Return to Transcripts main page
First Move with Julia Chatterley
U.S.: Russia Won't Dictate Military Aid to Ukraine; Father of Missing U.S. College Student says Son is Alive; Elon Musk Suspends Twitter Accounts of Prominent Journalists; Violent Protests Across Country after Ex-President's Arrest; 175,000 Plus Pod Point Charging Points Installed in UK; FIFA Denies Zelenskyy's Request to Speak at Finals. Aired 9-10a ET
Aired December 16, 2022 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RAHEL SOLOMON, CNN CORRESPONDENT, FIRST MOVE: A warm welcome to "First Move", I'm Rahel Solomon in for Julia Chatterley. And coming up on today's
show a fresh wave of Russian airstrikes have targeted cities across Ukraine, killing at least two people and further damaging infrastructure.
And strategic Russian bombers reportedly used for the first time since the start of the war, a report from Kyiv just ahead. Beijing meantime is
reporting its first COVID depths as the easing of virus restrictions. The unofficial death toll though set to be much higher as COVID cases surge
Also Elon Musk is suspending the Twitter accounts of a number of journalists, accusing them of violating privacy rules and endangering the
safety of his family, the move raising new fears of free speech on the platform. And the ongoing global stock markets sell-off a top story as
U.S. futures pretty much pointing to further losses on Wall Street across the board after the worst day for stocks and well over a month, with all of
the major averages falling by over 2 percent. Europe currently lowers as well after weak Asian handover. Investors still rattled by the hawkish tone
from global central bankers after this week's rate hikes, after concern that their fight against inflation will tip economies into recession.
Professor Jeremy Siegel of the Wharton School of Business joins us later with his outlook on where Wall Street and rates are headed, but first,
dozens of Russian airstrikes pummeling Ukraine this morning targeting yet again, energy infrastructure.
(BEGIN VIDEO CLIP)
UNIDENTIFED MALE: Air raid alert. Everyone please go to the nearest shelter. Stay in the shelter until the threat ends. The police of Kyiv
region take care of your safety.
(END VIDEO CLIP)
SOLOMON: Air raid sirens rang out across the country and what Kyiv is calling one of the biggest missile attacks there since the start of the
war. The capital, the northern central and southern regions all hit. The mayor of Kharkiv describing the damage there as "Colossal", saying there is
no electricity heat or water.
Ukraine says somebody six missiles have been launched. An Air Force spokesman says that for the first time Russia use strategic bombers. And as
critical infrastructure is targeted, Ukraine state energy provider says an emergency mode has been activated. CNN's Will Ripley has more from Kyiv.
WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: The Kyiv City military administration says the Ukrainian capital has survived one of the most
massive missile attacks. Since the beginning of the full scale invasion, I'm standing in a square where you can see is destroyed vehicles from the
beginning of the war. We actually can't take you to the scene of these attacks.
Because the targets were critical infrastructure and Ukraine has very strict rules about filming and showing these locations. They don't want to
tip off the Russians to what areas they might have hit and what areas they might have missed. But in this case, Kyiv says that most of the missiles
never reached their targets because they say at around 40 missiles that Russia fired directly at Kyiv which is a huge number, even for locals
who've been living here throughout this full scale war for nearly 10 months now.
They say they shot down 37 of them. There were however three explosions reported here in Kyiv both on the east and west banks of the river, two of
them in the East one in the West. There are reports across Ukraine of entire cities plunged into darkness as a result of these attacks, which
didn't just hit here in Kyiv, they also hit to the south in Odessa and to the north in Sumi and Kharkiv.
But here in the capital, there were tens of thousands of people sheltering in place, hiding an underground subway stations waiting for an all-clear
and there were sounds of explosions. We actually heard that this morning, as we were getting ready to pack up and go on a road trip, the air raid
sirens went off, and there were some loud explosions that could be heard in our vicinity.
CNN staff who lived even closer to the scenes of the explosion said they also heard the sound of the air defense systems being activated shooting
down presumably those dozens of missiles that were headed towards the Ukrainian Capital. The number of dead and injured, of course, those reports
are always fluid. But as of now we know at least two people killed.
At least five people injured including children. And UNICEF just days ago warned that these ongoing Russian attacks this constant bombardment of the
civilian power infrastructure is putting the physical and mental health of nearly every single child here in Ukraine at desperate risk. Will Ripley,
CNN, Kyiv, Ukraine.
SOLOMON: And a U.S. announcement on whether it will send Patriot missiles to Ukraine is expected at any time. It comes amid those escalating Russian
strikes on civilian infrastructure. The Pentagon says that the Kremlin does not have a say in the matter and will not dictate what security assistance
the U.S. provides to Ukraine.
CNN's Barbara Starr joins me live now at the Pentagon, Barbara, wonderful to have you. So do we expect the president to sign this I mean, what
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, that's what everyone is waiting for, the package moving its way through the bureaucracy and we do
expect to hear something in the coming days about the real possibility of Patriot missile defense systems being shipped being transferred to Ukraine.
STARR: This could be a very significant step, because it will give the Ukrainians the ability to have these Patriot radars lock on to incoming
Russian missiles and the Patriot missiles then to launch an attack those Russian incoming projectiles at a significant altitude and distance from
So it provides this sort of air defense shield, if you will, to protect civilian population to energy, infrastructure, all the things that the
Russians have really been hitting with, with devastation. So a lot of interest in getting that moving, they will have to train Ukrainian forces
on it. So that will take some time.
And those Ukrainian forces likely to have to travel to Germany to get that training. In Germany, U.S. forces are stepping up their overall training,
pardon me of Ukrainian forces. They're going to up it to about 500 troops a month being trained by the U.S. and Germany, you know, trying to get them
really in shape for the winter, to be able to move in a much more organized fashion, to be able to operate more complex weapon systems, really moving
now into this longer term commitment for the support for Ukraine Rahel.
SOLOMON: Barbara, you explain well, there sort of why these systems would be so significant for Ukraine, especially at this stage in the war. Can you
explain a bit more though, about how significant the training would be, as I understand it, these are very sophisticated complex systems and typically
take months of training? I mean, walk me through a bit more of that.
STARR: Well, not just the patriot but other systems as well. What they want to do is help the Ukrainians learning how to basically shoot and maneuver
on the battlefield as a unit. Now the Ukrainians have really proven over the months, their capabilities at attacking the Russians, and they've been
But with winter setting them and this now really apparently settling in for a much longer term proposition, a much longer term war The feeling is
they've got to get the Ukrainians trained up for those more sophisticated, more coordinated maneuvers. It will give them extra punch on the
battlefield and make them the U.S. hopes even more successful, Rahel.
SOLOMON: Barbara Starr at the Pentagon, thank you. In Seoul, South Korea, meantime and emotional memorial service held on the 49th day since that
deadly crowd crush on Halloween. Today marks the final day of mourning in Buddhist tradition. Nearly 160 people lost their lives in the tragedy.
Paula Hancocks reports from Seoul.
PAULA HANCOCKS, CNN CORRESPONDENT: Some of the bereaved families here in Seoul's Itaewon district, it's the first time that they have come to the
site of the Halloween crime crash that took the lives of more than 150 people. There is an emotional Memorial this Friday evening. They're
currently reading out every name of the victims.
Bereaved families are here, some of the friends, some of the survivors also, some first responders who were on the scene, trying to save lives.
There is a sense of national trauma when it comes to this tragedy, some of the general public stopping also to pay their respects to those who lost
HANCOCKS (voice over): A painful look at the last hours of their daughter's life. Oh Il-Seok and Kim Eun-Mi look through photos on her phone trying to
piece together how Ji-Min became one of the 158 victims of Seoul's Halloween crowd crush.
KIM EUN-MI, MOTHER OF ITAEWON CRUSH VICTIM: I can't look at the photos they make me cry.
HANCOCKS (voice over): The 25 year old was photographed at 9.35 pm inside a bar than outside in the increasingly crowded back streets of Itaewon. 9. 59
pm her father says she messaged friends to say she was going home 10.07 pm the last photo Ji-min took with her friend.
Her friend who survived says a few minutes later, the slow moving crowd suddenly moved faster, sucking them into the alleyway. Her parents and
older brother made frantic phone calls to hospitals and police. One o'clock the following afternoon, they were asked to come and identify their
daughter's body at a hospital morgue.
OH ILL-SEOK, FATHER OF ITAEWON CRUSH VICTIM: That image of her keeps coming to me so I can't sleep at night.
EUN-MI: It snowed yesterday and got cold. Ji-min is buried outside, it makes me sadder.
HANCOCKS (voice over): Grief is becoming clouded with unanswered questions and anger.
ILL-SEOK: I hope the truth will be revealed soon. We don't know how my daughter died and how our body ended up there.
HANCOCKS (voice over): A special investigation is ongoing. Call Logs show the first emergency calls for crowd control came in about four hours before
the tragedy. So far two police officers have been dismissed and arrested accused of destroying evidence. The chief of police in the area has been
One police officer who wants to conceal his identity for fear of retribution for speaking out says he arrived to see a pile of people in the
UNIDENTIFIED MALE: We couldn't pull people out from the bottom there was too much pressure, I assume they had already died. People in the second and
third layers were fading crying out for help, but we couldn't pull them out.
HANCOCKS (voice over): He says it was already too late when he arrived and safety planning should have been made in advance.
UNIDENTIFIED MALE: The problem with this now is that the people who should really be responsible are not taking responsibility. The direction of the
investigation is now looking up only down. There may have been mistakes trying to save just one more life, but if you blame us who would want to do
HANCOCKS (voice over): Political infighting and finger pointing has no place in the home when Ji-min grew up, her parents read every birthday card
pour over every photo, struggling to cope with a life changing tragedy that should never have happened.
HANCOCKS: And makeshift memorial started just the day after this tragedy happened. People are leaving flowers and messages just outside the subway
exit that has continued to this day a month and a half later. And it is also now in the alleyway itself where many lost their lives, posted notes
stuck to the walls with messages of condolences. Paula Hancocks, CNN, Seoul.
SOLOMON: Meanwhile, across the border experts say that North Korea could be taking its ballistic missile technology to the next level. State media say
leader Kim Jong-Un attended a test of a new solid fuel rocket engine on Thursday. The test was reported as a success, which Western experts said
could be significant.
Pyongyang has so far been using only liquid fueled rocket engines, but missiles propelled with solid fuel. Well, that's easier to launch and give
opponents less time to react. Experts say North Korea would still be a number of steps away from using those engines and its ballistic missiles.
As record high COVID-19 cases weep across China, a prominent Chinese doctor appears to be downplaying the crisis. And an online speech to university
students on Thursday, the doctor said that the Omicron variant should be renamed the Coronavirus Cold.
My job is with the government's recent efforts to try to play down the severity of the epidemic. China is easing COVID restrictions following
unprecedented protests against the zero COVID policy. CNN's Selina Wang reports.
SELINA WANG, CNN CORRESPONDENT: As COVID rapidly spreads throughout China, the Chinese government spin is that everything is fine that China's COVID
policy was a success and is still a success. Propaganda has taken a complete U-turn from declaring an all-out people's war on COVID to suddenly
now telling people your health is in your own hands.
There are a lot of state media headlines like this. In the People's Daily the headline reads start by wearing a mask and be the first person
responsible for your own health. In - the headline reads in the fight against the epidemic everyone is the first person responsible for their own
Other articles are praising the last three years of zero COVID and hailing this pivot as an achievement, including this commentary from the People's
Daily that has gone viral. The key lines are "the virus has weakened, but we have become stronger".
Chairman Xi's insightful judgment scientific and firm decision shows his reliability as a people's leader. It pointed out and provided crucial
guidance for us to win this people's battle, total battle and precise battle against COVID. A lot of people online they're furious over that
Some are calling it a lie that completely ignores the devastating impact of zero COVID over the last three years, the trauma and pain that people faced
during lockdowns, no apology or no admitting that the government has ever made a mistake. State media has instead focused on how the government is
The government said it will train volunteers and retired health workers to boost manpower; the government is increasing the number of fever clinics.
This social media video shows people waiting inside of Beijing stadium that's been converted into a makeshift fever clinic. You can see some lines
forming and people waiting on benches.
We're already seeing hospitals under strain here in the capital. But the really big concern is what happens when people go back home for the
upcoming Chinese New Year. And COVID starts to spread more rapidly in the rural parts of China with weaker health infrastructure. Selina Wang, CNN,
SOLOMON: And France meantime, a fire near the city of Lyon has claimed the lives of 10 people many of the victim's children. Five of the victims were
between the ages of three and 15, four people are critically ill in the hospital. According to French media flames broke out in the eight storey
apartment building quickly engulfing the top three floors.
Investigators have not ruled anything out, including arson. Meanwhile, the father of a U.S. college student who has been missing in France for more
than two weeks says his son is alive. Kenny DeLand Jr. disappeared in late November while studying at a university in the city of Grenoble.
He was later seen at a store about an hour away before vanishing without a trace. Let's go right to CNN's Melissa Bell who is live for us in Paris. So
Melissa, what do we know?
MELISSA BELL, CNN PARIS CORRESPONDENT: Well for the time being very little about why he vanished or what happened to him in the 17 days between the
last time his father Ken DeLand Sr. and I spoke to him on the 27th of November.
BELL: And this morning when finally he was able to speak to his son and understand that he was alive. Now, we don't know what happened to him. In
the meantime, all we know from the prosecutors that Kenny DeLand Jr., is in fact now in Spain.
Now we'd been down to Grenoble on Wednesday to try and speak to his host mother to some of his friends as the mystery continued to deepen about what
had happened. And what they'd all said is that they believed it was still possible that he might turn up before his flight back to the U.S, which is
But clearly, Rahel as everyday past, it seemed less and less likely. As you say the last time he was actually physically seen was that CCTV footage
from the third of December, so a mystery as to where he's been and why he didn't give any news to his family, but huge relief, of course, for Ken
DeLand Sr. and the entire family, Rahel.
SOLOMON: Absolutely huge relief, but as you point out, Melissa, still so many questions. Do we have any sense of physically how he's doing? Is he
OK? I mean, have we gotten any sense of his condition?
BELL: No, not for the time being. In fact, our producer here, Saskya Vandoorne happened to be on the phone with Ken DeLand Sr. when he got the
news at last after all those days, just before he'd been crying, it had been so long he wasn't sleeping, speaking of his growing despair, about
what might happen when he finally got a text.
And we know now he's spoken to him. But for the time being, we don't know anything about the physical state that he's in the mental state that he's
in or indeed what happened in that period between that last phone conversation and the one his father has managed to have with him at last
SOLOMON: But relief that lasts that he is alive and seemingly well. Melissa Bell, thank you. Well, straight ahead, suspended from Twitter, the
journalist locked out amid unfounded claims by Elon Musk. And delivering a boost to the electric car industry, the CEO of PowerPoint tells me what's
needed to get charging infrastructure up to speed. We'll be right back.
SOLOMON: Welcome back to "First Move". World Cup final action is taking place in Qatar this weekend, but far from world class performance across
global stock markets right across the screen there. Wall Street on track for a third day of losses after Thursday's two and a half percent tumble
rate hikes and recession fears ruining the usual end of the year cheer.
Now at least one U.S. Stock is soaring that would be space satellite for Mac's are reaching for the stars literally. It is up more than 100 percent
pre market after being bought out by private equity firm Advent up 121 percent or 51 bucks a share, not bad.
SOLOMON: Also some encouraging news for a number of U.S. listed Chinese stocks. U.S. regulators have gained full access to the audits of companies
like Alibaba and jd.com, lifting the threat of their Wall Street de- listing.
Twitter meantime could be hit with sanctions after suspending several prominent journalists. European Commission today, warning that it stands
ready to take action over the platform's worrying suspension of reporters, saying Elon Musk should be aware that the law requires respect of media
He Elon Musk falsely accused those suspended Thursday of sharing his live location and giving out what he called assassination coordinates. One of
those journalists is CNN's Donie O'Sullivan, who did not share the billionaire's real time whereabouts, but did recently write about another
social media account that tracked Musk's private plane.
Let's bring in CNN Senior Media Reporter Oliver Darcy, Oliver, great to have you. So I mean, where do we start me? What is Elon Musk saying about
this because it's certainly caused quite a bit of attention?
OLIVER DARCY, CNN SENIOR MEDIA REPORTER: Yes, there's a lot to unpack here. But I think the big picture here is that this has really exposed Elon Musk
and his so-called commitment to free speech. You remember, when Elon Musk took over this platform, he really said that he wanted to be a free speech
absolutist, someone who was going to allow basically anything to go on the platform as long as it fell within the bounds of the law.
And you're seeing now that's not necessarily the case. He's banned a number of high profile journalists who cover him from top news organizations, the
New York Times, The Washington Post and as you mentioned, CNN. And I think it's really kind of exposed the facade that Musk had that he's, you know,
cares about free speech.
I think he, he really is being exposed as someone who's rather thin skinned and willing to censor free speech, if it bothers him. And this raises a
number of questions about the future of free speech on the platform. Of course, Twitter is a private company, Twitter can do whatever it wants and
musk owns Twitter, so he can do as he wishes.
But you know, it has for a long time been a sort of digital town square. And if he's going to now start censoring journalists who are critical of
him on the platform, I think that's going to change the dynamics quite a bit. And it's also going to call in a question whether news organizations
are going to still want to remain on this platform.
Are outlets going to continue to put their contents on Twitter to allow their journalists to report on Twitter, knowing that Musk might just ban
them at any given moment? CNN in its statement, reacting to this said it will re-evaluate its relationship with Twitter based on its response, the
response it gets from Musk over Donie O'Sullivan's ban.
And finally, I'd point out this also raises a number of questions for advertisers do companies like Amazon, Apple, do they want to be associated
with a platform that's now in the business of censoring the press? We'll see.
SOLOMON: It's a great point, Oliver. I mean, just these concerns about free speech, just these concerns about some of the vitriol we have seen,
seemingly pick up since Elon Musk took over Twitter. I also wonder, though, about the actual operations of Twitter in terms of are people still using
the site is usage, is this working because you could argue that all of this fuss is creating a lot of attention for Twitter? I mean, is it actually
translating to higher usage?
DARCY: It definitely is. I mean, there have been third party firms that have come in and they've analyzed the data. And yes, there are more people
using Twitter these days under Elon Musk. Now the usage that doesn't necessarily translate into them, tweeting and engaging with others is just
that they're logging on wanting to see probably the fire the car crash. I mean, that's what this has really become.
And I think Musk knows that the more he does these sorts of things, the more interest he's generating, we're covering it on television, which is
probably generating more interest. And so yes, to some extent, these antics from Musk have driven usage up again.
It's no use to him as a business practice, if advertisers are no longer comfortable on the platform, and he's certainly not doing anything to get
advertisers to be interested in coming back and spending their ad dollars on Twitter.
SOLOMON: It's a fair point. And I guess, to that end, Oliver, I would ask I mean, at what point do you think Elon Musk rethink some of these
unconventional strategies? I mean, would it take big advertisers leaving Twitter or news organizations like CNN saying you know what, we don't need
it. I mean, what do you think?
DARCY: Yes, I think I mean, a lot of times when stuff like this happens, companies put out statements right and they'll evaluate the situation and
nothing ends up happening. And I think as long as that's the case, as long as he's able to get away with these sorts of things these stunts, he will
DARCY: But if you see large news organizations, pull back from Twitter celebrities pull back from Twitter, advertisers pull back from Twitter. I
think if there's a cascade of events like that, you could see him, you know, start to panic and worry that what he is doing is actually completely
destroying Twitter and the business.
But right now, as of this moment, we haven't seen that. And so I wouldn't be surprised if he continues behaving like this, given that he's not really
facing too many consequences.
SOLOMON: It's a great point, Oliver. And in some ways, maybe you could argue all of these stunts, as you put it are driving usage and driving
eyeballs, and maybe it's something that people don't want to see, but you can't look away. Oliver Darcy we'll see, thank you.
DARCY: Thank you.
SOLOMON: And we'll have more "First Move" after the break.
SOLOMON: Welcome back. In South Africa President Cyril Ramaphosa is expected to remain leader of his party, the ANC. Delegates are meeting in
Johannesburg over the next few days to pick their next leader. This comes just days after Mr. Ramaphosa avoided impeachment proceedings.
Now regardless of who runs the party or its president, they will have to face their citizens concerns that the government is not providing basic
services. These are live pictures now of Mr. Ramaphosa there. Now corruption and mismanagement had plagued many African nations for decades
and following billions and new investments to the region won't be easy.
In South Africa, where the president, as we said has been embroiled in scandal, many important public services are not handled by the government,
but by charities or private firms as David McKenzie reports.
DAVID MCKENZIE, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): You likely saw the viral video from South Africa. Attacks like this happen here
all the time.
WAHL BARTMANN, CEO, FIDELITY SERVICES GROUP: So basically what do we do? Yes, we do live vehicle tracking and monitoring.
MCKENZIE (voice over): Some of the best protected vehicles and cash depots are tracked real time at Fidelity's nerve center in Johannesburg.
MCKENZIE (on camera): Are you step behind or step ahead right now?
BARTMANN: We try and be one jump ahead of crime. But we know that they are very creative and well organized. So we're looking at the training we're
looking at technology.
UNIDENTIFIED MALE: But we got to hijacking one of our clients was hijacking Bologna on the Eastern end, and he's getting his updating and David --.
UNIDENTIFIED MALE: Bravo foods, Bravo 08, Bravo Juliet Papa.
MCKENZIE (on camera): The detention unit has come here to the East of Johannesburg. This location was the last spot that a signal came out of a
vehicle that they think was hijacked. This search ends without a win.
MCKENZIE (on camera): Is it frustrating when you see this has been thrown out?
UNIDENTIFIED MALE: A lot?
MCKENZIE (on camera): Why?
UNIDENTIFIED MALE: They get away with too much.
MCKENZIE (on camera): Yes.
UNIDENTIFIED MALE: Yes.
MCKENZIE (voice over): Active private security officers here outnumber the police roughly five to one.
MCKENZIE (on camera): Shouldn't the government begin this?
BARTMANN: Well, that's why the industry is so big, because I don't think government is getting to all of it.
MCKENZIE (voice over): All of this goes beyond security. On the streets of Joburg, private companies have to sponsor the pothole patrol. When a fire
gutted one of Africa's most important public hospitals, well known charity gift of the givers stepped in. South Africans frequently joke that its
founder should run the country.
MCKENZIE (on camera): The Fire Service safety, security, construction water all of this is being handled by private individuals or charities. What does
that tell you?
IMTIAZ SOOLIMAN, FOUNDER, GIFT OF THE GIVERS: That the message is very strong and clear. The country has lost faith in the government. That's the
reality and at the same time, the country has lost a lot of hope.
VINCENT NDOU, DIEPSLOOT RESIDENT (ph): Every time when I look at my kids, especially in this moment, and they see that I can provide them with most
of the thing which they need, especially when it comes now to Christmas time.
MCKENZIE (voice over): Hope is in short supply for Vincent Ndou, who lost his construction job during COVID and says his wife left him.
NDOU: Yes, the survival of the fittest, to be honest. It's not glad I can say it's easy.
MCKENZIE (voice over): In Diepsloot informal settlement, the sewerage water runs through the streets. The electricity is more off than on. Vincent
tried to set up citizen patrols, but they ran out of funds. He says the police come late if they come at all. The government says it's working to
improve services and billions depend on its social grant program. But rampant corruption and mismanagement hampered these efforts.
NDOU: At the end of the day, it is our country and I said very clearly, the country does not belong to the government. It belongs to the people of
SOOLIMAN: So we can either sit and moan and cry knowing nothing can be done, or what didn't ourselves we can do something and fix it wherever we
MCKENZIE (voice over): The cruel reality in the world's most unequal society, the rich can afford to secure their lives. The poor are on their
own. David McKenzie, CNN, Johannesburg.
SOLOMON: And Peru, meantime, Peru's Supreme court has ordered Former President Pedro Castillo to remain behind bars for the next 18 months over
concerns that he may try to flee the country.
Violent protests by Castillo's supporters have erupted ever since he was arrested last week. A state of emergency has been declared but the unrest
continues to spread. CNN Raphael Romo has the latest.
RAPHAEL ROMO, CNN CORRESPONDENT: As it has been the case for more than a week in Peru, police once again clashed with protesters. This violent
protest in Cusco mirrors what has happened across the South American country, including in Lima the capital.
Defense Minister Alberto Otarola declared a state of emergency Wednesday that will be in effect for 30 days. He said the National Police and armed
forces are responding to acts of vandalism, violence and seizure of roads. Peru's National Police have said earlier that highway seen at least four
regions across the country had been blocked by protesters demanding the immediate return to power of Former President Pedro Castillo.
As you may remember, Castillo was impeached and arrested on December 7, after he announced plans to dissolve Congress and install an emergency
government. He was apparently trying to get ahead of a congressional vote on his impeachment. Castillo's accused of conspiracy and rebellion. He
denies those allegations.
ROMO: Dina Boluarte, who was the U.S. Vice President and succeeded him after his impeachment said Wednesday that it is technically possible to
call for new elections by the end of next year. Even though Peruvians are not scheduled to go to the polls until 2026 National Police were deployed
to Lima's International Airport which according to a spokeswoman is operating normally.
However, some regional airports remain closed. This means that many international tourists are stuck without a connecting flight to the Capitol
and must they improve for now, train service between Machu Picchu and Cusco was disrupted due to deadly protests leaving dozens of tourists stranded at
the Inca citadel. A political crisis has gripped the roof for years. Boluarte who took over after the ousting of federal Castillo is Peru's
sixth President in less than five years, Rafael Romo, CNN Atlanta.
SOLOMON: And turning again to markets, U.S. stocks are up and running for the final session of the week. We are about six minutes into the session.
So lower open across the board after Thursday's steep drop, the Dow in fact suffering its worst one-day loss in September in the previous session.
Retail stocks one of the worst performing sectors after new data showed inflation where consumers really pulling back on spending. And as we head
into the last two weeks of the trading year, the S&P 500, now down almost 20 percent year to date the tech heavy NASDAQ off more than 30 percent.
Money on Wall Street worried that both the S&P and the NASDAQ will soon be retesting their 52 week lows let's get some analysis now with Jeremy
Siegel. He is a Professor at the Wharton Business School at the University of Pennsylvania and my hometown of Philadelphia. Professor, it's great to
have you on the program.
I followed your work for quite some time now. So I mean, is the Fed getting this wrong? Again, I mean, first they were wrong in terms of inflation
being transitory, but are they wrong in terms of now doing too much?
JEREMY SIEGAL, WHARTON PROFESSOR: Absolutely, and that's my feeling. They were way too loose early, let inflation get out of hand and then it's like
they got religion, oh, my God. Now they see inflation everywhere. When I think if you really look hard at the data, inflation has gone down
dramatically, and is going to continue to go down dramatically. Their dot plot, which is their projections of where their interest rate and their
monetary policy is going to be next year is, in my opinion, far too tight, and greatly increases the risk of recession in 2023.
SOLOMON: Professor, to your point, we certainly have gotten a few inflation reports that came in certainly lighter than expected encouraging reports,
as Powell said, but is it too soon to declare victory on inflation? I mean, how will my push back and say there is a real fear that inflation could
rise again and now perhaps we're dealing with in trenched inflation? I mean, what do you say to that?
SIEGAL: Well, entrenched installation requires, first of all, a big rise in inflationary expectations, which has not happened, the housing sector is
going down. And as I have pointed out, in the official statistic, it's very lagged in its calculation of housing inflation. So in their official
statistics, you still see house prices going up.
But in on the ground data and indexes that we follow, we see housing prices going down. Actually, Powell did admit that was going to be the case and we
were going to see that in the middle of the year. But I think it's wrong to wait to the middle of the year when recessionary forces could build far too
great and their pivot to an easier monetary policy might be too late to save the economy from a recession.
SOLOMON: It's such an interesting point, Professor, because I think we talk a lot about the lag of monetary policy and terms of thinking about when do
these rate hikes actually start to cool demand and cool inflation. But it works the opposite way too, right? I mean, in terms of rate cuts and sort
of stimulating demand that takes time to and I think that's what you're getting at that it might be too late for the Fed to really prevent
unnecessary damage if they wait too long because of the lag.
SIEGAL: Yes, absolutely. I mean, controlling the economy is not like steering a car. When you turn the wheel, the car immediately goes, no, it
takes a long time for it to move. And in fact, Powell himself talks as if, yes, monetary policy works with long and variable lags.
And then on the other hand, he said we have to see inflation really come down, you know, convincingly using year over year data, which contains a
lot of past data, not forward looking data, in terms of justifying an even tighter monetary policy. In fact, he himself admitted that perhaps up to
two-thirds of the effect of the tightening that we've seen since March has not yet been felt.
SIEGAL: But that even one-third has pushed the housing market down, commodity prices down gasoline prices down, cargo rate shipping rates down,
goods rates down. The only thing that is not going down right now is wages. I think he's overly concerned, a lot of workers are just in catch up mode,
they have fallen behind inflation. I think it's wrong for Powell to target workers and say we're going to prevent or we're going to set up the economy
so that you cannot recoup those inflationary losses. So I think that is not the right way to look at his last justification for keeping policy as tight
as it is.
SOLOMON: Well, let's stay there, Professor, right, this idea about wages, still wages and services still driving inflation, because, you know,
there's a lot of debate now and a lot of concern that maybe we're seeing structural changes in the labor market, and maybe there are millions of
people who won't come back to the labor force.
And so what to do about that, because doesn't that increase pressure on wages if suddenly we have less workers and so really high demand?
SIEGAL: Yes, you're absolutely right. In fact, Powell mentioned explicitly, that he felt there was a structural change in the work force. The reduction
in the number of workers and economics 101 will tell you if there's going to be a reduction in workers, then you have to raise their wages in order
to induce them into jobs. That's a supply effect. That's a structural effect.
It is not something that the Federal Reserve, in my opinion, should try to suppress. Remember, just last year, when Chairman Powell thought that those
inflationary forces were due to temporary supply factors. He said, we you know, we're not going to act against them.
Well, they weren't supply factors, they were a result of too much stimulus that we had. Well, the structural shifts that you just mentioned are a
supply factor, a real supply factor, and it is not the job of the Central Bank to work against those supply factors. So I really see no justification
for the extreme hawkishness of the Federal Reserve.
SOLOMON: It's an interesting point. I mean, if you argue that you can only impact the demand side on the good side, I guess you can argue that you can
impact the supply side on the labor side. Jeremy Siegel, Professor of Wharton amazing to have you, thank you. Appreciate your insights.
SIEGAL: Thanks for having me.
SOLOMON: I'm coming up on "First Move", Smart EV charging solutions, the CEO of Pod Point, that's next.
SOLOMON: Welcome back to "First Move" and meet Pod Point. It's a major provider of EV charging stations in the U.K., and solid charging units at
homes, businesses and workplaces. The company has installed more than 175,000 charging points across the country so far, but the ongoing e EV
production delay is also causing some challenges for the market. Joining me now is pod point CEO Erik Fairbairn. Eric, great to have you, thank you.
ERIK FAIRBAIRN, CEO, POD POINT: Good morning, great to be here.
SOLOMON: So let's start there. I mean, how significant are these production delays? Let's say I wanted to order an EV vehicle today. I mean, how soon
before I get it?
FAIRBAIRN: Yes, quite significant is the answer. So anywhere typically between 12 to 18-month delay from order of the vehicle to delivery and of
course, that's not normal. If we didn't have the global supply chain crisis, you'd be thinking about getting your vehicle within, you know,
easily within 90 days in a typical market.
So it's quite significant, but I do also think it's temporary. We've got probably another 18 months of this, then hopefully those supply chain
constraints are beginning to be behind us.
SOLOMON: Well, where are you seeing the biggest sort of challenges with the supply chain? Is it still chips? Is it something else? I mean, where are
you seeing the biggest challenges?
FAIRBAIRN: Yes, I mean, obviously, the cars it's a pretty complex product, but I think the root cause it's in connectors, it's in chips, it's in
looms, its various different challenges. But because vehicles are such a complex product, you know, any one of those issues can cause delays. And on
the positive side, demand is a significant factor.
Well, there's loads of demand for electric vehicles, which is positive but you know we were up in the U.K. about 76 percent year on year. Last year in
terms of electric vehicles, and we're much, much less than that this year but I'm hoping that the supply chain constraints do get sold. And we're
back to the very, very high growth rates that we've been experiencing previously.
SOLOMON: And tell me a bit more about that. Just in terms of demand, are you seeing strong demand for both consumers and businesses? Because I have
to wonder, especially being in the U.K., with rising interest rates, with inflation being what it is still in the double digits? I mean, is any of
that impacting demand?
FAIRBAIRN: I think it probably is, but it's not the predominant factor. So I really think the supply of the vehicles is the main thing, which is
controlling the market in the U.K. currently.
Of course, we do have a whole bunch of macroeconomic points that you've taught, you've mentioned as well, but fundamentally, about one-fifth, 20
percent of all new vehicle sales in the U.K. are plugged in are electric vehicles and that hasn't changed too much. So yes, there are some
macroeconomics, but really, it's the supply side, I think, which is limiting the growth rate currently.
SOLOMON: Help me understand how much of your business is residential or consumer and how much of it is business because I'm trying to understand
sort of where these charging stations really are, where the demand is for them?
FAIRBAIRN: Yes, so our business is in the region of 60 percent of the activity is home charging, and 40 percent is commercial charging. And
that's about right, versus what a typical electric vehicle driver does. So we say something in the region of sort of 70 percent of all charging
happens at home, a small percentage then happens at the workplace, and even smaller percentage happens in the public space.
And actually only a very small percentage of electric vehicle charging happens in a sort of rapid charge fast charge at the petrol station
equivalent. So we think, you know, the best experience of owning electric vehicle is I wake up every morning and my car is charged. And that's why we
think 60 percent of charging happens at home.
SOLOMON: I see, so is that part of the reason why you have said in the past that you don't think that these charging stations will replace petrol
stations, because it's a sort of different business model in the sense that people would like to wake up with their car charge not necessarily stay on
the side of the road while the car charges.
FAIRBAIRN: Absolutely, and if you run the thought experiment, if your personal car was full of gasoline every morning, when you woke up. How
often would you need any other solution? And of course, the answer for most people is, generally speaking, I'm covered if my car is full of energy
every single morning.
So we actually think there is about a 3 percent crossover between locations where you want a petrol station in locations where you want a charging
point. So it's not zero, but it's very much the vanishingly small percentage. 97 percent of all charging happens in places that are nothing
like the traditional petrol station.
SOLOMON: So then what to do that I mean, how challenging is it for folks who want to take a road trip and you have to sort of plan out exactly, you
know, where the charging stations are? I mean, how much of a challenge is that for the industry?
FAIRBAIRN: Well, I think possibly the U.K. is ahead of U.S. a little bit in this in that. We're beginning to have quite a solid network now. That 3
percent of energy, which is when you do want to do those road trips is very important to you when you have a long distance journey to say. So it's
probably more than 3 percent in the consumer's eyes of importance, but in terms of where your energy transfers. The vast majority of energy is
transferring in places other than petrol stations.
FAIRBAIRN: But we do need charging at motorway services that you know key trunk roads all of those place. We have to build that of course and that's
really making some solid progress in the U.K. now.
SOLOMON: OK, Erik Fairbairn will have to leave it here but good luck with the production delays great to have you today.
FAIRBAIRN: Thank you.
SOLOMON: And stay with CNN as the FIFA World Cup gets ready for its grand finale. Ukraine's President Zelenskyy asking to broadcast a message of
peace we have people's reply after this.
SOLOMON: Welcome back after almost a month of intense competition. It all comes down to this the World Cup finals in Qatar, France and Argentina
battling it out Sunday in a match that will truly be seen and heard around the world.
France hoping to win the World Cup for a second straight tournament Argentina's Lionel Messi hoping to power his team to World Cup glory for
the first time in his career as well. Darren Lewis is live for us in Doha. So Darren, look I mean excitement is brewing I guess you could argue no
matter what happens. This will be one for the history books.
DARREN LEWIS, CNN SENIOR SPORTS ANALYST: It really will be because either killing them back pay the youngest player to score a World Cup final since
the legendary Pele will reclaim the World Cup on Sunday. Or Lionel Messi, the superstar Argentinian is 35 years of age; he's won the Ballon d'Or the
award for the best player in world football.
A record breaking seven times He's never won the World Cup and many people feel it will be his destiny to lift the coveted Jules Rimet Trophy at
around about eight, nine o'clock local time here in Doha. We'll see on Sunday, but it does indeed promise to be a fantastic matchup.
SOLOMON: Absolutely, and Darren what - making some bold predictions about the popularity of football or soccer, as we call it here in the U.S. and
North America. What are they saying about that? Also, we're learning that Zelenskyy apparently wanted to broadcast a message of peace. I mean, what
are you hearing about that?
LEWIS: Well, let's do it with more serious one first, because FIFA again a massive contradiction around this. They're often pushing the idea that
football has the power to build bridges and succeed where politics can fail. And right at the start of the tournament, the FIFA President Gianni
Infantino was saying exactly that, but I was at his briefing today and he will say, Look, we deal with players not heads of state.
When people watch football, they want some escapism. They don't want to be told that players want to wear armbands. It was a question about the One
love armband that FIFA had banned the players from wearing earlier in the tournament, but then we have this.
LEWIS: And Rahel, I just cannot fathom how the governing body of world football would not be behind a message of world peace. At the behest of the
Ukrainian President but that appears to be FIFA's position. We will see if they will climb down from it but at the moment they have rejected per our
colleague Matthew Chance's exclusive reporting the opportunity to send out a message that would have resonated far beyond this region.
SOLOMON: Yes, it is shocking to me as well and we will wait to see and Darren just very quickly, what is FIFA saying about the popularity of
LEWIS: Well, they're very happy. I think they got a bit carried away with themselves for help, because they were talking about it, maybe replacing
American football and basketball and baseball in the U.S. by 2026. I think they've got to go some way to do that, but there have been more fans at
games more viewers around the world around about 5 million.
There have been more people coming together with other cultures and leaving with a really positive feeling no trouble and that has been a feature of
previous major tournaments and World Cups haven't made any arrests out here. Everyone has gone away with a feeling that they've had a fantastic
football experience and that has led them to believe that it will continue in the future. Maybe this will set a blueprint for future World Cups.
SOLOMON: We shall see Darren Lewis, great to have you, thank you and that is it for the show. Have a great weekend.