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First Move with Julia Chatterley

Ukrainian Vehicle seen near "Dragon's Teeth" Line; New Changes Accuse Trump of Trying to get Mar-a-Lago Security Video Deleted; Skea: We Need to Look at Solutions in Cities; Wall Street Higher Amid Strong Profits, Good Price Data; Gruen: This is a New Wave of Technology; Biden Announces New Action to Address Extreme Heat. Aired 9-10a ET

Aired July 28, 2023 - 09:00   ET




JULIA CHATTERLEY, CNN HOST, FIRST MOVE: A warm welcome to "First Move" great to have you with us and TGIF still lots to get to before we close out

the week after 13 rises in a row. The DOW breaks its winning streak Intel shows big tech earnings remain chipper and cheap (ph).

And in a surprise move the Bank of Japan makes an important policy tweak, call it a BOJ. And -- for me, the Central Bank headed by its brand new

chairman has made an unexpected adjustment to its ultra-loose monetary policy officials leaving rates unchanged at rock bottom levels but allowing

bond yields to fluctuate within a wider band.

You can read this as perhaps opening the door to higher yields and therefore a tightening of policy. Now it's all minor moves for now. But

it's also being seen as a potential prelude to at some point a move higher in base rates and that was enough to cause a rally in the Japanese Yen and

see pressure on Japanese stocks the NIKKEI off by almost half a percent in the session Friday.

Turning to China now too and a strong finish as you can see there Bloomberg reporting Beijing is looking for ways to boost stock performance and at the

same time boost investor confidence. It certainly worked today.

Turning now to U.S. investor confidence Wall Street looking to end the week higher as you can see there with good earnings from chip giant Intel, as I

mentioned, helping propel NASDAQ futures forward Intel back in the black and returning, returning to profitability after two straight quarterly


And speaking of losses, the DOW sunk Thursday ending its longest winning streak in more than 30 years. So close yet so far, we've gone from

recession risk to no recession to perhaps the risk of a reacceleration in growth and perhaps therefore, more work for the Federal Reserve to do and I

think that kicked in for investor sentiment yesterday.

Inflation trends however, still heading in the right direction, one of the Fed's preferred measures of inflation, the core PCE rate as it's known

easing to 4.1 percent year-over-year that of course, is still firmly above their inflationary targets, but it is a touch weaker than expected and

almost the lowest rate in two years.

We'll talk about that later. But for now, we do begin in Ukraine where the Ukrainian counteroffensive appears to be escalating. New video appears to

show troops recapturing another village in the southeast you can see on this map and this footage also showing a Ukrainian military vehicle

reaching Russia's critical defensive line known as "Dragon's Teeth".

Salma Abdelaziz joins us now. Salma it does follow just a day after a CNN got official word from U.S. officials confirming that they were committing

more troops to the south. Tie that in with what we appear to be seeing now and hearing from the Ukrainians themselves.

SALMA ABDELAZIZ, CNN CORRESPONDENT: Yes, so today, Ukraine, seeing it's been able to consolidate gains in the south regains a village in the

Donetsk region and even repelled attacks from Russian forces in the east of the country. But still, these are relatively minor modest gains in a month

long counter offensive that has yet to see any major victories.

Major victory I mean, actually piercing through defensive positions actually piercing through and able to cut supply lines for Moscow's troops.

You can see the length of that frontline in the map, it is absolutely an enormous task for Ukraine to staff fight in man.

All of those hundreds of miles of frontline of battlefield where Russian forces have of course been digging in for months. I want to give you an

example of the types of obstacles that Ukrainian forces are facing. Let's pull up that video again that you mentioned, of the "Dragon's Teeth"

defensive lines.

This is material video that was shot in just one area to the south of the country near Zaporizhzhia region, where you see again, those defensive

lines what those are they are pyramids of rebar in concrete. Sometimes they're three rows deep and they go for hundreds of miles.

And you can see that tank attempting to go through what is also a ditch that's been dug there by Russian forces specifically for the purposes of

stopping tanks from going through. And that's just one of the many methods that Moscow's forces have used have applied in order to try to slow any

gains by Ukrainian troops.

In other parts of the battlefield Ukrainian forces have described it as a hellscape saying that they're first shelled by Russia artillery and then

Russian helicopters come in and bomb their positions that keeps Kyiv's troops far enough away from Moscow's positions that they're too far at

times for even artillery to reach.


So what is Ukraine solution? What is Ukraine doing? Well, what Ukraine is doing right now with its military forces and need of equipment is trying to

find weaknesses. I'll give you the example of the area of Tumak (ph). This is an area to the south.

It is a critical supply route that connects to Crimea that Russia uses as a headquarters essentially on those front lines. And Ukraine has been

pummeling that trying to again, soften Russian positions, weaken their supply chains, and take out storage depots, weapons storage depots if they


But again, this is going to take time slow and steady. Ukraine has admitted they are behind schedule, but they say look, what do you expect, just as we

were preparing for months, so was Russia.

CHATTERLEY: Yes, it's an important explanation, I think, a visual explanation of why it's taking so long to push forward. Salma, thank you,

interesting report there Salma Abdelaziz!

Now, further intelligence report reveals how China has become a key ally of Russia. The report compiled by the Office of the Director of National

Intelligence, stated that China "Has become an increasingly important buttress for Russia in its war effort".

The report reveals how Chinese state owned defense companies have provided Russia with various war technologies, despite Western sanctions. Natasha

Bertrand is at the Pentagon for us. Natasha, can you give us any sense of what technologies and what equipment we're talking about here?

NATASHA BERTRAND, CNN NATIONAL SECURITY REPORTER: Yes Julia, a really significant report here from the Director of National Intelligence, and it

is unclassified. But it really provides a window into what the U.S. believes that China is doing.

Now, according to this report, China, as of March had provided the Russians with over $12 million worth of drones and drone equipment, they have also

provided according to the intelligence assessment Chinese state owned, defense companies have provided Russian defense companies with a lot of

dual use technology, and that includes navigation equipment, jamming technology, as well as fighter jet parts.

So obviously, things that Russia could really use in its war in Ukraine, especially as sanctions have really dug into Moscow's ability to produce

its own equipment for the war. So China really ramping up here, its support in terms of non-lethal equipment to the Russians.

The U.S. has not necessarily seen at this point that they are providing weaponry to the Russians. But this kind of technology, as you said, has led

to this assessment by the Director of National Intelligence that China "Has become an increasingly important buttress to Russia's war efforts".

Now, the amount of semiconductors that China is also providing to Russia things like chips that can be used in Russian defense technology that has

also soared since 2021 the rates in which the Chinese companies are shipping these to the Russians.

The report also says that the U.S. believes that China is helping Russia to evade many of the Western sanctions that have been imposed since the war in

Ukraine began. And they cannot tell just how much the Chinese are trying to interfere in the U.S.'s ability to monitor those export control measures

that they have placed on the Russians.

But they do believe that these Chinese companies are helping the Russians to evade the sanctions that were very purposefully imposed, to try to

diminish Russia's war chest. So a really significant report here that seems to belie China's repeated denials that it is providing any kind of support

for Russia's war in Ukraine.

However, we did receive a statement from the Chinese Embassy in Washington D.C., denying many parts of this intelligence report but notably, denying

something that the report also did not necessarily accuse them of which is selling weapons to the Russians.

Their response says "China does not sell weapons to parties involved in the Ukraine crisis and prudently handles the export of dual use items in

accordance with laws and regulations". It continues to say China, Russia, economic and trade cooperation is completely aboveboard.

It does not target any third party and shall be free from disruption or coercion by any third party. So the Chinese, not necessarily giving a full

throated denial of this, but obviously, this is something that is going to continue to be a major irritant in the U.S. China relationship, Julia.

CHATTERLEY: Natasha Bertrand, thank you so much for that report. And later in the show, we're going to be talking to the CEO of Fortem Technologies

about the changing face of modern warfare and specifically the use of drones very relevant to both of those reports.

All right, let's move on. Meanwhile, President Putin thanking North Korea for supporting Russia's war in Ukraine, the comments came in his speech to

North Korean officials according to state media. The regime of Kim Jong-Un has been celebrating the 70th anniversary of the Korean War Armistice with

a flamboyant military parade. Marc Stewart has more.


MARC STEWART, CNN CORRESPONDENT: This parade is very much in line with North Korea's past efforts to present a symbolic show of force within the

nation and beyond. The military arsenal included two models of intercontinental ballistic missiles.

This includes the Wasson 18, which according to analysts likely has the range to target the entire Mainland United States. In addition, according

to state media, two types of drones flew overhead one described as a strategic reconnaissance drone, the other as a multipurpose attack drone.

This parade comes as North Korea has hosted delegates from both China and Russia and on the topic of Russia; Russian President Vladimir Putin

presented a speech to North Korean officials. According to state media, he acknowledged North Korea's firm support for Russia's war in Ukraine,

suggesting it emboldened the two countries determination to deal with the West.

As we've reported in the past, U.S. officials have claimed North Korea has given Russia rockets and artillery. Tension in the region has been high in

recent days as an American submarine with nuclear capability has been in the waters of South Korea and North Korea test fired its Wasson 18 ICBM for

the third time this year. This was on July 12th, Marc Stewart, CNN, Tokyo.

CHATTERLEY: Two days after soldiers declared a military coup in Niger, the general who led the takeover appeared on state TV and declared himself the

President of a National Council for the Preservation of the Fatherland. It's believed Mohamed Bazoum the elected President is still being held in

his residence.

Larry Madowo joins us now from Nairobi. Larry, this was one of the things that we were sort of speculating about yesterday when we were asking the

question of what comes next. What might this National Council and this general now do?

LARRY MADOWO, CNN CORRESPONDENT: We still don't know a lot beyond this general showing up on TV and repeating what they said Wednesday night when

they officially declared that they had ousted President Mohamed Bazoum.

So Abdourahamane Tiani is the Head of the Presidential Guard. This is the man who has been in charge of protecting President Bazoum. Now he's

declaring himself the new leader of Niger. He says he's the President of the Council to Safeguard the Fatherland or the Homeland, if you prefer.

This is the coup plotters who showed up on TV Wednesday night and said that, because of a breakdown in security and the social economic situation

the country had to take over and today, this man was also known as Tiani said that the direction was -- the country's going in the wrong direction,

and that he had to take charge.


ABDOURAHAMANE TIANI, GENERAL, HEAD OF THE PRESIDENTIAL GUARD: The action of the CSP is motivated by the desire to preserve our beloved country, on the

one hand, because of the security degradation of our country, and this without the deposed authorities giving us a glimpse of a real way out of

the crisis secondly, because of the poor economic and social governance.


MADOWO: This man was in charge of the Presidential Guard since at least 2015. He is an ally of the Former Nigerian President Issoufou. And on the

street in the army in the capital -- he was about to get fired, so that President Mohamed Bazoum would have somebody of his own choosing not

somebody who was selected by the last President.

And then on Wednesday, he was detained at his Presidential Palace and now this. To be clear, several international leaders have said that they have

spoken to President Bazoum but he still contactable, the French President Emmanuel Macron, the UN Secretary General, the African Union Chief also

said that they spoke to him. Even the senior U.S. officials, including Antony Blinken, have said that they've spoken to him and they demand that

he returned back to power.

We have French President Emmanuel Macron earlier today who said that he condemns this takeover of power in Niger that President Bazoum is the

democratically elected President, a courageous man he called him and he was making the necessary reforms and investments that his country needs.

But now, when he becomes President, again, it's very unlikely. Will they put him on trial? Would they allow him to go in exile? Can he turn this

around Julia? A lot of questions we just don't have answer for right now.

CHATTERLEY: We'll keep asking. Larry, great to have you thank you. Now back here in the United States new charges against Donald Trump in the

classified documents case against him. Prosecutors allege the Former President asked a staffer to delete security camera footage at Mar-a-Lago

after it was subpoenaed this according to an updated indictment.

Sara Murray joins us on this. Now that staff -- a third defendant in the case too. What more do we know about these fresh charges and why they're

only coming to light now?


SARA MURRAY, CNN CORRESPONDENT: That's right. There is a new defendant in this case. But you know, more importantly Former President Donald Trump is

now facing three additional charges and two of them have to do with this alleged scheme to try to delete the surveillance footage at Mar-a-Lago.

Prosecutors subpoenaed for that footage after the government had already been at Mar-a-Lago. They had subpoenaed, saying please return any documents

with classified markings. When they went there to pick them up they noticed that there were these surveillance cameras outside of the storage room that

had been searched.

So they subpoenaed for that surveillance footage. Then they learned throughout the course of their investigation that there had allegedly been

this effort by Trump aides including this new defendant, Carlos de Oliveira to try to delete some of the security footage.

It sort of runs through in great detail in this indictment conversations de Oliveira is having with other Trump employees, and at one point, he says

the boss wants the server deleted. And he asks what are we going to do?

Obviously, the boss here is likely referring to Former President Donald Trump. So this is a new element in this indictment. Again, Donald Trump

already faced many charges and the original version of the indictment and this just sort of adds to the Former President's mounting legal troubles.

CHATTERLEY: Yes, stacking up. Great to have you with us thank you!

MURRAY: Thanks.

CHATTERLEY: Straight ahead, record setting temperatures and a call to action the new Chair of the World's Top Climate Advisory Body joining us to

discuss the threat to our planet. And later how drones are changing the face of modern warfare we'll talk to the CEO of the startup that's helping

Ukrainian forces on the frontlines.


CHATTERLEY: Welcome back to "First Move". As temperature records are broken around the world the UN Secretary General is urging world leaders to act

and prevent worse.


ANTONIE GUTERRES, UN SECRETARY GENERAL: Climate change is here. It is terrifying, and it is just the beginning. The era of global warming has

ended the era of global boiling has arrived.


CHATTERLEY: The UN's intergovernmental panel on climate change is one of the world's most recognized scientific bodies on global warming. Earlier

this year, released a report highlighting the devastating impact of climate change as well as detailing cost effective actions to reduce greenhouse gas



The IPCC reports provide crucial input into international negotiations on just how the world responds. And our next guest is stepping up to lead the

organization at a time when those conversations are more important than ever. Jim Skea is the new Chair of the Intergovernmental Panel on Climate

Change, the IPCC.

And he joins us now, Jim, fantastic to have you on the show. Congratulations on the new role. I hope you're not daunted because oh, boy

does the world and you, yourself and your leadership has a challenge ahead. Talk me through what the plan is?

JIM SKEA, CHAIR OF INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE: Well, I've just woken up on the last two mornings to realize just the scale of the

responsibility that's facing me. But I guess I'm really up to it. Now, the job of the IPCC is to prefer to provide advice to the U.N. and to the

governments of the world about climate change on the kind of climate action that can follow the very clear evidence that we're getting at the moment.

And I think we've done that, you know, five years ago, we produce the special report on global warming of 1.5 degrees, we put the concept of net

zero emissions on the mark. And now that's been followed up by governments. So now we need as the kind of evidence that supports the actual action that

will allow all these goals to be met.

CHATTERLEY: I mean, a lot of people looking around the world would say we're seeing the evidence now for our own eyes. Skeptics would say, hey,

we've had hot summers. We've had flooding in the past, have we got enough evidence now to justify more action because that's surely what's required?

SKEA: We absolutely have the evidence. I mean, our last report said that the evidence for human beings on the climate is absolutely unequivocal. And

all of the countries of the world signed up to that. So following on from that action, and what we are seeing at the moment, in terms of extreme

weather on wildfires has been predicted by IPCC.

But I have to say it appears to be happening more quickly than we expected. And on current trends, it's only going to get worse, that it's going to get

more frequent, and it's going to get more extreme with dire effects on people's lives.

CHATTERLEY: I mean you've worked with the IPCC, now, advising guiding for many years, I think, part of the challenges and know you were a co-author

of a report talking about solutions. So not just talking about the problems, the warnings, but how we can take action.

SKEA: Yes.

CHATTERLEY: It's not just about reducing emissions. It's about how we adapt to a changing climate today, with profound implications for workers where

we build homes, how we build homes? There are just a few examples. Is this the low hanging fruit?

SKEA: Yes, I mean, we must pursue both mitigation and adaptation because you know, the world is only going to get warmer. It's going to have impacts

on sea level, flooding extreme temperatures. And it is really important that we do adapt and build and plan our cities in ways that will be more

adaptable, in terms of the climate change that we're going to face.

And at the level of individual buildings, we need to do the appropriate things as well. We need to look at grief so called green and blue solutions

in cities, more vegetation cover in cities, more water bodies that will help us mitigate climate change, because it will reduce air conditioning

needs. And at the same time, will help us adapt to that warmer world.

CHATTERLEY: Yesterday on the show, we had the authors of a recent report that was looking at AMOC and I make sure I spell it to pronounce it

correctly, the Atlantic Meridional Overturning Current. And they were saying that it's most likely weakening or could collapse somewhere between

2039 and 2070.

Now, I know the IPCC had said that they weren't predicting this to happen till after 2100. Jim, to your earlier point about things happening more

quickly than anticipated, do you acknowledge and agree that perhaps even the research that you guys are producing perhaps, isn't alarmist enough?

SKEA: No, just to say that IPCC doesn't actually do research, we assess the work that other people don't do. And the study that we've just seen is just

one example of the kinds of studies that appear in the scientific literature. And only very recently did we conclude that it was unlikely

that there would be a breakdown in that North Atlantic circulation on the kind of timescales that this particular paper is predicted.

So we have to wait, we have to look at the literature as a whole. It's only one study and I don't think that it is entirely conclusive that we are so

worried about the breakdown of the North Atlantic circulation at the moment that was not the conclusion of the most recent IPCC report.


CHATTERLEY: Yes, so I think it's an important point and forgive me not the research that conclusions that some balance is found here too. Does it

worry you that whether we look within nations across nations that the climate debate is increasingly politicized?

I've certainly seen, and you'll know, in the U.K., voices that have said, Look, why should we push our consumers to take action to reduce emissions

when China's ramping up of coal, as an example, will more than outweigh any benefit that the U.K. achieves in one year? Jim, how do you find that

balance because you are trying to find balance between nations with your advice?

SKEA: Yes, we need to acknowledge that it's not only climate change that's going to affect people's lives, the measures that we take to address

climate change will also have social and economic implications as well. It's why in the last report, we started to flag the idea of just

transition, the idea that in transitioning to net zero.

We should pay much more attention to the impacts of climate action, for example, on disadvantaged groups, or groups of workers who may be working

in high carbon industries at the moment. So we're well aware, I think of the fact that there are implications of climate change action.

But we need systematic ways of actually addressing that. And there are solutions because there are jobs in low carbon industries. And there are

other benefits that people will get in the longer term from actually reducing the impacts of climate change.

CHATTERLEY: Jim, whenever I speak to John Kerry, and we've spoken frequently about this. He talks about money, money, money, and the need for

financing, whether it's financing for new innovation to help us bring emissions down or financing for poor nations that in many cases are facing

the worst effects.

And actually can do little about it, because they simply don't have the room to maneuver, financially, at least. Do you have thoughts on that? And

are you part of those discussions and how we take the money we have?

SKEA: Yes, absolutely. We devoted a whole?


SKEA: Yes, we devoted an entire chapter or two investments in finance in our last report. And we concluded that there is enough money in the world

to deal with the challenge of climate mitigation adaptation, the big challenge is to find the mechanisms and the channels to get that money,

absolutely, to where it's needed.

Actually, you know, support, for example, for renewable energy tends to have lower gaps, though there are still gaps. The challenge is getting

money to smaller projects of the kind that householders may need to implement, that smallholders involved in land use and agriculture are

involved. And I think that is the biggest challenge. It's not the money is around. We just need to get it to the right places.

CHATTERLEY: What's day one, Jim, on the job? What's the first priority for you?

SKEA: Well, just to say in my speech, just before being elected, I promised to do things on Thursday yesterday and Friday today on, I'm pleased to say

that I am now engaging with the other because you know, there are 34 scientific leaders of IPCC being elected, all at the same session.

I've started to engage with them on we're already making our plans as to how the ambitions I heard in my election campaign are going to be

implemented. And I'm tough to say I've been quite delighted by the cooperation and the spirit of friendship in which we've got these

conversations going.

CHATTERLEY: Yes, I think you you've got the title Nigerian Chief, as a result of that, because you're seen as an Action Man rather than a talker.

Good luck sir. It should be pusher in Chief I think rather than Niger perhaps.

SKEA: Yes, OK. Thank you very much.

CHATTERLEY: Jim, thank you. We'll talk soon. Thank you, Jim Skea, Chair of the Intergovernmental Panel on Climate Change. Thank you. OK, still ahead.

Call it unlucky 13, the doubt ever so close to greatness but just falling short. Can stocks get back on track? We'll discuss after this?



CHATTERLEY: Welcome back to "First Move", U.S. stocks are in play for the last trading day of the week. And it is a higher open as expected with more

high profile earnings in focus including consumer goods giant Procter and Gamble, a beat on the top and bottom lines.

But unlike a lot of the blue chips this earnings season they have issued some weaker guidance. Intel though a big early session gainer after raising

their guidance up almost 5 percent, Intel profitable again too for the first time in a couple of quarters, stocks also getting a boost for more

encouraging inflation data.

No Jay Powell scowl today is his preferred measure of inflation comes in at the lowest level in almost two years. And by the way, the DOW almost

matching an all-time winning streak record Thursday, those days back well over 100 years. And Christine Romans joins us now.

Christine, we've basically gone from recession to no recession to the risk of reacceleration. I'm going to put you on the spot now. Do you think Jerry

Powell hikes rates again?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Oh my god, I really have eight weeks of data.


ROMANS: So that's what's going to be there's a long runway here for things to change. I've been watching gas prices rise and commodities prices rise

and wonder how that might play into the inflation fears that the Fed is having but to put another are in your stable of our words.

They're resilient is the other one here. I mean, this economy has really defied expectations and the DOW Jones Industrial Average, Julia, is what 1

percent from record highs. And we've had 11 rate hikes. I mean, that's just remarkable.

CHATTERLEY: Mind blowing -- .

ROMANS: -- Some people are saying look the Nervous Nellies are already kind of like wait a minute, maybe the stock market's too ahead of itself. You

know, we haven't slayed the inflation dragon completely, although the PCE Price Index today was, you know, in line with what we had been expecting

that inflation is cooling.

So it's just such an interesting moment right now with the Fed 11 rate hikes in, I guess the September discussion is will they hike or hold and

then what happens next after that.


CHATTERLEY: I think one thing I've learned to say students of markets and business over the years is remain humble and assume there are lots that you

don't know. And if in doubt, call Christine Romans because she always has the answer. Christine, I have a frog in my throat. I didn't know until

today, but this is your last day at CNN.

ROMANS: Yes, I walked in here in 1999 as a Bond Market Reporter, a Bond Market Print Reporter, Wire Service Reporter, and basically learned, oh my

gosh, you're showing all my old haircuts. But I learned so much from here, I went down to the floor of the stock exchange did the opening bell of the

stock exchange for several years.

So they took this bond currency reporter and, and I learned the stock market and I really have loved every up and down along the way. And I have

to say that it's just the whole CNN stable of brands is just a family of hardworking people who ask questions, and really want to deliver for the


So I'm just so appreciative of the viewer and all the people that we've worked with all these years.

CHATTERLEY: Yes, and we're on the TV but the people behind the scenes who worked so hard to get us there and true our viewers as well. Look they I

actually speaking of being able to do a few things actually know how to use the system here. And look, that's my banner. Can you read it? Christine?

Please don't go. -- Yes, I know.

ROMANS: -- Julia -- have the Chiron system.

CHATTERLEY: -- this more than to come like what do you want to support? I'm like, don't worry, I can take control of this. You know the thing I love

about being on air with you one your enormous brain which I just love and look there you go. I love your brain is the Chiron -- that we love so much.

In addition to making me smarter, you are such an amazing person and you also we've gone back in the archives you also stepped in to do my show. I'm

lucky I got my job back some of our moments -- .


ROMANS: Live from New York. I'm Christine Romans sitting in for Julia Chatterley. December is usually that Santa Claus Rally the Ho Ho Ho it's Ho

Ho No, right now the Santa Claus hat turned upside down red arrows across the board.

CHATTERLEY: Christine Romans yes thank you we -- have you.

ROMANS: Thank you.

CHATTERLEY: Let's begin with our feature attraction, the monetary matrix. Christine Romans stars in this movie, and no one's taking anything. Take

some profits off the table while you can. Correct me because I think that's probably what we're talking about here. Let's be clear, just 5 percent of

record highs.


CHATTERLEY: As always, we agree. Christine Romans Sunday -- nice to see you --



CHATTERLEY: -- we spend the whole hour during --

ROMANS: -- Julia, you're so smart. I completely agree with what you just said.

CHATTERLEY: Funny there.

ROMANS: Funny hour at the same time.

CHATTERLEY: What's the pan? --

ROMANS: Yes --

CHATTERLEY: Can we are you going to take some time off?

ROMANS: Yes, I actually I'm going to take the rest of the month off. You know, I haven't had a break. My dad actually showed me recently all of my

tax returns since I was 14. I have worked nonstop since I was 14 years old because I love capitalism. And I'm just going to take the month of August

off and then you'll see me after that so.

CHATTERLEY: Yes, we will see you. You're amazing. You're a great person.

ROMANS: Thank you.

CHATTERLEY: Everybody loves you.

ROMANS: I've had so much fun with you, Julia, really.

CHATTERLEY: Yes, my heart sad but I'm happy for you because --

ROMANS: I'm just a text message away dear.

CHATTERLEY: -- why not?

ROMANS: -- We just talk about the -- anytime you want. --

CHATTERLEY: -- So many exciting things to talk about Christine, heart in. OK.

ROMANS: Thank you.

CHATTERLEY: Thank you. You're the best. OK, coming up after the break, meet the drone hunters. Autonomous flying machines that can intercept and

capture enemy drones just one of the weapons helping Ukraine fight Russian forces the company behind them, next.



CHATTERLEY: Welcome back to "First Move", Russian authorities they air defenses destroyed a drone launched by Ukraine to attack the Moscow region.

They say there were no casualties and no damage was done. CNN is unable to verify the report but drone use is already changing the face of warfare.

And our next guest runs a defense startup that's helping Ukrainian forces fight the war. Fortem Technologies is a provider of both software and

hardware including an unmanned system called the DroneHunter F-700. As you can see, this device has the ability to capture other drones in flight by

firing a net attached to a parachute.

Fortem is a private firm backed by Boeing Toshiba and Lockheed Martin ventures among others. And Jon Gruen is the Chairman and CEO. And he joins

us now, Jon, fantastic to have you with us. Just give us a flavor of what Fortem technologies actually has and compromises off. And then we'll talk

about specific tech.

JON GRUEN, CHAIRMAN & CEO OF FORTEM TECHNOLOGIES: Absolutely great to be with you today. So Fortem was founded in 2016. It was based on a radar

technology that had been worked for many decades, but as technological advances were being made on it to make it smaller, more high power and

higher fidelity.

We were able to spin it out into very small form factor radar, which then put on drones, to see if it could act as its own seeker in the sky. And

that started off Fortem on a path to do what is the F-700 today, but really it is become a family of sensors and effectors that are applicable to the

counter UAS market right now.

CHATTERLEY: So explain what we were seeing there, and just how useful these are on the battlefield to identify and intercept other drones because I

think this has proven to be crucial in the battlefield.

GRUEN: It really has, it's a new wave of technology where you have artificial intelligence on the drone itself. So you have the seeker in the

radar on the drone, plus all the artificial intelligence. So it's able to go and seek out these adversarial drones in the sky, and then go mitigate


So we do that currently with the net to be low collateral effect. So you're not creating debris, you're not creating a falling drone out of the sky.

And so it's a much safer way to interdict these threats.

CHATTERLEY: Can you then we use that drone that you've captured? Does it bring it back down to earth? And then perhaps that drone can be repurposed?

GRUEN: Absolutely, so that's the other benefit. So carrying it under a net, we can bring it down wherever it is desired to be, and then that drone is

completely either exploitable for forensics or potentially even reusable.

CHATTERLEY: How successful is one of these if we're talking about a swarm of drones 50 to 100 drones? Can you give us a sense of the accuracy and how

able the drones that it's trying to capture are able to perhaps deflect and avoid the nets?


GRUEN: So great point, and we really use the Ukrainian experience to enhance the capabilities of the drone hunter and the F-700 of those is into

the swarm capabilities. So originally, we were deployed to get reconnaissance type drones. And that quickly changed to us needing to get

to some of the larger drones that were doing kamikaze style missions.

And those were the Shahed 131 to 136 is. So that was our initial advancement was being able to get those larger, faster drones. And then

that has quickly morphed into what is not quite on the battlefield in a meaningful way yet, but swarms. And so from our point of view, it really

comes down to the type of effector we have under the drone.

So we are able to go and put a number of different types, which may or are not going to be nets completely in the future. So the drone itself is

becoming learning and becoming better able to read the threat coming at it, whether that's large and fast, or whether that swarm.

And so that artificial intelligence keeps building and learning. And now it's a matter of just having the right effector for the type of threat

coming at it.

CHATTERLEY: Yes, I'm sort of reading between the lines and listening to you. And I think what's standing most, or standing out most to me is, how

quickly you have to learn and adapt in real time. And if I take a step back, I do think there's a sort of military revolution taking place.

And it's happening far more quickly than we saw see between land foot soldier war in the First World War in a mechanized vehicle, mechanical war

in the in the Second World War. I mean, you're already as a tech company, and a private tech company adapting to that.

How is the government and governments around the world adapting to that, whether it's procurement, funding support, because you're a private

company, but there are government's involved here on many sides?

GRUEN: We've certainly seen a massive increase in our engagements and in the development efforts of governments around the world. They've observed

what is happening in Ukraine, and look, many of them, you know, out their borders and see the same potential problem.

So we are definitely in a rapid development phase with a number of different countries, each country has its unique threat to, aspects to it.

So we tend to work with that host country, and that partner to modify the system and little ways to make it applicable to their environments.

And so it really is a joint effort at that point. And so that requires joint funding. But we also have our private capital investors that are

supporting us through this evolution. And they've been phenomenal. And they have enabled us to be at the forefront and stay at the forefront of this


CHATTERLEY: Yes, it's the private capital that's important in this too. Is the Ukrainian government buying these drones? Are they paying for them? Are

you getting government support? Obviously, there's NATO funding involved here as well.

GRUEN: Interestingly, it was very much Ukrainians at first themselves. So they had a couple of mechanisms. Some were through the crowd source

donation sites. And then obviously, they had some of their own budget as well. So the early year plus of them buying our system was all their own


And then now, as they've expressed the need to friendly governments, now we're starting to see those other governments start to find our system as


CHATTERLEY: Jon, this also an ethical question that I always think about when we're talking about this kind of equipment and the use of this kind of

equipment, whether it's for defense or attack purposes. Do you investors talk to you about that, too? And how do you respond in terms of the ethics

of this?

GRUEN: Well, I mean, I think it's pretty apparent when you go to Ukraine, and you see the threat that they're facing constantly. You leave there

wanting to do everything you can to protect those people. And so for us to be able to develop a capability that goes and removes those menacing

threats out of the sky.

It's not even a question for us. So we're fortunate and that we have the ability to see immediate effects of our system in an incredibly positive

way on the battlefield by mitigating those threats. So we are we are proud to do it. And it is an easy decision for us.

CHATTERLEY: Yes, you found your answer in Ukraine, I think is the message, Jon, good to chat to you, Jon Gruen there, the Chairman and CEO of Fortem

technologies, sir thanks for your time. We're back after this. Stay with us.



CHATTERLEY: Welcome back. As we mentioned earlier on the show climate scientists say that this month is said to be the hottest in human history.

The U.N. Secretary General says the planet has moved from a period of global warming to one of global boiling. And those world leaders must act

now to stop things from getting worse. Gabe Cohen has more on just how bad things have got.


GABE COHEN, CNN CORRESPONDENT (voice over): It's now the planet's hottest month in human history.

DR. CHRIS RODRIGUEZ, WASHINGTON, D.C. EMERGENCY MANAGEMENT: We need people to make sure that they're staying hydrated. We need them to stay indoors.

COHEN (voice over): When 150 million Americans are under heat alerts Thursday, being told to stay inside, driving up demand for cooler air,

causing a dire strain on the country's largest power grid that covers 13 States and D.C. impacting 65 million people amid this hot weather alert

that will last through at least Friday.

This after Texas's independent energy grid has faced record demand amid soaring temperatures. The heat wave sent temperatures above 110 degrees for

more than three weeks in parts of the Southwest, and at least 25 people died from the heat in Arizona alone.

DR. JESSE BRACAMONTE, MAYO CLINIC HOSPITAL: That's the heat. The heat causes problems period -- out to people who is alive from heat related

illness or heatstroke.

COHEN (voice over): In Texas officials say scorching temperatures have led to a record spike and medical calls.

UNIDENTIFIED FEMALE: We are way over already.

COHEN (voice over): And in California, the heat is creating conditions for more wildfires. In States as far north as Minnesota where July is usually

in the 80s the asphalt is now buckling in the heat reaching into the hundreds. Farmers, they are worried that the temperatures will also destroy

their profits.

SUMMER KUEHN, BLUEBERRY FIELD OWNER (ph): I have a prayer that I hope is answered that our fruit that is still green and pink can actually weather

the heat storm.

COHEN (voice over): Here in Washington the Mayor declaring a public emergency.

UNIDENTIFIED FEMALE: You got a cooling towel already.

COHEN (voice over): Converting city buses into makeshift cooling centers for vulnerable and low income people without regular access to air

conditioning and shelter.

ROBERT SEEKFORD, WORKING IN SUMMER HEAT (ph): It's not unbearable, but it's tough. It's hard. I mean it wears you down especially at 61.

COHEN (voice over): The Biden White House now addressing the country wide heat emergency directing the Labor Department to issue a nationwide heat

advisory for workers. But some protections fall on States.

JOE BIDEN, PRESIDENT OF UNITED STATES OF AMERICA: We should be protecting workers from hazardous conditions and we will and those States where they

do not I'm going to be calling them out.

COHEN (on camera): And so emergency officials here in the northeast and other parts of the country that are experiencing these brutal temperatures

say they are extremely worried about the people who are still spending time outside despite the heat here in Washington. The heat index Thursday was

close to 110 degrees.


The weather Friday expected to be similar. Gabe Cohen, CNN, Washington.


CHATTERLEY: And finally on "First Move", we've been calling it Swiftonomics. Taylor Swift's own economic -- thanks to her sellout tours

delivering soaring ticket sales, hotel bookings and of course related spending. Now, some people even accuse her and other stars of pushing up

inflation but forget inflation.

Now she in his 50s can apparently cause earthquakes kind of funs dancing for two nights when Swift's tour hit Seattle cause seismic activity on a

par with a 2.3 magnitude earthquake. That's according to seismologists. Now this graph, yes, we always have the graph to show it.

It shows near identical spikes on both nights as she progressed through her set list. There can be no doubt she rocks our world and I hope your weekend

rocks too. That's it for the show. "Connect the World" is up next, have a great weekend.