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First Move with Julia Chatterley
Power, Water Supplies Gradually being Restored around Odessa; Twitter Blue Service Costs more for Apple iPhone Users; ATHEX CEO: We Want the World to see Opportunities in Greece; Yellen: Inflation will Ease Next Year; Clerc: Energy Crisis Taking a Bite Out of Disposable Income; NASA's Orion Capsule Returned to Earth Sunday. Aired 9-10a ET
Aired December 12, 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, CNN HOST, FIRST MOVE: A warm welcome to all our First Movers around the globe. Great to have you with us this Monday in the
holiday season truly in gear. Everyone ready for some well-deserved cheer though. Wall Street's carolers not yet in the clear, lots of high C's to
hit before closing out the year.
And to give you a sense the C's on our Christmas crunch list include Central Banks, the Fed the ECB and the Bank of England all expected to
deliver fresh rate hikes this week. And from Central Bankers we have heard on high to long awaited CPI. New U.S. consumer price data out tomorrow,
that's Tuesday after a rough read on factory gate prices sunk stocks on Friday.
Things won't be merry, if Tuesday's prices are a little hairy, and C is also for Crypto. Sam Bankman-Fried is coming to town or at least expected
to testify remotely at U.S. congressional hearing on the FTX failure tomorrow. And C is also for consolidation, the biggest healthcare merger of
the year just announced with biotech firm Amgen, buying drug developer horizon therapeutics in a whopping $28 billion deal after a heated global
bidding war.
And finally C for Cloud, Microsoft today buying a 4 percent stake in the London Stock Exchange as part of a 10-year cloud computing services deal
Microsoft will provide the exchange with the next generation data analytics and in the meantime, U.S. stocks trying to move higher after let's call it
cloudy week with 3 percent plus losses for the S&P and the NASDAQ.
Europe a bit softer to following red arrows across the Asia session investors will likely be cautious ahead of those expected rate hikes this
week and of course, also keeping a keen eye on the energy complex.
A cold snap in Europe focusing attention once again on soaring electricity prices and the potential for power outages the EU Commission President
Ursula von der Leyen warning of substantial gas shortages in the New Year if the Ukraine war drags on we're showing you pictures of the U.K. I
believe there, but we do begin today's show in Ukraine.
Ukraine's Defense Minister saying the nation's counter offensive will resume when the ground freezes as it will be easier to move heavy military
equipment. Meanwhile, President Vladimir Zelenskyy is attending a virtual G7 meeting today to discuss further aid for Ukraine. Will Ripley, joins us
now from Kyiv?
Will, good to have you with us President Zelenskyy once again pleading. I think for more support as winter deepens, particularly given they're
battling the loss, I believe of around half of their energy system infrastructure. I know you spoke to the Defense Ministers too. What did you
speak to him about with regards further protection for the skies and of course, this critical infrastructure with it?
WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, yes, you know, the Defense Minister Oleksii Reznikov, Julia told me what we've heard from
the Ukrainians before that air defense is their number one priority right now, simply because of what's been happening, and this nearly constant
bombardment by the Russians.
I mean, we were just down in Odessa, the Southern Ukrainian port city that's had its power grid hammered repeatedly. They were out of power for
three days last week when Russia lobbed dozens of missiles at this country and their power station took a direct hit.
And then over the weekend, these Iranian made kamikaze drones attack the power grid again, there were 15, drones fired. The Ukrainians shot down 10
of them, but 5 of them detonated when they hit their target these explosive drones can cause severe damage. In this case, they knock out power to
nearly everyone in the Odessa region.
You're talking about 1.5 million people. So when I spoke with the Defense Minister, the first thing I asked about was Ukraine's plan of action in
responding and firing back when these attacks happen.
(BEGIN VIDEOTAPE)
RIPLEY (on camera): What's your best strategy to defend against these kamikaze drone attacks from Russia?
OLEKSII REZNIKOV, UKRAINIAN DEFENSE MINISTER: Every day, we are trying to find the best solutions. They are targeting our infrastructure. They trying
to ruin our energy supply, water supply, heat supply systems, because they cannot to have a success against armed forces of Ukraine. They try to fight
in with the civilian population. That's why they trying to stop the energy or water to the houses, especially during this winter time.
RIPLEY (on camera): Have you been given an explanation why the patriot missile defense systems have not arrived yet?
REZNIKOV: It's a long discussion with our partners because it's a very sophisticated and expensive system. Today we have more than eight different
systems and we got hammers and we have M 270. We have Mars we have LRU from the France.
[09:05:00]
REZNIKOV: So I think that patriot also will be in our battlefield but in the next stage.
(END VIDEOTAPE)
RIPLEY: Interesting that he seems confident that the Patriots will arrive in Ukraine and what he calls the next stage. The stage that will likely
include counter offensives to try to reclaim currently occupied territory by the Russians. One thing though, that they're not getting in this new
round of defense aid.
That was approved by the United States some $275 million in financial aid for the war or cluster munitions warheads. These are really controversial.
The Russians have been using them quite a bit, but they have great potential of hurting civilians because they essentially can drop these tiny
munitions over a very wide area.
And if they don't explode when they hit the ground, they're almost like little mines that people could accidentally walk into. But the Ukrainians
are asking for those what they are getting and the Ukrainian president Volodymyr Zelenskyy, had a phone conversation with the U.S. President Joe
Biden, where he thanked President Biden for this latest $275 million Assistance Package.
It includes ammunition for High Mobility Artillery Rocket systems, 80,155 millimeter artillery rounds, counter unmanned aerial systems, equipment,
and counter air defense capability, ambulances, medical equipment, but 150 generators as well as field equipment. All of it badly needed Julia, but
the number one item on their list, those more advanced missile defense systems to try to stave off these Russian air attacks.
CHATTERLEY: Absolutely an important interview to well, they're at a critical moment for the country. Will Ripley there, thank you. To
Afghanistan now, three attackers have been killed by security forces after a hotel in Kabul came under fire. Emergency Services say 21 people were
taken to hospital.
According to an eyewitness, gunman attacked a Chinese hotel in the Afghanistan area. Smoke was seen rising from the building and blasts and
gunfire were heard. To China now and a top health official is warning the Omicron variant is spreading quickly across the nation. This is Beijing of
course is slowly moving away from its zero COVID policy. Kristie Lu Stout has all the details.
KRISTIE LU STOUT, CNN CORRESPONDENT: Residents across China are bracing for a surging cases as the country and wines from its tough, zero COVID policy.
In Beijing many businesses are closed. Restaurants that are open or deserted and some of the biggest crowds seen have been outside pharmacies
and COVID-19 testing booths.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: It's better to just protect yourselves, cover you and don't let the elderly go out too much that's all.
(END VIDEO CLIP)
STOUT: Residents are wary of an exit wave of a flare up in infection. One factor here is China's low vaccination rate, especially among the elderly
for the most at risk over 80 age group. Only 40 percent have received booster shots as of December 1.
That's according to official data and another factor just not enough medical capacity in China. Look while the U.S. has at least 25 critical
care beds per 100,000 people. That's according to the Organization for Economic Cooperation development. China has fewer than four for the same
number.
Last Wednesday, China dropped most of its strict zero COVID curves following protests against the hardline policy. Mass testing has been
rolled back and some people are allowed to quarantine at home. And today China announced that it will eliminate one of its digital tracks and trace
services. Now other systems so including its health QR code remain in place. China slowly let's go over its tough pandemic policy. One of its top
disease experts is warning of a surge in cases.
In an interview with a state run Xinhua news agency at the weekend, Zhong Nanshan called for an intensified COVID-19 booster drive, especially as
China's Spring Festival travel season nears he says this, "Preparations need to be beefed up. I suggest those planning to travel back home, get a
booster shot.
So that even with COVID 19 infection they don't become seriously ill" a drone that it that Omicron fatality rate is in line with the flu,
effectively downplaying the risks of COVID-19 as restrictions slowly ease across China. Kristie Lu Stout CNN, Hong Kong.
CHATTERLEY: And we're hearing about what could be a leap forward in the quest for the holy grail of clean energy. The Washington Post and Financial
Times reporting that scientists have made a major breakthrough using nuclear fusion with the U.S. Energy Department set to make a big
announcement on Tuesday. Our Chief Climate Correspondent Bill Weir joins us now.
Bill, great to have you on the show I read everything that I could find when I saw this at the weekend and it replicates a process and you could
explain better than me, which takes place in the sun. How excited should we be about this? Can you explain the process and where we are today we think?
BILL WEIR, CNN CHIEF CLIMATE CORRESPONDENT: Sure, well, we can be cautiously optimistic the running joke about this technology is that it's
just a decade away, and always will be.
[09:10:00]
WEIR: But if the news is that they've cracked this where they actually have a process that actually produces more energy than is put in it's a game
changer. Here's the dream they've had this since the 50's if you take hydrogen atoms, and you heat them up as hot as the sun. You contain that
maybe with super strong magnets, that kind of magnets that could lift the battleship.
In this particular instance, Lawrence Livermore Laboratory, they use the biggest laser in the country to fire at this hydrogen plasma and they say
the process did create more energy that they put in. That is sort of the Wright Brothers moment, you know, the first flight, but the data is not
complete.
In fact, that surprised the scientists according to the Financial Times reporting, and it created so much energy, it might have broken some of
their equipment. So that complicates the data gathering going forward now. But again, this all comes down to Jennifer Granholm Secretary of Energy
confirming what they found tomorrow.
CHATTERLEY: OK, so it actually potentially broke the measuring tools, which is vaguely concerning, but we hope is a positive thing, but to your point
about we're just a decade away. I guess we have been saying that to do the quick mental calculation for what, seven decades now?
Can you put any kind of time horizon on this to when we might be able to be using this kind of technology, because I've already seen plenty of skeptics
out there saying, this can't be an excuse? The hopes surrounding this cannot be an excuse for tackling the things that we need to tackle today.
WEIR: That's a fantastic point. Yes, the biggest priority should be de- carbonization stop using the fuels that burn and switching to the fuels that don't like fusion here, which would create no long term nuclear waste
is super cheap, super clean, super safe.
You could it's a star in a box, basically, but you could blow it out like a match. So the dream of this is there, but you've seen in all sectors, Julia
about what happens when there are these breakthroughs, these tipping points and technology.
And there's so much money now pouring into with the inflation Reduction Act here. Other places around the world, they've been building this giant
machine to try this in the south of France for a while Oxford University has. So there's sort of a race towards these new technologies.
Its how soon we get there, you know, depends on so much. But we've seen it so how fast humans can move in the right direction, if properly motivated
and so everybody is anxious. I know people in the scientific community have been buzzing about this possible breakthrough. So we can't wait to find out
tomorrow more details.
Yes, I mean the U.S. Energy Department. We'll hear from them tomorrow, but I have seen billions of dollars flowing into these private startups that
are working on sort of nuclear focused energy and technologies of the future. Can I just ask very briefly, because I'm sure people out there
asking what energy went into creating this? And does it become, in an ideal scenario, a sort of reinforcing cycle where you use the energy produced to
produce more energy? Or is this still perhaps?
WEIR: Yes, it's the process. So the fuel source of this is hydrogen, which is everywhere, and lithium, which isn't hugely abundant. So it's not as
intensive as mining cobalt on the floor, the ocean, for example, in order to do EVs. That the promise of this is that the raw materials are so cheap
and plentiful, that it could be the breakthrough and unlike nuclear fission, which splits those atoms instead of mashing them together.
You don't have to go dig for uranium and plutonium and you know, think about what happens to that loose nuclear material in this facility. So the
whole thing is very promising, ideally, but to your point before, priority one now is decarbonizing. You know, the renewables are so cheap now, but
they're just adding more capacity not really replacing coal and oil at the rate that a lot of scientists say they should, but hugely promising when we
have these breakthrough moments.
CHATTERLEY: Chief Climate Correspondent and scientific genius actually to me - understand. Bill Weir thank you.
WEIR: Thank you.
CHATTERLEY: We'll speak again soon. OK, from a fascinating energy future to a hoped for more revenue booster Elon Musk today re-launching his Twitter
blue paid verification feature after last month's pretty chaotic rollout higher prices, this time for people who've subscribed to Apple. Twitter
hoping users will check the holes this holiday season and bypass the cook complex.
Paul R LA Monica joins me now that's just one of many topics we could be discussing with regards Twitter this week. But let's start with that the
blue check mark here and the 30 percent premium approximately if you do this via iOS and Apple, of course, because he's making the adjustment for
the fact that they charge fees for doing.
PAUL R. LA MONICA, CNN REPORTER: Yes, exactly, Elon Musk has not been shy on Twitter since he bought Twitter about complaining about that iOS tax and
your concerns about Apple supposedly also pulling back on advertising on Twitter so right now Elon Musk does not seem to be too thrilled with Tim
Cook and everyone else in Cupertino.
[09:15:00]
MONICA: So if you are an iOS user looking to become verified through Twitter blue. It will cost you more $11, as you pointed out as opposed to
the standard $8, that is going to still be the price on the web and presumably, through Google Android devices as well obviously, a lot going
on here with Twitter.
And, you know, I think it remains to be seen if the problems that Twitter had when they first announced that anyone could get a blue checkmark, and
you had all these fake accounts impersonating the likes of Eli Lilly, as well as even Elon Musk and Tesla, you know, will that be able to go away
have Twitter's engineers, whoever's left there able to figure this out and stomp out these fake accounts and impersonators?
CHATTERLEY: Yes, they've said a phone number has to back it up now, haven't they? I mean, I've got two numbers attached to my phone. So you have a
margin of error there, but I guess it still ties back to me ultimately.
He also sent a warning about bots this weekend and the action that they're taking on that. They've also talked about revealing some of the information
behind shadow bans that suppress apparently some user's material that they put on the web. The other thing that's caught my attention in the last few
days, Paul, I want to get your take on this is the suggestion from certain quarters and high profile quarters that abusive content is rising on the
platform.
Elon Musk himself has come out and said that's factually incorrect, but I don't see anybody using any data from anywhere. What's the truth here? Do
we have anything factual that we can back up either side's argument with?
MONICA: Yes it is very difficult right now, Julia, because obviously it is highly anecdotal. You have people that are pointing to some of these
abusive tweets Neo-Nazi tweets, allegedly, and Elon Musk obviously saying that no, this is not the case that Twitter is doing a better job under his
ownership of stamping out bots and abuse of accounts. And I think the truth probably lies somewhere in between, as is often the case with things like
this, but it's going to be a continued problem.
I mean, I know that there are definitely many Fortune 500 companies that are weary of Twitter now. And they are not advertising there anymore and
that has been a problem for Elon Musk. But again, what one of the reasons why he's doing the Twitter blue, they're trying to find another revenue
stream to potentially replace advertising because there definitely is a sense correctly or not that Twitter is a far more toxic place under Elon
Musk than it was beforehand.
CHATTERLEY: Yes, advertisers are clearly nervous, but if people are going to make accusations on Twitter or any other platform, that's got to be
backed up with some form of data or otherwise, everybody's just more confused, not less.
MONICA: Yes, and that be fair to Elon Musk. I mean, he can put out as much data as he wants, but there's going to be skepticism about it because
they're no longer a public company. So I think a lot of people take any numbers from him with a grain of salt.
CHATTERLEY: Yes, for better or worse, but don't make accusations without backing it up with data at the end.
MONICA: Yes.
CHATTERLEY: Yes, Paul La Monica, thank you. OK, straight ahead. Greece is the word the country is promoting itself as a go to investment opportunity.
We'll hear why next. Plus, all change at the top of shipping. Giant Maersk, we have the incoming CEO from the challenges that lie ahead. That's all
coming up stay with CNN.
(COMMERCIAL BREAK)
[09:20:00]
CHATTERLEY: Welcome back to "First Move"! Now despite an economic slowdown across much of Europe in Greece, the government is forecasting at 5.6
percent growth in 2022 with a comeback with tourism and strong domestic consumption, both playing their part.
Foreign investors have also taken note with foreign direct investment or FDI flows hitting $5 billion last year yet with an energy crisis raging and
uncertain global picture and an election for Greece on the horizon. The question is can the growth be maintained?
Athens has been flying the flag here in New York, where it's been promoting itself as an investment opportunity. Yianos Kontopoulos is the CEO of ATHEX
Group, the parent company of the Greek Stock Exchange. Yianos, fantastic to have you with us! You're back in Greece now.
We were going to have this conversation last week when you were in New York. So just to let our viewers know this, it's clear, I think that Greece
has been incredibly resilient this year in the face of huge challenges. The big question is what's been your message to potential investors, and to
those outside Greece about what the next 12 months brings?
YIANOS KONTOPOULOS, CEO, ATHEX GROUP: Well look Julia, it's one of those weird global cycles, as you mentioned before, and in these types of
environments, you want to find the idiosyncratic story, and Greece is certainly one. It's coming back out of a very difficult period that lasted
for a long time, but over the last few years, it has been staging that recovery, despite the additional problems that we've had. So the main
message is, this is the time there are plenty of opportunities, and we want to present them to the outside world.
CHATTERLEY: And what questions have you been getting from investors because as much as you can send the message, it's always what they respond with.
That's fascinating to me, as well. So what have been the common questions whether you've been in New York or over in Europe? Because I know you've
also been meeting potential investors and just talking about the Greek story there, too?
KONTOPOULOS: Well, I'll tell you, I'll start with a weird one in the sense that the questions that we didn't get. We had a side meeting in London
about 10 days ago with the Prime Minister with some of the largest international investors. And there were about 20 of them in the room.
None of them asked them in an hour about elections that was the first meeting, but leaving that aside, I think that was interesting. I'm not
saying the question didn't come up, but I was stunned that it didn't come up in that particular meeting.
Then on the other front, I think, what's interesting, what I found interesting is that there were very distinct questions about the source of
funding, in terms of investment sources whether they're coming from Saudi Arabia or China or the U.S. It was those types of questions and the
willingness of the Greek government to consider a specific project. So I think it's not a question of this, it's a question of who?
CHATTERLEY: That's a fascinating point to make. If I sort of had to make a guess, I would say perhaps some concern about potential future Chinese
investment. Can I asked what the response was, and I appreciate you're not a member of the government, and you're not part of the cabinet, but
obviously, you are in charge of the broader group that covers the stock exchanges? Because whether it's an investment in private companies or
public companies there it's an interesting question at this moment in time.
KONTOPOULOS: Look my sense is that the answer that was given in a very pointed question in that particular direction was that. I don't think
there's any particular expectation or particular plan to source these types of funds from China or in particular program in the works. If anything, I
was surprised to say that to see actually that Prime Minister.
I think mentioned that they are some near shoring type of activities, generally available from before Europe that are originated from China, and
that Greece is particularly open to them. So again, maybe the reverse was the interesting aspect here, too.
[09:25:00]
CHATTERLEY: Yes, it's almost what you're not asked versus what the truth is? It's quite fascinating.
KONTOPOULOS: Exactly.
CHATTERLEY: What about in terms of your role as well because I know we saw foreign capital leave and as you said it's interesting even at this point
in time that political stability is seen rather than fear of instability. But when I look at the Athens exchange itself, there's still a significant
weighting in the banks, utilities and energy. And I think perhaps the obvious question for those even looking on an index level is non-performing
loans, which has been an issue in the past.
Is there risk still of action with the banks? So even things that other European countries have been talking about, and in certain cases acted
upon, which is a windfall tax on energy companies? What can you tell me about those concerns?
KONTOPOULOS: Well, again, let me emphasize the almost the opposite surprise here. I mean, I think if we held this event, even last year, we wouldn't be
getting the question about question marks about banks on the level of NPLs instead. We actually got a question about a windfall tax on the banks
forget about the energy companies, which means what that the banks have had an exceptional year.
And so the momentum had been building since 2001. In terms of profitability, they had a very, very successful year and 2022 so far.
Deposits are actually growing still in the system, which you would think that they would be a problem because of the energy shock and how's that
keeping the average consumer in Greece?
Apparently, it hasn't hit the average consumer, or at least the aggregate. So it's for me, it's actually very revealing the fact that the question
came up. By the way that answer was very definitive; it was that there was no consideration for windfall tax rollbacks.
On the other hand, on the energy side, Greece was, if I recall, well, one of the first countries to impose a windfall tax, and then the rest of
Europe actually followed through, but I don't think the message was there was no intention to kind of accentuate there. So I think it's going to
remain steady, as long as there are excess profits from that short. So that the net news there I think, is stability.
CHATTERLEY: Yes, what's there will remain because it's certainly one of the things and the one of the things that I heard simply from the willingness
of the government to take action in the first place. I think one of the other things is building out the representation on the stock exchange and
perhaps new listings or dual listings. What's the prospect for getting fresh listings and companies to come to Greece? Whether it's a primary
listing or even a secondary listing for those that operate internationally? Talk to me about that prospect?
KONTOPOULOS: Sure.
CHATTERLEY: Yes - before you answer. It's a challenge.
KONTOPOULOS: Well, you know, this is my personal talents.
CHATTERLEY: Of course.
KONTOPOULOS: I'm very optimistic primarily because I think we're getting a very good signal first from the government, because they have been
privatizing a lot of assets over time. But they haven't privatized something recently, via the stock exchange, and it appears that they will
be actually privatizing top jewel asset, the Athens International Airport sometime next year, and most likely, we don't know yet for sure, it might
happen via the Athens Stock Exchange.
And it's a large enough items that I think will prompt other companies to follow through. So that's aspect number one. The other one, I think, where,
as you alluded too, is the different type of representation that we want of different sectors of the economy. If you were to look, for example, one
that's unexpected is technology.
The depth of the technological development since the you know the midst of the crisis has been tremendous Greeks have become a lot more
entrepreneurial. I think, as a result of the crisis and a lot of them are the young Greeks which have been putting money and effort into technology.
As a result, we've had a couple of unicorns already coming up and I think there's some of them are slated to come to the stock exchange.
Now if it's a big ticket item, and its technology, you're likely to end up somewhere in the U.S. initially. So we need to be imaginative on how we
attract them back here. And I think the way around it and something that's consistent with our plans is that you are listening Greece and Europe has
to offer actually insurance to those technology companies which are still in the initial stages.
However successful they've so far - you know, have the U.S. audience but at the other hand, have also the Greek and the European audience giving them a
completely different source of funds and navigating through a very, I would say, you know, challenging cycle for technology anyway, but technology is a
big factor and the other one that we aim for shipping.
CHATTERLEY: Yes, which makes perfect sense? I was going to say the dual listing new spike important if you've got a homegrown unicorn. That's
perhaps attracted to the United States because it can get later stage funding that then looks to list if you can encourage them to even do a dual
listing or think about Greece.
It's vitally important for many reasons, I think but also to show some support for the home nation, particularly the business environment is
supportive. Thank you so much for your time today. The one thing we also should talk about in terms the prospect for Greece and it's very clear
behind you is the relative weather I think in Greece.
(CROSSTALK)
CHATTERLEY: Just look at that, there are blue skies behind you. We certainly don't have--
KONTOPOULOS: 17 Degrees.
CHATTERLEY: To be honest great to have you with us.
[09:30:00]
CHATTERLEY: Thank you so much. Come back and talk to us soon.
KONTOPOULOS: Nice talking to you. Thank you.
CHATTERLEY: Yianos Kontopoulos there the CEO of the ATHEX Group. We'll speak again soon. OK, still to come an electric shock EV Maker Rivian
pulling plug on a deal with Mercedes find it why next?
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move"! On Wall Street is up and running this Monday and Tuesday higher opening across the board. Stocks trying to
bounce after last week's losses the worst week in fact for the DOW since early November.
Plenty of challenges for global investors across the coming days including three big central bank interest rate decisions all expected to hike.
Members of the U.S. Federal Reserve will give their projections to for how high rates will rise next year as well it's their so called dot plot.
Fed officials in quiet period ahead of their expected rate hike on Wednesday no quiet period though for Treasury Secretary Janet Yellen she's
out with an optimistic economic outlook for 2023 and she gave that during an interview with CBS 60 minutes.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: 2023 going to look like for the average consumer?
JANET YELLEN, UNITED STATES SECRETARY OF THE TREASURY: So I believe inflation will be lower. I am very hopeful that the labor market will
remain quite healthy so that people can feel good about their finances and their personal economic situation.
UNIDENTIFIED FEMALE: It's been decades since the American consumer has had to deal with inflation like this?
YELLEN: Yes, my hope that it will be short lived.
(END VIDEO CLIP)
CHATTERLEY: The new U.S. consumer price data will be released on Tuesday. Now Electric Vehicle Maker Rivian has scrapped a deal to build vans with
Mercedes worsening market conditions of hurt the American firm whose shares are down 74 percent year-to-date, the two companies say they may still
collaborate in the future.
[09:35:00]
CHATTERLEY: Joining us now is CNN's Anna Stewart. Anna good to have you with us! The CEO has said to us in the past, this is a cash burn business.
And he emphasized that as we've mentioned, the share price is down. On first look, it feels like classic retrenchment, talk to us about this deal
and what's going on?
ANNA STEWART, CNN CORRESPONDENT: Well, this was going to be Rivian's first international expansion. And actually what I find most surprising I think
about the whole story about the deal was only signed three months ago in September, so not long ago at all.
It does suggest market conditions have changed considerably since the summer. Now we can look at the sort of issues that face all of the big car
manufacturers and particularly the EV startups. We have similar stories from Faraday Future from arrival here in the UK in terms of cash burn.
And we know for instance, that Rivian is burning through cash, we know that a lead off 6 percent of its workforce over the summer. And we also know
that they have this year's expected output, citing supply chain disruption. I thought it was really interesting in the statement when they say they're
going to pursue the best risk adjusted returns on their capital investments.
That is just clearly not in Europe right now. They have their plant in Illinois. They're planning to double down with a new plant in Georgia near
Atlanta, Europe right now off the cards. And I think there are other factors that play there as well, Julia.
CHATTERLEY: Yes. And you and I were discussing them earlier. And I think we as usual, completely agree. We had BrightDrop the commercial EV, vehicle
maker on the show last week, and he was talking about how the economics are working for them.
And he mentioned the Inflation Reduction Act and working out the potential demand kicker coming from the subsidy specifically for commercial EV
vehicles. If you tie that into this decision, I think it makes perfect sense. Why would you be in Europe?
STEWART: It is not mentioned in any of the statements today. But it was one of the first things of course we will think when we saw it because that is
one of the major changes since that deal was signed. And not much has happened in terms of the EU trying to rollback in terms of trying to
persuade the U.S. diplomatically I suppose to change things.
There have been calls from some members of the EU's parliament to file a complaint with the WTO, particularly over the subsidies. There are also
calls of course for the EU to simply try and match what the U.S. is doing. But that will be so difficult because in terms of the tax cuts, well,
that's up to individual member states.
In terms of the subsidies the EU currently behaves, according to very strict state subsidy rules that could change. The mute music I have to say
from the EU Commission President Ursula Von Der Leyen has been changing in recent weeks. But hey, this is the EU had to get 27 Member States to agree
on absolutely anything. And as we can see, businesses are moving very fast.
CHATTERLEY: Yes, either you're behind efforts to tackle climate change, or you aren't and you just have to make it work because this is the United
States now really putting their money where their mouth is and then Europe kind a to stand up.
I think. No doubt we'll discuss again, Anna Stewart. Thank you for that. OK, still to come, choppy water ahead perhaps Maersk appoints a new captain
to steer the ship giant through a looming recession. We speak to incoming CEO the incoming CEO next.
(COMMERCIAL BREAK)
[09:40:00]
CHATTERLEY: Welcome back to "First Move"! Danish shipping and logistics giant Maersk has appointed a new CEO to steer the company through a period
of slowing demand. Freight rates around the world have dramatically fallen as supply chain chinks have lessened and amid concerns of course of
economic slowdown mount. It comes as the company continues to strengthen its land based logistics operations.
Joining us now is Vincent Clerc he's Maersk's incoming CEO. Vincent, fantastic to have you with us and congratulations on the new appointment! I
know you've been at Maersk since 97. So you have a little bit of experience of this business. You're also the first non-Dane, I believe in the
country's 118 year history. Explain how this moment feels?
VINCENT CLERC, INCOMING CEO, MAERSK: It feels a bit surreal. Thank you, thank you for having me. It feels a bit surreal. It's been a combination of
I think 25 years of work here in the company, and especially the last few quite exciting years with the strategy and the team that we have here. And
this is still unfolding, and it's still really dawning on me.
CHATTERLEY: I mean you also currently head up the oceans and logistics business. So in terms of internally, I think Maersk know you very well, not
to mention, as you said more than two decades of experience there.
But if you look at the share price reaction today, I think the timing, and the transition perhaps is a little bit of a surprise. Can you explain the
timing decision of this is Soren of course is a regular on the show, and we've still got used to speaking to him? So explain why now?
CLERC: Well, I think that after the last couple of years of supply chain disruption and pandemic shocks to the world, we're entering a new season, a
season where we're faced with some pretty difficult headwinds with a lot of different macroeconomics challenges that we will have to deal with in the
coming years.
And the assessment for the board was that as we enter into these choppy waters, it was important for them to have a team in place that would take a
long time horizon and would really be committed to seeing those challenges through and get us to the other side and continue the execution of the
strategy that we have developed with sign here over the past few years.
CHATTERLEY: He said to us the last time we spoke that he'd be surprised if you're wasn't already in recession, that dark clouds were on the horizon.
And it was a much repeated phrase I think that sent a bit of a shiver around those who operate in the global economy and in whatever form.
Do you see the challenges and the outlook in the same way that he did? And does you coming in as a CEO really changed anything material in terms of
how the company tackles all of those things, whether it is the short term or the medium term?
CLERC: So we're certainly seeing a significant inventory correction in North America and in Europe alike. We're also seeing that this energy
crisis that really was started with the invasion of Ukraine is really taking a bite also off the disposable income that a lot of consumers have,
especially in Europe. And that creates a macroeconomic environment that is quite filled with dark clouds as Soren was mentioning last time, so we're
certainly seeing this.
I think what we can expect with respect to how we're going to deal with it is a real decisive answer to make sure that our cost base is right sized
for the challenge to make sure that the we have focus on protecting the integrity of the service that we deliver to our customers. But also
certainly hunker down on the cost base and make sure that we can see those challenges through in the best possible way.
At the same time also customers have or companies have severe significant challenges still with their supply chain and challenges were Maersk can
play an incredible role in helping them strategically deal with some of these challenges.
That is what this strategy about expanding beyond maritime transport into landside logistics has been about. We have quite a lot of momentum on this.
We have still a lot of potential a lot of legs for that strategy. And we'll also continue to exploit that in the month in the quarters and in the years
to come.
[09:45:00]
CHATTERLEY: Yes, I can see your excitement about that, too, as customers continue to rethink their supply chains. And clearly that plays certainly
into your strength and experience as well.
Just to get back over what you said, because I do think this is important in terms of perhaps resizing or refitting the business for what the at
least the next couple of years perhaps brings. Are we talking about the risk of perhaps job cuts, spending cuts? Or perhaps you will nothing out at
this stage?
CLERC: Yes. So I think I'm going to keep an open mind for a while makes sure that we take all the right decision. I think what is important for me
to underline is Maersk is actually a growth company and has been hiring a lot of colleagues here of late and we expect this growth fueled by the
expansion to the landside logistics to continue.
So this is not about really downsizing the size of the organization, but it's about really managing our productivity and our cost base proactively
and make sure that we do not land in a situation where we have to get into massive layoffs and so on.
At the same time on operational expenditures, there are clearly things that we can do now, as we get out of the congestions that we have had and all
the costs that have accompanied these congestions in the past few years. There are a lot of measures that we can take, and that we need to take
rapidly in order to right size, our cost base to the maximum possible extent.
CHATTERLEY: You also wrote a fantastic Op-Ed for Time Magazine, and I read it I believe in January of this year, and you said look, this is how my
industry can go green. Talk to me about your ambitions for the green energy transition and emission free fuel.
What does the kind of conversation about sot of refitting the spending plans mean for green energy plans for the company? Do you keep them
maintained? Do you plan to accelerate them? Can you give me a sense of where you're headed and where Maersk therefore is headed in the future in
that regard?
CLERC: So the roadmap that we've put forward with a full decarburization by 2040 and the targets that we've put off for 2030 already, that does not
leave a lot of room for further acceleration. But the commitment that we have to this path to decarburization is absolutely the same that we have.
This is a part I think that is important. We have a climate emergency, we have an energy crisis, if anything needed to underline the need that we
have to actually do something about it, and change the how we source our energy?
I think this is the fantastic background. And I do believe actually that even though the beginning of it, getting these first dominoes to fall is
requires a lot of focus and a lot of work on the long run. This will be a fantastic business opportunity for everybody.
Because completely changing where we source energy from is going to drive capital and infrastructure investments for decades. And the companies that
lead in that field, they will have a serious advantage for the long run that they will be able to really capitalize in terms of business
opportunities. And that's certainly what we're positioning AP nonnumeric for.
CHATTERLEY: Yes, there's no shortage of challenges. There's neither no shortage of opportunities too to your point. I have about a minute left.
Final message, I think to investors today perhaps that are cautious about what this means for them, but also perhaps their final message to current
CEO and outgoing CEO, of course, Soren Skou.
CLERC: Now, I think you know, Soren Skou has certainly been the most influential person in my career, I've spent 11 of the last of the 25 years
I spent at Maersk working in his leadership team, learning the ropes and also developing a lot of perspectives on what it takes to be a CEO so
certainly a lot of appreciation for the many years that we have spent together and a lot of excitement for being able to take this fantastic
company to the next level.
CHATTERLEY: Yes, you're enthused and energized, sir great to chat to you and--
CLERC: Absolutely.
CHATTERLEY: --we'll speak again soon. I can see.
CLERC: Thank you.
CHATTERLEY: The incoming CEO there of Maersk Vincent Clerc will speak soon. Thank you. All right, coming up on "First Move" a historic moon mission is
successful splashdown at NASA's Orion Capsule that's next.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move"! And a successful splashdown NASA's Artemis I Mission has come to an end after almost 26 days. It's the
first phase of the Space Agency's new program to send astronauts back to the lunar surface.
And the return of the Orion capsule coincided with the 50th anniversary of the Apollo 17 Moon Landing. Kristin Fisher joins us now! How appropriate
fantastic news so great to see it safely land taught us about how important this is for the next mission because this the key?
KRISTIN FISHER, CNN SPACE AND DEFENSE CORRESPONDENT: Absolutely critical Julia. I mean, this final test, the splashdown, what it was really all
about was testing that heat shield that lines the bottom of the Orion Spacecraft.
And that heat shield that's going to protect future astronauts onboard the spacecraft from those - that spacecraft experiences on reentry. We're
talking 5000 Degrees Fahrenheit, that's half the surface of the Sun twice as hot as what any other human rated spacecraft or spacecraft designed to
carry humans have had to endure on reentry.
And so right now engineers, scientists going over that data, making sure the heat shield did in fact work. But hey, if it didn't work, we would have
seen it Julia that spacecraft would have burned up on reentry. By all accounts NASA feeling very good about this very confident after so many
delays? Remember, this rocket got hit by a hurricane just five days before lifting off.
After all those delays NASA really celebrating a successful splashdown in the Pacific Ocean you can see the Orion Capsule bobbing right there
yesterday afternoon. And now it's going to be making its way back to the Kennedy Space Center for some final test, Julia.
CHATTERLEY: Yes, it's quite interesting to get a sense of the scale of it now as well when you see that boat next to it. I was just trying to look
through the window to see if we could see that Snoopy plush toy as well, because of course that was the key passenger there.
And also, just 10 hours later, we saw SpaceX launch a Japanese Moon Lander. Can you tell me what that was about too because it does feel like we're
sending things up into the skies and low Earth orbit in particular, on a continual basis.
FISHER: It's this whole new era of space exploration; we've been so focused on low Earth orbit the orbit right around the moon for so many years,
decades, even. Now, and we're really starting to see the very beginning of this, what they call the Cislunar Economy. This is a lunar economy. We're
not there yet. It's still a ways off.
But this launch that you're seeing right there have an "Ispace Lunar Lander" on top of a SpaceX Rocket really kind of marks in a way the
beginning of this next chapter. And if Ispace this Japanese company, Tokyo based is successful. What it means is they will become the first private
company to land on the moon.
I mean, this is something that only governments', countries, very big and powerful countries have been able to do up until this point. So this would
really mark a turning point for them. And you know, really just also kind of shows you how much more focus time and attention is going to be placed
on the moon in the coming years.
You now have NASA and its international partners there with Artemis, hopefully building a base on the south pole of the moon. Julia, you've also
got China who has almost identical lunar ambitions they want to build a base also on the south pole of the moon. And then you have these private
companies like Ispace entering the mix too so a lot going to be happening there over the next few years and certainly the decades.
[09:55:00]
CHATTERLEY: Voluntary a space race and you really do bring it to life so thank you so much for joining us on the show to explain it all today
Kristin Fisher there.
FISHER: Thanks Julia.
CHATTERLEY: Thank you. And finally, to mark their first Christmas as King and Queen Consort Buckingham Palace has released this image of Charles and
Camilla's official Christmas card. And the photograph is particularly poignant. It was taken at the Bremer Highland Games back in September, just
five days before Queen Elizabeth passed away.
She wasn't there, of course, but certainly there I think in spirit. And that's it for the show. If you've missed any of our interviews, today,
there will be on my Twitter and Instagram pages you could search for @jchatterleycnn, and "Connect the World" is up next. I'll see you tomorrow.
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[10:00:00]
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