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Quest Means Business
F.D.A. Chief Says We Must Ensure Safety and Efficacy of Vaccine; U.K. and E.U. Officials Warn a No-Deal Brexit is Likely; European Cities Feel Pinch of Canceling Ski Season; Disney Shares Reach Blockbuster High; Starving, Too Hungry To Think About COVID: Venezuela Today; Last-Minute Spending Bill Keeps Government Open. Aired 3-4p ET
Aired December 11, 2020 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:22]
ZAIN ASHER, CNN INTERNATIONAL HOST: The Dow is trying to avoid three straight days of losses. Let's take a look and see how the Dow is doing
right now. It is basically flat as the market takes a pause. It holds its breath waiting to see any news on stimulus in the United States and on
Brexit in the U.K.
Those are the market, and this is the day so far: the White House tells a top regulator greenlight the Pfizer vaccine today or quit.
Boris Johnson announce and said it's likely there won't -- won't -- be a deal with Europe over Brexit.
And Disney's streaming empire strikes back sending shares to an all-time high.
Coming to you live from New York, it is Friday, December the 11th. I'm Zain Asher and this is QUEST MEANS BUSINESS.
Good evening. Tonight, the ultimate ultimatum over a COVID vaccine, sources tell CNN, the White House has ordered the F.D.A.'s boss to authorize the
Pfizer-BioNTech vaccine today or resign. The U.S. regulator is under huge political pressure to give the jab the greenlight.
Health Secretary Alex Azar says it's likely a matter of days before first Americans can get their doses. Donald Trump has been lashing out at the
F.D.A. in the meantime and its Commissioner for the methodical review.
He tweeted, "Get the damn vaccines out now, Dr. Hahn. Stop playing games and start saving lives."
Speaking to CNN, Sanjay Gupta, F.D.A. Commissioner Dr. Stephen Hahn told CNN that safety of course, must come first.
(BEGIN VIDEO CLIP)
DR. STEPHEN HAHN, FDA COMMISSIONER: If we don't do our job to reassure and ensure the safety and efficacy of the vaccines to the American people, then
we're going to contribute to vaccine hesitancy.
(END VIDEO CLIP)
ASHER: Elizabeth Cohen has more on where we are in this process. So Elizabeth, first of all, how unprecedented is it just to have the
administration putting pressure on the F.D.A. in this way? And what will it do to undermine and erode public competence in this vaccine? Do you think?
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Zain, this is truly unusual. I mean, other American Presidents, they know to keep politics out
of science. It just looks bad. It looks bad for politicians to be intervening on the science.
Apparently, President Trump, doesn't have a problem with this, and I don't know that he realizes what it makes him look like. I think he just has this
quick, quick, quick. Remember, he was promising the vaccine before Election Day. Speed seems to be what matters most to him.
So, it doesn't seem to matter to him that he looks like he is meddling in science. He also doesn't seem to mind that he could be undermining public
confidence in this vaccine.
Americans, I don't think really care whether the vaccine, the first shot is given Monday versus Wednesday versus Friday. I don't think they really
care. I think what they want to know is will this vaccine hurt me, and it's the F.D.A.'s job to review the data and make sure that this vaccine is
safe.
And if the FDA wants to take another 24 to 48 hours or a couple of days, they should. Americans will thank them for it.
When the President does this, he is actually working against his own interests. I don't know if he understands that.
ASHER: Elizabeth, standby, I do want to get the latest from Sarah Westwood who is at the White House for us. So, Sarah, just walk us through this. I
mean, how is the F.D.A. responding to Trump's threat? So what are they saying about this? Are they saying that it did happen? What are they
saying?
SARAH WESTWOOD, CNN WHITE HOUSE REPORTER: Well, Zain, the latest reporting from the F.D.A. is that Dr. Stephen Hahn in a statement is denying the way
that this phone call between White House Chief of Staff Mark Meadows and himself has been portrayed by the media.
He said it was a quote, "untrue representation of the conversation that he had with Chief of Staff Mark Meadows." CNN and other outlets are reporting
that in a phone call this morning, Chief of Staff Mark Meadows warned Hahn that if that vaccine was not authorized for emergency use by the end of the
day today that he might as well start looking for another job. He might as well just update his resume.
But Hahn is denying that that was the tone of the conversation that he had. But CNN has previously reported that the President is very frustrated with
what he perceives as a delay in authorizing the use of the vaccine particularly since in the U.K., the vaccine is moving forward at a faster
pace, so the President has privately been fuming about that.
So, this appears to be a pressure campaign aimed at making the President's wishes come true to get this vaccine out there. The President obviously
wants to take as much credit for the development of the vaccine as possible before he leaves office -- Zain.
[15:05:13]
ASHER: And it was sort of a huge blow to the President that the vaccine wasn't approved before the election. Also, the fact that the U.K. approved
this vaccine, which is an American vaccine before the U.S.
Sarah Westwood live for us there. Thank you so much.
I want to go back to Elizabeth Cohen now. So, Elizabeth, we know that a panel has independently endorsed this vaccine. Just walk us through what is
next in the process. We know the FDA still has to approve it technically, how long will that take? And what does that process entail?
COHEN: So Zain, this could be a very eventful weekend that we have in front of us. As you mentioned, an advisory panel to the Food and Drug
Administration gave their seal of approval to it yesterday. That's sort of step one. Let's take a look at what the next steps are.
Then the F.D.A. itself needs to issue this EUA, this Emergency Use Authorization. That has to happen. That's what our reporting says the
President is doing. We are told this could happen, maybe tonight, maybe tomorrow, it should happen quite soon.
And then a C.D.C. advisory committee has to vote on whether or not they recommend it. It is expected that they will, they will also lay out who
should get it and who should not. And then the Director of the C.D.C. has to sign off on that recommendation, which should happen very quickly in a
matter of hours.
There is a vote, the C.D.C. has -- the C.D.C. committee rather -- has a vote on Sunday. That's what we should all be keeping our eyes on. The
C.D.C. Committee votes on Sunday according to a schedule that they've already put out. And if that vote is a yes and we are told that it will be,
then that's when shots can go into arms.
ASHER: Elizabeth Cohen live for us there, thank you so much.
As some vaccine makers reach the finish line, others are stumbling in the final stretch. GSK and Sanofi now say their vaccine will not be available
until the end of the year. AstraZeneca is tinkering its dosage. It's also teaming up with Russia to find out how its vaccine works in combination.
With the Sputnik V shot as well.
U.S. Health Secretary Alex Azar says the Sanofi-GSK delay won't affect how many Americans are vaccinated by early next year. But what about other
countries?
This chart take a look here shows some countries have more than enough doses on order. Canada, the U.S. and the U.K. as you can see, lead the way
but there are very few developing nations in this top 10.
The People's Vaccine Alliance says the rich countries are basically hoarding the vaccines leaving the developing world behind.
Anna Marriott is Health Policy Adviser for Oxfam, Great Britain, one of the organizations that makes up the Alliance. She joins us live now from the
Isle of Wight. Anna, thank you so much for being with us.
So now that you have a lot of developing countries -- developed countries, I should say, with access to this vaccine, the U.S. approval is imminent in
this country, the U.K., they just approved earlier this week. What does that mean for developing countries? Why are they getting left behind in
this do you think?
ANNA MARRIOTT, HEALTH POLICY ADVISOR, OXFAM GB: So I think the first thing to say is that it's fantastic news that the vaccine is becoming available
in some of the country's worst affected like the U.K. and the U.S., but it's really important that we start paying attention to supply for the rest
of the world and we do have a significant problem there.
The People's Vaccines Alliance has looked at the data of vaccine deals that have been made across the globe and we find that unless urgent action is
taken by both governments and pharmaceutical corporations, nine in 10 people in the poorest countries are going to miss out on a vaccine until
the end of 2021.
And the problem is twofold. Firstly, not enough vaccines are actually being made. And secondly, as you say, rich countries are buying up the vast
majority of those that are available next year.
And to fix that, this doesn't have to be a competition between vaccinating people in the U.S. or the U.K., in competition with people in Pakistan or
Nigeria, for example. We can fix this if we fix the supply problem.
And to do that, pharmaceutical corporations need to share their vaccine science and know-how and technology so that more manufacturers can get on
board, we can upscale that production, and if you like, flood the world with safe, cheap and effective vaccines.
ASHER: When you have this situation whereby, you know, the likes of Canada have bought enough dosage to basically vaccinate their populations, as you
guys say five times over. But then poorer countries like Pakistan and Nigeria where I'm actually from, don't have enough and in fact, you say
that nine out of 10 people in developing countries will not have access to the vaccine at all.
When you have that kind of chiasm between the rich and the poor, what does that do to the economic disparities between developed under and developing
nations?
[15:10:02]
MARRIOTT: Well, we're already seeing just such huge economic fallout in those countries, we're also seeing poverty levels rise for the first time
in 20 years. We're seeing hunger rise. Some market analysts, I believe, are predicting that we're going to see a boost to the global economy to the
tune of two percent GDP in countries like the U.S. and the E.U.
But when you dig deeper into their analysis, you see that it rests on an assumption that we do have global access to a vaccine everywhere. And in
fact, if you're a business leader, for example, and you imagine a scenario where we have mass protection in some of the richest countries, but only
very partial protection in some of the poorest countries, if you're a global retailer dependent on a global supply chain, then does that look
like economic recovery? I'm not sure it does.
If you're an airline dependent on flights across the globe, but only able to fill flights between a handful of rich countries, I think you'd also
question whether that is an economic recovery.
So I think, as well as continuing deep economic damage in some of the poorest countries in the world, unless we get a people's vaccine available
to everybody, that global economic crisis is going to continue for years.
ASHER: You make a good point, you know, the world is so interconnected that clearly there will be a domino economic effect, regardless of whether the
countries are rich or poor.
So the Oxford-AstraZeneca vaccine, they've actually come out and said, when their vaccine is approved, when it's ready, they will they have actually
pledged that they will spend -- they will use the vaccine, I think more than 60 percent of their vaccine dosage will go to developing nations, will
go to poorer countries.
How much of a step is that in the right direction, do you think? I mean, obviously, the Pfizer vaccine is already approved in some countries. It
might take a while to get the Oxford-AstraZeneca one, but surely it is a move in the right direction.
MARRIOTT: Yes, and I think if you compare that to a corporation like Pfizer and Moderna who have reserved virtually all of their supplies for rich
countries, AstraZeneca does stand out as a company that has made more effort under the conditions set on it by Oxford University, to expand
supply, to expand the technology to other manufacturers. And that is definitely a good thing.
But if you look at the supply that they're able to get to, to 2021, we're still -- they're still only able to cover around 18 percent of the global
population.
So we think that AstraZeneca too and Oxford University too should share their technology, no one company can get us to global access. So if we
share that vaccine science and know how more manufacturers can get on board, we can scale up the production as quickly as possible, and get our
public health recovery and our economic recovery back on track as quickly as possible.
ASHER: So as you say, it's all about sharing the intellectual property. Anna, live for us there. Thank you so much. Appreciate you being with us.
All right, coming up, skiers, gliding down slopes like these used to be a familiar sight, but not this year. We will take you to one of the few
European ski areas that's welcoming travelers this Holiday season. That's next.
(COMMERCIAL BREAK)
[15:15:58]
ASHER: All right, the pound isn't doing too well as Brexit negotiations stall again. Right now, the pound is trading, let's take a look here at
$1.32. The lowest level by the way, in about three weeks. Investors certainly spooked as officials warned that a no deal Brexit may be the most
likely outcome at the end of December. Anna Stewart has more.
(BEGIN VIDEOTAPE)
ANNA STEWART, CNN REPORTER: The talks between the E.U. and the U.K. aren't going anywhere fast. The prospect of a no-deal Brexit seems to be
increasing. Here's what U.K. Prime Minister Boris Johnson had to say.
BORIS JOHNSON, BRITISH PRIME MINISTER: There's a way to go. We're hopeful that progress can be made. But I've got to tell you that from where I stand
now, here with blight, it is looking -- it's looking, you know, very, very likely that we will have to go for a solution that I think would be
wonderful for the U.K., we'd be able to do exactly what we want from January the first, obviously it will be different from what we set out to
achieve.
But I have no doubt that this country can get ready. And as I say, come out on world trade terms.
STEWART: The Prime Minister has suggested that leaving the E.U. like this is analogous to the arrangement that exists between the E.U. and Australia,
a comparison that's drawn much derision.
Australia trades with the E.U. largely on W.T.O. terms. So this is an effect no deal. Not only that, but Australia has been negotiating a trade
agreement with the E.U. for the last two years.
Former Australian Prime Minister Malcolm Turnbull in an interview with the BBC said that the U.K. should be careful what they wish for. And of course,
geography here really matters.
The U.K. is far more reliant on the E.U. than Australia. In fact, it is its biggest trading partner. The country is readying for the worst case if the
U.K. trades with the E.U. on W.T.O. terms. That means border checks and costly tariffs.
Already there are long lorry queues at U.K. ports, a result of businesses stockpiling in preparation of a no-deal Brexit as well as the impact of the
pandemic.
Talks between the E.U. and the U.K. will continue this weekend. But at this stage, there's little hope of a breakthrough in the stalemate.
Anna Stewart, CNN, London.
(END VIDEOTAPE)
ASHER: Europe is split over whether it's safe to take a ski vacation this winter. France says it's keeping its slope closed until at least next
month. Germany wants its E.U. partners to keep resorts closed over the Christmas holidays as well to fight the spread of the coronavirus.
Switzerland is not in the E.U. and is ignoring that advice. Skiing is simply too important for its economy. Italy and Australia are staying shut
despite the financial fallout. Ski revenues account for roughly 15 percent of Austria's GDP.
Our Melissa Bell takes a closer look at the tricky situation at Europe's ski resorts.
(BEGIN VIDEOTAPE)
MELISSA BELL, CNN INTERNATIONAL CORRESPONDENT (voice-over): Some come to the spectacular views and the fresh air, but many come for the sport. Each
year, the European ski industry brings in 34 billion euros in revenue, half the world's total, according to an industry expert.
But not this year. Ski lifts will be at a standstill this Christmas in many of Europe's top skiing destinations because of COVID-19 restrictions. And
that means trouble beyond the ski industry. Entire villages, like Megeve in the French Alps, are up in arms.
CATHERINE JULLIEN-BRECHES, MEGEVE MAYOR (through translator): The ski lifts here in Megeve will lose eight million euros in turnover. And we know that
one euro spent on lifts means seven euros spent in the village, so that gives an idea of the extent of the economic damage for villages.
BELL (voice over): But by early December, after much debate and mutual pressure, France, Germany, Austria and Italy decided not to open their ski
lifts, a decision met with incomprehension by those whose livelihoods depend on them.
MICHAEL CUGIER, MEGEVE SKI LIFTS (through translator): It's an outdoor activity, and I think in terms of big crowds, we are not confronted with
the same crowds you see in the metro in a big city.
[15:20:01]
BELL (on camera): But just 60 miles away, across the border here in Switzerland, the ski lifts are open. With the resorts like Verbier putting
in place special restrictions, like masks that need to be worn on the lifts, and social distancing put in place, as well, in order to make sure
that people can ski as safely as possible.
BELL (voice-over): Laurent Vaucher, who runs Verbier ski lifts, says that much has been learned since the Austrian ski resort of Ischgl was
identified by health officials as a major cluster during the first European COVID wave.
LAURENT VAUCHER, DIRECTOR, VERBIER SKI LIFTS: Last Spring, we didn't have any measure in place. We didn't have any masks, we didn't have any social
distance. So now that the game is different, we are pretty much sure that we can do good work in order to keep the ski resort safe.
BELL (voice over): Measures are being taken on the slopes and in the village.
Switzerland's infection rates are rising, and local leaders say they want to leave nothing to chance.
SIMON WIGET, DIRECTOR, VERBIER TAVERN: It's not only to save the Christmas holiday but it's to save winter. And it's to save, as well, the reputation,
because we know that everybody is watching us, and if we make a mistake and afterwards, due to the mistake, we have a corona cluster, we will be
pointed as a bad organization.
BELL (on camera): The condition here in the Alps this season are incredible. Loads of snow, plenty of sunshine. And the fear was that people
might be tempted to flock to Switzerland, to try and make the most of the slopes. That's why several European countries have put in place
restrictions to prevent their nationals from doing just that.
Melissa Bell, CNN, Verbier.
(END VIDEOTAPE)
ASHER: A number of coronavirus cases are surging in many European countries. There's speculation that London will enter a strict tier three
level lockdown next week. France has delayed lifting its restrictions as cases remain high and German lawmakers are expected to meet in the coming
days to tighten their own lockdown measures as well.
Lockdowns have made this a holiday shopping season certainly like no other. Jewelry giant, Pandora had to close about a fifth of its stores in
November, but its top executive says the company can withstand that.
The CEO of Pandora, Alexander Lacik joins us live now from Copenhagen. So this Mr. Lacik, you actually took over the company in February, around
February 2019, and then a year later, the pandemic struck.
Obviously, before you took over and in the immediate aftermath of you taking over, Pandora had a lot of plans to ramp up its business model and
was making all these changes and they did seem to be working, and then the pandemic struck. How much of a setback has the last 10 months been for you?
ALEXANDER LACIK, CEO, PANDORA: Hi there. I think that in a kind of strange way, the pandemic actually accelerated our turnaround efforts. So in a way
we started the rebranding or relaunch last fall. We started getting some momentum towards quarter four of last year, kind of good to start off the
year.
And then the pandemic struck in March, as we all know, that kind of got us busy to change our business plan, but essentially kind of due to things we
had planned, but just accelerating those efforts. And, you know, we've also seen that because of the pandemic, people have stayed home and they spent a
lot less money on travel and entertainment, and a lot of things and I think the jewelry category, as such, in fact, has fared quite well.
And within that, we have clearly gained market share also based on kind of the activities that we have engaged in.
ASHER: So within the challenge, there was I guess what you're saying is an opportunity there, but just give us more details in terms of how this
pandemic forced you to grow and rethink your business model and changed things for the better.
LACIK: So I mean, the underpinning thing of the turnaround of our business was to kind of strengthen the brand and the proposition, the base
proposition. Within that we had a couple of different things. One of them was kind of older marketing activities. The other one was, let's say that
our retailing efforts and in particular our digital efforts, both when it comes to digital marketing, as well as our e-commerce business.
And when the pandemic struck, these things somehow kind of came together. And in particular, e-commerce business had done fantastically well.
I mean, this year, we'll probably be doubling the size of our e-commerce business, while still delivering on the customer promise that we have
online.
So a lot of the investments that we put in place in the back end of 2019 have really come to play this year.
ASHER: Right. So online sales was obviously a massive opportunity for you. Do you still see -- I mean, obviously jewelry is something that, you know,
I've seen you talk about this in interviews before that people sort of like to try on, they want to touch it, they want to feel it. I know that I
certainly do when I buy jewelry.
So when the vaccine comes and everything goes back to normal and people are shopping in stores again, do you still think that online is going to be a
major source of your growth?
LACIK: I mean, listen, I mean, we're all staring into a crystal ball here. The one thing I would say is five years from now, probably we'll see a
larger proportion of our transactions being concluded online than it is happening today. I think that that's probably fair to say.
[15:25:11]
LACIK: However, as you say, this is a category where you want to touch and you want to feel and maybe you want to even look at how kind of the style
fits you.
We are also, to a larger degree, a gifting brand, 60 to 70 percent of our customers are men typically buying for you know, either their wives or
their daughters or grandmothers or whatever. And, you know, it's fair to say guys need help when it comes to buying jewelry and today, online is a
good tool.
But you know, the service that we offer in the stores is unmatched at the end of the day.
So I do think, this is probably true for every retail. There's going to be now a symbiosis. You have to kind of manage both the physical world as well
as the digital world and let's say the glue in between, so I think when everybody talks about Omni retailing, this is it and the pandemic has
really put the finger on retailers to think through the whole value chain here.
So as you say, I mean, as a customer, I might start my journey online. I might conclude it online or I might conclude it offline and there's an
interaction in the whole shopping journey, so you have to be good in all those aspects, so the kind of the bar has risen.
ASHER: You're right about two things. Number one, we don't have a crystal ball in terms of what's going to happen next year; and number two, men
certainly do need help when it comes to buying jewelry. I'll let my husband know that you said that.
Alexander Lacik live for us there. Thank you so much, appreciate it.
All right, still to come, millions of Americans who desperately need aid are on the brink of economic disaster, but Congress still cannot figure out
what to do about it. We'll have more on that just ahead.
(COMMERCIAL BREAK)
ASHER: Hello, everyone, I'm Zain Asher. Coming up on the next half hour of QUEST MEANS BUSINESS. Disney shares have hit an all-time high after adding
a stupendous amount of content to its streaming service.
[15:30:07]
And we'll take to Venezuela where the poverty is so dire, the coronavirus pales in comparison.
Before that though, these are the headlines on CNN at this hour.
U.S. President Elect Joe Biden introduces several more cabinet members and top aides in the past few minutes. He said some of them are familiar faces
but all are experiencing new challenges as well.
A source tells CNN Biden's goal is to have his remaining cabinet selections announced before Christmas.
One of Hong Kong's most outspoken critics of the Chinese government could face life behind bars.
Media tycoon, Jimmy Lai, is accused of colluding with foreign forces and he's being charged under a controversial national security law. It comes
amid a crackdown on democracy activists.
And a Chinese journalist working for Bloomberg is being detained in Beijing. Chinese officials say that she's being held on suspicion of
endangering national security.
The journalist was last seen in public on Monday when security officials escorted her from her apartment building.
With just hours to spare, the U.S. senate passed a stopgap spending bill that will avert a government shutdown at midnight.
Lawmakers now have one more week to reach an agreement on emergency COVID relief. So far those talks are going nowhere.
And the fate of millions of Americans who desperately need aid hangs in the balance.
Manu Raju is joining us live now from Capitol Hill. So Manu, we've got have one disaster averted just in terms of the stopgap funding bill passed.
But just walk us through where we are on the stimulus package, what are the major sticking points and what is the likelihood that we could see a deal
in the coming days, do you think?
MANU RAJU, CNN SNR. CONGRESSIONAL CORRESPONDENT: The prospects are still very grim, unfortunately, for so many people who are waiting for a deal.
The two sides are still pretty far apart.
Now a deal on Capitol Hill could come together quickly, that is still possible. But at the moment it's unclear if that will actually happen.
Basically there are -- there's a group of senators that have been negotiating for several days over a $908 billion package. But they have
been stuck on two major sticking points.
One, to provide $160 billion to states and cities, that's what Democrats have been demanding. And Republicans want protections from lawsuits that
could be waged against businesses, against universities and others. They want those liability protections to be part of the package.
But there has not been an agreement on the liability package and as a result that's threatening to tank the entire package all together.
Now at the same time, ultimately the decisions are going to have to be made by the top leaders in congress, that's Speaker Nancy Pelosi in the U.S.
House as well as the Senate Majority Leader, Mitch McConnell who, of course, is a Republican.
They need to come together and decide what ultimately should be approved at the end of the day. But they are far apart themselves, they're actually not
even negotiating at the moment.
Pelosi is still demanding the money for states and cities, McConnell wants a very narrow package instead. And ultimately, you mentioned it, they
passed a week-long stopgap measure to keep the government open until next Friday.
The hope is that perhaps they can add some of the relief into the next provision to keep the government open through next year. The question is
can they agree to do that, and what they would agree to do that. We still don't know.
But time, of course, is ticking here on Capitol Hill.
ASHER: So Republicans basically want -- they're adamant about liability insurance for businesses can't get sued if somebody gets a COVID case on
their premises. Democrats want more state and local aid, a lot of state coffers have been decimated by the coronavirus.
So which side, at this point, Manu, is likely to back down, do you think?
RAJU: Well, most likely it appears is that both provisions will eventually get dropped out at some point.
Because what McConnell has been telling Republicans and Democrats is that even if this group cut a deal on those two issues, it's unlikely to even
pass the senate because so many Republicans are opposed to the idea of giving more money to states and cities. So that's why he's pushing for a
smaller package.
But Democrats just don't see it that way, they see states and cities as needing the funds because of concerns that people could get laid off like
first responders and the like. And they are demanding that money to be included.
So ultimately how do they resolve it? Because there are so many other issues that are still central here including jobless benefits that are
expiring.
This group has talked about $300 a week in additional jobless benefits, also loans for small businesses that are laying off people and they're
shuttering themselves, can they pass more loans for those small businesses? Those are among the issues.
Not to mention billions of dollars for distributing the COVID vaccine. That is also part of this package.
[15:35:00]
So much is so critical, on the line here. But what they ultimately can agree to is still an open question despite the needs around the country.
Zain.
ASHER: Manu Raju, live for us. Thank you.
U.S. President Donald Trump is escalating tensions with Beijing just weeks before he leaves office.
As CNN's Sherisse Pham explains, he's targeting China's top computer chip maker in an attempt to curb its tech ambitions and to make it harder for
President Elect Joe Biden to rebuild relations.
(BEGIN VIDEOTAPE)
SHERISSE PHAM, CNN CORRESPONDENT: Advanced computer chips. They're key to China's ambitions of becoming a leader in global technology.
It's got a long way to go to catch up. China's top chip maker, SMIC, still lags behind companies like Intel or TSMC because it hasn't yet mastered how
to make leading edge semiconductors.
Still the United States is targeting SMIC warning suppliers warning suppliers against doing business with it and adding the company to a black
list that cuts it off from American investors.
The move's part of a wave of actions against Chinese companies that President Donald Trump is rushing out in his final weeks in office.
They'll help cement Trump's long standing legacy as a hardliner against Beijing --
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: So I'm taking on China.
PHAM: -- and box in President Elect Joe Biden.
JOE BIDEN (D), PRESIDENT-ELECT OF THE UNITED STATES: The president's approach to China has been backwards.
PHAM: Biden says he'll do business with China if Beijing plays by international rules. But it'll be hard to undo some of the measures Trump
has taken against Chinese companies.
PAUL TRIOLO, HEAD OF GEO-TECHNOLOGY, EURASIA GROUP: The China hawks want to cement their legacy and, at the same time, try to tie the hands of the new
Biden Administration coming in.
The U.S. is concerned -- this administration's been very concerned about China's rise as a technology power and the role of some of these companies
in China's military modernization.
PHAM: The U.S. has placed restrictions on marquee Chinese firms like SMIC and Huawei saying they pose a national security risk, allegations the
companies have repeatedly denied.
Beijing officials have also pushed back saying the true purpose of the U.S. is to make sure that China never catches up.
A government spokeswoman saying --
"The U.S. allegation against China is typical double standards... forbidding others to do what it is doing itself. Its true purpose... to
create excuses to justify a high-tech blockage against China."
Trump still has a few weeks left in his administration and analysts say they expect more pain for Chinese companies is coming.
PHAM: Sherisse Pham (Voice Over): Sherisse Pham. CNN, Hong Kong.
(END VIDEOTAPE)
ASHER: For many Venezuelans, the coronavirus pandemic is not front of mind. The disease is overshadowed by a desperate need for essentials like food
and water.
We'll go to Caracas next.
[15:40:00]
ASHER: Avoiding exposure to COVID-19 is a luxury that many Venezuelans simply don't have. In the country's poorest neighborhoods concerns about
catching the disease take a back seat to more pressing needs like, for example, food, water and shelter.
Isa Soares has more.
(BEGIN VIDEOTAPE)
ISA SOARES, CNN CORRESPONDENT: Life has come to stand still for many on the streets of Caracas, Venezuela.
After decades of corruption, economic pain and violence, the pandemic's now robbing many here of even a minimal income intensifying one of Venezuela's
most pronounced illnesses; extreme hunger.
Celestina Rondon (ph) tells me she lost both her boys to gun violence 16 years ago, shot just a few streets away from her home.
"There was so much war, they killed without mercy," she says.
Today, she's fighting a different battle. Trying to make her $1 pension amid hyperinflation last the month.
SOARES (Speaking in Foreign Language)
"I eat baloney, rice and sausages if there's any," she says. Today there isn't much.
She has -- what, three sausages. A tiny bit of rice up here. Frozen water. And then, if I open here she's got plantain and leftovers that now --
swarming flies.
Water, too, is in short supply here. A result of Venezuela's deteriorating infrastructure after decades of mismanagement under President's Hugo Chavez
and Nicholas Maduro.
The little that does flow out she uses to fill these up. Avoiding COVID-19 is the last thing on her mind.
"When there's water, we store it so it lasts. And when there's money, we buy bottled water," she says.
Down the road, I meet 80-year-old Francisca Desacia (ph) who behind her smile hides a world of pain. She tells me has her fridge, broken as a
result of blackouts that have plagued the country more frequently over the last few years.
She shares this house with her two sons. And here resignation adorns its every corner.
A report last year found that 96 percent of Venezuelans are living in poverty. Nowhere is that more evident than Petare, Venezuela's biggest
slum.
Here children quietly line up for their only meal of the day. Run by NGO Alimenta Petare (ph), this soup kitchen alone feeds 80 children.
Volunteer Yalitza Rodriguez (ph), a mother herself, can't quite believe how bad it has gotten.
"We have lots of vulnerable families," she says. "Many of whom don't even have breakfast."
With hunger comes malnutrition. And in Venezuela, there are 639,000 malnourished children under five years of age according to a national
survey.
So it's no surprise that this NGO worker who prefers to remain anonymous for fear of government reprisals that so many are knocking on her door.
"We were feeding 14,000 children and now, since the pandemic," she says, "we have 25,000 children."
Prominent Venezuelan nutritionist and activist, Susana Raffalli, says what Venezuela is witnessing is a crisis of grave proportions.
Do you think Venezuela will end up having a lost generation or even two lost generations here?
SUSANA RAFFALLI, NUTRITIONIST & ACTIVIST (Speaking in Foreign Language)
(Captioned) "I wish I didn't have to say this but we're looking at two lost generations. We have seen an exponential rise in prostitution, of
transactional sex for food. We have seen an exponential rise in child labor in exchange for food."
SOARES: Back at the slums, I feel this weight being carried with all I speak to. Including this health care worker who now also has to worry about
water.
"Everything is bad," she says. "I have my mom bedridden and I have to have water."
Exhausted, she's struggling to make ends meet amid a backdrop of hyperinflation where even her job has lost its value.
How much do you earn a month? (Speaks in foreign language):
UNIDENTIFIED SPEAKER: (Speaking in Foreign Language)
SOARES: (Foreign language), two dollars.
Her mother, who she looks after, her pension is one dollar. So this family right here, three dollars per month.
Overburdened with life, I asked her if its all taking a toll.
"Everything we're living through is so tough," she says. "It makes me not want to live at all."
[15:45:00]
Heartbreaking words that will no doubt resonate with many here. A country where poverty and hunger are now eating away at Venezuela's soul.
Isa Soares, CNN. Caracas, Venezuela.
(END VIDEOTAPE)
ASHER: Latin America's one of the regions in most dire need of a vaccine plan. CNN's Matt Rivers shows us how hard it is for the region to even get
doses in the first place.
(BEGIN VIDEOTAPE)
MATT RIVERS, CNN CORRESPONDENT: To defeat the pandemic, countries need a vaccine. Which means either producing vaccines domestically and/or buying
them from others.
Rich countries can do both. Middle-income countries usually can afford to buy vaccines abroad but poor countries can do neither.
Countries like Bolivia with one of the world's highest COVID-19 mortality rates and a suffering economy.
But on a video call, the country's health minister tells CNN help is on the way.
DR. EDGAR POZO, HEALTH MINISTER, BOLIVIA (Speaking in Foreign Language):
RIVERS: He says -- "Luckily, there are other caring countries that can take care of those of us with needs and that's the main principle of the COVAX
program."
COVAX is the U.N. backed initiative that is aiming to get vaccines into the hands of the world's poorest countries like Bolivia. And fast.
In Latin America alone, more than two dozen countries will receive vaccines under the program including ten that will receive them free of cost.
POZO (Speaking in Foreign Language):
RIVERS: "We don't have the resources to get the vaccine on our own. Buying millions of vaccines would be about impossible so this is crucial."
But joining the program is one thing. Physically getting people vaccinated across Latin America is an incredible challenge. Even in a region with
plenty of experience with vaccine campaigns.
FELICIA KNAUL, DIRECTOR, INSTITUTE FOR ADVANCED STUDIES OF THE AMERICAS, UNIVERSITY OF MIAMI: We've seen how to do this in Latin America, but it's
not easy. And I think we've seldom had to do it as this scale.
RIVERS: Initial vaccines need to be kept cold. Doing that in remote villages, some in the tropics, will be very hard.
Countries throughout the regions have indigenous communities that don't speak Spanish so language barriers exist.
And in many places, inherent mistrust of national and local government could make vaccination messages fall on deaf issues.
KNAUL: Distance is an issue. Getting people to move to where the vaccine is going to be an issue either way. And then making people believe that the
vaccine is actually important, necessary.
RIVERS: And this is assuming that all goes right with the vaccine production and the COVAX program.
JARBAS BARBASO, ASSISTANT DIRECTOR, PAN AMERICAN HEALTH ORGANIZATION (Speaking in Foreign Language):
RIVERS: The assistant director for the Pan American Health Organization says -- "We know in public health emergencies in the past like H1N1, the
poorest countries of Latin America and the Caribbean received the vaccine six to eight months after we started the distribution.
And in many cases well after richer countries got the vaccine."
There is every hope that COVAX will work, that vaccines will arrive on time and that people will actually take them. But for those in charge of making
all that happen, there will be some sleepless nights until it does.
POZO (Speaking in Foreign Language):
RIVERS: He says -- "The worst case scenario would be not having access to the vaccine or that it arrives a lot later than predicted. That would mean
more sick people, more deaths and even more dangerous and worrying situation."
RIVERS (Voice Over): Matt Rivers, CNN. Mexico City.
(END VIDEOTAPE)
ASHER: Disney Plus opens the flood gates on its streaming competitors. We'll talk about the massive slate of announcements and what they mean for
the entertainment industry. That's next.
(COMMERCIAL BREAK)
[15:50:00]
ASHER: Disney is unleashing a major offensive in the streaming wars.
The company says it's bringing more than 100 new projects to Disney Plus in the next few years. They also projected subscribers to the service would
triple over the same period.
The announcements came at an investor event on Thursday. They seemed very pleased with what they heard.
Disney stock is actually soaring today. Take a look here, $176, that is at an all-time high, roughly around (ph).
The sheer volume of Disney's announcements feels a bit overwhelming. They're aiming all this content right at their competitors. Almost like a
super weapon familiar to the Disney catalog.
(BEGIN VIDEO CLIP)
(Movie Clip)
(END VIDEO CLIP)
ASHER: CNN's chief media correspondent Brian Stelter, joins us live now from New York.
So Brian, what has the pandemic actually meant for streaming wars, for this pressure on media companies like Disney? Like Warner Media, our own
company, to offer bigger, better, badder content?
BRIAN STELTER, CNN CHIEF MEDIA CORRESPONDENT: The pandemic is speeding up these trends in the same way that it's speeding in so many trends all
around the business world.
Last week Warner Media said that every film that was going to be in theaters in 2021 will also be on HBO Max. That's a revolutionary move.
Disney is doing things a little bit differently. But even the movies that it will exclusively release in theaters next year, they are still heading
to streaming. Disney's message is this is all about streaming.
You almost start to forget that they own old fashioned broadcast networks and cable networks because they are so committed to streaming.
And, as you mentioned, that stock where it's at its all-time high, it was at half this point when the pandemic began in March. Disney bottomed out
around $85. The company was bleeding badly, the theme parks were closed, movie theaters were closed.
This rebound is extraordinary for Disney.
ASHER: So when Disney's competitors, when Netflix and other sort of streaming companies hear what Disney has done and what they've announced,
they think what?
STELTER: I think -- well, frankly Disney is the biggest kid on the playground right now. And it is showing -- it's getting even bigger by
flexing its muscles.
This was really cultural shock and awe yesterday, announcing 100 new shows and movies mostly on streaming. And that raises the stakes for every other
media company that wants to gain streaming subscribers.
So if you're NBC, if you're Warner Media, if you're Viacom CBS, you're suddenly thinking I'm going to have to spend even more to make even more
shows in order to keep up with Disney.
Now, of course, Disney is raising the cost of its streaming services as well. Disney Plus will cost a dollar more starting next year. That, of
course, makes a lot of sense given how much programming they are adding.
But Disney's making a bold statement here saying that they're going to have everything anybody wants to watch on this streaming service. And if you are
a competitor, you're thinking, OK, what else am I going to add to my service in order to keep up?
Of course, the reality is that most people are going to pay for multiple streaming services but Disney has a huge competitive advantage. Right now
they are the closest to Netflix even though Netflix is still miles and miles and miles ahead.
ASHER: So Disney's actually going to be spending about $10 billion a year on this particular division, the streaming division. How do they hope that
that's going to pay off in terms of subscriber numbers and growth over the next few years?
STELTER: I think the idea is that it's a flywheel. Because you're watching Disney on your TV then you're going to more than likely go to the theme
parks. Once the pandemic calms down, you're going to buy Disney merchandise, et cetera.
That's always been the Disney promise and it's now happening in the streaming world.
Warner Media, of course, a little bit different, our parent company, doesn't have that same kind of fly wheel. But it does these incredible
franchises, these movies that are going to be on demand and in theaters at the same time.
[15:55:00]
And even though there's a lot of angry filmmakers right now and Hollywood is in a turmoil about this, we are seeing the future becoming the present.
We are seeing what was promised to come years from now happening more quickly because of the pandemic.
ASHER: Brian Stelter live for us there. Thank you so much.
Moments left to trade on Wall Street. We'll have the numbers right after this.
(COMMERCIAL BREAK)
ASHER: All right. It is the last few minutes of trade on wall street on this Friday. Let's take a look and see how the Dow is doing.
We spent much of the day in the red as you can see but over the past couple of hours, the Dow has managed to eke out a small gain.
It's been a tepid day of trading as investors await authorization of a COVID-19 vaccine and, of course, hopes of a breakthrough on stimulus talks
but both sides seem very far apart on that.
We'll wait and see what happens in terms of stimulus talks.
Also the likelihood of a no-deal Brexit according to Boris Johnson seems to have gone up. That that is also weighing on the market.
The Dow looks set to close slightly up.
In terms of the components, it is basically a one-horse race -- we were talking about this a second ago with Brian Stelter.
Disney is leading the index in its runaway gains after announcing a slew of streaming content. They're going to be adding 100 new pieces of content a
year and that's made their competitors like Netflix certainly very nervous.
Goldman Sachs and Boeing and AMEX trail the index.
Markets are down in Europe today as investors react to the dwindling chances of a post-Brexit trade deal.
The German benchmark saw the steepest dip at Friday's close, down nearly 1.4 percent. Stocks in Paris and London likewise fell as well.
All right. That is QUEST MEANS BUSINESS. I'm Zain Asher in New York.
The news continues right here on CNN. Have a great weekend.
ANNOUNCER: And BREAKING NEWS.
JAKE TAPPER, CNN HOST, THE LEAD: Welcome to THE LEAD, I'm Jake Tapper. And we start with breaking news in our health lead.
"Authorize the coronavirus vaccine from Pfizer today or you're out." That is reportedly the message from the White House to FDA Commissioner Stephen
Hahn.
According to two sources who tell CNN the White House Chief of Staff Mark Meadows told Hahn to submit his resignation letter if he does not OK the
U.S.'s first coronavirus vaccine by close of business today.
Now Dr. Hahn is now disputing the story which was first reported.
END
