Return to Transcripts main page
First Move with Julia Chatterley
Stocks Falter As Gilead Halts The Coronavirus Treatment Trial; Restrictions Eased As Georgia Pulls Ahead To Reopen The U.S. economy, But At What Cost; The Makers Of Lysol Tell People Not To Ingest Disinfectant After President Donald Trump's Comments. Aired 9-10am ET
Aired April 24, 2020 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:23]
ZAIN ASHER, CNN ANCHOR: Coming to you live from New York, this is FIRST MOVE and here is what you need to know.
Stocks falter as Gilead halts the coronavirus treatment trial.
Restrictions eased as Georgia pulls ahead to reopen the U.S. economy, but at what cost?
And health warnings. The makers of Lysol tell people not to ingest disinfectant after President Donald Trump's comments.
It is Friday. I'm Zain Asher, in for my colleague Julia Chatterley, and this is FIRST MOVE.
All right, welcome to FIRST MOVE. It is good to have you with us on this Friday. Lots to get through today as we wrap up yet another challenging
week for global markets filled with new evidence that COVID-19 is of course taking a huge toll on global economies.
U.S. futures -- let's take a look here -- are on track for a higher open right now. Dow futures are up 200 points or so, but stocks of course have
been volatile amid concern that promising treatment for COVID-19 is actually not helping patients in recent trials.
We take a look at the setback for Gilead Science in just a moment with our Christine Romans who is standing by.
Let's take a look at what European stocks are doing. A new study says that German GDP is set to fall more than eight percent this year. A closely
watched index of German business sentiment plunged to the lowest on record, too.
Asian stocks finished the session lower as well. Let's get right to the drivers now, on Gilead, a document published by the W.H.O. suggested that
the company's antiviral drug did not help patients in a clinical trial; Gilead says the study ended early because of low enrollment and that the
W.H.O. actually published their conclusions far too soon.
Let's bring in Christine Romans who joins us live now. So, Christine, there was actually no concrete improvement in COVID-19 patients, but the fact
remains that economic recovery here is only going to be dependent on finding a treatment, a vaccine, hence the stock market reaction.
CHRISTINE ROMANS, CNN BUSINESS CHIEF BUSINESS CORRESPONDENT: And this is a reminder, there is no magic pill right now and there is no switch for
opening the economy and there is no magic pill or treatment approved really to fight this virus yet.
So, this is about science and letting the science do what it does best and have these clinical trials and different phases of clinical trials and try
to get some results here.
Now, Gilead points out that they do have other Stage 3 clinical trials going on that are more fully enrolled. This was just 237 patients, so not a
big enough sample group to come to any conclusions.
Yet, that is where we are here. It takes a long time to find treatments both in vaccine and both in therapeutics and that is where we are, a
reminder to markets.
Although they are bouncing back here this morning, it looks like, but still a reminder, we have a long way to go.
ASHER: Yes, let's talk about stimulus money because the House just approved $484 billion. For small businesses, the small companies that are really
dependent on this money, what are the guidelines in place to make sure that public companies with access to capital markets don't end up getting the
money first?
ROMANS: So, Congress wrote it this way, right? I mean, the problem here is that when you want to get the money out the door quickly, you don't put a
lot of strings on it, and that meant that these big public companies were able to tap in to some of this money.
And they got hundreds of millions of dollars of this money. Some have given it back and the Treasury Department has said, shame on you. Don't go after
this money if you have other access to capital and that we will come after it for you.
So, there is that, I guess, you know, public shaming warning here. In this money, in this $310 billion that is specifically for small businesses,
there is a $60 billion carved out that is supposed to go directly to very small community based lenders.
And so these are the kinds of lenders that are tied into community development pipelines that are just not connected to the rest of the
banking infrastructure.
So, that should help get the money to different corners of Main Street, but there are some real concerns, Zain. I have some real concerns that there's
not enough money in here to make everyone whole.
Now, we had trillions of dollars of payrolls for small businesses in February and now, all of a sudden we've got some -- a few billion, hundreds
of billions to try to fill that hole. This is going to run out really quickly.
ASHER: Right.
ROMANS: And I'm not sure they have the infrastructure to really spread it out far and wide.
ASHER: Right. Because that $350 billion ran out last week and who knows when this will run out. Obviously, very soon. Christine Romans, live for us
there. Thank you so much.
The Governor of the U.S. State of Georgia is moving ahead with an aggressive plan to reopen the state. Nonessential businesses including
salons and tattoo parlors will be allowed to restart. Here's our Martin Savidge with more.
[09:05:14]
MARTIN SAVIDGE, CNN CORRESPONDENT (voice-over): Georgia Governor Brian Kemp's plan to relax some social distancing efforts begins this morning.
Owners of barber shops, hair and nail salons, bowling alleys, gyms and massage parlors can reopen stores and next Monday, restaurants and theaters
can do the same.
Kemp defending his move to allow some sectors of his state to resume business, tweeting, "My team has worked closely with the Trump
administration and our decisions and direction are informed by data and public health recommendations."
This, as President Trump tosses out unscientific ideas from the White House podium. Last night, raising the bizarre notion of using household cleaners
as a possible treatment for coronavirus patients.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: And then I see the disinfectant where it knocks it out in a minute -- one minute -- and is
there a way we can do something like that? By ingestion inside or almost a cleaning --
(END VIDEO CLIP)
SAVIDGE (voice-over): But health experts agree there is no scientific merit for that suggestion.
(BEGIN VIDEO CLIP)
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: He also said, you know, it needs to be studied. Actually it doesn't. I mean, we know the answer to
this one.
The idea we would do a trial of some sort and inject some people with disinfectant and some people not and see what happens, I mean, as you point
out, I think everybody would know that would be dangerous and counterproductive and not at all moving us in the right direction.
(END VIDEO CLIP)
SAVIDGE (voice-over): Meantime, Illinois extending their stay-at-home orders through May 30th with an added requirement, wearing face coverings
in public if a six-foot distance can't be maintained.
(BEGIN VIDEO CLIP)
GOV. J. B. PRITZKER (D-IL): We need to keep going a little while longer to finish the job.
(END VIDEO CLIP)
SAVIDGE (voice-over): California's governor asking residents pressing to end social distancing efforts to look at the facts.
(BEGIN VIDEO CLIP)
GOV. GAVIN NEWSOM (D-CA): We are not out of the woods yet. I know there is deep desire. People are making calls on an hourly basis saying it is time
to open back up. Consider the deadliest day in the State of California to last 24 hours, 8.5 percent increase in the total number of deaths.
(END VIDEO CLIP)
SAVIDGE (voice-over): Dr. Anthony Fauci says the U.S. needs to ramp up both the number and capacity to perform tests in order to safely reopen parts of
the country.
(BEGIN VIDEO CLIP)
DR. ANTHONY FAUCI, DIRECTOR, NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES: I am not overly confident right now at all that we have what it
takes to do that. We're getting better and better at it as the weeks go by. But we are not in a situation where we say, we're exactly where we want to
be with regard to testing.
(END VIDEO CLIP)
SAVIDGE (voice-over): But according to Trump --
(BEGIN VIDEO CLIP)
TRUMP: No, I don't agree with him on that. No, I think we're doing a great job on testing. I don't agree if he said that, I don't agree with him.
(END VIDEO CLIP)
SAVIDGE (voice-over): Yet, many state leaders say there is much work to be done.
(BEGIN VIDEO CLIP)
GOV. PHIL MURPHY (D-NJ): The fact as a nation we weren't ready for this as a testing matter, we've cobbled together now up to 86 different sites, but
we're still not there yet.
(END VIDEOTAPE)
ASHER: And at his White House briefing on Thursday, the U.S. President raised false ideas on how to get rid of the virus. I want you to listen to
this.
(BEGIN VIDEO CLIP)
TRUMP: Supposing we hit the body with a tremendous -- whether it's ultraviolet or with just very powerful light and I think you said, that
hasn't been checked, but you're going to test it. And then I said, supposing you brought the light inside the body.
And then I see the disinfectant where it knocks it out in a minute, one minute, and is there a way we can do something like that by ingestion
inside, or almost a cleaning.
(END VIDEO CLIP)
ASHER: Now, there are obviously are strong warnings against what he is suggesting. The maker of Lysol and Dettol released a statement. You can
read it on your screen, it says, "We must be clear that under no circumstance should our disinfectant products be administered into the
human body through injection, ingestion, or any other route."
John Harwood joins us live now from Washington. So, bizarrely the President there intimating that perhaps ingesting disinfectant might be one way of
tackling the coronavirus. Has he clarified what he meant by that -- John.
JOHN HARWOOD, CNN WHITE HOUSE CORRESPONDENT: No, he hasn't and his aides have tried to dance around it, but I've got to tell you, this has put into
sharp relief, Zain, an issue we've all been dancing around for the last three years because the President has said bizarre things for a very long
time.
And the idea that he is not all there; that he's not in connection with reality is something that we have had difficulty talking about. This put
that into sharp relief because the idea of people ingesting a disinfectant, Lysol, Clorox, whatever, is straight up a lunatic idea.
And one of the President's former military aides on Twitter this morning was saying, in this White House you can't escape the crazy. And that is an
uncomfortable idea for anyone contemplating the idea that President Trump is the leader of our war against coronavirus right now.
[09:10:10]
ASHER: Is there any issue more important to President Trump's re-election than of course his handling of this pandemic?
HARWOOD: No. And the President is in trouble in his re-election. We've seen polls lately that the initial surge he got in public support rallying
around him has faded. He is trailing in most of the key battleground states. He is trailing nationally.
And what's happened is the coronavirus pandemic, because of the public health catastrophe and the economic catastrophe, it has wiped out what the
President thought was going to be the key to his re-election and that is a strong American economy. It's not strong anymore.
And he is now obsessed with trying to escape blame, provide hope for people, even with crazy ideas like ingesting disinfectant, and it simply
demonstrates the urgency that he feels, the desperation he feels about his predicament that he would stand up there and offer that.
And, also, that his aides, because they're concerned about setting him off and trying to work and battle the coronavirus around his -- the unusual
nature of his personality and how his mind works, that they have to be very delicate in how they handle it.
You could see the video of Deborah Birx, coordinator of the coronavirus campaign, squirming uncomfortably. You saw his F.D.A. Commissioner, Stephen
Hahn on our air last night trying to very diplomatically say maybe this isn't a good idea. Very tough situation.
ASHER: So, then to your point, is it hurting him or I should say, how much is it hurting him starring in these daily press conferences? Some say that
perhaps the President should have a lower profile at this time.
HARWOOD: Certainly, Republicans are saying that and some White House aides believe that, but the President is going to do what he wants to do.
He enjoys being in front of the camera every day. He is in very difficult shape for re-election. He's a decided underdog at this point. Is that
because of the briefings or would that be happening even if there were no briefings?
We don't really know the answer, but we certainly know that last night's briefing, again, drew into very sharp focus the idea that the President is
throwing out ideas from time to time that are just nuts.
ASHER: All right, John Harwood live for us there. Thank you so much.
As American businesses anxiously await the moment they can safely reopen, many are closely watching how Wuhan, the original epicenter of the virus
works to get back to normal.
That strict lockdown lasted for 76 days, and as our CNN's David Culver reports, some small businesses are struggling to survive.
(BEGIN VIDEOTAPE)
DAVID CULVER, CNN INTERNATIONAL CORRESPONDENT (voice-over): Wuhan's mild spring weather, luring people outside. They do not need much convincing
after enduring the most extreme of lockdowns.
CNN found folks enjoying the company of neighbors, or soaking in the stillness. All the while, still wearing face masks. A reminder that the
original epicenter of the novel coronavirus outbreak is not in the clear.
Two weeks after Wuhan lifted its lockdown, a drive-through commercial street shows many storefronts still shuttered. The shops staying open
finding a new way to serve customers.
(BEGIN VIDEO CLIP)
CULVER (on camera): You can only go up to the box up front. They've had a little table set up. You order with somebody who either comes to the door,
or you can do it through an app.
The idea is you are not to go into the store. All of this, still open business, but also, keep a social distance.
(END VIDEO CLIP)
CULVER (voice-over): But for some small business owners, there is no reopening in sight.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE (through translator): For private businesses like us, there's almost no subsidies.
(END VIDEO CLIP)
CULVER (voice-over): We talked with Mr. Wong. CNN agreed not to use his full name, as he wanted to avoid any trouble with local officials.
After three months of sitting closed, the 35-year-old restaurant owner is struggling with rent. If a government relief check arrives, he says, the
assistance will likely come too late, especially if there is another spike in infections here.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE (through translator): Considering the possibility of a second wave, very likely, we will leave this business and find another job.
(END VIDEO CLIP)
CULVER (voice-over): Mr. Wong opened up about the mental health struggles of living under lockdown, sealed inside his home.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE (through translator): I was actually very scared at that time. When I saw the news that the pandemic was gradually under control, I
felt less nervous. When I got bored at home, I just watched TV. I played on my phone and slept.
(END VIDEO CLIP)
CULVER: And yet, Mr. Wong, like many across the world, also had to deal with news that three of his loved ones contracted the virus. One of his
extended family members passing away.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE (through translator): Of course, we were very sad. We couldn't see him for the last time when he died, or even give him a
farewell ceremony. It was a big regret in our hearts. We would go to his grave after the pandemic to hold a simple ceremony for him.
(END VIDEO CLIP)
CULVER (voice-over): Likely, thousands of similarly delayed remembrances to take place here in Wuhan over the weeks ahead. As others cautiously move
forward with living, these, the faces of those who endured a harsh lockdown, now navigating their way into an uncertain future.
CULVER (on camera): And here we are, more than three months after the lockdown initially took effect, and you can tell there that folks are still
very hesitant to walk back into life as it was prior to the lockdown.
[09:15:44]
CULVER: And businesses, the ones that will reopen, will do so, as you see, with very different modes of how they operate. The ones that remain closed,
including fitness centers and cinemas will be doing so until they get formal approval to reopen.
And even once they reopen, many of them are still concerned that the customers will be very reluctant to come back, concerned that they will
face that added exposure ahead of what could potentially be a second wave of this outbreak.
David Culver, CNN, Wuhan, China.
(END VIDEOTAPE)
ASHER: All right, still to come here on FIRST MOVE, as the Georgia governor decides to reopen the U.S. state, we speak to one of the mayors who
expressed skepticism over the timing.
And the coronavirus and an economic downturn hitting Africa at the same time. We will discuss how the continent is coping. That's next.
(COMMERCIAL BREAK)
ASHER: Welcome back to FIRST MOVE. Futures are still pointing to a higher Wall Street open, all of this after a flat close on Thursday.
The Dow futures about 192 points. We've got 10 minutes until the opening bell. Trading was volatile Thursday amid concerns that a COVID-19 treatment
from Gilead Sciences is showing disappointing results early on.
Intel is lower in premarket trading. First quarter results for the chip making giant was solid, but its outlook for the current quarter came in
below estimates and Intel is pulling guidance for the rest of the year as a lot of companies are doing.
[09:20:07]
ASHER: Let's return now to one of our top stories, the reopening of the U.S. State of Georgia. A source tells CNN that President Trump had been
privately pleased with the plan and called Governor Brian Kemp on Tuesday night to express that.
But publicly on Thursday, he had a very different reaction. I want you to listen to this.
(BEGIN VIDEO CLIP)
TRUMP: I said, you're not on the guidelines, but I'm letting you make your own decision, but I want people to be safe and I don't want this thing to
flare up because you're deciding to do something that is not in the guidelines.
And I went to Deborah and Dr. Fauci and other people and they weren't thrilled about it, and I could have stopped him, but I decided and we all
agreed, they have got to watch it closely. But if you ask me, am I happy about it? I'm not happy about it and I'm not happy about Brian Kemp.
(END VIDEO CLIP)
ASHER: So, you heard the President there saying that he is not happy about it. The governor's decision has baffled many mayors running Georgia's
cities and towns. One of them is John Ernst, the mayor of Brookhaven, that's a city with 50,000 residents and he joins us live now via Skype.
Mayor Ernst, thank you so much for being with us. So, in order to have a state reopen, I think you really need -- you need several things, but
especially two things. You need robust testing and you also need clear guidelines on how to protect workers.
Georgia has neither of those two things. What are your thoughts?
MAYOR JOHN ERNST, BROOKHAVEN CITY, GEORGIA: Well, that is correct. We do not have the number of tests needed to keep the spread down. We don't have
the equipment or protection of workers, and that's what I'm hearing from my residents, from my business owners, from my restauranteurs.
We are who are basically saying, I was told last week to try to open up. I can't source PPEs myself. I can't get masks, I can't get plastic gloves, I
can't get Clorox wipes. So, you know, there is a lot of concern out there.
ASHER: So, what sort of -- just explain to our international audience, legally what sort of recourse do you have? If the governor -- Governor Kemp
wants to thing and you as mayor of Brookhaven decide, you know what, no, I want to keep the 50,000 residents in my city safe. I don't want businesses
to reopen. What legal recourse do you have?
ERNST: I have no legal recourse. The governor's order supersedes local jurisdictions and local law, so the governor's order is legally the only
thing that can be enforced.
I cannot increase any restrictions. I can't decrease any of the restrictions. We are -- in fact, my local police at this point can't
enforce the restrictions, only the State Patrol and the Sheriff's Departments can do so.
There is talk that surely, maybe my local police can do it. So, legally, I have no recourse. The only recourse I have is speaking up and telling
people what I think, and people will make the decisions that they make.
ASHER: So businesses, I mean, realistically when you think of the worst case scenario, businesses might end up in a worse position because they
reopen, they expose their workers. More people get sick. Cases rise. And then they have to close again, and that prolongs the ordeal.
I mean, just walk us through just for businesses or business owners who might live in your city who are thinking of reopening, what are the
consequences?
ERNST: Well, I mean, that's the issue. You know, Brookhaven was the first city in the State of Georgia to start doing social distancing, to close our
restaurants and bars for in-dining operations, and put in a whole bunch of restrictions, basically having our shelter in place.
And so we've been down longer than anyone else has in the entire state by close to two weeks. So, you know, my citizens have been great. My business
owners have been great. People have been doing take out.
Now, you know, having these changes in the rules they are -- these business owners don't know if they are going to have any business.
About 75 percent of my restaurants say they are not going to open up on Monday and that they are going to just wait it out and continue doing take
out if they were doing take out.
The ones that shut down completely, they're still talking two to three weeks out before they open back up. So it's a really Catch-22.
The fact of the matter is, it is one of those things where you needed to go into social distancing as quickly as possible and you do it as long as
possible to maximize the effectiveness and the spread.
And I don't think we're that far off in Georgia necessarily. We don't have the testing. But our cases are coming down, but we're not there yet. We're
not within the guidelines.
And to reopen could cause us to flare back up to then close back down. So in the end, I believe this is kind of worse for -- it could be worse for
our economy. I hope I'm wrong. I hope that this does work out. But I have strong suspicions that it is going to be very troublesome.
ASHER: Were you given a heads up by the governor about his plans or that he was thinking about reopening the state or did it -- were you blindsided?
[09:25:13]
ERNST: All of us were blindsided. Every mayor was blindsided. People who are on his taskforce were blindsided. This came out of the blue.
We heard rumblings that he was thinking about, you know, just rumors that he was thinking about reopening. I, myself, thought that would have been
May 10th or May 15th, you know.
When you reopen you would want a long lead time for those businesses to get PPEs and such, to try to be able to source, but now, you know -- and have a
nice, orderly transition, but it seemed to be very, very quick. Very, very aggressive. We just don't know a lot. No one really knew what was going on.
ASHER: Well, it's certainly a very risky proposition, but the residents of Georgia are in our thoughts and prayers. John Ernst, Mayor of Brookhaven,
thank you so much. Appreciate it.
ERNST: Thank you.
ASHER: Coming up on FIRST MOVE, how the sudden collapse of oil prices is impacting Africa's largest economy. We'll have a live report with our Eleni
Giokos in just a few minutes.
(COMMERCIAL BREAK)
ASHER: All right. Welcome back to FIRST MOVE. I am Zain Asher. U.S. stocks are up and running on this last trading day of the week and as expected, we
have got a higher open overall for all the major indices.
U.S. stocks are still on track for a losing week overall amid continued concern over the economic damage from COVID-19 across the world.
New numbers from the U.K. show retail sales plunging by the largest amount on record last month, this follows shockingly weak global manufacturing and
services sector data released yesterday.
Federal Reserve policy makers meet next week to discuss their response to the crisis.
In the meantime, oil is finishing up its most turbulent week in history with solid gains. U.S. crude plunged to below zero dollars a barrel for the
first time ever -- also a history making moment and that was on Monday.
[09:30:12]
ASHER: The plunge in oil, prices are hitting Nigeria hard. According to I.M.F., the country relies on oil sales for 90 percent of its foreign
exchange earnings and 60 percent of government revenue.
Oil accounts for nine percent of Nigeria's GDP. Meantime, the number of coronavirus cases, the number of infected continues to rise in Africa.
Eleni Giokos joins jus live now from Johannesburg.
So, Eleni, I am originally from Nigeria. You spent a lot of time in that country. When you think about how this country is suffering because of this
pandemic, 60 percent of the country's revenues comes from oil. On top of that, it is now losing about 35 million U.S. dollars a day because of this
pandemic.
What hangs in the balance here?
ELENI GIOKOS, CNN BUSINESS AFRICA CORRESPONDENT: Yes, you know, and it is so funny. Yes, I do go to Nigeria very often and in fact, the last time I
was there, it was in February and I remember just how much optimism there was about 2020 and just how much economic growth.
People were expecting and of course, oil prices were pretty stable at that point. And then, you fast forward to now and you're looking at a very
different environment.
And what hangs in the balance is of course the ability of government to be able to spend its way out of this crisis. If you're talking about wiping
out a significant portion of its revenues like you say, then how much money is there left to really spend and plow into the health sector? How much
money will there be for social issues that are obviously going to arise because of the pandemic?
Now, the numbers in Nigeria are sitting at around 980 cases at the moment with 31 deaths, but the country is currently under lockdown and that brings
so many issues into play.
Firstly, you're killing economic growth because you have to pick lives over the economy. But you are also then embarking on a twin shock is what the
I.M.F. is talking about.
Firstly, you've got the impact of COVID-19 and the pandemic and the lockdown and then you have the oil price volatility shock which has
absolutely rocked the country and its finances. Budgets have to be reworked.
Oil majors are coming under pressure, and you and I know, the value chain around the oil and gas sector is absolutely enormous. So, you're looking at
potential job losses there as well.
So, it is a tough situation right now, Zain. But let me tell you, private sector and government are trying to mobilize to find solutions to the
problems that are going to be coming up in the next few months.
ASHER: You know, Nigeria is a country with a huge amount of economic potential. You and I have had many, many conversations about the country's
prospects and its future, but it is also a famously unequal society.
Income inequality has been a problem in Nigeria for as far back as I can remember. What happens in this scenario to the country's poorest? Even just
getting food, even just being able to feed your family if you're not working, is in and of itself a miracle.
GIOKOS: I know. I mean, it is such a good point to make because you know, when we go to Nigeria, we obviously spend time with a lot of CEOs and go to
Board rooms and you go to really incredible places and factories and infrastructure and you see the developments.
And then you're on the ground and you see the plight of what people are experiencing, and then you say, well, there is a huge gap, right, so that
is being pronounced.
And let me tell you, it's is not only a Nigerian problem in terms of the inequalities that are being accentuated. It is everywhere, it is even here
in South Africa.
I was talking to a government official that is in charge of development Lagos State's sustainable development goals yesterday and she was telling
me there are around 10 million to 15 million people in Lagos State that are hungry or are very close to the poverty line.
So, now, you're asking these people that already were living meal to meal by the way to try and earn money daily to survive, to now not work at all.
So, you're sitting with a social dilemma here. So, you've got to embark on giving out food parcels which of course, we know the government is trying
really hard to do and the private sector and of course, the money that is around within the private sector in the hands of billionaires that is also
flowing to social issues.
But you know, we cannot also forget the people that are living in the north of the country that are the heart of the agricultural sector that are not
even receiving seeds and fertilizer right now.
So, there is a worry about food insecurity and there is a worry about security in general right now.
ASHER: Nigeria really does, at the end of this, have to prioritize diversifying its economy. You think about the fact that it exports crude
oil, imports gasoline, then sells it at a loss because it has to subsidize it.
Those diversification conversations really need to remain front and center from this point on. Eleni Giokos, we have to leave it there. Thank you so
much.
All right. Turning now to the emergency response in Spain where there is hope amid the heartache. Hundreds of volunteers are helping or lending,
rather, a helping hand to residents who are unsure of their next meal.
Let's get now to Scott McLean who is live for us in Madrid. Scott, I understand you are seeing people who have never -- never -- in their lives
had to rely on a food bank suddenly becoming very familiar with one now.
[09:35:15]
SCOTT MCLEAN, CNN CORRESPONDENT: Yes, and it is important to keep in mind, Zain that Spain was still recovering from the last financial crisis 12
years ago when the coronavirus came along.
So, it has forced hundreds of thousands of people already permanently into unemployment, it has forced millions of people to be furloughed and as you
mentioned, forced ordinary working people who have never seen the inside of a food bank to suddenly ask for help.
We met some of them when we rode along with the Madrid Fire Department.
(BEGIN VIDEO CLIP)
MCLEAN (voice-over): Inside this kitchen, volunteers are preparing food for Madrid's most needy. The funding comes from World Central Kitchen, a
charity started by celebrity chef Jose Andres, better known for its work in the aftermaths of floods, fires and hurricanes.
"This is the closest we've lived to a natural disaster. A fractured economy, the consequence is the same," he says.
The meals are delivered by the Madrid Fire Department, used to responding to disasters, just not the kind that Spain is facing right now.
The coronavirus crisis that's killed well over 21,000 people in Spain has also torched a huge swath of the national economy. For many families, it's
reduced their income down to zero.
Loaded up with food, the bomberos head out to deliver. Five weeks into the lockdown, the firefighters have gotten familiar with the people they serve,
many who, until now, had been unfamiliar with the inside of a food bank.
Daisy Rivero lives with her autistic son and works full-time at a daycare center. She's been out of work for almost six weeks now.
"He doesn't understand why we can't leave. I tell him, son, at least we have food now," she says. The last financial crisis sent Spain into a long,
painful recession.
Twelve years later, before COVID-19, it was still finding its economic feet, still struggling with 13 percent unemployment and one of the highest
debt burdens in Europe.
Elizabeth Sanchez is a mother of two with a third on the way. Her husband, who works in construction, has been forced to stay home since the lockdown
began.
"It was already difficult before. Now, it's even tougher. I pray to the Lord this ends soon," she says. So far, her prayers have gone unanswered.
While Prime Minister Pedro Sanchez has promised the largest stimulus package in Spanish history, he's also promised to extend the lockdown for
at least another two weeks.
(END VIDEOTAPE)
MCLEAN: So, that lockdown will go on for at least another two weeks and only beginning in mid-May does the Prime Minister say that the economy will
gradually start to reopen.
One of the last industries to restart though, Zain, will be tourism, which makes up 12 percent of Spain's economy.
ASHER: So, the state of emergency is going to continue until May 9th and then as you said restrictions are going to ease, the economy is going to
slowly reopen. What happens if after that point, the virus then starts to spread again? I mean, I imagine that's got to be a fear right now.
MCLEAN: Yes, you are absolutely right. So, first there is a little bit of good news. Today, is the very first day that they've seen more recoveries
recorded than people actually testing positive for the virus.
So, there are certainly some good signs. And as you said, they're going to gradually start instituting these or lifting these restrictions starting
this Sunday. Kids will be allowed to go on walks with their parents, but as you said, there is this real fear of the virus returning.
And so the next phase of this relies heavily on personal responsibility. People taking it upon themselves to make sure that they are social
distancing so that the virus doesn't actually return.
The government says if that starts to happen, they can snap back those restrictions and put them back in place, which obviously is good news for
no one considering that this has already gone on for six weeks and will be going on for another two weeks.
The economic impact of this leaving the health part of it aside, the economic part of this alone is massive -- Zain.
ASHER: Absolutely right. Thank you. Scott McLean joining us live there from Madrid.
All right, up next, San Francisco ramps up contact tracing as experts warn it will be key to reopening economies.
The man leading the city's program gives us the inside story, that's next.
(COMMERCIAL BREAK)
[09:42:39]
ASHER: Test, track, and trace is the formula many health experts believe is the key to easing lockdown restrictions. Officials everywhere are racing to
ramp up testing, but few have prioritized contact tracing.
One of the first American cities to do so is San Francisco where the mayor unveiled a very ambitious program ten days ago. Joining me to explain how
it works is the man leading those efforts, Dr. George Rutherford, Professor of epidemiology and biostatistics at the University Of California. Dr.
Rutherford, thank you so much for being with us.
So, just walk us through how contact tracing works and, also, the challenges with it. I imagine that once restrictions are eased every single
person who is infected could easily come into contact with over a hundred other people before they, themselves are even aware.
DR. GEORGE RUTHERFORD, PROFESSOR OF EPIDEMIOLOGY AND BIOSTATISTICS, UNIVERSITY OF CALIFORNIA: Well, that is a somewhat pessimistic scenario,
but let me walk you through it.
ASHER: I am sorry.
RUTHERFORD: To start with, this is a program of the San Francisco Department of Public Health and we, at the University of California are
merely helping them. The way it works is that when a person is reported with COVID-19, their information is given to a contact investigator, works
for the city, a case investigator who interviews them and elicits who they have been in contact with.
During a period of shutdown like this, it is relatively straight forward because it's going to be household contacts primarily although we have a
number of essential workers who actually do go out and work, so they can be coming into contact with people in the workplace.
Once we've gotten the names of the contacts or at least some of the locating information for the contacts, we turn it over to people who have
been largely repurposed from the University of California, San Francisco and from city government within San Francisco who actually make the calls,
do the texting, make the contact with people who have been in contact with the patient, arrange for testing if that's appropriate. And then help make
dispositions about whether they should go to isolation, quarantine, or be cut loose.
The city then follows up through an isolation and quarantine team for people who have been placed in isolation and quarantine especially those
who can't do it -- really do it at home and we've been placing at least for isolation in hotels making sure they have food, you know, the kinds of
things people need to survive unless they're living in a big house with a big family and people who can take care of them.
So, that is the kind of rough nuts and bolts of it. The challenge is that at least now, for every one case, we have almost four contacts named.
So, with a thousand cases, roughly 4,000 contacts. It takes a half hour each to get ahold of the contacts, walk them through what is going on, and
to get it all set up.
[09:45:35]
RUTHERFORD: So, you can see that the person power needs are just enormous for something like this.
ASHER: So, there needs to be speed obviously, there needs to be testing. And here is another -- I apologize for my pessimism, but here is another
question for you -- just in terms of data privacy, how much concern is there -- out there when it comes to that?
RUTHERFORD: Well, data privacy is obviously a cornerstone of public health at least as it is practiced in the United States.
The data are private. This is -- these are diseases that are reportable by law. Contact tracing is a legally sanctioned activity. So we're there.
Once you start talking about apps, though, we start to push at the edge of what's -- of privacy concerns. Some countries that are touted or that are
held out as exemplars for how well contact tracing has gone are really I think in our society would be viewed as quite intrusive.
For instance, in one Asian country, when you become a case, your phone is turned over to the national police authority who finds out where you've
been then they -- the National Banking Authority runs all your credit card records, finds out where you've spent money, and then they decide to take
your picture and send you out to the surveillance cameras, so they can follow where you've been.
So, I don't think that would fly very well here. But nonetheless, that is an example of a successful contact tracing program.
ASHER: I mean, it is almost Orwellian isn't it? When you hear about states like Georgia, that are you know, reopening in this environment without
adequate testing, contact tracing, that sort of thing, as a doctor yourself, a Professor of Epidemiology, what are your thoughts on that?
RUTHERFORD: It seems somewhat premature to put it mildly. I think you really have to have pretty low levels of transmission and to have a very
robust contact tracing program in place if you're going to even consider these things. Otherwise we'll be right back at this again with sheltering
in place over and over and over again, which no one wants.
And the way to do it is to make sure that we learn the lessons from 1918 and 1919, where cities that ended essentially lockdown early had big
rebounds and deaths. We have to stay the course and we have to make sure we can get out the other end and that we have a serious contact tracing
program in place along with all of the other things that are needed, and you know, just ride it out that way.
ASHER: Absolutely. You can't sacrifice the long term for the case of the short term. All right, Dr. George Rutherford live for us there. Thank you
so much. Appreciate you being with us. Stay well.
Coming up on FIRST MOVE, why a pet supply retailer is so relevant under stay-at-home orders. We'll explain why after the break.
(COMMERCIAL BREAK)
ASHER: All right, breaking news just in to CNN. A French court has rejected an appeal from Amazon over a ruling that limits deliveries.
The court had said Amazon could only deliver essential items to protect its warehouse workers. Amazon said the ruling made it impossible to operate and
had already closed its French redistribution centers.
We've been following that closely.
Shares of online pet supply giant, Chewy are soaring as many people in America stockpile pet food and adopt more pets. Matt Egan has been talking
to the CEO of Chewy, he joins us live now.
So, it turns out that in quarantine, people just you know, want to curl up with a furry friend. They're adopting more cats, more dogs. What has that
meant in terms of revenues for Chewy?
MATT EGAN, CNN BUSINESS SENIOR WRITER: Well, Zain, you know, in a lot of ways it feels like Chewy was made for a moment like this.
It's benefiting from all of these trends that are converging at the same time. Forced online shopping, panic buying, and, yes, rising pet ownership.
That's why Chewy stock has beaten the S&P 500 by about 60 percentage points so far this year. They're hiring up to 10,000 people.
And so you know, I asked the Chewy CEO, Sumit Singh whether or not they're still seeing strong demand more than a month after many Americans have been
forced to stay at home. Here's what he said.
(BEGIN VIDEO CLIP)
SUMIT SINGH, CEO, CHEWY: Millions and millions of customers are relying on us to fulfill that demand of pet essentials during this time and we're
proud to do so.
So, demand has remained at higher levels than expected like when we issued the guidance for Q1. I think it is reasonable to expect that will remain
high up to the point that the economy really kind of reopens back up.
(END VIDEO CLIP)
EGAN: Zain, it is not just new customers who either can't or won't go to pet stores during this pandemic. There's actually been a surge of new pets
because many Americans have decided to adopt or foster dogs or dogs and cats at this time, so I asked the Chewy CEO about that trend. Here is what
he said.
(BEGIN VIDEO CLIP)
SINGH: Pet adoption is higher during the Holiday time frame. It's always been the case. Folks have more time. They -- the spirit of bonding and
camaraderie is greater during that time.
And so, we're seeing a similar kind of pattern here. It may not be out of happiness, but folks do have time and they're craving companionship, and so
pet adoption has gone up.
New pets have gone up, and we're seeing a similar proportion migrate to our platform, so we're serving pet parents across their journey.
(END VIDEO CLIP)
EGAN: So, it really does seem as though Chewy is kind of in a sweet spot right now. I think the real challenge is whether or not it can meet
expectations both from Wall Street, which has driven Chewy's valuation up very sharply, but also from its customers who really needed to be there
during this crisis.
And if it can't meet those expectations of customers, it risks burning some bridges and, perhaps, losing some customers to competition. That is the
real challenge -- Zain.
ASHER: Yes, we've just seen on our screen how much the share price has increased over the past month. Obviously, their revenues are up. What about
their expenses at a time like this? Because naturally, they are going to be spending more on hiring and also health and safety costs as well, which,
you know, when it adds up, depending on how long this lasts, this whole quarantine thing lasts, might not be cheap at all.
EGAN: That is exactly right. Chewy has lost almost a billion dollars combined over the last three fiscal years. It's never been profitable. And
I asked the CEO, I said, do you think given all of this demand you're going to finally be able to turn a profit? And he wouldn't say that they will.
He's not sure.
And I think that's because of the cost issue that you're talking about. They are spending a lot of money on hiring. They're building two new
warehouses. One of them is going to be automated. And you mentioned all of the safety concerns as well. They're doing temperature checks.
All of that will cost money. All of that will eat into the bottom line. So, yes. Sales are up. Demand is up. But the profit so far has been elusive.
ASHER: All right. Matt Egan live for us there. Thank you so much.
And finally, before I leave you, take a listen to this beautiful voice.
(BEGIN VIDEO CLIP)
DR. ELVIS FRANCOIS, ORTHOPEDIC RESIDENT (SINGING "IMAGINE"): Imagine all the people living for today. You might say that I'm a dreamer, but I'm not
the only one. I hope someday, that you will join us, how the world will live as one.
(END VIDEO CLIP)
[09:55:31]
ASHER: If that doesn't warm your heart, I have no words. That was a very lovely voice of Dr. Elvis Francois, a fifth-year orthopedic resident at the
Mayo Clinic in the American State of Minnesota.
Videos of him singing have attracted millions of views on his Instagram page. He is so talented. And he uses his voice to spread positivity, of
course, something that we all need right now.
That is it for the show. Thank you so much, so much for watching. Wherever you are, please be safe and well. I'm Zain Asher. Julia is actually back on
Monday. I wish you a safe and happy weekend. All the best.
(COMMERCIAL BREAK)
[10:00:00]
END
