Return to Transcripts main page
First Move with Julia Chatterley
U.S.: Putin & Kim may meet on Potential Arms Deal; UAE Announces $4.5 Billion Support for Africa's Clean Energy Initiatives; Cuba Uncovers Trafficking Ring for Russian Fighters; Germany's ZF on Innovation in Transportation; ZF CFO: Increased Competition is Driving Innovation; Coin Horrors Britain's Queen Elizabeth. Aired 9-10a ET
Aired September 05, 2023 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JULIA CHATTERLEY, CNN HOST, FIRST MOVE: A warm welcome to "First Move". Great to be with you this Tuesday where Wall Street's back after the Labor
Day break though some is not over and New York set to bake. The bulls meanwhile, who a sleeping IPO market can be, awake with chip leader arm
selling a stake.
And over in Kenya climate officials reiterate ignoring investment in Africa is a mistake. President Ruto setting the tone on day two of the continent's
first ever climate summit by proposing a debt interest moratorium if the cash is used to flung climate projects.
Makes perfect sense to me, but will the Former United Nations Secretary General Ban Ki-Moon, who's also in Nairobi for these talks are on board?
Well, he believes the current international funding of around $53 billion a year for Africa must raise 10 fold. Yes, you heard me right. We'll be
discussing that shortly.
And the battle to heal the planet does not end there. We'll be joined later in the show by the CEO of German Tech Giant ZF Group, to discuss its work
in electric mobility and as a supplier of software and EV systems to car makers all over the globe, said if he's also working on a rare earth
mineral free, electric motor we'll get the details on that too.
Now, in the meantime global markets are in need of a charger or at least some kind of jumpstart we're looking at a softer start, as you can see
there in the United States following a cautious tone and handover from Europe too.
September of course, traditionally, a weaker month for stock market performance, you've got to bear that in mind. Pay attention too to rising
energy prices crude, hovering now near nine month highs on expectations that OPEC Plus will keep production cuts in place.
We will hike even with the uncertainty over China's economic trajectory and we'll be discussing that later on the show too. But first, the Kremlin is
refusing to comment on a potential meeting between President Vladimir Putin and North Korean leader Kim Jong-Un.
U.S. officials believe that Kim may travel to Russia to discuss providing weapons and ammunition. The U.S. National Security Council warned that arms
talks are actively advancing quote. And Paula Hancocks joins us now on this -- a big deal, for one reason simply that the North Korean Leader doesn't
And it's expected according to some reporting to happen on the eastern coast, I believe of Russia. The big question for me is what does Russia
have? What does North Korea have forgive me that Russia needs?
PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: Well, at this point Julia, Russia needs ammunition, its need certain types of ammunition for its war
in Ukraine. We have heard that they are running low. And we know from U.S. officials and also from South Korean intelligence officials that North
Korea appears willing to be able to give Russia what it needs.
For example certain types of ammunition, there is a fair amount of interoperability between the weapons of both countries. So there are
certain types of ammunition which would be able to be sent to Moscow, and then they would be able to be used by Russian weapons almost immediately,
so there is that crossover when it comes to the weapons technology there.
But of course, North Korea doesn't do anything for free. So what does North Korea get out of this? And they potentially according to U.S. officials
would get certain technical know how we know that they are looking for a success when it comes to putting military satellites into space.
They've tried twice in recent months both times have failed, including one just last month. So that's U.S. officials say is a potential payoff for
North Korea. And also something like so a nuclear powered submarine is something that North Korea has said that it would like it's on Kim Jong-
Un's wish list that he gave just a couple of years ago.
But they don't have that technological knowhow so both sides do stand to get a fair bit out of any potential steal. And of course, it's not just
militarily it's also politically Kim Jong-Un moving closer to Russia allows him to counter the influence that China has when it comes to North Korea.
And it also allows him to have an ally which is a significant ally in the world. You saw just four years ago, Kim Jong-Un went to Vladivostok and met
Kim Jong-Un -- met Vladimir Putin. But of course, the relationship has changed now.
There is a lot more that Kim Jong-Un can now do for Vladimir Putin. So in that respect, having a leader of such a significant nation needing him and
needing what he can provide is something that Kim Jong-Un is not used to so that's also a benefit for North Korea. And of course they are united by a
common enemy. They are united by the United States the fact that they both want an alternative world order.
They want a world where the U.S. is less powerful. So they are clubbing together with these alliances, and also a world where the United Nations
Security Council resolutions are more difficult to be imposed.
These are resolutions against North Korea, for example that Russia has signed on to, but as it is in the Security Council, it will and has been
vetoing anything that will punish North Korea and its recent flurry of testing, Julia.
CHATTERLEY: Yes, timing and leverage is everything. Paula Hancocks thank you for that. Meanwhile, Russia has made two demands in talks over renewing
the Ukrainian Grain Deal. Turkish President Erdogan says Russia wants one of its banks reconnected to the international payment system, and wants
sanctions relaxed over the insurance of ships.
Kyiv is calling the Kremlin's conditions "Blackmail". Vladimir Putin said on Monday that Moscow won't reenter the agreement until Western
restrictions on Russia's agricultural exports, are lifted. Salma Abdelaziz joins us now.
So I can understand Russia's position on this. The risk, of course for the West is if you relax some of the details on these sanctions that leaves
them open to further abuse, what would we know about these conditions?
SALMA ABDELAZIZ, CNN CORRESPONDENT: Look fundamentally there was high hopes for this meeting in Sochi between President Putin and President Erdogan.
But we do not seem really any closer to a grain deal that would unblock those ports.
In fact, President Putin seemed to be willing to take unilateral action saying that Russia was working on its own deal with six African states to
provide them with a million tons of grain for free, President Erdogan also stepping out of that meeting, pushing on the Ukrainian side, saying that he
needs to soften its stance.
And as you mentioned, President Putin blames the West for the collapse of this steel saying that those promises that agricultural exports would be
eased have not materialized for Russia. That is his accusation towards the West.
There's also a few fundamental issues we have to remember here when this deal was pulled together several months ago, it was extremely serious to
find that breakthrough, you were seeing inflation, skyrocketing prices on food and places in North Africa in the Middle East.
Since that time, food prices have stabilized somewhat. That's not to say that countries like Egypt, in Somalia haven't suffered greatly due to this
blockade. But it does mean that there is less pressure. And then you also have to remember the factors on the ground here, Julia without a deal,
Ukraine says that Moscow has been intensifying its attacks on ports along the Danube River along the Black Sea as a way of essentially making food a
token a bargaining chip in this conflict.
CHATTERLEY: Yes, but you do raise a great point I think that it does help actually, unfortunately, as people suffer if prices are rising
dramatically, because it ups the stakes Salma Abdelaziz there, thank you very much for that.
And turning now to the slowdown hitting the world's second largest economy China, Beijing today reporting that growth in the services sector slumped
to an eight month low in August, the news helping to drag Chinese shares lower as you can see there the HANG SENG falling more than 2 percent all
this is troubled property developer Country Garden dodges default yet again. That's the second time in four days.
Anna Stewart joins us on this. Anna it's a continuation of our conversation from yesterday. And I believe this is the two international bonds that we
were talking about that we're in the grace period. It's a case of Whack a Mole is the worst over?
ANNA STEWART, CNN REPORTER: Whack a Mole. I love it. Well, the worst is over at least for this week. I mean, you're right. This was the overdue
payments that were missed several weeks ago. They had a 30 day grace period.
They have now paid. I think maybe they just got that breathing space they needed from yesterday's debt extension. So this payment totaled $22.5
million. It's avoided default this week. The question is what comes next.
Now we got a new line out today from a state owned media outlet in China saying they're also seeking approval from creditors to have a debt payment
extension on eight onshore bonds. They're all due this year it totals $1.5 billion. So this is what they're doing right now.
And there's a meeting on Thursday with those creditors on a vote so perhaps they can also extend that. The question at this stage, though is this
giving them even more breathing space so they can handle bad debts over the coming years? Or is this just kicking the can down the road? And how long
will creditors be OK to extend all of these debt repayments?
CHATTERLEY: Yes, it's such a great question. We're still talking about a company that reported what a $7 billion loss in the first half of this year
in a sector that we know is deeply embattled. It's 25 to what 30 percent of the broader economy, the property sector and the broader economy is
troubled too as the survey data overnight suggests?
STEWART: Yes, latest survey data, this is the private survey of business activity in the services sector for August that came in at 51.8. So it's
not actually in contractionary territory at this stage. But compared to July where there was 54.1. It's a significant fall.
It makes you question of course, consumer sentiment within China and we know export demand from outside of China has been weak, just generally adds
to what is a really bleak economic picture in China.
I mean, just to recap, the economy barely grew in the second quarter. It hit deflation in July. It has an issue with employment; particularly with
youth unemployment they're not even publishing the data around that. And this is for an aging population.
So huge structural issues, huge economic headwinds, it is a lot for Beijing to digest. So we've had a lot of policy updates on the property markets.
But you wonder whether that really at this stage is a drop in the ocean can it do enough to stimulate demand within China.
CHATTERLEY: Yes, great questions as always. Anna Stewart, thank you so much for that! Now from Asia to Africa, where U.S. Climate Envoy John Kerry has
just announced an additional $30 million to help countries to adapt to climate change --
(BEGIN VIDEO CLIP)
JOHN KERRY, U.S. CLIMATE ENVOY: First $20 million to the Africa adaptation initiative for the food security accelerator and that will invest in
agricultural businesses and help them create their own independent climate resilient supply chains.
Second $10 million will go to the climate resilient adaptation, finance and technology transfer facility to scale technologies so that we can advance
adaptation efforts like pole chain storage, which would help maintain the quality and safety of food from the farm all the way to the homes of people
in the world.
(END VIDEO CLIP)
CHATTERLEY: You may have already read the banner. Meanwhile, the UAE has pledged $4.5 billion to clean energy initiatives in Africa. Larry Madowo is
still in Nairobi for us. Actually Larry, it's hats off to President William Ruto once again, in the Kenyan host when he said if you don't solve the
debt issue, you can't solve the climate issue.
I saw that he'd suggested a sort of moratorium on interest payments on debt. I think they pay around $8 billion a year. He said look, give us a
moratorium and we'll spend that on mitigation and adaption. Now we're talking, Larry, is that kind of conversation being had there?
LARRY MADOWO. CNN CORRESPONDENT: There are people were talking about these conversations. And President Ruto to his credit has been very bold in his
statement in this regard. The One Campaign put out a report that says because African countries can't often access cheaper funding from the World
They're paying up to 500 times more, because of these Euro bonds, they keep floating, which means that they cannot invest enough in climate adaptation.
And that is a real crisis. But I think the big announcement here is definitely from the UAE, ahead of COP28 which they're hosting $4.5 billion
to support clean energy projects in the continent.
And they say this is likely to unlock another $12.5 billion from other partners. If that does come through that is a huge, huge investment in
Africa's clean energy potential, which goes to something that the UN Secretary General Antonio Guterres talked about that the world needs to
help Africa become a renewable energy superpower because the resources are all here.
However, in the last two decades, only 2 percent of renewable energy investments have come to Africa. So that is the opportunity. Even though
the resources are here, the money is not coming. And I think announcements like those from the UAE about this $4.5 billion help unlock a lot more. And
it's the kind of partnerships that President Ruto and the other African leaders here are looking for.
You've seen President Salva Kiir of South Sudan, President Bola Ahmed Tinubu -- of Tanzania and whole host of other leaders from Mozambique and
across the continent, all trying to bring a united voice out of COP28.
And especially African countries push for that funding for adaptation because even though the continent accounts for only 3 percent of greenhouse
gas emissions, the worst impacts of the climate crisis are here on the continent.
CHATTERLEY: Larry do you get a sense of a lack of trust, whether it's when you see these big announcements of money, when indeed the money actually
follows through or if we sort of go back in history of some of the COPs were, I mean, back in Copenhagen, where $100 billion a year was promised.
And actually those commitments were never really fulfilled. There's sort of a lack of trust of to your point, not just who's responsible for the
admissions and who's suffering most as a result, but whether the promises are actually fulfilled.
MADOWO: These are all promissory notes, right, Julia because, again, even the $4.5 billion from the UAE is a pledge and I think that word is doing
the heavy lifting here. They're not saying you can access this money tomorrow or next week or next month.
It's a pledge it's probably going to be phased out over time. And with a lot of these commitments for climate financing with loss and damage and
adaptation there's very big commitments going back several COPs back.
But such a tiny amount of that money actually makes it out here. And many of the African Leaders say we are tired of these commitments, we're tired
of all the talk. The time for action is now because the longer you wait the people who are getting affected.
People are dying. People have to move, and people are having their lives upended. And you can't just keep committing things you got to start
bringing in the actual money, so you got to spend it to support people's lives.
CHATTERLEY: Yes, I couldn't agree more. Larry good to have you thank you so much for that, more "First Move" after this.
CHATTERLEY: Leaders from Southeast Asian nations have gathered in Jakarta for the ASEAN Summit. This meeting comes amid rifts between member states
over stalled peace efforts in Myanmar tensions on the Korean Peninsula and Taiwan also likely to be discussed. Steven Jiang has the latest from
STEVEN JIANG, CNN BEIJING BUREAU CHIEF: Myanmar and several issues involving China very much looming large over this summit. Now remember,
Myanmar is still very much in crisis mode more than two years after the military there overthrew the democratically elected government of Aung San
Suu Kyi in a bloody coup.
And several ASEAN members, especially the Philippines and Vietnam have had long standing territorial disputes with Beijing over the South China Sea
with some recent flare ups in the region. For example, when Chinese coast guards used water cannons to prevent the Philippines from supplying one of
their ships there and also Vietnam actually banning the movie "Barbie" over a map purportedly showing the Chinese claim.
And then of course, there is this dilemma faced by a growing number of countries around the world but especially ASEAN members given their very
close economic and trade ties with Beijing. That is the role and choice in this increasingly heated U.S. China competition with tension very much
remaining high between Beijing and Washington.
So it is against this backdrop that U.S. President Joe Biden's absence is made more conspicuous given that Mr. Biden has in the past attended a
summit in person. Now, that has led to some analysts to question the bloc's relevance and the White House priority in this region.
Now, the U.S. government very much pushing back this notion pointing to Mr. Biden's track record, and also that he actually hosted eight of the 10
ASEAN Leaders in the White House just last year. Now in this place U.S. Vice President Kamala Harris is attending meetings in Jakarta.
And coincidentally, China is also sending its number two leader Premier Li Qiang to Jakarta. So a lot of scrutiny over all these potential
interactions between all the leaders in the next few days at a time when the ASEAN leaders very much trying to present an image of unity and
relevance with a focus on economic growth in this increasingly fractured world. Steven Jiang, CNN, Beijing.
CHATTERLEY: And staying in the region, Japan is giving more financial support to its fishing industry after China banned Japanese sea food. That
ban is in response to the release of treated radioactive wastewater from the crippled Fukushima Nuclear Plant. Ivan Watson has more.
IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT (voice-over): Backlash in China over Japan's decision to release treated nuclear wastewater from the
Fukushima power plant into the Pacific Ocean. The Chinese government banning all Japanese seafood imports to prevent the risk of radioactive
contamination and to protect the health of Chinese consumers.
Fears over Fukushima prompting panic buying of salt in several cities until authorities reassured the public, China consumes mined salt more than sea
salt. Ripple effects also felt here at a Japanese food court in Beijing.
UNIDENTIFIED FEMALE: I told my daughter that we should go and eat some seafood now while it's still safe. And let's not eat it any more
afterwards. Nothing from the ocean is edible from now on.
WATSON (voice-over): Fears echoed by her daughter.
UNIDENTIFIED FEMALE: Of course first seafood will be affected but other crops and food will also be affected later on. It's only a matter of time.
WATSON (voice-over): The nuclear controversy potentially crippling business for this sushi chef. Some customers are disgusted by this news. They no
longer want to eat Japanese food, he says. It is once busy restaurant now largely empty. After the pandemic our business this year has not recovered
And now with his news from Japan, our businesses worse he says. Some scientists argue these fears are unfounded. The International Atomic Energy
Agency says Japan's plan to release wastewater is in line with IAEA standards.
RAFAEL GROSSI, IAEA DIRECTOR GENERAL: Our co-operation and our present will help build confidence in Japan and beyond that the water disposal is
carried out without an adverse impact on human health and the environment.
WATSON (voice-over): And yet the heavily censored Chinese internet still bubbles with anger at Japan, including prank calls harassing Japanese
businesses. These groups of young people are purportedly calling random numbers in Japan. Why do you release nuclear waste water into the ocean,
this young man shouts?
Elsewhere a Chinese restaurant owner makes a show of tearing down Japanese decorations at his Japanese restaurant. The Chinese government is
tolerating these displays of anger at Japan tacitly encouraging nationalist fervor even if it results in empty restaurants at a time when China is
increasingly suffering from economic uncertainty. Ivan Watson, CNN, Hong Kong.
CHATTERLEY: And still to come, the human trafficking network that's sending Cubans to fight in Ukraine. We're live in Havana, next.
CHATTERLEY: Welcome back to "First Move", Cuba has uncovered a human trafficking ring that recruits its citizens to fight for Russia in Ukraine.
Cuban authorities say they're "working to neutralize and dismantle" the network. Patrick Oppmann joins us now from Havana. Patrick, do we have any
sense of the numbers of people that might be involved in? Who might be behind this network?
PATRICK OPPMANN, CNN CORRESPONDENT: Details are really quite fuzzy still, Julia. And it really is a striking statement, because up until now, Cuba
has been a staunch defender of Russia's war in Ukraine saying that it's the U.S. and it's the West and NATO that started this war that forced Russia's
And so does see the statement that was released late last night by Cuba's Ministry of Foreign Affairs really caught a number of a false this by
surprise, because they are essentially saying Cuban citizens are not permitted to fight in this war. And while they're not naming the Russian
government, per se, they're making it very clear that these Cubans are fighting on Russia side.
And of course, it really is impossible to imagine that the Russian government would not be aware that Cuban citizens were being enticed or
duped to go fight for Russia. But over the last few days, there have been reports of Cuban citizens complaining that they were tricked into fighting
That they were promised that they would be working on bases that they wouldn't be on the front lines. And then lo and behold, once they arrived
in Russia, they were given a weapon and told to go fight. So a lot to be determined how many people were fighting for Russia. How many Cubans you
know, is it dozens?
Is it hundreds how the Cubans who are currently either in Russia or Ukraine could be returned to Cuba if they do want to come home, but at the Cuban
government, despite the aid that Russia supplies his island, the crucial aid that Russia supplies this island, making it very clear that they do not
allow their citizens to take part in this war and so this will continue to develop?
CHATTERLEY: Yes, any further details we will bring them to our viewers, Patrick Oppmann for now in Havana, thank you for that. Now the leaders of
the world's largest economies meet for the G 20 Summit in New Delhi later this week. They'll arrive to a neighborhood uprooted just for them.
The houses of thousands of poor families that stood near the summit site have been demolished and replaced by ornate fountains and leafy green
plants. Vedika Sud spoke with some of those who have been forcefully displaced.
VEDIKA SUD, CNN REPORTER (voice-over): A bulldozer tears down Savita's home in Delhi helpless and distraught she looks on recording on a mobile. Her
daughter's just off camera try comforting her, stop crying mother or you fall sick, they say. Savita is just one of tens of thousands who have been
rendered homeless in the lead up to the big G 20 meet in Delhi, where Indian Prime Minister Narendra Modi will want to be seen as the voice of
the Global South.
SUD: When world leaders arrive in New Delhi this weekend, they won't see some of the slums that would have fallen on their roof. Instead, what they
will see is the statues and fountains that are part of the government's massive beautification drive that activists say have displaced the poor.
SUD (voice-over): Almost three months after this mass demolition drive, we meet Savita. She says inconsolable as she was on the morning bulldozers
rolled into the neighborhood. Our children were hungry, they were thirsty. We had no place to cook after they demolished our homes, she says.
Amid the rubble, Savita's family camped under a tarpaulin sheet. They were homeless for almost six weeks. We knew we were building our homes in an
unauthorized colony. But people have been living here for over 40 years now. Why didn't authorities demolish these homes earlier why now, she asks?
In a document submitted in court the Delhi government stated it intends to rehabilitate those impacted by the eviction in new homes. But that hasn't
happened. Human Rights Activist Harsh Mander says the Modi government is showing no urgency in rehabilitating the poor.
HARSH MANDER, HUMAN RIGHTS ACTIVIST: What strikes me most is, that India, the Indian state, is ashamed of ostensible poverty. It doesn't want poverty
to be visible to people who come here.
SUD (voice-over): In July the Indian government in a written response in Parliament denied any links between the demolitions of homes and the G 20
summit. CNN has reached out to both the Delhi and central governments we are yet to receive a response, about 200 meters away from the G 20 summit
venue, Jayanthi Devi scavenges for the buried remains of her belongings under the rubble of her home.
Our home a small eatery, a grocery store, everything was destroyed, she says. People say authorities have cleared out the settlement because of the
G 20 summit. She now runs a tea stall along with her husband. Since June they've been spending nights in this makeshift shelter.
We're so angry but her poverty makes us powerless. We can't speak up says Jayanthi. Now plants shut the rubble but still scattered around Jayanti
Devi's home. High walls have cordoned off the land where Savita once lived. Amidst the noise and grandeur, the voices of the marginalized group even
softer. Vedika Sud, CNN, New Delhi.
CHATTERLEY: And coming up on "First Move", sustainability developing the next generation of electric motors but without rare earth minerals. We'll
discuss transport innovation with the CEO of Tech Giant ZF Group, after this.
CHATTERLEY: Welcome back to "First Move", with a more in-depth take on reducing readmissions in the transport sector. Now, you may or may not have
heard of ZF group, but you've certainly heard of its clients. They include European car manufacturers such as Mercedes and BMW, General Motors and
Ford in North America and Chinese firms like NIO, Bird and Lotus.
ZF actually says there are virtually no cars now that don't contain at least some of its parts. It calls itself the world's largest provider of
mobility technology making transmissions and other systems for passenger cars, commercial vehicles and industrial uses.
And it's also on the innovation front developing a new type of electric motor that doesn't require the use of rare earth materials. And that
certainly caught my attention. Joining us now from the International Motor Show in Munich is Holger Klein, Chairman and CEO of the ZF Group, Holger,
fantastic to have you on the show.
HOLGER KLEIN, CHAIRMAN AND CEO OF ZF GROUP: Good afternoon, Julia.
CHATTERLEY: Welcome. Now you've been at the steering wheel at this company, I believe now for nine months at a hugely transformational time for the
industry itself, whether it's the acceleration of technology, the shift to EV and hybrid competition globally supply chain challenges. How do you
focus the company to thrive in this environment?
KLEIN: Yes, Julia, very good question. Yes. And let me first state what you said, we are a global tech company 160,000 people in my team, and we are
the third largest automotive supplier. Yes, and the change the transformation, the auto industry is enormous and it's gaining speed.
Yes, and so for example, the move to battery electric is a challenge for the entire industry. ZF, you know, in 2015, we were with 60 percent of our
revenues dependent on ICE components, Internal Combustion Engines. Now, it's only in 2022, 27 percent and that tells you a story.
Yes, so we are fundamentally shifting portfolios. And one of those topics here is innovation, the world premiere of our immature rare earths free, no
magnets. And why is that important? First of all, we reduce the carbon footprint of the production by 50 percent by replacing rare earths.
And then, of course, you talked a lot about geopolitics and supply chain turnout, you are de risking the supply chain enormously. And last but not
least, one part, it's ultra-compact and ultra-light. So it really can replace standard engines as you know them to them today and your battery
lead your vehicle.
CHATTERLEY: Yes, I have to admit, we've talked about this a number of times on the show. And my view is we're effectively risking swapping one
controller of energy like an OPEC for perhaps another in our need, as we ramp up with electric vehicles and hydrogen fuel cells on the reliance of
those providers of rare earth minerals.
Just compare the cost for me of the motor that you're creating versus the traditional form that we're pushing in, at least at this stage. Is it
similar in terms of cost? How does it compare?
KLEIN: It is similar. Yes, and it will be similar. Of course, it needs to gain and scale. You know, now we produce about 2.5 million electric motors
over the past now with magnets and now we need to scale up. So this world premiere, it's not in serious production yet. Yes, but you know, ZF has an
order volume of roughly 30 billion in its books.
And if you now think of the scaling, then it can become very, very comparable to conventional immortals, like we know them today.
CHATTERLEY: Yes. And I wouldn't be a true car driver, if I didn't ask you about performance. If the price is comparable, that's good. What about
KLEIN: Performance per kilo what we would say exactly the same. Yes. So you can have a sports car, and you can feel good because you don't consume rare
CHATTERLEY: OK, the other thing so we've got in the electric motor avenue is chips. And I think what we saw fundamentally during the pandemic was our
reliance on supply chains around the world, and how that can create the problem for the entire industry, if we don't ensure that.
Talk to me about the deal with the United States. And the fact that I know, you're now producing and researching in Germany as a result of wave speeds
investment, which is exciting, I think, to say the least, what's it going to mean for your business?
KLEIN: Exactly, Julia, I mean, we are facing turmoil. Yes, so I wouldn't call it de-globalization, because I still believe multilateralism is the
way to go. But at least we're getting more local for local, more local for local and China more local for local in the U.S. and North America, and
more for local for local in Europe.
And there's one part of it, if you think about the supply chain, for an e- drive chain, silicon carbide becomes very important -- because in ZF inverter where you transform the energy, it can gain enormous efficiency it
can give you range in a battery electric vehicle.
And it will be good for fast charging, that's what our consumers at the end of the car drivers. Yes, and then that knowledge as leading the pack with
800 volts delay the solution carbide e-engines, we decided to partner with wave speed. And wave speed is very well known and the solution carbide.
And we will build a fab and in Germany and a lab in Germany to drive forwards the innovation cycle for this recent products chips.
CHATTERLEY: Yes, it's interesting what you said as well about the idea of globalization or just making your supply chains more centric to the region
that we're talking about. Because of course, you as a company have been involved with Chinese auto manufacturers and working in China now for many
Just given that wisdom and experience, can I ask you and I don't know whether you saw it the UBS report that came out last week that said,
traditional car manufacturers like Volkswagen, Honda, Reno, are going to lose more than 20 percent of their market share by 2032, the Chinese
Some of your clients, let's be clear, because they're already 25 percent cheaper, and they're innovating quicker. Holger, what's your view on that?
Whether it's pricing or the innovation or the speed at which they're moving and competing?
KLEIN: So I would invite you to come over to Munich, if you can, and you would see if you come to those ZF booths or if you go to the OEMs here, the
race is far from over. Yes, so I wouldn't be very careful to say those are the winners, or those are the losers.
There's pure innovation now coming into the industry. And therefore, I would say they all transforming the companies, they are all transforming
the way we drive cars, we experience cars. And by the way, this increased competition. I think it's good, yes, because competition drives innovation.
And for us, perhaps as car buyers as well, it increases the portfolio you can pick from smaller cars, sports cars, SUVs whatsoever. So it's wider
range. And that's not bad, per se, right?
CHATTERLEY: Yes, I think you're also a diplomat, sir, because you would never pick winners and losers when they're all your clients.
KLEIN: We are in the race.
CHATTERLEY: But I do wonder whether, -- I just wonder whether it's, I know what you're doing. I just wonder whether it is ultimately a challenge for
you if everybody is competing, particularly on costs, because they pushed that requirement to cut costs down the supply chain.
And that is at the heart of what you do in it and the technology and the software and what you provide in terms of parts? Do you worry that it means
margin compression down the line as they fight to compete for you?
KLEIN: Of course, yes. And that's where we need to continuously increase competitiveness. Yes, there's no island where you can rest and watch the
industry moving. We need to move fast. And the best way to succeed is run faster than the others. And that of course, means if you ask me, the
toughest part of the transformation is still ahead of us.
Yes, we need to adjust structures. We need to talk about, where are we competitive, and where are we not competitive.
And if we can transform our companies then we might ultimately not be successful, therefore fully right, toughest time still ahead.
CHATTERLEY: Yes, a perfect place to end the conversation. Holger, we will reconvene. I know and I love your enthusiasm. Nine months in I can see
you're very excited about what's to come, great to chat to you, sir. And have fun there.
KLEIN: Thank you Julia.
CHATTERLEY: Thank you sir. Holger Klein, the CEO of ZF group there. Thank you. OK, coming up here on "First Move", move over LVMH. A drug maker is
now Europe's most valuable firm with its magic bullet for obesity, all the details on that, next.
CHATTERLEY: Welcome back to "First Move", U.S. stocks are up and running for the first time after the long Labor Day break. Call it if you will a
laborious labor for us open. The major averages little changed in early trading and more cautious atmosphere as you can see after last week's solid
All prices shooting higher in the past hour on, what that Saudi Arabia is keeping production cuts of some 1 million barrels of oil per day in place
until the end of the year, U.S. crude currently up more than 2 percent and Brent crude now surpassing, $90 a barrel. Also today investors gearing up
for what's expected to be one of the biggest IPOs on Wall Street this year?
Chip design firm arm now expected to rise at some $4.8 billion when it begins trading on the NASDAQ later this month. That's lower actually than
previous estimates. That's a sign of the times. The IPO will give on a valuation of around $52 billion arm of course being spun off from Japan's
And Danish drug maker Novo Nordisk dethroning luxury goods giant LVMH is the most valuable company in Europe. The shares have soared 40 percent this
year, thanks to huge demand for its weight loss drugs as then pick and Wegovy, the CEO telling CNN it will take years to catch up to current
Meg Tirrell joins us now, Meg that is exactly what I was going to ask you and congratulations. This is an amazing interview at a very important time.
The comments that he made simply about the issues they've got in keeping up with the sheer amount of people that want to take these drugs, despite the
MEG TIRRELL, CNN MEDICAL CORRESPONDENT: Yes, Julia, I mean, these are very expensive drugs in the United States. Their cost is more than $1,300 per
month without insurance. But they are incredibly popular so much so that they've said they can't keep up with demand.
We thought that might last a few months, the CEO telling us in a sit down interview, it's going to be potentially a lot longer than that. Take a
(BEGIN VIDEO CLIP)
TIRRELL: I think you've limited some of the starter doses for patients trying to begin the medicines so that you can supply patients who are
already on the medicine at the higher doses.
How long do you think fact that to have to continue?
LARS FRUERGAARD JORGENSEN, CEO, NOVO NORDISK: Yes, we decided to limit those data doses, because it's really important for us that patients who
start on treatment can try trade up to the maintenance doses. When will they stop? Well, if I knew how big the demand would end up being, I could
But I have the sense that it could actually take quite some years before we have actually fulfilled the demand out there. There are more than 100
million Americans living with a BMI of above 30. And many of them those would like to be in treatment. We are just scratching the surface.
(END VIDEO CLIP)
TIRRELL: And Julia, another issue with these medicines, of course that everybody asks about is can you ever stop taking them and so far, the data
have suggested you have to stay on them in order to sustain the weight loss that we see, we asked the CEO what their data has shown about that, and
studies? Here's what he told us.
(BEGIN VIDEO CLIP)
JORGENSEN: We have studies showing that there is sustained weight loss or up to two years. But we also started showing that if you stopped treatment,
your weight will come back. So I think it's important also to note here that, like those who live with obesity would know, obesity is a chronic
disease, just like high blood pressure, or type two diabetes, you need to keep treating it or else the symptoms will come back.
TIRRELL: How do you address the suggestion that a weight loss drug should be temporary?
JORGENSEN: I would say that's based on a flawed logic around what is obesity. One can speculate over years of maintained weight loss, would that
change your body set point in terms of what is your perceived normal weight? We all built by nature to store energy, store fat for say, a cold
winter or whatever.
And maybe we can address that over time. But all the evidence so far, indicates that it's actually chronic treatment.
(END VIDEO CLIP)
CHATTERLEY: I'm so glad you asked that question. My mind's blowing up. A third of Americans basically, with a BMI above 30 arguably could be taking
this $16,000 a year to be able to afford it and him basically saying you could be on this for life and you keep going, assuming you've got the money
No wonder the share price looks the way is it looks undervalued based on those kinds of metrics, Meg, what about side effects? Can we talk? Yes.
TIRRELL: Yes, it's a huge question that a lot of people have. And we know that tolerability for the drugs is kind of an issue that sort of nausea and
vomiting you can feel when you start them. But what about bigger side effects, and particularly over the long term, if you really have to take
these potentially for life, one thing that CNN has reported on is the idea of stomach paralysis.
We've talked to a few patients who said they experienced this, it has not been proven to be caused by the drugs, but we asked him specifically what
they are seeing there. Here's what he said.
(BEGIN VIDEO CLIP)
JORGENSEN: So I can only say that we as a company take safety very seriously. And we also applied to collect all data that we become aware of.
And when we look at totality of that data, we feel that it's a very, you know, well understood mechanism. And it's also safe and efficacious based
on the labor.
Obviously, when you get into, say, very large patient populations, and have millions of patients using your medicine, you have different types of
medical conditions among those patients. And sometimes, then it's, you know, causality is being mentioned. And of course, we have to look into
But so far, there's nothing in what we can see, that indicates any particular safety concerns, like what we talked about, yes.
(END VIDEO CLIP)
TIRRELL: So Julia, these drugs are shaping up to potentially be the biggest class of medicines of all time. And so this questions about safety, how
long you have to take them, and of course, how much they cost, whether people can access them will continue to be huge questions.
CHATTERLEY: Yes, I'm still grappling with the math in my mind. And I do think there's a bigger conversation here to have about perhaps, nutrition
and exercise and I know we can come back to these conversations again, but as good as it is for them, and they found some kind of solution.
Bigger picture, I'm not sure it's the answer. Well, I know it's not the answer, because we can't afford it. Meg, I could keep you here for an hour
and we could debate it. Meg Tirrell, great job, great interview. Thank you so much. Yes, fascinating, Meg Tirrell there.
OK, and finally nearly a year after her passing a commemorative coin has been revealed honoring Queen Elizabeth the Second at least. They're calling
it a coin, but it's really the size of a large dinner plate.
CHATTERLEY: It is made from almost eight pounds of gold. It contains around 6400 diamonds and it took more than a year to produce. It's dubbed the
crown coin, and it's valued at around $23 million. I wonder how many of those were actually made Wowzers. And the real finally, finally, call it a
burning desire to get out of Burning Man.
Let me just show you this because you're going to look at some satellite pictures of the Burning Man Festival area in Nevada desert. Now party goers
who gathered for the week-long event are finally now being allowed to leave after heavy rain forest roads to close and turn the site into a mud bath.
Truly, a mass exodus is something like 72,000 people who I'm sure seriously in need of a shower to wipe off some of that mud rush to get home. The
Burning Man more like an exhausted man or woman at this point. And that's it for the show. If you've missed any of our interviews, today, there'll be
on my X and Instagram pages you can search for @jchatterleycnn. "Connect the World" is up next. And I'll see you tomorrow.