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First Move with Julia Chatterley
British Prime Minister Boris Johnson Has Tested Positive For Coronavirus; U.S. House To Vote On $2 Trillion Coronavirus Aid Package; U.S. Is the New Epicenter For The Coronavirus Outbreak. Aired 9-10a ET
Aired March 27, 2020 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:51]
ANNOUNCER: This is CNN breaking news.
JULIA CHATTERLEY, CNN ANCHOR: Welcome to FIRST MOVE this Friday, where we begin with Breaking News.
British Prime Minister Boris Johnson has tested positive for Coronavirus. Here is a video he posted on Twitter a short time ago.
(BEGIN VIDEO CLIP)
BORIS JOHNSON, BRITISH PRIME MINISTER: Hi, folks. I want to bring you up to speed with something that's happening today, which is that I've developed
mild symptoms of the coronavirus, that's to say, a temperature and a persistent cough.
And on the advice of the Chief Medical Officer, I've taken a test that has come out positive. So I am working from home. I'm so self-isolating, and
that's entirely the right thing to do.
But be in no doubt that I can continue, thanks to the wizardry of modern technology to communicate with all my top team to lead the national fight
back against coronavirus.
And I want to thank everybody who's involved. I want to thank --
(END VIDEO CLIP)
CHATTERLEY: Nic Robertson is in Downing Street for us. Nic, it feels like it was only a matter of time until we saw some world leader catch the
coronavirus, but I assume now, given his interactions with his Cabinet, they will all be tested, too, in addition to him now being in isolation.
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Well, we've just heard that the Secretary of State for Health, Matt Hancock, obviously at the
forefront of Britain's effort to combat the coronavirus has also now tested positive.
Government officials earlier had said that no other -- or they were not aware of other government members that were being tested after the Prime
Minister tested positive.
The advice to staff working in Number 10 is that there was no need for them to self-isolate unless they developed other symptoms.
What we understand now is that, you know, Boris Johnson has said that he will continue to work, do it by videoconference, do it from there in the
flat, Number 11 Downing Street, but the staff are able to knock on the door and leave you know, whatever documents and such like that he requires
outside the office for him to -- outside his home there where he is self- isolating for him to pick up.
But the reality is that this is now impacting the upper echelons of governments around the world, principally here in Britain.
I think, if the Prime Minister were out here now speaking and trying to put a positive spin on this, he would point to the Minister for Health, Nadine
Doris, who tested positive about two weeks ago, and actually came back for that final session of Parliament yesterday sitting on the front benches.
And the Prime Minister, as he says, intends to continue working by teleconference to continue leading the government in this challenge.
CHATTERLEY: It's interesting because we've seen a further crackdown or a lockdown in the U.K. this week, and we were looking at empty streets,
Trafalgar Square empty.
I just -- I wonder whether this now is some kind of game changer for the British public that perhaps weren't following the advice that authorities
were giving them.
If he can catch this, anyone can catch this.
ROBERTSON: Yes. You know, perhaps obviously Prince Charles testing positive earlier in the week, but then he is not -- people wouldn't put themselves
on a par with him by any stretch.
But I think what we're seeing now and there is still, you know, some traffic out and some people out working, builders in particular one
notices, roadworks still being performed on the streets of the city here.
There are still quite a number of people out despite what the Prime Minister has said, and I get a sense that there is a core of people and
this was always the government's assessment that there would be a minority, a small core of people that wouldn't adhere to the government's
instructions that they should stay at home unless it was absolutely needed that they would go out for work, being vital workers or for any other
reason other than to get food or have one piece of daily exercise.
So I am not sure that this actually will be a game changer for the hardcore, but I think most people in this country now really get that this
is serious. They have heard about the desperate situation for people working in the health service -- nurses, doctors and others -- who are
short of that protective equipment that the government has been scrambling to try to find ventilators.
[09:05:15]
ROBERTSON: The Prime Minister now, it will be a very sombering message, but for that tiny handful, I think they are shrugging this off somehow thinking
it's not going to be done.
CHATTERLEY: I know. We have to watch that message because he reiterated at the end, please stay at home. Nic Robertson in Downing Street. Thank you so
much for that.
And our best wishes to the Prime Minister, of course, and to the Health Secretary and all those affected by this virus all around the world.
Now, while we might be coming into a Friday here and a start of a strange weekend for many of us, it's another where brave caregivers, as Nic
mentioned there, all around the world will go on fighting to save lives and we thank those heroes.
All right, let me give you a sense of what we're seeing elsewhere today. U.S. features are softer as you can see premarket after a blistering rally
for stocks in the previous session.
The U.S. majors rising over six percent. That gain for a third straight day. It's a similar story, too, in Europe. I can give you a quick look at
that if we can.
Asia stocks also closed higher despite fresh numbers showing Chinese industrial profits falling almost 40 percent in February and South Korea
consumer sentiment falling to the weakest level since 2009. I have to say, not unexpected. Weaker data now has to be expected.
The Dow's rally Thursday means it's now risen 20 percent from the intraday lows it hit just last Monday. That qualifies as a textbook definition of a
fresh bull market. And in fact, we've seen headlines proclaiming that the bull market is back, guys.
It's great to see the markets bounce. It shows perhaps that some of the monetary medicine from the Federal Reserve and other Central Banks is
helping to stabilize the system.
We've certainly seen that with the U.S. dollar. We also hear that corporate deals are once again being priced, so that market is unlocking to a certain
degree, too.
The $2 trillion aid bill expected to pass the House today or tomorrow. It will give crucial support to families and struggling businesses, too. But
the data, as I've mentioned on the real economy is going to be bad, really bad for quite a while yet.
And I think we also have to put things into some degree of context as well. Stocks are still off some 20 percent or more from their all-time highs,
bear markets simply don't hit bottoms or form bottoms that easily and massive rallies do tend to happen during bear markets.
We actually saw two huge bounces of 17 percent during the financial crisis that were quickly wiped out and more.
That's the context here. And I have to say to quote, Dr. Fauci, it still feels that only the virus sets the timeline here.
Christine Romans joins me now. Christine, I'm catching it very clearly here. We've seen this in the past. One of those rallies that we saw in the
financial crisis, I think we went up 17 percent, and then we went down -- or 27 percent, and then we were down 50 percent plus. Cautiousness here.
CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Oh, yes. When I was covering the Chicago Futures Pits, I mean, the traders would always say,
beware the bear market bounce and that is likely what this is.
I know a lot of people are talking about the technical headline in the Dow that a new bull market has been born. But this has been such a unique and
swift demise of the old bull market. I would be very, very careful here because the headline risk, you're so right, Julia, is just -- it is just
limitless, quite frankly.
Because we are at the mercy of virology, not necessarily traditional economics and P&Ls like we usually are, so watching this very, very
carefully.
Remember, the last three days were just very blistering, as you say, a ferocious bounce back so likely, if people who are trying to take profits
after what's been a very unprofitable five or six weeks.
CHATTERLEY: Yes, people that were short as well, perhaps scrambling to buy back.
ROMANS: Yes.
CHATTERLEY: A liquidity bounce. I think that's one of the technical terms hereto. And as you and I have been discussing in the jobless claims data in
the United States, we didn't get a clear picture. And we're starting to learn further information about the claims offices, simply not being able
to deal with the sheer quantity of people coming forward and saying, hey, I need help here.
ROMANS: Yes, and we, anecdotally both of us had been hearing from people who said, look, I'm not one of those 3.2 million numbers. I tried to file
for unemployment benefits, and I couldn't. The website crashed. I couldn't get through to the office. It was completely overwhelmed. I was hours on
hold in some states.
And now you're hearing from the state, labor offices there. They felt that -- that processed those jobless claims that in fact, a lot of those did not
even get a chance to go through. They had problems just overwhelmed by the surge of people, a historic surge of people looking for jobless benefits.
In New York alone, they said they had 1.7 million calls for jobless benefits, but only 80,000 or 81,000 were actually processed in the week. So
you're right completely, Julia that the next weeks and maybe months of data are going to be just harrowing.
[09:10:09]
CHATTERLEY: Christine Romans, thank you so much, as always. Great to have you with us.
Let's get to Washington now where the U.S. House is set to vote on that $2 trillion emergency aid package today.
Representatives rushed to Washington, though after word a Republican could go rogue to derail a voice vote.
John Harwood joins me now. John, great to have you with us. Thomas Massie, the Republican from Kennedy, perhaps the least liked man in D.C. after
suggesting that he may not approve via a voice vote and call a roll call which meant people have to simply come to D.C. during a health crisis, just
in case that happens and they have to be present to vote. Ouch.
JOHN HARWOOD, CNN WHITE HOUSE CORRESPONDENT: Julia, one of the things about American politics is -- and politics everywhere -- is that, it attracts a
certain number of highly eccentric people who imagine that their beliefs are vitally important to be upheld in every circumstance.
Thomas Massie calls himself a constitutional conservative. He votes no an overwhelming amount of time, for various reasons thinking that measures
Congress is taking violate the Constitution.
He wants did the same thing, insisted on a roll call vote rather than a voice vote to honor the legendary golfer, Jack Nicklaus. Something that was
a completely a harmless measure.
So now he is putting the health of his colleagues at risk by insisting that they fly back and the health of, not just his colleagues, but their aides
and members of the media and others by insisting that they fly back because he might object.
Now, we don't know for certain that he's going to do that. He is certainly going to be facing a lot of peer pressure from colleagues, but this is
somebody who doesn't mind being hated, and if he enjoys being hated, he's going to get a lot more of that today if he insists on this roll call vote.
CHATTERLEY: Terribly expensive principles, I think to stand by here, John. I think you said it perfectly there.
And for balance, I should say, Alexandria Ocasio-Cortez also said to CNN yesterday that she might do this, though the expectation is she wouldn't.
So there's clearly people who aren't happy with this bill, but it's for higher purposes just to get money to people here. Is the expectation that
however this happens, the bill will pass?
HARWOOD: Well, that's the thing. It's one thing to stand up for principle. If you have a chance of prevailing, it's another thing to stand up for
principle when you have zero chance of prevailing, but a nonzero chance of making some of your colleagues many of whom are in their 60s, 70s, 80s and
are vulnerable to the coronavirus. There's a much great chance that you could --
CHATTERLEY: We just lost John's microphone there. But the point he was making was standing up and preventing this vote being done by voice
endangers the lives of colleagues and members of the House there and for no purpose because the bill will pass.
So an uncomfortable day, I think, we'll see how that plays out this morning.
Now, the United States is the new epicenter of the coronavirus outbreak. It now has more reported cases than any other country in the world. Almost
half of those are here in New York.
Brynn Gingras is at Elmhurst Hospital for us. Brynn, great to have you with us. Actually harrowing stories coming out from various hospitals in New
York, the pressure that medical staff are under and that the people that they're trying to save. Just talk through some of the experiences that
you've been hearing about.
BRYNN GINGRAS, CNN NATIONAL CORRESPONDENT: Yes, I mean, certainly we've been talking to a lot of people outside here in Elmhurst Hospital which is
in Queens, this borough has seen the most cases out of any borough in New York City. And this particular hospital is seeing the most cases. It's
really the center of the epicenter of this pandemic at this point.
In the last 24 hours, there have been four deaths, the 24 hours before that, the day before that, there were 13 deaths, Julia. So this -- I mean,
it's taxing.
You talk to doctors and nurses coming out, and they tell us that they are busting at the seams with patients who are trying to get care that they are
short on equipment, even though that it's being said there's plenty of equipment for the next week or two weeks, but they still feel like that
they're short.
Another nurse told me she is in a constant state of paranoia. She left a 24-hour shift wearing all of her protective gear and she says she is not so
much worried about getting sick herself, but if she gets sick and then passes it on to other patients, that's what she's fearful of. Rightfully
so.
Behind me. I want to show you this line. I mean, this is a line Julia that we have been seeing all week. We've been here every day of this week and
this line always is like this or longer.
[09:15:07]
GINGRAS: It doesn't really seem to ever get shorter. These are people who are trying to just see a doctor. It doesn't necessarily mean they'll
actually get a coronavirus test, but they just want to see a doctor because they're not feeling well.
And some people here are waiting in lines for hours just to see that doctor. I actually saw one woman a couple of days ago hobbling over in her
walker with her family members holding her up, then get in that line.
I mean, it's just heartbreaking to see that and you really would be hard pressed to see anywhere in this immediate neighborhood, to find anyone who
isn't wearing a mask. It is really -- it feels -- it's very stressful. I'm not going to lie to you about the situation here and I can't even imagine
what it's like inside never mind outside.
CHATTERLEY: Neither can I. I mean, the equipment is one thing, but it's the medical staff. It's a shame we can't bring medical staff from other states
that have less of an issue to help the ones here at this moment.
Brynn, great job you've been doing an incredible job. Thank you for reporting on this story. Harrowing for everyone I think involved.
All right coming up on FIRST MOVE, help is on the way. U.S. manufacturing companies wait for the government aid after work comes to a screeching
halt.
And on the flip side, working overtime meal kit services come into high demand with restaurants closed and millions homebound. Stay with us. More
to come.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to FIRST MOVE. Stock features still pointing to a lower open this Friday after three days of gains.
Just to give you a context on what we're seeing here. For the week so far, all the major averages are up 11 percent or more. A major improvement after
last week's losses of more than 12 percent. All that makes me think about is whiplash, quite frankly. That said, new numbers show investors pulled
more than $13 billion from stock funds just in the past week.
[09:20:00]
CHATTERLEY: They poured some $250 billion into money market funds, so lower risk assets. That's the way you have to see that. The Dollar Index
reversing higher, but still down around four percent for the week, that's its biggest drop in over a decade.
So that does tend to suggest some of the stress, the dollar hoarding that we've been seeing is filtering out of the system.
Now all across America, restaurants are closed as the country embarks on social distancing to limit the spread of the coronavirus outbreak.
This is like consumers to -- some consumers at least -- to increase their use of alternatives, such as mail kit provider, Blue Apron.
Blue Apron delivers ingredients and recipes for meals people can cook at home. Joining us now Blue Apron CEO, Linda Findley Kozlowski.
Linda, fantastic to have you on the show. Thank you so much. Just talk to us about what you're seeing and what changes you're having to make to
accomplish and adapt to meet the demand that you're seeing.
LINDA FINDLEY KOZLOWSKI, CEO, BLUE APRON (via Skype): Well, first, I just want to say thank you to all the first responders and healthcare workers
that are on the front line around the world. You know, they are obviously having to adapt more than we do, and they are selflessly helping others in
the face of this pandemic.
So, we are seeing increased demand and we are continuing to ramp up our fulfillment center capacity in order to try to get as many meal kits into
as many homes as possible.
And that is we see as our biggest requirement right now is how can we get food for people in the face of this ever changing situation? So we are
adding staff and we're hiring quickly as possible as many as 300 people across our New Jersey and our California facilities to try to get more food
to more people as quickly as possible in the next few weeks.
CHATTERLEY: A lot of us look at what's happening in the United States and can visualize pictures of bare shelves where people are panic buying,
hoarding certain food items.
Are you having any trouble with your supply chain and getting the ingredients you need to put these meal kits together?
KOZLOWSKI: No, we've actually had no disruption in our supply chain of any significance to this point. And part of that is because even in normal
circumstances, we have a very tight supply chain and a variety of spares that we can work with in order to source food for our boxes.
We rotate through different suppliers each week, based on the ingredients that we're using. And so because of that, we have a really, really strong
network of suppliers that we're happy to be able to continue to provide business to, in this time of stress.
So we have a lot of control over our supply chain and we have a lot of alternatives and we are able to still source the highest quality
ingredients with the highest quality standards during this time and continue to provide business to those suppliers.
CHATTERLEY: You're hiring as well, at a time when we're fearful of restaurants letting go of workers and hopeful that the money from this aid
package comes through quickly to allow these businesses to at least retain their staff. You're actually hiring.
KOZLOWSKI: Yes, actually hiring for a combination of permanent and temporary positions. So if somebody has been displaced from the food
services industry, we have options for them where they can return to work later.
But we also had permanent positions open before that we are still continuing to fill. And so we're really looking for the best quality people
that we can provide employment to during this difficult time, but also in something that's servicing a lot of people who really need food in their
homes on a weekly basis and don't necessarily have an alternative to get it.
CHATTERLEY: Can I ask you, what you make of the stimulus package or the aid package? A lot of the focus has been on simply getting money to businesses
that are in need at this moment.
One of the big fears is that the money simply won't come quickly. Just in your experience as a business leader, is that the concern sort of managing
cash flows for some of these businesses that will be now critical, how quickly this money comes is critical.
KOZLOWSKI: Yes, I think the speed of getting aid is extremely important, and that's a big part of why we're focused so quickly on trying to hire and
staff up because we want to be able to provide help to as many people as possible as quickly as possible.
But I think that speed and making sure that the right level of distribution, because companies are hurting right now, and small businesses
in particular are hurting right now, and so I think it's really all about speed and efficiency of getting the funds to where they need to go as
quickly as possible.
CHATTERLEY: How many people are you hiring? Can I ask that? I know you said you're already trying to hire people. But can you give me a sense of how
many people you're actually looking for at this moment and where?
KOZLOWSKI: So we have 300 open positions in Linden, New Jersey, where our fulfillment center is there and also in Richmond, California. And so we are
using remote interviewing technologies to try to make these interviews as safe as possible.
Obviously, in these facilities, we want to enhance what's already very, very stringent safety standards, not just C.D.C., but SQF Food Safety which
is one of the highest in the world.
So we're extremely careful about how we hire and how we staff and also from a hiring perspective we want to make it as comfortable as possible for the
people that we're hiring. So we're using technology to actually do remote interviewing, so we can bring people in faster and safer.
[09:25:17]
CHATTERLEY: And it makes perfect sense. You've had been challenged as a business, Blue Apron, and there is skepticism that the bump that you're
seeing now in in demand won't last.
Do you see this as a pivotal moment? Because one of the big expenses for you has simply been getting your name out there and letting people know
that you're available and this is an option?
How do you view the company's future from this point? As painful as this moment is, do you think it's going to help you actually just spread the
word of what you do and what you can do?
KOZLOWSKI: Look, we take the situation that we're in as a country very, very seriously right now and we look at this as something that is not
necessarily part of our business model.
This is we have -- you know, this is just tragic and so frankly, we've been working and had stated our plan for growth, stated that we were looking at
strategic alternatives for growth and we continue to believe in that plan and believe in that focus.
In the meantime, we're very focused on how do we actually serve more people right now? We're not considering this, a change to our strategy or a change
to something and you know, that would actually change the trajectory of the business.
This is a tragic incident. You know, this is a pandemic. This is not a business model.
And so what we're trying to do right now is deal with this temporary volume and really help people through that and stay focused on the long term of
the business.
CHATTERLEY: Well, Said, Linda, and we share your views. To the heroes out there that are on the frontlines of trying to help people in this crisis.
Great to have you with us. Linda Findley Kozlowski, the CEO of Blue Apron.
All right, we're counting down to the market open this morning. We're expecting a bit of softness. We'll be back after this with that and more.
(COMMERCIAL BREAK)
[09:30:02]
CHATTERLEY: Welcome back to FIRST MOVE. The trading day is underway for the final time this week on Wall Street. And as expected, we've got a slightly
softer open as you can see for the Dow and the S&P 500 actually moving to down more than three and a half percent as you can see here. The NASDAQ all
over the place, now we're lower by three percent.
And I was taking my time there saying that because as you could see, we were seemingly positive for the first few moments there. Volatility for all
the gains that we've seen this week. The key is that these markets remain incredibly volatile. The VIX Index, the fear gauge, as it's known for stock
market is incredibly high, above a level of 60, which denotes extreme fear still. So all of this worth bearing in mind with the movements that we're
seeing.
Now, the Dow is coming off its best three-day run, in fact since 1931. To give you context, it's risen 20 percent from its worst levels hit earlier
this week. That's effectively the definition of a new bull market. I bet you on Wall Street, they believe the bear hasn't been banished just yet.
Remember the data. We found out yesterday that almost 3.3 million Americans filed for unemployment benefits in the past week alone. The population of
Chicago is 2.7 million people. So it's more -- far more -- than the population of Chicago all claiming unemployment benefits in just one week,
and there's more to come.
Well, let's have a look at what we're seeing as well elsewhere in terms of asset classes. Classic risk off action going on in U.S. Treasuries. As you
can see there, yields coming down. That means bond prices rising. People buying bonds when they are nervous about what's going on.
We've also got oil. Brent both under pressure in the session, and gold, losing a little bit of ground here, too. Selling is the name of the game,
cross asset selling. Now support, that's what we need to talk about next.
In Washington, the House is set to vote on the $2 trillion aid package. The largest emergency aid package, in fact, in U.S. history. The Senate, as you
remember approved it unanimously on Wednesday.
Now, the National Association of Manufacturers called last week for the Federal government to provide significantly sized loans to ensure liquidity
for manufacturing businesses and the association's President and CEO Jay Timmons joins us now on the show.
Jay, fantastic to get your insight this morning. We'll begin by talking about that a package? Is it enough in your mind to support the
manufacturing sector and the businesses within it?
JAY TIMMONS, CEO AND PRESIDENT, NATIONAL ASSOCIATION OF MANUFACTURERS (via Skype): Well, we're very pleased that this package, an incredibly sizable
package moves so quickly in a 100 percent bipartisan way through the United States Senate. We're hopeful that the House will get that done today.
Is it enough? I don't know the answer to that. I don't think any of us do. But what we do know is that we have Democrats and Republicans, Congress and
the administration working together to make sure that when we need the help, we're going to get the help.
So if we have to come back and have another -- if we have to have another piece of legislation, so be it. But for right now, this is a great start.
Let's get this capital into the system, especially for those small businesses that are so critical to the supply chain.
CHATTERLEY: I mean, that's a significant chunk of your membership. They are small and medium sized enterprises. The hope here is that it will stem some
of the job losses. Can you just give me a sense of what you're hearing from your members? Have they managed to retain their staff or have they had to
make tough decisions and they've simply already let people go?
TIMMONS: So I have to say, overall, it's not across the board, of course, but overall manufacturers are doing better everything they can to keep
their teams in place because that employer-employee relationship is so incredibly important.
When we come on the other side of this this massive -- manufacturing is going to be going full guns. So we want to make sure that our skilled labor
force is still with us and able to be productive.
And I would like to say Julia, I heard your statistics and understand certainly the concern that so many have with where we are right now and why
there's volatility in the market, but this is what I can tell you, just like World War II when manufacturing was the arsenal of democracy, we are
on the front lines today against this new enemy.
We will prevail. It will be a difficult fight. But in the end, manufacturing will help drive this economy forward and we are very proud to
be a part of what we know will be a long term success in our country.
CHATTERLEY: I love -- I love the comment you made and the comparison that you make. I guess the only difference today with what we saw in the past
perhaps was a more coordinated effort to galvanize production to be doing the things that we needed in wartime whether that was weapons or materials
of whatever kind.
There are many that say, this White House needs to utilize the Defense Production Act and coordinate, focus, telling manufacturers, look, we need
masks. We need ventilators. We need gowns for example. We're already seeing companies doing it. Do you think there needs to be the use of the Defense
Production Act and actually coordinate this at a national level better?
[09:35:36]
TIMMONS: Well, you just said it, were already doing it. And manufacturers have stepped up right from the start even before I think the country
understood how difficult this situation was going to be.
So we've increased our production of gowns and masks and personal protection equipment and medical supplies. We've done everything we can to
break down barriers for instance, 39 million gloves that were stalled at the ports of Baltimore and Oakland, we got those out of out of storage and
into the hands of medical professionals.
But look, this is something when you do compare this to World War II, think about the long runway that we had in hindsight is 2020, of course. This
happened very quickly, and I'm so proud of manufacturers and how quickly they've responded.
I said yesterday, and I'll say it again, I'm agnostic about whether the Defense Production Act is invoked. It is probably, if it happens, I
understand it can happen on a case by case basis. And so be it.
But what I can tell you is we don't need the Defense Production Act for us to do the right thing. Manufacturers already are and they're doing
everything they can to address the critical needs in this country.
We've been working closely with the White House, with Dr. Peter Navarro, with F.E.M.A., with H.H.S., with the Department of Homeland Security, with
O.M.B. to make sure that we have the right purchasing process in place. So this response is coming together, day by day, but it is happening, and I'm
very pleased that manufacturing can be a part of the solution of this very, very critical problem that we have right now.
CHATTERLEY: I take your point as well about how quickly everybody has had to react to here, whether it's the medical professions, workers across all
sectors as well.
Agnostic is an interesting word, though. What benefit can you point to that perhaps, that offense production act and greater coordination would
provide? Are you simply saying it wouldn't provide any greater benefit?
TIMMONS: Well, actually, it could, in a case by case basis. So some of this may benefit and some may not, but here's the thing, we are coordinated. We
are well-coordinated with the Federal government.
In fact, F.E.M.A. is using the National Association of Manufacturers. We've polled our members. We have 1,600 manufacturers stepping up for more
production of those personal protective equipment and medical supply items.
We are also focusing on the food supply and making sure our food manufacturers are able to produce what they need.
The Defense Production Act, if it is invoked on a case by case basis could actually provide government funding and loans and grants to help
manufacturers repurpose their manufacturing lines.
We haven't -- we haven't had to have that quite yet, but we may. I just want to leave the door open. I think the President was actually very smart
to say that this is a tool that can be used. We may need to use it. We may not. Let's see, but let's not worry about, you know, should we do it
broadly? Should we not do it broadly, when manufacturers are stepping up?
I'll say one other thing that we're dealing with here in the United States and it is a patchwork of decisions coming out of governors, and localities
on what is considered critical and essential to our nation's -- to the response to the pandemic and what is not.
I've got a manufacturer for instance, in Baltimore. Some states may not have considered a wire basket maker to be critical as part of our nation's
infrastructure and response. He was called by a lab last Friday and said, look, can you make baskets to hold test tubes to be able to respond to all
these tests that were getting in. He had never done it before. He repurposed his line on his own in a matter of hours and they were able to
fulfill this order by Sunday.
So our message to governors and to mayors and local elected officials, is assume that all manufacturing is critical not only for medical supplies,
but also for the food supply chain and we're making the right decisions if we can't be a part of that particular solution and we're suspending
operations.
CHATTERLEY: Business knows best. We actually had the same from the head of the National Retail Federation, clarify what's essential, and that will
reduce some of the supply chain and the system blockages here.
Jay, and I also know that you gave up your salary as well, because I know you're very conscious of protecting those that are working in this
environment and not working in this environment. So I just wanted to salute you for that as well and make people aware of that. Jay Timmons.
[09:40:13]
TIMMONS: A lot of workers have been facing the reality, and look, I think that -- I think that when you said that business knows best, you know, I
would say that a partnership between business and government in a time like this is absolutely vital and absolutely critical.
We are seeing the importance of these key institutions like F.E.M.A., and others to really solve this problem, and we hope we never have to go
through this again. We'll learn a lot. We'll have a lot about correction reports, and hopefully, we'll be able to address these types of challenges
even more forcefully in the future.
CHATTERLEY: You're right. I'll clarify -- business understands its piece of the jigsaw puzzle best. Jay Timmons. Great to have you with us. Please keep
in touch.
TIMMONS: Thank you. Last note, Julia, thank you and I thank all of the reporters for all the great work that you're doing to keep us all in touch
and to tell the story of what's happening. We appreciate all that you do to defend our First Amendment freedoms.
CHATTERLEY: Thank you, sir. Thank you very much.
All right, coming up next on FIRST MOVE, counting the cost. Recovery for the travel and tourism industry could be a long haul. We will speak to the
CEO of Booking Holdings, booking.com. Stay with us.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to FIRST MOVE, to another sector now. The travel sector which has been brought to a virtual standstill due to the
coronavirus outbreak.
According to the World Travel and Tourism Council 50 million jobs may be lost. The sector accounts for around 10 percent of global GDP and the
Council says it could take 10 months for the industry to recover after the pandemic is over.
Glenn Fogel is the CEO and President of Booking Holdings, the owner of booking.com and other tourism websites. He's also one of the CEOs forgoing
their salaries at this difficult time. Glenn, great to have you with us. Thank you for joining us.
Do you agree with that assessment that it might take 10 months once we get the pandemic under control to see recovery or full recovery?
[09:45:18]
GLENN FOGEL, CEO AND PRESIDENT, BOOKING HOLDINGS (via Skype): Well, I think it's very hard to predict exactly what's going to happen coming out. It
could be shorter, it could be longer.
The other thing we're concentrating on right now is dealing with the current issues and trying to help our customers, our partners, doing what
we can and of course, protecting our employees in what is obviously a very difficult situation.
CHATTERLEY: It clearly is, and I know you've taken measures to reduce costs. What are you doing about your employees because clearly, this is a
time of great uncertainty because of the health crisis, but also, given the risk of job losses hereto, are you having to make employees redundant at
this stage?
FOGEL: Well, it's something no one ever wants to do. You always want in your first phase, not to go to employment cuts, you want to do other things
first. And the second thing you want to do something else. Third thing, something else.
But we are seeing across the industry throughout the world, we've seen huge, huge cuts already. You probably some of the numbers from Marriot,
having a number of people they've cut and all the airlines.
We've been fortunate so far, and I'm doing everything I can to preserve the jobs we can. This is an area where we really need government help on the
travel ecosystem, as you mentioned, 10 percent of GDP, maybe a third of a billion jobs. And these jobs, so many of them are early jobs to get people
onto that ladder of success. These are paths out of poverty. Housekeepers, people who are putting out the deck chairs, people who are taking jobs --
the first time they have a real job.
We need to preserve this opening for people in the economy, and that's why we need the governments to really help out.
CHATTERLEY: Are the measures that the U.S. Congress is going to hopefully agree on today enough? Whether it is initial cash payment or the expansion
of unemployment benefits or even at the business level? The loans? The grants? As they convert to if you retain employees, what's your sense? Is
it enough?
FOGEL: Well, it's a great start, and I'm looking forward to reading that it is passed. I know that there is still some issues happening, I'm sure it
will pass. And that's a good start.
It's not just the U.S. Like we're a global company. We have over 300 offices around the world. We operate in over 220 countries and territories.
So it's great to see, it is not just the U.S. government that is doing this, but Europe, Germany, France, Spain, Italy, and then India, just
announcing that they're doing a major fiscal stimulus package to help preserve and help their people.
We need governments from around the world to be looking at what is truly one of the most damaging things in our economic world ever, and they need
to step up, provide the funds to preserve these jobs because this will pass. We know this will end. Pandemics do and so we need to be positioned
correctly to be able to come out and build from there.
CHATTERLEY: It's so important, the stabilizing force for the next few months, we hope to enable a stronger recovery and an opening up of business
once we get through this.
Glenn, what's your sense of the risks of opening up, restarting business before the medical experts are convinced that we are in control of this
pandemic? Whether it's in one country or elsewhere? Because we're watching China very closely. Would that be probably the worst case scenario for
business, a false start on restarting the economy? What's your view?
FOGEL: Well, look, we recognize that no one is going to want to have a restart of the virus. That's one thing people do not want. So governments
are going to appropriately look at what is the right balance between starting economies and then having the virus rebuild up again.
We know from SARS, which was a terrible thing almost 20 years ago, 2000- 2003, where even after the virus was gone, people were still somewhat cautious about international travel. So demand did not come up right away
because people were scared.
But governments on the other side, were doing things to help try and prevent a resurgence of that virus by still having fever checks at airports
and other ways to try and make sure that they weren't seeing a re- importation of that virus.
I think even after we get past the virus, governments are still going to want to maintain some ability to look out for people coming back in with it
from other countries. So that's going to put a little bit of a dampening on international travel.
I think domestic travel will come up much faster. And I think that, you know, I'll leave it up to the medical experts and the people who really
understand those things better. When should we restart our economies with travel?
[09:50:10]
FOGEL: But I do know that the important thing from my point of view is to be prepared. So when that happens, that we can start helping get that
economy in the travel industry going again.
You know, the thing is, it's like the great hokey player, Wayne Gretzky who said, you don't skate to where the puck is, you've got to skate to where
it's going to be.
Well, travel, it's going to come back down the road when the pandemic ends, which it will. We've got to be prepared when that happens to get that
running.
CHATTERLEY: Sir, fantastic to have you with us. We wish you well, and of course, all your workers around the world. Glenn Fogel of Booking Holdings.
Great to have you with us. Stay with us. We're back after this.
FOGEL: Thank you.
(COMMERCIAL BREAK)
CHATTERLEY: All right, take a look at this. The Dow rally this week qualifies as a textbook definition of a new bull market and in fact, we've
seen headlines proclaiming the bull is back. But is that really what this is? Richard Quest joins me now.
Richard, we can talk about this, but -- well, I can already hear you groaning.
RICHARD QUEST, CNN ANCHOR, QUEST MEANS BUSINESS: No, the bulls versus the bears. I love it. I mean, we are taking 20th Century terminology --
CHATTERLEY: I know.
QUEST: Nineteenth Century terminology and putting it into this vast new arena otherwise known as volatility, and quantum and all of that. Look at
the share price. Excuse me. Look at the share price of certain stocks, the way they bounced back over the last few days.
It is not normal. These are abnormal times.
But for the long term investor, the bull has not died.
CHATTERLEY: Oh, that's such a great point. Because you have to remember your time horizon for investing here. You know, I've been nervous. I've
been nervous about it, and you've been suggesting perhaps we could see a mini bounce here, and you are absolutely correct.
If you are a short term investor, then you could have made 20 percent back here, but to your point, and I completely agree with you, there is more to
come here in terms of volatility.
Richard, I want to ask you about travel. Because I know you're our expert on this. Tickets. People who have got tickets now that are outstanding.
This is a huge problem.
QUEST: It's a huge problem for anyone who had a ticket and doesn't want to do it now. Their flight may have already been canceled because of
government regulations, and you're stuck.
You can be stuck with a credit on an airline that you're not going to fly. And they're not giving refunds, and I know why they're not giving refunds.
You can work it out. It would be a huge drain on Treasury if they have to refund revenue they've already got. And there's no easy answer and you
can't get through.
I'm getting lots of emails from viewers who are just worried they've been canceled. They can't get through to the airline or the travel agency. It's
going to take months after this is over to unsort it.
[09:55:05]
QUEST: And meanwhile, the airlines are still in a desperate situation. This is not just bailout, they are on their knees.
CHATTERLEY: So very quickly, do you just have to be patient? New travel when things get up and running will be bookable, but for those people that
are trying to battle with credit. It's just going to take some time.
QUEST: Three things. One, look at your credit card. Can you reverse the charge? Two, if you're going to travel with that airline in the future,
just sit tight. Three, if you're at an airline that you wouldn't have normally travelled with, be prepared for a hell of a fight.
CHATTERLEY: Richard Quest, always fantastic to have you on with us. Thank you for that.
All right, we're wrapping up here. But I want to leave you with our appreciation for those on the frontlines fighting the coronavirus all
around the world.
This was a tribute. On Thursday evening, British people showed their admiration and gratitude for healthcare workers from their homes. Goodbye
from me, and I'll see you next week.
(COMMERCIAL BREAK)
[10:00:00]
END
