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First Move with Julia Chatterley

President Biden Provides A Timeline For Vaccinating The Nation; AstraZeneca Row With The European Union Over Vaccine Supplies Intensifies; GameStop Rally Continues As Investors Duel Over The Retailer's Valuation. Aired 9-10a ET

Aired January 27, 2021 - 09:00   ET

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

[09:00:28]

JULIA CHATTERLEY, CNN INTERNATIONAL ANCHOR: Live from New York. I'm Julia Chatterley. This is FIRST MOVE, and here is your need to know.

Biden boost. The President provides a timeline for vaccinating the nation.

AstraZeneca arguments: The row with the E.U. over vaccine supplies intensifies.

No stop for GameStop. The rally continues as investors duel over the retailer's valuation and --

[VIDEO CLIP PLAYS]

CHATTERLEY: Approaching hyper-drive. Virgin's Hyperloop CEO gives us a glimpse of the future.

It's Wednesday, let's make a move

Welcome once again to FIRST MOVE. We have a jam-packed show for you this Wednesday, much of it about vaccine-omics -- that's my word. The Biden

administration stepping up vaccine purchases. We've got the E.U. battling over limited supplies and all this amid growing talk about a potential

multitrillion dollar global economic cost of vaccine nationalism limiting supplies to developing nations. The whole world needs these supplies. We'll

be debating that throughout the show.

For now, investors have much to debate, too, and futures are under some serious pressure this morning. Investors uneasy. We will explain why. It's

despite a blowout Q4 earnings release from Microsoft as it cashes in on the cloud. That stock rising to new records.

We've also got Tesla and Apple results to come after the close today, but all anyone in the market really wants to talk about is: what's the endgame?

The video game retailer GameStop as the short squeeze in that stock causes carnage for the hedge funds that had sold it.

And meanwhile smaller investors it seems to sit on windfall profits, perhaps even on paper. Just for now: three words -- froth, not

fundamentals. We'll discuss where the major averages end today. We'll also be dictated, I think by the latest Powell pronouncements. The Fed Chair

holding a news conference after the Feds first policy statement of the New Year.

But for the globe: COVID cases, vaccination speeds and mitigation efforts remains key and that's where we begin the drivers.

Breaking news from the U.K. this morning announcing passengers arriving from 22 countries considered high risk we'll have to go into government

provided quarantine accommodation for 10 days. Prime Minister Boris Johnson revealing the details just a few moments ago.

Anna Stewart has all the details for us. Anna, what else do we know about these latest mitigation efforts?

ANNA STEWART, CNN REPORTER: This is a policy that's been discussed by the government now for days. Finally, we got an announcement by the Prime

Minister, but actually, not a huge amount of detail.

We do expect to get more later in the day from the Home Secretary, but we know that a hotel quarantine will be introduced for those returning from 22

high risk countries. Those are South America -- countries in South America, Portugal, South Africa, countries where actually travel is banned, all

nonessential travel, citizens of course though, will have to return and this is where the quarantine hotel comes in place.

It's expected to be 10 days or more. It's expected the passenger will have to foot the bill. It's similar to policies we've seen in New Zealand and

Australia. But of course, by no means as comprehensive given that it only applies currently to 22 countries. And that will be where the critics come

in.

Is it comprehensive enough? Will it be effective? It's designed to prevent the new variants of coronavirus entering the U.K. potentially jeopardizing

the vaccine rollout here. But of course, other countries are seeing some of these variants cropping up. Even in Europe, those are unlikely to be

included in those 22 countries that we don't actually have the breakdown at this stage. And of course, new variants would be popping up all the time.

This will be the big risk for the travel industry. It is 22 countries on that list now, but could it be extended. And what will that mean for

people's appetite to travel -- Julia?

CHATTERLEY: Absolutely. And what about U.K. citizens, if they were perhaps planning to travel somewhere looking to go on Holiday? Interesting time to

be doing it quite frankly. Has that now going to become illegal as well? Or will that now become illegal?

STEWART: I think the risk is that these travel restrictions could keep getting tighter and a lot of it as we know is down to customer appetite.

Will there be appetite to travel if there is a risk? Suddenly your holiday could be canceled. That you could be put into quarantine at your own

expense for 10 days or longer.

[09:05:10]

STEWART: Already, you have to have a test -- a COVID-19 test before travel to the U.K. from any country and you have to self-isolate at home. If that

wasn't enough, well, an expensive 10-day quarantine in a hotel is likely to put passengers off -- travelers off altogether -- Julia.

CHATTERLEY: Yes, it's just simply not worth it. Best to stay at home and stay safe. Anna Stewart, thank you so much for covering that for us this

morning, too, and a dramatic plane taking off in the background as well.

All right to Washington now, President Biden announcing the U.S. is buying 200 million additional vaccine doses, calling the move a wartime effort.

(BEGIN VIDEO CLIP)

JOE BIDEN (D), PRESIDENT OF THE UNITED STATES: That's 100 million more doses of Pfizer and 100 million more doses of Moderna, 200 million more

doses than the Federal government had previously secured, not in hand yet, but ordered. We expect these additional 200 million doses to be delivered

this summer.

(END VIDEO CLIP)

CHATTERLEY: CNN White House correspondent John Harwood joins us now. So stepping up these purchases, which is good news, John; also accelerating

the timetable upon which they can get doses out to people in the first 100 days. They were accused of lacking or they were being accused of lacking

ambition with those numbers, and they've adjusted them.

JOHN HARWOOD, CNN WHITE HOUSE CORRESPONDENT: They have and look, it's difficult to separate what the new levels that the Biden administration is

touting from what would have happened anyway.

You know, the Trump administration had been overseeing in the last week, he was in office, a million vaccinations on a single day. Ron Klain, the White

House Chief of Staff said on CNN last night, well, that was one day, we're saying we can do it for a hundred days.

So what we do know for sure is that they are communicating clearly. They are elevating science and they're deploying more Federal power. The result

is how they are going to be judged, though. We're seeing some plateauing and declining in the number of cases as vaccination goes up. So that's good

news.

But the proof is going to be in the results over the next several weeks, and we get the first COVID briefing from the experts in the administration

today. That's a shift from what the Trump administration was doing.

CHATTERLEY: Yes, greater communication here is key, whether it is good news or bad news, just actually being told information on a timely basis is good

news.

John, let's talk impeachment, too, because a lot of what we're seeing here from the Biden administration, the hopes of trying to provide further

stimulus to citizens in need in America depends on the timing of impeachment and how much time that takes up. It looks like it's fizzling

before it has even started as far as the Republicans are concerned.

HARWOOD: Republicans are trying to sweep this under the rug, forget about it and move on. It can only be divisive for them to have to confront the

criminal behavior that occurred on January 6th and President Trump's role in inciting that, some Republican Members of Congress, House and Senate,

their role in fueling the anger that produced that insurrection. So they simply are not interested in doing that.

The magnitude of the crime against the people in the United States compels the Senate to conduct this trial. That's why the House impeached, they did

get 10 Republican votes in the House. It appears unlikely they'll get 10 Republican votes in the Senate to convict, much less the 17 that they need

for an absolute conviction.

Nevertheless, they're going to have to take a stand on this. But it does appear that given the speed with which the Congress is moving forward on a

fast track basis to move the COVID relief plan, it is not going to have that dramatic effect, either on the nominations to serve in the Biden

administration or on the initial legislative program of $1.9 trillion for COVID relief.

CHATTERLEY: That's the best part of that good news, if it doesn't get in the way of them getting relief to Americans that need it.

John Harwood, thank you so much for that.

AstraZeneca has rejected criticism from the European Union over vaccine delays. The company says there was no contractual delivery schedule with

Europe. It also said that the E.U. finalized its vaccine orders months later than others, such as the U.K.

Cyril Vanier joins me now. I was looking at the statement from AstraZeneca, "We made no promises," it was best effort, but the E.U. is not happy.

CYRIL VANIER, CNN CORRESPONDENT: Yes. No, the E.U. is furious. That's an understatement, Julia. The E.U. is furious. There are seething because --

well, because they really badly need this. They are looking down the barrel at a third wave of the coronavirus that is fueled in no small part by these

new variants first identified in the U.K., and now it's a race between the virus and the vaccine and they were hoping that the AstraZeneca vaccine,

which is expected to be approved here in Europe would help European countries, if not win the race, at least catch up with the virus.

And that is just not going to happen now, because as we know now, AstraZeneca has acknowledged that there are going to be very serious

shortfalls in the amount of vaccines that it can deliver to the 27 member states of the European Union.

[09:10:21]

VANIER: The E.U. feels that they are being hard done by, that they are being cheated because they have put millions of euros on the table to help

AstraZeneca not only in the vaccine research process, but also to ramp up. That money was supposed to be used for AstraZeneca to ramp up their

production facilities, and now AstraZeneca is saying well, we have a supply chain issue, so we can't provide as many vaccines as we thought we could.

And to give you a sense of the numbers. Now, this is still fairly opaque, but some individual countries have released the numbers. France says that

they think they will only get now one-third of the AstraZeneca vaccines that they were expecting to receive in the first quarter of 2021. That's to

say between now and March. And for Belgium, it's a little less than half the vaccines.

European member states really, really need this, Julia, and they're not going to get them quickly.

CHATTERLEY: Yes, and it's hope for your population as well. You're trying to tell them to restrict their movements and to obey all the rules. The

hope here is vaccines. And if they're not coming as soon as you'd hoped, then that's a real blow here.

Cyril, is there any rumor -- or is there any truth to the rumor that perhaps, that the E.U. is considering some form of export restrictions?

It's important for our viewers to understand where each of these vaccines are actually being manufactured, and what potential power Brussels, the

E.U. Commission has here to perhaps limit where supplies go and when? I mean, this is excruciating for the Commissioners out there at the forefront

of not wanting to see trade restrictions of any form, quite frankly. What's the story?

VANIER: Well, Europe made a big show yesterday of announcing that they would now monitor exports of vaccines that are made on European soils and

that actually leave the European Union because they want to avoid the situation that they find themselves in right now, where there's a shortfall

of vaccines.

It is unclear, Julia, whether this could actually in any way help this AstraZeneca vaccine shortfall that they have because as AstraZeneca just

explained in their statement released a short while ago, their vaccine production depends on multiple supply chains across the world, right?

So the contract that AstraZeneca has to supply vaccines to the U.K. depends on the supply chain in the U.K., and that is why the U.K. are receiving all

the doses that they thought they would receive because everything is going well with production at the U.K. site.

The European site, however, AstraZeneca has explained that, hey, it's a biological process. And a lot of people don't understand this. But when you

start the process of making the vaccine, there's actually -- it's unreliable. You don't know how many doses you're going to get. And it's so

happens that at the European production site, well, there was a lower yield and that is why AstraZeneca is not able to provide all the vaccines that it

said it could.

CHATTERLEY: Yes. Cyril Vanier, it is complicated. Getting vaccines to people's supplies at this critical moment very complicated. Cyril Vanier

there. Thank you for that.

Now we have more on vaccine distribution amid a global supply crunch later in the show. UNICEF is the world's single largest vaccine buyer and we're

going to speak to their U.S. lead on this story.

Shares, in the meantime of video game retailer GameStop is set to continue their head spinning ascent today. Shares are now up more than 60 percent

premarket amid an ongoing battle between bullish day traders and hedge funds short sellers that have bet against the stock. GameStop shares have

now risen some 700 percent year-to-date.

Christine Romans is here with us on this story. Christine, I look at this price action, it is absolutely eye watering. The market analyst in me is

cringing at the frothiness and all the analogies that we can make here, but there is a story here beneath the surface of hedge fund, the big guy

shorting this and smaller players, retail investors buying it and making windfall profits, at least on paper.

CHRISTINE ROMANS, CNN BUSINESS CHIEF BUSINESS CORRESPONDENT: At the expense of those short sellers. I mean --

CHATTERLEY: Right.

ROMANS: It's like a David versus Goliath story or it's a storyline in the TV show "Billions" or it's a Michael Lewis story novel.

CHATTERLEY: All of the above.

ROMANS: You know, it's all of those things wrapped in one. It's so interesting and people keep talking about it and talking about GameStop.

Look, the fundamentals of the company had been rough here. You know, they're not making any money. They've been closing stores.

You see these big short positions in the stack and then this Reddit Board, this Wall Street bets Reddit message board, it's almost like a populist

trader uprising to support the stock with these buying of the out of the money options and really hurting the big guys.

So it's just been this interesting revolt that somebody is making a lot of money on, someone is not, and certainly is far out of line with the

fundamentals of this company. You know, it's funny, in some cases, people think it's sort of funny how regular day traders could distort a stock

price so much, but one wonders what they think about this at the Securities Exchange Commission, you know, is it manipulation? Or is it just fair and

square talking up a stock? It's fascinating.

[09:15:31]

CHATTERLEY: I know. There's a lot of mom and pop investors here that could be cheering at this moment and could end up in tears. And your point about

the regulators here is absolutely pivotal for me.

I mean, step forward, Gary Gensler, the former Wall Street guy that's now going to head up the S.E.C. This is fresh meat I think for the regulators -

- and those voices -- particularly in the Democratic Party that will be like, we need to regulate hedge funds. Enough of what we've seen. Go on. Go

for it.

ROMANS: No, it's just -- it's so interesting, because some of the chatter on these message boards is about how this is just desserts for the, you

know the bloodthirsty short sellers who are who are constantly out there making money and weakness and companies are sometimes not even weakness in

companies.

So there's a sort of feeling of righteousness among some of the people who are playing this game. But I mean, they're going after other names this

morning, too. So I think this is also kind of a story of the frothiness of the market overall, where you've got story of stocks that are getting so

much attention, and so much hype here.

There's just a lot of money at work in the market. There's a lot of interest from retail investors in the market, and now these story stocks, I

think, have really gained a lot of attention here maybe not warranted, but gained a lot of attention. Someone is going to be hurting when this thing

turns, but for now, it's not turning.

CHATTERLEY: Yes, froth not fundamentals. We are two people and one mind. I flatter myself. Christine Romans, thank you, as always.

ROMANS: Bye.

CHATTERLEY: All right, still to come on FIRST MOVE, introducing Virgin's high speed hyper-tech loop. I speak to the CEO about the future of

transportation. Stay with us. Still coming up.

(COMMERCIAL BREAK)

[09:20:15]

CHATTERLEY: Welcome back to FIRST MOVE. With COVID-19 vaccines in short supply worldwide, UNICEF U.S. and entertainment brand, Discovery are

partnering to deliver two billion vaccines to frontline workers in poor and middle income countries. One dollar from every new Discovery Plus streaming

subscription will go towards UNICEF's vaccination drive, and I'm pleased to say joining us now is Michael J. Nyenhuis. He is President and CEO of

UNICEF U.S.A. and Jean-Briac Perrette. He is the President and Chief Executive Officer of Discovery International.

Gentlemen, fantastic to have you on the show. JB, I want to begin with you. What drove this decision?

JEAN-BRIAC PERRETTE, PRESIDENT AND CHIEF EXECUTIVE OFFICER, DISCOVERY INTERNATIONAL: You know, Discovery has been a company that for since its

inception has been one that's been with the aim of doing good while also entertaining and we've been on this mission for 35 years. And as we

launched this unique new product earlier in January, that is Discovery Plus which aggregates all of the 55,000 hours of content plus exclusive

originals all around the one streaming service that is about real life entertainment.

We also were looking for ways to continue to do good particularly in this moment, where we're all dealing with such challenges economically around

the world. And so teaming up with UNICEF to not only provide great entertainment, but also to provide great needs to people who want -- have

need to have access to the vaccine and to the efforts of UNICEF, we are trying to drive the two billion vaccinations for people in need around the

world, it seemed like a logical combination of two great brands trying to do good while also doing well.

And so for every new Discovery Plus subscriber, we're going to offer $1.00 to UNICEF to help in their great cause of helping get vaccinations to the

most needy around the world.

CHATTERLEY: I mean, the monthly subscription, very quickly, $5.00 to $7.00 depending on whether you've got ads or not, and obviously how much money

you raise is going to depend on subscriptions. Do you have any kind of forecast for how many subscriptions you think you can add in the next year?

PERRETTE: You know, we hope certainly, that it'll be in the millions, if not tens of millions of dollars. Obviously, we'd love to see this to be as

big as possible because obviously, there's a lot of need and that UNICEF is doing great work.

And as part of our corporate initiative that we call RISE, which is Reducing Inequality and Supporting Empowerment, which is really something

that we've embraced in the 220 markets and territories we operate in around the world, this is right in the sweet spot of that. And so the more we can

help, while also entertaining people, the better. So we'd love it to be a lot.

CHATTERLEY: So do we, and Michael, I'm sure agrees with you, too. Michael, come in here. I mean, you have unparalleled, I think experience in terms of

both procurement, what's required to get these vaccines to poorer nations harder to reach nations, but also the logistics involved. And we've already

seen, the logistics here are incredibly tough, no matter whether it's a Pfizer or a Moderna vaccine, or even Astra Zeneca.

MICHAEL J. NYENHUIS, PRESIDENT AND CEO, UNICEF U.S.A.: Yes, this is one of the biggest challenges UNICEF will ever take on to deliver, we hope two

billion doses of vaccine just this year to some of the poorest and middle income countries, the remotest places, the most difficult to reach places.

But UNICEF was made for this, we do this on a regular basis. We vaccinate half the world's children under five every year with the basic vaccinations

that they need. So we can use that same expertise, the same lessons we've learned in supply chain to get down to the last mile, and turn that toward

the COVID crisis to make sure there is equitable access to the COVID vaccine all around the world.

CHATTERLEY: I mean, two billion doses is phenomenal in the space of a year. But you know, the planet is obviously far bigger than that. We spoke to the

Serum Institute of India's massive vaccine producer recently and he said it's going to take to 2024 to get vaccines for the entire globe. Michael,

what's your sense of that? Do you think we can do it quicker than that?

NYENHUIS: Well, we certainly hope to do it quicker than that, but it is a Herculean task. I mean, this has never been done before. This is the

biggest historic effort to do a global vaccine campaign.

So you know, we know the challenges of delivering vaccines every day, to do something at this scale and as quickly as we need to do it, as we want to

do it. There's no doubt we're going to hit challenges along the way.

But again, you know, there's nobody better equipped to do it than UNICEF because its core capability for us to be able to deliver vaccines around

the world.

[09:25:03]

CHATTERLEY: JB, clearly the business communities can do more to help and you're obviously stepping up here and saying look, we can provide support

here and a chunk of money. The International Chamber of Commerce put a report out yesterday and said it's going to cost potentially the global

economy over $9 trillion if we see vaccine nationalism, and we don't get these vaccines out to poor nations, to emerging market nations. What more,

JB, can the business community do here in terms of leadership?

PERRETTE: I think, Julia, it is a really important moment, when certainly all of us are trying to do everything we can to help us all pull through

this. And so I think we're one company, but we're certainly trying to lead by example. We have obviously this incredibly important UNICEF partnership

around Discovery Plus, but the reality is, through this RISE initiative that we kicked off last year, we have a number of different programs that

we work with, internationally.

So Save the Children is a big partner of ours also outside of the United States, where we work with them in terms of trying to improve and increase

the access to basic human needs. And I think we do stuff around food and hunger programs in the United States.

And so I think for us, it's about every company stepping up and finding ways that are organic and true to them to really help lead our communities

forward because it's going to take all of us rowing in the right direction to get through this, and ideally, to your point of 2024 feels like a long

time away from now.

And so the more we can all do individually, and as companies, I think we certainly feel we can accelerate the progress with the help of partners,

such as UNICEF and ourselves to get there sooner than that.

CHATTERLEY: If I look at some of your competitors, Netflix, HBO Max, of course, not too far away from home given that this is CNN and I look at the

share prices and the swathe of greater subscriptions that they've had of people being at home trying to entertain themselves in different ways, are

you throwing the gauntlet down perhaps to your competitors as well and saying, hey, we're willing to give up $1.00 of you know, our subscriptions,

our new subscriptions, perhaps, you guys could do the same. It's a direct way to help and provide support to someone like UNICEF.

PERRETTE: Yes, look, I think this is what makes competition a great thing. It is ultimately this -- if this truly is a call to action to others to do

something similar, we would love to do nothing more than that, and so we would invite that, we'd love that.

But as I say, I think for us, the ability for Discovery Plus, at a time when you say absolutely rightly that people are stuck at home, stuck or

limited, can't do the socializing that we're all used to, to have an opportunity to engage in incredibly compelling, unique content, and a

service that really is unique compared to others in the market who are doing a lot of scripted series and scripted entertainment.

Our content is all about real life entertainment and real life. And so the opportunity to do, as I say, to do great work for humanity and our

communities through the UNICEF program, but also to do great entertainment while doing it and have people find something unique on Discovery Plus that

they can be passionate about and love whether it be that food, true crime, natural history, adventure, for us, it is a very logical and exciting link

in those two causes.

CHATTERLEY: Yes. It's a good business decision. Michael, it is a call to action. I think this is the key here and I know, it's not just about the

business sector. You're working with the IATA to work on the flight logistics and how you get these vaccines out to people. What more can

people do if this is your platform now? Message to businesses and those that, you know, you could get greater help from?

NYENHUIS: Yes, well, we'd love that kind of competition that we were just talking about to get everybody involved. This is an all hands on deck

effort. We need everybody.

We need the business sector. We need private philanthropists. We need the foundation community. We need the governments. We need everybody to do

this.

This is something that has to be done. We have to beat this pandemic and this is the way to do it. You know, this is not just -- we have a moral

imperative to do this, I think, right? The people around the world and even in the poorest communities and the poorest countries, they need this

vaccine just as much as we do.

The health worker in Malawi needs this just as much as the health worker in New York. So we need to make that happen. But there is self-interest here

too, right? We need to protect the whole world. None of us are safe until all of us are safe around the globe from this pandemic. So we really need

everybody coming to the table.

And you know, we'd love for people to go to our website, unicefusa.org to find out what we're doing. Again, we need private donors. We need

corporations, foundations, governments, and everybody to pitch in.

CHATTERLEY: Yes, help each other and help yourselves at the same time. And yes, Disney, Netflix, WarnerMedia -- the call is out there. We hope you're

listening.

Guys, great to chat with you. Thank you so much and thank you for all the work that you're doing Michael and JB. The CEO of UNICEF there and the CEO

of Discovery International. Guys, thank you so much.

All right, counting down to the market open, that's next.

(COMMERCIAL BREAK)

[09:33:15]

CHATTERLEY: Welcome back to the show. I just want to take you to Washington where new U.S. Secretary of State Antony Blinken has delivered remarks to

State Department employees just a few moments ago.

(BEGIN VIDEO CLIP)

ANTONY BLINKEN, U.S. SECRETARY OF STATE: This is a priority for me because we need a strong department for the United States to be strong in the

world.

To that end, we have to invest significantly in building a diverse and inclusive State Department. We need the most talented people. We need the

most creative workforce.

We cannot do our job of advancing America's interests, values and commitment to democracy without a State Department that is truly

representative of the American people.

Now, I can't promise that you will support every choice I make as your Secretary, but I can promise an open door and an open mind. I'll be

forthright with you because transparency makes us stronger.

I'll seek out dissenting views and listen to the experts because that's how the best decisions are made. And I will insist that you speak and speak up

without fear or favor and I will have your back.

One of the great attributes of our foreign Civil Services throughout history has been your nonpartisanship. You serve Democratic and Republican

Presidents alike because you put country over party.

All we ask is that you serve the United States, the Constitution and the President to the best of your ability. I know you'll do that.

[09:35:03]

BLINKEN: The world is watching us intently right now. They want to know if we can heal our nation. They want to see whether we will lead with the

power of our example, if we'll put a premium on diplomacy with our allies and partners to meet the great challenges of our time, like the pandemic,

climate change, the economic crisis, threats to democracies, fights for racial justice, and the danger to our security and global stability posed

by rivals and adversaries.

The American people are watching us, too. They want to see that we're safeguarding their wellbeing, that we care about their interests, that our

foreign policy is about them, and their lives. We will do right by them by pursuing a foreign policy that delivers real benefits to American families,

protects their safety, advances their opportunities, honors their values, and leaves their children and grandchildren a healthier and more peaceful

world.

So we've got our work cut out for us, but I am confident we will succeed.

The United States has enormous sources of strength. We're going to build upon them. America's values are noble and powerful and we will recommit to

them. And America's leadership is needed around the world and we'll provide it because the world is far more --

(END VIDEO CLIP)

CHATTERLEY: China, just one of the items of course, on his foreign policy list and they already called on the Biden administration "to learn lessons

and correct its mistakes," I quote.

Kevin Rudd is the President of the Asia Society Policy Institute. He's also former Prime Minister of Australia. Kevin, fantastic to have you on the

show.

Fascinating events over the last couple of weeks. We've had the Chinese further cracking down in Hong Kong and those that they believe have flouted

the new National Security Law. We've had the former or the outgoing administration relaxing rules on Taiwan. As the chess game goes here

between the United States and China, we're at a tense moment. What do you make of it?

KEVIN RUDD, PRESIDENT, ASIA SOCIETY POLICY INSTITUTE: Well, I think we now have formidable opponents both in Beijing and in Washington. The Trump

administration, its China strategy was a bit like a roller coaster ride out on Coney Island. It was always lurching this way and lurching that way.

It's not to say that their overall redirection of strategy in the direction of so-called strategic competition was wrong, but the execution was sorely

lacking.

I think when you start listening to Secretary of State Tony Blinken and others joining the administration, what you do see is the emergence of a

consistent line across the administration, Secretary of State on the same page as the Secretary of Defense, Mr. Austin. You see it also with the

Secretary of the Treasury Janet Yellen, Commerce, as well as the others in the National Security Council led by Jake Sullivan, and it is a hardline

approach to Beijing, but one which I believe will seek to re-stabilize the overall relationship, but that does not mean a return to the status quo as

it existed before 2016.

CHATTERLEY: Yes, I was going to say, the difference between that Coney Island roller coaster and what we're seeing today is you hope you get off

that roller coaster at the end. To your point, does the getting off that roller coaster at this moment mean a reduction in the tariffs? Does it mean

that we see greater protections for things like intellectual property theft? Because that at least it seemed as what the Trump administration

were targeting and China quite frankly didn't back down?

RUDD: Well, I think the incoming administration of President Biden has been singing from one hymn sheet during the first week, which is, it intends to

adopt a tough hardline strategy towards Beijing.

As I said, there have been a synchronized set of statements right across the administration. But if you're looking for where breaks could occur,

however, in what I describe as a re-stabilization relationship, we should look at possible reciprocal small measures.

For example, the decision to close confidence in each other's countries, which make it more difficult. The normal lines of consular and diplomatic

communication, the bans on each other's journalists. These are restrictions in terms of a travel by officials or even students. These would be small

steps, which each side could consider.

Now look carefully, for example, at what one of the administration's leading Asia experts, Kurt Campbell has said most recently here at the Asia

Society in the United States as well, pointing to possible moves in that direction, but they would need to be reciprocal.

CHATTERLEY: It's not the only nation that we have to worry about, the United States and China, as important as that relationship is. I mean, your

own home nation, Australia, has had its own challenges and battles ongoing with China, too.

I mean you're a Mandarin speaker. You're intimately known to the government in China. How do you see that relationship evolving to? And is there a sort

of way to deescalate the recent tensions between Australia and China, too, because clearly, critical for your nation as well.

RUDD: I think in terms of the Australia-China relationship, there have been actions taken by both governments which have been not helpful. But given

the election of the Biden administration, I think there is an opportunity to again re-stabilize the relationship between Beijing and a number of

leading American allies, not just Australia.

But look at the last 12 to 18 months to two years in terms of China's relationship with, for example, Canada, and earlier with South Korea and

earlier with Japan and other European allies as well. But the principle is this: what the Chinese will be looking for very early is a signal as to

whether the United States intends to make a condition for any re- stabilization of the overall relationship with Beijing. Beijing also re- stabilizing with leading American allies, including Australia. And that I think is where much of the early dynamic will lie in the unfolding

bilateral relationship.

China's leading foreign affairs adviser to President Xi Jinping, Yang Jiechi is due to speak in an address in the United States to the U.S.

National Committee on U.S.-China relations in a few days' time. It would be important to see whether there are changes in language there.

Militarily, however, China is sending signals that it intends to be hardline as well. They had deployments recently against Taiwan, the

indication of new military exercises in the South China Sea, it means that there will be these two levels of, shall we say, diplomatic and military

game; one, hardline at the same time looking for ways through as well.

CHATTERLEY: Yes, many difficult dance steps to execute here. Kevin, it's going to be fascinating if a stabilization to some degree occurs. Great to

have you with us. Thank you so much.

Kevin Rudd there, President of the Asia Society Policy Institute. We appreciate your wisdom.

Al right, right after the break, Airline speeds in airless tubes. More exclusive peeks into the future from Virgin Hyperloop. That's next.

(COMMERCIAL BREAK)

[09:45:35]

CHATTERLEY: Welcome back to FIRST MOVE. One day, it could be the fastest way to travel on the planet, zipping from city to city at airline speeds

inside of pod inside a pressurized tube.

Last year's Virgin Hyperloop test showed us how it could feel and now we know what the pods might look like. The space age concepts came from the

Hyperloop team today. Each pod carries 28 passengers, some very cool looking interiors, and note, no windows, but vast open plan passenger

terminals.

And if you're wondering, there are several routes in planning stages. Jay Walder is the CEO of Virgin Hyperloop and he joins us now.

Jay, fantastic to have you on the show once again. Just talk us through these videos because you've really given us a sense from start to finish

what this experience could look like.

JAY WALDER, CEO, VIRGIN HYPERLOOP: Sure, Julia, it's great to be here again. You know, look, this is coming now on the heels of putting the first

passengers in a Hyperloop, which we did at the end of last year. And our company is not just about the technology, we really wanted to rethink the

passenger experience. We had the opportunity to think about this really with a clean sheet of paper from the ground up.

So what we're really looking at here, I think, is really the first new form of sustainable mass transportation. Mass transportation that people will

actually prefer to use. We're combining several things.

We're combining the speed of air travel, up to a thousand kilometers an hour. We're combining the personalization of the automobile and the

flexibility that that has, and we're combining the capacity that we have on mass transit.

And when we put all of that together, that becomes a package that is truly inviting. One that says, don't use mass transit because you should or you

have to use sustainable mass transit because you want to because you prefer to, because it's easy, flexible, convenient, and superfast.

CHATTERLEY: I mean, there was so much in this video and I have so many questions. The first thing that struck me and I know it's very important to

you is the feel of this, the noise, what you hear. At one point in the video, there's a coffee that's barely moving, and the speed above it was

above 500 miles per hour. Talk to us about just the experience of being in there and what it will feel like because this is critical. It is as

critical as cost and accessibility I think for those who might use this.

WALDER: Absolutely. And I love to say that you'll be able to travel at 500 miles an hour without spilling a drop. Look, we're using a proprietary

magnetic levitation system. You're literally floating on a bed of air and it will be super smooth. We are able to achieve the speeds in a way that

we've never seen before.

One of the advantages of what we're doing is that we control the environment. The tube is completely serene in the way that it is. So if we

think about air travel and turbulence, we don't have any of that that is taking place here right now.

So it is intended to allow you to be able to get on a Hyperloop, to sit down, to be peaceful, to be calm, to be serene, to be using the time the

way you want to use the time, and to know that when you get to your destination that you are in the city that you are part of the community

right there.

One of the favorite things that I love to think about, about this is somebody getting off a Hyperloop and taking a bike share to get to the

place that they want to be. How amazing would that be?

CHATTERLEY: A different century. Different centuries of modes of transport. I love that concept. No, I like it.

WALDER: You know even take it a step further. What this is really saying to us is that we can actually get up in our community, get to Hyperloop, get

on Hyperloop and be in another city that is 100 to 200 miles away from where we live in perhaps less time than it takes to drive across town.

That's the vision.

[09:50:03]

CHATTERLEY: I mean, we were comparing it to air travel there. I mean if you go door to door quicker than perhaps you could travel if you factor in the

queuing time, the waiting time, getting to the airport two hours early, whatever it is, then that would be something really key.

What about accessibility in terms of cost, though, Jay? Will it compare favorably with air travel, for example?

WALDER: Oh, I think it'll be much, much better than that. Look, what we're really looking at here is that this is transportation for everyone. It

really is mass transportation.

We can carry very large numbers of people and the way that we think about it is that it's much more comparable to the cost of a car trip or a train

ticket than it is to air travel. What we're keeping are the air speeds, we're going to keep the price and the cost of cars and trains.

CHATTERLEY: Okay, so Jay, how long before the concept that you've provided us here and it is a wonderful concept is actually able to come to fruition

and tied to that I think we're expected to see Pete Buttigieg confirmed as the Transport Secretary here in the United States.

And the message I always hear is, look, it's okay. It's actually relatively easy to upgrade infrastructure in this country, trying to build new

infrastructure is a pain in the behind. And it does come down to environmental concerns, among many other things.

And I saw you cutting swathes through beautiful countryside there, and I wonder whether the practicalities here are going to be a huge challenge?

WALDER: Well, I have to say that I love where the new President, President Biden and Pete Buttigieg are coming from right now. They're starting from a

place that says we really do believe that mobility is important and that shared mobility, mass transportation is an important way to be able to do

this.

They have a vision in terms of the environment and a recognition that we need to focus on that now and that doing something about it requires more

than just making incremental change to what we've done before.

One of the things that the new Secretary has said in his confirmation hearings is that he is excited about new technology that he'd like to see

it come in and be part of what we are doing. And then there's one more part of this that I think is really, really big, which is this is driving with

bipartisan support right now.

It really is picking up that strand. It hits so many things that people care about. It hits what we want for our cities, it hits what we want for

the heartland of the country. It is able to create new jobs and a new industry that's associated with it as well.

And so I really love the direction that's there. I think this fits with it in being able to do it. And it's very, very exciting.

CHATTERLEY: Yes, now we need the execution. Hallelujah, though, to being excited about technology. Yipee.

Jay Walder, thank you for sharing this with us. It is very exciting. I'm trying to modulate my -- moderate my enthusiasm.

WALDER: Thank you very much.

CHATTERLEY: Failing miserably. The CEO of Virgin Hyperloop there, thank you.

All right, you're watching FIRST MOVE, more to come.

(COMMERCIAL BREAK)

[09:55:11]

CHATTERLEY: Welcome back to FIRST MOVE and a look at the price action so far on Wall Street. U.S. stocks are lower with the biggest losses coming

from the tech sector, but a consolidation let's call it that, ahead of today's Fed policy statement and key earnings from Apple Tesla, Facebook,

after the closing bell.

Dow component Walgreens, one of the companies bucking the trend, it is rallying on word that Starbucks executive Roz Brewer is going on board as

its new CEO. She will become the only, in fact, African-American woman to head up a fortune 500 company.

In the meantime, all eyes on the shares of GameStop, the video game retailer rallying once again, as the massive short squeeze in it stock

continues. That's what's causing the disquiet I think in the markets and taking a bit of steam out of the broader market rally.

GameStop though not the only massive gainer. Shares of movie theater firm AMC up around 200 percent for the company where traders are targeting short

sellers.

Wowzers. That's it for the show. You've been watching FIRST MOVE. Stay safe.

"CONNECT THE WORLD" is up next.

(COMMERCIAL BREAK)

[10:00:00]

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