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First Move with Julia Chatterley
Ukraine: Russia will Sign a Mirror Agreement with Turkey UN; January 6th Hearing Details Trump's Refusal to Stop Riot; Mattel Shrugs off Rising Costs as Earnings Beat Estimates; UK Spy Chief: Russia "About to run out of Steam" in Ukraine; Airlander Vehicles could cut Emissions by 90 percent; Ukraine Grain Deal to be Signed. Aired 9-10a ET
Aired July 22, 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 to "First Move", great to have you with us this Friday and what a week it's been on the
program Mario Draghi of Italy announcing his government farewell.
The ECB hikes rates inflation it must propelled Tesla surges after profits and revenues Excel and on that Bitcoin sale. Well, that's not to dwell on
what about some Musk action figure courtesy of Mattel will find out when the Mattel CEO joins the show to discuss earnings in around 15 minutes
time.
And in the meantime, squarely in the spotlight on Wall Street today with tech sector fall after an investor slap for Snap the parent company of
Snapchat reporting decelerating sales growth amid slowing ad sales and providing little guidance on the outlook, which was a concern the popular
content app joining the growing list of firms like Microsoft, Google and Goldman Sachs that are also slowing hiring
Snap shares taking a pounding pre market currently down more than 30 percent other tech firms that rely on ad dollars for growth like Meta and
alphabet pulling back in sympathy too. Twitter out with a disappointing set of numbers as well a full debrief on all of that coming right up.
In the meantime, Europe in the green a positive end to a pretty challenging week where the ECB began the fight to tame prices, just as the Italian
government collapsed and market friendly Mario Draghi moves on.
And new numbers today showing U.S. own business activity contracting this month with weakness in both the manufacturing and the services sectors, as
the war in Ukraine continues to weigh. And that's where we begin today within the hour. Ukraine is expected to sign a deal to reopen three key
ports and resume grain exports. The agreement which was mediated by Turkey and the United Nations is due to be signed in Istanbul.
Jomana Karadsheh is in the Capitol forest. Jomana, this would be a huge achievement for food security around the world. But as always, it's
complicated in terms of the detail help us understand how this should work, at least in theory, in terms of this agreement signing?
JOMANA KARADSHEH, CNN CORRESPONDENT: Well, look, Julia, I think we're going to find out a bit more in about 30 minutes or so once this agreement is
signed and once they announced the details of this agreement, we've been hearing bits and pieces coming from Ukrainian officials and also Turkish
officials.
Now what we understand is there are going to be two agreements that are going to be signed Ukrainian officials making clear they're not going to be
signing any agreements with the Russians, what is going to happen is you're going to have these mirror agreements, one that is going to be signed
between Ukraine, Turkey and the United Nations and the other one with Russia and these two other parties.
Now what we understand from Ukrainian officials and Turkish officials, and we're trying to put this together until the announcement is made is what
they're going to do is create this safe corridor for the export of Ukrainian grain out of Ukrainian ports.
We've also heard that this will also facilitate the export of Russian of food products as well as fertilizer, this is going to include three
Ukrainian ports, including Odessa, of course, and the question is, Julia, how is this going to be implemented? Who is going to be enforcing this?
And these are all the details we are waiting to hear. But what we understand is they're going to designate safe channels for this corridor.
And that there's going to be a joint inspections that will be taking place, again, waiting for more details on that how that's going to work.
And there's going to be a coordination center that is going to be here in Istanbul with representatives of the United Nations, Ukraine, Russia, and
Turkey, of course. Now Ukrainian officials, Julia, were really quick to point out that they're not going to be allowing any Russian vessels or any
Russian escorts anywhere near their ports, saying that any attempts by Russia any sort of provocations, as they called it, there will be an
immediate military response according to senior Ukrainian officials really pointing out there that kind of lack of trust, as you would expect of
Russian intentions here.
So we're going to have to wait and see the biggest issue, of course, is going to be implementation enforcement and making sure that Russia commits
to what it signs today. And this is, of course, something that Ukrainian officials clearly worried about, Julia. So we'll be finding out more in
about 30 minutes or so.
But we really cannot overstate the significance of this moment of this agreement that will pay if the way for the creation of this safe corridor
for Ukrainian grain exports, it will be good news for millions of people around the world.
[09:05:00]
KARADSHEH: And hopefully averting a catastrophic situation that U.N. and other officials have been warning about when it comes to the world food
crisis.
CHATTERLEY: Yes, the World Food Programme chief said to us, this is pushing millions of people towards famine. It's a declaration of war in terms of
the Russian war in Ukraine on food security around the world.
And you raise some great points. So you can see from the Ukrainian side, they don't want to do anything that makes strategic ports like Odessa
increasingly vulnerable to Russia. And on the Russian side, they've said, look, they didn't want this to be a route upon which weaponry is brought
into Ukraine.
We can separate that aside, I think part of the challenge, and you've pointed to it your manner is the physical activity of exporting this, the
security required for privately owned freighters for the insurance for those freighters and the sea crews that are involved here.
Everybody wants to ensure that both sides will adhere to this, that mines will be respected and avoided that their complications even beyond this
agreement are vast, I think.
KARADSHEH: Very much so and this is I think where you're going to have gone towards for these agreements where you're going to have other parties that
will be involved in this, whether it is Turkey, the United Nations, others, perhaps that will help facilitate this and will help ensure the
implementation of this sort of agreement.
As you mentioned there, obviously the Russians want to guarantee that their own exports will be facilitated. The Ukrainians want to make sure that they
are not opening themselves up to any sort of situation where Russia is going to exploit Ukraine opening up its ports and then there, there are
southern coastal cities, including Odessa would come under attack, and this has really been a concern.
So we'll have to wait and see the devil is in the detail, as it always is in cases like this. I think you know, Julia being here in Turkey, I would
tell you that this is being viewed as a huge diplomatic victory for President Erdogan and for the Turkish government who have been under a lot
of pressure for really trying to maintain what they've described as this neutral position that they have argued throughout that they are not going
to join Western sanctions against Russia, because they wanted to keep the channels open between both sides.
Because this is a country that has such good relations, economic and defense relations between both with both Russia and Ukraine, and they've
insisted that they need to keep the channels open with Russia to try and facilitate any sort of agreements in the future. They have been hoping to
reach some sort of a ceasefire agreement.
They were hoping to try and bring Presidents Putin and Zelenskyy together for some sort of a summit here in Turkey over the past few months. And that
did not work out. But if they are able to help facilitate this right now, this is going to be a huge victory. And we certainly will be hearing
President Erdogan saying that in the coming hours soon.
CHATTERLEY: Momentous, look out for it. Jomana, great to have you with us, thank you.
To Wall Street now on a rough start to the trading day on tap for some of the most popular consumer brands in tech Investors Snapping to attention
after alarmingly weak results from Snap. Twitter Investors meanwhile, in a tizzy too after big revenue miss Twitter's response, and leave it on Musk.
Rahel Solomon joins us now, kind of I'll catch that slightly Rahel, but it was a pivotal moment for the company. They obviously can't do an earnings
call because of the impending potential let's call it that sell to Elon Musk. But they also stuck to the line on the proportion of bots and said,
look, it's still less than 5 percent something of course, that's crucial to this potential sale or non-sale because Elon Musk says I don't agree.
RAHEL SOLOMON, CNN CORRESPONDENT: Of course, right. So Twitter is blaming this on Elon Musk, Elon Musk is blaming him pulling out on the bots and
around it goes but look, Julia, this is the second social media company back to back that has really disappointed Wall Street expectations when it
comes to Twitter revenue came in at $1.18 billion for the most recent quarter. That was a decline of about 1 percent from the prior year earnings
were a significant mess.
And yes, they blamed it in part on the uncertainty and drama surrounding the Elon Musk deal, but they also blamed it on macro headwinds, which
certainly is valid but has become sort of a buzzword these days macro headwinds impacting its advertising business.
We should say that shares are down about 2 percent so sort of a muted response pre market and we'll see how they perform throughout the day. Year
to date, it has been quite a bumpy ride you can see. It was closer to about 68 bucks this time last year but it has been sort of on a decline since
then. And then look at that pop.
Well Julia, we know what happened then that's when sort of Elon Musk came into the picture once he pulled out well; it started the free fall again.
But Snap shares also reporting yesterday after the bell also missing expectations revenue growth actually came in about 13 percent compared to
last year the quarter last year, but also blamed larger macro headwinds.
[09:10:00]
SOLOMON: And it is a real concern for these companies that are reliant on advertising. But is that an indication Snap at least? Is it an indication
of what is happening in the broader ecosystem? Dan Ives of Wedbush says not so fast. Take a listen.
So he says that we view Snap as a paper airplane in a windstorm and not a phenomenal barometer for the pace of the digital ad slowdown. I should say,
however, Julia, another sort of similarity between Snap and Twitter, they're both pulling back guidance, Twitter, citing the impending
litigation. But in the case of SNAP saying that, look, the macro sort of environment is so difficult that it is really difficult to predict what the
next quarter will look like.
But that's a major sort of red flag, Julia about what's to come we remember that, at the beginning of the pandemic. A lot of companies also pulled
their guidance because it was the pandemic and who was to say what that would look like. And so there is a lot of uncertainty in the market in
terms of what the next few months and perhaps even longer looks like.
CHATTERLEY: Yes, ad spending one of the things that gets cut in an economic slowdown, but I have to say when I saw the Twitter results, I was relieved
because the ad spending slowdown viewpoint from Snap made you think actually the situation perhaps is far worse for some of the other big
players and Twitter sort of suggested, OK, it's softening but it's nowhere near as bad as what Snaps going through. Yes, interesting times to come
yes, we have --.
SOLOMON: Absolutely, and I think it'd be neutral also be well, and I think next week will also be really interesting, right, because we'll hear from
Mehta, we'll hear from Microsoft and so we'll get a lot more clarity about well, how difficult is the ad spend environment right now?
CHATTERLEY: Bingo, and also anything else been told off Rahel.
SOLOMON: Thank you.
CHATTERLEY: Happy Friday. OK, more heat wave held in China the country now bracing for a further 10 days of rising temperatures across the country.
Selina Wang joins us from Beijing. Wow, no end in sight Selina?
SELINA WANG, CNN CORRESPONDENT: No, it's already sweltering here. But believe it or not, it is about to get worse with 19 cities issuing red
alerts that is the highest heat warning meaning temperatures are expected to surpass 104 degrees Fahrenheit, and you've also got more than 200 cities
issuing orange alerts. This is the next most severe warning. But weather authority says that the hottest day of the year is going to be Saturday,
which according to the traditional lunar calendar is called "The Day of great heat".
Now the past few weeks have been absolutely scorching temperatures have been persistently high since June according to state media by mid-July.
This heat wave covered half the country impacting more than 60 percent of the population. Last week, you had dozens of cities logging record high
some reaching more than 110 degrees.
Now all of this is part of the global trend of more extreme weather driven by climate change. It is not just the heat hitting China but also flooding.
Flooding in recent months have displaced millions of people and destroyed vast fields of crops.
All of that puts more pressure on an economy we've been constantly discussing about that is already battered by the COVID lockdowns. And that
crop damage threatens to push up inflation you're already seeing pork prices in China increased significantly because of the rising cost of feed.
Now this heat wave has also pushed up electricity demand to extreme levels as people crank up the air conditioning village on province for instance.
This is a major export manufacturing hub. It urged 65 million residents there to save power and has rationed power supply for some of its
businesses, Julia.
CHATTERLEY: Yes, very quickly, as you pointed out, China of course still battling with the zero COVID policy. How's the heatwave impacting that?
WANG: Well, Julia the mass testing the Snap lockdowns, they are not stopping at least 30 cities are now in full or partial lockdown any
resident across the country young, old and sick. They're required to wait in these long lines for regular COVID tests. Even in the scorching weather.
I mean, this is the kind of weather that's suffocating in a T-shirt and shorts.
Now imagine wearing a full head to toe hazmat suit outside all day. That is what COVID testers are going through. There have been growing reports of
COVID workers collapsing on the job from heatstroke. Videos of giant pools of sweat in their suits have gone viral on social media and some have
gotten created by hugging giant ice cubes and taping water bottles and ice snack packs to their backs. Anything they can do to relieve themselves from
this heat Julia.
CHATTERLEY: Wow, Selina Wang, thank you for that. OK, let me bring you up to speed with some of the other stories that are making headlines around
the world. While a violent mob attacks the U.S. Capitol for three hours former President Donald Trump failed to act while watching it play out on
TV. That was one of the revelations Thursday night during lawmaker's eighth hearings on the January 6th rights.
[09:15:00]
CHATTERLEY: They said that for 187 minutes Former President Trump refused to condemn the rioters or ask them to go home he did not call law
enforcement or national security and one of the most damning pieces of evidence even after the violence, Trump refused to say the election was
over. As you hear in these outtakes from a speech Trump videotaped on Jan 7th.
(BEGIN VIDEO CLIP)
DONALD TRUMP, 45TH U.S. PRESIDENT: And to those who broke the law, you will pay you do not represent our movement. You do not represent our country.
And if you broke the law, can't say that. I'm not going to you I already said you will pay. But this election is now all Congress has certified the
results. I don't want to say the elections--
(END VIDEO CLIP)
CHATTERLEY: U.S. President Joe Biden isolating at the White House after testing positive for Coronavirus on Thursday Dr. say there's 79 year old
leader who has been double vaccinated and double boosted is doing well and has mild symptoms. He's taking the COVID antiviral drug pack fluid.
Sri Lankan authorities have raided large protests camp outside the Presidential office in Colombo. At least 14 anti-government demonstrators
were injured as soldiers and Police officers drove them out. It comes a day after a new President came into power and called on security forces to
maintain order.
OK, straight ahead on "First Move", Mattel earnings race ahead and the sky's not the limit. Toymakers now doing deals with the rocket firm SpaceX
and we're live in Eastern borders Ukraine prepared for the tiny key grain export deal that's expected in around 15 minutes from now stay with CNN.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move" and it seems parents are willing to pay higher prices for toys just look at the latest estimate beating
earnings for Mattel, the makers of Barbie and Hot Wheels.
Even amid rising costs and supply chain challenges the number one toy company in the United States is confident sales will hold up that echoes
similar comments from Rivals Hasbro. Retail sales jumped by 20 percent in the second quarter while later in the year we can look forward to a tight
with the forthcoming Barbie movie starring Margot Robbie and a deal to make SpaceX toys among many others Ynon Kreiz, the CEO of Mattel and he joins us
now.
Great to have you with us I think the message seems to be and congrats on the quarter the economy around the world baby slowing but Mattel isn't on
the growth phase continues.
YNON KREIZ, CEO, MATTEL: Yes, Julia these were very strong results from a table with our eighth consecutive quarter of top line growth our profits
grow significantly with adjusted operating income up 82 percent despite high inflation.
[09:20:00]
KREIZ: And after a record first half, we expect continued growth in the second half, and are planning for an increase in consumer demand in the
holiday season. So very happy with where we are, and expect to win market share going forward.
CHATTERLEY: It's quite funny when you list your potential caveats, and headwinds, foreign exchange pricing pressures, the economic outlook,
spending the labor market, I would have argued that maintaining those forecasts is pretty good and ambitious in this kind of environment.
But some Investors weren't happy and were saying hang on a second, the growth that you're seeing is so strong in the first half of the year, why
aren't you even raising your forecasts? You can't please everyone, but just give us a sense of what you make of some of those comments, because that's
interesting to me, in light of the broader macro challenges. There are many uncertainties here.
KREIZ: That's right, and it's not that we're insulated from this channel. But we have been able to work through two years of supply chain issues,
rising inflation, and still deliver these numbers. And we just reiterated our full year guidance for strong top line growth of 8 to 10 percent in
constant currency, and increased profitability in spite of significant inflation and negative currency impact.
So we continue to focus on executing our strategy, we expect a second half retail sales to be above the first half level, we also expect the industry
to grow for the full year, and for Mattel to gain share.
CHATTERLEY: I mean that's a phenomenal outlook. I think in light of what we're seeing how much ability does that give you to raise prices on for the
second half of the year in particular?
KREIZ: Well pricing is one of the options we consider in times of inflation; this is not unique to Mattel, and not unique to the toy
industry. But when we raise prices, we always keep the consumer in mind we're being very thoughtful and strategic, and are committed to maintaining
the highest quality and best value for the consumer.
CHATTERLEY: I heard on the call. And I think it was your CFO that said it that you are seeing a degree of substitution away from some of the higher
price things like the Barbie Dream House, for an example. Can you just flesh that out a little bit for us? What exactly are you seeing? And do you
expect to perhaps see some more of that that sort of baked into the cake of the forecasts that you've provided?
KREIZ: Yes, we're seeing some softness in the higher price items, which not a surprise is given the inflationary pressure. But this is where having a
broad portfolio with multiple products and multiple categories plays to our advantage in being able to offer a variety of product at a variety of
prices. And work through this slight changes in consumer behavior. But over time, we do expect the normal consumption patterns and increase in sales
during the holiday season to return to normal levels.
CHATTERLEY: And one of the things that we've talked about in the past is your ruthless managing of some of the supply chain challenges. And what
helped you outperform, particularly in the first half of this year is some of that easing, because I can see that you're building inventory.
I just wonder whether actually for you that the biggest challenge is getting that wrong and not having enough supply to meet the demand that
you're talking about expecting for the holiday period because we've had challenges with that now for the past couple of years. That's what you
don't get wrong this year.
KREIZ: That's right; the supply chain is playing a key role in our success. All of our owned and operated factories are fully operational; we are
seeing that port congestion is improving. Although not back to pre-pandemic levels, our product is flowing. And we're working very closely with our
retail partners to ensure the product is available and on shelves to meet the consumer demand towards the second half in the holiday season.
CHATTERLEY: When the beauty of what you've done with the company now is it's not just about making toys. It's about utilizing some of the older
brands and the intellectual property and working out how best they fit in sort of 21st century toys or entertainment sphere. Barbie has been very
busy.
I know you've just wrapped this week I believe on the filming of the Barbie movie but Barbie's also went into space in recent months as well, which I
know was a was a collaboration with the International Space Station to promote women and girls in STEM and engineering. You've also inked a deal I
believe with SpaceX too. What can you tell me about that?
KREIZ: Yes, the partnership with SpaceX is about creating space exploration toys and collectibles under the matchbox brand.
[09:25:00]
KREIZ: The toys will come out next year; the collector's line will be available on Mattel creation. This is really about how we scale our
portfolio. And it speaks to our innovation and creativity and thinking out of the box, and also about bringing new partners into the toy aisle.
So it is an exciting partnership, you will continue to see more of this innovation and creative ideas to expand our business. And just to touch on
Barbie. Yes, the movie did wrap formally yesterday, we finished principal photography, and it's shaping up to be a real iconic cultural event, it
will be a great one to look forward to.
CHATTERLEY: We are huge fans of Margot Robbie on this show. So we look forward to it for sure. I will never be forgiven not asking if there's
going to be an Elon Musk toy. You know, Can you can you give us a hint?
KREIZ: Well, we don't comment on specific plans. But I can tell you we always look to delight and entertain. And continue to inspire consumers all
over the world. And we do that well across our categories and look forward to doing having more fun with our product.
CHATTERLEY: Yes, that wasn't a note I note familiar, Ynon great to have you with us. Thank you so much and congrats again.
KREIZ: Thank you Julia.
CHATTERLEY: The CEO of Mattel, there. OK, coming up unlocking Ukraine's grain can deal will be reached on when it works next.
(COMMERCIAL BREAK)
[09:30:00]
CHATTERLEY: Smiles and tears there at the New York Stock Exchange, definitely a Friday feeling U.S. stocks are up and running on the final
trading day of the week and a profitable week so far for Investors.
That said a tale of two markets today the blue chips holding up fairly well trouble though in tech land due to sickly snap results. Certainly no snap
back for snap down some 30percent in early trade and weighing on other big ad supported tech names.
As we've discussed, like Meta and Alphabet snap warning of a difficult environment for ad spending is stressed consumers deal with rising
inflation as you can see that picture now down some 32 percent.
But no sign of a consumer slowdown at Amex American Express shares are rallying 6 percent after a big earnings beat. The firm also raising its
outlook for the year thanks to a 30 percent boost in card member spending.
Fears of a softer economy have been weighing on markets for months. But Amex's CEO says today he sees no recession in sight. We'll get a better
look at how the U.S. economy is doing next week when we get the first read of second quarter growth numbers.
The Fed also set for an oversized rate hike a three quarters of a percentage point hike is expected. And we'll get more Big Tech results on
the likes of Apple, Microsoft and Alphabet too.
OK, let's get to Istanbul live now where officials from Russia and Ukraine are expected to sign a deal to resume exports of Ukrainian grain through
the Black Sea. The agreement was brokered by Turkey and the United Nations you're looking at live pictures of that room there.
So people are starting to gather, we will let take you there as soon as that happens. But for now, Nic Robertson joins us now from Kyiv. Nic, it's
a complicated agreement already it's not just one it seems to be two the Ukrainians will sign a deal with the United Nations and with Turkey
overseeing it, and Russia will do a mirror agreement. It already feels tenuous.
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: It does. And rightly so this is a massive diplomatic lift engineered with the help of Turkey but by
the United Nations. Because the countries, Russia and Ukraine are still at war, what the Russians are agreeing to do is sign up to an agreement with
the UN.
And what the Ukrainians are agreeing to do is to sign up to an agreement with the UN and these agreements, as you say mirrors of each other that
will allow for controlled and agreed shipping channels.
Now they're not going to be de mined, there were a lot of sea mines in the shipping channels. And it was agreed that that would take too long, three
or four months. And the need to get this wheat and other grains to the world markets are so pressing, that the agreement is that Ukrainian pilots
would go aboard vessels to guide them and navigate them through the areas of those sea mines.
So that's one area where there's a risk, and there's a joint operation center in Istanbul that will monitor that the ships stay in their lanes,
that's another risk. There's no hard ceasefire around the port areas. That's another risk because fighting shelling could break out.
We know in the past couple of days, Russia has been firing huge missiles at Odessa, the port where some of this grain will set off from so the risks
are there. And then of course, there's a possibility of transgressions on the Ukrainians mind.
There will be the idea that Russian vessels coming in to go pick up Russian, wheat and Russian fertilizers that they're going to, this
disagreement move out that potentially the Ukrainians fear that, you know, Russians could put you know, weapons or other equipment that's banned under
sanctions and use that as a means to import it into Russia.
So there's a real trust issue here. And that, of course, is why the two aren't agreeing with each other, they're agreeing with a broker in the
middle. And the real success is going to be if this can work, then international shipping, companies will be able to get the insurance they
need to bring the cargo vessels in to get the wheat.
But of course, if any of it breaks down, that insurance is going to be harder to get so you don't get the vessels in and the whole thing falls
apart.
CHATTERLEY: Absolutely. It's whether the insurers feel that there's enough security guarantees in place in order to be able to provide some assurances
to the freighters and to the sea crews trying to go in there.
Huge challenges, Nic, the backdrop of this, two notable comments from the UK intelligence forces today saying that Russia is about to "Run out of
steam" that they'll find it difficult to supply manpower and materials over the next few weeks and it could be an opportunity for the Ukrainians to
strike back. What do you make of these comments?
ROBERTSON: What we're hearing from the Ukrainians when President Zelenskyy last night saying that he thinks that Ukrainians can take back territory
has been having conversations or his military chiefs have been having conversations with U.S. partners about getting the right weapons into the
right soldiers hands.
[09:35:00]
ROBERTSON: He says it will need a sort of an up tempo and energy pickup. But the assessment of how the Ukrainians are doing with these new weapons
systems that they've got the high mass weapon system that the more accurate and longer range weapons is that they've been able to pick off according to
U.S. assessments, so far, over 100 strategically important targets, and that includes ammunition stores.
And that is what is stalling at the moment, the Russian advance or part of it, one shouldn't overplay that. If this is part of what the MI6 Chief
means that, you know, Russia has gone as full steam as it can.
And now it's meeting this new military impediment in its path. And it's now going to run out of steam. Does that mean that Ukrainians can take back
some territory, potentially?
But there's a lot more that has to come into play, there's a massive frontlines here Ukraine needs many more of these high mar systems to really
be effective. And it's going to need to be able to, you know, mobilize and push troops forward in a way that it is found difficult to do so far.
With a few exceptions, of course, when the Russians pulled out at the north of the country, but they're under a lot of pressure under frontlines and a
lot of villages and towns being shelled as Russia still tries to make those land gains.
CHATTERLEY: Critical context, Nic, thank you. Nic Robertson is in Kyiv for us there. We're back after this, stay with CNN.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move". The travel pandemonium continues to plague fliers this summer one of the world's most disrupted airports
London's Heathrow. In this report, our intrepid reporter Anna Stewart braved a flight to one of its most popular destinations. Take a look at how
she fared.
(BEGIN VIDEOTAPE)
ANNA STEWART, CNN REPORTER (voice over): Long lines, delays and cancellations traveling Europe has never felt so chaotic.
STEWART (on camera): One of the best ways to be show you issues is taking for a trip, we're going to go through one of the worst disruptive airports
in the world and to one of the busiest holiday destinations, we're going to Ibiza, Spain.
And we were quickly confronted with challenge number one, we're too early and we're not the only ones. What's the problem?
UNIDENTIFIED FEMALE: We can't check in.
STEWART (voice over): Once bag check in opens, this is the queue.
STEWART (on camera): Now my advice would normally be - don't check in a bag the summit unless you really have to.
[09:40:00]
STEWART (on camera): But out of curiosity, we're going to check one in anyway. And actually, I'm going to put a GPS tracker in it because you see
where it gets to.
STEWART (voice over): Tracking the bag is a good idea, particularly through Heathrow. A shortage and baggage handlers has resulted in scenes like this,
mountains of lost luggage. Bye, bye suitcase. Hope to see you in Ibiza. If the queue for check in looks bad, look at this.
STEWART (on camera): I have never seen a queue like this the security, I'm honestly worried that I'm going to miss my flight, despite the fact that I
arrived three hours early. I wasn't allowed to check in a bag until two hours before the flight. But this queue is going all the way from security.
It's sneaking all the way around and then it's going all the way back down the airport's entranceway to the far corner.
And fast track through is getting too close to departure, so no time for a shop. A rush to the gate, only to find it's delayed. But a couple of gates
down there's a flight delayed by a lot more. 14 hours. These girls and many others slept here at the airport.
UNIDENTIFIED FEMALE: My children are sleeping on the floor, he's feel cold. My children, yes, is really bad? Yes, I'm tired as well.
STEWART (voice over): This couple's flight was started even earlier.
UNIDENTIFIED MALE: My flight started in Dublin two days ago and my first flight got canceled. And then I started my flight yesterday to London, the
second one and now this one got canceled also and now I'm here and I hope today I will leave the country.
STEWART (on camera): You ever traveling again.
UNIDENTIFIED MALE: Not to the UK.
STEWART (on camera): I made it onto the plane. It was an hour delayed but that seems small fry compared to others. And amazingly even my bag made it,
of course it could all go wrong when I go back home. Maybe I should just stay here Anna Stewart, CNN, Ibiza, Spain.
(END VIDEOTAPE)
CHATTERLEY: Lucky, Anna Stewart. But of course no cancellations and getting your luggage on time are the only efficiency gains required in travel,
better fuel efficiency is also key to the future of travel and that's where our next guest comes in.
UK based aircraft company Hybrid Air Vehicles first unveiled its hybrid helium airship, the Airlander 10 back in 2016, a throwback to blimps of the
past you may call it. It uses helium and clever aerodynamics to lift it off the ground.
And the company says in the future that aircraft could cut emissions by up to 90 percent. And now one of Europe's largest regional airlines and
Nostrum has ordered 10 Airlanders scheduled to be delivered in 2026.
Joining us now is Tom Grundy, CEO of Hybrid Air Vehicles, Tom, fantastic to have you on the show. I mean, the vision I think is to be the future of
zero carbon aviation. But that's going to involve electric motors and hydrogen fuel surely. But you offer the prospect of far more efficient
flights today, explain how the technology works
TOM GRUNDY, CEO, HYBRID AIR VEHICLES: Absolutely, we do Julia. Airlander offers a really different way of traveling. It offers that way of traveling
very, very low emissions, and opposite quickly. So we're thinking a lot about what might happen in the next decade about decarbonizing aviation,
but the aircraft you can see in the picture behind me that was flying in 2017.
And even that standard of our aero plane produced 75 percent less emissions than any other aircraft doing the same job. And by the time Airlander goes
into service with Nostrum with those hybrid electric engines, it'll be a 90 percent co2 reduction compared to any other way of taking that flight.
CHATTERLEY: You know it's funny; we start to mention the word helium. You mentioned the word perhaps hydrogen fuel cells in the future to mix with
the images.
And if anyone knows the history, they start to get a little bit nervous. Is that a problem? Is it about education? Should we be concerned? Give me the
safety specs? Because I think we have to get over that hurdle first and foremost.
GRUNDY: Yes, they shouldn't be concerned. I mean, if we think back to those things back then we're talking about the 1930s.
CHATTERLEY: Yes.
GRUNDY: I think if you think about any other way of traveling back then, there were similar levels of risk that people had to get over. And what we
have now is 21st century technology, 21st century safety regulations.
And Airlander is regulated and certified in exactly the same way as any other transport aircraft around the world today, so I'll certainly be
getting on board with my family and my friends with the confidence that we've gone through all of the things that our modern process of design
build and certification can give us.
[09:45:00]
CHATTERLEY: Yes, where do I sign? It's very exciting. Give us a status, then speed, payload altitude, and how do you expect these planes ultimately
to be used? GRUNDY: OK, so Airlander operates really differently to anything else that we see in the sky today. So it's a really different
journey.
We just heard in the last segment, that although aero planes are really, really fast, sometimes that process of getting onto the flight in the first
place, getting off at the other end, getting your baggage together, can actually put a lot more journey time.
And then we think, so with Airlander, we're creating direct connections. We don't have to be constrained to the airport; we can go more directly point
to point on this aero plane.
The aircraft just needs flat space to take off and land on. So that could be grass, it could be some no big airport infrastructure. It can even be
water, which has been really interesting for our airline customers.
And of course, when you get on board, the boarding process is much more like getting on a ferry, or getting in a railway carriage compared to what
we go through the airport scan on trust airplanes.
And once we're onboard, the environment that is totally different, so every seat directly accessible to, there is also no squeezing into the middle
seat there. It's quiet, it's spacious, we've got huge windows to look out of flies a little bit lower than other airplanes.
And although people think you know, it flows relatively slowly, it's about 130 kilometers an hour, direct point to point. So direct connections easy
to get on or get off.
And over short distances, you've got journeys that are every bit as quick as the regional jet, but with only one tenths of the carbon dioxide
emissions.
CHATTERLEY: Yes. I mean, it looks more like a sort of upper class lounge than the aircraft traditionally, to ask, though, because clearly, you can
see that there's not going to be as many passengers on that, certainly, compared to a flight, what's the cost difference?
Based on the cost of this do you think of flying in one of these, if you wanted to do a traditional journey?
GRUNDY: That's been really important for us. So actually, there are 100 seats on board Airlander for these flights. So that's the same size as a
regional jet that would transport you from airport to airport. But the difference is a lot more space involved here.
So the space is there for hundreds, hundred passengers to sit comfortably. And it's been really important, as you can imagine, in our work with
companies like our Nostrum to demonstrate the cost effectiveness of those journeys, as well.
So although you've got that space as you would in a train carriage, or as you would on perhaps on a ferry to move around and enjoy the trip, it
doesn't have to come at a premium. And that's been really important.
And really one of the reasons why the purchase of 10 of these over the Nostrum has been such a landmark deal for us.
CHATTERLEY: And just to be clear, what is the cost of one of these?
GRUNDY: Well, the overall cost of operating the cost of buying them, and the cost of operating them means that if you're passengers, it's going to
be equivalent to flying today.
CHATTERLEY: Wow. I shouldn't really make a comment, but I know I'd rather do. So you've had grant funding from the EU? Yes. Let's take anything else
and the UK also from the U.S. Department of Defense, I was reading on this as well. So everybody's sort of keeping tabs on this technology. Are they
eyeing the Airlander 50, because that's when we really start to scale this up and talk about perhaps freight movement as well and more passengers?
GRUNDY: Yes, yes, that's a great point. So we think of Airlanders having three big markets. Passengers which we've talked about, passenger
transport, surveillance and looking after things on the ground, so maybe long endurance search and rescue protecting people protecting things on the
ground and then freight.
Freight is a really big market and decarbonizing freight transport is a big deal. Overcoming some of the bottlenecks that we have in our freight
transport systems is really important for the logistics world, as we're seeing all around us at the moment.
And also providing services into underserved parts of the world places where aircraft find it really hard to reach. So, Airlander 50 is designed
for that, it's a bigger aero plane.
We launched the requirements process, but Airlander 50 will be the next design of our books. We're working with Acorn - big infrastructure services
firm with high big interest in logistics - who are wind turbine blade manufacturers who've got the challenges of getting those wind turbine
blades into hard to reach parts of the world.
And also transport networks where there are not just passengers to move around but freight. And the really exciting thing with Airlander 50 is we
get to move in shipping containers by air.
So connecting the air transport system directly to that world of shipping containers that as we know go on trains and boats and trucks at the moment
but can't get on the airplane.
CHATTERLEY: I was about to say yes, could have done with this over the last few years.
GRUNDY: Absolutely.
Tom, keep working, we'll get you back and we'll continue the conversation, thank you so much.
GRUNDY: Thank you.
CHATTERLEY: Tom Grundy there, the CEO of Hybrid Air Vehicles, great to chat sir, thank you. Stay with CNN, more to come.
(COMMERCIAL BREAK)
[09:50:00]
CHATTERLEY: Welcome back to "First Move". As temperatures saw across the world attention is turning to heat related illnesses especially for those
working outdoors.
In Dubai one of the hottest places on earth and new technologies being tested that could help save lives. Clare Sebastian has all the details.
(BEGIN VIDEOTAPE)
CLARE SEBASTIAN, CNN CORRESPONDENT (voice over): It's another day's work at this Aluminium Smelter in Dubai shirts, Boots helmet; it's not your regular
office job. Here temperatures can reach up to 58 degrees Celsius, a challenging and potentially dangerous environment.
SALMAN ABDULLA, EXECUTIVE ICE PRESIDENT, HEALTH AND SAFETY EMIRATES GLOBAL ALUMINIUM: Gulf is one of the more warmer parts of the world. And in
addition to that the equipment and operation itself generates heat.
SEBASTIAN (voice over): A new technology is here to help prevent overheating. Emirates Global Aluminium says that 50 volunteers are trialing
a device that aims to detect symptoms before they even realize it.
ABDULLA: But it can measure and calculate if you're entering in any kind of a heat stress situation. So this is--
SEBASTIAN (voice over): Developed by American Company Kenzen, this tech can actually monitor critical health indicators like body temperature, heart
rate, and sweat output.
KYLE HUBREGTSE, CHIEF OPERATING OFFICER, KENZEN: The device is a wearable device it's worn on the upper arm. It is used to help predict and prevent
adverse health events on site. On the backside, you actually have your heart rate sensors skin temperature and looks at sweat as well.
They'll know through vibration first that their core temperature has raised to a level where they need to stop working. They can also see those values
on an app on their phone.
The dashboard you're seeing on the screen is a dashboard that is designed for safety measures to be able to monitor their team and to see if anybody
is at risk. You can see the team member's name, you can see if they're at risk or not that allows you to really understand who to triage who to help.
SEBASTIAN (voice over): What are the device functions by alerting its users of symptoms? Having the right equipment and knowledge is still key to
actually remediating the impact of heat.
ABDULLA: Technology on its own is never going to be enough. You have to have the infrastructure, and you have to have the facilities in which it
can operate successfully.
SEBASTIAN (voice over): In one of the hottest climates on Earth, learning how to deal with high temperatures goes far beyond heat of the moment. So
making sure the right technology is in place now could have an impact on workers safety in the years ahead. Clare Sebastian, CNN.
(END VIDEOTAPE)
[09:55:00]
CHATTERLEY: And we're still of course waiting on that major announcement from Istanbul. The United Nations and Turkey have brokered a deal to get
grain exports out of Ukraine.
We expect to see that at any moment that's through when you can see people gathering and talking there we will bring that to you the moment it
happens. And finally on "First Move" Game of Thrones fans get ready.
Years before the original show, it will feature plenty of drama, plenty of dynasties and of course dragons. It will start next month on HBO Max which
has a parent company with CNN.
That's it for the show. If you missed any of our interviews today, they will be on my Twitter and Instagram pages. You can search for
@jchatterleycnn. "Connect the World" with Becky Anderson is up next and I'll be back in a couple of hours, time with "One World". Stay with us.
(COMMERCIAL BREAK)
END
