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First Move with Julia Chatterley
Users Vote To Remove Musk As Head Of Platform; Lionel Messi Gets His First World Cup Winner Medal; Twitter Poll: Majority Of Voters Want Musk Out As CEO; Esprit: 44 Percent Of Sales Made From E-Commerce In 2021; Fashion Brand Esprit Returns To U.S.; Faves Contain Fruit, Veg That Would Have Gone To Waste; Highs And Lows From Football's Showcase Tournament. Aired 9-10a ET
Aired December 19, 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 FIRST MOVE. Fantastic to have you with us for a special, should he stay or should he go
edition of the program? Elon Musk running a twitter poll asking if he should step down is CEO. The poll results said 57 percent yes, 42 percent
no.
So basically they're saying yes, go love him or hate him must always create a Twitter show. Tesla investors meanwhile, clearly fixated on the blow by
blow the stock off its highs but still up more than 2 percent pre market and set to bounce off a 52-week low. I think the hope there is that Musk
steps down from Twitter and spends more of his time on that Evie firm.
It depends a lot on who replaces him at Twitter of course too. Tesla tumbled more than 16 percent over the past week. It's actually down more
than 57 percent year to date on both a broader tech turn let's be clear, but also selling pressure as Musk used Tesla stock to finance Twitter stick
with me.
This comic is third largest shareholder also suggesting last week that Musk stepped down at Tesla too. Oh my goodness, even I'm getting confused. We'll
discuss the latest Musk machinations with Tech Analysts Dan Ives later in the show.
He's been a Twitter deal skeptic from day one and says the poll gives Musk a graceful way out of what he calls a nightmare few months. Musk's poll
followed his attendance and reporting too on the World Cup face-off in Qatar. Yes, he tweeted it throughout the game too.
Musk like the rest of us, I think full of praise for a game for the ages. It was too exciting. We'll have all the post-match reaction and live
reports from both Paris and Buenos Aires coming right up and from World Cup celebrations and consolidations, constellations. Oh my goodness, it is
Monday morning to the stock market's wild holiday gyrations.
U.S. investors trying to get into the Christmas spirit after two consecutive weeks of declines, driven by fears that ongoing rate hikes by
global central banks will push the United States and others perhaps into recession.
U.S. features little changed in European stocks are higher after a softer handover during the Asian session, but the big Monday market story clearly
belongs to Musk. And Paul R LA Monica is here quick poll; take it away from me because I can't get my words out clearly this morning.
I know that he just still with me. Of course he put out this poll. Yes, we've seen this in the past, though and he'd already made a decision. We
think because we saw the filings before he put out the poll. Do you think the same was true in this case?
PAUL R. LA MONICA, CNN REPORTER: It's possible it's easier to justify having made or making a decision and laying the blame, if you will, at the
feet of the Twitter users who voted in the poll. I'm interested to see whether or not he does abide by it as he said he would.
Is he going to claim now all of a sudden that the bots are a problem again and that maybe there were too many Elon Musk haters potentially among
liberals that were stacking the deck against him? I don't know, but since you quoted the clash in your intro, this indecisions bugging me.
CHATTERLEY: Yes, I know, I mean, maybe Tesla shareholders were furiously putting their poll views into here as well, because obviously they want
perhaps more focus on Tesla and his leadership there.
But of course, the problem is, and we'll discuss it later with Dan Ives as well who said that, effectively, Tesla's become an ATM machine to help
finance Twitter and that doesn't go away, even if Elon Musk is at the helm. He sent out an interesting tweet though, too. And he said, and it was in
response, saying no one wants the job who can actually keep Twitter alive? That is no successor and he's--
MONICA: Yes, Musk said there's no successor, which doesn't exactly inspire confidence. And he also there were several other tweets in the past 15 or
16 hours, where he talked about the road to bankruptcy and you know that there's really not much to be done that can buy anyone else to rescue
Twitter. And I think it really comes back to the central question, Was Elon Musk forced into buying Twitter?
By a court that said, you have to do this because remember, he had that $54.20 a share $44 billion offer that he then reneged on until he had to
buy it. It does make you wonder, Is Musk just kind of running out the string here?
[09:05:00]
And, you know, is there a future for Twitter? Does Twitter go away? I don't know, these are all questions that I think only Elon Musk can answer and he
has not yet said, what is next after that poll, which, you know, came out, not in his favor. Or maybe it is in his day Julia, if he's happy to going
back to sleeping on factory floors for the Model S and the Model 3, instead of sleeping at Twitter and trying to figure out the advertising business?
CHATTERLEY: Yes, there he lies the key, because it goes back to your ability to monetize this. And I think for all of us that use it, and there
is utility in it. I'll put my hands up and say that brands use it. People use it every day to build their profiles.
There's a price to pay for that and he's tried to make that argument even if it was a little bit while the execution was a little bit suspect. I did
note two days ago, he said Twitter uses by real humans, once again reaches all-time highs. So the eyeballs are there. Obviously the--
MONICA: --real humans not bots said they don't want him to be the CEO of Twitter anymore. You can't have it both ways, Julia or he can--
CHATTERLEY: Moving on quickly since I lost that argument that yes, I was even trying. Paul La Monica, thank you so much for that. And as we pointed
out, we'll continue to discuss this later in the show.
Now he was once one of the most powerful players in the crypto market now Sam Bankman-Fried is back in court in the Bahamas today. CNN has learned
the Former FTX CEO is expected to reverse his decision to fight extradition to the United States where U.S. Prosecutors have filed eight criminal
charges against him that include fraud and conspiracy. CNN's Patrick Oppmann joins us live now from the Bahamas.
Patrick, we know what he faces if found guilty of all these charges in the United States, and it's at risk of what 115 years in prison? Why do we
think the U-turn here and the decision to not fight that extradition call back to the United States?
PATRICK OPPMANN, CNN CORRESPONDENT: It probably has a lot to do Julia with his current circumstances and place of residence and notorious Fox Hill
President here in Nassau. This is a prison that is got very tough conditions and for a billionaire who is used to living in Penthouse
apartments and he has a vegan diet and needs certain medications. And we hear that the prospect of fighting extradition from a prison cell the
Bahamas, understandably, was just not that inviting.
He had tried to get bail here was continuing to seek bail, but it'd become a drawn out process and he knew that if he stays in the Bahamas, that his
home would be this prison. So that appears to have had a lot to do with the fact that he's now apparently. Sources close to the case, tell us ready to
leave the Bahamas and we expect within perhaps the next hour or so.
Sam Bankman-Fried to arrive here and say that he's giving up his fight against extradition ready to go back to United States on a U.S. government
plan accompanied by U.S. Marshals. And begin the new legal process a new in the United States and you're very right facing eight serious charges of
conspiracy to commit fraud and other federal crimes that can lead to more than a century in prison if he is convicted.
Of course, SPF as he's known, he has said all along that he was not responsible that he perhaps wasn't up on all the details that he should
have. But of course, for the people who've lost their savings lost over a billion dollars here.
Those explanations just don't wash and certainly the United States government is calling it's one of the greatest cases of financial fraud in
U.S. history. And they're looking for other people in his company in his now defunct FTX Crypto exchange to essentially testify against him. So even
if he leaves the Bahamas in the next hours or days, his problems are only just beginning.
CHATTERLEY: Yes, certainly. And we shall see in the coming hours when he makes her own parents and just for any viewers that were concerned. We were
sharing pictures earlier of last week one he appeared then we saw pictures. So we await an appearance today.
Patrick, great to have you with us, thank you Patrick Oppmann there. To China now and a terrifying new prediction about the impact of COVID-19, the
study says there could be 1 million new deaths as China braces for a wave of infections following its abrupt exit from its zero COVID strategy. Ivan
Watson has more from Hong Kong.
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Chinese authorities have confirmed at least two fatalities due to COVID in the capital. But the
experts using the wealth of information that's been gathered from around the world from this pandemic have predicted that those mortality figures
are going to grow substantially in the months ahead. There is a preprint report published by Hong Kong University that has yet to be peer reviewed.
[09:10:00]
That is projecting that if the status quo conditions continue that, there could likely be 684 deaths. Out of every million COVID cases in Mainland
China and by our math those projects close to a million fatalities in the months ahead. Those numbers could be reduced substantially. The scientists
of this published this report predict if the Chinese government succeeds in dramatically ramping up vaccinations and getting antiviral medicines out
there, but anyway, you caught it.
China is in for a tough COVID winter in the months ahead. This is all the more dramatic because the Chinese government had been maintaining a zero
COVID strategy prior to about months ago. With border closures, with entire cities being locked down whenever there were a few COVID cases detected
with anybody who came in contact with one of those rare COVID cases being shipped off to quarantine camps.
And now after a series of protests across the country, the government seems to have moved back from these restrictions. While also the Omicron variant
is spreading like wildfire through the population. The narrative from the government has almost transformed from hay, COVID is a deadly disease that
must be stopped at all costs to hay it's not as dangerous now.
This new variant and we can perhaps live with it with one provincial government saying to public sector workers, if you get a mild or
asymptomatic case of COVID, you can still go to work. All of this amounts to a sharp U-turn in the rhetoric around this disease. Even as Experts are
predicting that Mainland China is in for a potentially deadly COVID Winter. Ivan Watson CNN, Hong Kong
CHATTERLEY: And severe weather in the Gulf of Thailand is hampering efforts to rescue 31 sailors after a Royal Thai Navy warships sank early Monday.
Thai authorities say strong winds tilted the ship then sea water rushed into the vessels through an exhaust pipe that then shut down the electrical
system, leaving the crew unable to maneuver or pump the sea water back out that.
According to the Thai Navy 75 crew members have been rescued at last report three sailors were in a critical condition. OK now to the World Cup,
Argentina lifting the trophy after a thrilling final against France. It is the Third World Cup title for the Argentine and the thirst for superstar
Lionel Messi.
(BEGIN VIDEO CLIP)
LIONEL MESSI, ARGENTINA CAPTAIN: It's madness that it happened the way that it did, but it's amazing. I said at one point that God was going to give it
to me. I don't know why I first saw it. I felt like it was going to be this one.
(END VIDEO CLIP)
CHATTERLEY: Stefano Pozzebon and joins us now from Buenos Aires. Jim Bittermann is in Paris. Oh, Jim, we'll come to you in a second. But
Stefano, one can only imagine the celebrations this weekend. Legendary status, I think for this team and I'm not even sure what to say about
Lionel Messi sort of footballing God's status perhaps.
STEFANO POZZEBON, JOURNALIST: Yes, perhaps I don't even think we can imagine how these celebrations have been throughout the night. Yesterday,
Sunday here in Buenos Aires as soon as that final penalty went through it really just the population just exploded in joy. And you now are telling me
that the God that Messi is perhaps compared to God while the front page of these newspaper here in Buenos Aires today.
Definitely agrees with you because here it says Dios which is up upon on the Spanish word for God and Messi's name is an Argentinian. Yesterday
definitely, Julia was a good day to be in Argentina. This is a country that is going through some financial hardship.
We have inflation at over 90 percent inter-annual and we have a political polarization that is a specter and an awful as ever. But yesterday, all of
these troubles that Argentinian people are facing have been simply swept aside by the joy of football and yes, fantastic scenes here in Buenos Aires
fantastic celebrations, Julia.
CHATTERLEY: Yes, absolutely. To your point, I think something that the country really needed and that the people really needed too. And Jim, on
the other side, I think clearly bitter disappointment but also huge pride in how well the team fought and one person in particular. I think a 23-year
old that manages to get a hat trick and still not win the World Cup that guy has a huge shining future I think ahead of him.
[09:15:00]
JIM BITTERMANN, CNN SENIOR INTERNATIONAL CORRESPONDENT: You're talking about Kylian Mbappe.
CHATTERLEY: Yes.
BITTERMANN: And tomorrow he turns 24-years old. He's only 24. He tweeted, he looked very disappointed after the match, but he tweeted, he said, Nous
reviendrons, which in French means we will be back will return. And I think that's probably the spirit that is going through most of the French
population today.
BITTERMANN: The fact is that they fought hard. The match shifted, the momentum of the match shifted back and forth. - The coach said, basically,
it's a little hard to digest. When you come back from nowhere, you think you're going to win and then you don't win and it's certainly the way the
fans felt. President Macron said about the same thing when he was trying to console the team last night in Doha. Here's what he said.
(BEGIN VIDEO CLIP)
EMMANUEL MACRON, FRENCH PRESIDENT: You have the heart, the finish, the desire and the talents to be here and that's why I wanted to come see you
to say thank you. You have woken up French men and women who needed it. Thank you to you.
(END VIDEO CLIP)
BITTERMANN: So I guess Julia, the message from France to Argentina a Babe Don't Cry for us, Mark, Argentina.
CHATTERLEY: Yes, see you next time. Oh, Mbappe's face when he had that golden boo and he walked past this sort of World Cup trophy was like I know
what I want to do with these two things and I don't want to be holding this one as great as it is. Anyway, Jim commiserations and Stefano, obviously to
the Argentinians huge congratulations what a game? Guys, thank you.
OK, coming up from sports, to social media and much more on Elon Musk's new poll on suing Twitter Turmoil. Plus, a sweet solution to a major climate
issue, how new candy is is trying to tackle food waste and climate change next.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to FIRST MOVE, the Twitterverse has spoken by a decisive 57 percent to 42 percent margin and majority of online voters want
Elon Musk out as Twitter's company CEO. Musk saying, he will abide by the results of the poll which he in fact commissioned the poll taking place
after another challenging week for Musk's business empire with Tesla shares slumping 16 percent.
[09:20:00]
Musk has yet to tweet after the close of voting. Lots of anticipation and uncertainty, of course, over what happens next, including for Dan Ives, who
joins us now he's a Tech Analyst and Managing Director at Wedbush Securities. And he's been following what he calls the nightmare Twitter
drama from day one and you and I have discussed it now. On many occasions, Dan, what do you make of the poll and the result?
DAN IVES, SENIOR EQUITY ANALYST, WEDBUSH SECURITIES: OK, being the clock struck midnight. I mean, I think not just investors, but I think those even
on Twitter have gotten more and more frustrated. Since Musk took over Twitter. It's been a Nightmare on Wall Street, not just in Twitter, but
also for Tesla investors. And I believe, by the end of the day, he likely steps down or at least puts succession plan employees. You know, given the
poll.
CHATTERLEY: Do you think there already was one? Do you think he was expecting this result? Because he did tweet a follow to that saying, you
know, be careful what you wish for effectively, and then he tweeted, no one wants the job, you can actually keep Twitter alive. There is no successor?
IVES: You take a step back, this is going to go down is, in our opinion, the most overpriced; M&A deal in tech in the history of deal making. I
mean, 44 billion, for an asset that we believe today is probably close to worth 12 to 15 billion. It's been a train wreck and really since late
October, since Musk bought it.
It just got worse and worse. Advertisers have run for the hills, and you know, it's bleeding, you know, money. And I think that's the problem,
because ultimately, it's selling Tesla in what's really been his personal ATM machine to fund the loss at Twitter.
CHATTERLEY: It's interesting, and you can quantify it for us, because I know you, you think you've got that in terms of what the cash burn is.
Currently, at least on an annualized basis there was a relief rally at least pre market though it's faded slightly in Tesla stock.
And the argument being made as that it means that he can refocus on what you call effectively the jewel in the crown and focus on that business, but
to your point about it being or at least having been up to this point and ATM machine to finance Twitter? That doesn't go away surely if the next CEO
can't turn around the ability to monetize Twitter in a better way.
IVES: Well, that's the biggest problem because Musk ultimately, look this is a $44 billion mistake, but the nightmare grows, it doesn't get better.
And no matter who takes over, there's still a Casper that ultimately needs to be funded by Musk. And also they've taken on debt or whatever deal in
this type environment.
I think that's the issue of it all starts with advertisers, the controversy that must bring the banning of journalists, it's gone away. It's the exact
opposite of freedom of speech. And that's the biggest problem here is that this has been brand deterioration a black eye from us, and ultimately a
black guy brand deterioration for Tesla.
CHATTERLEY: But can we look at the other side of this as well. And I sort of briefly made this point with Paul R LA Monica earlier about the utility
value that it provides to certain journalists to companies that raise their profile, brand power, whatever it is.
And even Elon Musk is saying and it was two days ago admittedly, that they're seeing, you know, the greatest level of eyeballs and engagement
that they've ever seen on Twitter. It is a utility value here to those that use Twitter. And arguably, that doesn't come for free. It should be paid
for however the execution of it.
IVES: It's all the execution and that's the fundamental problem here is monetizing it. And essentially what Musk has done is that since he took
this over, it's become more of a quicksand situation. The more controversy, the more advertisers ultimately run for the hills.
I mean the engagement there, it's really a matter of execution and so far, you know, this has really been a twilight zone. And that's why I think Musk
is finally - for him, sure, take a step back, and also focus where 95 percent of his wealth isn't the golden child, which is Tesla, because those
investors continue to have opera caught and got punches because of the Twitter situation.
CHATTERLEY: And it's, sort of become more about him specifically than it has about Twitter and the Twitter story and the Twitter business model.
Which perhaps a little less noise and a little bit more focused on that perhaps might be it might be beneficial. It was actually number two, this
Musk finding a new Twitter CEO on your top 10 Christmas wish list.
And I'm just looking through this now. And actually number three on that was Microsoft winning against the FTC, for the Activision deal, the big
gaming deal, among others. And we're showing them and I encourage people to have a look at your top 10 wish list because it's interesting. What's the
probability of that the Microsoft against the FTC?
IVES: That's going to be a Game of Thrones between Redmond and FTC, but we believe Microsoft ultimately wins in that deal and gets Activision.
[09:25:00]
That's important drawing a line in the sand for big tech that they could do more deals you know FTC this is one not just Microsoft. I think many
focused on this in terms of the broader ramifications but we believe the trophy ultimately ends up in Redmond.
CHATTERLEY: I tell you what Dan, there is no shortage of excitement in this sector which is great news for you even if it means you don't get to do
dinners or sleep or do all the normal things because it just never stops. Happy holidays, thank you for your time.
IVES: You too. Thanks for having me.
CHATTERLEY: Dan Ives there, thank you. OK, coming up here on FIRST MOVE, fashion brand with ambitious expansion plans the global return of Esprit
that's next.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to FIRST MOVE and the International comeback of Esprit, the fashion brand now returning to the United States with pop up
stores in Los Angeles and in New York, just months after it reopened in Asia. It's also launched innovation hubs in New York and London to focus on
things like technology, design and creativity. A dramatic shift after the company retreated from most markets except Germany.
As we bounced back to profitability last year for the first time in five years and at the center of it all new CEO, William Pak and he joins us now.
William, fantastic to have you on the show and wow, you guys have a lot going on. I have to say that just explain for those that perhaps remember
the brand, remember the retreat and now there we rise. What the differences are today?
WILLIAM PAK, CEO, ESPRIT: All right. Thanks for having me here. So the main difference is that for the first time in decades is free is going back to
the heritage of what made people love it in the first place, which is basically good design, good quality and good fit. This has actually been
missing for a couple of decades. So we went back to the archives and try to figure out what people really liked about it.
[09:30:00]
And this is something very different than the last time they tried to expand about 20 years ago.
CHATTERLEY: Yes, it's interesting. I think the lost identity; in many ways is their sort of key part of what you said there. And a coherent message
over what you represent. I guess, about crucial parts of that, or not you can tell me is who the customer is in your mind. Because even just looking
over what you have now for sale, there's the sort of Black Label the more expensive products, the white label, the less expensive products? Who's the
target here? Who is the customer?
PAK: Yes, this is a very good question. Because what we're trying to do is make sure that the customer has a clear message of what we are and who we
are, so first things first, entering New York City as a brand is something very important to us. So we're actually moving the creative office here so
that for the first time in decades, all of the clothing and all of the accessories will be designed in New York City.
So creative office, branding, marketing, photos, videos are going to be based there. So this is a very big move. So having done that, we now are
focusing on the rebranding of the product lineup, which is going to be more about a metropolitan outdoor flair. So somebody would be comfortable
wearing as free clothing to a Sunday brunch or a good time out with friends. So it's kind of like metropolitan outdoor elevated casual
clothing.
CHATTERLEY: Metropolitan outdoor, casual clothing, it's very bright; I can see lots of bright colors as well. Interesting that you said and I think
this is an interesting one as well with the manufacturing or not the manufacturing the design, the innovation hubs in places like London, New
York and I know you have one in Amsterdam, too.
But you also have your headquarters located in Hong Kong, where you're coming to us now. And you've also and I've said this and seen you say this,
it sort of locates you closer in terms of the headquarters with your manufacturing base in China to though that's been dramatically streamlined
as well. Talk to me about that, as an important part of managing costs, perhaps and supply chains, which we know have been particularly crucial
over the last few years.
PAK: Yes, so as a part of our total re transformation of the brand, in order to make things smooth to expand going forward, we underwent a one and
a half year restructuring periods. So as a part of the restructuring, what we did was change the entire supply chain network. For one thing, we
actually do things two ways. One is by relationship.
So we kind of have all of the partners understand our growth strategy and trust us. And we work together to plan out going forward, this way we can
avoid a lot of supply disruptions. So we guys have diversified multiple countries. But the second thing that we do is we are very data driven so
that one thing we really did was create a mathematics division, actually.
So by doing this, we can monitor inventory levels and supply chain bottlenecks on a live almost minute by minute basis as opposed to what it
was before, which was more like weekly updates and that sort of thing.
CHATTERLEY: Yes. And to the fashion aspect of this as well, I believe four key seasonal drops from 13 as well. I mean, gosh, to have more than one a
month in the past is exciting, I think to say the least. So even streamlining that part of the business, I'm sure will help protect margins
to some degree.
Is that also about protecting against some of the inflationary pressures be the input costs, energy costs, whatever it is. How are you going to tackle
that part of it, because that's certainly something that we speak to the CEOs all the time, sort of managing that?
PAK: So for about the last two decades Esprit has been doing these almost 12 seasons a year, 13 seasons a year. So it became kind of aimless, I
think, which is what we changed from the very beginning. So we're focusing on four seasons, as you mentioned, spring, summer, fall, winter. And it's
going to be based on core brand pillars like its playful, modern, and cool.
And these are the pillars that Esprit was built on from 1970s, 80s, 90s, which is what people remember. So this going forward is something that we
did with a rebranding. But in terms of inflation affecting the things that we're doing, we see that inflation has been teaching since about the middle
of this year and declining continuously.
Hopefully, the central banks of the world are ahead of this so that we can avoid unnecessary re-spikes in this inflation. But because Fashion and
Retail have to plan out things a year in advance, we have to take action now. And because of our re-transformation, what we did was we became
basically debt free.
We have a very good financial foundation so that we can expand through the rest of the world in particularly the United States, so that we can have
all of our stores open by the end of next year, this is something very different than --.
CHATTERLEY: Yes, I was about to say - as others have retrenching your expanding which actually for me was one of the key differences. And I
wondered whether you'd begin there in a way.
[09:35:00]
But to your point, you sort of have the financial flexibility to do that, which is very different from others. I actually just want to ask you as
someone who is based in Hong Kong, the situation there with the relaxation of COVID measures, whether that's in Shanghai and Beijing and some of the
biggest cities in particular, and all what Hong Kong is doing, how concerned are people there?
And how are you managing that with, with your employees and your workers there and sort of looking over the next six months of what it means whether
that's manufacturing, operating even just as an individual living, William.
PAK: So, after two years, basically restructuring the company and becoming global, again, including administrative headquarter moved to Hong Kong,
including the creative headquarters in New York City and so on, so forth. Because of this, we're able to actually work on a 24 hour basis so that we
become a little bit more productive in that.
Once we pass the workload on at the end of our day, depending where you are in the world, you can actually achieve twice as much work in one year. So
having done that, we've kind of mastered the online workspace. But of course, it's still very important to have meetings in person and also group
meetings and collaborations. So opening up over the last couple of months over here really helped because free flow information is something that's
very important to form a business.
CHATTERLEY: Yes, well timed. Now we just have to see what it looks like. I think in practice, William, good luck. You're a busy man. I know when
you've got a really busy six to 12 month coming up. I'm looking forward to chatting again soon and tracking progress. Great to have you on, thank you,
William Pak there, the CEO of Esprit.
Still to come here on FIRST MOVE fighting food waste with a fruit candy, yes, you heard me right. The CEO of Climate Candy joining us now with a
sweet way to tackle climate change. That's next.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to FIRST MOVE. I knew this morning a landmark agreement to address the global biodiversity crisis. More than 190
countries is adopting a sweeping agreement that sets targets on protecting nature. They're promising to protect 30 percent of the world's land and
oceans by 2030.
[09:40:00]
Currently only 17 percent of land and 10 percent of oceans are protected. And campaigners say it's a huge milestone for conserving vital ecosystems
even as detractors say it doesn't go far enough, but it's a step forward. And very much in this vein, one of the big contributors to greenhouse gas
emissions is food waste.
It's estimated around a third of all food that's grown goes to waste and represents roughly 8 percent of emissions globally. And that is where my
next guest comes in. Climate Candy has a sweet approach to tackling waste. It takes un-harvested and imperfect farm produce and turns it into plant
based candies it calls Faves.
Now carrots and candy don't normally go to well together. But CEO Amy Keller says her goal isn't to replace candy, but to make space for healthy
options whilst having a positive climate impact. Joining us now is Amy Keller. She's CEO of Climate Candy, I have to say, I love carrot cake. So
that's not quite right. But just explain the vision for climate candy and how it all works.
AMY KELLER, CEO, CLIMATE CANDY: Absolutely. So I grew up around candy. I come from a family that owns a candy factory Spangler Candy Company. We
make 2 billion Dum Dums every year, along with many of the other Daljit candies, you know, I got to witness the power candy has the abilities to
fun into any moment.
And I wanted to push it further extended beyond simply our individual moments into something with even more lasting impact. Like my partner's
Kevin Wall and Dr. Seuss Molly did for Live Earth with Al Gore. So my worlds collided when we were in Svalbard, Norway, visiting the Global Seed
Bank to learn about food security.
I witnessed the United Nations installing generators due to climate change to keep the glacier refrigerated for all the backup seeds of the world. So
while on this trip, I was reading draw down by Paul Hawken. And learn that 40 percent of food grown globally is wasted. So I wrote the company
business plan in the Arctic Circle for Climate Candy to create Faves candy from imperfect fruits and vegetables for the health of people on the
planet.
CHATTERLEY: Yes, and you're saying that the sort of chewy feed candies contain 96 percent fruits and vegetables, including Apple juices, fruit
purees, sweet potato flour, just to give our viewers a sense. Now, I couldn't agree more with you. And as you said, you came from a sort of
sweet candy producing family and a pretty big one.
Very few people, I think would say they do eat candies, because they're healthy. They eat them because they're naughty. They taste great. And there
is a difference, I think because I've tried many of them.
And I've tested it on a lot of people as well between Faves and between something like a DUM DUM. Who's the customer here? I guess is the question
that I'm asking. And I do think it's an important one. Is it someone who's climate conscious and looking for sort of a relatively healthy alternative
to candy?
KELLER: Well, I believe climate consciousness is more relevant than ever. And as a result, companies are working to improve the impact of food
production. So companies are talking about sustainability efforts in a time when consumers expect brands and retailers to do more related to carbon and
climate.
So with that rising demand, it's a way for shoppers to say we are prepared to stop buying our favorite brands if you don't commit to measuring the
product's carbon footprint. So it's high time for people to realize the solution to heal ourselves and the planet is what we choose to eat. And
that includes all of us.
So we use Faves as an educational moment around one, what is in your food and the need for people to get five to eight servings of fruits and
vegetables per day and two, to discuss climate change in an accessible way through candy.
So with 25 percent of perfectly imperfect produce going on harvested on farms and these on harvested for produce waste, vital energy and
contributed to high end climate change. Climate Candy rescues on harvested fruits and vegetables from farms and gives them new life as Faves candy.
CHATTERLEY: OK, so I get the proposition here. And I think it's vitally important that we do more to protect the planet but I'm, I'm sort of being
controversial deliberately just to hear what you say. Seven pieces is a serving, I believe that provides you one of your five pieces of fruit and
vegetables a day.
I sort of did a weight by weight comparison with Starburst, which is a sweet candy. I think that probably most people around the world would
recognize and just on a weight basis, it's about these are about four times more expensive. So if you're asking somebody to sort of substitute perhaps
there's something that doesn't taste as sweet obviously as traditional candy. It costs a lot more.
[09:45:00]
Do you really believe that people are willing to pay a higher price in order to protect the planet? Because that's what you're saying, this comes
down to caring enough about the planet to make a change?
KELLER: Absolutely, I think that people are starting to learn about the products that are going to waste and their understanding that climate
change is escalating, while people are going hungry. And this is unacceptable, wasting that much food, all while running out of land, water
and healthy soil.
So when they look at food loss, starting at the production level and the low market prices and high harvest costs, often that are uneconomical to
farmers, it's almost a way for consumers to give back to be involved with those that are making our food. So by cutting food waste by half in the
U.S., we would actually reduce greenhouse gas emissions by 75 million metric tons each year.
And that generates an economic return of $75 billion. So I think when we look at the importance of reducing food waste, it leads to several key co-
benefits that get it critical issues, climate justice, climate adaptation, water scarcity and biodiversity loss.
And that's why we work side by side with the non-profit 501CTHREE, and the founder Drew Fitzgerald. So when I look at what we're doing, you know, in
this side of despite Farm to Food Bank, efforts to recover this on harvest of food, the vast majority is left and fields are going to waste.
And with food service closing during COVID farms, the typically sold those markets found themselves with huge surpluses. So I think that there's just
all this news and people are starting to be more conscious about it.
CHATTERLEY: I think they have to get seriously, far more conscious, though, to sort of make this kind of investment. I love what you're doing, though
and I love your passion. Are you profitable? And is that a conversation that you're having with investors because you didn't take family money.
For my understanding, you got independent investors. So just very quickly, because I have about a minute left. Are you profitable on how are those
conversations going because you need believers?
KELLER: Right, absolutely. So we decided to go out to an amazing group and we have a lead investor with Trousdale Ventures and PTK capital, they got
behind the mission and vision of the company. And through that, we ended up with Angel Investors that truly believe about what we're doing for health
of people and the planet.
In regards to where we're going out this year, obviously direct to consumer and E-commerce. So we found that that works through that outlet. But now
people are starting to go back into stores. So you're seeing us in the Urban Outfitters, you're starting to see us out there in the markets.
And I think that's super important too, is to see us at the retail level, not just seeing us at events at Flippers Roller Boogie Palace where you are
there in New York City at Rockefeller Center, or seeing us that those type of things that you would normally see something that's a little
alternative, right?
So I really want to see us someday in school vending machines. And seeing as in places where it's that educational moment, science centers,
aquariums, you know places where families go and they'll remember that they learn this lesson about climate change.
CHATTERLEY: Amy, come back and talk to us soon please. And you definitely win the award for the best guest Christmas tree in the backdrop that tree
looks amazing. Thank you for joining. We'll speak again soon.
KELLER: You're welcome.
CHATTERLEY: The CEO of Climate Candy there, happy holidays. Thank you. Stay with FIRST MOVE, more to come.
(COMMERCIAL BREAK)
[09:50:00]
CHATTERLEY: Welcome back to FIRST MOVE. And U.S. stocks are up and running this Monday and well covered like excitement on Wall Street for you. Call
it if you will, a messy open and not in a good way. U.S. stocks softer after last week's more than 2 percent drop for both in NASDAQ and for the
S&P 500.
And checking in once again on Tesla shares, they are some 2.4 percent higher after the results of a Musk commissioned Twitter poll showed a
majority of those who voted wanted him out is the CEO of Twitter, Musk saying he will abide by the results but he has yet to comment on the final
poll results.
And before we bid farewell to World Cup 2022 let's take a second to toot our own horns here on FIRST MOVE, the Chatterley Cup is accurately
predicting the winner of the tournament with Argentina stock market up almost 100 percent so far this year and the French CAC Quarante down some
10 percent.
The Chatterley cup pitted World Cup teams against each other to see which country stock markets came up on top on the stock market pitch. I think it
was a complete accident. But anyway, we won't mention that again. There'll be many ups and downs since the World Cup began four weeks ago. Our Don
Riddell runs us through some of the highlights and some of the lowlights too, take a look at this.
(BEGIN VIDEOTAPE)
DON RIDDELL, CNN WORLD SPORT (voice over): It was 12 years in the making arguably the most controversial World Cup of all time. Allegations of
corruption and criticism of Qatar civil and human rights records dominated the build-up. But on the eve of the tournament, the FIFA president
deflected all of the criticism.
GIANNI INFANTINO, FIFA PRESIDENT: If you want to criticize someone come to me criticize me. Here I am you can crucify me. I'm here for that. Don't
criticize Qatar don't criticize the players.
RIDDELL (voice over): And when the action kicked off, it was relentless. The host team Qatar quickly slipped out of you but many of the underdogs
had their day. Saudi Arabia's sensational win against Argentina set the tone for a tournament of upsets, Japan came from behind just on Germany the
next day.
In the background, the controversy lingered protests about Qatar's domestic policies were brief, but impactful in saying that they were silenced.
Germany found their voices and in refusing to sing Iran signaled their empathy for the bloody uprising back home. For some it was a painful World
Cup. Christian Pulisic's injury was enough to make everybody's eyes water.
ANDERSON COOPER, CNN CORRESPONDENT: You called it I believe the pelvic contusion heard around the world.
CHRISTIAN PULISIC, AMERICAN PROFESSIONAL SOCCER PLAYER: Felt around the world.
COOPER: Oh, felt around the world.
RIDDELL (voice over): But the real pain was the loss of two migrant workers who died as a result of workplace accidents during the tournaments and the
sudden passing of two media members who are covering the action, the Qatari photo journalists Khalid al-Misslam and the celebrated American sports
writer Grant Wall.
On the field history was made, Stephanie Frappart lead the first all-female refereeing crew at a men's World Cup. And the group stage kept the fans on
the edge of their seats, while the drama put news anchors out of their minds.
RICHARD QUEST, HOST, QUEST MEANS BUSINESS: I saw you last hour. I have absolutely no hesitation in saying to you this is yours make, this keep of
mess is yours to try and interpret and make.
RIDDELL (on camera): Richard I'm not even sure I want it. It's so complicated. He's as far as asked me earlier. So if this happens, and this
happens, what does that mean? And I was like, I need to consult my notes I don't know.
RIDDELL (voice over): And when the dust had finally settled, a New World Order emerged. This was Asia's most successful tournament and the same to
for Africa, for whom Morocco became the standard bearers for a continent and the Arab people. The Atlas lines had blazed a trail to the semifinals,
making heroes of themselves and stars of their mothers.
UNIDENTIFIED MALE: We are playing home. This is a good time for everybody from Qatar from the Middle East, the Arab countries all over the world.
They love it. They're having a different experience and they're enjoying their time.
RIDDELL (voice over): But in the end, we got the final that many were expecting, France against Argentina was an instant classic. Kylian Mbappe
scored a hat-trick, but was heartbroken as Argentina edge did on a penalty shootout, meaning that Lionel Messi has now won the only trophy to have
eluded him to the pantheon of greats and finally placing him alongside his great compatriot Diego Maradona.
[09:55:00]
FIFA say that this has been the best ever World Cup history will be the judge, but for so many different reasons, it has certainly been one of the
most memorable. Don Riddell, CNN, Qatar.
(END VIDEOTAPE)
CHATTERLEY: And well done Argentina. And finally, Christmas time in Ukraine looks very different this year, but a symbol of strength and invincibility
is standing tall in Kyiv. Take a look at this. A Christmas tree complete with generator powered energy saving lights is on display in the Ukrainian
capital Sofia Square.
The artificial tree which comes in 12 meters tall has been decorated with roughly 1000 blue and yellow balls and white doves with a trident placed on
top. Flags of countries supporting Ukraine are also featured at the bottom. And that's it for the show. "CONNECT THE WORLD" is up next and I'll see you
tomorrow.
(COMMERCIAL BREAK)
END
