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First Move with Julia Chatterley
Five Dead, 40 Plus Injured After Vehicle Drives into Christmas Parade in Waukesha, Wisconsin; IOC Video Call with Peng Shuai Raises more Questions; Private Equity's KKR Makes Telecom Italia Takeover Offer; Biden to Renominate Powell for New Fed Term; Next Gen Food Rolls Out Tindle, A Chicken Substitute; Aether Takes Carbon Out of Sky to Make Diamonds; El Salvador to Create Volcano-Powered "Bitcoin City". Aired 9-10a ET
Aired November 22, 2021 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:20]
ANNCOUNCER: This is CNN breaking news.
JULIA CHATTERLEY, CNN INTERNATIONAL ANCHOR: Hello. I'm Julia Chatterley. And we begin with breaking news from the U.S. State of Wisconsin. Five
people have lost their lives and more than 40 have been injured after a vehicle drove into a Christmas parade in Waukesha on Sunday. Authorities
say it appears the driver may have been fleeing from another incident.
Natasha Chen has more but we must warn you, these images are disturbing.
(BEGIN VIDEOTAPE)
NATASHA CHEN, CNN NATIONAL CORRESPONDENT (voice-over): A Christmas parade in Waukesha, Wisconsin, turned deadly after an SUV plowed into the crowd
Sunday afternoon.
UNIDENTIFIED MALE: There's a car going westbound pushing the parade route. A red Escape.
CHEN: Watched from another angle, as the red vehicle speeds down the street barely missing a child wearing a pink coat.
UNIDENTIFIED FEMALE: There were a lot of screams and we almost thought maybe it was Santa, but it was a red SUV and it hit a lot of people.
CHEN: This disturbing video shows the incident from above and the chaos after the car sped into the parade route, mowing down performers and
onlookers.
UNIDENTIFIED FEMALE: I saw maybe three people right in front of me get hit. I saw people right away run to the people that were hit and start doing
CPR. And I saw people on the ground. There's blood. It was really bad.
CHEN: Angela O'Boyle tells me she just started watching the parade when she filmed this video from her apartment balcony.
ANGELA O'BOYLE, WITNESS: The next thing I heard was screams and turned my head and saw the car come and plot into the band that was just past my
balcony at that point. It hit at least two people right away, rolled over both of them, and then continued down the road.
CHEN: In the city's livestream, you can see a marching band playing. The red SUV then barrels down the street. Moments later, the video shows a
police officer chasing after the vehicle.
UNIDENTIFIED MALE: We have multiple casualties. We got about 10 to 15 people down in the street.
CHEN: According to the city of Waukesha, at least five people are dead and over 40 injured.
DAN THOMPSON, WAUKESHA POLICE CHIEF: The vehicle struck more than 20 individuals. Some of the individuals were children, and there are some
fatalities as a result of this incident.
CHEN: At least 28 of those hurt, were treated at local area hospitals.
STEVE HOWARD, WAUKESHA FIRE DEPARTMENT CHIEF: We do not have any specifics on the -- on the injuries at -- at this time. All the patients were
transported.
CHEN: Authorities are investigating the event this morning.
THOMPSON: We're no longer looking for a suspect vehicle. We do have a person of interest in custody at the moment. But this is still a very fluid
investigation.
CHEN: The FBI is aware of the incident, and President Joe Biden has been briefed on the situation.
Meanwhile, in Waukesha, the community is stunned and shaken by how the celebration turned into a tragedy.
MAYOR SHAWN REILLY, WAUKESHA, WISCONSIN: I'm deeply saddened to know that so many in our community went to a parade but ended up dealing with injury
and heartache.
(END VIDEOTAPE)
CHATTERLEY: Natasha Chen reporting there.
And CNN's John Berman spoke with a witness who was at the parade to campaign for a local political office.
(BEGIN VIDEO CLIP)
ANGELITO TENORIO, WITNESSED SUV DRIVE INTO CROWD AT CHRISTMAS PARADE: I was initially marching the parade with the Waukesha County Democrats. And my
family and I and my campaign manager, we had just finished the route. And we decided that we wanted to circle back to Main Street, to watch the rest
of the parade, watch the rest of the performers, dancers, musicians and then grab some food and enjoy the evening.
And as we were heading back towards Main Street, that's when I saw the SUV just zooming down along the parade route. And then all of a sudden, I heard
this loud bang, and immediately deafening cries and screams from people at the area, people at the parade. And it was absolutely chaotic. It was
horrifying. There's a lot of uncertainty, a lot of unknown. Nobody knew if this was an attack or if this was an accident or if it was a deliberate
attack on the people at the parade.
And people just started fleeing, running away from the scene, leaving behind their belongings, grabbing their children, calling, screaming,
looking for their loved ones. And when the crowd cleared out, that's when it looked like I saw people who appeared to be lying in the middle of the
street, lying still, lying lifeless. And quickly, first responders came in, police, ambulances came in and secured the area.
(END VIDEO CLIP)
CHATTERLEY: And we'll bring you all the latest developments on this tragic story the moment we get them. For now, we'll bring it back to business.
[09:05:00]
And the U.S. majors on track for solid gains today in this holiday shortened trading week. The S&P and the Nasdaq could hit fresh records. All
this have made breaking news reports suggesting President Biden, will he nominate Fed Jay Powell for a second term. We will discuss this and
potential implications whether or not later on in the show.
For now, in Europe, the fourth wave of pandemic sees Austria begin a fresh lockdown today. Germany may not be far behind with chancellor -- Chancellor
Angela Merkel now saying the current COVID crisis is the worst the country has seen so far, and hospitals could seem be overwhelmed. We'll have the
latest on the lockdowns in just a few moments time too.
Investors in Europe in the meantime cautious in the face of these new COVID uncertainties. And despite some positive merger mania, Telecom Italia
shares are up some 27 percent. U.S. buyout from KKR announcing a $12 billion bid to take the firm private. Will Italy's biggest phone company
say chateau or non si modo. My best friend in Italy will be crying over that pronunciation but she did do her best to try and help me.
In Asia, well-known Chinese tech names JD.com and NetEase rallied on word that they will be included in the Hang Seng index next month. More tech
citing on the Hang Seng, but it is quite in sports citing in China. And that is where we begin the drivers today once again, more questions than
answers.
The Women's Tennis Association, WTA says it's still concerned about Peng Shuai's well-being. Even after Sunday's video call between the head of the
International Olympic Committee and the tennis star, the IOC says Peng insisted she was safe and well, as Will Ripley reports.
(BEGIN VIDEOTAPE)
WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT (voice-over): Olympics organizers trying to calm the controversy over Chinese tennis star Peng
Shuai. Less than three months before the Beijing Winter Games, the International Olympic Committee releasing a statement appearing to support
the Chinese government narrative that the three-time Olympian is doing just fine despite growing concern for her freedom.
A 30-minute video call. Peng, IOC President Thomas Bach and two other officials, CNN not allowed to see the video. An IOC statement summarizing
the call with Peng saying she is, "Safe and well, living at her home in Beijing, but would like to have her privacy respected at this time."
No mention of Peng's explosive allegations three weeks ago that one of China's most senior communist leaders sexually assaulted her. Claims
quickly scrubbed from Chinese social media.
CHRISTINE BRENNAN, CNN SPORTS ANALYST: The IOC seems to be so meek taking an incredibly meek and frankly pathetic path to dealing with China when of
course the IOC holds this great gift. It's the Olympic Games. And they have power there is leverage in the IOC.
RIPLEY: That leverage apparently being used to bolster the communist party line. China under growing pressure from the White House, the United Nations
International tennis stars. Beijing seeking to quickly turn the page. State media releasing these videos of Peng over the weekend out and about in
Beijing at a youth tennis tournament at a famous Sichuan restaurant, where the conversation just happens to mention the date November 21st,
repeatedly.
CNN has no way to verify the videos we can't confirm when they were taken. These videos shared on Twitter. A platform blocked inside China. Chinese
state media eagerly tweeting updates and images of Peng totally ignoring the story in their own country.
Unlike the IOC, the Women's Tennis Association taking a much harder stance, demanding direct communication with Peng, unmonitored, uncensored. This WTA
statement to CNN says, "This video does not change our call for a full, fair and transparent investigation, without censorship." The WTA prepared
to pull its billion-dollar business out of China.
BRENNAN: When the history books look back at this time, they will say the WTA what an incredible master class and humanitarian leadership, the right
way to do it to call China on its abuses. And the International Olympic Committee sitting there, as they always do, basically doing nothing.
RIPLEY: Which makes some say the IOC is complicit in the apparent silencing of a tennis icon, who dared to speak out against a Chinese Leader.
Will Ripley, CNN, Taipei.
(END VIDEOTAPE)
CHATTERLEY: And Alex Thomas from "World Sport" joins us with more.
Alex, great to have you with us.
Some real push back, I think, on the IOC, the Olympic Committee's comments here. They have the most leverage as we head into the Winter Olympics but
of course more to lose by intervening.
What do we make of what they've said here and obviously still the concerns from the WTA?
ALEX THOMAS, CNN WORLD SPORT: Look, the main thing is that certainly not from the videos released on Twitter. As Will Ripley said, you can't verify
when that was made. But whatever else you have to say about the IOC, the fact that they've confirmed their president, Thomas Bach, did have a video
call with Peng on Sunday reassures us that she is alive, safe and well.
[09:10:06]
Silencing the most extreme of our concerns about what might have happened to her after those allegations of sexual assault against a leading Chinese
political figure Zhang Gaoli. So, that's one thing.
The IOC had also between a rock and a hard place in that they've got to have a successful Winter Olympic Games go ahead in early February. But as
Christine Brennan pointed out in Will's reports there, they've got very strong contractual obligations for host countries and cities to abide by
Olympic Charters, which speak very grandly about respecting all athletes and looking after them.
And although tennis is a Summer Olympic sport, not a winter one, Peng has competed in previous Olympic games before. And you know as Will's report
pointed out, she's got serious allegations that have not -- only not been investigated but not even referred to by the Chinese government.
I think the WTA is clearly right to carry on pressing the case and the IOC should hang its head in shame rather at their cowardly stance.
CHATTERLEY: Yeah. Alex, I couldn't agree more with you. And the fact that we're discussing the fact that she's alive and in good health but is she
being coerced and what of those allegations. Because we need to hear more, and we need the truth.
Alex Thomas, thank you so much for that.
Let's move on. Restriction rebellion. Large protests across Europe over a new COVID crackdown. Police clashed with demonstrators in Belgium where the
government has - mandating the use of masks and COVID passes.
Meanwhile in Austria, a nationwide lockdown has just gone into effect forcing restaurants, cafes and non-essential shops to close for up to 20
days.
CNN's Salma Abdelaziz is in Vienna with more.
Talk us through the protests, Salma, first of all that we saw this weekend.
SALMA ABDELAZIZ, CNN REPORTER: Absolutely, Julia. But let me just start by telling you where I am because I'm at Austria's largest vaccination center.
You can see behind me that line there. We've just been speaking to the doctors and nurses that run this facility. And they say the restrictions
here are working because they're forcing people who previously refused to get their vaccine to come out and get that first shot.
I was asking one of the doctors just give me an idea of the number. She said we're seeing 10 times as many people as we saw just a couple of weeks
ago. And that's because Austria is trying a very bold experiment. It wants to be the first country in all of Europe to mandate, require everyone who
is eligible to get vaccinated. Then the deadline is February 1st.
And that's not all. They are also trying restrictions that specifically target the unvaccinated. Yes, we're in a nationwide lockdown down here now.
But just last week, the authorities had a lockdown specifically for the unvaccinated. And even when this lockdown lifts which is expected to lift -
it lifts in maybe about 20 days' time. It will remain in place for those who are not immunized.
And the message here is clear. Austria's chancellor says there is a surge in coronavirus cases. And he blames those who have yet to be vaccinated
about one in three Austrians are yet to be immunized. So, there's still really big population here that needs convincing.
But of course, when the chancellor announced these measures on Friday, there was big reaction on the streets of Vienna. On Saturday, I know we
have those pictures to show you, the police told us 40,000 people came out against lockdown measures, against the vaccine mandate, accusing the
government of curbing their civil liberties. It was largely peaceful, Julia, but there were some arrests, some scuffles later in the night but
there is a human toll here and that's the chancellor's point.
We understand, according to the health minister, that some ICU wards are reaching capacity, the health system is on the brink. Again, the medical
community here says this lockdown is necessary. They're pleading with anyone who's not vaccinated to come out and get their shots. For those who
are eligible to get the booster shot, to do so. Again, that doctor who's running the center told me, she is so overjoyed to finally see people who
hadn't been convinced to get that shot, coming out and getting immunized. Julia.
CHATTERLEY: Yeah. I couldn't agree more with you.
Salma, I'll ask you about the protests, but you are in exactly the right place talking about exactly the right thing. If indeed this is
precipitating, greater amounts of people to get vaccines, then that's the right way to go. And the government is having a point.
Salma Abdelaziz there in Vienna. Thank you.
OK. Sources tell CNN President Biden will renominate Jerome Powell as chairman of the Federal Reserve. We'll have more on this with Greg Valliere
in just a few moments time.
But let me just give you a look us give you a look at what we're seeing for U.S. market futures, if we can see them, because they have accelerated in
the positive direction. You can see, the Nasdaq futures up some 1 percent around a half of a percent for the Dow and the S&P on that news. Taking out
some of the uncertainty that's been hanging over the markets and consistency, I think, is what the market says it likes at this moment.
[09:15:02]
So, Jay Powell will continue for a second term as the head of the Federal Reserve according to sources.
OK. Let's move on for now. Shares in Italy's largest phone group surging after U.S. private equity firm KKR made a bid to take it private. KKR
offered to pay $12 billion and to take on Telecom Italia's $33 billion worth of debt. Among those with the power to squelch the deal though,
stakeholder Vivendi and the Italian government.
Anna Stewart joins us on this story. You know, I don't remember a time when Telecom Italia wasn't struggling quite frankly or in trouble. And part of
that was bouncing their competing interest of the Italian government has a stake, Vivendi as who I mentioned there also who has a stake. And you've
got to balance jobs, those competing interests with the desire, I think, to cut costs and boosts efficiency.
KKR think they can do it. At what price, Anna?
ANNA STEWART, CNN REPORTER: Well, it's quite extraordinary, isn't it? They're putting a bid up. A friendly bid, they're saying, with a premium of
45 percent on the closing price at the end of last week, which is fairly extraordinary, particularly when you consider as you say, Telecom Italia's
checkered history particularly when it comes to boardroom battles. But also, as very lackluster present performance.
It has had just this year, not one but two profit warnings. It shares prices lost nearly two-thirds of value over the last five years. It's got
this enormous debt, as you said, $33 billion and its current CEO is reportedly on the chopping block amidst big opposition from the bigger
shareholder Vivendi. And we'll get on to what they will think about all of this in a moment.
But first of all, what does KKR see here? Well, this is a company that is obviously very much invested in European telecoms already. We knew KKR was
on the acquisition trail. It tried to buy up a Dutch telecom business earlier in the year. That bid failed.
And here, it sees the company that has been for some time, ripe for a split. Splitting up the consumer division from the network division. That
is nothing new in terms of a strategy that has been put forward to the board but in the past, this has been very much opposed by Vivendi who own a
24 percent stake. The biggest shareholder by some distance here.
And even though there is this big premium on the share price in this offer that we're getting today, it's still about half of what Vivendi have paid
per share on average over the years for their stake. They are -- I'd say they are likely to oppose it speaking to the analyst today, or they might
come back with some sort of a counter bid or offer, something they want to see. Probably just more money at this stage. Julia?
CHATTERLEY: Yeah. More money at this stage.
And what about the government? Because this is not an easy one either. I mean, they can be watching and looking very closely at KKR's plans for
fixed line networks, for jobs, I think, going forward. Surely you would have to assume that KKR has some assurances that they'll allow them to make
changes to have even got to the stage where they're making a bid. What do - -
STEWART: Yeah. Reading between the lines, that's certainly what we're thinking today. Given the Italian government has already come out and said
this is positive news for the country. They do have the power to block a takeover of any company they think is strategically important to the nation
and this is certainly one of them.
It's interesting, you know, because the prior government, the Prime Minister Mario Draghi, was actually quite keen to see some of the fixed
line assets and the last - network of Telecom Italia being combined with the state backed rival open fiber. Now, that didn't seem to be so much on
the table under Mario Draghi's government but perhaps it is back on given this.
I think the whole deal, particularly we're looking at Italian government, will hinge on what they plan to do with the network side of the business.
Now, Vivendi are likely to be the problem here, but they have a 24 percent stake. That's not enough to block it. This deal will need 51 percent
shareholder approval. Julia?
CHATTERLEY: Yes. Watch this space. Great job.
Anna Stewart, thank you so much for that.
All right. Still to come here on "FIRST MOVE." Two alternatives looking to replace the real deal. That's up next. Next Gen Foods says its chicken
substitute will allow it to gobble up market share.
And the diamonds on creating jewels that capture not just the hearts but carbon too.
That's all coming up. Stay with us.
(COMMERCIAL BREAK)
[09:21:55]
CHATTERLEY: Welcome back to "FIRST MOVE."
U.S. futures on the rise amid breaking news on the future of the Fed. President Biden set to nominate current Fed Chair Jay Powell for a second
term later today. President Biden picking Powell over Fed Board governor member - Fed member Lael Brainard. President Biden will nominate Brainard
for the position of Fed vice chair apparently.
Greg Valliere joins us now. He's chief financial analyst with AGF Securities.
Greg, I hope you're stumbling less than I am today because I'm struggling. Take it and tell me what you think of the decision. And we've been a long
time waiting for this decision to nominate Fed Chair Jay Powell for a second term.
GREG VALLIERE, CHIEF U.S POLICY STRATEGIST, AGF INVESTMENTS: Well, first of all, good to see you.
And yeah, what took them so long? Oh, Lord. It seemingly took months to reach this decision. And I think that in waiting this long, the president
may have shown that he didn't have the greatest confidence in the world on Jay Powell, maybe not the greatest confidence in the world with Janet
Yellen, who apparently told Biden months ago just renominate the guy. But at least it's done. I think that everybody in the markets can breathe a
sigh of relief and we can move on to the next big story. And that is when does the Fed start to raise rates?
CHATTERLEY: Yeah. I mean, we can, and we can't move on in a way because to your exact point, is Jay Powell in some way weakened as a result because he
looks like he perhaps doesn't have the confidence of the president. And to your point as well, the Treasury secretary pushing the president to just
get this nomination done and to choose Jay Powell and yet it's taken so much time. What do you think, Greg? Because it matters in terms of the
decisions to come.
VALLIERE: Absolutely, Julia. And in one word, I would say inflation. I think that there's a fair argument to be made that Jerome Powell was too
sanguine during the spring and summer on inflation. He waited too long. He got way, way behind the curve. Inflation now is a real albatross for the
Democrats. And I think that Joe Biden probably thought can I do better, to be blunt. Could I get somebody else who might have caught this inflation
problem sooner.
CHATTERLEY: Yeah. And so, now what?
VALLIERE: Well, again, I think if economic data continues to look really strong and if the inflation numbers look strong, they're going to have to
speed up their tapering. They indicated they would stop buying assets by mid-summer. I think they may have to stop this by mid to late spring and
begin raising interest rates by summer.
I think that's no longer a long shot. I think there's a good chance we could get three rate hikes if the economic data stays strong, one in June
or July, one in September, maybe even one at the end of next year.
CHATTERLEY: Wow. I mean, that's uncomfortable for the Biden administration in some regard. There are those that say look, the inflationary pressures
that the administration is facing that the ordinary American people are facing are painful too.
[09:25:06]
But if you've got rising rates into the midterms here, what's that going to do for the Democrats? Because one of my big questions that I was going to
ask you this morning if we hadn't had this decision made on Jay Powell is, why is Joe Biden so unpopular?
VALLIERE: Well, again, it's same word, inflation. I think that the Democrats are now really worried about a debacle next fall, losing the
House by quite a bit, maybe even losing the Senate as well because of a perception by the public when they go to buy gasoline or groceries that
inflation is out of control. And I think because of this public perception, Biden's numbers have fallen. The Democrats' prospects have weakened. And I
think that many give some of the blame to Jerome Powell, who did not move quickly enough.
CHATTERLEY: So, we've got a situation now then where perhaps the Federal Reserve, now that we confirmed the next chief - potentially confirmed with
the next chief, but we assume that's a done deal, is going to be more targeted about fighting inflation, perhaps to your point, raising rates
more quickly. We've also got a Congress or a House in the Congress that has just decided nearly $2 trillion worth of more spending. The Senate is going
to buckle over the size of that, the details of that.
Do you think that is inflationary? Do you think perhaps the perception, more importantly, is that could add to inflation? And is that going to help
or hinder ratings as we head into the midterms? Because this administration has done a lot of spending, trillions of dollars' worth of spending
already.
VALLIERE: I think, Julia, there are two audiences. There's the financial markets which realize there's no play book for a pandemic that comes once
every 100 years. They were in uncharted waters. Inflation picked up, demand picked up, ports got clogged. I think the markets appreciate that.
But I think for the public, there's a sense that all of this spending has exacerbated the inflation threat. And you have got a very loud member of
the Senate Joe Manchin of West Virginia who will continue to make a case that $2 trillion more in spending makes inflation worse. That's a problem
and I think it's a major reason why we're not going to get $2 trillion when they finally get a deal, which by the way, looks to me as if it's several
weeks away. It's well after the first of the year.
CHATTERLEY: Yeah. Months.
Greg Valliere, great to have your insights this morning. Chief U.S. policy strategist for AGF Investments there. Thank you.
The market opens next. Stay with us.
(COMMERCIAL BREAK)
[09:30:50]
CHATTERLEY: Welcome back to "FIRST MOVE."
U.S. stock markets are open and beginning trade on a holiday shortened week on Wall Street. And we are moving higher. The tech heavy Nasdaq is making
another all-time high on news out this morning that President Biden has selected Jay Powell to head the Federal Reserve for a second time. Now he
just needs to be confirmed by Congress.
OK. Let's move on. Singapore based food startup Next Gen Foods wants to replace your chicken with an alternative and it calls TiNDLE. It's a plant-
based substitute for poultry and Next Gen says it's made from nine natural ingredients.
It was recently launched in the United States and over in Europe. It's now in Amsterdam too. And TiNDLE is already on the menu in 150 restaurants
across the world including several with Michelin stars.
Joining us now is Andre Menezes. He is the CEO of Next Gen Foods.
Andre, fantastic to get you on the show and to talk about this.
Can you explain the business itself and what gave you this idea? Because what stood out for me was your experience in chicken processing and your
other founders' family business in meat processing and yet you both came together and said, look, there's something broken here, we need an
alternative. Explain.
ANDRE MENEZES, CEO, NEXT GEN FOODS: Good morning, Julia. Happy to be here with you.
And you're absolutely right. Both Timo and I before starting the company Next Gen Foods, we had experience in the meat industry and with plant-based
foods as well. And the very origin of what we do is the idea that we love meat and what it represents as an ingredient, texture, taste, versatility.
But we really don't like the way it's produced and the way it's extremely resourced and inefficient. It's a public health risk and we believe that
there are better ways and better technologies to deliver what we like, the taste and the texture, the experience without animal farming. That's how we
started.
CHATTERLEY: So, this is not about you saying, hey, we're going to disrupt other plant-based alternative creators. This is about you saying, look, we
really do need to find something alternative to eating poultry?
MENEZES: That's absolutely right. Everything we do in the company is about impact and sustainability. And for us, the impact will only happen by
disrupting any more farming and not other plant-based companies.
In fact, we appreciate the fact that there are many plant-based companies growing and the category is growing as a whole. Consumers are becoming
increasingly more open around the world and that's very positive for the world.
What we will do is convince chicken lovers and chicken eaters that you can have the same if not even better experience without animal farming
involved.
CHATTERLEY: OK. So, explain what TiNDLE is made from. Because you say, look, it contains no cholesterol, no antibiotics, no hormones, no
genetically modified ingredients. So, explain what is in it and what Lipi is which is what you described as the secret ingredient that makes it so
chicken-like.
MENEZES: Yeah. So, TiNDLE is made only out of nine ingredients, all of them non-GMO. It's currently produced in Europe, but we are expanding
production, manufacturing, could bring it in Asia as well. The ingredients are very simple. They're basically water, soy, there's a bit of wheat
gluten, wheat starch, sunflower oil, natural flavoring, coconut oil, methylcellulose which is the binder and fiber. So, very simple ingredients.
All of them non-GMO. There are absolutely no regulatory restrictions. It can be sold anywhere in the world and consumers are very happy with its
nutritional values which are extremely similar to chicken for the good things, but obviously no cholesterol since it comes from plants.
And for Lipi. Lipi - sorry, go ahead.
CHATTERLEY: No, no. Go on. Tell me about Lipi because that thing, my next question follows from that.
MENEZES: Cool. So basically, one of the things we did was to understand why chicken was so craveable. And the reason why -- one of the reasons it is so
craveable is that delicious chicken smell, which actually comes from chicken fat. And we have recreated that chicken fat experiences only using
plants.
[09:35:00]
So basically, they feed an emotion that we've created, that delivers everything you love about the chicken taste, the smell, the mouth feel, the
browning when you cook and the taste. We have recreated an emotion together with our fibers deliver everything you love about chicken. That's Lipi.
CHATTERLEY: So, if it - I guess if it's in a sauce, for example, of some kind, I literally won't be able to tell the difference.
MENEZES: Yes. I mean in many applications that we have around the world, from you know fried chicken sandwiches to butter, chicken version of it
maybe a thing though. There are many applications that you cannot really tell the difference. And sometimes you can even say the difference, but it
doesn't mean it's any worse because it's so malleable and it's so versatile. Chefs can do in fact more that they would with chicken. And
that's -- in some cases, you can tell the difference by that.
CHATTERLEY: OK. Relative cost compared to buying chicken, is this going to be more expensive, the same cost, less than? Because as you've said, you
know you got less labor costs, it's less harmful for the planet in your mind. What's the cost?
MENEZES: You're absolutely right. That's a very important point. And there are basically two answers to that question. One is a short-term and today
it's more expensive. But in general, served through restaurants, consumers are paying around $1 more per portion when they're buying their fried
TiNDLE sandwich. In restaurants that are serving you know a $10-15 dish, it's about a dollar more.
And consumers are absolutely fine with that. They're having that great experience that they love in a much more sustainable way. That's the
situation right now.
But in the future, as the scale goes up, and as the food becomes more optimized, it will definitely be cheaper than meat, simply because as you
mentioned, we utilize much less resources and it's extremely efficient compared to animal farming.
CHATTERLEY: So, if we just - very quickly, like the cost per kilo or the cost per pound on a relative basis versus just it being a dollar more in
restaurant. How much more? Even in percentage terms how much more does it cost today? Do you think it's prohibitive potentially for people or if they
saw it in the supermarket, for example, or not? It's not a big enough difference for people to worry.
MENEZES: Not at all prohibitive. We've been selling without any issues on the cost. And in general, the dishes are varying from 10-20 percent more.
It depends a lot on what the restaurants are charging. Some restaurants actually sell at parity, same price as chicken when they serve. And some
restaurants are charged up to 20 percent more, depending on their costing and you know their consumers.
CHATTERLEY: Great. Keep us posted with how the rollout goes and the demand that you see. And I love the T-shirt. That certainly is dressing like you
mean it - not chicken.
MENEZES: Thank you very much.
CHATTERLEY: Yes. Andre, great to have you with us. Thank you very much. We have Next Gen Foods there.
MENEZES: Thank you. Have a great day.
CHATTERLEY: Thank you. You, too.
And coming up after the break, sustainable sparkle. We speak to the founder of a company making diamonds without damaging the planet. Stay with us.
(COMMERCIAL BREAK)
[09:40:50]
CHATTERLEY: Jaclyn Smith once said angels are like diamonds. They can't be made. You have to find them. Well, that may be true for angels, but as my
next guest shows us, not necessarily now for diamonds.
Aether produces them by taking carbon out of the air with extractor that put it in to specialized filter. For every 1 carat diamond sold, they
commit to removing 20 tons of CO2 from the atmosphere, making the world's first carbon negative diamonds.
Ryan Shearman is co-founder and CEO of Aether Diamonds. And he joins us now.
Ryan, I hope I got the science right there. You can explain it, but you're basically saying as a company just being net zero by x date is not enough,
you can actually be a net positive for the environment and it's not just about that. There are social issues with diamonds too.
RYAN SHEARMAN, CEO, AETHER DIAMONDS: Well, that's exactly the case. You know, when we look at the landscape of what's happening in the
decarbonization space, mitigation is absolutely vital. But at this point, and the data shows, we also need to actively remove carbon from atmosphere
if we're going to have any hope of holding to our climate goals.
CHATTERLEY: OK. So, talk to me about direct air capture because I tried to explain some of the science here but that does seem per carat of diamond to
be a whopping benefit if you're extracting carbon from the atmosphere.
SHEARMAN: This is a lofty goal when we started the company. And it's something we're really proud of, being able to achieve 20-ton reduction in
CO2 from the atmosphere for every carat that we sell. It's something that is absolutely paramount to what we're doing.
In terms of the direct air capture component, essentially, what you said is basically true. We're using a specialized filter system that uses our means
to chemically bond to the CO2 that is in our air. Once that CO2 is brought through this process, we refine it, we convert it into a hydrocarbon. And
that hydrocarbon acts as a carrier for those carbon atoms. And from there, we can grow diamonds in a laboratory over the process of about a month.
CHATTERLEY: And then they have to be cut and polished and beautificated which I don't think is the word but hey, we appreciate diamonds. Cost, so
important.
SHEARMAN: Well, important --
CHATTERLEY: Yeah. But if I'm looking at this diamond, and you can talk about cost too. But if I'm looking at this diamond, does it look like a
traditional mined diamond? And then give me the relative cost.
SHEARMAN: Absolutely. So really at the fundamental atomic level what we're producing is exactly the same as what comes from the ground. This is atomic
carbon, pure, no impurities, no nitrogen. Mined diamonds can actually have impurities and that's one of the ways we can tell the difference between a
mined diamond and a diamond produced in a laboratory.
From a cost basis, we go through a couple of extra steps than maybe your traditional, regular lab grown diamonds which are produced with fossil
carbon. We are the only company in the world that is selling diamonds on the market that are produced with carbon that is sourced from the
atmosphere. Because of that, we're probably a little bit more expensive than other kind of regular lab grown diamonds, but we are less expensive
than mine diamonds.
We find that our consumers are interested in potentially paying a little bit of a premium to access a stone that doesn't have all of the negative
externalities associated with other diamonds.
CHATTERLEY: OK. How much more than a traditional mined diamond? I mean, that obviously, it depends on size, color, clarity.
SHEARMAN: Less than a mined diamond.
CHATTERLEY: Yeah. But then the - than the lab grown, my apologies.
SHEARMAN: Well, it depends on really what we're talking about. At the moment, we don't sell loose stones. So, when you're buying an Aether
diamond, you're actually buying it in a handset piece of artisanal jewelry produced right here in New York City. So, and it depends on what you're
looking to buy. It would be comparable to a mined diamond from one of your local jewelers, perhaps maybe just slightly underpriced from that. But we
are a little bit closer to the price of a mined diamond and that of a traditional regular fossil carbon lab grown diamond.
CHATTERLEY: And in terms of clarity, in terms of color, can you play with that based on the science and the technology that you're talking about, or
how does that work?
SHEARMAN: Absolutely. It's a bit of a science and it's a bit of an art. So, you can refine your recipe the way I like to -- an analogy I make often is,
it's like nailing shingles to the roof in the middle of a hurricane.
[09:45:02]
So, it's controlled chaos. But over time, you can refine that recipe and you can use that to improve your clarity, to improve your color. You know,
we're really proud that over the course of the last three years, we've really been able to dial that in.
We're selling diamonds that are in the near colorless and colorless range. We've shipped diamonds that are internally flawless. Meaning you know no
visible inclusions with the eye or with magnification.
So, as far as anyone's concern, whether that be a consumer or even a professional jeweler, you really can't tell the difference. We are at the
top end of that segment - or the top into that range.
CHATTERLEY: Now, Ryan, I know that you used to work a jeweler because when you talk about the actual diamonds and creating one that's flawless versus
talking about the science, your eyes light up. And mine did too. I have to be honest.
You worked for David Yurman, you and your co-founder. And that sort of brings me to who the client is. Are the clients that you had there which is
a very well-known jeweler here in New York, the kind of people that would buy these diamonds, or are you targeting perhaps Gen Z, millennials perhaps
even if they are smaller and less relatively expensive diamonds, those that have sustainability front of mind?
SHEARMAN: So, it's a bit of both. You look at the high end of the market. The luxury segment is one that is wholly underserved from a truly
sustainable standpoint. Meaning, if I'm a luxury consumer and I'm you know someone who has purchased jewelry from the David Yurmans of the world and I
want something that is responsibly sourced through and through, there's nothing on the market until now.
There was previously nothing on the market to satiate that need. At the same time, we're finding that younger consumers who really at the core care
so much about where their products come from, they're gravitating towards us in ways that we didn't really expect. We've had consumers come to us and
say, I had previously written off diamonds. I said, I would never buy one. And now that I know this exists, I have to have one. So, we look at this as
an opportunity to in fact grow the market a bit.
CHATTERLEY: OK. I saw that you said two-thirds of diamonds sold in 2019 were sold to Gen Z and millennials. So, it's quite fascinating. Ridden
diamonds off but now we're interested. Are you profitable?
SHEARMAN: So, that's -- that's the beauty of diamonds as an outlet for captured carbon. One of the primary challenges across the board in the
carbon capture in utilization space is whether or not you can develop functional unit economics.
CHATTERLEY: Right.
SHEARMAN: And we're really proud to say that diamonds are the unlock. We're able to generate a ton of revenue for each carat that we sell. And that's
in fact what enables us to go and hit these really you know lofty goals that we've set for the company and this big commitment of removing 20 tons
for every carat that we sell.
CHATTERLEY: Yeah. If you can make money while you're doing this then you're a winner. Just in America, or is there a global audience for this?
SHEARMAN: So, we launched just in America. Even if you go to our website right now, we're really catering to the U.S. market. That said, the inbound
interest from international retailers, consumers and brands has been far exceeding what we expected.
So, we are in the process of really rolling out a larger global wholesale play as well as catering to individual consumers in other countries. We do
that on a bit of a one-off basis. So, if someone is in Australia or Paris or Canada and they want to find you know an Aether diamond on their finger
someday in the future, they can actually reach out to us and we will handle those one-off. But as of right now, the primary market is the U.S.
CHATTERLEY: Well, there you go, you see. So, for people watching around the world, there are options.
Ryan, great to have you with us. Thank you for that. Ryan Shearman there, CEO of Aether Diamonds. Great to chat to you and we'll speak soon.
OK. Stay with us. We're back after this.
(COMMERCIAL BREAK)
[09:50:40]
CHATTERLEY: Welcome back to "FIRST MOVE."
And one last look at our top story today. Breaking news this morning. It looks like President Biden will select Jay Powell to head the Federal
Reserve for a second term. The formal announcement is expected later today.
The White House cited Powell's, quote, "steady leadership" permit the economic turbulence of the pandemic as a reason for the decision.
President Biden in a statement expressed his full confidence in the Fed chair too. The nomination still needs to be approved by Congress, but
that's not expected to be a problem.
OK. Now, to El Salvador's plan to build a volcano powered crypto city. Yes, you heard me right. The city is to be funded by bitcoin backed bonds and
will feature a central plaza designed to look like a bitcoin symbol among other things. Take a listen.
(BEGIN VIDEO CLIP)
NAYIB BUKELE, EL SALVADORAN PRESIDENT: It's going to be right there in the Fonseca Gulf and it's going to include everything, residential areas,
commercial areas, services, museums, entertainment, bars, restaurants, airport, port, rail, everything. Devoted to bitcoin.
The other tax that you're going to have in Bitcoin City is the value added tax which you know normal value added tax, 10 percent, which you would pay
if you buy a Coke, you'll pay 10 percent, like you know. And that value added tax will be used, half of it, to pay the bonds that we're going to
issue to build up the city so it's going to pay for itself. And the other half will be transferred to municipalities. So, they clean up their trash,
they keep the parks nice, and they keep the city all neat and clean.
(END VIDEO CLIP)
CHATTERLEY: Paul La Monica joins me now. Paul, great to have you with us. Not an ordinary president, not an ordinary idea. How exactly is this going
to work?
PAUL LA MONICA, CNN REPORTER: Yeah. This is a bit curious, Julia. I thought about wearing the baseball cap behind me you know backwards in honor of El
Salvador's president, but decided against it.
I think what's going to be very interesting here to see is we know how volatile bitcoin prices have been, so is it really feasible to have bitcoin
bonds backing this venture? I think there are going to be questions about whether or not this really can be financed in that manner or if El Salvador
is going to have to go with a more traditional way to potentially build this city.
It is interesting that they are doing it near a volcano, which you know gives you the geothermal power to maybe help power the bitcoin mining that
will be done in the city. But you know it's a very curious project, to put it mildly, Julia.
CHATTERLEY: Curious. Selected word. Paul, what has the response been? Because we've talked about El Salvador in the past. They decided to make
bitcoin legal tender. They've had some initial challenges, which you would expect, but some people quite frustrated with the government in the early
stages of this.
LA MONICA: It's definitely too soon to say what the reaction will be to this new urban announcement, but I do think, as you point out, it is
noteworthy that there are citizens in El Salvador who have been frustrated by the volatility in bitcoin. There have been some protests. Having bitcoin
as legal tender might be the wave of the future, but I think right now bitcoin and other crypto currencies, they are so volatile that it makes it
difficult to have bitcoin really be a method of payment that all average people can use. Because you can wake up one morning and, wait a minute,
bitcoin just plunged 10 percent? You don't see that with the U.S. dollar, the Euro, the Yen or any other major currency, for that fact - for that
matter.
CHATTERLEY: Yeah. It needs good planning. And it needs advice. I remember talking to the head of the IMF. And she said just because you can do it
doesn't necessarily mean it's a good idea. It's nascent technology. People need to understand what's going on and they need to do the planning. It's
going to be interesting to see how these progresses. I believe construction is expected to begin in 2022.
[09:55:00]
Paul, put the hat on, please. I want to see you in the hat. If anyone tells you off, you could say I made you do it.
LA MONICA: There we go.
CHATTERLEY: Yeah. There we go. We like the ambition, nothing else.
LA MONICA: Yeah. There we go.
CHATTERLEY: Happy Monday.
Thank you, Paul.
OK. And finally, on "FIRST MOVE." There's something strange in the neighborhood. Cinema, who you gonna call?
(VIDEO CLIP PLAYS TRAILER OF "GHOSTBUSTERS: AFTERLIFE")
CHATTERLEY: "Ghostbusters."
Yes, that was a fun. "Afterlife" the latest installment of the spooky classic raked in $44 million on its opening weekend, smashing the makers'
expectations of $30 million. Yes, I will be watching that.
OK. That's it for the show. If you've missed any of our interviews today, they will be on my Twitter and Instagram pages. You can search for
@jchatterleycnn.
Stay safe in the meantime. "Connect the World with Becky Anderson" is next. And I'll see you tomorrow.
(COMMERCIAL BREAK)
[10:00:00]
END
