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First Move with Julia Chatterley

Moscow Pivots to Beijing as Western Sanctions Sting; Mourners Stand in line for Hours to Pay Respects to Queen; Mourners Queue for Hours to say Goodbye to the Queen; Norway Becomes an Energy Lifeline for Europe; Tentative Deal Reached to Avert U.S. Rail Strike; Biden: Deal is a Win for Railway Workers, Companies. Aired 9-10a ET

Aired September 15, 2022 - 09:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[09:00:00]

(COMMERCIAL BREAK)

JULIA CHATTERLEY, CNNI HOST: Welcome to CNN! I'm Julia Chatterley in New York. On the program today tears and tributes in London thousands paying

their emotional last respects to Queen Elizabeth II, who lives in state at Westminster Hall. All this as we receive new details of the Queen's state

funeral to be held on Monday.

Royal expert Sally Bedell Smith, who I've realized over the past week from spending lots of time with her has truly unique insight into the Queen's

extraordinary life will join us to discuss.

Also today, China's President Xi and Russia's Vladimir Putin meeting for the first time since Russia's invasion of Ukraine two leaders whose

strategic decisions have resulted in immense strain on their respective economies. They meet today in is Uzbekistan, which incidentally is the

first trip outside of China since the COVID pandemic for President Xi are the details on that just ahead.

And real rail relief in the United States negotiators reaching a tentative agreement just hours ago to avert a major strike and prevent more supply

chain blockages and price pressures so lots to get to you today but first aid deepening partnership, Vladimir Putin and Xi Jinping meeting face to

face in the ancient Silk Road city of Samarkand at the top of their agenda, the war in Ukraine and tensions over Taiwan.

Ivan Watson has been following all the details for us, Ivan, great to have you with us. President Putin, of course, under strain as a result of

setbacks in the North East of Ukraine coming into this meeting China so far, willingly to help financially with buying energy not willing, we

believe in still not willing to supply weaponry has anything, will anything change in this relationship?

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: Well, you know, judging by the first comments that are now starting to come out, it does not look like

Vladimir Putin is getting full throated support for his deadly adventure in Ukraine from the Chinese President. In his comments to Xi Jinping in

Uzbekistan, Vladimir Putin was pretty quick to address the elephant in the room. And he said that he appreciated his Chinese friends, balanced

position on the Ukraine crisis, as he put it.

And he understood Xi Jinping's questions and concerns about Ukraine and said he would address them, even though they've discussed this in the past.

So this suggests that there are concerns about this war. And it is a subtle shift in tone, I think from the last time we saw these two leaders' meets

that was in early February, on the eve of the opening of the Beijing Winter Olympics.

And there you have these two leaders united in their real dislike for the U.S. and its foreign policy, basically calling for a new world order not

dominated by the U.S. And what a different seven months and a deadly war makes.

Now you have Vladimir Putin coming to this meeting, more internationally isolated than ever. He's military, battered, and arguably humiliated. And

he needs China more than ever. As for Xi Jinping, he's coming to this meeting. It's his first time outside of China since basically the beginning

of the pandemic.

And he's looking for an international stage as he's set to try to nominate himself for an historic third term in office adjust next month, we are not

seeing again, a declaration of broad support for Russia's war in Ukraine, coming from Xi Jinping. And we just heard from the White House, an echo of

that analysis saying that the White House is not seeing China, visibly supporting Russia's activities in Ukraine, perhaps diplomatically.

We have heard Beijing arguing that basically the U.S. and NATO kind of forced Russia to invade Ukraine, but so far not seeing overt signs of

Chinese military support for Russia's war, Julia.

CHATTERLEY: Fascinating timing for both Presidents here. Ivan will continue to watch any further headlines from those meetings. Great to have you with

us thank you for the insights there, Ivan Watson!

Now as we await more details, as I say of their meeting, here's a look at how their economic relationship has changed in recent months.

[09:05:00]

(BEGIN VIDEOTAPE)

CLARE SEBASTIAN, CNN CORRESPONDENT (voice over): In December 2019, a tangible success for Vladimir Putin's pivot East - spending almost 2000

miles the power of Siberia pipeline was the first direct link supplying Russian natural gas to China. That gas to be supplied under a $400 billion,

30 year deal signed in 2014, just three months after Russia annexed Crimea, as Western sanctions tightened their grip

SAM GREENE, PROFESSOR OF RUSSIAN POLITICS, KING'S COLLEGE LONDON: As Russia decided to essentially go to war with Europe over a trade treaty over a

comprehensive free trade agreement that Europe wanted to sign with, with Ukraine, which is what provokes the initial intervention and in Crimea and

in Eastern Ukraine in 2014. You know, Putin knew that this was going to bring costs and he knew it was going to bring sanctions and so he saw the

relationship with China as an opportunity to hedge against that.

SEBASTIAN (voice over): Pipelines and pancake signaled ever closer ties between Presidents Putin and Xi. Both countries saw relations with the West

deteriorate. Now surprise then that Putin's last foreign trip before invading Ukraine was to Beijing, where the two leaders declared their

relationship had "No Limits".

Russia's invasion did reveal some limits. Chinese officials say they have not provided military or economic aid to Russia. But China has refused to

condemn the war, abstaining or voting with Russia at the U.N. despite international pressure.

JOE BIDEN, PRESIDENT OF UNITED STATES OF AMERICA: I think that China understands that its economic futures much more closely tied to the west

than it is to Russia.

SEBASTIAN (voice over): And yet trades between Russia and China grew by almost a third in the first seven months of the year. According to a

Reuters' analysis of customs data China has ramped up its purchases of will be at heavily discounted Russian crude oil. A trend Russia hopes will

continue when a partial EU oil embargo comes into force in December.

And Russia's energy giant Gazprom says that daily gas flows through the power of Siberia pipeline hit a record in July. This month, the two

countries announced China would pay for gas in Rubles and Yuan shifting away from the Dollar. Another sign of their shared opposition to the U.S.

led world order, something that for China intensified in the wake of Speaker Nancy Pelosi's visit to Taiwan.

GREENE: China is - enjoying but it's taking this as an opportunity to see you know how the West responds to a military challenge like this to see

where the breaking points might be.

SEBASTIAN (voice over): The tests now with Russia losing ground on the battlefield is whether China's tacit support has a breaking point when

Russia needs it most. Clare Sebastian CNN, London.

(END VIDEOTAPE)

CHATTERLEY: And in the meantime, European Commission President Ursula von der Leyen is in Kyiv, for her third visit since the start of the war day

after she strongly restated the EU support for Ukraine in her annual speech of the Union address.

Now the meeting comes after President Zelenskyy was involved in a minor car accident in Kyiv for returning from a visit to the newly liberated city of

Izium. He did not suffer any serious injuries. Zelenskyy claims that Ukrainian forces have retaken almost 8000 square kilometers of territory

over the past two weeks. Nick Paton Walsh has more on his visit to Izium.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): This is what confidence in victory looks like delighted swagger from Ukrainian

President Volodymyr Zelenskyy, touring the liberated city of Izium. A commander in chief greeted here as another human, the smiles for this

President as genuine as the danger, listen here. And you can hear explosions as he talks.

It may be possible to temporarily occupy our territories, he says. But it is certainly impossible to occupy our people. These last months have been

extremely hard for you. This is why I asked you take care of yourselves because you are the most precious thing we have.

It is a victory that came at an as yet unspecified cost, this moment of silence for those dead what he sees utter devastation, part of why Russia

is losing. It's hard to occupy and defend a city in this ruin. It's hard to imagine the Russian army state of mind when it left behind this much of its

armor.

And what's Zelenskyy did another reason Ukrainian morale seems to remain high. Russian President Vladimir Putin is usually hundreds of miles away in

Moscow when he gives out medals this past startling week, a tale of two nations and a gulf in enthusiasm for the fight.

[09:10:00]

WALSH (voice over): Moscow's man power crisis so acute. This video is apparently from a Russian prison, allegedly showing the man called Putin's

Chef Yevgeny Prigozhin (ph) personally recruiting convicts for the front line.

He tells prisoners that war is hard. They can't desert get taken prisoner, drink, take drugs or have sex with flora or fauna, men or women in the

fight an undesirable message to an undesirable crowd.

Russia increasingly less looking like a nation united in what it won't even call a war yet even Putin stooges turning here Chechen leader Ramzan

Kadyrov, again undermining the Kremlin that brutally put him in power.

If you ask me, I would enact martial law and exhaust all possibilities to end the conflict with these demons. Unlike a volunteer for Russia, he said,

writing later, "We are at war with the whole NATO block". The unthinkable is happening. Russian dissent and criticism growing, but not yet, at the

speed of Ukrainian advances Nick Paton Walsh, CNN, Kharkiv, Ukraine.

(END VIDEOTAPE)

CHATTERLEY: And you're looking at live pictures of Westminster Hall in London where thousands of people from across the world have waited for

hours to pay their final respects to Queen Elizabeth II and they continue to stream past her casket there.

CNN's Max Foster is also outside Buckingham Palace for us with new details about Monday's state funeral. Max, good to have you with us! What more do

we know now?

MAX FOSTER, CNN ROYAL CORRESPONDENT: Well, first of all, we know that we've just been told on Friday that we're very poignant moment at 2:30 your time

when the four children of the late Monarch will be standing vigil there in Westminster Hall.

And each corner of the coffin and the public will continue coming by so for whoever's there at that moment, of course, you can't time it just depends

where you are in the queue. That'll be a really profound moment in I think, modern history, I think, pretty emotional, just seeing the coffin let alone

seeing the three children standing around it.

Then on Sunday, we've just been told, a quite incredible event here at Buckingham Palace where heads of state flying in for the funeral will be

hosted by the king, we think he's going to be the biggest gathering of heads of state, certainly in modern history looking at the guest list so

far, people confirming that they're coming.

Joe Biden, of course amongst them, but also the Emperor of Japan who very rarely travels for events like this just shows how many heads of state will

be here on Sunday and Monday. And I think that will be quite extraordinary. Then, as you say, we've got these details on Monday, at 6 am your time the

funeral will take place with all those heads of state it at Westminster Abbey, a very solemn affair, followed by a procession to Windsor.

The royal family will walk behind that procession as it makes its way through London and through Windsor. And then the hearse will carry the car

between those two different places at Windsor. There'll be a service, the Chapel there.

I think that look very similar to Prince Philip's service where the Queen will at the end of it be lowered into the royal vaults next to Prince

Philip and then they will both be buried together at a Chapel alongside where the Queen's parents and sister are buried.

So I think that'd be very poignant. We won't see that last moment. The last thing we'll see is the Queen's casket being lowered into the vault at the

Chapel at Windsor, but it will cap a quite extraordinary day I think, on Monday, full ceremonial day, but also a massive international event.

CHATTERLEY: Hugely symbolic and hugely emotional to your point it's fine we've just been showing live pictures as well as people continuing to pass

Queen Elizabeth II's coffin one person wiping a tear away another clearly a former service member making a salute to the Queen as well very emotional

images.

Max. I just wanted to ask about King Charles III, actually, I mean, he clearly must be exhausted after all the events of the past few days not to

mention the emotion of --.

FOSTER: --I think we just saw Christina MacFarlane just - holding the baby. Does that Christina? Anyway, I mean, everyone's going down there. It's

quite an extraordinary moment. When you speak to people in the queue, I think the thing that's really grabbed me about speaking to people is, you

know, imagine that they're there in the queue for like, hours, you know, up to eight hours, some of them nine hours, and they're with random people and

then they get to know these people and they share stories, and they're getting immensely close to these people it's quite a random situation.

[09:15:00]

FOSTER: And then they have this very powerful moment where they share a moment of history as they walk into Westminster Hall and see the coffin,

and you're coming away. People are swapping numbers, they're sharing stories, and they're staying in touch.

And they're going to remember that moment, of course forever, but they're also going to remember the people they were with. And I think this really

speaks to what the Queen would have wanted. You know, she wanted her funeral but days of mourning, leading up to it to be a unifying moment for

the nation. And I think that speaks to it more than anything else I think I've seen throughout this process.

CHATTERLEY: Yes, I think Theresa May was there earlier, Former U.K. Prime Minister, potentially CNN Correspondent, a Former Service Member, to your

point, it's uniting all I think in respect for her service and the time she spent, of course, as the monarch of this country, Max.

I was just very quickly; I just wanted to ask King Charles today, what what's he doing today? I was just mentioning I can only imagine how

exhausted he is after the past few days and the emotion of dealing with loss too. What do we know about the Queen consort and King Charles today?

FOSTER: Well, they've gone to the West of England; he's gone to his home that is very dear to him. It's a sanctuary really its Highgrove house, a

place he spends lots of time. I mean, it was being couched yesterday in the British media as a moment of rest, to retreat and to regroup. And being

told that isn't the case.

Actually, today, it's an opportunity to take calls from world leaders and members of the Commonwealth and particularly the realms where he is Head of

State places like Canada, Australia, and Jamaica. He needed time to have conversations, and he's doing that remotely, effectively from Highgrove

house.

So it's not a rest time we're being told is working very hard. And also, as you know, the role of the monarch is to go through the red boxes, which are

sent to the monarch from the government to read government papers to keep up to date on what's happening in government. He now has to start that

process. He hasn't had a chance to catch up really. So he's gone away to try to catch up on the red boxes and with those phone calls, so very much

not working but he is out of sight.

CHATTERLEY: Yes, Max, good to have you with us. Thank you for that Max Foster there.

OK, straight ahead, we return to London as the line to pay their last respects to Queen Elizabeth continues to grow, see you soon, stay with us.

(COMMERCIAL BREAK)

CHATTERLEY: Welcome back the queue of mourners along the River Thames to pay their respects to Queen Elizabeth II is moving at a pretty brisk pace.

Although you're looking at live pictures now and those people look like they're standing still but just let me give you a look at this too,

according to the government's acute tracker page on YouTube.

Yes, there is one of those. The line is just over four miles long. That's around at seven kilometers. CNN's Scott McLean has been discovering that no

one cues better than the British.

[09:20:00]

CHATTERLEY: Well, we don't mind queuing but we do like to have a queue that moves too. Scott, what have people been telling you there? I know there are

people I've spoken to saying they're making all sorts of friends while they wait.

SCOTT MCLEAN, CNN CORRESPONDENT: Yes, that's true, we know, as you mentioned, Julia, you, breath, you love a good cue. And this has got to be

the super bowl of all queues. We finally - we've been chasing it all morning, we finally managed to find the end of it and is right in this

spot, the Thames River is just beyond this building here.

And we finally managed to reach the end of it, because the end is sort of fluctuating all the time. And then you can see the stream of new people who

are coming here, getting off the tubes and getting off the trains and buses and walking quite a distance to try to figure out where the end of the line

is? Of course, there's a government tracker, which gives you an approximate location of the end of the line.

But to be honest with you, it is changing literally by the second because sometimes it'll move quite quickly. And sometimes it won't really move at

all. The Mayor of London said that look, this event of seeing the Queen's body lying in state in the funeral and all the pageantry around it. It is

like the London Marathon, the London Olympics in 2012, and the last couple of Royal Weddings all combined.

And now you can see why he thinks that just because there are so, so many people and many of the people that we've spoken to have traveled several

hours into London to get here. Some of them have traveled from abroad from the United States, from Canada, not they just happened to be on vacation,

there are those folks as well.

But these are people who have come specifically for this. And I just wonder ma'am; you're at the very back of the line. You're live on CNN right now.

And I'm just wondering what is it like to be at the back of a queue that is more than four miles long?

UNIDENTIFIED FEMALE: What can I say? I feel like I really have to be here today. So I will do this for a few hours. And what can I do? It's not

raining. So the weather's good.

MCLEAN: That's true, you cheer up. I wonder how long you have guys preparing to stand in line for.

UNIDENTIFIED FEMALE: As long as it takes we we've came from Durham, which is a long way away. It's about six hours drive in this traffic for say it

for the long haul.

MCLEAN: But of course you guys were hearing that, you know projections of lines of 10, 15 hours or so.

UNIDENTIFIED FEMALE: At first, they were saying 30 hours but I think we've turned it into four lines now. So we have a Queen.

MCLEAN: Yes, absolutely. So Julia, the thing is that we have of course, when we got here this morning, people were thinking that they might be in

line for 10, 15 hours, some people thought that they'd be here for 20 hours.

Well, it turns out the lines moving a bit quicker than they thought. So we were near the front of the line and about to get about three miles down, or

two and a half miles down, it was taking about two three hours. But just to give you a little bit of perspective, if you were to walk this route, just

at normal pace, it would take you well over an hour.

So if you think it takes you an hour just to walk at a normal pace, it's going to take you even longer to be in part of a queue. And I have to say

the mood here it's not necessarily somber, I wouldn't call it a celebration either.

But you mentioned that people are making friends. And you know we've met people who you know, were total strangers in the morning. We saw them in

the queue. We met them at near the front of the queue a few hours later. And you know 5 or 6 women were thick as thieves. They were the best of

friends they were having the best time and really sharing this common bond have this real admiration for the Queen.

CHATTERLEY: Friends for life as a result of them queuing to pay their respects. I think from what we know of Queen Elizabeth II, I think she

would approve of that too. Scott McLean, thank you for being there and thank you for sharing that with us.

MCLEAN: You bet.

CHATTERLEY: Yes, I want to bring in Royal Expert and Author Sally Bedell Smith, she has unique insights into the life of the Royal Family. Queen

Elizabeth even granted her special access to her parent's letters and diaries.

Her upcoming book, "George VI and Elizabeth: The marriage that saved the Monarchy" is out next year. Sally, great to have you with us on the show

you! And I have spent many hours over the past week talking behind the scenes, even if it's only translated two minutes on air.

And you do have I've seen an encyclopedic knowledge actually of the Royal Family and funny stories from behind the scenes. But it was actually what

you mentioned about this unique access that the Queen Elizabeth granted you to look at these diaries and letters that I wanted to talk to you about.

And what they say about her parents and how they shaped the person that she became too as Queen?

SALLY BEDELL SMITH, CNN CONTRIBUTOR: Well, they shaped her profoundly and the way they trained her from an extraordinarily early age, even as early

as the age of four, she was meeting the - of the Princess of India. And of course, their education of her it was very specifically tailored to

somebody who would be a monarch.

And, you know, starting at the age of 10, when she began to learn about constitutional theory, and the principles of the British Constitution, and

each of them in his, in her own way, taught her things particularly her father, who of course was uniquely positioned to tell her, what it was like

to be a Queen?

[09:25:00]

SMITH: Little knowing she would become a Queen so early, but they were and the experience that they shared together out in Windsor during World War II

and what she saw on that troop she met and the training she received or the end of the war. And as you know, the auxiliary territorial service learning

to be a car mechanic all these things were essential elements of her preparation.

And even though she was only 25 when she took the throne, she was ready.

Winston Churchill's Daughter, Mary Soames, Lady Mary Soames told me that he remarked to her how confident she was and how she felt as if she slipped

into the role. And I think people when you look at them, the movie tone news time, you can see she had that presence, that sort of combination of

grace and modesty and commitment that had that characterized her for 70 extraordinary years.

CHATTERLEY: I think that also is part of the character, and the strength and what allowed her humor to show at times too, which I know you and I

have spent a great deal of time talking about as well. I think, crucial to this whole story and her life to me is the relationship that she had with

Prince Philip.

And also what you discovered as well by reading these diaries of the love story between her father and mother as well, which also played out and was

a fundamental piece of the puzzle. Sally, how important both of those things when we understand the strength, the power, the resilience, and the

humor of Queen Elizabeth II? Because I think perhaps we haven't talked enough about that over the past week too, with everything that's been going

on.

SMITH: Well, her parent's love story is really quite remarkable. And I was just so privileged to have access to the papers that sort of laid it all

out. And they married for love. He was madly in love with Lady Elizabeth Bowes Lyon; she took a little while to accept his proposal 30 months

actually.

But when she did, she was deeply in love with him and so totally devoted to him. And so that was the model that the future Queen had and she married

Prince Phillip for love. She fell in love with him when she was 13 years old. And he was 18 years old.

And I remember one of her friends, Lady Prudence Penn once said to me, you know, with the two of them, there was always a laugh around the corner. And

they were obviously united in their service and in their duty. But they also - he was an enormous, leavening presence in her life.

I watched a couple of times when they're on tour, and I saw something that went slightly awry and I watch them get into the car together. And they

were obviously talking about it and laughing. And we have to - this is a time of terrible grief.

But we also have to remember that in private, the Queen had a wonderful light side. And remember, the man who was sort of in charge of Sandringham

saying that you could hear her laugh throughout the whole house. And that's a very big house.

CHATTERLEY: I loved that story. And I will continue to love that story. Sally, I do want to ask how this all translates to what we see? What we

have seen and what we will see in the future for King Charles III, too?

And you and I have discussed I think how well he's done under great strain, great sadness. Sounding like a King in the early stages and yet what has

gone viral on social media is his interactions with a fountain pen and some of the challenges and I have to say of all the precision and the

organization over the last six days the idea that we couldn't give our new monarch pen that worked.

Just please hadn't the King awry quite frankly, sort of makes me sad to some degree, but it's also humorous. What do you make of this of a moment

of, I guess petulance of frustration among great stream, let's be clear, Sally, is this something we need to discuss about our future King? Or do we

just need to give him a break quite frankly?

SMITH: Well, important that we needed to give him a break. He's obviously been under enormous strain. Also, he's quite insistent on using a fountain

pen.

CHATTERLEY: Well, maybe no longer.

SMITH: There was no bar that he was not going to sign anything. Did you know that happened? He can have a short fuse. But you know, today when, as

Max was saying he's in Highgrove, all of those that he was doing at Highgrove calling the leaders doing red boxes.

[09:30:00]

SMITH: He could be doing in Buckingham Palace. He went to Highgrove I believe, because it is a place where he can retreat. He is the only King in

the history of Britain who has a custom built sanctuary, built in the shape of a cross. It's an extraordinary building.

It has a quote from "The Evening Collective", the Book of Common Prayer over the door saying light and our darkness we beseech thee, oh Lord, it

has Byzantine icons. It has Greek Orthodox texts. It's lit only by a candle light and a fireplace. He never scared keys.

So it has four door knobs, two of which he has the secret combination too. It's a sort of amazing little place. And it's in the middle of his garden

that he created. He has said that it is the place where nobody can get to me and every time he goes to Highgrove, he goes there for at least 10

minutes.

Sometimes he goes in there to write speeches. You know, that's what I think he may not be spending the day reflecting but I would imagine that he is

spending time in his sanctuary, which is very, very important to him.

CHATTERLEY: Somewhere to draw strength from. Sally thank you for making me wiser and telling me funny stories. I look forward to reading the book.

Sally Bedell Smith there, thank you we'll reconvene.

SMITH: Thank you.

CHATTERLEY: Stay with us we're back after this.

(COMMERCIAL BREAK)

CHATTERLEY: Welcome back! They need a proposal to help deal with Europe surging energy costs tap the profits of the energy companies themselves.

The European Union has proposed capping the profits of renewable and nuclear electricity generators and taxing the windfall earnings of oil and

gas companies.

The goal is to raise $140 billion equivalent to help households and businesses pay their energy bills. It's part of a larger package to help

the region weather the energy crisis this winter. Since Russia launched its war in Ukraine, Norway has also become a gas lifeline to Europe.

Before the war it supplied 20 percent of the EU's gas needs. Now as Russia reduces supplies its estimated 25 percent of the gas consumed in the EU

this year will come from Norway. It's also a major exporter of electricity close to 92 percent of its electricity production actually comes from

hydropower.

And joining us now is the Secretary for the Norwegian Ministry of Petroleum and Energy Andreas Eriksen. Deputy Minister fantastic to have you on the

show! For many reasons you're intricately involved in the energy system within the EU, even though you're not an EU member state.

[09:35:00]

CHATTERLEY: Can I start by asking you for your wisdom on some of these proposals? Do you see it as a good idea to be taxing oil and gas companies

and potentially capping the profits on cleaner, renewable and nuclear electricity firms? What's your sense?

ANDREAS BJELLAND ERIKSEN, STATE SECRETARY, NORWEGIAN MINISTRY OF PETROLEUM AND ENERGY: I think we see a situation in Europe now in general, where the

need to have broad measures in place to help consumers with the extremely high energy prices are very important.

And the fact that some of the financing for those measures probably also should come from some of the companies that have high income in this crisis

that is probably a good approach from the European Commission.

CHATTERLEY: Including capping the renewable and nuclear energy providers, I think some would look at that and say, they may be making windfall profits.

But these are arguably the good guys if we're looking at a microclimate sustainable future?

ERIKSEN: Absolutely. At least in Norway, we have a broad tax base with respect to the energy system. We see that that work well over time. And we

think from Norwegian point of perspective, which is important to keep in place.

But it's an extremely special situation that we see in Europe right now and the fact that the member states need to find special measures for tackling

these hard times. That is very understandable from a Norwegian point of perspective.

CHATTERLEY: And what about from a Norwegian perspective on taxing windfall profits for gas companies, for example, because you are in a luxury

position, where you heavily subsidized that the consumption, be it fair for households, or consumers? Is this something actually where you could

provide gas at lower than market prices, given the extreme acceleration that we've seen globally, in what's being charged?

ERIKSEN: First, let me just emphasize that these measures are proposed for the member states of the EU. Obviously, Norway is not a member state of the

EU. So we are in a somewhat different position. And from our point of view, the most important thing that we are doing together with Europe right now

is to produce as much as we can help substitute the reduced exports of gas from Russia.

And we also have a strong dialogue. We have set up a task force between the EU and Norway to look for measures as to how we can help combat the effects

of the crisis that Europe is in right now.

Obviously, we have a high income for the state pension fund in the current regime. We have in general, a very high tax on the Norwegian petroleum

sector. And we are planning to obviously keep that in place with a stable framework going forward. And then it's important to have a strong dialogue

with Europe to try to find measures that can help them in the current crisis.

CHATTERLEY: What's most often talked about and the decision has been pushed back within the EU member states to October is the prospect of a gas price

cap, not only on Russian gas, which of course is lessening and lessening but even including countries such as yourself, that's now become a

significant supplier of gas to EU nations.

I think 15 now by the last count saying that this is something that they agree with, but clearly plenty of EU nations aren't on board with this for

various reasons. What's your stance? And why would this be perhaps a bad idea other than financially for Norway?

ERIKSEN: First, it's important to note that it's the companies on the Norwegian continental shelf that both produce and sell their gas to the

European market. So the state in itself does not have any role to play in the price setting or the agreements that are made with European buyers of

Norwegian gas.

But from the government's point of view, we have been skeptical about a price capping off the gas price. First and foremost, because the underlying

problem in Europe right now is a lack of energy and a price cap does not solve that.

Quite on the contrary, it might strengthen the energy crisis both with leading to too high demand in the market and the need for putting in place

other types of rationing measures that we have not seen thus far and also that it might lead to gas flows away from Europe and to other markets which

could also strengthen the crisis of this victory in Europe.

[09:40:00]

CHATTERLEY: I mean there are so many distortions, whether it's in the energy exchange markets in the way that power prices are set based on the

highest price input, like gas, for example. I think in the end, part of the solution has to be a way to bring demand down however that looks like.

And I think the Greek Prime Minister spoke to me several months ago saying why not incentivize businesses in particular that can to use less, and

obviously, the EU is agreed to reduce demand for gas, do you think perhaps a similar way.

A voluntary way of reducing the amount of electricity that's used and perhaps compensating those companies for playing their part would be a

smart way to do this, too, whether it's for EU nations or anywhere else?

ERIKSEN: That is obviously a good approach, helping to reduce demand, while at the same time, for example, help them tackle their very high costs right

now. Obviously, that could be an effective way to utilize the good things about markets, helping reduce the types of demand that are the most

flexible and willing to take such a payment to help alleviate the energy crisis and the lack of energy in the system.

CHATTERLEY: Yes, I think we're in agreement, but I don't see it on the list. Deputy Minister, I want to talk about the situation in Norway as well

with your hydroelectric power facilities and concerns that we saw back in August that low levels of rainfall in your reservoirs perhaps may mean at

some point in the future, you have to make tough decisions over restricting exports of electricity to other nations.

Can I ask, first and foremost, where you are today on that and whether or not we can rule out those export restrictions simply because of the broader

geopolitical and energy crisis that other nations are facing? And I guess my second question that's tied to that is.

Does it mean longer term, if lower rainfall is the risk as a result of climate change, that actually knowing is to think strategically about

diversifying how it produces electricity and the reliance on hydroelectric power in the future?

ERIKSEN: It's very important to note that Norway and the electricity system in Norway is very strongly linked to our neighboring countries, and it will

be so also going forward. Therefore, the mechanism that we have been looking into does not directly restrict export. But it prioritizes the

filling of reservoirs when they reach critically low or very low levels.

Now, it's not been finalized yet, we're looking into this. But it's very clear from our point of view that we are going to do such a mechanism in

line with the EA agreement in line with the principles that are important to making the Nordic and European electricity market functioning properly.

But obviously, our hydropower plants can play a very important role also in balancing the systems in our neighboring countries and thus ensuring that

we have sufficient supply in our reservoirs are very important.

And then I think your point on the climate change that we might get more unstable weather systems going forward are an important one. A large share

of our electricity production is based on hydropower. And now we see an interest for example, for building more offshore wind.

We have an ambitious plan of building 30 gig watts of capacity and working that by 2040.

By doing that, we will help diversifying our system and also it helps our security of supply to be connected to our neighboring countries.

CHATTERLEY: Yes, it's fascinating even as we try and push towards their cleaner energy future we have to take into account the changes in the

climate even as we're doing so. We should talk about this again, sir. Please come back on and talk to me again soon because that's a whole

separate conversation. Andreas Eriksen, thank you so much the State Secretary for Norway Ministry of Petroleum and Energy great to chat to you

today thank you!

OK, coming up, they're still working on the railroad an early morning agreement has been reached to keep freight trains running across the United

States. The tentative deal if approved, will give hefty pay raises to workers, that story just ahead.

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[09:45:00]

CHATTERLEY: Welcome back to the program! A volatile week on Wall Street continuing U.S. stocks lower in early trade this Thursday as another set of

economic numbers underlines the resilience of the American economy even as the Federal Reserve raises borrowing costs.

Retail sales rising three tenths of a percent last month reversing weakness seen in the month of July falling gas prices it seems helping to maintain

an even boost spending. And unemployment claims fell for the fifth straight week too, a sign that the fed's efforts to slow the economy and ease

inflationary pressures have not yet led to a significant slowdown in hiring.

Now making a bold move in the battle against climate change, the Founder of Clothing Company Patagonia is transferring ownership of the firm to two

special bodies that will use the profits to protect nature and biodiversity.

And we're talking around $100 million annually. The brand best known for outdoor clothing and equipment has long been associated with environmental

clauses. Paul R LA Monica is here with all the details. Wow! This is succession planning on steroids.

So he's put the company into a trust, the proceeds or the profits that aren't reinvested into the business will be given to climate change or

those trying to protect the climate, however they choose to spend it. This is a bold move?

PAUL R LA MONICA, CNN REPORTER: It's a very bold move, Julia. I think that what Patagonia realized here is that this decision is the best way to

continue investing in climate change initiatives and planet friendly initiatives going forward because you have the company committing its

annual profits as you pointed out.

About $100 million after they reinvest in the business every year will go to these, you know, environmentally friendly causes. And it's set up in a

way that you have the voting rights will be in shares of the company that are controlled by Patagonia executives, family members, that will make sure

that the business is doing what they need to do.

And then the nonvoting is a collective charitable organization that will donate to these causes. And I think the company actually realized that this

structure, while unique is probably the best way to go about doing this because selling the company or taking it public probably wouldn't have

really been good options.

CHATTERLEY: And I love that you mentioned that because that caught my attention too. His comments on not going public even public companies with

good intentions are under too much pressure to create short term gain at the expense of long term, vitality and responsibility.

And it's fascinating in this country now where you've got regulators like the SEC looking at forcing concrete disclosures on climate change and

they're receiving huge pushback?

MONICA: Yes, huge brush back. A lot of executives don't necessarily want to have to commit to doing things that are eco-friendly and green especially

if it costs them money and they have to spell out how much they're spending?

[09:50:00]

MONICA: They're worried about short term shareholders, be it mutual funds, individual investors, hedge funds freaking out about that. What I think was

a really interesting point as well Julia is that the company admitted that they also had the option of selling Patagonia for presumably a big profit.

And if by doing that, they could have made a lot of money, but then you can't ensure that new owners would be stewards of the planet and do the

right eco-friendly things that the current management wants.

CHATTERLEY: Yep, standing by the valleys. Paul R LA Monica thank you for that! Tennis Great, Roger Federer announcing his retirement from the sport.

The winner of 20 major titles underwent a third knee surgery last year. Federer's announcement comes on the heels of Serena Williams also of course

announcing her retirement.

Federer posted on social media that next week's Laver Cup in London will be his final ATP event. In his post he thanked his fans his family and his

team for standing by him for all these years. Wow! Those tickets just became a really great investment. We're back after this stay with us.

(COMMERCIAL BREAK)

CHATTERLEY: Welcome back! A nationwide rail strike averted here in the United States after marathon talks, a deal has been reached to avert a

walkout that would have brought railroad freight services to a halt.

There were fears that a major new hit to U.S. supply chains would have pushed consumer prices even higher. President Biden who called into the

negotiation says the deal is a win for rail workers and the train operators.

Adrienne Broaddus is in America's Trade Hub Chicago for us now. Talk us through the contours of this deal. How confident are we that it's actually

going to go from tentative to a done deal? And how instrumental really was President Biden?

ADRIENNE BROADDUS, CNN CORRESPONDENT: Well, I'll start with your first question. Union leaders who were at the table negotiating are confident

this is an agreement their members will accept. In fact, they called this historic one of the presidents who represents one of the unions and he said

we were able to obtain an agreement that has negotiated attendance rule.

And as I mentioned, he called this historic and said it's something the union has been pushing, pushing for and striving to do for some time. Those

members want a time off to go to the doctor or if need be go to visitation for a loved one's funeral.

And you asked about the importance of President Biden. The President's role was critical. He's been making private - prior to last night he had been

making private phone calls. But in the nine o'clock hour, he made a critical call to those negotiating and said hey, and I'm paraphrasing here,

this is the bottom line. If 60,000 in have your members walk off the line and strike think about the impact it will have on the American people think

about the impact that will have on families.

[09:55:00]

BROADDUS: Think about the children that will be impacted. We're talking about every sector of society being touched more than 30 percent of

freight, or goods are moved by freight here in the U.S. and we're still reeling from the impact of the pandemic. So President Biden played a key

and critical role, Julia.

CHATTERLEY: And a better condition for workers which I think is the key point here too. Adrienne, great to have you with us thank you for that!

Adrienne Broaddus in Chicago there. OK, that's it for the show. Coming up here on CNN, Becky Anderson is at Buckingham Palace for our continuing

special coverage, has thousands gathered to pay their final respects to Queen Elizabeth II.

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[10:00:00]

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