? Stay with us.

(COMMERCIAL BREAK)

CHATTERLEY: Welcome back to FIRST MOVE where you are looking at live pictures of German Chancellor Angela Merkel talking about the country's

plans to re-open, and as you would expect, the message from the Chancellor this morning is that the country will remain cautious. They will be

disciplined in this process that what they don't want to do and we've been discussing it throughout the show is risk a relapse in contagion.

So, a delicate, delicate balancing act here between restarting the largest economy in Europe, but also trying to mitigate the risk of a pickup in

contagion.

We will bring you further details as the Chancellor continues to speak, but for now we'll move on.

Silicon Valley startup, Room used to make phone booths for open plant offices. Now, it has adapted the Plexiglas design to create coronavirus

testing booths.

As you can see there in the pictures, the three-pane structure creates a barrier between the health care workers and the patient that they are

testing.

Better yet, it ships flat pack and can be set up in 30 minutes.

Joining us now, Brian Chen, co-founder and CEO of ROOM. Brian, fantastic to have you with us. Just to be clear, this is still what your company does.

You just decided we can do something to help with the need for safer testing, and you developed, produced this, and are now shipping it to

hospitals in the country and in other countries around the world.

Talk us through the decision and how quickly you moved.

[09:45:38]

BRIAN CHEN, CO-FOUNDER AND CEO, ROOM: Hey, Julia. Thanks for having me. Yes, absolutely. In normal times, ROOM is a fast growing startup. We are

reimagining the modern workplace, our first product is a soundproof phone booth as you mentioned that ships flat, assembles on site.

In less than two years of actually being in business, we have over 3,000 customers. We've delivered over 10,000 booths to customers in the U.S. and

Europe.

Now, when the crisis hit, you can imagine our business was very much impacted, and we looked for ways for how we could help.

Now, I really think that entrepreneurs and start-ups have a critical role to play in our world's response to this pandemic, right? The moment that we

are in requires innovation, fast moving creativity.

And these are things that start-ups are really well-positioned to deliver. So, you know, you were talking earlier about the importance of testing. We

saw a test booth being used in South Korea. They've done an incredible job at scaling their testing efforts there.

We saw that product adapted at Brigham and Women's Health. And we, as a team looked at the product and felt that we could really repurpose our

design, engineering, and supply chain capabilities to help.

So, in a very short couple of weeks, we went from idea to first units leaving the factory, and we have a great group of hospitals that will very

soon be using our test booths. So, we've moved very quickly and very happy to be helping the cause.

CHATTERLEY: I mean, it is a phenomenal story of innovation in times of crisis, seeing what South Korea are doing and going actually, we can adjust

what we can create to try and help.

And just so that our viewers know, I believe you are giving them free to these hospitals and you've open sourced the details so that others if they

want to produce this flat pack and send this out themselves, they can.

CHEN: Yes, absolutely. So we -- in the spirit of wanting to move quickly and get testing up and running in as many places as possible, while also

protecting healthcare workers and patients who are getting tested, we decided that we would donate our test booths to initial launch partners.

But as you said, you know, this is not a challenge that can be solved by a single company or even by a single country. We really need all hands on

deck, and so we have open sourced our design files so that manufacturers and makers can really contribute locally and help get these test booths to

as many testing centers as possible.

And after this initial wave of donations that we have kind of kick-started, we've also launched a GoFundMe campaign so that we can really start to

finance and get the word out about this test booth and get it to as many places as possible.

CHATTERLEY: Yes, I'll tweet out the GoFundMe page as well, because I think this is a brilliant idea. When I saw this, I was thinking this need to be

in airports, this need to be in big companies. This need to be wherever testing over the next six, 12 months is going to have to be done as we

bridge the time to a vaccine. This kind of technology basically is going to be used.

Where else have you had inquiries from? Because I know it is not just U.S. based hospitals and Mexico that we're talking about. You've had other

inquiries.

CHEN: Yes, absolutely. I mean, first, I think it's very clear that testing is front and center in how we get back to any sense of normalcy, right?

The plans are for millions of tests to be conducted in a week. So, the need for this is tremendous. The initial partner is just to highlight our --

include top hospitals in the U.S., including Cedar-Sinai, Boston Medical, University of Washington Medical Center.

As you mentioned, we have inquiries from Mexico, the United Kingdom, and France. This obviously is a global pandemic and it requires a global

response.

So that's why, you know, we've open sourced it and IT will be leveraging our global supplies and capabilities.

CHATTERLEY: And if people want to help, they can go to your GoFundMe page to give you money. Just give me a sense of what one of these costs just so

that people understand.

CHEN: Yes, so in normal times, our business, our core business is selling these modular, purpose built infrastructure solutions to offices and what

we really try to do is bring costs down so that as many companies as possible can use our products on a regular basis.

So, we've really built this expertise in cost effective, scalable solutions, and we've applied that same logic to the test booth that we're

launching.

We expect this to be somewhere between $1,000.00 and $1,500.00 in terms of costs.

CHATTERLEY: Wow. Thank you so much for your innovation, for your team's hard work, and for what you're doing. We all thank you and good luck with

it, and stay in touch, please, Brian.

CHEN: Thank you for having me.

CHATTERLEY: And like I said, I'll tweet out the GoFundMe link as well so people can help if they choose to. Brian Chen, co-founder and CEO of ROOM.

Thank you, and stay safe.

[09:50:56]

CHATTERLEY: All right. After the break, things that make you go Zoom. A safe way to help seniors living in care homes.

Plus, the wedding crasher. Guess who showed up after this couple made their vows on video? Okay, that's next. Stay with us.

(COMMERCIAL BREAK)

CHATTERLEY: Welcome back to FIRST MOVE. As hospitals and care homes restrict visitors or ban them all together in this pandemic, one place has

found a way to work around the rules.

Anna Stewart reports on the adopt-a-grandparent program which is making life a lot less lonely for some very important people.

(BEGIN VIDEOTAPE)

FREYA: I thought that that you'd laugh at my school.

SHEILA: I'll be your friend.

(END VIDEO CLIP)

ANNA STEWART, CNN REPORTER (voice over): Seventy-four-year-old, Sheila and 5-year-old, Freya have been keeping each other company over video. They

aren't related. They are part of a program called adopt-a-grandparent that puts virtual volunteers in touch with care home residents. These two hit it

off immediately.

(BEGIN VIDEO CLIP)

SHEILA: Oh, that's lovely. You are a clever girl.

(END VIDEO CLIP)

STEWART (voice over): For residents like Sheila whose family can't visit her at the moment, this new little companion has become another member.

(BEGIN VIDEO CLIP)

SHEILA: When it was Freya, I thought, oh, she's such a lovely little girl.

(END VIDEO CLIP)

STEWART (voice over): The program's organizers say interest has skyrocketed with over 70,000 volunteers signing up in the last four weeks.

(BEGIN VIDEO CLIP)

SHALEEZA HASHAM, CHD LIVING: It's been absolutely amazing and so heartwarming. We never expected anything like the numbers of volunteers we

have received and people from all over the world -- Australia, America, Greece, India, Africa.

(END VIDEO CLIP)

STEWART (voice over): And what better way to fight loneliness than with a bit of dressing up with new friends?

(BEGIN VIDEO CLIP)

FREYA: Where did your bunny ears go?

SHEILA: They are fun. Oh, my bunny ears are like yours.

(END VIDEO CLIP)

STEWART (voice over): Anna Stewart, CNN, London.

(END VIDEOTAPE)

CHATTERLEY: I think everyone benefiting from that, and a Zoom wedding with a difference when a surprise guest popped up at the video ceremony for an

N.H.S. nurse, Hayley Skelton and her husband, Harvey, it was none other than the British singer, Ellie Goulding. Take a listen.

[09:55:10]

UNIDENTIFIED FEMALE: To sing your first dance song, we present Ellie Goulding.

HARVEY SKELTON: It's Ellie Goulding.

ELLIE GOULDING BRITISH SINGER: Hey, so congratulations, Harvey and Hayley and you're both heroes and we all love you.

(END VIDEO CLIP)

CHATTERLEY: To remind us there to spread some love and happiness in incredibly difficult times and for all those postponing their weddings at

this moment, we know a few of them on our show, too, I'm sure, it will be worth the wait.

Take care of yourselves and each other, please, and we'll see you tomorrow.

(COMMERCIAL BREAK)

[10:00:00]

END