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First Move with Julia Chatterley

Global Markets Monitor Worsening COVID Crisis; Biden Wins Arizona, President Trump Still Refuses to Concede; China Congratulates Biden on Election Victory. Aired 9-10a ET

Aired November 13, 2020 - 09:00   ET

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

[09:00:25]

JULIA CHATTERLEY, CNN BUSINESS ANCHOR: Live from New York, I'm Julia Chatterley. This is FIRST MOVE, and here is your need to know.

Acquiring Arizona. Joe Biden nets another state, President Trump not conceding.

China's congrats. Beijing's belated message to the President-elect.

And Disney pluses and minuses. The streaming success outweighing financial loss for the House of Mouse.

It's Friday. Let's make a move.

Welcome once again to FIRST MOVE this Friday. It's good to be with you on yet another day of both pain, but also promise in the global COVID crisis

and pride, too, in the scientific and healthcare communities whose vaccines, treatments and unfailing care continue to give us hope and

support, and we need it.

The United States recording its biggest ever jump in new cases to more than 150,000 people. Hospitalizations, meanwhile, have hit a fresh record high.

New cases in Japan, too, also at a record level at this stage.

If we take a look at what's going on in Western Europe, strict new containment measures seem to be slowing the spread. Curbs on activities we

know do seem to work. But of course, they come at a high economic price.

And throughout it all, the hope for a vaccine to save as the head of the Health and Human Services Agency promises that all Americans who want to

get a vaccine will be able to get one by April, but the big question remains, what about the rest of the world? What about poor nations, too?

It's a critical question and we'll keep asking it.

In the meantime, market sentiment has swung all week between longer term hopes and the grim present day reality. Futures as you can see are higher

after Thursday's one percent pullback for the Dow and the S&P.

Europe at this moment is mixed. Well, it lifting as well, Disney helping lift the Dow after its streaming numbers roared like the lion in "Lion

King." All the details, the pluses and minuses as I described them coming up on the show.

In the meantime, take a look at Asia. Chinese stocks taking a hit and after the Trump administration moved to block U.S. investment in firms suspected

of having ties to the Chinese military. Just one more issue that President- elect Biden will inherit in his win here, looking increasingly irrefutable.'

Let's get to the drivers. President-elect Joe Biden is projected to win Arizona, flipping a long held Republican stronghold. And as I mentioned,

President Trump still refusing at this stage to concede.

CNN's Joe Johns joins us as always. Joe, great to have you on the show. I think we have to illustrate the importance here of what flipping Arizona

means. We can tie in the debate is to the President's criticism of John McCain, his wife, of course, his widow Cindy McCain choosing to back Joe

Biden here in particular.

But Joe, his lead now looks unassailable.

JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT: It certainly does. As a startup today, he was ahead by something like 11,400 votes, which leads CNN

to project him the winner in Arizona, and it is extraordinary and striking, especially because Joe Biden is only the second Democrat since 1948 and

Harry Truman to win the State of Arizona.

A little bit of that is about demographics in the state, including the increasing number of Latinos who are voters there and a lot of progressive

voters. But it also says a lot about the President. This is a real rebuke of a Republican President in that state.

And I can tell you personally, from traveling with the President to Arizona this cycle, it was pretty clear that while there was strong support for him

reflected in the numbers, there was also concern, particularly among women voters I talked to in the state about the President's style, his gruffness,

his anger, his tweets -- all of which put some people in a quandary about whether to vote for him.

The result is apparently, Joe Biden is the winner -- Julia.

CHATTERLEY: And Joe, you also made a great point within that, too, about how close the margins are, even with what we're seeing here and that was

the case in many of these big battleground states.

Where are we, as far as recounts are concerned of allegations of fraud that are coming from the White House and the Republican side? What are we

looking at in terms of anything concrete?

[09:05:11]

JOHNS: For starters -- for starters, Arizona, no recount there because of the law, and it all depends on state law. So there are a couple of places

around the country that were close where the President is entitled to recount like the State of Georgia, that's going to be a hand recount.

But the problem with all of this is if you talk to elections officials, even lawyers, and they look closely at this, in most cases, recounts only

give the candidate asking for that recount a few hundred extra votes, and President Trump would need thousands and thousands of votes.

In fact, nationally, if you look at the numbers, Joe Biden won this election by almost double the votes, it appears, or maybe more than Donald

Trump did in 2016. So it seems very hopeless; just as hopeless as some of the legal challenges this administration or this campaign has tried to

bring to bear in some of these states.

Lawyers say they are not going to bear fruit. And the fact of the matter, the President continues to tweet sort of baseless allegations about the

election in various states suggesting he won when the facts and the numbers just contradict that -- Julia.

CHATTERLEY: The President not backing down yet, it seems. Joe Johns, thank you so much for your context.

All right. After days of silence, China congratulating the President-elect Joe Biden. The Foreign Ministry says, quote, "We respect the choice of the

American people." It came shortly after President Trump signed an Executive Order banning Americans from investing in companies it says are controlled

by the Chinese military.

Ivan Watson is live in Hong Kong for us. Ivan, clearly this White House is not backing down as far as Executive Orders related to China are concerned.

Do we think there is a coincidence of timing here? Or was it a coincidence, do you think?

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: I would -- that would be purely speculative. Certainly this week, the Trump administration,

President Trump himself signed this Executive Order banning investment into companies that are allegedly owned by the Chinese military, and the Chinese

government doesn't like that at all.

And during today's Foreign Ministry briefing, the spokesperson spent a lot of time just slamming that Executive Order, claiming that you know, that

this is an abuse of national power and it is driven by political motives. Also slamming U.S. Secretary of State Mike Pompeo, who in an interview

asserted that Taiwan is not part of China, which kind of crosses one of Beijing's red lines.

But that official also changed the position that he had stated on Monday where he had stayed neutral on the question of President-elect Biden's

electoral victory. And now step forward, and specifically congratulated, as he put it, Mr. Biden and Miss Harris.

So China now joins a growing list of both allies and rivals of the U.S. that are congratulating President-elect Biden, even as the current occupant

of the White House, and many of his allies continue to avoid accepting the results of the 2020 presidential election -- Julia.

CHATTERLEY: Yes, there is still an element of cautiousness in there. I was just looking at the statement, " ... at the same time, we understand that

the outcome of this U.S. election will be determined in accordance with U.S. laws and procedures." So they recognize the ongoing challenges, I

think, too.

Does this election change anything? Because I think and we've talked about this before, the Chinese leadership will be looking at this situation and

weighing up, calculating, even with Executive Orders in the last week, how things will evolve under President Biden compared to what we've seen with

President Trump? Does much change?

WATSON: Well, I think the short answer is it appears no, and that's what we're seeing in Chinese state media is that they recognize in print that

suspicion of China is a bipartisan position right now in the U.S., shared by both Republicans and Democrats. And so, they are not predicting that

there will be a dramatic improvement in really what is kind of the worst tension that we've seen between Beijing and Washington in decades.

However, we do hear statements in various Chinese state newspapers, for example, that predict at the very least, communication between Beijing and

a Biden administration will take on a more professional tone than what we've seen over the course of the last four years with President Trump

blasting out tweets and policy apparently and China having to try to decipher what these tweets mean misspellings and poor grammar included.

That said, you know, President Trump who was elected in 2016, claiming that China was raping the U.S. when it came to monetary policy, while bashing

China on the one hand and embarking on trade wars, he also played up his close relationship -- personal relationship with Xi Jinping.

[09:10:24]

WATSON: To the best of our knowledge, the last time he spoke directly with him was at the end of March, when they had a phone call discussing the

early days of the coronavirus pandemic, and blast to the short past, Trump afterwards tweeted, quote, "We're working closely together. Much respect."

A lot has changed in the last couple of months.

Xi Jinping sent a get well message to Trump and the First Lady last month when they both contracted coronavirus. Biden has met with Xi Jinping when

he was Vice President, but he campaigned on a pledge to be tough on China. And instead of going it alone, America first, the way Trump has conducted

his foreign policy, he has pledged to create a coalition of allies to put pressure on China and that is a calculation I'm sure Beijing is aware of

right now.

CHATTERLEY: Absolutely. So perhaps less confusion in terms of the interactions, but the need to address some of the asymmetries remains a

pressing issue. Ivan Watson, great to have you with us. Thank you so much.

The head of the U.S. Federal Reserve issuing a stark warning on the COVID- 19 recovery. The economy we knew before the pandemic is gone forever, and what replaces it will be much more challenging for many. Just take a

listen.

(BEGIN VIDEO CLIP)

JEROME POWELL, FEDERAL RESERVE CHAIRMAN: We're not going back to the same economy. We're recovering, but to a different economy, and it will be one

that is more leverage to technology and I worry that that is going to make it even more difficult than it was for many workers.

(END VIDEO CLIP)

CHATTERLEY: Christine Romans joins me now. Christine, this is our exact fear. People will get left behind and people got left behind after the

financial crisis, too, and we sort of forgot about it and it was revealed by the COVID crisis that cannot happen again.

CHRISTINE ROMANS, CNN BUSINESS CHIEF BUSINESS CORRESPONDENT: Uneven. I mean, the recovery will be there, no question and it will be uneven. And

you and I have been talking for weeks now about Main Street and Wall Street.

And Wall Street is looking ahead to 2021 when there's mass production of vaccines and an economy that is beginning to grow again, and people getting

on airplanes and going to restaurants and booking cruises.

But that's a long way away for the real people who are suffering right now and who may be replaced in the workforce that comes back by automation, by

technology and by telework. You're talking about frontline workers.

You're talking about all kinds of industries that employ women and minorities disproportionately, already low-wage workers who are going to

have a hard time finding their way into the next -- the next iteration of the American economy.

I mean, it's almost like paging Andrew Yang. He has been talking -- he ran for President on this very kind of concern that that there will be people

left behind by a highly technical, highly automated marketplace that on its surface is doing well. It's a growing economy with the stock market that's

up, but really under the surface is leaving people behind.

CHATTERLEY: Yes, and we thought we had two to five years to address some of the skills gaps, and we just collapsed that time with the shift that we saw

over the last nine months effectively.

One of the other things he said that stood out to me, the economy risks being less productive, because many women, in many cases have been forced

to give up jobs, to take care of children, not in all cases, but in in many cases. He also said that children are missing out on education.

So, it's creating and exacerbating the inequality gap that we already have and this really struck me.

ROMANS: You know, here's America's top economist, essentially -- the Central Bank Chief essentially highlighting exactly in real world terms

what all of us are feeling and what all of our families are talking about.

You know, I mean, I go on a run in my neighborhood and the other moms are talking about whether they're going to be able to make it into 2021 or how

they're going to get some help for the kids and the homework because they're not going back to school.

I mean, these are the top of mind conversations that are disrupting and animating Americans lives, and he said it right there that that will make

this country less productive, because we are so consumed really by managing coronavirus.

And isn't that what it really is? That our efforts and energies have been diverted into managing coronavirus first, and then everything else after

that. It's really remarkable and tells you just how profound this pandemic has been on almost every aspect of our lives.

CHATTERLEY: Yes, and we could substitute the United States of America for many other countries around the world that are going through the same

thing. This is a global issue.

Christine, great to chat with you. Hopefully, we'll do something more about it to support people.

ROMANS: Yes.

CHATTERLEY: Christine Romans there.

Now, while Powell was speaking, COVID cases climbed even higher. The virus shattering infection records across the United States as Adrienne Broaddus

reports.

[09:15:03]

(BEGIN VIDEOTAPE)

ADRIENNE BROADDUS, CNN CORRESPONDENT (voice over): All across the country, states are struggling to get the pandemic under control.

Nationwide, more than 67,000 Americans are currently in the hospital with coronavirus, the highest number since the beginning of the pandemic. And

Thursday, 18 states reporting record hospitalizations.

(BEGIN VIDEO CLIP)

ALEX AZAR, HUMAN AND HEALTH SERVICES SECRETARY: We need you to stay safe now because I want you to get to that point where we pull through this.

(END VIDEO CLIP)

BROADDUS (voice over): A new projection from the Institute for Health Metrics and Evaluation now predicts the country could see more than 2,200

deaths a day from the virus by mid-January, and the death toll could reach nearly 439,000 by March 1st, if behaviors don't change.

After beating down its curve in the spring, Michigan is now facing a dire situation. It reported more than 7,300 new cases Thursday and a test

positivity rate of more than 10 percent.

(BEGIN VIDEO CLIP)

GOV. GRETCHEN WHITMER (D-MI): This is the worst week of covered we've ever had, and two weeks from now, we are going to see our numbers continue to

climb without significant action by the people across our state.

(END VIDEO CLIP)

BROADDUS (voice over): And Wisconsin reporting more than 8,000 new coronavirus cases on Thursday. Concern growing that hospitals are at or

near capacity.

(BEGIN VIDEO CLIP)

DR. RYAN WESTERGAARD, CHIEF MEDICAL OFFICER, WISCONSIN DEPARTMENT OF HEALTH SERVICES: I believe we're getting to the point where hospitals are strained

and are likely to run out of staff before they run out of physical space.

We've heard of some hospitals that have no ICU beds available as of today.

(END VIDEO CLIP)

BROADDUS (voice over): In Colorado, 85 percent of ICU beds are currently in use after the state recorded its highest number of cases and

hospitalizations. Utah announcing the state has run out of ICU beds entirely.

Here in Chicago, the mayor issuing a stay-at-home advisory encouraging residents to only leave the house for essentials and to cancel gatherings

and Thanksgiving travel.

(BEGIN VIDEO CLIP)

MAYOR LORI LIGHTFOOT (D), CHICAGO, ILLINOIS: This is literally a matter of life and death. That if we see you violating these rules in any way, we're

not going to hesitate to take action.

(END VIDEO CLIP)

BROADDUS (voice over): And with hospitals getting overwhelmed, the increasing number of deaths is taking a toll on healthcare workers like

Jenny Glazer.

(BEGIN VIDEO CLIP)

JENNY GLAZER, NURSE, RUSH UNIVERSITY MEDICAL CENTER: When you're having to -- wiping them down and putting them in the body bag. It is -- you know,

it's gutting almost, and like I said, afterwards, you zip them up, they go out and you're on to the next.

(END VIDEOTAPE)

CHATTERLEY: Adrienne Broaddus there reporting for us there.

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

Coming up, Japan congratulates President-elect Joe Biden, we'll be looking at how the U.S.-Japan relationship may evolve. We'll be talking with the

consumer products giant, the CEO of Suntory.

And also don't spill your drinks in this.

[VIDEO CLIP PLAYS]

CHATTERLEY: Those are some big seat belts. Fasten them up for the Virgin Hyperloop. We're being promised the superfast future of travel, but how far

away is it? That's coming up. Stay with us.

(COMMERCIAL BREAK)

[09:21:13]

CHATTERLEY: Welcome back to FIRST MOVE live from New York where futures are higher on the final trading day of the week. Dow component, Cisco, a maker

of networking and video conferencing tools is set to rise at more than seven percent after they raised forecasts. This firm continues to ramp up

work from home infrastructures, which is clearly helping their results.

It's been a profitable week so far for the Dow the S&P as investors weigh up the COVID crisis against positive vaccine news. We're clearly in a

transitional period with many conflicting lines for investors to deal with.

I think the bottom line is that the stay-at-home trade will be with us for a while yet.

Now, the CEO of Japanese food and drinks giant, Suntory has welcomed Joe Biden's victory in the presidential election. Suntory is one of the world's

biggest consumer goods companies. Its brands range from things like Orangina to Jim Beam.

Its global presence makes it particularly exposed to the COVID-19 recovery worldwide, and of course, to international politics, too.

I'm very excited to say joining us now, Takeshi Niinami. He is the CEO of Suntory. He is also an adviser to the Japanese Prime Minister, too, so

wonderful to have you on the show once again.

It's clearly a complicated time, I think, for democracy in America and for leadership in America. How do you see relationships around the world and

the U.S.-Japanese relationship changing under a President Biden versus a President Trump?

TAKESHI NIINAMI, CEO, SUNTORY: I do believe the President-elect Joe Biden had a great conversation with the Prime Minister at this time to strengthen

the ties between the two countries.

So I definitely believe, the relation would be much better than before at the time of President Trump and business leaders welcome President-elect

Biden. So this is a great moment.

And plus, we would like to expect that the U.S. will go back to the multilateral approach today, global, I mean, at this stage. So that will be

fantastic.

CHATTERLEY: What does that mean for you as the leader of a big business who has a big market in Japan, but also have a big market in the United States?

Define what you mean by better, particularly from a business perspective?

NIINAMI: Well, trade issues has been so concerning between even Japan and the United States, and on top of that, we have a big business with the E.U.

And I expect that the President-elect and his team will release the gate between the E.U. and the United States of like, producing the levies and

the deal goes -- and there has been that tit and for tat trade war between the E.U. and the United States of America. It's really concerning.

But I anticipate that that will be lifted sooner or later. That's my anticipation.

CHATTERLEY: It's interesting in the statement that you put out congratulating President-elect Joe Biden, you put one sentence which caught

my attention immediately, and I just want to show our viewers what you said.

You said, "I believe it's inevitable that the U.S. global leadership will wither in the long term. Japan must continue deepening the U.S.-Japan

alliance, but be ready itself for a leaderless era." Do you think the world will be leaderless or do you think a nation perhaps when we see the

challenges and have done for the last four years, China taking a far bigger leadership role because that will have a very different impact on the world

and we're already seeing that.

[09:25:15]

NIINAMI: I don't think China wants to take responsibility for the leadership role in the world. China is not ready, and China is not willing;

however, yet, because of the huge social divisions of the U.S. will take the leadership like President-elect the Biden toward inner looking more and

more.

So because of that, the U.S. will be declining in terms of the leadership role in the world. I hope that will not happen, but because of the current

the huge, huge divisions in society and because of the almost close to 50 percent of the people who supported President Trump that means a lot.

And we want the United States to rejoin the TPP. That's the best strategy. But we are not so hopeful that that will happen.

CHATTERLEY: You're asking all the questions that I think the nation has to ask about the division of votes here, and actually how close it was in

terms of votes.

I do want to ask you, though, as a CEO of a big Japanese company, obviously, we're watching the COVID crisis in your country as closely as

what's going on in the United States and around the world.

The last time you were on my show, you were saying that you were worried that 20 percent of restaurants would close and it was an astonishing

number. Are you more or less concerned, in light of what the country is witnessing today?

NIINAMI: Still, I think more concerning. I think more restaurants and bars will go under, I'm afraid to say because of this serious infection. And a

third wave is -- we are prepared by overall, but still, it is affecting the business of the bars and the restaurants.

I'm sorry, but that will happen.

CHATTERLEY: Very quickly, sir, how are you advising the Prime Minister? What further action is required?

NIINAMI: Oh, definitely PCR testing and antigen testing much more. That should be more available to any patients to be. And while Japan is a little

prepared in terms of the hospitals and spaces to those people if they have got to be hospitalized.

But having said that, I think the government has to support those in need like low-income households for the time being. And plus, Japan has to

mobilize the laborers to the growing -- I mean, our industries like DX and I think those that are growing though, we should not keep the labor in

declining industries.

CHATTERLEY: Yes, wise words, sir. Short term and medium term for many nations. Fantastic to have you on the show. Come back soon and talk to us,

please. Takeshi Niinami there. The CEO of Suntory.

Fantastic to chat with you as always, sir.

All right, the market opens next. Stay with us.

(COMMERCIAL BREAK)

CHATTERLEY: Welcome back to FIRST MOVE, and U.S. stocks are up and running this Friday.

We are higher across the board in early trade, long term hope winning out, I think against the growing alarm over spiking COVID cases in the United

States and of course in Europe.

The U.S. recording more than 150,000 new infections for the first time ever on Thursday.

U.S. labs are now warning that surging demand for tests will lead to longer wait times for the results.

But the House Secretary Alex Azar is promising vaccines will be available to seniors by January and to all Americans by April. It's a global story

though, and in the meantime, we only have therapeutics to help lessen the suffering, no extra help coming from Washington, which means deadlocked on

stimulus.

The White House seemingly walking away from the bargaining table with Democrats once again.

All right, so let's move on. HVAC air control system maker, Carrier, is tackling the coronavirus pandemic with new cold storage technology and data

tracking. It is expected to help extend the shelf life of crucial COVID-19 vaccines.

Carrier also introducing new air purification technology for healthy buildings. It cleans and removes air potentially contaminated by the virus.

Joining us now, President and CEO of Carrier, David Gitlin. David, fantastic to have you on the show. You well and truly are at the heart of

all the technologies that are essential to fighting the COVID crisis at this moment.

Let's talk about your cold storage technology and exciting for me, too. The data analytics that are tied to that that you provide.

DAVID GITLIN, CEO AND PRESIDENT, CARRIER: Yes, thank you, Julia, for having me. You know, you look at having a pandemic, unlike this world has seen in

over a hundred years, and it's never been more critical that we play our role in being part of the solution.

You look at what the scientists have accomplished at the pharmaceutical companies in a year, which should take three to five years. Now, it's going

to be our job to safely distribute those vaccines; and one of the criticalities is the cold chain.

Most pharmas need to be distributed at two to eight degrees C, which is the case for three of the five pharmaceuticals here, but two of the five

require deep freeze, which adds a whole new set of complexity, one at minus 20 degrees, and one at minus 70 degrees.

So what we've done is establish a partnership with AWS, because data is going to be critical to the safe logistics that's going to be required

here.

So if you picture a pharmaceutical going from production all the way through to the end administration, it goes through a series of handoffs

through a series of modes of transportation.

What we need is all of that cold data that's put into one single source which is a Cloud-based data lake that we've established with AWS and once

you aggregate that data, now you can put it to use to ensure the safe and effective transportation of these pharmaceuticals.

So you get information like has the door of the van or the trailer been left open for too long? Have you pre-cooled event the trailer? You would

never put a cold beer in a refrigerator you're plugging in for the first time.

What you can use data to do is say, hey, look within an hour of going for a pickup for a new vaccine, have you pre-cooled the trailer?

So data is going to be critical to looking at weather patterns and a variety of other elements to use, AI and machine learning to ensure the

safe and effective transportation of these pharmaceuticals.

CHATTERLEY: Actually, that's fascinating. You just mentioned tracking weather patterns as well. So, if you can track what the weather is like in

a certain position, you can perhaps reroute where you're taking the vaccines or make decisions on who you deliver to when, in order to maximize

your ability to keep them in appropriate storage conditions. This is quite phenomenal.

Talk to me about your Carrier pods, too, because this is also part of it and the use of dry ice to maintain conditions where you need to keep them

at super cold temperatures.

[09:35:31]

GITLIN: Yes, you can actually see an example over my shoulder here, which is we've come up with a mobile pod, that's a 40-foot container that's

actually cooled with a Zero G or 1GWP refrigeration unit.

So, it's good for the environment, it's a mobile pod, and it can cool the environment to minus 30 degrees C.

So if you take the Pfizer vaccine, which is in a self-contained box that has dry ice in it. Remember that clock is ticking to ensure the effective

distribution and then administration of it.

If you can put that box in a container that's minus 30 degrees C, you reduce the sublimation by 50 percent, which is another way of saying you

can double the life of the vaccines that are in that dry ice contained box by 2X.

So what we want is to get these boxes out universally, and this is very much as you said, a global phenomenon.

When you are seeing global cases, 500,000 to 600,000 a day, when you look at places like Africa and India, they just do not have the cold chain

infrastructure.

The United States spends 300 times per capita more on cold chain than India, and you get 1.4 billion people in India without a cold chain

infrastructure, so the only way we're going to ensure a safe and effective distribution of this vaccine is putting a series of these types of pods

throughout the country to ensure they have a cold chain infrastructure in places like India, in places like Africa, and frankly, across the United

States.

CHATTERLEY: The hairs on my arms just rose as you were talking about the differences there between what we have here in the United States and in

places like India. It's great that this technology will be available.

I mean, David, I just want to illustrate for our viewers as well. You're currently protecting $9 billion worth of perishables that travel over the

ocean each day, just to give people a sense.

I want to move on and talk about air purification, too, because I do think we've learned lessons in COVID of simply being indoors. One of the stats

you've provided, Americans spend 90 percent of their lives indoors and we're seeing that with rising COVID cases, I think over the winter months

here.

Talk about that technology, too, and healthy buildings, not just now, but going forward.

GITLIN: I appreciate, Julia, you transitioning to that because at Carrier, we're in the middle of these two critical ecosystems: healthy, safe and

sustainable buildings and cold chain solutions. And on buildings, what has happened now, and you heard it from some of your previous guests is that

people are now afraid to go indoors.

When people go to restaurants, they'll say I'll only go to a restaurant if I can sit outdoors, and what we need to do is give people confidence that

they can go safely into indoor air environments.

So what we've done is we've started by introducing a series of new products that provide very high levels of filtration down to 0.3 microns that can

protect homes. They can protect office buildings, K through 12 schools.

So we have mobile filtration units that you can plug in and provide HEPA filter levels of filtration.

The next is ventilation, you want a good flow of air throughout the building. You want to bring in as much outdoor air as possible. So we've

now worked on customized solutions to provide safe ventilation and indoor air flow, and then the ultimate, which we're working on now is giving

people visibility.

So before you make a restaurant reservation, you can see does it have a safe and healthy indoor air environment? And people used to take the indoor

air environments for granted.

You would never ask the question before you drop your kids off at school: is that a safe indoor air environment? Now, we're going to give people

visibility, so they not only feel comfortable, they have confidence at going back indoors.

CHATTERLEY: Yes, it's such an important point, and I think about it every single time I go indoors now, quite frankly. I know you think it's going to

be in the future, a $10 billion business because we're all going to think more going forward.

David, I have very little time left. But I do want to ask you, are you talking to governments, working with governments on the cold chain storage

technology here? Because it's an additional cost, I think that we didn't factor in when we were pumping money into vaccine research. Is this work

being done a sufficient scale?

GITLIN: Yes, I have never seen a situation where public-private sector have come together in such a collaborative way. You know, look, this is an issue

that transcends politics.

We all need to come together. We've worked with the C.D.C., the distribution companies like McKesson, and the pharmaceutical companies. And

like I said, it's a global phenomenon, so we are working with states and local communities here, but we're working with governments overseas as

well.

This is truly a global pandemic and it requires a global response.

CHATTERLEY: David, come back soon. This is just the beginning of our conversations. I can tell. David Gitlin, President and CEO of Carrier.

Thank you for joining us and thank you for you and your team's work.

GITLIN: Thank you, Julia.

CHATTERLEY: All right. Thank you. After the break, strap yourselves in for a rail revolution. Imagine being slingshot through an airless tunnel at a

thousand kilometers an hour. Nail biter perhaps.

Well, we'll see. The CEO of Virgin Hyperloop, next.

(COMMERCIAL BREAK)

[VIDEO CLIP PLAYS]

CHATTERLEY: Just wow. Los Angeles to San Francisco in 43 minutes. Chicago to Pittsburgh in 30 minutes. The Hyperloop promises train travel in record

time and it's a step closer to reality after successful tests with human passengers as you saw there for the first time on a track near Las Vegas.

It wasn't full speed, but you can see the reaction. It was big smiles. Eventually, the Virgin Hyperloop will reach 1,000 kilometers per hour three

times faster than high speed rail and 10 times faster than conventional rail, but with the same G Force and it promises a low environmental impact

than other forms of travel.

In this competition, Virgin has beaten Elon Musk with the first passenger tests.

Jay Walder is CEO of Virgin Hyperloop who must be a very happy man. Jay, I'll say it again. Wow. This is a huge moment.

JAY WALDER, CEO, VIRGIN HYPERLOOP: Smiles at ear to ear, Julia and I thank you for having me this morning.

CHATTERLEY: Talk to me about how you decided who actually got the chance to test this.

WALDER: So look, this is really, I think the dawn of a new era of transportation and we had already done about 400 tests at our test facility

in Las Vegas and we had proved that Hyperloop works.

But the question that we kept getting was, is it safe? Is it great for people?

And what I love about what we did this year past weekend is that we definitively answered that question and the answer is yes, it is safe. It

is smooth.

[09:45:08]

WALDER: You saw the video of our colleagues who were in the pod. These are real people, Josh Geigle, our CTO and co-founder; Sarah Lucien, our

Director of Passenger Experience. Real people in a pod with a smile ear to ear. And as Sarah said, she wouldn't spill a drop of coffee.

What are we looking at here? We really are looking at new transportation. This isn't incremental. This is a giant leap right now.

It is super-fast, as you said, a thousand kilometers an hour. It's high capacity. It has the ability to be able to move people and goods at the

same time. So we have both mobility and logistics.

It's on demand and flexible. So it feels much more like ride hailing than the way that we think about the tyranny of train schedules, and then one of

my favorite parts, frankly, is that it's green. This is a technology that will not pollute the air that we breathe.

And so you know, we really haven't had the opportunity to move forward on new technologies, like this was so long, and now that time is here.

CHATTERLEY: Yes, I mean, it's like something out of "Star Trek." In fact, it's better. But as you said, and you made this comparison to ride hailing,

this is like ride hailing on steroids, quite frankly.

But you have to build the infrastructure, unlike ride hailing, which can use existing roads.

Jay, how long before we see this being adopted into even the smartest of cities that we have around the world. We are a long ways, still surely from

what we are seeing today, as exciting as it is, and actually seeing this adopted into smart cities of the future?

WALDER: Hey, I don't think we're that long away. I mean, I think that, you know, the point I make about it is, we have now shown that the technology

works. We've shown that it's safe. We're really moving to commercial application right now.

I think you'll be seeing the technology before the end of the decade. And I think you'll see the first applications of this being around and I think

that the change that this will unleash, the ability to take journeys that we've come to know as hours, and literally turn them into minutes is going

to be incredibly powerful.

We've had people reaching out to us from all around the globe. The time is actually now. We're ready to go.

CHATTERLEY: You know, it is interesting, what we've been through with the pandemic. We've had a sense of what not driving around so much does and

instantly, in the space of a few weeks, the health of the globe looked better, the waters were cleaner, and the air was cleaner.

At the same time, we are working from home. We're in cities less and people are saying maybe that will be the way going forward to a greater extent.

How has that changed? Investment potential, do you think? How this will be used going forward?

And do you think it accelerates or it has slowed the timeline to getting to that point where you say, hey, we'll be there by the end of the decade?

WALDER: I actually think that the pandemic and it's obviously a terrible pandemic, but I think it's also unleashing some new imagination for us. I

think it's giving us the ability to shake off the cobwebs, and I think we're realizing a few things out of this.

I think we do realize that mobility and logistics are really important to us. We want to see people. We want to be able to move around. We care

desperately about what's happening with the environment. And your point, Julia is so right.

I sat in my apartment in Los Angeles and kept looking out at the air and it was amazing. Why give that up? Let's have the way that we can go forward in

that way.

And I think it's -- I think there really is something about spurring the imagination that's coming out of this right now that's actually helping us

and you know, people are looking for the new normal. They're looking to say, let's not just rebuild, but let's evolve. Let's find the ways that are

going to make everything better for us.

CHATTERLEY: Yes, I should be so enthusiastic, but I can't help myself. This is like space travel to me. It's just exciting and I can't wait to see what

you do.

Jay Walder, CEO of Virgin Hyperloop. Congratulations once again. That is a huge moment. Thank you for joining me.

WALDER: Julia, thank you so much.

CHATTERLEY: Thank you. All right, when we come back, the streaming wars get turned up another notch. We've got fresh numbers from Disney Plus, where

the House of Mouse stands, next.

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[09:51:26]

CHATTERLEY: Disney Plus, one of the few pluses in another tough quarter for the entertainment giant, the streaming service netting over 73 million

subscribers in the first year alone. That stat combined with better than feared earnings, lifting shares by nearly two percent, not quite now,

slipping as we progress through the trading session.

Frank Pallotta joins us now. Frank, it's all about the plus in Disney Plus, and just try not to look at the rest of the business which is challenged

clearly by the pandemic.

FRANK PALLOTTA, CNN MEDIA REPORTER: Yes, I mean, look at it this way, their blockbuster movie studios had delayed their films until next year. Their

Parks and Resorts had to close and then reopen with new health guidelines and lower capacity.

Yet, as you said, the stock was doing pretty well last night after the earnings. Why is that? It's because Disney Plus had a great quarter and

honestly a really great year, which tells you everything you need to know about Disney right now. It's a streaming company. And that's what the

investors are hoping it is going to become more of as we move on into the future.

CHATTERLEY: Yes, it makes sense. It makes perfect sense to me. Talk to me about California, though, because you also -- and you pointed to it -- the

challenges of theme parks not only managing them in the COVID outbreak and amid the COVID outbreak, but for California, it's become a real problem

because it's simply not been able to reopen.

PALLOTTA: Yes, I mean, look at it this way. Around the world, Disney's parks have mostly reopened. Walt Disney World, arguably its biggest park,

and its most important park has been open since the summer. Shanghai has been open.

But the one part that hasn't really opened is Disneyland which was the original Disney Park and this is because of, you know, Disney will say that

the State of California has stopped them from reopening. California will say that they are not ready to open theme parks yet.

So it's this kind of like, two factions really just keep staring at one another to figure it out. Disney called Gavin Newsom, the Governor of

California out on its earnings call last night basically saying, you know, we want to reopen, we want to be able to show how well we've been doing in

these other parks. I don't know why we're not being able to.

And the fact that it hasn't opened has really hurt Disney's bottom line, especially in their Parks and Resorts Division, which had massive layoffs

in September, 28,000 people lost their jobs. I mean, well, got laid off.

CHATTERLEY: Yes, I mean, it's no wonder that the activist have been saying to Disney, guys, you need to think about the dividend and just pump that

money that you saved from the dividend back into Disney Plus, because this is the jewel in the crown right now. And of course that's what we saw, too.

PALLOTTA: Yes, that's what happened last night. So Dan Loeb, an activist investor last month basically said that, you know, he wanted to take the

dividend and put that back into Disney Plus, into content production.

And last night Disney pretty much announced that and said that they are going to suspend their dividend in the upcoming quarter because they want

to put more money into Disney Plus and because obviously, the coronavirus pandemic.

But anyone who is looking at this company right now is totally into that idea because Disney Plus is no longer the future of this company. It is the

present of this company and has been a lifeboat for them through a really awful year, arguably the worst year in the nearly hundred year history of

the Walt Disney Company.

CHATTERLEY: Yes, it's a tough one. Is that "Indiana Jones" behind you, Frank, by the way?

PALLOTTA: That is "Indiana Jones." That is now awesome property because -- I'm sorry -- basically, urban it's like I live inside of a Bennigan's. So

you know, this is what it looks like.

I have lots of wall art. I just want all the women watching at home to know I have other wall art than "Indiana Jones."

CHATTERLEY: That's the best. Noted. Frank, thank you for that.

PALLOTTA: But this is three rocks. This movie rules. I don't care what anybody says. It's my favorite movie.

[09:55:11]

CHATTERLEY: I love him, too. I love him, too. I was checking. All good. Frank Pallotta, thank you.

All right. If you didn't know today of all days, Friday the 13th is World Kindness Day. That's what we'll focus on.

In this tweet, the Dalai Lama says it's time to think about other people's problems and we need to be at one with humanity. Here are five ways to be

kind: call an old friend, bake for neighbor, volunteer time for something, reuse and recycle and wear a mask.

I have to say in my case, don't bake for the neighbor. That would be the biggest kindness.

Now, finally, a high tech message of hope in Seoul, South Korea after another tough week in the COVID-19 crisis. Hundreds of drones took to the

skies Friday evening in a dazzling synchronized light display.

The government calling is a measure to give comfort and joy to citizens during the crisis. And to thank them for helping stop the spread.

Beautiful images there.

All right, that's it for the show. I'm Julia Chatterley. Stay safe this weekend and we'll see you next week.

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[10:00:00]

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