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First Move with Julia Chatterley
Top Diplomats from Russia, U.S. to Discuss Ukraine; 24 New COVID Cases Found among Olympic Personnel; Denmark Lifts All Domestic COVID Restrictions; U.S. Sanctions on Russia could Worsen Europe's Energy Woes; Russia has Invested Billions in Pipelines to Europe; IMAX has its Best Fourth Quarter Since 2017; Bentley to Become a Fully Electric Brand by 2030; Moving to Japan's Rural Areas. Aired 9-10a ET
Aired February 01, 2022 - 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 ANCHOR: Live from New York, I'm Julia Chatterley. This is "FIRST MOVE." And here's your need to know.
Diplomatic disarray? Confusion ahead of crucial U.S.-Russian talks.
Bubble breach. More Olympians had to quarantine three days before the Olympic Games begin.
And lockdown lift. Denmark removes all restrictions saying the length between COVID infection and hospitalization is broken.
It's Tuesday. Let's make a move.
(MUSIC PLAYING)
A warm welcome to "FIRST MOVE" once again. Fantastic to have you with us this Tuesday. And a happy Lunar New Year to all of you who are celebrating
the Year of the Tiger in China, too.
You're also watching live pictures from Moscow where Russian President Vladimir Putin is set to speak in public for the first time since receiving
a response to his demands tied to Ukraine and regional security arrangements. We will take you live to that presser the moment it begins.
Also, today, the UK Prime Minister Boris Johnson in Kyiv meeting his Ukrainian counterpart and urge Russia to, quote, "step back from the
brink." The latest on all of this very shortly.
For now, stocks meanwhile on the brink of a rebound after the worst January performance since the financial crisis. Yes, the Nasdaq managed a 3 percent
gain for the last two sessions, and that positivity is carried over into the European session.
Sentiment there also helped, I think, by Euros own unemployment data. The jobless rate at its lowest level since the late 1990s.
The U.S. jobs for support for January also out this Friday. And I have to say, expectations are muted. Some are even predicting job losses - net job
losses due to the challenge of Omicron.
That's not stopped the market, however, adjusting to the new rate hike reality. At one point yesterday, investors were expecting five Federal
Reserve rate hikes this year.
Now, Fed officials stressed on Monday that they want to tap the brakes only gradually without endangering the economic recovery. It's a delicate touch,
though, that's clearly required but also delicate diplomacy that requires our attention and analysis first.
Let's get to the drivers.
Russia's President Vladimir Putin due to make a public appearance in Moscow shortly just hours before U.S. and Russian diplomats talk on the phone.
Russia says it's still preparing its response to a U.S. proposal for diffusing tensions on Ukraine's border and the British prime minister
heading to Kyiv amid a flurry of moves aimed at easing the crisis.
Nic Robertson joins us from Moscow. Sam Kiley is in the Ukrainian capital, Kyiv, for us too.
Nic, I'll come to you. Plenty to discuss on that side. We obviously are awaiting that press conference where Russian President Vladimir Putin has
been hosting EU prime minister or EU -- the Hungarian Prime Minister Viktor Orban. What are we expecting from this press conference? Can you also give
us some clarity on some apparent confusion over the response that the Russians received from the United States, too?
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yeah. The Kremlin spokesman said that was a mix-up about the United States thinking that it
had had a full response from the Kremlin. The spokesman said that President Putin hasn't made his full remarks yet and fully addressed the letter that
United States and NATO sent to Russia last week. So, that was put to one side.
The foreign minister over the weekend had indicated he had sort of demanded some urgent clarification on a security issue that had been in discussion
previously and perhaps that's where the confusion came in. But regardless, it is of course President Putin everyone's waiting to hear from, and the
spokesman indicated that we would likely hear from President Putin and possibly on his thoughts about what the United States and NATO have said in
a press conference following his meeting with Viktor Orban.
You know, Putin and Orban met maybe a couple of hours ago and they sat at the opposite ends of a very long table, but President Putin saying it was
good to be able to meet, you know, sort of see each other eye to eye rather than meet over the phone. Even if the sort of COVID conditions meant that
they were essentially at the opposite ends of a long table.
Orban is pretty much Putin's perhaps biggest friend and ally in Europe and Orban was making that point. They've known each other 13 years, met 12
times. And so, there was a lot of sort of mutual discussion of how they'd helped each other, of how they hoped to help each other in the future.
[09:05:00]
But it was interesting that in one translation of their comments made at that table there, that Orban said you know think of my visit here as a
peace mission and I want to assure you, he said to President Putin, that no European leader wants to go to war. They far prefer to solve issues through
political dialogue. So that seems to be how Orban sees his place in this.
But we've been told by the Kremlin to expect this press conference afterwards that would involve both men. But given the COVID situation and
the sort of you look at that long table where they're sitting at opposite ends, it's hard to imagine President Putin stepping into a room full of
journalists and we've seen a room full of journalists waiting for that press conference to happen in the current environment knowing that
President Putin is going to be going to China for the Olympics later this week. So, let's see what happens.
But we were told by the Kremlin to expect somebody to ask a question about -- about his - Putin's response to those letters from the United States.
So, he may not answer it fully, but this could be our first indication yet since he got those letters.
CHATTERLEY: Yes, it's going to be fascinating to see and we will certainly, as you mentioned, take our viewers to that press conference should we get
it. And to your point, too plenty of social distancing there, but we'll get what we're given.
Sam Kiley, come in here as well because obviously the perspective from Kyiv is a flurry of diplomacy for different reasons. Prime Minister Boris
Johnson, the UK prime minister, is there today, too. The Polish prime minister also in a show of support for the Ukrainians, too. So, there's a
lot going on today wherever you look.
SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yeah. No, the poles first they have promised drones -- surveillance drones and other military
material for the Ukrainians. And just before he set off, Boris Johnson, he's got his own wars to fight at home over, notably in the houses of
parliament over Partygate has announced 88 million pounds worth of new military aid coming in. That's on top of preexisting aid programs, military
aid programs, that include a couple of hundred British troops here in the west of Ukraine not employed as fighting forces but as trainers. Training
the Ukrainians how to use tank killing rockets that have been supplied by the United Kingdom and indeed the United States.
So, Boris Johnson is expecting to meet with President Zelensky, the Ukrainian president in an hour or two. They will hold joined press
conference afterwards. It's quite a whistle-stop talk. Boris Johnson normally likes to get out to the frontline. No doubt he would have liked to
have done that in these sorts of circumstances, try to distract domestically from a very difficult story he's got back home.
But as far as the Ukrainians are concerned, it's a very important moment because they're not talking about setting up sort of micro alliances
alongside but not outside - but outside of NATO. So today they're talking about hoping to be able to announce quite soon an alliance -- a micro
alliance, if you like, between the United Kingdom, Poland and Ukraine, very much the sort of thing that actually they've been worried about emerging in
Moscow.
Moscow has been complaining that these alliances don't necessarily mean that NATO as such has to get involved in Ukraine if there is a bilateral
involvement. Of course, the United States has also got training teams here on the ground, Julia.
CHATTERLEY: Nic Robertson in Moscow and Sam Kiley in Kyiv. Thank you so much for those updates there.
OK. More cracks in a closed loop. Beijing reports 24 new cases among Olympic related personnel on this year's Lunar New Year's Day. Just three
days before the Winter Games begin. Six of them found inside the so-called closed loop.
Selina Wang is live in Beijing for us. You are there. You made it. I guess the good news here is that these cases keep being found. The bad news is
there are cases in the first place, Selina.
SELINA WANG, CNN CORRESPONDENT: Yeah, Julia. But the Olympic officials, they are saying that the goal is not to have zero COVID cases at all. The
goal is to have zero COVID transmission inside the closed loop, so they want to catch those cases before they spread. They want to limit that
transmission.
As you say, they've already found cases in the closed loop. They found 70 - - nearly 70 cases involving athletes or team officials. For those athletes who test positive, this is heart breaking, and it's frustrating since some
of them feel perfectly healthy. So, any positive confirmed case in the closed loop, they're immediately sent to isolation at a facility or to a
hospital if they're symptomatic.
And, Julia, they cannot leave that area until that facility - until they have cleared two negative PCR tests with at least 24 hours in between. And
in some instances, that can take weeks. So, in this critical period where these athletes should be settling in, getting ready for competition,
they're stuck inside.
And we're seeing a growing number of some high-profile athletes who are stuck in this incredibly stressful situation. So, Elana Meyers Taylor, she
is a multiple time Olympic winner. She is on Team USA.
[09:10:00]
She has said that she's tested positive for COVID in China. She's now in an isolation facility. She's asymptomatic. She's really hoping that she can
clear those negative PCR tests before her competition in a couple of weeks. But Julia, that is not guaranteed.
Also, a Russian biathlete, she confirmed she cannot compete because of a positive COVID test.
USA Team Bobsledder Josh Williamson, he tested positive before even leaving for Beijing. So, he was not able to travel with the team.
So, more heartbreaking stories like this are expected to happen as more and more athletes arrive. We are still a few days away from the opening
ceremony. Julia?
CHATTERLEY: Yeah. It's so heartbreaking. All that work, all that effort and the added anxiety of the fear of testing positive just before you go or
even getting all the way there in the same. And you've well documented the process and the anxiety it creates and that's even without trying to
compete at the same time.
What about for the people that are working inside this bubble, though? As I mentioned, it's the Lunar New Year holiday today. Very different experience
because, of course, these people, my understanding is they're not going home. They're not leaving this bubble. So, it's a very different New Year
feel for them this time around, too.
WANG: It's really hard to believe that today is the Lunar New Year. You certainly do not feel that mood, especially in this Olympic bubble we're
confined to. The streets are empty. You don't feel that sense.
Of course, you can see some of the Lunar New Year lights around me but it's not what you would expect. This is the most important holiday of the year
in China by far. It is like Christmas, Thanksgiving and New Year's Eve all combined. Such an important time to be with family.
But for all the local Chinese staff that are inside this closed loop, they cannot be with their family. In fact, they even have to quarantine for as
long as three weeks after the Olympics end before they can go back to their homes to see their families. So, this is months that they're away from
their families especially during this important period.
And earlier today, I was actually speaking to a woman who is working at the Olympic Games. She was standing on this side of the fence behind me. Why
was she standing there? Because that is the closest place, she can get with people outside of the closed loop.
So, her husband and two young sons, they were standing several meters away on the other side of the fence. A really touching moment. They were waving
to each other. Her two young sons giving the traditional Lunar New Year well wishes to their mother, wishing her happy health and fortune and
saying how much they loved and missed her.
And this woman told me that this has been some of the really most difficult parts of her life. This is the longest she's been away from her family. She
said she also worked in the 2008 games. And back then, it felt like this big party. There's a lot of excitement. But this time, because of COVID,
she said everything feels just very tough. Julia?
CHATTERLEY: Yeah. And you need to be.
Selina Wang, thank you so much for that report there.
OK. Let me bring you up to speed now with some of the other stories making headlines around the world.
Denmark has lifted all domestic coronavirus restrictions saying it no longer considers COVID a socially critical sickness. Authorities are still
reporting thousands of cases a day, but far fewer patients are ending up in intensive care. Officials say vaccinations have severed the link between
infection and severe illness.
CNN's Scott McLean joins us now from Copenhagen.
Scott, great to have you with us.
This was the key for me. They have high amounts of cases on a relative basis. Even compared to the past. But their vaccination rate is so high.
They are saying, look, we've broken that link between people getting sick and people getting really sick, and this is crucial.
SCOTT MCLEAN, CNN CORRESPONDENT: Yeah. You're absolutely right, Julia. And look, I just checked. Denmark officially has the second highest infection
rate on planet earth right now.
CHATTERLEY: Right.
MCLEAN: But you sure wouldn't know it. As you mentioned, starting today, virtually, all COVID restrictions have been lifted in the country. There's
no mask mandate. There's no COVID passes. No curfews to worry about. In fact, you don't even have to legally self-isolate in this country if you
test positive.
Now, for the last two years, Danes have been following the often strict, often changing set of rules and regulations to a tee. But now the
government says they simply are not needed because the vaccination rate is so high. So essentially the government is willing to let the virus rip
through society, spread pretty freely because they say that society has enough protection due to the vaccine to prevent the vast majority of people
from getting seriously ill. And Denmark is not the only country taking that approach.
(BEGIN VIDEOTAPE)
MCLEAN (voice-over): Loud music, stiff drinks and close talking. In Denmark, they're partying like it's 2019. After two years of on again/off
again restrictions, mask mandates and lockdowns, Denmark has officially kissed COVID restrictions goodbye.
UNIDENTIFIED MALE: I am over it. Like, I think everybody is.
UNIDENTIFIED MALE: I'm excited, we have been waiting for this moment for so long.
MCLEAN: In reality, the pandemic hasn't gone away. In fact, new average daily infections in Denmark are more than 12 times higher than the
country's previous peak and rising.
(on camera): Is now really the best time to do away with the rules?
SOREN BROSTROM, DIRECTOR-GENERAL DANISH HEALTH AUTHORITY: Sure. And, of course, everybody is asking us that question.
[09:15:00]
But when we're looking at our hospital admission rates, day by day and we see fewer and fewer cases and we see very few cases in the elderly that are
vaccinated, actually admitted to hospital or even dying.
MCLEAN: And that's just because of vaccination.
BROSTROM: I have no other good explanation why Denmark is in such a unique place.
MCLEAN (voice-over): Denmark has one of the highest vaccination rates on Earth. Late last year, they lifted most restrictions, only to once again
batten down the hatches in December. Closing schools, mandating masks indoors and putting curfews on bars and restaurants. Now virtually, all of
those restrictions are gone.
(on camera): Is it really the end this time?
MAGNUS HEUNICKE, DANISH HEALTH MINISTER: Well, we hope so. But we promised the citizens of Denmark that we will only have restrictions if they are
truly necessary. And we'll lift them as soon as we can.
MCLEAN (voice-over): It is not just Denmark. Last week, England lifted nearly all of its domestic restrictions, as lawmakers sat out a novel new
strategy.
SAJID JAVID, UK HEALTH SECRETARY: We must learn to live with COVID in the same way that we have learned to live with flu.
MCLEAN: Before the vaccine, COVID was a lot more deadly than the flu. But as immunity rose and a less severe variant emerged, deaths directly caused
by influenza or pneumonia are now not far off of COVID-19. And lately, they're contributing factors far more often.
(on camera): Is it reasonable to treat COVID like we treat the flu?
LIAM SMEETH, LONDON SCHOOL OF HYGIENE AND TROPICAL MEDICINE: I think it is not a bad model, unless of course the virus comes up with a nasty, highly
infectious variant.
MCLEAN (voice-over): Back in Denmark, people are free to circulate. So is the virus. But two years, three vaccine doses and a lot of sacrifice later,
COVID doesn't seem so scary anymore.
(END VIDEOTAPE)
MCLEAN (on camera): Now, health officials, Julia, say that look, there are no guarantees that restrictions won't come back at some point in the
future. But the health minister told me that for him to even consider going that direction there would have to be a new variant is not only more
transmissible but also more deadly than Omicron.
CHATTERLEY: Yeah. Great reporting there as well and some of the comparisons across Europe. The director-general of the health authority there had some
interesting comments to say about vaccine mandates. And I just want to read the quote quickly and get your take.
"I do not believe in imposed vaccine mandates. It's a pharmaceutical intervention with possible side effects. You need as an authority to
recognize that. I think if you push too much, you will have a reaction. Action generates reaction, especially with vaccines."
Scott, I just look at some of the protests that we've seen around Europe and his comments there struck a chord. He makes a valid point, I think.
MCLEAN: Yeah. And Denmark has not seen nearly the level of protests that we've seen elsewhere in Europe -
CHATTERLEY: Right.
MCLEAN: -- nor has Denmark threatened to make the vaccine compulsory.
Look, it's easy for Denmark to sort of condemn others for going that direction because they have some built in advantages.
Number one, they have this sort of culture baked in already long before the pandemic where people generally trust institutions and trust the
government. They also have the government that it says has really gone out of its way to be open, be honest, be transparent with people about both the
pros and the cons of vaccination.
I'll give you one quick example and that's the AstraZeneca vaccine which Denmark actually stopped using last year because they found that there were
some very rare blood clots found in a very small number of people. And they say that didn't damage trust in vaccinations. They said that actually
helped trust in vaccinations. Julia?
CHATTERLEY: Yeah, trust. Scott McLean, great to have you with us. Thank you for that.
Still to come here on "FIRST MOVE."
A gun in the hands of Mr. Putin. Quote, "Poland warns of Russia's grip on Europe's natural gas supplies."
And the big screen scores over the big stream as IMAX reports its best holiday season in years.
That's all coming up. Stay with us.
(COMMERCIAL BREAK)
[09:20:00]
CHATTERLEY: Welcome back to "FIRST MOVE."
And we are still awaiting comments from Russian President Vladimir Putin on the situation in Ukraine. The press conference set to begin in Moscow. And
as mentioned earlier, we will bring that to you live as soon as it begins.
President Putin's comments could affect the direction of energy markets and continue to do so. Energy as you can see currently lower. Natural gas
leading the declines down some 3 percent in the session so far. But strong gains across the energy complex so far this year with natural gas leading
the way up some 26 percent year to date.
Energy investors dealing with a whole host of issues including an anticipated end to COVID restrictions, bad weather, lower than anticipated
OPEC Plus output and of course the Ukrainian uncertainties playing a big part, too.
Poland's prime minister has warned that a new natural gas pipeline between Russia and Europe would be, quote, "a gun in the hands" of Mr. Putin.
President - sorry -- Russia already supplies 40 percent of Europe's gas imports which means any new sanctions could trigger a deep freeze across
Europe.
As Anna Stewart reports.
(BEGIN VIDEOTAPE)
ANNA STEWART, CNN REPORTER (voice-over): Europe's winter could feel much colder in the coming weeks.
HENNING GLOYSTEIN, DIRECTOR, EURASIA GROUP: If all of Russian gas stops going to Europe, you'll see the prices literally going vertically through
the roof.
STEWART: Gas dependency is a hard habit to kick.
(on camera): The EU relies on Russia for over 40 percent of its gas import and some countries are more vulnerable than others. For example, you can
see here Austria, Finland and Latvia rely on Russia for all of their imported gas.
Germany, Europe's economic powerhouse is particularly vulnerable. Not only does it rely on Russia for the majority of its gas imports, but it depends
on gas for over a quarter of its energy. And actually, this gas dependence has grown over the past few decades as Germany transitions away from coal
and nuclear power.
(voice-over): It's surprising, given the EU has faced this problem before.
JOSE MANUEL BARROSO, FORMER EUROPEAN COMMISSION PRESIDENT: Gas that should come from Russia through Ukraine to the European Union is not coming.
STEWART: Russia has invested billions of dollars in more pipelines to Europe since 2009 to avoid transiting through Ukraine. There's Nord Stream
1 showed here in yellow and alongside it, the new $11 billion Nord Stream 2, currently awaiting certification by German regulators. That pipeline's
future though is in doubt.
VICTORIA NULAND, U.S. UNDER SECRETARY OF STATE FOR POLITICAL AFFAIRS: If Russia invades Ukraine, one way or another, Nord Stream 2 will not move
forward.
STEWART: There are concerns that this measure and others, could trigger Russian retaliation against the west. It could suspend all gas exports to
Europe which is now scrambling to shore up supplies. One option is liquefied gas via ships.
GLOYSTEIN: Over Christmas and New Year, European utilities quietly ordered an entire fleet of LNG imports, mostly from the U.S. and Qatar. And they
are all due to arrive this month and it's a lot of gas.
STEWART: It isn't a fix for all. Experts agree there wouldn't be enough LNG to replace Russian gas. Many European countries lack LNG terminals and
redirecting gas through Europe is also challenging due to limits on existing pipelines. Another option is storage.
AMY MYERS JAFFE, RESEARCH PROFESSOR, THE FLETCHER SCHOOL, TUFTS UNIVERSITY: Europe still has nine weeks' supplies in storage. And there is the so-
called emergency cushion that puts another 10 percent. So, all good. I mean maybe they could like squeak through.
[09:25:00]
STEWART: There are non-gas options. Experts say decommissioned coal and nuclear plants could be fired back up. Ultimately, Europe could survive a
winter without Russian gas but at a great financial cost. It would also have a cost for Russia, one reason experts think full gas suspension to
Europe is unlikely.
(on camera): Does Europe seek to reduce its reliance on Russian energy, does this backfire eventually longer term on Russia?
MYERS JAFFE: We all thought it had in 2009, right?
Because, you know, all these LNG receiving terminals went in and the U.S. started drilling, drilling, drilling.
But you know having the actual physical asset and inventory of tanks and LNG export capacity -- none of that is useful if you don't use it in a
strategic way. And you're not thinking about the security premium which people felt they didn't have to pay anymore.
STEWART (voice-over): Energy security comes at a price.
Anna Stewart, CNN, London.
(END VIDEOTAPE)
CHATTERLEY: Stay with "FIRST MOVE." More to come.
(COMMERCIAL BREAK)
[09:30:10]
CHATTERLEY: Welcome back to "FIRST MOVE."
Russian President Putin is due to speak shortly in Moscow after meeting with Hungary's Prime Minister Viktor Orban. That appearance at a press
conference set to begin soon. And we will bring that to you live the moment that begins.
In the meantime, Nic Robertson joins us now from Moscow.
It's a waiting game. It's a waiting game in many ways. Actually, Nic, as we watch the flurry of diplomacy that's taking place not just obviously in
Moscow but in Kyiv and beyond at this moment.
What do we expect to hear in this press conference? Because Viktor Orban himself has come under some criticism and pressure from the opposition in
Hungary saying you're undermining the broader push here to try and deescalate the tension on the Ukraine border.
ROBERTSON: Yeah. It really is a waiting game. And this is a waiting game where Putin really appears to be quite an expert in keeping everyone
waiting. And he really appears in the assessment as that he likes the fact that everyone is coming to hear him and needs him for the answers, is
looking to hear him and reaffirms for him his place and importance on the global stage.
And Viktor Orban, you know, perhaps his closest ally in Europe. And certainly, the opposition in Hungary would criticize Viktor Orban. There
are elections coming up there in April. And Viktor Orban mentioned that to President Putin as they were sitting up at the opposite ends of a very sort
of long COVID separation type table they were at.
And Putin said, look, you know I'm not - you know I'm not and we don't endorse one side or another. But I think you're doing a very good job for
the - for the Hungarian people. And he pointed out the fact that you know Orban had secured a gas deal, 80 percent of Hungary's gas, 55 percent of
its oil comes from Russia. And Orban has secured a gas deal reaching into 2036. And Putin noted that those gas prices were at five times lower the
current market rate.
So, you know, it really indicates there how Putin can have a huge influence in another country because he's sort of stabilizing the energy costs for
Hungary at a very important time. And as politically, that's valuable for Orban at home.
But what we're really waiting for here is for the two men to finish their meeting. You know they met around the table. They were going to be having a
working lunch as well and then this press conference.
And I think this is significant that the - that the spokesman for the Kremlin said that he did expect - he was asked about this just a few hours
ago and he said he did expect a question to be asked of President Putin about his response to the United States and NATO's letters.
So, you know, when the Kremlin spokesman says that -- that's a pretty sure indication that somebody in the audience is going to ask that question of
President Putin.
Now, we don't know what he's going to say. Will he give a fulsome answer? Will he be a little bit evasive? Will he - will he hit the highlights? We
don't know.
But Orban came saying -- and this was sort of one of those important moments as the pair men on opposite ends of the table. He said to Putin,
you know, think of this as a peace mission. And I've come here, you know, to assure you that no European leader wants war. Everyone wants to try to
solve this in a by a political means, you know.
And so, this is the first real face-to-face, eye to eye where a European Union leader whatever the criticism back home and whatever the political
points he can score for himself and put in the bag and take back home. He is telling Putin Europe is not trying to threaten you. And that is sort of
one of the very important messages that you can best convey at a table face-to-face with the leader. And that's - you know, that's what's been
absent right now over the past few months.
CHATTERLEY: Yes. And if you can score much cheaper energy prices while you do it, then all the better. We shall see what this press conference brings.
Nic Robertson, great to have you with us once again. Thank you.
OK, as I mentioned, we await that press conference. I will take you there as soon as it begins.
In the meantime, Box Office bonanza for IMAX. It ended 2021 with global Box Office revenues of $638 million. Just to give you a reference point. That's
up nearly 150 percent over 2020. But it's not just the pandemic comparison effect. That was the theater company's best fourth quarter since 2017.
Now, much of that is thanks to smash hits like "Spider-Man: No Way Home" and "Dune." But it's not just about the movies. IMAX is branching out into
feature events and live streaming, too. Including the recent release of "The Beatles." Iconic 1969 rooftop concert.
IMAX CEO Richard Gelfond joins us now.
Rich, great to have you with us.
I mean, what a wonderful magical event to host. I did take a look at that. fantastic.
[09:35:00]
And I think it's another example and we can talk about the movie business, too. But an alternative revenue source for IMAX, which is important, too.
RICHARD GELFOND, CEO, IMAX: Yeah, Julia, and thanks for having me on.
I think you also have to look at it as partly a strategic pivot. I mean, the world is changing, the industry is changing, the windows are changing,
things going to streaming are changing. And I think if you're a company that just sits around and says I'm going to do things the same way I've
done them for the past 20 years, you're going to be left into the dust.
So, IMAX has been looking to move into other areas and "The Beatles" film which included a live stream with Peter Jackson was really fun. It had an
older demographic. My 24-year-old stepson said he thought that the average age was 100, which proves there's a way to get - there's a way to get older
people into theaters.
I think it was actually 99, Julia.
CHATTERLEY: Exactly. That makes all the difference.
GELFOND: So, I don't want to - exaggerate it.
CHATTERLEY: But you know, just to prove we're not prejudiced against younger people. We did a live stream with Kanye and Drake about a month
ago, and that was really successful. People dancing in the theaters. We also in a related way did a deal with Disney Plus where we're now on that
service. And for a number of the big Marvel titles, you could see them with IMAX aspect ratio.
So, the core movie business is doing extremely well as you would into - with your intro. And you know we've had positive off of four quarters.
We're not like a regular exhibition company. But I think we have to lead the way to a transition, to the new world and look at new ways of doing
things.
CHATTERLEY: I want to go and talk about what's going on in movie business. But very quickly, because you announced the IMAX enhanced Disney Plus deal.
Are you talking to some of the other streamers, Paramount Plus, HBO Max?
GELFOND: Well, I'd rather not say which ones. But, yes, we are talking to some of the other streamers.
CHATTERLEY: OK. So, we'll watch this space. You can come back and talk to us when you have news potentially on that front.
I mentioned some of the stats which I think are pretty astonishing for the movie business. We're still dealing to various degrees around the world
with COVID and Omicron specifically. And I think it's important for my viewers to understand the sheer scale of revenues that are outside the
United States for you. You are a vastly international business. And from what I'm seeing, it's sort of two things. It is movie going outside of the
U.S. market as well as within it but also the specific movie, getting what people want to see in the cinema and actually gets them through the doors
irrespective of COVID.
GELFOND: Yeah. And there's actually a subset of that which is local language content. So, what we -- about two thirds of IMAX's revenue in a
typical year is outside of North America. And one way we've been able to keep that fresh and actually grow it during the pandemic was by doing local
language films.
And, you know, in Japan two of the films we're involved with became two of the biggest films in the history of Japan.
In China, we set a record for local language Box Office. In a year, that was a pandemic year.
So, you know there's a lot going on and that's a part of our business. We're building. And not only are we doing regular films but we're filming
local films with IMAX cameras and it's a great day to ask that question because today is the first day of Chinese New Year.
CHATTERLEY: Yeah.
GELFOND: And typically, a huge percentage of our business, China is about a third of our revenues. And a huge percentage of our business comes out of
China. And it's very early because today was only the first day. But 2021 is the best year in the history of movies in China over Chinese New Year
period. And as I said, it's in the middle of the first day. But it looks -- the first day looks on track in accordance with that record year. So that's
kind of promising also.
CHATTERLEY: I mean, China overtook the United States, didn't it? It's the largest movie market in the world last year.
What should -- you said what IMAX is learning and how you're evolving and it's a pivot point, too. But what do you think the studios and the
streamers should have taken away from the past year as well, whether it's about distribution, the balance between perhaps letting a movie breathe in
the cinemas before taking it to a different platform for distribution like streaming for example? Didn't "Spider-Man" perhaps not prove that if you
let a good movie breathe, you can make a lot of money in the cinemas?
GELFOND: Well, great question, Julia. And I think you know it's even beyond that. It wasn't just "Spider-Man."
"Shang-Chi" was the first movie that Disney released that went not to the service or a hybrid service and theatrical. It went straight to the movies
and it became the biggest Labor Day movie in history. You know, and that wasn't sort of a well-known franchise property.
[09:40:00]
So, it's just no question. I think early on the pandemic people said, well, streaming is going to replace the theatrical experience, but I think they
didn't take into account the issue of piracy which was enormous. I mean, people didn't want to pay for streaming, they wanted it free. And that was
enabled by kind of easy downloading of the content.
And then, you know we shared so widely, and you look at major franchises where the earlier version did $700, $800 million, a billion. And when they
put it without a theatrical release, they didn't want a $200 million. So, they were giving away money. And I think the recent results from the
streamers.
There was an interesting article yesterday in "The Wall Street Journal" that said people that sign-up for streaming, they're not sticky, that about
half of them when they sign-up because of events like big movies, it's not as sticky. And within four months half of them are gone.
So, I think the studios have to be looking at this and saying that exclusive theatrical release and in particular an IMAX release we create
global events. And there's no question "Spider-Man" was a global event. And that's why it's over $1.7 billion already. If it had gotten in China, it
would have been at over $2 billion. So, I think there's just no question that the idea that you put it up in streaming and it's all incremental has
proven to be not true.
CHATTERLEY: Yeah. Streaming and speed dating. No strings attached. We have to stick around.
Rich, I have 10 seconds. What do you think is going to be the top movie of 2022?
GELFOND: I'll miss that, Julia.
CHATTERLEY: Yeah. We'll move on quickly in case someone tells me -- top movie of 2022?
GELFOND: You can't put me in that position because there's so many including the new "Top Gun," "Jurassic World." You know, if you ask me to
go out there, I think it's not talked about a lot, but I'll say maybe "Avatar." The "Avatar" is --
CHATTERLEY: Yeah. It's the one I'm looking forward to.
Rich, great to chat with you. Rich Gelfond there, IMAX CEO. Thank you.
OK. Coming up after the break.
It was already pretty quiet now. Bentley sets a smooth course for an all- electric future. And the CEO is next.
(COMMERCIAL BREAK)
CHATTERLEY: Bentley's reputation as a maker of exceptional motor cars has survived the test of time dating back to 1919. The Bentley brand is favored
by celebrities, royalty and a footballer (INAUDIBLE).
Today, Volkswagen owned Bentley sells plug in hybrid versions of its Bentayga SUV from $160,000. And Flying Spur sedan from $208,000.
[09:45:08]
And now, it's spending big to become a fully electric brand by 2030. It's first fully all-electric car will roll or glide off the production line in
three years and every year for four years after that, a new EV will be launched.
Adrian Hallmark is CEO and chairman of Bentley.
Adrian, great to have you with us. Happy New Year. And congratulations on a record breaking 2021 as well.
This is not just about producing EVs, surely. This is about a fundamental shift in supply chain, in manufacturing, in approach to what your client
base is asking for.
ADRIAN HALLMARK, CEO AND CHAIRMAN, BENTLEY: Yeah. Thank you, Julia. And Happy New Year to you, too.
It is a reinvention of the company, and it's very exciting. It's not without its risks. But we are totally committed to being carbon neutral and
fully electric in our product range by 2030. To get there as you quite rightly said we start in 2025 with the first electric vehicle. And then
there will be five launches in five years. $2.5 billion investment program all based around this new technology and a new factory here in Crewe
alongside or within the boundaries of what we already have.
CHATTERLEY: What can you tell us about the car or is it a secret right now? I mean, I appreciate you've got like three years on the road, but I think
everyone will be clamoring to understand what exactly your offering is going to present.
HALLMARK: OK. And you're right. I can't give too much away, but I can give you some pointers at least.
CHATTERLEY: OK.
HALLMARK: First of all, it will sit alongside the other four models that we currently sell. So, we have the Continental GT, they can have the
convertible, then the Flying Spur that you've mentioned and then the Bentayga. And all of them by 2024 will be only available as plug in
hybrids. This is the first step in our electric car journey.
So, the first full battery electric vehicle will be a complementary product of that product range. It won't substitute any of them. It's a conventional
body style but I won't describe what it is. And the price point you'll have to wait and see. But it does sit part from.
CHATTERLEY: So, basically, on all of the important things you're going to keep me guessing. The Bentayga SUV is your top selling model at the moment.
What percentage were hybrid that you sold last year? I know your ambition is to have 20 percent, but what percent were hybrid last year? Can you tell
me?
HALLMARK: Yeah. So, last year, it was actually just over 20 percent. And bearing in mind, it wasn't fully available until spring of last year. So,
in just nine months we hit slightly above original expectation for the full year which is incredible. So, we just launched --
CHATTERLEY: So, you're going to definitely sell more. Yeah.
HALLMARK: Yeah. Absolutely.
CHATTERLEY: Where do you see that percent going?
HALLMARK: It's difficult to say but I would expect 30 to 35 percent to be quite comfortable. And why do I say this? About 60 percent of our customers
live in cities and they use the car on a daily basis. And for most people with short journeys a hybrid, especially with car train combination is a
really good bridge between a full combustion engine vehicle and a full electric because you can run it most days without starting engine. I in
fact do the same myself on a short trip. So, the fact you're running nine miles. So, it's not for everyone, but we think about a third of our
customers will choose that option.
CHATTERLEY: What about charging? This car is not for the masses by any means. I think you'd be the first to admit that. It's not built for people
who hang around charging stations either or the general public. How do you handle charging of this, or do you anticipate them charging at home? Like
what's the plan here for that?
HALLMARK: Yes. So today we know there's high research. We know that all of our customers charge at home or at work. That's the main usage pattern.
Because you've also got a petrol motor that can still give you 400 miles before you need to charge the battery again. You're never at risk running
out of everything, unless you do not fuel up.
So, home and work are the current pattern. And we'll also get all the data from our customers on regular basis. if you feel up at home or at work. And
they're averaging between 60 and 70 percent of their journeys on full electric mode even with 30-mile European certified range.
CHATTERLEY: It's fascinating, isn't it? I mean, you and I have talked in the past and we've talked about some of the supply chain challenges and
you've said look, it's not been a problem for Bentley whether it's semiconductors or beyond. But we've had a few concerning conversations on
this show about all the different car making brands that are saying look, we're going to go full on EV over the next 5 to 10 years. And people
telling around and saying there are not going to be the resources available, whether it's the battery, the individual components of the
battery or the resources that are available. It's simply not possible.
How are you at Bentley thinking about this, a sort of planetary concern if you're talking about protecting the environment and becoming net zero. But
it's also potentially a supply issue if not for you, for VW and for other makers.
[09:50:06]
HALLMARK: Yes. I mean, you're absolutely right that no one predicted. Let's say no one told us and even predict.
CHATTERLEY: Yeah.
HALLMARK: Certainly, conductor crisis that we've seen in the last couple of years. We've very lucky. And you have to put this into context because 18
million cars built and sold globally by all companies. I mean our record year at 14,560. We're still at 14,560 cars. So, we don't consume a great
deal of semiconductors. And we've been privileged to be part of the big group and have all of that secured.
Going forward, all of the technologies that we need are visible. The battery supply route is known. We have a plan A. We're constantly looking
at alternatives that are better in terms of performance, technology or cost. But before anything else comes along like solid state wheel, we're
convinced the back end of this decade or early next decade. We have a plan A. And without low volumes we're confident we can fulfill our requirements.
The bigger picture I agree is definitely constraints. And they're not going to go overnight.
CHATTERLEY: Yeah. I like the fact that you guys are talking about it because I feel with the margins on these cars and the kind of ownership
with the people then these are some of the big questions we should be asking. So, I'm glad you are.
Adrian, great to have you with us. Adrian Hallmark, Bentley CEO and chairman. Come back when you can give me more details, please.
HALLMARK: You'll be the first to know, Julia. Thank you.
CHATTERLEY: Oh, I'm going to hold you to that. Thank you.
We're back after this.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "FIRST MOVE."
All this week, we're exploring the ways people, communities, businesses and industries in Japan are innovating and preparing for a world beyond the
pandemic.
Today, we look at how the pivot to remote work is creating opportunities for different living solutions in the Japanese countryside.
CNN's Blake Essig reports.
(BEGIN VIDEOTAPE)
BLAKE ESSIG, CNN INTERNATIONAL CORRESPONDENT (voice-over): This morning, we're popping in on Yuki Nishide, who's actually in a meeting with a
colleague. His job, working in HR for a Tokyo-based IT company.
Except we're not in Tokyo. We're sitting riverside in snowy Hakuba near the city of Nagano.
Since early 2020, the 31-year-old has lived a nomadic lifestyle. Traveling from prefecture to prefecture, exploring Japan all while working a full-
time job.
(on camera): Do you find yourself more productive when you're sitting on the bank of a river, working as opposed to being in an office-based?
YUKI NISHIDE (through translator): I think productivity increases. I think it is easier to come up with better ideas when you work in a relaxed state
listening to the sound of the river flowing and feeling the breeze.
[09:55:05]
ESSIG (voice-over): Just before the pandemic, Nishide has signed up for a co-living service called ADDress. For around $350 a month the subscription
lets him stay at any of the 220 homes listed on its platform across Japan.
(on camera): Hakuba valley is just his latest stop.
Now, things do get pretty quiet here in the off-season but services like ADDress are hoping to attract more young people to the area.
TAKASHI SABETTO, FOUNDER, ADDRESS (through translator): Our members include doctors, nurses, cooks, monks and many other professionals. They are
creative and young in their 20s to their 40s and can provide their skills and work together to help promote and help these local areas.
ESSIG (voice-over): ADDress founder, Takashi Sabetto, says his subscribers have risen more than six times since the pandemic started. He believes that
this means that a rising number of people in Japan are looking for more diverse living options.
In fact, in the last two years people have been leaving Tokyo in record numbers. According to Japan's Ministry of Internal Affairs and
Communication, more than 410,000 residents moved out of Tokyo in 2021. The largest ever outflow of people from the capital since data became available
nearly a decade ago.
UNIDENTIFIED FEMALE: And now, with the pandemic, this has actually enforced changes that were already ongoing for a while of choosing a life in the
countryside over a city life, feeling that it makes much more sense to go for the countryside. And now with more telework options on the rise, this
has really taken on a new dimension.
ESSIG (voice-over): Evolving attitudes in the pursuit of new ideas are helping create innovative living solutions out of the pandemic.
While cities still play a central role in shaping Japan's culture and economy, rural areas are emerging bright spots. Providing new opportunities
and room for growth in every sense.
(END VIDEOTAPE)
CHATTERLEY: Its beautiful mountains.
That's it for the show. Stay safe. "Connect the World" with Becky Anderson is next. And I'll see you tomorrow.
(COMMERCIAL BREAK)
[10:00:00]
END
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