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First Move with Julia Chatterley
Hundreds Injured in Clashes in Jerusalem; U.S. Oil Supplies Disrupted after Cyberattack; Dogecoin, the Cryptocurrency Tumbles after Musk Makes Jokes. Aired 9-10a ET
Aired May 10, 2021 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:27]
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Live from New York, I'm Alison Kosik, I'm in for Julia Chatterley today. This is FIRST MOVE and here is
your need to know.
Rising tensions. Hundreds injured in clashes in Jerusalem.
Pipeline hack. U.S. oil supplies disrupted after a cyberattack.
And Doge dive. The cryptocurrency tumbles after Musk makes jokes.
It's Monday, let's make a move.
ANNOUNCER: This is CNN Breaking News.
KOSIK: We begin with breaking news. Tensions in Jerusalem are high at this hour following weeks of clashes between Israeli Police and Palestinians
fighting from over the weekend, it spilled into today as the city prepares for its annual Jerusalem Day March.
One flashpoint for the unrest: the possible evictions of some Palestinian families from their homes.
CNN's Hadas Gold joins me now live from Jerusalem. So this is, I think, the third straight day of violence, some of the worst that we have seen.
HADAS GOLD, CNN CORRESPONDENT: Yes, Alison, it is definitely some of the highest levels of tension that Jerusalem has seen in several years, more
than 300 Palestinians and nine Israeli police officers were injured in clashes at the Al-Aqsa Compound earlier today, the third straight day of
violence in a city that is just absolutely boiling with tension.
We're seeing multiple videos from the Al-Aqsa Compound showing stun grenades being launched into the Al-Aqsa mosque itself as well as
Palestinians throwing rocks and other items at the police officers there.
And tensions have been mounting in Jerusalem for weeks. These are not the first clashes we've seen in the last several weeks, but a flashpoint has
definitely been what you mentioned, which is the possible eviction of some Palestinian families, some of which have been living there for generations
in a neighborhood called Sheikh Jarrah in East Jerusalem.
In a Supreme Court hearing that was supposed to take place on those possible evictions was postponed. It was supposed to take place today, but
it was postponed and though it's been calm here for the past few hours since those clashes earlier today, officials are very concerned for what
can happen later today, because Israelis are starting to gather for the March of Jerusalem Day, what is known here as Jerusalem Day, it is the day
that Israel marks when it took control of the western wall, and we're expecting tens of thousands of Israelis to march through the old city of
Jerusalem.
And though police announced that they will not allow Jews to go to the temple mount, what is also known as Haram esh-Sharif or the Noble
Sanctuary, a place sacred to both Jews and Muslims, police say they will not allow Jews to go there.
There is still a lot of concern of what can happen during this march because we are expecting that they will be walking through some of the
Muslim parts of the Old City.
Now, there have been concerns, condemnation statements rolling in from around the world, countries around the world, as well as places like the
United Nations, the European Union and even the Pope about what's going on here in Jerusalem.
We know that the White House national security adviser, Jake Sullivan spoke with his Israeli counterpart yesterday expressing concern over those
possible evictions in Sheikh Jarrah, as well as condemning some rockets that were launched from Gaza overnight.
But, Alison, Jerusalem is just incredibly tense today and it really feels like we are standing on the edge of some sort of eruption.
KOSIK: Politically, Hadas, what are the wider implications of this, especially with Netanyahu's efforts to form his own government, or form a
new government, rather? Could an election sort of -- a fifth election be coming?
GOLD: Well, Netanyahu had to hand back the mandate to form a new government. It was given to Yair Lapid, who is the leader of a centrist
party who is currently trying -- he is in negotiations, especially with the leader of a small right wing party called, Naftali Bennett, and a source
close to the negotiations does tell me that they are optimistic they will be able to form a government within the next week or two.
And although those negotiations are ongoing and we may see some developments on that soon, without question, the tension, the violence that
has been taking place in Jerusalem is completely overshadowing the political discussion that is taking place right now.
Like I said, officials are very concerned over what these next few hours could bring as this march is expected to take place.
KOSIK: Okay, well, thank you for keeping us posted on everything. Stay safe out there and come back to us if you have any future developments.
Hadas Gold, thanks very much.
All right, let's get right to our top business stories. U.S. stocks look set for a mixed start to the trading week and with the Dow and the S&P 500
on track to hit fresh records.
The major averages rallied on Friday despite the disappointing April U.S. employment report, which showed just 266,000 new jobs added to the economy
last month.
Investors believe the Fed might wait longer to pull monetary support if economic data continues to point to an uneven recovery.
[09:05:23]
KOSIK: It's a lower start to Europe's trading week with stocks at still low records there. Asia closed mostly higher, but Chinese tech names like
Alibaba fell. Beijing has announced new moves to curb the power of its tech giants by banning some mobile app notifications.
Let's get right to our drivers. Oil prices are climbing as one of the largest pipelines in the U.S. remains offline following a cyberattack. The
Colonial Pipeline supplies 45 percent of the U.S. East Coast fuel. That's according to its operator.
A source tells CNN that a criminal group originating in Russia is believed to be behind the hack. Matt Egan joins me live now. So, we are seeing
prices in the oil market move higher, but the impact overall is a little limited, but we know how supply and demand works. It's not expected to
remain limited for long if this continues much longer.
MATT EGAN, CNN BUSINESS SENIOR WRITER: Yes, that's right, Alison. The big question, of course, is timing. The longer this lasts, the bigger the
impact will be on consumers, on businesses, and the economy at large.
And to your point, this cyberattack is impacting one of, if not the most, important pipeline in the entire country. The Colonial Pipeline delivers
nearly half of all the diesel and gasoline to the East Coast, and it is delivering it to the northeast, which is the least energy-independent part
of the entire country.
Now, gasoline prices, they stand at $2.97 a gallon in the United States. That's up more than 60 percent from a year ago. American drivers haven't
faced $3.00 gas, which is a psychologically important level in seven years. We are seeing gasoline futures move up 1.5 percent this morning, and I want
to read you a key line from RBC Capital Markets. They are warning that "Depending upon the duration, the supply shock could leave the region with
widespread fuel shortages."
Now, the pipeline operator says that Sunday, its four main lines remained offline, but some of the smaller lines between the terminals and delivery
points, they are now operational. The Department of Transportation is also responding here. They've issued an emergency exemption that's going to let
truck drivers transporting gasoline, diesel and jet fuel work longer days.
Alison, the last point here is, you know, this is, of course, coming at a delicate moment for the world economy. A year ago, there was too much
supply of the stuff that makes the economy run because everything was shut down by this once in a century pandemic. But now that vaccinations have
picked up, travel restrictions are going away, we are seeing the economy boom and supply actually cannot keep up with demand. That's why we've seen
shortages of everything from steel to lumber, chlorine, and even workers.
And Alison, right now, we might even have to add gasoline to that list of shortages.
KOSIK: Oh, yes, it's interesting how the tables can turn so quickly. What more can you tell us about the group behind this hack?
EGAN: Well, we do know that it is a criminal group that originates in Russia and they are believed to be responsible for these attacks, and it is
believed to be a ransomware attack that has actually shut down production here.
But what I think is really important is kind of the big picture takeaways here. This is another reminder of how vulnerable our critical
infrastructure is, both to physical attacks, to weather events and to cyber.
I mean, think of it, just earlier this year, we had the deep freeze in Texas that caught people off guard. We had natural gas, coal and wind
facilities that were all shut down. Millions of people in Texas and the region were left in the dark. Tragically people died.
In 2019, there were the attacks on the Aramco facilities. That sent oil prices skyrocketing and it was only because they were able to get
production back on so quickly that prices actually came down.
And now, we have this incident as well, which is another reminder of how energy facilities, but also financial facilities like exchanges and banks,
they're all vulnerable to the cyber threat. And it feels like the world economy has kind of dodged some bullets here, and we have to hope that this
ends up being a short-term event here, but it is another reminder of the vulnerability here -- Alison.
KOSIK: Okay, Matt Egan, thanks for putting all of that in perspective for us. Thank you.
"To the moon or not?" The joke cryptocurrency Dogecoin is trying to recover from a big drop following Elon Musk's hosting of "Saturday Night Live," the
U.S. comedy show. He tweeted after the show that a SpaceX satellite mission to the moon next year is, quote, "paid for in Doge."
[09:10:12]
KOSIK: Earlier in this comments about the meme crypto asset on "SNL," well that prompted a big selloff. Listen.
(BEGIN VIDEO CLIP)
ELON MUSK, CEO, TESLA: It's the future of currency. It's an unstoppable financial vehicle that's going to take over the world.
UNIDENTIFIED MALE: I get that, but what is it, man?
MUSK: I keep telling you, it's a cryptocurrency you can trade for conventional money.
UNIDENTIFIED MALE: Oh. So it's a hustle.
MUSK: Yes, it's a hustle.
UNIDENTIFIED MALE: Why didn't you just say that, man? Dogecoin, everybody. It's a hustle.
MUSK: To the moon.
(END VIDEO CLIP)
KOSIK: I don't know if you caught it, Paul. He was great. So, there is just a lot to unpack here. Let me bring you in, Paul, because the first
thing that comes to mind when I heard about, you know, this SpaceX announcement and knowing what happened to Dogecoin during "Saturday Night
Live," the cryptocurrency tanked during it, can we take any of this seriously because I feel like I'm on a seesaw at this point when it comes
to Dogecoin.
PAUL LA MONICA, CNN BUSINESS REPORTER: Yes, I would argue that, no, you can't really take it seriously, Alison, and to be fair to Elon Musk, I
can't believe I'm about to say this, people do need to realize that when he was doing that appearance on "Weekend Update," he was playing a character
who was a crypto evangelist, obviously, you know, a thinly veiled version of Elon Musk himself, so I don't know that we can say definitively that
Elon Musk thinks that Dogecoin is a hustle, even though those were the words that were put into his mouth by the "SNL" writers.
But it is clearly not a cryptocurrency that has as much utility as Bitcoin and Ethereum, which by the way, Ethereum now over $4,000.00, all-time high,
those are the two cryptos that if people seriously want to invest in this space need to be looking at.
Dogecoin, I still think it's great for laughs on "Saturday Night Live," but not for your portfolio, most likely.
KOSIK: Yes, I mean, and you mentioned Ethereum just passing the $4,000.00 mark. There is at least a little bit of understanding why Ether and Bitcoin
are the hot ones, because they're in limited quantity, right? Explain to us why though Ether is today really surging, though, versus Bitcoin.
LA MONICA: Yes. I mean, Ether has really just taken off in the past month or so in conjunction with the increased demand for these non-fungible token
sales. The Ether blockchain really is the backbone for a lot of these NFT transactions that have taken the collectibles world by storm. We've heard
about all of these pieces of art that are being sold as tokens. You have sporting companies all getting in, Tom Brady is investing in an NFT
company, Tops is going public again through a SPAC, the other very popular mechanism on Wall Street these days, and Tops is getting into the NFT
business as well with digital baseball cards.
There is a company, NBA Top Shop that has an incredibly high valuation because of its presence with basketball NFTs. There is a "there" there, if
you will, I just don't see what the "there" is with Dogecoin, even though you have SpaceX announcing that there is this company in Canada that's
going to be paying for a payload on a SpaceX rocket to the moon in Dogecoin.
Yes, that's great, but, again, you have to take it with a grain of salt because this is an Elon Musk company doing this.
When you start to see big businesses outside of Elon Musk start to accept Dogecoin, then I'll start taking it maybe a little bit more seriously. But
you're not seeing Goldman Sachs doing anything in Dogecoin as of yet.
KOSIK: But we are seeing lots of movement with Bitcoin at the moment. Good points. Paul La Monica, thank you, and we'll be talking more about Elon
Musk's performance on "Saturday Night Live." that is going to come later on in this hour, so stick around.
A final decision on hosting the Tokyo Olympics will be up to the International Olympic Committee. The country's Prime Minister clarified who
will have the final say.
According to one newspaper poll, almost 60 percent of people in Japan think the games, which are scheduled to start on July 23rd, should be canceled.
Blake Essig reports from Tokyo.
BLAKE ESSIG, CNN INTERNATIONAL CORRESPONDENT: The Olympics are set to take place in less than three months, but despite the daily case count
nationwide increasing, the number of patients with serious symptoms continuing to break records, and with several prefectures including Tokyo
under an extended state of emergency order, it seems Olympic organizers are trying to do everything possible to keep the games on track for this
summer.
According to Japan's Prime Minister, the decision whether or not to hold the Olympics isn't up to him. He said so on Monday during a lower House
session.
[09:15:10]
(BEGIN VIDEO CLIP)
YOSHIHIDE SUGA, JAPANESE PRIME MINISTER (through translator): I've never put the Olympics first. My priority has been to protect the lives and
health of the Japanese population. The IOC has already made a decision to hold the games and notified countries as such.
(END VIDEO CLIP)
ESSIG: And it's worth noting that the IOC is a nonprofit which generates 90 percent of its revenue from the Summer and Winter Games. Even with no
overseas spectators, the broadcasting rights are a big moneymaker for them.
So clearly, the financial stakes here are enormously high and the IOC will be doing everything it possibly can to make sure the games go ahead.
Here is the IOC Vice President over the weekend.
(BEGIN VIDEO CLIP)
JOHN COATES, IOC VICE PRESIDENT: We're implementing those countermeasures, you've read the playbook, you can see those. They have all been
countermeasures predicated on there being no vaccine, so that situation has improved and the games are going ahead.
(END VIDEO CLIP)
ESSIG: IOC President, Thomas Bach was scheduled to arrive in Japan early next week, but because of the extended state of emergency order, his visit
has been postponed.
Regarding vaccinations, here in Japan, less than one percent of the population has been fully vaccinated, which is a big point of concern for
infectious disease specialists.
Blake Essig, CNN, Tokyo.
KOSIK: And these are the stories making headlines around the world. Russian authorities have reportedly found a missing doctor who used to lead
the Siberian Hospital that treated Kremlin critic, Alexei Navalny. State media reports he was located in good condition in a forest where he was
last seen on Friday and is thanking everyone for the search.
China is defending its space program after debris from its largest rocket returned to Earth without harming anyone. For days, experts were worried
about where the rocket would land and criticized Beijing for allowing it to freefall. The U.S. says China's actions were irresponsible and posed a
safety risk to many.
Still to come on FIRST MOVE, the U.K. emerges from lockdown. The Prime Minister set to confirm that ban on hugs, indoor pints of beer and much
more will be lifted on May 17th.
And more from Musk, the billionaire founder of Tesla reveals he has Asperger's. We'll get more details on his "Saturday Night Live" appearance.
(COMMERCIAL BREAK)
[09:20:22]
KOSIK: Welcome back to FIRST MOVE. I'm Alison Kosik live from New York where it is still looking like a mixed start to the trading week with tech
stocks under pressure.
A busy week ahead for financial markets with key earnings due from Disney, Alibaba, Airbnb and other big names. U.S. and Chinese inflation data --
that will all be released as well.
Investors increasingly concerned that a recovering global economy will worsen parts in commodity shortages and trigger sustained and not just
transitory inflation. Copper rallying to fresh all-time highs today. Silver and platinum also up around one percent.
Iron ore is surging to fresh records, too. Lumber continues to advance. That's up more than 93 percent so far this year.
Joining me is Jeffrey Kleintop, he is the Senior Vice President and Chief Global Investment Strategist at Charles Schwab and he joins me live. Great
to meet you.
JEFFREY KLEINTOP, SENIOR VICE PRESIDENT AND CHIEF GLOBAL INVESTMENT STRATEGIST, CHARLES SCHWAB: Thanks for having me on. Great to be with you.
KOSIK: So, I want to start with this pipeline shutdown, the Colonial Pipeline shutdown. We, of course, are seeing features contracts mostly
higher with this major cyberattack. What do you think a prolonged disruption will mean for gasoline and oil futures? Could we see a crisis in
the making here?
KLEINTOP: You know, we've got soaring commodity prices and supply constraints stalling production, and now the prospect for summertime lines
at gas stations is making connections to like a 1970s-style stagflation environment. But the market is not falling for it and I don't think we are
going to see that unfold.
The pipeline problems are responsible for probably some of the sector energy's strength today that we are likely to see in Europe, but this is
much like the payroll missed on Friday hasn't changed the trend in the markets.
The energy sector continues to outperform as it has all year on prospects for reflation, not stagflation.
Now, there could be some impacts on flights, I know there is an East Coast airport at risk of limited supplies of jet fuel into next week, but there
might not be as much lingering impact if the plant line can be restarted soon.
KOSIK: Are you also keeping an eye on supply constraints in Europe?
KLEINTOP: Yes, this is another big issue. Look, semiconductors are probably the ones that gather a lot of attention, lumber as well as you
just mentioned, soaring lumber prices. But you know what, it is everything -- plastic, cardboard boxes are in short supply. Actual weeks of supply of
container board and linerboard, the big boxes that package and ship almost everything is at the lowest numbers seen I've been able to track them back
30 years.
So, this really suggest that there are really tight constraints around the world, and that is likely pushing a crisis here in the near term, but I
think with the combination of incredible stimulus that we are seeing in the U.S. and now rolling out soon in Europe combined with the return of the
service sector, particularly in Europe with the reopenings, that should help to lift some of these pressures brought about by these tight supplies.
KOSIK: Let's turn to stocks for the moment. I want to hear what you're watching for the week. I know I am going to be looking at a key test for
the market on Wednesday with the release of CPI inflation data.
KLEINTOP: Yes, that's probably -- those are probably the biggest numbers for the week and certainly on a year-over-year basis, we're going to look
at some big numbers there. I think what's most important to look at in that data is to watch what's happening with a lot of the components tied to
consumer staples and these types of elements that I think that have been in high demand for some time.
Obviously, we're going to see a big snapback in some of the service components, but some of the staples components I think will be interesting
here and abroad. So, yes, definitely keep an eye on those CPI numbers. It is interesting that Friday's payroll miss didn't bring down bond yields and
so a surprise here on the upside on the CPI could further push yields to the upside.
KOSIK: You know that miss on the jobs report didn't really affect the market. We are seeing the markets shrug that off. Do you think it was a
one-off, and why do you think there was such a big miss there?
KLEINTOP: Well, it's super hard, I think, probably to predict payroll numbers right now given the seasonal adjustments. The seasonal adjustment
was massive and some of the other things going on.
I think the market's interpretation of the payrolls miss was revealing, though. The biggest takeaway was in a weaker dollar. That remains in a down
trend.
Interesting that interest rates kind of round-tripped. If a 700,000 payroll miss can't push rates lower, what can? So that trend continues higher,
supporting financials which is the other, I think, leadership group today and also interesting, growth didn't outperform value despite the miss.
All if these trends are firmly in place, it seems, unable to be shaken even by what was a pretty big miss.
[09:25:10]
KOSIK: How much are buybacks playing a role in what we are seeing in the action in the markets?
KLEINTOP: Yes, really interesting. So, firms that have announced some new share repurchase program are outperforming those that have not by a one
margin and by the overall market, and this has increasingly been a driving factor in the markets, I think both in the U.S. and in Europe, and it is
something we saw last for years coming out of the last economic downturn in 2008 and 2009. Buybacks outperformed from 2010 through 2014.
We are at a similar point in the economic cycle now, so this emerging trend could be important, and it is one of quality companies. We generally
associate buybacks with firms that have strong balance sheets and good cash flow as opposed to some of those zombie companies with no earnings that
have been arising lately in the small cap indices that have garnered a lot of attention.
So, this suggests you can find now performance in companies that also have good fundamentals, so an important theme to keep an eye out for.
KOSIK: Very quickly, what should investors do about tech? We have seen a run up just lately. Does that mean investors should cash out of Big Tech or
stay in it?
KLEINTOP: I think you should look beyond tech. I think you want to look at financials, energy, even healthcare for growth in this cycle. Tech was the
leader of the last cycle. Whenever we start a new economic cycle, there is always new leadership. It is time to move on.
KOSIK: All right, Jeffrey Kleintop, Senior Vice President and Chief Global Investment Strategist at Charles Schwab, great talking with you. Thanks for
your time.
The opening bell on street, that's next.
(COMMERCIAL BREAK)
[09:30:02]
KOSIK: Coca-Cola Euro Pacific Partners, you see there, ringing the opening bell at the New York Stock Exchange. Today, it looks like the exchange may
be a little more crowded than usual because they are lifting some of their COVID-19 restrictions that will allow more traders to return to work on the
floor and even some traders will be allowed to remove their masks when they are seated at their workstations.
And as expected, we've got a mixed start to the trading day with the Dow and the S&P 500 close to record highs.
The energy sector remains in focus as investors monitor key efforts to get an oil pipeline back online after a weekend cyberattack. Nervousness over
the attack is helping drive global oil prices higher. The incident highlighting once again the threat that cyberattacks pose to businesses and
critical infrastructure.
Notable moves today in crypto land, Ethereum, rising to new records. The second biggest cryptocurrency is pushing past the $4,000.00 mark for the
very first time, and it is up more than six percent.
COVID vaccine maker, BioNTech is rallying in German trading, too, after posting better than expected first quarter results. The company also
assuring us that its vaccine still protects against variants. It sees no need for booster shots just yet.
India's daily COVID-19 cases falling below 400,000 for the first time in five days, but still over 366,000 new infections reported in just one day.
More states are now imposing restrictions across the country.
Our Sam Kiley is live for us in New Delhi with the latest. Sam, great to see you.
You know it's a relief to hear the numbers going down a little bit, but you can't help but hear the calls growing louder for a nationwide lockdown
there to happen for anywhere from two to four weeks. What's the likelihood that a true lockdown will happen to get control of what's happening in
India?
SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: It's going to be very interesting indeed, Alison, to see whether Prime Minister Narendra Modi
does heed those calls, which have now been going on for more than a couple of weeks. And indeed, began in early April when scientists looking --
Indian scientists modeling what they thought was likely to be the shape of the COVID curve come April, the second wave, they underestimated daily
infections by a factor of about three times.
But nonetheless, they were suggesting that the central government ought to do something to tighten things up because it had so slack in things back in
January when Mr. Modi declared victory over the COVID pandemic.
Now, we're seeing a number of states to a greater or lesser extent locking down. I've just come from a state where they -- from Gujarat State where
they locked down almost entirely recently, shuttered shops, only the most essential services being allowed to continue. Here in Delhi, there's been a
greater lockdown.
But what there isn't is a national effort, a sense that this is a national problem as it was during the first stages of the pandemic when India really
was pretty effectively locked down, notwithstanding the very large movements of migratory labor back to their home areas.
But now that the science is firmly behind locking down, whatever the political consequences and economic consequences may be for Mr. Modi, and
the country that he presides over -- Alison.
KOSIK: Sam, are you seeing international aid arriving there? And if so, you know, what kinds of equipment are you seeing get there?
KILEY: Yes, a lot of international aid has been arriving steadily over the last 10 days. The Brits were the first with international aid, the
Americans have given some $100 million or are giving $100 million worth. It varies enormously, really a kind of reactive gesture, sometimes from
relatively small countries, a few dozen oxygen bottles right through to oxygen production plants, particularly coming from France and Germany, and
other countries.
The production and delivery of oxygen, which has really been the issue here and arguably that is what has perhaps artificially driven up the death toll
here during the second wave is the people who might have survived otherwise had they had access to that basic hospital commodity of O2 were not getting
it and we are still seeing acute shortages in many of the cities.
But the Indian government and indeed, local administration are beginning to get it flowing, not least because of these foreign donations, but the
donations really are no match for the overwhelming numbers here.
You know if you're getting an extra 400,000 or so new patients every day, you're looking at many hundreds of thousands of people every day needing
oxygen. That is a huge amount of consumption that only the central government really can provide, but certainly international aid has been
arriving.
[09:35:11]
KOSIK: Sam, what's the sentiment that you're hearing about how the Prime Minister, Prime Minister Modi is handling the situation there -- the dire
situation?
KILEY: Well, first of all, it is the issue of blame. Now privately, epidemiologists, doctors, in particular, ordinary people on the streets
will absolutely blame the Modi government and particularly what the benefit of hindsight was that premature declaration of victory over the COVID
pandemic and remember, this is ahead of a vaccination campaign, ahead of any scientific evidence that herd immunity had been reached.
But on top of that, scientists also point out there are a number of other factors that have contributed. One is that perhaps a very high levels of
infections in the past did not translate into high levels of natural immunity. And secondly, that the new variants of this virus particularly
the British variant is more transmissible and that has had a knock on effect.
But also, above all, the loosening of legislation here that meant that people were able -- were encouraged to go to political rallies, sporting
events, and religious particularly Hindu cultural religious events that were all super spreader events.
Now, the pressure is on Mr. Modi to try and get a grip on it. At the moment, he seems to be more spinning the idea that things are going to kind
of sort themselves out more than taking very direct action in earnest. He is not taking personal leadership in short.
KOSIK: Okay, Sam Kiley, thanks so much for your reporting.
And as India struggles with the catastrophic surge of COVID cases, FedEx is jumping in to help by delivering critical medical supplies and equipment to
the country. Joining us now, FedEx Chief Operating Officer, Raj Subramaniam. He is live from FedEx headquarters in Memphis, Tennessee.
Great to see you.
RAJ SUBRAMANIAM, PRESIDENT AND CHIEF OPERATING OFFICER, FEDEX CORP.: Good to see you, Alison. And thank you for having me on your program.
KOSIK: And you are leading the charge at FedEx taking huge steps to deliver critical medical supplies and equipment during this humanitarian
crisis that's happening there. Talk to me about what you've seen as the biggest need for India. I know that Sam talks about oxygen. I want to hear
more about what FedEx is supplying as well.
SUBRAMANIAM: Well, it is oxygen and that's exactly right. We have been coordinating with the Indian government authorities and the need of the
hour is oxygen. So that's -- you know, we are moving a lot of things. We have -- you know, we are uniquely capable of helping because we fly 40
times a week in and out of India.
And in addition to that, we just flew in on Sunday morning, landed at 6:15, a FedEx-donated 777 charter carrying 3,400 oxygen concentrators and other
critical medical equipment. I was just on the phone an hour ago with our Head of Operations in India and he said that it went very, very smoothly.
It was cleared in 25 minutes, loaded onto 20 trucks and on it went.
So we have over the last week or so delivered more than 17,000 oxygen concentrators and other critical relief equipment, and much more to come.
KOSIK: This is a huge undertaking, clearly and one that is filling a lot of your time. But I understand this is a situation that hits home for you
as well. Talk to me about why this is so personal for you.
SUBRAMANIAM: Well, it is personal because of, you know, I have family members, I have friends who have been impacted by the COVID-19. But look,
this is about FedEx trying to help and anytime that there is, you know, crisis of such magnitude. It is because of our unique physical capabilities
and network that we are able to help.
And you know, if your neighbor's house is on fire, and you're the one with the hose, you're going to help, that's kind of what we're doing.
KOSIK: You know, there are a lot of questions focusing on, you know, how India, which is home to the world's biggest vaccine manufacturer, got to
this point in the first place and vaccine supplies, they still remain an issue, and only two percent of India's total population has been
vaccinated. Can you maybe translate what is going on here? Why India is so slow to respond?
SUBRAMANIAM: Well, you know, it's very difficult for me to speculate on what might be or might not be. Our expertise is in moving things and you
talk about vaccines, that's -- you know, we have -- we are in fact very, very proud of the role that we played in moving vaccines.
In America, for example, we have moved almost 200 million vaccines in this country and we are ready to do it on a global basis. We are already moving
across international borders and when we are -- when the vaccines are ready to move to India, we will 100 percent do so.
And that's what we can do. In fact, I'm also pleased to announce to you today that we are going to donate another FedEx 777 charter that's going to
fly this week and it's going to go from Newark to Delhi, once again, carrying very critical medical supplies and mostly oxygen concentrators.
[09:40:16]
KOSIK: And as you have these amazing relief missions heading there, what kind of response are you hearing from the folks in India? What's -- you
know, tell me about the feedback that you're getting?
SUBRAMANIAM: Yes, I think it's been very positive. And from the -- you know, I think, you know -- one of the -- there's a sense of mission in
FedEx about this is who we are and what we do.
So again, I talked to the Head of Operations, despite the tough situation, the morale of the FedEx employee base is quite high. You know, we are
delivering on a mission.
My conversations with the Indian Ambassador, you know, the folks working on the ground dealing with the local authorities have been very cooperative,
and the process has been streamlined.
And so yes, it's a very grim situation. Of course, again, we're doing everything we can do to help and we'll leave no stone unturned.
KOSIK: Well, you certainly are doing a lot through FedEx, of course, Raj Subramanian. Thanks so much for your time. And thanks for all you're doing
for the people in India.
FedEx Chief Operating Officer, thanks for your time.
SUBRAMANIAM: Thank you.
KOSIK: Coming up on FIRST MOVE, people in England, gearing up for more freedom as the government is set to announce further easing to COVID
restrictions. That story, coming up next.
(COMMERCIAL BREAK)
KOSIK: Welcome back, I'm Alison Kosik. More signs of a gradual return to normalcy in England.
British Prime Minister Boris Johnson is set to announce a further easing of COVID restrictions. Cyril Vanier is live for us in London with the latest.
Cyril, great to see you. So the announcement coming in the next few hours. What are we expecting to hear?
[09:45:03]
CYRIL VANIER, CNN CORRESPONDENT: Yes, absolutely. We are expected to hear that stage one of the state -- I beg your pardon -- stage three of the
easing of lockdown restrictions here in England will go ahead as planned next week.
What the government has done, there was a strict lockdown at the beginning of the year, and then, when the numbers of infection rates started falling,
they said, we are going to ease these restrictions, but very, very carefully and very gradually.
Every five weeks, there are going to be increasing freedoms, increasing easing of restrictions. It is going to be stage three, that's going to
start next week. That's what will be announced a little later. And stage three means what? It means that up to 30 people can now meet outdoors, up
to six people can meet indoors.
It means that restaurants can fully reopen. It's been just outdoor seating for the last few weeks. It means that cinemas, theaters, museums can
reopen. Large events can reopen as well, even though there is going to be a limit on the number of people who can attend and foreign holidays will be
possible again. They've actually been outlawed, believe it or not, over the last few months.
And Alison, what is so fascinating about this is that the U.K. went from being pretty much worst in class with one of the worst COVID death rates in
the world per capita, earlier this year, 60,000 cases a day at the peak of the third wave to now being almost best in class 1,000 to 2,000 cases a day
and that is why they are able to hit their targets and ease restrictions every few weeks.
They have a third of adults who are fully vaccinated already and many more who have received at least one dose and this is the lowest circulation of
the virus that they've had since September.
KOSIK: So then what was the trick here? How did England go from the worst situation to the loosening of restrictions right now? Are they crediting
Prime Minister Boris Johnson for this?
VANIER: Yes, what lessons can be learned? That's a great question. I think really, it is two things. Strict lockdown that lasted a long time and that
was imposed at the very end of last year, beginning of this year, and very successful vaccination campaign.
The vaccination really, it's one of the best in the world, on a par with countries like Israel, the U.S. also moving very quickly as we know. The
reason they've been so successful is that they invested early in a vaccine that was successful at the time, of course, it was a gamble, it was the
Oxford vaccine that we now know as the AstraZeneca vaccine, which was one of the first to be invented, then they approved it in record time.
They were very efficient in terms of logistics at scaling up the vaccination and they prioritized first doses. So that gave more adults
partial immunity quickly.
KOSIK: So has the lifting of restrictions gotten a little bit confusing, you know, applying the rules to England or Wales, Scotland, Northern
Ireland. How are folks, you know walking through the differences there?
VANIER: Yes, that's a very good point, and you know, that's obviously part of the makeup of the United Kingdom is that some rules, depending on what
you're talking about will only apply to the country that you're in. England versus Wales versus Scotland, et cetera et cetera.
So these rules that I've just talked about, they apply to England and devolved governments have the authority to set their own rules. So they are
coming out of lockdown at their own pace. But look, depending on where you live, you know, this. So obviously, you know, you read the information that
concerns you.
So while there was some confusion in the early days when Boris Johnson was announcing rules that changed frequently that were difficult to understand.
What's really worked well with this plan of lifting restrictions incrementally every five weeks is that it is very predictable and that's
what has made things smooth. People knew what was coming and when it was coming -- Alison.
KOSIK: Giving them something to look forward to for sure, Cyril Vanier, in London, thanks so much.
And staying in London, we are monitoring rescue efforts to free a whale stranded in the River Thames. Rescuers had been housing the whale while it
was stuck. It was finally moved overnight, but has not found safety and is still stuck in the open water. Officials believe it's a small Minke whale
about three meters or almost 10 feet long.
Still to come, Dogecoin, Twitter jokes and a big revelation, we review Elon Musk's performance as a late night guest host.
(COMMERCIAL BREAK)
[09:51:41]
KOSIK: Okay, we've assessed how Elon Musk hosting Saturday Night Live affected Dogecoin. Now, let's look at how successful Musk was as a host in
general.
Expectations were running high before this episode and the eccentric billionaire, he talked about some of the controversies he is notorious for.
He's also made this revelation --
(BEGIN VIDEO CLIP)
ELON MUSK, CEO, TESLA: I am actually making history tonight as the first person with Asperger's to host "SNL."
[CHEERING AND APPLAUSE]
MUSK: Or at least the first to admit it.
[LAUGHTER]
MUSK: So I won't make a lot of eye contact with the cast tonight.
[LAUGHTER]
MUSK: But don't worry, I'm pretty good at running human in emulation mode.
(END VIDEO CLIP)
KOSIK: That was the first time Musk revealed he has Asperger's although some people pointed out he was not the first "SNL" host with the syndrome.
Frank Pallotta is with us now to assess the Musk episode from a media perspective. Great to see you, Frank. You know, in the likeability corner,
I certainly -- he certainly won me over with his honesty right there from the get go.
FRANK PALLOTTA, CNN MEDIA WRITER: Yes, I mean, going into the show, there was a lot of anticipation, a lot of buzz and obviously some controversy
since Elon has said and done things in the past that has been controversial.
But I watch "SNL" every single Saturday because I cover it every single Saturday, and I have to say, he did a fine job. I mean, "SNL" is not really
known for going into the business or financial or tech world. They've had a few guests that have been kind of weird in the past, like George
Steinbrenner, the owner of the Yankees, or even Steve Forbes, but Elon did fine.
And I think that the sketches really kind of worked for him, especially one where he kind of played the Nintendo warrior and his wife Grimes was
Princess Peach. And it was a fun show.
I mean, could he have been better? Yes. But he's not a comedian. He's not somebody who is in the spotlight all of the time. But for what he is, he
did pretty well. And I think ultimately, everything was much ado about nothing. He was just a standard normal host.
KOSIK: Yes, but a lot wasn't known about him. All we really knew, he doesn't conduct many interviews. He may be out there on Twitter, but many
people think of him as you know, very spontaneous and kind of quirky. What do you think his reputation is now, now that he has done "SNL"?
PALLOTTA: I mean, I think people who didn't know much about him got to see this side of him, which was the point. But I think overall, however you
felt about Elon Musk on Friday, is likely how you feel about Elon Musk today. I don't know if "SNL" really changed the perception of him in a
major way. I think it just introduced him to more people.
But I think a lot of people who were watching the show, who may not know a lot about Elon Musk and kind of just walked away from it going like, okay,
that was kind of weird. It was fun. But I mean, I guess, I get it. And that's about it. I don't think it really changes who he is to the people
who really knows him. But it does introduce him to a whole new set of eyeballs.
KOSIK: You know, he did join Endeavor Group Holdings, which is a media and entertainment conglomerate, I think it was about a month ago and he is
looking to join the Board. You know, it just sort of makes you wonder if this billionaire, by the way, has bigger aspirations to, you know, be in
the movies, be on TV, have his own show. Is that the realm that he could be moving into?
PALLOTTA: I mean, he has already kind of in that realm. He has started multiple episodes, doing voice work on "South Park." He was in an episode
of "The Simpsons." He was an "Iron Man 2," which the story is, is that Tony Stark is kind of based on Elon Musk, maybe. I don't know if that's entirely
true, but he is been in movies and television shows.
So this is definitely not completely new territory for him, but it is maybe a territory that he seemingly could be interested in getting more into.
Whether there is a place for him is yet to be determined. But it was interesting on Saturday night, which is the best you can do for "SNL."
[09:55:26]
KOSIK: Well, for what it's worth, I loved him in "SNL." I thought he was really, really funny. It was fun to see that side of him.
Frank Pallotta, great talking with you. Great to see you.
And one last look at the markets. U.S. stock markets are mixed as the trading begins on Wall Street. The Dow is inching further into record
territory and has just hit the milestone, or did, of 35,000. Again, the energy sector is rallying as workers try to get a massive U.S. pipeline
back online after a cyberattack.
Higher commodity prices are driving gains in mining and steel stocks today as well. Tech, as you can see, is pulling back by more than one percent.
That's it for the show. Julia is back tomorrow. I'm Alison Kosik. "Connect the World" is next. Thanks for watching.
(COMMERCIAL BREAK)
[10:00:00]
END
