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First Move with Julia Chatterley
Ukrainian Mothers Desperate to get Children back from Russia; World Bank President David Malpass Speaks to CNN; World Bank Announces $1.78B for Turkey Recovery; Day Five of Protests over Pension Reforms Grip Nation; Ives: Tesla Demand in China to Rise; New York City's New VIP: Flaco the Escaped Owl. Aired 9-10a ET
Aired February 16, 2023 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:00]
(COMMERCIAL BREAK)
JULIA CHATTERLEY, CNNI HOST: A warm welcome to "First Move", great to be back with you once again. I have so much to catch up on and as always, a
frantic "First Move" today to kick things off, including an exclusive interview with David Malpass, the outgoing President of the World Bank
Group. Malpass, announcing Wednesday that he's stepping down early, almost a year before his five-year term expires, in fact.
A tumultuous term at the helm of the financing institution that included support further COVID-19 pandemic. Record financing for climate change the
war, of course in Ukraine, and just this month, the earthquakes in Turkey and Syria. The World Bank already pledging a near $1.8 billion for
emergency assistance to Turkey alone, we'll discuss the needs of those impacted as well as the first of its kind, I believe, global roundtable
discussing debt relief.
It's taking place next week on the sidelines of the G-20. Summit. And crucially it includes big nations like India, China and private creditors
too. It also comes at a pivotal moment for the global economy with China's reopening gathering steam.
Europe hoping to avoid recession and the United States everything seemingly on the rise at least for the moment too. I'm not just talking about
balloons or UFOs either "R" is for retail sales up a blistering 3 percent pays in January. "I" for inflation just real estate issues prices at the
factory gate coming in hotter than expected last month.
"S" is for stimulus fatter Social Security checks to compensate for higher prices are in the mail with state and local governments across the United
States flush with cash to spend too and "E" of course for employment to U.S. jobs growth blazing a trail at the start of 2023 too difficult to
forecast a hard landing when so much of the economy is expanding.
The new term du jour is in fact no landing with the economy growing steadily even in the face of higher borrowing costs. We will discuss later
on in the show. For now, though on global markets the U.S. stock market futures lower reacting negatively to that disappointingly hot new inflation
read.
As you can see European stocks are pulling back too. The FTSE is the outperformer over in the U.K. It hit record highs earlier on in the
session. Wow, much to discuss over the next hour or so. But first, we do begin in Ukraine, where local officials say the country suffered a massive
missile attack by Russia overnight.
Let's get straight to CNN Senior International Correspondent David McKenzie, who joins us now from Kyiv. David good to have you with us, can
you define massive for me and how well did the Ukrainian Air defenses hold up in the face of this?
DAVID MCKENZIE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, they're held up pretty well, Julia. Certainly this is a relatively regular occurrence
here in Ukraine, at least 36 missiles and other ordinance flying at Ukraine in the overnight hours about half of those were taken down by Ukrainian air
defenses, but in the east of where I'm standing certainly, tragically a woman was killed.
You see the giant crater from one of those strikes and civilian areas clearly hit by those Russian missiles. But at this point, it does seem that
Ukrainians have been able to stop at least some of these missiles getting in. Though they did say it struck critical infrastructure in their words,
particularly to the west where I'm standing in around Lviv, Julia.
CHATTERLEY: And David, one of the other stories that I know you personally have been following is that the Ukrainians have accused Russia of abducting
thousands of Ukrainian children something of course that Russia denies. But as I say, I know you've been looking at this. What have you found?
MCKENZIE: Why don't want to show you this video released by the Kremlin and it's quite, it's very fascinating in fact, the timing of this. This is
Vladimir Putin praising the work of Maria Lvova-Belova. Now she, according to the Russians has been instrumental in getting children away from the
danger zone in the Donbas in the Eastern part of the country for years, and also putting them up for adoption when their parents are killed or missing.
But the EU and the U.S. and researchers have a very different opinion of this woman. They say she's instrumental in separating children thousands of
them from Ukrainian parents and setting up camps where they are stuck for many months some time.
[09:05:00]
MCKENZIE: We followed one mother who was desperately trying to get her children back.
(BEGIN VIDEOTAPE)
MCKENZIE (voice over): Weeks ago we first met Tetyana Vlaiko in Kyiv in a shelter for displaced families. All of the mothers here separated from
their children by the trauma of war.
TETYANA VLAIKO, UKRAINIAN MOTHER (ph): Emotions overwhelm me when Lilia left. When I realized what was happening, it terrified me. All I wanted for
the best for my child at the time.
MCKENZIE (voice over): Her 11-year-old daughter Lilia stuck in a Russian camp in occupied Crimea. All the lessons are in Russian. At first glance,
the retreats seem like any other summer camp, but the loyalty expected from Ukrainian children is crystal clear. Part of what a new Yale University
study calls systematic reeducation efforts.
But Tetyana and Lilia's story begins a year ago the hometown of Kherson fell quickly to advancing Russian troops. Within days, the occupiers began
a campaign to ratify the population often coercing thousands of parents like Tetyana to send their kids to the camps. But when Ukrainian forces
took back Kherson in November, Tetyana's daughter was on the wrong side of the front line.
MYKOLA KULEBA, SAVE UKRAINE: We provide rescue mission for children who were abducted now in Russia Federation, and in Crimea.
MCKENZIE (voice over): Mykola Kuleba, the Founder of Save Ukraine, declined to say exactly how they negotiate the entry into enemy territory, just that
the mothers can't do it on their own.
KULEBA: It's impossible to communicate with any Russians because you can ask this mothers, they don't want to give children back.
MCKENZIE (voice over): But Tetyana was ready to take the risk.
VLAIKO: I'm worried of course you cannot even imagine my emotions inside. It's, fear and terror. It's emotional that I could see her soon. And this
is a big deal for me.
MCKENZIE (voice over): 11 mothers and one father putting on a brave face, but theirs is a perilous route from Ukraine by road to Poland, and to
Russian ally Belarus, through the Russian Federation to occupied Crimea.
VLAIKO: We were counting every kilometer on approach. I could feel it with every cell in my body. I was very emotional when we were closer and closer.
MCKENZIE (voice over): Save Ukraine spent many months planning this moment. Reuniting families shattered by war, returning children who just wanted to
go home to Ukraine.
VLAIKO: Once entered, to me it was an outburst of emotions. Once we embraced it was like a great weight lifted.
MCKENZIE (voice over): In the end they gave up the children willingly. But Save Ukraine says that hundreds perhaps thousands remain. Our two countries
are at war, says Tetyana. But they are good people everywhere.
(END VIDEOTAPE)
MCKENZIE: Julia you look at those emotional reunions, many of the mothers were very conflicted as to whether to send their children to these camps.
Some did very willingly because it got them out of danger. But now you have this awful scenario borne out by our reporting and studies done by Yale
that there are many, many children.
The most serious allegation is that there are children whose parents are alive who have been put up for adoption. That's at least according to that
report. The Russian Embassy in Washington is rubbishing the report calling it absurd it claims and it maintains that this is just to try and keep
children and their families, safe in a time of war.
But I can tell you that organization Save Ukraine is trying to organize more rescue missions, reunification missions, whatever you want to call it,
to reunite parents, with their children, Julia.
CHATTERLEY: Critically important context and vitally important story. And David McKenzie, thank you for bringing that to us today. OK, let's go to
Turkey and Syria now we're more than 42,000 people has now lost their lives as a result of last week's earthquake.
A short time ago NATO Secretary General Jens Stoltenberg met with the Turkish President Recep Erdogan to offer his condolences and highlighted
that NATO is setting up temporary housing for survivors in Hatay province, and will airlift tens of thousands of tents to Turkey over the coming days.
We're now on day 10 of those rescue efforts with crews battling near freezing temperatures to still try and locate survivors. The latest miracle
rescues a 17-year-old pulled from the rubble after surviving being trapped for 248 hours. A leach search and rescue teams from around the world are
helping the search and recovery effort.
[09:10:00]
CHATTERLEY: At the same time civil engineers from the United States are helping the Turkish Government assess which of the buildings still standing
still safe to return to. Sara Sidner has more.
(BEGIN VIDEOTAPE)
SARA SIDNER, CNN CORRESPONDENT (voice over): Rescue teams from around the world attack the piles of crushed buildings, sometimes with brute force and
other times as carefully as possible. It's a delicate balance trying to save any possible life underneath, or at the very least, keep bodies
intact.
CHRIS ALLENDER, USAID RESCUE TEAM MANAGER: It's going to take the thousands of rescuers here, not just the United States, but it's going to take a
collaborative effort of all the rescue teams here.
SIDNER (on camera): People are actually just hoping to find anybody even if they're dead so they can bury them.
ALLENDER: And that's very important too.
SIDNER: The teams do this as bereaved families look on watching their every move.
MEHMET AYDIN, NEPHEWS TRAPPED UNDER RUBBLE (ph): I swear I have lost my days and nights he says in tears, our sorrow is great.
SIDNER (voice over): While he waits he prays for the four members of his extended family to emerge and remembers the terror of waking up to the sway
of his own building. We know that our building was bending like this. But unlike this one, his building did not break apart. Yes, Los Angeles County
civil engineers are on the site with USAID to help the Turkish Government sort out which buildings have light damage, major damage or which need to
be demolished.
SIDNER (on camera): I think it would be OK to live here.
KAITLIN HANNON, LOS ANGELES COUNTY CIVIL ENGINEER: You would?
SIDNER (on camera): Yes, I think you know from this viewpoint, that main concern is actually the building next to it falling on top of it.
SIDNER (voice over): We are there when the owner of an apartment building approaches asking whether it's safe for her to live here again. And
engineer Hannon goes with her inside. While the homeowner decided she was too afraid to stay in her building, despite Hannon saying it was assessed
as being safe. Others hadn't has met or relieved to hear an assessment like that
HANNON: A lot of them that we've gone in are actually doing well. And once we tell those people that they'll start crying give us hugs and it's
heartbreaking. But to be able to tell someone your house is safe and it kept you safe during this you know it's something we can help with
something small we can do.
UNIDENTIFIED MALE: Over 6000 structures. We put eyes on just to assess at a very quick glance.
SIDNER (voice over): The findings of civil engineers are then put into a grid created by Los Angeles County Fire.
UNIDENTIFIED MALE: So we can see where the rescue is needed.
SIDNER (voice over): Even in the disaster zone, children find a way to soothe themselves despite the grief that continues to weigh heavy on
everyone here. Sara Sidner CNN Adiyaman, Turkey.
(END VIDEOTAPE)
CHATTERLEY: OK, coming up here on "First Move" fresh from announcing a massive $1.8 billion aid package for Turkey. The President of the World
Bank announces his departure later this year. David Malpass joins us to discuss that decision. But he's set to be a very busy few months before he
hands over the baton that that exclusive interview coming up.
Plus, Chatterley chats, chat GPT and more with Dan Ives and yes, there wasn't too much human intelligence on show from either of us. That's coming
up stay with us.
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[09:15:00]
CHATTERLEY: Welcome back to "First Move". Now one of my strongest takeaways from my discussions at the World Economic Forum was that they we're on a
precipice of fundamental reform in the way that big institutions like the World Bank and the International Monetary Fund will operate.
It seems that their biggest shareholders and I'm talking about countries like Germany and the United States among many others are ready to shake up
the business model. And that means perhaps except some losses, take on more measured risk and scale up or leverage finance in order to better tackle
the world's biggest challenges.
And of course, the World Bank is going to be a crucial part of that change over the coming years. And now the hunt is on for the leader that will help
drive that change. After current President David Malpass announced his plans to step down in June of this year, and that's almost a year early.
Now U.S. Treasury Secretary Janet Yellen praised Malpass for his service and efforts helping low income nations achieved debt sustainability through
debt reduction. His resignation also comes as the bank announces a $1.8 billion package for Turkey to assist with recovery and relief efforts.
It's also preparing to co-host vital discussions on debt reduction for lower income nations around the G-20 meetings next week. And I'm pleased to
say David Malpass joins us now. David, always a pleasure to have you on the show and have to say that sets up for an incredibly busy six months to
come. But I do want to start by talking about your announcement and the decision and the timing of your decision. Talk us through it.
DAVID MALPASS, WORLD BANK PRESIDENT: Hi, Julia, the bank has been really going on all cylinders, you know, there's been a big surge of commitments
both for COVID and then for the post Ukraine spill overs. And so I feel like the bank is in a very good spot. And I'm personally in a good spot to
look for new challenges.
What we've managed to achieve, is a solidification of our finances. So we're in very good shape at the big expansion of our commitments were up 40
percent, from the previous averages. And we have had two big IDA replenishments, as you know which are so important for the poorest
countries.
We're pushing forward on the debt issues on the climate issues, and very importantly, on the country programs and the issues facing individual
countries. Again, I'll emphasize especially the poorest countries, where food and health and energy shortages are all pressing needs for those
countries. So I feel the bank is in a very successful spot and it's a good time to make the transition.
CHATTERLEY: I described it as tumultuous the last four years that you've taken the helm and lead the bank through and as you've said, the COVID 19
pandemic, economic crisis, the recovery from that high inflation, you name it, never mind the challenges, of course, with longer term issues, like
poverty, like food security, like climate change that some of the poorest nations in the world still face.
And I know many of these issues you're personally incredibly passionate about. But it does tie to I think the fundamental shift that, we're likely
to see or at least has been hinted by the head of the IMF, the U.N. Secretary General, in particular, in my conversations over the past few
weeks.
And the next sort of five years, one to five years is going to fundamentally, I think, change the way that big institutions like the World
Bank operate, is this, you also saying, look, I want to allow the next person to drive that over the next year, but of course, over the next five
years too. The timing feels right. I think in that regard, is that also part of what you're saying here?
MALPASS: That's part of it, but I really think we're at a good turning point for new efforts and we've succeeded in a lot of the things that we
set out to do.
[09:20:00]
MALPASS: So I'm pleased with the timing, as we look forward the developing world is facing this giant shortage of capital and of energy and of growth
potential. And so I think that's an issue that the world is going to be facing for years. You know, I started in directly in public sector in 1984
with work on the World Bank we set up the environment division in the capital increase of 1987.
And so the banks gone through lots of evolutions there, they're really important to the way the world operates. And I think we're at a good time
for the bank to be even more engaged in global public goods that brings in these financing mechanisms that we've had lots of discussions on.
You know, we've been going full speed at the World Bank over the last three or four months and ways to expand the resources that are available to the
developing world. One of the big ones and I think the world needs to discuss it is the idea of trust funds that will be used for concessional
resources, specifically in the climate space.
As you look to the billions that really hundreds of billions of dollars of need in the climate space, I think there will be needs to be a mechanism
for channeling those resources. And that's part of the discussion now.
CHATTERLEY: I'm just I wrote down 1984 and I have to say, between my honor discussions with you, and also private discussions, I know you're no less
energized, I think than you were back in 1984 to tackle some of these challenges. You mentioned climate and I think that has been one of the
tension points.
And I think, or at least and again, you and I have discussed it, I think there will be people that look at this and say, in some way that you've
been pushed to make this decision. And you certainly don't sound like you've been pushed. But I guess I'd ask David, if you have any regrets of
your time over the last four years and anything that you would change about your leadership?
MALPASS: Yes, far from regrets, it's been a great it's an amazing time the people at the World Bank have been great that I think the governance system
works very well. And so we've achieved what many of the things I wanted to and there, you know, we have to recognize it's just been an intense four
years.
It will end up being for four and a quarter year, when as I'm leaving, and that puts up that just as time I think it's really important that
institutions have energy, new energy and that's it. This is a good time for the World Bank to do that. So no regrets at all, in fact, I was very
pleased that I talked with my board of directors yesterday, and they gave a long ovation, I thank them for all they've done.
Remember, during COVID, we set up this special system for a fast track approach to getting health aid to the country's personal protective
equipment. And then big vaccination programs that were some of the most important for the world in actually getting vaccines into people's arms.
And that was made possible by flexibility within the organization. Plus, the sizable resources, we were able to get through either 19 or either 20.
You know, we've had to record replenishments in my tenure in 2019 and in 2022, I guess, for either 20. And those have been massively important for
the poorest.
And then we're also working on the resources, the big new resources that we got in the capital increase of 2018 and the IFC capital increase in 2020.
So the World Bank has these five institutions that I had each of each of them that are all hitting on all cylinders right now. So I'm proud of that
and it's a good time to make the transition.
CHATTERLEY: And then we'll carry on because there as I alluded to at the beginning of the interview and you've already done so the work doesn't stop
and you're going to have an incredibly busy six months. I think at the top of the immediate agenda is the decision to provide financing to Turkey,
almost $1.8 billion.
And can you talk to me about how quickly that money will be put to use and I've seen some estimates to the tune of up to $8 billion dollars in terms
of the requirements for rebuilding and also support to those impacted? David even at this stage, can you give us these any sense of assessment of
just how much money rebuilding and supporting Turkey could indeed require?
MALPASS: The World Bank's role and capabilities in crises like this is impressive. And as you know, we were very fast on Ukraine.
[09:25:00]
MALPASS: We've been fast on the aid and we push a lot of humanitarian assistance as well as development assistance into regions that are hard
hit. And so with Turkey, the office in Istanbul and in Ankara, we're able to begin work right away as the earthquakes hit that means rapid damage
assessment and also beginning to transfer actual money from other programs into the immediate relief.
So $700 million begins flowing very quickly to the government of Turkey to support their efforts and then we begin work right away, meaning within a
matter of hours or days on a rebuilding loan, that would be made that may amount to a billion dollars. But over time, we know that needs assessments
will be greater than that.
So it shows, you know, the importance of having an institution that can work across the various areas of development assistance, whether that's the
health needs, that's the immediate food needs, and that's the rebuilding needs that will come up. We're doing similar things are preparing for those
in Ukraine clearly more money has flowed already to Ukraine.
Some $16 billion that we've dispersed ourselves from front funds provided by various donors, especially from the United States and so that
relationship is really strong and that's working also in the area of Turkey, where there's an international effort and partnership, to really
support Turkey through these horrible times.
CHATTERLEY: Yes, no house with all those involved as the recovery efforts in Turkey continue and obviously, the efforts to support Ukraine continue
as well. David, I'm conscious of time and something caught my attention that, again, I know you feel incredibly passionately about and what I
believe around the G-20 is going to be the first meeting of its kind, which is to discuss debt relief, or debt reduction, a round table, and I know
you're co-hosting it.
And also what I hear on the sidelines, and you can correct me if I'm wrong is that I think for the first time nations like India, big creditor nations
like China, and also private creditors, a crucial part of this discussion are all going to be involved. Talk to me about the importance of this,
because if we actually want to see action on helping lower and lower middle income nations provide some support to them. This is crucial.
MALPASS: That's exactly right. So I think in order to have better growth, stronger growth for developing countries, there needs to be transparency
and the debt relationships that they have with all the various creditors. And then for those countries that have unsustainable debt, there needs to
be a successful rather rapid process to reduce the debt burden.
That can be done through lengthening out the debt payments at a low interest rate, you know, a very favorable re-profiling or it can be done
through actual debt reduction. So the purpose of the roundtable is to discuss that our co-Chair with the IMF and also India this year as the Head
of the G-20.
So they'll help us move the group along to actually discuss how do we, speed up the process so that the poorest countries can actually get to debt
reduction or debt relief from their burdens. Zambia is in a very important spot where they need a memorandum of understanding it's called an MOU that
actually shows how they could reduce their debt.
They've been added for two years and it's, really time now to finish that job and get to debt reduction there. Sri Lanka is important, it's in a
different situation, because they've had a lot of Euro bond kind of debt and also heavy debt from China and from India, those need to participate.
And I'm glad you mentioned the private sector, it's going to be critical that the private sector fully engage and be prepared to lengthen and
substantially reduce the net present value of their payment structures. The reason this is important is because the government's and the people of the
countries need the money, for food, for health, for education, for nutrition and for climate adaptation.
These are all pressing needs and they compete with the debt payments that the countries are being demanded that are being demanded of the countries.
There's got to be a better world system on this and we're going to look for it.
CHATTERLEY: Yes, it's one of the ways that we better tackle climate adaption and mitigation to free up some of this money that's being paid in
interest costs to do some of the things that will help protect people too.
[09:30:00]
CHATTERLEY: David, because I do want to ask a pointed question on this, whether its private sector debt or China, indeed, who's become a big
creditor? Are they open to having a discussion about debt write offs? Or do you think it's just going to be extending the length of the debt, the
maturity of the debt?
MALPASS: The word write-off is a loaded--
CHATTERLEY: I know that's why I asked.
MALPASS: I think what the creditors are discussing and should be discussing is how to meaningfully reduce the debt so that country's debt burdens are
sustainable, that's critical, because then the country can bring in new investment, and actually pay back debt service over a long period of time.
So when you know, in the 1980s, I was heavily involved in the Latin debt crisis. And that got to a point where, where there were options for the
various creditors, so they could have burden sharing that fit their needs. That meant some of them did write-offs, but some of them did long
extensions of the debt.
So those are on the table for the current process. And there'll be many more options that are available to creditors. But that gives a fair burden
sharing and vital in this, as I said, is participation by all of the official and the commercial creditors. And in that, and so far, the private
sector has been standing away from this process.
CHATTERLEY: Yes.
MALPASS: And I think needs to be drawn in earlier and more fully into the process. We'll be trying to do that.
CHATTERLEY: Yes, it's a huge moment to bring all these people together David. And we're very aware of it. I was going to ask you what comes after
June. But I can tell you, you're actively engaged and it's too early for that question. So I'll save it till we speak again, always a pleasure.
David Malpass, the President of the World Bank.
MALPASS: Faster global growth will be needed.
CHATTERLEY: I know.
MALPASS: Nice to talk with you.
CHATTERLEY: As always, thank you, sir. We'll speak soon, more "First Move" after this, stay with us.
(COMMERCIAL BREAK)
[09:35:00]
CHATTERLEY: Welcome back to "First Move"! Lots more to get to this hour including the ChatGPT bot that puts me on the spot, kind of, I'll discuss
my first encounter with Generative AI with Tech Analyst, Dan Ives in just a moment's time. We'll get his take on where the bots are a fad or whether
their future is iron clad?
And from artificial intelligence too, inflation data relevance, new numbers showing prices at the U.S. factory gate rising by a greater than expected
seven tenths of a percent in January month-over-month that's compared to a drop in prices that we saw back in December higher energy costs the big
culprit there.
Inflation data once again going in the opposite direction of what the Federal Reserve wants to see. And the market reaction as you can see, not
well either. The major U.S. averages all trading lower the fear, of course, is that rates or interest rates will have to continue to push higher to
tame those prices. The NASDAQ set to break a three day session winning streak.
In the meantime, France is enduring a fifth day of mass protests this year over pension reform. And the country's unions are already calling for a
wider strike on March 7th; something they say will bring the country to a "Complete standstill".
Melissa Bell joins us now with the details from Paris. Melissa, oh, I can see the crowds building around you. Just for my audience just be clear on
what we're talking about fundamentally, with this pension reform. I believe it's retiring from not 62-years-old but pushing it to 64-years-old in
France. It seems young to me.
MELISSA BELL, CNN CORRESPONDENT: That's right, Julia. And that is proving remarkably controversial here in France. By Friday tomorrow midnight it
will be the last day of parliamentary debate on this measure that Emmanuel Macron had vowed to bring in when he was first elected in 2017.
Once he's had to back down under a protest in the street because of COVID this time, he's decided that 2023 is the year he's going to get this
particular reform through. But as you can see, what we've been seeing is not just difficult parliamentary procedure to progress with more than
20,000 of amendments to this controversial bill already for days and days of protests.
This is the fifth day of protests and of strike across the country since the start of the year over this particular issue, Julia, and it's not over
yet. Today, the numbers are slightly down. Air traffic is a little bit bothered.
We're seeing also difficulties on the trains but the metro lines are running. It is March 7th, when the unions have really vowed to bring the
country to a standstill, once again in the hope that they're going to Emmanuel Macron to back down.
He's vowed Julia that he will see this through. His plan is and it's fairly ambitious when you consider how difficult it's been so far from this tweet.
And in terms of the parliamentary progress is to get this bill on the books by the summer so that this reform could be in place by September, Julia.
CHATTERLEY: Yes, he may not have public opinion on his side. The question is does he have support in Parliament? Melissa, we shall see. Thank you for
joining us there. Well done for speaking over those speakers there. Melissa Bell live from Paris. OK, coming up here on "First Move" presidential
praise, what's behind President Biden's friendly tweet about Tesla CEO Elon Musk, the details next.
(COMMERICAL BREAK)
[09:40:00]
CHATTERLEY: Welcome back to "First Move"! President Biden offering rare praise for Elon Musk after Tesla agreed to open part of its charging
stations to non-Tesla vehicles. The President tweeted in building our EV charging network we have to ensure that as many chargers work for as many
drivers as possible.
To that end, Elon Musk will open a big part of Tesla's network up to all drivers. In response, Musk said thank you. Tesla is happy to support other
EVs via our Supercharger network. That's Musk with his Tesla hat on today.
I think we can show a day after he had his Twitter one on saying he wants to hire his successor as CEO by the end of this year. Joining us now Dan
Ives, he is the Managing Director and Senior Equity Analyst at Wedbush Securities.
Dan, it's always a pleasure. Oh, I have so much to discuss with you. Let's start with Tesla. It shouldn't be rare praise from President Biden, by the
way, but is this important, the acknowledgement perhaps that the charging network and infrastructure for Tesla will be opened up to others, and it's
all additive?
DAN IVES, MANAGING DIRECTOR AND WEDBUSH SECURITIES: Well, it's important to remember, this goes back to the snob at the White House, where Musk then
get the invite, going back to last year. But it just comes down to the Supercharger network is very important, not just for Tesla, but for
overall, EV.
I mean, this green tidal wave that we're seeing play out, we need massive charging station build outs. And I think this is a positive in terms of
what we're seeing in terms of this next leg of this EV build out happening in the United States.
CHATTERLEY: Yes, if you don't know where the charging infrastructure is, you're concerned about charging infrastructure around the country or
wherever you live, and then you're going to be less inclined to buy an EV. It makes perfect sense to me.
In a note, on 6th of February, you said that you thought the Twitter Soap Opera, were sort of slipping into the background, and it was becoming more
of a demand story a particularly Chinese demand story. Let's be clear for Tesla. Does that still hold in light of the tweet from Elon that perhaps
he's going to be the CEO of Twitter until the end of this year? It's sort of dragging on?
IVES: Yes, look Julia. I mean, you've talked about this a lot over the last six months. I mean, clearly, that was a firestorm that we saw late last
year, but I do think Musk tone down some of the rhetoric, read the room.
And we've seen much more focus on Tesla in March 1st, a lot the Investor Day. The price cuts have been a homerun success in China. I mean, we
believe that spur demand significantly right now three of every four Chinese buyers and for EV based on wishing and looking for a Tesla. And I
think that's important. And it's a big part of what we see with the stock this year is that the demand story really coming back, despite the macro.
CHATTERLEY: Wow! Just repeat that statistic again. So according to the surveys that you're doing in China, three out of four potential buyers want
a Tesla, can they also afford it? I guess is another question or is that a moot point?
IVES: Look, I mean, clearly, that's going to be an issue in terms as price points come down. But that's why you see some of these price cuts, price
increases. Tesla is trying to find the equilibrium. But we've seen even the U.S. model was essentially sold out for the quarter.
CHATTERLEY: And provided--
IVES: So that, you know, that's really very important fact that we've seen with that Tesla's story this year.
CHATTERLEY: Yes, and provided I guess you can scale production. It provides meaningful support for margins as well, if you're a Tesla investor looking
at this.
IVES: Well, I think the important thing here and it goes back to the quarter. They're able to do this because of the global scale margins are
much better than anything else in the auto landscape by miles. So that's also why they get treated disruptive technology stocks.
And in our opinion I mean, this is a stock that will continue to move higher based on demand and that margin story holding up. You're starting to
see Musk put that red cape back on in superhero status after really what was you know I think a nightmare situation last year.
CHATTERLEY: Yes, the cape went missing for a while and very quickly on this price target?
IVES: It's a 225 price target - $250 and I think March 1st could be a catalyst down in Austin.
[09:45:00]
CHATTERLEY: OK. We have to talk about AI, and the AI arms race that we've seen. Oh, there we go, we're showing your price target so for our audience
that is interested. Let's talk about the AI arms race and what you've said.
Microsoft is winning and it left Google searching for answers. Literally, it's been interesting. My experiences with these chat bots have also left
me wondering if we're moving too quickly on this.
IVES: Well look, I mean, technology is moving at lightning speed, but ultimately in Redman, when the deal was done with ChatGPT that was the
first shot across the bow. And there's a Game of Thrones battle. Microsoft's clearly winning.
You look at Google last week Russia in that out, that was a black guy. And that's essentially like showing someone a car at a dealership and the
engine doesn't work. But I think we're still in the early stages of where this is all playing out in big tech.
CHATTERLEY: I asked the President of Microsoft when I was in Davos, if this had the potential to be a Google killer. I feel like the addition of this
for Bing, which is the search engine, of course for Microsoft. Just on a relative size basis in terms of Bing versus the Google search function
means they only have upside and Google only really has market share to lose. What do you think Google killer - based on --?
IVES: I think Julia, yes, I think you hit the nail on the head because it's not about Google is going continue to be the search leader. But if things
starts to gain share, you're talking about every percentage point is 2 billion event incremental advertising dollars.
That's what what's happening right now Microsoft gaining more and more share there to expand that AI. And it just speaks to why you know; right
now they're in the left lane of innovation, Microsoft in terms of what they're doing. And then that's really an important thing investors are
focused on.
CHATTERLEY: Yes, so an important catalyst but - stock. What about some of the other players, though? I mean, we can bring in Amazon, we can bring in
Meta, and we can bring in Apple, BYJU. We don't even have to stay in the United States. Everybody is going to be looking to be talking about this as
a catalyst for their share price, irrespective surely of what they've got going on. It's sort of a block chain - movement?
IVES: I would say, OK, there have been other hype cycles, you know, as you've talked. This is not a hype cycle. I mean, this is more of a Game of
Thrones battle, going after 800 billion of opportunity over the coming years.
You saw BYJU come out with their announcement. I think Apple is the one to put a circle around. I mean, they've spent what I believe 8 to 10 billion
on AI technology. I think we're seeing more around that this summer. You got to 2 billion IOS installed base around the world.
I think that's really the big opportunity for Cupertino, but Jazzy and Amazon, they're not just going to watch this from a park bench. I mean,
they're also going to get into this game. And this is significant. There are individuals players like C3, Sound Hound and others, a real market that
could be a game changer.
CHATTERLEY: Dan, 30 seconds, you sound quite excited about the tech sector. And it's been a little bit too some degree in the doldrums given rising
rate concerns and the impact that has just remains a long term play, a good long term play?
IVES: Look, last year was a hard show you know, for tech. But I think we're seeing a much different environment this year better than feared hardware
into software and into no ending. And book the New York City cab driver was bearish on tech stocks this year. And I think that's really the
opportunity, in my opinion for high quality tech.
CHATTERLEY: When your pros-man is telling you that this is a bad buy that's it is a guarantee indicator or even me hey, let's be honest. Dan, always a
pleasure, thank you so much for chatting to us.
IVES: Thanks Julia.
CHATTERLEY: Dan Ives there, Managing Director at Wedbush Securities. OK, stay with CNN coming up; embattled FTX Founder Sam Bankman-Fried is heading
back to court today, with prosecutors accusing him of going online in a way that the government can't track. We'll have all the detail next.
(COMMERCIAL BREAK)
[09:50:00]
CHATTERLEY: Welcome back to "First Move"! On what a difference a year makes in 2022 FTX ads were featured prominently during the Super Bowl. Well, now
the company's Founder Sam Bankman-Fried is in hot water for using a VPN to watch the NFL Final.
He's heading back to court today as prosecutors ask a judge to limit his access to cell phones, computers and the Internet, accusing Bankman-Fried
of finding loopholes in his bail terms. Kara Scannell joins us now with all the details.
Great to have you with us! I have to say I'm not so sure that prosecutors are all that worried about him using a VPN to access the Super Bowl. It's
more about what else he's doing that they can't track perhaps.
KARA SCANNELL, CNN REPORTER: Yes, exactly Julia. I mean, that's the thing. They're concerned that he could access other websites that he could contact
people that he could even transfer crypto currencies, without them being able to detect that.
But it all stems from him using this VPN to watch the Super Bowl while he's on home detention at his parents' house in Palo Alto. Prosecutors point out
that the Super Bowl is pretty easy to watch. You don't have to use a VPN to do it.
But this all brings Bankman-Fried back in court today. And you know he used this VPN just days after appearing before this same judge last week, where
the judge expressed concern over Bankman-Fried's use of encrypted apps and features on apps that allow them to delete messages after their cents.
The judge very concerned about his ability to circumvent any kind of oversight, but now Bankman-Fried in the crosshairs, again, by using the
VPN. So now, you know what prosecutors are saying to the judge is they really want to now significantly restrict his access to just one cell phone
to one computer and both of those being subjected to search if they have any suspicion that he violated these bail terms.
And prosecutors saying that, you know, even though they have tried to work with Bankman-Fried's attorneys, they say that he has shown a motivation to
circumvent the ability for the government to monitor him, and also to find loopholes in these bail terms.
So they're saying that he should be limited to using just SMS texting, so not I-message on his cell phone, for instance, can only use voice calls,
and can only use his Gmail account. They also said he could use Zoom, but just to be in contact with his attorneys to prepare us defense.
But they really want to curtail his ability to use any other communication apps. All of those were on the table last week, prosecutors are saying now
they want that off the table this week. Now, Bankman-Fried's attorneys say that all these actions he has done such as the VPN including reaching out
to some former employees, they say that was all benign. They're asking the judge for much more lenient conditions. But we'll all come down in a court
later this afternoon, Julia.
CHATTERLEY: Yes. And we'll see what happens. And just for those viewers, it might be confused VPN virtual private network that encrypts your activity
on the internet. I just realized we use that acronym a lot, and I'm not sure we explained it. Kara Scannell, great to have you with us thank you
for that!
And finally, from a onetime Crypto Maven to an owl who's left his Haven. Eurasian Eagle Flaco has flown the coup at New York's Central Park Zoo, and
appears to be enjoying his life on the run, should he remain free as a bird Jeanne Moos reports?
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN CORRESPONDENT (voice over): There's a new star in Central Park and he's right out of central casting lately, bird watchers only have
eyes for owls. And some fans on David Barrett's burger blog are saying.
UNIDENTIFIED MALE: Let Flaco be free.
MOOS (voice over): In the beginning of February Flaco escaped from his exhibit at the Central Park Zoo after someone cut through the stainless
steel mesh. His enclosure didn't have room to do much flying and his first night of freedom. The NYPD almost corralled him on a Fifth Avenue sidewalk
while that was a hoot the NYPD tweeted when the owl flew off.
EDMUND BERRY, BIRDER EYEWITNESS: I was worried that it wouldn't be able to fly but it spread its wings and flew to the nearest set of trees.
MOOS (voice over): Zoo officials were most worried that Flaco didn't know how to hunt since he's always had his meals delivered. They tried to learn
them using a white wrapped in a cage hoping he gets trapped in the wiry filaments on top.
[09:55:00]
DAVID BARRET, MANHATTAN BIRD ALERT: The zoo team was rushing with nets to get Flaco but Flaco was too fast.
MOOS (voice over): And now fans are snapping photos of Flaco catching his own dinner.
MOOS (on camera): Barrett's on the menu.
MOOS (voice over): Barrett says the hours gone from zero hunting skills to decent hunting skills.
BARRET: That's just an incredible transformation.
MOOS (voice over): He hangs out in Central Park charming New Yorkers with hooting so low it requires subtitles like other creatures not native to
Central Park, Flaco the Eurasian Eagle Owl has become one of the select few.
BARRET: And they make it. They survive, they thrive and they become stars.
MOOS (voice over): Flaco can make it anywhere Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
CHATTERLEY: I love that story, Freedom for Flaco. I've been bird watching or bird spotting to see if we can see him. Not yet is the answer. And
that's it for the show. "Connect the World" is up next. I'll see you tomorrow.
(COMMERCIAL BREAK)
[10:00:00]
END
