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First Move with Julia Chatterley

Volatility Rises, Bond Yields Jump, and Tech Stocks Slump; U.S. Senate Dashes President Biden's Hopes for a $15.00 Minimum; Potato Head Rebrand Overshadows Hasbro's New Content Strategy. Aired 9-10a ET

Aired February 26, 2021 - 09:00   ET

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

[09:00:25]

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

Markets mashed. Volatility rises, bond yields jump, and tech stocks slump.

Wage wedge. The U.S. Senate dashes President Biden's hopes for a $15.00 minimum.

And a hot potato head. The toy rebrand overshadows Hasbro's new content strategy.

It's Friday. Let's make a move.

Welcome once again to FIRST MOVE. Great to have you with this this French fried Friday. Yes, we are pretty fried at the end of the week, but it's a

day where, third time is the charm, U.S. regulators are set to greenlight a third vaccine, J&J's one shot version as soon as today.

Meanwhile, the House as I've mentioned set to vote on the third big COVID aid bill with minimum wage sized caveat and we'll discuss all of the

details on that.

Now, speaking of threes, we have a trifecta of guests coming up, too. The founder of Fisker electric cars on his company's first earnings since

snagging a SPAC. We will explain reporting. The CEO of Hasbro on life beyond toys and from potato shaped to a little pear shaped. The debate over

the future of Mr. Potato Head.

Plus, when stocks get -- as I've described mashed -- who better than stock market bull, Brian Belski to talk us through his thoughts.

Now, U.S. futures are trying to push higher, but we have been well and truly yo-yoing premarket. Lots of volatility after yesterday's bond market-

triggered selloff. The NASDAQ actually fell some 3.5 percent. That was the worst day of trade on that market since October of last year. It is now

down around seven percent from its most recent highs and closer to of course, to a 10 percent correction territory level.

Good news though for now, bond yields are lower today. This after the U.S. 10-year bond yield spiked past 1.6 percent on Thursday. Still, of course,

historically low levels, but the speed of the move that we have seen over the past few weeks matters, and a number of Fed members repeating Fed Chair

Jay Powell's stance that this is a healthy thing, it reflects rising growth expectations.

But we do see yields on the rise globally as investors begin pricing in that post pandemic scenario and we are seeing digestion issues all over the

world, too, including as you can see across some EM nations, too.

Asia shares taking their biggest drop in some nine months. The Nikkei and the Hang Seng ending the week down almost four percent.

As always, lots to discuss, and who better than to discuss it with Christine Romans. Christine great to have you with us and Happy Friday.

There is just a lot for investors to digest here. Historically low levels of bond yields, but oh, boy, they've moved quickly and a lot of people

going -- do you think is Jay Powell too calm about recovery? Too calm about inflation risks going forward, too?

CHRISTINE ROMANS, CNN BUSINESS CHIEF BUSINESS CORRESPONDENT: It's a reminder also, the bond market is the boss. We talk about stocks until cows

come home, but the bond market is the boss. That is the big global market, the oxygen in the system, and the bond market, the yield on the 10-year in

particular, what you saw in the intermediate part of the belly of the yield, sort of interesting here how quickly that move happened.

There are plenty of people who say this is just kind of a return to normalcy. I mean, you are right, these levels are still very, very low, but

the speed of that move caught a lot of people by surprise especially when you are starting to see some signs in the economy that there is a

strengthening.

Now, I was curious that yesterday, it was curious that yesterday, so many people were saying an improving jobless claims picture was the impetus for

yesterday's moves.

I don't know about that. There are still very high levels of jobless claims in this country and bad weather could have held back claims for last week.

But the idea here, the narrative is the economy will strengthen later this year and maybe it has the potential to strengthen more quickly than Federal

Reserve officials and central bankers think and that could spark inflation.

So, on the one hand, we have this better picture of growth, which is something we would like to see; on the other hand, will that growth spark

inflation.

CHATTERLEY: Yes, and we just have to watch this space. Christine, stay with us because much of this as we've discussed fueled by financial aid,

and the knowledge that another bill is coming swiftly, though, it looks like a $15.00 minimum wage won't make it into the final COVID relief

legislation.

I want to bring in John Harwood, too, so we can have a group discussion.

Christine, just begin by explaining why this was so important and what it means in the United States at this moment?

[09:05:01]

ROMANS: Well, look, the minimum wage is the bare minimum. And I would say the bare moral minimum that the Federal government says you can pay your

workers. At $7.25 an hour, you can't live on that, you just can't.

And states have already been acknowledging that and raising their minimum rages, voters in those states.

The Federal government was talking about -- the Congress was talking about raising it to $15.00 over a period of years, until 2025. Even at $15.00,

even at $15.00 you guys, that doesn't match the livable wage in just about any place I can find in the United States. $15.00 is still the bare minimum

floor for survival here.

And I think that's really important. You know, you hear people talk about, oh, well, if you are in New York, you know the minimum wage to be higher

than if you are in Kansas. That's true. $15.00 would still be the bare minimum for those places.

This is one estimate here. Look at what you would need to cover the basic cost of living. The living wage in all of these places, still way above

$15.00.

CHATTERLEY: Yes, that perspective is so important. John, the irony here is even with the Democrats in charge of the House with that slim, slim

majority in the Senate, taking this out of the final bill will make it more likely that the bill passes.

JOHN HARWOOD, CNN WHITE HOUSE CORRESPONDENT: That's true, although, Julia, I think the bill was going to pass, this $1.9 trillion COVID Relief Bill

was going to pass either way, had the $15.00 minimum wage stayed in the bill, there would have been a lot of pressure on those holdout moderate

Democrats, Sinema and Manchin to go along and not sink President Biden's first big legislative priority.

That being the case, now, there is not going to be a debate or they are not going to have to put that kind of pressure on that issue on them.

This is likely to pass the House on a party line vote tonight, and it is on a pretty fast track to move in the Senate. They expect to get it on

President Biden's desk by mid-March.

One added bit of perspective though on the minimum wage. First of all, there is the possibility moving forward of a deal with Republicans, which

is the way it was raised the last time in 2007, some kind of combination of business tax breaks for Republicans in return for an increase in minimum

wage. That is a possibility.

The second, if such a deal cannot be reached is, there is going to be added pressure to get rid of the filibuster, which is then what forced the

minimum wage into this fast track package under special budget rules. If you get rid the filibuster, you don't need to move it under special budget

rules.

And one final big of perspective, and Christine alluded to this before, most Americans now live in states where the minimum wage is so $10.00 an

hour or higher. There was a Democratic economist who did analysis in 2019 who said the average effective minimum wage in the United States was about

at that time, $11.80 because of those State and local minimum wage increases that Christine referred to.

Of course, in more conservative states, the $7.25 minimum wage remains, but it is higher than that for most Americans right now.

CHATTERLEY: You know what breaks my heart, John, is what you said at the beginning, where you said actually, it could have passed anyway. There were

potential options here where we could have been a debate and we could have done something.

And as important as it is, and I think your context is vitally important that actually a lot of people are being paid more than what the current

minimum is, and hasn't changed for many years, what is the living wage this the United States? And I think we have to keep coming back to that because,

it does feel like a missed opportunity even, John, to your point, if we do come back to this in a year maybe months, whatever it is and try and do and

tackle this again. Christine, a missed opportunity?

ROMANS: You know, look, it is a tradeoff that lawmakers have to make. And the tradeoff is between potentially ruining some small businesses, right,

but lifting 900,000 people out of poverty and giving 27 million people a raise.

What is the tradeoff that lawmakers want to make? The way I see it, the fastest way to elevate the working poor is to pay them more for the work

that they are doing.

And let's be honest here, the taxpayer subsidizes this, right, with food stamps and the earned income credit. You, as the taxpayer in the United

States, you are helping to make sure that these people who are working for so little can survive because employers don't pay them more. So that's

another part of this whole picture.

The taxpayer really is a stake holder in the minimum wage, not just workers and businesses.

CHATTERLEY: And we also argue, subsidizing corporations as well and their profitability. John, come in.

HARWOOD: I just wanted to add to what -- the point Christine just made about earned income tax credit. Let's not forget what is in -- what remains

in this COVID Relief Bill at $1.9 trillion.

First of all, $1,400.00 checks per person. That's a lot of money for low income families. There is a wage -- an earnings cutoff for that, but people

below -- people who are making low wages in the United States are going to get those checks.

Secondly, very large increase in the child tax credit. So everyone with a child under six, a low-income parent will get a $300.00 monthly check for

each child.

ROMANS: Critical.

[09:10:07]

HARWOOD: Third, there is an increase in tax credit for childcare. That is a substantial amount of money being put in the pockets of low income

families. And there is also an increase in the earned income tax credit for adults who do not have children.

So there are many ways in which this bill provide much larger and more immediate assistance to low-wage families than that phased-in minimum wage

would have provided.

ROMANS: And can I say "The Wall Street Journal" --

CHATTERLEY: For how long?

ROMANS: In "The Wall Street Journal" this morning, there is an op-ed with Stephen Moore and some other folks saying that that's welfare reform in

reverse. So you are already starting to see those other provisions being pushed back from the right as well.

CHATTERLEY: I've read it, too. John, how long do these things last?

HARWOOD: Well, the child tax credit and the childcare tax credit, the earned income tax credit increase are all temporary provisions of this

COVID bill lasting either one or two years.

What we expect, however, is that in the follow-on legislation that will be provided with infrastructure, that is also going to move under fast track

budget rules, Democrats are likely to try to make permanent these benefits.

Progressive Democrats think these are vital to rebalancing the American economy and narrowing to some degree the income inequality that

characterizes the 21st Century American economy. So that is a follow-on legislation.

This is the first step in the COVID Relief Bill. They are hoping to take the second step in the next couple of months with that next piece of

legislation.

CHATTERLEY: Yes. First step, more steps required. I know Christine Romans stands, too, so I don't even need to ask you. Thank you for your balance,

John.

Guys, thank you so much. Great to chat with you as always.

ROMANS: Bye.

CHATTERLEY: Christine Romans, John Harwood there. There you.

All right, prepare for the recovery rotation. Lockdown winners could become post pandemic losers as the examples of DoorDash and Airbnb perhaps

suggest.

Paul La Monica joins me now. Paul, interesting numbers. Both went public around the same time. Both set of earnings that we've seen from both of

them, Airbnb looking forward and saying, hey, there is going to be a travel recovery. DoorDash saying, looking we made hay while the sun shone, kind

of, during the pandemic, but it could be more challenging going forward.

PAUL LA MONICA, CNN BUSINESS REPORTER: Yes, exactly, Julia. I mean, both companies are losing money, but I think investors are more forgiving of

Airbnb right now, because, as you pointed out, the hope is that as people start to travel again, with more people getting vaccinated and the hopes of

COVID-19 as an economic depressor, if you will, fading, you will have increased business for Airbnb and other companies in the travel industry.

But with DoorDash, that could be bad news because you might have people looking to go back to restaurants, people looking to eat out more and not

eat in as much because we have all this kind of pent up demand to just get back outside after this year of being locked in and shut down.

So that could be bad news for DoorDash, and you know, DoorDash obviously has a lot of competition as well. Uber is getting more aggressive in the

food delivery area. You still have Grub Hub now owned by Just Eat takeaway. So, I think it is going to be challenging for DoorDash.

CHATTERLEY: Though, I have to tell you, I have a sparkling clean oven, I don't think I've cooked actually in the last 12 months, it could even be

longer.

Paul, I am a huge fan of the gig economy, all different forms. But if I take a step back and you said it in your first sentence, the losses.

DoorDash's losses grew, $212 million in the quarter. Airbnb, $3.9 billion lost in the fourth quarter.

For all the benefits of the gig economy, I look at these losses, and I go, does this business model, in whatever shape or form, work?

LA MONICA: Yes, I mean, obviously, Airbnb is spending heavily on marketing and that may increase because they have, you know a tough competitor in

VRBO, owned by Expedia, which is really starting to gain traction.

I think, though, with DoorDash, people are looking at potentially more challenge because gig economy workers are in many respects trying to demand

more worker rights.

We have seen with California Prop 22 was a victory for companies like Uber and DoorDash and Lyft, that they are still being able to treat their

employees as independent contractors, but a lot of those employees will increasingly want more benefits just like we are seeing with Instacart as

well.

CHATTERLEY: Yes, the challenges are only going to grow. Paul La Monica, thank you so much for that.

All right, let me bring you up to speed now with some of the other stories making headlines around the world.

Syria is now confirming U.S. Military airstrikes in the eastern part of the country. The target was a site used by Iranian-backed militia and the

strikes were in retaliation for recent rocket attacks on American forces in Iraq.

[09:15:10]

CHATTERLEY: It was the first known time Joe Biden has taken military action as President.

Hong Kong and South Korea have both begun their COVID-19 immunization programs. South Korea administered its first shots today to people at long-

term care facilities. Hong Kong also kicked off its vaccination program offering free vaccinations to all residents. CNN's Kristie Lu Stout has

more on their rollout.

(BEGIN VIDEOTAPE)

KRISTIE LU STOUT, CNN CORRESPONDENT (on camera): This is the very first day of Hong Kong's COVID-19 vaccine rollout, and it is China's Sinovac

vaccine that is being offered at first.

I am standing outside one of five vaccine centers across the territory that are offering the Sinovac jab, 70,000 people have already signed up. The

slots are fully booked for the text two weeks.

The World Health Organization has yet to approve the Sinovac vaccine, but it has been approved by authorities here in Hong Kong for emergency use.

Priority will be given to caregivers and healthcare workers, as well as individuals over the age of 60 and cross border transport workers like

pilots and drivers.

Earlier, we spoke to a number of people who have taken the vaccine and they have no reservations about its effectiveness or safety.

UNIDENTIFIED FEMALE: No, not at all, because they test it at least to see on our own races. Yes, they test it on Chinese people. We have similar

physical bodies, so I am quite -- I am very confident.

STOUT: A recent survey by the University of Hong Kong found that less than 30 percent of people questioned would accept China's Sinovac vaccine.

In order to boost vaccine confidence, Hong Kong's top leader, Carrie Lam took the Sinovac vaccine earlier this week in a live televised event.

Citing increased demand for the vaccine, the Hong Kong government has said that it will open up an additional 200,000 slots on Monday.

Kristie Lu Stout, CNN, Hong Kong.

(END VIDEOTAPE)

CHATTERLEY: The Russian Embassy says eight of its staff members in Pyongyang had to take extreme measures to return home because of North

Korea's strict COVID lockdown.

After a 34-hour train and bus trip, they finally reached the Russian border on foot using a hand pushed rail trolley loaded with luggage. Wow.

All right, still to come, on FIRST MOVE, toy story. How simple rebrand fried Hasbro's strategy update.

And sparking speculation, Apple supplier, Foxconn and EV startup Fisker announce they are teaming up on a new car. That's is all next. Stay with

us.

(COMMERCIAL BREAK)

[09:20:39]

CHATTERLEY: Welcome back to FIRST MOVE live from New York where tech stocks look set for a bounce after the 3.5 percent losses the NASDAQ

suffered yesterday. Chalk it up perhaps to a pull back or stabilization in bond yield at least in this session.

A lot of the popular Reddit names under pressure though, GameStop is up 15 percent premarket, but others are headed for Friday losses. Though

Redditeers may be ready to run their gains soon. Take a look at this.

Deutsche Bank projecting that some $170 billion could be pouring back into equities once new -- the new U.S. aid bill is passed. More than 35 percent

of retail investors surveyed plan to spend a quarter of their stimulus checks into equities. Wow.

Brian Belski joins us now. He is the Managing Director and Chief Market Strategist at BMO Capital Markets. Brian, great to have you with us. Happy

Friday.

What do you see going on in the markets? This sort of tradeoff between what we are seeing in stocks and the rising bond yields.

BRIAN BELSKI, MANAGING DIRECTOR AND CHIEF INVESTMENT STRATEGIST, BMO CAPITAL MARKETS: Wonderful to see you. Thank you so much for having us. We

will gladly accept some of that $150 billion back into equities, quite frankly.

You know, this has been a bull market that we have been calling since 2010 and we still think it is in place, Julia. It's a misunderstood bull in

several phases.

I think now, what's gone on in the last couple of weeks quite frankly is once again another overreaction, something that I think investors should

not be surprised about with this momentum in rotation and emotion and rhetoric-driven type trading and strategy, Julia, you have to kind of take

two steps back and remember that interest rates tick up because the economy is improving.

And that is our house call at BMO Financial Group. It is our call with respect to investment strategy and how we are running client portfolios,

and with respect to our investment strategy and research, we are positioned accordingly for the next 12 to 18 months.

However, I think the biggest "fallacy," quote-unquote, with respect to this whole interest rate scenario is that stocks actually go up when interest

rates increase, especially when we are coming off such tremendous lows in interest rates.

And again, I think it is a sign that the economy is improving, the fundamentals are improving and investors should be overweight we believe

equities over all asset classes right now.

CHATTERLEY: So, what you are saying is, don't look at rising bond yields. Even the magnitude of the move, relative to where they were before is big

and it is been quite quick. I think we have to bear that in mind when we see the reaction that we are seeing from stock market investors.

But you are saying look, when it is good news, when it is recovery, when it is economic growth, rising bond yields can be positive for stocks?

BELSKI: So, here is -- here would be my retort, I'm sorry. If 2020 taught us anything, it was unprecedented price performance in the stock market in

both directions. If 2021 is going to tell us anything, we are going to see unprecedented earnings growth and list that into what is happening in

interest rates.

Clearly, interest rates in the 10-year Treasury was not going to stay below 50 basis points forever. And on a relative basis, you are absolutely right.

You can do the math. The law of small numbers makes that look very big. But from a duration standpoint, you have to kind of again take two steps back

and look at if you include the financial crisis --

If you include the financial crisis, Julia, the average 10-year Treasury in the United States of America since 1953 is 5.7 percent.

If you don't include it, it's 6.3 percent. That's perspective.

And so, we believe that the Fed is doing the right job. It is continuing to monitor employment, and until unemployment claims drop precipitously, we

are not going to see real inflation in the United States for several more quarters, if not years.

CHATTERLEY: You can understand, though why investors are pushing back a bit here on Fed policy and Jay Powell saying, look, we are going to focus

on jobs and we are going to inflation and it is okay perhaps if stock markets continue to go up.

Because to your exact point, bond markets -- sorry, yields are so incredibly low relative to the past, there is a -- it makes sense for them

to call into question what the Fed is saying in the face of yet more stimulus, the recovery that we are seeing, the speed at which we are

recovering, vaccines. You understand why they are sort of challenging him.

BELSKI: That's exactly right. And I think when the calendar turned to 2021, people thought the return to normalcy is on. And we cautioned people

when we put out our forecast in November of 2020 saying that 2021 is not going to be this return to normalcy.

And I think people's fears in the market, quite frankly is because they missed the moves in the market in 2019 and 2020 and they are blaming tech

stocks.

We still think tech stocks from a longer term perspective should be accumulated, should be a core part of your portfolio, and so don't be

selling your Apple and Amazon and Google here. In fact, you should be shoring up your positions on these weaknesses.

[09:25:32]

CHATTERLEY: So, buy on dips?

BELSKI: Yes. I mean, I think, at the end of the day, you want to be diversified and be more of a stock picker and not rely on the overall

indexes, but really employ themes and fundamentals research. Bottoms up stock picking is back.

CHATTERLEY: And Brian, what are you telling investors about the meme stocks and about Bitcoin? Because everybody is talking about digital

currencies right now. Have I missed the boat? Should I get in? What on Earth are these things? What are you saying to investors?

BELSKI: Wonderful question. We would say this, we don't believe that Bitcoin should be part of your longer term asset allocation. It should be

in a separate account, Julia.

And any time you sign up for an investment account with a wealth management professional who tells you, be prepared to lose money. And you have to,

when you invest, be prepared that you're actually going to potentially lose money.

And I don't think people that are buying Bitcoin right now are prepared to lose money. It is a supply demand quotient. I am fearful that it doesn't

have a tangle fundamental value.

So, place it in another account that say, if you have a thousand dollars and you don't mind losing that thousand dollars because given the momentum

in the supply and demand equation, what's going on in Bitcoin, I fear that it is more about momentum and tactics and trading versus fundamentals right

now in Bitcoin.

CHATTERLEY: Very quickly, Brian, do you still think that Bitcoin for example, could go down to zero, based on what you just said?

BELSKI: Well, this is perspective, go back and look at 2017 and 2018. When the bids drop, the price goes down.

And so whether or not it goes to zero -- it is not a zero or $50,000.00 type of price. Any time that you are focusing more on a price of an

instrument, whether or not it is a stock bond or Bitcoin, for instance, focus on what it is saying fundamentally.

And I think that's why it is so hard for investors to kind of grapple what to do with Bitcoin.

CHATTERLEY: Yes, yes. The economic basis, the fundamentals here, we have still got to get on top of.

Brian, always a pleasure. Thank you so much for joining us on the show. Brian Belski there from BMO Capital Markets.

The market open is next.

(COMMERCIAL BREAK)

[09:30:40]

CHATTERLEY: Welcome back to FIRST MOVE and U.S. stocks are up and running on both the last trading day of the week and for the month of February, of

course, too.

Next week, we march forth. We have got to get through today first. Futures searching for direction premarket. Tech is higher though as we've discussed

after yesterday's selloff. Investors trying to factor in, I think, hopes of stronger economies on the one hand, while at the same time trying to price

in the implications of higher bond yields and at what point they pressure stock performance.

Fresh volatility, too, in Bitcoin. The leading cryptocurrency on track for its worst weekly drop in almost a year. Losses today too for rivals Ether,

XRP and Litecoin. Litecoin, you can see down almost nine percent.

All right now to Hasbro and their transformation into a digital entertainment powerhouse. But first, we need to talk about this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Hey, it's Hasbro. Hasbro makes toys. What's new, Hasbro?

UNIDENTIFIED MALE: Mr. and Mrs. Potato Head with their own cars and trailers. That's what's new.

(END VIDEO CLIP)

CHATTERLEY: Oh, yes, we are going there. There has been quite a storm after some elements of their media reported Mr. Potato Head was being

cancelled with the "mister" being dropped from packaging.

Well, Hasbro has confirmed, although it could be branded Potato Head, as you can see, you can still buy a Mr. or a Mrs. Potato head. So don't panic.

Brian Goldner is Chairman and CEO of Hasbro and joins us now. Wow, Brian, I did not anticipate this being where we started this conversation, but I do

think we have to talk about it.

A PR problem or PR perfection, quite frankly, because everyone is talking about Potato Head -- Mister and Missus.

BRIAN GOLDNER, CHAIRMAN AND CEO, HASBRO: You know, Potato Head has been a part of our company, Hasbro, and a part of childhood, Mr. and Mrs. Potato

Head since the 1950s, and Mr. and Mrs. Potato Head are not going anywhere. They are still a prominent part of the brand they are still prominent in

kids' lives and thus, part of the play.

Our team is offering the rest of, and additional Potato Head family members. So that's really the push now. We hear from parents and kids they

want to expand on the creative play of the brand. So, yes, it is terrific to get this kind of publicity and people should know that Mr. and Mrs.

Potato Head are available and ready to come home and play with your family.

CHATTERLEY: Was this about gender neutrality, equality, inclusivity? Because it is right perhaps to make a statement.

GOLDNER: Yes, the idea --

CHATTERLEY: Yes.

GOLDNER: Yes, we are just talking about the idea that you are going to have as part of the Potato Head family, you can now have extended family

members. You can have lots of children and sisters and brothers. You can have uncles. You can have aunts. So, lots of different family members can

enter the scene if it is the entire Potato Head family.

CHATTERLEY: yes, perhaps in a more inclusive world, we wouldn't even be having this conversation, and that's something to think about, too, Brian.

Let's talk about the bigger strategy here which is what you're doing, you've broken down Hasbro into three different parts. We still have got the

powerful toys and the brands that we have got there. But you are also going to try and become a far bigger, I think, content creator. Talk to me about

that part of the business because this is incredibly exciting. You clearly have the intellectual property to play with here.

GOLDNER: Yes, all we wanted to do first and foremost, we have been building Wizards of the Coast gaming business for quite some time. We felt

that we wanted to give people a view to just the size of that business and the growth around wizards in digital.

And then you are right, we have a classic Hasbro consumer products business that includes both traditional toys and games, and then our consumer

products licensing. But about a year ago, we acquired Entertainment One, known as eOne, and we are really out to set a course to develop Hasbro IP

in storytelling.

We have more than 30 projects that are now being developed around Hasbro IP, everything from future "Transformers" movies to now "Dungeons and

Dragons" movie, live action "Dungeons and Dragons," television, a whole new approach to "Power Rangers" that includes a young adult TV series as well

as a future feature film.

A new season of completely reinvented "Power Rangers" for kids. "My Little Pony" animated feature film that comes out this fall that will be on

Netflix for their 200 million subscribers.

[09:35:08]

GOLDNER: So you're right, it is a complete reinvention, the opportunity to bring our brand to consumers around the world in very powerful

storytelling, and then connect that to gaming and to play patterns and consumer play and entertainment experiences.

CHATTERLEY: Yes, it is quite fascinating, isn't it, in an ever increasingly digital world, you are sort of pinpointing the areas that

people want the see, brands that we love, like "My Little Pony," like, Mr. Potato, in many way, "Transformers" is another one as you mentioned there,

but just taking those and monetizing them in different ways.

What do you see as being -- if we fast forward say five years, what do you see the breakdown of the profits being in terms of three business units?

What becomes core here?

Is it that you can provide content to the Netflixes, the Disney+ of this world or is this still a crucial part of toys and those brands that we

remember that will remain a part of Hasbro?

GOLDNER: Well, it is both of those things. You're exactly right. I mean, first and foremost, it is an opportunity and we are selling to every

platform. We have shows that will be going on the air on Amazon, a whole new live action "G.I. Joe" television series as well as to Netflix.

We talked about "My Little Pony," the feature film coming this fall and future TV series. So we will be developing our business there, and then of

course, it links to our consumer products business, and to bring play to people around the world in our gaming business, which is growing, you know,

really so rapidly. People are really engaged with our brands, and we are really seeing that growth around the world.

So our opportunity is to recognize that people increasingly are going to be buying products in a digital setting. Our e-commerce business just went

past $1 billion. We expect that e-commerce and omnichannel selling to be as much as 50 percent of our revenues by 2025.

CHATTERLEY: Wow.

GOLDNER: We expect growth this year of double digits. We will see double digit growth from our Entertainment One business, double digit growth from

our Wizards Gaming business and we should see ahead of industry growth for our toy business, so mid to high single digits growth for the toys and

games business and consumer products.

So, again, coming off a year of COVID, we clearly were impacted. In the fourth quarter, we grew, and we saw our TV and film business grow 20

percent in the fourth quarter as we began to get back into productions.

As you know, for much of the year last year, TV productions, live action and film were closed while our animation production was able to continue.

CHATTERLEY: Yes, I mean, one of the jewels in the crown here is the master toy licenses for Marvel and for "Star Wars" of course, and you clearly

benefitted from Disney+ and accelerated viewers and people taking those descriptions.

I saw the "Star Wars" toys sales rose 70 percent year-over-year for you guys which is pretty phenomenal. I want to ask you a question --

GOLDNER: Yes, "The Mandalorian" had been, you know -- oh, sure, sorry.

CHATTERLEY: No, no, please, what were you going to say?

GOLDNER: I was just going to say "The Mandalorian" has proven that inflection point of people watching extreme content en masse, the

opportunity to eventize that and bring merchandising and innovation to life and creativity in the product lines, we are seeing that great success.

We also saw it with our "Transformers" brand. We had an adult oriented animation series on Netflix called "War for Cybertron," and the same thing.

The inflection point of so many people that wants watching these shows in the streaming format that we are able to activate that with global

retailers and bring that to life in play and collectability.

CHATTERLEY: Brian, I have been asking every CEO that comes on this show their views on digital currencies and bringing perhaps a piece of the cash

that they've got on their balance sheet and investing in Bitcoin a la Tesla.

In your case, I am going to ask you if one day, I will be able to buy a Mr. Potato Head or a Baby Yoda in Bitcoin. What's your view?

GOLDNER: I think, I imagine, at some point people will be able to buy that. We are not going to put Bitcoin up on our balance sheet at any point

in the near future as we see it. We also are very happy to have $1.7 billion of cash on our balance sheet and we like that an awful lot.

CHATTERLEY: Nice opportunity to sell that point, too, Brian. Great to have you on the show. Thank you so much. Fascinating to chat with you.

GOLDNER: Thank you, Julia.

CHATTERLEY: Brian Goldner, Chairman and CEO of Hasbro there.

All right, up next, shock announcement, we get the latest on Foxconn and Frisker's electric vehicle deal. Stay with us.

(COMMERCIAL BREAK)

[09:42:46]

CHATTERLEY: Welcome back to FIRST MOVE. Electric vehicle startup, Fisker and Apple partner, Foxconn are teaming up to develop an electric car.

Production is later to begin in late 2023, but details are pretty scarce. Fisker's CEO says quote, "This vehicle is so revolutionary that we have to

keep it a secret until the launch in end of 2023. It might be too futuristic for some."

The vehicle would be Fisker's second. Its first model is the Ocean, which is due to go on into production in late 2022.

Joining us now, Henrik Fisker, CEO and founder and Chairman of Fisker. Great to have you with us. Henrik, I can cope with the details. It will not

be too futuristic for me. Tell me about it. What can you tell us?

HENRIK FISKER, CEO, FOUNDER AND CHAIRMAN, FISKER: Hi, good morning, Julia, or good afternoon.

Yes, you know, the idea with this vehicle is really to revolutionize the automotive industry and think completely different. You know, the vehicles

we drive today was really, you know, fundamentally designed 50 years ago.

You know, we haven't really changed the fundamental proportions or the way a vehicle works for at least 50 years.

So, the idea here is really to find out what is the vehicle of the future going to look like, and specifically for people living in urban areas,

people who use the vehicle for commuting, how does that vehicle really look? How can we create a vehicle which actually goes across social

borders?

Because today, the automotive industry has kind of boxed themselves into a segmentation, so when you see a vehicle coming out, it is always like,

well, it fits in this segment, so if you are an accountant with this salary, you buy this vehicle. We are trying to get out of that box.

An example of vehicles that kind of have broken that in the past would be the original Volkswagen Beetle or the Mini Cooper, which were bought by

celebrities, photo models, pop stars, normal people, and that's the kind of the type of vehicle we want to create together with Foxconn.

And Foxconn of course, have some experience in creating revolution together with other companies.

CHATTERLEY: I was going to ask you that. Is that the point with Foxconn there? And actually, you don't have a car yet, but you are going to produce

one, you're going to make one with Foxconn, and we are still in the design process?

FISKER: Yes, you know, the idea here is that Foxconn is the biggest manufacturer in the world. They have one of the biggest supply chains in

the world, and they start on a clean sheet of piece of paper like we do.

[09:45:10]

FISKER: We really want to try to innovate. So we don't want to take anything from the past with us. We are going to go completely new on this

one.

Of course, our Fisker Ocean is coming out next year, which is our first vehicle which we did together with Magna, which is getting produced in

Europe. But this vehicle is going to be a completely different type, almost like a mobility device that we really want to be able to -- for everybody

to buy. It doesn't matter where you are on the social ladder, it doesn't matter what your income is. This should just be a vehicle that is perfect

for urban living and commuting.

And you know, Foxconn, they are going to take the approach where they are going to go out and see how can we make efficiency -- how can we take cost

out of the supply chain and out of manufacturing so I can get to do a premium design, and get this vehicle on the market for a very low cost,

much lower cost than the Fisker Ocean.

CHATTERLEY: I hear what you are saying, but I am going to ask the same question in a different way. You mentioned a clean sheet of paper. Is the

sheet of paper clean at this stage? So you've announced the car is coming and it is going to be super exciting, but there just isn't a car yet, nor

have we designed it?

FISKER: No, I have already -- so I have already designed the car. So, I have already designed it.

CHATTERLEY: So there is a car.

FISKER: Yes, absolutely it's designed. It's there. It's already there.

CHATTERLEY: Okay. Good. I just wanted to make sure there was a car that was coming, which is great. Are you in talks with Apple to potentially

produce with Foxconn the Apple car? Because there have been all sorts of rumors about this. Can you confirm or deny?

FISKER: You know, I don't know anything about Apple or their car. You know, they are very secretive about it, too. So I don't know anything about

what they are doing.

We are working with Foxconn, and you know, Foxconn is an independent manufacturer and supply chain master, I would say. And you know, we are

making a vehicle that ultimately I got inspired by the Big Tech companies like Sony and Apple thinking about making a car, and I actually started

designing it that with that in mind and it kind of gave me a lot of new ideas of what could a car look like if it came from a tech company rather

than a car company. That's how it came about.

I talked to the Chairman of Foxconn, Young, and we just said, why don't we do this? Why don't we make this vehicle that is so different, so unique --

and that's kind of how the project came about.

CHATTERLEY: Talk to me about target audience and to exactly your point, I think about creating something unique and it being a tech company rather

than a car company.

The Lucid CEO said to me this week, right now, this is just a one-horse race, and this is Tesla. Where does Fisker stand relative to Tesla? Are you

going to put together on the market there that a Tesla driver now wouldn't go, oh, I will buy this instead because it is so different, it is an

entirely different marketplace you are targeting?

FISKER: So you know, if you think about the global market of automobiles, yearly, we produce about probably close to 80 million vehicles and only

about two million of those are electric vehicles right now, and less than half a million of those are Tesla.

So you know, we don't really just go after Tesla customers because that wouldn't be enough of a market for us. We are planning to sell 250,000 of

these vehicles together with Foxconn.

The real market is actually getting people out of the gasoline car and into this car.

CHATTERLEY: Yes.

FISKER: And I think that takes a different approach. You know, I think a lot of people now and in the future, fortunately or unfortunately, have

less emotions about cars. And I think they want sustainable, clean cars.

You know, our Fisker Ocean is going to be the most sustainable vehicle in the world, so will this vehicle. That's part of our brand pillars.

So, this vehicle will really be aimed at people who is ready to take the step into the future with us, and it is going to look nothing like a Tesla

or any other vehicle currently in the market, it is not going to fit into any market segment. It will be priced below $30,000.00, which by the way,

you are the first one I told that to.

CHATTERLEY: That's the key.

FISKER: So it is going to be an affordable vehicle, you know, for everybody, almost.

CHATTERLEY: Yes, if you are going for that bigger audience, the mass market audience, then the price is key. And thank you for giving us the

scoop on the price. And I await the details of the actual car.

Henrik, it is always a pleasure. Thank you so much, Henrik Fisker, CEO and founder and Chairman of Fisker, always great to chat. Thank you. We are

back after this.

(COMMERCIAL BREAK)

[09:51:49]

CHATTERLEY: For 58 seasons, Alex Trebek hosted the American game show, "Jeopardy," until his passing last November at the age of 80.

In an inspiring tribute, his family have donated a large portion of his wardrobe to charity. The Doe Fund helps underserved Americans find work and

training and received some of his suit collection along with shirts, sweaters, and more.

I spoke to Alex's son, Matthew, about this wonderful gesture.

(BEGIN VIDEOTAPE)

ANNOUNCER: Here is the host of "Jeopardy," Alex Trebek.

MATTHEW TREBEK, SON OF ALEX TREBEK: My dad was very down to earth, very hardworking. You know, he was a pretty -- I guess, he stayed pretty

private.

If he wasn't working at "Jeopardy" or doing other things, he was usually at home doing a lot of handyman stuff around the house.

So he would always have a different project that he was working on, and you know, fixing various things.

ALEX TREBEK, HOST OF JEOPARDY: Response. Did you come up with the right one? No. What is, we love you Alex? That's very kind of you. Thank you.

Cost you $19.95. You are left with five bucks. Okay.

CHATTERLEY: Talk to me about the decision to donate some of his clothes and why the charity that you chose is so important.

M. TREBEK: So, after my dad's passing, I spoke to Rocky, who is one of the producers and one of my dad's best friends. We were talking about what

could be a good option to do with all the suits, and the Doe Fund really just instantly kind of came to mind.

CHATTERLEY: This is an organization that provides clothes to individuals who have been formerly in prison. In many cases, they have never worked in

the legal economy before. Now, they are going for job interviews.

And actually, just being able to give them a suit, a tie, a shirt, never mind one that's been owned by your father, perhaps makes all the difference

in terms of confidence in going into that interview.

M. TREBEK: absolutely. So, like as you said, getting guys back on their feet, being put into, you know, various programs, whether it be culinary

for example. I think just having a suit and having, you know, kind of feeling a little bit better about themselves, knowing their past and

looking to make, you know, more -- different changes in their lives.

CHATTERLEY: Have you had any feedback from any of these that actually received an item of clothes?

M. TREBEK: Yes. Yes. It's all been positive, and everybody has been, you know, very excited. And I think it is been well received, which is, you

know, really good. And I think that my dad with feel really good about it as well.

CHATTERLEY: I want to talk about you as well, because you are a restauranteur. You are successful in your own right. Talk to me about what

the last year has been like, because for any restaurant operating in New York City, it has been a huge challenge.

M. TREBEK: Yes. It's been just that. But it's been a lot of -- you know, a lot of ups and downs, a lot of learning how to be flexible with change, and

you know, kind of taking whatever is being thrown at us right now and just trying to push through and, you know, seeing the light at the end of the

tunnel.

[09:55:14]

A. TREBEK: Today, "Jeopardy" begins its 36th season on the air and I am happy to report, I am still here.

CHATTERLEY: Did you grow up watching game shows? Did you watch your father on TV?

M. TREBEK: Yes. I definitely watched him on TV. I don't think I would say that I watched a lot of game shows, but --

CHATTERLEY: I was going to ask you whether "Jeopardy" was our favorite game show or whether you would just say it was.

M. TREBEK: I think "Jeopardy" would be my favorite game show.

A. TREBEK: So long, everybody. So long, everyone. So long, everybody.

(END VIDEOTAPE)

CHATTERLEY: The legacy lives on, a beautiful gesture, I thought.

All right, that's it for the show. If you've missed any of our interviews today, they will be on my Twitter and Instagram pages. You can search for

@jchatterleyCNN.

That's it for us. Stay safe this weekend. "Connect the World" with Becky Anderson is next.

(COMMERCIAL BREAK)

[10:00:00]

END