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First Move with Julia Chatterley
Export Falls 7.5 Percent in May, Worse Than Expected; Volvo Unveils All-Electric Sports-Utility Vehicle; Rowan: We Aren't Seeing Slowdown in Demand; PGA Tour to Merge with Saudi-Backing LIV Golf; U.N. says Black Sea Grain Shipping is Slowing Down; Prince Harry Testifies in Historic Legal Battle. Aired 9-10a ET
Aired June 07, 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 all our First Movers around the globe. Great to be back with you this Wednesday and plenty coming up
this hour including another humanitarian crisis tens of thousands of people at risk after a crucial dam collapse is in Russian occupied Southern
Ukraine.
Many still trapped in their homes and hundreds of thousands now without drinking water, and what the President has described as an environmental
catastrophe, the very latest just ahead. Plus teed off started golf is grumbling over the secrecy surrounding a monster sporting tie-up.
Saudi backed LIV Golf is now joining forces with the PGA Tour. The deal also ending what had become a bitter legal and moral let's be clear battle,
we'll have a live report on the latest. And Volvo's show the auto giant rolling out its latest fully electric SUV in Europe. A vehicle they say
closes the pricing gap between EVs and combustion engine cars. Volvo cars CEO Jim Rowan will reveal all later on the show.
And speaking of the road ahead Wall Street struggling to get into first gear, U.S. futures and European stocks little changed after a weaker Asian
handover disappointing Chinese export data not helping its raising new fears about Chinese growth and the demand pull from elsewhere in the world,
details on that just ahead.
And the S&P 500 however begins the session at 9 month highs and close to bull market levels once again. The NASDAQ also at 14 month highs, take a
look at that. Small caps have actually been outperforming us too. Also today the Turkish Lira hitting fresh all-time lows versus the dollar.
You can see that the dollar higher up by around 5.5 percent versus the Turkish Lira. One reason being cited is the lack of dollar reserves
available in Turkey to support the currency what you have to do is you sell dollars and you buy Lira. But if you don't have enough dollars to sell,
well, then you can't support your currency.
Ultimately, what you end up having to do, of course, is raise interest rates. Lots to get to today, as always, but we do begin with the latest
from Ukraine and mass evacuations underway following Tuesday's collapse of a major dam. As I've already mentioned, more than 1500 people forced to
leave their homes in Southern Ukraine.
And fears also rising over an ecological catastrophe too to "President Zelenskyy", he called it an environmental bomb of mass destruction. Fred
Pleitgen has the latest from Kherson.
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: After the catastrophic destruction of the Nova Kakhovka dam, as you can see, there's
still a lot of water here in the City of Kherson. And one of the things that we've been really surprised about is how fast that water has been
rising.
In fact, just yesterday, when we were here we were I'd say about 100, maybe 150 yards in that direction, that entire area is inundated you can't go
there anymore. At the same time the rescue efforts are ongoing to free people from their houses, people where the water rose so quickly that they
couldn't get out.
And you can see police here, the Army's here they have some boats here, and they've been trying to get some people out. Now, this isn't an operation
that was ongoing throughout the entire night. That's what the authorities were telling us that they would not rest but it's also one that was ongoing
under nearly constant shelling.
We were hearing that the entire night. We've been doing it throughout the entire day is up there. Shelling seems to be coming from multiple rocket
launching systems, but also from artillery as well. And as you can see, if you go over here, it's not only people that are being saved from the
buildings here from a lot of animals as well.
There are a lot of cats here in these cages and -- rescuers coming here and then -- to greet them and they picked up from maybe a fence or maybe a
rooftop obviously a lot of those animals also very much in danger as are the people who are still caught in that area. Fred Pleitgen CNN, Kherson,
Ukraine.
CHATTERLEY: And on to concerns too about global growth slowdown potential driven by China new data showing Chinese exports falling by a greater than
expected at 7.5 percent in May. That's actually the first drop since February. The numbers suggest consumers are buying fewer Chinese goods
which might put brakes on China's economic recovery or at least slow it down.
On the other hand, Chinese imports beat expectations last month, although they also fell slightly. Marc Stewart is here with the latest. Well, Marc,
I'm glad you're on picking this and not me. But I think what the overriding messages certainly when I look at this data are China can't rely on trade
to help support economic growth over the coming months.
[09:05:00]
MARC STEWART, CNN CORRESPONDENT: That is certainly one ingredient in this bigger picture, Julia, look, we knew that exports, were going to see some
kind of decline, there has been a weaker appetite, both internationally and domestically. As you said, this was a little bit stronger, a little bit
harsher than initially predicted.
Some economists surveyed by Reuters, were predicting a much smaller decline. But here we are it was just last week that we got some
manufacturing data. And we saw a decline. In fact, one of the effective was actually the worst weakest manufacturing quarter period, since the COVID
lock downs were lifted last December.
So there are challenges, certainly with the import, export market. But we also heard from an analyst who pointed out that right now, China is still
dealing with a weak property market. And as well as another wave of COVID, that is coming across the country and then also, the youth unemployment
still very high.
And that is also slowing things down. That is a group of individuals, the younger demographics, which is supposed to have a lot of buying power. But
right now, Julia, that seems to be very stilted.
CHATTERLEY: This is such a great point, Marc. And I'm glad that you mentioned it, while you and I have talked about this on the show before. I
think the current youth unemployment rate is just over 20 percent. And that's what the Chinese government admit to so you have to wonder whether
it's significantly higher than that.
What about the people that are graduating now taking exams, hoping to come into the workplace and I sort of looking around, and I'm wondering where
they're going to work.
STEWART: Right, a record number of young people are taking this college entrance exam. And unlike the United States, the SAT, unlike the United
States, these students only have one chance to take it and then hopefully have a score that's strong enough to get into the University of their,
choice.
But with so many people taking this a record number of students hoping for higher education, it does pose this question, well, what happens after
graduation with so many highly educated people there? Will there be enough jobs? One concern in the education sphere in China has been a mismatch of
education levels and jobs.
Now, if you're graduating a very highly educated workforce, and there are only so many positions, that is going to create a whole other series of
problems. But nonetheless, this is a very important time in China. There are restrictions about noise there are students who are lighting incense.
They're going to temples to pray for high performance. You know, we do put a big premium on the importance of education, especially with workplace
success, with financial success and longevity. It's interesting that this actually could be, Julia, a potential problem even.
CHATTERLEY: Yes, absolutely. And we do keep our fingers crossed for all of those that are taking these exams, one shot and you're done. Marc, as you
said, you don't get to do it again and again, if you need to offer it for those people. Marc, great to have you thank you. Now just embrace the news
in the United States with the recession risk reduced.
Apparently Goldman Sachs says the probability of a U.S. recession within the next 12 months is now 25 percent. Back in March, they said that
probability was around 35 percent. They're citing two bright spots the deal to lift the debt ceiling and the easing of the banking crisis that we saw
earlier this year. Matt Egan joins us now. Matt, this is the most hotly anticipated recession that seems to be never coming.
MATT EGAN, CNN REPORTER: I agree, Julia, I just really might go down in history that way is the recession that everyone feared that just didn't
actually happen? I mean, here we are in the middle of the year, we are precisely when many economists said that we be in the middle of recession.
And now we have Wall Street's leading investment bank, cutting the risk of a recession, saying there's just a one in four chance over the next 12
months. And they did cite the fact that the banking crisis it might not be over, but it's also not as bad as people feared, and that the debt ceiling
drama that is over and it's not just Goldman Sachs, some leading economists, including Mark Zandi and Justin Wolfers.
They're telling me that the risk of a 2023 recession is fading fast. I think that people got to euphoric, Julia, in early 2021, when the vaccines
were coming out and President Biden was taking office, and they probably got too pessimistic because of high inflation and the war on high inflation
and the truth was probably somewhere in between. But listen, it is great news that the risk of recession does seem to be fading here.
CHATTERLEY: Yes, fingers crossed it to our earlier point, it never comes. Now speaking of the debt ceiling, I know you've got some Intel of sort of
high level conversations that took place in U.S. Congress with them certain CEOs, perhaps saying, let's not do this again, let's not have this showdown
again.
[09:10:00]
EGAN: That's right. Jamie Dimon, perhaps the most powerful CEO on Wall Street. He met with moderate House Democrats yesterday for a closed door
lunch. And during that lunch, I'm told according to a person familiar with the matter, he advocated for abolishing the debt ceiling.
He said, "Get rid of it" and he called the debt ceiling a, "unmitigated disaster" again, that's according to a person familiar with the matter. He
made similar comments Jamie Dimon to reporters afterwards. Now, would Congress actually get rid of the debt ceiling? I don't know.
I mean, we know that some lawmakers say they hate the debt ceiling. But we also know that some of them love the power it gives them to extract
concessions when they're not in the majority. I think Julia, more likely we could hear some discussion around reforming the debt ceiling.
CHATTERLEY: And can we talk about one more high level individual as well. And that's Martha Stewart, a powerful if not booming, voice at times,
slamming hybrid work and concerned that if things carry on like this with people working from home that America is going "down the drain" and is
going to end up like France. We're all going to retire at 64 -- .
EGAN: Yes, -- Stewart is clearly not a fan of this remote work trend. She does not want it to last. She did say that she's fears that America will
"go down the drain". If this trend continues, she questions whether or not people could really be that productive working from home.
I think that there are many working moms and dads who would argue the exact opposite and say they're even more productive at home, especially if they
don't have to do the commute. She also knocked France she said that we could get the United States to go the way of France calling for instead of
"not a very thriving country".
I would push back on that. France is ranked 19th according to the World Bank and the OECD among 38 countries. So right in the middle, just behind
the U.K., ahead of Japan, Italy, South Korea, that's as far as GDP per capita. So I don't really think that she's right or rather.
CHATTERLEY: -- say she looks absolutely fabulous right now, but there will be people thinking that those public's not fabulous. You can choose. Matt
Egan, great to have you thank you.
EGAN: Thank you.
CHATTERLEY: And Pope Francis is in hospital in Rome to undergo surgery for a hernia. The Vatican saying the pontiff will be there for several days as
he recovers. In the latest health concern for the 86 year old Pope he was last hospitalized if you remember back in March with bronchitis.
Barbie Nadeau joins us now from Rome with the latest. Barbie, what more, can you tell us about his health at this moment?
BARBIE NADEAU, CNN CONTRIBUTOR: Well, he's expected to undergo surgery this afternoon for a hernia which is related to surgery had two years ago on his
colon. Now this is the second time this year he's been in the hospital. The second time in two years he's had surgery, abdominal surgery.
So people of course are concerned the Vatican is quick to say they expect a full recovery. But this is an 86 year old man with a lot of health issues.
He's almost completely confined to a wheelchair because of knee problems. He has sciatica he was as you said in the hospital for an infectious
bronchitis in March, if any of us had elderly parents or grandparents the sage would be very worried about them.
And so of course people are concerned. But this isn't must be said not an emergency surgery per se. He was here in this hospital yesterday afternoon
for a quick checkup. He conducted his audience in St. Peter's Square this morning to a full crowd. And then he came here in his car being driven
obviously, not in an ambulance.
And this surgery, of course is he's expected to be here for several days. He's got to be better though. By August, he's expected to go both to
Portugal the first part of the month, and to Mongolia at the last part of the month. So it's very much possible that they're just trying to get him
to be as comfortable as possible as healthy as possible before a grueling summer schedule, Julia.
CHATTERLEY: Yes. And fingers crossed for a full recovery and a swift recovery to our thoughts are with him. Barbie, great to have you thank you.
OK, straight ahead on "First Move", the big reveal Volvo's latest electric SUV fresh out of the boxes the company goes up for a combustion engine free
future.
And a grim warning about world hunger millions risk going without food. If a crucial deal to export Ukrainian grain fails. That's later in the show.
Stay with us.
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[09:15:00]
CHATTERLEY: Welcome back to "First Move" and unveil today here on "First Move", you're taking a first look at Volvo's new fully electric SUV. It
costs around $30,000. The EX30 is price to compete with combustion engine equivalents. The company expects this to be one of its best-selling models
as it moves towards an all-electric lineup by 2030.
And on Monday, Volvo posted a 31 percent rise in sales for May compared to a year ago. It's another sign perhaps automakers are recovering from the
impact of COVID lock downs in China chip shortages and other supply chain issues. Jim Rowan is CEO and President of Volvo cars.
And he joins us now from the EX30 launch event in Milan, Jim, fantastic to have you on the show. Talk us through the new launch. What does this
vehicle offer potential customers?
JIM ROWAN, CEO AND PRESIDENT OF VOLVO CARS: Right. Thanks for the invitation. Yes, great to talk to you guys. So the EX30 is going to be a
fantastic addition to the Volvo portfolio. It's a small car with fantastic proportions, we push the wheels to have small overhangs on both sides and
maximize the use of the cabin space 480 kilometer range.
We're going to offer this as well with a twin motor or a single motor. We will offer two different types of batteries and technologies and two
different types of battery sizes, will offer it in five different colors and will offer four different interiors. So this is really going to be a
car that allows you to choose exactly what's right for you.
If you don't need range, you can have the smaller battery, if you don't need power, you can have the single motor. If you do want that bigger range
or that more acceleration, then of course you can choose the bigger battery sizes as well. And we think this also will talk to a different customer
than we currently talk to right now.
And will help us expand our customer base will offer this and subscription based ownership as well as outright purchase. Again, that's just going to
make it much easier for people to come into the brand. And I think we will start to see this pick up very quickly as one of our top selling models.
CHATTERLEY: OK -- .
ROWAN: -- apart towards electrification journey.
CHATTERLEY: OK, what if I want it all? What if I want maximum range, maximum speed? What's it going to cost me, Jim, on the road?
ROWAN: You can have maximum range and you can have maximum speed, we haven't released the place. And right now we're going to release that later
today. But let's just say it's going to be very competitively priced, and it will fit well within the available portfolio or price.
And so the EX30 is a smallest SUV, of course we have the 40 the C40, the XC60. Well we just announced that EX90, which is the biggest in the range
as well. And we think this plays a really important part in our portfolio as we expand towards full electrification by 2030.
CHATTERLEY: Yes, are we at parity economics now? Jim, to your point, and I know that the sort of messaging around this has been looked at is
comparable, and that's the aim to have it comparable to combustion engines for most people I think this is how we unlock greater adoption that of
course and taking out some of the anxiety over the capacity or the ability to be able to charge this when you need it. Just address those two things
for me.
[09:20:00]
Are we at parity economics? How long does the payback take on this vehicle specifically?
ROWAN: Yes, so you got to look at the technology itself.
CHATTERLEY: Of course.
ROWAN: So electrification, electric notification of mobility, it's simply a bit of technology, there's less noise, there's less vibration, there's much
less service and costs for the customer. So if you look at that total cost of ownership, and many parts of the world driving an electric mile, versus
petrol mile is much cheaper, as well.
And so for us, that technology and the benefit that you get from that technology, even before we start to talk about climate neutrality and the
benefits to the planet, as you get to the cost questions, when cost neutrality, we're getting extremely close now, new technologies within
batteries, new technologies within inverter modules, new technology within motors and electric motors, as all driving the efficiency.
And that is helping us get over longer distances and the same chemistry of batteries or with LFP technology, which will offer in the New Year, it's
not the first time I've ever offered LFP technology, which is a much more cost effective battery propulsion system that gets us really close to that
place pilot to that -- you alluded to.
CHATTERLEY: Yes, sir, do think this is the key to accelerate adoption. Let's talk about charging too what we've heard in the last month or so is
obviously not necessarily with this vehicle, but more broadly with electric vehicle adoption, Ford and Tesla tying up and Tesla providing access to
their super charges for Ford vehicle owners.
Jim, do you see something like that potentially, for Volvo? Or do you think you can go it alone on the charging infrastructure, because I think for
Ford, this has been perceived as a real boon?
ROWAN: Yes, we already have some plastic charging infrastructure offerings to our customers globally. I think the Inflation Reduction Act will save
towards building out that infrastructure, obviously, especially in North America, where you see a lot of investment now going into that charging
infrastructure.
And I think you're just going to see that accelerate, we're starting to see the same thing happen, of course, in Europe, and of course in the big
markets in Asia. And the technology is also changing within that. So these high power charging charges will allow you to charge the car much more
quickly than before, as well.
And all of this combined will have a positive impact, let's say, and reducing those friction factors towards full scale adoption of
electrification. And we see that in many markets that we see already, for example, and Volvo, we already have about 12 to 15 markets now that I've
got 85 percent of every car that we sell as either a full bed, or to plug in electric hybrid.
And that change has happened really just in the last year or so. We see a lot more markets now approaching the halfway point of every car that we
sold. In fact, in Norway, 85 percent of cars that we sell are now fully electric. In Sweden, it's almost 40 percent. And in the Netherlands, it's
43 percent.
So we're really starting to see it accelerate, and I think part of the acceleration profile as this simplicity of charging and charging
infrastructure.
CHATTERLEY: Yes, taking out some of that anxiety. I think some of the other things we've seen your competitors do, though, is cut prices around the
world. Jim, can you be resistant to that you're getting the pricing right and don't need to adjust lower to create that sort of lift that further
lift to demand?
ROWAN: Well, so far, you've got to look at demand. So we've really looked at the underlying demand for our products. And the online demand for a
product has remained increasing, you know, incredibly strong plug in electric hybrids, but more so even in a fuel -- . And we see that globally.
Now, you know, we keep a really close eye on that because of rising inflation, rising energy costs. Of course, there's always suspected that
you start to see some change in consumer sentiment. But when we look at the demand for products globally, we don't see high order cancellations, and we
don't see a slowdown and all that, empty.
And so that high backlog of all the demand for Volvo products. That may be because we're in the premium sector, and the customers can afford those
price rises maybe a little bit more readily. But whatever the reason for that we don't see a slowdown in demand.
And I think we ought to have sales, I think we ought to your shareholders and stakeholders that we stay disciplined on our pricing policies. And so
at this point in time, we don't see the need for us to be reducing prices on a global basis.
CHATTERLEY: I've got a sort of off the wall question to ask you. But it's some conversation that I'm having with just about every CEO and manager of
Business at the moment and that's the impact of artificial intelligence. Here in the United States in the space of two months, we've gone from,
look, we need a pause on development of this to AI Armageddon.
Jim, how do you view artificial intelligence? How much research are you doing? How much work are you putting into it? And what do we need to
understand about the impact on your business be it your people be it the technology?
[09:25:00]
ROWAN: Yes, so if you look at that's one of the really interesting things. In fact, if you look at it automotive industry right now is going through a
double headed change if you will a transition on one side you've got the technology change and the other side you've got this commercial change
where you're going direct to the customer and direct to customer engagement.
But we think with the technology side, which is really the question, we're seeing a huge amount of product. So there's a huge amount of investment
that we're making in batteries, battery technology, and electrical propulsion, and inverter modules, and software and sensors and cameras.
And of course, in silicon, which is at the very base of core compute technology added to that and an accelerator to do that, as of course,
artificial intelligence, and how can you adopt artificial intelligence in order to make your technology even more powerful?
Yes, of course, we invest in that, yes, of course, we're looking at that very, very carefully to see the points of design, the points of
development, the points were of benefit, if you will to the customer, where we can then sell that additional technology as an accelerator to change, if
you will.
So we're working on it as still -- is for most people, and you need to really figure out where to add most value within your company. And that's
what we're looking at right now.
CHATTERLEY: It such an exciting time, to your point you're going through this transition to new forms of cars and technologies, and also have to
deal with the overlay of AI and technologies like it too. And a final question, because you mentioned it.
Talk to me about what you're thinking with regards the dangers perhaps of increasing our reliance on the underlying elements and rare earth minerals
required for some of these renewable technologies, batteries is a great example of them. Its countries like Chile, Argentina, China, of course, a
perhaps your ownership helps their unstable ones like Congo, for example.
Are you concerned that we're sort of shifting reliance on oil and gas nations and countries for perhaps other alliances, it makes them very
powerful. And it's also makes the supply chain perhaps very vulnerable?
ROWAN: Yes, I think when you look at where we play, so we are not the biggest automotive manufacturer, but our volumes are not as you know, as
high as some of our competitors. We play in the premium end of the market, and therefore, we're going to stay focused on that. And we've remained
disciplined and making sure that we sell premium, the EX30 as a premium car, even though it's a smaller car.
And the volume for Volvo cars means that we don't come up against some of those challenges that you that you allude to. Now we're looking at lots of
those different technologies, also lots of different materials, if you will, and how we then trade trust, track and trace those different take
materials using block chain technologies.
I'm pretty comfortable and with the way in which we are managing our supply chain, the way in which we measure our supply chain, the way in which we
govern our supply chain, that we're doing the right things. And that's not to say we can get complacent, of course, as things change.
But as it stands today, I'm confident that we are doing the right things in terms of making sure we know where those materials are coming from? And how
we process those materials to get them into the final product, such as bathrooms, as you alluded to?
CHATTERLEY: Oh, my goodness, regular viewers will know you're not allowed to mention block chain technology in the final answer of interviews,
because that's a whole another conversation started. Jim, we have to reconvene and not just on that. Congratulations on the launch and thank you
for your time today.
Jim Rowan there, the CEO and President of Volvo cars, thank you, sir. OK, coming up here on "First Move", a dramatic U turn in the world of golf.
What's behind the staying tie-up between the PGA Tour and LIV Golf? I give you on gas money, next.
(COMMERCIAL BREAK)
[09:30:00]
CHATTERLEY: Welcome back to "First Move". U.S. Secretary of State Antony Blinken has met with the Saudi Crown Prince Mohammed bin Salman in Jeddah.
The State Department telling CNN both men affirmed a shared commitment to "Stability, security and prosperity" across the Middle East and beyond.
The meeting comes at a time when U.S. Saudi relations remain strained. They of course dip to a low point after the murder of journalist Jamal Khashoggi
in 2018. U.S. intelligence sees his killing was personally approved by the Crown Prince. For more we're joined by CNN International Diplomatic Editor,
Nic Robertson, Nic, not just that, of course, that feels like a long time ago now.
We've got Israel to discuss relations with Iran. Just in the last week, the Saudis tightening oil supply further, there was much to discuss in that one
hour 40 meeting.
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes, there was and the oil supplies, obviously, by two ways for the United States. And Secretary
Blinken's interest next year is an election year in the United States, a last thing President Biden needs. And of course, he's the one that sort of
created a lot of the tension with Crown Prince Mohammed bin Salman.
Because of what he's been saying about Saudis, human rights abuses and how it needs to sort of correct course on that. A high fuel price at the gas
pump in the United States is not a good formula for a U.S. president running for a second term. But of course, as well, high oil prices, because
Saudi reduces its output, helps Russia fund its war in Ukraine.
And that, of course, is an important topic for president of a secular state Antony Blinken to address with the Crown Prince. The Crown Prince sees
himself as a big diplomat. He sees himself as somebody who can help establish a peace between Ukraine and Russia, although I don't think even
he thinks he can do it in the short term.
But yes, for Secretary of State Antony Blinken, there's a huge amount to talk about, talking about ISIS, talking about Sudan, and talking about
Yemen. It's the Yemen and Sudan really where United States and Saudi have had sort of good commonality over the past few months. And I think that's
sort of something Secretary Blinken wants to build on.
CHATTERLEY: Certainly, Nic Robertson, great to have you with us. Thank you for joining us from London. And the surprising new alliance in the world of
golf too and of course, it's tied to the previous story. It's less than 24 hours since an announcement that stunned the sporting world.
The controversial Saudi backed live golf joining forces with the long established PGA Tour and DP World Tour. It's been billed as a moment that
changes the game all over again. The new partners hadn't till now been at loggerheads. So it's a deeply divided sport now reunited.
Amanda Davies joins us now on this. Amanda, there will be and there are clearly because they're expressing their views quite candidly on Twitter
and across social media. For the players that didn't decide a year ago to join LIV Golf and remained and sort of fought that battle they could have
signed up a year ago and next year, have it all out.
AMANDA DAVIES, CNN WORLD SPORT: Yes, I think it's fair to say at the moment, this partnership should be looked at as a divisive union because up
to this point, there's been no middle way at all has there. You have been in with live goals and you have been out. So when the Saudi backed league
was announced it was seen it has been completely seen and believed to be a disrupter to the sport.
[09:35:00]
And it's not just been talked about in sporting terms, but also in moral in ethical terms. And that is the language that has been used over the last
12, 18 months by players and also organizers of the old establishment the likes of the PGA Tour and the DP World Tour, as you mentioned.
But this really did come as a bolt from the blue; we know it's a commercial partnership. A lot of the details we're still waiting on. You mentioned the
players who gave up, decided not to take the huge sums of money to join the LIV Golf Tour. But of course, many did. Perhaps surprised, not
surprisingly, they the likes of Bryson DeChambeau are seeing this as a monumental day for golf.
(BEGIN VIDEO CLIP)
BRYSON DECHAMBEAU, LIV GOLFER: This is the best thing that could ever happen for the game of golf. And I'm extremely proud to be a part of that
because of the fact that the fans are going to get what they want. The players are going to experience something a little different, all new on
the PGA Tour side, but I truly believe in the end the game of golf wins in this scenario.
(END VIDEO CLIP)
DAVIES: He would say that because I mean Bryson DeChambeau is somebody who this has been a win-win scenario. But we talk about the people who have
lost out. And a lot of the focus now is on the PGA Tour Commissioner, Jay Monahan. He is one of those who very emotively talked about the moral
issues of players who were turning their back on the old tradition of golf to take the money from Saudi Arabia.
And he has seemingly spun not on a dime or perhaps a few million and is now very much the face of this, talking about what a great future it is going
to be for golf. And there's a lot of players feeling really, really let down. They were blindsided by this decision.
A lot of them are finding out on Twitter, as they're in Canada, preparing to take part in a competition and perhaps not surprisingly, a few of them
are calling for Jay Monahan's resignation.
(BEGIN VIDEO CLIP)
JOHNSON WAGNER, 3-TIME PGA TOUR WINNER: It was contentious. There were many moments where certain players were calling for new leadership at the PGA
Tour and even got a couple standing ovations. There was a lot of anger in that room from players that feeling like they can't trust what the
leadership of the PGA Tour says anymore.
UNIDENTIFIED MALE: Did any players called Jay hypocrite in the meeting?
GEOFF OGLIVY, 2006 U.S. OPEN CHAMPION: It was mentioned, yes. And he took it, he said, yes, he took it for sure.
(END VIDEO CLIP)
DAVIES: There's no doubt a charm offensive needed from Jay Monahan and a fair few of the top leadership in golf. Rory McIlroy is the man who has
been seen as the moral compass of golf over the last 12 months having decided not to join the live Golf Tour. He is the defending champion at
this event in Canada this week.
It is just a year, this week since the launch of the live golf series. And he is expected to address the media for the first time in actually within
the next hour or so. So it'll be fascinating to see what he has to say.
CHATTERLEY: Yes, fascinating. There are still going to be people that are saying that morals were set aside here for money, money over morals. We'll
see what he says. Amanda Davies, thank you for that. Now, some news about CNN and Chris Licht, the Chairman and CEO is leaving the company after
about a year on the job.
Warner Bros. Discovery CEO David Zaslav announced the news this morning. He says a wide search will be conducted internally and externally for a new
leader. We're back after this. Stay with us.
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[09:40:00]
CHATTERLEY: Welcome back to "First Move". The black sea grain initiative which has been crucial in tackling global food crisis resulting from the
war in Ukraine could be ending. The deal established last summer has been extended three times so far.
But this week, Russia said if its demands are not met, it sees no prospect for extending the deal beyond the middle of July. Moscow's demand well, the
reopening of a pipeline that carries Russian ammonia to Ukrainian port for shipping. Grain exports have already fallen sharply.
33 ships sailed from Ukrainian ports last month, that's actually half as many as we saw sailing back in April. The Ukraine, just to remind you is a
major grain exporter. It accounts for around 10 percent of the world's supply of wheat 15 percent of the corn market and 13 percent of world
barley.
Now the charity, The Hunger Project says if the Grain Deal fails, it will put millions of people at risk of severe hunger or famine. The U.N.
estimates that even before the war, up to 10 percent of the world's population was threatened by hunger.
Joining us now CEO of The Hunger Project, Tim Prewitt. Tim, thank you so much for making time for us. As we were just describing there, the
Russians, at least at this stage are threatening the end of the deal. Just describe to us given the people that you serve and help what this might
mean.
TIM PREWITT, CEO, THE HUNGER PROJECT: Thanks for having me. Yes, every few months, right when this deal is renegotiated millions of people are
literally on the edge of their seats, they do not know what is going to happen with the price of food. Now we saw the effectiveness of the deal
when Grain Export prices dropped 18 percent. And that was felt in countries throughout the world, especially in Africa.
Now, if prices stay high, that means people simply buy less food and if people live on $2 a day or less, and they spend more than 70 percent of
their income on food, that means going with less food. And that means more hunger and malnutrition.
CHATTERLEY: Yes, it's a basic calculation. You buy less food, if you have less money, or the prices are that much higher. It just goes less far. I
mentioned that the shipments have already dramatically reduced Tim, what impact has that already had? And how is it sort of changing who you serve
and how you serve?
We spoke to the World Food Program Chief several months ago and he said we're going to have having to make really tough decisions over sort of whom
we give food to and who we don't.
PREWITT: Absolutely. Well, at the Hunger Project our emphasis is on long term resilience to shocks such as this, not only the price of food, but
also climate shocks and other events. So what we emphasize in our work, which helps to steady the price of food, is growing local.
Growing local, can reduce dependence on these external prices and get more healthy and nutritious food, even fresher food to people that need it. Now
in terms of what we're seeing, definitely we're seeing impact already.
If you look at the history of this Grain Deal and what's happened every time that markets have to pause and we see the flow of grain stop. We see
an immediate response from the market and the prices go up. This is especially true in wheat, corn and oil essentials for people to eat.
CHATTERLEY: I love your point about resilience so, Tim and the work that you do at The Hunger Project to try and shift some of that production and
supply more locally.
[09:45:00]
Obviously, we don't want to sort of reduce the amount of support that's provided to Ukrainian farmers in particular. But to what extent over the
last sort of 60 months since the wars began, have you been able to substitute away from Ukrainian grain just to try and add some stability to
the food that you're providing?
PREWITT: Thank you. Well, The Hunger Project, what we see is the resilience and the commitment of people that are living with hunger and poverty to
respond to this. They're taking the initiative to grow more food. We are there as their partners, and we're seeing them invest more in their smaller
local farms, we're seeing them do more.
In Uganda last year, I visited a farm that was just growing pumpkins, and they were managed to expand their production and feed many more people with
pumpkins and even processed it to a pumpkin pace that can be used throughout the region.
CHATTERLEY: Wow. So it's not even just necessarily about diversifying in terms of product, it's perhaps allowing them to produce more so that they
can sell it.
PREWITT: Absolutely. And this is an opportunity; we have an opportunity to grow more food locally, which we know is healthier, nutritious for people.
CHATTERLEY: If it came down to it, and I know it's sort of bringing the geopolitics into it, which is clearly not your business. Would you be
pushing for Russia to be able to continue its ammonia exports if it keeps this deal together? Tim, you know, what the sort of consequences are better
than most?
PREWITT: Yes, no question. I mean, that ammonia from Russia is also a critical piece of this, this puzzle, as its part of fertilizer. And
fertilizer, when we lose fertilizer, there's an, there's a later effect. Farmers buy less fertilizer, and then they end up growing less, and then
the cycle continues have greater dependence on those imports, so in an ideal world, free flow of goods from Russia and Ukraine, including that
fertilizer and ammonia.
CHATTERLEY: Yes, it's not as simple as suggesting that all products should be sanctioned. In Russia, there were carve outs for grain. And this one
needs to perhaps be considered as such, in order to unlock this deal as complicated as it is. Tim, for people watching, what can they do to help?
How do they help support the Hunger Project?
PREWITT: Well, thanks for tuning in. First of all, I think greater awareness on our food systems and how they impact people is absolutely
critical. Our food systems have become incredibly complex, but at its root, it's about people growing food locally. And that's what I'd like to
emphasize is the more food we can grow local, not only in Sub Saharan Africa and Asia, but here in the United States, the more we can grow
locally, the more healthy our food systems are.
CHATTERLEY: And what about waste? Because this is my other bag, Tim, I try and reduce as much waste as possible because we throw too much away.
PREWITT: Absolutely. And there's two sides of the coin here in the United States, we lose a lot with our restaurants, our grocery stores, our food
systems, like big hospitals and schools, a lot is thrown away. We're working on it. I've seen major policy initiatives come around that are
helping that.
In Sub Saharan Africa, there's another problem and that is they lose food before it gets to the consumer. It's called pre harvest loss or just post-
harvest loss, where they're not getting all of the food into the hands of the consumers.
Either way, if you take up all that food loss and food waste, and you calculate the impact on the environment, it would be as big as a carbon
emitter as the third largest country in the world behind the U.S. and China. So that is a serious issue, not only for our, our food and our
communities, also for our environment.
CHATTERLEY: Yes, Tim fantastic to get your insight today and fingers crossed this deal holds, the CEO of The Hunger Project. Thank you for the
work you and your team are doing.
PREWITT: Thank you.
CHATTERLEY: OK, stay with CNN, coming up, Prince Harry back on the witness stand for a second day. We have the latest from London's high court next.
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[09:50:00]
CHATTERLEY: Welcome back to "First Move" where we've got one eye on stocks and another on the skyline at least here in New York. This is what it looks
like outside our New York City studio. The air quality is in one word, abysmal as smoke from out of control Canadian wildfires brose, blows across
the Northeast of the United States.
This was the view above New York's Yankee Stadium Tuesday evening. A thick haze darkening the skies, the air smelling strongly of smoke to New York in
fact had the worst air pollution of any city in the world. At one point yesterday, get those masks back on, yes, I said it.
And no investment haze at least on Wall Street U.S. stocks powering ahead in early trade. Now we're out to first gear after the S&P 500 hit nine
month highs on Tuesday, Tech among the early session winners. And in the meantime Coinbase shares is trying to bounce back after Tuesday's 12
percent tumble, shares falling after U.S. officials sued the crypto exchange for violating securities laws.
The U.S. alleging the company acted as an unregistered broker and other major crypto exchange Binance in serious legal -- too. Report said the SEC,
the Securities and Exchange Commission is asking for an emergency order to freeze the assets of Binance U.S. after filing suit against the entire
exchange on Monday.
And Prince Harry is back in the High Court love London being crossed examined in his second and final day on the witness stand. The Prince is
suing Britain's Mirror Group of Newspapers alleging their journalists hacked his phone to gather information about his life between 1996 and
2009.
It's the culmination of a year's long fight against the tabloids. Max Foster joins us with the latest. Max, what happened today when he was on
the stand? What did we hear?
MAX FOSTER, CNN LONDON CORRESPONDENT: It was a bit of a continuation, it did get really awkward at points because a lot of these stories are tabloid
stories and they are, you know, salacious in their detail. So he was asked today about his night out at a lap dancing club and how his girlfriend at
the time Chelsea Davy had a big argument about him with him about that, obviously not the detail of the story, which is central to this case, but
how that story got out.
How he convinced that it came out from some form of phone hacking. But what you had was the Mirror lawyer going through each and every story suggesting
that there could have been a different source to that story, which wasn't through phone hacking.
So that was that how things sort of progressed throughout this and it got increasingly more lively, if you'd like as it got towards the end of the
cross examination. Harry has a much broader point here is that a lot of these stories were very suspicious.
He had a lot of experience of these types of stories and he felt they were suspicious, and they whiffed of hacking. It will be for the justice side,
whether or not any evidence was really proved about that hacking and whether anything could be upheld against the mirror, they absolutely deny
all of these charges.
The cross examination is now over. And now reporters who are accused of publishing hacking stories are being cross examined by Harry's lawyer. So
the case does continue. It's a test case there would have been big repercussions because if Harry wins this part of the case, it would suggest
that there are many other cases to come for these big publishers.
CHATTERLEY: Yes, it's interesting. They seem to be going for maximum embarrassment in terms of picking through the stories too. But I saw that
he was also asked if he'd be glad if he weren't hacked sort of trying to sort of play both sides here from the lawyers asking him whether you know
if these were stories that came out as a result of something else someone else leaking.
[09:55:00]
Interesting sort of question to ask him, and I thought he handled it really well. How's the press covering it, Max?
FOSTER: Well, you know, there are so many different elements to this, so all the different UK media taking different angles, really. You know, there
is this much broader picture, which is his wider battle against the tabloid media. So there are three different cases going on which consume all the
different tabloids, and that's the bigger picture and how he suffered as a child.
And I think there's no doubt that he did suffer as a child. And he wants some sort of justice for that and some reform to the tabloid media. Whether
or not he wins this case, is one thing. I think if he can bring a lot of attention to the techniques that the tabloid media have used in the past,
if not in reference to this case, then maybe his job is done. But he highlights the dishonesty of the trade if you like.
CHATTERLEY: Yes, it's going to be fascinating to see how this ends to your point with far bigger implications if it goes in his way, his way. Max,
great to have you, thank you, Max Foster there and that's it for the show. "Connect the World" with Becky Anderson is up next. I'll see you tomorrow.
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