Return to Transcripts main page

First Move with Julia Chatterley

2.4 Million Americans Filed Fresh Jobless Claims In The Last Week; Growing War Of Words Between U.S. And China; AstraZeneca Says It Can Provide One Billion Doses Of Oxford's Potential Vaccine. Aired 9-10a ET

Aired May 21, 2020 - 09:00   ET

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

[09:00:11]

JULIA CHATTERLEY, CNN BUSINESS ANCHOR, FIRST MOVE: Live from New York, I'm Julia Chatterley. This is FIRST MOVE.

Welcome to FIRST MOVE this Thursday. Great to be with you as always and I can tell you, there's not a moment to lose. We have a jam-packed show

coming up.

Let me give you a look. We've got the chairman of biotech firm, Moderna on their race for a vaccine.

We've also got the President of entertainment and events giant, Live Nation and in just a couple of minutes time, the CEO of pharma giant, AstraZeneca

as the U.S. government makes a huge billion dollar plus bet on vaccine research.

For now, the reasons we cling to the hope of a swift vaccine to help. John Hopkins University says there are now more than five million confirmed

cases of COVID-19 worldwide.

The World Health Organization reporting the biggest daily jump in global cases yesterday. Wow.

In the meantime, here in the United States, the fallout continues, a further 2.4 million Americans filing fresh claims for unemployment benefits

last week, now more than 38 million people have been furloughed, have lost a job, or now face job insecurity. This, just in the past two months alone.

What this number does not tell us, however, is how many people are slowly being added back to the workforce. So, key to watch now, too, continuing

claims. The number of people actually getting benefits.

Those in fact rose by a further two and a half million, close to record 25 million people in the week before last. U.S. futures are lower, taking back

some of Wednesday's games. A war of words and tweets between China and the United States once again, a key focus.

All of the details coming up, but I do want to get straight to the drivers. We have a lot to cover.

Christine Romans, it doesn't matter how many times I see these numbers, I still won't believe them. The scale of the challenge that people face now,

but also the scale of the challenging getting these people back to work somehow.

CHRISTINE ROMANS, CNN BUSINESS CHIEF BUSINESS CORRESPONDENT: A claims number like that, Julia, to be up two and a half million, you'd like to see

some people starting to be reabsorbed into the labor market and you just aren't yet.

Two things here, you've got a backlog of people who have been applying for unemployment benefits. We know the states have been just crushed, their

infrastructure, with handling unemployment claims. So, that's part of the reason why you have so many. These might be claims today that were layoffs

a few weeks ago.

The second part of this is the fear of a second wave of layoffs. Now that you've had nine weeks in a row of numbers like this, for consumers for

workers, that's two months now of car payment, of house payment, of rent payments that have been missed or have been barely made.

And you have some employers who might be starting a second wave of layoffs here because they just don't see exactly when there will be a healthy,

robust reopening of the economy.

We're seeing some reopening around the edges, but you know, a full reopening of the economy isn't here yet. So, there could be this other wave

of layoffs that's happening right now.

CHATTERLEY: And we paid such attention this week to the automakers reopening like Ford, like GM, like Fiat-Chrysler and Ford, already having

to, as it tests people, temporary shutdown facilities to quickly clean them and try and get them back up and running again.

One, the importance of testing; two, the challenges, the health challenges of getting back to work.

ROMANS: And these companies -- leadership from these companies is going to be key. They want to get their people working. They want their production

lines moving, and they want to do it safely because if it isn't safe, then it defeats the whole purpose.

So, I think you will see rigorous cleaning. I think you'll see testing. You'll see contact tracing. You'll see, like we saw with Ford, in the last

48 hours, a quick shut down, quick cleaning, rejiggering and then reopening, and I think that's going to be fits and starts for the reopening

of some of these industries.

You know, they're going to be -- people will be six feet apart, at least. You're going to have to reconfigure assembly lines, so you don't have three

people working on one machine or one station.

What's interesting about the Ford issue as well, Julia, I think, is that they've been out of work for two months. So, that infection came from

outside of the factory.

So, now as people start coming back into the workforce, companies are going to be very careful about making sure that it's not spread from the

community that comes to their sterile work environments.

CHATTERLEY: And that ties right back to the heart of what we've seen today, these initial benefit claims. Bringing people back is going to be a

slow process, too, for safety reasons.

Christine Romans, thank you so much for that.

Now, on to a war of words and tweets between Washington and Beijing. President Trump tweeting, "Spokesman speak stupidly on behalf of China

trying desperately to deflect the pain and carnage that their country spread throughout the world. Its disinformation and propaganda attack on

the United States and Europe is a disgrace. It all comes from the top. They could have easily stopped the plague, but they didn't."

It comes as the U.S. Senate passed a Bill yesterday that could delist some Chinese companies from U.S. exchanges.

Ivan Watson is live in Hong Kong for us.

Ivan, that was the U.S. President seemingly directly criticizing President Xi. The shift again in sentiment from the Senate looking to take direct

action on China and of course, right before the National People's Congress tomorrow. Ouch.

[09:05:49]

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, well, I mean, pick your cliche. Is this a war of words? A Scold War? Tit-for-tat

rhetoric? But it goes on.

You have the Foreign Ministries of both countries that continue kind of lobbing these insults and criticisms back and forth. Today, the Chinese

Foreign Ministry singled out U.S. Secretary of State, Mike Pompeo calling him an extremely irresponsible politician, saying that his numerous lies

have bankrupted his credibility in the world.

And also, going after something that I think the Trump administration is quite sensitive about -- their own record on dealing with the coronavirus

pandemic within the U.S., which has claimed more than 90,000 lives.

Take a listen to what the Foreign Ministry spokesperson had to say today.

(BEGIN VIDEO CLIP)

ZHAO LIJIAN, CHINESE FOREIGN MINISTRY SPOKESMAN (through translator): With regard to COVID-19, the Secretary of State of the United States, Mr.

Pompeo, should tell the world why the U.S. government didn't take strong prevention and control measures between January and March.

Why it was for such a long time against people wearing masks and why it failed to stem the fast spread of COVID-19 in the U.S.?

He has responsibility to explain to the world.

(END VIDEO CLIP)

WATSON: Now, the simmering tensions, Julia have bubbled over into other areas. Taiwan, for example, with the Trump administration announcing that

it had plans for a major arms deal, about $180 million selling high weight torpedoes to that self-governing region, which China views as a breakaway

part of its own territory.

And Hong Kong with the Secretary of State Mike Pompeo criticizing the arrests last April of a number of moderate politicians who are critical of

the government in Beijing and the crackdown over the course of the last year here in Hong Kong.

Beijing has lashed out saying that this is U.S. interference into China's domestic internal affairs and saying basically, cut it out.

One of the big questions is, at what point as these two governments continue hurling insults at each other, does this start to go further? Does

this put in jeopardy, the first phase of this trade deal that both leaders had agreed to verbally at the end of last year? Or could it ramp up

tensions in places like the South China Sea, where warships from both Navy shadow each other and often come quite close to each other?

And I guess we'll just have to see where it goes from here-- Julia.

CHATTERLEY: Yes. Your point about a Scold War as we've talked about in the past is so valid, but we are seeing action on the U.S. side here. The

question is, to your point, what does China do to follow a real collision of cultures? I think, a misunderstanding is going on here.

Ivan Watson, great to have you with us. Thank you.

All right, big news from pharma giant, AstraZeneca this morning. The firm has agreed a vaccine supply deal worth over $1 billion with the United

States.

AstraZeneca, which is working with researchers at Oxford University will initially supply 400 million doses and has secured capacity to produce up

to one billion doses subject to trial results.

The first deliveries could come as early as September. I'm excited to say, joining us now AstraZeneca CEO, Pascal Soriot.

Pascal fantastic to have you with us and congratulations on this deal. A huge bet from the United States on the success of this vaccine.

PASCAL SORIOT, CEO, ASTRAZENECA: Yes, good morning, Julia. It is a bet indeed. But it's also showing that Warp Speed is working and that the U.S.

government and in particular, AstraZeneca are leading. They are leading for the American people, but they're also leading the world.

This is a bet, but if you look at it, the investment is absolutely worth it relative to the economic damage, the social damage and medical damage that

this epidemic, this pandemic is inflicting on everybody.

CHATTERLEY: I couldn't agree more with you, sir. Just talk me through timings here in terms of deliveries to the U.K., deliveries to the United

States.

And I mentioned the September date, how soon could we have substantial mass produced doses in each of these countries?

[09:10:14]

SORIOT: Well, we will getting substantial doses by September-October, and I would say about 30 percent of our deliveries will take place starting in

September-October, and the balance will arrive by December-January.

And so a very, very short timeline, if you will, and lots and lots of people will be able to be vaccinated before the end of the year.

CHATTERLEY: Wow. So, based on that timeline, and the numbers that we're talking about here, again, if this vaccine is successful, we could have the

entire U.K. population the entire U.S. population potentially vaccinated by early next year.

SORIOT: Yes, first of all, as you said, it has to work, right? I mean, so we should remember that it is, of course, not a guarantee that it will

work. We have very good hope and we are confident there are good reasons for it to work. And that's why we are committing ourselves to it and moving

so fast.

But it has to work. And if it works, we'll be indeed able to vaccinate a lot of people. The choice is, you don't have to vaccinate the entire

population.

You does tend to focus on the population at risk, the healthcare workers, the people who have underlying conditions, and then over time, you can

vaccinate a greater proportion of the population, and then you stop the disease when you get to about two-thirds of the population that is immune

to this virus.

CHATTERLEY: Developing herd immunity to your point, sir. Because you reiterated there a few times that this vaccine may not work. Can we just

get a sense of -- I know, you're seeing human trials at the moment, we are then potentially talking about deliveries in September.

Is that enough time between ending trials and getting these vaccines out for use? Are we talking weeks?

SORIOT: Yes, you know -- yes, actually, you know, we are actually trailblazing here because we are not following the standard process. We are

partnering with regulators both in the U.K. and in the U.S.

We are working hand in hand with the F.D.A. We are sharing data on a day- to-day basis, on a real life basis, and basically they have committed themselves to help, look at our data as they come where able, so that by

the time we finished with our Phase 3 programming in August, they can rapidly approve the vaccine for emergency use.

CHATTERLEY: Are you worried that we haven't, because of the desperate need, taken enough time to challenge the virus, to make sure that it's

something that will work and that we can trust?

SORIOT: I would say we are not cutting corners. We are actually moving fast because of this partnership between the regulators and the Oxford who

opened ourselves. But we are not cutting corners. We're doing the clinical work that needs to be done. We've done the preclinical work. We're now

doing Phase 1 and 2. We're going to do Phase 2 and 3.

So, it's completely standard program. It just happens that it is done very quickly, with a lot of resources involved, a lot of passion, a lot of

focus, and a great collaboration with the F.D.A. in the U.S. and the M.H.I. in the U.K.

CHATTERLEY: This is a global problem. You're talking about one billion doses, which is exceptional, but we have what -- just under eight billion

population. How does the licensing deal work?

Can we see other big manufacturers around the world? Pfizer, maybe. Some of your biggest competitors also ramping up production at the same time if

this vaccine is successful.

SORIOT: Yes, but you know, I think in this instance, we are competing against the virus not against each other and we at, AstraZeneca are doing

this for no profit, and I'm sure the other manufacturers would do the same, and we need several vaccines.

So, we're not really competing against one another, we really are trying to bring several vaccines, so we can vaccinate as many people around the world

as possible.

One vaccine will not be enough, number one; and number two, I think society needs to bet on two or three different technologies, so if you had your bet

and make sure at least one, maybe two, maybe three types of technology succeed.

So, here we are really all trying to do the same thing, which is to bring a solution to this terrible pandemic.

CHATTERLEY: Yes, everyone trying to do their best. Sir, fantastic to chat to you. Fingers crossed. Thank you to all your team, because I'm sure

you're all working 24/7, and are doing extraordinary things, and we appreciate it. Great to chat with you.

SORIOT: Yes. Thank you, Julia.

CHATTERLEY: Thank you. All right, let's move on. These are some of the stories making headlines around the world.

More than 80 people are dead after Cyclone Amphan ravaged East India and Bangladesh. The Chief Minister of the hard-hit Indian state of West Bengal

says she has never seen such destruction before.

Officials say she will appeal to the government in New Delhi for help.

Brazil is reporting almost 20,000 new cases of COVID-19 on Wednesday, the highest daily tally so far.

The country now has the third highest number of confirmed coronavirus cases in the world. Almost 19,000 people have died from the virus.

[09:15:34]

CHATTERLEY: The need for a vaccine on a global basis now. We're going to continue this conversation.

Still to come, Moderna's medicine. We speak to the company's Chairman about their vaccine efforts.

And dialing up digital sportswear. Nike applies lessons learned in China to opening up in the United States. Stay with us.

(COMMERCIAL BREAK)

CHATTERLEY: Welcome back to FIRST MOVE. Just a few minutes to go before the opening bell this morning.

Let me give you a look at U.S. stocks because we are looking to a slightly lower open. We've also got the latest on the benefits, the unemployment

claims here in the United States. More than 38 million Americans have now signed up for jobless benefits since mid-March, a rise of 2.4 million

people in just the last week alone.

And the latest read on continuing claims, those are the people that are already claiming benefits. Businesses have been slow in bringing people

back to work.

In the meantime, a new reading on Philadelphia area manufacturing shows activity bouncing from a 40-year low, of course, as a result of the

shutdown this month, but still deep in contraction territory.

And new data from Europe also shows a rise in manufacturing this month, albeit after a historically sharp contraction. Challenges of course to

reopening.

Now, investors as we've been talking about already on the show laser focused on news from vaccine developers. Well, U.S. biotech firm, Moderna,

delivered a big boost to sentiment on Monday when it claimed they were promising early results for its vaccine in a small human trial.

However, some experts began asking questions about the data provided or at least the lack of it. That dampened some of the earlier optimism.

Still, analysts at Morgan Stanley out today saying it assumes a 65 percent chance Moderna's vaccine will work.

Well, I'm pleased to say we're joined by Moderna's Chairman, Noubar Afeyan. He is also the CEO of Flagship Pioneering, which refers to itself as Life

Sciences, Innovation Enterprise. Sir, fantastic to have you on the show. Lots of questions, clearly, lots of hope with regards to vaccine

development at this moment.

Can I start by just asking you why you didn't provide data with the press release earlier this week?

NOUBAR AFEYAN, CHAIRMAN, MODERNA: Well, thanks for having me on today. The press release, announced interim results from a Phase 1 trial with humans,

45 subjects and in fact, we did release interim top line data, which is quite customary by all pharmaceutical and biotech companies under

circumstances when there is an ongoing trial, the conclusion of which has not been reached and the publication has not yet been made, but to

communicate what we know so far.

And what we communicated was that across all 45 people that were dosed at three different dose levels, we saw antibody levels at or above the

antibody levels that are seen in convalescent plasma from recovering patients.

We also reported all the data that we had up until that point, which was that in the first four subjects in the two cohorts, so altogether eight of

them, the antibodies were in fact neutralizing to the virus that we are targeting.

And that's the data that we had, as of Monday morning that we released.

Now, I think everyone has to keep in mind that this is a trial that we're doing jointly with the N.I.H., particularly the N.I.A.I.D. component. It is

the Infectious Disease group of experts at the N.I.H., and the data is being collected by them. It's held by them. And we shared what we had

available to us.

We have also said since that we expect publication of that data and also the animal work that we refer to in our release quite shortly, in a matter

of a couple of weeks as opposed to months.

CHATTERLEY: So, there's a couple of questions there. To your point, you shared data on the neutralizing antibodies for eight patient. What about

the other patients? Are you collecting data on those? And that's what will be shared in a couple of weeks? Why not wait until you have more data

rather than just the eight?

AFEYAN: Of course. Of course. So look, it's typical in the biotech industry, if there is a material amount of data to issue interim results,

this is really for anyone who has been in this sector will know that this is done customarily.

We did so in full concert with our partners at the N.I.H. The fact that across all 45 people, we have seen levels of antibody that are at or above

what in infected patients we witness, as well as in eight out of the eight that have been tested, so far, we see neutralizing antibodies. It was felt

that that was something that we should communicate publicly as a public company.

We did so. We gave all the specifications of what was to come next, and as that complete data set is gathered, which is being done absolutely on every

patient, every subject that is, that will be published in the normal course. And I think that, as I said, that will be imminent.

So, I think the decision of materiality and disclosure is one that companies do with the proper analysis, and in our case, that's what we did,

and we decided that this was an important information to communicate.

Keep in mind, governments --

CHATTERLEY: Yes, you should give the point everything about this is extraordinary. Everything about this process is extraordinary, which I

think is the point that you're making.

I just want to ask a quick question, and I apologize for interrupting, but you mentioned the point that you were comparing the neutralizing antibody

levels to recovering patients.

Can you give us the comparison? What is the benchmark there? Because one of the big concerns about the antibodies that we've seen from patients that

have recovered is the levels are so different. Some are very low, some are very high. What was your benchmark for comparison?

AFEYAN: Look, we are in the partnership with the N.I.H. relying on the expertise that our collaborators have and the access they have to data from

a number of sources.

What you are referring to about variable levels of antibodies stems from publications of papers that are coming from different places around the

world. There's very few such data available, and I would say that it's by no means a medical certainty that patients are exhibiting different levels

of antibody.

It is the case that in a few -- equivalent number of few people, people have quickly put out preprint saying there may be differences.

We are relying on the totality of the data that our partners have communicated and what they have said is that these levels of antibodies are

at or above the levels that we are seeing in convalescent plasma and to some extent, we take their representation of that.

And as this is published further, there'll be much more data made available.

But you're right, this is a fast-developing set of facts. And of course, amidst that situation, you're always going to have some people who are

going to question no matter what anybody says, because it's just not knowable.

So the choices either some someone says nothing and we just kind of wait until the vaccine is approved, or at various points, we share what we have

and we allow people to make decisions based on that information.

CHATTERLEY: Yes, you're right and human lives are at stake whether it is through the virus that we're fighting here or the vaccine. So, there's

going to be debate on all sides.

Talk to me about moving ahead here. Do you feel like there's some degree of pressure? Whether it's governmental pressure, whether it's just simply

because this virus is causing devastation to be on the front foot? Is there a race being created here or are we all racing at the same time and

together?

AFEYAN: I think you've heard this in the past. We've said this certainly for the last three months. Our only race is a race against the virus. This

is a disease that is really kind of pitting the collective immune system of all of humanity against the predator that is attacking us based on our

social nature. That's what this is all about.

It's at the end of the day, a natural competition, however unnatural it feels to us, but it is a natural competition between a virus that has

evolved to spread based on our social contact, and our immune system that is seeing it for the first time and needs to react.

The quarantine suppression steps that have been taken are a temporary measure to give our immune system a chance and our technology a chance to

be able to wage a successful battle, and of course, that situation, the moment, puts a lot of pressure on everybody who decides to get engaged just

like the frontline medical workers.

I think that the entire biotechnology enterprise that's going after this type of rapid development feels a sense of urgency. I also would comment,

you mentioned hope. This is a word that's been going around quite a bit of late.

You know, my view is that hope is something that the situation is causing people to search for, to want. All we can do is to provide a basis for the

hope.

In other words, it's one thing to hope because you're desperate. It is another to hope because there's increasing facts. And as the body of

evidence comes out from us and others, we hope that -- we hope that the hope people have is justified. And that's going to take a few more months.

But we're quite encouraged by the start.

CHATTERLEY: And we have to be careful as well, that whatever gets produced here ultimately works and that trust isn't broken.

We're already seeing in the United States, the levels of vaccines for other things being taken dropping. There's a big anti-vaccine movement here.

Trust is critical here, too, surely.

AFEYAN: Trust is critical, and of course, trust benefits from having more and more time to take the necessary safeguards. And that is a different

form of pressure that's being created because on the one hand, when the economy and when people's lives are being impacted in a way that vaccines

might be able to address.

And on the other hand, the more safety data we could generate, the more we could be comfortable that the trust people place on technology is

justified.

At the end of the day, these are decisions that will be made by governments that are elected to represent and protect people, and we are very much a

piece of that. But ultimately these will be country by country decisions that are made with the best information possible.

CHATTERLEY: Yes, Noubar, thank you so much to you and your team, of course, everyone working there. Great to have you with us. And we wait in a

couple of weeks' time.

AFEYAN: Thank you for having us.

CHATTERLEY: Noubar Afeyan there. The Chairman of Moderna.

All right. The market opens next. Stay with us.

(COMMERCIAL BREAK) [09:32:40]

CHATTERLEY: Welcome back to FIRST MOVE. U.S. stocks are up and running this Thursday. As expected, a moderate start to this session this morning

or slightly lower as you can see. This, as the U.S. reports that another 2.4 million jobless claims were filed last week.

Investors also rattled by escalating rhetoric between the United States and China, but overall, let's be clear, stocks still solidly higher on the week

with small cap stocks, in particular showing signs of strength.

Now, America is reopening for business. COVID-19 restrictions are being rolled back in all 50 states.

Good news for Nike. Nearly 40 percent of the company's sales come from North America. Safety, of course, though key to this next stage and this is

where the company has an advantage.

It's been through this reopening before in areas across Asia, particularly in China.

Joining us now Heidi O'Neill, President of Consumer and Marketplace at Nike. Heidi, great to have you on the show. Let's focus in on what you're

seeing in Asia, particularly in places like China.

You were straightaway getting the digital strength of the company up and running there. What are you seeing right now, both digitally and of course

in store.

HEIDI O'NEILL, PRESIDENT OF CONSUMER AND MARKETPLACE, NIKE: Great. Good morning, Julia. Yes, you know, our teams are amazing around the world. And

it started in China with that team and they were just watching and learning as the pandemic unfolded and they found right out of the gate that our

employees and their families and our shoppers in China, they needed a way to relax, workout and, and really get fit and stay fit while working from

home.

So, that team hustled and in days, not weeks or months created some amazing experiences in China to help families stay happy, fit, and with a great

mindfulness programming as well.

And the results have been incredible. In China, we saw an 80 percent increase in monthly active users, and we saw a digital acceleration as

well.

But it was really great, Julia, to see where the innovations coming out from the China team that we're starting to scale around the world.

So, we learned out of the gates that our consumers and people at home wanted to not just work out at home, but build a community. So, we launched

live streaming of workouts.

We found that they wanted more content. So, we had 2X, 3X our amount of content we were publishing a day.

And then once the stores were opened, we learned from China as well and we saw when stores opened, people want to shop and they want to come back.

And so we had to quickly launch a digital queuing system that now we will be scaling around the world.

So, we've seen great results and engagement, but we've also seen China help us innovate for the world.

[09:35:34]

CHATTERLEY: Map that now to what's applicable to the United States. You're obviously have got to take care of your workers, gauge that as you bring

them back into stores, but also trying to promote the kind of levels of digital access shopping, let's be clear, in the United States. We are

already seeing in really digital savvy markets like China.

O'NEILL: Sure. Well, in the U.S., what we're doing and we'll actually be doing this globally as well is staying focused on making sport a daily

habit. That's our mission at Nike.

And, you know, I don't think that mission has ever been more important. Even with us staying at home, maybe especially with us staying at home, we

need to work out more than ever.

So in the U.S., we have made our Nike Training Club app free for all consumers. It's a subscription service that we will keep free for the

foreseeable future.

And we've added 185 programs on Nike Training Club. We have all links on the Nike Training Club app from 15 minutes to 60 minutes, and all different

types of workout from high intensity to big workouts for small spaces.

My favorite right now are some of the short ab classes I'm doing in my long Zoom days, and we're seeing great results there and we're seeing triple

digit growth with our mappers and we also are in our Nike Run Club, we have created a treadmill run and an audio guided run so that even if you're

running alone, you feel like you're not running alone.

And Julia, all of this is translating to really strong digital business as well. We're seeing over triple digit increase in our Nike app revenue as we

connect our digital experiences and platforms for our members.

CHATTERLEY: Yes, I saw some of the women's digital business as well, up more than 40 percent in Q3 as well. So, it is driving sales, which is

important.

Very quickly, because I have about a minute, talk to me about protecting workers. What this means? It begins when they get up in the morning and

they commute into the business. How will you make a decision based on what workers you need in the beginning? Is it simply going to be how many

shoppers you get through the doors?

O'NEILL: Yes, well, you mentioned it earlier that we really do have a great playbook with China, and with the doors open there, and we've learned

a lot. We've learned how to keep our employees and our shoppers safe.

And essentially, what we're doing is using a combination of incredible cleaning protocol for our stores, as well as tech and we're providing our

employees in the store a really solid tech foundation to help shoppers shop in a contactless manner if they'd like through self-checkout, through

curbside contactless pickup, and through one of my favorite services called click and try where you can just scan a barcode on a mannequin and find out

everything you need in that mannequin and have it brought to you or taken directly to the fitting room.

So, we're providing our shoppers and our employees with some great new tech and services to make it easier, and to make sure we keep that social

distance.

CHATTERLEY: It's a whole new way of shopping. Very quickly, Heidi, I've just realized I've got to ask you about "The Last Dance."

Michael Jordan, ESPN, people who haven't watched it, they really have to. What has this meant for Nike because you -- the tick and Michael Jordan is

synonymous, what has this meant for the brand?

O'NEILL: Now, you know well I've had some fun Zoom calls with Michael Jordan over this period and you know, we are so excited to see that people

when sport is paused are tuning in to -- and put the love of Jordan basketball and sneakers back to our digital ecosystem.

We talked about -- our sneakers app is on fire with "The Last Dance" and all of the energy and in fact, Julia, we just had a launch of the Air

Jordan Fire Red where we sold out in seven minutes right during "The Last Dance."

So you know, we're seeing communities building and energy around the sport and around love for sneakers as well.

CHATTERLEY: Yes, what a winner. He is very welcome. Next time you Zoom him, he is very welcome on the show.

O'NEILL: I know. I know. It is a big day in the O'Neill house.

CHATTERLEY: Heidi, great to chat to you. Heidi O'Neill, President of Consumer and Marketplace at Nike there.

All right, we're going to take a break here on FIRST MOVE.

Coming up, a blast from the past. Rock concerts with crowds packed shoulders to shoulder have no place in our current reality.

The President of Live Nation Entertainment though tells me how live events are changing and adapting so the show can go on, after this.

(COMMERCIAL BREAK)

[09:43:29]

CHATTERLEY: Welcome back to FIRST MOVE. With lockdown and social distancing, it hard to fathom how to hold a live event with a big audience.

Well, first tentative steps are being taken. It's thought this might be the first live in-person concert since the pandemic hit. It was a small

audience, all of them temperature checked, watched Travis McCready play in Arkansas, and artists are live streaming gigs. The performance by The Head

and The Heart attracted 130,000 people.

It was laid on by Live Nation, the largest live entertainment company in the world, which also owns Ticketmaster -- 74,000 of its events were

impacted, but the company says over 90 percent of ticket holders are waiting for rescheduled shows instead of refunds.

And yet, 80 percent of fans say they expect to be going back to shows within four months. And therein lies the challenge.

Joe Berchtold is the President of Live Nation, and he joins me now. Joe, great to have you with us. That's a lot of optimism from people who have

worked hard to get those tickets that they intend to keep hold of them and go at some point in the future.

JOE BERCHTOLD, PRESIDENT, LIVE NATION: Good morning, Julia. Thanks for having me on. No question, right now, we're at a point of disruption. As

you said, over 70,000 events have been either postponed or canceled because of this.

But the one thing we know is the fans want to go to concerts. There's massive demand. Everything we've seen from as you said, people holding on

to their tickets to the surveys we've done.

We just did one globally over 10,000 fans, over 90 percent are saying they can't wait to get back to concerts across the world.

And we expect that as we can come out of this, the bands will be there, the artists are going to be there. And as we get into 2021, we expect to be

back full force holding concerts.

[09:45:17]

CHATTERLEY: Talk to me about what happens between now and 2021 because this is the key. I know you've already started the drive-ins in Denmark

that we've seen, but small events are one thing. How do you go back to filling the O2? Do you do that in 2020?

BERCHTOLD: Yes, you're right. I think in 2020, what we're going to see is slow steps. We operate in 40 countries, over a hundred cities, so every

market is different and every month is different in every market.

So, our philosophy is we're going to follow the facts and the science. We're not the doctors. We're going to listen to the public health officials

in each market, figure out what's right for that market.

So, in Denmark, as you said, we've launched a series of over 60 drive-ins. We had our first one the other day with over 600 cars coming. We've done

similar events in the States.

We expect, in Spain, in New Zealand, in Austria, even getting into the U.K. over the next few months, we will be doing properly social distanced

concerts, and that'll be drive-ins. It'll be large venues with a handful of people. It'll be virtual concerts, where we have artists on stage and

people are watching virtually from their homes.

A whole range of events that can allow fans and artists to stay connected because we think it's important that we continue the live event. We

continue the music getting to fans in this period until we can ramp up and get back to the more normal situation next year.

CHATTERLEY: Can you make money doing that, Joe? Or is this just about breaking even, at best?

BERCHTOLD: Our business model absolutely is 30,000 to 40,000 concerts a year for 70 million to 100 million fans globally. We make our money as we

put on the concert, by selling the beer when people go to the show, the sponsorship with the advertisers, the ticketing fees, that's our business

model. That's how we make money.

It's been very successful growing over the past decade. In the next six months, we're not going to have that sort of scale, that level of activity.

But we do believe it is our responsibility as the leading live entertainment company in the world to bring those fans and those artists

together.

We don't expect it's going to drive huge economics for us this year. But we do think it's very important.

Again, all of our surveys, say the fans want to stay connected to music. They want to get connected to the artist. They want to have a feeling that

they are getting out of their homes in some way, either actually or virtually.

And so we think it's our responsibility to continue to provide those opportunities. We think there could be some interesting business

opportunities that come out of it.

We're seeing greater and greater interest in the notion of a virtual concert, and that may provide an additional business opportunity for us

going forward.

But first and foremost, we want to keep the music going.

CHATTERLEY: Yes, I mean, we need engagement and culture more than ever, quite frankly, at this moment. Joe, I want to ask you very quickly, legal

risk. Do businesses such as yourselves need some formal form of legal protection in case people do catch the virus when they're at these kinds of

events?

BERCHTOLD: Yes, we're operating in such a broad range of countries and markets, and we are following the process that we think is right.

We're not trying to rush things. We're working with the public health officials, to follow the guidelines that makes sense in each market as fans

start to come back to shows.

And I think it's our expectation that we, as a business, we need to know we can do that. If we're following the rules set up by the public health

officials.

We're like everybody else, the airlines, the hotels and so on, we need to be comfortable that we can then do that and not be exposed to massive

lawsuits.

So, hopefully those issues will get resolved and so we can all start to take steps towards a more normal.

CHATTERLEY: Yes, challenging times, but we'll get through it. Joe, fantastic to chat with you. Stay in touch, please, sir and stay safe.

BERCHTOLD: Thank you, Julia.

CHATTERLEY: Joe Berchtold, President of Live Nation. Great to chat with you.

All right, up next, we take into the skies, but we're doing it in masks. CNN gets exclusive access to Dubai Airport as Emirates resumes passenger

flights. That's next.

(COMMERCIAL BREAK)

[09:51:29]

CHATTERLEY: Welcome back to FIRST MOVE. The Coronavirus pandemic has crippled the airline industry around the world, but Dubai based Emirates

Airlines is hoping to rebound by resuming passenger flights out of the UAE to nine cities beginning Thursday.

The airlines COO says it's time to move out of lockdown.

(BEGIN VIDEO CLIP)

ADEL AHMAD AL REDHA, CHIEF OPERATING OFFICER, EMIRATES AIRLINES: The most important thing is that we all know. Aviation, it is a very important

element in any country and is the link between one city to many cities in the world.

And in particular, in the United Arab Emirates, we want to connect Dubai and that's through Emirates to all the globe, and by Emirates taking this

lead is to give confidence and to send a strong message to the rest of other countries and the airlines, there is -- we need to start.

We cannot continue to be in the lockdown process.

(END VIDEO CLIP)

CHATTERLEY: John Defterios joins us now. Bold leadership, John, how they going to do this?

JOHN DEFTERIOS, CNN BUSINESS EMERGING MARKETS EDITOR: You know, it's interesting, Julia, to watch this nine-city experiment get off the ground

here because according to Emirates, the demand was higher than expected.

On the first day, 30 to 50 percent capacity, the latter number was in the higher classes of travel. So, that's encouraging that there was pent up

demand, but they're not being shy about the idea that can they not lead this process going forward?

In fact, the feedback they are getting from the polling data of their customers is that we trust your protocols and we'd rather have you lead us

than the governments around the world, which are giving confusing messages.

Now, I'm on the top of headquarters. We can see behind me, terminal three. They don't like to see parked planes.

One executive said today, look, we usually handle 250 flights a day, not less than 10. That's the condition they're in right now.

And we have to put Emirates into context as well, Julia, I think because it's not just a carrier. Dubai is built around it, the trade links to

Africa, to Asia, to Europe and to the Americas were centered around this carrier for better than three decades.

So, that's why they're willing to step out a bit here. It represents a third of GDP. So, if they can be the first ones out and say, look, we've

established the protocols. We're willing to adapt the protocols as we move forward. That's okay.

In fact, they adjusted one today. Yesterday, they said you had to be here four hours before the flight. Today, it was three hours, and they're

serving hot meals already when they had boxed servings planned before.

CHATTERLEY: It's fascinating, isn't it? And to your point, so critical to the economy that you have to get moving here and balance the risks. What is

staff saying about this, John?

DEFTERIOS: Well, it's a whole new world inside the terminal, Julia. We were there for about 12 hours today, it started about 5:30 in the morning.

I spoke to one cabin crew member, and I said, what's going to be like you were in this shield, this clear shield, and a disposable robe, basically,

for PPE on the flight? She said, look, if it rebuilds confidence with our consumers, it's not natural for us. I never thought I would have to do so.

But it's worth it.

They're going to put another staff on board just for sanitation, to clean the washrooms and the rest of the cabin. Again, that's unusual. It is

innovative at the same time.

And if you go into the terminal, Julia, it's amazing. You've got to take a thermal test. There's social distancing. There's Plexiglas at check-in.

Plexiglas at Immigration.

It is the new normal, and even passengers were saying, I've got the gloves and the masks. I'm not crazy about wearing them. I have to wear the mask on

the plane, but if it allows me to fly and the one passenger I spoke to who caught my attention is from Milan.

She has been parked here for three months because of the situation in Northern Italy. And she says, I'd rather fly living under these guidelines

and even after living here for three months, I can trust the brand to step out into the market again.

[09:55:15]

CHATTERLEY: Fascinating. Confidence, whatever it is, consumer confidence, staff confidence -- together, that's how we get moving again. Critical in

the health crisis.

John, great work. Thank you and you look very nice in your suit, and the handkerchief. Love it.

DEFTERIOS: Great. Yes. Thank you.

CHATTERLEY: All right. Travel and tourism industries have taken a huge hit from the pandemic as I mentioned. Well, Richard Quest is going to be taking

a special look at tourism in crisis.

He'll be speaking to top airline and hotel CEOs, as well as Tourism Ministers from some of the countries that rely the most on visitors. That's

tonight, Thursday night at 8:00 p.m. London time and 9:00 p.m. in Paris. Do not miss that.

All right, that just about wraps up FIRST MOVE for today. I'll be back tomorrow. Stay safe. Stay well and I'll see you then.

(COMMERCIAL BREAK)

[10:00:00]

END