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First Move with Julia Chatterley
Investors Looking For Rate Cut Hints As The Fed Chair Testifies On Capitol Hill; U.K. Ambassador Who Called President Trump Inept Has Resigned; U.S. Women's Football Team Celebrated In New York City. Aired 9- 10a ET
Aired July 10, 2019 - 09:00 ET
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JULIA CHATTERLEY, CNN INTERNATIONAL ANCHOR, FIRST MOVE: Live from New York, I'm Julia Chatterley. This is FIRST MOVE and here's your need to
know.
Poised for Powell. Investors looking for rate cut hints as the Fed chair testifies on Capitol Hill. Stepping down. The U.K. Ambassador who called
President Trump inept has resigned. And the victory parade. The U.S. women's football team celebrated here in New York City. It's Wednesday
let's make a move.
Welcome once again to FIRST MOVE, a shortened version of the show today though, but for great reasons. The U.S. Women's World Cup team here in New
York for a Ticker Tape Extravaganza, that's going to begin in around 30 minutes' time and we will be taking you there live.
But first, there is plenty to get through, so let's get to it. Fed Chair Jay Powell is making his first move to Capitol Hill for two days of
testimony.
The big question of course is being, will he indicate a rate cut is likely this month or tone down some of the investor optimism out there. Patient
Powell or dovish Powell? Well, I can tell you that in his opening address, he highlights both the unresolved trade tensions and worries about the
global economic outlook. We will break it all down for you shortly.
But for now, that's the message and it's been enough to turn the U.S. stocks futures positive in the past half hour or so. As you can see the
NASDAQ outperforming right now. Now, speaking of trade, we have also perhaps seen some positive signs on the trade front, too.
Treasury Secretary Mnuchin and U.S. Trade Representative Bob Lighthizer spoke to Chinese Vice Premier Liu He on the phone yesterday, building on
last month's trade truce. We've also got more detail on the government's plans to relax its ban on Huawei allowing U.S. companies to apply for
licenses to sell goods to the firm.
So signs of greater diplomacy on a future trade deal perhaps and actually, diplomacy, or perhaps I should say the lack of it is where we're going to
kick off the drivers.
The U.K.'s Ambassador to the United States has resigned. It follows leaked cables in which Sir Kim Darroch called the Trump administration both inept
and clumsy. President Trump has said the White House would no longer deal with the Ambassador calling him quote, "a very stupid guy." British Prime
Minister Theresa May has expressed her regret at his resignation.
(BEGIN VIDEO CLIP)
THERESA MAY, BRITISH PRIME MINISTER: Good government depends on public servants being able to give full and frank advice. I want all our public
servants to have the confidence to be able to do that and I hope the House will reflect on the importance of defending our values and principles,
particularly when they are under pressure.
(END VIDEO CLIP)
CHATTERLEY: Max Foster joins us now from London. Max, great to have you with us. I find the whole situation pretty mind boggling, quite frankly.
But if we cut to the chase here, when a U.S. president says he won't deal with you, when a future Prime Minister of the U.K. is Boris Johnson doesn't
back you, then you kind of have to step down.
MAX FOSTER, CNN LONDON CORRESPONDENT: That's the reality. I mean, we were surprised because everyone across the board in government basically said
that Kim Darroch was doing his job offering Frank assessments of the current administration and all Ambassadors all around the world do exactly
that.
So it was a bit of a surprise, but his family has been under some pressure, we understand; and this from a government official speaking to CNN, he
apparently made the decision to resign after seeing Boris Johnson who is the front runner to replace Theresa May as Prime Minister, refused to
support him during Tuesday night's election or leadership debate on ITV.
Jeremy Hunt, the other contender going out of his way to say that he would keep on Kim Darroch as Ambassador if he became Prime Minister. But of
course, Boris is the front runner. So if you don't have the support of the incoming Prime Minister, and you're resigning at the end of the year anyway
to retire, why stay on. Many people here feel, Julia, he has simply done the honorable thing.
CHATTERLEY: Yes, I mean, the situation here as well, as you know, where did this leak come from? There's been furious speculation over whether it
was done for political reasons. Ultimately, what does Theresa May do now to replace him? And what do we do about the relationship going forward?
Because you kind of have to choose someone who is a Brexiteer here that is liked, it seems by Donald Trump, otherwise you find yourself in a very
difficult situation once again like Kim Darroch did here.
[09:05:03] FOSTER: Well, it's going to be interesting to see how Theresa May responds because now that he has resigned, it's the incumbent Prime
Minister that decides who is going to replace him in Washington, or does she allow Boris Johnson if he becomes Prime Minister to make that decision?
The tradition certainly is that civil servants take on that position in Washington, but it's not completely unprecedented for political
appointments to be made there as well. That's happened in the past. Peter Jay, for example, in the past, so, potentially, I mean, the wild
speculation is that, you know, this was all a way of getting Nigel Farage potentially in that position, which is something that Donald Trump may
like. Could that be a solution for Boris Johnson to get him out of British politics and over to Washington?
We're talking about the realms of speculation now, but considering recent events, Julia, we're considering anything as we report this story. We
don't know what's going to happen next.
CHATTERLEY: Yes, the belief was that Nigel Farage wanted it before the 2016 elections and was lobbying for it, Max, what do you think? What's the
probability?
FOSTER: Well, you know, it will be up to Boris Johnson, if he becomes Prime Minister to decide. He could make that appointment if he wants. It
wouldn't go down particularly well, within the civil service, of course, and Boris Johnson needs civil service to support him in Downing Street. I
just don't know. Who knows? Boris Johnson isn't traditionally that consistent. So I just don't want to predict what he is going to do when he
becomes Prime Minister.
CHATTERLEY: Yes, I am with you. I don't know is a very valid answer. Max, thank you so much for that. All right, let's move on to our next
driver. On Capitol Hill, Federal Reserve Chair Jay Powell is due to testify before Congress in just under an hour's time. Clare Sebastian
joins me now.
Clare, as I mentioned earlier, the speculation was would he confirm the market pricing of a rate cut here or pare back? Well, he is pointing out
the uncertainties in his statement it seems.
CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT: Yes, absolutely, Julia. If he was going to try to recalibrate market expectations away from a rate cut
in July, this was a really good opportunity to start doing that. But it doesn't look like he is going to.
His prepared remarks, as you say, really emphasizing the ongoing uncertainties in the economy. I want to read you a section of what he's
going to say when he starts talking in about an hour's time.
He is going to say, "Uncertainties about the outlook have increased in recent months, in particular, the economic momentum appears to have slowed
in some major foreign economies and that weakness could affect the U.S. economy."
He continues, "Moreover, a number of government policy issues have yet to be resolved, including trade developments, the Federal debt ceiling and
Brexit." So a lot of uncertainties he is pointing out that he also says he has seen business investments, slow quote, "notably." He continues to see
persistently low inflation.
And he used that new banner phrase that we've seen from the Fed recently, that he will act as appropriate to sustain the expansion. Since he first
used that phrase, Julia, at the beginning of June, we've seen the Dow rebound significantly. That was the clear sign yet that the markets had a
rate cut potentially in June, that didn't happen, but now in July.
So seeing that now for the third time in public, it does look like any data that we get between now and the next meeting will have to really knock it
out the park to avoid a rate cut at the end of July.
CHATTERLEY: Yes, you make a great point. He is in a really tough position here. I mean, the President has said that the Central Bank is America's
greatest problem.
If they cut rates, they look like they've been influenced; if they don't cut rates, they risk a temper tantrum in the markets. Tough.
SEBASTIAN: It's a really tricky balancing act, Julia. And it is risky. You know, we've heard recently from some really high profile figures,
Stanley Fischer, the former Vice Chair of the Fed said that the risk of the Fed cutting rates as much as the President wants might outweigh the short
term positive of doing that for the economy. So people are very worried about this.
As for Powell himself though he has consistently denied that the Fed is susceptible to any of what he calls short term political pressures, he is
the kind to comment on any contacts between himself and the White House.
So you know, we expect that this might come up in the Q&A on Capitol Hill today. But we do know that his relationship with the Members of Congress
is a lot more sympathetic than with the White House or at least, the exchanges are not expected to be too acrimonious on this.
CHATTERLEY: Yes. A welcome change. Clare Sebastian, thank you so much for that. All right. Next driver, Levi Strauss reporting a 63 percent
plunge in second quarter profits, missing expectations and sending shares down some six percent premarket.
Levi's blamed the drop on the cost of their recent IPO. Paul La Monica joins me now. I mean, to be fair, Paul, $29 million is a pretty fair sum
for going public, quite frankly. But it's more complicated than that, isn't it? It's also about the outlook.
PAUL LA MONICA, CNN BUSINESS REPORTER: Yes, I agree. I think that investors are willing to forgive the one-time expenses tied to the IPO.
The bigger issue, Julia, is that Levi Strauss is warning that sales growth in the second half of the year is going to slow a bit. Part of that is due
to the uncertain outlook for many of their retail partners.
You've had many store closures in American malls and retailers going bankrupt and also I think there are some concerns as well about China
growth.
Obviously, there's still some trade tension between the U.S. and China, China revenues are growing, but not as much I think, as some investors
would have hoped. And, you know, I think this is an area where Levi Strauss needs to do a better job of really kind of pitching their jeans as
a quintessential American brand for a lot of aspirational Chinese consumers.
[09:10:19] CHATTERLEY: Yes, this is such a great point, Paul. I was looking at the numbers here. I mean, if you look at global apparel market,
it's 20 percent. China is 20 percent of that market. But China is only three percent of Levi's revenue.
So the opportunity for these guys, if they can get there is, is pretty huge, and they recognize that. But if I look more broadly on the
international front here, the America is three percent growth, nine percent growth in Europe, six percent in Asia when we're talking revenues overall,
you know, the international market looks pretty strong for these guys.
LA MONICA: Yes, I think that a lot of people recognize that the growth opportunities for Levi Strauss lie abroad. It is Europe and it is Asia.
The U.S. is a market that is slowing, it is maturing. And of course, why not? This is a 166-year-old company. So we're not talking about the most
dynamic of, you know, hot young growth companies here.
But remember, when Levi Strauss went public, the stock did extremely well in its first few months. So even with this pullback, it's still up pretty
significantly from its IPO price for about $17.00. So Levi Strauss has done much better than Uber and Lyft, for example, which were the two most
hyped IPOs of the year.
CHATTERLEY: Yes, it is about -- what is it? Thirty three percent -- kindly do the math there. That could be wrong. Don't trust me
necessarily. Paul La Monica, thank you so much for that, more than 30 percent, at least, I can do the math.
All right. Let me bring you up to speed with some of the other stories that are making headlines around the world.
A short time ago, the German Chancellor Angela Merkel was seen shaking at an event in Berlin. It's the third time in recent weeks. Mrs. Merkel
addressed the shaking saying she is quote, "very well and one does not have to worry."
It's the last time that you want to see -- oh, it's the last thing you want to see out of an airplane window, a metal nose cone loose inside the engine
midflight. Wow. It happened. Delta Flight 1425 was forced to make an emergency landing in North Carolina on Monday. The plane did land safely
and the airline said the engine has now been replaced. It's due to be back in service this morning.
The U.S. National Women's football team will be showered with Ticker Tape today to celebrate their record World Cup win. Team USA beat the
Netherlands, two nil in a thrilling match on Sunday. We'll bring you CNN's special coverage of the festivities here in New York City later this hour.
I can't wait.
Ahead of that, the team's co-captain and Megan Rapinoe has a message for President Trump, "Do better." She sat down with our Anderson Cooper,
Tuesday and discussed why she and her teammates are refusing to visit the White House.
When asked what she would say to the President, if he were watching, she urged him to be more inclusive.
(BEGIN VIDEO CLIP)
MEGAN RAPINOE, CO-CAPTAIN, U.S. WOMEN'S SOCCER TEAM: I think that I would say that your message is excluding people. You're excluding me, you're
excluding people that look like me. You're excluding people of color. You're excluding, you know, Americans that maybe support you.
I think that we need to have a reckoning with the message that you have and what you're saying about Make America Great Again. I think that you're
harking back to an era that was not great for everyone.
(END VIDEO CLIP)
CHATTERLEY: All right. When we come back, Microsoft setting up shop in the U.K. We will have all the details. Stay with us.
(COMMERCIAL BREAK)
[09:16:44] CHATTERLEY: Welcome back to FIRST MOVE where U.S. stock futures have turned positive ahead of Fed Chair Jay Powell's testimony on Capitol
Hill today.
In his prepared statement released within the past hour, Powell highlights the unresolved trade tensions and continued worries about the global
economic outlook. His testimony before Congress begins at the top of this hour.
Joining us now, Alan Ruskin is Chief International Strategist at Deutsche Bank, and he joins us from the New York Stock Exchange. Alan, always great
to have you on the show.
Obviously, we've only seen the initial statement, and we've got a long time to come in terms of testimony. But is that your initial read? Sort of
confirmation of market pricing and a rate cut this month?
ALAN RUSKIN, CHIEF INTERNATIONAL STRATEGIST, DEUTSCHE BANK: Yes, I thought it was rather unambiguous. I think the market has started to think that
the choice was going to be sunny between zero and 25 basis points, rather than a 25 basis points cut versus 50 basis points.
But I think after this particular testimony, I think there's a lot of confidence that it's going to be 25 basis points, so it is pretty
unambiguous.
CHATTERLEY: Do you think he uses the term insurance, the idea of an insurance rate cut just to frame market thinking that perhaps this is a
mini-cycle cut, rather than we're going into like a longer drawn out process of cutting rates here because you can sort of pep the economy up by
one and ad hoc rate cuts hair rather than going into a sort of full cycle of rate cuts?
RUSKIN: Yes, I think that's a critical question for the market. Clearly, the market is thinking more in terms of a cycle of rate cuts. He didn't
give many clues on that. I didn't think -- you know, just reading the texts, I mean, I had read it on the way before this hit. And what I saw
was no use of the word insurance.
So my read is in general, he is quite happy with what the market is pricing in. The market is still pricing -- and I think roughly about an 80 percent
probability of another cut in September. That strikes me as a little bit on the rich side, a little bit aggressive from the market.
But the market I think, is not being fazed really by anything that he said and was looking for more of a cycle of rate cuts going forward.
CHATTERLEY: Alan, is it the right decision to be cutting rates based on the data? I mean, to your point the payrolls, the jobs number on Friday
added, perhaps a bit more cautiousness into the thinking here. I mean, we have an incredibly strong jobs market and the consumer here in the United
States. The offset, of course, to that is, is soft inflation hereto?
RUSKIN: Yes, it is not the most compelling environment for a rate cut I've seen. In fact, probably one of the least compelling, you know,
particularly with what you mentioned in terms of the payrolls numbers, what we've got in terms of financial markets as well.
That being said, I think the economy has slowed down. Powell did mention in particular the slowing that we're seeing in the investment side, there's
lots of trade uncertainties.
The good news is that the consumer still looks rather good, so that I think it is the tussle -- that is the battle we are seeing at the moment between
the investment side that's looking weak and the consumer that is looking solid. Let's see which one wins.
CHATTERLEY: You know, it's interesting. We had a conversation on FIRST MOVE yesterday with the Liz Young of BNY Mellon and she said she doesn't
think that they will cut rates in July, and I said, how are they going to signal that? How are they going to prevent some kind of tantrum in the
market and a sort of dramatic repricing, particularly in stocks here? Is there time for them to change their mind here, Alan, with the data that we
get between now and the 31st of July?
[09:20:18] RUSKIN: No, I think it would be very unwise whether to go down that path. We don't get particularly important data in terms of, you know,
a shuffling of expectations, the CPI data, the retail sales data, I don't think would be sufficient to change the markets pricing. And it would be
very silly if the Fed tried to go down that path.
CHATTERLEY: It was interesting, it's not just about the Federal Reserve here and the prospect of them providing great easing here. You've got a
more dovish European Central Bank. Central Banks the world over are all making more dovish noises here. Is that all investors need here? Whether
they are stock market investors or other assets -- emerging market assets to continue to see positive gains perhaps for the third quarter, if not the
rest of the year?
RUSKIN: I think it is still a constructive environment mostly for risk. I think the U.S. market probably benefits more than most. But the main
reason for that, I think, is a lot of the other Central Banks, notably, the European Central Bank and the Bank of Japan don't have the scope to ease
that the Federal Reserve has. So I think, the U.S. markets probably will benefit more than most.
CHATTERLEY: If I look at what's going on in the U.S. market, though, and I look at the larger cap stocks versus the smaller cap stocks just over the
last year, the smaller cap stocks have dramatically underperformed. It's around 15 to 16 percentage points. What message are investors sending
there about the domestic -- more domestic focus stocks? And have they got it right?
RUSKIN: Yes, I think, you know, there's clearly a concentration of capital going into the larger stocks or the larger cap stocks. I think, we are
probably seeing something in terms of the broader economy as a whole, whereby ADP, small business employment, for example, is significantly
weakened of late.
So maybe there's something going on with regard to smaller businesses as well. Historically, when you see the large caps be vastly outperforming
the small caps. That's not a great signal from a leading indicator standpoint. So it does tend to signal some slowing in the economy as well.
CHATTERLEY: Yes, I am just sensing signals. Alan Ruskin, Chief International Strategist at Deutsche Bank. Sir, fantastic to have you on
the show. Thank you for joining us.
RUSKIN: Thank you.
CHATTERLEY: All right. Let me bring you up to speed with today's "Boardroom Brief." Jay-Z is no longer just a businessman, he is now a
canny Cannabiz-ness man. Did you get it? I don't know whether I said that right?
The billionaire rapper and producer is the new Chief Brand Strategist for California based, Caliva. Jay-Z is the latest celebrity backer in an
industry that's been riding high since cannabis was legalized in a number of U.S. states.
Earlier this year, Caliva raised $75 million for investors, including former NFL star, Joe Montana, and former Yahoo CEO Carol Bartz.
Netflix will be forced to make a business pivot as it faces another breakup. Let's be clear, it wasn't a break.
[VIDEO CLIP OF SHOW "FRIENDS" PLAYS.]
CHATTERLEY: Yes, we've all been there. See the doctor, helps you just chop them up. CNN's parent company WarnerMedia announced, it is pulling
"Friends" from Netflix to stream exclusively on its own new service, HBO Max in 2020. It marks a third for Netflix. NBC announced it's bringing
"The Office" back home in 2021.
And of course, Disney recently announced it is pulling its content back to its site, Disney Plus, so another blow.
And it's a sad day for Beatles fans. No, not those Beatles. These ones. After seven decades of production Volkswagen is retiring its most iconic
car. The last VW bugs roll off an assembly line in Mexico today. The company will mark the occasion with a ceremony in the factory before
sending the very last one to a museum.
Microsoft's hard Brexit gamble, the tech giant launches a London flagship despite the looming uncertainty there. Anna Stewart has the details and
has been talking to them.
Anna, a welcome sign I think for the U.K. government here and not only that, the Brits as well. Talk us through it.
ANNA STEWART, CNN REPORTER: It certainly is. The doors officially open to the public tomorrow, but I did get a sneak peek yesterday. And it is
interesting. This is their very first and only European store. They have chosen London and that's despite this seemingly never ending uncertainty
around Brexit, the incredibly high risk of a no deal Brexit and the fact that consumer sentiment here is at its lowest since the mid-1990s.
So I spoke to the U.K. CEO and asked is this a vote of confidence in a post Brexit Britain?
(BEGIN VIDEO CLIP)
[09:25:13] CINDY ROSE, CEO, MICROSOFT U.K.: We've been here for nearly 40 years, so we're very committed to being in the U.K. for another 40 years.
And I think this is probably the most visible sign of our continuing investment in this market, in addition to all of our offices and employees
and our startup reactor and our ventures arm and our research facilities in Cambridge.
We've got many, many businesses in the U.K. and we're committed to being here regardless of what happens on the political landscape.
(END VIDEO CLIP)
STEWART: Committed to being here, but they are in discussions with the government. They say, they have been since the referendum about what they
want to see out of Brexit. The government is of course thrilled by this commitment though.
Now actually in the store itself, Julia, there was a real McLaren that had been turned into a motorsport simulator. It has a gaming lounge has. It
has AI. It has VR. But you know what? The one thing that they no longer have, Huawei products. No Huawei laptops there.
Now, we knew that they pulled them online and from U.S. stores already since the U.S. put Huawei on a trade blacklist, but they're not in the U.K.
store either. And I did speak to them, and I asked, you know, is this permanent move? Very tight lipped. I think all they said was they are
constantly evaluating the situation -- Julia.
CHATTERLEY: It all sounds very exciting. Now, I was just watching the pictures there and I just saw an Apple store pop up. Can we show that
picture again? Anna, what's going on there?
STEWART: Well, you know what? This store is right on Oxford Circus and it is literally a stone's throw away from the iconic Apple Store. It is so
close. And it also bears a more than a passing resemblance, I'd say. It's bright, it's white. It has a feature staircase.
It has what they call answer desks, which are mighty like the Genius Bar. They also have a community theater. Lots and lots of similarities to Apple
and off record, I do believe that they are looking forward to welcoming customers from Apple and they are very willingly they say to put windows
onto any Mac book, iPad, and perhaps they'll install an Xbox at the same time.
CHATTERLEY: How exciting. Anna Stewart, great job. Thank you so much for that. All right, that just about wraps up the show. You have been
watching FIRST MOVE.
I'm very excited. I'm British. I'm going to go and drink a cup of tea. I'm going to do that gesture because that actually made me laugh from the
World Cup winners, of course, Team USA.
We're going to be covering their parade in just a few moments' time, so I will hand you off to that. We'll see you tomorrow.
(COMMERCIAL BREAK)
[09:31:07] POPPY HARLOW, CNN ANCHOR: All right, welcome to our viewers in the United States and around the world. I'm Poppy Harlow in New York.
And this is what is happening this morning in New York. This is the start of the great Ticker Tape Parade celebrating, honoring the women's national
team World Cup champions. Let's go to Dave Briggs. He is at the start of the parade. Literally, Dave, revving up the engines.
DAVE BRIGGS, CNN ANCHOR: Yes, they are revving up the engines right behind me, Poppy. These are the Misfires who are leading this parade, an all-
female very excited motorcycle club.
I've got to tell you, this U.S. women's national team is not just the best soccer team on the planet, they are extremely prompt. They are all out
here loading up the floats ahead of 9:00, all ready to go for what looks like a 9:30 on time start.
It's the second straight Ticker Tape Parade here in New York City for this team. The last time, of course, 2015. Only one other team has had
consecutive parades in New York City, and that's of course, the New York Yankees. They have had six parades overall through the Canyon of Heroes
that they are calling the Canyon of Sheroes, of course, today.
There have been more than 200 of these parades total. So it's really routine. They are very familiar with. And I step back out of the shot.
We get a look, again, at the Misfires getting ready to lead the troops through.
We'll get a look at all of the players in just a couple of minutes. I know the head coach, Jill Ellis is leading this team on the front float, as well
as Rose Lavelle and a couple other of the super stars. We'll get a look at them here in just a couple of minutes -- Poppy.
HARLOW: I'm still pinching myself because I got lucky enough to get to sit next to Rose Lavelle and Kelley O'Hara on the set yesterday and they were
beyond wonderful.
Brooke Baldwin, you are sort of mid-parade, right?
BROOKE BALDWIN, CNN ANCHOR: Yes.
HARLOW: And last time you joined us, you were with these amazing young women talking about so much more than goals and sport. I mean when you
look at what Tobin Heath said about equal pay, that this is the start of something massive and culture changing.
BALDWIN: Yes.
HARLOW: Does it feel like that to you there?
BALDWIN: It feels -- I was at the Women's March, right, a couple of years ago ...
HARLOW: Yes.
BALDWIN: ... and this feels reminiscent of that, only these ladies are half the size, many of them are of the ladies that I talked to in
Washington, D.C., a couple of years ago. And so I want to introduce you to my whole new group of friends. We've got teammates, sisters, the lone
brother.
And so, Sean, my man, I'm starting with you. Why did you want to come?
SEAN: I wanted to come because it shows big women empowerment and it deserves -- it shows that the women deserve equal pay and are just as equal
to the men.
BALDWIN: You really believe that?
SEAN: Yes.
BALDWIN: Your sister didn't just put you up to that?
SEAN: No.
BALDWIN: That's awesome, thank you. Ladies, you've got -- they're from Philadelphia. I was like, what time did you wake up? And you said, when
my mom came in my bedroom, which was around, what? 4:3?
UNIDENTIFIED FEMALE: Yes, 4:30.
BALDWIN: Who are -- who do the -- what do these women mean for you, ladies?
UNIDENTIFIED FEMALE: They're like inspiration because they're fighting for what's right on and off the field and --
UNIDENTIFIED FEMALE: Yes. So they don't care. They are just trying to do the right thing and they will do that no matter what. And I think they're
trying to sets us up for success and they're doing a great job.
BALDWIN: How about just the sheer soccer badassery. I'm sorry, can I say that on CNN? I mean, right, like, what was your favorite play, goal,
moment of the whole series?
UNIDENTIFIED FEMALE: Oh, it was definitely the celebrations. When Alex Morgan was sipping the tea and --
BALDWIN: Do it.
UNIDENTIFIED FEMALE: Yes.
UNIDENTIFIED FEMALE: And --
BALDWIN: She was criticized for that.
UNIDENTIFIED FEMALE: She was.
UNIDENTIFIED FEMALE: Yes, it was like this.
UNIDENTIFIED FEMALE: Yes, she had her little pinky up.
BALDWIN: Why, ladies -- who are you most excited to see? And if you were to meet them for five seconds what would you say?
[09:35:05] UNIDENTIFIED FEMALE: Probably Julie Ertz. And I would probably say that she is a big role model to me and I'd try to have my game like
hers.
BALDWIN: Same question.
UNIDENTIFIED FEMALE: I'm not sure. Maybe all the players. And I would say thank you because -- for fighting for equal pay and working to get
equal pay and women's rights.
BALDWIN: And all of those things, right? They feel like they play so many games, they win so many more and they want to make sure, Poppy, that
they're paid the same. Lastly, quickly, on three, "Go USA." One, two, three.
CROWD: Go USA.
BALDWIN: Poppy, back to you.
HARLOW: Oh, my gosh, I love that. I love all of you. And, Sean, I hope my son ...
BALDWIN: Well done.
HARLOW: ... grows up to be just like you, my friend. Alisyn Camerota is with us as well. Ali, did you hear that little boy?
ALISYN CAMEROTA, CNN ANCHOR: I did hear him.
HARLOW: Oh.
CAMEROTA: And, you know, it reminded me so much of my daughters who just graduated eighth grade. And my daughter, for her final project, did the
U.S. women's soccer team and equal pay.
HARLOW: Love that.
CAMEROTA: That is the issue that she wanted to do because it has trickled down to so many girls across the country, around the world. It has brought
this issue to light.
And so that's what today represents, as much as their huge, stunning championship. So we're here in front of City Hall. This is where the
Ticker Tape Parade will end and the mayor will give them a hero's welcome.
But I'm standing -- I'm sitting next to Briana Scurry and she, of course, made the iconic save in the 1999 World Cup.
And you've just been listening to all of this and watching the reaction to this team. I would say it's exactly 20 years ago to the day.
BRIANA SCURRY, U.S. GOALKEEPER, 1999 WOMEN'S WORLD CUP CHAMPION: Yes.
CAMEROTA: That you had that moment.
SCURRY: Yes.
CAMEROTA: And, you know, I think that this team has given you guys a lot of props. They've talked about the legacy that they inherited from trail
blazers like you.
SCURRY: Yes.
CAMEROTA: And what is that like to listen to them?
SCURRY: It's truly amazing. One of the stories that comes to mind for me is I saw a picture recently out on the internet of Rose Lavelle, when she
was like eight or nine years old dressed up like Mia Hamm for her school project.
And now Rose Lavelle is in the front car of the parade, playing, doing a fantastic job in the game, getting that second goal in the final.
I mean if there is any other way to determine whether what you're doing is the right thing, is a good thing, is a positive thing, that's it for me.
She went from being someone who watched and wanted it to now she is living it. And that's just truly amazing to me.
CAMEROTA: And you're also being very humble because you blazed a trail for them.
SCURRY: Yes, we did.
CAMEROTA: And they give you props for that. Not only did you blaze a trail for them by being such an outstanding athlete, but by bringing these
issue to the fore.
SCURRY: Yes. When we played in '99, we wanted to make sure that not only were we going to be great footballers and do the job on the pitch, but we
felt that we could be more. We could do more.
We had a platform to perform on that we could really raise some issues and maybe move the bar closer to equality. And we did that.
At that time we were more about resources that we didn't that the men had, even though we had the record and the championships that they didn't have.
So we went towards U.S. Soccer and said, hey, we need, you know, we both need massage therapists. The men have this kind of travel, we want that
kind of travel. They stay in these kinds of hotels. We want those kinds of hotels.
And so that began the fight, the battle that you're still seeing now decades later.
CAMEROTA: Megan Rapinoe was just talking about that last night on Anderson Cooper, the resources, it's one thing to ask for salary, and that's a big
deal.
SCURRY: Right.
CAMEROTA: But it's also the publicity, the promos, everything that you're talking about.
SCURRY: Absolutely.
CAMEROTA: Are you surprised in some ways it has taken 20 years and we're still having this conversation?
SCURRY: Yes. It's unfortunate. It's unfortunate. But what the good news about it is I think the social environment now for these women to get
change is very different than it was 20 years ago to get change.
And I think there really is no excuse anymore. Back in the day, U.S. Soccer used the two R's that was rankings and revenue. So now we have the
revenue that the women's team makes compared to the men is equal, if not a little bit better in the last several years, and you also have the ratings
and the rankings of TV broadcasting.
So now you have those two things aren't an issue anymore. They're equal. So let's make the pay equal as well.
CAMEROTA: So there's no excuse any more whatsoever.
SCURRY: There really isn't.
CAMEROTA: And do you think that the Soccer Federation is going to do the right thing?
SCURRY: Oh, boy, I tell you what, I really hope so. I really hope so. It's time. I mean, I know the women continuing to win is putting added
pressure on them. Society, other companies are stepping in, like Luna Bar and Nike and all these other companies, Coca-Cola.
CAMEROTA: Right for add to supplement to the women's salaries.
SCURRY: Supplementing. Yes. And so you would think that would be a little bit embarrassing, if nothing else, for U.S. Soccer, that they should
just step up, solve this issue, get it to equality, and let's just be able to talk about soccer and the beautiful game instead of all these other
things.
[09:40:00] CAMEROTA: Yes, absolutely. And so what do you think about the coach and what -- and just the platform that --
HARLOW: I --
CAMEROTA: Oh, Poppy, did you have a question? Okay. Got it. Got it. So I wanted to ask you about the platform that all of these women have.
SCURRY: Yes.
CAMEROTA: Has -- have you welcomed the fight that Megan Rapinoe has had with the White House, or has it been a little uncomfortable to watch the
lengths that they have had to go to -- well, not they have had to go through, but they have seized at this moment on their platform?
SCURRY: Right.
CAMEROTA: Have you applauded it? Would you have done it that way?
SCURRY: I appreciate Megan's passion, her viewpoints and her opinion. And for me that's the amazing thing. It's not even so much what she is saying,
it's the fact that she is saying it, the fact that she feels like she has a platform to right some things that in her mind she feels aren't fair.
And the fact that she is able to do that and people are paying attention and listening, I think right there just the fact that she is able to do
that is really the true victory for me, in my opinion.
And that's how she chooses to do it. And I think -- I support her. I support her ability to have an opinion and to state it very obviously and
very clearly.
CAMEROTA: And, again, they give you all and your class of 1999 a lot of credit for making all of that possible.
SCURRY: Yes.
CAMEROTA: So, Briana, it's great to be able to watch all of this with you.
SCURRY: Thank you.
CAMEROTA: Poppy, it's so exciting. We are just watching all of the crowds gather. And as the parade makes its way here to City Hall, we'll be
covering it.
HARLOW: Good. Guys, let's talk a little bit more about this because you have 12 of the players who were part of this Ticker Tape Parade back in
2015 when they won the World Cup, this same team, who are there again today.
So that in of itself is historical, Christine Brennan and Julie Stewart- Binks are with me here for some analysis.
What was interesting to me to hear from Briana there talking to Ali is that those two R's that, you know, the Soccer Federation used as sort of the
excuses for not paying equal ratings and revenue. Now, what is their argument for this inequality for the women's pay?
CHRISTINE BRENNAN, SPORTS COLUMNIST, "USA TODAY": Poppy, I don't know that they have one, other than they have a collective bargaining agreement and
it's in place, so why would we go back in? I mean, that would be the one way to do that. Very technical. Very legal.
But there is no other argument for U.S. Soccer. I have predicted that the women will win equal pay, they will win this battle. I absolutely think
they will because look at those scenes. That is America.
People are tuning in around the country right now with their daughters and their sons to watch this. And U.S. Soccer has to see this. And, frankly,
if you were going to devise a strategy on how to get to the bargaining table --
HARLOW: Yes.
BRENNAN: And have -- the monkey would have --
HARLOW: This would be the strategy.
BRENNAN: Including Donald Trump.
JULIE STEWART-BINKS, HOST, "CBS SPORTS HQ": Yes.
BRENNAN: Including Trump going at them. Include -- everything. They have nailed it on the field. They've nailed it off the field. Here they are.
I think they win equal pay without a doubt.
HARLOW: We see -- we see the champions, second time champions in a row here, the U.S. women's national team on this float, on a picture perfect
New York Day behind that globe, right, you see Mayor Bill de Blasio with one of their scarves around him.
I know that the first lady, Chirlane McCray, is there as well. I'm not sure if she's up on the float. Julie, I'll get to you in a moment. Let's
go to Dave Briggs. They're passing by you right now, is that right, Dave?
BRIGGS: Here is the float with the stars of the show. Megan Rapinoe among the float passing us by. And there is the goaltender right there standing
as she always does, Alyssa Naeher. Kind of out of the spotlight where she prefers it. But that was a star-studded float there with the golden boot,
with the World Cup trophy all aboard that one.
And then there's a bit of a break as the Fire Department and a couple of others come by. The final float, a few minutes away. Most of the players
have passed us by. Rose Lavelle, Megan Rapinoe, as we mentioned, the goaltender, Alyssa Naeher. And there are still probably a few more floats
of players.
If you can pan back to the left you'll see group in the black t-shirts with the USA float. That's the next group of players that will pass us by.
But, gain, the crowd really made up, as you guys have talked about, of young, aspiring soccer stars and their parents. No one down here talking
much at all about the politics of this team, nor about what's going on with the flag or any protests by Megan Rapinoe. They are here to pay tribute to
the best team in all of soccer that has now won four of eight World Cup titles.
And we'll get back to you guys and check back as the next group of players arrive.
HARLOW: It is remarkable what Dave just said, Julie. But this fight for true equality, I think the headlines are equal pay, but it's actually so
much more than that as Megan Rapinoe described to Anderson last night. Even what they get to play on and the surface of the surface, AstroTurf
versus grass.
STEWART-BINKS: Right.
[09:45:03] HARLOW: I mean, there have just been so many, it seems, fundamental inequalities in sport for women, but especially in women's
soccer, for so long. You heard Briana saying to Alisyn, they had to ask for two massage therapists to help them heal after games.
STEWART-BINKS: Well, yes, I mean even like dating back to their last World Cup that they were in, they were fighting just for the surfaces to not be
artificial turf but to be grass because for the men, as Megan said on Anderson Cooper last night, they would roll out real grass for the men to
play on but still have the women play on artificial turf, which is, you know, very dangerous.
And so they have already sort of had this DNA of fighting against inequality. And so the fact that they're doing this still, I mean, it's
not surprising, but it is inspiring to see Megan Rapinoe step into the spotlight.
And we were just talking off camera, Christine and Poppy, that Megan has shown she is unbreakable. The fact that she's going up against the
President in a very tumultuous conversation, then still being able to go on the pitch, score two goals in multiple games and score the game winning
goal in the final just is a testament to, you know, what kind of person she is and what kind of leader she is.
And so this, you know, this is exciting to see just as a person in society.
HARLOW: You know what --
STEWART-BINKS: And I think that that's the biggest takeaway.
HARLOW: You know what it made me think, does this woman have a future in politics?
STEWART-BINKS: Definitely.
HARLOW: Like, what will her next chapter be? Christine Brennan?
BRENNAN: Well, and which candidate is she going to endorse?
STEWART-BINKS: Yes.
HARLOW: Oh, good point.
BRENNAN: That will not be an insignificant moment in this 2020 presidential campaign. You already see Senator Kamala Harris has been
tweeting nonstop about this team. Others have as well, Elizabeth Warren.
So when does she decide to join and maybe with Alex Morgan and a few others be on the stage?
HARLOW: Yes.
BRENNAN: That will be a photo-op that any candidate would love to have.
STEWART-BINKS: Oh, yes.
HARLOW: She made it very clear, Megan, in her interview with Anderson last night that they welcome and are excited to go to Washington to meet with
Congress. A bipartisan group of Members of Congress. Not so much to the White House if they get that invite.
Briana, if you're still with me, Briana Scurry, as you look at the political impact of this, the fight that you fought and are still fighting,
but from your 1999 win on, what is the most important message that you think these women, this team, could send to Congress when they do go to
Washington and when they do meet with Congress? What's the big picture fight -- their lawsuit aside -- that they should message to our
representatives in Washington?
SCURRY: I think it's interesting that the women of the, you know, Congress have invited this team there because it's truly two stories that are very
much related to each other.
Our women's team for soccer is fighting for equality and now we have so many more women in Congress at the exact same time. I don't think that's
ironic and that's not lost on a lot of people that these two things are happening at the same time.
I think the message is equality. The message is empowerment. And the two teams, if you will, have the exact same message.
HARLOW: They do. We just saw New York Governor Andrew Cuomo. We see him there. He seems sort of in the middle of that float there. And what's
interesting, too, is he has just put forward this Women's Equality Act fighting not only for equal pay, but an end to gender discrimination on so
many levels for women and this is representative of that, of course.
All right, everyone, stay with us. This is an exciting morning for us. We're going to take a quick break. We will be right back with the Ticker
Tape Parade honoring the women's World Cup champions live from New York in just a minute.
(COMMERCIAL BREAK)
[09:53:03] HARLOW: All right. I'm Poppy Harlow in New York. We're back with our live coverage of this amazing moment. A Ticker Tape Parade in New
York City honoring the women's championship soccer team after their huge win, second in a row, at the World Cup.
Brooke Baldwin is there where the players are passing by her -- Brooke.
BALDWIN: All right, guys, they are passing us by right now. And all around me -- yes. Here they are. All around me I am feeling little girls'
hearts absolutely bursting. Absolutely bursting. This is a moment. These girls, they woke up early, early in the morning, many of them taking the
train to make sure they could catch a glimpse. See, girls, there's more coming down that way.
So I've got these three sisters who came in from Pennsylvania, who are craning their necks to try to catch a glimpse of some of their favorite
players as the ticker tape has been falling from all the buildings above us. Hi, girls. Are you so excited?
UNIDENTIFIED FEMALE: Yes.
BALDWIN: Who are you most excited to see?
UNIDENTIFIED FEMALE: I -- the whole team.
BALDWIN: The whole team.
UNIDENTIFIED FEMALE: The whole team.
BALDWIN: Why did you want to come out? Why do you want to celebrate them?
UNIDENTIFIED FEMALE: Because it's their second World Cup victory in a row, and it's their fourth overall.
BALDWIN: You've got it, fourth overall. Here we go. We've got some more ladies coming on this float.
This is so incredibly exciting. This is the kind of thing that these girls are going to remember for a lifetime. Yes.
And I've talked to a number of people who have come out, mega soccer fans. They all sort of said, we were out here four years ago and that was a huge,
huge deal. But everyone is saying this feels bigger.
As far as the eye can see, all the way down Broadway, I can see -- see, girls -- all the ticker tape flying through the city as we wait to see to
catch a glimpse of really the most famous ladies on the planet at this very moment.
[09:55:03] BALDWIN: And so, girls, what did you think of that?
UNIDENTIFIED FEMALE: That was really cool.
BALDWIN: Really cool? Why do you --
UNIDENTIFIED FEMALE: That was awesome.
BALDWIN: How old are you?
UNIDENTIFIED FEMALE: Five.
BALDWIN: And you play soccer? What do you love about soccer?
UNIDENTIFIED FEMALE: You just can't get up -- give up on your team.
BALDWIN: Can't give up on the team. Why are they your idols? Is that fair?
UNIDENTIFIED FEMALE: Yes.
UNIDENTIFIED FEMALE: Yes.
BALDWIN: They're nodding, yes. Do you have a favorite player?
UNIDENTIFIED FEMALE: I like Crystal Dunn the most.
BALDWIN: Tell me why.
UNIDENTIFIED FEMALE: Because she is really, truly a defender, and she really works hard on that left back. She really --
BALDWIN: Yes. So I think, guys, that was it. I'm craning my neck down Broadway. Was that -- that was -- we saw them. We saw the ticker tape.
Thanks, girls. Thank you very much. We'll send it -- what a day. What a most gorgeous, stupendous day here in downtown Manhattan. We'll send it
back to you guys.
HARLOW: Love it. I love every moment of it. Brooke, thank you so much. Let's go to Ali. She is with Briana Scurry.
Ali, just hearing from the little boys, the little girls, and how I mean, seemingly life changing this could all be for them beyond the wins, right?
I mean if this fight succeeds for equal pay, for equal treatment, it could change the future of all of these young women we're looking at right now.
CAMEROTA: How could it not? You know, how could it not in this moment? This is the national conversation that we're having. How could the Soccer
Federation say no at this point after there's such a rallying cry for this? And that's what is adding to all of the excitement here.
I'm at the end of the parade route at City Hall. This is where the mayor of New York City will give our soccer champions the keys to the city.
Everyone here is so excited. I mean it's an electric day here.
The last time there was a Ticker Tape Parade was exactly four years ago when the U.S. women's soccer team defeated Japan. And it has been a real
pleasure to be next to Briana Scurry here, who, of course, was in the 1999 game and remembers it so well. It was exactly 20 years ago today. And,
Briana, did you get a Ticker Tape Parade?
SCURRY: I have to honestly say no, we did not.
CAMEROTA: Why not?
SCURRY: We got a little parade at Disneyworld.
CAMEROTA: Why?
SCURRY: That was awesome. That's all we had back then, but we'll take it. This is amazing. Can I just say that I am so excited right now, I'm trying
to contain myself, because the roar of the crowd as the team is starting to come into the area where we are is just like really giving me chills. This
is truly amazing.
CAMEROTA: That's so great.
SCURRY: It is.
CAMEROTA: Well, I love watching it next to you and seeing you beaming during all off this. Poppy, everyone here is excited. We can't wait to
bring you the rest of the parade.
HARLOW: We cannot wait either. Okay, stay right there. Ali, Brianna, thank you. Everyone stay right there. A quick break. We're back on the
other side.
(COMMERCIAL BREAK)
[10:00:00]
END
