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First Move with Julia Chatterley
The Fed Chair Plays Down Inflation Risks, Investors Calm; President Joe Biden Focuses on Supply Chain Weaknesses; Responsive and Recovering, the Latest on the Health of Tiger Woods. Aired 9-10a ET
Aired February 24, 2021 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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.
Powell Power: The Fed Chair plays down inflation risks, investors calm.
Chip crunch. Joe Biden focuses on supply chain weaknesses.
And responsive and recovering. The latest on the health of Tiger Woods.
It's Wednesday. Let's make a move.
A warm welcome once again to FIRST MOVE today, and a truly electric show for you this Wednesday. We have got the CEO behind electric vehicle
startup, Lucid Motors joining us to talk about going public and one of these funky SPAC deals, yes, we will explain as he revs up to take on a
former colleague, none other than Elon Musk.
And from the promise of electric vehicles to the perils of cybercrime, the CEO of FireEye, that's the company that first uncovered the massive
SolarWinds hack will be joining us after yesterday's important Senate hearing.
The bottom line, the scale of the hack is still unclear and maybe ongoing, so how do we protect ourselves better? We'll be discussing.
Now, in global markets, EV in the meantime stands for excess volatility. Red in Asia as you can see. The Hang Seng sinking some three percent, its
biggest daily loss in decades after the government there announced a tax hike on stock trades. That's a warning to the United States.
In the U.S., the NASDAQ plunging four percent at one point on Tuesday before recovering and futures were a little bit lower, but I call that
stable, and it is all thanks, I think, to Fed Chair Jay Powell who promised that the massive Fed stimulus will continue until at least the jobs picture
Powell played down inflation and rising bond yield risk calling them a statement of confidence in America's economic future.
The ultimate result, beaten up stocks like Tesla is now up some four percent premarket. That fell more than 10 percent at one point in Tuesday's
What else? Well, Bitcoin also bouncing, helped by the news that both MicroStrategy and payment giant, Square have upped their investments.
What did someone say? It's hip to be square. We'll discuss.
But first, we are on Powell's promise. The Fed Chair telling Congress all systems go on the stimulus and not to panic over prices.
(BEGIN VIDEO CLIP)
JEROME POWELL, U.S. FEDERAL RESERVE CHAIRMAN: My expectation will be that inflation will probably be a bit volatile over the next year or so due to a
significant amount to particular things to do with the pandemic.
I don't think that those effects should either be large or persistent.
(END VIDEO CLIP)
CHATTERLEY: Christine Romans joins me now. Christine, great to have you with us. Jay Powell squaring off, should we say, to those that are worried
about inflation risks here. But also those that are perhaps saying the stimulus is too much. They are fixing the market. He is laser focused. We
have got jobs to bring back.
CHRISTINE ROMANS, CNN BUSINESS CHIEF BUSINESS CORRESPONDENT: Yes, he was saying on the inflation worry here, and he said, look, you know, it's not
like we expect, he said, by no stretch of his imagination does he expect inflation to spike here in the near term.
And his concern about big budget deficits and inflation, we've been hearing people warning about that for how many years now and it hasn't come to
So there is some sort of disconnect overall happening there. He said while there are bright spots in the economy near term, good news on progress on
vaccinations, waves of fiscal stimulus today that have kept some American families solvent at least, there's a long way to go here before we're back
to full employment and until things are normal.
And you know, what's interesting, Janet Yellen, the Treasury Chief, top economist, and also this Fed Chief, they have been pointing out that the
unemployment rate is 6.3 percent on paper that that headline unemployment rate that we report every month, it really needs a big asterisk next to it.
There are three full percentage points that you can add for people who lost a job in the pandemic and aren't even looking for work. And the government
also says there is this up to 0.6 percentage point misclassification error, so you're talking about the same kind of unemployment that you saw at the
peak of the Great Recession.
So a reminder there that there is still a lot of work go until full employment here, and 6.3 percent may mask a little bit the pain and
suffering that's in the American labor market.
CHATTERLEY: Mask a lot, I think, Christine, and it is something you and I have been talking about for months and we know that some of the lowest paid
job sectors: tourism, the services industry are going to be the last to come back fully, even as we transition out of the pandemic and we see more
Interesting despite some of the push back from the Republicans over the size, of the scale, even the timing of the latest plans over stimulus. A
whole host of business leaders coming forward and saying, "Get it done."
ROMANS: Yes, 150 of them in a letter that just was released this morning from all kinds of different sectors saying this is incredibly important for
the business community and for the American way of life.
And I think that that is so interesting given the Republican pushback you've seen.
Today in the "Wall Street Journal," a piece by Mitt Romney -- Senator Mitt Romney calling the COVID-19 Rescue Plan from this President a clunker and
said that some of these policies actually could lead to job loss. That's his assessment.
Earlier this week, Marco Rubio, the senator from Florida, I saw a tweet from him where he said that this effort to have child poverty in the United
States with $250.00 to $300.00 a month direct payments to poor families, he said without a work requirement, that is welfare. That is clearly a
political gambit that he has there against the whole COVID-19 relief.
But this, Biden says is moving forward here. We don't know what it will look like in the end, quite frankly, and we know that the House is hoping
to vote for it on Friday. Will there really be a $15.00 minimum wage hike in there? Unclear.
But it is big, $1.9 trillion and it has a potential to have important money into the hands of real families pretty soon.
CHATTERLEY: Christine Romans, thank you so much for that.
ROMANS: You're welcome.
CHATTERLEY: Crisis talks in the White House today over the global chip shortage, President Biden will order a review into the U.S. supply chain
for critical materials as the chip scarcity leaves U.S. auto makers idling.
John Harwood joins us now. John, we've been talking about this for weeks on this show. We've had Ford, we've had General Motors saying look, we're
going to have to slow production because we simply don't have the pieces.
And what? The United States is just over 10 percent of production; China, Taiwan; it is a national security risk.
JOHN HARWOOD, CNN WHITE HOUSE CORRESPONDENT: That's right and this is an element of President Biden's agenda to try to revive American manufacturing
which we're going to see unfold later in the year.
What he is trying to do is both in part, establish American's economic independence from China. You know, the rise of China as a manufacturing
power, as a low cost manufacturing power has had big benefits to the United States, but also created some vulnerabilities as in the dependence on
American manufacturers for parts from China.
So, the President is going to have bipartisan members of the House and Senate come discuss it. He is going to issue this Executive Order. It's
going to initiate a review of the supply chain and what the weaknesses are of the supply chain.
But Joe Biden has been serious about manufacturing policies that are more aggressive than have been advocated in the past by Democratic Presidents,
Barack Obama and Bill Clinton, for example.
So, we'll see how far this goes. This is a first step today, but he is going to try to use this as part of his China policy and part of the
CHATTERLEY: Perhaps, also part of the Taiwan policy as well, John. We could throw that in there given how prolific they are in the production of
But it is bigger than this and I think for every nation around the world, they've looked at their supply chains in light of what happened during the
pandemic and here in the United States, with PPE, I think everybody suddenly realized that whether it is medical equipment or PPE, the reliance
on Chinese supply chains in particular, but broader than that, too, is a risk and a crisis.
HARWOOD: That's right, and it's pharmaceuticals as well. Remember, we've got a situation, a health situation in the United States where you
mentioned PPE, but you've also got production of drugs, lifesaving drugs that can assist with the pandemic and Joe Biden doesn't want to be
dependent on foreign countries in a crisis that could be a squeeze point for the United States, give them leverage over the United States or simply
create a shortage that can't be met during a crisis like this.
So, yes, this is going to be an across the board push by the administration to try to see what they can do to safeguard supply of a range of critical
materials that American manufacturers need.
CHATTERLEY: Fantastic. John, great to you have with us. John Harwood there.
HARWOOD: You bet.
CHATTERLEY: All right, jubilation in Ghana now as it is the first African country to receive COVID-19 vaccines under the World Health Organization's
Hundreds of thousands of doses of the AstraZeneca vaccine manufactured by India's Serum Institute arrived today.
David McKenzie has all the details.
DAVID MCKENZIE, CNN CORRESPONDENT: This is the moment when those 600,000 doses of the AstraZeneca vaccine arrived in Ghana, the very first of the
COVAX initiative, which is a global initiative to get vaccines to low and middle income countries.
You can see the level of pomp and circumstance getting those vaccines in. Earlier, they left the Serum Institute in India and there will be many
countries in the coming weeks, particularly in the African continent who will receive vaccines through COVAX.
MCKENZIE: Now, this is both a moral issue, say World Health Organization officials, but also a public health issue. They say that if any one country
still has transmission of COVID-19, even if other countries have been vaccinated, it gives the virus an opportunity to continue to mutate and
more variants to come through, which could put everyone at risk.
The Trump White House largely ignored COVAX as it was set up, but the Biden White House has been much more active and engaging and just in recent days,
G-7 countries announced $4 billion of additional funding to COVAX and vaccine facilities like it to get vaccines predominantly, the AstraZeneca
vaccine, into countries to start this vaccination drive, the largest, say UNICEF, in modern history.
David McKenzie, CNN, Johannesburg.
CHATTERLEY: All right, still to come here on FIRST MOVE, FireEye spied the hack that everyone else missed. Its CEO joins next to discuss how we sure
up our defenses.
And from co-worker to cobot. We explore the potential workforce of the future. Stay with us.
CHATTERLEY: Welcome back to FIRST MOVE. And an update on some of the stories making headlines around the world.
Golf legend Tiger Woods is recovering in a Los Angeles hospital this hour a day after he was seriously injured in a rollover car crash. Doctors say he
is awake and responsive after extensive surgery on his leg.
Los Angeles County Sheriff says it is nothing short of a miracle that Woods is alive. CNN's Josh Campbell is on the scene in L.A. for us. Josh, great
to have you with us. Do we have any further news on his condition this morning?
JOSH CAMPBELL, CNN CORRESPONDENT: Yes, we are learning, Julia, new information about those serious injuries that he received after that
violent rollover accident yesterday. We're told when he arrived here at this level one trauma center, he underwent emergency surgery. That, due to
his leg being injured, as well as his ankle.
CAMPBELL: We're hearing that he actually had to have metal rods and pins inserted into one of his limbs in order to stabilize it.
Now, when authorities arrived on the scene, they determined those injuries severe enough that they brought him here to this enhanced facility in order
to receive that higher level of care.
At this hour, he is being described as awake, responsive, and recovering, that, according to a statement on his Twitter account.
Now, we also know that the cause of the crash remains under investigation. Authorities say it appears as though weather was not a factor. It appears
as though this was a single vehicle accident, but as you look at these images of that car, as you mention, nothing short of a miracle.
This vehicle travelling downhill at a high rate of speed, crossed over into incoming traffic, went into an area with trees and shrubs, and again, just
a miracle that these injuries were not more severe.
Finally, it is worth nothing that Tiger Woods is no stranger to injury. We know just last month he underwent back surgery which was the fifth back
surgery of his career. He talked to CBS Sports on Sunday. They asked him whether or not he would be playing in the near future. He said that he
hoped to actually play in April at the upcoming Masters Tournament in Augusta.
Of course, this violent crash yesterday raising serious questions about whether he will be returning to the golf course any time soon -- Julia.
CHATTERLEY: We just have to wait and see, and to your point as well, and it is clearly early days as far as the investigation is concerned, he is
obviously an incredibly well-known person.
We all know that he has children. His ex-wife, of course, well-known in her own right as well. Any sense of when or if the family are going to come and
CAMPBELL: Yes, what we're hearing now is that he spoke to his team that was here on site. He was actually here to take part in an event.
He obviously doesn't live in Los Angeles, but authorities said that the first contact that he made was to let this team know and we assume that
notifications to the family came later.
There is no indication talking to people here at the hospital that we will actually see the family. If they do arrive, we imagine they would not come
in the front that they would be taken in the back entrance due to their own privacy.
But just because we don't know how long he will be in the hospital, we don't know when the family will arrive and whether they will be here, but
obviously, very concerned and of course, you know, like most of the country and most of the world, so glad that it wasn't the worst case.
Authorities say that, you know, if he wasn't wearing his seat belt, this could have easily been a fatality. So although he has serious injuries,
obviously good news for the family that he is now well. He is awake. He is recovering, and just waiting to see when he will actually be released.
CHATTERLEY: Yes. Our hearts are with him and his family and friends and we wish him well.
Josh, great to have you there for us. Josh Campbell there in Los Angeles. Thank you.
Okay. We're on the countdown now to the market open and fasten your seat belts. U.S. futures have been firmly higher just an hour or so ago, but
they have turned lower now with tech stocks under pressure once again after falling some four percent in Tuesday's trading session.
All this, as U.S. bond yields push higher particularly the longer dated 30- year bond. Rising bond yields have put pressure on stocks in recent weeks. But, of course, as we mentioned earlier on in the show, as Fed Chair Jay
Powell said in his testimony yesterday, it's not yet a concern. It is actually a sign of a recovering economy.
In the meantime, more positive news in the fight against COVID-19. Shares of Johnson & Johnson are on the rise premarket on news that an F.D.A. panel
has given the thumbs up to its single shot COVID-19 vaccine for emergency use.
This paves the way for full regulatory approval as soon as this week. The Johnson & Johnson vaccine will become the third approved so far in the
All right, now, to the latest on the SolarWind's hack investigation. Microsoft President, Brad Smith, praising cybersecurity firm FireEye's
transparency in yesterday's Senate hearing on the massive cyberattack.
(BEGIN VIDEO CLIP)
BRAD SMITH, PRESIDENT, MICROSOFT: It took the leadership, and I'll say even the courage of companies like FireEye and SolarWinds to step forward
and share information. And it is only through this kind of sharing of information that we will get stronger to address this.
(END VIDEO CLIP)
CHATTERLEY: And joining us now is the CEO of FireEye, Kevin Mandia.
Kevin, great to have you with us on the show. That statement from Brad Smith and he regularly comes on this show, was a standout for me.
The other thing was you saying, "We still don't know how they broke into SolarWinds that I'm aware of."
KEVIN MANDIA, CEO, FIREEYE: Right.
CHATTERLEY: Two critical factors. The fact that you raised the alarm and said "We've got a problem here and it's a big problem." And two, that we
still don't know how they did it.
MANDIA: Well, we don't know how they broke into SolarWinds, but what FireEye found was an implant in SolarWinds and those things are very hard
to find, Julia. There is no magic wand you can wave to say find an implant or backdoor into my network.
The supply chain was compromised. The implant was put into SolarWinds and it was clandestine or surreptitious on 17,000 networks for six months or
CHATTERLEY: Kevin, for viewers out there, just to remind them, the way that you found this initially, it was an employee that asked or requested
use of another phone and you checked that and you were like, hang on a second. This employee doesn't have a second phone. That was how you found
MANDIA: Yes. You know, we had to start pulling on a thread. You know, all of us now are using our cell phones and working from home and getting those
six digit codes that you type in, and a lot of people do have two devices registered.
They have an iPad registered, they have an iPhone registered or maybe they use some other kind of phone. But the bottom line is this: one of our
security staff noticed a new phone being registered for one of our employees, I just called him up and said, hey listen, you just logged in.
Did you register a new phone? Yes or no, and that person said, no, I didn't.
Well then, who did? We knew we had unauthorized access on our network at that point.
CHATTERLEY: I know it's a hypothetical question, but I'm going to ask it anyway. Do you think if you hadn't found that that we would know about this
hack at this stage? And I was showing a chart of just how huge the supply chain impact and the web upon which people are impacted, if not affected
is, do you think we would know?
MANDIA: You know, I think over time, we would have found it. Period.
You know, FireEye, we are a company that does investigations all the time. As we're having this conversation, we're responding to over 150 security
So when we were compromised, we did what we do for our customers. We put almost a hundred people on our compromise. Most of the people working on
the intrusion in the FireEye had over there, the proverbial 10,000 hours of responding and we found it based on exhausting every single investigative
lead we could.
The reality though is, there is a little bit of trails of smoke about this breach showing up in other ways. But it took FireEye to help everyone
connect the dots and recognize, okay, there is a fire. It's a SolarWinds implant. We've got to do something about it.
CHATTERLEY: And what -- and I know your focus and what the focus of yesterday's hearing was is how can we improve this process? Because you
identified this. Microsoft obviously was involved. You were then letting your clients know, look, potentially there has been a breach here.
SolarWinds was obviously involved as well.
But that's a sort of chain of command that quite frankly is relatively slow in the face of something so huge. How can we improve this? The first has to
be communication and disclosure.
MANDIA: Yes, absolutely. One of the things that happens right now is when you hacked and know it, it's a real lonely planet. You have liabilities
that come at you. The investigations are complex.
If we wait to get Intelligence from companies that are compromised and they do a full blown investigation and then disclose, we're waiting too long.
So one of the many things that we have to do in many different nations is figure out how do we get actionable Intelligence into the right agencies
fast, so you can safeguard your private sector and safeguard governments? And that's a lot of the conversation we had had yesterday at the Senate
Intelligence Committee is, how do we have threat sharing almost in real time. That's confidential.
So we can kind of put shields up against all the attacks and all of us be as secure as the person who knows the most about a particular threat.
CHATTERLEY: If I look at the situation in Europe where there is a data breach, they have a number of hours to identify the authorities like a
Would you be in favor of something like this? Even if you don't have all the details, as you said, you are following threads and some of it is smoke
and there's mirrors in there.
If you had a window upon which the moment you found something you had to go like to a Federal disclosure program and go, we think we have got a
problem. Would that work at least to alert people that there may be a problem?
MANDIA: Yes. Well, it is complex, I'll tell you why. It's like what do you tell? Who do you tell it to?
MANDIA: When do you have to tell them? And the challenge is, a lot of times if you just go forward with, hey, we've had a breach, and you don't
have a ton of expertise and you don't have your arms around it, you can actually create an unbelievable amount of fear, uncertainty and doubt that
I know most breach disclosure laws if, not all of them, are really designed to protect consumers' privacy and consumer information. We actually need to
think about disclosures to protect IP.
Disclosures to protect nations in case there is a lot of disruptive attacks such as all the ransomware attacks that are hitting healthcare, hitting
pharmaceuticals, and people are making billions of dollars by hacking companies and shutting them down.
So disclosure laws are very complex. So what I was talking about is at least tackle things that are actionable like a threat intelligence sharing
that is mandatory for first responders and folks that do, do investigations into unauthorized access.
The disclosure laws are going to be different in every country. Every country has different cultures, different expectations of privacy, but we
are going to have to look at disclosure that is broader than just protecting consumer information.
CHATTERLEY: What we should talk about and haven't yet is, who did this? Or we think did this?
And I just want to play a little clip of what Brad Smith had to say about what they think.
(BEGIN VIDEO CLIP)
SMITH: I do think we can say this. At this stage, we've seen substantial evidence that points to the Russian foreign intelligence agency and we have
found no evidence that leads us anywhere else.
(END VIDEO CLIP)
CHATTERLEY: Kevin, I want to get your take on this because companies can sure up their defenses. They can spend more. Governments can spend more in
trying to protect themselves better.
But if we're that sure and we are relatively sure it seems about who did this, even if we can't decipher motive versus something far more nefarious
than just spying, quite frankly, does there need to be a deterrent infect hereto in your mind?
MANDIA: Well, I think what Brad always talks about and he is right, we do have to have what he calls rules the road. I call rules of the road, I call
it rules of engagement.
The challenge we have, Julia, is every modern nation that is developing an offensive capability in cyberspace doesn't know what rules to play by.
So over the last five years, what we've seen responding to thousands of security breaches is nations don't know where the borders are and we're
seeing a gradual escalation all the time.
And so the question we have now, we are at a point of time where what is the next escalation? What are we waiting for? Are we waiting for something
that is so intolerable that we have to do something? Or can we finally just cross, you know, create the red lines and say, okay, here's the boundary.
Do not have offense that does these following things.
And I think can you come up with rules of engagement, but without them, you can't hold people accountable. You have to have rules. The whole world
right now doesn't have any.
CHATTERLEY: Because this is the key, everyone spies on everyone else whether they choose to deny it. They deny it until they are caught and then
they continue to deny and it's all very awkward.
Are we saying that we're going to have to have an acceptance that people are going to spy on each other? But if you take down or damage someone's
critical infrastructure, because the Commerce Department, the Energy Department, there were so many critical departments in the United States
that were spied upon here even if nothing material happened, we assume. That is frightening.
MANDIA: Yes. I can tell you, bottom line, it is going to be hard to come up with rules for espionage because a lot of nations recognize, there is
If you can't beat someone tanks, can't beat them with airplanes, maybe you can beat them in cyber. And because of that asymmetry, I think those rules
of engagement will be hard to define, but they are doable.
When espionage crosses the line into shutting things down and doing destruction, and really, it is just criminal at that point.
So, I think rules can be found especially on the criminal aspect because as we're having this conversation, I'm very certain there is a lot of
companies dealing with ransomware, and need international cooperation and we need to start holding nations accountable for being a safe harbor for
folks stealing billions of dollars through ransomware.
CHATTERLEY: Yes, it's the accountability that is key. Kevin, great to have you on. Come back soon and talk to us, please.
MANDIA: Thank you very much.
CHATTERLEY: Please push for progress. Kevin Mandia, the CEO of FireEye there.
All right, the market opens next. Stay with us.
CHATTERLEY: Welcome back to FIRST MOVE. U.S. stock markets are up and running this Wednesday and we are looking at fresh volatility, I think on
Tech stocks falling once again after recovering from a four percent slide during yesterday's session. A little question why.
U.S. bond yields are moving sharply higher again. Ten-year U.S. yields pushing through 1.4 percent. Fed Chair Jay Powell saying, look, rising
rates, not yet a concern, but the market seems to beg to differ.
Once again, it's the speed at which these yields are pushing higher I think that has Wall Street's concerns raised.
All right, from that to the twilight zone as the electric vehicle maker market valuation and Lucid Motors whose very name suggests something easy
Well, I can tell you Lucid is on a roll after its merger with a SPAC or a Special Purpose Acquisition Company called Churchill Capital. Stay with me.
The company raised $4.4 billion in cash and based on Tuesday's stock price, it's in the top 10 most valuable auto makers in the world and by the way,
it's yet to deliver a single car.
Peter Rawlinson is CEO and CTO of Lucid Motors. He is a former Tesla engineer, too.
Peter, wow. Exciting times for you and your company. I do -- and I was watching yesterday. I do feel like it was bit of buy the rumor, sell the
fact a little bit yesterday, but where do you and how do you feel in light of what happened yesterday?
PETER RAWLINSON, CEO AND CTO, LUCID MOTORS: Well, I'm really excited for the future of the company. We've used this SPAC process to go public, to
access this fantastic array of long-term bluest of blue chip investors and that's securing a long-term future for the company.
It's enabling us to accelerate our plans and our mission is to accelerate the adoption of sustainable mobility. And we're going to do that through
high-tech EVs here in the U.S.
CHATTERLEY: I saw you quoted as saying raising this money and it is $4.4 billion, effectively, de-risks the business. We've seen some of your
competitors like Tesla struggle for money over the years -- struggle to raise money. Are you knocking out with this process any of that concern?
RAWLINSON: Absolutely. If we compare the amount that we've managed to raise through this process, the $4.4 billion that you referred to, it is an
order of magnitude greater that the several hundred million that Tesla made when they IPO'd.
And this securing a long-term future, enable us to get way past just putting our first product which is behind me, the Lucid Air Dream Edition
which is coming to the market this year in our brand new factory, the first purpose built EV factory in North America that's happening this year.
CHATTERLEY: You know, I was looking at some of the analysts who were talking about where the share price is trading and I'm sure you're not
going to want to talk about the share price itself.
But just based on a $30.00 share price here, you're being valued at 20 times 2022 revenue forecast. That's double what Tesla is valued at today
and we are not even seeing one of your cars on the road or sold yet.
CHATTERLEY: Peter, how do you put that into perspective? Is it daunting? Is it amusing? Is this market completely crazy? What is your view?
RAWLINSON: Well, my focus is upon getting the car to production. We haven't achieved anything until we get this car into production.
But I think that valuations are based upon the technical prowess and providence of an EV company. That's why Tesla is so highly valued because
Tesla recognizes it's a tech race and they have the world's best technology in production.
We believe that we have technology, which is the most advanced and we're really going to create a tech race, which will benefit not just the
customer, but the whole world because, you know, we have an environmental crisis on our hands here and we need to accelerate this widespread adoption
of the EV technology. And right now, it's a one-horse race with Tesla.
Now, having said that, our product, we're going in the luxury sector. Our product is primarily a Mercedes Benz competitor. But I do think it is a
very relevant reference point to note Tesla's preeminence in the arena of electric technology, and that's why it commands that market cap.
And I think the sort of price that you see on the CCIV stock is probably a reflection of the market's view of our tech.
CHATTERLEY: Wow. You're saying that your institutional investors -- and you did get some really big names -- see your technology as double as good
as Tesla's technology?
RAWLINSON: I wouldn't put that comparison, but I would say this. That it is a remarkable, illustrious roster, bluest of blue chip companies that we
have managed to attract and they have done a very thorough analysis and due diligence as have CCIV, and I think that that is a portend of things to
These people are very savvy investors, very conservative. They're in for the long term, and not only have we got this glittering array of blue chip
companies, but they paid $15.00 for the pipe, not $10.00.
And I think there is a reason for that. They understand just how good our tech is. What we have got to do now is implement that, and I have got 2,000
people in the company laser focused on implementing, getting this car in to production this year and making it absolutely wonderful.
If you look at the market that Tesla entered 10 years ago, I think they were cut a lot of slack for quality because the electric experience was so
I think that the world is a very different place now. We won't be cut that slack. We have to get the quality right. That's what our customers demand
and deserve and that is our focus.
CHATTERLEY: Peter, very quickly, what is the car behind you?
RAWLINSON: It is the Lucid Air Dream Edition and this is not a virtual background, Julia. This is real. I am in our Beverly Hills studio here in
Los Angeles. This is the Dream Edition which is coming this year.
CHATTERLEY: Can you get in in that car and drive away?
RAWLINSON: I could if I wasn't speaking to you.
CHATTERLEY: I know. Just checking. I just wanted to know. Very quickly, final point because we have seen a lot of news flow around Tesla's specific
decision to invest in crypto and potentially at some point in the future, accept Bitcoin or other digital assets for purchase of these cars.
Peter, any views on adding Bitcoin to your balance sheet now that you have $4.4 billion worth of cash and/or accepting digital assets for payment for
your cars that come to market in the future?
RAWLINSON: I think if it is legal and legitimate, then we'll certainly consider it. I think right now, I think that's for the future. Our focus is
upon the -- just getting this thing into production.
CHATTERLEY: Yes. I hear you. Let's just get a car on the road and make one available to be purchased.
Peter, great to have you on with us. You can drive away now. This is very exciting.
RAWLINSON: Thank you so much. I think I will.
CHATTERLEY: Peter Rawlinson, CEO of Lucid Motors. Thank you.
All right, up next, could this robot be your next co-worker? ABB Robotics joins us to discuss its newest cobots, that's next.
CHATTERLEY: Welcome back to FIRST MOVE. ABB Robotics has unveiled a new generation of industrial robots the company calls them cobots --
collaborative robots -- because they are designed to work with humans.
ABB's first generation cobots have been put to all kinds of uses. Volkswagen bought them to build its electronic vehicles. Singapore is using
them to carry out 50,000 COVID-19 tests a day.
I am pleased to say, joining us now is, Sami Atiya, he is President of ABB Robotics. Sami, great to have you on the show. Talk to me about the new
robots and what makes them special.
SAMI ATIYA, PRESIDENT, ABB ROBOTICS: Well, thank you very much, Julia, for having me. This is a great day for ABB through a successful launch of YuMi,
that is our cobot in 2015, and now we launch the next generation of what we call collaborative robotics, a robot that can work side by side with
You can see behind me on the right side that GoFa that is the robot that is for first time users. It can carry a weight of five kilograms. It has the
highest reach in among its peers. But also with a high speed. So imagine, five large bottle of water at the speed of two meters per seconds, that's
what GoFa can do.
And the other one is SWIFTI. That is the fastest one in the industry. That is five meters per second. So it is really entering into new segments and
also for medium size and small enterprises to raise their level of automation.
CHATTERLEY: It's quite fascinating, isn't it? Because I mentioned and reiterated the cobots, this idea that they are there to work with humans,
but obviously, there is going to be the instant reaction from our viewers which is that you're going to be replacing humans.
You did a survey of global companies that talked about these roles -- the roles that these robots are doing and actually how difficult it is to hire
people to do a lot of these repetitive tasks.
Just expand upon that for me because this was a fascinating piece of your recent survey.
ATIYA: Well, that's a very good point. I mean, the shortage of labor is actually accelerating over the years and many of our customers are really
having challenges finding people who want to do what we call the 3Ds -- dull, dirty and dangerous jobs.
And robots, in general, take over these jobs that less and less people want to actually do. And interestingly also, the question of employment and
robotization, if you look at the three most advance in terms of robotization that is Japan, Germany, and South Korea, and they all enjoy
much lower unemployment rate than the rest.
So the customers we actually introduce robots and automation, they actually hire more people over time. It's counterintuitive, but it is really true.
What is really important in this case is that we make the robots easy to use and that is one of the new, you know, softer features we have here is
that you actually take the arm of the robot, you just move it, you click on a button on the positions you want to have and the robot repeats what you
want to do.
But in overall, it is not taking away jobs. It is actually creating productivity and prosperity for all of us.
CHATTERLEY: And your point about South Korea and Germany, I think is a fascinating one, too.
I guess, it has got to come hand in hand with skills training though for people to get them into jobs and have the right skills in order to keep
that unemployment rate down irrespective of the role of robots.
Talk to me about the potential growth because I do think the last year has been transformative whether for social distancing, whether for health
purposes as well. People once again looking at automation, the role of robots and going there are things the robots can do that is far safer. The
COVID-19 tests, obviously, in Singapore is a great example.
ATIYA: Yes. Yes. I mean, we made a survey just recently globally, 1,600 businesses and they gave the feedback that 84 percent of people would
actually increase their spend on robotization over the next decade. Eighty five percent said that the pandemic accelerated the need for robotization.
One point you just mentioned, which is social distancing is one of the big outcomes of the study, it is that, companies want to become more resilient
to the uncertainties and you do that by introducing technologies that enable them to continue work despite, you know, fluctuation of demands,
sickness, and so on.
And nevertheless, the robots will always take the jobs that are repetitive and humans can work side by side with them and support them as they go. And
what we saw also in the pandemic is that many, many industries take pharmaceutical, I mean, you mentioned the example of -- in Singapore, we
were able to do 50,000 COVID-19 tests per day using 50 robots.
Now, this kind of productivity is possible only with robots. If we would rely on humans, that's first of all exposing the human with unnecessary
risk; and also, the productivity of robot is significantly higher.
And I'm very proud also that in the U.S., we work with Charles Boyce, it is a company in New York that used to do -- produce electronics. And Charles
came to us and said, can you help us produce ventilators?
And we, together with him were able in one month to shift the whole production using robots into producing ventilators for the State of New
York, and he produced 3,000 ventilators in March and in April.
So really fascinating what this new technology can do for society as well.
CHATTERLEY: Incredible thing to be part of. Sami, very quickly because I have about 30 seconds. Cost? What does one of these robot costs? And to be
a complete geek about this, do you have any modelling on how quickly based on increased productivity you can recoup the cost based on saved man hours?
ATIYA: Absolutely. I mean, they cost between 25,000 and 35,000 and we have many cases that return on investment is between six months and 12 months.
They really introduce more productivity and output for our customers.
CHATTERLEY: Wow. Six to 12 months. Fantastic. Sami, great to you have us with. Thank you so much for sharing your work with us. Sami Atiya,
President of ABB Robotics.
ATIYA: Thank you very much.
CHATTERLEY: Great to chat with you, sir. Thank you.
All right, coming up, do you remember the movie "Love Actually" crowbarred had the word "Christmas" into a song "Love is All Around"? Well, Michael
Bolton has done just a similar thing to one of his biggest hits in a swipe at the trading app, Robinhood. Let's face the music after the break.
CHATTERLEY: Welcome back to the show. Two big names in travel and tourism reporting eye-watering losses. Heathrow Airport has racked up a loss of
around two billion pounds. Accor Hotels lost around two billion euros.
Anna Stewart joins me now. Anna, no surprise the struggles that both of these firms have faced.
ANNA STEWART, CNN REPORTER: Yes. Heathrow said it is the worst year in their history. Normally, they have around 80 million passengers a year, for
instance, they did in 2019. Last year, a little over 20 million passengers.
Both companies have implemented major cost cutting programs. Both companies have shored up their balance sheets as best they can, but they are really
And Heathrow says, it has got enough cash to see it through 2023, but it is worried about the longer term future. It says, for instance, that if longer
term passenger numbers were to drop below 27 million a year, it would struggle to survive and it wants to see more support from the U.K.
Calling for more support, they release their budget next week -- Julia.
CHATTERLEY: And what about the outlook? What about vaccines? Hopes?
STEWART: Hope is in short supply, isn't it? Well, Accor did say they saw some green shoots in some markets like Asia, the Middle East and Africa.
But of course, Europe, which is its core market, it is just a patchwork of lockdowns.
For Heathrow Airport in England, during this third national lockdown, well that is pretty much in hibernation mode. Both companies, hugely reliant on
a vaccine rollout and not in any one country.
It is no good just having an advance vaccine rollout in the U.K. Travel is by its very nature international. So while both CEOs are bullish that as
vaccines are rolled out, they will see some recovery. A bit of a caution really, because we need to see this vaccine rolled out right across the
The Heathrow Airport CEO, for instance, saying, he hopes to see a return to travel in the summer. Brits may be allowed to book holidays from the middle
of May, but will they want to?
We have seen a flurry of airline bookings, but will they follow through on those bookings? What about testing? What about quarantine requirements? Not
just in the U.K., but also in other destinations.
So this industry, these businesses, very hopeful for recovery but really, it's out of their hands. It's to do with the vaccine rollouts and all of
those restrictions that governments ultimately implement -- Julia.
CHATTERLEY: Greater coordination between nations on all of these things. We can only wish and hope. Anna Stewart, thank you so much for that update
All right, just when you thought the whole Robinhood saga couldn't get more weird, enter stage left the singer Michael Bolton.
By rewriting or some might say, butchering his 1989 hit "How Am I Supposed to Live without You." No. Bolton criticizes Robinhood's order flow in an
advert for a rival brokerage. Michael, take it away.
(BEGIN VIDEO CLIP)
MICHAEL BOLTON, SINGER: Tell me how am I supposed to trade without you? My stocks been in your app for oh so long. How am I supposed to trade without
you? I think it's time I must be moving on
(END VIDEO CLIP)
CHATTERLEY: Mr. Bolton, yes, move on. For crimes against music, you have much to answer for.
I'll tell what you, though, that's an ad campaign worthy of a "Mad Men" episode.
That's it for this show. If you missed any of our interviews today, they will be on my Twitter and Instagram pages. Search for @jchatterleyCNN.
That's it for me. Stay safe.
"Connect the World" with Becky Anderson is next.