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First Move with Julia Chatterley
Celebrations as Israel-Hamas Ceasefire Takes Hold; 20 People Injured After Clashes at Al Aqsa Mosque; Bitcoin Steadies, Crypto Related Firms Advance; Self-Driving Tractor Promises Greener Farming; Apple CEO, Tim Cook, to Defend App Store in Trial. Aired 9-10a ET
Aired May 21, 2021 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
[09:00:25]
JULIA CHATTERLEY, CNN HOST: Live from New York, I'm Julia Chatterley. This is FIRST MOVE, and here's your need to know. Celebrations and clashes -
Israel and Hamas agree a ceasefire, but tensions remain. Crypto costs - the U.S. Treasury calls for stricter tax rules. And Cook in Court - the Apple
CEO testifying against Epic Games. It's Friday. Let's make a move.
Welcome once again to FIRST MOVE, and we being once again in the Middle East. The fragile peace reigns for the first time in 11 days after a
ceasefire between Hamas and Israel that took hold at 2 a.m. local time. The deal was brokered by Egypt and came in effect 14 hours ago.
Since May 10, Israeli airstrikes have killed 243 Palestinians. That according to the Hamas-run Gaza Health Ministry. In Israel, militant fire
out of Gaza resulted in 12 deaths during the conflict. We're now joined by Hadas Gold and form Jerusalem, and Ben Wedeman is in Gaza for us.
Hadas, I'll come to your first. I mentioned it's a fragile truce. Just how fragile is it in light of the conflict you've seen there already today?
HADAS GOLD, CNN CORRESPONDENT: Well very fragile, Julia. In just the last few hours we understand that there have been clashes at the Al Aqsa
compound. According to one of our colleagues, a CNN producer who was there, they saw Israeli border police firing stun grenades and rubber bullets at
Palestinians. The police say that they were responding to a riot by what they say are hundreds of youths.
There was a large crowd at the Al Aqsa compound chanting in support of Gaza. They were waiving Palestinian, Hamas, and Islamic Jihad flags. Dozens
of border police we understand then entered the compound firing stun grenades and rubber bullets and trying to move people and move the crowds
and clear the crowds out of the site.
A police statement telling - saying that a riot broke out after prayers that included stone throwing and the throwing of Molotov cocktail - of a
Molotov cocktail at the forces. Right now as far as we understand things are quiet at the Al Aqsa compound. This also known as the Noble Sanctuary
to Muslims or the Temple Mount to Jews. It is a very, very important and holy site for these two religions.
And this - these clashes at the Al Aqsa compound are partly what sparked clashes from a few weeks ago are partly what sparked this latest conflict
that just had a ceasefire enacted in the last 14 hours or so because the militants in Gaza said that they started firing rockets towards Israel,
towards Jerusalem as a result of these tensions at the Al Aqsa compound over police forces clashing with Palestinians there and over the situation
in the Sheikh Jarrah neighborhood where several Palestinian families still face possible evictions.
So it just goes to show you despite the fact that a ceasefire may have been brokered between Israel and Hamas and the militant factions in Gaza that
the tensions that were partly what sparked this conflict are still very much alive here in Jerusalem.
It is still very much what you could even call a tinder box situation that can easily be set aflame. As of right now we haven't seen any sort of more
action after these most recent clashes. Things are quiet at the Al Aqsa compound, but it just goes to show how sensitive things still remain and
how much of a potentially tenuous ceasefire this is. Julia -
CHATTERLEY: Yes, that tinder box still smoldering to your point. Exactly. Ben, come in here. Clearly in Gaza it's a case of assessing the damage, but
also as Hadas was saying there trying to understand what the contours of this ceasefire are and how long it can hold.
BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well I think if we look back to the previous four - the previous three wars between Gaza and
Israel going back to December 2008, ceasefires were worked out and ceasefires held. I think it's important to keep in mind that and as Hadas
rightly pointed out it was the confrontations in the Al-Hada (ph) (inaudible) for the Temple Mount that sparked. It was one of the reasons
why Hamas opened fire on Monday before last beginning this war.
But what has changed, of course, is that it's highly-likely that Hamas has probably used up all of its rockets or most of them, and of course the
Israelis say that they have destroyed 80 to 90 percent of Hamas's rocket launching capabilities.
[09:05:00]
Now here in Gaza, I mean, we're right. This is the al al-Jalaa building, which last Saturday was brought down completely in an Israeli airstrike.
And of course, this was where the offices of the Associated Press and Al Jazeera were located. And throughout Gaza there are similar scenes of
destruction.
Now today for the first time people are walking around. They can go out and they're site seeing. They're going around to see what perhaps they only saw
on television, what has happened to this city. People are taking pictures with their phones or just gawking at, staring at the level of destruction
that has happened, but people are out. Stores are opening up again, and life to the extent that you can call it normal here in Gaza is returning to
normal.
As far as Hamas is concerned, they say this was a victory. Keep in mind for Hamas after four wars with Israel, their attitude is to survive, is to
triumph. That may not be the attitude of ordinary people here in Gaza who are increasingly getting worried of this cycle of war then a period of
relative calm then war again then calm then war again.
And unfortunately given that the fundamental issues underlying this conflict have not been resolved. It's a military conflict that just
finished, and there's no reason to doubt that there will be a next one - another one in just a few years. Julia -
CHATTERLEY: Yes, you can call it a victory, but those scenes behind you, Ben, say something very different. Hadas Gold, Ben Wedeman, thank you so
much for you both for your views on this.
OK, let's move on. What a week it's been for financial markets, too. Bitcoin taking big hits. Inflation fears fueling investor fits. WarnerMedia
and Discovery going for streaming merger glitz, and investors loving Oatly's IPO to bits. I did my best on that one. Just part of what led the
Nasdaq higher yesterday by some 1.7 percent, and Futures look set to add to those gains today, too.
Europe also continuing the momentum as you can see. We had new Eurozone data showing business activity rising at its fastest pace in three years.
Stark contrast to the tone in Asia where Japanese business activity plunged as COVID lockdowns weigh on growth and data there.
The Chinese stocks also as you can see losing ground on inflationary fears. Beijing already announcing measures to try and control rising commodity
prices this week, too, but I think the week does belong to Bitcoin rising from an intraday low of $30,000. Wednesday still down just for perspective
some 20 percent on the week. And other crypto competitors, Ether and XRP on track for weekly losses as well.
That's not the only worry today. As I've mentioned, the U.S. Treasury Department now promising to take a closer look at crypto-related tax
compliance. This coming just a day after the Chinese government moved to reduce the use of crypto for payments. SocGen meanwhile saying that
regulatory pressure will continue. Analysts there echoing J.P. Morgan's note earlier in the week that gold remains a better portfolio hedge, and
Deutsche Bank now saying Bitcoin's value is based on, quote, "wishful thinking."
Let's get to the drivers. Paul La Monica joins us now. I tell you what, Paul. Either way no one's wishing for a big tax bill, and that's the
message I think from the U.S. Treasury overnight.
PAUL R. LA MONICA, CNN BUSINESS REPORTER: Yes, I think - I think the guidance from the Treasury Department should not come as a big surprise,
Julia. Clearly you can't have it both ways. If cryptocurrencies like bitcoin are really going to be the future of money, what do people have to
do when they are cashing in on investment or they are paying something, using cash or cryptocurrencies like Bitcoin. You have to pay taxes on these
transactions.
So the Treasury proposal to potentially have this $10,000 or above tax on, you know, transfers, you know, to companies involving Bitcoin and other
cryptocurrencies, it further legitimizes Bitcoin and all of those cryptocurrencies, which I think is a good thing.
Yes, no one likes paying higher taxes, but the, you know, Treasury Department is worried about tax evasion and has to crack down on it, and
that's not to say that all crypto bulls are out there cheating on their taxes. Of course that's not the case, but the IRS needs to get its fair
share of tax revenue from transactions that are done with Bitcoin, which is increasingly happening in this country and around the world.
[09:10:00]
CHATTERLEY: Yes, and I agree with your point, too, Paul. If you're paying taxes on capital gains that have accrued as a result of your crypto trading
or we're talking more regulation potentially in the future, too. It all helps to legitimize a growing sector and nascent technology in the sector
as well and provides greater legitimacy particularly for institutional investors, too. So I couldn't agree more with that point, but oh boy has it
been a volatile week. Is it over? Have we consolidated and do we rise from here? Paul, what do you think?
LA MONICA: Yes. I'm not sure it's over yet. It looked like it last checked at (ph) Bitcoin, Ether, a couple of the other major cryptocurrencies, they
were down this morning on this Treasury Department news. And I think that clearly there are still a lot of jitters about what's happening in the
broader cryptocurrency marker particularly with regards to Elon Musk. He loves Bitcoin. He doesn't love Bitcoin. He loves Dogecoin. What's going on?
A lot of people I talk to, you know, they wish that Elon would just be quiet and put his phone away and stop tweeting about crypto and maybe focus
on, you know, getting more Model Ses (ph) to, you know, showrooms and consumers and, you know, not as much about what's happening with Bitcoin
prices.
CHATTERLEY: Probability of that, Paul?
LA MONICA: Zero.
(LAUGHTER)
CHATTERLEY: Yes.
LA MONICA: Elon's going to be Elon, Julia. I think we both know that (ph).
(CROSSTALK)
CHATTERLEY: (Inaudible) anything involves (ph) (inaudible). Yes, yes, yes. Good luck with that. Yes.
(LAUGHTER)
Moving on. Having said that, Bitcoin's bigger than one man and crypto's bigger than one man, but oh boy, he is a force right now for better or
worse. Paul La Monica, thank you so much for that.
OK, let's move on. We Work's woes just keep coming with a quarterly loss of over $2 billion and the CEO insulted stay at home workers. Anna Stewart
joins me from a pretty wet and windy WeWork in London, but you still look fabulous, Anna. Talk me through - talk me through these earnings. Revenues
halved from a year ago I believe, and this is a very different company to what it was let's be clear.
ANNA STEWART, CNN REPORTER: Well it's certainly slimmed down, but a quarterly los of over $2 billion paints a pretty miserable picture, doesn't
it? Even more miserable than this weather I'd say.
Now some of this, of course, people still working from home, not going into an office, let alone at WeWork, but also some big one-off costs in this
earnings report. There was a huge settlement for the ousted co-founder, Adam Neumann. Also they have exited some of their less-profitable leases,
and that was part of the problem for the pandemic. This is a company that rented long and subtly short (ph) meant left it hugely exposed.
Now, it is slimmed down as under new leadership it is planning to IPO once again, this time virus-backed (ph) merger later this year, and Julia, this
company now valued at $9 billion. It was, of course, valued at $47 billion just a few years ago in 2019.
CHATTERLEY: Yes. How the world changes. I'm trying to remember what he called it. A capitalist (inaudible). I'm not sure he'll ever get over that
because it's the first thing I think of whenever I see the name WeWork, but they have obviously pulled out of some ventures like the Dog Walking App
the Wave Pool Maker, so wow. Back to real estate, which is a fortunate thing.
What's quite interesting about this, and we can talk about future IPO prospects when they want to come back to list on the market, but there were
some comments that the CEO made recently and he said - and of course it favors his business himself, but he said people are going to come to
offices. They will because if people decide to do flexitime or they decide to stay at home they're going to be seen as slackers. What do we think of
that, Anna?
STEWART: Oh, that touched a nerve didn't it, Julia, and also unleashed quite a backlash on social media and plenty of comical responses. One of
which we can show you actually. Our producer found this tweet from one lady, Amy B saying, "I wonder why the CEO of a company that rents office
space would say this," but I have to say he's not alone.
We also had the CEO of J.P. Morgan, Jamie Dimon, he said particularly for younger people who and I quote, "want to hustle or want to get back to the
office." Now there's so many divides here when it comes to how productive people are working from home or in the office. So many studies out there.
The divide really falls on demographic lines, age groups, also sectors, also income, also when you live in a city or somewhere remote, and also
frankly just preference, but this is where WeWork really wants to capitalize on the recovery.
Lots of businesses just not sure what the future holds in terms of the pandemic and vaccination rates, what their employees will want to do, and
they want to provide the flexible working solution for people, so they see themselves very much in terms of how Zoom and video chat apps were the
winner of the pandemic. They see themselves as a potential winner of the recovery, but that is certainly their sale pitch, not mine. Julia -
CHATTERLEY: Yes, but short-term leases versus longer-term do make sense to me, so we'll go with it on that one at least. Capitalist (inaudible). We've
left that behind though I should make that point (ph).
STEWART: We'll go with that one. And also, Julia, can I go back to the studio yet?
(LAUGHTER)
CHATTERLEY: Get an umbrella quick!
[09:15:00]
Anna Stewart, thank you so much for braving the British weather. I miss it. No, I don't. OK. Let me bring you up to speed now on some of the other
stories making headlines around the world.
U.S. President Joe Biden hosting South Korean President Moon Jae-In at the White House today. The allies are expected to discuss among other things
North Korea's nuclear capabilities, human rights abuses in China, and South Korea's need of more COVID-19 vaccines.
In a rare and emotional public statement, Prince William, the Duke of Cambridge, has berated the BBC. An inquiry found the BBC and journalist,
Martin Bashir, used deceitful methods to secure the iconic 1995 Tell-All interview with Princess Diana.
(BEGIN VIDEO CLIP)
PRINCE WILLIAM, DUKE OF CAMBRIDGE: But what saddens me most is that if the BBC has properly investigated the complaints and concerns first raised in
1995 my mother would have known that she'd been deceived. She's failed not just by a rouge reporter but by leaders of the BBC who looked the other way
rather that asking the tough questions.
(END VIDEO CLIP)
CHATTERLEY: The International Olympic Committee insists the Tokyo Games will be held this summer in a, quote, "safe and secure manner." Officials
say they're imposing strong health measures to protect the public amid the pandemic. Right now, Japan is in the middle of a COVID surge and has put
several regions under a state of emergency.
Still to come here on FIRST MOVE, India's COVID crisis is a wake up call for Africa. So says the head of the continent's Centres for Disease
Control. And Apple's Tim Cook takes a stand in court. Battles between Apple and Epic Games over the in-app payments. We've got the latest. Stay with
us.
(COMMERCIAL BREAK)
[09:19:20]
CHATTERLEY: Welcome back to FIRST MOVE. India's confirmed coronavirus cases now topping 26 million while its death toll approaches 300,000
people. The country's prime minister has been criticized for his response to the crisis and his weeks of silence on the COVID, but today he became
emotional as he recognized the scale of the suffering.
(BEGIN VIDEO CLIP)
NARENDRA MODI, INDIAN PRIME MINISTER (THROUGH TRANSLATOR): This virus has snatched away our loved ones. I pay tribute to those who have lost their
lives. I offer my condolences to their families.
(END VIDEO CLIP)
CHATTERLEY: Europe says it will join with African partners investing $1.2 billion building vaccine production hubs in Africa.
[09:20:00]
The news comes as the European Commission co-hosts a G20 summit on the global response to the pandemic. High on the agenda is scaling vaccine
production, and the E.U. has previously rejected calls from the United States and others for vaccine patent waivers.
I'm pleased to say joining us now is John Nkengasong. He's Director of the Africa Centres for Disease Control and Prevention. John, fantastic to have
you on the show with us. This investment sounds like great news. Your response, please.
JOHN NKENGASONG, DIRECTOR, AFRICA CENTRES FOR DISEASE CONTROL AND PREVENTION: No, absolutely great news, and it's news that we welcome at a
level of the Africa Centres for Disease Control and Prevention and the African Union.
If you recall, we hosted a very successful meeting on manufacturing vaccines on the continent on precisely April 12 and 13, and that meeting
was attended by over 40,000 participants for two days.
And we launched a partnership called Partnership for African Vaccine Manufacturing, which was announced by the Chair of the African Union,
President Felix Tshisekedi. So we are very pleased and encouraged to hear the European rally behind this partnership to begin to enhance ability on
the continent to manufacture vaccines. This is a right step in the right direction. It goes along with the guarantee (ph) the health security of the
continent and the health security of the world at large.
CHATTERLEY: But the truth is it's about future vaccines and future vaccine deliver surely. It doesn't help with the current COVID crisis because this
is going to take time.
NKENGASONG: No, absolutely. We must work on and celebrate all good news during these unprecedented times. I have just been attending the global
health summit in Rome, and I'm also very encouraged and I need to congratulate all countries that have pledged to redistribute additional
doses of vaccines that are in their keeping.
I think country-after-country are now pledging to redistribute vaccines to more limited resource countries like Africa. So we are very, very
encouraged. We welcome the news for - to partner with us to expand and enhance our vaccine production capabilities. We welcome the news with good
intensions to redistribute vaccines there. That is what we should do so that we can achieve collective immunization. That is the only way to
eliminate this pandemic from everywhere in the world.
CHATTERLEY: I noticed that the E.U.'s also pledged to supply 1.3 billion vaccines to low and middle income countries. That's the news today as well.
To your point, all of these things are incredibly helpful, but John, you've pushed and said please, we need to see these vaccine waivers, patent
waivers because this will help.
Can you tell me what kind of manufacturing capabilities you do have in the country? Let's say that some of these big suppliers, the Pfizers, Modernas
did and their governments allowed the patent waivers to take place. Could you actually begin to produce? Do you have the capabilities, the resources
to do this?
NKENGASONG: Yes. Absolutely yes.
CHATTERLEY: Wow.
NKENGASONG: There are at least five countries on the continent that have the capacity and capabilities to produce vaccine and are already producing
vaccines. Not necessarily COVID vaccines. That includes Senegal at (inaudible) two factories in South Africa, Egypt, Tunisia, and Morocco.
So we have those, and we have other countries that already positioning themselves to from a political real standpoint like Rwanda. The President
of Rwanda has come out very publically to talk about messenger irony (ph) and they have their commitment, which is extremely important and valuable.
So I think we have a lot of good will across the continent. At least some countries are producing those vaccines already. And below that there are
other levels of countries that are already producing animal vaccines. There are many across the continent, so it's a question of having the resources,
the human resources to do that, the partnerships to do that, and the financial incentives to do that.
So I think the news emerging from the global health summit is most welcome and must be celebrated.
CHATTERLEY: You know, it's quite interesting. You just mentioned some critical factors there whether it's the political will, the financial will,
the labor resources. How confident are you that all of these things can be aligned in order to allow these critical vaccines to be made because I
mentioned there the E.U.'s cautious about allowing these patent waivers even if the United States is pushing for it.
NKENGASONG: I think the E.U. needs to be on the right of history, and when the history of this pandemic is written those who made the right decision,
the courageous decisions we will remember, and I'm sure E.U. is very, very aware of this and the move and the gesture that they just made today goes a
long way to speak in (ph) that direction there.
[09:25:00]
As a continent, we produce only 1 percent of our vaccines. That is we import 99 percent of our vaccines and but consume 25 percent of all
vaccines in the world. There is no people that can guarantee their health security by relying on certain architectures (ph), so I think the timing is
right, and I believe that Africa as a continent is ready. I mean, as Martin Luther King once said in 1963, the time is always right to do the right
thing. And the right thing to do is now is to strengthen and enhance those capabilities there.
We as a continent cannot and will not continue to protect our people if we do not strengthen these capabilities. By strengthening these capabilities,
we are directly and directly (ph) contributing to the overall global security, health security of all the people in the universe.
CHATTERLEY: I agree with that, sir. Talk to me about the current situation because I think everybody around the world is watching with sympathy, with
horror of what India's going through at this moment, and also watching the variant first identified there spread around the world. How worried are you
and how ready is the continent of Africa to deal with that?
NKENGASONG: No. We are very concerned with what we are seeing in India, and as a matter of fact on May the 8 we convened an emergency meeting of
all ministers of health under the leadership under the African Union here (ph) and President Felix Tshisekedi where we look at what is going on in
India and we said that our systems, healthcare system near so much (ph) what is going on in India, but above all India produces vaccines and other
health commodities than the continent of Africa.
What is going on in India can actually in terms of the pandemic, the size of the pandemic can actually be overwhelming, then it can be catastrophic
on the continent. So the outcome of that meeting was three-fold.
One, we agreed on an adaptive strategy that we'll base on enhanced prevention, enhanced monitoring, and enhanced treatment. Where we seem to
observe (ph) that in addition to vaccine, which of course are slowly being introduced on the continent with most privileged (ph) the introduction at a
maintenance of good public health measures.
Second is really monitoring for these variants, the variants that continue to emerge. You mentioned the B617 (ph) variant, which originally was
recognized in India but is now has been identified in six African countries there in addition to the variant that was originally identified in South
Africa and the British variants.
So these variants will continue to emerge. The only way to prevent these variants from emerging is to vaccinate as key (ph) and vaccinate as care
(ph). If we do that, then of course we've blown the spread of the virus and limit and restrict the ability for the virus to mutate and create variants
then.
So the continent has rallied on, agreed on an adaptive strategy. We're now looking for right partnerships to actually implement this strategy, and
that's why what is happening at the global health security summit is extremely important. The pledges of the redistribution of doses will fit
into our strategy of enhanced prevention, OK, which is underpinned by the ability to scale up public health measures but also scale up vaccination
there.
The vaccine manufacturing is also going to be critical in our new and adaptive strategy because we truly don't know the duration of immunity even
if we vaccinate at scale. So it may be and just maybe that we need boosting of this vaccination each year. We just don't know. So that is why it's so
critical that the continent, it could be set with (ph) the ability to actually produce vaccines at scale.
CHATTERLEY: The other thing is dealing with immediate COVID cases, and that requires testing. And John, I was watching some of your press briefing
not from this week but last week, and you were saying that there'd been a significant drop off in testing. Have you managed to reaccelerate, reignite
the scale of testing across the continent, too, in order to identify where the virus is spreading?
NKENGASONG: Absolutely. Testing will continue to be the bedrock of our ability to fight this virus.
CHATTERLEY: Right.
NKENGASONG: And again, last week we saw a 25 percent drop in testing, so we've launched an appeal to the continent to say, look, the partnership for
accelerated COVID testing that we launched last year, that was extremely, extremely successful in boosting the ability and the capacity to test. That
brought us close to 10 test the case (ph) identified must be maintained (ph), meaning we are at war with this virus, and the only way to find where
this virus is and react is to do more testing. I mean, and that is where we're going to know where the virus is hiding -
(CROSSTALK)
CHATTERLEY: Right.
NKENGASONG: -- and then develop strategies to flush out this virus.
[09:30:00]
So it is an appeal that we launched, and we are supporting countries, member states with the antigen test, which is a simpler test than the
molecular test. We will continue to scale that up, support member states to do that, but countries must do more at national level so that the testing
continues to go up rather than decrease.
CHATTERLEY: John, it's great to chat with you and I'm glad you're there. I feel more comfortable speaking to you. John Nkengasong there, the Director
of the African Centre for Disease Control and Prevention.
Sir, thank you once again.
All right, the market opens next. Stay with us.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to FIRST MOVE. U.S. markets are up and running for the final session of the week. Phew.
Wall Street wages are higher for a second straight session. Tame U.S. bond yields and powerful Q1 profits still helping to support prices. That said,
firms continue to warn on supply chain woes that could lead to worsening consumer price inflation. Heavy machinery company, Deere saying today that
it is in a constant struggle to secure parts and components and it sees no let-up in sight
In the meantime, I'll call it a milk-less success, Vegan foods firm, Oatly feeling its oats rising some 19 percent on its NASDAQ debut Thursday.
Shares, also adding today, too, almost nine percent gains for a $22.00 share price.
And a refreshing pause in the crypto wild ride. Bitcoin a touch higher today. As you can see, a mixed day for some of the Wall Street's biggest
crypto boosters, Tesla, Square and Coinbase as you can see all hyped well. Coinbase has just dipped slightly there. Yes, it's early days in this
trading session.
In the meantime, the co-founder of the Ethereum network saying that there's probably a crypto bubble going on at the moment. The 27-year-old spoke to
Matt Egan just before Wednesday's big selloff.
Matt Egan joins us now, Matt, great interview. Fascinating conversation. He is only 27. We also have to make that point. But one of the things I loved
about what he says is look, probably valuations are and have moved above and beyond the underlying technology. But that will catch up, and I think
that's important.
[09:35:21]
MATT EGAN, CNN BUSINESS SENIOR WRITER: Yes, Julia, I mean, it has been a wild few weeks in the crypto space, even by crypto standards. I mean, just
last month, Bitcoin was at almost $65,000.00. This week, it collapsed at one point to just $30,000.00. Ethereum, the number two crypto space, it was
down 40 percent at one point on Wednesday.
So anyway, who better to talk to all of this, you know, than Vitalik Buterin, the guy who actually created, he invented Ethereum. He put out his
white paper back in 2013. So, you know, I did ask him about whether or not he thinks there is a bubble.
I was a little surprised by his answer. I also asked him about what it was like to find out that he had become a crypto billionaire. Here's what he
had to say.
(BEGIN VIDEOTAPE)
VITALIK BUTERIN, COFOUNDER, ETHEREUM: It was definitely like one of the many signs that I saw around the same time that, you know, crypto isn't
just a toy anymore. It's a significant part of this new world that's being created.
And you know, that just means that we -- you know, we have to level up and we have to like really continue working hard at turning crypto into
something that can be really good and valuable for humanity.
EGAN: Let's talk about Elon Musk because he is able to send out tweets, even just an appearance on "SNL" can move entire cryptocurrencies.
UNIDENTIFIED MALE: What is it, man?
ELON MUSK, CEO, TESLA: I keep telling you it's a cryptocurrency you can trade for conventional money.
UNIDENTIFIED MALE: Oh, so it's a hustle.
MUSK: Yes, it's a hustle.
BUTERIN: But you know, Elon Musk tweeting is something that the crypto space has only been introduced to for the first time like literally in the
last year and this year. So, you know, I think it's reasonable to expect a bit of craziness. But I do think that the markets will learn that, you
know, Elon is not going to have these bullets forever.
EGAN: Are we in a crypto bubble right now?
BUTERIN: Again, I would say yes. But again, that obviously does come with a prediction of like when the bubble is going to end because that's
notoriously hard to predict.
EGAN: So you said in a 2016 interview that part of the reason why you got into crypto was through the big guy. What did you mean by that?
BUTERIN: The reason why crypto is so interesting is because it allows large groups of people to like cooperate to do things all on the same
platform. But without there being like one individual or one single company or even one single government, it's kind of in the middle.
And, you know, we have basically sort of sleepwalked into a world where Facebook sees all your data. Twitter, you know, can choose who stays on the
platform, who goes off to all of these things like I think decentralized systems can potentially present an alternative and that like, you don't
need to have a kind of one sort of points of control in the middle, this sort of one big guy that has an outsized power in the whole system.
(END VIDEOTAPE)
CHATTERLEY: It's still like a foreign language I know to some people listening to that. But we've also spoken on the show to one of the other
cofounders of the Ethereum networking. You know, he was saying, it is just about cutting out the middleman.
I mean, these guys are really focused on finance, in particular, and cutting out the big banks, allowing people to lend to get insurance
products. So this area actually, for me is very fascinating, but I did want to comment on your question about being a crypto billionaire.
He was completely unfazed by that. He was like, yes, you know, clearly, big gains, big losses.
EGAN: Right. That's right. And then we should also note that Ethereum collapsed so much on Wednesday, and hasn't rebounded enough that he may
have actually lost that newfound billionaire status.
Julia, it's just another reminder, as if we needed it, just how volatile this space is. And we know that a lot of retail investors have actually
just entered this area for the first time in the past few years. And some of them may be taken aback by how much more turbulent it is than the stock
market.
CHATTERLEY: Yes, it's so important, and for these guys that are deep within this sector and looking at the underlying technologies, they are
less focused on the big oscillations of the cryptocurrencies themselves, and they're more focused on the technology beneath and the power that that
represents and there's a message in there somewhere.
Matt Egan, thank you so much for that.
EGAN: Thank you, Julia.
CHATTERLEY: Okay, well done. After the break, the Tesla of tractors, the future of farming -- I am asking these questions -- this electric machine
promises a hands free revolution in agriculture. Who knew tractors could be so exciting? That's next.
(COMMERCIAL BREAK)
[09:42:47]
CHATTERLEY: Welcome back to FIRST MOVE. Imagine a future where robotic tractors roam across the land, harvesting data as well as crops to optimize
yields. That first step has already been taken by a startup which is bringing to market the world's first fully electric self-driving tractor.
Monarch says this tablet-controlled machine can plow, harvest and mow and runs on a 10-hour -- for 10 hours on one charge. And for every diesel
tractor it replaces, that's the equivalent of taking 17 gasoline powered cars off the road.
Praveen Penmetsa is the cofounder and CEO of Monarch Tractor and he joins us now. Praveen, fantastic to have you on the show. I think what is clear,
whether you're looking at it or you're understanding just what the capabilities are, it is no ordinary tractor.
Talk to us about the combination of new technology, but also the data collection, which is super exciting as well.
PRAVEEN PENMETSA, COFOUNDER AND CEO, MONARCH TRACTOR: Yes, thanks for having me, Julia.
Yes, our tractor is all electric. It's automated and it's smart. And if you look at tractors for the last hundred years, they've all been mechanical,
too. The fact that we can not only do it in a sustainable manner without all electric technology, but also help automate it, which means increased
safety for farmers, which means increased savings for farmers.
And then while we are doing this automation on the farm, Julia, we are also collecting data from our cameras, which allows the farmer to see what's
happening in the farm, but also for consumers like you and me that provides a digital connection to our food through the cameras on the tractor.
So we are quite excited about the combination of these technologies into a next generation tractor.
CHATTERLEY: So you're hoping to have that sort of farm to food analysis and perhaps allow people to track exactly what farm their food came from in
the end if you're collecting all this data and of course, hopefully improving crop yields to along the way.
PENMETSA: Exactly. And if the farmer can monetize this story, that's going to be a game changer on the farm economic side of things for them if they
can directly tell their story to the consumer and if we can see what's happening, we will value that food experience a lot more.
And also, hopefully that will put us in touch with our farmers who are the most important people on the planet with respect to our food ecosystem, and
I think that connection is going to drive sustainability in agriculture and in farming.
[09:45:15]
CHATTERLEY: I know you've been testing this in farms across the United States, but also in India, too. I can't help but think if I were a farmer,
I'd be a little bit nervous to have that thing roaming around using sort of autonomous technology, whether it's with livestock around or people,
perhaps people out in the fields. How are you sort of getting around that nervousness? Because I'm sure it's there, at least initially.
PENMETSA: Yes, that's a great question, Julia, and something that a lot of us common people have, but then we talk to farmers who are actually sitting
on the tractor, sometimes day and night when they do their operations. It's a very dull, dirty, and very often dangerous job, especially when you're
spraying chemicals and things like that on to the food ecosystem.
So what is a dull day, a dirty dangerous job, and the fact that they can get off the tractor is actually much more safer for the farm communities
than them being on the tractor. And also keep in mind, we have some great technology now. All of us are now familiar with autonomous car
technologies. But think about a slow moving tractor on a farm doing these kinds of operations very deliberately, on each and every tree. That is a
much safer option for the farmers.
So, we have actually not seen a lot of resistance from the farmers, and also, the tractor drivers are increasingly becoming more and more harder to
find. It's a very skilled operator job. And like I said, it's a very dull job. So there's not too many takers for this. So farmers are under a lot of
pressure to find these tractor drivers.
CHATTERLEY: That's fascinating. The labor concerns is a point actually, I hadn't thought about.
The battery charge lasts for 10 hours, I'm assuming that the farms have a charging point in-house and that it has to be charged for what? Four to
five hours. I guess you do that overnight if you can?
PENMETSA: Yes. Exactly. That brings up a great question, Julia, it is: how is our tractor charged? And electric infrastructure on our farms is
something that we all need to invest into more.
CHATTERLEY: Right.
PENMETSA: But as of today, what we have done with our tractor is we tell our farmers if you have a barn, and if you run a welder or some mechanical
implement there, you can just plug that charger into -- a tractor into that and charge our tractor in four to five hours, so we have designed our
tractor to work with the existing infrastructure.
But going into the future, it is something that we should put a lot more electric infrastructure on to farms as much as we think about electric
infrastructure for on-road vehicles, for our electric cars and trucks.
CHATTERLEY: Yes, because I can see that being a problem, at least initially until we see greater investment. In terms of starting price,
$58,000.00, I believe, and they're going to be on the market later next year. You can correct me if I'm wrong.
I mean, there are other players in this space. They're behind you, but they're coming on board -- like Robotics, Agrointelli in Denmark, John
Deere is another one that's working on this. What differentiates you other than being first?
PENMETSA: Yes, our big differentiator is the mindset. We see ourselves as a bridge between technology and sustainability. So our tractors and our
technology will always be focused on sustainability and farm economics, Julia.
So for example, that is the reason why our tractor is not only all electric, but it still has a steering wheel and pedal. So what that allows
the farmers to do is it allows them to use the technology today with their existing implements and their existing workforce.
And not only that, the other big differentiator, Julia, is the fact that our tractor is what we call a utility class tractor. It's a 40 to 70
horsepower class tractor, which is found all over the world. The most common tractor sold today, and it is the fastest growing factor segment in
the world.
So we are going into a class of tractors that is going to have the maximum impact. But more than that, it's a global product. So that's what
differentiates us. This is not a product just for California farmers of the U.S. and European farmers, this is a tractor that any farmer around the
world can see and can see the tractor on his farm providing value for him.
CHATTERLEY: Fascinating. Okay, come back and talk to us when you're ready to launch please. Praveen Penmetsa there, the cofounder and CEO of Monarch
Tractor. Great to have you on the show.
PENMETSA: Thanks for having me, Julia.
CHATTERLEY: Okay, Apple CEO making the court appearance in the U.S. Federal Court ahead where he is defending the App Store in an antitrust
trial and why his testimony could set a precedent for future cases. That's next.
(COMMERCIAL BREAK)
[09:51:57]
CHATTERLEY: Welcome back to FIRST MOVE. Apple CEO, Tim Cook will defend his company today in a major U.S. antitrust trial. Developer, Epic Games
has accused Apple of acting like a monopoly, mainly for not allowing alternative payment systems on its App Store and charging a 30 percent on
in-app sales.
Apple has defended the way it operates and Cook's testimony could set the tone for other antitrust battles in the future.
For more, CNN's Clare Sebastian joins me now. The star witness arrives. Clare, he is basically have got to defend his business model, defend those
fees and say they're essential for the consumer product that we provide. How's he going to do it?
CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT: Yes, so Julia, I think it's just as important the fact that he's there as much as what he's going to
say This is clearly a case that is extremely important to Apple going forward.
Don't forget, Epic isn't asking for the money. It's asking for injunctive relief, essentially for Apple to change its business model.
So according to the court witness list, Tim Cook is going to discuss Apple's corporate values, Apple's business and operations; the development
and launch of the App Store and the competition faced by Apple. So we really expect that he'll sort of pull together the arguments that we've
heard throughout this three-week court case so far, arguing that Apple is not a monopoly, that it has a lot of competition when it comes to app
distribution in particular, gaming, and that the money it makes through that 30 percent commission is put to very good use for things like R&D
tools for app developers, privacy and security.
In fact, an Apple spokesperson told CNN business that they expect he will expand on his personal views when it comes to privacy and security,
something he has been a very vocal advocate of.
So, really putting together what the arguments are, I think he's going to focus more on the positives that is sort of explaining how the App Store is
a force for good rather than the negatives that we've seen from some of Apple's lawyers, you know, really talking about what Epic did last summer
when it put its own payment systems into Fortnight and provoked Apple into kicking Fortnight off of the App Store.
So you know, a really big moment as we come to the end of this case.
CHATTERLEY: Yes, I was about to say, Clare, how much longer is this going to go on for, do we think? Or is this like the defining moment?
SEBASTIAN: This is sort of the closer for Apple. We expect final arguments to be on Monday. After that, it could take a little while to get a verdict.
The Judge has made it clear that she is very busy. And after that, we'll probably get appeals from whoever loses, so we've got a little while.
CHATTERLEY: That's a good point.
SEBASTIAN: But again, yes, a really big moment here. The one we've been waiting from Tim Cook.
CHATTERLEY: Yes. Are we there yet? No, in a word. And even when get there, we won't be there. Yes.
Clare Sebastian, thank you so much for that. Have a good weekend.
Okay, what better way to end an ugly miserable 14 months in Europe than this?
[VIDEO CLIP PLAYS]
CHATTERLEY: Yes, expect plenty of thrashing and wailing this weekend at the world's biggest, some might say, the most bizarre. Music event returns
after last year's cancellation.
It is the Eurovision Song Contest live from Rotterdam and it has it all. I'm reliably informed, there will be leather trousers, confounding lyrics
and one dancer dressed as a middle finger. Now, that's entertainment, I guess for some people -- but we do like Eurovision.
[09:55:04]
CHATTERLEY: And finally, Lego is piecing together a new product just in time for Pride Month in June.
It is an LGBTQ-themed set called "Everyone is Awesome" and features 11 figures in colors inspired by the rainbow flag. It comes as the toy
industry tries to make children's products more inclusive.
And in that vein, I wish my awesome First Movers a wonderful weekend.
That's it for the show. If you've missed any of the interviews today, they will be on my Twitter and Instagram pages. You can search for
@jchatterleyCNN.
Have a great weekend. Stay safe. And "Connect the World" with Becky Anderson is next.
We'll see you next week.
(COMMERCIAL BREAK)
[10:00:00]
END
