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First Move with Julia Chatterley
U.S. Futures, European Markets Higher after Sell-off; EU Commission Recommends Candidate Status for Ukraine; Wholesaler Boxed warns of Product Shortages, Price Hikes; Bond Yields Ease, Global Recession Fears in Focus; Hooked on Bitcoin: Euphoric Highs, Devastating Lows; Scottish Rehab Center helps Victims of "Crypto Addiction". Aired 09-10a ET
Aired June 17, 2022 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:00]
(COMMERCIAL BREAK)
JULIA CHATTERLEY, CNN HOST, FIRST: A warm welcome to "First Move"! I'm Julia Chatterley in New York. It's fantastic to have you with us this
Friday and no better time to say TGIF.
A painful week for investors as assets sell-off stocks, bonds, crypto all losing their trough, the $2 trillion question now is where is the trough?
That's just what the stock market lost at this week that $2 trillion. For now that entire offer is a potential market lifts off.
Look at that here's your stock market futures higher after a torturous Thursday that saw the DOW closed below 30,000 for the first time in more
than a year. The NASDAQ the tech heavy sector sliding more than 4 percent.
Europe let me give you a look at what we're seeing there, also higher in the session today so far. Also giving you a look at what happened in the
Asia session? Look at Japan the NIKKEI falling more than 1.5 percent and the Yen easing from two week highs after a dovish display by the BOJ, the
Bank of Japan bucked the central bankers' trend holding interest rates steady at rock bottom levels.
Even as the United Kingdom the Swiss and the U.S. central banks all hiked this week. But also the Bank of Japan committing to further government bond
purchases to hold those borrowing costs down, AKA no setting of the QE - in the land of the Rising Sun.
The Fed however; and of course using higher borrowing costs to try and cool pricing pressures faced by consumers. But the knock on effect is a slowing
economy already. In terms of data this week, we've seen a contraction in retail sales with particular weakness in autos, a 14 percent plunge in
housing starts.
So you can read that as new residential construction, and the biggest weekly jump in mortgage rates since the late 1980s. Now despite the warning
signs, President Biden says don't panic recession is not inevitable.
Christine Romans joins us now Christine, great to have you with us! Very little in life is inevitable. But if you look at the Atlanta Fed Survey,
they're sort of suggesting that the U.S. economy already might be in recession this quarter, two negative or zero prints of growth. What do you
think, Christine? We can't have it always you've got a cool pricing pressures. The danger is you slow the economy too much.
CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Yes, and we just don't know how this is going to turn out right? And I think that's what the
President's point is here is that, you know, it's - there's no roadmap for this in six days, six months, sometime next year, could there be recession?
Sure those risks are rising, but we just don't know for sure. And the President points out when he says it's not inevitable. First of all, the
President told "The Associated Press" in a 30 minute interview yesterday. But he said secondly, we're in a stronger position than any nation in the
world to overcome this inflation.
At least on gasoline prices he's right the U.S. in terms of the industrialized world does have a little bit more breathing room and gas
prices and everyone else because of all the subsidies for U.S. energy sector here, but it cold comfort to consumers who are in his words down.
I mean, he points out that people are feeling down two years after pandemic into pandemic lockdowns and with all of the political division in this
country, and so many different things going on, including now a hot war in Europe.
There's just a lot for people to be pessimistic about the President sort of noting that, in his interview, also that interview pointing out that he
sits in an office with a painting of Abraham Lincoln, and also FDR close by two Presidents who also had a really pretty terrible hand to card sell to
them when they came in into office and had to guide the American people through that.
But, you know, this is the Fed who's in charge of the inflation scenario at this point, right? It's the Fed that has to get this exactly right. And the
markets are telling us they're not quite so sure, at least this morning, though bouncing back a little bit. A little bit of relief after you're
right. This week, I'll be happy to put it to bed for sure.
CHATTERLEY: Yes, I'll repeat it again. You raised a very important point there and that is what financial markets are telling us? And at the point
where we're seeing the level of drops from the highs that we've seen there saying, look, this is feeling like recession.
And that's before we even get the majority of companies coming out and saying, hey, this is what our numbers are going to look like. And you get
analysts revising them lower. So we had a discussion earlier on the show this week that was this happens in two phases.
You get the downdraft, you get this intermission period. And then the second act is when you see these companies start to say now we're really
struggling and we haven't had time for that yet.
ROMANS: So far, corporate balance sheets are very strong. And so far, household balance sheets are very strong.
CHATTERLEY: Great point.
ROMANS: And so that's one of these reasons why you talk to portfolio managers who say they think we're going to skate by with maybe a technical
recession at some point.
[09:05:00]
ROMANS: But certainly nothing that feels like what we went through in 2008 and 2009 and by the way that was something that took 10 years to get to get
back to also we head into this with the unemployment rate of 3.6 percent I know we can talk about the technicalities about the labor force,
participation rate and all we could nerd out forever on the job market.
But the job market is still fundamentally very strong here. So I think we really have to just watch each of these economic reports as they come in,
and see how they go. You know, one thing about the White House saying, recession is not inevitable, you know, you don't hear in a way you have to
be the cheerleader and chief as the President of United States, right?
You know, we don't know if there's going to be a recession, but he's trying to point to the strong things about the American economy, especially vis-a-
via the rest of the world, and try to make that point. His critics would say its tone deaf.
But I mean you can't expect a President I've never heard a President go out there and say, you know, chicken, little the sky is falling. I mean, that's
just not going to happen from 1600 Pennsylvania Avenue.
CHATTERLEY: No should it to your point, because you can create panic.
ROMANS: Yes.
CHATTERLEY: And these things can be self-fulfilling prophecies, as you and I discussed many times during the pandemic as well. I think the missing
piece on this and it goes back to the point that you made about the strength of balance sheets, be they for, for companies, or small businesses
or for individuals too it's on average.
So you have those that are very strong, you have the weaker companies that get shaken out by this kind of environment. And that's normal I hate to use
the word. The danger is again, and you and I've discussed it before, it's that lower quartile of people that live paycheck to paycheck.
ROMANS: I worry.
CHATTERLEY: And even with what we've been through. Yes, they're below average on all of these things. And this is another point of pain and they
suffer most in these downturns. We always come back to it; the safety net isn't really there for those people.
ROMANS: And, you know, I'll tell you, the President and his team have been trying to make the point that they had - they had strengthened safety nets
in Build Back Better and there are pieces of that they would like to see enacted, that now there are critics who say it would be inflationary, but
they say would protect those people who are most exposed to inflation that you can't control which food and energy prices because of the war in
Ukraine.
CHATTERLEY: Yes, Christine Romans happy Friday happiest Friday.
(CROSSTALK)
CHATTERKEY: We'll see next week.
ROMANS: See you next week.
CHATTERLEY: Yes. OK, let's move on Russia's economy and the impact of sanctions in focus now as President Vladimir Putin delivers a speech at the
St. Petersburg International Economic Forum. The speech, however, was delayed by what the Kremlin called a massive cyberattacks, the Russian
President came out a few moments ago blasting the United States.
(BEGIN VIDEO CLIP)
VLADIMIR PUTIN, RUSSIAN PRESIDENT: The U.S. declared victory in the cold war and later think of themselves as God's own messengers on planet Earth,
who have no duties only interest and the latter had to clear. Saying as is if they choose to ignore over the recent decades, the planet has seen the
emergence and increasing prominence of new powerful centers.
Each and every center is developing its own political systems, social institutions, implementing their own economic growth models, and certainly
they have the right to protect them and to ensure their national sovereignty. I'm talking about - about the U.S. declared--
(END VIDEO CLIP)
CHATTERLEY: And I apologize for the double translation we're doing our best. At the same time is that was taking place one step closer to joining
the EU, the European Commission is recommending Ukrainians granted the status of candidate for membership. It's now down to the 27 EU states to
decide whether they agree.
Matthew Chance joins us now from Brussels. Matthew, great to get your perspective on both of those things! I think let's start with what's taking
place among the EU nations given that's where you are as well, the possibility that very, very quickly, Ukraine could be a candidate for EU
membership. And this would be extraordinarily quickly. And as a result of what we're seeing in terms of the war in Ukraine, how Russia feel about
this?
MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: That was a good question, because I think one of the factors or they're not the only factor
that has been holding other EU members from granting Ukraine membership status or candidate status for membership, is that idea that Russia could
react very badly.
Of course, for the last decade or more Russia has been fundamentally opposed to the eastward expansion of Western institutions like the European
Union, and like NATO as well, it sees them as part of the same kind of project to capture Russian lands to diminish Russia as much as possible.
And it's been working against that expansion, increasingly over the past couple of years, and you've seen that expressed in the invasion of Ukraine
that's been underway the latest iteration of it since February this year, it was cited that Ukraine wanted to join NATO. That was one of the reasons
why Russia decided to send its troops across the border. Now, obviously, the European Union doesn't pose such a military threat.
[09:10:00]
CHANCE: Although the Kremlin in the muted response has given so far to the EU Commission making that recommendation that Ukraine be given candidates
status. It did point out that there are increasing ambitions in the European Union for a pan European defensive force.
Basically, the Kremlin reaction is very slight at the moment - follow up later on after the EU Summit next week. But they said, look, this means
this issue means it's going to get our increased attention. And of course, that's not necessarily a good thing if you're Ukraine, or if you're another
potential candidate country, in the region.
CHATTERLEY: That's such a great point too. At least if they are made a candidate nation, though they then unlock access to finance to different
levels of support beyond the symbolism that this moment means, which is we've discussed, is vitally important I think in terms of unity.
I think we could describe it as exactly what they don't want, and didn't intend to happen not for Russia's part. I want to talk about Vladimir Putin
now and taking the stage at the St. Petersburg International Economic Forum and go back several years, even after the invasion of Crimea, there were
still business leaders, international business leaders there.
There were still world leaders that would go to that in the following years, the feel of this event, incredibly different representation from so
called friendly nations like China, and little else, Matthew.
CHANCE: Yes, even the Chinese Premier, Xi Jinping has appeared by video conference not in person. But yes, you're right. I mean, look, this was
always a major showcase to Russia's business. Yes, how you could make money in Russia?
How you can the opportunities that were too enormous to invest and make enormous quantities of profits inside that country. And of course, it's
always been embraced by Western businesses, no matter what the political backdrop has been.
But things have really changed I think this is a really good showcase of how much the world has changed since Russia's invasion back in February?
Because, as I say, Vladimir Putin sharing the stage with video messages from Xi Jinping, and from the Kazakh Leader, there have been world leaders
from European and Western countries on the stage previously, instead of those European delegations, the delegations now are from Venezuela, from
the Central African Republic.
They've sent their Prime Minister there, there's a delegation from Cuba, there's even a delegation from the Taliban in Afghanistan. So these are the
people that are attending this St. Petersburg International Economic Forum this year. And that is starkly different to the level of business leaders
and Western political representatives that we've seen in the past, Julia.
CHATTERLEY: Yes, we can see it even just represented as you look across the audience, as well. And the lack of familiar faces in terms of business
leaders and world leaders to your point too. Matthew very quickly, the speech itself was delayed by what the Kremlin described as a massive cyber-
attack.
And just not necessarily surprised me but admitting this right before an event where President Putin set to showcase and talk about the economy and
beyond. I just wonder whether perhaps it's better to be honest in these situations than allow perhaps speculation that it had something to do with
President Putin himself.
There have been a lot of questions being asked about his health, about his body language about what's actually going on with him? Any comment to make
on that?
CHANCE: Well, I mean, it could well have been a cyber-attack couldn't it? I mean, they say--
CHATTERLEY: Right.
CHANCE: And I expect that Russia is the - I expect that Russia is the target of cyber attackers, whether they're government or non-state actors,
because of its actions in the region, specifically over Ukraine. So that's definitely a possibility.
But you're right; there has been a lot of speculation about Vladimir Putin's health. It is just speculation, though, until we see any firm
evidence of that or any confirmation of it. It's very hard to do anything except acknowledge that there is this rumor going around that he's not
altogether he.
Although, you know, to my eye looks pretty healthy from what I've seen of him on television over the past couple of weeks. Actually, I saw him in
person in May and he looks absolutely fine in Moscow. You know, we'll see, it's definitely a very interesting situation that we're going to continue
to watch closely.
CHATTERLEY: Yes, Matthew, great to get your perspective on all of these things, as always. Matthew Chance there thank you! OK, let me bring you up
to speed now with some of the other stories making headlines around the world.
A gripping testimony during Thursday's public hearing on the January 6th riot at the U.S. Capitol, lawmakers laid out the intense pressure that
Former President Donald Trump was exerting on his Vice President to overturn the 2020 election results. Even though Trump knew his strategy was
illegal. Take a listen to some of what Trump was saying that day about Mike Pence.
(BEGIN VIDEO CLIP)
DONALD TRUMP, 45TH U.S. PRESIDENT: Mike Pence is going to have to come through for us and if he doesn't that will be a sad day for our country
that Mike Pence does the right thing we win the election.
[09:15:00]
NICHOLAS LUNA, FORMER TRUMP SPECIAL ASSISTANT: Yes, I remember hearing the word win; either he called him a win. I don't remember if he said you are a
win, you'll be a win; win is the word I remember.
UNIDENTIFIED MALE: It was a different tone than I'd heard him?
UNIDENTIFIED FEMALE: The "P" word.
(END VIDEO CLIP)
CHATTERLEY: The hearing resumes on Tuesday. And China was launched its third and most advanced aircraft carrier, the Fujian is capable of
deploying a wider variety of planes and earlier carriers with more ammunition. Experts say combat systems are catching up with the United
States. A new ship is meant to project China's rising power in the Pacific.
OK, straight ahead. How the E-commerce giant juggles frank supply chains with rising prices? And hooked on crypto we'll hear from a rehab center
where they're bracing themselves to treat investors facing financial ruin. Stay with us.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move"! Revlon the 90 year old cosmetics giant has filed for bankruptcy protection, blaming supply chain disruptions
and pricing pressures. It's a snapshot of the ongoing global challenges that businesses of all shapes and sizes are facing, including our next
guest.
Online retailer boxed, often dubbed Costco for Millennial also provides its technology and software to other E-Commerce businesses. And I'm glad to say
the CEO and Co-Founder of Boxed Chieh Huang joins us now, Chieh always fantastic to have you on the show!
It's not the only piece of your business, but it is a big piece. Much of what you sell is considered essential items be thy food or non-food, which
in this kind of environment I think helps but it doesn't lessen the challenges. Tell us what you're seeing. How hard is it?
CHIEH HUANG, CEO & COFOUNDER, BOXED: Yes, it's really quite an interesting time for everyone in the retail industry. You know, luckily, most of what
we sell, as you just mentioned is not discretionary so they are essential.
But even within the essentials, you're going to see kind of perhaps history repeats itself and in previous recessionary environments, you've seen the
consumer either trade down too hard discounters to dollar stores or trade up in terms of quantity so they can save in bulk. So we're kind of looking
at those trends. And even within the same channel we've also got our eye on private brands.
So when the shelves were bare back in the height of the pandemic Boxed - was tested for private brand and so we're seeing that hey if prices are
better on the private brand will we see some trading over to that side of the house as well?
[09:20:00]
CHATTERLEY: There's so much in that. And that's such a great point, you either trade down to less expensive items, or you buy less or if you have
enough money you buy in bulk, and you make savings that way, which game plays to the strengths of your business?
Are you already seeing that? Are you already seeing perhaps new customers that are looking for greater bargains looking to buy in bulk where perhaps
they haven't before? And also at your point, are you already seen people switch to different labels, home brands?
HUANG: Yes, so we've always had a very robust private brand. So we've got our eye on what that trend looks like now, as the kind of warning signals
in the economy begin to pick up.
CHATTERLEY: Right.
HUANG: When you also look at the different customers, you're seeing kind of sequential growth in our, you know, active customer account. But again, I
think what you're really going to look out for are kind of what the trends are, in these coming months as these retailers including us begin to report
these trends.
CHATTERLEY: Are you also raising prices, because there's obvious ways that you can go about this? You can talk to your suppliers and say, come on,
guys, we have to negotiate, you can't raise your prices that much. I know you've also struck deals with FedEx to try and lower transport costs. What
is it ultimately meaning for the consumers that come to your website do you have to charge higher prices in which specific areas?
HUANG: So Julia, definitely, when those suppliers come, I say exactly that. Probably direct quote, I'm, like hey guys, you know, differently. It's a
tough time for our consumer. So what do you got for us? And so it's a game of pennies, you know, at the moment, we have a great relationship with
FedEx.
We're hoping that lowers our transportation costs this year, thereby lowering our cost to serve the customer. So that's a big part of E-commerce
in general. But you're exactly right. You know, when the big consumer packaged goods companies of the world come on site we tell them, hey, OK,
perhaps you are raising that price.
But show us kind of what goes into that input price? Show us what goes into that price increase? And if it doesn't pass the sniff check, I think, and
then we begin to push back. You know, we've tried to absorb as much of that cost as possible. But you're definitely seeing kind of industry, you know,
retailers across industries, pass that along to the, customer and the consumer. So you're kind of starting to see that pain on that customer.
CHATTERLEY: The challenge with this economy too, is the demand side question over how long consumers can hold up and what their behavior does?
But there's also been this ongoing issue of supply chains and reopening, and of course, China with its lock downs too.
What's your sense of where we are in the recovery in terms of supply chains, which should also help ease some of the pricing pressures, when we
eventually see all of that unwind?
HUANG: So if kind of inflationary pressures by itself wasn't enough, and of course, you had supply chain to deal with.
CHATTERLEY: Yes.
HUANG: And so it's created a lot of kind of challenges for the industry, I think everything in life is relatively kind of, I guess, is relative. So
when you look at supply chain challenges today versus say, at the height of the pandemic, I don't think anyone in the industry can say it's as bad as
it was back then.
But at the same time, surely, this is not kind of smooth sailing blue ocean times as well. So we're seeing kind of a good recovery there. But you're
seeing roving kind of supply chain disruptions. Of course, you guys have covered it as well, you know, when it comes to the formula supply chain
disruption.
Now it's going into feminine care products. So you're seeing these pockets of disruption over and over again, it's almost like "Whack a Mole" at the
moment.
CHATTERLEY: Yes, and it's so tough for a central bank that's trying to calibrate policy based on all of these challenges and kinks because you
never know whether you're doing too much or too little depending on what seizing and when and how quickly it eases?
I want to talk about some of the valuations in the tech sector in particular. You as a company that literally went public last year as a
special purpose vehicle, use a specific type. We've now seen a shakedown in many of the valuations. You've been incredibly resilient I think over that
period. What do you see going on more broadly in terms of investments --? Yes.
HUANG: So definitely a change in the paradigm. I think folks are looking at all the different kinds of warning signals when it comes to recession. And
also, you know, technology, unfortunately, is getting hit first. And so we've been a part of that group. So we went from one of the highest
performing public debuts in all of 2021 across the country.
CHATTERLEY: Right.
HUANG: Now, so we think that severe dislocation in our share price isn't really reflective of the future of our momentum and where we're going to
go? But at the same time, it's no secret that the entire tech sector is under pressure. But we also think it's a buying opportunity.
So I bought twice now so once when we first went public, I also - we just filed the form where we just goes in I bought again, you know, other
director has bought. So we think it's quite a good entry price. And, you know, putting our money where my mouth is.
CHATTERLEY: Yes, I was about to say, if you did say I was.
[09:25:00]
CHATTERLEY: Tech also at the core of your business because it's not just about retail it's about the operations that you use the autonomous
technologies all the things that you've adapted to make your business more efficient that you're selling on now to others, how are those conversations
going?
Because in these times, you know, decisions over big investments, like that kind of technology sometimes gets sacrificed. Are you still having those
conversations? And is that still going to be a fundamental driver of the business over the next, let's say 12 to 18 months, in your mind?
HUANG: So that is an incredibly astute point. And I would have - I would have had a different answer several years ago, before the pandemic, where
E-commerce and these technologies were nice to have not a need to have. But you can have any executive from any retailer come onto your show, and say,
with a straight face, that it's not a need to have anymore.
Or that it's just a nice to have, whether it's just servicing that customer in a better way, or even contending with some of the supply chain
challenges, some of the labor challenges with automation. All these things are such salient points in the economy in the world today, that we're still
having robust conversations on that side of the house, which has a high gross margin side of the house.
CHATTERLEY: Yes, exactly, people don't have the luxury of optionality on this. It's a necessity if you want to be and run an efficient business
Chieh, great to chat to you, as always! We'll speak to you soon, thank you for your time. The CEO of Boxed there. Alright, still to come an Italian
Stallion with some serious horsepower, but we'll be EV version be equally supercharged Ferrari CEO, up next.
(COMMERCIAL BREAK)
[09:30:00]
CHATTERLEY: A very, very cute little boy there, ringing the bell at the New York Stock Exchange. He must be one of the youngest looking a little
confused but there is a bit of relief on the global markets after this week's not so magical misery toll for investors the bulls not ready to live
and let die with the NASDAQ and the S&P seeing a bit of green after the S&P 500's 6 percent slump so far this week.
The NASDAQ and the S&P hitting their lowest levels since late 2020 as well, it's a big options expiration day in the United States, which could
positively affect trading too so buying some stocks back against that.
Another potential pick me up a firmer picture on global bond markets. U.S. and European bond yield easing across the board European bond markets
reacting positively it seems to the ECB's anti-fragmentation focus. The European Central Bank promising this week to use new tools to bring down
soaring yields in certain member countries.
And with apologies to Paul McCartney, who tends 80 years young this weekend. It has been a long winding and unprofitable road for global
investors this week. Happy birthday, Sir Paul! And here's hoping the bulls gets back on their feet soon. Yes, we did our best if you missed the ponds
there. I gave it to you.
All right now shifting gears, drivers start your engines. Ferrari is revving up announcing more than a dozen new launches through 2026 including
a few noticeable firsts. It's first SUV and its first fully electric model, the luxury carmaker has also big plans to make 40 percent of its cars
electric by 2030. It's full speed ahead with growth, but drivers should expect some new prices around the bend too as Ferrari deals with the
inflationary pressures that other businesses are dealing with too.
Joining us now is Benedetto Vigna. He's the CEO of Ferrari. Sir fantastic to have you on the show! It's a hugely exciting period, I think for the
brand, whether it's the technology transition, it's the broader industry transition and of course, as I mentioned, the first EV in 2025. I want to
start there, what do you Ferrari customers want from an EV vehicle?
BENEDETTO VIGNA, CEO FERRARI: Thank you. This is very, very good question. I think all the customers from Ferrari are different. We address them one
by one. There are customers with preferred EV, some other customer they prefer - some other customers they prefer still the ICE.
So we are ready by 2030 to offer the three kinds of propulsion. So by 26, we will lever the electric starting in the range of 5 percent, while the
bulk will still be IC. And then in 2030 we will have 40 percent - 40 percent electric and 20 percent ICE. I see you're ready to address all the
customer needs so that we can provide them unique driving emotions.
CHATTERLEY: Oh, we're going to come back to that point about emotions because I do think that's incredibly important. But what I did spot was
even in 2030, 60 percent of your cars are still going to be ICE internal combustion, as you mentioned, or hybrid.
Is this a case of hedging your bets? Or is this more about a traditional Ferrari, people love the ground, they want the power, and they want the
speed. I'm trying to imagine a Ferrari customer waiting at a charging point for three hours in a queue to charge their vehicle and somehow I can't
picture it. Are you hedging your bets on EV?
VINGA: No, no, no, no we are leading always - let's say that we are using always leading edge technologies. We want to lead the race. We started to
use electric engine for our racing team in 2009. So this is already 13 years that we are in this electric transition race is nothing new for us.
Here we want to offer different kinds of engine for different kinds of Ferrari. Our product strategy is really, let's say clean and lean different
Ferrari for different Ferraris the different Ferrari for different moments.
We provide a different engine, and they will pick up with one that they will enjoy more in terms of emotion in terms of experience. This is our key
point.
CHATTERLEY: On your capital market today and I read your speech and I looked at a lot of the numbers. But what stood out for me was the point
that you've made twice now which is this emotional experience that driving a Ferrari gives somebody.
How do you ensure and it goes back I think to the first question I asked that you ensure that emotional experience is the same whether somebody's
driving a combustion engine or an EV vehicle or a hybrid. Is it about speed is it about sound?
What gives the driver that emotional experience and I guess it's what's - you've said he's bringing on new customers 25 percent new customers. Who
are those customers and have what is that emotional experience can you define it?
[09:35:00]
VINGA: OK, the customers are coming from all over the world. We are good to grow in the entire region, because we are selling in all the countries. And
we have the customer - the age, the average age of a new customer is eight years younger.
CHATTERLEY: Wow!
VINGA: And we see attraction on this customer base yes, of ICE and hybrid. And this is something really, I will say, a big achievement after the last
chapter - it was in, in 2018. So it's - let's say the offer - the fact that that we want to offer a unique experience, it means that we want to combine
different performances from the car. And we want to combine them in a unique way.
Because people think that the performance is only linear acceleration. That's not true. It's about linear. It's about a lateral acceleration. It's
about the braking experience is about sound. It's about also the gearbox, the way you all fit in.
This is the unique Ferrari way is not just to get in a car, and to go straight. To go fast in the straight line is a combination of all these
things and for our electric car, or our hybrid car, for our ICE car well, all this will fit in a unique and distinctive way. These are the key works
of our car.
CHATTERLEY: So younger, cleaner, leaner, look, I love her new phrase for you. Let's talk about price.
VIGNA: It's a good one.
CHATTERLEY: yes, I know you can use it but for the bargain price of a Ferrari sir. You've raised prices?
VIGNA: Do you have Ferrari? Do you have you? Because we see a lot of ladies coming to the Ferrari world there we see also an increase of our customer
base in the ladies. Our interest in the ladies word and in woman world is growing a lot. So younger, I would say also to add a dimension that we have
more women getting in love with our Ferraris.
CHATTERLEY: Yes. I'm not saying I don't love them. It's the case of affording it. Speaking of affording it--
VIGNA: Come on.
CHATTERLEY: I know it's a work in progress. You've raised prices by 2 percent, I believe and you've talked about a new pricing model as the new
models come out. Talk to me about current pricing pressures. Is a 2 percent price rise enough to cover the rising cost? Are the margins big enough? And
what does pricing adjustments in future? What do they look like? What is the thinking?
VINGA: So far, it has been good enough. I mean, if you see the result, we've been able to achieve all what all the promises we gave it four years
ago in the capital market day. In the future, clearly the pricing is a lever we want to use to get more value from the innovation we bring to the
market.
And here I'm referring to all the new models also because we have to consider what is the - we are carefully looking at what is happening on the
market in terms of inflection on the raw material? And on let's say on the energy cost.
But clearly let me say we will value properly the innovation, the experience the emotion that we provide to our customer. This is true for
all the new products and we will also address with existing product offers.
CHATETRLEY: Sir, it was great to chat to you! I will continue saving you can continue thinking about my offer of a free one?
VINGA: We have a wonderful car for you. So if you come here to - you can select we can personalize because all our cars are specific for each
customer. I think you will enjoy.
CHATTERLEY: Fantastic. I'm sure I will sir. We should reconvene on that great to chat to you. VINGA: You too. Bye, bye!
CHATTERLEY: The CEO of Ferrari there. Yes we love cars. OK after the break broken by Bitcoin, drugs, alcohols, gambling now add crypto to a list of
addictions which can cost you your money, your friends, and even your job. We'll discuss next.
(COMEMRCIAL BREAK)
[09:40:00]
CHATTERLEY: Welcome back to "First Move"! Instagram Memes of Mega Buck Bank statements private jets and laser eyes, one showcased the lavish lifestyles
and success of the Crypto rich. But as the value of digital currencies like Bitcoin, Ether and others collapse mocking memes now point to your
vanishing fortunes as amateur investors suffer.
Democratizing access to finance via easy to use apps like Robinhood and Coinbase can be great when markets are rising. But also education, trading
tips and efficient regulations certainly mattered that much more when markets are falling.
And that also separates more seasoned traders, perhaps from those who often have so much more to lose. They might experience an emotional roller
coaster of euphoric highs and then crashing lows and a sense of desperation, much like victims of gambling, drugs or alcohol.
Well, now therapists are bracing for an influx of people seeking help for so called "Crypto Addiction". Castle Craig Hospital in Scotland treats just
that.
The residential rehab center is warning getting hooked can destroy your life. Tony Marini is Senior Specialist Therapist there and he joins us now.
Tony, we're really great to have your expertise on the show today! How common a problem is crypto addiction and do class it is what we've seen in
the past as gambling?
TONY MARINI, SENIOR SPECIALIST THERAPIST, CASTLE CRAIG HOSPITAL: So yes, absolutely. How I see this is that, you know crypto it's definitely
gambling. It's not regulated in any way. And so straight away, you're gambling with that site is going to still be there in a month.
We had somebody in, invested all their action and then two months later, the platform disappeared. And because it's not regulated, there was really
nothing that they could do about it. I mean, the other thing is, it's where it takes you.
You know, it's that highly fulfilling stage at the beginning, you know, that excitement, you know that fantasizing about buying things, the
interaction with other traders. But once we get into that risky use, it's what it does to us emotionally.
So you know the social anxiety, self-confidence, self-esteem, and self- worth. We've seen a lot of people physically, you know, coming withdrawing from it. You know, my first patient was in 2016 and more since then have
come through the door.
So we've had just this happen with a year and coming up for 180 different people with different addictions through Crypto. What we're finding the
people who just guy just arrived back that was here three years ago for drugs and alcohol going to trading in crypto in December last year.
He made 550,000 pounds and that took him back to the drugs and alcohol and lost every single penny that he had made on that. This is definitely
gambling when you go into - you know you have to remember not everybody is going to be addicted to drugs and alcohol just as everybody's not going to
be addicted to gambling.
[09:45:00]
MARINI: So not everybody is going to be addicted to the crypto currencies. But if you think about, you know, there are millions of people trading now,
millions of people. So even if it's some percentage, you know, it's ruining a lot of people's lives. What we're seeing - 99 people are losing money
where one person is making money. So there's going to be big problems with this.
CAHTTERLEY: Tony, I mean, you've mentioned so many cases there. And as there was so much in there, I just wanted to stop you for a second. Because
I think what you're suggesting is that if you're vulnerable to addiction of any form, then the emotional roller coaster, particularly the highs, is
going to be alluring.
And it seems what you've seen is that one addiction can lead to another and it can take people back down a path, perhaps of some addiction, that
they've managed to get over for a period of time, like drugs and alcohol an incredibly important warning.
I think there'll be people watching that, perhaps recognize some of the addictive qualities in themselves when they're trading this. And it doesn't
even have to be crypto in this sense. It can be other things. What is the warning signs, Tony, for people around them? Perhaps, if not they, to
recognize that they're addicted to something and they're going down a dangerous path?
MARINI: Absolutely. I mean, you know, probably friends and family will notice it more than the actual person that's--
CHATTERLEY: Right.
MARINI: --of this. You know, to start with, you know, it's exciting, it's simple to use. So it's highly rewarding and stimulating. But then we start
to see that more risky use and people start to become irritable. You know, they're posting things and searching for things constantly, frequently
checking their phone or computer, comparing themselves to others, what happens is they start to build up the negative emotions.
So their self-confidence, their self-esteem and self-worth are down. So it impacts you know, family, it impacts their work. It impacts on financially.
And that's when we're starting to get into, you know, crossing that line into their mental obsession with it.
That's when we start getting into that desperation stage, that frantic behavior, and that's what we're seeing is, you know, people, especially
lately, you know, where the crash and everything, people are swapping into other things. Now, maybe different coins, you know, different Cryptos
CHATTERLEY: Tony?
MARINI: Oh, yes.
CHATTERLEY: What happens if people can't afford the kind of therapy that you provide? And, you know, the reason why you're there is because you have
personal experience of addiction and now you're perhaps the best kind of therapist because you understand what people are going through and you've
come out the other side?
If people can't afford the kinds of therapy or the hospital, particularly to the point that you made about the pensioner that lost their pension
savings. I mean, I can't imagine what that kind of person is going through? What are the basic things that people can perhaps do to help themselves?
MARINI: Yes. So I mean, where this takes you to, you know, is the complete dependency and suicidal ideations? You know, seen many, many people with
this. So getting help with, you know, either an addiction specialist or therapy, you know, which, you can have one to one, and it's not too
expensive.
But there's also, you know, gamblers anonymous out there, which is free, you know. And what we're finding them quite heavily into to helping MGA,
and what we're finding is there's a lot more people coming with the crypto addiction.
Obviously, they've lost of money, so they can't afford to come to a rehab like this. So, you know, going into, you know MGA, which gives us a
platform to actually express what's going on for us? You know, and we can have the identification from others that have gone through similar things.
But there's also help, you know, therefore, friends and family of the addict and you know, gamines and stuff, you know, because that addict might
be in denial about, you know, what's going on in their life? They're not in reality.
CHATTERLEY: No, you're right.
MARINI: It's the escape from reality that's where - absolutely.
CHATTERLEY: Tony, we're going to get you back on because we've only just begun this conversation, but we've run out of time. You're going to come
back and talk to us more, please. And I think the bottom line there was "Ask for Help" and we'll tweet out some numbers as well yes.
[09:50:00]
MARINI: Excellent.
CHATTERLEY: Tony great to chat to you thank you! Tony Marini there Senior Specialist Therapist at Castle Craig Hospital sir, we'll reconvene them
this conversation I promise. More "First Move" after the break.
(COMMERCAIL BREAK)
CHATTERELY: Welcome back to "First Move". The war in Ukraine, soaring inflation and the ongoing impact of climate change, just adding to fears of
food insecurity in Africa where around 80 percent of food that people eat is imported now the Founder and CEO of Nigeria's BUA Group says it's time
for countries to collaborate in developing Africa's own food value chain as Eleni Giokos reports for today's "Connecting Africa".
(BEGIN VIDEOTAPE)
ELENI GIOKOS, CNN ANCHOR AND CORRESPONDENT: We've spoken during the pandemic. And I know you were one of the voices, you know, pushing the
opportunities for Africa because so many vulnerabilities and inequalities came to the fore. So now we're getting onto a path of recovery. And we're
feeling like we're kind of getting there and then boom, geopolitical issues. What did you think when that happened?
ABDUL SAMAD RABIU, CEO, BUA GROUP: You know it was quite a shock. You know, because the world a lot of issues and for us, in Africa, this kind of
issues actually - Africa suffers most in anything, you know, like this.
GIOKOS: Like inflation, food insecurity - production of energy?
RABIU: Exactly. So for us is a big issue. And as I said, again, you know, I mean, with the world, reeling from the COVID-19, and just coming out of it,
and then this, so at the end of the day is a big issue.
GIOKOS: So what are you going to do to solve some of these issues? I know you're a problem solver, and you're across many industries?
RABIU: Part of the problem really, Eleni is the fact that Africa, we import most of what we consume, especially food. Africa imports, almost 80 percent
of what it consume. And some of these inputs are food items.
You know, we - Africa imported over 55 million tons of wheat, for example, last year. So we have seen a situation where the price of food, for
example, got up from say, an average of $250 per ton to almost $600 per ton, meaning that it has doubled and Africa you know relies heavily on
Ukrainian and Russian wheat with import of 40 percent.
GIOKOS: So what's - business then how are your inputs, because now your inputs have increased domestically?
RABIU: It is an issue. You know, because the problem is one we import this items, which means you know, we have to source for the foreign exchange.
Prices have doubled and then the purchasing power because if we import and the price is double, what do you do?
You have to increase our prices. So inflation and a lot of the people cannot really afford that. So we are seeing a decrease in terms of
production you know processing and also consumption.
[09:55:00]
RABIU: And that is a big issue that is why I keep saying that, you know, we have to look inwards. We have to really do as much as we can to add value
to what we have. We have to increase you know, production for food security for the food security of the continent.
(END VIDEOTAPE)
CHATTERELY: OK, and that just about wraps up the show. If you've missed any of our interviews today, they will be on my Twitter, and Instagram pages
you can search for @jchatterleycnn. In the meantime "Connect the World" with Becky Anderson is up next, and I'll see you on Monday.
(COMMERCIAL BREAK)
END
