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First Move with Julia Chatterley
Japan's Longest-Serving PM Mourned and Honored after Murder; President Denied Departure at Colombo Airport; Wickramaratne: The President Ignored Advice to Change Course; Mankin: Chain of Casualty is Complicated; DeLorean Motor Company to Offer new Electric Vehicle; NASA Unveils Deepest Infrared Image of Universe Ever Taken. Aired 9-10a ET
Aired July 12, 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 MOVE: A warm welcome as always to "First Move". Thank you once again for joining us this Tuesday. And this is a
somber day in Japan as the nation pays its final respects to Former Prime Minister Shinzo Abe, who was assassinated on Friday. His funeral was held
in Tokyo earlier the streets lined with people saying their last goodbyes. We've got a live report from Tokyo coming up on the show.
Also across Asia Sri Lanka's President trying and failing to flee the country amid a worsening economic crisis one that led to a stunningly
popular revolt and his dramatic fall from power. We'll hear from a Former Finance Minister and Current Opposition MP about the way forward for the
country. The big questions for me how long before formal elections can be held and shorter term, how to feed the nation and negotiate international
aid we'll be discussing?
And a weaker picture overall for Asian stocks today rising COVID cases in China albeit from low levels, sparking fears of further economic
restrictions. Macau Casino is now being forced to shut down for a week too, talk about roll of the dice that move triggering a steep sell off in gaming
stocks like Las Vegas Sands and Wynn Resorts.
And a losing hand on Wall Street too, Futures as you can see, pointing to a second day of losses for the DOW and the S&P as we await Wednesday's key
inflation data from the United States. The White House warning that June's consumer price index will be highly elevated.
And a softer picture too for stocks across Europe where a worsening energy crisis will surely hamper economic growth and perhaps trigger a deeper
recession and shorter term constraint at the European Central Bank's ability to tackle inflation. All that reflected in currency markets.
The U.S. dollar and the euro briefly hitting one-for-one parity for the first time in 20 years we're just above that now as you can see the U.S.
dollar also gaining ground against many other currencies as the Federal Reserve continues to hike rates. Investors firmly on parity patrol today.
But first, let me get you the latest from Japan large crowds joined with family and friends of Shinzo Abe in Tokyo earlier to pay their respects to
Japan's Former Prime Minister. After a private funeral service Abe's body was taken by hearse to be cremated as the shock of his assassination
continues to reverberate throughout the country and the world. Blake Essig joins us now from Tokyo a truly a somber sorrowful day there I think memory
of a life ended far too soon, Blake.
BLAKE ESSIG, CNN CORRESPONDENT: Julia, you're absolutely right. It's a sad day here in Japan where even the weather gray skies and at times, a lot of
rain seems to be reflecting the mood as Japan said goodbye and laid to rest its longest serving Prime Minister this afternoon. A funeral service for
Shinzo Abe limited to only family and friends was held at Zojoji temple here in Tokyo.
Abe's body then traveled in procession to the Prime Minister's office the content parliament in the LDP headquarters before heading to the funeral
hall to be cremated. His body visited those specific locations because in Japanese culture sometimes the body will be driven by places where the
deceased was heavily associated as a sign of respect.
We saw his hearse passed by Japan's parliament, a hundreds line the streets including children, people who look like they had left work to see the
hearse pass by diet members and diet police are all there to bill to bid a farewell is Abe's body passed by some of them in tears out for the past
several days.
We've talked to people out in the street, every single person whether they liked it or not, were shocked they were sad and horrified that such an act
could be carried out against one of the most powerful people in Japan. And broad daylight in a country where gun violence essentially doesn't exist
this is very much a country in mourning as they lay to rest its longest serving Prime Minister now.
While Japan says goodbye to Abe the investigation into his assassination continues for days we've reported that the suspect targeted the Former
Prime Minister because he held a grudge against a group he believed Abe had ties to that was linked to his mother we've now learned that group is the
Family Federation for world peace and unification more commonly known as the Unification Church, which was founded in South Korea in the 1950s of
the church's chairman has issued a statement that said that the suspect's mother is involved with the group.
CNN has not confirmed with the mother but the statement pointed out that the suspect's mother attended church monthly.
[09:05:00]
ESSIG: And that the man suspected of murdering excuse me, the Former Prime Minister was never a member of the church Japan's public broadcaster NHK is
also reporting that the suspect made up his mind to target Abe a year ago and decided not to use explosives which were found at his home because Abe
was his only intended target, Julia.
CHATTERLEY: Blake, thank you so much for that report. And I know you've had an incredibly long day so and we appreciate your time thank you, Blake
Essig there joining us from Tokyo.
Now from Japan to China, where authorities now plan to make limited payments to some bank customers in the Henan Province on Sunday, police use
force to disperse peaceful protesters demanding their money back. A handful of banks had frozen deposits since April without giving a clear
explanation.
Selina Wang joins me now interesting that the authorities in are recognizing that this is people that have lost their life savings through
no fault of their own and are going to begin reimbursing them. But there are conditions and you can talk us through that. Do we even know where the
money's coming from to give them this cash back?
SELINA WANG, CNN CORRESPONDENT: Yes, Julia, there are a lot of caveats here a lot of questions. And this only provides a very limited amount for a
relief for these people who have been struggling to access their life savings for months now they have spent months and anguish and still limited
answers here.
Authorities are saying they will start to pay back some of the people who haven't been able to access their deposits. So individuals with deposits
worth less than about 7400 U.S. dollars in a single bank, they will be repaid first. But importantly here it is unclear when the others will get
back their money.
And if they will ever get the full amount back on top of that authority said that for banking customers who received high interest rates from other
channels, or who were involved in court suspected illegal or criminal funds, they will not get repayment. Now that line is key because we don't
know how many people that actually applies to police right now.
We're investigating the banks and blamed fraudulent management practices for the crisis. Many customers may have unknowingly put their money into
these illegal funds. And so those people will not see their money back.
No surprise we've seen a lot of angry comments on Chinese social media. Some depositors are calling authorities shameless. They're saying that this
is just a delay tactic and they doubt they'll ever see their money again. They have criticized how no timeline has been given for how many of these
people are going to receive their money.
We are talking here about large sums of money for some of these people. I spoke to an entrepreneur who said he's got 6 million U.S. dollars' worth of
RMB saved in these accounts that have been frozen. I spoke to a migrant worker who said he has spent his entire life saving would amount to tens of
thousands of U.S. dollars and he says he's now struggling to survive struggling to buy food for his children to buy medicine for his sick
parents.
And the issues here in Henan the concern is that they could spread to other small banks and other provinces because as we've been talking about this is
not just an issue for these rural banks in Henan, there are skyrocketing local debt problems across the country that's been compounded by the
economic challenges of zero COVID of these pandemic costs.
And we have seen several rare protests in response to this banking crisis in China in the past few months. The one on Sunday was violently suppressed
by authorities quashing these peaceful protesters. Some protesters were left injured, bloodied and bruised. That only added to the national outrage
that has been escalating over these past few months.
Analysts see this latest booth from authorities as a way to try and maintain some social stability because again, we are just months away from
the all-important Party Congress when Xi Jinping is expected to seek an unprecedented third term at the top of the Communist Party. And this social
instability could be seen as an embarrassment for a leader that has been priding himself in what he's called his campaign for common prosperity and
China, Julia.
CHATTERLEY: Yes, and the traditional way of calming a bank run as you allow people to get their money out controls like this, particularly in the face
of protests, a real challenge you got to be very careful how they handle this at this particular moment. Selina Wang, thank you for that.
OK, it's been a historic day in the currency markets are rare Even Steven moment says the euro and the dollar briefly hit parity for the first time
in two decades a parity for U.S. tourists, a parity pickle for multinationals that could face new earnings pressures. Parity pressures, of
course for the European Central Bank too. Clare Sebastian joins us to discuss today's currency convergence. The Euro has been crushed this year.
And I use that term very carefully, quite often. I think it's an overused term down 12 percent. But it's as much about euro weakness as it is about
dollar strength versus many other currencies and the challenges, I think for the two central banks in raising rates to tame inflation.
CLARE SEBASTIAN, CNN CORRESPONDENT: Yes, that's exactly right, Julia. Yes, a two sided story, a two sided coin perhaps is the best way to put it. On
the one hand, you have the fact that currency markets in Europe are really waking up to the fact that this is potentially a full blown energy crisis.
We have a Russia which has switched off the Nord Stream I Pipeline which supplies a little over a third of the gas to Europe certainly if you
compare against what Europe imported from Russia last year that is off for 10 days for maintenance.
[09:10:00]
SEBASTIAN: But ministers from Germany and France are warning over the weekend that they fear it might not come back on again in preparing for
Russia to cut off the gas all together. So that is one thing, we then have the ECB, which has yet to raise rates at all, it's expected to do so on
July 21st, which is incidentally, also the day when the Nord Stream one is expected to switch on again.
So there's a lot to watch on July 21st. But even if it raises rates by 50 basis points that will only take it to zero, the Federal Reserve has acted
very aggressively to raise interest rates to combat inflation that makes the dollar much more attractive as a safe haven. So we have the dollar
surging we have these recession fears in Europe because of the energy crisis. And that is what has brought us to this moment.
CHATTERLEY: Yes, and your exports get sorry, your inputs get far more expensive when your currency continues to weaken. I think Germany recorded
its first trade deficit, didn't it since 1991. Just last week, yes, a huge signals Clare, great to have you with us, thank you, Clare Sebastian there.
I was so clever saying about the travel costs of goods as of this to Heathrow more like no go. One of the world's busiest airports is asking
airlines not to sell any more tickets for this summer. It's struggling to cope with high demand and a lack of resources. Anna Stewart is at Heathrow
forests specific restrictions and that they don't want to be dealing with more than 100,000 passengers per day. What's that relative to what would be
normal outside of this period?
ANNA STEWART, CNN REPORTER: Well, that's perhaps what's most extraordinary is pre pandemic, this airport could take 220,000 passengers a day, which
just goes to show how far actually we are from post pandemic recovery in terms of travel. But there is a huge resurgence in demand. And this cap of
100,000 passengers a day essentially means there'll be a reduction of around 4000 passengers a day. That's how much capacity the airlines have.
Some of those excess seats have already been sold, some of them haven't. That certainly means there will likely be more flight cancellations to
come. And we've already of course, had many flight cancellations, particularly from Heathrow Airport.
And hopefully this will mean airlines do it with some time. So you know travelers aren't turning up to the airport, only to find them that their
flight has been canceled. Now, a lot of this comes down to staff shortages. This is something we're seeing at airports right across the continent, and
I believe in the U.S. as well in an open letter from the airport CEO at Heathrow, John Holland-Kaye.
He says at Heathrow, we have seen 40 years of passenger growth in just four months. He went on to explain or perhaps defend the airport staff shortages
by saying they did start recruiting again post pandemic in November, but it takes time to train up staff. And of course, they're also they're also huge
shortages still, particularly in areas like round handling. And so this airport I'm sure we've got pictures to show you.
One of the biggest problems in addition to sort of flight delays and cancellations and airlines strikes me there's a lot at stake here, but also
just the issue of baggage and you can see honestly it almost looks like it feels a baggage and you pity the passenger who has managed to jet off to
their holiday and China bag has been left behind.
Brave is the traveler who travels in Europe right now, with more than just carry on. This isn't the only airport to be doing measures like this. And
they did say today Heathrow airport that they're not really enforcing it.
This is a request for airlines, or rather Ripley, I imagine at this stage, and the airlines will work with an independent slot coordinator ACL to try
and work out where to cancel flights how to move passengers on to different routes or from different airports to try and manage all of that disruption.
But of course, we've seen very similar measures and - also in London Gatwick Airport, but this is just the latest, Julia.
CHATTERLEY: Yes, I'm sure the airlines are upset about because they want to sell as many tickets as they can, but not if people's baggage gets left
because they don't have enough ground handlers to organize them. It's yes, a huge challenge Anna, well done for battling those taking off for aero
planes there as well, good projection.
STEWART: Which I was taking off will carry on.
CHATTERLEY: Anna Stewart at Heathrow, thank you. OK, let me bring you up to speed with some of the other stories making headlines around the world. In
just a few hours, the January 6th committee will hold its seventh public hearing, focusing this time on the role of violent extremists and their
ties to allies of Donald Trump.
The committee is also expected to look at how the then President encouraged his supporters to go to Washington the day of the violent insurrection.
Don't miss CNN special coverage of today's hearing. The program starts at noon in Washington and New York that's 5pm in London.
Russia is continuing its brutal assault on southern Ukraine.
12 people were hurt and homes destroyed overnight, as the city of Mykolayiv came under heavy fire. Ukrainian officials say Russians are targeting
residential areas, shopping centers, apartment buildings, and hospitals. The United Nations is projecting that India will become the world's most
popular country in 2023.
[09:15:00]
CHATTERLEY: A new report says its population is on track to surpass China's with more than 1.4 billion residents but the U.N. also warns that a high
fertility rate could challenge economic growth.
OK, still to come on the show undignified exit how Sri Lanka's President tried and failed to flee a country in crisis? Plus, it'll do 88 miles an
hour, but it won't take you to tomorrow. DeLorean has reimagined the luxury sports car for the future; we'll discuss stay with us.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move" a high ranking military official has told CNN that the Sri Lankan President was denied departure as he tried
to leave the country today, saying he refused to queue up for customs in public.
This as Sri Lankan lawmakers announced they will elect a new President later this month. Dramatic protests or demonstrators stormed the
Presidential Palace forcing the current leader and Prime Minister to resign. It's all been stoked by a series of crises facing the country.
We're talking about historic fuel, food and medicine shortages. Peter Smith has the details in this report.
(BEGIN VIDEO CLIP)
PETER SMITH, ITV NEWS CORRESPONDENT (voice over): In Sri Lanka, the queue for petrol no longer lasts for hours. The wait is now measured in days.
This is what it looks like when the country runs out of fuel and money. And this is what happens when the people run out of patience.
SMITH (on camera): How long have you been waiting for petrol?
THUWAN RAMZAY, PROTESTER: For five days.
SMITH (on camera): Five days?
RAMZAY: Yes, in the queue.
SMITH (on camera): Protesters have stormed the gates of the Presidential Palace. And from what we saw today, they have now taken over.
UNIDENTIFIED MALE: We will win because people are united.
SMITH (on camera): This President is not coming back here.
UNIDENTIFIED MALE: Yes never come. If he comes here, our people will kick out him.
SMITH (voice over): The writing is now on the wall for the Sri Lankan regimes. The Black Flag of the protesters now flies here. The new occupants
experience the luxury of a Presidential bed and there have been queues to take a dip in the President's pool.
SMITH (on camera): The fact we along with these people can walk through this palace at our leisure tells us power in Sri Lanka no longer lies in
the hands of the President, but it's not yet in the hands of the people. Because the military still surrounds this place. Heavily armed guards are
overseeing this delicate revolution.
SMITH (voice over): The police have already fired tear gas on protesters the guns haven't gone away but people here telling me they are simply no
longer scared.
[09:20:00]
UNIDENTIFIED MALE: I'm dying for my country. I'm proud for that thing.
SMITH (on camera): So the fear has gone away for you?
UNIDENTIFIED MALE: Yes sure, definitely otherwise why I'm not here.
SMITH (voice over): Sheer desperation has driven this with no gas for stoves people in Sri Lanka, now buy wood to cook in the streets. Community
kitchens feed those without fuel or food. Disala Rodrigo has been camped outside this palace since April? Now she's inside the President's old gym.
DISALA RODRIGO, PROTESTER: We don't have a gasoline to cook even if we have induction, electric cookers. We don't have electricity. There is a power
cut going on every day. So that's the main reason why I'm here.
SMITH (on camera): Is this the end?
RODRIGO: No, this is not waiting until the league official. Unless they leave we are going to stay here and continue.
SMITH (voice over): Sri Lanka's President is now in hiding and his brief that he'll resign on Wednesday. The people say they will believe that when
they see it, until then, the steep route and hold on to vote.
(END VIDEO CLIP)
CHATTERLEY: OK, joining us now is Eran Wickramaratne. He's a member of the Sri Lankan Parliament. He's also served as the Nation's Finance Minister in
the past. Sir, great to have you on the show! Can I just ask to get back to the comments that I made earlier in light of the protests that we saw at
the weekend? Do you believe that that the President and the Prime Minister are safe out in public in Sri Lanka?
ERAN WICKRAMARATNE, MEMBER OF PARLIAMENT OF SRI LANKA: I don't think that it would be advisable for them to be out in the public, because people have
gone through a lot of hardship. And there's a lot of anger and animosity. So I don't think that's wise, it hurt at all. People want change; they want
them basically out of the way. And now we are getting into the transition phase.
CHATTERLEY: And the transition phase is clearly very important. You have no doubts that the President will formally stepped down tomorrow, Wednesday.
WICKRAMARATNE: No, I have no doubt about it, because he can't survive. You say? I don't think anybody expected what actually happened. It's truly
people's revolt. And people from all over the country. And this has been going on for months, he was advised about it. But the advice fell on deaf
ears.
I did this myself personally to him as well as talk to him for more than two hours explaining things. But all that was ignored more than a month
ago. And so this is an inevitable thing. There is no looking back on it. So he will have to go. And then we will have to translate to a new President
as far as an interim measure. And then eventually the country will have to go into an election. And the people will have to decide who should be
actually governing them within the legal and democratic framework.
CHATTERLEY: What we're heading towards it seems is perhaps the Leader of the Opposition party taking an interim presidency period and a unity
government being formed. To your point about eventually in election, the next government needs a mandate to make some incredibly tough decisions.
And we can talk about that on an economic basis. Beyond tough decisions, how quickly do you think elections can be held? What needs to be the
priority?
WICKRAMARATNE: At the moment, the priority is to get people out of the long queues, as was mentioned, that people are staying for days to get some
petrol or diesel. There has been a shortage of cooking gas that's just about being resolved at the moment. And then food shortages and
pharmaceutical shortages, you know.
So really, you need the government which has the confidence of the people and the government, which has the confidence of the international community
and international markets. And that's first the priority. The moment that is done, then we has to basically call on all our friends to be of
assistance because we have in default in terms of our debt, we don't have dollars because our reserves have been run down in a very short period by
this President and this regime.
And therefore, we have to take some immediate steps. So immediate things will be is to obtain bridging finance some supplies credits, to get over
the gasoline issue so that we could send people off the streets and try to normalize things.
If things normalize then we could certainly go into the reforms that are needed as you said very difficult decisions lie ahead discussion with the
International Monetary Fund, you know that needs to be signed.
[09:25:00]
WICKRAMARATNE: And then we need to also going for renegotiating our debt is to make it more sustainable. And then lots of other reforms that have to be
done. So we will have to go about it gradually. But the immediate thing is to change the government, put people that the international community and
the local populace can trust and then go from bridging finance, and get people off the streets, and then get into more serious economic and
financial reform.
CHATTERLEY: Yes, and to your point, feeding people has to be the priority and trying to stabilize this sort of humanitarian and national crisis that
people are going through. When you said reaching out to friends, are you talking India, China, and financial support in the interim, before you can
even negotiate some kind of IMF deal?
WICKRAMARATNE: Yes, because the IMF deals, I think the moment the new government is in place, it will be a very high priority that we will sign a
staff level agreement with the IMF. And after that, the process begins.
So it will take time, because to get an extended fund facility, but after we have signed the staff level agreement, we are hoping that there will be
some emergency funding, then in terms of food, you know, some aid and also the World Food Program, and others who we have come to our assistance, we
need to you know, pursue that.
And then the friendly countries will have to help us particularly with an oil supplies because if we can get the oil supplies in life normalizes for
the ordinary citizen. And also the economy gets moving again, because otherwise the economy's as a standstill because of the energy crisis. So
that'll have to be done.
So I think that we'll have to go stage by stage first things first. Getting the Rajapaksa's out of the way, establishing a government that is
acceptable. Sajith Premadasa, the opposition leader is the probably the one that will be most acceptable in the circumstances, because he leads the
largest opposition party and I think others should rally around that.
The crime in the country would be that nobody who has anything to do with the Rajapaksa's are going to lead in the next phase. But in Parliament, the
situation is different because in Parliament, the pro Rajapaksa factions have a majority. So people will have to be realistic members of parliament
will have to be realistic.
And they will have to see this as an interim government and support Sajith Premadasa and the government. And then once we get on that first phase,
certainly we can go in for an election and then people who are even in the protesters can come forward and ask for a mandate that you know that do
also will become open.
CHATTERLEY: Yes, and then the tough decisions really begin sir, a lot of work to be done. We appreciate your time, thank you so much for joining us
there from Colombo. We'll speak again soon.
OK, coming up on "First Move" the unequal cost of climate change. Some countries could be on the hook for billions of dollars' worth of damage to
their neighbors quantified for the first time stay with us.
(COMMERCIAL BREAK)
[09:30:00]
CHATTERLEY: Welcome back to "First Move". $3.5 trillion that's the latest estimate of economic harm caused specifically by the United States and
China the world's top emitters of planet warming gases.
A study today published by Dartmouth College is the first to connect the dots between one country's fossil fuel emissions and the negative impact on
other nations. The study finds the world's top five emitters including Russia, India, and Brazil caused around $6 trillion worth of economic
losses during the period from 1990 to 2014. Just to give you a sense, that's around 11 percent of global GDP.
Alright to discuss the report, Justin Mankin, Assistant Professor of Geography at Dartmouth College, he's a senior researcher on the study.
Justin, fantastic to have you with us. For me, this is about culpability of one country to another country. And as I mentioned in the introduction, I
think the first time we've actually quantified the cost and attributed it to specific nations and their greenhouse gas emissions. It feels huge.
JUSTIN MANKIN, ASSISTANT PROFESSOR OF GEOGRAPHY AT DARTMOUTH COLLEGE: Yes, you know this is the first study that is trying to connect the long chain
of causality between a country's greenhouse gas emissions. How those emissions translate into greenhouse gas concentrations in the atmosphere?
How those concentrations in the atmosphere translate into global mean temperature change? How that global mean temperature change, propagates
down to the country level, and alters the temperature at another country?
And then the connection between changes in temperature, and income within that country, you know that chain of causality is complicated. Scientists
have spent a tremendous amount of time building individual lengths and that chain of causality.
We're the first to integrate all of those links together and treat the associated uncertainties responsibly, and show that despite the associated
uncertainties at each length in this chain of causality. We are able to attribute damages and benefits to major fossil fuel emitters.
CHATTERLEY: And sort of in English in a way you have the complexities of the carbon cycle you have natural variations in climate. You have
uncertainties in when people are emitting and how they're emitting and there's always been this sort of veil of deniability.
Wow! You know, maybe it is maybe it isn't, we can see climate change happening, but maybe it's not down to us. This is about perhaps providing,
in your words, when the author's reports words.
Perhaps some kind of legal basis for nations that are being impacted by climate change to turn around to some of the biggest emitters in the world
and say, hey, this is the economic damage we're facing as a result of your emissions.
MANKIN: Yes precisely, I think, you know, quantifying the nations that are culpable for the impacts of the global warming that has already occurred.
Global warming has occurred. We live on a planet where that's happened, that global warming has had impacts.
We can quantify those impacts in terms of aggregate measures of things like GDP or within particular sectors of the economy. And having quantification
of global warming's impact on our country is one thing but you're right it provides this veil of plausible deniability for particular emitters, right?
[09:35:00]
MANKIN: This idea that global warming is this collective action problem, that climate mitigation is this public good. And so, you know, if any one
country defects, right doesn't participate in climate mitigation, there's no impact on global temperature.
That's not the case, right? One country admitting or for going into missions has an economic impact, we can process trace and identify and
quantify that impact and put it in dollar terms.
And you're absolutely right, that is central to informing climate litigation, questions of climate liability the ambitions of a lot of low
income countries in the global south, who are rightfully seeking restitution for the damages. They've suffered from the benefits of fossil
fuel consumption in the industrialized world.
CHATTERLEY: I mean, some of the ways that I look at this, and when I first saw, the announcement of the report, I wondered whether it was a way to
justify some form of debt relief, to finance even a transition to cleaner energy is in some of the poor nations in the world particularly given that
they're indebted, in many cases, too some of the biggest nations like the United States.
And China, for example, Christopher Callahan is the first author of the study and a PhD candidate, I believe, at Dartmouth. And I saw some of his
earlier research looked at climate variability and the impact of air quality in Beijing, which was quite fascinating to me.
And I just wondered whether you even look at something like that air quality pollution levels, or is this simply temperature rises, that you're
quantifying here in terms of damage and the impact? And therefore is the risk that actually this report underestimates the economic loss and the
damage?
MANKIN: Yes, precisely. I think you can, in some ways, think of this, as one quantification of the economic impacts of global warming. Here, we're
assessing and I should emphasize, Chris Callahan, who I wish could have been here to speak with you instead, because he truly led this research and
is a remarkable scholar.
There is this theme within his research about thinking about how we connected the geophysics of the climate system, to socio economic outcomes
and how it affects people. And his work is really at the vanguard of that effort. You're absolutely right, that we are not considering things like
the, you know, the other consequences associated with carbon emissions of greenhouse gas emissions in general air quality, detriments and human
health consequences.
You know, those are not an explicit part of the analysis to the extent that those you know, those health consequences are kind of embedded in this
aggregate measure of climate that we use, right, we're using temperature at the country scale.
That temperature is subsuming a whole bunch of different quantities about meteorology and climate within that country it changes in precipitation
changes in extreme heat. Changes in air quality to the extent that changes in temperature associated with inversions in the atmosphere that allow, you
know, pollution to get trapped near the surface causing harm to human lungs.
So to the extent that those things are correlated with country level temperature, they would be at least part of the measure of damages. But in
other research that we've done, we found that if you consider temperature extremes versus average temperature you get independent answers about
economic damages associated with these things, meaning that different climate quantities have different quantifiable impacts.
And here, we're simply presenting the warming that has been caused by country level emissions, and providing, you know that chain of causality
that evidentiary chain of causality from emitting country to downstream affected country.
CHATTERLEY: You got it. I mean, very quickly, no, it's very important. Because as we always need to we keep saying this nations do need to work
together. And we saw that with COP-26 too, to find solutions. What this also says is nations need to take individual action if only to limit their
potential legal liability from here?
Justin, I have about 30 seconds. Do you believe that actually this will form the basis for legal challenges, or do you worry that it will just be
brushed off by big nations like the United States and like China?
MANKIN: Certainly, you know, large submitters have every incentive to try to prevent climate liability claims from moving forward I think--
CHATTERLEY: I think the bottom line--
[09:40:00]
MANKIN: Yes, there is a moral obligation. The fact of the matter is that this research reveals that the people who have benefited from the
consumption of fossil fuels and from the warming associated with the emission from the combustion of fossil fuels.
They are not the same as the people who have suffered. There has been a massive international wealth transfer from the poorest countries in the
world, to the wealthiest countries in the world.
And informing and empowering claims of restitution is absolutely essential to moving climate mitigation forward because it's raising the cost of
continuing emissions in the way that countries have for the last century.
CHATTERLEY: Yes. And we will continue to talk about it. Justin, thank you for the work great to have you on thank you sir! Christopher Callahan again
it's why we mentioned his name. I know he did a heck of a lot of work on this. So we thank him too.
MANKIN: He's remarkable scholar.
CHATTERLEY: Yes, we got it. We'll get him on soon I promise. The Assistant Professor at Dartmouth College, sir thank you! OK, after the break, let's
party like its 1981 again, go back in time and buy a classic DeLorean or look to the future with an all new version. Either way, it seems DeLorean
has a car for you, perhaps the CEO is up next.
(COMMERCIAL BREAK)
CHATTERLEY: You were a little bit more excited than me but thanks to Travel Trilogy, the stainless steel supercar cemented his place as a 80s icon and
cemented is the word critics back in the day bemoaning its lack of power.
Well, the DeLorean Motor Company is back the Revive Brand, which is not associated with the original DeLorean family has been teasing this EV with
gull wing doors promising a range of 300 miles and acceleration to 88 miles an hour. Get it in just over four seconds.
Only 88 initial EV units are planned future models include a V8 Sports Car and a hydrogen powered SUV. Or if you just prefer the old school DeLorean
the company can sell you one of those too, refurbish of course, no word on whether they come with a flat capacitor Joost De Vries is the CEO.
[09:45:00]
CHATTERLEY: And he joins us now. Oh, we had some funny games with this morning, I can tell you. Let's start by talking about the Alpha 5, which is
sort of the premier car that you're bringing out first talk to me about spec, how much excitement and why only 88?
JOOST DE VRIES, CEO DELOREAN MOTOR COMPANY: Well, let me first say thank you very much for having us, we were having a lot of fun with this. This
brand is just amazing. Let me first make it clear, we're not planning on building just 88 cars that wouldn't work.
CHATTERLEY: The Musk--
VRIES: We're coming out with our Alpha 5 in five weeks from now at Pebble Beach. We're super excited. We launched the car digitally a few weeks ago,
and it's been absolutely viral.
When do have a brand like DeLorean that left the automotive market physically, with a coupe. The only way to come back, of course, was with
the coupe. And that will be our halo car that you will see and be able to touch in five weeks from now and not 88.
CHATTERLEY: How many orders you have? Can you tell me do you have orders already?
VRIES: Well, that's really kind of funny, because when we started teasing in Super Bowl earlier in the year that we might be coming back with a
physical vehicle, the amount of noise that created in the marketplace was just absolutely insane.
What we're hoping for is that, given the very limited production number we're going to do on the car one more than the ultimate DeLorean. We'll
probably have a ratio of 120 people to one for every car. So it's going to be a lot of fun to see that.
CAHTTERLEY: OK, so that will determine or help determine the price. Can you give us even just a sense of where you're going to pitch this?
VRIES: Given the specs, we want to be very competitive against the 99 percent of the market we're competing with which are the internal
combustion markets. And we want to be priced just under the cheapest exotic vehicle starts. So think high end Tesla high end Lucid and just under Aasta
Martin Starts.
CHATTERLEY: OK, talk to me about the broader vision because we're talking about an EV vehicle. But then I mentioned the hydrogen SUV V8 combustion
engines. And you've sort of made the reference there where you said, look, we're pitching at the combustion price point in particular. So in terms of
the vision of the company, what is it sexy, sporty vehicles, not necessarily EV, or anything else?
VRIES: I think that the message has been a little bit scrambled in the marketplace. I mean, when we left production, physically in 1983 and you're
coming back in 2022. There's this little 40 year gap that you need to answer for.
And when we started digging into the brand, together with the people who've been managing your brand really, really well. We found out there were
designs for coupes, there were designs for a Sedan. So what we have basically done is go back into the archives and work with the original
designers and recreate vehicles that the world has never seen.
So we're launching a 1990 coupe with V8 engine, we're launching a 2000 four door electric Sedan that the world has never seen the launching a 2010
hydrogen powered SUV. And that makes them the story logical and when we're launching in 2022 our Alpha 5.
So the Alpha 2, Alpha 9 and Alpha 4 will be launched over the next five weeks. And then the Alpha 5 will be the first physical evidence of what
this company is doing going forward. It's a fantastic story. We're basically writing a legacy in real time.
CHATTERLEY: I tell you what this is an exciting story through and through. I mean the DeLorean family themselves. He was a seriously exciting
character raising money for this took him into complications that people can read about I won't go into it. What is the situation with the family
today? You own the rights. It's clean, completely separated?
VRIES: Yes, the family that purchased the rights to the DeLorean brand to win family has been an amazing host of the brand for the last 30 years and
they've really built an ecosystem around the DMC 12.
The family of DeLorean the Heirs of the DeLorean name they still own everything related to John DeLorean, but they're not directly in the new
DeLorean Company or in the classic DeLorean Company, if you want to call it that way.
CHATTERLEY: Yes, people should read about this because it's quite exciting. This is a cash burn business and as we discussed at the top, making a take
cars only however exciting and tying to the original story does not pay the bills.
How are you going to raise the money required to really grow this? Does it involve an IPO? You're going to have to raise money really fast because
it's an exciting time in the market currently to be IPO?
VRIES: I think if I go back to my EV world 15 years ago, there was no supply chain. There was no contract manufacturer so everything had to be
vertically integrated and a cash burn was just insane to get anything on the road.
[09:50:00]
VRIES: I think if you fast forward to today, if you want to buy world class electric motors, you have 12 people or 12 companies that can offer you one.
So the barriers to entry from a technology perspective and a supply chain perspective are much lower today than they were 10 to 15 years ago.
So a contract manufacturing supply chain solutions is making it easier, not easy but easier to get to market with a new product. As for raising money,
once you're through what I call seed round, it's very logical to try to go to an IPO.
You need to be able to tap into the - into the markets because there's just no way you can do this through venture capital or through private equity.
And then you'll see something from us there. I think we've passed the spec market.
We're back into normal S1 filings and those are perfectly OK. It is all about making sure that your business case can pay for the bills that you
plan to spend because as you said before, it is a very cash burn intensive industry.
CHATTERLEY: Great. So we have a date then when you launch officially and then when you IPO as well. We'll reconvene sir. Great to talk to you, thank
you! CEO of DeLorean Motor Company, there great to chat. Thank you. We're back after this.
(COMEMRCIAL BREAK)
CHATTERLEY: Now never mind the DeLorean time machine, the David Webb Telescope can take us back 13 billion years plus, just take a look at this.
The deepest and sharpest infrared image of the universe ever captured, President Biden releasing this stunning first image from NASA's Webb
Telescope.
It's a snapshot of light from thousands of galaxies as ancient, as I mentioned, as 13 billion years old. CNN's Rachel Crane joins me now Rachel,
I was watching you earlier on TV and you're literally bouncing up and down. Tell us what we're seeing. It's magnificent?
RACHEL CRANE, CNN INNOVATION AND SPACE CORRESPONDENT: Julia, I can't help it. I mean, this is mind blowing stuff here. I want to point out the James
Webb Telescope. It's a $10 billion telescope. It's taken us more than two decades to get here.
It's a million miles away from our Earth so you can't send the repairman to the James Webb Telescope if anything is to go wrong. But as you can see,
everything has gone right. We are seeing the deepest and sharpest infrared image of our universe.
And as you pointed out some of the light specs that you see in this image, you can see they kind of look stretched. That's the result of gravitational
lensing. So in the foreground, you have these galaxy clusters that are 4.6 billion light years away, but because of their mass, they warp the light
behind them.
So you're actually able to see even deeper back into time. So this telescope is really a time machine, Julia. It's bringing as back to you
know the moments when the universe was just starting to turn its lights on.
[09:55:00]
CRANE: And this is just the beginning here. NASA is set to release about four more photos in about four - a little over 30 minutes. Sorry, I'm just
so excited waiting for these pictures. But you know we're going to see nebula which are essentially stellar nurseries seeing the moments when
stars were born. We're going to get to actually see an Exoplanet, which is a planet that orbits another star and possibly see its atmosphere.
Now, we don't think that that Exoplanet specifically would be able to harbor life, but James Webb might be able to identify in the near future
Exoplanets that could potentially have life.
So really, Julia I mean, this is the stuff of science fiction, today is really one - really historic day in space history so space enthusiast
around the world like me and especially the scientists are just chomping at the bit to get these images and really for the 20 years of science, that
James Webb has ahead, Julia.
CHATTERLEY: Yes, just a little bit of enthusiasm there, Rachel, but we love it. And yes, thank you for the correction on the name as well in my
enthusiasm I got that wrong. Rachel Crane thank you. That's it for the show. If you've missed any part interviews today, there'll be on my Twitter
and Instagram pages you can search for at @jchatterleycnn. In the meantime, "Connect the World" with Becky Anderson is up next, and I'll see you
tomorrow.
(COMMERCIAL BREAK)
[10:00:00]
END
