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First Move with Julia Chatterley
Rising COVID Cases Force Malaysia, Indonesia, and Australia to Act; Nearly Every Tesla Car Made in China is Recalled; Regulators in the U.K. and Canada Target One of the World's Largest Crypto Exchanges. Aired 9-10a ET
Aired June 28, 2021 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:27]
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.
Asia alert. Rising COVID cases force Malaysia, Indonesia, and Australia to act.
Tesla Tempest. Nearly every car made in China is recalled.
And crypto clamp down. Regulators in the U.K. and Canada target one of the world's largest crypto exchanges.
It's Monday, let's make a move.
A warm welcome once again to FIRST MOVE this Monday and a special reopening revelations edition of the program, the President of Resorts World Las
Vegas joins us to discuss its big opening week, the first new casino on the strip in over a decade in fact. My personal favorite tidbit of this,
cashless betting technology. We'll discuss later in the show.
Are you feeling lucky? Well, the cruise industry has its anchor away for the CEO of Royal Caribbean, who joins us aboard Celebrity Edge, the first
voyage from the U.S. shores since the pandemic began.
And smooth sailing for the U.S. majors, too, after last week's gains. Europe a little bit softer this Monday as investors brace for a highly
eventful -- let's call it a "peer-less" week. P stands for petrol. OPEC Plus meets Thursday to discuss supplies. E stands for end of quarter
trading and with earnings season, just around the corner. Second E, employment. We have the latest U.S. nonfarm payrolls numbers on tap on
Friday and R is for records Yes, the S&P 500 beginning the week at all-time highs, once again.
Meanwhile, a quiet session in Asia with new numbers showing Chinese corporate profits easing due to surging commodity prices, that hitting the
bottom line, and rising COVID cases in the region weighing on sentiment, too.
And that is where we begin the drivers. Sydney and other areas in Australia are now under lockdown as new COVID-19 clusters continue to grow. Other
nations in the region including Bangladesh and Malaysia also struggling with a surge in infections.
Ivan Watson has been exploring all the details. Ivan, great to have you on the show. Let's start with Australia first. It's this dual challenge of
rising number of variants around the world and fewer or few vaccines having been delivered. Talk us through what we're seeing.
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, I mean, arguably, Australia is a victim of its own success. It's only had 900 some
odd deaths due to COVID over the last 18 months, and it has been successful at keeping the infection numbers down with contact tracing, with strict
controls at its borders. But now, there are outbreaks taking place.
The worst right now is in New South Wales around the largest city, Sydney, which only had, I think, another 18 new cases overnight, but the
authorities are warning that they really expect this to spread. They are issuing stay-at-home orders, because of course, they are talking about a
much more contagious variant of the disease than the one that they've dealt with over the last year and a half. Take a listen to the top official in
that state.
(BEGIN VIDEO CLIP)
GLADYS BEREJIKLIAN, NEW SOUTH WALES PREMIER: And we also have to be prepared for the numbers to go up considerably because as experience shows
with this strain, we are seeing almost a hundred percent of transmission within households, and we're seeing a very high rate of transmissibility.
(END VIDEO CLIP)
WATSON: Western Australia, the cities of Perth and Peel have just announced a four-day circuit breaker kind of shutdown after cases of the
new delta variant were detected there after a case was detected. And one of the key problems here is that Australia's vaccination rate is almost last
among developing countries, developed countries economies, below five percent of the population is fully vaccinated.
So, even though they've been so good at kind of beating back the virus until now, the population is still very, very vulnerable, and we have a
much more contagious variant that's out there. And that's why the authorities are really sounding the alarm in the Northern Territory, as
well -- Julia.
CHATTERLEY: I mean, so successful to your point about controlling the virus, but it didn't mean that you could ease back in any way on purchasing
those vaccines, particularly as those variants and greater infectious versions of this virus spread.
What about elsewhere? I mean, I mentioned Indonesia and Malaysia. I can see Thailand, too, announcing new restrictions in Bangkok as well.
[09:05:10]
WATSON: Yes, I mean surges of infections in all of these countries and governments that are trying to respond by imposing different kinds of
restrictions. An interesting fact about Indonesia is though, it has been breaking daily records over the course of the last week for new infections.
We're seeing reporting from Reuters that the Health Minister wanted more restrictions and was basically overruled on that.
The country has had these kind of hot zones, and they impose kind of some restrictions there, but not imposing a much more national thing or across
the most populous island of Java.
Then you have Malaysia which is extending its own national lockdown with some 5,800 cases detected on Saturday, authorities saying they're not going
to ease those restrictions unless they go below 4,000 new cases a day. Bangladesh has imposed some really tight restrictions because the numbers
are surging there.
They are deploying the Army along with the police to help with the crackdown on travel. We've seen scenes of people rushing for ferries, for
example, trying to get a ride out of the city, acknowledging the fact that public transport will be shut down, and Thailand also still having trouble
with their own infection rates, announcing that they're going to re-impose restrictions in and around Bangkok.
It just goes to show that this virus is not going away. It still presents a major health challenge, and some of the warnings in Indonesia are ominous.
Some of the organizations, the health organizations, medical organizations saying hey, if we don't take this more seriously, we're going to look the
way India did in April and May and it does appear from the reporting that the national government is holding back at this stage even as we're hearing
accounts of hospitals and intensive care wards overwhelmed -- Julia.
CHATTERLEY: Yes, it gives me goosebumps and we need to get those vaccines spread all around the world to the point that we were discussing with the
World Bank last week as soon as possible. Ivan, thank you for keeping on top of that for us. Ivan Watson there.
All right, staying in Asia and the Chinese tempest of Tesla. Tesla announcing the recall of almost 300,000 vehicles to fix what regulators are
calling autopilot software issues. A potential setback to Tesla in one of its biggest markets and not the way Elon Musk wanted to spend his 50th
birthday.
Paul La Monica joins me now and Happy Birthday, Elon Musk, not the present that he was looking for. I guess the one upside, Paul, and it is almost all
the cars that they have delivered in China in total. The one upside is when you sell a computer on wheels, a software fix can be done remotely and
doesn't require physically bringing these vehicles back to wherever they can be fixed.
PAUL LA MONICA, CNN BUSINESS REPORTER: Exactly, Julia. This is not as big of a worry for Tesla and the birthday boy, Elon Musk, because of that very
fact, having a car recalled when it is a software issue that can be fixed via download means that consumers don't have to bring them back to, you
know, where they purchased the car and have it fixed and taken off the road for an extended period of time.
So I think, that is one reason why Tesla stock isn't really down all that much today on this news. But over the past few months, Tesla's stock has
lagged both the broader market, it's down this year. And it's really way behind what Ford and GM have done, because they are rapidly catching up in
the world of electric. And, you know, I think everyone realizes that Tesla's success has put a target on Tesla's back and you know, other
companies want to try and sell as many electric vehicles around the globe as possible.
CHATTERLEY: I mean, it's a vitally important market for Tesla that's to be clear, and it's proving a difficult one. I believe we've now got five
regulatory agencies looking at the quality of the Model 3 cars that are coming out of its Shanghai factory here. And Dan Ives, who is on the show a
lot said, just to give you a sense of the numbers here, China could represent 40 percent of global deliveries for Tesla by next year.
So, you've got to get this right if you're Tesla, and you're looking at some of the challenges in China. What are we seeing in terms of numbers and
demand there? Is it having an impact on demand?
LA MONICA: Yes, Julia, without question, this is a major concern for Tesla, and it could be a headache if the problems persist, because you did
have Tesla sales in China fall pretty dramatically in April, and I think, part of it was some of these, you know, concerns -- consumer backlash,
particularly in Shanghai to the problems that the company was having with issues related to the cruise control system, to brakes as some drivers were
reporting, and rivals took advantage of that.
You saw sales for companies like XPeng and Lee Auto, you know picking up in the past couple of months. They did stay stabilize in May, though. Tesla
sales did rebound. So, rivals like Nio and XPeng were able to get maybe a short term blip, but not a huge sales spike at the expense of Tesla.
[09:10:24]
CHATTERLEY: Yes. Paul, great to have you with us for that update there. Thank you, Paul La Monica.
All right, U.K. regulator, the Financial Conduct Authority has targeted one of the world's largest crypto exchanges, it has banned Binance from
offering certain products and services in Britain. The F.C.A. doesn't regulate the actual sales of cryptocurrencies, though, but it can ban
crypto related derivatives and securities.
Clare Sebastian, fortunately joins us on this story. I read so much material, Clare, about this at the weekend and a lot of it was deeply
confused -- deeply confusing, and some of it was wrong, quite frankly. So, can we just ascertain what the F.C.A. did here? What's banned and what's
not and who is banned quite frankly?
CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT: Yes, that's the tricky bit, Julia, is that we're talking about sort of a different legal entity and
also the difference between regulated and unregulated activities in the U.K.
So, what this ruling statement on Saturday from the Financial Conduct Authority actually does is it says that Binance Markets Limited, which is a
sort of U.K. subsidiary of finance, which is based in the Cayman Islands, that they are barred from conducting any of what they call regulated
activity in the U.K.
Now as you noted, regulated activity does not include the sort of simple sale -- buying and selling of cryptocurrency. It includes things like
anything classed as a security and option, a derivative, things like that.
Now, the other tricky bit is that Binance actually says that Binance Markets Limited has not actually started any activity in the U.K. and as
such, this doesn't change anything that they're doing. At the moment, it is a separate legal entity. It has not started its UK business as of yet. The
company is saying on Twitter, "Our relationship with our users has not changed."
Now that is true from this. Binance.com is based in the Cayman Islands and are not regulated by the F.C.A., that website is continuing to operate in
the U.K., but this is still as a crackdown of sorts by U.K. authorities, a crackdown, if you will, on future activity. Binance had wanted to set up a
U.K. crypto marketplace, this bars it from doing that. It is also prevented from advertising regulated products in the U.K.
So, it is in the sense of the broader regulatory crackdown that we've seen. It is a part of that, and of course, significant because Binance is one of
the largest exchanges in the world -- Julia.
CHATTERLEY: Yes, I believe they'd applied for permission and then withdrew that permission, because to your point, they are tightening up some of the
restrictions on what you're allowed to do and what you aren't allowed to do. But to your point, if they're not already in action here, then it's
just a moot point.
But the point and the premise here is that we're not just seeing this in the U.K., we're seeing this all around the world, and while it didn't seem
to have any real impact on the prices of some of these digital assets or these cryptocurrencies, I think the message is here that regulation is
coming, even if it's at a relatively slow and steady pace.
SEBASTIAN: Yes, slow and steady, but accelerating, I think, because throughout the history of Bitcoin and cryptocurrencies, regulation has been
a sort of constant specter that has, you know, from time to time, impacted the price. Bitcoin, as you say, up slightly today.
But in terms of Binance, we've seen other authorities moving in. They got a warning from Japanese regulators on Friday that they might not be
authorized to operate in the country. They've pulled out of Ontario, in Canada because of a regulatory crackdown there.
And on a broader level, of course, we've seen the Chinese authorities really crack down recently on things like mining and payments in the U.S.
We're seeing the Fed ramp up scrutiny. There's talk of more tax oversight from the Biden administration. So, this is really coming, but it is on two
levels now, Julia.
It is, on the one hand, trying to sort of rein in activity, but on the other hand, with things like C.B.D.C. Central Bank Digital Coins, it looks
like authorities are sort of trying to join in to be a part of this, an acknowledgement that you can't regulate this away anymore.
CHATTERLEY: Yes, you can't regulate this way anymore. And of course, those in the industry will say this is a good thing because the more you can
bring this into the light, the greater the number of people that will be involved and feel comfortable actually getting engaged in this sector.
Thank you for that, Clare Sebastian, shedding light and understanding on what was a very confusing story over the weekend. Clare, thank you.
All right, let me bring you up to speed now with some of the other stories making headlines around the world.
The death toll from the tower collapse in Florida has risen to nine with 152 people still unaccounted for. Search and rescue efforts have expanded
with one official calling it the largest operation the state has seen for a non-hurricane response.
Rescuers from Israel have arrived to help and Mexico is sending its own team in on Monday. CNN's Rosa Flores is with us now from Surfside, Florida.
Rosa, great to have you with us. The search continues clearly and for loved ones, I think, the hopes and prayers that even five days later, miracles do
happen and that some of these people may still be found alive.
[09:15:12]
ROSA FLORES, CNN CORRESPONDENT: You're absolutely right, hope is very much alive still here, Julia. There is a reunification center for families, and
we know that there's a lot of praying going on. Those families were allowed to come to the site of the collapse, which is where I am, they were allowed
to do that yesterday and it was a very important moment for these families.
Because imagine, they were able to actually be as close to their loved ones as they could be. They could observe what was going on, on this pile of
rubble, and they could also pray, which was very important for these families.
What we know about the search and rescue right now is that there's about 400 personnel that are dedicated to the search at any point in time. There
is about 200 on the actual site. Search and rescue crews are using a grid pattern to search in a process called delayering. That's why you're seeing
large pieces of concrete being peeled from this debris site to try to get through those layers of concrete looking for signs of life.
The weather was better yesterday, and that helped the rescue efforts. A fire that had been causing a lot of trouble was contained yesterday as
well, and so that also helped.
But as you mentioned, the death toll increasing to nine, about 152 people are unaccounted for. We're learning all of this, as we're getting more
information about a 2018 report that was issued in October of that year that describes some of the structural issues that this building had. And so
this is raising a lot of questions about who knew what, when, and what was done about it and what was not done about it.
To summarize it for you, this report says that the building had major structural issues that there was exposed and deteriorating rebar, that the
waterproofing in this building along the pool was beyond its useful life, that it needed to be repaired. If it didn't get repaired soon, it would
create exponential deterioration. That was three years ago.
One of the engineers that inspected this building last year talked to CNN and here's what he saw. Take a listen.
(BEGIN VIDEO CLIP)
JASON BORDEN, STRUCTURAL ENGINEER: I saw cracks in the stucco facade, I saw deterioration of the concrete balconies. I saw cracks and deterioration
of the garage and plaza level. But those are all things that we're accustomed to seeing, and that's why our job exists, to maintain and repair
the buildings.
JOHN BERMAN, CNN ANCHOR: You're accustomed to see any cause for alarm in what you saw.
BORDEN: What I saw, no. There could have been construction errors, construction defects. There could have been design errors or design
defects. There was maintenance or repairs that need to be performed. You know, all of those things together likely contributed to what happened
here.
(END VIDEO CLIP)
FLORES: And Julia, regarding the investigation, it's important to note that homicide detectives are working alongside search and rescue crews.
These detectives are collecting evidence as they go because at the end of the day, one very important part of all of this is going to be about giving
those families that are waiting for their loved ones answers about exactly what happened.
And so we're seeing that these -- both the investigation and the rescue efforts are happening in tandem -- Julia.
CHATTERLEY: Yes, fact that flags were raised three years ago just adds another layer of heartbreak, I think. The search for more questions goes
on.
Rosa, thank you for that and thank you for all the work you've been doing. Just incredible job. Rosa Flores there.
You're watching FIRST MOVE, more to come.
(COMMERCIAL BREAK)
[09:21:31]
CHATTERLEY: Welcome back to FIRST MOVE where we're sailing into a post pandemic future, we hope. After more than 15 months, the first American
cruise ship is now back at sea, Royal Caribbean's Celebrity Edge cast away from Fort Lauderdale, Florida over the weekend, and CNN's Natasha Chen is
on board.
(BEGIN VIDEOTAPE)
NATASHA CHEN, CNN NATIONAL CORRESPONDENT: In many ways, this is a very typical cruise experience. You've got a casino, you've got jewelry shops.
But there are signs of cruising in a pandemic era, hand sanitizer stations everywhere you look.
And you can hear the band in the background. But if you take a look around, there aren't that many people sitting. There are no crowds here and that is
because this cruise is sailing it not even 40 percent capacity. So many passengers told us how excited they are to be back. And the crew told us
they were getting emotional on the day of departure from Fort Lauderdale.
Here's Captain Kate McCue talking about what a big moment this is.
(BEGIN VIDEO CLIP)
KATE MCCUE, CAPTAIN, CELEBRITY EDGE: That was a moment that this is real. It really hit me though, when we dropped all lines, when we came off the
pier with our guests on board because that seems so natural that it made the last 15 months a bit of a blur, a bit of a dream, and not a nightmare
at all because we did have an opportunity to do things on board the ship that we wouldn't have been able to if we were in service.
(END VIDEO CLIP)
CHEN: Now out here on the pool deck, you can also see there aren't that many people sloshing around, a lot of empty chairs, and that's another sign
of the reduced capacity on this ship. Reduced capacity could go on for many months according to CEO, Richard Fain.
In an interview, he told us, protocols may adapt over time as we continue to emerge from this pandemic, with this being the first ship to depart a
U.S. port in more than 15 months. Fain told us, he'd rather do it right than do it fast.
Natasha Chen, CNN on the Celebrity Edge somewhere in the Gulf of Mexico.
(END VIDEOTAPE)
CHATTERLEY: And that was a perfect introduction to our next guest because joining us now is he himself, the Royal Caribbean Chairman and CEO, Richard
Fain.
Richard, fantastic to have you on the show. I'm sure it feels like one heck of a journey to get to this point, just describe how it feels to see some
of these ships back floating out and people aboard.
RICHARD FAIN, CEO AND CHAIRMAN, ROYAL CARIBBEAN CRUISES: Oh, it's so exciting to be on board and to feel the excitement. Everybody is happy and
the guests are overjoyed. And I'm really pleased because the crew are just so ecstatic to be here.
So, it's been a long 15 months. It's emotional to be back here in operation. But this is the first cruise out of the U.S. and we're back.
CHATTERLEY: You certainly are. Talk to me about capacity because what we're seeing there seemed to be a lot of empty deck chairs, far more space
than I think people will traditionally who have also been on cruises will come to expect. What kind of numbers of people compared to pre-pandemic are
you actually having aboard?
FAIN: Well, we have limited our capacity in the beginning because frankly, just like any new ship introduction, we always like to give the crew time
to get to know their roles and to get to know where everything is so they can do without having to think about it. So, we started here at 40 percent,
and we'll build up fairly quickly over time.
CHATTERLEY: And what proportion of those in terms of passengers and of course, the crew and the staff that you have aboard vaccinated?
[09:25:00]
FAIN: Well, on this cruise, it's been 99 percent of everybody on board has been vaccinated. The vaccines are really freeing, they're a game changer.
And while this one is a particularly high number because our guests really want to be vaccinated, we're determined to have 90-plus percent on all of
our cruises, and we think that gives people a great deal of comfort about the safety and freedom to act normal.
What's unique about this cruise is just how normal it is, how this is what we did before and we're doing it again.
CHATTERLEY: So, what about mask wearing, to your point about how normal it's going to be. For those people that are watching and thinking, I love
cruises. I want to go back on a cruise. How different just in terms of the day-to-day will it be? Do they have to wear masks? Just give us a sense of
some of the protocols.
FAIN: So, actually, I think what's remarkable is how little different it was from a year and a half ago. Masks are not required, just as elsewhere,
I used to wear them. And if you're not vaccinated, it's recommended. But since almost everybody on board is vaccinated, nobody is wearing a mask
except the crew, because we are being cautious.
And most of the things that have changed are behind the scenes, things like the air conditioning is changed. The Medical Center has been enhanced. But
basically, the only real thing, and everybody talks about the buffet and the buffet is exactly the way it was before, except now, instead of you
reaching in with the tongs and serving yourself, we have extra crews that serve you. And the buffet seems to be everybody's focal point, and it's
essentially where it was before.
So, I'd say what is truly remarkable and what people are saying to me is how unchanged it is.
CHATTERLEY: I'm fascinated by the buffet. I feel like that's one of the things where at the beginning of the pandemic, we thought that will never
come back. Are people comfortable with that as long as somebody else is serving them?
FAIN: Yes, I think it is, because we have several things. We are able to control our environment in a way you can't do anywhere else. So first, we
can keep the virus off the ship. Not absolutely totally, but largely because everybody or such a large percentage is vaccinated. But we also
have other things, we have testing capabilities, we have contact tracing.
So, even if there is a case that comes through the vaccines and through the prior testing, we can isolate it and make sure it doesn't go in everybody's
cruises and that's the beauty. So, we can actually do better than you can do anywhere on land. That was our objective. And I think we're going to be
able to achieve that.
CHATTERLEY: And final question about the financials to your point. I mean, you're keeping capacity down to 40 percent. I assume staffing levels to a
certain degree, whether it's medical facilities, cleaning staff, for example, actually were perhaps more rather than less than pandemic.
Do you even break even on these cruises, Richard? Or is it just a case of, look, let us get back out there. We'll burn some money, perhaps less than
we were when we weren't sailing at all and we'll manage through this period until we get back to normal.
FAIN: Well, starting up is better than what we were doing right with zero revenue. But no, we really need a much more normal operation, and that's
going to take a little while to get there. But the pent up demand is so great that I don't think it's going to take that long before we are seeing
that.
Our forward bookings, especially for 2022 and 2023. We've sort of in our mind said 2020 and 2021 those are disastrous years, but the longer term
2022 and 2023 are going to be terrific, and so we're really preparing ourselves for that.
CHATTERLEY: And the bookings reflect that?
FAIN: And we're learning while we're doing it.
CHATTERLEY: Yes, I'm sure, but the bookings reflect that?
FAIN: And the bookings reflect that. People want -- the bookings do reflect that. People are tired of being stuck at home, they want to get out
and we're seeing that in our bookings.
CHATTERLEY: Fingers crossed, it all goes well. Enjoy the sail. Richard Fain, fantastic to have you on. Chairman and CEO of Royal Caribbean there.
Thank you, sir.
All right, the market opens next. Stay with us.
(COMMERCIAL BREAK)
[09:32:52]
CHATTERLEY: Welcome back to FIRST MOVE. U.S. markets are up and running this Monday and a nice warm up for the week in tech with the NASDAQ hitting
fresh all-time highs. The S&P 500 also hitting records, too, after rising more than two and a half percent last week, its best showing in fact, since
February.
Reflation sectors like banks and energy are a little bit rundown today after last week's run up. That said, lots of catalysts for banks including
the prospect of more fiscal infrastructure spending and future rate rises, which of course means as a bank, you can charge more for lending.
Banks also expect to announce new dividend hikes and buybacks later today, after passing Fed stress tests last week. Airlines also on the reopening
runway. United announcing today that it is on track to post its first monthly profit since the pandemic began.
Wall Street however, doesn't expect United to post a full year profit until next year.
Now, the Vegas strip's new casino is fittingly enough, a whopping bet, $4.3 billion in fact, as it owners count on a swift recovery for Sin City.
Resort World's Las Vegas opened last week with all the fanfare you'd expect. It's the first new addition to the strip in more than a decade.
Scott Sibella is the President of Resorts World, Las Vegas, and he joins us from the Resorts. Scott, fantastic to have you with us. Eight years in the
making. Talk us through what visitors can expect, and are you hoping to catch the recovery wave of people coming back to Las Vegas?
SCOTT SIBELLA, PRESIDENT, RESORTS WORLD, LAS VEGAS: Yes, absolutely. We're so excited. We opened Thursday night. It was a fabulous opening, over
15,000 people were waiting to come into the property, and the feedback has been great and it's just great for the city to see that people are coming
back.
It's been a tough year and a half on all of us, but it's just exciting for all of us.
CHATTERLEY: I mean, this is clearly early, early, early days. But what are you seeing in terms of demand and booking as people recognize that you're
now open for business.
SIBELLA: Oh, it is just off to a great start. Just the visitations -- in the local market, everybody has come down to visit the property. Again, the
feedback has been tremendous, all positive. And again, I think it's just great that it is history that we're doing at this time. It is not only
going to help Resorts World, it's going to help Las Vegas bounce back and recover through this, you know, terrible times. So, we're really excited
about that.
[09:35:11]
CHATTERLEY: How concerned are you about just managing the COVID risks? Making sure that people are protected? I mean, what have you put in place
even just in the last several months, just to make sure that when people come, they're safe?
SIBELLA: Yes, health and safety was our top priority from day one even before the pandemic. So, when it comes to air quality, how we clean the
rooms, how you interact with the guests, how we use technology with your phones, and do things like that was, again, our number one priority. So,
we're taking that in consideration and we're making sure when visitors do come, that they are safe.
The employees with masks, we're following all the guidelines. But right now, I think people just want to celebrate. You know, it's been a tough
year and a half, like I keep mentioning, and Vegas is no better place to come than anywhere in the city to just celebrate all the things that have
happened in the past.
CHATTERLEY: Yes, let's forget COVID, please, if we possibly can. I mean, one of the things that we've seen throughout the pandemic is the shift to
cashless technology. And I know you brand yourself as being the first cashless casino. Talk to me about the digitized gambling experience,
because this is fascinating to me. How does that work?
SIBELLA: You know, we are really excited about that. Again, we took advantage of technology. So, we have cashless systems on the casino floor
at the slots and table games. So, everything is on your e-wallet, walk up to the table, swipe your card, we give you your chips, you play, swipe it
when you're done, and you just move from one table to another, to a slot machine, to a restaurant, and it's all on your phone.
And they're all RFID chips. So, the only one in Las Vegas to have this and a state of the art system.
CHATTERLEY: What capacity do you have at the resort for people coming to say just to give us a sense, I'm just looking at the scale of the
investment here. And just wondering, you know, how long does it take to recoup some of the costs particularly given, as we've discussed some of the
challenges that we're facing with the early stages of recovery here from COVID?
SIBELLA: Well, yes, it's going to take a little time to recover. But we're not going to ramp up, you know these properties are set up today to make
money right away. Now, we're going to ramp up on our occupancy. We opened up Thursday purposely to get ready for the Fourth. We think it's going to
be the biggest Fourth of July that Las Vegas has ever seen.
CHATTERLEY: Wow.
SIBELLA: Those are big fireworks. So, we'll be at a hundred percent this weekend, which is amazing when you just open your property seven days
before, but we're ready for it, and we are excited to have everybody come this Fourth of July.
CHATTERLEY: I mean, room rates begin I believe at $149.00 a night, that's midweek. What's the most expensive room that you have, Scott?
SIBELLA: Well, so today, what we really concentrate on is that non-gaming customer. So, it's not always about the gaming customer when you buy these
big suites. So, we've got suites that go for five, six, seven thousand a night. But the average rate this week is over $600.00 just for the Fourth
of July, not only here at Resorts World, but up and down the strip and demand is really good on the weekends.
And I think we'll see that throughout the summer and going throughout the year, and we'll start to get that midweek business back to help, I mean
those groups back with midweek business going into next year.
CHATTERLEY: I think this encourages more development. I mean, I mentioned in the introduction, this is sort of the first big development that we've
seen there in more than a decade. Do you think this encourages more? Are you being watched as a test case now because as I said, it's been years and
years and years in the development, and actually what's been produced is sort of very different from what was first envisaged, too.
SIBELLA: Yes. Absolutely. We're so excited to be on the north side of the strip right across the street from the new Convention Center. We're
surrounded by luxury properties and some attractions. So, we really think this is going to kick start more development here on this side of the
strip. And you saw we just, you know, the Stadium just opened a couple of new properties in Las Vegas, opened smaller, but new properties, and they
got the Sphere under construction.
So, it's good signs that there's things happening here in Las Vegas.
CHATTERLEY: Yes. And an homage to my crypto community viewers that watch this. I did read that you'd partnered with Gemini to, at some point accept
Bitcoin in the future. Scott, can you give us any hints on when people may be able to come and use digital currencies to pay for their experience
whether it's to gamble or otherwise?
SIBELLA: Yes, and we love that. But a lot of it has to do with the Gaming Control Board when they start approving these type of things. But Gemini is
a forward thinking company. They are state of the art just like we are, so you know, we have a lot in common. So, we started talking, formed a
partnership, and a lot of discussions, but a lot has to be approved by the Gaming Control Board, but a lot of good things are coming.
CHATTERLEY: Yes, watch this space. Scott, fantastic to have you with us. Good luck and we wish you well for the Fourth of July. We hope it's the
biggest weekend that we've seen and people behave safely, too.
Scott Sibella of Resorts World, Las Vegas. Great to have you with us, sir. Thank you.
All right, coming up here on FIRST MOVE. I'm joined by fashion mogul, Rebecca Minkoff, how she built her brand from the ground up and her rules
to success. That's the next. Stay with us.
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[09:42:42]
CHATTERLEY: Welcome back to FIRST MOVE. When she first arrived in New York, Rebecca Minkoff had almost nothing to her name. Fast forward, and now
she's the chief creative director and co-founder of the luxury brand that bears her name. So, how did she do it?
Well, she breaks it all down in her new book, "Fearless: The New Rules for Unlocking Creativity, Courage, and Success." And I'm pleased to say Rebecca
Minkoff joins us now. Rebecca, fantastic to have you on the show. Thank you so much for joining us.
I read an interview with you that said it was meant to be 20 steps in this book, and actually, there is a final 21st. And that is, it is endless.
Success is being able to keep going. And I think, if anything illustrates that, it's how you reacted in the face of the pandemic and the challenges
that presented to you.
REBECCA MINKOFF, CO-FOUNDER AND CHIEF CREATIVE DIRECTOR, REBECCA MINKOFF: For sure, and thank you for having me. I think when I was looking at
writing this book, in the middle of a pandemic, my business had taken a hit by over 70 percent, evaporated and gone. So, I'm sitting there rebuilding
my business having to apply the same rules I applied to start my business.
And so I wanted to really talk about that in that chapter that I used the same rules 20 years later to rebuild my business and achieve success during
the pandemic. So, I thought that that was overcome.
CHATTERLEY: Yes, I love this chapter. Just explain to our viewers what those rules are.
MINKOFF: So, I think that fear stops us from pursuing our passions and our pursuits, and I wanted to give simple rules. Going with your gut, not
asking permission for things, being willing to take risks, because sometimes you win, sometimes you learn, and really reframing failure,
because I think if we can take more risk, we'll be a lot more successful in whatever we do.
CHATTERLEY: You know, this is part of Rule 17, and I love this as well. And you say getting friendly with failure. For most people, the fear of
failure has huge financial implications. That can stop them even trying even if they think they have a great idea. And one of those things that
came out of the book for me was that you said, look, I'm never not afraid, you know, I've launched more than 60 collections. I've hosted more than 30
fashion shows and I'm frightened before every single one and actually that's okay.
[09:45:01]
MINKOFF: Yes, I think we have to get comfortable with the idea that fear was there. It's hardwired into us to protect us from bears and danger. But
when it comes to our pursuits, you have to recognize that that emotion isn't probably appropriate and to get on with it anyways.
So, the goal of the book is that you don't read it, and suddenly you have no fear. It is that you read it, and you don't let fear stop you. And I
think, you know, taking risks and failure is just part of being alive. And so, if we learn to embrace it and sort of run toward it, you get
comfortable with it, the same way that I want to have great arms and a bicep, I've got to go to the gym every day. So, you have to continually put
yourself in the face of risk.
CHATTERLEY: Yes, you don't want to talk yourself into that when it requires action. Just apply it to because again, I was reading what
happened with your business and how you had to react incredibly quickly. I mean, you had orders from department stores that literally disappeared
overnight. You had to close stores, you were like, okay, well, now I have to be online, and somehow we have to dramatically pivot this business and
provide what our customers require and just do it in a completely different way or a more accelerated way in in places that you already had, but
nowhere near the size that you're now doing, or were doing subsequently.
MINKOFF: Yes, we had to get smart, real fast. We said, okay, we're day traders. Whatever we do today is what we can eat on tomorrow. And so this
group of 25 of us galvanized together and said, okay, we all have five jobs. Now, I'm the chief copywriter, marketer, content creator, influencer,
and it took, you know, everything.
It took figuring out what would our customer respond to knowing she didn't need a bag during the pandemic, you know, and how do we service her? So, it
became more about selling, it became about connecting, it became about inspiring her. And we did that a lot through social, but we launched a text
message program, which was incredibly successful.
And we promoted everywhere we could, whether it was cross promotions, partnering with other brands. You name it, nothing was off the table. And
we said, let's take the risk. You know, other companies might be scared right now to lean in, but we're going to be there for our customer, and if
she decides to buy a bag, that's incredible.
CHATTERLEY: You know, we often talk about this recession, particularly in the United States, but beyond it being a she-session that actually it's
impacted women far more and we talk about this show in terms of startups, particularly for women being such a tiny piece of the venture capital money
that goes out there.
Just for budding entrepreneurs out there that are perhaps listening to this or thinking about reading your book, or have read your book, what's the
most important thing as an entrepreneur and as a woman fighting for capital? And do you think anything about what we've been through perhaps,
changes perspective of those that have money to invest and perhaps look for people that may not have got cash in the past to help them?
MINKOFF: I think the pandemic has given us an opportunity to wake up and say, there are tons of inequities within our infrastructure. And so now
more than ever, women should have access to that capital. It's still going to be a fight. It's why I co-founded the Female Founder Collective to
provide education and access for these women to sources of capital.
And I think that if we can begin to first educate women on how to get capital, why you should have it, who shouldn't get it, I think is even
equally more important. We're all not meant to be unicorns, we're all not meant to IPO. You can have a small, beautiful business that provides for
your lifestyle.
And I think it's -- you know, it's on us to really band together and find also allies who recognize that women should be 50/50 -- just three percent
of capital are linked to women right now, we have a long way to go. I think we band together, we make a big dent.
CHATTERLEY: What's been the greatest challenge, Rebecca, when there's been all sorts -- and people will understand that if they read the book, but
what do you see as the greatest challenge that you overcame on this journey?
MINKOFF: You know, I came in as an outsider. I was not deemed by an editor-in-chief as the new golden darling. I was really brought up here
through my consumer and it was a new time, you know, social media didn't exist. So, how do you cut through? How do you get in and be successful
without the old ways of how the fashion industry worked?
And so, I think that was a huge challenge. And once people began to look around and say, oh, wait, we should talk to our consumer. We were doing it.
And so I think, you know, I wouldn't be here today without her. But it was definitely hard to put a stake in the ground and claim my space as someone
who can completely from the outside.
CHATTERLEY: Yes, and it can apply to any industry, if you're not what you think fits, you can still make dramatic changes, and you can still get in
there. You just have to be fearless, which I think is the point of the book.
Now, I want to ask very quickly about fearless fashion post COVID. What are women going to need more than anything else as we transition back to, we
hope some kind of post pandemic lifestyle, in your view?
MINKOFF: Yes, so we actually had taken a pause on our footwear during the pandemic. People weren't leaving their houses, so why put shoes on them,
but we relaunched our shoe business just back in May and little heels, two and a half inches, we sold out immediately. And what we found is she is
ready to learn how to walk again. And then I think you know, easy breezy, nothing tight right now. We're used to our sweat pants. So, we have a lot
of incredible flowy dresses that are short and fun and show off the legs, but you can still relax as if you're wearing sweat pants.
[09:50:20]
CHATTERLEY: Yes, so the little kitten heel on the way to the enormous heels once we get back out there. Yay.
MINKOFF: Exactly.
CHATTERLEY: Rebecca Minkoff, thank you so much for joining us. And thank you for talking about your book and your experiences. Designer and author
of "Fearless." Thank you.
All right, he's fast, he is furious and he is financially reliable. Vin Diesel take the buzz of "Furious" franchise out of this world both in the
movie and at the box, so that's next.
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CHATTERLEY: You would think that blasting into space and back might be enough of a weekend activity, but the stars of the latest "Fast and
Furious" film were able to do that and pull off a pandemic feat.
The latest movie "F9" has just wrapped up the biggest weekend opening at the box office since the last "Star Wars" movie back in 2019 taking in an
estimated $70 million in North America.
Frank Pallotta is here with all the details. Fast and furious, and financially lucrative "F9" also a bonus for Universal as well, because a
big decision to postpone this for a year and wait until this moment to launch. Did you see it, Frank?
FRANK PALLOTTA, CNN MEDIA WRITER: I did see it, and I understood why it did really well this weekend. It made $70 million domestically, it's
crossed $400 million globally, and that's because this is a movie you want to see on the biggest screen. Awesome.
So, this weekend had a lot of big winners. Basically the theaters had a big win because they had for the first time really a true blue blockbuster. I
mean "Quiet Place" earlier in May did pretty well. But this was the biggest since 2019, the biggest since "Star Wars," the biggest in two years. That's
insane.
But as you were saying, this is a huge win for Universal as well, because they had to decide at the beginning of the pandemic, we're going to push
this, not a couple weeks, not a couple of months, an entire year. At the time, it was really kind of controversial. A lot of people were like, what
are you doing? But they did it and in hindsight, it looks like it paid off.
CHATTERLEY: Yes, it certainly does. And the next crucial test, "Black Widow," July the 9th, and that's going to be a double release, I believe?
Streaming and cinemas, whereas this of course, "F9" has that six-week leeway before you can access it via a streaming service. What difference we
think that's going to make?
PALLOTTA: It's going to be really interesting to see. This is why this was an important test for theaters because this is a traditional release, and
then it's going to ride into the Fourth of July holiday here in the States. And then after that, you're going to have Marvel which is the biggest
blockbuster brand in all of entertainment.
So, you're going to have the next couple of weeks really tell us what the rest of this year and potentially what the future of movies looks like and
we're going to really see if there's any sort of impact on people staying home. Remember you've got to pay $30.00 to watch "Black Widow" at home, so
there is definitely a choice Do you want to spend $30.00 and sit at home or do you want to spend $30.00 and have a night out?
[09:55:12]
PALLOTTA: That's what people are going to have to decide and that's what we're going to find out in two weeks.
CHATTERLEY: Yes, I was just doing the math, $70 million divided by $30.00, 2.3333 million people have to watch it, the equivalent. I don't know how
that is helping me, but I was just excited to do the calculation.
Frank Pallotta, we shall see is the answer. Thank you so much for that.
All right, and finally on FIRST MOVE, is the truth out there? And what does the U.S. government know about it? Well, a remarkable and classified report
to Congress has been released detailing quote, "Unidentified aerial phenomena (or UFOs to you and I), the report neither confirms nor denies
alien life," and certainly isn't making conclusions about space ships, but it is, quote, "one small step" in acknowledging UFOs are real. Physical
phenomena worthy of proper scientific analysis.
Hey, I don't believe it. There's more there. There is more there. I want the full report and I am not sure we got it.
All right, that's it for the show. Stay safe.
"Connect the World" with Becky Anderson is next. I'll see you tomorrow.
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[10:00:00]
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