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First Move with Julia Chatterley
Modi Claims Victory in India Elections; Modi Set to Win Historic Third Term; 15 People Killed in Israeli Assault in Gaza; Hamas Must Be Destroyed for War to End; Fires in Northern Israel After Rockets Fired from Lebanon; Israeli Strike in Syria Kills Iranian Adviser; Biden Tightens Migration Policy; Biden Unveils New Immigration Policies; Toyota Headquarters Inspected; Japan Ramps Up Car Industry Safety Investigation; U.S. West Coast Braces of "Heat Dome"; China's Space Probe Heads Back to Earth; Organic Vertical Strawberry Farms; Djokovic Drops Out of French Open; Federer and Nadal in Louis Vuitton Campaign. Aired 6-7p ET
Aired June 04, 2024 - 18:00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[18:00:00]
JAKE TAPPER, CNN ANCHOR: Experts say the female figures on the wall depict the four seasons of the year. Other figures are likely allegories of
agriculture and shepherding. The building has been buried since the eruption of Mount Vesuvius in the year '79.
If you ever miss an episode of "The Lead," you can listen to the show whence you get your podcast. The news continues on CNN with Wolf Blitzer
right next door in a place I like to call "The Situation Room." I'll see you tomorrow.
JULIA CHATTERLEY, CNN HOST, FIRST MOVE: -- a.m. in Shanghai, 8:00 a.m. in Sydney, and 6:00 p.m. here in New York. I'm Julia Chatterley. And wherever
you are in the world, this is your "First Move."
And a warm welcome once again to "First Move." And here's today's need to know. Modi made it. India's prime minister wins a third term, but his
outright majority slips away and investors take fright.
Biden's border breakthrough. The U.S. president takes action on the southern border with sweeping new restrictions in a move that echoes
measures attempted by the Trump administration.
Dome dangers. The Western U.S. bakes under a so-called heat domes sending temperatures soaring.
And a vertical vision. We speak to the startup combining robots and bees to make Japanese strawberries right here in the United States. That
conversation and much more coming up.
But first, the Indian election results are in, and Prime Minister Narendra Modi set for a historic third term. But votes for his own party fell far
short of expectations. The BJP Party losing its outright majority in parliament for the first time in a decade. And one particularly painful
loss, Uttar Pradesh, India's most populous state, home to more than 200 million people, including Modi himself and a former BJP stronghold.
The stock market too, as I mentioned, had an immediate reaction with the Sensex suffering its worst day in four years. Losing ground, I should say,
from a record high. Ivan Watson joins us now from New Delhi. Ivan, good to have you with us. A huge stock, I think that accounts for the stock market
reaction. Some analysts were anticipating him increasing and getting a stronger mandate. And that's certainly not what we saw. How much of a
personal blow is this to Modi?
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Oh, if it is, he's not admitting it right now. He certainly didn't even hint that he might be
facing more challenges when he spoke to supporters earlier this evening. There is only one seat left to be determined, one race and if it's taking a
long time to get that, well, there's probably good reason for it, because, Julia, there were more than 642 million ballots cast in this mammoth six-
week long election. That's more than the population of many countries. So, that was a major undertaking.
And yes, a surprise result. It did catch pollsters and certainly, the Indian stock market by surprise. Narendra Modi, the prime minister, is
still appears to be in first place. He's still in first place, but he's going to face new challenges if he wants to continue to be prime minister.
(BEGIN VIDEOTAPE)
WATSON (voice-over): The world's largest election is now over, and just hours into the massive vote count, Indian Prime Minister Narendra Modi's
followers were already partying.
WATSON: Supporters are celebrating here at the headquarters of the BJP, and it does look like Narendra Modi will govern for another term. But it
does not seem that he has won the landslide victory he predicted, which suggests he'll govern with a weaker electoral mandate.
WATSON (voice-over): At a rally in the capital, Modi declared victory, even though, for the first time in a decade, his party failed to win a
majority of seats in parliament. Modi will have to form a coalition government if he is to continue to rule. The opposition say they've hurt
the powerful prime minister.
RAHUL GANDHI, INDIAN OPPOSITION LEADER: The country has unanimously and clearly stated, we do not want Mr. Narendra Modi and Mr. Amit Shah to be
involved in the running of this country. We do not like the way they have run this country. We do not appreciate the way they have attacked the
constitution.
WATSON (voice-over): Modi's opponents accused the prime minister of limiting freedom of speech and press with crackdowns on political rivals.
Modi and his party have also targeted India's Muslim minority with Islamophobic rhetoric.
NARENDRA MODI, INDIAN PRIME MINISTER (through translator): Do you think your hard-earned money should be given to infiltrators?
[18:05:00]
WATSON (voice-over): Modi's brand of Hindu nationalism may have reached its limit. His party's candidate lost in Ayodhya, the town where he
inaugurated a controversial new Hindu temple on the site of a demolished mosque. Modi's still seen by many as the business-friendly steward of the
world's fifth largest economy. Indian stock markets plunged more than 5 percent on Tuesday, upon news of Modi's lackluster election results.
Though weakened, Modi is still the most powerful and polarizing politician India has seen in decades.
(END VIDEOTAPE)
CHATTERLEY: Yes. Ivan, you certainly can't take that away from him. But to your point about now the prospects sort of forming some kind of coalition
government, do we have any sense of to what extent that will perhaps upset investors, as we saw with less reforms, perhaps economic reforms in
particular, and/or perhaps curtail or limit some of the more controversial policies that have been enacted too?
WATSON (on camera): Right. Well, some of the big infrastructure projects that Modi has liked to champion, presumably, it might get a little bit
trickier if he's got to work with coalition partners to try to get some of that done and pushed through. And Modi does not have a long track record of
really engaging in the deal making and compromises that of everyday parliamentary politics.
And I do think, you know, just judging anecdotally by some conversations I had with rank-and-file supporters, I do think that there is a perception,
even among some of those fans of Narendra Modi, that he may have overreached. I spoke with a 25-year-old supporter at the BJP headquarters
here in New Delhi, and he said that there are a lot of people in India who were annoyed at the BJP government, the past won, that it was making
monopolistic decisions, as he put it.
Decisions that this supporter liked, but that he acknowledged were irritating other people. And that may have to curtail some of the more
controversial decisions that -- and policies that Modi has pursued in the past. The Hindu nationalist rhetoric that he has pursued, how can he follow
that if he's in a coalition with a secular party or a network of secular parties? And after all, this is supposed to be constitutionally a secular
country. Julia.
CHATTERLEY: Yes, fascinating, Ivan. It may be anecdotal, but it certainly ties with the result that we've got, because there has been that shift in
absolute balance of power, which we'll see what comes. Ivan Watson in New Delhi for us there. Thank you so much for that report.
Now, at least 15 people lost their lives in Central Gaza Tuesday during Israeli military operations, at least according to the Ministry of Health
in Gaza. Meanwhile, the Israeli military says large fire broke out in Northern Israel after the IDF and Hezbollah in Lebanon exchanged fire.
This comes as Qatar is trying to help broker the ceasefire deal outlined by U.S. President Joe Biden last week. It says there are "contradictory
statements" by Israeli ministers on the proposal, urging the government to take a unified position. Qatar also says it's still waiting to hear an
official response from Hamas. Jeremy Diamond has more.
(BEGIN VIDEOTAPE)
JEREMY DIAMOND, CNN CORRESPONDENT: Over the course of the last few days, the Israeli prime minister has been hammering home the fact that this
ceasefire proposal that is now on the table is not, in his view, going to lead to an end to the war, at least not until Hamas is first destroyed on
the battlefield in Gaza.
And he's been doing that, of course, because two key members of his right- wing governing coalition, the far-right finance minister, Bezalel Smotrich, and the national security minister, Itamar Ben-Gvir, have been threatening
to bolt from the government, to topple this current coalition government if the Israeli prime minister follows through with this deal.
But not only have the Israeli prime minister's words about this not leading to a permanent ceasefire or an end of the war not been successful in
convincing those ministers to back off of these threats, but they're also now sparking growing concern within the Israeli government about the effect
it's having on this Israeli proposal and the ability of Hamas to be able to accept it.
And that's because this proposal is intentionally ambiguous in certain parts in order to try and sell Hamas on the idea that it will, as they want
it to, lead to an end of the war, lead to a permanent ceasefire. That's exactly how President Biden framed it in his remarks last week. And it's
also how the mediators are now trying to sell Hamas on this proposal.
So, it remains to be seen whether or not Hamas will accept a ceasefire agreement that doesn't explicitly have an Israeli commitment to a permanent
ceasefire, to an end of the war and the withdrawal of all Israeli troops on the front end of this deal. But that is indeed what is being presented to
them now.
[18:10:00]
Now, as all of Is happening, we're also witnessing growing concerns in Northern Israel as these cross-border clashes between Israel and Hezbollah
have been heating up in a real way, not only in terms of the intensification of the barrages of from both sides, but we're also now
witnessing two active wildfires in Northern Israel as a result of the rocket fire from Hezbollah in Lebanon. And also, at least one of these
fires, according to Israeli Fire and Rescue Services was actually caused by an Israeli interceptor missile that was trying to intercept these rockets
being fired from Hezbollah.
There are now two active fires in Northern Israel, 22 firefighting teams actively working to extinguish these blazes in coordination with the
Israeli military, and these blazes are being worsened, according to the Israeli Fire and Rescue Services by changing winds, high dryness, high
temperatures.
But of course, beyond that, it's drawing attention to the fact that this situation in the north -- in Northern Israel has yet to be resolved, that
these clashes with Hezbollah are still continuing eight months into the war and tens of thousands of Israelis have yet to be able to return to their
homes, that's prompting the Israeli military's chief of staff, Herzi Halevi, today saying that there may well soon be a reckoning with Hezbollah
in order to resolve this situation. Unclear exactly how that situation will be resolved.
(END VIDEOTAPE)
CHATTERLEY: Our thanks to Jeremy Diamond there. Now, in Syria, an adviser to the Islamic Revolutionary Guards Corp has been killed in Israeli
strikes, according to Iranian media. Those reports suggest it happened on Monday near the city of Aleppo. So far, Israel has not responded. If true,
though, this would mark the first report of an IRGC member being killed by Israel since the April strike on Iran's consulate in Damascus.
And President Biden rolling out sweeping new measures concerning the border with Mexico as he attempts to address one of the biggest challenges facing
his re-election campaign. Biden's new executive actions on immigration allow the government to ban migrants who cross the border illegally from
seeking asylum, which has changed to a decades long policy. The new rules apply from midnight tonight. The president did, however, also acknowledge
that more work is needed.
(BEGIN VIDEO CLIP)
JOE BIDEN, U.S. PRESIDENT: We must face the simple truth to protect America as a land that welcomes immigrants, we must first secure the border
and secure it now. The simple truth is there is a worldwide migrant crisis. And if the United States doesn't secure our border, there's no limit to the
number of people may try to come here because there's no better place on the planet than the United States of America.
(END VIDEO CLIP)
CHATTERLEY: Now, President Biden is using the same authority that the former president, Donald Trump, used in 2018 to enact similar restrictions,
though he was eventually blocked by the courts. Priscilla Alvarez has more on Tuesday's announcement from the White House.
(BEGIN VIDEOTAPE)
PRISCILLA ALVAREZ, CNN CORRESPONDENT: President Biden announced a sweeping measure this afternoon that will make it far more difficult for migrants to
seek asylum at the U.S.-Mexico border. What this action does is shut off asylum access for migrants crossing the border illegally if a daily
threshold of 2,500 is met, and that has already been met. And for that reason, this will start to take effect at midnight tonight. That means that
authorities can turn migrants away back to Mexico or to their origin country.
Now, there are some exemptions for unaccompanied migrant children, as well as people with vulnerabilities, especially those who are victims of severe
human trafficking, that according to the administration. But they are already being met with fierce backlash from progressives and members of
their own party who say this is far too similar to what Donald Trump tried to do in 2018.
The ACLU also saying that they plan to challenge this in court. And the courts are exactly what stopped President Biden's predecessor the last time
around. Now, President Biden addressed that criticism in his remarks, saying that they should be patient, and noting that American's patience has
already been wearing thin. Of course, immigration being an issue, a top issue for American voters going into the November election.
So, all of this amounts to a significant policy shift from 2021 for this White House, which started by saying that they wanted to reform access to -
- or reform the asylum system and now, may -- taking measures to shut it off, given the situation on the border and saying that the current
situation is simply not tenable. Back to you.
(END VIDEOTAPE)
CHATTERLEY: Thanks to Priscilla Alvarez there. Now, I want to bring in Gustavo Valdes, who's live from Mexico City for us. Gustavo, great to have
you back on. What's the response, if any, been so far from the Mexican government? And have we also heard from migrants, potential migrants at the
border? Because part of the ongoing challenge here is not all those people that will be refused asylum originate in Mexico, and that's a huge
challenge.
[18:15:00]
GUSTAVO VALDES, CNN CORRESPONDENT: Well, we -- what we heard this morning, Julia, and the daily press conference from the president was he was not
concerned. He really didn't give a lot of the details. Obviously, there must be a conversation prior to the announcement, but he didn't explain
what role will Mexico have in helping the United States implement these policies. What he said is that he's not worried about deportations. He said
this is something that happens all the time, that they can deal with that.
He also assured Mexicans that the border will not be shut down. You know, we keep hearing that word, as Priscilla explained, that is going to apply
to people who are detained at the border. They will be deported quickly, not shutting the legal crossing into the United States. The Mexican
government, they said, they would have more details about this later on. We are still waiting for those details.
Meanwhile, we did talk to some migrants in the southern state of Chiapas, which is the entry point for many of the ones coming from South and Central
America. And quite frankly, they were not concerned. They basically told us, you know, policies changed, they do one thing, they change it, they put
something else, it goes away. They say they will continue their journey and try to get into the United States.
What could happen is that, what we've seen, the reason the numbers are so high is because migrants knew that if they turned themselves into
immigration authorities once they crossed over, they might be processed and allowed to stay in the United States while they waited for an appointment
for asylum. Now, knowing that they would be deported, they perhaps are going to try to avoid authority, still get into the United States. We would
just know about them because they would not be caught.
CHATTERLEY: Yes, Gustavo, and you make a vitally important distinction here, which I think we have to reiterate as well, is that these are
measures to try stem illegal border crossings and those trying to then -- go on to claim asylum versus the general border where people cross on a
daily basis and are allowed to do that and have permission to do that.
So, yes, be very careful with the term shutting the border down. It means a very specific thing in this case. Gustavo Valdes in Mexico City, thank you,
sir, for that report.
OK. Straight ahead, you're up-to-the-date weather forecast as always. Plus, the unwanted visitors at Toyota's headquarters in Japan on Tuesday, the
latest on a growing safety scandal engulfing major Japanese automakers.
And vertical strawberry fields forever. The firm producing Japanese strawberries right here in the United States using solar energy,
groundbreaking technology as well as a little help from some very busy bees. Stay around for that conversation, coming up.
(COMMERCIAL BREAK)
[18:20:00]
CHATTERLEY: Welcome back to "First Move." And a more pleasant tune for June on Wall Street, topping today's "Money Move." U.S. stock staging a
late-day turnaround in volatile trade Tuesday, boosted at least in part by lower bond yields. Those yields pulling black amid news that U.S. job
openings fell to their lowest levels in more than three years.
And oil prices also falling for a second straight day, too, as some OPEC+ nations plan to phase out production cuts later this year. So, that will
mean more oil on the market, hence the price pressure. And oil prices may be down, but the pay for U.S. CEOs is way up. New numbers show the median
compensation package for the CEO of an S&P 500 member firm rose more than 12.5 last year to more than $16 million. That's some 200 times as much as
the median employee made in the same period. Wow. It pays to be a CEO.
Now, across Asia on Tuesday, we had Chinese stocks finishing higher. Meanwhile, Indian stocks fell from record highs due to that disappointment
regarding a weaker than expected showing for Prime Minister Narendra Modi's BJP Party in the nation's election. It did fall from record highs though.
So, perspective as always critical, even in this kind of sizable moves.
Now, AT&T reporting its second major outage in the United States in the span of four months. The company said on Tuesday a glitch is stopping calls
with other carriers. It says, calls between AT&T customers though are still going through. Some cities issued alerts that the outage was impacting
calls for emergency services. However, AT&T said those alerts were triggered accidentally. The company suffered a nearly 12-hour outage back
in February. As soon as that comes back, if it's during the show, we will let you know.
Now, the Japanese auto industry facing uncomfortable new questions over its testing and safety procedures. Five of the country's top automakers,
including Toyota, are accused of submitting incorrect or manipulated safety data. And Toyota is halting shipments of some vehicles as a precaution. On
Tuesday, the Japanese government intensified its probe on the matter, as Hanako Montgomery reports.
(BEGIN VIDEOTAPE)
HANAKO MONTGOMERY, CNN CORRESPONDENT: The Japanese Transportation Ministry has confirmed to CNN that Toyota's headquarters were raided on Tuesday
morning local time. The world's leading carmaker is facing allegations of tampering with safety certification tests. Specifically, the ministry
alleges that Toyota submitted inaccurate data during pedestrian safety tests for three current models, and used modified test vehicles during
collision safety tests for four previous models.
These revelations have escalated concerns about a brewing safety scandal, which the chairman of Toyota addressed at a press conference on Monday.
Let's hear a statement.
AKIO TOYODA, TOYOTA CHAIRMAN (through translator): As the person in charge of the Toyota Group, I would like to sincerely apologize to our customers,
to car fans and all our stakeholders for this.
MONTGOMERY: Now, the last time Toyota's headquarters faced a raid was back in 2017 over concerns regarding airbag safety. But financial experts tell
me that there's not much cause for concern about these particular raids. They point out that Japan's safety certification tests are notoriously
rigorous compared to those of other countries. And how out of the hundreds of thousands, if not millions, of safety tests conducted by Toyota over the
past 15 years, only a handful have raised concerns.
Financial experts also say that given Toyota's global prominence, these allegations have garnered significant attention. This incident also follows
an internal investigation into Daihatsu Motor, a subsidiary of Toyota, which revealed lapses in collision safety testing.
Hanako Montgomery, CNN.
(END VIDEOTAPE)
CHATTERLEY: Now, Toyota offices aren't the only place feeling the heat. The Western U.S. is sizzling under a heat dome. You can expect temperature
records to be broken, and it's not yet even summertime. For more on this, I'm joined by Chad Myers.
Strangely and still no complaints from me in sizzling New York. And it's probably even hotter where you are, Chad. Talk us through it.
CHAD MYERS, CNN METEOROLOGIST: Yes. And it is hot in Phoenix and Vegas and all the way through the desert southwest, temperature is well over 100
degrees over the next days straight. It's heat dome. It's a ridge of high pressure that's in the west.
[18:25:00]
Think of it like we closed the doors and rolled up the windows in the car. The wind isn't blowing the sun's coming in. There are no clouds and the
heat is just building here in this area of the country. And that's going to be the case over the next few weeks. It is going to be hot. We're going to
break over 100 record highs across the cities here that are in purple. Not quite Los Angeles because of a marine influence that cooler water just off
the shore, but there's going to be a lot of heat here across parts of the west where people need to be outside and do things, need to work outside.
Look at the 113 degrees in Phoenix. You do some multiplication here and all of a sudden, in Celsius, you're well over 40. Now, this is a stat that came
in today. The last time Las Vegas broke a record low, not a record high because we break those all the time, the last time a record low was 25
years ago today. Not another record low since.
We're going to be up over 100 degrees. It's hot in the sunshine, people try to walk the strip there and it is another couple of hot days. It's going to
be rainy in the east, going to keep the temperatures down here for sure.
Not rainy yet for India, still waiting on the monsoon for most of India. New Delhi, you're still going to be well up into the middle 40s. The rain
is down to the south. Yes, the monsoon has arrived down here and some of that rain is quite heavy, it could be 150 millimeters, maybe six inches of
rain in some spots. But for the most part, for the bulk of the people living in India to the north, we're still waiting on those clouds, still
waiting on that rain, still waiting for everything to change because they have the same type of heat dome going on now there in India when all of
that moisture comes up for the monsoon, that all goes away and it rains just like it's raining in the eastern part of the U.S. right now. Julia.
CHATTERLEY: Wow. I'm still on that 25 years since we saw a record low there. That's going to be 25 years and counting. Sadly, I fear. Chad Myers,
thank you for that.
MYERS: You bet.
CHATTERLEY: OK. After the break, a fanfare from the far side of the moon. China's unmanned space probe is heading back to Earth with some very
special and unique souvenirs. Find out what, next.
(COMMERCIAL BREAK)
[18:30:00]
CHATTERLEY: Welcome back to "First Move" with a look at more of the international headlines this hour. The second day of Hunter Biden's federal
gun trial has now ended. U.S. President Joe Biden's son is accused illegally buying a gun while abusing or being addicted to drugs. This is
the first time in U.S. history that the child of a sitting president has faced trial. Cross-examination of the first witness and FBI agent is set to
pick up once again on Wednesday.
And the former interpreter for Shohei Ohtani has pleaded guilty in the United States to stealing millions from the baseball star. He now admits to
illegally transferring nearly $17 million from Ohtani's bank account to cover gambling losses and other expenses. The interpreter faces up to 30
years in prison. Major League Baseball officially cleared Ohtani of wrongdoing in the matter on Tuesday.
And supporters of the late Russian opposition leader, Alexei Navalny, marked his birthday on Tuesday. Navalny died in a Russian prison earlier
this year. Hundreds attended a tribute concert in Berlin on what would have been his 48th birthday. His widow and former team members were all in
attendance, and they said the revenue from tickets would be donated to other Russian political prisoners.
And in the U.K., political rivals have poured cold water on Nigel Farage's plans to return to politics. Well, I'm talking literally. Someone did
literally douse the Brexiteer with a drink during his campaign launch. Farage says he'll run as candidate for the hard right Reform Party in the
July 4th general election. He was unharmed in the attack, and the 25-year- old woman has been arrested on suspicion of assault.
Chinese space officials are clearly over the moon thanks to their nation's latest lunar leap. Beijing's plucky unmanned lunar probe is on its way home
after visiting the far side of the moon, a key milestone in China's efforts to one day land an astronaut on the lunar surface. The spacecraft is
bringing scientists back something a lot more exciting than a T-shirt, too. You could call it some very special bling for Beijing.
Marc Stewart joins us now. Marc, wow, what a tee off. It's lunar rocks. I'm sort of more partial to diamonds, if we're talking rocks. But this is very
exciting, too. On a more serious note, though, is this more about the science or more about the symbolism of the moment for China?
MARC STEWART, CNN CORRESPONDENT: Hi, Julia. Good morning. I can count on you on the appropriate space terminology. Oh, look, this is certainly a big
deal from a scientific standpoint. But symbolically speaking, this is a very big political statement that Beijing is making, not only with the
landing of this rover and the collection of the samples, but right away, I want to show you an image that was released by the Chinese government of a
Chinese flag being unfurled on the lunar surface, that speaks volumes.
It's such an iconic image, and it's happening at a time when Beijing is really trying to assert itself as a global player. This gives China
additional political capital, political strength around the world because of this kind of achievement. But it's not just the global audience, it also
is doing a lot for the psyche of the nation.
I was there when that launch took place. And I remember we were talking to a young man and I asked him, what does this mean to you? What is the
message behind this launch? And he said, it shows we have strength that we can send a rocket to the moon. It's a feeling that is being embraced by
that young man, but also by a Chinese scientist who spoke yesterday. Let's listen to what he had to say about this accomplishment.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE (through translator): The national flag should be able to inspire patriotic enthusiasm among Chinese people around the world. I
think people across the country should be looking forward to this picture and be proud of our great motherland.
(END VIDEO CLIP)
STEWART: This unfurling of the flag, a symbol of pride for the motherland. And that is the feeling that is being circulated throughout China about
this. Julia, just to get back to the science real briefly, these samples that were collected will be brought back to Earth. It will take more than a
month for this lunar to arrive back in the inner Mongolia region.
[18:35:00]
But these samples are going to be very telling, not only about the moon, but also just about gaining knowledge about the impact and the creation
almost of the solar system.
CHATTERLEY: Absolutely. And certainly, advances China's lunar ambitions, to your point. I mean, we know, this is an increasingly competitive field.
What was it, the phrase that NASA's chief, Bill Nelson, used? It's the space race. And I think you can't debate that any longer, particularly when
we see events like this.
Marc, go back to the people that you were speaking to when you were at the launch there, particularly young people, how closely is this being
followed, whether it's for the technological ambitions or the symbolism to go back to that word again of what this means for China's place in the
world, be it space or anything else?
STEWART: Well, it certainly is being followed. And, you know, I think a phrase that I used yesterday is that this is certainly a big ego boost to
China. And when you are trying to become a power player, I mean, China certainly is a power player, but when you're trying to further establish
yourself even further, you know, you want to talk about political accomplishments, but the scientific technical accomplishments are very big.
And the fact that this lunar landing happened is going to give China more ammunition for the future, especially with this aspiration of landing an
astronaut or astronauts by 2030. This shows that China has the technical prowess, especially for space program that is rather young compared to
others like the United States.
So, this is big bragging rights, but it also does have some weight, some heft to all of this. And the anticipation is that China will be very much a
contender in this lunar landing of an astronaut, along with the United States, India, and many other nations around the world.
CHATTERLEY: Yes, gauntlet certainly thrown in this case. Marc, great to have you with us. Thank you.
Now, coming up on "First Move," something else that's out of this world, at least as far as your taste buds might be concerned. How the firm behind
these unique Japanese strawberries is aiming to take the humble berry to new vertical farming heights, next.
(COMMERCIAL BREAK)
[18:40:00]
CHATTERLEY: Welcome back to "First Move." And now, for a berry delicious story. It may be one of the most luxurious and expensive strawberries on
the market. Each one costing around $2. So, that's around $16 per pack. Though Oishii's Japanese strawberries are rapidly gaining fame here in the
United States.
The question is, what makes them so special? Well, these exquisite berries originated from Japan. They're cultivated in cutting-edge vertical farms
right here in the United States, free from pesticides and genetic modifications, according to the company. And inside their high-tech indoor
farms, bees, robots, and farmers are all working in harmony in a blend of nature and technology.
Currently, these strawberries are available in eight states and in Washington, D.C. The firm says they sometimes ship within 24 hours of
harvest to help maintain freshness and sweetness. And on Tuesday, they opened a new farm in New Jersey right next to a massive solar field. By the
way, oishii means delicious in Japanese.
And joining us now for more, co-founder and CEO of the firm, Hiroki Koga. Hiroki, fantastic to have you on the show. We have to set the scene, first
and foremost, because you grew up in Japan and then, several years ago you came to the United States. Just describe what it was like to eat
strawberries and I think tomatoes importantly as well. And I'm smiling because I think I had the same experience. And what inspired you to bring
Japanese strawberries to America?
HIROKI KOGA, COFOUNDER AND CEO, OISHII: Yes. So, I came to the U.S. in 2015. And I actually was in California. And back then I didn't know that
California had the highest quality produce in this country. And I went to the local grocery store. And everything looked amazing. Everything was big
and huge. It's shiny. But when I tasted the produce at home, especially strawberries and tomatoes, they were a big shock to me because the quality
was just so different from what I was used to eating in my home country of Japan.
CHATTERLEY: And that was when you said, OK. I can do this better. And you decided to bring omakase berry seeds from the Japanese Alps to the United
States and set up shop here. Just explain how, because it's not just as simple as saying, hey, I'm going to put some seeds into a field and grow as
we showed. It's a vertical farming technique and with other differences, too.
KOGA: Yes. So, in order to grow Japanese strawberries, you need Japanese climate conditions, which was very -- almost impossible to find in the U.S.
And so, we had to do it in a vertical farm where we can control every aspect of the environment and basically mimic the Japanese Alps.
And so, we started building our farm here in New York, right next to our consumers. And it took us seven years to get to where we are today, but we
figured out how to fly bees in a vertical farm, which was once thought to be possible in a soundless environment, but that's our bread and butter.
CHATTERLEY: OK. Wait, you have to rewind. So, you've got flying bees, you've got farmers, you also have robots working. And the racks move as
well. It's not just a case of those being static vertical shelves of strawberries. Explain this too, because the technology behind this starts,
at least, in some ways begin to help consumers, I think, understand the price beyond the taste and flavor and the smell actually. But we'll come to
that.
KOGA: Yes. So, the first thing that we did was we had to figure out how to convince the bees to fly, and it's on this vertical farm. So, that took us,
you know, literally the first few years to really figure it out. Back then, nothing was really automated. So, we had static racks. We had humans, you
know, going to the berries to pick the berries, but after we figure out the pollination, we really accelerated our automation initiative.
And so, from this most recent facility that we just announced, we have strawberries that's almost stored just like a library shelf. And they'll
come out when they need to be attended by humans or robots. And we also have these A.I. powered robots that can detect the ripeness of the berries.
So, they'll automatically go and pick the berries that's ready to go.
So, it's almost the future of farming that you would only see in sci-fi movies, but it's become reality and it's done at a scale now.
CHATTERLEY: Do you have less humans than you began with there as a result of the automation and the A.I. and the robotics, just out of interest?
KOGA: Well, so just a scale of our facility has expanded so, so big. So, the absolute --
CHATTERLEY: Relative basis?
KOGA: -- has gone up. But in terms of humans per plants that we grow, it's -- yes, it's definitely more efficient.
CHATTERLEY: Yes, interesting, because that's one of the -- sort of catalysts, at least, for the price. OK. So, I was gifted a box of these,
and I've got them. There are, I have to say, two missing, because I just couldn't resist in the hour leading up to this show. The smell's one thing,
the taste is astonishing.
[18:45:00]
Then I have to show our viewers the price, because I went and bought some from a nearby retailer. $0.28 per strawberry. I had to get rid of two of
them because they were sort of discolored and damaged. Yours are all perfect. Obviously, your one, per strawberry, the cost, $2.30. I mean, they
literally look -- when I was gifted them, I thought they were genetically modified, because they are literally so perfect. Color, flavor, smell,
texture, everything which we've ascertained isn't. Does it justify the cost, Hiroki? Because they are very expensive.
KOGA: Yes. So, actually right now, and most of the retail stores, including, you know, whole foods, we are -- a pack of our berries that
contain somewhere between on average eight to sometimes even 20 berries, depending on how big the berries are, we retail for $9.99. So, I think
we're a little bit cheaper than what you've described.
But still, it is still a little more expensive than your conventional berries. But to your point, it's always the same quality, and it is 100
percent pesticide free, and it's probably the most sustainable strawberry that you can find on the market. And as we're scaling this operation, we
went from $50 to $10 or $9.99 in the past five years alone. So, you can probably imagine where we might get to another five years.
CHATTERLEY: And actually, that's a lot cheaper. It's still expensive, but to your point, the mass on that's very different. Are you profitable as a
company? I know, you're expanding and we mentioned the new factory. Are you profitable? I know you've just raised a lot of money from some big Japanese
investors too.
KOGA: Yes. So, at this point, we're not profitable as a company because we invest significantly in R&D. But I think the most important thing is are we
profitable on a facility basis? And that's what we are really proud of proving at the scale. You know, if we can prove that this is a profitable
operation and there's a big enough market at this -- at the scale of a facility, I think this will allow us to take the whole industry to the next
phase. And so, we already have a profitable business model there.
CHATTERLEY: You said the magic word, scale. How scalable, to your point, is this? If we push beyond even tomatoes and strawberries, I love the idea
of a vertical farming, I love reducing and removing the pesticides. We could have an argument over labor admittedly. But how scalable is this, in
your mind? And we've got to think about cost too. Can you bring costs down further?
KOGA: Yes. So, as I mentioned earlier, we came from $50 five years ago to now $9.99. And so, I'm pretty confident to say that at least with
strawberries, we can at least get into, you know, a few bucks per pack range very quickly, not, you know, 10 years, 20 years out, in the next few
years.
And if you see the scale of our facility that we just announced, it's the size of several football fields. So, it's massive. And we can supply to
probably, you know, a couple of thousand stores from that single location. And so, we definitely can keep on building these facilities around the
world where there is enough consumers.
And in terms of other types of crops, because we've unlocked flowering crops using pollination, we're able to pretty much grow most types of
fruits and vegetables beyond leafy greens.
CHATTERLEY: And I think we were just showing images of what is a 50-acre solar field. So, this is predominantly solar energy powered as well, which
is very important. Very quickly, what about the nutritional quality of it, Hiroki, by the way?
KOGA: So, the nutritional quality is actually usually better than a conventional product, because all the inputs that we put into the farm is
basically similar to outdoor growing. The only thing we do differently is we use LEDs instead of the sun, right? So, all the inputs are the same. But
the thing is, we can optimize the growing environment for every specific variety of our crops, and every day is a perfect day.
So, that's why our strawberries are so sweet. It's full of vitamin and because they're so fresh. And, you know, you can usually consume them
within, you know, 24 to 48 hours of harvest. Our produce usually contains more nutrients than something that was shipped all the way from California.
CHATTERLEY: Interesting. Hiroki, no product placements on this show, but I do recommend if people are in the United States, they try them because the
flavor is pretty spectacular. It reminded me of eating strawberries when I was young. Hiroki Koga, co-founder and CEO of Oishii. Great to have you on
the show, sir. Thank you.
All right, coming up next on "First Move," two tennis greats are reuniting off the court to celebrate an iconic friendship. We've got the details,
next.
(COMMERCIAL BREAK)
[18:50:00]
CHATTERLEY: Welcome back to "First Move." Novak Djokovic has dropped out of the French Open with a knee injury. The world number one was looking to
defend his title in Paris and win his 25th Grand Slam tournament. All in a day's work. However, he was treated for knee pain during his fourth-round
match. He actually won that contest but says he can't compete in Wednesday's quarterfinal. We wish him well.
And while you won't see Roger Federer or Rafael Nadal meeting again on the tour sadly, the two tennis stars have reunited for a new Louis Vuitton
campaign celebrating their friendship. Saskya Vandoorne sat down with the CEO of Louis Vuitton in Paris to understand how this all came about.
(BEGIN VIDEOTAPE)
PIETRO BECCARI, CEO LOUIS VUITTON: They represent incredible values of sportsmanship. They achieved something that very few people achieved in
sports and in life, and they are champions on the tennis court, but they are champions outside life. And I think we are talking about Olympics. We
are about to start the Olympic game in Paris, and you know, the table match participates actively to these Olympics.
And I believe that it's very timely that this campaign comes out before the Olympics and before the El Angaro (ph), which is also the court of Rafael
Nadal. So, it's really part of this philosophy of excellence, of quality, of envy to surpass yourself over time again, and I think that's represented
very much at the same time the Olympic spirit, but also the quintessentially is Louis Vuitton.
SASKYA VANDOORNE, CNN SENIOR PRODUCER: And let's talk about the Olympics. Why is it important for Louis Vuitton to be so visible during Paris 2024?
BECCARI: We spoke about excellence, we talked about quality, we spoke about being prepared for every challenge. And I think that's very much
something that is close to our heart. On top of it, LVMH is a French group, and very proud to be a French group. And I think there is also the
willingness to support our country, or the country of LVMH, in this incredible adventure that are the Olympics in the most beautiful city in
the world. So, there is that.
And also, let's say, closeness on the vicinity of our values to the one of the athletes. You know, that we are also many athletes represented in our
ranks between, you know, the brands in the Olympics and the Paralympics. And I think, you know, this value of sport very close to LVMH, very close
to Louis Vuitton as we have shown, you know, our, let's say, support to many, many athletes throughout the last years.
VANDOORNE: Can we talk about some of your concerns coming up? You know, are you concerned by the economic slowdown in China, for example?
BECCARI: Well, economic slowdown is not only in China, it's worldwide. And I believe that we have been seeing moment of slowdown to which, by the way,
to our comfort, always follow beautiful and incredible moment of successful goals.
[18:55:00]
So, I believe, as Mr. Arnaud spoke about normalization, we into a normalization period, which is driven by inflection, by wars, by cost of
raw materials and everything that goes with it. But, you know, in times of crisis, you always have to have the cause to see the opportunities and
that's what we do.
And there is a curve and we like to do the curve with speed. So, when the road will be straight again, we'll have a sufficient speed to be ahead of
the others.
(END VIDEOTAPE)
CHATTERLEY: And a fabulous finally on "First Move." Today, when bringing your child to work doesn't quite go as planned. U.S. Congressman John Rose
had his six-year-old son, Guy, sit behind him while he gave his speech on the floor of the House. Guy then seized the opportunity to play up to the
camera.
Later on X, the Republican from Tennessee wrote, this is what I get for telling my son Guy to smile at the camera for his little brother.
Now, CNN spoke with the two of them and put Guy to the test, asking me him for a few other faces. And in true (ph) six-year-old style, Guy came
through with a few more uniquely crafted facial expressions. Yes, the ones in Congress were perfect. I think the state of politics today. And that's
just about wrapping up the show.
Thank you for joining us. I'll see you tomorrow.
(COMMERCIAL BREAK)
[19:00:00]
END
