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First Move with Julia Chatterley
Another Warning As The U.S. Breaks Another Coronavirus Record; The U.K. Lifts Travel Restrictions And Prepares To Ease Its Lockdown; Home Cinema - How Coronavirus Could Mean An End To The Summer Blockbuster Weekend. Aired 9-10a ET
Aired July 03, 2020 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:13]
ZAIN ASHER, CNN ANCHOR: Coming to you live from New York, I'm Zain Asher and this is FIRST MOVE and here is what you need to know.
Wrong direction, another warning as the U.S. breaks another coronavirus record.
Opening up. The U.K. lifts travel restrictions and prepares to ease its lockdown.
And home cinema, how coronavirus could mean an end to the summer blockbuster weekend.
It is Friday, my friends, and let's make a move.
All right. Welcome to FIRST MOVE, everyone. It is so good to have you with us. It is the start of a long Fourth of July weekend here in the United
States. Wall Street is closed for business, but other global markets are certainly up and running.
Europe is firmly lower. Asia had a strong session with Chinese stocks rallying just about two percent or so, and a new survey shows China's
services sector strengthening at its fastest pace in more than a decade.
The Shanghai Composite rose almost six percent this week, is up more than three percent in 2020 so far. U.S. stocks had a strong week, too, with all
the major averages rising by more than three percent. The NASDAQ finished at record highs.
The stronger than expected June Jobs Report we saw yesterday gave stocks a big boost earlier in Thursday's session. The rally faded near the close as
investors received news that COVID-19 cases in Florida had hit new records.
Investors are keenly aware the ongoing health crisis in this country has the potential to weaken the U.S. economic rebound. Let's get more on this
in all of our drivers.
The surge in cases of COVID-19 in the U.S. certainly shows no signs of letting up, more than 52,000 new infections were reported on Thursday that
is the highest since the pandemic started for a second day in a row.
Let's bring in senior medical correspondent, Elizabeth Cohen who joins us live now. Elizabeth, some people would say that this resurgence was
certainly predictable. What can the rest of the country learn from what is happening in places like Florida, California, Arizona and Texas?
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: What they can learn is that it may feel like the virus has gone away, but it hasn't.
The United States, it's a very mobile country. People are going all over the place, just when it feels like things are okay, you could get a peak,
you could get a spike, and so you need to be prepared for that.
Let's take a look, Zain, at what's happening in these hot spot locations. If we take a look at the top three states with new cases yesterday,
Thursday, Florida saw 10,109 new cases. Keep in mind, this is one day. California, 7,869, and Texas 6,769.
Let's give a few more details here. In Florida, that number that I just read, that is almost as high as New York State was at its height in April
in one day. So Florida is now rivaling what New York State was.
If we take a look in California, L.A. County alone, just that one county in Southern California, they've seen more than 2,000 new cases per day for the
fifth straight day.
In Texas, more than 90 counties are showing all-time records.
Now, Zain, various states are doing various things to try to counteract this. For example, in Florida, in Miami-Dade County, in Southern Florida,
they are instituting an overnight curfew from 10:00 to 6:00 a.m. -- Zain.
ASHER: Okay, so when you think about the curfew and you think about testing, social distancing, staying six feet apart, wearing masks, what
should be the main priority for state governors right now in order to prevent further resurgence?
COHEN: You know, I asked an epidemiologist that yesterday and he said that contact tracing, which is where you find the cases and you ask them who
they have been in contact with, that may become less and less useful as the numbers get higher. It just becomes simply too much to handle for contact
tracers.
However, he said what they can focus on is try to think about where is this growth coming from? For example, in South Florida, you know, that's a big
party area. And so, if you figure out that the bars where young people are going and congregating late at night are partly responsible for the spread,
then you shut down the bars, which is effectively what they're doing with this curfew.
That's the kind of thing, they need to figure out where is this coming from. They need to get the message out loud and clear, do not congregate.
You could be in danger, or even if you're not in danger, you could get infected and you could really -- effectively, you could kill someone else.
Who wants that? Who wants to do that? Nobody wants to do that.
And also, if you do have to go out, wear masks. Those are the basic messages that need to be told loud and clear.
ASHER: So it's one thing, Elizabeth, to tell people do not congregate, but obviously it is Fourth of July weekend here in the United States, there's
the potential for large family gatherings and that sort of thing. I mean, how do you make sure that people really adhere to the guidelines,
especially if they're congregating within their houses, to make sure there isn't further spread?
[09:05:22]
COHEN: You know, Zain, that is really a tough one. The police -- nobody wants the police going, nor could they go house to house saying you've got
30 people here for a Fourth of July barbecue, break it up. That's not going to happen. I mean, unfortunately, people need to take personal
responsibility with this and I think the only way that's going to happen is if they realize that they are at risk, or even if they're not at risk,
let's say they're young and chances are they would be fine, not a hundred percent, but chances are they would be fine.
It needs to be explained very clearly, you may be fine, but you may be infected, not know it and you may kill your grandmother.
And I know that's very stark language, you could kill your grandmother, but I think we've gotten to the point where people need to be told that,
because to your point, you can't control it, and you can't go house to house, barbecue to barbecue, Fourth of July picnic to Fourth of July
picnic.
You have to allow people -- you have to enable people, you have to encourage people to basically police themselves.
ASHER: That is the key thing here. Elizabeth Cohen live for us there. Thank you so much.
Okay, so as cases certainly mount in the U.S., the U.K. is taking a huge stride toward a full reopening of their economy. Pubs, restaurants and
hotels opened on Saturday in the U.K. A short while ago, the government actually cleared the way for summer holidays by lifting the quarantine on
over 50 countries. Let's bring in Anna Stewart joining us live now.
So, Anna, what does this specifically mean for European travelers, for travelers from the likes of Greece, Germany, Italy, who want to holiday in
the U.K.? This they now don't have to quarantine for 14 days?
ANNA STEWART, CNN REPORTER: Well, from some countries, they won't and this will only actually apply to England, we believe at the moment, and it will
kick in around the end of next week, on Friday.
Now, we're still waiting for the list of countries to be published. We've been waiting for this list for all week, actually, so quite a long time. We
do know that France, Germany, Italy and Spain will be exempt from quarantine into England from next Friday. We're still waiting on the rest.
And we believe that this list will be a sort of traffic light system, on the green and amber list will be countries that are exempt from quarantine.
The green countries are expected to be those with very low risk of the virus, for instance, New Zealand, but you may face restrictions if you go
from the U.K. into those countries.
The amber list will be reciprocal arrangements with no quarantine on either end, and Zain, on the red list, we will see countries that are considered
too high risk to lift the quarantine and the U.S. is expected to be on that list.
ASHER: So we've got more businesses opening up, including pubs, what Boris Johnson has dubbed Super Saturday, pubs are going to be open in the U.K.
from tomorrow, what sort of restrictions, what sort of policing is there going to be in and around pubs just to make sure there's not too much
crowding?
STEWART: Well, I think we will see an increased police presence on the high streets. There is a concern, of course, that everyone will want to go to
the pub. It might be quite sunny tomorrow afternoon as well and I'll certainly be reporting from a pub just to see how it all goes.
There will be new measures in place within the pubs. Social distancing certainly remains, whether it's the hairdressers that are reopening, the
pubs, the restaurants, and the Prime Minister is expected this afternoon to say that people need to act safely and sensibly.
That social distance rule, which is being reduced to one meter plus, but it's still very much in place. You can go to a pub from tomorrow in
England, but you cannot hug. Pubs, no hugs.
So, it will be interesting to see how it works. Also, what consumer appetite will be? People may be happy to go stand outside a pub, have a
drink in the sunshine in the outside air, will they want to go inside the pub? Will they want to go to a cinema? And how many businesses will
actually feel that they can reopen given there will still be quite depressed consumer appetite -- Zain.
ASHER: Anna Stewart, live for us there. We look forward to your reporting from the pubs tomorrow. Thank you.
FedEx has asked the Washington redskins to change their name over its racist connotations. The company is a major sponsor of the NFL team and the
move comes after growing pressure from its investors. Alison Kosik joins us live now.
So, Alison, you know, we've seen a lot of people protest and try to put pressure on that team in the past to get them to change their name,
appealing to Dan Snyder who owns the Washington Redskins. He hasn't done it. He hasn't budged at all. What is going to be different this time?
Do you think perhaps it's the mood in the country, because there's been a sea change there, or just because of Corporate America and the power of the
purse putting pressure here?
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: I think you are dead right about something about the mood in this country and I think that is what these
investors are seizing on, because you're right, this has been an effort by investors, gosh, for over a decade to try to get the Washington Redskins to
change their name.
So late last night, FedEx did send a communication publicly saying that it wants the NFL to go ahead and change the name of the Washington Redskins in
response to this nearly 100 investors and shareholders who oppose the use of the name because of the racist connotations.
[09:10:27]
KOSIK: Keep in mind, these groups of investors, they represent collectively $620 billion in assets, which include three companies, FedEx, Nike and
Pepsi.
So these investors, they wrote three separate letters to those companies, to the CEOs, asking them to sever their relationship with the Washington
Redskins unless the team change its name.
What are the relationships? FedEx, as you said, is a huge sponsor of the Washington Redskins. It owns the naming rights to the stadium that the
Washington Redskins call home in Landover, Maryland. Pepsi is the snack and beverage partner of the Washington Redskins and Nike provides equipment and
uniforms to the team.
So as I said, so far, only heard publicly from FedEx asking the NFL to change the team name. So far, no comment from Nike or Pepsi.
In those letters, interesting to see how they term why they are continuing this effort to change the name. They say virtually every major national
American Indian organization has denounced use of Indian and native related images, names and symbols disparaging or offending American-Indian people
with over 2,000 academic institutions eliminating Indian sports references.
Specifically, you look at the letter to Nike. These investors do acknowledge that Nike has taken great steps for transparency and to, quote,
"keep alive the public conversation and systemic racism and police brutality" by launching a campaign featuring Colin Kaepernick, who we all
know took a knee during the National Anthem to protest police brutality.
However, this note goes on to say that Nike continues to supply equipment and uniforms to the Washington Redskins, despite all of the other actions
that Nike has taken -- Zain.
ASHER: And just sort of putting the Washington Redskins and Nike and FedEx aside, we're also seeing major changes in Corporate America elsewhere,
because after two engineers complained, Twitter and JPMorgan are now removing words like master, slave, and blacklist from their coding
language. Just walk us through what happened there.
KOSIK: Yes, Twitter, of course, just one of many in Corporate America trying to confront the issue of race. So it turns out that in Twitter's
code, meaning the stuff that you and I may not see outwardly, so we're seeing -- oftentimes, the terms master, slave and blacklist are used.
But after engineers at Twitter lobbied for the use of more inclusive programming language, that language will now change. We've also learned
that America's biggest bank, JPMorgan, is also going to make changes. That is according to results.
So just so you know, in code, master and slave refer to one process in the code that controls another, while blacklist in code refers to items
blocked, like forbidden IP addresses. Those words will now be taken out, and instead master and slave will become leader and follower, blacklist
will become deny list -- Zain.
ASHER: I must admit, I was surprised it has taken this long. Alison Kosik, live for us there. Thank you so much.
KOSIK: I agree.
ASHER: These are the stories making headlines around the world. A prominent democracy activist has fled Hong Kong after China imposed a tough new
security law.
Nathan Law, one of the leaders of the 2014 Umbrella Movement says he left the city so he could continue to protest about the treatment of Hong
Kongers from overseas.
Meantime, CNN's Ivan Watson spoke to Hong Kong's Justice Secretary about the new security law. I want you to listen to this.
(BEGIN VIDEO CLIP)
TERESA CHENG, HONG KONG SECRETARY FOR JUSTICE: Once these laws are enacted as they are now, people will then be able to be more vigilant about
ensuring that no such activities that's going to affect the sovereignty is going to arise and therefore, the national security is preserved,
prosperity and stability comes as a matter of course.
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Do you think the majority of the population supports this law here in Hong Kong?
CHENG: I think they do. I really think they do. Because it is -- this --
WATSON: You know, one of the problems is that popular opinion polls show your Chief Executive is very unpopular and that China's policies here in
Hong Kong are deeply unpopular. There was no effort to pass a referendum to get any mandate of popular support for this. This was imposed on the people
here.
CHENG: National security is the sovereign right, and in fact for every state that is one of the most important thing. For every national, and in
particular in Hong Kong, as I said, we're a very international city, we look at people here as Hong Kong residents who come from all over the
world.
They still have an allegiance to Hong Kong because, you know, as a matter of common law, there is a concept of temporary allegiance as well.
But they all love Hong Kong as a home. They all want Hong Kong to be stable and prosperous. They all want to move forward from the difficult times we
had last year.
The National Security Law will give us just that environment for us to calm down, stop all of that.
And one of the things that has to be observed, and it's worth mentioning, that there is no retrospective effect. So in other words, it's a clean
break. Everybody now knowing what should not take place.
[09:15:42]
WATSON: Will the commemoration of the June 4 Tiananmen Square massacre and the June 4 museum here in Hong Kong, will that be allowed in the future
under this National Security Law?
CHENG; Anything -- first of all, I think it's important to bear in mind that in the National Security Law, as well as in our basic law, we
reiterate the importance of preserving the rights and freedoms of the people in Hong Kong, and so that is still going to be very much a core of
our rule of law and of our values here in Hong Kong, so that's not going to change.
So when people ask will that happen or will that be allowed in the future? I think it all has to be put in context.
(END VIDEO CLIP)
ASHER: Ghislaine Maxwell accused of being an accomplice of the convicted pedophile, Jeffrey Epstein made her first court appearance via
teleconference. The judge ordered her to be transferred from New Hampshire where she was arrested to New York. Maxwell is charged with six offenses,
including the sex trafficking of minors.
India's Prime Minister has paid his first visit to the Ladakh since deadly clashes last month the disputed border with China. Referring to China's
ambitions in the region, Narendra Modi said the need for expansion has always posed a danger to world peace. Twenty Indian soldiers were killed in
the fighting.
French Prime Minister Edouard Philippe handed in his resignation today. It is all part of President Emmanuel Macron's push to reshuffle his Cabinet
ahead of the 2022 presidential elections. The new PM is 55 years old. He is a government veteran, Jean Castex.
All right, coming up on FIRST MOVE here, delivering in the midst of a pandemic, the President of Latin America's fast growing delivery service
Rappi will be on the show.
Plus -- some Tesla cars have insane mode for top speed and stockholders are enjoying the ride of their lives. Why traders are saying this car company
can simply do no wrong.
(COMMERCIAL BREAK)
[09:20:47]
ASHER: As Tesla stock price reaches new highs, CEO, Elon Musk is feeling jubilant enough to have some controversial fun at the expense of short
sellers, and notably the U.S. market's regulator, the Securities and Exchange Commission.
Among several tweets on Thursday, there was this, "SEC, three letter acronym, middle word is Elon's." And all of this comes after Tesla became
the most valuable carmaker with its shares climbing above $1,200.00.
Analysts thinks that that is the best case scenario, Tesla's stock could go as high as $2,000.00, certainly very bullish. Dan Ives is the Managing
Director of Equity Research at Wedbush Securities. He joins us live now via Skype. So, Dan, before we get to the tweets, why are you so bullish? Why do
you think their stock -- I believe it's at $1,200.00 now, why do you think it could get up to $2,000.00?
DAN IVES, MANAGING DIRECTOR OF EQUITY RESEARCH, WEDBUSH SECURITIES: Look, it really comes down to what you've seen in the EV markets, especially in
China. You know, China, I think is worth $300.00 to $400.00 incrementally per share, and we're still in the first second inning of the EV market
taking over and I think what you're seeing here with Tesla, you know, production, we could be at a million deliveries in the next two years.
You put that together, I think you're looking at the stock in the next year that could approach $2,000.00, and I think what you saw this quarter on the
deliveries was just what I would view as a homerun quarter in light of a very dark backdrop.
ASHER: Yes, Elon Musk is certainly taking victory laps on Twitter about that. In addition to the tweets I just read a second ago, he also referred
to the SEC as a short seller enrichment commission as well. Listen, we all know that Elon Musk is a risk taker and we all know that he is provocative,
but this is not the first time his tweets have gotten him into trouble.
We all remember back in 2018, he talked about having enough funding to take Tesla private, he got into trouble there. How much do you think these
particular tweets -- these last tweets he made yesterday, could get him into trouble with the SEC?
IVES: Look, I think the difference with Musk, and we've seen it across Twitter, is that as we've gone into the last year, that obviously caused a
number of issues.
I think the difference right now from an investor perspective is that he is actually not just talking the talk or walking the walk in terms of
deliveries, profitability, and you're starting to see a company right now, and you may obviously see it from a market cap perspective, but they're
just starting to capitalize on this opportunity.
And I think right now, there's always going to be background noise with Musk, but from a street perspective, from the stock right now, it continues
to really be a situation where it's Tesla's world and everyone else is paying rent in the EV perspective.
ASHER: Yes, in terms of vehicle production, deliveries, they're certainly smashing expectations. In fact, it's interesting because General Motors,
Toyota, Fiat-Chrysler and Ford all saw their second quarter sales plunge by more than 30 percent, obviously because you have the coronavirus and that's
forcing people to stay home.
Tesla did much better than all of those competitors. Why?
IVES: It comes down to electric vehicles, because you're seeing it not just in China, but even in the U.S. over the last month and Europe, in terms of
the demand, they continue to really be the only game in town in terms of what they've done from an EV perspective. Remember, they don't advertise.
The DNA of the Model 3s continues to resonate with consumers and that's why while you're talking about three percent to four percent market share that
they have overall the EV, and over the next five to six years, you could be seeing 10 percent.
I think just another data point, look at the Cyber Truck, which won't be coming out until 2022, preorders we believe are approaching 700,000. So
right now, Tesla is in a massive position of strength, especially in light of a COVID-19 pandemic, economic abyss, in terms of what they're doing is
just that much more impressive than really any other competitor.
ASHER: So you believe that they're going to reach their pre-pandemic four- year 2020 target of 500,000 deliveries?
IVES: Yes, I think right now, based on everything we see, I think 450,000 to 500,000 is now back in the cards. I think you're seeing the stock
reflect that.
The other thing to remember, if we go back to last year, they were doing this, but it was red ink. They weren't profitable. Now because of the cost
structure, they're profitable and that's really the one-two punch. That key word profitability is the key, I think, to take this to new levels.
[09:25:23]
ASHER: And just take us on the wild ride that Tesla's share price has been on over the past six months. The share price has literally tripled in six
months. It's $1,200.00 now; six months ago, I believe it was around $450.00 or so.
Just walk us through -- give us a bird's eye view of that tear we're seeing in the share price.
IVES: Yes, a bird's eye view, I'll give you about the last year, you had production issues, obviously regulatory issues between Musk and different
things he's done on Twitter, and really, his profitability. That was not consistent.
So what you've started to see is a roller coaster, and especially in COVID pandemic with the Freemont facility that was shut down. You had the
standoff for his Alameda County in terms of threatening to move out of there, and then, I think, there was one where you continued to see a
company from a production/delivery perspective really succeed.
But the key here, I mean, the headline is China. China is the star of the show for Tesla and that's really one of the lynchpins to the growth going
forward. And this continues to be one where the haters will hate Tesla, but ultimately, you can't deny the numbers, and that's what we saw with just
historic short covering that's going on.
ASHER: Yes, haters are going to hate. All right, Dan Ives of Wedbush Securities, thank you so much. Appreciate you coming on. Enjoy your Fourth
of July weekend, whatever you're up to.
IVES: You, too.
ASHER: All right, coming up, a monumental test of social distancing at Mount Rushmore. President trump heads there today for Fourth of July
celebrations. Fireworks galore, but masks optional. That's next.
(COMMERCIAL BREAK)
[09:30:05]
ASHER: Welcome back to FIRST MOVE. A reminder once again that the U.S. markets are closed for early Fourth of July celebrations today. Little in
the way of fireworks, over in Europe where stocks are actually lower across the board.
New numbers show the service sector activity improving in Europe over the past month. Chinese stocks got a boost from strong service sector growth
there as well. The Shanghai Composite rose over two percent and Asian stocks also getting a boost from a strong U.S. Jobs Report released
yesterday which showed some 4.8 million new jobs created in June.
President Trump hailed the report calling it a sign that the U.S. economy is quote, "roaring back."
President Trump heads to South Dakota today to attend July 4th celebrations at Mount Rushmore. Thousands are expected to gather for the first fireworks
display there in over a decade. Now, with the crowd, of course, comes concerns over health as well.
Joe Johns is live at the Mount Rushmore National Memorial now. So, Joe, it is not just this move by Trump, it is not just controversial because of
health concerns when it comes to social distancing, it's also controversial for other reasons.
When you think about the land there and the fact that Native Americans were not compensated for that land, when you think about the person who actually
sculpted Mount Rushmore, and the fact that he had ties to the KKK and when you think about some of the people, the former Presidents who are sculpted
there and the fact that, you know, they have a history have a history with slavery, this is controversial for other reasons given the climate we're
seeing in the United States right now.
JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT: That's absolutely right. And as you know, the climate in the United States has certainly been tense
when it comes to racial issues and the President is wading right into that here at Mount Rushmore because the Lakota Sioux, the Native American tribe,
have essentially been opposed to this monument ever since it was conceived.
And they plan demonstrate, in fact, there will be protests here over not just the President's arrival, but also the fact that, as you said, this
land has been taken away from the Native Americans. They consider this land sacred and they say it ought to be given back to them.
Also, there's that other issue that so many of us have discussed on the air over the last several weeks and that is the President's tendency to try to
preserve these relics of heritage and history in the United States that many people here see as symbols of oppression.
The President has fought to keep statues up that people wanted to tear down, he said that he will preserve the names of Confederate Generals that
are on Army bases around the United States. So that debate continues and the President flies in here and walks smack dab into the Mount Rushmore
issue -- Zain.
ASHER: And Joe, let's just talk about the health concerns. In "The New York Times," Paul Krugman put it best. He said, by now, according to Trump
officials, we were supposed to be seeing a fading pandemic and a roaring recovery, instead we have a fading recovery and a roaring pandemic.
Given all of that, when you think about the fact that there is not going to be any social distancing there, who are we kidding? And masks are optional,
what is the President thinking?
JOHNS: Well, the President is essentially going with his gut that he is going to put on, with the help of the Republican South Dakota Governor, a
patriotic event that kicks off July Fourth, a celebration of Independence Day.
And the Governor has made a point of saying, look, this is a free country, if you want to social distance, if you want to wear a mask, we'll make the
mask available to you, but we're not going to require it. You decide what you want to do in the United States.
And South Dakota can do that a little bit easier than some states, while it is on the increase in terms of the numbers of coronavirus cases, it is
something like 7,000 people who have been tested positive, 97 people who have died. Nothing like what we've seen in some of the other states.
The question is, where is coronavirus going from here, and as one of the officials in the state said, we're not going to know that for another two
or three weeks -- Zain.
ASHER: All right, Joe Johns, live for us. Thank you so much.
Millions of young Americans will be spending the July Fourth holiday at home with their parents this year due to the COVID-19 pandemic. Free meals
and free rent are great for now, but this new cultural trend could actually have long-term effects on the economy. Here's our Clare Sebastian with
more.
(BEGIN VIDEOTAPE)
CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT (voice over): When Daniel Tetley left la in mid-March to celebrate his 25th birthday in New York, he
had no idea he wouldn't be going back.
(BEGIN VIDEO CLIP)
DANIEL TETLEY, FORMER RESTAURANT SERVER: The moment that I landed, I had my phone blew up. I have like a thousand texts. My restaurant has shut down.
New York City had shut down. My parents came and picked me up. And we came back to Connecticut and I never went back.
(END VIDEO CLIP)
SEBASTIAN (voice over): He was furloughed from the restaurant he worked at and his lease was monthly, so he simply gave notice and a friend shipped
his belongings.
(BEGIN VIDEO CLIP)
TETLEY: My two other siblings, all three of us are home again, and I don't think anyone ever thought that we would ever be in this situation again in
our childhood home.
(END VIDEO CLIP)
SEBASTIAN (voice over): Least of all, his mom Kathleen.
(BEGIN VIDEO CLIP)
KATHLEEN TETLEY, HAS THREE ADULT KIDS LIVING AT HOME: Now, there's meals every night for mom to cook. The laundry is always filled with somebody
else using my washer. The dishwasher runs night and day. The food bills are crazy.
(END VIDEO CLIP)
SEBASTIAN: Daniel and his siblings are among 2.7 million Americans mostly aged 25 and under who moved in with parents or grandparents in March and
April this year, taking the total to a record 32 million according to real estate website, Zillow.
(BEGIN VIDEO CLIP)
SKYLAR OLSEN, SENIOR PRINCIPAL ECONOMIST, ZILLOW: When you think about the size of the people that are moving back home, you're talking at around $726
million at risk that traditionally flows into that rental market.
Now, rent non-payment or more people doubling up like this moving back home is causing the pressure to come off of rent growth.
(END VIDEO CLIP)
SEBASTIAN (on camera): Young people have been some of the hardest hit by job losses during the pandemic. Now, if the unemployment picture continues
to improve, we may see some of them starting to come back into the rental market. But it's not just those who lost jobs who decided to head back home
to mom and dad.
(BEGIN VIDEO CLIP)
TARIKA GADH, MANAGEMENT CONSULTANT: The rumors started spreading in New York that subways are going to close down, the city is going to shut down,
and offices are shutting down. So, at that point, I booked a flight home.
(END VIDEO CLIP)
SEBASTIAN (voice over): Twenty four-year-old Tarika Gadh works as a management consultant in New York, a job she can keep doing from her
parent's house in L.A.
(BEGIN VIDEO CLIP)
GADH: I live alone in New York in a one-bedroom apartment just knowing that if I had to be quarantined alone, I knew it wouldn't be easy.
(END VIDEO CLIP)
SEBASTIAN (voice over): Her New York lease was up in May and she didn't extend. Her plan now is to stay with her parents until her office reopens.
(BEGIN VIDEO CLIP)
GADH: I definitely fear in a way that it is stunting my growth as a -- as a recent college graduate. I think even my mom is worried about me. She keeps
telling people that this is a wasted year for me.
(END VIDEO CLIP)
SEBASTIAN (voice over): An expert say, the longer young people stay at home, the deeper the impact on real estate.
(BEGIN VIDEO CLIP)
OLSEN: It is an incredible advantage to avoid rent, especially when rent is taking up a larger and larger share of income and student loan debt is at
record highs.
Now, if they stay in their Gen X parents' homes, then that could have repercussions not just for the rental market, but for the for sale market
as well in the future.
(END VIDEO CLIP)
SEBASTIAN (voice over): Weeks have already turned to months for millions of Americans living in these new arrangements. The question now is whether the
months turn to years.
Clare Sebastian, CNN, New York.
(END VIDEOTAPE)
ASHER: All right, after the break, the co-founder of Rappi tells me what's being done to protect its delivery drivers as COVID cases spike in Brazil.
(COMMERCIAL BREAK)
[09:41:22]
ASHER: To Brazil and the coronavirus pandemic is far from being the country's only crisis. Shasta Darlington has taken a closer look at the
other problems it faces as well.
(BEGIN VIDEOTAPE)
SHASTA DARLINGTON, CNN INTERNATIONAL CORRESPONDENT (voice over): Dining in front of Rio's famed shores, patrons attempt a return to normalcy. As
Brazil's second largest city reopens for business.
(BEGIN VIDEO CLIP)
ALINE DA SILVA, BAR MANAGER (through translator): We just opened after almost four months of being closed. Now, we're coming back.
(END VIDEO CLIP)
DARLINGTON (voice-over): On Thursday, Rio de Janeiro entered its latest stage of reopening, allowing restaurants, bars and cafes to accept a
limited number of customers with social distancing rules in place.
Residents can also return to the gym. Rio is joining other cities around Brazil in the phased reopening, as the world's second worst hit country
sees coronavirus cases nearing 1.5 million, with a steady increase in new daily infections.
(BEGIN VIDEO CLIP)
ROBERTO MEDRONHO, RESEARCH DIRECTOR, CLEMENTINO FRAGA FILHO UNIVERSITY HOSPITAL (through translator): We have the problem of people who are going
to work because the economy is being reopened. If they become infected, they will take this infection to their relatives, many of them elderly,
many of them with complex health issues.
(END VIDEO CLIP)
DARLINGTON (voice-over): Despite warnings from experts, many regional leaders are desperate as finances plummet and unemployment soars.
Now millions of Brazil's informal workers face a stark choice -- go to work and risk infection or go hungry.
(BEGIN VIDEO CLIP)
MATIAS SANTOS, FOOD DELIVERY WORKER (through translator): We are totally exposed to the coronavirus every day without any protection. And because
companies do not deliver masks, we have to make our own mask or buy them and buy hand sanitizer.
(END VIDEO CLIP)
DARLINGTON (voice-over): As coronavirus wreaks havoc on Brazil's already fragile economy, it aggravates some of the country's chronic problems.
In the Amazon rainforest, deforestation is surging. Environmental activists warn illegal loggers and ranchers are capitalizing on less oversight.
Burning more land as the pandemic stretches official resources.
That may be responsible for jump in fires, the most in June since 2007. Now, fears are rising of a coming dry season. With more smoke posing
respiratory dangers.
(BEGIN VIDEO CLIP)
CARLOS SOZA JR., MEMBER, INSTITUTE OF PEOPLE AND THE ENVIRONMENT OF THE AMAZON (through translator): Flash and burn clearing of land already
represents a serious health problem. If we have land clearing and COVID-19 together, this could mean catastrophic consequences for the region.
(END VIDEO CLIP)
DARLINGTON (voice-over): A burning Amazon also adds to threats facing indigenous populations, where COVID-19 is sweeping through communities.
Brazil's government has sent medical workers and military to help protect some isolated tribes. But the virus has already infected thousands of tribe
members and killed dozens. That's according to the government's special indigenous health service.
The indigenous population now part of a grim milestone. On Wednesday, Brazil reached more than 60,000 coronavirus deaths. A tribute to those
victims lit on Christ the Redeemer, Rio's famed statue acknowledging the morbid toll of COVID-19 as the city reopens amid crisis.
Shasta Darlington, CNN, Sao Paulo.
(END VIDEOTAPE)
ASHER: So you've heard Shasta Darlington talk about that grim milestone that Brazil has just reached. It is the country that is reporting the most
coronavirus cases after the U.S., and it is the hardest-hit country in Latin America by a long shot and it might not even have reached its peak
yet with just shy of 1.5 million coronavirus infections reported so far.
Across Latin America, the food delivery service, Rappi, the unicorn, thanks to a major investment by Softbank, has more than 350,000 deliveries, and in
Brazil, there have been protests about the risks drivers are exposed to during the pandemic.
[09:45:18]
ASHER: Sebastian Mejia is the President and co-founder of Rappi. He joins us live now from Sao Paulo. Sebastian, thank you for being with us. So,
let's just talk about your business right now in Brazil. Walk me through how much of a surge in demand specifically have you seen since the pandemic
started.
SEBASTIAN MEJIA, PRESIDENT AND CO-FOUNDER, RAPPI: Hi, Zain. Thanks for having me. Absolutely, we've seen a surge and we've also seen a lot of
challenges to be able to operate under these circumstances. Part of our mission is to drive progress in the region and continue to invest and I
think it is showing that Rappi is even more needed now as an essential service. So, we're very committed to continue to operate under these
circumstances.
ASHER: So there are a few things here that are potential problems. Number one, obviously you know that Brazil has the second-highest number of cases
after the U.S., and it is the largest or the most hit country in Latin America and there's also the issue that a lot of cases many believe are
under reported there, so things could be far worse than we imagine.
So, given all of that, what are you doing? How are you committing to keeping your drivers safe?
MEJIA: So since this started back in March, we completely transformed our operation to be able to serve our customers with all of the health
guarantees and all the protection.
We did that across all of our operations with restaurants, with supermarkets, with pharmacies. We set up a fund to support the restaurants.
We also set up a fund to support couriers and assist them with medical needs.
Our team has been doing an incredible job working 24/7 to be able to guarantee that we're serving society in moments like this. You can imagine
Rappi is an essential service, with a big part of our business being supermarkets and pharmacies.
There's been an important uptick of users' need our product. So, it's been quite intense, but we're very committed as I said to you earlier, and it's
been quite an interesting thing to see in spite of all of the more challenging news that we're seeing all around us. We still think that e-
commerce and products like ours have a very important role in society.
ASHER: And you've actually been testing robots as well in certain countries in order to keep people safe. Is that -- I mean, given this climate, we
don't know when COVID-19 is going to end, do you think that robots and that kind of innovation is the future of the delivery business across the world?
MEJIA: So, Zain, let me step back and talk a bit more about why we're building what we're building. We started a company a little bit over four
years ago and we wanted to create a company a company that drives progress in the region by digitizing commerce.
This means that we created a product that allows consumers to solve their day-to-day needs from restaurants to groceries to e-commerce. It's very
important because Latin America has a very large population, probably the most urban population in the world, so you can add a lot to their quality
of life.
We also built a product that allows couriers to have a flexible income and an additional source of income, so we're driving enormous impact in their
lives.
And we also built a product that is basically accelerating the digitalization of commerce or merchants, whether it's a restaurant or a
retailer. So we are a very unique product, probably all of it is bundled into one product unlike many of the companies that you see in other parts
of the world, and this means that we are very innovative and we're constantly trying things.
I don't think robots is going to be necessarily the future. We have more than 250,000 couriers generating income on any given month and delivering
products, so we're very committed to them and that's a key priority for us even in moments like this where we've seen a surge in unemployment and a
lot of people being impacted by COVID and its crisis.
ASHER: So you're committed to protecting jobs is what you're saying, okay. Sebastian, we have to leave it there. We've run out of time. The President
of Rappi, Sebastian Mejia, thank you so much.
And we'll have much more news on FIRST MOVE after the break.
(COMMERCIAL BREAK)
[09:51:47]
ASHER: Well, you can't see on Broadway right now, of course, but the smash musical "Hamilton" is now available to stream.
[VIDEO CLIP PLAYS]
ASHER: A version of "Hamilton" is now available on Disney Plus as a growing number of new movies are being released via video on demand or streaming.
Here is Richard Quest with more.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Good day so far?
UNIDENTIFIED MALE: Today, tomorrow -- it's all the same.
UNIDENTIFIED FEMALE: You? What is going on?
(END VIDEO CLIP)
RICHARD QUEST, CNN BUSINESS ANCHOR, QUEST MEANS BUSINESS (voice over): It was back in January when "Palm Springs," Andy Sandberg's new romantic
comedy was on track to make a big splash. It had sold at Sundance for a record price, reportedly more than $17 million.
The buyers, Hulu and the distributor, Neon had agreed for a dual release. It would go to the theatres first, and then online. Then came COVID.
Now, the movie theatres are shut across the United States and in the rest of the world.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: It's one of those infinite time loop situations you might have heard about.
(END VIDEO CLIP)
QUEST (voice over): The producers said goodbye to the idea of a splashy theatrical release and instead, "Palm Springs" will premiere on Hulu on
July the 10th, and there will be a few drive-in theatres as well.
(BEGIN VIDEO CLIP)
DYLAN SELLERS, PRODUCER, FINANCER, "PALM SPRINGS": It was something that, you know, Andy and I and the director and everybody, we're looking forward
to. So, we're definitely bummed out a little bit, but that's the world we're in right now.
(END VIDEO CLIP)
QUEST (voice over): To release or not to release, that is the question that faces all of Hollywood now. The studios have delayed big budget films like
Christopher Nolan's "Tenet" Disney's "Mulan" waiting, hoping that movie theatres may reopen.
Studios cannot wait forever. Some are choosing instead to rent or sell the movie direct to viewers, known as PVOD or premium video on demand.
(BEGIN VIDEO CLIP)
JEFF BOCK, SENIOR MEDIA ANALYST, EXHIBITOR RELATIONS: If theatres do not open in July or if they do and then they close down, or if attendance just
isn't there, I guarantee that one of these big blockbuster films is going to take a chance and go PVOD and we're going to know, we're going to have
the answer to how much film can -- how much a film can gross on this streaming format. Can it make $1 billion?
(END VIDEO CLIP)
QUEST (voice over): More niche films like kids' movies, indi-comedies and horror are already releasing on streaming service or on demand, and what's
more, they're finding captive, profitable audiences.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: There are other kinds of trolls.
(END VIDEO CLIP)
QUEST (voice over): "Trolls World Tour" actually brought in more money for Universal through on-demand than the first "Trolls" movie did in the
theatres.
As for "Palm Springs," the producer, Dylan Sellers says putting the film on indefinite hold wasn't really an option because they're a small studio and
need to recoup the costs.
Even without theatrical release, he says, they'll turn a profit.
[09:55:10]
(BEGIN VIDEO CLIP)
SELLERS: I think if you talk to the folks at Hulu, they'll tell you that this has been an incredible attraction for their viewers. It is surpassing
all of their expectations in terms of, you know, audience subscriber interest.
(END VIDEO CLIP)
QUEST (voice over): The clear losers in all of this are the movie theatres. The movie chain AMC is now warning it has serious doubts it can even stay
in business. Viewers were already shifting online. The pandemic has sped up this transition.
(BEGIN VIDEO CLIP)
BOCK: The battle is being won by streaming right now and for the foreseeable future that's going to continue.
(END VIDEO CLIP)
QUEST (voice over): Blockbusters to be sure will probably always be shown in the movie theatres first, at least for now.
Richard Quest, CNN, New York.
(END VIDEOTAPE)
ASHER: All right. That is it for the show. I'm Zain Asher wishing all of you a safe and fun holiday weekend here in the U.S. Enjoy your weekend.
Bye.
(COMMERCIAL BREAK)
END
