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First Move with Julia Chatterley
Fed Officials see Rate Hikes Extending into 2023; Afghanistan One Year after the Taliban Takeover; Disney Raises Prices on Streaming Services; UK-Based Stock Trading App Lightyear Launches in Europe; "Mrs. Harris goes to Paris" Shines on Screen; U.S. FCC: 21M Americans Lack High- Speed Internet Access. Aired 9-10a ET
Aired August 11, 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" fantastic to have you with us this Thursday for a special animal spirits
edition of the program. The NASDAQ got a fresh bull market tear, as CPI eases consumers despair peak price predictions too soon today.
Fed rate hike hawks say we still must be where and as for the streaming tortoise and hare that Disney Plus mouse rolls, overtaking Netflix with
sparkle and flair. And on Wall Street far from the scary in fact, take a look at this.
U.S. stocks look set to build on the strong gains over the previous session fueled by that softer than expected print on U.S. consumer inflation. DOW
Futures higher too thanks to a bumper 8 percent plus pre market rally for Disney. We'll be discussing all the details in their results very shortly.
Half an hour after Wednesday's rally the NASDAQ back in bull market territory after retracing a more than 20 percent of its losses since March
encouraging new inflation data just released to context is key prices at the factory gate rising at an annual rate of 9.8 percent, year over year
that was however softer than the more than 11 percent rate hit.
In June producer prices actually falling a half a percent month over month too. Another positive sign the same factors helping ease consumer concerns
all at play here namely falling energy prices Brent and U.S. crude it down some 20 percent Since the month of June and average U.S. petrol prices now
below $4, a gallon tumbling 21 percent.
Over the past three months, other commodities also seeing a summer pullback to the United Nations sees its global food Commodity Index fell for the
fourth straight month in July, with cereal prices down more than 10 percent and the cost of vegetable oil down almost 20 percent.
Some of the improvement due to the resumption of Ukraine wheat exports over the past few weeks easing those broader fears. Christine Romans joins us
now on this. I said this yesterday, Christine, great to have you with us. And I'll say it again, it's not normal to be happy when an inflation rate
is so extremely high. But the news is it could have been higher.
CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: There's nothing normal, I said this yesterday to you I said when 8.5 percent is a good thing on
inflation. And just like now when 9.8 percent of the factory floor is a good thing, you know, the trend is your friend. So we want to see them
putting prints like this back to back. But when I look at the trends, I can see now a peak on the chart, you know, for factory inflation, you can see
it much better than you can for consumer price inflation.
But that factory and this is all driven by mostly the government pointed out or like 80 percent driven by fuel costs, you know, the fuel costs went
down substantially in the month and you'd like to see that continue gas price experts tell me another 10 to 30 cents maybe for gasoline prices in
the U.S. presuming there isn't some terrible hurricane season or some kind of unforeseen event?
Julia, have we had unforeseen events over the past three years? Yes, we have, so you can see why people are a little bit nervous. But the inflation
picture at least now, a couple of reports in a row showing us the inflation, the runaway inflation may have peaked. That's what the story is
that's how the traders are taking it today.
CHATTERLEY: Yes, investors are reacting to that. And I'm very nervous in light of everything you just said, no, it's always us. I completely agree
of looking at history in terms of the reaction for investors, because typically we see a flaw in stock markets, when investors see the signals
from the Federal Reserve that peak rates, we've hit peak interest rate hikes.
And that normally means that a bottom of a floor in the stock market here what we're seeing is peak and inflation and perhaps reacting accordingly.
The question is are we know this? The Fed still has a lot of work to do. And we're seeing this with the level of prices that we're seeing too early
to be predicting a bottom in stocks.
ROMANS: Well, I mean, look, I mean, that is that is the big risk. Also, let's be honest, stock market investors tend to overreact, don't they? And
there'll be another piece of information, maybe some, you know, shorter term economic data, that'll spook them next week, who knows for sure. But
what we do know right now that inflation has been the number one concern for so long, that when you see gas prices below $4 a gallon in the U.S.
And 18 states below $3.75 cents a gallon I know in much of the world. That sounds impossibly cheap because they pay so much more than consumers in the
U.S. do anyway. But that is a real relief for American consumers. And it seems as though what traders are telling us is after a couple of really 3
now really important economic reports last week's jobs report and these two inflation reads that they're starting to feel like you know there is a path
for a soft landing in the U.S. economy.
Maybe they see a more of a path for a soft landing than they did just a couple of weeks ago. But you're right, the Fed still has a lot of work left
to do, Julia and that September meeting is right around the corner.
[09:05:00]
CHATTERLEY: Yes, you're right, the probability, at least it seems of a softer landing feels higher after these last few reports.
ROMANS: Yes, but nothing is guaranteed you know.
CHATTERLEY: Yes, Christine Romans, thank you so much as always.
ROMANS: You are welcome.
CHATTERLEY: SoftBank, selling a chunk of its stake in Chinese E-commerce giant Alibaba worth a cool $44 billion. The cash will help Softbank ride
out what it calls a severe market environment. It comes off it reported record losses on its tech bets this year.
Paul La Monica joins me now I tell you what this has to be one of the best investments in financial market history. 20 years ago, Softbank invested
$20 million in this pre IPO and now they're selling just a chunk of it for billions of dollars. But they could have done better.
PAUL R. LA MONICA, CNN REPORTER: Yes, they obviously could have done better Julia, if they had sold a little earlier. Because as we know, Alibaba has
been facing a lot of pressure concerns, of course, about what's happening in the global economy with inflation, what that means for consumer
spending, of course, the pandemic before that.
And the biggest issue, perhaps is that there's been this intense crackdown from Beijing on Chinese tech companies and Jack Ma knows that, you know,
very well, unfortunately, and that has hurt Ali Baba and by extension, Softbank.
So Softbank, remember their vision fund, they lost what I believe about 50 billion on paper in the first half of this year. So it makes sense that
Softbank needs to shore up some cash because of these gigantic losses.
CHATTERLEY: And actually, let's be clear about this as well. Jefferies was saying back in February that they're going to need. Soft banks going to
have to sell this stake $40 to $45 billion, of cash is going to be needed this year to sustain its startup investment piece and a program to buy back
up to 7.5 billion of its share.
So at least that was some warning for investors too. But we should also talk about what we've seen from Softbank as well, and they have been
monetizing their stake in Alibaba for many years. They've been selling options in order to finance themselves from it, and they still own even
after the sale 14.6 percent. Do you think this the start of a progression of selling down the underlying here rather than just being able to monetize
the stake itself?
MONICA: Yes, that's a great question, Julia. I don't get the sense that Softbank wants to entirely exit. It's Alibaba stake, but it wouldn't shock
me if they did wind it down further, if the company needs more cash, which does seem likely unless this market rally that started in July and seems to
be continuing so far in August, really take steam and we do have more evidence that the big bear market for tech in particular might be finally
behind us.
But keep in mind, again, Softbank, not just trimming its stake in Alibaba, they've done this also with its stake in Uber, there are a lot of "Crown
Jewels" that you would have thought Softbank wouldn't have really wanted to cut its position in but they are being forced to do so because they simply
need the cash.
CHATTERLEY: Yes, from $21 million, 20 years ago to a chunk of it here at $34 billion, crystallized and plenty more, I'm assuming in the interim too,
and more left to go. Not a bad investment despite some challenges so over the period for Masayoshi Son. Paul, great to have you with us Paul R LA
Monica there!
OK, let's move on COVID conquered at least that's what North Korea is claiming as it declares a victory over the virus, and it's blaming Seoul
for the outbreak. Paula Hancocks has more.
(BEGIN VIDEOTAPE)
PAULA HANCOCKS, CNN CORRESPONDENT (voice over): North Korea says it's achieved in 91 days, what the rest of the world has not managed in 2.5
years eradicating COVID-19.
KIM JONG UN, NORTH KOREAN LEADER: The difficult war against the disease is now over. And today, we are finally declaring the victory.
HANCOCKS (voice over): Mask less and shaking hands Kim Jong-Un congratulates the officials he says get the virus. Kim says they still need
to keep a steel strong anti-epidemic barrier until the health crisis ends for the rest of the world.
His sister and high official Kim Yo Jong said Kim himself had a very high fever. A statement met with visible emotion from the audience a consistent
message that the leader has been suffering alongside his people.
Pyongyang officially reported 4.77 million so called fever cases up until July 29th. Actual COVID testing is scarce and just 74 deaths at the
population of 25 million numbers widely questioned.
[09:10:00]
CHRISTOPHER GREEN, SENIOR CONSULTANT, KOREAN PENINSULA, ICG: I think we need to see North Korea's COVID outbreak as not only a public health matter
but also a political matter. The beginning of the outbreak did not signal North Korea's first COVID case. And the end of the outbreak being announced
does not mean that they've got rid of COVID either. It just means that this was a time when they needed to shift on to something else and to make use
of the outbreak for political purposes.
HANCOCKS (voice over): Kim Yo Jong also called for deadly retaliation against South Korea, which she claims intentionally sent the virus across
the DMZ via anti-North Korea propaganda balloons, saying if it happens again, the North will wipe out the South Korean authorities.
KIM YO JONG, KIM JONG-UN'S SISTER: This national crisis that we suffered was clearly brought about by the theatrical force by the enemy using a
global health pandemic to escalate the confrontation with our nation.
HANCOCKS (voice over): South Korea's Unification Ministry calling the accusations groundless and the comments disrespectful and threatening.
HANCOCKS (on camera): This declaration of victory is being seen by some North Korean watchers as a message of hope and unity for a struggling
domestic audience. It could also potentially be a message for neighboring China that North Korea is ready to lift restrictions to open borders and
crucially to allow desperately needed food into the country. Paula Hancocks, CNN, Seoul.
(END VIDEOTAPE)
CHATTERLEY: And on the Chinese Island of Hainan the battle for zero COVID goes on as a lockdown in the holiday resort of Sanya continues into its
sixth day. Tens of thousands of visitors are trapped, unsure when they'll be allowed to leave CNN's Kristie Lu Stout reports.
(BEGIN VIDEOTAPE)
KRISTIE LU STOUT, CNN CORRESPONDENT (voice over): It's China's tropical island paradise Hainan, known for its sandy beaches and extravagant resorts
a coveted destination for Chinese travelers like Li Zefeng an Engineer from Shanghai.
LI ZEFENG, STRANDED TOURIST: I chose to come to Sanya because the COVID restrictions are more relaxed than in Shanghai.
STOUT (voice over): But for Li and some 80,000 tourists their island gets away turned into a nightmare. Officials hastily imposed a lockdown and the
resort city of Sanya to curb a COVID-19 outbreak. From Saturday public transport was suspended. People's movements restricted and tourists were
required to stay for 7 days and clear 5 COVID-19 tests before leaving. Southern flight cancellations lead to chaos at the airport.
In this widely circulated video, a local official tries in vain to placate dozens of frustrated travelers. He says the government will assist with
room and board but it's not enough. We want to go home they say. In heavy rain residents and visitors queue for mandatory COVID tests.
UNIDENTIFIED MALE: Oh my God, look how big the queue is? Oh my God what was going on to the back of the queue?
STOUT (voice over): And across China, a number of domestic tourist hotspots have been struck by zero COVID lockdowns. Last month more than 2000
tourists were trapped in the resort town of Beihai. Meanwhile, cases are rising in Xinjiang and even Tibet, which had been COVID free for almost
three years.
With overseas travel still banned and domestic tourist destination struck by the virus the summer has ended early for many Chinese vacation goers.
The first batch of stranded tourists has started to leave Hainan and Li is still waiting for his trip home.
STOUT (on camera): You endure the lockdown in Shanghai you're now under lockdown in Sanya. How do you cope?
ZEFENG: For someone who has endured a 3-month lockdown in Shanghai I am keeping a steady peace of mind because this is the kind of natural
disaster. It's out of our control.
STOUT (voice over): Li says because he's in a high risk zone with confirmed cases he must stay put for another week or so under lockdown yet again but
this time with an ocean view. Kristie Lu stout CNN Hong Kong.
(END VIDEOTAPE)
CHATTERLEY: OK, let me bring you up to speed with some of the other stories making headlines around the world. New satellite images show at least 7
aircraft were destroyed following explosions at a Russian airbase in occupied Crimea earlier this week. Four blast craters can be seen as well
as burn marks and scarred vegetation; Ukraine isn't confirming if it was behind the blasts. The cause is still unknown.
And it's been nearly one year since the United States pulled out of Afghanistan. Remember the scenes of Kabul falling to the Taliban Afghans
desperate to leave with the last coalition troops and the President fleeing the country. CNN's Chief International Correspondent Clarissa Ward has gone
back and reports
(BEGIN VIDEOTAPE)
CLARISSA WARD, CNN CHIEF INTERNATIONAL CORRESPONDENT (on camera): I think you can probably see behind me we're at a market. There is a sense of
normalcy on the streets of the city. There is not the same sort of or anything approaching the levels of chaos and violence that we saw playing
out during those heart wrenching scenes last year.
But the change has also brought about a real decrease in the standard of living here. And a lot of people are now fighting to put food on the table.
[09:15:00]
WARD (on camera): The U.N. says that nearly half the country is in a state of acute hunger. The International Rescue Committee says by the second half
of this year, they believe well, we are now in that second half of this year, more than 90 percent of people will be living below the poverty line.
And that's for a whole plethora of reasons, partly because of sanctions and the freezing of Afghanistan's Federal Reserves after the Taliban took
power, partly because of the food crisis, partly because of inflation. But what you see when you go round, and I just want to show you a little bit
seeing is we're here in this market.
You can see there is food; there is food that you can buy. The market stalls are full. But the conversations that we've been having with vendors
make it clear that for the vast majority of people, it's become unaffordable this food.
So flour, I was told by these vendors has doubled in price, cooking oil, which is obviously one of the basic necessities has more than doubled in
price. And that's not even before you start talking about the very real changes and the impact that they've had as the Taliban has gradually become
firmer and implementing its vision or version of Sharia law.
(END VIDEOTAPE)
CHATTERLEY: Former President Donald Trump declined to answer questions in a scheduled deposition on Wednesday it was part of the New York Attorney
General's 3-year investigation into whether the Trump Organization used false financial statements to mislead banks, insurance and tax authorities.
The Trump team denies any wrongdoing.
And another heatwave is hit parts of Europe from the U.K. and the Netherlands to Spain and France. Official say 63 percent of the land across
the E.U. and U.K. combined is under drought warnings or alerts. Those conditions are helping fuel scenes like this; wild fires across
southwestern France have charged thousands of hectares of land.
OK, we're going to take a break here on "First Move". But straight ahead the Disney magic continues now streaming slow down for Disney Plus at least
for now. Plus, feel very good movie "Mrs. Harris goes to Paris" taking on the Tyson's at the box office how the film is stealing the show on the
future of filming King looks like with the film's director, all coming up stay with us.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move" and a magical moment for Disney its quarterly revenue jumping 26 percent from a year ago net profit up 53
percent. Disney Plus added more than 14 million customers raising its total subscriptions to 252 million that was way better than expected.
Combined with Hulu and ESPN Plus, Disney now has 221 million subscribers, surpassing Netflix's total for the first time. And that's not all visitors
are also packing its theme parks boosting sales by 70 percent from a year ago.
Joining us now is Tim Nollen. He is Media Analyst at Macquarie. Tim, great to have you with us! I'm as bamboozled by all the numbers there, as I'm
sure my viewers are as well. But this was overall; I think great news for Disney, great news from Disney Plus, specifically. And actually great news
for all of those that are involved in streaming, we don't seem to have hit peak yet.
TIM NOLLEN, MEDIA ANALYST, MACQUARIE: Streaming has a long way to go still. Now Disney has some great advantages. I mean, they've only recently entered
a number of new markets. And they have a lot of content coming out, you know, starting this quarter into next quarter.
So it's a nice setup for some growth in streaming subscribers. As you mentioned, they've surpassed Netflix now, in terms of total subscribers,
Disney Plus is at 152 million now globally added 14.5 million globally from last quarter, in this quarter just announced.
So it's a very strong result. And I think it speaks to the Disney brand. And to the interest in the content that they have, as well as the fact they
are still expanding internationally.
CHATTERLEY: Yes, you made a great point there. And I think we saw Disney launched Disney Plus in what 42 new countries 11 territories, just in June
alone to make your point about the expansion that we're seeing, even in the short to medium term.
What about pricing here, because it's not just about acquiring subscribers, it's about being smart about how you acquire those and how best you
monetize them? And we did see them changing up read increasing the cost for those without adverts, if you want to view without adverts, but also
perhaps pushing people more towards bundles making that opportunity so having ESPN, Hulu and Disney Plus as part of a package better value.
NOLLEN: Yes, that's been part of their strategy for some time now is offering that bundle. It works out to a much better, you know, financial
package for consumers. Interesting new news last night was the announcement of the timing of the launch of the ad supported tier, so December 8th in
the U.S.
And along with that we got the pricing. So essentially, if you're getting Disney Plus ad free for $8 a month now, as of December 8th, you can get
that same ad free package for now $3 more so Disney Plus straight standalone $3 more that's $11. Or you can keep that $8 price point but
accept the version with ads.
So as they you know, put it into offering choice to the consumers. What it means for Disney, of course is an opportunity to really make more money of,
of the advertising revenues they can gain from that service.
It'll be very interesting to observe what happens over time with consumers choosing to keep the ad free at a higher price, or opt to the lower price
option, which actually for Disney could work out to be even more profitable, given the value of the ads that they can sell.
CHATTERLEY: Game pair contrasts with what we're seeing from Netflix, who they're also talking about this ad subscription model. So it's a direction
that a lot of these guys are heading in more and more. In terms of subscriber growth we know Netflix reported a loss of 1 million net
subscribers in the previous quarter and forecast a gain of just 1 million for the third quarter.
But I do know that their share price has risen, what 20 percent since we got those results, so there's almost like OK, well, we really did sell this
stock on the on the bad news. But hey, perhaps we're being a little harsh. I'm showing the comparison now which actually is also interesting too.
NOLLEN: Yes, well, Netflix stock sold off, I forget 75 percent or something from its peak. So to recover some of that, of course is welcome. But
remember, Netflix has been in the business of streaming for many, many years. Disney has many years behind Netflix.
And so for Netflix, it's a case of you know, reaching maturity, frankly in the U.S. and Canada. And there is still is opportunity in other countries
but they just started that much further along the path than Disney.
[09:25:00]
NOLLEN: And that is why Netflix has launched - it has announced its going to launch this ad supported tier as well, same argument, it's an
opportunity to give consumers a lower price to encourage them to not drop the service or to add on the service. And for the seller, in this case,
Netflix, there's an opportunity to make good money from those ads.
Netflix is a little behind Disney in the launch of the ad supported tier that might not be until the spring, whereas Disney is going to be now in
December. But the logic is very much the same. It's a very competitive market for streaming.
Remember, Netflix had almost no competition in the beginning, you know, 10 years ago. Now everybody has their own streaming service. Disney has a lot
of content; lots of other players out there have lots of content on their streaming services. So Netflix is reaching for other tools in the bag to
try to attract more subscribers.
CHATTERLEY: Yes, and we'll see how it goes. And just to remind our viewers, you've got an outperforming Disney with a price target of $135 and
underperform on Netflix targets $178. Tim, always great to have you on the show and get your wisdom thank you for that, Tim Nollen, there Media
Analyst at Macquarie!
NOLAN: Thank you.
CHATTERLEY: OK, up next, Disney may be putting up prices but our next guest is generating buzz for trying to take cost down the CEO of Stock Trading
App Lightyear with his bid to take business to infinity and beyond that's next.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move". From meme stock mania to Robinhood's crypto crash retail traders are now a key player in the U.S.
stock markets but Europe hasn't seen the same size a pandemic boom.
Stock Exchange Euronext estimated that just 5 percent of trades were made by retail traders in 2021 compared to almost 25 percent in the United
States. Well, now UK-based stock trading App Lightyear is aiming to change that. They say they offer easy, fast and free trading accounts to small
investors. In July launched 19 European countries.
[09:30:00]
CHATTERLEY: Here to explain is Martin Sokk he's the CEO of Lightyear. Martin, fantastic to have you with us! OK, I've seen you compared to
Robinhood in the United States, you can say why or why not. But just give us the vision? How do you think you can get more retail traders across
Europe?
MARTIN SOKK, CEO, LIGHTYEAR: Think like you can U.S. and European markets are quite different from each other, like U.S. has seen quite strong
transition from like banking faced or to the online base to the kind of commission free trading and like retail people have like really benefited
from that.
And now if you're coming into Europe, this hasn't happened. So most of the people are still making their investments through the bank, it's incredibly
complicated. There's not good access to a lot of barriers, a lot of hidden fees. So this technically just hasn't been there yet. So we're here to
change stuff.
CHATTERLEY: It comes down to how pension funds work as well and they're very different in the United States, too. So it's in many ways about
educating people about the resources that are out there. You offer an array of global stocks on the platform. And in terms of fees, you say it's free
to the customer that you only charge for currency conversion, and it's a flat rate. So just explain how that works?
SOKK: So I think it comes down to the how the Europe really works. So in Europe, you're in this weird position that most people have wrong currency.
So if you think about how people are investing than half of the money goes to the U.S. and half of the money goes into the European market means that
people need to convert money constantly.
So in Europe, it kind of makes sense to actually charge the conversion fee. So if you're looking into where the like how cheap is to actually execute
the trades, and so on. So it makes sense to remove that fee and charge for the ancillary service benefits.
CHATTERLEY: And on any transaction or on over above a certain size?
SOKK: Now, we're actually getting it in a way that everybody who joins the platform gets currently three different accounts. So they get Dollar
account, Euro account and Pound account, so they can top up in any of these currencies. And it can convert between these currencies.
So now, for example, when I'm currently in the UK, so I can top up in my pounds, convert that into dollars, and buy U.S. stocks and sell U.S. stocks
and keep my dollars, I don't need to convert back and forth constantly.
So I think that's one of the core elements in Europe, because the currency conversion is so kind of prominent everywhere, they want to give the best
possible opportunity for people to actually save money on that as well.
CHATTERLEY: It makes sense. If I'm investing purely in European stocks and I already own Euros. So does that mean I pay absolutely no fees at all?
SOKK: Yes, we're like building a fermium model means that like, if you want to get started, like just in many European instruments, then fine, you can
do that for free. But we are also building a premium account.
So for people who want to have a little bit better experience, like more data, more information, or they want to have kind of better understanding
of the market the risks, then this is you can use our product to actually get better understanding. There's also kind of learning that lessons like
how to get a better investor.
CHATTERLEY: Aha and that's the key. So we are moving to a subscription model because otherwise the economics of this simply don't work. Do you
have any sense of what proportion of people that are using the platform will actually sign up for that subscription? And can you give us any sense
of what it's going to cost just on a on a monthly basis? Are we at that point yet? When's it coming?
SOKK: So it's coming out end of this year.
CHATTERLEY: OK.
SOKK: So far, we have been focusing on ethics at the beginning, go through ethics offering, and this is actually working with product rates. So I
think people underestimate, like, how big is the volume? What goes to that Netflix and our biggest opportunity there?
My background is from Weiss and my Co-Founder return together work in vice. And we saw this opportunity to actually have a really low cost solution
there. On a premium product, it's going to be in a couple of coffees kind of cost wise in one month. And we effectively tried to build a different
kind of models for people who have different needs.
So maybe you're more experienced person, you want to have more detailed view into your world, if you're a less experienced person, you maybe want
to - don't want to understand all the kinds of PE ratios, you just want to have recurring payments into some fund--
CHATTERLEY: I like that you're talking to me in the currency of coffees in terms of cost, which works in my mind, I can do it. But I don't show you my
coffee because it's enormous and it's branded.
I guess a couple other things with Robinhood that I would compare with are I think we've discussed the business model and what you're looking at. Can
I just call out using any form of payment for order flow which is what got quite exciting during the GameStop period where there were questions over
platforms like Robinhood, being given money by market makers in order to take all their trades and execute them? This is not something you use,
that's correct, isn't it?
SOKK: Payment for - forward if it really doesn't make sense in Europe, so in Europe, it's in mostly legal. There are like one or two countries that
are like thinking it's a normal thing to do, but it's like not the premier - like prominent way out to make money in Europe in many ways. So Europe I
think there's like multiple other ways that Europe differs from the business model wise and also like how the countries - sort of nuance around
the business model.
[09:35:00]
SOKK: But yes, like we see, like FX being actually one of the really cool ways where European people can get the benefit of investing in a kind of
really, really low cost.
CHATTERLEY: What about crypto Martin?
SOKK: So everybody's super excited about crypto. What we see is that we started from instruments, where are the most prominent people's portfolios
and then going down to the instruments where they are less prominent?
So what we see right now is that effectively, large portion of people have crypto in their portfolio, but their assets under management is tiny. So
people are not making big bets there in Europe. So I think it's actually coming Europe again, lags behind U.S. so at that point, we are coming to
crypto as well.
CHATTERLEY: OK, and what about education Martin? Because interesting on the show yesterday, we were talking about these Memes stocks again, and
momentum in a stock can be very different from the fundamental analysis.
Where do you see your responsibilities begins and ends to educate people not just about trading, but things like stop losses, for example? And
perhaps reading a little bit about what they're investing as well as just seeing something going up, perhaps and buying it or down and selling it?
SOKK: I think his problem is not solved in the world in anywhere at the moment. So education seems to be kind of trouble away. Somebody has a blog
post somewhere like this is how you should invest and like.
My argument is that nobody really reached out. So I think education has to come to be baked into the application itself. So you would understand your
risk tolerance, kind of market risk, portfolio risk.
And if you start like looking into like, hey, like if you're distributing your investments like rather widely and your $100 cost averaging, and app
could tell you that and help you to understand these kinds of concepts, while they're actually rather healthy when you're doing your investment
journey.
So what we've tried to do is to try to take as much of the data and education into depth as possible. So we have been starting for building
kind of data product for people who are a little bit more experience. So we're giving them fundamental state we're giving revenue data, cash flow
data, also analyst ratings and news and like all these kinds of increments, like where people could make better decisions.
CHATTERLEY: Come back and talk to us please. I want to track your progress on this. It's going to be fascinating to see. Martin Sokk CEO of Lightyear
thank you so much for that. And I was going make a joke about how many light years and why you chose the name Lightyear, but we'll save that for
the next conversation.
There are a lot of light years out there and then not all trading apps. We'll reconvene Martin, thank you! I'm being told off. It happens a lot.
Thank you.
SOKK: Thank you.
CHATTERLEY: OK, after the break "First Move" is heading to the movies for a love letter about finding oneself, helped by the House of Dior and couture
fashion. I speak with the Director, the Writer Director of "Mrs. Harris goes to Paris". That's next.
(COMMERCIAL BREAK)
[09:40:00]
CHATTERLEY: Welcome back to "First Move". Lots of green on the screen in early Wall Street trade today the major averages building on Wednesday's
strong gains with the NASDAQ pushing further into bull market territory a softer than expected read on U.S. producer prices.
The second encouraging inflation data point this week is certainly helping sentiment. Prices at the factory gate which is the explanation for that PPI
number rising at a less than 10 percent annual rate last month. That is in fact the first read below 11 percent in five months. In fact, that reading
actually fell a half a percent month-over-month helped by an easing of energy prices the first monthly drop in two years.
The big question will the week's relative inflation expectation allow the Fed to ease up on aggressive rate hikes? Fed officials speaking yesterday
was still hawkish about the path ahead. These are still incredibly high numbers and they have a lot of work to do.
Now, helping the DOW push higher today shares of Disney rally 9 percent strength in streaming as well as strong theme park attendance and cruise
ship demand show the consumer is still willing to spend. The numbers easing at least some of the investor concerns that have driven shares down 20
percent year-to-date.
Now from a Disney stock rally to a box office darling among the big summer blockbusters based on Paul Gallegos Popular 1958 Novel, "Mrs. Harris goes
to Paris" has found its footing among fighter jets and Marvel superheroes. The movie tells the story of a British cleaning lady whose dream to own
Christian Dior gown takes her all the way to Paris, in a post pandemic entertainment world.
The feel good fashion film is helping brings people back to the theaters scoring high with both critics and audiences. Since its U.S. debut, "Mrs.
Harris goes to Paris" has brought in $8.2 million at the domestic box office and it will open in the United Kingdom on September 30th.
And joining us now is the Writer Director of "Mrs. Harris Goes to Paris" Anthony Fabian. Tony, fantastic to have you on the show! I should be honest
with our audience--
ANTHONY FABIAN, DIRECTOR OF MRS. HARRIS GOES TO PARIS: I'm delighted to be here.
CHATTERLEY: I should be honest with our audience, and I absolutely love the movie. So that's the caveat as we have this discussion. But you know when I
look at the feedback that I see online, you're Rotten Tomatoes score is off the charts. You're paid streaming; now you're in the top 10. Spider Man,
Minions and Jurassic World is the competition there. Why is this so successful?
FABIAN: Thanks, Julia. I think the truth is we're occupying a unique space in releases right now. As you mentioned, they're all these big blockbusters
in Marvel movies. And ours is a modestly budgeted character driven drama.
So for people who are looking for an alternative to that kind of major studio fare, there's really not much else to go to. And I think you're not
alone in having fallen in love with Mrs. Harris and her quest for this Dior dress.
CHATTERLEY: I mean it takes her on a serious journey. It's set in the 1950s. She's someone very lovable, that character development, I think, is
also key to this at least for how it resonated for me at a time in the world where there's a lot of bad things going on.
And it made me laugh. I think that was the other thing this script writing on this was, I think so critical and from what you've told me years in the
making, and this is important to think to a successful movie.
FABIAN: Absolutely, and I've always felt that it's impossible to make a good film from a bad script. And I feel that not enough time and resources
are put to the screenplay, there's such a mad rush to actually make things that perhaps things go into production a bit too soon.
But the more time you have to burnish your material and to find the layers and the nuances, the more successful you're likely to be. And the more
likely you are to attract the kind of cast that we managed to attract for "Mrs. Harris".
CHATTERLEY: Yes, I mean, the cost is brilliant, too. But for me the dress - and the dress was absolutely fabulous let's be clear. But it was sort of a
metaphor for seeing something that you want and going after it but in an incredibly kind way. And she had sort of devastation; she's a widow, she
lost her husband in the war and through the pursuit of this dress made friendships and I think her heart opened as well.
I don't want to spoil it for the people at home, but through that funny and very sad events happen as well. For me you created something beautiful but
it's not this grand sort of violent explosive epic.
[09:45:00]
CHATTERLEY: It either's it sort of shoestring movie indie movies that we've come to recognize it's sort of in the middle. And I wonder, at a time post
COVID, particularly for the demographics that you're attracting, and I've seen who's going to watch this.
And then I believe 44 percent of attendees, so far over 55 71 percent female says something about me. I wonder they're less likely to go back to
the cinema post COVID. And again, it goes to the point of being able to create movies, finance movies like this at this point in time, and get them
in the cinema.
FABIAN: Absolutely. I think this is the most endangered species of all the cinematic genres. And there was previously a very strong cinema going
audience in amongst the more mature and female audience that this film is clearly destined for.
But they in a way have been the slowest to return to the cinema, perhaps the most fearful about catching COVID perhaps the most out of the habit of
going to the cinema. And I think it's been a little bit of a vicious cycle, because the cinemas have not been offering this audience anything
particularly for them to see.
So if all you have in front of you is Top Gun and a Marvel movie, you're not likely to go and check out what's going on. You're not likely to see
the trailer for the kind of film that you want to see. And the one exception, perhaps earlier this year would be Downtown Abbey, which was in
a way a litmus test for a similar audience.
And I think Downtown began to draw this audience out. And we've written - we have written on those coattails the Downtown coattails because Mrs.
Harris was certainly tailored with Downtown. So it was an effective way of getting people back into the habit of going to the cinema and a very
important habit to get into I think.
CHATTERLEY: So the onus perhaps is on us as consumers, if we want some diversity, we have to go back to the cinemas. Because it's not like movies
like this aren't being made. They're just going direct to streaming, not even paid streaming which is what I was talking about with you guys or to
the cinema?
So the onus perhaps is on us to search out for more independent movies like this and go and watch them and provide support. To your point it's not
about perhaps begging for viewers, it's about a bit of diversity because like I said, this was a bringer of joy in many ways?
FABIAN: I think the more films are out there like this, that people can go and see the more they will go and see them. And to some degree, Mrs. Harris
has been the canary in the mind. If she's done well, which she has, it will perhaps encourage studios to make more of this kind of film.
CHATTERLEY: You know, it's not often that I go to the cinema and I sort of laugh, cry and grown at one point, I hide my eyes because she tries to
raise money and she goes to watch a dog race.
She bets on a dog just based on the name so not based on science, which I may have done once or twice before with horses, and it's called haute
couture. But her accent is obviously better than mine and I literally was crying and then I find myself sitting a few seats away from the director.
So that's actually that's how we met. I think some of our viewers will have seen some of the actors and actresses in this and seeing them in other
guises. Jason Isaacs for example, from the Harry Potter franchise. Your main actress is phenomenal, and appearance there as well from some others
may have seen on a Netflix drama, Emily in Paris. You're a great spotter of talent, I think too and that matters. You've mentioned that.
FABIAN: I was very lucky in this instance that once we had our key cast Leslie Manville and Isabel - I could spread the net a little bit more
widely and perhaps make some discoveries.
And we have some really lovely younger characters in the film, such as the accountant at Dior, and the top model at Dior, and the aspiring actress who
plays a very pivotal role in the story.
And I was able to really cast the absolutely perfect people for those parts who were not necessarily big names.
CHATTERLEY: Yes.
FABIAN: And Lucas Bravo, we just also were so lucky because I cast him before Emily in Paris ever hit the screens. And by the time we started
filming, there was a very funny incident Isabella was collected from the airport and in the taxi, the driver said, oh, you're very lucky. You're
going to be working with this amazing actor Lucas Bravo.
And, you know, he was speaking to the Meryl Strep of France. So that was hilarious, because really overnight, Lucas had over a million followers on
Instagram and we had a star which we didn't even know we had cast prior to starting production.
CHATTERLEY: Yes, and there's a message in there too about life for someone these talents after COVID as well and getting them back to work in spotted
and integrate movies like this. Good luck for the UK launch.
[09:50:00]
FABIAN: Thank you.
CHATTERLEY: We continue to watch your progress. Thank you. Anthony Fabian there--
FABIAN: Thank you so much.
CHATTERLEY: "Mrs. Harris goes to Paris" great to chat to you and we'll speak soon thank you. OK, still to come - sailing for SpaceX subsidies U.S.
regulators are sidelining starlings, cash we'll have more after the break.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move". Trouble in the skies for Elon Musk's SpaceX--
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: 4, 3, 2 and 1 ignition and lift up Star link go--
(END VIDEO CLIP)
CAHTTERLEY: Wow! I'll never get tired of that. Just two days ago, it launched another Falcon 9 rocket with 52 more Starlink Internet satellites
into orbit. Starlink is SpaceX's Internet mega constellation beaming broadband service to hundreds of thousands of people around the world.
But now U.S. regulators have denied the company nearly $900 million worth of subsidies claiming the service is "Still developing technology".
Clare Sebastian joins us now. However, some skepticism Clare and welcome when they were initially awarded this because people said it was too
experimental it not been proven. What was the decision here? Why have they chosen to pull back the subsidies now?
CLARE SEBASTIAN, CNN CORRESPONDENT: Yes, Julia the original decision to grant their subsidies in December of 2020 in the final weeks of the Trump
Administration, it should be noted, came really just about 18 months after Starlink had launched its first satellite.
So now we're about a year and a half after that there's a new administration and they have reversed that decision for a couple of
reasons. One, they're saying that the company they feel is not yet ready. The technology is still developing.
This is what FCC Chair Jessica Rosenworcel had to say in the statement she said we must put scarce universal service dollars to their best possible
use as we move into a digital future that demands ever more powerful and faster networks.
We cannot afford she says to subsidize ventures that are not delivering the promise speeds are not likely to meet program requirements. So pretty
damning statement there when it comes to how far SpaceX has Starlink has allegedly come during this time.
She's also apparently worried that the speeds are not fast enough that some of the broadband speeds might have been slowing in recent months. And they
also noted cost that customers have to pay upfront up to $600 for a satellite in order to even access Starlink's Internet something that might
be prohibitive of course, for rural areas. So those are their concerns.
But of course this is pretty bad for SpaceX Starlink. It markets itself really for this purpose for reaching rural remote areas. And the fact that
it comes from a sort of constellation of satellites rather than fiber broadband, which is what the more traditional methods nowadays.
So this really casts some doubt on that U.S. case at least for the moment while it develops and I think as well Julia, cast some doubt on Elon Musk's
ability to win trust for something that is still developing something that of course we know has been a key tenant of his career so far.
[09:55:00]
CHATTERLEY: Yes, trust I think perhaps is a critical word here. I mean, I think they've raised more money than this you routine fundraising this
year, and it's what $125 billion company so one could question whether he needs it but yes, have to bring those prices down in order to make it more
accessible. Clare great to have you with us thank you, Clare Sebastian there!
Now finally, the age old questions why did the chicken cross the road? May have some competition why did the Turkey break into an apartment? Police
officers in Wisconsin responded to a call about a disturbance at an unoccupied apartment. Somehow a Turkey that crashed through the second
story window.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: It's a Turkey not a Tiger.
UNIDENTIFIED MALE: Yes, it's going to scratch - do have seen - have you hunted Turkey before? Guys said only not to do afterwards though.
(END VIDEO CLIP)
CHATTERLEY: It's going to scratch. The entire Turkey trot was caught on body cams after a lot of flapping and chased the bird - chase of the birds
around with a net. The feathered perpetrator was finally caught. They were flapping on all sides there. I think she was released just outside the
apartment building so she was released. That's it for the show. "Connect the World" up next we'll see you tomorrow.
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