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First Move with Julia Chatterley
UK Issues First Ever "Red" Warning; IEA: Europe Must Being Gas Cuts Immediately; Turkey Supplies Drones to Fight Russian Invasion; More Big Banks Report Earnings, Tech Profit on Tap; Startup Ula Modernizes Indonesia's Small Businesses; 10-year-old Checkers Champ Plays to Raise Money for Ukraine's Army. Aired 9-10a ET
Aired July 18, 2022 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JULIA CHATTERLEY, CNN HOST, FIRST MOVE: A very warm welcome to "First Move", fantastic to have you with us on a sun like it hot others definitely
do not edition of the program and I'm not just talking about the weather.
The ECB set to raise interest rates as blistering inflation continues to grip. Big Tech earnings on tap can Netflix right the subscription ship.
Twitter wants a Wall Street trial, Musk wants the date to slip.
And historic UK heat wave would challenge it for the British stiff upper lip barely more on the European heat wave shortly for now is steamy day on
global markets to his Investors add to Friday's strong gains.
U.S futures as you can see relatively fiery and a scorcher every day across the European stock market bosses to after a red hot Asian handoff the HANG
SENG rising almost 3 percent. Why?
Well, Investors seem to be taking solace from fresh U.S. consumer sentiment numbers. Inflation expectations dropping to the lowest level in a year this
month as petrol prices come off the boil, a positive portent for Powell and company as they prep for next week's policy meeting.
Fed members are attempting to take the heat out of recent speculation to that they may raise interest rates by a full percentage point next week.
Markets now pricing in a relatively cooler, three quarters of a percentage point rise instead.
The major U.S. banks watching the macro outlook very closely and benefiting from rate hikes, but the investment banking performance is consistently
Bank of America missing profit estimates today seeing a 34 percent earnings drop compared to last year. Goldman Sachs however, beating on both the top
and bottom lines with its trading desks on fire amid the recent volatility of financial profits less than torrid, but not quite horrid details later
in the show.
But first a wicked weather watch. The UK issuing its first ever read warning with an 80 percent chance of setting a record high temperature, the
mercury could reach 40 degrees Celsius for the first time ever scorching temperatures also fueling wildfires in France, Spain and Portugal.
At least 16,000 people have been evacuated in France, and over in China also sweltering as more than 80 cities across the country issue, the second
highest warning. And here in the United States over 14 million people are under heat alerts as we speak. Nada Bashir joins us now from London's Hyde
Could be the hottest day ever recorded in England and other and tomorrow could be even hotter.
NADA BASHIR, CNN REPORTER: Yes, that's what the message we're hearing from the UK's Met Office a sweltering day, it is just 2pm here in London and we
are really feeling the heat now here in Hyde Park in the Capitol.
You can see behind me the park has drawn many people to come out and enjoy the sunshine and many behind me sunbathing taking advantage of the hotter
weather. But as you mentioned, their temperatures are projected to peak at around 40 degrees Celsius, that's around 104 degrees Fahrenheit.
Real extreme temperatures here in London, it's actually record breaking historic figure. So there are certainly some concerns around the health
risks that that could pose but despite this many are still flocking to the park and nearby Riverside to enjoy the sunshine.
We spoke to a couple of people a little earlier who said that despite the hot weather, they will continue with their plans for today to enjoy the
weather. Take a listen.
UNIDENTIFIED FEMALE: Worried about the train being canceled, my trains already canceled, so I'm going to try and get on a different one and hope
that it's not packed out, hopefully the - well, we weren't going to go to the lidar, but the queue is massive and we were too hot stood in the sun.
So we changed our mind. We're just going to head home earlier rather than chilling out for that.
UNIDENTIFIED FEMALE: I'm from America, so I'm used to air conditioning. So a little--
UNIDENTIFIED FEMALE: Well, we spent some time indoors at the VNA museum. And we're just here for like five minutes to see the Diana Memorial. We've
already had one ice cream, I think, four more to go. We are trying to limit our time out in the sun to try to stay indoors as much as possible, but we
planned our vacation several months ago. So we also want to see a little bit of London.
BASHIR: Julia, the government has been issuing guidance and advisory notes as around how to enjoy the day but continue to stay safe. We saw over the
weekend, the government chairing an emergency meeting to discuss the country's preparedness for this kind of weather.
The infrastructure in the UK of course not really built for 40 degrees or 104 degrees Fahrenheit. But we are hearing from the government they are
working to ensure that hospitals and ambulances are well staffed in order to deal with potential health risks associated with the high temperatures.
We are already seeing the effects of this on the national rail service which has seen significant delays and issues. So clearly, the country is
struggling with this. But we heard from a British Minister speaking earlier Kit Malthouse who has been overseeing the country's preparedness and
contingency plans to deal with the heat.
He said this is something that the country is going to have to learn to deal with, as projections show that the temperatures in the UK and across
Europe of course will continue to rise as the globe continues to warm.
CHATTERLEY: It's such a great point. Let's be clear, Great Britain was not built for this, roads melting railway tracks buckling, a lack of aircon
limiting productivity in offices and schools if people are still attending them. It's tough.
And to your point and that point that you made there, I think it's vitally important. What we can't ignore is that they're becoming fiercer and
they're becoming more frequent. To what extent is this being in some way tied to climate change, Nada?
BASHIR: Well, if that is what we're hearing from experts, this is certainly tied to climate change that the global temperatures are warming. And this
is having a significant impact on temperatures.
As we are seeing today, as you mentioned that we've seen significant wildfires spreading across parts of Europe and France, in Spain, and
Portugal as well, really, governments trying to grapple with these fires that are getting seemingly worse and worse every year.
We've seen thousands of hectares of land in the southern parts of Europe destroyed thousands forced to leave their homes and evacuate as a result of
these wildfires. And this is having significant health side effects as well.
We're seeing that here in the UK where there are concerns around whether or not the National Health Service and these ambulances are really prepared to
deal with the effects of this as temperatures do continue to increase.
We've heard from researchers from the European Commission speaking today, saying that nearly half of territory in Europe could be experiencing
drought over the coming years, as well as serious issues with water supply as well.
So these are some real concrete concerns that could affect everyday life. And this is all really being tied to climate change according to experts.
Really now we are looking at those immediate solutions to deal and cope with the heat that we're seeing today.
But as this becomes the new norm for much of Europe, there will be of course, a need to focus on those long term solutions in order to deal with
these extreme temperatures.
CHATTERLEY: Yes, short term and the medium term plans required. Nada, appreciate it, great to have you with us. Thank you. Now for more on this
CNN Meteorologist, Chad Myers joins us now. Chad, what does it look like, red looks behind you.
CHAD MYERS, CNN METEOROLOGIST: It looks hot.
MYERS: And you put the climate change words out there. And you know, Julia, we would have had a heat wave anyway, without climate change, but the heat
wave would have been 35.
With climate change that may have bumped it to the 40 degree range. And that's what we're seeing already. Some spots already in the middle and
upper 30s in just after lunch hour there, temperatures are going to be high.
The red alert, the first one ever for the UK, obviously very hot in France, Portugal, Spain, the Iberian Peninsula has been dreadfully hot, approaching
43 at times. Here are some of the numbers here up down into Madrid today 41, all of those people and these numbers that you see behind me are in the
When you step outside, and you stand in the sunshine, you feel more heat than that talked about the drought. Very few countries in the UK, from the
UK all the way to the EU have not been experiencing some type of drought, especially in the growing regions.
That's why we're so hot. If we had a lot of moisture on the ground, we would get clouds, the clouds would block out the sun and we wouldn't get to
40. But because it is dry because it has been dry and the air isn't that humid.
That's why the air is getting so hot across Europe. Now it's only a couple of days for Northwestern Europe. But across the south, this doesn't change
at all. We send a crew to the Po River in northern Italy to take a look at the Pope.
There's very little water in the Po River right now, because there wasn't a lot of snowmelt snowfall across parts of the Alps this year.
So another thing going on, which is one thing after another, it's hot in the U.S. as well. Cold in some spots across the world, don't get me wrong,
but we will approach 104 degrees here across most of Fahrenheit across the U.S. which is somewhere in that 40 degree range.
This is what we're going to be dealing with. And it isn't so much that one or two days. This has been already weeks and morning low temperatures
aren't getting down below about 32.
So your house isn't even cooling down at night when you open the windows. Now most of the areas here that will approach 100 do 100 Fahrenheit will
have air conditioning. The UK only 5 percent, the estimate right now is only 5 percent of homes in the UK has any type of air conditioning
Yes, that is truly the problem. The long term effects of it not cooling down at night. The good news is in 48 hours for London, this is long gone.
It's all over and everything everybody just won't forget about it.
But for the next couple of days it could be dangerous if you're outside or inside a home that doesn't have any type of wind blowing. No fans on got to
take care of the kids, the pets and the elderly, Julia.
CHATTERLEY: Yes, and that's a fascinating statistic as well just 5 percent of homes and buildings with air conditioning in the UK is one of the things
I love about being in America, Chad.
And also super important contacts. We would have had a heat wave anyway but they're just becoming more fears are more frequent.
MYERS: That's right, more thing.
CHATTERLEY: Yes, Chad, always a pleasure, sir, thank you, Chad Meyers there. China is also facing a dramatic heat wave of its own just as
authorities turn up the heat once again with the nation's zero COVID policy.
It's back to mass testing and lockdowns in certain localities after the nation reported the highest number of COVID cases since May. CNN's Blake
Essig has the latest on both.
BLAKE ESSIG, CNN CORRESPONDENT: The combination of extreme heat and China's zero COVID strategy aren't doing it's already strained health care system
any favors. The good news is that temperatures are cooling but it's still going to be hot for days to come out, that means health care workers
wearing full hazmat suits and millions of people who at times have waited outside in line for several hours in order to get tested for COVID will
continue enduring extreme temperatures.
Now nationwide over the weekend, more than 1000 new locally transmitted cases were reported across the country and at least 16 provinces have
reported new local cases in the past two weeks.
That includes the beach resort town of Bay High in southern China, where a snap locked down over the weekend has left more than 2000 tourists stranded
in the region.
More than 500 cases have been reported this past week as a result of the local government has locked down parts of the city ordered mass testing
banned residents from leaving their home and shut down all entertainment venues.
In the special administrative region of Macau, China's Las Vegas authorities have extended its ongoing lockdown and mass testing through
Friday meaning all non-essential businesses like casinos have had their operations suspended.
And in Shanghai, many people are worried about another round of mass lockdowns after 17 new cases were identified in the past 24 hours. In an
effort to STEM community spread of the city government said that they will require residents across 10 of the city's districts in some smaller areas
to undergo two rounds of testing for COVID-19 over a three day period starting this week.
Whether it's daily testing or lockdowns, China's zero COVID strategy continues to impact people's lives around the nation, Blake Essig, CNN,
CHATTERLEY: And the sweltering heat is bringing Europe's energy crisis closer to boiling point to consumers ramping up their power on aircon and
cooling units have sent natural gas prices surging supplies already squeezed the key Nord Stream 1 pipeline from Russia remains offline until
Thursday at least.
Anna Stewart joins me now. Wow. OK, so we're completing a few stories there that are very much interconnected. Let's start with Nord Stream 1. It's
been offline for 10 days of maintenance. It's a crucial pipeline getting gas from Russia to Europe. And the big fear is that the Russians will
decide not to turn it back on.
ANNA STEWART, CNN REPORTER: And Thursday will be the big moment where we find out what happens in that story. There have been so many pivotal
moments in terms of Russian energy in Europe.
And this really is a big one, because this is the biggest Russian pipeline taking gas from Russia to Europe, normally sort of pre the invasion of
Ukraine, it would transport around 55 billion cubic meters a year.
I mean to put that into perspective, that's about 40 percent of the Russian gas that Europe gets. But of course, already supplies had been cut on this
pipeline before this big sort of offline maintenance.
It was cut by 60 percent by Russia, relating to a very complicated issue on turbines and sanctions. And that was the reason Russia gave. But yes, now
it is offline. It has been it will have been for 10 days, when it comes to Thursday.
Be concerned, will it get switched back on? And if it doesn't, what does that mean for Europe, essentially, that point towards almost a complete cut
off of Russian gas and the threat of a deep recession, just looking at energy prices, Julia, you can see how nervous Investors are at this stage
even though we are in the height of summer, when typically, of course, energy demands are quite low.
But we can see that there were huge spike, of course, for energy futures for the invasion of Ukraine, but also look how they're creeping up and
evermore volatile. Julia.
CHATTERLEY: Yes, and this was going to be a critical three months where Europe hoped to rebuild storage capacity ahead of what's expected to be a
And as I mentioned in the introduction, what we're instead seeing is a ramping up of electricity demand to two power aircon units due to the heat
wave. So it's the worst of both.
And actually, the IEA is warning today that capacity needs to be cut in the short term in order to provide for the winter.
STEWART: I mean, a really strong comments actually just in from the head of the IEA, who essentially said - has not been done, especially on the demand
side. And he went on to say in my view, it is much better to take steps now to prepare for winter than to leave the well-being of hundreds of millions
of people in European economies at the mercy of the weather or even worse to give unnecessary extra leverage to President Vladimir Putin of Russia.
Essentially, at this stage, European gas storage facilities are around two thirds full that is better than where they were this time last year, but
they're not where they really need to be particularly with a threat of the complete cut off of Russian energy.
More needs to be done on the demand side. And of course right now is the worst time with a heat wave people using air conditioning, those lucky
enough to have them their energy intensive.
STEWART: We will of course also get more power from solar, perhaps that can offset it. But really, I mean, what we're pointing to you here from experts
all over is the fact that households and businesses need to use less and if they don't, they may be forced to with rationing from European governments,
come winter, Julia.
CHATTERLEY: Yes, we've been warned. Anna Stewart, thank you for that. OK, let me bring you up to speed now with some of the other stories making
headlines around the world.
Sri Lanka's acting president has declared a new state of emergency ahead of parliament's vote to pick the next leader. Ranil Wickremasinghe, a top
contender for the job but protesters wants him out.
He says he declared the emergency to prevent more public unrest. The acting leader also says the government has almost concluded negotiations with the
IMF to bail out the beleaguered nation. CNN's Will Ripley shows us how people are coping with the financial uncertainty.
WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT (on camera): I'm in Colombo at one of the few gas stations that's actually pumping petrol right
now we had to drive around past at least two or three before we found this one.
And we could spot the fact that it was open because the line was stretching, not even around the block, but like several blocks down.
RIPLEY (voice over): In Sri Lanka these days, they say petrol is more precious than gold, which explains the heavily armed guards.
RIPLEY (on camera): I've never seen anything quite like this. We've been talking to people waiting in these lines, some of them waiting as long as
RIPLEY (voice over): Like 19 year old Anuda Gunashinghe, he just graduated from high school.
RIPLEY (on camera): How long have you been waiting here?
ANUDA GUNASHINGHE, COLOMBO RESIDENT: Since Monday like six days?
RIPLEY (on camera): Six days?
RIPLEY (on camera): So how do you live? What do you do?
GUNASHINGHE: Live in the car. My dad's here. So we basically switch like two days each in the queue.
RIPLEY (voice over): Like pretty much everyone else here. He's been doing this for months.
GUNASHINGHE: People shouldn't have to do this, you know, just suffer in a queue for so long. And then just get fuel for their basic necessities.
RIPLEY (on camera): Do you have any trusts left and politicians in your government?
GUNASHINGHE: None, none at all. They stole money by fooling us and then we are the ones who have to suffer while they lead luxury lives.
RIPLEY (on camera): Yes, sure.
RIPLEY (voice over): The fuel ran out three cars before he made it to the pump. He has to wait two more days.
RIPLEY (on camera): The price is so expensive; it has skyrocketed because the fuel is in such short supply. So people are spending in a lot of cases
almost their entire income, just to fuel the vehicle that they use to get around to make a living.
It's hard to imagine that people have been living like this for so long. Here you can understand when you stand in the midst of all of this may have
the anger. The anger on the streets here from people who just want to be able to live a normal life and don't want to have to spend days waiting in
line for something basic, like fuel, like food, like medicine.
CHATTERLEY: In the U.S. state of Texas lawmakers have released a scathing report critical of police response to that deadly school massacre in Uvalde
back in May.
The report says the nearly 400 officers who responded to Rob Elementary displayed "An overall lackadaisical approach". It took an agonizing 77
minutes for them to confront the shooter, 19 children and two teachers lost their lives.
And through to head on "First Move" changing the face of Modern Warfare how Turkey is becoming a major player with drone technology. We speak to one of
Ukraine's top suppliers.
Plus, helping small retailers achieve big things, we'll hear from Mueller the Indonesian ecommerce startup, next.
CHATTERLEY: Welcome back to "First Move". In Ukraine President Volodymyr Zelenskyy has fired two senior government officials citing accusations of
treason. The president said he's lost faith in their leadership after many of their subordinates were accused of treason and collaborating with
Russia. He did not say whether the fire officials themselves are under investigation.
(BEGIN VIDEO CLIP)
VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT: Everyone who together with them was part of a criminal group that worked in the interests of the Russian
Federation will also be held accountable. It is about the transfer of secret information to the enemy and other facts of cooperation with the
Russians special services.
(END VIDEO CLIP)
CHATTERLEY: Meanwhile, videos on social media show large explosions in the Russian occupied Kherson region. The arrival of high precision long range
weapons from Western allies has helped Ukraine target Russian supply lines and storage sites.
And as the Ukrainian foreign minister appeals for more firepower weaponized drones are playing a crucial role in shaping the conflict. This one was
built in Turkey by a company called Baykar, which began as an automotive supplier and is now the country's leading maker of unmanned aerial
vehicles, or UAVs. Ukraine has purchased more than 20 of the TB2 models with orders for more. The company also donated a drone following crowd
funding campaigns in Lithuania which we'll talk about shortly.
On the ground Ukrainian troops celebrate these unmanned weapons as a symbol of resistance. The soldiers even performed a song praising them. Haluk
Bayraktar is Baykar CEO, and he joins us now, Haluk, great to have you with us.
How does it feel to have crowd funding taking place in order to buy your equipment and soldiers singing songs about your technology? It's, it seems
pretty humbling to me.
HALUK BAYRAKTAR, CEO, BAYKAR: Hello, Julia. Yes, actually, you know, we are actually proud. And it's very touching, for us to be one of the symbols of
this big resistance of Ukraine. And as you know, Ukraine is under very heavy aggression and disproportionate attacking its civilian structures,
its culture and everything.
So we as Baykar, we are developer, developer and manufacturer of this unmanned technologies. And this UAV system Bayraktar TB2 has become one of
the symbols and it's we are actually proud to be to be part of it.
And on that regard, we have donated and to this campaigns, and we delivered free of charge of our unmanned systems Bayraktar TB2s to this campaigns
CHATTERLEY: Just talk to us about the technology and what makes TB2 so effective in this kind of situation.
BAYRAKTAR: Yes, I mean Bayraktar TB2 is a Medium Altitude Long Endurance platform, which is capable of flying fully autonomously, and it has been
fielded since the last seven years.
It's a very operationally proven robust system. It has, it can fly in all sorts of environments, and it has a very high end. Autonomy features,
technological features, and its price performance.
The price ratio of the system is really high. It is a field proven system and it's very practical. And under all sorts of highly electronically
jammed environments it has resistance.
BAYRAKTAR: And it has proved itself on to many different types of enemy targets. And in that regard, it's a valuable asset for any military as a
force multiplier element. And it allows you to do long range surveillance and high endurance and you don't carry a pilot, so you don't risk any human
lives with it.
And it's a very important element for countries to protect their homelands and to establish security and peace in their homelands.
CHATTERLEY: I read recently, I think it was Middle East, I suggested it was your drones that the Ukrainian forces used to target the Russian oil depot
at the end of April. So it flew into Russian territory.
Can you give us any sense of whether or not it was your drones that were used in that operation? Is that kind of the capabilities that they provide?
BAYRAKTAR: Right, you know, with Ukraine, we have years of cooperation and strong bombs we have established together. And in that regard, before the
war, Ukraine was operating Bayraktar TB2s, it was established within the Air Force and Navy. So they already have a fleet and using and operating
these drones. And these drones not only give you surveillance reconnaissance capability, but they have precision munitions on them, so
they can engage in a very precise manner with the targets actually.
So in that regard, we as well follow from social media and media. It has, you know, behind the enemy lines, this platforms has given very good
results, actually. So we, you know, we follow it as you do. So, it has proved itself there as well. CHATTERLEY: And the Russians have long been
concerned about drone capabilities that have been mentioned many times during this war as well. And there are two things that I would love to get
your perspective on.
One that the concentration of Russian forces now in the east of Ukraine, does that make using drone technology more complicated simply because they
have a better sense of protecting the skies themselves, and, and perhaps couldn't take a drone out of the sky?
And have they increased and improved their weaponry to be able to tackle these drones anyway?
BAYRAKTAR: Actually, you know, one of the reasons that Bayraktar TB2 became a symbol for the resistance for the free and sovereign in Ukraine, is that
the whole fleet of Bayraktar TB2 was alive since the day zero of the war.
So they kept flying all the time. And you know, we have, you know, huge experience and Ukrainian operatives are well skilled, and so that they are
operating these drones on all sorts of environments.
But as you see you know Ukraine is facing a very disproportionate aggression. So, you know, you need in order to resist to it, you know, UAVs
drone technologies, yes, they are key elements force multipliers, but you know, you need a lot of different assets and items to tackle this, this
CHATTERLEY: Obviously Turkey has a well-established trade relationship with Ukraine more broadly. It also has a relationship with Russia too. Haluk, I
just wondered whether you would consider or have supplied Russia with this technology to and how you think about that at this moment in time.
BAYRAKTAR: Actually, you know, as I mentioned, Turkey and Ukraine has a strategic level of relationship, especially on the field of aerospace and
defense. So it's the years of efforts and Turkey is supporting Ukraine with this armed drone technology.
And we as Turkey, you know, we are procuring from Ukraine, as well, turbine engines for our drones as well. So we build a win, win relationship model
with Ukraine, which benefits two countries.
So in that regard, we you know, we sold the support Ukraine on this technology. And this relationship gives us it's a complimentary
relationship between the countries actually.
CHATTERLEY: I understand Haluk and it went to the point of view even donating drones, but what about Russia? Would you supply Russia?
BAYRAKTAR: Actually, you know, we don't, we have not done such a thing. But we have not delivered or supply them with anything. But you know we will as
well never do such a thing because we want you know we support Ukraine, support the sovereignty and support it's you know, resistance for its
CHATTERLEY: Haluk, thank you. I Sorry, I pushed you on that. But I wanted to get a definitive answer and you gave it to me. 10 million is that what
one of these drones costs? And now you've provided them a discount, I read that you are providing them at a 30 percent off a third off discount?
Can you give us any clarity on the cost here and what your order book looks like because this has been a huge showcase for your technology too?
BAYRAKTAR: Right, right, actually, you know, Bayraktar TB2 right now has been exported to more than 22 countries. And on these campaigns, you know,
Lithuania started this campaign, they collected about $6 million, but we donated them a total free of charge.
So we didn't get paid for anything. We just delivered them one UAV. And then Ukraine itself started campaign to procure three Bayraktar TB2s,
hundreds of thousands of people apply to this campaigns.
And we were really touched, touched by it. And we as a company, we want to show that in the, in such times of such a big scale war, we are not after
maximizing our revenues or profits, but rather we are after maximizing our support for Ukraine, and support for the fight of their independence.
And we are really praying for a just resolution and a lasting peace actually. So in that regard, we wanted to make this donation as well to be
part of it.
CHATTERLEY: I understand sir, and I know you at the company have a lot more going on. You're looking at drones carrying people one day in AI and all
sorts of things.
So come back on soon, and we'll talk about some of the fun things as well that you've got going on at the company as well. And great to get your
perspective sir, thank you. Haluk Bayraktar there, the CEO at Baykar.
BAYRAKTAR: Thank you.
CHATTERLEY: Thank you. We're back after this, stay with us.
CHATTERLEY: Welcome back to "First Move". U.S. stocks are up and running this Monday as we head into the dog days of summer. Investors taking a bite
out of stocks in a good way as you can see for the second straight session.
Tech is looking strong after its near 2 percent rally on Friday as well, Boeing a big blue chip winner, the aerospace giant soaring more than 5
percent after announcing a sizable 737 Max jet audit from Delta.
And having the market mood today less dread for 100 Fed members is pushing back against fears of an unprecedented 1 percent hike at their next policy
meeting next week.
Markets have been anticipating the worst after last week's blistering inflation prints. Expectations however, for a less draconian U.S. central
bank helping take some pressure off the U.S. dollar too, which is losing ground today against the euro.
The currencies hit parity briefly last week, the European Central Bank expected to raise interest rates for the first time in over a decade on
Thursday. Now in earnings news, Goldman Sachs rallying after beating on earnings and revenues and boosting its dividend to boot, Bank of America
higher too after reporting mixed results.
The banking giants wrapping up a pretty mixed earnings season overall. And Paul La Monica is with us to go through it, Paul, great to have you with
us. I think Bank of America was a similar story to JP Morgan into Citi, the investment banking side of the business was a letdown or the uncertainty
over a future deal making.
But the consumer business was boosted by higher interest rates and quite surprising strength, I think for the U.S. consumer.
PAUL R. LA MONICA, CNN REPORTER: Yes, market volatility Julia obviously has had its impact on the deal making side of the big banks business. But
consumers are chugging along, even though we have all these worries about inflation and a possible recession down the road a slowing economy.
I think that consumers still remain pretty resilient. And we're seeing that with those blockbuster retail sales numbers that came out on Friday. And I
think the banks are confirming that as well.
Consumers seem to be willing to add on to credit card balances, even though interest rates are going up, how long that's going to remain the case, of
course, is an open question.
But for now, I think the big banks and Goldman Sachs to me remember they have this markets division now that is a new consumer oriented digital
bank. And consumer business for Goldman Sachs was one of the bright spots hitting record revenue in their second quarter.
CHATTERLEY: I love that you went there because that was some of the data that I pulled out from last week, spending on Chase credit cards up 21
percent, Citi cards increased 16 percent.
Then I look at mortgage originations down 46 percent at Wells Fargo, down 36 percent at Wells, down 46 percent at JP Morgan. It's really tough to get
a picture of what's going on in the U.S. economy.
When you look at the jobs market, it looks incredibly strong. When you look at other parts of the business, there's a real sense of caution. Paul, did
you feel recessionary pulses from these earnings because I didn't?
LA MONICA: Yes, I didn't just yet either. Julia, the big question, I think is going to continue to be how significant will the housing market slow
down? And will there be shades of 2008 when we had a housing meltdown being one of the primary reasons for big banks struggling and the market and
economy melting down. I think the good news now is that most --?
CHATTERLEY: Just as he was getting warmed up on that, we'll reconvene on that conversation. That's definitely warning signs but certainly not across
the board. Fascinating, Paul La Monica, thank you for that, sir.
OK, up next, Indonesia's small businesses are going digital with a little help from a Bezos backed startup Ula; we speak to the CEO, next.
CHATTERLEY: Welcome back to "First Move" and empowering small business to do big things. That's the mission of Indonesia startup. Ula, the E commerce
marketplace allows family owned kiosk businesses to digitize many processes.
It provides an app through which they can manage capital, inventory and delivery. It launched in 2020. And business surged as you would expect
during the pandemic. Joining us now is Nipun Mehra; he's the CEO of Ula, great to have you on the show. Just start by explaining the vision of Lulu.
NIPUN MEHRA, CEO, ULA: Thanks for having me. We are an Indonesia focused b2b ecommerce company. What that means is, and I'm trying to explain a
little bit in terms of the millions of kiosks and retail shops that are around the neighborhoods of Indonesia.
These are small mom and pop stores that are selling grocery and other items to their neighborhoods. They're now coming into the ambit of the digital
world. We see those using smartphones; we see them using apps such as YouTube, TikTok, and so on.
And we felt the next frontier is commerce. They're incredibly resilient as a segment. And personally for me having worked in ecommerce, I know that
they offer advantages, which we don't normally see in either big retail companies or in big ecommerce companies.
By marrying their advantages to the world of technology, we want to create a new form of retail that looks different from what we've seen in the
evolution of what we've seen in the U.S. or China, for example.
CHATTERLEY: In what way, I get what you're saying. And we're talking about lots of these little kiosk businesses that traditionally only have people
walking up to them, and then they buy what they can see.
So the idea of being able to expand your product offering and digitize how you're even running inventory is a huge opportunity. But why is that any
different from what you see in the United States, for example, or in, in retail in China?
MEHRA: Yes, wonderful, wonderful question. When you imagine the small mom and pop store in a place like Indonesia, they are really tiny. And most of
the places these stores are operating from are owner owned and run properties, meaning that they don't pay rents, they don't have large armies
They're literally micro entrepreneurs, small families running small shops. They have barely any air conditioning or any utility bills or taxes to pay.
So they're incredibly cost efficient.
And the second thing that they have going for them is the neighborhood relationships that they have. They literally know which person lives in
which house who has which kid going to which school and the level of detail is so personal, which a Wal-Mart or a Costco might - have.
So those advantages have been there forever. What's changing now is that they're adopting technology to do their own commerce.
MEHRA: And that has three elements for us, one, helping them source better, two, helping them manage working capital better, because at the end of the
day, they have to carry inventory. And three, can we help them aggregate demand in their neighborhood better using digital means?
CHATTERLEY: I mean you launched this in 2020. It's either the best or the worst time in terms of capturing what you were trying to achieve, because
it was suddenly on steroids in terms of this shift to digitization and trying to maintain a business, but for many of these people, too.
OK. So I mean, we're only talking about what 18 months' worth of data, but what can you tell me about some of the growth and the improvements that
you've seen for the people that are on their using the platform.
And give us the numbers. How many people are using it? What kind of growth have you seen? Sorry, that was a lot of questions. But now I'm very
MEHRA: I'm used to those, as you can imagine. Numbers have been pretty strong. And I think at some level, even we were initially surprised,
because but then when you think about it, it's pretty obvious.
A store is actually an offline entity. And you'd imagine that in the pandemic, they would have shut down. But then on the other hand, they are
the only or the primary source of daily necessities to their neighborhood.
And they're run by human beings who are equally afraid as any of us of catching the COVID in, in 2020. So we saw maybe a faster than what we had
And what's interesting for us is that it hasn't particularly eased after the COVID restrictions ended, which means that it may have caused a
structural shift in the way consumption is happening, or at least in our segment that consumption is happening.
What we've also seen is the stickiness element that comes so in terms of numbers, we've, we're now have about give or take 200,000 odd registered
stores, or different entities that are trying to do a reselling business.
And these and a lot of the stores are finding the uniqueness of maybe what I would call the Amazon moment just being a next Amazon person myself, of
being able to get a lot of selection of different products all on one platform delivered straight to their store.
So they no longer need to go to crowded markets, which is where the problem with the pandemic had happened, because - or wasn't even possible. And even
if you did try it, you ran the risk of getting COVID.
CHATTERLEY: Yes, OK. I mean, there's so much in there. I guess the obvious question and I have millions of them now is, how specifically do you make
money? And our viewers will notice that I keep putting up on the screen that you raised an incredible amount of money $114 million, through this
phase for expansion?
And how is the conversation with some of those big Investors, and they're incredibly well known Investors in the region, and Jeff Bezos Investment
Fund was one of them.
How is the conversation about profitability expansion, evolving at a time when we're looking around the world and wondering if we're going into a
global slowdown because that's an additional challenge for a startup that's growing fast and specifically in this region?
MEHRA: Absolutely. So we've had we've been privileged. And I'm, I would say, you know, on air, I'm very grateful to the people who decided to back
ours --. It's definitely a long period vision, to be able to realize that, so very, very grateful for backing us, we raised about $140 million over
And some of the Investors have been pretty famous names. But I think a lot of that was because of what people saw in the data, what people saw in the
vision. And there is a real shot at saying, OK, this is the new way retail may get done in emerging markets.
Now, I don't, I feel it's too premature for cooler to say that we are the ones who will shape that future. I hope that day comes. But candidly, we're
heading in that direction.
As far as profitability is concerned, we're profitable in pockets, as most startups should be doing is knowing which are the profitable pockets
amplifying those. And over time trying and testing and maybe winding down the parts that don't turn profitable as much.
So, so far, what we've done has been execute to a brick by brick plant, we've never really, we never really had that Blitz scaling thing because we
are an offline b2b business, meaning literally have to go district by district, neighborhood by neighborhood, there is no way for us to carpet
bomb with digital ads or whatever. So we do have to build brick by brick and that helps us stay sober in times when things are up or when times and
things are now.
CHATTERLEY: Yes, level headed, but excited I think about the growth of this business going forward. Come back and talk to us soon please. It's going to
be fascinating to actually track your progress. Nipun Mehra there, the CEO of Ula, sir, thank you.
MEHRA: Thank you.
CHATTERLEY: OK coming up after the break this 10 year old is helping Ukraine by playing a game. This champion of checkers is putting her mind to
a great cause, the details next.
CHATTERLEY: Welcome back to "First Move" and now to a small girl with a very big heart. A 10 year old checkers champion is taking on all comers in
a quest to support her country and raise money for Ukraine's army.
CNN's Alex Marquardt took her on and was roundly destroyed, watch this.
ALEX MARQUARDT, CNN SENIOR NATIONAL SECURITY CORRESPONDENT (voice over): At a small folding table outside of busy Kyiv shopping center, Valeria
Yezhova, just 10 years old quickly and methodically dismantles every opponent who sits down at her checkers board.
Defeated they dropped money onto the growing pile of bills and her box next to a sign that reads we are helping the Ukrainian army. What many who are
playing her don't know is that for Valeria checkers is no simple hobby.
She's the world champion for her age, taking home the trophy last summer. I really wanted to help our army and soldiers and I asked my mother what I
should do, she said. My mom asked me what I'm good at. I said playing checkers.
In nine days outside the shopping center she raised more than $700. She then presented it to the head of a foundation that buys equipment for the
military, Sergey Pritula, a celebrity and activist whom Valeria calls her hero. He broke down in tears. She says that at first people hesitated to
play her. Then as they watched her beat everyone more and more stepped up to try their luck.
MARQUARDT (on camera): Have you ever lost any of the games while you've been doing this?
MARQUARDT (voice over): I've never lost here she says. Word quickly spread about the young champion doing her part for her country. When this man
heard from his wife that Valeria was playing nearby, he quickly left work and ran over.
Valeria is already a legend here, he says, he'd rather lose to her. She's doing a great job helping the Ukrainian army. She's probably touched the
whole of Ukraine.
Other kids from her checkers club have followed Valaria's lead. Ukraine's children feel this war profoundly.
MARQUARDT (on camera): You think about the war a lot, or are you just trying to live here normal life?
MARQUARDT (voice over): I would like to live a normal life but during the war, it's difficult, she says, of course I'm scared. There are a lot of
The defeated ask for photos with the growing star Valeria is poised, calm, and all too happy to oblige.
MARQUARDT (on camera): Shall we play a game?
VALERIA YEZHOVA, CHECKERS CHAMPION: Yes.
MARQUARDT (voice over): She also obliges me with zero hesitation in her moves.
MARQUARDT (on camera): I forgot about going backwards.
MARQUARDT (voice over): As my pieces fly off the board.
MARQUARDT (on camera): There's nothing I can.
YEZHOVA: Thanks for playing.
MARQUARDT (on camera): Thank you for destroying me. Thank you very much for the game. It was an honor to play with a champion.
YEZHOVA: Thank you.
MARQUARDT (voice over): Alex Marquardt, CNN Kyiv.
CHATTERLEY: And proof that heroes come in all shapes and sizes. What a beautiful laugh. OK, and finally, better late than never might have taken
20 years to walk down the aisle, but Ben Affleck and Jennifer Lopez have finally married in Las Vegas.
In a note to her fans, the actress and singer wrote in part "Love is a great thing, maybe the best of things and worth waiting for". The couple
met on a movie set in 2001 and quickly became magnets for the paparazzi during much of the early 2000s.
They announced the first engagement in 2002, but split two years later, we wish them all the very best second time around. And that's it for the show.
If you've missed any of our interviews today, they'll be on my Twitter and Instagram pages you can search for @jchatterleycnn. "Connect the World"
with Becky Anderson is up next. And I'll see you later.