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First Move with Julia Chatterley
U.S. Job Gains Soar in June, But Will Rising COVID Cases Stall The Recovery; Interview with Sen. Ben Cardin (D-MD) Regarding The U.S. House Passes A Sanctions Bill Following The Hong Kong Security Law; Tesla's Triumph - Accelerating Past Toyota To Become The World's Most Valuable Carmaker. Aired 9-10a ET
Aired July 02, 2020 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:24]
JULIA CHATTERLEY, CNN BUSINESS ANCHOR: Live from New York, I'm Julia Chatterley. This is FIRST MOVE and here is your need-to-know.
Record rebound, U.S. job gains soar in June, but will rising COVID cases stall the recovery?
China censored. The U.S. House passes a sanctions bill following the Hong Kong Security Law.
And Tesla's triumph. Accelerating past Toyota to become the world's most valuable carmaker.
It's Thursday. Let's make a move.
Welcome once again to FIRST MOVE, and not a moment to lose. We've got another jam-packed show for you today. First up, as I mentioned, a big day
for U.S. job gains, a much stronger than expected, 4.8 million jobs were added in the month of June. It's the second month in a row of blockbuster
gains with leisure and hospitality jobs leading the way. The risk is those gains could be reversed or at least stalled as we see more delayed
reopenings.
But it does mean the U.S., unemployment rate has now dropped to 11.1 percent, an improvement, of course -- a dramatic improvement -- but still
higher than the peak of the global financial crisis.
Meanwhile, the number of people still collecting benefits remaining above 19 million people. That, despite the millions of job gains that we were
talking about there and that could be down to part-time workers still collecting benefits that bump up the numbers.
Remember, the challenges for workers here, far bigger than the unemployment rate suggests. Plenty more analysis coming up shortly.
For now, let me give you a look at U.S. futures. We've added to earlier gains on those numbers with the NASDAQ set to hit a fresh record high.
Meanwhile, the U.S. manufacturing sector is also growing once again, which helps to lift stocks and sentiment yesterday. The COVID challenge, of
course, here harder for the services sector businesses like hospitality than perhaps the manufacturing sector, and we'll talk about this later on
in the show.
In the meantime, a good session for Europe and Asia overnight, too, as you can see strong gains there across the board. Chinese stocks now sitting at
more than five-month highs with gaining all of the pandemic-related losses and now positive, in fact year-to-date.
So, investor optimism around the globe, it seems, as we begin Q3, but of course, the health crisis persists and with almost half of U.S. states now
pausing reopenings or winding back what we've already seen. The jobs data feels a little old.
We've got lots to discuss. Let's get to the drivers. Coronavirus infections spiking to previously unseen highs here in the United States. More than
50,000 new cases were confirmed on Wednesday. The surge comes as President Trump appears to be softening on wearing masks.
CNN medical correspondent Elizabeth Cohen is with us. Can't escape from the politics here, Elizabeth. More than 70 percent of these fresh cases coming
in red states. Overnight, President Trump seemingly suggesting he is okay with mask wearing and this could be a critical development, not only for
cases, but also for the economy, too, as we've discussed.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Julia, that's absolutely right. Let's take a look at these new cases in the United States. The
numbers really are going up. On Wednesday, you can see that we had 50,203 new cases in the U.S. The previous high was 45,255.
So, it's considerably higher than the previous number. That brings the U.S. total to more than 2.6 million. Now, Julia, you mentioned that President
Trump seems to have done a about of an about-face here.
Previously he had indicated that he would not wear a mask. Now, he says I'm all for masks. He actually says that he has worn one before, although never
in front of a camera. He says, he has worn one and he liked the way he looked in it. So, well, there's that -- Julia.
CHATTERLEY: It's all about the way you look, Elizabeth. Also, Dr. Fauci mentioned yesterday -- I know, I'm being facetious.
Dr. Fauci said yesterday that he meant to alarm people by talking about the idea of seeing 100,000 cases a day, but again, we go back to the dramatic
rise that we've seen in cases in the last few weeks and without preventative measures, without action, be it lockdown, be it greater
numbers of people wearing masks, the acceleration towards that seemingly clear?
COHEN: Oh, for sure. I mean, when I've spoken to experts about what Fauci said about getting to 100,000, they thought that unfortunately, that is
plausible and I have known Dr. Fauci for many years. He does not give numbers that he can't back up. Will we get there? Hopefully not.
But it certainly is a possible situation. It could happen. It reasonably could happen when you look at how the numbers have been going up. What we
need to do is take action so that those numbers don't get to 100,000. But he wasn't being hyperbolic. It is certainly easily within the realm of
possibility.
[09:05:44]
CHATTERLEY: Yes, mark these warnings. Elizabeth Cohen, always great to have you on. Thank you so much for that.
Now, as I mentioned, U.S. futures are soaring on that better than expected June jobs numbers, 4.8 million jobs created last month. Christine Romans
joins me now.
Christine, it is a great number. It is bigger than the average of what analysts were expecting. But as you and I well know, it captures all the
upside of reopenings and none of the challenges that kicked in later on in June.
I don't want to be a pessimist, but I think caution needs applying here.
CHRISTINE ROMANS, CNN BUSINESS CHIEF BUSINESS CORRESPONDENT: You know, I think there's a lot to these numbers and a lot underneath these numbers and
we should look at that full picture.
You're right, it is a rearview mirror picture of the middle of June when we were reopening across the country and there was optimism about getting back
to quote-unquote "normal."
The 4.8 million jobs, many were in hospitality and leisure and doctors' offices that now have started their elective procedures again, some
construction. So some of the sectors are showing you where people are going back to work.
But that's before the resurgence of the coronavirus cases that we have seen here. The jobless rate as well, important to point out 11.1 percent is an
improvement. That number at face value is still higher than it ever was in the Great Recession or in that terrible 1980s recession and the government
again saying that there's a classification problem that they have bene working with, and it would be more like 12 percent unemployment rate if you
had all people classified the right way.
And then we just showed you the weekly jobless claims. So on the one hand, you have the stronger than expected jobs number for the month of June, but
the more high frequency data is still showing a lot of people filing for the very first time for unemployment benefits and those continuing jobless
claims, people continuing to get checks still stubbornly high, above 19 million.
CHATTERLEY: And some of the biggest jumps once again, admittedly in the biggest states, the likes of California, Florida, New Jersey as well. Ones
where we're watching cases rise, and of course New Jersey taking additional measures in the past week, too.
Christine, the stubbornness of the numbers of people here that are continuing to claim benefits as well, it's still above 19 million people.
One suggestion I saw made about this was it incorporates people that have had their hours reduced, and I still think for all the millions of people
that we're talking about, you have to look down this enormous release to see that more than 30 million people in the latest data that we have
claiming some form of benefits.
ROMANS: It's just mind blowing. It really is. And I want to be very clear that this is a stronger than expected picture today, but it's all very
relative. We are at the bottom of the very deep hole in the American job market and we don't see the end of the pandemic quite yet.
And I think that this sort of snap back, this resurgence in cases really raises a lot of questions for companies, for people going back to work, for
states and mayors, for how we're going to handle any of these new cases and what that's going to mean for the jobs market, and what it's going to mean
for stimulus.
We heard the President say yesterday that he is all for more stimulus checks for American families, even as some of these numbers start to
improve.
There will need to be more support for the American economy until we get to the other side of the pandemic part of this problem as well.
CHATTERLEY: Yes, and this is the key. Let's celebrate millions of jobs being added back, absolutely, let's try and do our best to keep adding
those jobs back by getting control of the virus. It's all positive. It can be all positive here. It's just the fear is if we don't get any control of
this, it will cost jobs.
ROMANS: Absolutely. And it's not one or the other. It's not ignore the pandemic and focus on reopening, right, or stop reopening. I mean, have to
do all of those things at the same time. As we're reopening, we have to have an eye on the pandemic and a real national strategy -- national
strategy -- for how we are going to protect people and carefully open the economy again.
So I think that we've started, we're out of the gate and the jobs clearly show that they will come back when the economy reopens. But watch those
numbers for the resurgence of coronavirus cases and whether that could temper some of this near-term optimism here.
CHATTERLEY: Yes. Those job gains are coming at a cost in terms of cases and it doesn't have to be this way. Christine Romans, thank you so much for
that.
[09:10:08]
CHATTERLEY: All right, now onto the crisis in Hong Kong. China warns it could retaliate with corresponding measures for Britain's decision to
extend a path for citizenship to Hong Kong residents. The offer by the British government came shortly after China imposed a tough new security
law on Hong Kong.
Meanwhile, CNN's Will Ripley spoke to the only Hong Konger on the committee that drafted the law. Will joins us live from Hong Kong.
That says it all, Will, the fact that there was just one Hong Konger representing millions of people in this territory. What did he have to say
about the use of it and how stringent perhaps it will be used?
WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: Yes, think about it. You know, 1.4 billion people in China and 170 members of the Chinese political
elite that basically decide the laws that decide their fate, and also the fate of the seven million people here in Hong Kong, with just one Hong Kong
representative.
But I was able to speak with him and he took us inside the process of creating this National Security Law, which despite the condemnation from
the United States, which says it's the end of one country, two systems, the U.K. offering a path to citizenship for three million British nationals
overseas living here in Hong Kong, he says that this law is necessary to prevent what he calls acts of terrorism, and potential acts that could
undermine the national security of China.
Because China views this protest movement, Julia, not as an uprising from within. They think foreign forces are the ones who are influencing. So I
asked him about the arrests, the first wave of arrests for this National Security Law at the protests for the July 1st handover, a very small
protest by the way compared to last year, but there were 370 arrests, Hong Kong Police out in force, and some of those arrests, the first for the
National Security Law.
(BEGIN VIDEO CLIP)
TAM YIU-CHUNG, STANDING COMMITTEE MEMBER, NATIONAL PEOPLE'S CONGRESS (through translator): It might be because some people intentionally
challenged the law, also, it might be because they did not understand the contents of the law.
RIPLEY: How is a 15-year-old girl in possession of a Hong Kong Independence banner, or anyone for that matter, a threat to the national security of
China simply for possessing such a banner?
TAM (through translator): We feel bad that some youths and teenagers have violated the law. We really don't want to see such cases, but unfortunately
in the last year, many youths and teenagers violated the law.
(END VIDEO CLIP)
RIPLEY: He did say that a banner in and of itself may not lead to very serious charges under the National Security Law, because the penalties here
are huge compared to what existed in Hong Kong just a day and a half ago.
You're talking about, you know, ten or for years, the maximum penalty life in prison for these crimes of secession, subversion and terrorism or
colluding with foreign forces.
But what they are going to do is take people's phones, go through their social media posts for the past many years, look at their electronic
footprint and try to see if they can build a case that these people are somehow undermining the national security of China, including that 15-year-
old girl.
So, her investigative process is just beginning, but this also has activists and teachers wondering could they be prosecuted for what they
teach in school if it ideologically doesn't line up with the beliefs of the Communist Party in Mainland China?
But there are others who say that this is a return to a sense of order here in Hong Kong and we did see the chilling effect. The number of people who
were out protesting, willing to take the risk to be prosecuted under this new law, Julia, substantially smaller this year than last year, where of
course we saw hundreds of thousands of people out on a regular basis.
And then one year ago yesterday, remember, they broke into the Legislative Council Complex, took over the complex, spray painted anti-China slogans on
the walls. Those kinds of crimes today could land people in jail for the rest of their life potentially under these new laws here in Hong Kong.
CHATTERLEY: It's so important to understand. Will Ripley, thank you so much for bringing that to us.
All right, let me bring you up to speed now with some of the other stories making headlines around the world.
In Russia, official results show a big majority of voters backed a raft of constitutional changes opening the way for President Vladimir Putin to stay
in power until 2036. Seventy eight percent voted for the government's plans, permitting him to run for two more six-year terms of office.
Independent organizations have cast doubt on the numbers and questioned the legitimacy of the voting process.
In London, a High Court has denied Venezuelan President, Nicolas Maduro access to around $1.1 billion in gold stored in the Bank of England.
The court said it is because the British government recognizes Juan Guaido as Venezuela's President instead. The Venezuelan Central Bank controlled by
Mr. Maduro government says it will appeal.
Okay, coming up on FIRST MOVE, as China condemns the U.S. Congress for taking a stand on Hong Kong, a key senator involved tells me why the
President must intervene.
And later, the Paycheck Protection Program may have been extended, but what more is needed to save America's small businesses? That's all coming up.
Stay with us.
(COMMERCIAL BREAK)
[09:18:14]
CHATTERLEY: Welcome back to FIRST MOVE live from New York on this rare bumper jobs Thursday. U.S. stocks are set for a strong open this morning
after the U.S. reported a much stronger than expected 4.8 million jobs were added to the economy last month. That's great news.
The unemployment rate ticking lower to just over 11 percent. The discouraging news now is that the jobless claims remain elevated, another
1.4 million people filing or first-time benefits last week, and the number of people actually collecting benefits remains stubbornly above that 19
million people level.
The business challenges remain acute, and the fear now of course is that the economic activity has slowed in recent weeks due to rising COVID cases
in many parts of the United States.
All right, let's return to one of our other top stories, the future of Hong Kong, and China says U.S. legislation to obstruct its new National Security
Law is doomed to fail.
The House passed legislation that would penalize banks doing business with Chinese officials who brought the law into place. The legislation will now
return to the Senate. House Speaker Nancy Pelosi meanwhile slammed China's actions.
(BEGIN VIDEO CLIP)
REP. NANCY PELOSI (D-CA): Beijing's so-called National Security passed on the eve of the 23rd anniversary of the handover of Hong Kong from the U.K.
to China signals the death of the one country, two systems principle.
The purpose of this law is to frighten, intimidate and suppress the people of Hong Kong who are peacefully demanding the freedoms they have long been
owed.
(END VIDEO CLIP)
CHATTERLEY: Democratic Senator, Ben Cardin who sits on the Senate Committee on Foreign Relations. He is also a sponsor of the Hong Kong Safe Harbor Act
which would offer protesters refugee status in the United States.
Senator Cardin, fantastic to have you on the show. Thank you so much for being here.
I do want to talk about the Safe Harbor Act, but first, Speaker Pelosi making a very bold statement there. Is the Democratic Party operating as if
the one country, two systems is now over?
[15:20:19]
SEN. BEN CARDIN (D-MD): Well, Julia, first, it's good to be with you, and we stand with the people of Hong Kong. There were commitments made of self-
determination and rights. Those commitments are being now denied by China.
So the legislation that we have authored would provide a safe harbor for those who want to seek refuge here in the United States from the oppressive
policies.
It looks to me that Speaker Pelosi is correct. We're seeing the end of the one country, two system commitment that was given 23 years ago and that is
going to be problems not only for the future of the people that live in Hong Kong, but for the special status that that territory has in regards to
international trade. So, there will be consequences.
CHATTERLEY: Can you just elaborate on the consequences? Are you in favor of seeing the withdrawal of those special privileges, those trading privileges
that Hong Kong has been given by the United States?
CARDIN: I'm in favor of the United States leading an international effort to have China comply with its commitments in providing the rights for the
people of Hong Kong. That's our objective.
Our objective is not to isolate Hong Kong. Our objective is to protect the rights of the people that live in Hong Kong, and this law that China
passed, the Security Act, so-called Security Act, is a repressive measure against the rights of the people of Hong Kong and we have to stand up
against that.
CHATTERLEY: Senator, does this act really have bite, though? Because what if China tries to move to prevent those Hong Kong protesters leaving and
coming to the United States or another nation? What is the response then?
CARDIN: Well, you have seen where the United States stands up with our allies on principle, on basic international and human rights. We're
stronger for that. So there will be consequences.
There will be consequences in regards to the relationship between the United States and China and I hope our allies and China. We have many, many
aspects to that relationship and clearly, it's all wrapped in our value and living up to our commitments, and China is not living up to its commitment
today, so there will be consequences.
CHATTERLEY: The United States and China are the two largest nations in the world. They're the moist militarized nations in the world. Getting along,
being in a relationship actually is essential going forward and I think you've hinted at that given the complexity of the broader relationship.
What does the relationship between the United States and China look like under a future President Biden? Is it stronger or weaker than it is today,
do you think?
CARDIN: Well, I hope it would be stronger from the point of view that the United States will stand up for international human rights values and make
it clear to China that we want to have a productive relationship.
We want to have a relationship that protects the security of our countries and the region. We want to have a relationship that can benefit both of our
economies and the global economy. But it's got to be based upon international standards.
So standing strong against China with our allies -- for me, the problem with the Trump administration, he has isolated America where we should be
isolating China. So I think you'll see a stronger relationship. That doesn't mean we can't do more than one thing at a time.
Clearly, we cannot stand still and let them do what they're doing in regards to the people of Hong Kong, but we've got to make it clear, China
needs the international community for its economy.
Yes, we benefit from a global economy, but quite frankly, we don't have to negotiate from a point of view of weakness. We can negotiate from a point
of view of strength.
CHATTERLEY: I want to move on, because we could continue to discuss this and debate back and forth for the rest of my show, and I know you were a
key player in extending the Paycheck Protection scheme, the lending money to small businesses in the United States.
It's only been extended to the 8th of August. What more is needed, Senator Cardin, because we're going through a situation now where much of the
country is pausing its reopening measures, and particularly the businesses in hospitality, they're going to need more time and more support.
CARDIN: Absolutely. Julia, I made that request on Tuesday to extend the current PPP program. That's the largest program ever passed on behalf of
small businesses in America, to August the 8th to give us time to negotiate the next round.
We're going to have another opportunity when Congress returns in the middle of July to pass another stimulus package in response to COVID-19.
I can tell you, there's strong bipartisan support to provide additional assistance to our small businesses, recognizing that when we passed the
original bill in March, we had expected our economy to be performing at a much higher level than it is today.
And that small businesses that are in need have seen significant revenue losses are going to need another round of help from the Federal government
and we're committed to negotiating a bipartisan program that will help, particularly those businesses that have seen dramatic revenue losses, the
smaller small businesses and those that are in underserved communities.
[09:35:44]
CHATTERLEY: Senator, I look at some of the case rises and where they're happening around the country and I believe more than 70 percent of them are
happening in red states. Do you think this will make some of those senators and congressmen that are reluctant to see a further extension of the
unemployment benefit increase, perhaps reconsider in light of the pressure that people in their own states are going to face in the coming months?
CARDIN: I could tell you throughout America, we need additional protection for those that lost their jobs. And you're correct, we're seeing in some of
the southern states a large increase in numbers. That's going to reflect a higher number of people who cannot find employment.
So there is a need to extend the unemployment benefits. Remember that the original Bill passed 96 to zero on the Senate floor. We're hopeful we're
going to have that same type of a bipartisan commitment to help the people of this country throughout our nation, and that means extending
unemployment insurance, it means helping our state and local governments, and it means helping those businesses who are suffering through this
pandemic.
CHATTERLEY: It makes sense to me, sir. Time to act. Senator Ben Cardin. Sir, thank you so much for joining us on the show and stay safe.
CARDIN: Thank you.
CHATTERLEY: All right, we are counting down to the market open this morning. That's up next. Stay with us.
(COMMERCIAL BREAK)
[09:30:05]
CHATTERLEY: Breaking news into us at CNN. A long-time friend of Jeffrey Epstein has been arrested according to a person familiar with the matter.
Ghislaine Maxwell who has been under investigation, facilitating Epstein's recruitment of young girls and women is due in court later today. Maxwell
denies any wrongdoing.
We will bring you more on this story the moment we get it.
All right, let's move on. For now, U.S. stocks are up and running on this last trading day of the week on Wall Street. We've got a strong open for
stocks after the release of a much stronger than expected U.S. jobs report.
Four point eight million jobs in fact created in the United States last month, and the unemployment rate ticked lower, too, just above 11 percent
at this moment. The strong jobs growth has not yet translated into an improvement in jobless claims, which remain stuck at well over one million
additional people asking for first-time benefits.
And call it the stock meanwhile that needs no recharging, Tesla shares are moving further into record territory after reporting strong second quarter
deliveries before the bell.
Tesla has now taken the crown as the world's most valuable carmaker, overtaking Toyota. More on Tesla later on in the show, too.
But I do I want to get back to some analysis on the job numbers. Joining us now, Jason Schenker, President of Prestige Economics.
Jason, great to have you with us. Your assessment of what we saw in terms of the job gains for the month of June, and of course the persistence, I
think of the number of people that continue to collect benefits in the United States.
JASON SCHENKER, PRESIDENT, PRESTIGE ECONOMICS: Yes, so I think on the one hand, we've got this positive jobs report, the unemployment rates lower
than people were expecting, more jobs created than people expected, but we also still have misclassification errors that could put the unemployment
rate not at 11.1, but according to the BLS, as high as 12.3 percent, and then of course if you count the people not in the labor force who are
looking for work, then the unemployment rate would have been 15.4 percent.
And if you add that up those two difference, you actually get to maybe the unemployment rate, 16.6 percent. So, it is better than it was. It's still
high, and all of the noise around the data is consistent with jobless claims, the continued claims actually went up for the most recent weeks,
still well above 19 million jobs, and the new jobless claims, the initial claims, those went down a little bit. But, still above 1.4 million new
people filing for unemployment.
By next week, we think 50 million people will have filed for unemployment in just a 16-week period.
CHATTERLEY: Yes, it is astonishing, Jason. I'm trying to find the silver linings there with the jobs being added back and you've just painted an
incredibly bleak picture of the ongoing challenges here and it comes at a time when we're seeing cases of COVID spiking and many states now going,
including your own, that we have to hold back here and perhaps rethink their strategy.
Is this as good as it gets, at least, on a monthly basis for the job gains, do you think?
SCHENKER: Well, this is probably going to be one of the biggest months we will see. I don't expect these kinds of gains to continue going forward,
and in fact, if we look at those jobless claims numbers, it does seem that that data tends to be a little bit sticky.
So the total claims number, the fact that went up, the initial claims remaining well above a million, right, still above 1.4 million, new people
filing for unemployment in the most recent weeks, that indicates that we still have a lot of people still losing their jobs, and even though jobs
are being created, there's a lot of folks still unemployed, still on unemployment.
It's going to be a slow set of improvements and it won't be linear. As you mentioned, in Texas, where we have seen a reversal of some of the reopening
of the state on more COVID hospitalizations, and I think we're going to see the economy recover with fits and starts and not purely linear and it's
going to be a bumpy recovery for the labor market.
CHATTERLEY: Yes, and predicting it is just continually impossible, quite frankly, to get the numbers right here.
There's something else that you focused on very clearly and it's not just about the United States. You've looked at Europe, China, and the United
States as well. It is the difference between manufacturing recovery and services recovery, and the fact that we're seeing a stronger recovery in
manufacturing, which makes sense given the challenges of sectors like hospitality and getting things back to normal.
SCHENKER: That's absolutely right, Julia. If we want to look for the rays of sunshine, global manufacturing, PMIs are where we want to see it. We saw
expansions in the U.S. ISM. We saw it in the Chinese sessions, we saw improvements in the Eurozone manufacturing PMI.
On a global basis, the way we look at manufacturing, some of the best numbers in over a year as a cumulative aggregate. So the global
manufacturing recession may well be over and that's really good for emerging market economies.
But for advanced economies that are heavily service sector based, it's probably going to be a very slow choppy recovery.
[09:35:26]
CHATTERLEY: What does this mean for stimulus, Jason? We've seen trillions of dollars added. It's clearly going to become a more and more intense
conversation over the next couple of weeks here in the United States. Is the answer more? Probably much more?
SCHENKER: Probably, yes, that's probably it, right? Central Banks, the E.C.B. and the Bank of Japan, they're going to continue to expand their
balance sheets.
We're going to continue to see governments everywhere spend money and that's -- you know, the I.M.F. had a report out about this just last month,
and that indicated that global debt levels to GDP are at the highest they've been since World War II and they're likely to exceed those levels,
going to record all-time records of debt to global GDP.
So, that's on a global basis. That's going to be one of the ways that countries try to push things forward.
CHATTERLEY: Jason, great to chat with you. Jason Schenker, President of Prestige Economics.
President Trump, I believe, in the Rose Garden wanted to comment on the job numbers. Let's listen in.
DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES: ... in the month of June, shattering all expectations, I was watching this morning and the
expectations were much lower than that.
The stock market is doing extremely well, which means to me jobs. That's what it means, jobs. This is the largest monthly jobs gain in the history
of our country.
The unemployment rate fell by more than two percentage points, down to just about 11 percent. We're down to the 11 percent number. We started at a
number very much higher than that. As you know, we broke the record last month and we broke it again this month in an even bigger way.
This news comes on top of May's extraordinary jobs report, which was revised upwards, by the way, to 2.7 million jobs. That was 2.5 last month,
and that was a record setter, but it actually got a little bit better.
We've revised it and it was revised upward to 2.7 million jobs, for a combined total of 7.5 million jobs created in the last two months, and
that's a record by many millions of jobs. So it's 7.5 million jobs created in the last two months alone.
Today's announcement proves that our economy is roaring back. It's coming back extremely strong. We have some areas where we're putting out the
flames or the fires and that's working out well. We're working closely with governors and I think it's working out very well. I think you'll see that
shortly.
In June, we added 2.1 million leisure and hospitality jobs; 740,000 retail jobs; 568,000 education and healthcare jobs; 357,000 service jobs. These
are all historic numbers, and 356,000 manufacturing jobs, and manufacturing looks like it's ready to really take off at a level that it's never been
before.
And a lot of that has to do with our trade policy, because we're bringing manufacturing back to our country and these take a long time to get going
and they're now going.
So, these are historic numbers. I'm really happy when I see 356,000 manufacturing jobs, and that's just a small number compared to what it will
be soon, because of our great trade deals.
African-American workers, really happily for me, made historic gains, with 404,000 jobs added last month alone, and that's a record. The second
largest jump will be last month and what we have, if you add the two months together, it's 700,000 jobs for African-American workers added in the last
two months. That's a record by a lot.
Likewise, Hispanic employment is up by 1.5 million jobs, a record by a lot. Hispanic employment up 1.5 million jobs. Three million more women were
employed in the month of June -- a record. Never had a number like that.
Workers with a high school education or less made the biggest strides of all. So, people that have just a high school education or have less than a
high school education, with unemployment, those without a high school diploma dropped a full 3.3 percentage points, that's the largest drop in
recorded history.
Eighty percent of small businesses are now open, 80 percent, and we think we're going to have very good numbers in the coming months because others
are opening, especially as we put the flame out, getting rid of the flame that's happening.
[09:40:18]
TRUMP: New business applications have doubled since late March. That's a number that is not even thinkable to achieve this early into a pandemic.
The latest ISM manufacturing report rose 10 percentage points, with new orders jumping a remarkable 25 percentage points, all a record. Consumer
confidence, which is great, that's a great number to me, because that means confidence is really good. If you don't have good consumer confidence, it's
like life, if you don't have confidence, you're not going to do very well.
Consumer confidence has risen 12 points since April, and six-month job expectations hit the all-time -- an all-time high. So think of that for a
second. With all we go through, with all of the trials and tribulations that we read about every night, much of it totally fake news,
unfortunately, and if the consumer didn't get it, you wouldn't have good consumer confidence.
We have consumer confidence that has risen 12 points since April, an all- time high. Think of that.
Retail sales surged an astonishing 18 percent. So retail sales went up an astonishing 18 percent in May. That's the largest increase in the history
of our country. That's a tremendous number, 18 percent. The number of -- and what it means to me is jobs. The number of unemployed Americans re-
entering the labor force rose by 43 percent and fewer workers are dropping out of the labor force than before and the crisis is being handled.
If you look, we were talking this morning, something to think about, China was way early and they're getting under control just now. And Europe was
way early and they're getting under control.
We followed them with this terrible China virus and we are, likewise, getting under control. Some areas that were very hard hit are now doing
very well. Some were doing well and we thought they may be gone, and they flare up and we're putting out the fires.
But other places, were long before us and they are now -- it's got a life. We're putting out that life, because that's a bad life that we're talking
about.
But all of this suggests that workers are confident about finding a new job. The stock market is soaring with the best gains in over 20 years. In
the second quarter, the Dow Jones increased 18 percent. This is in a quarter. These are not numbers that people have heard about. It's the best
in 33 years.
The S&P 500 increased by almost 20 percent, the best since 1998 for the quarter. And NASDAQ increased over 30 percent, the best since 1999 and we
had a 50-month -- if you look over a long period of time, a phenomenal number.
But if you look since the election, we've gone up. The Dow went up close to 45 percent, the S&P 500 went up 47 percent, and NASDAQ composite went up
getting close to a hundred percent. So these are numbers that are not numbers that other Presidents would have, and they won't have.
The only thing that can kill it is a bad President or a President that wants to raise taxes. You want to raise taxes, this whole thing, your
401(k)s will drop down to nothing and your stock market will drop down to nothing.
This is not just luck what is happening. This is a lot of talent. All of this incredible news is the result of historic actions my administration
has taken, working with our partners in Congress to rescue the U.S. economy from a horrible event that was formed, took place in China and came here.
They could have stopped it. They could have stopped it.
Nobody likes to write that, but they could have stopped it. They know it and I know it.
Through the Paycheck Protection Program, we've extended over $520 billion in loans to nearly five million small businesses, saving and supporting the
jobs of tens of millions of American workers.
This has been a tremendous success. Levels that nobody has ever seen before. But we saved all of those jobs and all of those small businesses,
and some will be large businesses soon, perhaps.
[09:45:25]
TRUMP: We also rushed urgently needed relief to millions and millions of hard-working taxpayers. They got that directly, and we're working on a
Phase 4. We're working with Congress. That work has started.
Steve Mnuchin can give you a little briefing. We're talking about payroll tax cuts. We are talking about more money being infused, and it comes back
to us. It's coming back. It is all coming back. It is coming back faster, bigger and better than we ever thought possible. These are the numbers.
These are not numbers made up by me. These are numbers.
We've implemented an aggressive strategy to vanquish and kill the virus and protect Americans at the highest risk, while allowing those at lower risk
to return safely to work. That's what's happening.
Our health experts continue to address the temporary hot spots in certain cities and counties and we're working very hard on that. The relationship
with the governors is very good.
We made a call -- Mike Pence made a call just yesterday and said what do you need? Not one governor needed anything. They don't need anything. They
have all the medical equipment they can have. Thank you, U.S. government.
They have all of the ventilators they have. You know, we're giving many ventilators and selling in some cases and giving where needed. But we're
the ventilator king. We're now producing thousands of ventilators, thousands of ventilators a week and we're helping other countries and other
countries are desperately in need of ventilators, because this is now at 189 countries.
That changes all the time, that number. Our last count is 189 countries, and many of them don't have money and almost all of them don't have the
capacity to build a ventilator, which is hard to build, very complex, very expensive, very big in many cases. We've done an incredible job.
So we have assembly lines building ventilators and we're building thousands a week. All of these people are working with governors and local officials
to restore best practices and that's what we've done.
That includes face coverings, social distancing, testing, and personal hygiene. Wash your hands.
State officials will decide how rapidly to open their economies. That's largely up to them. If we see something that's egregious, we've gotten
involved with a couple of them where we thought it was unfair.
We would like to see churches opened quickly and some of them just don't want to do that. In New York, we've got a great ruling from a judge --
thank you, Judge -- that they can open.
If these best practices are implemented, then the hot spots can be calmed quickly and we understand this horrible disease right now. We didn't
understand the disease at all. We did the right thing. We closed it up. We would have lost millions of lives. We've done a historic thing. We would
have lost millions of lives.
And now, we're opening it up and it's opening up far faster than anybody thought even possible and more successfully. And as I said, you're going to
have a fantastic third quarter.
It will be a third quarter the likes of which nobody has ever seen before, in my opinion, and the good thing is the numbers will be coming out just
prior to the election, so people will be able to see those numbers.
The fourth quarter, likewise, will be extremely good. And maybe most importantly from the standpoint of our country itself, next year will be a
historic year. Next year is going to be an incredible year for jobs, for companies, for growth. Things are happening like nobody would have thought
possible.
I do want to comment, Boeing, as you know, is moving along on their process. It's been a very hard process, a very complicated process, but
they have made tremendous gains and they're going for approvals on the aircraft, on the 737 MAX.
They're also starting to do some real business. So I just want to congratulate Boeing. They've been through so much. I think it was probably
the greatest company in the world. I used to say it was the greatest company in the world and then it ran through a very tough period of time.
But I just want to say that Boeing has made tremendous progress in a short period of time.
And other companies, I don't even have to talk about because they are all setting records, every one. Virtually, every one of our great companies is
setting great records.
So I want to thank everybody for being here today. These are historic numbers in a time that a lot of people would have wilted. They would have
wilted. But we didn't wilt and our country didn't wilt and I'm very honored to be your President. Thank you very much. Thank you.
[09:50:10]
CHATTERLEY: You were listening to President Trump there talking about today's jobs numbers and the historic gains, as he mentioned, that we saw,
4.8 million jobs added in June.
You have to remember, just to give you some context on what we saw in terms of those numbers, the collection period there is up to around the 13th of
June. So all the benefits of reopening captured in these numbers, and then of course the challenges have begun and we've seen cases rising.
We're now up to 50,000 COVID cases, fresh cases in the United States today. So this is a great number for June. The question is, what happens next?
The President there was saying that Q3 will be a record in terms of recovery. He pointed to the gains in the stock market, too. But some others
might point out that the challenges, once again, are just beginning and that and we will have implications for jobs.
We're going to take a break. Stay with us. We're back after this.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to FIRST MOVE. Shares of Tesla on the rise yet again after the company reported it delivered more than 90,000 vehicles in
the second quarter, beating Wall Street's expectations. It comes a day after Tesla came the world's most valuable automaker.
Clare Sebastian joins us now. It's not a car maker, it is a tech company that makes cars. Clare Sebastian, tell us more. Because it was a quarter
that was challenged by production issues of course, too, and yet they did it.
CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT: Yes, it makes these numbers all the more impressive, the fact that their Freemont factory in
California, which is really the beating heart of production for this company was shut down for pretty much all of April and some of May as well.
So, their production was hampered.
But even with that, they produced 82,000 cars. They delivered, which is the closest approximation of sales, that 90,000. That was well ahead of
estimates, which were sort of in the 70,000 and 80,000.
[09:55:10]
SEBASTIAN: Now, this is a big deal for the stock. One because, it puts them on a path again to profitability, according to some, or at least break
even.
Really impressive given the shutdown, given the macro context.
And a little comparison, Julia, that number -- delivery number was down about five percent year-on-year, but we got delivery numbers or sales
numbers from other car makers for the same period. GM sales down 34 percent with that same period. Fiat-Chrysler down 39 percent.
So Tesla is starting to sort of prove the very bullish valuation that it has on Wall Street. That stock up some 200 percent since its March lows,
more than 400 percent over the last 12 months.
So, it really has been on a huge tear. Part of that, also, we have to mention because of China. The Gigafactory in China is up and running. It
was less hampered by shutdowns than the one in California and a lot of analysts think that that was a bigger or a growing contributor to the these
delivery numbers in the quarter.
CHATTERLEY: Yes, with context. Clare Sebastian, thank you so much for that.
All right, that's it for FIRST MOVE. Stay safe and we'll see you tomorrow.
(COMMERCIAL BREAK)
[10:00:00]
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