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First Move with Julia Chatterley
President Trump Promises A Strong Message On China; The U.K. Tightens Restrictions For Offices, Bars, And Restaurants; Elon Musk To Unveil Tesla's New Battery Technology. Aired 9-10a ET
Aired September 22, 2020 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:16]
JULIA CHATTERLEY, CNN INTERNATIONAL ANCHOR: Live from New York, I'm Julia Chatterley. This is FIRST MOVE, and here's your need to know.
Not so united nations. President Trump promises a strong message on China.
Lockdown light. The U.K. tightens restrictions for offices, bars, and restaurants.
And leading the charge. Elon Musk to unveil Tesla's new battery technology.
It's Tuesday. Let's make a move.
A warm welcome once again to the show as we begin the full season of FIRST MOVE. It's typically an incredibly busy week here in New York as world
leaders congregate to discuss the big issues of the day.
This year, of course, the 75th U.N. General Assembly is entirely virtual. As I mentioned, President Trump's address is coming up this hour. We will
bring that to you when it happens. We'll also be hearing from Russian President Vladimir Putin and China's President Xi Jinping throughout the
day.
Now, in the meantime, autumn is the season for pumpkin spice, falling leaves, and a biting chill and there was a definite shiver, I think, on
Wall Street on Monday. U.S. stocks fell for the fourth day in a row. Futures, as you can see, well, they're mixed. NASDAQ futures are bouncing
back some six-tenths of one percent. The S&P 500, meanwhile, begins the session eight percent below the record highs set just three weeks ago, so
that gives you a sense of what we've seen in terms of pullback.
We're dealing, I think, with what I'd call uncertainty overload at this moment. We have clearly, as you saw on that chart, come a long way since
the March lows, but now hopes of further financial aid to support the U.S. economy, at least, are dimming. When the U.S. slows, the world slows, too.
We are also six weeks out from an uncertain presidential election here in the U.S. and U.S.-China relations remain fraught. The President will
certainly address those today. And of course, the COVID crisis.
Countries like Brazil and India still battling high caseloads. The U.K., as I mentioned, says new infections are doubling about every seven days. The
latest on those restrictions coming up shortly, and it was the recovery stocks that took a hit yesterday, weighing on the Asia session, too,
overnight.
In Europe, we can't forget banking giants: HSBC, Barclays and Deutsche Bank remain under pressure as they address money laundering concerns. HSBC
sitting at that 25-year low.
Bring it back full circle here in the United States, Fed Chair Jay Powell is in the hot seat in front of Congress once again, and you know what he is
going to say. Christine Romans joins me now.
Uncertainty overload. Christine, great to have you with us. Jay Powell, I am sure will be sitting there thinking, if not saying, I've done my part.
Now, you guys have to do the same.
ROMANS: Yes, the Fed has done historic heavy lifting here in a historic moment in American history. We've never really seen something like this
where we turned the economy off on purpose to slow the spread of a pandemic that was killing thousands of people, now at any moment, 200,000 people in
the United States.
Now it's the turn of Congress and the Fed Chief has said again and again that more support will be necessary, and by support, I mean, shock
absorbers for American families to pay their bills, to just stay solvent until we can get through this tough, tough moment.
It doesn't look like Washington is taking that seriously at the moment. This is all about Supreme Court politics, a very chaotic and toxic
environment in Washington at the moment and it looks like pandemic relief, more shock absorbers for American people is not at the top of the list at
the moment.
CHATTERLEY: Yes, shock absorbers and this is a great word to describe it, needed all over the world, let's be clear. The problem is and why we fixate
on the U.S. economy is because it's so big in terms of the broader global economy that whatever happens here does have a huge impact everywhere else.
It was interesting to look, for me, at what was moving and shifting yesterday and losing ground. It was recovery stocks. It was the airlines.
It was the material stocks, the ones that do benefit in a recovery scenario, and that was very different from what we saw earlier in
September, where it felt like a bit of froth was coming off some of the highly-priced, relatively highly-priced tech stocks.
ROMANS: Yes, and the fact --
CHATTERLEY: There is a concern here.
ROMANS: And the fact that you had so many different asset classes all falling together, too, just led to a moment of kind of trepidation, I
think. I mean, look, you and I have talked about this K-shaped recovery.
I didn't coin it, but it's been around for months now, this idea that there will be winners. The Amazons of the world and some of the parts of the
retail world that will be able to, in this retail reset, in the post- pandemic world, that will be able to do very, very well.
And there are other sectors and people, frankly, who won't -- who won't do well in this new K-shaped recovery here and that's a real big concern that
Congress, I think, is missing a moment to try to make sure that we come out of this problem, this crisis, stronger than we went into it and that's
something that's missing, but you can just listen to the tone in Washington and that is not the conversation they're having.
[09:05:32]
CHATTERLEY: No. Attention is elsewhere, and that's to the detriment of American families. Thank you very much, Christine Romans.
ROMANS: You're welcome.
CHATTERLEY: The U.S. President says we should expect a strong message on China when he speaks to the U.N. General Assembly. The President's speech,
like those of all leaders speaking today was prerecorded. Will Ripley joins me now.
Will, no secret, the tensions clearly between these two nations and it's been a story for the last four years. He is very careful not to criticize
President Xi directly, though, and has remained so. Does that hold true today, do we think.
WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: We expect that to continue, Julia, because even though the Trump administration has arguably gone
harder on China than any of the previous U.S. administrations in areas like trade and technology, and now, of course, the Trump administration branding
the COVID-19 pandemic as the China virus, trying to deflect responsibility from President Trump's failures at home to contain the spread of the
pandemic before the numbers really exploded out of control.
But he has always praised President Xi's leadership. Of course, China gave him the red carpet welcome at the Official State Visit, when President
Trump traveled to China. He appreciated that very much. And President Trump also is one who really values the prestige of standing there at the Green
Granite of the United Nations and having an audience to, I guess, read the room, determine whether his statements are landing, and he won't have that.
President Trump's message, like all the world leaders' messages, is prerecorded. He recorded it at some point on Monday. As you said, strong
message towards China, which isn't anything new from the Trump administration. They, you know, just barely came hours away from banning
TikTok, one of the most popular social media apps ever to come out of China. They have a dispute with WeChat, another social media app. Of
course, the Huawei ongoing dispute over 5G and cell phone technology.
So, Julia, from the United States side, expect to see President Trump go on the attack towards China, but probably throw in some praise for President
Xi personally. President Xi, if we can base just on what he was saying earlier this week, at the United Nations general debate, he is going to
have a much more -- a message of cooperation.
He is going to deny that China shirked its responsibilities in the early weeks and months of the pandemic to notify the world of what was happening.
But overall, China is trying to position itself here as the new up and coming superpower, the one that is still willing to work together with the
global community, even as the Trump administration, while representing the country that was one of the key founders of the U.N., is basically going
against a lot of these global norms and we can expect to see more of that in the coming minutes. He is expected to speak possibly in the next couple
of hours -- Julia.
CHATTERLEY: Yes, it's going to be a fascinating day, perhaps a day, too, for focusing on how they act. Perhaps more rather than what they say.
Will Ripley, thank you so much for that.
Now, speaking of that, this is the moment when we must act. The words of British Prime Minister Boris Johnson in the past hour or so as he announced
tighter restrictions designed to slow the spread of COVID-19.
(BEGIN VIDEO CLIP)
BORIS JOHNSON, BRITISH PRIME MINISTER: Yesterday, on the advice of the four Chief Medical Officers, the U.K.'s COVID alert level was raised from three
to four. The second most serious stage, meaning that transmission is high or rising exponentially.
So, this is the moment when we must act.
(END VIDEO CLIP)
CHATTERLEY: Anna Stewart joins us now and can tell us all about these new measures. Anna, the one that stood out for me, and just to be clear, this
is England we're talking about, new measures in England, the U-turn on trying to get everybody back to work. They're now saying, if you can work
from home, do it, and that's a problem for the economy.
ANNA STEWART, CNN REPORTER: Yes, of all the measures, in many ways, that's sort of the less exciting one compared to the curfew, which we can get on
to in a minute. But telling people that they should work from home where possible just weeks after the government actually tried to get everybody
back to their offices, this is damaging because it's not just one sector that gets hit.
It's travel, it's the office blocks, and it's the landlords that owns them. It's the cafes, the bars, the restaurants, and it's going to be huge
pressure on jobs across the board. And this, of course, Julia is just as the furlough scheme is tapering. It ends at the next -- at the end of next
month and there were calls today for them to extend that scheme.
The government needs to do more, people are saying, to help these businesses if they're going to increase restrictions, tell people to work
from home, but so far, nothing on that yet.
I will mention the curfew for the hospitality sector. This is going to kick in on Thursday and was one of the major measures announced today. They will
have to close from 10:00 p.m. This is bars, restaurants, pubs, of course, and at 10:00 p.m., people have to be out. The pub has to be empty. The
doors have to be shut which effectively means that last orders of food and drinks is somewhere around 8:30 or 9:00.
[09:10:24]
STEWART: Now, the trade body that represents that sector, U.K. Hospitality says that for some venues, that will halve revenue. This is for a sector
that's really struggling for survival already.
Foot fall is not the same anywhere in the U.K., not least in cities like London and there are already 100,000 jobs in that sector that have gone;
900,000 are still on the line.
Every day, Julia, we get news of more redundancies. Today, Whitbread, the owner of U.K.'s biggest hotel chain premier saying they're looking to cut
up to 6,000 jobs, and it just keeps continuing. This is lockdown light. This is only a few measures, but of course, this will be really bad news
for all sorts of businesses across the sector of hospitality -- Julia.
CHATTERLEY: Yes, it's a challenge between the health risks here and trying to keep the economy going.
Anna, very quickly, because I'm watching people behind you, walking past, and no one is wearing masks. What's the deal with masks in the U.K.?
STEWART: Yes, this was also an additional announcement today. Currently, in the U.K., you have to wear a face covering, it doesn't have to be a
surgical mask, but you have to wear one on public transport. You have to wear when you're inside a shop, inside a bank, in many different settings.
You do not have to wear one, however, if you're walking into a restaurant for sit-down service. Staff in shops currently do not have to wear them.
That is set to change from Thursday as well.
One of the new measures, staff in shops will have to wear them, and people walking around a restaurant or around a cafe will have to put a face
covering on when they are not sat down at the table, which is very similar to other European nations.
I managed to get away to Portugal over the summer, and it was a bit of a shock, actually, as to how much stricter face covering rules are elsewhere.
Let's see if it can be ratcheted up. They are going to increase the fine from 100 pounds to 200 pounds for people that do flout that rule -- Julia.
CHATTERLEY: Yes, and doing some due diligence there around Europe for us as well. Anna Stewart, thank you so much for that.
All right, here are some stories making headlines elsewhere around the world. A Chinese billionaire has been given 18 years in prison for a
variety of corruption charges, but many suspect the real reason for the conviction is that he spoke out against Beijing's handling of the
coronavirus.
CNN's Steven Jiang has been following the story.
(BEGIN VIDEOTAPE)
STEVEN JIANG, CNN SENIOR BUREAU PRODUCER: Julia, it seems the authorities have finally silenced this long-time critic of the government with the
court saying that Ren Zhiqiang has not only confessed to all of his crimes, but also decided not to appeal.
Now, on paper, all of his crimes are corruption-related, but the authorities here have long used this kind of charges to go after their
critics, and Mr. Ren who was born into an elite family of the ruling party and was known to have close ties to senior officials, wrote in that
scathing article that a Chinese leader without naming him, was a power hungry clown who put the Communist Party's interests above people's safety.
He also lashed out at the party's crackdown on press freedom as well as its intolerance of any dissent. Now, his conviction and harsh sentence have
been viewed by many here as a clear and chilling message from the party to Chinese elite that any public criticism or defiance of Mr. Xi is simply not
going to be tolerated -- Julia.
(END VIDEOTAPE)
CHATTERLEY: Steven Jiang there.
Now, U.S. Senator Lindsey Graham says Republicans have enough votes to confirm a new judge to the Supreme Court. In the past, Graham has
repeatedly said that filling a Supreme Court seat in an election year is wrong. Graham is the Chair of the important Senate Judiciary Committee.
All right, still to come here on FIRST MOVE, India's Serum Institute, the world's biggest manufacturer of vaccines by dose is a key player in the
race for a COVID vaccine. We're joined by its CEO.
And carne asada back on the menu at Chipotle. The CEO joins us to discuss new dishes, sustainability, and digital sales. Stay with us.
(COMMERCIAL BREAK)
[09:17:15]
CHATTERLEY: Welcome back to FIRST MOVE, live from New York where the tech stocks are trying to bounce after four days of losses. September, as we
discussed yesterday, traditionally a tough month for Wall Street, and this one is on track, in fact, to be the weakest since 2002.
The S&P suffering its worst stretch, in fact, since February. The NASDAQ still near that 10 percent correction level, so some 10 percent from recent
highs. Apple shares set to move higher for a second straight session. Meanwhile, they fell into bear market territory last week so that's 20
percent from the highs.
Tesla also under pressure this morning. Elon Musk trying to temper expectations for his Battery Day presentation later. He said innovations
unveiled today will take a while to show up in all of Tesla's cars. That's called Elon Musk time, I believe.
All right, let's move on. The global race for a coronavirus vaccine continues with nine candidates now currently in Phase 3 trials. India's
Serum Institute, the world's largest vaccine manufacturer, by doses, is involved in one of those projects. The company is working with AstraZeneca
to manufacture and distribute its potential vaccine.
The SII also has partnerships with U.S. biotechs Novavax and Codagenix and it is developing two vaccine candidates of its own. They are very busy.
Joining us now, the Serum Institute CEO, Adar Poonawalla. Fantastic, sir, to have you on the show once again. I believe that the last time we spoke,
outside of the nations where are manufacture it, India, of course, and the scientific vaccine community, people didn't understand how big you were,
and now that's changed. What's that meant for you and for the institute?
ADAR POONAWALLA, CEO, SERUM INSTITUTE OF INDIA: Nice to speak with you again, Julia. You know, between the time we spoke last and now, like you
mentioned, a lot of people have heard about us and our capabilities and our vital role in this process of scaling up manufacturing and because we're --
we've always been a privately listed company, you know, not a lot of people had heard about us.
As a result, you know, the amount of overwhelming encouragement and partnerships that have been coming our way has really been tremendous, and
as a result, you know, we've made so many partnerships like you've mentioned, and we've got five candidates now with the Novavax and
AstraZeneca products leading the way and we're gearing up to make hundreds of millions of doses and as a result of the Serum Institute being known
worldwide, now globally, we're even going for a cap raise of about $850 million to help us fund the CapEx and OpEx to produce more than a billion
doses now because we're going to have different vaccine candidates coming about.
[09:20:14]
CHATTERLEY: Wow, I mean, that's huge news, and that's fantastic news if you're looking at potentially raising money. Can you tell us anything about
who you're potentially talking to? Because we're all involved in this battle, every nation in the world. Who are you talking to potentially raise
money from?
POONAWALLA: Well, we've got some Wall Street funds like TPG. We've got some in the Middle East -- PIF, ADQ from Abu Dhabi as well, and you've got the
usual suspects, KKR, Blackstone, and so many other great funds who have evinced an interest, but I think we're going to have multiple different
rounds of capital raises.
Initially, what I'm trying to just make sure is that I have enough for the facility itself and the huge OpEx, which is the glass vials, the raw
materials, the chemicals, to have in place and that's about $850 million and as you know, the Bill and Melinda Gates Foundation also provided a lot
of advanced vaccine manufacturing at risk funding, you know, which was about $150 million a couple of weeks ago, so that's helped a lot in moving
things along as well.
CHATTERLEY: Yes. It's fantastic. And you lay out there the challenges of getting vaccines from the point of research and approval simply to
administer them to patients and it's a logistical, monumental task that we're talking about.
You made some recent comments suggesting that it could take to as early as 2024 before we get everyone in the world vaccinated. Why is it going to
take that long, even with the challenges? What more do you need?
POONAWALLA: So, I think there's nothing more one can do because if you put things in perspective and become a little realistic, if you want to
vaccinate everyone on the planet, and most probably with two shots, because most of these vaccines will need two doses, first, we're talking about
developing a vaccine that is safe and efficacious, which as you know, is ongoing.
Then it's scaling up the manufacturing, which we're doing and a few other great companies in the U.S. and everywhere else are doing as well, and in
China.
Then, of course, we're talking about having a huge budget, probably, I don't know, if we're averaging $10.00, $15.00 a vaccine, of course, ours is
much lower in price: $3.00 to $5.00, we're talking about billions of dollars needed to fund the vaccine procurement and I haven't seen anywhere
close to the kind of fund gathering required by these nations and you know, you should probably talk to Seth Berkley and Richard Hatchett, who are
managing COVAX, to get enough funding there, to be able to buy these vaccines. And then of course, administering vaccines in all of these
different complex geographies and countries.
So realistically speaking, even if you have a billion doses, I'll give you a simple example. Take India. We have a population of 1.4 billion. I've
been talking to the government very closely, as you can imagine, and by July-August, next year, even if we were to produce 400 million doses, you
know, they're still going to struggle to vaccinate everyone using those doses.
So, that's why I said, realistically, for the whole world, for everyone on this planet or at least 90 percent to get it, it's going to be at least
2024.
CHATTERLEY: Okay, you said so much in there that I want to touch upon. You obviously have made a choice. You're a private company. Your father started
this because he wanted to get vaccines to the masses in developing nations.
So, you're making a choice that you can create this vaccine and give this vaccine for $3.00 to $5.00. Does it make sense that the big pharmaceutical
companies, for all the investment in R&D that they charge, you're suggesting, $15.00 here? Can they take less of a cut and put more of that
money into developing more?
POONAWALLA: Well, it's not fair for me to fully sort of answer on their behalf, but this is my personal view. If you've got listed investors and
others to be accountable to, you need to -- you can't leave money on the table like I have chosen to do and price my vaccines substantially lower,
you know, to just make a small profit.
I mean, these companies in the west, in the U.S., have spent hundreds of millions of dollars, even billions of dollars, developing these vaccines.
Can they price it a bit lower? Perhaps. But -- and you know, don't forget, their costs also are much higher than ours, perhaps double, so there will
have to be some kind of give and take where maybe they don't charge $20.00, maybe they come down a little bit.
They'll have to decide because the deals that I have been hearing about in the news have been with Pfizer, Sanofi, GSK, you know, with BARDA, they've
been doing a hundred million dose deals at $2 billion.
So, that roughly works out to $20.00 a shot. And you know, if we're talking about two shots, then you double that figure. So, maybe something between
what we're at and between what they're at would probably be a fair price, you know, if we want the whole world to be able to afford it because a lot
of these other countries outside of the U.S. will not be able to afford the vaccines.
[09:25:33]
CHATTERLEY: COVAX -- which is where COVAX comes in, and you mentioned it, a collection of money, a pool of money, and I think we've got about 70
percent of the world's population now joining, but we don't have the United States. They didn't join. We don't have China. They didn't join.
What's your message to those nations about joining in order to make sure that developing nations get access to this vaccine quicker than they would
have in the past?
POONAWALLA: Well, I think it's just crazy if these nations don't join because, you know, if you don't support all these other nations, if the
richer nations don't support the poorer nations, after all we're a global economy and if these other countries don't open up, if the fear doesn't go
away, and if they can't get access to a vaccine, it's not just the ethical issue here that we're talking about.
It's opening up their economies that we're all dependent on, imports and on exports and trade, so you know, if we don't all come together for this
common cause, then I think it's just crazy. It doesn't make --
CHATTERLEY: But the ethics -- I agree with you, but I do think the ethics matter if people -- frontline medical workers, doctors in Africa, don't get
a vaccine when low-risk people in wealthier nations do. It is sort of is a bit heartbreaking, but the ethics do matter.
I want to ask you quickly --
POONAWALLA: What I meant was that the ethics, of course, matter. In addition to that, you know, the economic sort of view also adds to it so
that's why it's even more crazy that we're not together.
CHATTERLEY: I know. We are in complete agreement. I want to ask you about potentially working with China on their vaccine and Russia. There's been
some debate within the scientific community that there's simply not enough data. How does the Serum Institute of India feel about working with those
two nations on their vaccines?
POONAWALLA: Well, we've kept an open mind. In fact, we've been talking to the Russians. And at the moment, what we've said is that until we see and
get more data, we probably would not want to take things forward and, you know, they've already announced a few other partnerships so I think they're
globally trying to find as many people to make Sputnik V and at the moment, because we have five of our own vaccines, I think partnering with a sixth
one might be too much anyway.
So we're going to just wait for a few months, see how the data comes out, and then take a call. I know there's been a lot of apprehension, and I
think now, finally, countries like Russia, which never used, you know, these sort of things to build relations with other countries is actually
doing that, which is very nice to see, and I hope it all works out.
CHATTERLEY: I also want to ask you about the balance of ethics, economics, and developing a vaccine with respect to your own candidates. The point
that you made about the cost of two doses versus just giving one dose, is it better, perhaps, to get a more potent, efficacious vaccine and take a
little bit more time that you only give one dose, too, that actually ends up working better and perhaps is economically more viable?
POONAWALLA: That's absolutely right. In fact, that's exactly what we're doing with the two live attenuated vaccine candidates which will be
available in two years from now. But you know, the world is just not ready to wait for two years. They need something quickly. And that's exactly why
we partnered with AstraZeneca, Novavax, and others who are way ahead in that race.
And when our live attenuated vaccine comes about in two years or three years' time, maximum, I would say, you know, maybe the world, if it's not
able to afford two shots might prefer to take a one-dose vaccine. So that's exactly the two-pronged strategy that we're taking, you know, to address
the immediate needs now and then a better vaccine or supposedly better vaccine comes about in two years' time with one shot. So that's exactly
what we're trying to do.
CHATTERLEY: Yes, absolutely, and perhaps that will have, among the skeptics, a higher degree of trust, too.
POONAWALLA: Well, it's not just that. Right now, the vaccines and the regulators, as you may have been hearing are reducing the benchmark and
saying even if a vaccine is around 50 percent effective, because it's a pandemic, that's okay, and I agree with them to a certain extent, because
it will still save a lot of lives. You know, it's better than having nothing.
Also, at the same time, waiting for two years for a better vaccine is probably not the best strategy. One should keep working at that and on that
whilst we have these earlier vaccines which are also proving to be pretty good, I must say, I've seen the data and they don't look too bad. So that's
where we are.
[09:30:16]
CHATTERLEY: Thank you for your work. Thank you for the team's work, too. Great to chat with you, as always, and hear your progress. Adar Poonawalla,
CEO of the Serum Institute of India. Sir, great with chat to you once again.
All right. The market opens next. Stay with us.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to FIRST MOVE. U.S. stock markets are open for business this Tuesday. Tech: the tech sector, trying to move higher after
some four days of losses. We are higher by the way three quarters of one percent at this moment. We've also got Fed Chair Jay Powell who has the
potential to perhaps give some underpinning to the markets today when he testifies before Congress.
He is going to remind lawmakers that the path of the U.S. economy, I think, remains highly uncertain. He is also going to warn businesses may need
further fiscal support, too, further fiscal support.
In the meantime, new health measures unveiled for England today are a stark reminder that COVID-19 is still very much present. U.K. Prime Minister
Boris Johnson's new restrictions on businesses could last as long as six months as COVID cases rise there.
And also a reminder, we're waiting to hear a prerecorded video message from President Trump to the United Nations General Assembly. That likely coming
in the next hour and we will bring that to you. You're looking at live pictures there from the U.N., though it is entirely virtual, of course,
this time around.
He says, the President, that it will include a strong message to China. So we shall see what he has to say about that.
In the meantime, Chipotle's premium beef product is back on the menu. The takeout's favorite, carne asada, was a hit when it was introduced in 2019.
The dish was removed early this year because Chipotle couldn't source beef that met its standards. The steak dish will be available across many of
their 2,600 restaurants Chipotle operates. The fast casual chain is in five countries and employs some 91,000 workers.
Joining us now to discuss is Brian Niccol, he is the CEO of Chipotle. Brian, fantastic to have you on the show.
[09:35:26]
CHATTERLEY: I believe this was the fastest-selling protein launch in history for the company. It was there and then it was gone really quickly.
Sustainability, sourcing the right product was a tough challenge. Talk us through it and where you are today.
BRIAN NICCOL, CEO, CHIPOTLE: Yes, that's right. Thanks for having me, and we're obviously really excited to be bringing back carne asada. You hit the
nail on the head. We have been working hard to create a supply chain that meets all of our food with integrity standards, and specifically, when it
comes to beef, really only five percent of the industry hits our standards in regard to how it's raised.
So, you know, it made it difficult for us to get the supply in place, but luckily, we brought on some new farmers, some new partners, and we're able
to bring it back and we are going to be doing it again as a limited time and we're happy to say, we are also including Canada in this and also for
the first time, we'll be putting it in our restaurants in France. So we'll have the United States, Canada, and France, all moving forward with carne
asada, which is really just a terrific eating experience.
CHATTERLEY: I have to say, I didn't try it when it was out the first time, but I'll give it a go this time around. You gave some astonishing statistic
there. Just five percent of beef that's reared in the United States actually meets your standards. I mean, just in terms of industrywide, how
high are your standards then because you're talking no hormones, no antibiotics? Obviously, it is cattle raised responsibly as well, which is a
keyword. Are your standards that tough?
NICCOL: Well, you know, the thing that knocks out a lot of the beef is, unfortunately, the antibodies, so you know, we worked hard to partner with
farmers and cattle ranchers so that as they, you know, grow and raise the cattle, we do it in a way that we believe results in the right treatment of
the animal, that ultimately results in, we think, the best for our customers, both from a nutritious standpoint and doing the right thing for
the planet and the animal.
CHATTERLEY: Yes, I mean, farm to food has had a real struggle this year with COVID-19. I read your Sustainability Report from 2019, and you said 56
percent, approximately, of farms simply aren't profitable, and then you add in the challenges of the demand shift that happened overnight with COVID,
less supply for restaurants, more for supply for grocery stores, because people were eating at home.
I mean, this year has been a huge challenge, particularly for farmers in the United States.
NICCOL: Yes, it really has, and you know, as a result, we've tried to step up our efforts in a big way. You know, we just launched these Tractor
Beverages where every beverage that we sell, five percent of that goes back to farmers and then we have a program called Luminaries, where we put in
seed grants to help farmers get started, both young farmers and farmers that are making the switch to doing regenerative farming and then obviously
our supply chain.
You know, we're one of the few companies with the scale that we have with the food integrity principles and standards that we follow, so partnering
with dairy farmers, cattle ranchers, traditional farmers, anything we can do to move the supply chain in the right direction, and then support
farmers to know that they will have a long-term contract.
It is a big deal so that they can plant the fields and raise the animals, you know, in a way that we believe is responsible and then they know that
they have got a buyer on the other end.
So, it's been a big deal. Luckily, I think, the country realizes farmers are hugely important and people continue to rally around supporting them
and I think this is how people want to eat, and people would love to see farmers supported in the right way.
CHATTERLEY: Yes, and an intrinsic part of the message, I think, that you sell as a brand. Let's talk about what's happened since COVID hit because I
know your digital sales have soared. You're predicting, what? $2.4 billion worth of digital orders this year, and that was $1 billion last year. I
mean, that's incredible growth. Do you think that's sustainable?
NICCOL: You know, we do. We invested in the digital transformation of our business back in 2018 and 2019 because we heard loud and clear from both
consumers that are young and old that they wanted more access to Chipotle. And specifically, our younger consumers really wanted to have that digital
access.
And so, you know, what we've seen happen is by giving them access through the app, access in the web, now providing access with delivery and then the
convenience that these platforms provide, where you order ahead, walk in, it's on the shelf, ready to go, you walk out, people just love it.
[09:40:08]
NICCOL: And you know, one of the other things that's astonishing to go with our pace of change in digital is the number of people that have joined our
rewards program which is also a key piece of our digital system. We now have over 16 million people in our rewards program, and at the beginning of
the year, we had roughly eight million.
So, you know -- and what we've seen is people stay engaged in this rewards system and they stay engaged in the digital system and even as we've
started to open some dining rooms, we're continuing to hang on to about 70 percent, 80 percent of the digital gains that we've had over the last
couple of months.
So, we think it's sticky. We believe it's the future of how people will want to access restaurants in partnership. We are still having the ability
to come into our restaurants when the time comes that we can open those dining rooms all the way back to full capacity.
CHATTERLEY: You know, it is interesting, Brian, we were just having a conversation about vaccines here. How do you feel about vaccines and
particularly for your workers, and I know you're hiring several thousand more as a result of expanding drive-thru capacity too. Will you have a
conversation with your workers about getting a vaccine? Will it be mandatory?
NICCOL: Yes, I mean, actually, we were just talking about this on our -- we were having an executive team meeting yesterday. One of the things we made
clear is we want everybody to have access to the vaccine, and along those lines, we actually are in the process of making sure that everybody has
access to a flu shot as well for this upcoming flu season.
So, we're working to make sure that everybody has access and we will help ensure that the flu shots get paid for all of our employees so that money
doesn't become the barrier to getting a flu shot.
On the vaccine front, obviously, we want to make it accessible. Our belief right now is it is not our company to mandate it on our employees. I would
much rather have them take ownership for their personal health and wellbeing and make that decision, but I want them, if in the event they're
in a high-risk group, they want to get the vaccine, I want to help them in any way possible for them to get access to the vaccine and make it an
affordable option for them to get vaccinated if they want to do that.
CHATTERLEY: Is that a responsibility that you think all big companies should be taking?
NICCOL: Look, I think for your employees, one of the things I think we've learned over time is, a corporation is only as good as the employees you're
able to attract and retain, and I believe, you know, compensation, the way that your culture is created, and the things that you do for your employees
in the times of, you know, unique situations is what ultimately creates the scenario that people truly believe in their organization, truly believe in
the culture and for us, it's a big priority to invest in our people.
I want all 91,000 of our employees to be passionate about Chipotle, both our purpose, which, you know, is all around food integrity and cultivating
a better world. This is an opportunity for us to demonstrate how we're going to invest in our people in these challenging times.
So, for us, it's a big priority. For others, they need to make that decision, but for us, it's an easy decision. It's consistent with who we
are and the type of culture we want to be.
CHATTERLEY: Yes. An important message. Brian, great to have you with us and just a reminder in Canada, or in France, and in the United States, the beef
is back. We got the message. Great to chat with you.
NICCOL: Worth your try, Julia. Thanks again.
CHATTERLEY: Come back soon. Yes, I will keep you posted. Brian, great to chat with you, the CEO of Chipotle there.
All right, after the break, it's Tesla Battery Day, but will Elon Musk's message fall flat with investors? Stay with us. That's next.
(COMMERCIAL BREAK)
[09:46:46]
CHATTERLEY: Welcome back to FIRST MOVE. Tesla CEO, Elon Musk holding a special event to showcase battery technology later on. He is expected to
say that eventually they'll beat combustion engines in cost and convenience. Paul La Monica joins me now with more, emphasis on the word
eventually there, Paul. Elon Musk tweeting last night that they're coming, but they could be a while coming.
PAUL LA MONICA, CNN BUSINESS REPORTER: Exactly, Julia. He said in a series of tweets they're really not going to be able to ramp up production of
these batteries on a mass scale until 2022, so with that in mind, you still have Tesla needing to rely on third parties like Panasonic, LG, and others
for these batteries. The hope is that eventually the batteries can have a longer life.
He is hoping that -- he is expected to tout maybe that you could have a battery that can last up to a million miles, which is, you know, more than
double than the current length, and that also, if you can bring down those costs, then maybe Model S, Model X, Model 3, Model Y, all of these
expensive Tesla cars may become more competitive with gas guzzlers that obviously don't cost as much as Tesla's pricey electric vehicles.
CHATTERLEY: Yes, and in the meantime, they're going to increase purchases of battery technology from Panasonic and the likes of LG. We shall see what
he says later and whether there's disappointment because I want to talk about Nikola, parting, for the Executive Chairman, is sweet sorrow but it's
sweetened if you can walk away with $3 billion plus.
LA MONICA: Yes, there's obviously a lot of controversy about the potential severance for Trevor Milton because of all the concerns about, just, how
legitimate this company's technology is.
Keep in mind, Milton owns about 35 percent of Nikola's stock, so I think the key thing that investors have to watch is are there going to be any
stock sales from Milton as he is, you know, kind of stepping back a little bit from the company? That would obviously be very suspicious, and I don't
think investors would be thrilled to see that, and it would be vindication, probably, for Hindenburg and some of the other short sellers that are
targeting Nikola right now.
CHATTERLEY: Yes. He has got to be very careful, hasn't he, selling stock at this moment. And you know, I make the point of $3 billion, that's the worth
now. It's going to be worth something in order to actually crystallize those gains, so we'll see how he plays it. Paul La Monica --
LA MONICA: It used to be a worth a lot --
CHATTERLEY: Paul, do you want to say something quickly?
LA MONICA: I was just going to say, it used to be worth a lot more, of course.
CHATTERLEY: Oh, yes. Yes. Tithing, they say, is everything, yes. Paul La Monica, thank you. We're back after this.
(COMMERCIAL BREAK)
[09:51:38]
CHATTERLEY: Welcome back to the show. FIRST MOVE continues the focus on improving sustainability this week with a look at Poland. The nation's
heavy reliance on coal is a major obstacle when it comes to carbon emission reduction and transitioning to cleaner fuel. It could have another very
real cost. CNN's Phil Black has more.
(BEGIN VIDEOTAPE)
PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT (voice over): The rough trek turns a corner and we descend into a vast, unnatural space. A monument to
humans' ability to change the Earth. It's a sight sure to make climate activists despair: Poland's Turow Coal Mine and Power Station sitting
together, locked in a high-carbon, long-term relationship that's not ending soon.
Here at the pit's face, giant bucket wheel digging machines gouge the Earth away. Lignite or brown coal is sorted from waste and swept by conveyor
belts directly into the belly of the power station, where it burns, generating eight percent of Poland's electricity.
BLACK (on camera): What they pull from the Earth here has provided energy for the Polish people, fueled their economy for more than 70 years, but
it's also a source of security, of national pride, and cultural identity. Whole families and communities have been built on this, and they will not
give it up easily.
BLACK (voice over): Five thousand plus people are directly employed in the mine and power station. Many more live around them. The whole region's
economy feeds off them.
Jamash and Marta Kukuch (ph) have worked in the mine for decades. So did his parents and his grandfather before them.
They tell me they're proud miners who know action must be taken to slow down global warming, but not at the expense of everyone who relies on the
mine. That feeling runs deep here, even with the members of the 69th Yachting Scouts Group. Like many teenagers around the world, they say they
love nature and worry about the Earth's future. They're also proud to say they recently collected signatures for a petition to save the Turow Coal
Mine.
They don't see a contradiction. Emilia Tukatesket (ph) says, supporting the mine doesn't mean we don't support the environment.
Turow has permission to keep going for another six years. The state-owned operators don't want to close until 2044.
(BEGIN VIDEO CLIP)
SANDRA APANASIONEK, SPOKESWOMAN, PGE GROUP: We go definitely this way. But we have to do it, you know, slowly. Just slowly, not in one year, not in
two years. We need a little bit more time for it.
(END VIDEO CLIP)
BLACK (voice over): That logic sustains Poland's dirty fuel habit. Around 75 percent of the country's energy comes from coal. There is gradual
investment in renewables, but the government says coal power is here to stay until at least 2050. And while energy analysts say COVID-19 was an
opportunity to close loss-making coal mines, Poland, instead, successfully lobbied against linking the release of the European Union's pandemic
recovery funds to green policies.
[09:55:03]
BLACK (voice over): This all matters because independent analysis by scientists at Climate Action Tracker shows the E.U. is already a long way
behind achieving its emissions targets under the Paris Agreement, the global accord thrashed out to avoid the worst impacts of climate change.
Like many countries, Poland faces difficult decisions. Breaking coal dependence will inevitably hurt people and change lives. But governments
transitioning too slowly risk allowing far greater suffering across our warming planet.
Phil Black, CNN in Southwestern Poland.
(END VIDEOTAPE)
CHATTERLEY: Yes, those difficult decisions being made all over the world, and not being made in certain cases, too.
All right, that's it for the show. We are counting down to President Trump's speech, of course, at the U.N. G.A. Expected now in the next hour.
But that's it for the show. I'm Julia Chatterley. Stay safe and we'll see you tomorrow.
(COMMERCIAL BREAK)
[10:00:00]
END
