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First Move with Julia Chatterley
Interpol Issues A Red Alert For Former Auto Executive Carlos Ghosn; President Trump's Campaign Fundraising Bellows The Democrats Out Of The Water; Google Health Says Its System Has Detected Breast Cancer Better Than Six Of The Best Doctors. Aired 9-10a ET
Aired January 02, 2020 - 09:00 ET
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[09:00:15]
PAULA NEWTON, CNN INTERNATIONAL ANCHOR: Live from the New York Stock Exchange, I'm Paula Newton, sitting in for Julia Chatterley and here's what
you need to know.
Ghosn but not forgotten. Interpol issues a red alert for former auto executive Carlos Ghosn.
Breaking it in: President Trump's campaign fundraising bellows the Democrats out of the water.
And an AI breakthrough we're going to tell you about. Google Health says its system has detected breast cancer better than six of the best doctors.
It's Thursday. And this is FIRST MOVE.
Welcome to the show. Welcome to 2020. Yes, a new decade. It is great to have you with us as we begin our FIRST MOVE of 2020.
Global stocks and a strong one, of course, in 2019. Who could forget it? And yet we're already moving on. Right? It is looking like a nice start
to the New Year as well.
U.S. stocks are set to rally more than half a percent in early trading today after posting their best year of returns since 2013. This is the
thing though, every sector in the S&P 500 finished the year with gains and that's the first time that that's happened since 2010.
Tech stocks -- no surprise looks set for the largest gains of this session today. Now China helped jumpstart that global rally. The benchmark,
Shanghai Composite finished this session up 1.1 percent after the Chinese Central Bank announced a fresh round of stimulus relief. Right? We'll
have more on that in just a few minutes.
Chinese factory numbers out today meantime remain encouraging, too. Surprising to some. A private survey showed manufacturing activity dipping
a bit last month, but firmly in expansion territory. This confidence rose as U.S.-China trade tensions eased.
Now, European stocks are solidly higher as well. You see them there. French stocks are the best performers, as you see the CAC is up about 1.2
percent. The closely watched stocks, 600 European Index is coming off the best gain in -- drumroll please -- a full decade.
We'll be following all of the action in the markets throughout the hour and it is an all-important hour today. As we said, the first trading day of
2020.
We want to begin though with our drivers with the latest on that Carlos Ghosn investigation. Now reports just out in Lebanon say the government
has received an Interpol arrest warrant for Carlos Ghosn. Now, the former Nissan Chairman arrived in Lebanon on Tuesday after jumping bail in Japan
where he was awaiting trial.
Meanwhile, police in Turkey have detained seven people including four pilots and a private airline on suspicion of helping Ghosn escape.
Gul Tuysuz now is live for us in Istanbul with the latest. I mean, Gul, look, the plot thickens here. Turkey is demanding answers. We now have
this Interpol alert. Do officials there have any idea how Turkey was implicated in all of this and where they go from here?
GUL TUYSUZ, CNN SENIOR INTERNATIONAL PRODUCER: So far what Turkey has said is that it has launched an investigation. The Istanbul Prosecutor's Office
is looking into it now and they have detained seven people as you mentioned, four of them pilots. One is a manager at a private aviation
company, as well as two ground staff service workers.
So the Istanbul Police now is going to be going through their testimony, trying to piece together what happened and what we know about this mystery,
this puzzle.
There was a flight that took off from Osaka, Japan and landed in Istanbul. A little while later, another flight took off from Istanbul and went to
Beirut. That all coinciding with the timeline of Ghosn's mysterious disappearance back to Beirut.
And the Istanbul Police now are trying to figure out what happened on the ground in Istanbul's Ataturk Airport. That's not Istanbul's main
International Airport. It was decommissioned just a while ago. And now only services cargo planes and private jets like the one that Ghosn is
suspected of having fled on.
Maybe some of the testimony that the Turkish Police gathered from these seven detained suspects will shed light on the mystery of what's happening.
And the International -- the Interpol, the red notice that has been issued is basically going to make it a bit more of an international issue for
Ghosn, but there is no extradition between Lebanon and Japan.
So the likelihood of him being returned to Japan is very low, and that Interpol red notice, of course, is just a request to international law
enforcement and it's not an order. So what will happen, what will come out of that is something we just don't know at this point --
[09:05:01]
TUYSUZ: But we do know that here in Turkey, at least, one small part of the puzzle now is in the hands of the Istanbul Police and perhaps they will
be able to shed some light on how Ghosn got away.
NEWTON: And it is clear, Gul, that certainly Ghosn thinks he is free and clear now, especially as he remains in Lebanon, he will likely speak to the
media in the next few days.
But in the meantime, the Japanese are trying to piece this together as well. It is so embarrassing for them, considering this was supposed to be
a man who was under surveillance.
TUYSUZ: Absolutely, I mean, this is quite an embarrassment for the Japanese. This was a very high profile individual for them and their legal
system was working to basically bring him to justice. And instead of that happening, he has now fled in this audacious escape, and we don't have a
lot of answers for it, but Ghosn is expected to speak.
And so far, what he said has been very, very critical of the Japanese justice system. He has called it rigged. He said that it's
discriminatory. So all in all, a very embarrassing moment for Japan. And at this point now that he's in Lebanon, there isn't much that they can do
to bring this man to justice in front of their own legal system.
NEWTON: Yes, no in fact, Ghosn very confident that he will remain free. Gul, thanks so much for that update. Appreciate it.
To China now, where they are taking steps to address the slowing growth by pumping more than $100 billion into the financial system. Now, it comes
amid fears about faltering growth. Of course, we've been talking about that for months and shows how the country's leaders are watching out for a
slowdown.
Christine Romans has been following this also for several months. Happy New Year to you, Christine.
CHRISTINE ROMANS, CNN BUSINESS CHIEF BUSINESS CORRESPONDENT: You too. You too, Paula.
NEWTON: And an interesting move, right? And maybe even taking a page from the Fed in the United States in terms of being proactive. But the question
I have for you is will this be enough?
ROMANS: Well, you know, there are many people who think there will be more after this, maybe different kinds of stimulus. I mean, what you have here
is essentially the People's Bank of China is saying to a company or to banks rather that they can increase their lending by $115 billion injecting
that liquidity essentially into the financial system just before the Chinese New Year where you have all these people giving cash gifts, right?
So that keeps the money kind of flowing around.
And essentially, the rule here is lowering the amount of capital reserves that banks have to have by law so it frees up a little more money. That's
exactly what the United States has been doing in different ways for the past, you know, well, the past decade, but more recently, even last year,
like beefing up its balance sheet. That's something that is clearly supportive to the economy.
NEWTON: The other thing is that obviously, we keep looking to China to see how its economy is doing. The second largest economy in the world hinges
on a lot of different things.
Christine, I'm asking you, I'm begging you, is 2020 the year that we can stop talking about the U.S.-China trade war? We get the signing that the
President announced in the middle of January?
ROMANS: No.
NEWTON: OK, let me know.
ROMANS: Look, it's a truce. I mean, I think this signing, when it happens in January, if it happens in January. This is a truce in the trade war.
It's not a resolution really of the really tough parts of the trade war.
I mean, look, the Chinese are going to buy some more farm goods. They're going to allow for some liberalization, maybe some enforcement of some of
these mechanisms. But the big huge problem that the President so rightly identified, and that so many business leaders have been complaining about
for years is the whole China Inc. thing. The state owned enterprises, the subsidies for the big important parts of the Chinese economy. That is, the
American say is unfair to the United States. That hasn't even been touched yet. Right?
So that still have got to happen. You know, the President said that he will sign something with high level Chinese delegation in Washington on
January 15th, and then he will travel to Beijing at a later date.
So you're going to have -- no, we're not going to stop talking about it. We're going to be talking about when is he going? Is he going? Will he
go? Who is he going to meet? What are they going to probably try to do next? Will it be Phase 2? And then Phase 3? Or even Phase 4? Because
there is really a lot of work still to be done on trade between U.S. and China.
NEWTON: Yes. And interesting that you brought up the farmers there. We are going into an election year here in 2020, and the farmers have really
been suffering. That will also play out. Christine Romans. Thanks again. Appreciate it.
ROMANS: Happy New Year.
NEWTON: Now, staying on China. It appears to be using access to its financial markets as a political lever. Reuters says Beijing has suspended
a project linking the Shanghai and London Stock Exchanges. Sources say political tensions over Hong Kong are behind this move.
Matt Egan joins me now. This is an incredibly striking report from Reuters. If true, its economic retaliation. It's being used as a
political weapon. Why is it significant?
MATT EGAN, CNN BUSINESS SENIOR WRITER: Well, Paula, it is also more evidence of how businesses are getting caught in the middle of this Hong
Kong protest and it really shows how China is not afraid to strike back financially when it feels like it's been wronged.
[09:10:00]
EGAN: Now, as you mentioned, Reuters is reporting that China has reportedly halted these planned cross boarded listings between London and
Shanghai and they're sending sources that say politics are to blame, specifically Britain's stance on the Hong Kong protests.
Now, if you're not familiar with it, the Shanghai-London Stock Connect was unveiled last year as a way to give more liquidity to Chinese shares,
letting U.K. investors get access to them and vice versa.
So this news, if it's true, if it's confirmed, would really deal a blow to efforts to try to forge closer ties between the U.K. and China,
particularly at a time when Britain is planning to leave the E.U. and is really looking for some trade winds.
But you know, it's also a potential negative for China's efforts to try to open up their capital markets, because this Stock Connect was a way to give
more diversity both to Chinese companies who want to have a broader investor base, but also for Chinese investors who want to be able to invest
in things more than just the domestic China stock market?
You know, there's also other news about another company that is facing some pressure related to the Hong Kong protests, and that's HSBC. There's been
news that pro-democracy protesters in Hong Kong have attacked HSBC branches, as well as a pair of bronze statues outside of HSBC's Hong Kong
headquarters.
And keep in mind, HSBC is the largest bank in Hong Kong. It's been there for more than 150 years. But the protesters accused the bank of really
working with the Chinese authorities to stifle some of the fundraising.
Now, HSBC has denied those charges, and they've condemned what they call as acts of vandalism, but I think, Paula, all of this is just another reminder
of the really, really tricky geopolitical environment facing multinational companies as we kick off 2020.
I mean, whether it's the U.S.-China trade war, which you were just talking to Christine about or if it's the turmoil in the Middle East, Brexit or of
course, the Hong Kong protest, it is not an easy time to be a multinational company.
NEWTON: Yes. And you're right to point out that of course, this also hurts Chinese companies. Matt Egan. Thanks so much. Appreciate it.
EGAN: Thank you, Paula.
NEWTON: Now we go. Happy New Year, Matt. I forgot to wish you a Happy New Year. So there you go.
These are the stories making headlines around the world now. The Australian state of New South Wales has declared a state of emergency as
deadly bushfires ravaged the region. All visitors have been urged to leave before Saturday. Authorities are saying temperatures above 40 degrees --
40 degrees Celsius -- and ferocious winds are expected at the weekend increasing the risk of more fires. Our Anna Coren reports.
(BEGIN VIDEOTAPE)
ANNA COREN, CNN INTERNATIONAL CORRESPONDENT (voice over): This is what a mass evacuation looks like. Thousands and thousands fleeing the area's
worst hit by the deadly bushfires that has swept across the Southeastern coast of Australia.
A mandatory evacuation for tourists before catastrophic conditions return on Saturday, but some want to head the opposite way.
(BEGIN VIDEO CLIP)
TREVOR GARLAND, DAUGHTER STRANDED BY FIRE: My daughter stuck in Sussex Inlet with friends down there.
(END VIDEO CLIP)
COREN (voice over): Trevor Garland's 16-year-old daughter, Haley is stranded in one of the hardest hit regions with some friends. She told him
she's safe, but he's not taking any chances.
(BEGIN VIDEO CLIP)
GARLAND: Been here for quite a while trying to see if I can get down there to get her out. I don't know the way because it's one road in, one road
out.
(END VIDEO CLIP)
COREN: It's dangerous but Trevor is not alone.
(BEGIN VIDEO CLIP)
ZANTHIA WALSH, RESIDENT: At the moment we're just focused on trying to get family back together.
(END VIDEO CLIP)
COREN: Zanthia Walsh and her family were away when fire struck the family home in Conjola three hours south of Sydney. They all escaped unharmed,
but their house was completely destroyed.
(BEGIN VIDEO CLIP)
WALSH: It was a family that actually built the house. So it's hit a lot of people quite hard. It used to be a holiday house prior to us living in
it. So all of our family has stayed in there at some point or another.
(END VIDEO CLIP)
COREN (voice over): Walsh and Garland are but two of the many that stuck around and inside some of the areas hardest hit by bush fires across the
states of Victoria and New South Wales. Dozens of roads are being cut off and some communities remain isolated.
Stranded residents, dependent on the Australian military for the most basic of supplies. It's part of the Australian government's efforts to deal with
the crisis, but for some it's too little, too late.
The Prime Minister, Scott Morrison, who has been heavily criticized for his lack of leadership during this crisis and his government's inaction on
climate change was heckled by residents during a visit to Cobargo.
A large part of the town was destroyed during the New Year's Eve bushfires and residents say the government has not done enough.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: This is not fair. We're totally forgotten about down here.
(END VIDEO CLIP)
COREN (voice over): The Prime Minister left without responding. Conditions have improved slightly in the past few days allowing the
countless men and women who continue to battle the flames a temporary, but very limited reprieve. And just enough time to say goodbye to one of their
own.
Firefighter Jeffrey Keaton was honored for his bravery at his funeral. The medal given to his young son. Just one of the many victims of a nightmare
with no end in sight that is expected to worsen in the coming days.
Anna Coren, CNN, Narra, Australia.
(END VIDEOTAPE)
[09:15:19]
NEWTON: To India now where one firefighter has died and many others are injured in India after a battery factory collapsed in New Delhi, Thursday.
They were battling a massive fire inside that building when it gave way. This is the third major fire in the Indian capital in less than a month.
Cleanup efforts are underway at the U.S. Embassy in Iraq following violent protests. Iraqi Security Forces have now regained control of the area
after hundreds of protesters stormed the embassy in Baghdad. U.S. airstrikes against Iranian-backed militia targets sparked those protests.
OK, still to come here on FIRST MOVE. Trumped. U.S. Democratic hopefuls kickoff their election needs with their latest fundraising stats, but the
President's money machine is also picking up steam.
And a 2020 vision from Big Blue. You're going to want to hear this. IBM gives us its predictions for the year ahead.
(COMMERCIAL BREAK)
NEWTON: And welcome back. I am live at the New York Stock Exchange and this is FIRST MOVE, the first edition for 2020.
We are awaiting that bell -- that opening bell -- here at the New York Stock Exchange. I'm going to remind you though that stocks finished 2019
trading just a bit below those all-time highs, but Wall Street futures are looking strong right now right across the board, and we could in fact hit
fresh record highs in early trading today.
For 2019, here is where you need your recap. All the major averages finished with gains of more than 20 percent. The NASDAQ, the best
performer rising 35 percent with strong gains may be hard to duplicate this year. But we will get to that.
[09:20:02]
NEWTON: This is what's interesting here though. The Fed looks likely to keep rates on hold. Trade tensions, though it haven't disappeared, right?
We were just talking about that with Christine Romans. And don't forget, we, of course have the big race in 2020.
Working through it with us is John Petrides. He joins me now to take a look at the year ahead. You are in fact, the Portfolio Manager at
Tocqueville Asset Management. Thanks for being here. I really appreciate it.
JOHN PETRIDES, PORTFOLIO MANAGER, TOCQUEVILLE ASSET MANAGEMENT: Thanks for having me.
NEWTON: And a Happy New Year to you.
PETRIDES: Same to you.
NEWTON: So we were just talking about the extraordinary year that was 2019. Let's talk valuations because when I look at this market, I think,
look, these are high. These are sky high. I'm in nosebleed territory here. Should you be more defensive?
PETRIDES: Well, I wouldn't go that far that we're going to nosebleed, but we are clearly elevated from where we have been over the last 10, 15, 20
years. So -- and when you look at in context of where we are from interest rates and inflation, it makes sense that stocks would outperform because
interest rates are so low, you can't get yield on bonds and inflation is tamed. So go where there's growth, and that's what's been pushing stocks
higher.
But we're nowhere near '99, right, but at the same time, we're not near table pounding cheap of 2008 or 2009, or even, you know where we were in
the fourth quarter of 2018.
NEWTON: Hey, it looked pretty good, the market was pretty cheap.
PETRIDES: Just a year ago, right? Which is why you saw this massive rally.
NEWTON: In terms of the political risk, we have to talk about that. We're going into 2020. The market seems to be blowing off a lot of political
risk right now. Do you think that'll continue through this race?
PETRIDES: Well, it all depends, I think on who the Democratic candidate is to run up against Donald Trump. If it is someone further to the left, like
Elizabeth Warren or Bernie Sanders, right, they have been very vocal against anti-big business. So I think stocks would react negatively if
they pick up steam as the Democratic candidate.
If it is a Trump versus Biden, I think the market takes it in stride to be honest.
NEWTON: You think it takes it in stride regardless, even though they are talking about perhaps not. I mean, Donald Trump is talking about tax cuts
2.0.
PETRIDES: Right.
NEWTON: This market will go crazy if that happens.
PETRIDES: Yes, clearly. I mean, Trump has been pro-business. He has been blowing more fire into fueling the consumer. That's all good things to
push stocks higher.
Now, he is doing it on the back of levering up the U.S. economy, you do have $22 trillion in debt.
NEWTON: I'm glad somebody finally mentioned it, John. No one seems concerned about this.
PETRIDES: And to fund another tax cut, you're going to have to take on more debt to do that, which is clearly scary. Debt is never a very good
thing, particularly when you're an economy that's only growing at about two percent.
But right now, you know, the market seems to be kicking that can down the road, and we'll deal with that, if and when that comes home to roost.
NEWTON: Do you feel, though, that at some point in time in that summer into early fall season, that people will get really defensive and just stay
on the sidelines?
PETRIDES: I mean, it's hard to say right now. There's so many factors. But let's take things into consideration. China, clearly, in the last
couple of weeks, they cut interest rates last night to push their economy. They've done a stimulus package. They just announced a couple of weeks ago
to increase their economy.
We're seeing progress on trade war. If something derails that, right, China is now the driving engine of the entire global economy. So let's
keep a focus on that. And then you know, unless something were to change with the impeachment. Now, Trump was impeached, the market rallied, you
know, on the back that. He is not going to get --
NEWTON: That's such a good point. Hard to believe.
PETRIDES: On the back end that he is not going to get -- on the back that he is not going to get convicted. So assuming that story holds true, then
you could see another good year for stocks.
NEWTON: Yes, it's interesting how politics becomes benign in that atmosphere, as you said impeachment, and still this market never flinched.
PETRIDES: But I do think the end result of the market is going to be told, the November-December the year after we get the results or assuming the
results of the election look clear.
NEWTON: And let's move to the Fed, really the hero of 2019. I mean, Jay Powell came in, seemed to really calm all fears down, did what he had to
do. We're on hold, right? As far as the Fed is concerned?
PETRIDES: As long as the data provides that case, as long as wage and inflation stays contained. The Fed feels comfortable between 1.5 to 1.75
percent interest rates. That doesn't mean the Fed won't do quantitative easing.
They may not lower interest rates, but they could buy more assets and start increasing the asset purchases on their balance sheet, which they leveled
off aggressively from 2016, so they can enact silent QE to stimulate markets further.
NEWTON: And you think when Jay Powell says that he is data dependent, you think that's what he's talking about. People look at that and expand the
balance sheet if he has to.
PETRIDES: The first Friday of every month when we get the jobs data, he is looking at wage growth, and if wage growth stays contained, that's the one
major inflation data point that he's focused on.
NEWTON: Why do you think that has been contained? It surprised me that that kind of -- and there's been some growth for sure, absolutely. But
that wage inflation has not ticked up even as we have seen a historically extraordinary job market here in the United States.
PETRIDES: Yes, I think I mean, we were what? Two and a half percent in terms of wage growth just two years ago, and now we're around three
percent. So it has gone higher. A lot has been blamed on labor force participation over the last decade. The crisis has been significantly
lower than in the past.
It has been a conundrum that has befuddled many economists and many financial strategists for the past 10 years, because you will figure at a
3.5 percent, 3.4 percent unemployment rate that the supply of labor has been tighter, that should drive wages higher. Let's see what the data
provides.
NEWTON: In terms of your posture going into 2020, the instinct is to be more defensive. You've had these extraordinary gains from 2019. What
would you say to people? Would you say like, ride this out. And if you stay on the sidelines, if you move to cash or whatever else, you're saying
that's a bad move.
[09:25:12]
PETRIDES: Yes, I mean, we've just learned that if you had the cash in the fourth quarter of 2018, look what you missed, right? So making extreme
bets at this point in the cycle of, I've got to be all stocks, or I have to be all bonds or I have to be all cash -- I think is a mistake. I think
it's important that investors really take a good snapshot of who they are and what their goals are, and diversify their portfolio across stocks,
bonds, and cash.
However, we would overweight stocks relative to bonds, and we would be fully invested at this point in time and within the stock portion, focus on
international. We think international value is significantly more compelling relative to the S&P, and if all the measures that the Chinese
economy is taking, that should drive global GDP growth higher, which makes international stocks higher.
NEWTON: Investors have been disappointed by that international profile before hitting 20. I mean, it wasn't bad in 2019, but you think, this will
be the year?
PETRIDES: Well, clearly, the monkey wrench had been trade tariffs in 2018 and 2019, which has taken some of the steam out of the international
markets. Remember in 2018, the U.S. was raising rates which forced more people to go into dollar denominated assets, and let's not forget all of
these issues going on in the Eurozone last year.
I mean, at one point time, we had about $20 trillion of global debt with a negative yield, which is unbelievable, right? So we would expect that a
little bit to come off the top on the dollar. The dollar would come off, international which would be helpful.
NEWTON: To be helpful.
PETRIDES: So that's where we're finding a bit more compelling value today.
NEWTON: Got you. John, thanks so much. And Happy New Year again.
PETRIDES: Great to see you. Thank you so much for having me on.
NEWTON: And here on FIRST MOVE, we are ready for 2020. We will have that opening bell to you in just a moment. Stay with us.
(COMMERCIAL BREAK)
[09:30:00]
NEWTON: And welcome back to FIRST MOVE. This is now 2020 on the trading day. I am live from the New York Stock Exchange and we're waiting to see
what this New Year and new decade brings when the last year was oh so good for investors.
As expected U.S. stocks are picking up right where they left off in December. We are in rally mode. All the major averages are on the rise.
Tech stocks, again, the best gainers there. Stocks are coming off the best year since 2013.
The S&P 500 hit a total of 35 -- 35, people -- record highs last year alone. European stocks meantime are also rallying this year. French
stocks currently up about 1.2 percent. The others up about one percent on their own.
In Asia, the Shanghai Composite rallied after the Chinese Central Bank announced a new round of badly needed stimulus. Now, we want to take a
quick check of those Global Movers.
Apple, the best gainer on the Dow in 2019 is higher in early trading. Apple rallied an astounding 86 percent in 2019. It was also the best
performing FAANG stock by far. Tech analyst Gene Munster says Apple share price could climb another hundred dollars this year. He says the company's
valuation, he says, he claims is still low compared to other tech firms.
Tesla, an analyst -- the research firm Canaccord raised the 2020 Tesla price target to $515.00 today. He says the trend toward electric cars will
accelerate this year. Tesla shares came under pressure, you'll remember earlier this week on concerns over its upcoming Q4 delivery numbers and
remember, if you're going to meet that demand, that's the only way you are going to meet that revenue target.
And analysts meantime at Evercore is downgrading the Ford shares right now to underperform. Why? He says, it faces limited upside potential this
year.
And meantime, Tiffany shares also flat. Reports say Warren Buffett did have a chance to put a bid on the luxury jeweler back in the fall, but,
yes, turned them down. And Tiffany ultimately agreed to be bought out by LVMH for $16 billion.
And I want to give you some news just into CNN, the U.S. Democratic presidential race has just narrowed. Julian Castro has announced his
decision to suspend his campaign. He did so via Twitter. But we have some news also to bring you on those who remain in the campaign.
Bernie Sanders is leading the field among Democratic hopefuls for fundraising in that all important fourth quarter going into those
primaries. The Vermont senator raised more than $34.1 million for his campaign for the party's nomination. Compare that to Pete Buttigieg who
raised $24.7 million -- still impressive. And Andrew Yang was $16.5 million.
Come November, one Democrat will be up against President Trump, and get this, that campaign machine raised $46 million in the last quarter alone.
Ryan Nobles is going through the numbers for us. Ryan, Happy New Year and good to see you. I want to talk about those Democratic numbers.
Surprising to some, right?
RYAN NOBLES, CNN CORRESPONDENT: Yes, you know, Paula, we still have two big campaigns that have yet to report yet. Elizabeth Warren and Joe Biden,
but you'd be hard pressed to imagine that either of them are going to top this eye-popping number that Bernie Sanders and his campaign reported early
this morning. $34.5 million. It's just a massive number by any stretch of the imagination.
I mean, you compare it to Pete Buttigieg, you know, we saw his number on New Year's Day at $24.7 million. Everybody was very impressed by that
number. And then Sanders goes and best it by almost $10 million.
And what's been remarkable, Paula about Sanders' rise is that each quarter he continues to add to that total, he has raised $96 million total since
the start of his campaign last year, and he has done it without begging for money from any of these wealthy donors that often fund these American
presidential campaigns.
This is largely funded by small dollar online donations. They've had more than five million individual contributions to his campaign, and this is
another amazing statistic, Paula, 99.9 percent of Bernie Sanders contributors have yet to reach their maximum donation threshold of
$2,800.00, which means they can continue to flood his campaign with these small dollar donations for the foreseeable future.
So this shows a remarkable amount of stability for the Sanders campaign and the resources that he is going to need to get those caucus goers out of
their homes and into those gymnasiums and auditoriums the first week in February to say that they're going to support Bernie Sanders.
If you didn't think Bernie Sanders had a legitimate shot at winning Iowa, now's the time to start coming around to that way of thinking -- Paula.
NEWTON: Yes, I mean, look so many people are still feeling the burn, right, and this means that man could stay in this race as long as he likes.
Ryan, I have to ask you though, about those eye popping Republican numbers as well.
[09:35:10]
NEWTON: Of course, it's President Trump. Those numbers are eye popping, but the R.N.C., the Republican Party has been really touting these numbers
because it gives them so much fundraising momentum going into Senate and congressional races, too.
NOBLES: Yes, you can't really compare the Republican numbers to the Democratic numbers, right, because the Democratic donation is spread across
so many different candidates where everything on the Republican side is focused on President Trump.
But it is hard to ignore the amount of money that he has raised. $46 million in the fourth quarter is very impressive. You combine that with
the numbers raised by the R.N.C., they are well over $140 million combined.
He has somewhere in the range -- he has raised more than $200 million, and they have somewhere in the range of $140 million in the bank.
Listen, President Trump is going to be well-funded heading into this general election campaign. And you know, that's the argument that a lot of
these Democratic candidates have been making, in particular Pete Buttigieg, about this purity test that some of these Democrats have set for
themselves.
Like Bernie Sanders is never going to ask for money from high dollar funders. He is not going to ask people to bundle money for him. He's not
going to take money from big corporate super PACs. He doesn't want a super PACs supporting his campaign.
President Trump doesn't care about any of that. He will take any level of donation that someone can give to him, and there are some Democrats
concerned that perhaps they go into this campaign without the necessary arsenal that is needed to beat Donald Trump.
Sanders believes that he can do it without that, you know, we're not going to really know how this shapes up until the Democratic primary process is
over.
NEWTON: Yes, and we have to remind everyone how important those numbers are. Julian Castro just jumped out of the race. Likely, obviously, he
would have stayed in, right? I mean, money is part of the equation when someone like that has to move on and jump out.
NOBLES: Paula, we need to be clear about this. You do not drop out of a race for President because of your polling numbers. You drop out of a race
for President because you no longer have the financial resources necessary to continue your campaign.
I mean, Kamala Harris is the best example of that. She was polling far ahead of some of these other folks that are in the race, but she just ran
out of money to be able to support the campaign infrastructure that she had in place.
And that's the same thing with Julian Castro here. He definitely had, you know, a very small, but passionate group of supporters who wanted him to
stay in the race, but he just did not have the financial resources necessary.
It will be interesting to see what happens to Castro in this race, because even though his support wasn't very wide, it was deep and he of course,
represents a very significant part of the Democratic electorate with the Latino vote.
So you know, Castro is probably still a voice that we will likely hear as this campaign goes on, and I have to imagine that he is on the shortlist
for many of these presidential candidates as a potential running mate.
Paula, you know, it's interesting to see this started out as the most diverse, Democratic presidential primary field. It has quickly become
older and more white the more these candidates drop out. You can bet that whoever emerges as the nominee is going to want to show some diversity on
the overall ticket. And that's where you could see Castro come back into play later on.
NEWTON: Yes, you make such a good point that we will continue to hear from him and I want to remind everyone as we're here at the Stock Exchange,
everything that Ryan talks about will impact this market in one way, shape or form throughout this year.
Ryan, Happy New Year. I really appreciate your insights there. Thanks.
NOBLES: Thank you, Paula. Thanks.
NEWTON: Now remembering David Stern. We will take a look at the legacy of the former NBA Commissioner who built the league into a global sporting
empire.
(COMMERCIAL BREAK)
[09:41:33]
NEWTON: Welcome back. The sports world is mourning the death of the man who helped make the NBA what it is today. Former Commissioner David Stern
passed away on Wednesday at the age of 77.
CNN's Coy Wire joins me now live from Atlanta with more on Stern's legacy.
And Coy, you know, it's arguable that the NBA is what it is because of David Stern. So many people have been saying that over the last few hours.
You only have to look at this one man's career, right? Michael Jordan -- to see what the vision thing meant to this guy, David Stern.
COY WIRE, CNN WORLD SPORT: Yes, and Paula, David Stern, he has been described as a revolutionary, as a visionary and that vision started as a
fan of the game, often going to Knicks games with his dad as a kid. He ended up shaping the game he loved, becoming arguably the greatest
Commissioner in American sport.
He took the NBA to unprecedented heights. Several franchises were in financial turmoil when he took over in 1984. The finals -- they were
played on tape delay after late local news. Can you imagine that?
But during a 30-year career as Commissioner, Stern presided over skyrocketing growth. According to Forbes, the player's salary cap, which
Stern helped create grew from $3.6 million to just under $59 million when he left office in 2014.
Television revenues jumped from around $22 million to around $930 million and values of team franchises from $400 million to $19 billion. A big part
of Stern's strategy, Paula, was marketing the league stars like Magic, Larry Bird, Michael Jordan and making them global icons. The NBA was the
first pro sports league, Paula, to play regular season games outside the U.S.
NEWTON: Now, you have to give him credit for that because it seems, you know, pretty normal these days, why wouldn't you do that? But no at the
time, as you point out, it was revolutionary.
You know, this is a man who was also incredibly contentious and uncompromising as a leader. You know, he even got you -- I found this so
funny, he got used to hearing the boos from fans. I mean, this the guy who basically fined Michael Jordan for wearing the wrong shoes, and yet the
players still respect him. What are they saying about all of this?
WIRE: Yes, Paula. That is a great point. I mean, this is the man who created dress codes for players and it was this guy telling me what I can
and can't wear. But in the end, he strove for professionalism.
The players knew that and they respected him for it. Tributes came pouring in, Paula. Hall of Famer, Michael Jordan said, quote, "David had a deep
love for the game of basketball and demanded excellence from those around him and I admired him for that. I wouldn't be where I am without him,"
unquote.
And neither would Magic Johnson. In 1991, he announced that he was HIV positive and was retiring. But a year later, Magic wanted to return to
play and a lot of people thought this was a bad idea. But Stern, gathered the facts, talked to experts and was able to convince players, owners and
even sponsors, everything was going to be OK.
Johnson tweeted this, Paula. He said, "David Stern was such a history maker. When I announced in 1991 I had HIV, people thought they could get
the virus from shaking my hand. When David allowed me to play in the 1992 All Star Game in Orlando and then played for the Olympic Dream Team, we
were able to change the world."
Magic's former team, the Lakers played on Wednesday and afterwards, LeBron James said this about Stern.
(BEGIN VIDEO CLIP)
LEBRON JAMES, NBA PLAYER: Him and Dr. James Naismith is two of the most important people for the game of basketball. Obviously, Dr. Naismith
because he created the game, and then David, his vision. His vision to make this game global.
(END VIDEO CLIP)
[09:45:09]
WIRE: Paula, his grand vision and his globalization of the sport were just instrumental in what the league is today. It allows stars like Giannis
Antetokounmpo and Luka Doncic to have the careers they have and for us to have the entertainment value in watching them.
NEWTON: Yeas, and a reminder, David Stern always understood that dollars and cents of the game really impacted what could happen on the court in
terms of how many fans can see it all over the world.
Coy, thanks so much. Really appreciate it.
WIRE: You're welcome.
NEWTON: Now, after the break, using tech to protect us from breast cancer. Artificial intelligence is on the horizon which can equal and even beat --
get this -- the eyes of experts.
(COMMERCIAL BREAK)
NEWTON: All right, we are going to the Boardroom Brief. Google Health is using artificial intelligence to scan x-rays for signs of breast cancer and
a study published in "Nature," the system has proved to be just as good, if not better than expert radiologists.
Breast Cancer affects one in eight women globally and radiologists in the United States reportedly miss a full one-fifth of those breast cancers that
are screened with mammogram.
CNN's Health Jacqueline Howard joins us now. Now, Jacqueline, good to see you. Google has been moving into this health space for quite some time
now. Is the idea that this would eventually replace doctors when it comes to screening and diagnosing cancer?
JACQUELINE HOWARD, CNN HEALTH REPORTER: Well, you have to keep in mind, mammograms currently are one of the best tools we have to detect breast
cancer and what this new AI tool really helps with is detecting signs of cancer that some doctors can sometimes miss.
Now, the tool is based on mammogram images from the U.S. and the U.K., but we have to keep in mind that while this tool did detect signs that some
experts missed, doctors saw signs that the AI tool missed. We should have an image of that here.
You should see, you know, there's an image of a mammogram that the tool was able to detect signs, but then there were mammograms that the doctors
missed. So that really helps put in perspective what we're seeing here and it's exciting, but it comes with limitations.
NEWTON: It definitely comes with limitations. And you know, women live with these facts day in day out, you get a mammogram result back and you
can't really figure out if it is definitive or not definitive.
The issue here, will Google working in concert, or any other AI entity for that matter, working in concert with doctors just make it easier to detect,
right? Because in any cancer, early detection is key.
HOWARD: That's right, Paula. Early detection is key and what we really think here, this tool will not replace doctors. It really can be a tool
that doctors can use to better detect, especially those early signs that you mentioned and we have to keep in mind, mammograms in general, they're
great but they do come with limitations.
We know that about one in five women might have a mammogram where the signs go missed, and that's important to keep in mind. Really, this tool helps
with early detection, and it also can help us turn around results faster. And that's important, too, especially for patients out there who might have
to wait and worry about their results. This tool can help improve the turnaround process as well.
[09:50:25]
NEWTON: Yes, a lot of work to be done there, and certainly any help from technology would be a big help. Jacqueline Howard for us. Thank you.
Appreciate it.
Now Google's rival in the artificial intelligence field is IBM. It predicts 2020 will see business adopt AI more widely as it becomes more
efficient. Rob Thomas is the General Manager of IBM Data and AI. Happy New Year to you.
ROB THOMAS, GENERAL MANAGER, IBM DATA AND DATA: Happy New Year, Paula.
NEWTON: New Year is all about predictions and yet, I have to say I have been stunned at how little of the AI predictions have actually ever come
true. When we've had them, I looked back at them from 2017 and 2018. Nothing has ever turned out, not really panned out the way people hoped.
I want to ask you, though, why are these predictions achievable this time around in 2020? And why are they even desirable on any level?
THOMAS: Yes, let's talk about what's different. We found three things that were really slowing adoption of AI. It was about data. It was about
skills and businesses. It was about trust.
We've made major progress in each of those areas, so if we were sitting here a year ago, we would be talking about AI adoption of five to 10
percent. We just completed a global survey that says it's up to 40 percent, which gives me confidence to say, we're on our way to 80 to 90
percent in the next couple years.
NEWTON: It doesn't feel like that, and a lot of people have been sitting on the sidelines terrified that the jobs are going to be taken away. But
people are saying that look, he shouldn't be afraid of AI. Does that still hold true? Because you know that a lot of companies, when they're looking
at the bottom line, they're looking at AI for precisely that reason. To help out the bottom line.
THOMAS: I think we have to be clear on what AI is. AI is not necessarily robots or flying cars. This is about how you make better predictions in
your business. How do you optimize your business? How do you drive better outcomes working with your clients? That is very real today.
Lufthansa as an example, a client that we announced recently where we are giving their customer service agents superpowers using AI. They've got a
small team of data scientists that are helping 15,000 customer service agents.
We've done similar with Harley Davidson who is using AI to predict first time next time motorcycle buyers.
NEWTON: OK, but just because I recently had something with Lufthansa, I see no change. In fact, I see things getting worse whenever you talk about
customer service.
THOMAS: Sometimes it's invisible to you. So what they're doing is they are actually combing through their data.
NEWTON: Yes, but customer service also seems to be invisible. I mean, look, I don't mean to give everyone a hard time about this. It is that I
think out there, people are really looking for the real effects of AI. How will it help my business? How will it help my customers?
THOMAS: In a variety of different ways to do that, but sometimes it's always a little bit invisible behind the scenes, meaning sometimes it's
about, do I understand the data so I can better serve the customer, as an example.
The other example I give you is Carrefor, a retailer in France, where we're using AI with them so they can optimize store turnover.
So again, is that obvious to you as a consumer? Well, it's obvious if you go in the store and they have the product you need, but you don't know that
AI is doing that. So my point is, it's happening around us in much greater levels than it ever has before. It doesn't mean it always jumps into you.
NEWTON: Understood. You talk about the trust factor a lot going forward. How important is that?
THOMAS: You have to build your AI designed for trust. We built something called Watson Open Scale, which is about how you design your AI to remove
bias, to have explainability of how AI is making decisions. That is so critical as organizations start to move to AI at scale, because they're
going to know, how do the AI make the decision? Can I approve this to a regulator as an example? Am I comfortable with the decisions that are
being made?
So Watson is designed with trust at the core, which is pretty critical for anybody that wants to scale AI.
NEWTON: Now, Watsons have had its own controversies, right, over the years?
THOMAS: Look, we've made tremendous progress with Watson. In the last year, we have done 130 engagements with our data science elite team. IDC
just ranked us number one in market share again. So Watson continues to dominate the AI landscape.
NEWTON: One thing I found really interesting as well from you guys is being prescient about how you remain green. I know it's not obvious to
everyone, but AI's appetite for energy is really colossal and has potential to do so. Just explain that to everyone.
THOMAS: AI, when you're getting to big models that are going to make, you know, big predictions or consistent predictions, it uses a lot of compute
power. And so we've designed systems that are hyper efficient in terms of the processing power, but also the green capabilities, basically energy
efficient.
That's a critical part as this evolves, because as you get companies that go really big into this, it could be a lot of energy consumption, if you
don't design it for a world where we can't afford to do that.
NEWTON: We have to go soon. But I want to ask you, we had that story about breast cancer screening there. In your work, you deal every day and
someone who obviously cares about people and cares about the planet, are you excited about how transformative this will be in the next year or two?
[09:55:10]
THOMAS: I am, absolutely. I mean, look at healthcare in the U.S. is what? Nineteen percent of the GDP? So we're not really getting a good return on
our collective investments.
We've had Watson Oncology in the market for years now, which is making huge strides in cancer and everything we do each day can have a big impact. We
work with Geisinger around sepsis care. So it's not just about cancer. It's about any condition that humans are struggling with, AI can have a
positive impact.
NEWTON: And you're confident there.
THOMAS: Absolutely.
NEWTON: OK. Rob, thanks so much and Happy New Year.
THOMAS: Thank you. All right, Happy New Year.
NEWTON: I appreciate it. And that does it for us here on FIRST MOVE, again the first trading day of 2020. I am Paula Newton, I'll be right back
here again tomorrow as you have a quick look at the markets there, again, we are in rally mode. A good start to 2020.
"CNN Newsroom" starts right after this short break.
(COMMERCIAL BREAK)
[10:00:00]
END
