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First Move with Julia Chatterley
The F.B.I. Says Iran and Russia are Trying to Influence U.S. Voters; Joe Biden and Donald Trump in Their Final Face-Off Tonight; Tesla Reports a Fifth Straight Quarter of Profit. Aired 9-10a ET
Aired October 22, 2020 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:18]
JULIA CHATTERLEY, CNN BUSINESS ANCHOR, FIRST MOVE: Live from New York, I'm Julia Chatterley. This is FIRST MOVE and here is your need to know.
Meddling mystery. The F.B.I. says Iran and Russia are trying to influence U.S. voters.
Debate day. Joe Biden and Donald Trump in their final face-off tonight.
And electric earnings. Tesla reports a fifth straight quarter of profit.
It's Thursday. Let's make a move.
Welcome once again to FIRST MOVE wherever you are in the world. You join us on the countdown to another debate night here in the U.S.A. From the
immortal words of anchorman, Ron Burgundy, we hope things stay classy this time around.
We will do debate prep this hour with 2016 Republican presidential candidate, Carly Fiorina. That's coming up in the show.
In the meantime, emergency aid talks continue in Washington. The problem is, there is no sense of emergency at least from Senate Republicans and
that makes a deal look all but impossible at this stage, combine that when what I mentioned there, election interference fears and you have a recipe
for global stock market weakness and that's what you see in front of you right now.
Former presidential candidate, Andrew Yang said to us yesterday if you remember, unless a deal on this financial aid comes soon, struggling
Americans will have to wait until February at the earliest. And we keep saying, help is needed now.
A further 787,000 Americans filed for first-time benefits last week. That's actually the lowest number since March, but it is still historic numbers
and still more than 23 million people collecting some form of unemployment benefits in the U.S. at this moment.
The Federal Reserve warned yesterday that consumer spending is now leveling off in parts of the U.S., a worrisome sign that household savings that
built up during the summer may now be depleted or at least being depleted.
On the brighter side, however, better than expected earnings are lending some support to stock markets at least. Tesla up to four percent premarket
after posting record sales and they doubled down on their delivery numbers guidance. All the details on that coming up.
In the meantime, PayPal hit a record high Wednesday, too. This, after announcing it will support cryptocurrencies on its platforms including
payments on Venmo. We can now Venmo, which are the Bitcoins. Bitcoin hitting 2020 highs on the news yesterday, but it is ticking back some of
that slightly today.
And from crypto to cryptic. U.S. officials confirming that foreign powers are once again meddling in the U.S. elections. Let's begin the drivers
there.
Federal Intelligence agencies say Russia and Iran have acquired U.S. voter data in an effort to influence the election. The evidence suggests Iran was
behind a campaign of threatening e-mails sent to voters, allegedly from the far right group, the Proud Boys.
Alex Marquardt joins us now. Alex, great to have you on the show. Sadly, we have to separate the politics here from the Intelligence, and that's what I
want you to do first. What exactly did the Intelligence Agencies tell us yesterday?
ALEX MARQUARDT, CNN SENIOR NATIONAL SECURITY CORRESPONDENT: Well, Julia, this was a remarkable press conference last night at 7:30 here on the East
Coast, in part because it was so hastily assembled, but then also, the cast of characters who showed up. These are the most senior National Security
officials in the country when it comes to safeguarding the elections.
This was led by the Director of National Intelligence, John Ratcliffe, as well as the F.B.I. Director Christopher Wray and what they laid out for the
first time was attributing to Iran and Russia essentially the stealing of voter registration data. This is the first time that they have announced
anything like this in the 2020 election.
So Russia and Iran have gotten a hold of some voter registration data. There had been a reported intrusion on election support systems around two
weeks ago. We believe some of that data came from there and Iran used some of this voter registration data according to these officials to send out e-
mails, threatening e-mails to voters.
We've already reported that they were in Alaska and Florida threatening them, that if they don't vote for Trump, there will be consequences.
One of them that we saw says, "Vote for Trump or we will come after you." Here's a little bit more of what the Director of the National Intelligence,
John Ratcliffe had to say last night.
[09:05:04]
(BEGIN VIDEO CLIP)
JOHN RATCLIFFE, DIRECTOR OF NATIONAL INTELLIGENCE: We would like to alert the public that we have identified that two foreign actors: Iran and
Russia, have taken specific actions to influence public opinion relating to our elections. We have already seen Iran sending spoofed e-mails designed
to intimidate voters, incite social unrest, and damage President Trump.
(END VIDEO CLIP)
MARQUARDT: So there, Ratcliffe saying that the e-mails were meant to sow chaos, to infuse the process with more division.
It should be noted, Julia that none of these officials have said any votes were changed or that there was any meddling on that front.
It is rather problematic in the eyes of some, particularly Democrats that Trump's name was mentioned there. The argument among some Democrats is, how
does this favor Trump when -- how is this against Trump, rather, when these votes are clearly threatening that if you don't vote for Trump, there will
be consequences?
The argument from Ratcliffe there seems to be that because these e-mails are meant to look like they are coming from this pro-Trump far right group,
the Proud Boys, that that will work against Trump's favor.
Now, the Intelligence Community said for a long time that Iran is looking to undermine Trump in this election and this appears to be the first
concrete evidence that they are offering that this is the case.
But again, no votes changed according to the officials and when it came time for Christopher Wray of the F.B.I. to speak, he did tell voters they
should be confident that their votes will be counted -- Julia.
CHATTERLEY: Yes, and voters of both candidates targeted too, potentially as well. Alex, some important points there as well. Thank you so much for
that.
All right, tonight, American voters will get their last chance to see President Trump and Joe Biden face off before the November 3rd election.
They'll meet on the debate stage in Nashville, Tennessee 12 hours from now. John Harwood is in Washington for us.
John, it is President Trump versus former Vice President Joe Biden versus the mute button. What are we expecting tonight?
JOHN HARWOOD, CNN WHITE HOUSE CORRESPONDENT: Well, I think President Trump may actually benefit from that mute button if it tempers his performance.
His last performance was disastrous for him politically and his advisers have been trying to get him to tone it down.
But President Trump's personality is not likely to change. He is bristling to go after Joe Biden through the means of tarring his son, Hunter, which
right-wing media has been doing as well. So I'd expect him to be, if not as raucous as last time, significantly raucous and the question is, is there
anything he could do at this stage to change the trajectory of this race?
It's been remarkably stable. Joe Biden has got a 10-point lead nationally. He leads in enough states to win the Electoral College. Joe Biden doesn't
really need to do anything tonight except avoid a major mistake and try to run out the clock.
We've got less than two weeks until the election. Joe Biden is on a glide path. The question is, can President Trump change that?
CHATTERLEY: Yes, you make a great point, I think, with the mute button, perhaps President Trump will allow Joe Biden to speak and perhaps then
gaffes appear, but then, you're asking to change habits of a lifetime perhaps.
John, talk to me about stimulus. What are we thinking here? There seems very little room to maneuver here from some of the Senate Republicans and
the leadership there who perhaps are going to scotch this deal even if we get to the end.
HARWOOD: Well, I think Andrew Yang, who you quoted before as saying, I believe that if not now, then likely February, is pretty much on target. I
think at this stage, it is extremely unlikely that a deal will be struck before the election.
I think what Nancy Pelosi is doing is making clear by trying to strike a deal with Steve Mnuchin and then having it stopped by Mitch McConnell then
it is Senate Republicans who do not want to be a big deal.
That has been true for months. The House passed a bill in May. The Senate did nothing and hoped the issue would go away. So did the Trump
administration, frankly, but when the economy stalled because the COVID virus was resurging, interest picked up, but the Senate Republicans who are
now expecting Joe Biden to win are not eager to send a lifeline to the economy that Joe Biden is going to inherit.
There is some small chance that something could be done in the lame duck, but nothing on the scale that Pelosi and Mnuchin are talking about, I don't
think.
CHATTERLEY: John Harwood in Washington there for us. Thank you so much for that.
And our special coverage of the final presidential debate begins at 12:00 midnight, if you're in London, 3:00 a.m. in Abu Dhabi and 7:00 a.m. in Hong
Kong.
All right, let's move on. Tesla results electrify despite the pandemic. The company has reported its best quarterly profit yet and reconfirmed a high
target for this year's sales, or at least deliveries. Shares are up premarket.
Paul La Monica joins us now. Paul, a fifth straight quarter of profits and oh, boy, it's a tough delivery target, 500,000 cars, but they say they can
meet it. Talk us through with the numbers. What do you think?
[09:15:16]
PAUL LA MONICA, CNN BUSINESS REPORTER: Yes, I mean, Elon Musk, obviously, has been accused in the past of sometimes putting out targets for Tesla
that may not really be achievable, too pie in the sky, but to Musk's credit, the sales have been sizzling so far this year and it is possible
they could hit that ambitious delivery goal.
The key question, I think, for Tesla investors though, is how sustainable will the company's profits be on a long-term basis? It's great that they
are now generating net income for five consecutive quarters, but a big chunk of that is coming from that 400 million or so in credits that they
are selling to other auto makers or compliance with various carbon emission standards.
So that is something that I think investors are a little skeptical that Tesla's core sales -- you know, core auto business can be consistently
profitable.
CHATTERLEY: Yes, it's interesting, isn't it? The regulatory card here is a big part of the -- which is what everyone seems to be saying here as well.
What do we think, going forward, Paul? Do we think this ultimately means inclusion into the S&P 500 because there's a lot of people here are saying
irrespective of what the contributing factor here is in terms of the profit, some level of consistency here, at least, is what they need, at
some point in the future?
LA MONICA: Yes. To Tesla's credit, this is a company that has clearly shown that it is a leader in the electric car market, which is obviously
growing very rapidly. The revenue growth is there. They are diversifying because of other businesses that they are in. Obviously, remember, the big
Solar City deal that they did.
So I think that sooner or later, given the massive market value of this company, it would be foolish for S&P not to include it in the S&P 500. I
mean, it is already -- what -- how many times the size of the market value of the entire major U.S. automotive industry, it seems kind of silly to not
have it in this blue chip index.
CHATTERLEY: Yes, I mean, those regulatory credits are all part of the game here. You can purchase this, it pays you the money and Tesla takes the
money and then invests in factories in what -- its factories in Berlin and in Texas. That's the way it works.
LA MONICA: That's clear revenue.
CHATTERLEY: Yes. And they are up 400 percent year-to-date, that stock. Paul La Monica, thank you so much for that.
All right, the most ant-ticipated IPO of the year. Could it be the biggest ever, too? Jack Ma's Ant Group has won regulatory approval for a dual
listing in Shanghai and Hong Kong. It is expected to raise as much as $35 billion giving the financial giant a valuation of around $250 billion.
Sherisse Pham joins us now. Sherisse, did you see what I did there? The most ant-ticipated. Yes, I have to repeat it.
The great thing about this as well is that we get a sense of the numbers here. Talk us through what we know about this huge IPO.
SHERISSE PHAM, CNN BUSINESS REPORTER: That's right. That's right. And it might be named after a tiny bug, but this is really a huge company. And we
learned a couple little interesting things in the updated regulatory filings today. One is that they'll be splitting this IPO evenly between
Hong Kong and Shanghai.
Each of those exchanges will be getting about 1.67 billion shares to sell and that amounts to about 11 percent of Ant's total shares, post-IPO. Now,
we know that an Alibaba wholly owned subsidiary will be buying 730 million of the shares on offer in the domestic market, so about nearly half of the
shares that will be offered in Shanghai.
And Alibaba will also have the right to subscribe to additional shares so it can hold equity, equaling no more than 33 percent of the company. I want
to make sure I got that right.
So they've got the right to pretty much own a third of Ant, is what we're looking at from that perspective.
Now, but let's just take a look at some of the key dates that are coming up ahead for this, I do say, really highly anticipated IPO. We've got October
22nd and 23rd, that's today and tomorrow. Those dates are bookmarked for initial pricing, and then the offering announcement coming hard and fast
next week on Tuesday, October 27th.
Share subscription happening next Thursday, October 29th. Payment for subscribed shares following on Monday, November 2nd.
And then the key date we all want to know, when will the IPO happen? Basically Ant is saying, TBD. Ant saying that the company will be listed on
the Star Market as soon as it finishes issuing shares, presumably, it will list the same day here in Hong Kong as well.
[09:15:03]
CHATTERLEY: Wow. Can't wait for that. It's going to be fascinating to watch and a hot ticket for the Hong Kong Stock Exchange and of course, the
one-year-old Star Market in Shanghai as well. Sherisse Pham, thank you so much for joining us on that.
All right, still to come here on FIRST MOVE, backing Biden, 2016, Republican presidential candidate, Carly Fiorina and why she is crossing
party lines and what it is like to share a debate stage with Donald Trump.
And Southwest's earnings head south. The airline reports its biggest ever quarterly loss. We've got the CEO and we'll get the scoop. Stay with us.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to FIRST MOVE live from New York where U.S. stocks are set to pull back for a second day in a row. A stimulus storm,
nervousness ahead of tonight's presidential debate and charges perhaps that Russia and Iran are attempting to meddle in the upcoming vote.
Perhaps the cause of weakness or perhaps a half decent excuse, too. There's lots to consider.
New numbers also showing an additional 787,000 Americans filing for first- time jobless claims last week with little hope that new fiscal stimulus help will be coming along soon. Numbers did improve from previous weeks
though as California began reporting results after again after a multi-week pause and that adjustment matters.
That said, Fed Governor, Lael Brainard yesterday called lack of new fiscal aid, the biggest U.S. economic risk. In other words, an entirely
preventable self-inflicted wound. That's a great way to say it.
The muddled economic picture continues to weighs on financials, too. Many big banks are slumped since reporting their third quarter results last
week.
Julian Emanuel joins us now. He is Managing Director and Chief Equity and Derivatives Strategist at BTIG. Julian, great to have you with us on the
show. You say it clearly in your note that the debate may be in Nashville tonight between the presidential candidates, but it is the debate that is
going on in Washington, D.C. that matters for investors.
JULIAN EMANUEL, MANAGING DIRECTOR AND CHIEF EQUITY AND DERIVATIVES STRATEGIST, BTIG: Absolutely, Julia, and we would agree with Lael Brainard
a hundred percent. It is that if you don't get stimulus going through the system between now and yearend and we think that the likelihood of doing
stimulus after the election is a lot lower than perhaps the market is implying right now.
You know, you stand the chance of the recession coming back, obviously not the degree that we saw in the second quarter, but negative growth is
definitely something we do not want to see.
[09:20:32]
CHATTERLEY: Julian, you mean that the chances of getting some kind of an agreement enshrined into law between the presidential election and before
the inauguration is lower. You mean, we're going to have to wait perhaps almost a year before we see further action, if you have to wait until
February at the earliest?
EMANUEL: Well, look, again, the politicians over the last 24 hours have been talking about putting something together and then maybe having the
vote after the election and we would suggest that between the Supreme Court battles and what is shaping up to be a contentious election which is either
going to be unclear, disputed or both, the odds of actually making legislative progress, unless the market trades low enough so that it
becomes more imperative and the economic number continue to soften, we just don't see that happening. We don't think it's a realistic assumption.
CHATTERLEY: I mean, 2020 has proved, at least as far as aggregate stock markets are concerned that stock markets and investors can wait for that
stimulus until the beginning of next year. The problem is, Main Street, real-street, the real economy can't and you're talking about negative,
potentially, GDP numbers if we go back into recession.
How does that play out in terms of the stock market and what we see for investors? Because I know the point there as well, the banks are already
pricing trouble, a lot of it.
EMANUEL: Yes, the banks really are the only sector that are telling you that there is a higher probability of a recession for however brief a
period next year and our concern is, you know, the narrative had been, okay, well, if the virus clamps the economy down again, interest rates stay
low, people buy the work from home stocks: technology, FAANG, et cetera.
The problem there is those stocks have moved so much. They are so far ahead of any earnings potential next year that we don't see that that gives the
market room to run and when you combine it with the uncertainties, again, politically and with regard to public health, you know, that's the recipe
for, call it a 10 percent correction in the equity markets.
CHATTERLEY: Wow, I mean, as you say, it's a cliche, but it is a stock picker's market, certainly.
You also wrote and I quote, "Give me guidance," and actually, pointed out the fact that the guidance from companies in this earnings season yet again
perhaps outweighs in terms of stock market reaction, whether they hit or miss in terms of the numbers and that's coming through again.
EMANUEL: That's right. There's a large swath of Corporate America, various industries, companies of all market sizes that suspended their guidance
because of the virus and what we found is those that have reinstated their guidance, not only outperformed those who have not, but have outperformed
the S&P 500 in general.
So in a quarter where what we are seeing is that because stocks are so close to the all-time highs, and the percentage of companies that are
beating their estimates is very high like it was last quarter, that's not enough.
However, the companies that are daring to reinstate their guidance, we think, likely, will be rewarded.
CHATTERLEY: What's most important for the next six to 12 months, Julian? Is it vaccines? Is it earnings, given that you said stocks were already
over the skis in terms of the fundamentals here? Or the politics?
EMANUEL: I would say that the combination of the vaccine and the politics will drive earnings because if you look at it, expectation for next year is
that the more cyclical areas are going to have the higher earnings growth, but if we, as people interacting with the economy, don't have the
confidence to sort of set foot outside as it were, those cyclical areas likely would see the earnings growth expected and that will be a head wind
for the equity markets.
CHATTERLEY: Yes, I can't believe I haven't even mentioned COVID and rising cases of COVID-19. I think a lot of people are looking at what we're seeing
in Europe at this moment and particularly given the United States followed weeks after what we saw in Europe back in March.
The fear is that we are just weeks away from a similar spike, and we're already seeing it.
EMANUEL: Look, it is entirely possible. I think we expected a resurgence of the virus into the fall and winter season, but the positive spin on this
is that the combination of all these risk events, behind the fact that the Fed is likely to be very supportive going forward, and even if you don't
get stimulus now, you are likely to get it later with whatever government you end up with.
We think any selloff that you see in the near-term could be a very good opportunity for buying for what is potentially setting up to be a strong
2021 on the basis of those earnings growing.
[09:25:34]
CHATTERLEY: That's interesting. Jay Powell to the rescue as always. Okay, final question, Julian. Is the market priced for a Biden win and what
happens if Donald Trump surprises here and wins the 2020 election?
EMANUEL: I think it really depends on the make-up of Congress, okay, so if Donald Trump were to happen to win and for some reason then, and people
aren't really talking about this, but it's entirely possible, but Donald Trump could win and both the Senate and the House become Democratic,
obviously, the House is already Democratic, but if you had a Democratic Congress in its entirety and a Trump win, that could possibly be very, very
positive for markets.
Very unexpected, but very positive. The President would want his legacy to be getting something done economically and clearly, the Democrats have
shown a willingness to spend more in which the President has shown a willingness recently as well.
A Biden victory, that again, depends on the composition of the Senate. The market would prefer a Republican Senate, but history shows that when you
get a wave, whether it's red or blue, but if you get a wave, the markets tend to trade much, much better in the following year because something
will get done legislatively.
CHATTERLEY: Even if it means higher tax rates and higher corporate tax rates, it's complicated one, isn't it?
EMANUEL: That's right. That's right.
CHATTERLEY: Julian, great to have you with us. Thank you so much and we shall reconvene after November 3rd.
EMANUEL: Thank you.
CHATTERLEY: Julian Emanuel, the Chief Equity and Derivatives Strategist at BTIG.
The market opens next. Stay with us.
(COMMERCIAL BREAK)
[09:30:23]
CHATTERLEY: Welcome back to FIRST MOVE. You're looking at the opening bell there at the New York Stock Exchange and muted open for stock markets this
Thursday, appropriate perhaps as we head into tonight's presidential debate where we will have muted mics when necessary, too.
Stocks hanging in there overall, despite the uncertain outlook for fresh stimulus, and word that an additional 787,000 people filed for fresh
jobless claims last week. New jobless claims.
The NASDAQ and the S&P still less than five percent from record highs. I mean, they are tilting into positive territory in the early minutes of
trade, too.
Hard hit airlines continue, though, to bleed cash in the third quarter. British Airways owner AIG reporting a more than $1.5 billion loss. It is
slashing flight schedule by a further 10 percent for the rest of the year. That takes it down to just 30 percent of last year's levels to give you
some context.
In the United States, too, American airlines reporting a $2.8 million loss. In the meantime, Southwest lost $1.2 billion. The CEO of Southwest, Gary
Kelly will join us later in this hour to talk about what they are seeing.
In the meantime, let me give you a look at live pictures of the inside of the Senate Judiciary Committee. They have just approved Amy Coney Barrett's
nomination to the Supreme Court. The committee voted 12 to zero, setting her up for a full Senate confirmation vote for Monday. Ten Democratic
senators on the panel boycotted that vote as expected.
Now, a few hours from now, President Trump and Joe Biden meet for their final debate before the U.S. presidential election with 12 days to go until
Election Day.
More than 40 million Americans have already voted. That's equal to around 30 percent of the total votes cast in 2016.
Campaigns for Biden on Wednesday -- campaigning for Biden on Wednesday, former President Barack Obama delivered a blistering rebuke of President
Trump's handling of the pandemic.
(BEGIN VIDEO CLIP)
BARACK OBAMA, FORMER PRESIDENT OF THE UNITED STATES: Look, I get that this President wants full credit for the economy he inherited and zero blame for
the pandemic that he ignored.
But you know what? The job doesn't work that way. Tweeting at the television doesn't fix things. Making stuff up doesn't make people's lives
better. You've got to have a plan. You've got to put in the work.
(END VIDEO CLIP)
CHATTERLEY: Joining us now, Carly Fiorina, she is founder and chairman of Carly Fiorina Enterprises, former CEO of HP and 2016 Republican
presidential candidate.
Carly, fantastic to have you on the show. Thank you for joining us.
CARLY FIORINA, FOUNDER AND CHAIRMAN OF CARLY FIORINA ENTERPRISES: Great to be with you, Julia.
CHATTERLEY: I think we should start with the debate tonight. You know what it's like to be on the debate stage with president trump without mute
buttons, let's be clear. What's your advice for Joe Biden tonight?
FIORINA: Joe Biden cannot respond to everything that Trump says or does. Trump will be Trump, which is not helping him, I will say, these days.
Biden needs to be focused on what he wants to communicate and I think what he wants and needs to communicate most of all is his character and how he
will problem solve as a leader.
It's very easy to get distracted by Donald Trump. There are things that Biden will need to respond to, but not everything. The more the American
people take a look at Donald Trump, the polls suggest the less they like him.
CHATTERLEY: You know, it is interesting. That's a decision that you've made and as I mentioned, Republican background, former Republican
presidential candidate. I vividly remember reading the article in "The Atlantic" where you said, look, I'm going to vote for Joe Biden.
Carly, talk to me about that. What was it? Does it come more down to the person rather than the politics and the policy?
FIORINA: Let me say that I believe and have always believed that leadership matters. That character counts, particularly in a President of
the United States, and Donald Trump has failed every test of leadership during his tenure, and his character has become crystal clear.
And so my vote for Joe Biden is not only a vote for a leader and a man of character, humility and empathy, but also a vote for the soul of the nation
and the direction of the nation.
Let me also quickly say that I don't agree with all the Democratic Party's policies, but neither do I agree with all of the Republican Party's
policies, immigration to cite one example.
But what I believe in is leaders collaborate to solve problems and Joe Biden has demonstrated his willingness to collaborate with all sides to
actually make progress and solve problems and that's what we need our President to do now. Joe Biden needs to unite this nation and then work to
solve our very serious problems and address our opportunities and that can only be done if we are united and collaborating in a bipartisan way.
[09:35:48]
CHATTERLEY: Yes, you being united has to be considered a policy choice as well, I think at this moment. And Carly to your point, but we are three
months on from when you made that decision and the difference I think between then and now, is that we do have a greater sense of what those
policies look like. And you mentioned, there are policies on both sides here that you don't agree with.
Can you hand on heart say when you look at some of the policies particularly for the business sector and perhaps the impact on smaller
businesses in particular, if you're raising personal tax rates, for example, that the economy will be stronger under Joe Biden than perhaps it
would be under a continuation of President Trump?
FIORINA: Well, yes. I think the answer to that question is yes, because let's just start with the fact that the coronavirus epidemic is not under
control. In fact, as you well know, we are entering a very difficult and dangerous period.
And so, businesses of all sizes, but particularly, small businesses and working families are getting crushed, and Donald Trump seems to just want
it to all disappear. In fact, he has told us it will just disappear. We know it won't. So we'll just start with that.
Secondly, however, I do thing that both parties have not paid sufficient attention to small business. Small business is the engine of growth in this
economy. There are 100,000 small businesses that have closed their doors permanently since this pandemic began, and I do believe, based on what he
has said, that the relief packages and the economic policies that Joe Biden will pursue will be more helpful to small businesses.
And finally, if I can just add, Julia, you know, lack of access to quality education is an economic issue. Lack of access to infrastructure is an
economic issue, and those problems need to be addressed as well.
CHATTERLEY: Carly, that's such a great point and it is something I am also incredibly passionate about. Do you trust a Democratic-led government and
Congress to fix some of the blatant problems in the education system state by state? Because one could argue that those problems have been around for
a really long time and successive Democratic-led governments have not fixed these problems either?
FIORINA: Exactly. Well, look, let's be frank, Julia. Politics and politicians have failed over and over again on both sides of both parties.
It is partially why Donald Trump was elected in the first place because people were sick of the failures of the political class.
I will say, honestly, I think split government is usually more productive; and so if it were me, I would say a Democratic-led House and a Republican
Majority in the Senate and a Biden presidency would be ideal, however, I think it is possible that Donald Trump has become such a drag on the ticket
that Republicans will lose their majority.
And I think it is why you see Mitch McConnell racing the Supreme Court nominee through. I hope, I very much hope that Joe Biden as President of
the United States will understand that his job is not to be the leader of his party. His job is to be the leader of this nation and in that role, he
needs to tackle festering problems of education, of social justice, of the environment and yes, of the economy as well.
CHATTERLEY: Yes, you're the President of the people that didn't vote for you as well as the President of the people that did.
Carly, great to have you with us. Thank you.
Carly Fiorina, the founder and chairman of Carly Fiorina Enterprises.
FIORINA: Thank you, Julia.
CHATTERLEY: Thank you. Former CEO of HP and Republican presidential candidate. Great to have you with us.
All right, Trump versus Biden, oil versus renewables. The choice Americans face will shape the U.S. and the global energy industry for the future and
that's next.
(COMMERCIAL BREAK)
[09:42:50]
CHATTERLEY: Welcome back to FIRST MOVE. As the candidates gear up for the U.S. Presidential election debate in a few hours' time, one of the biggest
differences between them is energy policy and it's a pretty clear cut choice.
John Defterios is with us now to discuss. John, the Democrats here believe cleaner is better and it also can be more costly. What did you find?
JOHN DEFTERIOS, CNN BUSINESS EMERGING MARKETS EDITOR: That's an interesting way of putting it, Julia. There is a lot of shade, shall we put
it this way, between Donald Trump and Joe Biden, but when it comes to energy policy, I think the best way of saying it, there is a stark
contrast.
Donald trump likes to be number one in oil as you know, and thinks that climate change is a hoax. Joe Biden embraces the science around climate
change and even embraces the energy transition.
I'd like to call it black versus green. The traditional black gold versus new green tech. Let's take a look.
(BEGIN VIDEOTAPE)
DEFTERIOS (voice over): During the Trump era, oil remained king. U.S. production surged to a record of nearly 13 million barrels a day and the
President wore it like a badge of honor.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES: The United States is now the number one produce of oil and natural gas anywhere on Planet Earth.
(END VIDEO CLIP)
DEFTERIOS (voice over): This played well in oil and gas states in America's southwest, in the Rockies and as far north as Pennsylvania, in an
industry supporting nearly 10 million jobs.
(BEGIN VIDEO CLIP)
ROBIN MILLS, CEO, QAMAR ENERGY: That fits into this administration's world view, that were inclined to reduce regulations on the oil industry to
partly to allow the producers more over to also to gather political support from it.
(END VIDEO CLIP)
DEFTERIOS (voice over): The U.S. produce so much oil and gas, Trump was out to challenge Russia and Saudi Arabia overseas.
(BEGIN VIDEO CLIP)
MILLS: The export of oil and gas has been seen as a tool, a geopolitical tool, even a weapon. This concept of energy dominance.
(END VIDEO CLIP)
DEFTERIOS (voice over): That strategy of growth at all costs came crashing down when COVID-19 triggered an oil bust, taking down over 500 energy
companies with nearly $300 billion of debt.
This year's wildfires on the West Coast and hurricanes hitting the Gulf of Mexico raised awareness of the growing threat of climate change.
(BEGIN VIDEO CLIP)
JOE BIDEN (D), DEMOCRATIC PRESIDENTIAL NOMINEE: When Donald Trump thinks about climate change, he thinks hoax. When I think about it, I think jobs.
Good, paying union jobs that put Americans to work.
(END VIDEO CLIP)
[09:45:10]
DEFTERIOS (voice over): The former Vice President has pledged to not shutter U.S. shale. But the winds of change would blow in the direction of
renewable energy.
DEFTERIOS (on camera): A Biden presidency could accelerate what is known as the energy transition, away from fossil fuels. He is pledging $2
trillion to a Green Deal to speed up innovation and investment into clean energy.
Is this the election that defines the energy transmission?
Adnan Amin is the former Director General at the International Renewable Energy Agency in Abu Dhabi.
(BEGIN VIDEO CLIP)
ADNAN AMIN, FORMER DIRECTOR GENERAL, INTERNATIONAL RENEWABLE ENERGY AGENCY, ABU DHABI: I've talked to him personally on a number of occasions about
renewables. I know that he has a passion for this new technology, and the potential that it has, and the potential it has to create jobs and wealth
in the United States.
(END VIDEO CLIP)
DEFTERIOS (voice over): So too does Wall Street, with money flowing into renewable energy companies. In the last month, rising star Next Era topped
the market cap of the once mighty oil and gas giant Exxon-Mobil.
And when it comes to international policy, Trump was proud to pull out of the Paris Climate Accord in 2017, saying it was a job killer. Biden has
pledged to leap back in.
(BEGIN VIDEO CLIP)
AMIN: I think there is a very important signal, when we are facing potentially catastrophic changes related to climate in the near future,
that the United States leadership in technology and the political sense in bringing other countries along, but mostly from my point of view, and
inspiring others about what can be done is sorely needed today.
(END VIDEO CLIP)
DEFTERIOS (voice over): A high stakes election that will also define the fate of fossil fuels and clean energy.
(END VIDEOTAPE)
DEFTERIOS: And the world is watching very closely, Julia because of COVID- 19, we've seen countries within the European Union, China, and Japan, in the last 24 hours all announce their plans for net zero emissions by 2050
or before that. They are waiting to see after November 3rd and early 2021, if it is a Biden presidency when they go back into the global arena for
renewable energy and the climate change package from Paris.
CHATTERLEY: Yes, businesses carry on regardless. Cleaner is better, it just has to be.
DEFTERIOS: Yes.
CHATTERLEY: John Defterios, thank you so much for that.
All right, still to come, record loss and a plea for help. We speak to the CEO of Southwest Airlines. Stay with us. That's next.
(COMMERCIAL BREAK)
CHATTERLEY: All right, eight months into the pandemic, airlines continue to count the cost. Southwest reporting a record loss of $1.2 billion in the
third quarter. Although, it sees demand is up modestly since July, the company says numbers remain fragile until we get a vaccine.
Gary Kelly is the Chairman and CEO of Southwest Airlines and he joins us now. Gary, can you hear me? Yes? No?
I don't seem to have him. Nope. Okay. We don't have him. We will try and get him. Let's see if we can come up with something else. Let me see if I
can bring you around the world and bring you up to speed with some of the other stories that we are following.
[09:50:19]
CHATTERLEY: The Czech Republic tightening restrictions as it fights a dramatic surge in coronavirus cases. The country registered nearly 15,000
new cases in its latest update, a daily record.
Under the new measures, only essential business remains open and there are curbs on people's movement.
Nigeria's President calling for calm after violent protests rocked Lagos following the shooting of peaceful demonstrators. Several buildings were
set on fire including this TV station. Amnesty International says 12 protesters were shot and killed by Security Forces, Tuesday.
Thailand's government has lifted an emergency decree that banned protests saying the situation has been resolved. Last week, demonstrators camped
outside the Prime Minister's offices in Bangkok. The protesters have given the Prime Minister a three-day deadline to resign.
All right, voters across the U.S. aren't leaving anything to chance with this election, turning out early in record numbers to cast their votes with
more than a week and a half left until Election Day.
Early votes are up nearly 180 percent from the 2016 presidential election. Here's our Pamela Brown with more.
(BEGIN VIDEOTAPE)
PAMELA BROWN, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice over): With the election less than two weeks away, voter intimidation is coming to the
forefront. Election officials in Florida and Alaska went to the F.B.I. after dozens of people reported receiving e-mails threatening to vote for
Trump or else.
(BEGIN VIDEO CLIP)
RYAN KENNELLY, FLORIDA VOTER: I think calling it out and letting it be seen for what it is will hopefully encourage people to ignore it.
(END VIDEO CLIP)
BROWN (voice over): The e-mail was made to look like it came from a far- right group, the Proud Boys. The extremist group Trump failed to disavow at the last debate.
(BEGIN VIDEO CLIP)
TRUMP: Proud Boys, stand back and stand by.
(END VIDEO CLIP)
BROWN (voice over): But Proud Boys have denied involvement and a CNN analyst found the e-mails were actually sent in a sophisticated way, routed
through foreign servers.
More cries of possible voter intimidation in Miami. A police officer in full uniform wearing a Trump mask inside a polling place called out by the
mayor.
(BEGIN VIDEO CLIP)
MAYOR FRANCIS SUAREZ, MIAMI, FLORIDA: His actions have violated departmental policy and he will be disciplined.
(END VIDEO CLIP)
BROWN (voice over): And in Memphis, a poll worker was fired for asking voters to turn their Black Lives Matter shirts inside out.
(BEGIN VIDEO CLIP)
SUZANNE THOMPSON, SHELBY COUNTY ELECTIONS COMMISSION SPOKESWOMAN: This particular incident was the bad behavior of one poll worker.
(END VIDEO CLIP)
BROWN (voice over): Tennessee laws ban any clothing worn to polling places that endorses a political candidate or party. Social justice messages like
BLM are allowed.
But overall, early voting remains in high gear. More than 40 million ballots have been cast nationwide so far. It is clear many Americans have
been relying on the Post Office to deliver their votes. But as Election Day approaches, Michigan Secretary of State is encouraging voters to turn
ballots in personally to drop boxes or their county clerk's office if they can.
(BEGIN VIDEO CLIP)
JOCELYN BENSON, MICHIGAN SECRETARY OF STATE: There are a lot of uncertainties and variables with the Postal Service.
(END VIDEO CLIP)
BROWN (voice over): A new Post Office Inspector General report finds the Post Office never investigated how controversial cuts to service in the
summer would affect mail delivery.
(BEGIN VIDEO CLIP)
BENSON: My office used the CARES Act funding from the Federal government to install close to a thousand -- over a thousand drop boxes all over the
state for that very reason.
(END VIDEO CLIP)
BROWN (voice over): The Postmaster General who has defended the cuts as nonpolitical postponed the changes. But on-time mail delivery is still
suffering and triggering new lawsuits.
In North Carolina, an Appeals Court upheld the state's deadline to receive absentee ballots, nine days after Election Day. A decision Republicans are
signaling they will challenge at the Supreme Court.
The second win for Democrats, on Monday, the High Court handed down a ruling, allowing mail-in ballots in Pennsylvania to count if they are
received within three days of November 3rd.
BROWN (on camera): Well, given the issues with the Postal Service and how close we are now to the election, election experts say that your best bet
if you haven't already requested a mail-in ballot is to go vote in person, early.
Pamela Brown, CNN, Washington.
(END VIDEOTAPE)
CHATTERLEY: Pamela Brown there. And Southwest reporting a record loss of $1.2 billion in the third quarter. Gary Kelly, the Chairman and CEO of
Southwest Airlines. Gary, great to have you with us.
I am sorry we had connection issues. Very little time, but talk me through it and I know the most important thing is a plea to government for more
support.
GARY KELLY, CHAIRMAN AND CEO, SOUTHWEST AIRLINES: Well, thanks, Julia and, sorry for the connection problems but glad to be with you all.
Yes, it was obviously very affected by the pandemic and business is off close to 70 percent year-over-year, so that I think that's not new news.
But hopefully the worst is behind us. Things are improving in the fourth quarter.
I think we'll have better revenues. I think we'll have lower cost, and then obviously, we're hopeful that trends will continue.
But in any event, we have a long way to go before we get to a vaccine and herd immunity and then begin to see people behaving more normally in terms
of travel habits and, you know, Chairman Powell says that the economy is definitely in need of further stimulus. I agree with that and then within
that, I think it's very important that the airlines continue to operate.
[09:55:41]
KELLY: We are dependent upon our people to operate and so that support would be very meaningful in terms of sustaining jobs and providing service
into next year. I think that there's a decent chance that if we get the payroll support through March of next year, we will be in good shape to
survive all of this.
But yes, it is you know, obviously, a record loss and we're going to do everything that we can to mitigate those losses going forward.
CHATTERLEY: And I know you did everything you can to hold on to employees, too. It was a short message, Gary, but it was a powerful one, and we hope
you get the support you need.
Come back and talk to us soon, please.
KELLY: Thank you.
CHATTERLEY: And we'll have a longer conversation.
KELLY: All right. Thank you.
CHATTERLEY: Gary Kelly, Chairman and CEO of Southwest Airlines. Thank you, sir.
And that's it for the show. You've been watching FIRST MOVE. I'm Julia Chatterley. Stay safe.
Watch the debate tonight. And we'll see you next week. Take care.
(COMMERCIAL BREAK)
[10:00:00]
END
