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First Move with Julia Chatterley
AstraZeneca Releases Promising Data On COVID-19 Shot; Millions Travel For Thanksgiving Despite COVID-19 Surge; Quarantine Free Travel Between Hong Kong And Singapore Suffers A Delay. Aired 9-10a ET
Aired November 23, 2020 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:16]
JULIA CHATTERLEY, CNN INTERNATIONAL ANCHOR: Live from New York, I'm Julia Chatterley. This is FIRST MOVE and here's your need to know.
Three is a charm. AstraZeneca, the latest pharma to report vaccine success.
On the move. Millions of Americans set for Thanksgiving travel despite COVID records.
And bubble burst. Quarantine free travel between Hong Kong and Singapore suffers a delay.
It's Monday, let's make a move.
Welcome once again to FIRST MOVE. Great to be back with you as we applaud the stunning achievements of scientists and researchers all around the
world working to save lives, unite families and help end the pandemic.
As I mentioned, breaking news from AstraZeneca and Oxford University today show their COVID vaccine has an average 70 percent efficacy and in certain
cases, a 90 percent efficacy rate. Now, now of this has been peer reviewed, but at this stage, it is looking comparable in certain cases there with
vaccines from Pfizer and Moderna, yet critically, it is far cheaper to produce, being sold at cost and only needs ordinary refrigeration,
therefore making it perhaps a viable vaccine for use in developing nations, too.
We'll discuss shortly. Vaccine vitality meanwhile, helping inject some positive sentiment across global markets and stock markets specifically
will once again see more rotation into names that have been beaten up and therefore will benefit when we get to the point of the greater economic
recovery.
European stocks are mostly higher, meanwhile despite economic activity data for the Eurozone falling to six-month lows. Why? Of course, well, amid the
recent tightening of restriction measures there, it is a reminder of how critical vaccines will be to help economies recover, but of course, that's
the destination and we also need to focus on the journey.
In the meantime, analysts increasingly worried about the short-term economic hit in the United States as new cases and hospitalizations remain
at records.
JPMorgan, in fact, now projecting a negative on percent GDP print for the first quarter of next year. The first Wall Street firm, in fact, to raise
the prospect of a double dip recession. It says vaccines won't help economies bounce back until the spring. All I can say is, roll on 2021.
Let's get to the drivers. We begin with the exciting news from AstraZeneca Trial data showing its vaccine is on average, 70 percent effective in
protecting against coronavirus, a specific dosing regime in the trial brought that rate up to 90 percent.
I am very grateful to say Anna Stewart is here now because there will be people raising eyebrows there, completely confused.
Anna, explain what happens with these different efficacy rates. What do we need to understand specifically?
ANNA STEWART, CNN REPORTER: So that headline figure seemed pretty disappointing, didn't it? Seventy percent efficacy, which is actually
pretty good for some vaccines, but if you compare it to the one developed by Pfizer-BioNTech and the one by Moderna, well, they were both above 90
percent.
However, you've got to delve a little bit further into these initial results from Phase 3. They did different types of doses and in a subset of
participants, around 3,000 people, they received half a dose and then four weeks later, a full dose. Now, for them, efficacy was 90 percent and that
is the good news.
Also very important to know that nobody that received the vaccination had any severe case of COVID or hospitalizations. That was also good news.
So AstraZeneca are planning to send this to regulators as soon as possible all around the world to get this delivered and distributed to people.
CHATTERLEY: Anna, and I mentioned it very briefly at the top there, what we need to understand is the relative difference in cost and also the
refrigeration required for this vaccine when we compare it to the likes of Pfizer and BioNTech and Moderna, in particular.
STEWART: And it is baked into how much they can make as well because they are planning to produce three billion doses and actually, that was before
they reduced the first dose by a half. So this could be even more than that.
That is more projected doses than Pfizer's and Moderna's combined, just to give you an idea with supply chains right around the world.
As you said, it's a much cheaper vaccine, between $4.00 and $5.00. It is going to be made at cost in perpetuity for low and middle income countries
and for the period of the pandemic for everyone else.
Refrigeration, this is just a normal sort of older technology vaccine, I guess. It is called a viral vaccine. It doesn't need to be kept at ultra-
cold temperatures. Two to eight degrees Celsius is just fine, so a normal fridge will do and that will really help when it comes to distribution.
That combined with all of the different manufacturer and supply chains around the world, if this vaccine. If this one gets approved, this is a
vaccine that can be used right around the world. This would go a long way to ending the pandemic -- Julia.
[09:05:26]
CHATTERLEY: Yes, seven billion people, approximately or at least 70 percent of them, assuming a hundred percent efficacy in order to get herd immunity,
that's the number that we have to keep thinking about here as well.
I should mention at this stage as well, this is just press release in the same way that we got from Pfizer and we got from Moderna, so we have to
wait for complete and full and peered reviewed results, but we are getting excited at this stage.
What next, Anna? What can you tell us potentially as well about the F.D.A. conversations with the regulators here in the United States?
STEWART: Well, conversations will continue now with all the regulators. Of course, this has been going on for some weeks and months now and with Phase
3 under way in the U.S. still, they're actually looking to roll out more of this half dose and then a full dose several weeks later.
So that will give them more data because I think the subset of 3,000 participants is perhaps a little bit small, and I think with the results
that we saw today, overall, it was all good news but if you look at the share price, I think some investors are a little bit concerned or cautious
going forward.
CHATTERLEY: Yes, I think when you compare, and it's a great point, Anna, the efficacy rate, the average efficacy rate with what we saw from Pfizer
and Moderna, you'd understand perhaps investors are a little bit disappointed here.
These are great numbers and it is early data, as you said, interim results and we'll wait and see what the complete picture gives us.
Anna Stewart, great job. Thank you so much for that.
All right, coronavirus cases continuing to soar in the United States ahead of the Holiday weekend. That as millions plan to travel for Thanksgiving as
Adrienne Broaddus reports.
(BEGIN VIDEOTAPE)
ADRIENNE BROADDUS, CNN CORRESPONDENT (voice over): It is the rush home for Thanksgiving during the coronavirus pandemic with travelers packing
airports over the weekend, ignoring warnings from the C.D.C. urgings Americans to stay home this year.
According to the T.S.A., over two million passengers went through checkpoints at U.S. airports Friday and Saturday. That's the most since the
early days of the pandemic, which Dr. Anthony Fauci says is concerning.
DR. ANTHONY FAUCI, DIRECTOR, NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES: You're in a crowded airport, you're lining up, not everybody is
wearing masks. That puts yourself at risk.
One of the things we're really concerned about is that as we get into this Thanksgiving season, you're not going to see an increase until weeks later.
Things lag.
BROADDUS (voice over) Some people choosing to wait in lines hours to get tested before the Holiday, but health experts warn a negative result does
not mean that it's safe to see friends and family.
DR. ASHISH JHA, DIRECTOR, HARVARD GLOBAL HEALTH INSTITUTE: A single negative test just isn't enough and you have to really be careful. That's
why this Holiday Season, we've decided as a family not to do anything and just stay in our household, which I think is really unfortunately the only
safe thing to do over this Thanksgiving.
BROADDUS (voice over): Coronavirus-related deaths have increased in at least 41 states in the past week, and many hospitals are already
overwhelmed by patients, but doctors saying it will only get worse.
DR. MEGAN RANNEY, CNN MEDICAL ANALYST: We're already running out of nurses and respiratory therapists. We are terrified and we really can't plead
strongly enough with Americans to spend Thanksgiving at home.
BROADDUS (voice over): The surge in new cases causing Los Angeles County to enforce stricter measures. Beginning Wednesday, both indoor and outdoor
dining at bars and restaurants will be closed. This as the head of the White House's vaccine efforts says one could be available in just a few
weeks.
Pfizer submitting an application to the F.D.A. Friday for Emergency Use Authorization of its COVID-19 vaccine.
DR. MONCEF SLAOUI, CHIEF SCIENTIFIC ADVISER, OPERATION WARP SPEED: Our plan is to be able to ship vaccines to the immunization sites within 24 hours
from the approval. So, I would expect maybe on day two after approval, on the 11th or the 12th of December.
BROADDUS (voice over): But even with the prospect of a vaccine starting to roll out in a few weeks, health experts say it's necessary to take the
coronavirus seriously.
DR. SCOTT GOTTLIEB, FORMER U.S. FOOD AND DRUG ADMINISTRATION COMMISSIONER: There's light at the end of the tunnel right now. Try not to be the person
who gets infected in the last two or three months of the acute phase of this pandemic. We need to just get through a very difficult period right
now.
(END VIDEOTAPE)
CHATTERLEY: So that's the backdrop. It is also crunch time for President Trump's hopes to remain in the White House after the inauguration on
January 20th.
Key states, Michigan and Pennsylvania are set to certify their election results today. John Harwood joins us now.
John, all eyes on what is going to happen, specifically, I think, in Michigan, perhaps more than Pennsylvania, and the two Republicans on the
Board of Canvassers.
Explain the relevance of what this certification means and what then happens if they don't certify this result.
[09:10:10]
JOHN HARWOOD, CNN WHITE HOUSE CORRESPONDENT: Well, Julia, there's a series of ministerial steps that are normally done as a routine matter after you
have an election.
When you have a presidential election or election for Governor, you count the votes, then you have some bodies, the canvassers at the county level
and also at the state level who then certify what the results were.
Clear outcome in Pennsylvania. Joe Biden won. Donald Trump lost. It was three percentage point in the margin, 150,000 votes cast.
But what's happened is that you have a President who has the emotional maturity of a small child and who is willing to corrupt any institution to
serve his own interest.
He has the Republican Party as his hostage because he has a grip over their base and they are scared of him. So because Republicans are scared that the
President will turn on them, some of them are resisting the obvious conclusion that Joe Biden won, and that has filtered down to some of these
ministerial bodies like the Canvassing Board.
So the Republicans, initially in Wayne County, which was the county with Detroit which has a large number of African-American voters who favor
Democrats, that's the source of pressure that Republicans are putting on.
They are suggesting that the highly black Wayne County is somehow corrupt because they voted for Biden.
They initially declined to certify. They had a deadlock on their Canvassing Board, it is two Republicans, two Democrats and then finally, the
Republicans relented because the facts were so clear. Now, they're wobbling again because again, they are concerned about pressure from the President
and this filters down to the party across the country, and that has caused some doubt about this immediate next step.
There is no doubt about the ultimate outcome, Julia, and you mentioned in the intro about President Trump's hopes for remaining in office. He has
zero hopes for remaining in office, but what he is trying to do is hurt Joe Biden in the process.
He is raising money through his defense team for his future political endeavors and he is simply unwilling to acknowledge the embarrassing fact
that he lost the election and it's going to get dragged out for a while.
I don't know if that's going to happen here in Michigan today. I don't think it's going to happen in Pennsylvania where he suffered a complete
defeat in a court in Pennsylvania, throwing out his lawsuit, but the rest of us just have to wait and watch and see when Republicans are finally
willing to say, okay, enough of this, we're going to move on.
CHATTERLEY: Yes, and that's the people around and senior Republicans, when they turn around, they go actually, we just need to move now and perhaps
accept the result.
Very quickly, John, what's going on with Trump's legal team? Because there seems to be quite a public spat and the distancing from one of the most
senior members of the President's legal team, someone who had been peddling conspiracy theories and accusations of fraud, but despite being asked to
provide evidence, has not yet done so. What's the situation with the legal team?
HARWOOD: Well, I mentioned before that Trump has the emotional maturity of a small child. He also has the legal team of a small child.
It's been one embarrassment after another from the sort of keystone cops, group of lawyers. They don't have any evidence. They are offering wild,
made up fables in court and the judges throw them out.
So when the judges throw them out, they have a press conference and cite them. One of the members, Sidney Powell, former federal prosecutor is
saying things so obviously crazy that even the other inept members of the Trump legal team are distancing themselves from her, so there's a bit of
internal infighting.
You know, again, when your case is so weak and you don't have any evidence, ultimately, it's going to tumble in on people who are nominally part of a
profession like lawyers. You have a bar license and you've got to make arguments in court, the arguments get thrown out. Ultimately, the thing
falls down.
We just don't when it's finally going to collapse and melt on the floor.
CHATTERLEY: Well, certainly, I was going to say, mixed metaphors but certainly, fractures are appearing and some definite melting or thawing out
over the weekend. We shall see. John Harwood, thank you for those explanations because I think for most of the people watching this, it's
just quite frankly, bewildering. Thank you, sir, as always.
All right, failure to launch. The Hong Kong-Singapore air travel bubble is delayed following a spike in COVID infections in Hong Kong. Our Kristie Lu
Stout has all the details.
(BEGIN VIDEOTAPE)
KRISTIE LU STOUT, CNN INTERNATIONAL CORRESPONDENT: On Monday, the city reported 73 new cases of the coronavirus, the highest number since August.
Of the 73 new cases, 55 were locally transmitted. That may not seem big compared to the U.S. or Europe, but it is big for Hong Kong, a city had for
weeks reported a steadily low number of cases.
Health officials have also noted that the number of untraceable local cases has been on the rise, raising concerns for silent transmission change in
the community.
[09:15:19]
STOUT: As Hong Kong sees a surge in new infections, its much anticipated travel bubble with Singapore has been suspended for two weeks.
The travel arrangement due to begin on Sunday and allows people to travel between the two places without the need for quarantine. There had been so
much hope resting on the bubble to revive business and tourism, but given the spike in coronavirus cases, the travel bubble, as well as hopes in Hong
Kong for any return to normalcy are on hold.
(END VIDEOTAPE)
CHATTERLEY: Being incredibly cautious there. Kristie Lu Stout reporting.
All right, let me bring you up to speed now with some of the other stories making headlines around the world.
The Saudi Foreign Ministry is denying a historic meeting took place between Crown Prince Mohammed Bin Salman and Israel Prime Minister Benjamin
Netanyahu, but an Israeli official speaking on Israeli Army Radio said the two did hold secret talks in Saudi Arabia on Sunday calling it a quote,
"incredible achievement."
Hong Kong dissident Joshua Wong and two other pro-democracy activists are facing up to three years in prison after pleading guilty to charges
relating to organizing a protest outside of police headquarters last year.
Before entering the courtroom, Wong said "We will continue to fight for freedom."
All right, we're going to take a break here on FIRST MOVE. But still to come, a shot against vaccine resistance. Could a $1,500.00 check be the way
to get everyone inoculated?
And it is not over yet. Cinema will survive the COVID-19 pandemic, says CEO of IMAX. He joins us later on in the show. Stay with us.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to FIRST MOVE live from New York where we are looking at another vaccine vroom for U.S. majors on news that the
AstraZeneca-Oxford University COVID vaccine has an efficacy rate of up to 90 percent in some cases, 70 percent on average.
The news coming after Pfizer and Moderna's blockbuster late stage results, too. Those results were released on a Monday as well, so we are calling it
a Medicinal Monday now. All these vaccine news has helped lift the Dow by more than 10 percent so far this month with the S&P and NASDAQ as you can
see, not far behind over 8.5 percent.
[09:20:23]
CHATTERLEY: Now, Dr. Anthony Fauci says the goal of hitting COVID-19 herd immunity could be reached, quote, "reasonably quickly if enough people get
the vaccine." The challenge, of course will be to convince people to take the vaccine at a time when millions around the world are resistant to even
wearing masks.
Former U.S. Congressman and 2020 Democratic Presidential hopeful, John Delaney has an idea for the United States. He said in a tweet last week,
quote, "Pay everyone $1,500.00 to get the vaccine. It's a stimulus check and a big vaccine incentive rolled into one." Call it a shot to both the
arm and the wallet there for John Delaney, I am pleased to say, he joins us now.
John, great to have you with us. It's a case of killing two birds with one stone, two things actually that the United States and other nations around
the world need: stimulus support and the vaccine, too, to get us back to normal. That's the idea.
JOHN DELANEY (D), FORMER PRESIDENTIAL CANDIDATE: You said it perfectly, Julia. I mean, we have two needs right now. The American people are
suffering, and we've had this negotiation over this relief bill which has gone on way too long, and the simplest thing to do to help people is to
give them a check like we did last spring, but if you combine that check with an incentive to get a vaccine, as you said, two birds, one stone.
And it's been proven that these financial incentives really matter. In India, a whole bunch of studies have been done showing, for example, that
when you incentivize families to get their children vaccinated by giving them food like lentils and other things, vaccination rates went up 600
percent.
So, this will work. Financial incentives matter and you can tie these things together. You can help the American people, and you can get a higher
percentage of the country vaccinated faster, and that will save lives and get us out of this pandemic sooner. So, you know, I think it's a great
idea.
CHATTERLEY: I mean, this nation, the United States suffers from a high degree of what we call anti-vaxers in this country and especially with this
vaccine. We haven't have the same kind of information to say look, we're doing this quickly, but we are doing this very safely.
There seems to be an information gap here. Are you worried that actually, if you don't pay people and incentivize them to take it, at least in the
United States, we are going to struggle to a get to a point where we have herd immunity and enough people taking the vaccine?
DELANEY: I do worry about that. There's been so much controversy, unfortunately, over this vaccine, and public distrust in this vaccine is
very high level, despite the fact that there is no scientific basis for that.
We see it with the flu vaccine. The flu vaccine, which is free in most situations, you know, only about half of the country actually takes it. So
in some ways, free is too expensive. If you really want to get 75 percent of the country vaccinated, I think you have to provide more incentives.
And with the news today that we now have our third vaccine that appears to work to very high levels, we may have a fourth or fifth by the end of the
year, what that means is that there is concern how long it would take for the vaccine to be available is not going to be as big of an issue as we
thought.
Because if there are four or five vaccines, then those four or five companies' ability to produce the vaccine on a combined basis will create a
lot more vaccine doses available than we thought.
So now, it comes down to simply making sure as many people get it as possible. And I don't think anything does that better than a pure financial
incentive and a terrific by-product of that is we do what we have to do anyhow or we should be doing anyhow, which is providing direct cash relief
to the American people.
So, it is kind of a win-win, two birds with one stone, however you want to think about it. It's a very straightforward idea that will get more people
vaccinated, and that will save lives and allow us to get back to normal much faster.
CHATTERLEY: Is there an ethical concern here, John, that the most financially stretched people may be forced to give their children, when it
becomes available, to give the vaccine themselves even if they don't trust the science or they are skeptical simply because they are desperate for the
money? Can we make that argument?
DELANEY: No, I don't think you could because that argument you could make if you don't think the vaccines were safe. Right?
I believe based on the process that it has gone through that these vaccines are safe. People should take them.
The top leading scientists in the world are all encouraging everyone to take these vaccines. So, I'm very confident that the vaccines are safe. So
we're certainly not incentivizing people to do something that is not in their best interest and in fact, as we've seen with COVID, one of the great
tragedies of COVID is that certain communities, low-income communities, people of color have been disproportionately hurt by this pandemic.
That's because unlike other people who could basically stay home and Zoom to work, so many people in these communities actually had to go to work.
They will benefit the most from people getting the vaccine.
[09:25:25]
DELANEY: If you want to help struggling communities, if you want to help low income communities, if you want to help communities of color as it
relates to this pandemic, then we should be working to get as many people vaccinated as possible.
So, I don't think there's ethical concerns because quite frankly, I believe in the science. I believe in the Dr. Faucis of the world and all of the
other leading scientists who are working on these vaccines who are assuring us that they are safe.
CHATTERLEY: What feedback have you had and I'm talking from the politicians, from the lawmakers that you speak to here -- what's the
possibility, do you think, of President-elect Joe Biden, of Congress coming together and going, actually, this is a great idea and this is the way to
get to herd immunity?
DELANEY: Well, you know, it is interesting ever since, you know, I've been thinking about this idea and then I randomly tweeted it, like we all
randomly tweet things and I think it became the top 100 tweet of the day when it came out and I've had dozens of requests for interviews and to
write op-eds about it, lawmakers reached out to me.
So sometimes, simple obvious ideas, because let's face it, this is a pretty simple obvious idea. Hey, let's pay people to get the vaccine. Well, that
will work. More people will get the vaccine. I think everyone gets that right away.
I could see it definitely working its way into the next relief legislation, because I think people get it.
First of all, people, you know, lawmakers, both Democrats and Republicans are actually in favor of direct cash payments in the next stimulus bill,
right? That is, in many ways, the most bipartisan aspect of the stimulus bills that we've done and then I think Democrats and Republicans really
want the American people to get vaccinated, because they know that vaccines don't end the pandemic, people actually getting vaccinated ends the
pandemic.
So we're in a situation now where we are seeing lots of vaccines become available, or soon available, and so now we have to zero in on the notion
of, how do we get as many people vaccinated as possible? And there's no question that this will accomplish that goal. So yes, I'm optimistic on it.
CHATTERLEY: What about a mandate? A vaccine mandate? Very quickly, John, I have about 30 seconds. Are you for it?
DELANEY: Yes, that's not hard to do. I think this is a better approach.
CHATTERLEY: Yes. I was going to say, this is the alternative. The better alternative, in your mind.
DELANEY: And I think if we want to seize the nods of their heads, this is yes, this will work.
CHATTERLEY: Yes. Incentive structures here is better.
DELANEY: And it is better.
CHATTERLEY: Yes, I know, I hear you. Thank you so much for joining us and we look forward to the op-ed. Thank you for that.
John Delaney there. Thank you, sir.
All right, the market opens next. Stay with us.
(COMMERCIAL BREAK)
[09:31:01]
CHATTERLEY: Welcome back to FIRST MOVE. U.S. markets are up and running on this Holiday shortened trading week and we see green arrows for both value
and growth stock, so pandemic winners and losers.
This, as AstraZeneca and Oxford University report promising late stage data on their COVID vaccine. The S&P beginning the week, less than two percent,
in fact, from record highs, but it is not just about stocks.
The news giving a lift to both oil and U.S. Treasury yields on expectations that the economic growth will strengthen once vaccines are rolled out. A
bit of a reality check though there on oil. Brent still down 30 percent year-to-date.
In the meantime, the dollar pulling back versus less defensive currencies, a continuation of last week's trends too.
Meanwhile, therapeutics are also in the news this morning. The F.D.A. is granting Emergency Use Authorization to Regeneron's antibody treatment for
COVID. The one, of course, if you remember that was used to help treat President Trump.
Regeneron shares solidly higher in early trading, too.
Now, one company that has become synonymous with the dramatic shift to digital payments and e-commerce during this pandemic is PayPal. It has seen
a record growth in the number of people using its payment system. The company has also been helping small businesses throughout the pandemic,
too, it has distributed loans and grants as part of the Paycheck Protection Program here in the United States and beyond.
And then there's cryptocurrencies, too. The recent announcement that PayPal will allow to pay with digital assets like Bitcoin, as Bitcoin itself
surges to a near record high.
Dan Schulman, President and CEO of PayPal joins us now. Dan, wow, you and your team have been incredibly busy. Great to have you on the show.
I think from your latest results, the stat that stood out to me, more than 10 percent of your merchants today have joined PayPal just in the last six
months alone. You've seen incredible growth.
DAN SCHULMAN, PRESIDENT AND CEO, PAYPAL: We have. We've seen almost 35 million new consumers and merchants join our platform in the last six
months.
But if you think about it, Julia, the entire world is moving towards digital. It's not an exaggeration to say that we've seen an acceleration of
anywhere between three and five years in the penetration of online commerce in perhaps the last three to six months.
And so the entire world is moving towards online. People are uncomfortable going into stores and they are gravitating towards online and I think
that's going to obviously going to play out in this year's Holiday shopping season as well.
CHATTERLEY: It's quite fascinating what you say about this sort of acceleration we've seen and that time that we have skipped as a result of
the pandemic.
Has this resulted in the United States playing catch-up to some degree? I mean, the e-payment system is far more developed in Asia compared to what
we have in the United States.
SCHULMAN: Well, I think if you look around the world and PayPal operates in about 200 countries around the world, you see different regions of the
world are at different places.
In fact, some developing countries have leapfrogged a whole generation of financial services. They've gone straight to using their mobile phones as a
payment system as opposed to using debit or credit cards.
And so depending on where you are in the world, digital payments have developed in different ways. But I would say right now, across the world
without question, there is an explosion of digital payments.
Volume on our platform has reached all-time highs. Last quarter, our volume was almost a quarter of a trillion dollars and we grew that volume at 36
percent.
And so you can clearly see that the number of people who are now shopping online has gone up tremendously.
In fact, this Holiday Season, the predictions are that people between 18 years old and 55 years old, that 75 percent of them will spend all or at
least half of their shopping online, and that's a tremendous movement from people going in store to now shopping online.
[09:35:36]
CHATTERLEY: I mean, these are incredible numbers, Dan. You know, I've spent most of the show talking about vaccines and when we'll get to herd immunity
in the United States and beyond.
Do you think those kind of numbers are sustainable once we get into a sort of post-COVID or a greater vaccinated world, or will behavior revert back
perhaps to some degree to what it was before?
SCHULMAN: Yes, I think that's a great question and I think my conversations with CEOs of industries around the world, whether it be the healthcare
industry, higher education, entertainment and especially CEOs of retailers, is that post the vaccine, and maybe a post pandemic world, we're not going
to go back to what was. We'll kind of leapfrog into a new normal.
And the new normal will take advantage of all the things that we've learned in the past six to 12 months. It's interesting the pandemic basically
accelerated trends that were already occurring, but it fast forwarded them rapidly.
And so, the rise of digital payments, the rise of using your smartphone to pay for not just things online, but also when you're in the store makes a
ton of sense because there's a lot more value added to both consumers and merchants when that happens.
And so I think what you're going to see is people taking the best of what occurred during the pandemic in terms of using technology and then combine
it with now a post-pandemic world where we can be out more in the world and that blurring of online and offline will continue to accelerate.
CHATTERLEY: I mean, I could keep you talking about this for the next half an hour, but I want to change topics now and talk about -- and it's
actually very much tied to this, what we've seen in cryptocurrencies as well and your announcement that you'll allow account holders to use digital
assets like bitcoin for example to make payments.
Just talk to me about the kind of volumes that you are seeing because you're being credited or accused of fueling the rise that we've seen,
particularly in Bitcoin. But other digital assets, too, I have to say.
SCHULMAN: Yes. I think if you think about the digitization of industries, as I mentioned, the same thing is happening in financial services. Anywhere
between 40 percent to 70 percent of consumers want to use cash less, they want to move to forms of digital payment. So think about that.
Paper money is slowly but surely going away and what will replace that? Well, what will replace that are all forms of digital currencies. Those
digital currencies that could be any one of a number of cryptocurrencies, including Bitcoin, Ethereum and others.
And also, as we talk to regulators and Central Banks around the world, there's no question in my mind that it's just a matter of when and how, not
if, that Central Banks will start to issue forms of digital currencies as well.
And so our move into the space of accepting digital currencies is basically understanding those trends and trying to position ourselves to help shape
that future where both Central Banks will be more digital currency players as well as forms of cryptocurrencies will move from being just asset
classes that you can invest in, but actually can increase their utility by utilizing that cryptocurrency as a funding instrument to do everyday
commerce.
And I think once we bolster that utility, you'll start to see more stabilization of these different crypto currencies and a slow increase in
value over time.
Of course, today, there's still investments and they can go up or down, but our move into the crypto space working hand in hand with regulators was to
bolster the utility of all cryptocurrencies and digital currencies.
[09:40:10]
CHATTERLEY: I've read that you owned Bitcoin yourself. Do you still own bitcoin and to your point, which I think is a great one, this balance
between the utility value, the transactional value versus the store value you are holding as investment, Dan, why do you hold digital assets in
Bitcoin, if you still do?
SCHULMAN: Well, I'm a believer that the world is moving towards digital and that forms of cryptocurrency, like for instance Ethereum that are built on
more modern technology that can move money faster and may be less expensively can put on top of the movement of that money things like smart
contracts, can add utility to a payment.
And I think it's -- when we start to move in cryptocurrencies, digital currencies issued by Central Banks, all under a regulatory framework, have
more utilization than just being an asset class. That's what I really think you're going to start to see, that move more into the mainstream and as I
look out into the near future, one, two, maybe three years out, that's a trend that we will definitely see.
CHATTERLEY: Yes, it's fascinating. Dan, I've run out of time with you and you have to come back and talk to me soon because you've been doing some
incredible work analyzing the income of your waged employees, I know, and your entry level employees and try to make them able to save and do more
financially with their lives.
Come back and talk to me specifically about this piece because it's so important and you're doing great things as a business leader. Come back
soon, please and talk to me about that.
SCHULMAN: Thank you so much, Julia. I look forward to that.
CHATTERLEY: Likewise. Dan Schulman, President and CEO of PayPal.
Up next, a vaccine could be a game changer for the film industry says the CEO of IMAX who joins us next to explain how and why. Stay with us.
(COMMERCIAL BREAK)
[09:45:18]
CHATTERLEY: Welcome back to FIRST MOVE. A vaccine could be a game changer for the movie industry says the CEO of IMAX, but cinema attendants also
argues controlling the virus can be a game changer, too.
In China and Japan, movies have broken box office records this year. China's war epic "The 800" is now one of the country's top 10 releases
ever.
In Japan, the manga film, "Demon Slayer" saw the biggest opening weekend in the country's history. One cinema in Tokyo reportedly showed it 42 times in
a single day.
Joining us now is Rich Gelfond, CEO of the IMAX Corporation. Rich, always fantastic to have you on the show, and the point is a very important one.
Vaccines will be a game changer, but based on what you're seeing in other places outside of the United States, actually, just controlling the virus
brings people back, too.
RICH GELFOND, CEO, IMAX CORPORATION: Exactly, Julia. So we've seen not only in China, but in Japan, in Korea, Taiwan, Hong Kong, where people feel safe
and the theatres are open and in fact, it is safe, people are going back, and in some cases, in record numbers.
So, the last few weeks in Japan, there has been a movie called "Demon Slayer," a local Japanese movie and for IMAX, it set records five weeks in
a row. That's first week, second week, et cetera.
China, we are back to pretty much the same level we were at in 2019 over the period of time since we've been open, around five months and it's like
other industries where people have felt safe going to restaurants or going to parks.
There's a lot of pent up demand, and unfortunately, in North America and Western Europe have had a second wave right now, and there's a narrative
going around saying, will people go back to movies? But being a global platform in 82 countries, the answer is unequivocally yes.
CHATTERLEY: Yes, you can see what consumers are doing when they feel safe enough to get back into the cinemas and actually, your point about China is
an interesting one.
I believe box office receipts in China are set to surpass the United States overall this year and that's even with capacity limits still in play in
China.
GELFOND: Yes, absolutely. So until a few months ago, first, it was 25 percent capacity and then 50 percent capacity. Now, it's starting to open
up more. It's regional. So there's no national policy on that.
However, I think you have to remember that we're at the same level we were last year with local language content. So the films that we're playing,
like "The Sacrifice" with no disrespect -- or "800," don't have the global appeal of "Avengers" or "Star Wars," those kinds of movies.
So, with capacity restrictions, with less popular movies, it's doing the same thing it did in 2019 and that's what makes us encouraged about the
vaccine coming to the rest of the world, about theatres starting to reopen, we hope in around the March or April time frame and we think there's a
fantastic schedule on hand for next year.
We think there is going to be an awful lot of pent-up demand and that doesn't take a big leap of faith.
CHATTERLEY: Rich, what are you seeing in the United States? Because clearly, hopes for a vaccine at some point in the future and you know,
you're talking about sort of the second quarter of next year really seeing an impact, but today, we're seeing record COVID cases, record
hospitalizations, and the cinemas that you do have open, how are you operating and what are you seeing?
GELFOND: So only about 30 percent of cinema in North America is open right now. Some of that is even on a limited basis and as you know, Western
Europe, a lot of countries are closed down there now.
A lot of the movies have moved ahead of 2020 -- there are very few left -- into 2021, mostly starting at the end of the first quarter. At IMAX, we
have a significant cash position and actually because of Asia, we're cash flow neutral.
So we have a very long runway period and I think the strategy is whatever happens now is really more or less just a rounding error and I think people
like Cineworld-Regal actually closed their entire network because the thought was whatever the box office is in this interim period is not going
to be meaningful.
The real question is, how do you reopen and by the way, coincidentally, this morning, Julia, news just came out that Cineworld had recapitalized.
It has a new $450 million facility, so that gives them a very long runway.
So the threats to the business, you know, can you stay open long enough? Do you have the time? Will the movies come?
And the vaccine was really a turning point on that. It all seemed encouraging, but until the vaccine announcements in the last couple of
weeks, there really weren't tangible bookends, but now, there are.
[09:50:37]
CHATTERLEY: Yes, you need a sense of when this ends to be able to borrow money and stay alive in the interim to get to that point where you can
reopen with some kind of certainty.
Talk to me about "Wonder Woman." what do you make of this because it's, again, a different way of tackling this. HBO, of course, and going to be in
cinemas as well on Christmas Day.
GELFOND: Yes, so I think, as much as it's been a real problem for exhibition and IMAX getting movies out there, for studios and streamers,
it's been a problem also, which is, how do you get the content out there?
"Wonder Woman" was definitely a theatrical movie. It was high budget. It was filmed with IMAX cameras, a lot of stars, a sequel and it was
originally scheduled for Christmas a year ago. And I think that Warner moved it six different times.
And I think they got to this Christmas where it was scheduled and in fact, as we just discussed, it looked like very few theaters in North American
and Western Europe were going to be open.
So they made the decision to put it on their streaming service. I think they were concerned that waiting another six months or a year might not
have only made it stale, but also there's so much coming out in 2021, they might not have found a good time for it. So they made the decision to
release it on streaming.
However, Warner has been very committed to the theatrical experience. Remember, they tried to release "Tenet" several months ago, really the only
studio that did that. So, they concluded, let's let it go to theaters at the same time it goes on streaming.
One notable exception though is internationally because HBO Max is only in North America, the film will open only theatrically in the rest of the
world, and IMAX with 82 theaters including a lot in Asia, and we think that's a good thing for us.
Again, I don't think the movie business is going to be made or broken in the next six months. We're really waiting for the reopening, but it's a
good thing for us to have some content to play globally.
CHATTERLEY: Rich, I hope you're talking to state governors in the United States about the differences you're seeing because there are so many
lessons to be learned here beyond the importance of the business and the recovery of the industry itself.
Tackling the virus can be a game changer, too. Controlling it is a game changer, too. Great to get your insights. Rich Gelfond, CEO of the IMAX
Corporation there, and I can't wait for "Wonder Woman." How exciting.
You're watching FIRST MOVE. More to come.
(COMMERCIAL BREAK)
[09:55:23]
CHATTERLEY: Welcome back to the show. World leaders are promising to distribute COVID vaccines fairly. The communique at the end of the Riyadh
G-20 Summit said that they would spare no efforts to ensure vaccines were affordable and accessible to all.
Nic Robertson spoke with the Saudi Finance Minister and they talked about getting the world to work together.
(BEGIN VIDEO CLIP)
MOHAMMED AL-JADAAN, SAUDI ARABIA MINISTER OF FINANCE: Obviously, there's a difference of opinions when you start negotiating on anything. Then that
converges and that's what we have seen today.
They signed off unanimously in the communique which includes a lot of commitments and specific initiatives relating to multilateral institutions.
World Trade Organization is no exception.
I think we have all agreed that we need to reform the organization, and we provided today the political recover for the governments of the W.T.O. to
take the necessary action and provided them with what the G-20 thinks needs to be done.
(END VIDEO CLIP)
CHATTERLEY: The world working together. That's it for the show. I'm Julia Chatterley. You've been watching FIRST MOVE. Stay safe. We'll see you
tomorrow.
(COMMERCIAL BREAK)
[10:00:00]
END
