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First Move with Julia Chatterley
UK PM Confirms First Death from Omicron Variant; State Media: China Detects First Case of Omicron Variant; Chinese AI Startup SenseTime Delays its Hong Kong IPO; Peloton Responds to "Sex and the City" Series Surprise; Israeli PM Makes First-Ever Visit to UAE; 100 Plus Feared Dead After Multiple Tornadoes in U.S.; UPS Hits Milestone Delivery of Billionth Vaccine Dose; Minesto's Underwater Kites Generate Electricity in the Ocean; Champions League Last-16 Draw Redone after Error; Shirley Raines Wins 2021 CNN "Hero of the Year". Aired 9-10a ET
Aired December 13, 2021 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:51]
JULIA CHATTERLEY, CNN ANCHOR: Live from New York, I'm Julia Chatterley. This is "FIRST MOVE." And here's your need to know.
Booster battle. The UK prime minister aims to provide all adults in England with the third shot by month's end.
SenseTime suspended. The Chinese AI firm postponed its IPO after its U.S. investor ban.
And Peloton's PR pedaling. The exercise giant responds to a "Sex in the City" tied stock price plunge.
It's Monday. Let's make a move.
(MUSIC PLAYING)
A warm welcome to "FIRST MOVE" this Monday and always.
And as the world take stark of the latest spread of COVID and the Omicron variant, it's also important time to recognize how far we have come
fighting this virus.
Later this hour, we'll speak to the head of UPS Health as it prepares to deliver its 1 billion vaccine dose. This time last year, if you remember,
we talked about delivering the first with them.
Also, today, flying the flag or in this case, a kite for climate change. Swedish marine energy company Minesto will join to discuss the future of
hydroelectric power, yes, using underwater kites. Don't worry. We'll explain.
Stocks in the meantime certainly flying high on the Wall Street premarket. The S&P 500 is set to rise to fresh records. Europe is mostly in the green
as you can see. And all eyes this week on global Central Banks, The Federal Reserve, the European Central Bank and the Bank of England and the Bank of
Japan, all updating us on that delicate balance between the threat of COVID versus reining in stimulus to fight the inflation battle.
Turkey's inflation response lack of it remains an escalating crisis there. The Turkish Central Bank is choosing to cut interest rates rather than hike
to control rising prices.
In the meantime, the Turkish lira tumbling to fresh all-time lows as S&P, the rating agency warns of a debt rating downgrade. And another interest
rate cut could come this week too.
And the anticipation of the Chinese Central Bank's support and ongoing property sector weakness is helping keep stocks in the green in Asia. We'll
head to China shortly to hear the latest measures ahead of the New Year holidays.
But first, we head to the UK for the latest measures there.
Prime Minister Boris Johnson has confirmed the UK first death from the Omicron variant. The government warning Omicron is now sweeping through the
country like a, quote, "tidal wave" and makes up 40 percent of cases in London.
All adults in England will now be able to get a booster shot by the end of the year in the bid to fight the surge.
Salma Abdelaziz joins us now.
Salma, great to have you with us.
Let's talk about what the health secretary described as 40 percent now of London infections being the Omicron variant. What measures are they taking
in addition to Plan B?
SALMA ABDELAZIZ, CNN REPORTER: The health secretary then went on to say that the rise of Omicron is phenomenal. We're seeing a doubling of Omicron
cases every two to three days in the country. And it is set to become the dominant strain. I know you said 40 percent of cases. It is going to be the
dominant strain by tomorrow, according to the prime minister.
Starting today, more restrictions rolling out. If you can work from home, you should work from home. Masks have been made mandatory on public
transport and inside more - and inside public venues. And you're going to see even more restrictions come through in the coming days.
Prime Minister Boris Johnson wants everyone focused on getting boosted, boosted, boosted. He was out there today with that message again. Take a
listen.
(BEGIN VIDEO CLIP)
BORIS JOHNSON, BRITISH PRIME MINISTER: We can see Omicron spiking now in London and some other parts of the country. Here in the capital, it
probably represents about 40 percent of the cases. By tomorrow, it will be the majority of the cases. And it is increasing the whole time.
And sadly, yes, Omicron is producing hospitalizations and sadly, at least one patient has now been confirmed to have died with Omicron.
(END VIDEO CLIP)
[09:05:08]
ABDELAZIZ: Now, in terms of more restrictions, the prime minister is going to be heading to parliament tomorrow to try to push through a few more
measures, including using COVID passes. So, proof that you're vaccinated or proof of a negative test at large venues and nightclubs. And there's going
to be some rebellion against this from his own party - back ventures in the Conservative Party expected to vote against these measures. But it should
still come through that's because the Labour Party will be voting for it.
But really, the prime minister's key focus here has always been vaccinations. So, you have hundreds of vaccinators across the country being
trained now, some of them volunteer, some of them paid. You have military troops as well involved in these booster campaign.
And as you pointed out, the prime minister now bringing forward that very ambitious target, that very ambitious deadline to see that he wants to have
everyone over the age of 18 get their invitation, to get that booster jab by the end of this month. I can't emphasize to you just how huge of a feat
it is. By most estimates, it would require about a million vaccinations per day. That is higher than the number of vaccinations that were being given
at the beginning of the year when the vaccines were first rolled out.
So, really, a huge and heroic effort. And I would be remiss not to mention in the middle of a scandal, at a time when the prime minister himself is
being accused of violating COVID rules. He is now taking to the podium, standing in front of the country, asking others to follow restrictions, to
be vigilant and to get boosted. Julia?
CHATTERLEY: I mean, Salma, there is so much in there. As you quite rightly point out, it's putting huge pressure on NHS staff. Do they have the
logistics in place or they're cancelling other appointments perhaps in order to facilitate this accelerated program for getting the people their
booster shots?
And I think to your point as well, an important question, are people actually listening in light of some of the distractions that are going on
for the government? You can answer that.
And then, I guess, because a lot of people watching this will instantly perked up, I think, when they heard the prime minister talked about someone
dying from Omicron. Did they elaborate any further or give us any more details on precisely what happened there, Salma? Because even if we don't
have it, I'm sure people at home will be wanting me to ask you.
ABDELAZIZ: Very good questions, Julia. We've only just heard that news of that one unfortunate tragic death to Omicron. So, we simply don't know the
details of that victim yet. We expect that his family is being informed that this is a private time for them. So, when we have those details, we
will share them.
But crucially, you did ask about the NHS' capabilities at this time. Well, there's a few different things to parse too here.
If you are asking about the number of booster shots, the actual vaccinations.
Well, the country has enough.
But do they have enough staffing?
Listen, the short answer is maybe.
What that would require is GPs to cancel appointments, put aside anything that is not emergency, that is not immediate and start putting those shots
into arms as quickly as they can. It also comes up to public compliance. People taking up that invitation and heading to their clinic as soon as
they can to get that vaccination.
Remember, the prime minister's goal is to get invitations to everyone by the end of the month. That does not necessarily mean that everyone gets
that shot by the end of the month.
And then crucially, of course, you are asking that question. The prime minister embroiled in a scandal now about multiple parties taking place
during lockdown last year by his senior staff at 10 Downing Street.
Does he still have the moral authority, the ethical authority to stand in front of the country and call for new restrictions?
I'm going to take the words here of the opposition leader, Keir Starmer, who is on the airwaves over the weekend where he said the prime minister is
a public health - he is a danger to public health and safety because of his administration's accusations, this controversy that they are mired in. Keir
Starmer calling the prime minister unfit for office.
So, you very much now have a prime minister who is moral standing is being questioned, his ability to lead and maneuver his own party is being
questioned, at the same time health authorities very concerned about the spread of this new variant during the holiday season. Julia?
CHATTERLEY: Yeah. You'd expect nothing less, I think, from the opposition leader at this moment in time. And he certainly has the authority as the
prime minister to make this suggestion and this claim of people to do more and get booster shots. The question is, do people listen?
Salma, great to have you with us.
Salma Abdelaziz there. Thank you.
To China now. Also, on high alert. State media says the country has detected its first case of the Omicron variant. A local government is
urging people not to travel during the Lunar New Year as they grapple with fresh COVID outbreaks.
Kristie Lu Stout follows this report.
(BEGIN VIDEOTAPE)
KRISTIE LU STOUT, CNN CORRESPONDENT (voice-over): COVID-19 cases continuing to rise in China especially in the factory in shipping hub of Zhejiang
province.
On Sunday, China reported 80 new local cases of the virus, including 74 in Zhejiang and this is significant. China's epicenter of infection has moved
away from China's northern inner Mongolia region to the eastern coastal province of Zhejiang, a major manufacturing hub.
[09:10:07]
It's home to tech giant Alibaba as well as a major shipping port Ningbo- Zhoushan. It's the world's third busiest container port. That back in August, a single confirmed case shutdown the port for weeks, causing
shipping congestion, and wreaking havoc on the global supply chain.
And now, more than a dozen Chinese listed companies have said that they have suspended production in parts of Zhejiang in response to local COVID-
19 restrictions. As COVID-19 cases rise, some local authorities are like last year, urging residents not to travel during the Lunar New Year.
The holiday starts January 31st. And this is what hundreds of millions of people, including migrant workers travel home for family reunions creating
in effect the world's largest annual human migration.
(on camera): Already three places are urging workers to stay put. Including a district in Zhangjiakou in Hebei province as one of the host cities for
the Winter Olympics.
Kristie Lu Stout, CNN Hong Kong.
(END VIDEOTAPE)
CHATTERLEY: And sensing troubles. SenseTime, the Chinese AI startup suspending their IPO.
Selina Wang explains.
(BEGIN VIDEOTAPE)
SELINA WANG, CNN CORRESPONDENT: Chinese tech company SenseTime is postponing its big stock market debut after once again getting caught
between U.S.-China tensions.
On Friday, the U.S. puts SenseTime on an investment blacklist. That bans Americans from investing in it. The U.S. Treasury said that SenseTime was
sanctioned because of the role that its technology plays in enabling human rights abuses against Uyghurs and other Muslim minorities in Xinjiang. The
U.S. said that SenseTime had developed facial recognition programs that can determine a target's ethnicity with the particular focus on identifying
ethnic Uyghurs.
SenseTime has strongly denied those accusations, calling them unfounded. The company said, quote, "We regret to have been caught in the middle of a
geopolitical dispute."
The United States and its allies have been stepping up the pressure on China against Beijing's alleged abuse of Uyghurs and other Muslim
minorities.
SenseTime was supposed to start trading as early as this week. It was set to raise as much as $767 billion. But the company said in a filing on
Monday that it would postpone the listing in order to safeguard the interests of potential investors. And said that investors in Hong Kong that
had already applied to be part of the IPO would get refunds.
SenseTime is one of the world's most valuable artificial intelligence companies and it's running to trouble with Washington before. The company's
Beijing subsidiary is already on a U.S. entity list which bans it from buying U.S. products or importing American technology without a special
license.
Now, SenseTime says that it is still committed to completing the IPO soon and that it will release an updated prospector for investors.
Selina Wang, CNN Tokyo.
(END VIDEOTAPE)
CHATTERLEY: Peloton pedaling furiously to contain a truly big PR challenge. The company's stationary bikes playing a pivotal and unexpected role in the
latest "Sex and the City" series reboot. But breaking news, Peloton could ultimately win the PR cycle yet. A quick warning here. Turn down the sound
now if you don't want to hear a big spoiler alert.
(BEGIN VIDEO CLIP)
CHRIS NOTH, ACTOR PLAYS AS MR. BIG, "SEX AND THE CITY": Shall we take another ride? Life's too short not to.
UNIDENTIFIED MALE: And just like that, the world -
(END VIDEO CLIP)
CHATTERLEY: Paul La Monica joins us now.
Paul, I really have to emphasize before you and I start talking. If people don't want to have the "Sex and the City" reboot's spoiled, they literally
have to turn the sound down. And you and I have to have Cheshire cat grins the whole time that we're discussing this to not give the game away.
Killing Mr. Big. Yeah, there we go. I said it. Cannot be good for this brand. When I saw it, I thought that and of course, the stock plummeted
last week. And in the space of 48 hours, Peloton have taken huge efforts to try and tackle this including that little clip there.
PAUL LA MONICA, CNN BUSINESS REPORTER: Yeah. And just like that, we have a humorous ad making light of Mr. Big's, you know, untimely demise on the -
in "Sex and the City." Just like that.
CHATTERLEY: I can barely say it.
LA MONICA: But here's the thing -- I know. I know.
I think, Julia, that this is a good marketing move by Peloton to try and counter what could be perceived as bad news. You don't want to have your
product featured in the death of this beloved character. But let's be honest.
One, it is fiction. Two, Mr. Big, as Peloton points out in their own press release and you know marketing, he did not exactly live the healthiest of
lifestyles. Maybe being on Peloton as little as he was helped save him from an even earlier death because of all the cigars and steaks and wine that he
drank, and scotch, et cetera.
[09:15:02]
But let's be really honest here. When Peloton stock went down on Friday, it is not because Mr. Big is dead. It is because Credit Suisse downgraded the
shares and slashed its price target more than in half to about $50 a share.
Peloton is a company that is really just struggling not just because there this perception that what they sell is way too expensive and that there are
many other companies out there with cheaper exercise equipment. But also, people are going back to the gym.
You know Omicron obviously is something and I think may change the calculus a little bit. But people are venturing back out. There is the joke about
you know Pelotons are just expensive coat racks.
CHATTERLEY: I mean they were flying high. During the pandemic as people could not go to the gym, to your point. Lots of people desperately buying
exercise equipment in their homes and Peloton certainly benefitted that.
But to your point, there's an expense question here. They've also had some very PR - some pretty awkward PR and painful PR battles in the past year
with people getting injured, a child actually lost their life as a result of being caught up in their equipment too. So, it's been bad.
Do you think this was a PR spin? I mean Peloton came out and said look, they approved the use of one of their actual instructors. But they didn't
know what the storyline was. And just if people aren't clear, Mr. Big did a 45-minute workout and then had a heart attack on the Peloton.
And to Paul's point, he is only a character. He's not real. No one died in the making of this production.
But into the breach, Ryan Reynolds, who did the voiceover at this commercial too. And he has previous with Peloton as well. If people
remember, the Peloton wife she got a Peloton for a gift and then it was a whole thing of her saying how it's changed her life and people said it was
completely sexist and completely inappropriate. And Ryan Reynolds stepped on that as well and hired the woman involved.
Do we think this was all setup or do we think this was accidental and they just made the commercial in the space of 48 hours using Mr. Big?
LA MONICA: I don't think that Peloton had at the back of their mind this Machiavellian and devious idea. Let's approve him getting killed with our
equipment or on our equipment in this "Sex and the City" reboot and then we'll make an ad, making fun of it, because it will ultimately be good PR
for us.
I think that Peloton tried to do some damage control and they were lucky to have Ryan Reynolds, who as you pointed out, Julia, did that very amusing ad
for his own aviation gin company featuring the Peloton wife after that much mocked ad that they had where she is all excited about working out and
she's nervous and trying to impress her husband. And it was really, I think, a tone-deaf ad that Peloton realizes in hindsight was a mistake.
So, I think this is more damage control than trying to say that this is a good thing. I think they are just trying to reclaim the narrative as it
were.
CHATTERLEY: Yes. The winners here "Sex and the City," Chris Noth, of course, the Mr. Big actor and Ryan Reynolds.
LA MONICA: And anyone shorting Peloton stock later.
CHATTERLEY: Yeah, exactly.
Yeah. But look at us, we talked about it. So, the PR worked on this case. Plenty of time dedicated to this story.
Paul La Monica, thank you for that.
CHATTERLEY: OK. Let me bring you up to speed now with some stories making headlines around the world.
A historic handshake. This is the first ever official visit by an Israeli leader to the United Arab Emirates. Israeli Prime Minister Naftali Bennett
met with the Abu Dhabi Crown Prince Mohamed bin Zayed on Monday. The two countries only normalized relations 15 months ago. It is a key sign of
Israel being welcomed more and more into the Arab world.
And Hadas Gold is following the story for us from Jerusalem.
Hadas, this is a huge moment. A symbolic, historic moment. Not just politics, I think, to be discussed between these two men, but also
commercial and economic opportunities too.
HADAS GOLD, CNN CORRESPONDENT: Yeah, Julia. Just a few years ago, an Israeli wasn't allowed to enter the UAE.
And now, today, an Israeli prime minister was not only welcomed to the country with an official honor guard when he landed Sunday night in Abu
Dhabi, but this morning, he went to the crown prince's private palace for a long meeting, handshakes, smiles. They even had lunch together.
We just heard from the prime minister's office that was supposed to be a much shorter meeting, ended up being more than four hours long, actually
making the prime minister late for his scheduled takeoff to come back to Israel.
Of course, politicians always like to show that those longer meetings mean how great the relationship was, how positive it was.
And as you noted, it comes just 15 months after those normalization agreements were signed. And I should also note, comes on the sixth month
anniversary of Naftali Bennett becoming prime minister, still a relatively new prime minister to go from Benjamin Netanyahu who was the signatory on
this Abraham Accords was supposed to go to Abu Dhabi for this inaugural visit. But several of his planned trips were canceled for various reasons.
[09:20:01]
But in the past year, just over a year since those accords were signed, there's been a flurry of diplomatic cultural tourism and of course business
relations between the two countries.
I want to cite a figure for you. In the first seven months of 2021, bilateral trade was worth more than $600 million according to Israeli
officials. That is $550 million more than an equivalent period in 2020.
And last week, the "Financial Times" quoting that there's been a flurry of corporate deals between the two countries in recent weeks. It goes to show
you how much of a business opportunity there is between the two countries. And that's exactly what the crown prince is being quoted by Emirati state
media saying that they discussed, especially means to further development investment and trade, development, especially in agricultural, food
security, renewable energy and advanced technology and health.
And while we have not heard the word Iran from either the crown prince or the prime minister, since the prime minister arrived, without a doubt they
likely discussed Iran. As that is a shared concern for both countries. They are coming at it from different points of view.
Israel views Iran and Iran trying to - Iran's nuclear program as an existential threat. And they have been increasing their rhetoric on being
ready to strike Iran militarily if diplomatic talks fail.
The Emiratis on the other said have taken a more measured diplomatic approach. And actually, just in the past week or so, and Emirati official
went to Tehran and met with the Iranian president. The first time an Emirati official has done so in several years.
It goes to show you how they are trying to sort of reapproach the Iranians once again.
So, Bennett and the crown prince likely discussing Iran. Israeli media is reporting that Bennett likely showed the crown prince some Israeli
intelligence on Iranian activity. Probably as an attempt to try to pull the Emiratis away from Iran. Julia?
CHATTERLEY: This relationship not without its challenges, but a historic moment and progress nonetheless.
Hadas Gold, thank you.
Still to come on FIRST MOVE.
Distributing hope. UPS delivers its billionth vaccine dose. We speak to the company's head of global health.
And sky-high ambitions for underwater kites. Yes, the Green tech startup on a new way to capture the ocean's power and turn it into energy.
Stay with us. That's coming up.
(COMMERCIAL BREAK)
[09:25:00]
CHATTERLEY: Welcome back to "FIRST MOVE."
More than 100 people are feared dead after a series of tornadoes ripped through Central and Southern United States. National Weather experts say at
least 50 tornadoes were reported across eight individual states.
The worst hit is Kentucky, whose governor described the devastation as quote, "unlike anything he has ever seen."
The head of the Federal Emergency Management Agency, FEMA, says extreme weather like this is quote, "The new normal because of climate change."
Brian Todd is in Mayfield, Kentucky near a candle factory. According to its spokesperson, eight people who worked there died and another eight are
unaccounted for.
Brian, good to have you with us.
Scenes of devastation behind you. What more can you tell us and what hopes for those that do remain missing?
BRIAN TODD, CNN CORRESPONDENT: Well, Julia, the rescue operation is ongoing at that candle factory that you mentioned. Those numbers that you mentioned
still current. Eight people confirmed dead. Eight people still unaccounted for.
Officials did say that more than 90 people who were inside the building at the time did make it out alive. This is a complex not far from the candle
factory. This is not the factory itself, but the shovel back there is digging through a building that was just completely devastated very near
the factory.
They just pulled out that trailer that was lodged in the building there. This is part of the problem that rescue teams have to deal with. They have
to clear out huge amounts of very heavy debris and rubble just to try to get to anybody who they might be able to find in these buildings.
Now, as for the factory itself, we are at a military police checkpoint not too far from the factory. The police will not let us get any further that
this point. But we have been seeing resources pouring in here all morning. Rescue crews, response teams, communications crews, coming through this
checkpoint. They are streaming in toward the factory trying to find other people alive.
Again, eight people confirmed dead. Eight still unaccounted for. 90 people made it out alive. We may get some updated numbers within the next hour
from Kentucky Governor Andy Beshear who's going to be giving a briefing. So, hopefully, we'll know more after that 10:00 a.m. Eastern Time briefing
from the governor.
Also, what Governor Beshear did say said about the rescue operation here at the candle factory. He said, you got basically 15 feet of metal for these
crews to go through, plus cars that are piled on top of that, plus there are corrosive materials, chemicals that are kind of you know emanating all
around the building.
So, those are some of the impediments that rescuers have to deal with, Julia, as they sift through what is left of that candle factory to try to
find some survivors. Hopefully, we'll get some good news. But again, at least eight people confirmed dead from the collapse of that candle factory
on Friday night.
CHATTERLEY: Yeah. Monumental rescue effort underway there, Brian, as you - as you described. And our hearts and thoughts with all those involved.
Thank you for that report there. Brian Todd in Mayfield, Kentucky.
You are watching "FIRST MOVE." More to come.
(COMMERCIAL BREAK)
[09:30:57]
CHATTERLEY: Welcome back to "FIRST MOVE."
And U.S. stock markets are open for business this Monday. Modest gains in early price action but enough to propel the S&P 500 into fresh record
territory.
Apple beginning the week just points away from achieving a major milestone of its own. A $3 trillion market cap. Yes, Apple poised to reach the new
milestone when it hits just under $183 a share. So, we have a little way. Just around $181 as we speak. Apple stock up more than 35 percent so far
this year.
In the meantime, Elon Musk, the apple of "Time's" eye. The magazine has just named its "Person of the Year." "Time" citing Musk's work as both CEO
of Tesla and SpaceX calling him, quote, "Perhaps the richest example of a massive shift in our society," close quotes.
Were they being cute there? Which is, maybe.
OK. Let's move on.
Since the pandemic began, an unfathomable number of parcels have been shipped around the globe. With a few there was lifechanging as UPS' vaccine
shipments. The company has now hit a key milestone. The delivery of its 1 billionth dose.
Now 8.5 billion vaccine doses have been administered around the world. So, a significant chunk of those traveled with UPS specifically. This comes at
a time when COVAX, a key partner warns that it will fall short of vaccine delivery goals in part due to logistical issues.
So much to discuss and I'm pleased to say joining us now Kate Gutmann. She's the head of UPS' Global Healthcare division.
Kate, fantastic to have you on the show.
Did you imagine this time a year ago and it's almost exactly to the date that you would be able to deliver 1 billion doses in the space of a year?
And we're talking in over - what -- 100 different countries.
KATE GUTMANN, CHIEF SALES AND SOLUTIONS OFFICER, UPS GLOBAL HEALTHCARE: That's right. And I think that's the key part. I mean the span a billion
and delivered at a 99.9 percent on time performance. We are just so honored to be part of this great effort to deliver hope with these COVID-19
vaccines. And just within a year, that billion, to your point and the complexity of logistics. We've got it down. The precision of UPS and our
technology really helps us to give that assurity (ph) that you need for sensitive deliveries like these.
CHATTERLEY: Talk about that technology because I vividly remember this discussion. From this time last year, the premier tracking technology that
you have where at any point in your network around the globe, within a 10- foot location, I think, from memory, you can precisely say where any shipment is. This is mindboggling to me but it's why you're able to be so
precise about the 1 billionth dose delivery.
GUTMANN: That's right. And it is amazing. It is embedded technology into the label. It helps us to get right within arm's reach of the vaccine and
that's just to prepare for anything that could occur that is unexpected. Weather conditions or just any interruption globally. We then have a
command center that watches these vaccines moving through and we have contingencies to ensure we maintain our commitment to the customer.
CHATTERLEY: I mean what was so challenging about this as well, was the storage conditions that a number of these vaccines required. I mean colder
than must. Again, I remember this some a year ago where we all mind boggled. I believe you've used more than 3 million pounds of dry ice along
the way. Have you had much spoilage? Can you tell us? Because I know you have senses inside the packages as well just to make sure that the
conditions don't alter to a point where - where the vaccines are - or have deteriorated to a point upon which they can't be used. How much spoilage
have you had?
GUTMANN: And so, we have not had spoilage. And that's - that's really the planning that gets done. And again, this 24/7 global operation that watches
these vaccines that powered by that technology. So, we ensure that we don't have temperature excursions. We do monitor from end-to-end. And that will
also mean within the distribution centers that we actually run.
[09:35:02]
We fortify with the dry ice production. And as you said, 3 million pounds strong. Just within a year, we built this all out and it really helped to
support this temperature controlled and very sensitive shipments. So proud of the team and what we're delivering at again 99.9 percent on time.
CHATTERLEY: I mean it is about UPS but it's also about the partners that you have used along the way. And then we're talking about rural and remote
parts of Africa, of South America, or of Asia, too. A lot of the responsibility particularly of the last mile or what we call the last mile
has come down to some really crucial partners along the way too.
GUTMANN: That's right. I mean there's really a philanthropic effort to ensure that there's equity and vaccine distribution. And our UPS foundation
participates in that. We've already given over $22 million of support for the vaccines and over 30 million doses delivered just supported by UPS.
But you bring together all the alliances that we know with COVAX and Gavi and reaching far parts of different countries within Africa, certainly
helping Indonesia when they had the crisis back mid-year.
So, we are glad to participate and listen, we're all just at the beginning stages of this ensuring that everyone throughout the globe has the same
access for health that each of us gets to have.
CHATTERLEY: I mean COVAX is warning that actually and particularly if we look at parts of Africa and we've had this conversation on the show
recently. In certain areas, they are simply not managing to deliver and vaccinate the people that they'd like to. And some part of that is
logistics.
From your experience, what are you seeing? And where can these things be improved? Even if it is not a UPS challenge to fulfill, where can this be
improved in your mind? Because you have a better sense probably than many others, most others.
GUTMANN: Well, it is. We are talking about countries that don't have developed infrastructure many times.
CHATTERLEY: Right.
GUTMANN: And so, we have done some via drone delivery. Others will go into alternate airports working with partner companies that tend to have smaller
feeder aircraft or hopper planes, if you will, that can reach some of these harder areas to get to. And because you also have to ensure security
because these vaccines have value so there is always especially in remote countries that don't have developed police support and the like. You have
to ensure that you modify some of the delivery addresses to really maintain security.
So, we do that. We work together whether we're delivering or not, we are bringing our logistics expertise to those alliances that are just so
meaningful and important for the world.
CHATTERLEY: Yeah. And couple of questions which pertain to the broader business. Adjustments, changes that you are making to protect your workers
at UPS in light of a pickup in COVID cases all over the world. And, of course, the spreading Omicron variant. And how that relates to hiring
people.
I see on your web site even just in the United States looking at hiring. Globally 100,000 additional workers. And they can sign up on the web site
and be hired in 30 minutes or less.
What requirements? Are vaccines required to be a new hire at UPS? Even if it's just a seasonal worker. What can you tell me about preparations?
GUTMANN: Well, we are, as I said, proud to deliver the vaccines and help the world on the path to health. So, when we are actually looking at
ourselves and our hiring policies, we determined what jobs require vaccination because of the interaction that is related to that and then
those that mask is absolutely required. And we have done it by job category.
So, it differs. But we feel like we've provided and continued to provide the most updated information and we strongly encourage our employees to get
vaccinated. Again, to just help the whole community on the path to health.
CHATTERLEY: Can you be specific? If you are in an office, do you have to be vaccinated?
GUTMANN: In many of our offices with their jobs that they require interaction with customers or office.
CHATTERLEY: Right.
GUTMANN: Interaction with each other, the answer is yes. We do for instance in my department. We have the vast majority. We interact with customers.
So, we do require vaccines. Yes.
CHATTERLEY: Yeah. Thank you for the context there.
Kate, great to chat to you. Thank you to you and the team for all the work -
GUTMANN: Thank you, Julia.
CHATTERLEY: -- that you are doing and for getting those vaccines around the world.
GUTMANN: Thank you.
CHATTERLEY: Head of global -- UPS Global Healthcare there.
Thank you again, Kate. Great to chat to you.
OK. Coming up here on "FIRST MOVE."
A big splash for ocean energy. How these underwater kites are generating clean electricity all from the power of the ocean.
That's coming up, next.
(COMMERCIAL BREAK)
[09:42:22]
CHATTERLEY: Welcome back to "FIRST MOVE."
And take a look at this. Now, they look just like aircraft. But these are actually high-tech turbines generating electricity from the power of the
ocean. These underwater kites were developed by Swedish marine energy company, Minesto. And it says its deep green technology can offer clean and
reliable at electricity at much lower cost.
And joining us now, I'm pleased to say, the CEO of Minesto, Martin Edlund.
Martin, I'm so excited to have you on the show.
I saw that you're asked to summarize the operations of the company. And you said, we fly a kite in the ocean. And this is not that simple but that's
definitely catchy. Explain the vision on what you guys do.
MARTIN EDLUND, CEO, MINESTO: Yeah, we - a decade ago, we came up with this concept of flying kites underwater to harvest the kinetic energy of the
oceans. And it's been quite a fascinating journey over the years that culminated last - this year in agreed connected system in the Faroe Islands
for the first time. So, it's been a historic year for us in that respect.
CHATTERLEY: Oh, we'll talk about the Faroe Islands because I want to see what your - what you've learned and the power that's being generated there.
But just in terms of the practicalities because I know a lot of people will be watching that video and just trying to understand exactly what they're
seeing.
It's a wind turbine effectively attached to a kite that's then chained to the ocean bed and it sort of flows within the currents of the water and
captures those. But it's actually clever than that because it's sort of the way that the movement takes place is a figure eight. It actually creates a
greater amount of energy than just the current would provide.
EDLUND: Yes. The principle we're using, it's not just to please the engineers to get something exciting to work on. It's really to use the
principle to really, really capture the energy in the ocean. I mean we have - we have a lot of slow moving, heavy water in the ocean. So, it is a
matter of covering a large cross section of the ocean with this system.
So, instead of a submerged windmill, we let the system loose in the large trajectory - in a large trajectory of an eight. And that means that we can
- we can harvest the energy from that larger area when the water passed through. And there's a turbine on board that captures the energy into a
generator and the whole principle is like a sailing boat.
[09:45:00]
Because you can sail a lot faster than the wind is blowing. And we are flying a lot faster than the tide or the ocean current is moving. So,
that's sort of the core of this principle.
CHATTERLEY: Yeah. There's an amplifier effect. That is the word I was searching for and I couldn't think of.
EDLUND: Yeah.
CHATTERLEY: It's a larger area and the speed is several times that of the current of the water.
Talk to me about the Faroe Islands. What have you managed to achieve there and with how many kites?
EDLUND: Yes. We have two small commercial scale kites grid connected there, which you know for high-tech startups in the energy sector, you hardly
exist until you have proven that you actually can deliver your core value that is electricity to your customers.
CHATTERLEY: Right.
EDLUND: So, in that sense, it's been in a great achievement. And you can imagine, it takes some engineering to get this principle effective, stable
and to optimize how everything is working. So, we've had a lot of hard work and testing over the last year in this island in the middle of the
Atlantic. Doing it together with the local utility that's called SEV.
CHATTERLEY: And so, it's actually been providing electricity to the Faroe Islands?
EDLUND: Yes. So, we can brag and say that we - we offered some of the Christmas lighting to a village called Vestmanna this -- this winter. So,
it's still a small scale, but for us of course to be able to get all functionality and performance in place has been sort of the foundation to
take the next step into building large underwater farms of those systems at significantly larger scale.
CHATTERLEY: OK. So, there are some challenges that I want you to walk through with me. There is technology involved in this because tidal
currents and ocean currents are different. You have slack tides, and you have technology, I believe, built in to allow you to move to an appropriate
position. So, you can effectively chase the choppiest water to ensure that you are generating electricity. Is that correct?
EDLUND: That's true. And it is a matter of having the system to turn when the tide goes down and shift direction. So, there are a few things to think
about that it should stop at the right moment. It should start in the low flows and then behave in a stable way through - through the shifting speeds
of the current. So, it's good. It originates from an aircraft manufacturer. So, the whole control system idea was something worked on already from the
start so to speak.
CHATTERLEY: Can you give us a relative cost comparison? Compared to hydroelectric power for example or even above water, a wind farm for
example, that's also using turbine technology. What is the relative cost?
EDLUND: Yes, I would say today, if we would install a 10 megawatts array on eight large water machines here. We would talk about twice the cost of
offshore wind today.
CHATTERLEY: Twice the cost.
EDLUND: But if we were to compare offshore wind were, you know 10 or 15 years ago, we are actually at a lower starting point. So, perhaps we are a
bit, you know, bold in saying it, but we believe that the low weight of the system and the higher density of the water puts us in a position that we
quickly will climb a learning curve and push costs down lower than offshore wind which would make us a commercial alternative quickly to be
complimentary to solar and wind for the 100 percent renewable energy systems that we all - all know by now that we need to strive for.
CHATTERLEY: Yeah. That's the key. So, how? How do you drive the costs down? And Martin, there will be people going, hang on a second, what does this
mean for marine life? What does this mean for boats sailing past as well? Because it almost looks like a sunk plane. Some of those images are
actually very striking from the water down. That looks dangerous to me for ocean life.
EDLUND: Yeah, I mean that's of course something we have been working on from day one when we started ocean testing six years ago. So, to be
working, I think, up to now five, six universities and authorities in the UK, and in the Faroe's too, to really establish the facts around how sea
mammals, fish diving birds, how they behave relative to the system. And it's a question but we have to take really seriously. Also, from an
investor perspective learning from the history of build up the wind for instance.
But we can say that that there has been zero incidents and the researchers are looking at the data and can just sort of conclude that the avoidance
behavior of the mammals is sort of far within the safe margins for this. So, where we are now, I think, we safely can say that we are in harmony
with nature.
CHATTERLEY: And you have sensors on it, very quickly. So, you would know if there were any collisions.
EDLUND: Oh, yes. We would do that.
[09:50:00]
We have underwater cameras. We have sonar systems. And we've had for -- for many locations, also mammal of service, look, you know standing watch to
study the behavior of seals and dolphins and so forth.
CHATTERLEY: Good.
EDLUND: So, it is an area of great importance, but we are very confident that we are on the safe side here.
CHATTERLEY: I'm not going to get shouted out by any animal rights watch people who are maybe watching the show. I'm trying to imagine what kind of
mind comes up with this.
Martin, come back and talk to us soon. Fascinating to watch your progress. Thank you for joining us today.
EDLUND: Thank you very much. Glad to be here.
CHATTERLEY: Martin Edlund, the CEO of Minesto there.
EDLUND: Bye-bye.
CHATTERLEY: OK. Coming up on "FIRST MOVE."
Champions League chaos. One of the last 16 draw had to be redone today. We'll explain next.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "FIRST MOVE."
And football fans need to focus. The Champions League round of 16 draw was redone this hour after a mistake by UEFA. They declared the initial set of
ties void citing a technical glitch.
Darren Lewis joins me now.
Darren, I blame the computers. Clearly as do they. But the first round of this setup some incredibly mouth-watering ties. What happened and what does
that take two bring us?
DARREN LEWIS, CNN SENIOR SPORTS ANALYST: Well, Julia, listen, the inquest is still ongoing as to how something so simple could go so very wrong.
Villareal, the champions of the Europa league, had drawn Manchester United in the draw for the latter stages of the Champions League.
And yet, they had to go back into the pot because they could not be drawn against each other. They'd already played each other in the group stages.
And so, what happened was because there had been so much chaos and they weren't in the pot for the potential opponents of Atletico Madrid, the draw
had to be redone completely. It meant we were robbed of a face-off between two of the world's greatest players, Lionel Messi and Cristiano Ronaldo.
The draw was redone at 2:00 p.m. UK time. And there have been some fascinating ties. One of which includes PSG, the French champions up
against Real Madrid, winners of the last 10 matches in a row. One of the most celebrated clubs in European club football.
But the inquest will continue. And the reflections will also be ongoing as to why something could happen that would have robbed us of such a wonderful
tie and the potential to really enjoy a feast of football.
CHATTERLEY: We were robbed of that Messi-Ronaldo tie up. One of (INAUDIBLE) Liverpool. Liverpool.
Anyway, Darren, thank you for that. Darren Lewis.
[09:55:00]
All right. And finally, on "FIRST MOVE."
10 amazing heroes were celebrated by CNN last night. Among them. A woman who brings beauty and hope to homeless men and women. And she got a special
award.
(BEGIN VIDEO CLIP)
ANDERSON COOPER, CNN HOST: The 2021 CNN Hero of the Year is -
KELLY RIPA, CNN HOST: Shirley Raines.
COOPER: Shirley Raines.
(END VIDEO CLIP)
CHATTERLEY: Shirley Raines is the CNN Hero of the Year. Raines and her nonprofit beauty to the streets have been a mainstay on Los Angeles skid
row for the past six years. She provides food, clothing, hair and makeup services to thousands.
(BEGIN VIDEO CLIP)
SHIRLEY RAINES, 2021 CNN HERO OF THE YEAR: First and foremost, I want to thank the amazing nine honorees I have been with. This journey has not been
easy. I stand before you today, a very broken woman. My life would never be the same since my son died. But it's important that you know that broken
people are still very much useful. We are very much useful.
(END VIDEO CLIP)
CHATTERLEY: I was in the audience and I watched that. And there was not a dry eye in the house. It is worth watching just to see what some of these
incredible people did.
Now if you'd like to support Raines or any of the nonprofit organizations at the Top 10 CNN Heroes, you can also make a donation. All donations made
by January the 3rd will be matched by Subaru up to $50,000 per hero.
That's it for the show. Stay safe.
"Connect the World" with Becky Anderson is next.
And I will see you tomorrow.
(COMMERCIAL BREAK)
[10:00:00]
END
