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First Move with Julia Chatterley
Stocks Gain On Hopes Of U.S. Aid Talks; Dr. Anthony Fauci Expresses Confidence On Development Of A COVID Treatment; The Prime Minister Of Barbados Explains A New Plan To Attract Visitors. Aired 9-10a ET
Aired September 02, 2020 - 09:00 ET
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[09:00:25]
ZAIN ASHER, CNN INTERNATIONAL ANCHOR: Coming to you live from New York, I'm Zain Asher. This is FIRST MOVE and here is your need-to-know.
Stimulating the markets. Stocks gain on hopes of U.S. aid talks.
Vaccine optimism. Dr. Anthony Fauci expresses confidence on development of a COVID treatment.
And working from home with a difference. The Prime Minister of Barbados explains a new plan to attract visitors.
It is Wednesday. Let's make a move.
Welcome to FIRST MOVE. I'm Zain Asher in for my colleague, Julia Chatterley. It is so good to have you with us once again.
Let's begin with a look at the action happening right now on Wall Street. U.S. stocks are on track for another day of solid gains after a strong
start to September trading yesterday.
The NASDAQ and the S&P 500 start the session at record highs again, all of this as we begin to receive important new readings on the U.S. jobs
markets. Fresh numbers out before the bell show that 428,000 private sector jobs were added to the U.S. economy last month. That is a stronger reading
than in July, but a weaker number than we had been expecting.
We'll find out how the overall jobs market did in August when the U.S. releases its encompassing Jobs Report on Friday. It has been a strong day
of trading so far in Europe, despite some disappointing economic data from Germany.
Retail sales there unexpectedly fell almost one percent in July. It is the second straight monthly drop.
Asia-Pacific stocks were mixed. Australia led the way with an almost two percent advance. New numbers show the Australian economy officially
entering recession. Investors believe the Australian Central Bank will need to announce fresh stimulus.
A stimulus watch continues in the U.S. as well and that is where we begin today's drivers.
House Speaker Nancy Pelosi issues a statement after speaking with U.S. Treasury Secretary Steve Mnuchin saying, quote: "Sadly, this phone call
made clear that Democrats and the White House continue to have serious differences understanding the gravity of the situation." This, after
Secretary Mnuchin urged lawmakers to approve more money to combat the pandemic during a congressional hearing.
Christine Romans joins us live with more. So Christine, just given the fact that there are millions of Americans whose livelihoods are at stake, how
have both sides been willing to show compromise here?
CHRISTINE ROMANS, CNN BUSINESS CHIEF BUSINESS CORRESPONDENT: Well, you know, way back on May 15th, the House Democrat -- the House passed this
Heroes Act, $3.5 trillion of aid that was going to be more checks, more subsidies for people who have been out of work, you know, extra
unemployment benefits, funding for state and local governments, a big huge, $3.5 trillion package and that was just a no-go with Republicans.
And Republicans have countered now many, many weeks later with about $1 trillion in stimulus, a fourth round of stimulus. The Democrats have come
back and lowered their kind of core demands to $2.2 to $2.4 trillion, but you just don't have the Republicans budging here on a trillion dollars of
more stimulus.
So while all sides say they want to help these out-of-work Americans and help Main Street, really what you have here is an argument over size and
scope of the next round here. You will hear everyone say we want more checks out to American households, but deciding on that has been a real
problem and the size has been the real sticking point here.
ASHER: So what's at stake here particularly, A, as we gear up for an election here in the U.S., but also for low-wage earners, those who are in
desire straits financially?
ROMANS: Okay, so low-wage earners have the most to risk here and that's quite honestly the sad truth here. I mean, this has been such an asymmetric
crisis, the people on the front lines of the job crisis are low-wage workers, predominantly low-wage workers in retail, in leisure and
hospitality and in restaurants.
And when you look at for example, just the ADP number that just came out today, 428,000 new jobs in the private sector, most of those were in the
services sector and many of them, the largest single kind of size was the large companies hiring people back.
I'm very worried about these low-wage workers. We saw the C.D.C., of all things, of all agencies, the C.D.C. saying that people could be -- won't be
evicted if they don't pay their rent until the end of the year, but rents will have to be repaid at some point, right? And that's where the extra
money is so important, those subsidized checks for American families and subsidized unemployment benefits and you've had a month now without any of
that kind of funding flowing.
You're going to see that in economic numbers. You are going to certainly see that as a potential to kind of derail the small recovery we've had this
summer.
ASHER: All right Christine Romans, live for us there. Thank you so much.
ROMANS: You're welcome.
[09:05:09]
ASHER: Facebook and Twitter says Russia is targeting Americans on their platforms with disinformation again in the final weeks before the 2020
election.
Facebook says it removed a small network of fake accounts after receiving a tip from the F.B.I.
Donie O'Sullivan joins us live now. So, Donie what more can you tell us here?
DONIE O'SULLIVAN, CNN BUSINESS REPORTER: Hey, Zain, yes, this is a very significant update here on foreign interference. People tied to the same
Russian troll group that interfered in the 2016 U.S. presidential election are back, again, Facebook says, following a tip, I should say, from the
F.B.I.
Now, this is by far the most insight we have into what Russians are doing right now today to try to use social media to covertly insert themselves
into the American national conversation.
The FBI's tip to Facebook all centers around a website called Peace Data. It poses as an independent leftwing online magazine and it recruited real
unwitting American writers who contributed to it and it paid them.
The sorts of stories popping up there were attacks on Joe Biden and Kamala Harris from the left, a tactic we saw Russia use in 2016, when according to
U.S. prosecutors, they tried to use social media to split the Democratic vote.
There were some criticisms of Trump and U.S. foreign policy, racial inequality in the U.S. in there, too, as one might expect from a real
leftwing magazine.
But the good news, I guess here is that this was in its infancy. It hadn't gone viral as such and wasn't solely focused on the election, but the bad
news of course, Zain, is the fact that Russians are doing this and this probably wasn't the only example that's out there.
ASHER: And Donie, just tell us a bit more about some of the fake profile pictures generated using AI specifically. Is this the first time that we've
seen this specific tactic being used?
O'SULLIVAN: It is the first time we've seen it from this particular Russian group. This is where things get very dystopian and pretty crazy.
So Peace Data recruited real American writers, but to do that, the site had to have an editor and that editor had to look real and convincing. This is
where you enter Alex Lacusta and I want to show you his Twitter account.
Now, that account doesn't look particularly suspicious, but the picture there of Lacusta, the man in the spectacles, that is not a picture of a
real person. Experts who analyzed this tell us that picture, that face was generated by artificial intelligence, Deep Fake technology.
So before back in 2016, a good way to spot a fake account was if they were using images that might have been stolen from somebody else's account, but
now with advances in technology and Deep Fake technology, trolls and information operators are using this technology to try and evade detection.
So, Zain, very murky waters we are all swimming in online, a messy online information ecosystem, and all just with 62 days to November's election.
ASHER: Yes, it's scary just how sophisticated the technology is becoming. All right, Donie O'Sullivan live for us there, thank you so much.
And later in the show, we're going to be hearing about Microsoft's efforts to tackle fake content as well.
White House Adviser, Dr. Anthony Fauci believes a COVID-19 vaccine could be approved sooner than expected. He says a shot could be authorized before
the completion of clinical trials, which could put us on track for a vaccine by the end of the year.
Elizabeth Cohen joins us live now. So Elizabeth, I think the question everybody wants to know is how do you expedite a vaccine safely?
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Zain, I think the word expedite actually isn't the right word here. Here's the way the vaccine
trials work. You say I'm going to try this out on 30,000 people and you check it along the way. Imagine you're baking a batch of cookies and you
check it, you open up the oven door to see how it's doing.
It is possible that part way through the trial, you see, wow, a lot of people got infected with COVID and then when you take a look, those people
were the ones who got the placebo. People who got the placebo which is basically saline, got infected and got sick with COVID, but people who got
the vaccine, they didn't get sick with COVID.
If you notice this in significant numbers, and that's an important phrase I'll get back to in a minute, if you notice this in significant numbers
before the end of the trial, you actually have a moral obligation to say, whoa, wait a second, this vaccine is working, we need to give this to
people.
Here's a couple of points. One, what's a significant number? You know, biostatisticians might have one idea, other people might have another idea.
There might be some disagreement over what a significant number is, what does a sickness mean? There are ways to sort of define these things
differently and reasonable people can disagree.
Also, I will tell you that the experts that I've spoken to think it is highly, highly, highly unlikely that there will be a very early signal on
this vaccine. Could it finish early? It's possible. But they think it is extraordinarily unlikely that it will be by November 3rd, which is Election
Day. And that's what people are fearing, is that the President will put pressure and say, hey, let's get this vaccine out by November 3rd to have
really good data by November 3rd, the experts that I'm talking to say they really think that's quite unlikely.
[09:10:21]
COHEN: And Dr. Fauci hasn't named November 3rd either. He keeps saying the end of the calendar year. That's an almost two-month difference. That's a
big difference -- Zain.
ASHER: And at the same time, how should the F.D.A. or other health officials who are senior up, how should they go about making sure they
convince the public if this vaccine does come out sooner than expected, that it is safe and effective?
COHEN: I've got to tell you, I think that's going to be a tough sell. I mean, even without the talk of you know, early -- could we end the trials
earlier, Americans are suspicious about this. When you name your vaccine effort, Operation Warp Speed, it doesn't make you feel great about the
safety of this vaccine.
So even before we were talking about ending it early, Americans were sort of a little bit antsy about this. We did a poll, CNN did a poll August --
around 12th to 15th -- where we said do you want to get the vaccine? And 40 percent of the people we polled, this was in the U.S. said no, I don't want
to get it, even if it's free and easy to access.
That is not great. That means that when a vaccine comes out, even if it's stellar, even if the data is gold standard, amazing, it is going to be
difficult to convince a good chunk of the United States to get it. That may be harder or as hard as developing the vaccine in the first place.
ASHER: All right, Elizabeth Cohen live for us there, thank you so much.
COHEN: Thanks.
ASHER: The COVID-19 pandemic has pushed Australia into recession for the first time in almost 30 years. Growth shrank to seven percent last quarter,
that's the sharpest decline on record. Australia is just the latest country to post historic slowdown, it follows India and Brazil earlier in the week
as well.
John Defterios joins us live now. So, John, I mean, it is the typical sectors. It is hotels, it's restaurants, it's household consumption as
well. So what is or should the Reserve Bank of Australia be doing to really help the economy at this time?
JOHN DEFTERIOS, CNN BUSINESS EMERGING MARKETS EDITOR: Well, that's pretty complex and they're actually not very bullish here in the third quarter and
going into the fourth, Zain. But let's say this, COVID-19 strikes again, shall we?
In fact, this is a deeper surprise because back in the Global Financial Crisis, Australia avoided the recession altogether. And this time around
we'd say what? 2020 is an awful year for everyone, even worse for the Aussies.
We have to remember, they started off with the wildfires and that led into the COVID-19 crisis that undermined tourism, of course, and then we have a
very sharp drop in demand for their major commodities in the farming sector and coal, and if you want to top it all off, they are having a trade
dispute with its largest trading partner and that being, China.
So what happens here? We have consumer consumption basically a strike down 12 percent in the quarter and the manufacturing sector is very slow and the
Reserve Bank of Australia doesn't have a lot to reach out to.
We also have to remember, Zain, that the State of Victoria is officially in a state of disaster because of the cases and this is the base, of course,
for Melbourne, a major city in Australia, and it's holding back this idea of can we move forward?
Consumer sentiment is extremely negative as a result with this very strong second wave.
ASHER: And so you know, this is a story that we've seen time and time again with a lot of economies around the world suffering because of COVID-19. How
does what's happening in Australia compare to the rest of the developed world?
DEFTERIOS: Yes, I think that's worth flagging. It really is worth focusing on, because Australia is probably in the league of, say, the largest
economy in Europe and that is being Germany because it's not having these wild gyrations. It's a pretty steady player with the exception of commodity
demand dropping right now.
In fact, the United States had a worst performance in the second quarter, so did Japan, the U.K. in a leave, it is now with that contraction of 20
percent. And at the beginning of the crisis, I flagged this because of Brazil and India, I was saying that the emerging markets are going to be
suffering severely later on in the game.
We have nearly four million cases in Brazil and a contraction overnight of nearly 10 percent and India with a contraction of what -- nearly 24 percent
and they added a million COVID cases in a span of 16 days. The strain on their medical systems and the inability to reach into reserves to kind of
jump-start or stimulate growth in the emerging markets is particularly difficult, and especially for those with high populations like Brazil and
India -- Zain.
ASHER: And a huge surge of cases in India. We will keep an eye on that. John Defterios live for us, thank you so much.
These are the stories making headlines around the world. The father of a black man shot seven times by police in Kenosha, Wisconsin, is responding
to President Trump's visit to his town.
Mr. Trump toured businesses that were damaged during protests and held a Public Safety Roundtable, but did not speak with Jacob Blake's family or
even mention Jacob by name. Blake's father said this to CNN.
[09:15:10]
(BEGIN VIDEO CLIP)
JACOB BLAKE, SR., JACOB BLAKE'S FATHER: None of my children are chess pieces and my son is definitely not a pawn and we're not going to be
political -- it's not a political way that I'm going to talk about it.
We're not talking politics. My son is an actual human being and my son is actually laying in the hospital.
My son's name is Jacob Blake. If you didn't mention it, then you don't care about him.
(END VIDEO CLIP)
ASHER: "My son is actually a human being." CNN's Shimon Prokupecz is live for us in Kenosha. So, Shimon, was this real genuine attempt by the
President to actually reach out or was it just a campaign stop?
SHIMON PROKUPECZ, CNN CRIME AND JUSTICE REPORTER: You know, when you look at what the President did when he came here, it was a photo op. It would
seem like a campaign stunt.
He only met with business leaders whose stores were looted during some of the protests and then he met with law enforcement, and it would seem he is
fully into protecting law enforcement and standing up for law enforcement in this country right now and that's really what it would appear the whole
point of him coming here was for.
And as you said, he didn't even mention Jacob Blake's name at all during the time here. He didn't seem to be all empathetic to the feelings of
people about racial injustice, about social injustice, about the fears that they face in dealing with police in their communities.
It's all across this country right now and we didn't see that side of the President here. He simply came in, went and met with business leaders, some
store owners, and then went and did a round table with law enforcement.
Then you have law enforcement -- the local sheriff here who is in the middle of all of this, praising the President in some ways saying we love
you and we love the appreciation that you show us.
And that was really all yesterday was about here in Kenosha.
ASHER: Yes, it only serves to sow that much more division. CNN's Shimon Prokupecz, live for us in Kenosha, Wisconsin. Thank you so much.
China says no Indian soldiers were killed in a confrontation near the disputed Himalayan border on Saturday. Beijing is accusing India of
provocative action as military commanders hold talks to diffuse tensions. It comes two months after 20 Indians troops were killed in a skirmish, the
deadliest clash between both countries in more than 40 years.
The trial of 14 people charged in connection with deadly terrorist attacks in Paris got under way today. Five years ago, gun men rushed the offices of
French satirical magazine, Charlie Hebdo and killed 12 people working there. Over three days, a total of 17 people were killed.
All right, coming up here on FIRST MOVE, can you spot the real from the fake?
Microsoft shows us what it's doing to uncover manipulated media, and Paradise Island, the Prime Minister of Barbados tells me why she wants
remote workers to live in the Caribbean. Wouldn't that be nice? That's next.
(COMMERCIAL BREAK)
[09:21:08]
ASHER: All right, welcome back to FIRST MOVE coming to you live from New York where it's still looking like another solid open for U.S. stocks this
Wednesday. Investors remain upbeat about the chances for a U.S. economic recovery.
We found out yesterday that factory activity surged to a two-year high last month. Factory hiring, however, remains weak. And we found out today that
overall private sector hiring is somewhat lackluster as well. ADP reporting that 428,000 private sector jobs were added to the economy overall last
month. Many were actually expecting hiring to top one million, so we didn't even get close to that.
Meantime, Tesla is trying to rebound after yesterday's losses. Tesla fell more than four percent yesterday on word that it will be selling some $5
billion in additional stock.
Shares of Zoom are set to pull back in early trading after soaring more than 40 percent on better an expected second quarter numbers.
And shares of online betting site DraftKings are set to rally on word that Michael Jordan will actually be joining the company as a special adviser.
Joining me now, John Petrides, the Portfolio Manager at Tocqueville Asset Management. John, thank you for being with us. I want to start by talking
about stimulus specifically because the talks are happening between Nancy Pelosi and Steven Mnuchin.
Senate Republicans want spending to top roughly around $1 trillion. That is what they are putting on the table right now. Is that enough, do you think,
just given how much the economy has suffered in the last six months?
JOHN PETRIDES, PORTFOLIO MANAGER, TOCQUEVILLE ASSET MANAGEMENT: Well, I think the size of the stimulus package all depends on when the vaccine is
going to get distributed and we won't know the answer until after the fact because we need the stimulus to provide liquidity to small businesses and
people who are unemployed to help bridge the gap until a vaccine is distributed and to the point where you and I and everyone else feels
comfortable getting back to some sense of normalcy and comfortable spending money again.
So I am right now in the camp of bigger is better because we don't know when the vaccine will be approved and distributed, and I do think we need
to fill the gap.
But, you know, we won't know until it is in retrospect and I think right now, there's a massive game of political football going on as we're as the
election -- as we are in the eve of the election.
ASHER: Yes, I mean, you're right. We don't actually know. However, Dr. Anthony Fauci seems to believe that it is possible -- there's no
guarantees, but it is possible that we could see a vaccine by the end of the year. If that is the case, do you think $1 trillion is enough?
PETRIDES: Well, you would seek the horn -- you'd see an approval for a vaccine, but that doesn't mean it's going to be distributed, right? So
there's a difference.
And the market will react positively clearly to the approval of a vaccine before yearend, but we still have to get the logistics of it getting
distributed so we all feel comfortable, and that -- I would assume -- I'm not in the healthcare field or in the vaccine field, but I would assume a
year from now under that scenario is when we would all be rolling out vaccinations.
And then the question goes to, you know, who does that get -- what is the pecking order of who gets vaccinated first?
Now, stocks will react way ahead of that and that will be good news for stocks. But in terms of the amount of stimulus and when that gets
distributed, the goal is to bridge the gap until we can get the vaccine distributed to the masses.
ASHER: Okay, so in the meantime, what are we looking at? We're looking at unemployment around 10 percent or so. We're looking at initial jobless
claims at around one million.
When the stimulus does come, what do you think is the greatest need? What area do you think is the most important in terms of really propping up the
economy, especially given that the American economy runs on consumption? Is it unemployment insurance? Is it small business PPP? What are your
thoughts?
PETRIDES: For me, it's all about supporting the small business. For me, because when you support the small business then they have the ability to
keep their businesses running, they can do -- they can judge the sense of hiring based on demand for their own businesses.
[09:25:10]
PETRIDES: Having that extra cash flow helps the landlord. So, there's a massive trickle-down effect by supporting small businesses. I would rather
see that than more unemployment insurance, because, you know, if the data is accurate, when we were receiving unemployment insurance of $600.00 per
week that was more than what many people were actually making, at least on the service side of the economy.
And if you were making more from sitting at home getting a check, it doesn't offer you any incentive to get off the couch to go find a job.
So I would be more -- I'm definitely more in the favor of supporting small businesses or businesses in general, to give them the cash flow to then do
what they can to pay rent to help landlords and/or use that, too, to offer hiring as demand hopefully continues to increase from here.
ASHER: Let's talk about markets, because obviously, you know, a lot of people find it somewhat strange that despite what's happening in the
broader U.S. economy and despite what's happening on Main Street, you know, we are in record high territory.
So do you anticipate that, just given that we have more than over 60 days until the U.S. election, do you anticipate the market is going to get that
much more volatile before November 3rd?
PETRIDES: Yes, the way that I see the stock market going right now, it's like the REM song "It's the end of the world as I know it and I feel fine"
because that's how it feels right now when stocks continuing to rally, but the global economy is really sucking wind.
I mean, I would expect an uptick in volatility before yearend. And listen, that could be to the upside or do the downside. What I mean by that is, the
biggest thing staring at us in the face is clearly the U.S. election and I think the best outcome or the outcome the market would respond most
favorably to is probably Biden winning the presidency, Republican winning the Senate and that probably prevents a rise in corporate taxes.
And I think that's the best -- I think that's the outcome that the market would respond most favorably to.
I would expect social unrest to happen the day after the election or soon after, regardless of who the winner is. That's just -- you know, we are in
a divided nation right now socially, and then obviously if Dr. Fauci is right and we can get a vaccine approved before yearend, clearly that's very
positive.
And then the next sort of wall of worry, the biggest issue staring us in the face is, you know, is there a resurgence of COVID in the fall and
winter that would force the economy to roll back? These steps that we've taken to open the economy, do they roll backward because cases increase and
the pressure on the hospital utilization is so great that governors feel compelled to roll back the opening, to free up the hospitals from having a
repeat of what we saw in the spring.
So going forward to close out the year, I would expect the volatility to pick up.
ASHER: Yes, I mean, there's so much uncertainty. Everything from the vaccine to a surge in cases, potential surge in cases to the outcome of the
election. So many unknowns. But John Petrides, we have to leave it there. Appreciate you joining us.
All right, you are watching FIRST MOVE. The market open is next.
(COMMERCIAL BREAK)
[09:31:23]
ASHER: Welcome back to FIRST MOVE. U.S. stocks are up and running this Wednesday. As expected, we've got a higher open for U.S. stocks for the S&P
500 and the NASDAQ rising to fresh record highs.
All of this as a new survey shows that private sector hiring rising by a weaker than expected 428,000 last month. Today's numbers point out, once
again, the urgent need for more U.S. fiscal stimulus.
Treasury Secretary Steve Mnuchin is urging congressional leaders to resolve their differences and pass a new bill soon, but both sides have not met in
weeks.
Stocks in the news today include retailers Macy's, its shares are rallying after reporting a narrower than expected second quarter loss. Online sales
were a bright spot rising by more than 50 percent. Macy's is hardly out of the woods in terms of retail, same store sales fell by more than 30
percent.
Paul La Monica joins us live now. So, really the key to Macy's continued success or survival is in the online sales sector, that growing more than
50 percent.
PAUL LA MONICA, CNN BUSINESS REPORTER: Yes, this is a strong number for Macy's, which has lagged many other retailers in making that transition,
Zain, from a predominantly mall-centric, bricks and mortar retail are the ones where people are going to shop digitally.
I mean, you look at companies like Walmart and Target for example, they have done a much more -- a much better job of embracing digital trends to
catch up to Amazon than companies like Macy's has.
The things that's good for Macy's is that their numbers are much better than bankrupt JCPenney's, obviously, as well as Nordstrom, which is really
struggling, too.
So, I think Macy's isn't out of the woods, as you said, but there are some hopeful encouraging signs.
ASHER: And let's talk about Kodak because hedge fund D.E. Shaw is actually investing in Kodak. They actually took a stake in the company as they pivot
to pharmaceuticals. Do you think that this is just -- this hedge fund is just trying to make a quick buck in Kodak or is it -- do they actually see
long-term value in the stock?
LA MONICA: Yes, I would guess, Zain that it is probably the former than the latter. The company didn't elaborate on why it's taking stake, it does
appear to be a passive, not active stake. So it doesn't seem as if D.E. Shaw is taking issue with Kodak strategy which is on hold by the way,
because concerns about insider selling, the Federal government has put that loan to Kodak on hold regarding some of the expansion Kodak wants to do to
make more drugs.
So I think D.E. Shaw maybe sees a sort of beaten down stock that could pop because even though Kodak is still up phenomenally this year, it's trading
around $7.50 now a share, that's well below the $60.00 a share that it rose to in that immediate feeding frenzy that we saw when traders were just
going out of their minds buying the stock after the government loan news first came out at the end of July.
ASHER: All right, Paul La Monica live for us there. Thank you so much.
Earlier in the show, we heard Facebook claim that Russia is targeting Americans again. Now, Microsoft is helping users to spot Deep Fake videos
and disinformation as well.
It says that over six years, 96 foreign influence campaigns targeting 30 countries have been documented. Ninety three percent of them included the
creation of original content, 74 percent of the campaigns distorted verifiable facts.
Microsoft now has the tools to give a confidence score on whether media is real or not. It also is allowing content creators to add a digital
certificate proving where it was made.
Tom Burt is the Vice President of Customer Security and Trust at Microsoft, he joins us live now. So just walk us through how this technology to combat
disinformation actually works.
[09:35:13]
TOM BURT, VICE PRESIDENT OF CUSTOMER SECURITY AND TRUST, MICROSOFT: Sure. The technology works in two important different ways. Video authenticator
is the technology that we announced yesterday that enables a confidence score to be created by scanning a video or other image and evaluating
whether it has been altered by artificial intelligence or not.
So we are actually looking at the data behind the image and looking for indicators that that image has been modified through the use of these
artificial intelligence engines that can be used to create these Deep Fakes, videos that appear to put a person in a place or have someone saying
something that they never said in a place they never were.
ASHER: And so what are the challenges? Because obviously with some of these deep fake videos, they're using AI, it becomes very, very difficult for
even a company like Microsoft to sometimes catch up.
How hard is it always to really know whether or not it's real or fake?
BURT: It's really difficult to know whether it's real or fake, and that's why we've partnered with Reality Defender 2020 to contribute our
technology, our video authenticator technology, to a group of other technologies that that organization is using to make available to media, to
campaigns, so that they can try to determine and help educate their viewers or their voters as to what is authentic and what has, in fact, been
modified and is a Deep Fake.
But these technologies, these detection technologies like our video authenticator, in the long run, the artificial intelligence that creates
Deep Fakes will defeat those detection technologies.
Between now and the election, we think that video authenticator and the other technologies can provide a useful service, but ultimately what we
will need is what we are powering with our other technology announcement, which is actually being able to authenticate and track authentic media from
the time of its creation.
And we're doing that with a new technology. We're working together with a number of leading media companies, including the BBC, "New York Times,"
CBS, on Project Origin where technology that we've created can actually create a digital watermark on the video when it is first created and track
it through the process of being legitimately edited and so forth, so that when someone views that video the software that shows you the video will be
able to report whether that video has been altered in some unauthorized way.
And we see that as the longer-term solution, while the short-term solution for this election cycle is video authenticator.
ASHER: Right. And just quickly, I mean, obviously you are unveiling this a couple of months before the U.S. election. Do you think if this technology
had been available or you had unveiled this four years ago before the 2016 election that it actually would have made somewhat of a difference?
BURT: It's possible, although at the time in 2016, these Deep Fake technologies were not as well developed and that was not as significant a
part of the disinformation campaigns that we saw then. But we do expect to see our adversaries using these kinds of Deep Fake technologies in this
election cycle, so we think it's really important that people be aware of that and encourage people to go take the quiz that we've put up online,
which will help educate you of whether or not what you're seeing is a Deep Fake or not.
You can get to that at stopdeepfakes.org. It is actually kind of fun and you'll see some examples of some very sophisticated Deep Fakes and some
clues to help you as a viewer determine whether what you're seeing is real or fake.
ASHER: All right, Tom Burt, thank you so much. Appreciate you joining us.
BURT: Thank you, Zain.
ASHER: German automaker, Daimler revealing its new Mercedes Benz S class. The luxury vehicle is packed with major technology upgrades, including
various AI features. Our Richard Quest talked to the CEO of Daimler.
(BEGIN VIDEOTAPE)
OLA KALLENIUS, CEO, DAIMLER: The S class is the flagship of the Mercedes portfolio, so of course, our engineers, they really want to improve the
vehicle in all dimensions. Safety as always has been something that the Mercedes Benz brand has stood for and the feature you mentioned is just one
of these many little angels that takes care of you.
If you, God forbid end up in an accident, you want the vehicle to give you maximum protection. This will be the first vehicle in the world with an air
bag actually for somebody sitting in the back seat.
So, so many features are going into the S class that are designed to protect you or protect the people around you.
[09:40:04]
RICHARD QUEST, CNN BUSINESS ANCHOR: AI and the IoT is at the core of many of these changes, and again, cybersecurity, I know you must have answered
this a million times, but cybersecurity and the ability to enhance or to protect the security of these systems, surely it's a matter of time before
there's a major compromise.
KALLENIUS: A vehicle like the S class, you can almost say it's a super computer on wheels. So, of course, with a car where we have more than 30
million lines of code for all the sophisticated technology and functions that we have in this vehicle, cybersecurity is very important.
When it comes to how you technically address that, companies and us alike, tend to be quiet about it. But of course we pay attention to the highest
level of security when we put the sophisticated technical product like this into market.
QUEST: It's an extraordinary story and, you know, one is tempted to always ask you, did you consider delaying the launch of this car? Nobody wants to
have a major launch in the middle of a pandemic, but I guess you get to the point where you've got to do it sometime.
So were there those discussions?
KALLENIUS: When we sat here in March and looked at the project and said we have the next six months, the final stretch of the project really to get
across the finish line, and at the same time, parts of the company is in lockdown, some people are in home office. How do you do it?
And here I really have to applaud the team, the engineering team and the project team around the S class. They had the ingenuity and the flexibility
and all of the passion to keep this project on time. So we're launching according to our original schedule, and the reaction that we have had from
customers and fans around the world, people really are waiting for this car, so I am very proud that we're on time.
(END VIDEOTAPE)
ASHER: And you can actually watch more of that interview on "Quest Means Business" at 3:00 p.m. in New York; 8:00 p.m. if you're watching from
London.
All right, coming up here on FIRST MOVE, work from home in a Caribbean paradise. How one nation is attracting remote workers during a global
pandemic? That's next.
(COMMERCIAL BREAK)
[09:45:15]
ASHER: The Caribbean nation of Barbados has launched a new program to attract work from home foreigners. The Barbados' welcome stamp actually
allows visitors to stay on the island visa free for up to one year.
This as the coronavirus pandemic hits Barbados tourism industry, which accounts for a big part of the country's economy. Joining us live now is
the Prime Minister of Barbados, Mia Mottley.
Mia, thank you so much for being with us.
MIA MOTTLEY, PRIME MINISTER OF BARBADOS: Thank you so much.
ASHER: So even though Barbados hasn't really had that many cases, only about a hundred, I think less than a hundred, actually. How hard has this
pandemic been on your country's tourism sector?
MOTTLEY: We've actually had a little more than that. But most of our cases or more than 90 percent have been imported. Our tourism sector has been
affected largely because all travel stopped really at the end of March, largely because of the quarantine mechanisms which countries were putting
in place, and of course while we've had some limited resumption since the middle of July -- middle of July, it's really not anywhere near what we're
accustomed to, probably about 15 percent of our normal load.
So it has been extremely difficult for us and all of the travel dependent countries in the region. The Caribbean as you know is the most travel
dependent region in the world, so we're not only facing the direct impact of COVID, we're facing the consequences of COVID, which are far greater for
us than the actual impact of COVID.
ASHER: But Prime Minister Mottley, do you fear that perhaps with this sort of tourism, this initiative that you're proposing, inviting more tourists
into the country that the number of cases and the number of deaths will only rise?
MOTTLEY: I like the sound of Mia better, please call me Mia.
ASHER: Okay.
MOTTLEY: We recognize that we have to put measures in place and we've been very, very careful about the measures that we've put in place. We change
the protocol every two weeks because this is a dynamic situation.
There are countries that move into high risk. There are countries that drop from high to medium or low. We have different protocols for each. We have
designated hotels and designated villas for quarantine.
We have a second test applied for persons who come in from high risk countries just to make sure, and medium risk -- to make sure they're all
right.
High risk countries have to quarantine for seven days. If they do the second test, if they don't do the second test, they'll do the full 14-day
quarantine, and it's been working very well.
We have had, I would say, four or five days a week we may get one or two or three imported cases. But no more than about ten on average in a week. So,
you know, we know that the virus is across the global community.
Barbados is a member of the global community. We cannot isolate ourselves from it. We are an island. And it's the same with all of the other
countries. In Lucia Granados, Saint Vincent, Bermuda, Jamaica, Trinidad -- all of us. So we face the same reality and we have to learn to live with
it.
And our people, quite frankly, have been very responsive for the most part, very responsible. But it's a difficult moment and the shadow of COVID for
us will live much longer than COVID, largely because of how it has decimated the tourism sector.
That's why we introduced this stamp, quite frankly, because we realize that short-term tourism isn't going to work easily in these times with the
safety protocols that we have to put in place.
ASHER: And just quickly, if you're inviting people from, let's say, Brazil, the United States, even India, which all three which have a high number of
cases.
I understand the various policies and the fact that they have to quarantine for a set period of time, but even after that, is social distancing
mandatory? Is mask wearing mandatory?
MOTTLEY: Yes, we haven't made mask wearing mandatory, but for the most part we've said to everyone, and we strongly encourage mask wearing in public
places, and Barbadians for the most part are responding to it. We have also indicated that physical distance, and if you can't physical distance, then
you absolutely have to wear your mask.
And the country has a high degree of citizenship engagement and we're grateful for that. And I think that those of you who visit here will
recognize that this is a place where you can be comfortable, where you can be safe. But yes, you will have to comply.
ASHER: Okay, Mia, unfortunately, we've run out of time. But thank you so much for coming on the program and I wish you the best of luck with this
initiative. Thank you so much.
Mia Mottley, Prime Minister of Barbados.
MOTTLEY: Thanks. It's a pleasure.
ASHER: Of course. COVID-19 is impacting economies around the world, hitting some industries harder than others and jeopardizing decades of progress for
women in the workplace.
We'll have more on that after the break.
(COMMERCIAL BREAK)
[09:52:06]
ASHER: All right, more than 14 million Americans are out of work and that means millions are facing eviction because they simply can't pay their
rent. That's while Congress and the White House remain deadlocked over how to provide more financial relief. Vanessa Yurkevich looks at how the
political standoff is impacting women.
(BEGIN VIDEOTAPE)
VANESSA YURKEVICH, CNN BUSINESS AND POLITICS REPORTER (voice over): On the streets of Harlem, signs of business on life support.
(BEGIN VIDEO CLIP)
TAMI TREADWELL, HARLEM SEAFOOD SOUL: It's been like a ghost town out here.
(END VIDEO CLIP)
YURKEVICH (voice over): Tami Treadwell is back with her food cart, Harlem Seafood Soul after more than five months off the street.
(BEGIN VIDEO CLIP)
YURKEVICH (on camera): What got you back out on the street again?
TREADWELL: Needing to be able to feed my family.
(END VIDEO CLIP)
YURKEVICH (voice over): Months into the pandemic, millions are still out of work and more than 100,000 small businesses have closed.
Treadwell says she applied for grants from the city and a PPP loan, but hasn't received either.
(BEGIN VIDEO CLIP)
TREADWELL: Responses that I've gotten is that there isn't enough money or try back again, maybe some additional funding will become available, or you
just don't hear anything back at all.
(END VIDEO CLIP)
YURKEVICH (voice over): But even with the PPP loan, for some it didn't go far.
(BEGIN VIDEO CLIP)
LUISA SANTOS, OWNER OF LULU'S ICE CREAM: As it was designed, we ran out of that money a little bit longer than eight weeks, it lasted. But still, we
are way past that eight-week point.
(END VIDEO CLIP)
YURKEVICH (voice over): Luisa Santos opened Lulu's Ice Cream six years ago in Miami. She emigrated to the U.S. from Columbia for the American dream.
Now, she is cutting her salary to keep her employees on part-time and she is hoping Congress will pass a third stimulus bill for her small business.
(BEGIN VIDEO CLIP)
SANTOS: We are not in a good place in our economy and what we need support to get through the rough patch.
(END VIDEO CLIP)
YURKEVICH (voice over): But the U.S. jobs recovery is stalling. Less than 50 percent of the 22 million jobs lost in March and April are back online.
More than a million people have filed for unemployment each week, except one, since mid-March. And the extra $600.00 a week in unemployment benefits
have expired.
(BEGIN VIDEO CLIP)
TREADWELL: I'm behind on my rent like everybody else. We're food insecure like everybody else.
(END VIDEO CLIP)
YURKEVICH (voice over): Still, some parts of the U.S. economy are thriving. U.S. tech companies have recovered and then some.
The top five in the U.S. are now worth a collective $7 trillion. But there's a disconnect between Wall Street and Main Street, while stocks are
hitting records, up to 40 million Americans could face eviction by the end of the year without a new stimulus bill.
(BEGIN VIDEO CLIP)
TREADWELL: If you leave us out, we're going to have barren streets, the economy is not going to get back up and running because we are the life
blood of Main Street America.
(END VIDEO CLIP)
YURKEVICH (voice over): The pandemic is also exposing a harsh reality for women of color. The highest rate of unemployment is among Latina workers.
(BEGIN VIDEO CLIP)
TREADWELL: Thank you so much.
(END VIDEO CLIP)
[09:55:04]
YURKEVICH (voice over): And black women in jobs deemed essential to COVID- 19 recovery make up to 27 percent less than white men.
(BEGIN VIDEO CLIP)
SANTOS: We are being affected more significantly than other business owners and we need that support.
TREADWELL: I know for a fact as a black woman that there has been a social economic disadvantage for us for as long as I can remember. Please think
about the street vendors who are out here, who are really just trying to make a good, honest living.
(END VIDEO CLIP)
YURKEVICH (on camera): This is why a stimulus bill is so critical, because it can address various parts of the economy. It can help freeze evictions,
help with student debt, unemployment, and give money to small businesses.
And when you put money into the hands of everyday Americans, they're more likely to spend and that helps stimulate the economy and provide more jobs.
Vanessa Yurkevich, CNN, New York.
(END VIDEOTAPE)
ASHER: Yes, a lot of people desperately need financial help right now. That is it for the show. I am Zain Asher. Thank you so much for watching. I'll
see you tomorrow, same time, same place.
(COMMERCIAL BREAK)
[10:00:00]
END
