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First Move with Julia Chatterley

Fed Set To Raise Rates To Help Tame Inflation Next Month; Disney Plus Subscriber Growth Beats Expectation; Barbie Boom Helps Drives Sales Surge For Mattel; Truckers Blocking-U.S.-Canada Border Bridge Vow To Stay; Strong Uber Earnings As Ride-Hailing Passengers Return; Prince William Represents UK At Dubai Expo. Aired 9-10a ET

Aired February 10, 2022 - 09:00   ET

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

[09:00:00]

(COMMERCIAL BREAK)

ELENI GIOKOS, CNN HOST: Live from Dubai I'm Eleni Giokos in for Julia Chatterley. This is FIRST MOVE and here's your need to know. Inflation

increase U.S. consumer prices rise, 7.5 percent worse than expected. Military maneuvers Russia and Belarus begin a series of massive troop

exercises. Streaming surge Disney Plus delivers numbers to delight investors. Its Thursday let's make a move.

All right, well, welcome to FIRST MOVE great to have you with us this Thursday. Let's get right into today's big market moving inflation data and

shocking the market just released numbers show U.S. consumer inflation rising at a stronger than expected 7.5 percent year over year rates in

January.

The biggest jump in prices since the early 80s, the month over month change also taking a big jump up six tenths of a percent. We were expecting to see

price hikes moderates on a month to month basis. So today's data clearly not good news for U.S. consumers worried about rising prices and bad news

for investors and the inflation fearing fed as well.

U.S. Futures pulling back sharply after today's data on concern, the U.S. Central Bank will have to act faster to tame inflation. European stocks

mostly lower right now as well.

Now, the European Commission today raising its inflation outlook for the current quarter to 4.8 percent and the Head of Germany's Central Bank now

saying the ECB could raise rates later this year. It's not all about inflation.

However, Disney and Uber shares are set to rally in early trading after reporting strong quarterly results so details on that coming up. But we

begin our drivers today with hot inflation read. We've got Matt Egan joining me now. Matt, great to have you with us! I mean, when I see 7.5

percent the last time it was at this level was the year I was born.

I don't want to give away my age. But I mean that's how long ago it was. And it's pretty shocking, because inflation has always been a worry. And

now you've got the Fed that has been really reticent to hike rates because they worried about what that would do to the demand environment. But you're

sitting with a bigger problem, a possibility of runaway inflation.

MATT EGAN, CNN REPORTER: Yes, Eleni, you know, many of us have never seen inflation readings like this in our entire lifetimes. And in many ways,

this report was worse than we were expecting, you know, consumer prices up 7.5 percent; the expectation was for 7.3 percent.

So this is not only acceleration from December, but it's also worse than had been expected. And this was being driven largely by price increases on

food, on electricity, on electricity on energy, and also shelter.

Now there had been some hope, that month over month, we'd see a cooling off of inflation. That's what many of us had expected; the White House was

going to be trumpeting. But that did not happen. We saw month over month prices accelerate to 0.6 percent. That's above 0.5 percent previously, and

it'll also core prices are staying hot as well.

This is not just about food and energy. Now this is going to certainly keep the pressure on the Federal Reserve to actor this is only going to bolster

the claims by some economists, maybe at this point, many economists that the Federal Reserve is behind the curve.

Because remember, while Congress and administrations the Biden Administration, and the Trump Administration's they pumped in trillions of

dollars to try to rescue the economy, a lot of that aid, if not all of it has actually expired. The Federal Reserve on the other hand, they

successfully rescue the economy and financial markets.

But that stimulus from the Fed really hasn't ended yet. They're still buying bonds, that are going to wrap up next month, and interest rates are

still at zero. So they're going to be raising interest rates, but that takes time to actually have an impact on inflation Eleni.

GIOKOS: Absolutely. I mean, look, and you make such a good point, because central banks and the Federal Reserve should be proactive in anticipating

inflation, because it's harder to bring it down once you have inflation and when you see it at this level in the United States. It is peculiar and it

is of concern.

So here's the thing, what are investors going to sort of do when you know inevitably you're going to have to see a hiking of rates which you rightly

say sitting at 0 percent that have helped to add liquidity to the market and you mentioned the stimulus which is actually of course a result of

inflation down the line because you're increasing money supply.

[09:05:00]

EGAN: Yes, this is a very difficult position for the Federal Reserve and for investors, because remember, you know, markets have become almost

addicted to free money from central banks. I mean, if you look at the last 12 or 13 years rates have been basically at zero more often than not, so

the fact that they're coming up is going to be a challenge, the fact that there's no more QE is going to be challenged, the Fed has to start

shrinking its balance sheet.

I think that you know, the economy is strong enough corporate profits are strong enough where a few interest rate hikes, no more QE, that should

really be a huge problem for the market, I think where you get into some bigger challenges is if the Fed has to increase rates not three or four

times with five or six or seven times, when you start to talk about bigger interest rate hikes.

There have been rumors of, you know, a half a percentage point move instead of a quarter percentage point move, if the Fed has to move quicker in 2023,

because in a few months, we're still talking about six or seven or I don't know, 8 percent inflation.

That's where it becomes a bigger issue for both financial markets and for the real economy, because both have really become very accustomed to very

low borrowing costs.

GIOKOS: Absolutely. And to create a shock with inflation, you actually have to hike rates quite substantially. Matt Egan, thank you very much. Good to

see you.

Now we head to Beijing, where the Winter Olympic Games are underway. Now the Medal Ceremony for the Figure Skating Team competition is still delayed

after a Russian athlete tested positive for a banned substance.

Christine Brennan is live in Beijing with the latest. Christine, good to see you! I mean, look, we the big question is what will happen with a

ceremony, we're talking about a minor that has been found to be using a banned substance? And now the big question is are we going to see people

losing points? Is there going to be a shift and who actually won the gold medal?

CHRISTINE BRENNAN, CNN SPORTS CONTRIBUTOR: Exactly, yes. There are a lot of questions still about exactly what is going to happen Eleni? The, it's

confusing, and there's a real void, the International Olympic Committee, you would expect would be leading the way on this. They're not. And so

everyone's kind of filling the void with more questions.

But the facts are these there is that positive doping test within the Russian team, the Figure Skating Team that won the gold medal dominate the

competition USA was second in Japan was third. And that we know it's a minor. And we know the only minor that is, the rush was on the Russian team

is the star who is expected to win the gold medal in the women's competition, Kamila Valieva. So there's that. And after that, there's

uncertainty.

When will the medal ceremony happen? At all, I mean, the amount of organizations that are got their kind of, you know, hands on in the, in the

soup, so to speak, trying to figure out what to do. Where this goes from here? You mentioned that 15 year old that concern about her?

Yes, in fact, if she tested positive, which we you know, obviously, that's what we believe happened and what the authorities are saying, well, is it

her fault? Or is it the fault of the coaches or the other adults in her life? So many questions so few answer obviously, we're on top of it here.

But it's not easy for sure to figure out where this story goes next.

GIOKOS: And you know, it's such a good point, because you mentioned the Olympic Committee, and they're not taking the lead that's going to take the

lead on this do you think? What happens next was just wait and see at this point in time?

BRENNAN: Yes, so I think there's a lot of questions of just that we don't have answers to and I'm asking them, a lot of us are, you know, it's, I

know, it's confusing for people watching at home, because you're trying to say, OK, if Russia, in fact, doesn't get the gold medal, where's this

ceremony, U.S., Japan, Canada would move up to third place. So there's that issue.

And then of course, the games go on, and you've got figure skating events. So that team event is early on. And then you've got the men's competition

of course, ending with Nathan Chen winning ice dance comes up next in the women's competition in pairs.

And so this really threatens I think, to kind of swallow up the games and if we're talking about this controversy as we have been as many people

around the world are in the fascination with this story and the various pieces of the story well then it does that take away from the athletes

themselves and the storylines that we're so used to here.

Already, these games have been so wrought with controversy and so politically charged and I think in many ways, this is just in keeping with

that and I think we're going to see a lot more of that conversation moving forward of you know exactly what, we know what the storyline will be moving

forward.

GIOKOS: Christine great to have you with us thank you so much for that insight Christine Brennan for us right.

[09:10:00]

GIOKOS: For the next 10 days Russia says it will be holding joint military exercises with Belarus. This as fears remain that the Kremlin is planning

an incursion into Ukrainian territory. CNN International Diplomatic Editor, Nic Robertson joins us now from Moscow.

I mean, I thought there was a door of hope with, you know, possibly some kind of diplomatic solution. But these military exercises what message is

Belarus and Russia sending to the West?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: The specific message of these exercises is that they will be better drilled and know how to defend

their borders against all sorts of possible enemies. Whether it's sophisticated reconnaissance missions, or terrorists or just common or

garden invasion, they'll be ready.

The message that's being received by NATO and the nation's around Belarus, specifically Ukraine is that Russia is using this as a means to sort of

muscle up its demands for NATO to pull back its eastward expansion. President Putin has been silent about what his next move is going to be.

But these military exercises in a way speak for themselves. You had British Foreign Secretary here in Moscow today meeting with her Russian counterpart

Sergei Lavrov. They were clearly talking past each other. And they said pretty much the same thing. There was quite sort of a heated press

conference in diplomatic terms.

Sergei Lavrov of saying, you know, we're talking but no one's listening. And the British Foreign Secretary saying, you know, on the issue that NATO

is a threat to you, and his lead and is breaking, you know, international agreements over that. That's just not true.

This was very abrupt language. And we heard the same British Prime Minister today, meeting with the NATO Secretary General in Brussels, also meeting

with his, with his Polish counterpart and his language there, again, equally uncompromising about the threat that he perceives coming from

Russia.

(BEGIN VIDEO CLIP)

BORIS JOHNSON, BRITISH PRIME MINISTER: We won't accept Poland, and the UK won't accept a world in which a powerful neighbor can bully or attack their

neighbors. And we won't accept it because we believe all people, no matter where they are born, have a right to live safely, and choose who governs

them. And to decide what organizations they aspire to have membership of or indeed, I will look at what bodies a while to cease being members of and we

will not compromise on that principle.

(END VIDEO CLIP)

ROBERTSON: So in terms of British diplomacy, Sergey Lavrov, the Russian Foreign Minister, saying about its meeting the list trust that he didn't

think that they had any common ground at all. And I think the million dollar question at the moment is what traction real traction if and he did

President Macron the French president get when he came here on Monday, earlier this week, but the military operations speak for themselves and so

much has happened, even since Monday.

GIOKOS: Yes. Right, Nic Robertson, thank you very much. Little bits of magic back at Disney and that thanks to a strong performance from Disney

Plus, the streaming service gained nearly 12 million subscribers in the first quarter, a positive sign after only 2 million in the fourth quarter.

CNN's Frank Pallotta joins me now, Frank, I mean, looking at the 12 million subscribers, very encouraging. And we also know Disney parks are starting

to get some business back; we know that they were completely shut down over COVID. But overall, this is very encouraging to see Disney sort of back on

track.

FRANK PALLOTTA, CNN MEDIA WRITER: Yes, it's really funny to think if you talk to investors 24 hours ago right now, I think a lot of them would have

had a lot of concerns a lot of worries about Disney as a stock. Now, why is that?

It's because the last quarter, Disney Plus only gained about 2 million subscribers, that's really a lackluster amount. Then in between the last

earnings, Netflix came out with their own earnings that show their guidance to be really lackluster as well.

So there was this whole kind of anxiety about streaming at large, like it has streaming burst the bubble kind of thing. Now Disney comes out of you

know, their earnings yesterday with nearly 12 million new subscribers almost 130 overall, and now things are pretty copacetic in the Magic

Kingdom.

GIOKOS: Yes, OK. So let's take a look. I mean, you spoke about sort of the streaming wars. And I guess the question is have the sort of the streaming

companies reached a plateau in terms of the number of subscribers and consumers they can learn in?

But these numbers speak of something very different. But I guess the question is just how loyal are the subscribers? And are we going to expect

a lot of volatility within these numbers going forward?

PALLOTTA: I think there's always going to be a level of volatility when we come to streaming just because it's a content based business. So my theory

on why Disney had a better quarter than the quarter before at least in terms of Disney Plus is because the content was way better.

[09:15:00]

PALLOTTA: In the last few months they had Hawkeye and new Marvel series they had "Get Back" which was the eight hour long Beatles series, which was

very popular by all the data that was out there. Not to mention at the end of the quarter, they added "Encanto" a very viral and loving kind of

enjoyable animated film in the book of Boba Fett, which was from Star Wars.

I think what's really interesting here too, is that you mentioned the parks. And that's the big difference between Disney and Netflix and Disney

and some of the other streamers are that it's not putting all of its eggs in the streaming basket; it is the most important thing that the company is

the thing that pretty much drives the stock.

But what also helps is that revenues at the parks were up double from last year because they were still suffering from the pandemic. So unlike

Netflix, which is really just all streaming all the time, Disney can do pretty well in streaming and then add a cherry on top with their other

businesses.

GIOKOS: Yes, very quickly Obi-Wan Kenobi that's due to come out as well, right? That's going to be a big one. And you're talking about content.

PALLOTTA: Yes, so may 25, will be the new series for Obi-Wan Kenobi starring Ewan McGregor. Yes, it's one of the most beloved characters in the

entire canon. People are going to go crazy for it. And I am one of those people probably.

GIOKOS: Yes, all right. Yes, I think we're all going to tune in for that. Thank you very much, Frank. Good to see you much. Appreciate it.

Alright, so now these are the stories making headlines around the world. Around the world COVID-19 restrictions are starting to ease up starting

Thursday people traveling to India from outside the country no longer have to quarantine for a week just monitor their health for 14 days. And New

York just lifted its indoor mask or vaccine mandate for most businesses because of a decline in COVID cases and hospitalizations.

An upcoming book by New York Times Reporter Maggie Haberman says Former White House staff members believe President Donald Trump tried to flush

printed papers down a toilet after finding many pieces clogging up the pipes. The revelation comes as the former president is being accused of

failing to preserve government documents.

And still to come on FIRST MOVE Barbie boom locked down little ones drawing blockbuster sales for toymaker Mattel. I'll speak to the CEO. And fantasy

takes flight to the civilian start of making a car cleared for takeoff. Stay with us.

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[09:20:00]

GIOKOS: Welcome back to FIRST MOVE. U.S. stocks remain on track for low open after the release of today's hotter than expected read on U.S.

consumer inflation as you can see were red across the board inflation rising at a worse than expected 7.5 percent last month due to in part

higher prices for food as well as energy U.S. 10 year treasury yield taking a big jump higher after today's data, touching 2 percent levels for the

first time since the summer of 2019.

And big earnings also in focus today will well-known consumer brands like Coca Cola, Pepsi and Twitter all reporting strong sales growth for Coke and

Pepsi Twitter higher pre market as well as you can see, Pepsi is coming under pressure there but Coca Cola and Twitter well in the green.

Earnings came in - earnings and sales came in weaker than expected for the likes of some of those companies Twitter's standing by its yearly guidance.

However, the company also announcing a $4 billion buyback scheme as well.

Now Mattel said to jump over 7 percent at the open. The toymaker reported an almost 20 percent rise in sales in 2021 a Barbie Boom COVID lockdowns

and 21st century revamp revitalized some of its key brands. And the CEO says it's the beginning of a new era with the company now in growth mode.

Joining me now is Ynon Kreiz CEO of Mattel really good to see you Ynon. Thank you very much. I was going through your results in something that

really stuck out from the products continue to resonate with consumers at levels we have not seen in years.

It seems that COVID you know really bolstered a lot of your sales; you've done really well on your operating margins, which was slightly lower than

you had anticipated. But it's incredible to see these numbers coming through what would you say was the backbone of the latest financial

results?

YNON KREIZ, CEO, MATTLE: Yes, Eleni. This was another exceptional quarter and year for Mattel, we outpace the industry and gain share globally, for

the second year in a row and in every measured market.

This was the highest annual growth rate in decades for Mattel with growth in six of seven categories where we operate in each of our power brand,

Barbie, Hot Wheels, Fisher Price, as well as American Girl. So our turnaround is complete.

The company is in growth mode. And the strength is broad based. This is not just being COVID related; we outpace the industry for six consecutive

quarters. We're not just riding the wave, we showing strength that is comprehensive and broad based and we expect to continue to gain market

share with strong growth in 2022 and 2023. And they're not stopping there.

GIOKOS: Look, I have to admit there's certain parts of my house that have a frozen theme else is very much part of my life. And now it's part of yours,

its back with you, heroines and princesses, making it back into your catalog as well. How much more growth is you seeing within some of these

brands that has been absolutely incredible?

You know, with regards to you know, toddlers really sort of resonating with them, I guess, how are you going to build on what already has been done

over the last few years as with your other competitor?

KREIZ: Well, let me first say that the winning back Disney Princess and frozen is really great. Together that one of the crown jewels of The Walt

Disney Company with a huge wealth of characters and stories to build on. We couldn't be more excited.

We expect to grow from the current levels to leverage our expertise and capabilities as the world as a global leader in dolls and continue to

develop and grow evergreen franchises. This is what we specialize in.

And we the part of the success has really been driven by the Mattel playbook, which is about cultural resonance, cultural, relevance, as well

as creating brand purpose that that is engaging consumers and families at a very deep level.

We invest heavily in design and innovation and execute at a very high level with very strong supply chain and commercial capabilities that are able to

create demand and then work hard to fulfill it.

GIOKOS: Yes. So let's talk about supply chains because we've seen disruptions globally how has that impacted you? And ecommerce was one of

those sort of; you know, stop performers or within your company during COVID in particular you still saw growth but definitely not as high as you

had seen in the previous year?

[09:25:00]

KREIZ: Yes, supply chain is one of our core strength. We - it's not that we were not impacted, but we were able to navigate and manage through

disruption and achieve such strong performance and position the company for four additional growth in 22 and 23.

Ecommerce is another important part of our success. It has been growing this year, it I would say we're now getting into a more balanced and stable

performance of ecommerce, but it has grown for 6 percent this year. And it now represents 31 percent of all of our retail sales.

And we see that as an as an important strategic advantage for Mattel, another growth engine, you will see more coming from our direct to consumer

business with positive results across all key markets, leveraging the platform of American Girl that is already growing and doing really well in

terms of our day to see performance. So expect more to see there another important growth driver for Mattel.

GIOKOS: So I just have to ask you this. I mean, you've got motion pictures that are underway. We're expecting Barbie coming out in 2023 and other

movies as well. How important is this division going to be to your business down the line because it's expensive. It's capital intensive.

KREIZ: We own one of the strongest catalogs of Children and Family Entertainment Franchises in the world. And the opportunity that we have is

to extend our business beyond the toy aisles into highly accretive business verticals that are directly adjacent to what we do, but are all driven by

big franchises big brands.

And this is exactly what we bring to the table. Our approach is capital light; we're not looking to invest in production. This is not our business,

our expertise, our capability. What we bring is strong franchises big brands that bit with built in fan base, and we partner with the best

filmmakers, the best studios, the best distributors, and they run with the ball, they drive the projects.

We obviously are involved creatively, we work with the talent, we maintain the brand integrity and the brand attributes. But we don't invest capital

in those projects. That gives us the ability.

GIOKOS: So Ynon, I was taking a look - I was taking a look at your operating margins and they're sitting at 14 percent for 2021. They were

sitting at 9.6 percent in 2020. You've got inflationary impacts coming through as well. But you've got really strong margins because of the

inflationary environment does that mean that you're able to hike prices even further? Or how is inflation increasing or changing your strategies?

KREIZ: Yes, we are impacted by inflation. And of course in this environment pricing is one of the options that we consider. This is not unique to the

toy industry of course, this is something that companies have to use and think about in terms of inflation.

But when we raise prices, we always keep consumers in mind and are being very thoughtful about how do we maintain the highest quality and the best

value for consumers. In addition, we're also driving cost savings and look to continue to optimize operation to continue to improve margins over time.

We guided to 60 to 70 percent Operating Income margin by 23. And we're on our way to achieve that goal.

GIOKOS: Ynon Kreiz thank you very much good to see you the CEO of Mattel much appreciate.

KREIZ: Thank you so much.

GIOKOS: All right we are going to short break and we are going to come back with the market open stay with us.

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[09:30:00]

GIOKOS: Welcome back to FIRST MOVE from Dubai. I'm Eleni Giokos and in New York stocks are up and running this Thursday and we've got low open across

the board for the U.S. majors. Let's take a look at those numbers. As you can see DOW Jones down six tenths of a percent NASDAQ down almost 2 percent

and S&P also under pressure, rate sensitive stocks have also taken a big hit as well.

This is after we saw stronger than expected U.S. inflation and as we've been reporting on consumer prices, there was at a shocking 7.5 percent

annual rate last month. Prices rose on a month to month basis as well which wasn't anticipated today's data raising fears of aggressive fed tightening

beginning at the Central Bank's meeting next month. Alright as you can see 7.5 percent inflation that's a 40 year high.

Disney shares in the meantime; are bucking the downward trend they have almost 6 percent it shares rallying after reporting better than expected

results. The Disney Plus streaming service gaining nearly 12 million subscribers in the first quarter, which was very encouraging.

In the meantime, truckers blocking a keyboard bridge between Canada and the U.S. forced both GM and Ford to halt production Wednesday protests against

Canada's vaccine mandates began nearly two weeks ago in Ottawa.

The blockade of North America's busiest international crossing is now in its fourth day. We've got Donie O'Sullivan joining us now. You've got very

high vaccination rates across the country in Canada, Donie but you're seeing truckers that are unvaccinated causing supply chain disruptions tell

us what's going on the ground?

DONIE O'SULLIVAN, CNN CORRESPONDENT: Absolutely. 80 percent of eligible Canadians are vaccinated. So what we're seeing behind us is chaos being

caused by a very, very small minority of people. But there is no indication that they're moving anywhere anytime soon. Have a look.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMAEL: I want all these mandates gone, and I'm not leaving until all the mandates are gone.

O'SULLIVAN (on camera): What is the stuff that you can't do right now as a non-vaccinated person?

UNIDENTIFIED MALE: I live in Quebec so it's a bit more intense than other places in Canada. But look, I can't go skiing, I can't go to Walmart. I

can't go to Canadian Tire. I can't go to Home Depot. I can't go to restaurants. I can't go to bars. I can't go to the gym.

O'SULLIVAN (voice over): Truckers here in Canada have brought part of the country's capital to a standstill right outside the national parliament.

DYLAN FRIESEN, PROTESTING VACCINE MANDATES: I was hired on at a job not too long ago for a transport company to Whitby, Ontario. And I was let go due

to not willing to get the vaccines for my job. And I mean that's not right for companies to be able to decide that and take away our right to earn

money and support our livelihood.

O'SULLIVAN (on camera): Now this is all happening despite these protestors representing a small minority of Canadians more than 80 percent of eligible

Canadians are fully vaccinated and the Canadian Trucking Alliance the primary advocacy group for Canadian truckers, which has condemned these

protests, has said about 85 percent of Canadian truckers who regularly cross the U.S. border are vaccinated.

[09:35:00]

O'SULLIVAN (on camera): And for you, why is the - for you to be here today?

UNIDENTIFIED MALE: Well, because like --

UNIDENTIFIED MALE: Don't talk to them, this is fake news.

O'SULLIVAN (voice over): But despite the fact that these people may be part of a minority in Canada, they are receiving a lot of support from

conservatives and other right wing figures in the United States.

CHIEF PETER SLOLY, OTTAWA POLICE SERVICE: We are now aware of a significant element from the United States that have been involved in the funding, the

organizing, and the demonstrating.

SEN.TED CRUZ (R-TX): The Canadian truckers are heroes, they are patriots and they are marching for your freedom and for my freedom.

O'SULLIVAN (on camera): This is very much a 21st century protests playing out as much on the internet as it is on the streets, viral memes, and

sometimes false and highly offensive historical comparisons that circulate online are being repeated verbatim here like this.

And because you're not vaccinated, have you? Is there businesses, there stuff you can't do in Canada now?

UNIDENTIFIED MALE: No. Like, I'm like, I'm like, well, basically, if you want to compare Canada, to anything, it's like, Hitler's Germany. And we're

like the Jews today, one of the goals is too simply - is to get a group of people you can get everybody angry with. And this case is the unvaccinated.

O'SULLIVAN (voice over): There are a lot of people here streaming live online.

UNIDENTIFIED MALE: I'm just going to follow you guys and make sure you tell the truth.

O'SULLIVAN (voice over): Documenting every moment on social media.

UNIDENTIFIED MALE: You take those cans off of that truck. Is that your property?

O'SULLIVAN (voice over): In an effort to clear the protesters, police have begun confiscating gas canisters, resulting in encounters like this, that

clock up thousands of views online.

JIM KERR, SUPPORTS TRUCK PROTEST: My name is Jim Kerr, and I give a shit about --

O'SULLIVAN (on camera): How do you feel?

KERR: Hi, my name is Jim Kerr. And I care about human beings, especially once they're trying to keep themselves worms in the truck while fighting

for the freedoms of Canadians. How you feel?

RYAN, PROTESTING VACCINE MANDATES: The main problem I have is all the censorship that's going on. That's the main problem that have their

censorship everywhere. Yes, people's accounts get taken down. And even Facebook if you don't say the right thing. Even this convoy, a lot of

groups started and people are even live streaming and all sudden, I heard yesterday in the restaurant, my feed was cut, my feed was cut.

O'SULLIVAN (voice over): Facebook shut down some groups on its platform supporting the truckers after the online outlet Grid News found that they

were being administered by a hacked account that had belonged to a woman in Missouri.

So whoever was really running the groups wanted to hide their identity and go fund me shut down a fundraiser for the truckers after police told them

the protests had become an occupation. But organizers here have still been able to raise millions of dollars true and alternative service, a self-

described Christian fundraising platform. Organizers say the money will help keep the truckers on the street.

DONALD TRUMP, 45TH U.S. PRESIDENT: We want those great Canadian truckers to know that we are with them all the way.

O'SULLIVAN (voice over): Trump indicating he is supportive of truckers descending on Washington D.C., other American right wing figures goading

their audiences to act.

TUCKER CARLSON, FOX NEWS HOST: The question is how long before protests like this come here?

LAURA INGRAHAM, FOX NEWS HOST: Will we need our own trucker rally to end all of this insanity once and for all?

O'SULLIVAN (on camera): What is the main goal the main objective of the truckers there?

UNIDENTIFIED MALE: Freedom?

(END VIDEOTAPE)

O'SULLIVAN: Now Eleni you heard in that piece there were there are people conservatives who run the race in the U.S. calling for these kinds of

demonstrations to take place in the United States. And we are hearing just over the past 24 hours from the U.S. Department of Homeland Security

sending out a memo a bulletin to law enforcement warning that truckers in the U.S. may begin protesting as soon as this Sunday which is of course

Super Bowl Sunday in the U.S. Eleni.

GIOKOS: Donie, thank you very much for that reporting. Good to see you Donie O'Sullivan for us. And coming up on FIRST MOVE flying cars aren't

fantasy anymore one company is taking flight over the skies of Slovakia. More on the air cough right after this.

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[09:40:00]

GIOKOS: Welcome back! And Uber stock is climbing right now on the back of strong earnings up almost 3 percent and that's as passengers return to the

back seat. Revenue in the fourth quarter was up 83 percent year on year. We've got Paul R. LA. Monica joining me now. Paul I was just taking a look

at some of those numbers.

And literally they've just seen almost 25 percent increases across the board when it comes to Uber Eats or just bookings or even the likes of

airport bookings. Does this mean we've got COVID behind us and Uber is really good barometer and kind of understanding the fact that people are

back on the streets and still going to places and economies are open once again?

PAUL R. LA. MONICA, CNN REPORTER: Yes, I think that there is a certain element of that in Ubers' results. We saw also Ubers' top rival in the U.S.

Lyft reporting strong revenue a couple of days ago, too. I think, though, that Uber is benefiting from the mix that's happening still Eleni where.

Yes, people are going out again and that is obviously helping the core ride sharing business. But they're also still happy to get food and dinners

delivered to home. So remember, Uber bought Postmates in December 2020. The delivery business is now profitable for the first time. So that is good

news for Uber as well.

But overall, a pretty strong quarter when you look at how their users now are hitting an all-time high so yes, people are going out again, but

they're also staying home and getting food delivered.

GIOKOS: Yes, and what's really interesting is that we know that there's, you know, a lot of competition, and it's closing in on Uber. So they're not

the only option for consumers. There was also talk of sort of ultra-fast delivery services.

And, you know, that's been sort of spoken about quite extensively in the past, but whether that's going to be reality going forward. I guess it's

all about efficiencies. What else stood out for you Paul in these numbers?

MONICA: Yes, I think the fact that Uber has really transformed into a more diversified company than Lyft. So it does benefit from people that still

want car service to travel but are still benefiting as well from whoever is maybe a little less inclined despite vaccinations and hopes that Omicron

that wave is fading.

There are a lot of people that just like the comforts of home and want to watch Netflix or Disney Plus or HBO Max and get food delivered and that is

helping Uber because Uber Eats in the combination with Postmates a few years ago.

[09:45:00]

MONICA: So Uber benefits from all of these mega trends right now.

GIOKOS: Absolutely. And I was just looking at the stock price we had the graph up. And actually, the Uber share price hasn't really recovered. So I

guess that's going to be the next big thing, right whether the results are going to translate into more investor appetite sitting at $41.91 a share at

this moment. Thank you, Paul R Monica. Much appreciate it.

Alright, so we've seen plenty of flying cars on FIRST MOVE, including fictitious ones. Now it seems one step closer to a scene right out of an

old James Bond movie. Well, at least in Slovakia, regulators there have approved and air car as air worthy with retractable wings, a parachute

deployment system and a lot more.

Its developer Klien Vision says is compatible with EU aviation rules. Joining me now is Anton Zajac, the Co-Founder of Klien Vision. This is

really big for you, Anton, isn't it to be able to get you know air worthy certificate in Slovakia you also say that it does comply with EU

regulations as well. But that's I guess, what we'll be focusing on as the next step.

ANTON ZAJAC, CO-FOUNDER, KLEIN VISION: Well, it's a great milestone, certainly, you know, its official prove we can actually start mass

producing this vehicle flying car.

GIOKOS: OK. So I mean, I was taking a look at some of the visuals and the maneuvers and just when you were doing a lot of the testing and the hours

that the pilots spent in the air, could you tell me a little bit about how you tested this air car to ensure its safety.

ZAJAC: So we actually follow the all the rules as prescribed by us, which is European agency aviation agents for safety. And so we had to fly at

least 50 hours and do all the maneuvers, you know, takeoffs and landings, we completed actually 70 today actually 85 hours of flights and about 240

takeoffs and landings so it's fully tested and we are extremely happy with the stability of the of the aircraft.

You know, you don't even need to touch the controls to land or take off. It's much stable than a three wheel aircraft. And it's very stable so once

one side wind is very strong.

GIOKOS: That's incredible. Look you're talking - you mentioned mass production. And that's the case the next step, you've got the certificate

you want to mass produce, are you going to be doing this? Are you looking for investors? And what is going to be sort of the game going forward? Are

you are you looking at you know speaking with airlines at this point in time, what's your game going to be?

ZAJAC: So, currently we are seeking investors and we are also working on a new model which will have the same geometry. However the engine will be an

aircraft engine, which will be twice as smart as powerful as the current engine. It will be a - construction and it will also be equipped with the

variable pitch propeller so it will be a fully-fledged aircraft when it's in aircraft mode. And also a slick looking sports guard when it is in a car

mode as you can see on the video.

GIOKOS: OK, are you speaking to EU regulators at this point in time? How easy is it going to be to get that certificate because that's going to be

the vital one isn't it?

ZAJAC: Well, to actually get a certification CS 23 you need to create three prototypes which will be destroyed during the testing. We could do that.

But with the certification we have just received we can fly and we can sell the experimental kit there's about 33,000 such certified planes flying in

the United States and they are called experimental however it's an incorrect concept or term. They are fully fledged aircrafts that are safe

to fly.

GIOKOS: Well, Anton it's an exciting proposition. It's an exciting you know creative projects from my perspective so I wish you all the best. I don't

know if I'll be flying in one just yet but it does look very exciting so thank you so much for your time.

ZAJAC: Thank you so much.

GIOKOS: Much appreciate it. Alright and coming up after the break Britain's Prince Charles in COVID isolation after testing positive for the second

time, the details coming, stay with us.

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[09:50:00]

GIOKOS: Welcome back to FIRST MOVE. Britain's Prince Charles is in self- isolation after testing positive for COVID-19. It's the second time he's had it. 7000 kilometers' away his son, Prince William is on his first

official visit to the UAE. Royal Correspondent Max Foster is following the trip and joins me now from Expo 2020 in Dubai.

Firstly, Max, welcome to Dubai. I can hear the robots behind you. It is big news that Prince Charles now second time testing positive for COVID 19.

What more do we know?

MAX FOSTER, CNN ROYAL CORRESPONDENT: Well, it is the second time we don't know how about his symptoms are just that he's gone into isolation. They've

had to rearrange his whole diary for today had various events organized; also looking at an event he went to last night with Camilla where he was

with Rishi Sunak, the UK Chancellor and also the Home Secretary.

So I'm sure everyone's being tested in that group as well. Camilla has tested negative. Also, the question we're asking is, you know, when the

last time you saw the Queen was, or we haven't had an answer on that, presumably she will be tested as well, if he has been in close contact, but

we're not being told about the symptoms.

So, you know, some level of concern, you know, is he ill? Is he not, but the fact is in isolation, suggests that they are coping with it. I did ask

Prince William's team if they had a response. But you know, we've just had the news, and he's pretty busy here. So I don't think he's really had a

chance to respond.

But you know, Charles, in his early 70s, with Omicron, hopefully, it's going to be OK, but we'll obviously bring you updates.

GIOKOS: Yes, I mean, we mentioned that this is the second time that Prince Charles has tested positive for COVID 19. Just how concerning is this would

you say for a royal family member to test positive once again?

FOSTER: Well, you know, they do meet a lot of people. I think that's their immediate concern. And also they've got lots of staff. So in terms of

isolation, they're pretty strict about it and pull them away from everyone, then it's a big case of testing.

He is in his early 70s. So, you know, that is a level of concern as well. But good news that Camilla hasn't got it. So suggest that he's not too

contagious. So we'll wait to see what updates we get. But they've gotten pretty quiet at the moment. But you know we've got the team here as well,

trying to find out what's going on.

GIOKOS: Yes. Alright, Max so Prince William is also in the UAE for his first official visit big focus on sustainability and climate change. Tell

me about some of the, you know, official visits that you've seen since his arrival?

FOSTER: Well, yes, so what they tried to do with these events, you know, Prince William comes in, he's got his interests. You know, the UAE got

their interests; they try and find the overlap. So one area of overlap was going down to the port in Dubai, the busiest in the Middle East and seeing

how they're intercepting illegal cargo.

Prince William particularly interested in the wildlife trade. So they, they did a demonstration of how they look into these containers and try to find

out if there's any illicit wildlife material on board is actually a hugely profitable business. And they're very keen on clamping down on that here.

Another event I went to with him was the mangroves and that's pretty interesting because, as you all know, Abu Dhabi investing huge amounts in

mangroves because they Abu Dhabi claim that they soak up four times as much carbon as the rainforest and they also protect the coastlines as well so a

huge investment going on there.

[09:55:00]

FOSTER: We saw Prince William planting mangroves and then he came here to the Expo and that's all about promoting the UK, which is pretty important I

think right now it does show the power of royalty have to say Eleni because with UK politics is such a mess, so chaotic.

You know, that's where the Royals are quite useful for the British government's bringing them in here promoting stability and calm which isn't

the case of Westminster at the moment.

GIOKOS: Yes, absolutely very different to what we're seeing in the political landscape. Thank you very much, Max great to see you. And finally

on FIRST MOVE, you're looking at a water spouts off the Coast of Cuba as it made its way towards land on Wednesday to NATO strength winds ripped up

trees and brought down power lines pretty shocking.

But it's the local people say it's one of the strongest they've seen even saying that they're shaking with fear after the storm had passed. I'm in

Eleni Giokos in Dubai, thank you very much for joining us on FIRST MOVE, take care.

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