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First Move with Julia Chatterley
British Law Makers Posed To Vote On A Trade Deal With The E.U.; The U.K. Is The First To Approve The AstraZeneca Vaccine For Emergency Use; Health Secretary Matt Hancock Says The Pandemic Essentially Should Be Over In Spring; Emergency Crews In Croatia Are Searching For Survivors After The Powerful Earthquake Hit The Center Of The Country On Tuesday; Dr. Fauci Came Out And Saide Things Are Going To Get Much Worse From The Traveling On The Holidays
Aired December 30, 2020 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:00]
ZAIN ASHER, CNN FIRST MOVE ANCHOR: Coming to you live from New York, I am Zain Asher and this is my colleague Julia Chatterley. This is "First News"
and here is your need to know. Post Brexit vote; British law makers posed to vote on a trade deal with the E.U. and vaccine victory. The U.K. is the
first to approve the AstraZeneca drug. And McConnell's moves Senate leader balks (ph) highest stimulus payments for now. It is Wednesday, my friends,
let's make a move.
Welcome to "First Move" so good to have you with us on this next to last trading day of the year, New Year's Eve eve. U.S. stocks pulled back from
all-time highs on Tuesday but they could hit fresh records in early trading today amidst some positive - very positive news on vaccines. The U.K. has
just approved the Oxford AstraZeneca shot for emergency use; the second COVID vaccine to get the green light there. Fears that the U.S. vaccine
rollout is going slower than plan did hurt sentiment (ph) yesterday as well. And to Tuesday's tally of 3,700 Americans who have died from COVID-19
was actually the highest ever in just one day.
Shares have turned lower in Europe as U.K. Parliament gets set to vote on the post Brexit trade agreement with E.U. Asia finished next with Japanese
shares pulling back from 30 year highs. Chinese stocks rallied 1 percent. Meantime, Beijing and the E.U. have reached an agreement on their long
awaited investment partnership. The deal, which has been years in the making, will make it easier for European firms to access some Chinese
markets. Chinese President XI Jinping says it will help the global economy recovery from the COVID crisis too.
Now let's get right to the drivers for you. In this hour the U.K. Parliament, in about half an hour from now, is expected to approve the
post-Brexit trade deal with the European Union. Take a look here, you're looking at live pictures of debate inside the House of Commons ahead of the
vote in half an hour's time. I don't believe we have those live pictures right now. But this is certainly a significant day in politics with Britain
also announcing a Brexit - a breakthrough rather on vaccines.
I want to go straight now to Salma Abdelaziz who's following both stories for us. So, Salma, this vote in terms of the House of Commons is happening
remotely, it is an emergency session. But because of the virus obviously it's happening virtually this time around. But after four years of endless
debate, of Britain basically being in limbo, two general elections, two Prime Ministers in terms of Theresa May and Boris Johnson; Boris Johnson
did promise that he was going to get Brexit done. And he's doing just that.
SALMA ABDELAZIZ, CNN CORRESPONDENT: That's right, Zain. And in some ways you're watching this debate play out in Parliament kind of for the final
time. It's being put to bed, it's being put to rest. This debate is behind us. And that's what you heard from both sides; both the leader of the
Opposition Labor Party and Prime Minister Boris Johnson, who opened this five hour debate by saying, of course, that this is a victory. That this
deal is good for Britain, good for business, good for the economy of the country that would allow this population to claim back its sovereignty.
Claim back its national destiny.
And not only that; he argued it's good for the E.U. as well. He said ultimately Britain has been a reluctant member of the club. And a good
friend, a best friend across the channel is better than a reluctant member of the E.U. So really touting this deal as a victory; pushing of course his
party to vote for it, pushing everyone to vote for it. Now on terms of the Opposition Labor Party Leader Keir Starmer, of course he said he doesn't
like this deal but he's going to vote for it anyway because the only other option is no deal.
But, again, watching this remain, leave, stay debate play out for the first time and now entering this next phase of this deal which will go into place
of course on the 31st and turning this new friendship. So what's in the deal? It's a no tariffs, no quoted deal; that means that you can trade
without taxes and there is no limit on the amount of goods. There will still be cooperation on issues like security, climate change. But of course
the key difference now is there will be borders. U.K. citizens can longer just travel to the E.U. They must have visas. There's going to be time
limits, there's going to be stamps. There's a lot for businesses to get their minds around, as well.
Remember this deal just went in Christmas time, so they only had about week to prepare for this. So a lot happening here. But the key thing to remember
is the end of one relationship and the beginning of another that could completely transform Britain's economy and it's relationship with its most
important partners.
[09:05:00]
ABDELAZIZ: Zain.
AHSER: Yes, you mentioned Keir Starmer, the Labor Party leader coming out and saying; listen I don't love this deal, it's relatively thin but what is
the alternative. What is the alternative? The only other alternative there is is crashing out of the E.U. without a deal. What's significant though is
that Boris Johnson actually did manage to do something that Theresa May failed at; which is to get those hardliners in the conservative party on-
board with his deal. These are the same people, by the way Salma, who made Theresa May's life extraordinarily difficult. How did he manage that? What
was it about his particular deal that got that group on-board? Because that made all the difference here.
ABDELAZIZ: It's been a very dramatic four and a half years watching this play out, Zain, as you know. And ultimately the debate became more and more
and more to the right, right. You had people who were sort of in the middle trying to bridge the divide like Prime Minister Theresa May, who was trying
to find a deal that could make all sides happy. And ultimately, as you said, changing to all these administrations, changing through leadership;
you ended up with people who are probably the most hard lined Brexiteers (ph) and that's why you heard the Opposition Labor Leader, Keir Starmer,
saying that this deal is thin.
But that is - these are the very people who led this movement, who said we need to leave the E.U., who said Britain is better outside the E.U. and
ultimately they are the ones bringing this deal, delivering on it. In some ways it was matter of time, it was matter of this had to be done, there
were deadlines that need to be made. But it was also just in a way about distilling down this argument to the most hard-line Brexiteers (ph) when
they took control, when they took government. That debate, that negotiation with the E.U. changed and now we have the deal that we do.
And as you said, this debate was ultimately in or out. How it plays out, how it affects regular people here, how it impacts a family or a business;
that's yet to be seen, Zain.
ASHER: And we are looking at a, I believe, live pictures inside the House of Commons which is extraordinarily thin. Not many people there. Some M.P.s
actually choosing to come in and cast their votes in-person. But the vast majority actually are going to be casting their vote remotely. In about 20
or so minutes from now we will hear the Speaker of the House of Commons, Lindsay Hoyle, come out and tell us the results of this vote. The vote is
expected to pass quite significantly.
I do want to turn now to some other big news, though Salma, out of the U.K. and that is of course the approval of the AstraZeneca vaccine. How does
this change the game for the U.K.? When you look at some of the logistical challenges with the Pfizer vaccine in terms of the temperature it needs to
be stored at, the cost, that sort of thing. How does actually getting the AstraZeneca vaccine out into the arms of ordinary British citizens; how
does that change the game for Britain given what that country is dealing with right now with this second strain?
ABDELAZIZ: Well, Zain, if you ask the House Secretary of this country, Matt Hancock, he'll tell you this changes everything. He'll tell you this will
end the pandemic sooner. He'll tell you this will make Britain safer. He'll say that now we have enough vaccines to vaccinate the entire population and
that hopefully by the spring or sometime in the middle of next year that could happen.
So it's a massive deal, it's a massive change. And not just for people here in the U.K. Of course this was a vaccine that was developed and invented
and created right here in the U.K. at Oxford (inaudible) a lot of national pride around it. But it's (inaudible) globally because as you said,
(inaudible).
AHSER: All right, OK, it looks as though we're having some technical difficulties there with Salma's microphone. All right, let's actually talk
more about the AstraZeneca vaccine, the Oxford AstraZeneca vaccine that's been approved in the U.K. with Phil Black. So, Phil, we were talking there
about some of the benefits of the AstraZeneca vaccine compared to Pfizer when it comes to storage and temperatures that it needs to be stored at.
But initially there were some issues with this vaccine because the effectiveness was a bit hazy at the very beginning.
It was thought to be only 60 percent effective compared to Pfizer's 90 percent effectiveness. That then sort of seemed to change if you sort of
changed the dosage that you give people. Are they now confident that with this dosage they're recommending that it will live up to the effectiveness
of both Pfizer and Moderna?
PHIL BLACK, CNN CORRESPONDENT: What they are confident, Zain, I guess is that's going to make it a significant difference and provide significant
protection. What they can't say with certainty yet; because of some of factors you've touched on there, is what the ultimate effectiveness is. And
what the ideal dose is. And that's because the trials; well they threw up some head scratching results as a result of a mistake that was made over
the course of the trials. At one point a relatively small number of the volunteers received a dose that was less than it was supposed to be.
[09:10:00]
A half dose; it's described as. They followed these people anyway and what they found is that these people who received half dose followed by a full
dose well their ultimate level of protection seemed to be higher than the bulk of the trial group, which received two full doses.
And so, that's why you've got a series of different statistics from Oxford University and AtraZenaca in terms of describing what its efficacy is. So,
that half dose group, around 2,000 people of more than that, they got 90 percent protection. The bulk of the group though, which received two full
doses and this is the dose regimen that's going to be rolled out across the U.K., you're right, that was 62 percent.
I mean, 62 percent of people did not develop symptomatic COVID-19 infection two weeks after the second dose. But perhaps more importantly than that
figure, they say no one in the trial group developed a significant or severe infection, no one required hospital treatment.
So, that level of protection alone would be hugely significant to this country, to any county's efforts towards dealing with the virus and would
bring about considerable, I guess you'd have to say, ease on the pressure that this country's health system is under at thee moment Zain.
ASHER: And that was going to be my next question, I mean when you think about what's happening there in the U.K., talk of more lockdowns, talk of
more tier four areas, how much -- how -- what significant -- what sort of portion of the population would need to be vaccinated with either Pfizer or
the AstraZeneca vaccine in order for life to go back to normal, in order for some of these restrictions in parts of the southeast to be lifted?
BLACK: Yes, I think the scientific view on at what point immunity reaches a tipping point, if you like, where the country could return to something
like normal is, well there's some connection (ph) over this, but what they are looking for here is the maximum possible coverage, in excess of 80
percent of the population ideally.
And what he government here now says is that with the authorization for this vaccine and the decision to roll out and prioritize first dose of this
vaccine, it means that you're going to get pretty substantial coverage across the population relatively quickly and it has led the government
today to begin making what seemed like extraordinarily positive predictions.
The Health Secretary Matt Hancock says that by spring essentially this should all be over. The coronavirus should be behind everyone in the U.K.,
which as I say, is an extraordinary idea, but that's what they're talking about, that's what they believe the capability of this vaccine is.
And in particular, maximizing that potential through focusing on getting the first shot to many -- as many people as possible to try and build some
level across the community, across a broad section of the population instead of trying to get two doses to people. That's a key shift in
tactics the government has announced today along with the authorization of this new vaccine.
ASHER: All right, so there is some light at the end of the tunnel in terms of spring there. Phil Black live for us there. Thank you so much.
All right, these are the stories making headlines around the world, the pandemic is killing record numbers of Americans, more than 3,700 deaths
from COVID-19 were reported on Tuesday and with more Americans in hospital, with the virus than every before that number is likely to be exceeded. And
making things worse, the new and more infectious variant of the coronavirus -- virus rather, found in the U.K. has now been discovered in Colorado.
Emergency crews in Croatia are searching for survivors after a powerful earthquake that hit the center of the country on Tuesday. It was the
second quake in two days, at least seven people are know to have died. It's reported the worse hit town of Petrinja has no running water or
electricity. The mayor has put out a call for emergency aid.
And a landmark moment for woman's rights in Argentina, cheers rang through Buenos Aires after Argentina Senate passed a historic bill legalizing
abortion. This has been a divisive issue in a predominantly Roman Catholic country. The bill galvanized activists on both sides of the debate.
After break, as Futures point to a higher open on the second to last day of trading on 2020, John Petrides is here to talk about the market in 2021.
That's next.
[09:14:30]
(COMMERCIAL BREAK)
[09:16:50]
ASHER: Welcome back everybody. You are looking at live pictures of a session of the British House of Commons. The debate for a lot of MPs is
actually happening remotely. That's why you're seeing lawmakers right now in their living rooms. Some MPs did actually make it into the House of
Commons, but most of them will be debating and voting remotely.
They are debating, of course, the post-Brexit bill the government has struck with the E.U. We are expecting a vote in about 10 minutes or so
from now. We'll hear from the Health Secretary as well, possibly announcing new restrictions on movement across the U.K. and discussing the
approval of the Oxford AstraZeneca vaccine as well. Lots of breaking news happening out of the U.K. right now. We'll bring everything to you live as
and when it happens.
Let's take a look at the action happening on Wall Street, where Futures are pointing to a subtly higher open for U.S. stocks, the major averages are
all set to trade near all-time highs again after pulling back from records on Tuesday.
The S&P 500 and Nasdaq and the small-cap Russell 2000 are on track to close out 2020 with double-digit gains. Spectacular comeback after the market
route we saw in the spring. Chalk that up to the unprecedented monetary support from the Federal Reserve and the ongoing fiscal support from
Congress as well.
Bitcoin may also end the year on a high note, the cryptocurrency rose to an all-time high of more than $28,000 earlier today before pulling back a bit.
It's up more than 40 percent so far this month.
John Petrides joins us live now. He is the portfolio manager at Tocqueville Asset Management. John, thank you so much for being with us.
So, when you look back at this year, you know, the Nasdaq up 44 percent -- 44 percent at a time when the entire economy was shutdown. Were people
were unemployed, where people didn't even have enough money for groceries or to pay their bills, people relying on extra money, direct payments from
Congress.
I mean, walk us through that major disconnect and what you expect in terms of that disconnect going into the New Year.
JOHN PETRIDES, TOCQUEVILLE ASSET MANAGEMENT PORTFOLIO MANAGER: Yes, you know, I wrote a commentary that -- that we're working on right now called
the Twilight Zone Market.
And it's basically it goes to, you know, if on New Year's even in 2019 you partied really hard and fell asleep and didn't wake up until one year
later, and the only thing you saw was your portfolio, the first thing you looked at was your financial statements and you saw that, you know, on a
balanced portfolio stocks to bonds you're up, I don't know, 10, 12 percent on a blended basis. You're thinking to yourself, hey you know, it was a
good year, nothing really happened.
And -- and then you -- and then you start going through all the headlines and you're like, wait a minute, what is this COVID thing and you start
reading, you know, all the social unrest and the political divisiveness, and --and I think the moral of the story is, you know, don't trade off of
emotions.
Make -- make sure you're sticking to your long-term financial goals and -- and plans, and -- and make sure that you're position, you know, according
for who you are as an investor because guess what, the block -- you know -- this is 12 years since the Financial Crisis and we've had two black swan
events occur.
So, and they do happen and they're happening more frequently than most people expect. So -- so -- so the idea is to -- to understand who you are
as an investor and make sure you are diversified, because it has truly been an extraordinary year. And if you didn't touch your portfolio, guess what,
you had a -- you had a pretty good year in your financial -- in your assets.
[09:20:00]
ASHER: Yes, it's interesting, because you know we talk a lot about the people that are suffering financial but it's just crazy to think about all
the people that have actually thrived this year. And that is what the market is basically representing. So, yesterday stocks did actually hit
record highs when they thought that there was a chance that Congress would approve those $2,000 direct payments to individuals especially people who
had suffered this year. The idea being that they would go out and spend that money and boost the American economy.
Now when that - when it turned out yesterday that was less likely to happen we saw the markets obviously dip. In the last two days of trading, today
especially, what else does the market have to look forward too in 2020?
PETRIDES: Well, I think - in my opinion the biggest that's - right now we're on light volume. I think most people in the world are exhausted
particularly in the financial world, traders are exhausted and I think in probably early December most people have basically made their bets through
the end of the year. And I think what's pushing the market slightly higher the next thing to look forward to is on Tuesday when we have the Senate
run-off in Georgia. Because if the democrats win both seats then you have a blue state sweep and you know Biden then has the ability to pass through
his corporate tax increase of 28 percent which would be bad for stocks.
So, but what you're seeing is I think there's more confidence that the republicans are going to win at least one of the seats which provides for a
split government and although that may drive us crazy on Main Street because a split government leads to more in fighting and divisiveness from
a market standpoint it's actually the best outcome. Stocks generally do better when government is split because then neither side can pass through
their ultimate agenda.
ASHER: So nothing changes. So you -- it's almost the most - the most certainty you will ever get is if you have a split government because
everything is going to stay the same and nothing's going to change basically?
PETRIDES: Generally speaking from a stock market standpoint, right, that's solely (inaudible) -
(CROSSTALK)
ASHER: Yes.
PETRIDES: -- is it's typically the best outcome.
AHSER: And so just in terms of the health crisis facing this country; Anthony Fauci's come out and said listen things are going to get much, much
worse. Obviously a lot of people have traveled over the holidays, people wanted to see their friends and families, people boarding flights. That
meant that the virus spread more rapidly and now you've got this new variance. So given the fact that in the month of December just under 70,000
Americans have died. Going into the New Year that number could obviously continue to rise; those milestones could continue to be even more grim.
What does that mean for the country economically do you think?
PETRIDES: Well for 2021 I am more bullish on the economy and the stock market; I'll get to that reason for a second. You know I laid forth one
risk to the market and that is if the democrats sweep in Georgia on Tuesday. The second one is clearly what's the acceptance of the vaccine and
how long does it take before we get to a socially - before socially distance economy is a thing of the past.
You know I personally thinking September, October. You have another eight to nine months before I think we all can take a big sigh of relief. The
vaccine is distributed. But if that takes longer and this time next year and we're still in this environment it's going to be a rough year for the
economy and the stock market.
On the other hand, why am I more bullish? In economics it's all about supply and demand. And, Zain, if there's one thing we have an excess supply
of it's cash. By in large, and I'm not talking Main Street I'm talking more on corporate America. The cost to borrow money is zero. Interest rates are
so low.
Look at what's happening in the IPO market. Money market mutual funds are at record highs. There's a lot of capital, there's a lot of cash sloshing
around and also sitting on the sidelines. So, if we saw what happened with Airbnb and DoorDash and you're seeing the wave of mergers and acquisitions
happening the healthcare sector, the technology sector, even in the energy sector. And financials recently, you saw some regional banks merge. That's
going to be - cash is going to want a - people are going to looking for a higher rate of return than zero percent which is what you're earning on
your cash right now going into 2021.
So, I think that on the dips people are going to be buyers, you're going to see more IPOs come to the market, you're going to see more mergers and
acquisitions because people have access to capital, people have access to cash and they're going to be looking for a home.
And I think risk assets are going to prevail in 2021.
ASHER: So people are going to be much more eager to invest just after a year of having their cash sit on the sidelines. But I do want to ask about
what happens to tech stocks next year. You talk about there being a vaccine. I mean obviously for most businesses that's a great thing. But for
a lot of tech stocks that have really benefitted from people not being at work but.
[09:25:00]
AHSER: From people being at home in front of their computers. What happens to those stocks in the New Year? Tech stocks especially, the NASDAQ, et
cetera, once there is a vaccine do you think?
PETRIDES: Yes, it's a great question because if you add tech plus Amazon, Google and Facebook that makes up like 35 percent of the S&P 500 currently.
So it's a big allocation and where - as goes tech so goes the S&P 500 index. But I think what happened in November - the market really tipped
it's hand onto where stocks will move. And it all depends on the acceptance and the effectiveness of the vaccine.
In the second - well the first week in November we got the initial rollout of the Pfizer vaccine and it showed a 95 percent efficacy. And then what
happened in November? You saw cyclicals rally, energy, financials, small cap, international and what underperformed was large cap tech and U.S.
treasuries. Well if we get a faster resolution to COVID in 2021 well then you're going to see that trade play out again. You'll see cyclicals, you'll
see small cap, you'll international outperform tech and treasuries.
And if we don't; if the social distance, the economy last longer than we're expecting you'll see a repeat of 2020 and you'll see what has driven this
market. And that has been U.S. treasuries and big cap tech. So if the whole play is a function of how fast will we roll the vaccine out? Remember this
is very different than the Great Financial Crisis; the financial crisis was that we were too levered and that the housing market was in a bubble. This
is a light switch. The vaccine came in, we shut the economy off, we flipped the switched of the light switch.
The virus is spreading through the economy and once we get through it we're going to switch the light switch back on and people are going to go back to
spending money again. So, where as - where as getting out of the financial crisis in 2008 and 2009 was really death by 1,000 paper cuts because we had
to delever and we had to reregulate the banking system. So you're going to see the trade turn around pretty quickly but it's all dependent on how fast
the vaccine gets rolled out.
AHER: All right, John Petrides, live for us there. Thank you, so much, appreciate it. All right we are still expecting the British Parliament to
vote on the post Brexit trade deal imminently. What we just saw there, I believe we just missed him, was - oh, there he is, Michael Gove. Mr.
Michael Gove speaking, one of the handful of entities who actually came in to the House of Commons today; that vote, once again, happening imminently
in about three or four minutes from now.
Stay with us, you're watching "First Move".
(COMMERCIAL BREAK)
AHSER: All right let's recap the latest developments in the pandemic. In the U.S. more than 3,700 deaths from COVID-19 were reported Tuesday. The
highest since the pandemic began. And with more Americans in hospital with the virus than ever before it's unlikely that record is final. Making
things worse; a new more infectious variant of the coronavirus from the U.K. has now been discovered in Colorado.
Our Stephanie Elam is in that state's capital, Denver. So the discovery of this new variant, Stephanie, could not have come at a worse time.
STEPHANIE ELAM, CNN CORRESPONDENT: No, not at all. And I think for many of us it was just a matter of time that we were expecting that it would be on
American soil. The surprising part is where we are. We are outside of Denver probably closer to Colorado Springs at this point.
[09:30:00]
This is a rural county, Elbert County where we are and we've confirmed that this is the nursing home here where we know that one confirmed case and one
suspected case of this variant that first was notices in the U.K.
What we do know is that the first confirmed patient to have it is a 28- year-old male as well as another make who is a suspected one. Both of them were working here in non-clinical roles.
What we understand is that they were here because there was a previous outbreak about two and half weeks ago of COVID-19 here and because of that
they were coming in to fill some space and help, you know, get some jobs done around here. Both of those men they do believe contracted the virus
here.
Now, they are both outside of this county isolating, but obviously this does make people wonder, Zain, where the virus came from and how did it end
up here in rural Colorado.
ASHER: All right Stephanie Elam live for us there. Thank you so much. And we'll have much more on the Brexit trade deal after this short break.
Don't go away.
[09:31:00]
(COMMERCIAL BREAK)
[09:33:35]
ASHER: A lot is happening in the British Parliament today. Lawmakers have been debating and are voting on the post-Brexit trade deal between the U.K.
and the E.U., and also the Health Secretary is set to give an update on the Oxford AstraZeneca vaccine approval and possible new restrictions as well
to curb the pandemic.
You're looking at live pictures inside the House of Commons where the vote is taking place right now as I speak. We're expected to get that vote I'm
told in about five or six minutes from now we'll have the results. The vote, by the way, is expected to pass quite easily.
Let's bring in Salma Abdelaziz who joins us now live from London. So Salma, just walk me through exactly what is expected to happen today. We know
that the vote is taking place right now.
After the vote in the House of Commons we know it's expected to be debated and then voted on in the House of Lords and then Boris Johnson will give it
his final signature and then make it the law of the land. Just walk us through more details about what is happening today.
SALMA ABDELAZIZ, CNN REPORTER: Let's just take a pause for a moment, because this is -- this is historical Zain. People have been waiting for
this deal now for four and a half years. This has been a debate in this country for many years longer. We are watching them vote on this deal
right now. And as you said, it is expected to pass quite easily.
The opposition Labour Party although opposed to this deal, the leader Keir Starmer, there Keir Starmer saying that this is a thin deal, it's not a
great deal, but it's the only we've got. And of course Prime Minister Boris Johnson touting this deal as a victory, as a way for this country to
gain its sovereignty back, to gain its national destiny back as he says. So, this vote taking place now, a historical moment, a step forward in the
relationship with the E.U.
[09:35:00]
Afterwards, of course, it will go to the House of Lords and later on we're going to see Prime Minister Boris Johnson in Downing Street at 3:00 pm
local time signing this into law and then it all kicks off December 31. So, very fast moving events here, but -- but ultimately this is about
putting this debate to rest.
For years now this country has been embroiled (ph) in leave or remain in the debate of whether this will make the economy stronger or weaker,
whether this is better for the future or worse. Well, one side has one and that is side is the leave side.
And now starts the new relationship and the real litmus test of this deal, Zain, will be the economy, it will be how it impacts businesses, how it
impacts ordinary families. But for right now I think all sides can agree, let's put the debate behind us, this is real, it's no longer theoretical,
it's happening now, let's try to make the best of it. Zain?
ASHER: What does all this mean for Boris Johnson's legacy? I mean, you think about the fact that, look, he came into office promising that he was
going to definitely get Brexit done. He went so far as to threaten a no deal Brexit, which obviously made a lot of people nervous. He managed to
get it through just in the nick of time, we saw that deal on Christmas Eve.
Now this vote is happening one day before the Brexit deadline, which is tomorrow at 11:00 pm at night local time. And then you put it all into
context, the fact that Britain this year has had its worse recession in 300 years, and all the pressure in terms of the coronavirus, and the lockdowns
and all the pressure on Boris Johnson to get a deal done because of what would happen to the British economy if he didn't, what does all of this
mean for his legacy?
ABDELAZIZ: I think Prime Minister Boris Johnson would say he has triumphed mightily for this country using his own -- his own language, his own words
there. This is something that he says is best for not only his country, bet for the E.U. as well.
His argument is essentially that this is a deal that brings back Britians sovereignty, that allows it to take control of its destiny and its laws and
its future. He argues that it's not only good for the U.K., that it's good for the E.U. because ultimately the U.K. was a reluctant member of the
club.
And so, this friendship, which is the way that he describes it, this friendship will be every closer, ever better, more functional with the U.K.
out of the E.U. And I think he sees his destiny having been someone who was at the lead of this vote leave campaign as -- as finally giving that
back to the country, the control back to the country.
Now, his critics will argue, of course, that this is a terrible mistake. That this is a legacy that will be a dark history for Britian, that it will
ultimately be a less competitive country, that its economy will be smaller and weaker and that leaving the E.U. is a step backwards, not a step
forwards.
But these debates now, as I said Zain, the leave, the remain, doesn't matter now. it's been theoretical, it's been hanging over our heads for
years now, but the debate is over. Now, comes the practical part of putting into action and of seeing what happens next. And I think that's
where his legacy stands, is still -- is still in question, Zain, because we have to see how this plays out before we ultimately know if it was good or
bad, if it's better or if it's worse.
So, the next step now, yes, this is the Prime Minister whose had to face a pandemic, had to make a deal during a pandemic and now he has to put this
into action and make sure, as you said, that the economy triumphs from this, especially at a time where it's already been so weakened by this
pandemic, Zain.
ASHER: And Salma, you and I talked about half an hour ago about, you know, just how remarkable it was that Boris Johnson was actually able to get both
parties on board. Obviously, Keir Starmer rallying his group, telling them listen let's vote for this deal because the alterative by the way is
actually much, much worse.
And also, the hardliners and the conservative party who did not support Theresa May, made her life a living hell, now supporting this deal with
Boris Johnson, because they say that the deal gives the U.K. really back it's sovereignty in the way that the deals that Theresa May negotiated with
the E.U. simply didn't.
But what about the actual critics beyond the parties? What about fishery organizations? What about the Scottish National Party which has spoken on
behalf of the fishing industries that it represents, saying that they don't like what's in this deal. The SNP actually coming out and saying that this
particular deal is going to make it much, much easier for them to boost their case for their independence again.
So -- so just walk us through what critics of this deal within the U.K. are saying about this particular deal.
ABDELAZIZ: There was some really dramatic moments there with the Scottish National Party, where Prime Minister Boris Johnson was essentially accusing
them of giving up sovereignty of their national waters, of national waters there to the E.U.
So, a lot of very heated debates about what it means to have sovereignty, to have control of your own borders, of your own waters, to have control of
the flow of goods and people and humans in and out of your country.
So yes, this is still sort of in some ways a very heated debate, but what we've watched happen over these four and a half years is that debate has
sort of distilled further and further and further down until you've sort of gotten them to the most horrid line of Brexiteers
[09:40:00]
We've watched administrations change, prime ministers change, ideas and negotiations change. So many points, both sides willing to walk away from
the talks and just throw their hands up and say no deal. So to get this deal through, it is a massive accomplishment. You can't shy away from that,
and Prime Minister Boris Johnson and his government would say international trade deals usually take years, decade even to negotiate, so to be able to
do this in the time that they have the government would say is a victory. And ultimately again that is gives -
(CROSSTALK)
ASHER: OK, Selma - Selma, it looks as though - Selma, I have to interrupt you because it looks as though Sir Lindsay Hoyle is announcing the results
of the vote. Let's listen in.
SIR LINDSAY HOYLE, SPEAKER OF THE HOUSE OF COMMONS OF THE UNITED KINGDOM: Thank you. We now come to the muley (ph) resolution to move formally.
UNIDENTIFIED MALE: I beg to move.
HOYLE: The question is as on the order paper as many of that opinion say aye. The country know I think the ayes have it. The ayes have it. We now
have the ways and means motion to move formally (ph).
UNIDENTIFIED MALE: I beg to move.
HOYLE: The question is as on the order paper as many of that opinion say aye. The country know I think the ayes have it. The ayes have it. Under the
order of the House today we now move to the Committee of the Old House (ph).
ELEANOR LAING, PARLIAMENT DEPUTY SPEAKER: Order. Part (ph) to read the title of the bill.
UNIDENTIFIED MALE: Yes.
UNIDENTIFIED MALE: Yes, yes, yes. Future relationship bill.
UNIDENTIFIED MALE: Order.
LAING: Point of order, Mr. David Linden.
DAVID LINDEN, MEMBER OF PARLIAMENT OF THE UNITED KINGDOM: Thank you, Madam Deputy Speaker. We thank ourselves (ph) from the rather bizarre situation
today when we have been told that parliament is taking back control where this entire charade of the cry (ph) of the whole House will conclude
without any member being able to speak or indeed the 14 pages worth of amendments that have been tabled by oracle (ph) and by other members being
able to be considered. So can I seek your clarity and your guidance, Madam Deputy Speaker, if parliament's taking back control why is it that
parliament has been forced to debate this charade of a bill in five hours and be mute of entire duty committee (ph) of the Whole House?
LAING: I under - I thank the honorable gentleman for his point of order, and it is a perfectly reasonable question to ask at this stage in the
proceedings, but just as Mr. Speaker said just before he left the chair under the order of the House today we now move to committee of the Whole
House. The House decided this morning on the time table motion under which we are operating, and that is the answer to the honorable gentleman's
question, but I'm sure he will also have noted that unusually we are in a position where this bill being taken in these unusual circumstances at this
time can only be either rejected or passed in its entirety. And therefore the opportunity for any change has long passed, and the honorable gentleman
cannot possibly argue that these matters have not been discussed and argued at length and in depth for many years. Indeed, the honorable gentlemen -
the right honorable gentleman at the bat there might say for decades.
So we are now in the committee of the Whole House, and under the order of today I'm not required to put the question necessary to dispose of
proceedings in committee. The question is clauses 1 to 40 stand part of the bill and that schedules 1 to 6 be the first to 6 schedules to the bill. As
many of that opinion say aye. Of the contouring know (ph) I think the ayes have it. The ayes have it. Order. Order. That concludes proceedings in
committee.
LINDEN: Thanks (inaudible).
LAING: (inaudible).
ASHER: Right. You've just been watching a fairly significant moment there in the House of Commons. You heard Sir Lindsay Hoyle, the Speaker of the
House of Commons, saying that the ayes have it. The vote passed as we knew that it would, but very significantly 521 votes in favor of the Brexit bill
and 73 votes against. So 521 votes in favor. Let's bring in Selma Abdelaziz again who's standing by for us. So Selma, just walk us through what are
sort of the main highlights of this Brexit trade deal just in terms of the rights of U.K. citizens who are living abroad, perhaps want to travel to
mainland Europe, how long can they stay, that sort of thing, and of course the fact that, you know, there's not going to be tariffs, but what will it
mean for businesses especially when it comes to the transition period?
[09:45:00]
This is going to be - the next few months are going to be quite tough for businesses to actually adjust to the new rules. What are some of those new
rules?
ABDELAZIZ: So this is a no tariffs, no quota deal. That means you can trade as many goods as you want without having the tariffs on them, and
there's no limit on the number of goods that you can trade. Now there will, of course, now be borders, hard borders between the U.K. and the Schengen
region. That means British citizens will need to get visas if they want to stay, work, or study in European countries. They'll be subject to different
rules of course. There's no hard border between Ireland and Northern Ireland. That was a major sticking point of course. They'll continue to
cooperate with the E.U. on issues like climate change and security and they'll continue to contribute to some programs for a few years, but
ultimately this is the start of the friendship. This is the start of the beginning. This is the start of when you cross into Europe having your
passport checked if you are a British citizen, and for businesses there's going to be a lot to figure out here. Remember Zain, this deal only was
reached on Christmas Eve, so when people were away from their work, and now they just have a matter of days to go through what was a more than 1,500
page document, so a lot of rules.
And I think Prime Minister Boris Johnson and his government are very aware of this because ultimately this means more bureaucracy, more checks, more
rules, more restrictions to go through for these businesses. More red tape. Now they argue that ultimately this is better. The government would say
this gains back sovereignty, gives businesses the right to set their own destiny, allows the U.K. to negotiate its own trade deals with other
countries, but of course critics will say listen, this only makes things more complicated for businesses. These are more rules that they have to
keep up with, more restrictions that have to come into place, and again I just want to remind everyone deal was made Christmas Eve, just a matter of
days to figure out over 1,500 pages, Zain.
ASHER: Yes, it was made on Christmas Eve and now they have one day to basically rush it through the House of Commons and the House of Laws. They
have to get it done very, very quickly. So Selma, just given the ease at which this passed, you know, 521 votes for to 73 votes against, what does
that mean for Boris Johnson's standing within his own party? How much does it boost his standing within his own party?
ABDELAZIZ: Zain, if you remember the phrase we kept hearing over and over again is the clock is ticking, and essentially what's happened here, why
yo8 have such a strong support for this deal is not necessarily because everyone agrees with it but because they've run out of time, Zain.
Something had to be done, otherwise it was no deal. It was the cliff edge, and that's what the opposition needed here (ph). (inaudible) said, he said
listen. I don't like this deal. It's thin. I think there's a lot of gaps in it. I think it's going to be a lot of trouble for businesses, but it's this
or no deal, and no deal is much worse for this country. And that's what it really came down to here is the clock was ticking. A decision had to be
made. They've been negotiating with the E.U. now for years of course, and now it's time to take the next step, and I think that's the consensus that
you heard in the House of Commons today from all aisles, from all sides is now it's time to put the debate, this very bitter, divisive, polarizing
debate that's really, really divided this country now for so many years, it's not time to put that debate aside. We have the rules. We have the
deal. We have the restrictions.
Now let's put them into action and see what the best we can make out of them is. And again, no tariffs, no quota deal. A lot to go through here for
businesses and a lot of restrictions that they're going to have to figure out overnight, but the one thing I do want to bring up is on the eve of
making this deal essentially what happened was we had this massive drama play out on the border in Dover where because of this new variant of COVID
the border was shut down and that happened just as negotiations were heating up in the E.U. when no deal seemed really possible, and it seems
liked both sides got a taste of what it was like if the U.K. was isolated, if the U.K. was shut off, if its European neighbors could not trade with
Britain, if the channel didn't function, if that back and forth of goods and flows didn't go, and that really seemed like a preview, like a warning
call, like a wake up call for everyone of what it looks like if the U.K. is isolated, what it looks like if the U.K. has no deal. So now that there is
a deal I think, both sides, both the E.U. and the U.K. government will tell you this is a start of a friendship. Let's turn the page, new chapter, and
in some ways it's setting a precedent, right? It's setting a precedent for what future relationships with the E.U. can look like for countries outside
the Schengen region. So setting a precedent here, uncharted territory, a lot of rules, a lot of restrictions for businesses to get through and
understand, and all of this of course happening in the middle of a pandemic.
Now, there is no way that these two sides can really cooperate without each other, so there's going to be a lot of sort of signaling and waving the
need for cooperation, the need to work together, the need to look at issues like security and climate change in cooperation.
[09:50:00]
But again, so much unchartered territory here and a lot of uncertainty, I think, for businesses, for families, for ordinary Brits but a lot more
certainty than you'd get with no deal, Zain?
ASHER: Salma Abdelaziz, thank you so much for your reporting and we'll have much more "First Move" after this short break.
(COMMERCIAL BREAK)
All right, welcome back everybody. A lot is happening in terms of the British Parliament with this Brexit trade deal that is being voted on. In
terms of the second reading of that trade deal, we're told that the ayes (ph) had it 521 votes in favor of the Brexit trade deal in terms of the
second reading, 73 people against it, but they are now doing a third reading of the Brexit trade deal and we'll have the results of that.
That would be the final vote. We will have the results of that momentarily. Let's bring in Anand Menon, he joins us live now. He's a Professor of
European Politics and Foreign Affairs at King's College London. Anand, thank you for being with us.
So, just walk us through what you make of this particular vote. Obviously, the third reading is expected to pass and pass significantly. How much of
this is a -- how much of a crowning achievement is this do you think for Prime Minister Boris Johnson? He finally got it done just like he said he
would.
ANAND MENON, PROFESSOR OF EUROPEAN POLITICS AND FOREIGN AFFAIRS AT KING'S COLLEGE LONDON: I think it's worth saying this is a massive political
triumph for the prime minister because against the odds, the face of people saying it couldn't be done, he's not just taken the U.K. out of the
European Union as he promised to but he's now also secured a trade deal.
And he's secured a trade deal which hasn't provoked the anger of the Brexit ultras in his party. Even Nigel Farage of the U.K. Independence Party came
out and said that the Brexit war is now over. So he's managed to sign a deal that has appealed even to the most hard line Brexiters in there -- in
his party. So there are reasons for him to be hopeful that he has at least temporarily brought to an end the wars over Europe in the conservative
party that adopted since the 1980s.
ASHER: So what did he do differently than Theresa May? I mean, obviously like the sort of hard line conservatives within his own party have said
they really like this deal, they prefer it to any deal that was discussed with Theresa May. They like the fact that the U.K. absolutely now have
sovereignty over its laws, that there's no role for the European Court of Justice.
But aside from that, his negotiating strategy with the E.U. was vastly different. He made it seem as though he was fully prepared, ready to go out
with a bang and not have any deal whatsoever with the E.U., no deal Brexit. He was ready for it. That's what he made them think and surely that's --
OK, let's listen in to what's happening in the House of Commons.
[09:55:00]
(BEGIN VIDEO CALL)
SIR LINDSAY HOYLE, SPEAKER OF THE HOUSE OF COMMONS OF THE UNITED KINGDOM: The notes left (ph), 73. The ayes to the right, 521. The no's to the left,
73. The ayes have it, the ayes have it a lot. In order to allow the safe exit of members participating in this item of business and the safe arrival
of those participating in the next, I'm suspending the house for three minutes. Order.
(END VIDEO CALL)
ASHER: Let's bring back in Anand, then also Anand before we cut to Sir Lindsay Hoyle speaking there, announcing the results of the vote, I was
talking about Boris Johnson's negotiating strategy and his style and how it was different from Theresa May's and how that may have helped when it came
to negotiating with Europe. What do you think and what do you make of just how differently Boris Johnson handled this compared to Theresa May?
MENON: To be honest, I'm not sure I'd agree. I don't think Boris Johnson received anything from the European Union in particular that another prime
minister wouldn't have been able to do. I think what was different was two things. Firstly, Boris Johnson was asking for a far more distant
relationship with the E.U. than the one that Theresa May was asking for.
But secondly and crucially, the fundamental difference between Boris Johnson and Theresa May was that Boris Johnson approached the negotiations
with a majority of 80 in the House of Commons, and the majority of 80, a parliamentary party that was committed to whatever Brexit he chose to
negotiate.
Theresa may, of course, was in charge of a minority government at the head of a profoundly divided parliamentary party and it was ultimately that
rather than her stance in the negotiations with the E.U. that led to her downfall.
ASHER: So it wasn't her negotiating style with her -- the E.U. All right, well Anand Menon, Professor of King's College London. Thank you so much for
being with us. That's it for "First Move." Appreciate you being with us. "Connect The World" is up next. You're watching CNN.
(COMMERCIAL BREAK)
END
