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First Move with Julia Chatterley
U.S. Concerns Russia's Planned Pow Trials in Mariupol; Former UK Ambassador Charged with Immigration Offences; Economists Debate Inflationary Impact of Student Loan Forgiveness; Lolli Offers Bitcoin Rewards for Shopping Online; Protectors Worry Cybercrime Law Enabling Crackdown; Czinger says $2M Hypercar Transforms Auto Manufacturing. Aired 9-10a ET
Aired August 25, 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)
ALISON KOSIK, CNN HOST, FIRST MOVE: A warm welcome to "First Move", I'm Alison Kosik. Great to have you with us once again, lots to get to this
Thursday. It's an important day for global investors, as the central bank symposium in Jackson Hole Wyoming gets underway. The first in person
gathering of policymakers at this closely watched conference since the pandemic.
The main event takes place tomorrow when Fed Chair Jerome Powell delivers a key address. Powell has a chance to clear up uncertainty among global
investors about future Fed policy and the pace of Fed rate hikes going forward.
The U.S. central bank needs to fight sky high inflation on the one hand, but it doesn't want to risk triggering a sizable recession. New numbers out
today show the sensitive tightrope that Powell is facing here.
A new read on U.S. GDP shows the American economy contracting at six-tenths of a percent annual rate in the last quarter. The numbers represent a bit
of an improvement from the first reading a few weeks ago, but the numbers also continue to show that the U.S. economy continues to contract for a
second straight quarter the technical definition of a recession for some.
As Investors pour over the data, it's still looking like a higher open for global stocks overall, U.S. futures are pointing to an early session of
looks like green arrows, and Europe mostly hired too, after a strong Asia finish. The action in Hong Kong looks especially strong as well with the
HANG SENG soaring more than 3.5 percent helped by news of further stimulus measures from China more on that in just a moment.
But first devastation on Independence Day, at least 25 people was killed Wednesday when a Russian attack hit a train station in Southeastern Ukraine
with dozens more injured.
Ukrainian president Volodymyr Zelenskyy said at least four rockets hit the station and a passenger train. The White House says President Biden is set
to speak with Mr. Zelenskyy sometime today. David McKenzie joins us live now from Kyiv. David, what more can you tells us about this attack?
DAVID MCKENZIE, CNN SENIOR INTERNATIONAL CORRESPONDENT: It's certainly a very significant attack and the Ukrainian say devastating to civilian life,
at least 25 people killed and you look at those pictures and video show a very large series of blasts or single blast. And at least two children
tragically were killed an 11-year old and a 6-year old had happened on Independence Day here towards the early afternoon in the Eastern part of
the country at a train station.
Now the Russian military is saying something very different. They say it was a missile attack on Ukrainian military reservists on the way to the
Eastern front. They say a very large number of Ukrainian military was killed and several assets of the Ukrainian military were hit.
This is really the pattern of this conflict in that the evidence sometimes appears very clearly to show civilian structures being hit. And the
Russians claimed that it's a military targeting. It's just impossible to verify 100 percent from our side, but it is certainly a very significant
attack and one of the worst death tolls in recent weeks in strikes like this, Alison.
KOSIK: David, the U.S. is strongly condemning upcoming trials scheduled for Ukrainian prisoners of war, calling them show trials and a mockery of
justice. What more are you learning about this?
MCKENZIE: Well, an official in that area is saying it appears that possibly the finishing touches are being made to a courthouse and I use that in a
very loose term of what the State Department calls the show trials, which the Russian occupies in that area of Ukraine appear to be preparing to put
on trial according to official they have the self-declared the next Republic are both prisoners of war and members of the Azov battalion that
according to the U.S. State Department and Ukraine, and just citizens on the street here put up an extremely brave defense of Mariupol months ago,
and many of them eventually surrendered.
Now it looks like the Russians, or the Russian authorities, they are going to be putting them on this trial, so to speak. It's getting a great deal of
criticism, of course from Ukraine but also from Western powers. And saying that it's a way for the Russian President Putin to mask or divert attention
from what they call his war crimes and atrocities during this conflict, Alison.
[09:05:00]
KOSIK: OK, David McKenzie live from Kyiv thanks very much. China is availing fresh stimulus measures the government has announced a new $146
billion plan to support the economy suffering from COVID lockdowns a property sector downturn as well as an historic heat wave. Blake Essig
joins us now with the latest. So the drought is just adding to China's long list of major economic challenges.
BLAKE ESSIG, CNN CORRESPONDENT: Yes, look economic challenges compounded by the impact of China's zero COVID strategy, Alison. That's something China
has control over Mother Nature. That's arguably a different story from tropical cyclones and floods to now record breaking heat, drought and
wildfires.
China's summer of extremes continues in this recent video from Chongqing really encapsulates what the people have been dealing with brush fires
raging in the background as roughly 10 million people living in the city are required to endure extreme temperatures, while waiting in long lines to
undergo mandatory COVID testing after a few local positive cases are discovered as of today.
Our red alert notice its most severe heat warning has been issued for at least 67 cities across the country, the vast majority in Southern China
where temperatures are expected to surpass 40 degrees Celsius or 140 degrees Fahrenheit within the next 24 hours. The good news is that number
of 67 cities is down from 147 cities the day before in Chinese meteorological officials say the heat wave is receding. The bad news is
that it still remains incredibly hot across large parts of China to deal with the heat in conserve energy as well. Chinese cities have been taking
measures to reduce power consumption in Shanghai.
Much of the city's colorful night skyline has gone dark, including billboards and outdoor advertisements in Sichuan province to ensure partial
residential power supplies. This weak power has been cut to factories, public facilities, shops and residential areas in 19 of 21 cities in some
spots subway trains ran in darkness people have spent their days inside shopping malls while others have spent their nights on a bridge because
it's too hot to sleep at home.
And villagers in Shenzhen have even sheltered inside burial caves home to 2000-year old ancient tombs. Of course, this record setting heat wave has
also had ripple effects. Beyond the high temperatures, millions of people living in Hubei province in parts of Southern China had been affected by
severe drought since June.
As a result, lakes and rivers are drying up and an estimated 40 percent of crops have been damaged. And hundreds of thousands of people are struggling
to access drinking water highlighting the desperation here.
Several times over the past 10 days, Chinese authorities have literally tried to make it rain by cloud seeding.
In this case, Chinese planes are firing silver iodide rods into clouds to help form ice crystals and produce rain. This drought in Southern China
again, the good news potentially receding but is expected to continue to last through at least this week, Alison.
KOSIK: OK, Blake Essig thanks so much for your reporting. Pandemic in the past the Australian airline Qantas leaving Coronavirus in its wake and as
passenger demand returns. It says the existential crisis posed by the pandemic is now over. The contest is suffering flight cancellations,
staffing shortages and baggage problems.
Many other airlines around the world are grappling with those things too. CNN Pete Muntean spoke exclusively with the CEO of United Airlines and he
joins us now from Denver International Airport. Pete, good to see you so what did the CEO say about the ability for United to keep up with the
strong demand?
PETE MUNTEAN, CNN AVIATION CORRESPONDENT: Well, you know, Alison, this is really interesting, especially with the Labor Day rush right around the
corner. Big numbers expected here at Denver International Airport a major hub for United Airlines, United expecting 2.6 million passengers on its
airline alone, but remember that Monday was one of the worst days for flight cancellations in the U.S.
We have seen in weeks the weather, especially bad in major hubs like Dallas. Now the question is whether or not the travel system is up to the
task. We got an exclusive look at what United Airlines is doing. And we pressed CEO Scott Kirby for answers.
(BEGIN VIDEOTAPE)
MUNTEAN (voice over): Another week of air travel pain across the country is turning up the pressure on airlines to perform with the Labor Day rush fast
approaching this past Monday alone, more than 1400 flights were canceled nationwide. The fourth highest of the summer, both Southwest and American
Airlines delayed more than 40 percent of all their flights.
SYLVIA IBARRA, PASSENGER: My flight was canceled.
MUNTEAN (on camera): Yesterday?
IBARRA: Yesterday. Now we're back again today.
[09:10:00]
IBARRA: I was cancelled this morning and now we're back again.
MUNTEAN (voice over): United Airlines CEO Scott Kirby says hiring here at Training Center in Denver has made its pandemic recovery quicker than
others. Since the start of this year, United has hired 1500 new pilots in hopes of alleviating staffing shortages and canceled flights.
In total, U.S. airlines have canceled more than 44,000 flights since June.
SCOTT KIRBY, CEO OF UNITED AIRLINES: All airlines are not created equal.
MUNTEAN (voice over): In an exclusive interview. Kirby put some of the blame back on the federal government. Last week, the Federal Aviation
Administration said a shortage of air traffic controllers delayed flights into Newark, JFK and LaGuardia by up to two hours.
KIRBY: Frankly, the bigger challenges are not the airline's themselves. They're the entire support infrastructure around aviation that hasn't
caught up as quickly.
MUNTEAN (voice over): Let me push back on that just a tiny bit because United has had 5000 cancellations this summer. What do you say to somebody
who does see this as an airline issue rather than some other cause?
KIRBY: Well, first, I would say we're doing everything we can to get the airline running reliable. We know that's the most important thing for
customers. It's our number one priority. We had ground stops for the entire day. And when the FAA says you can't land airplanes at the airport, you're
going to have delays and cancellations.
MUNTEAN (voice over): Transportation Secretary Pete Buttigieg insists air traffic control issues do not account for many cancellations this summer.
In a letter to airline executives Buda judge says the level of disruption Americans have experienced this summer is unacceptable, and is telling
airlines to review their customer service commitments to passengers.
PETE BUTTIGIEG, TRANSPORTATION SECRETARY, UNITED AIRLINES: I'm calling on the airlines to step up their game before we have to do even more.
MUNTEAN (voice over): For United that starts with training that focuses on quality, something I got to try in a Boeing 737 simulator.
UNIDENTIFIED MALE: I feel like that was a little harder.
CAPT. MIKE BONNER, UNITED AIRLINES PILOT: Our growth plan, the most aggressive growth plan of any airline in the history of aviation is really
the driver behind the need for our pilots.
(END VIDEOTAPE)
MUNTEAN: I also ask United CEO Scott Kirby. If he's feeling the pressure from passengers, he says customer satisfaction is going up but it's not
totally where he wants it just yet. Two major tips if you are traveling over the Labor Day holiday. One, ditch that check bag if you carry on that
leaves you more flexibility. And two, try and ditch connections in your itinerary. If you fly nonstop, have fewer connections, it opens you up to
fewer opportunities for delays and cancellations, Alison.
KOSIK: Good advice Pete and I have to point out you may have been in a flight simulator, but I know you are an actual pilot and flight instructor
so that was probably easy stuff for you wasn't it?
MUNTEAN: Was a blast? Yes, I think it's very fun. And it was a very nice opportunity that United gave us so yes, it was totally fun and a good
educational experience.
KOSIK: Sounds great, Pete Muntean thanks so much. And these are the stories making headlines around the world. In being more Britain's former
ambassador to the country is under arrest. Vicky Bowman was detailed, detained rather along with her husband and they were charged with breaking
with breaching immigration law. This comes just the day after the U.K. announced new sanctions on Myanmar's military leadership. Paula Hancocks
joins us live with more, the timing of this is curious, isn't it, Paula?
PAULA HANCOCKS, CNN CORRESPONDENT: Absolutely Alison, I mean, we don't know for sure why she was arrested in the minds of the military. But certainly
we can point out what the coincidences are. And as you said there this comes just as the U.K. has put more sanctions on Myanmar's military Hunter
this on the 5th year, the 5th year anniversary of that brutal massacre of the Rohingya minority in Rakhine State. The U.K. also saying that they were
going to intervene and become more involved in the law case that's going on at the moment allegations of genocide against Myanmar in the U.N.'s top
court.
And so this does come at the same time as we are hearing of Vicky Bowman being arrested along with her husband. She is the former U.K. ambassador to
Myanmar from 2002 to 2006. She has been in the country for many years. She speaks fluent Burmese, she is married to a Burmese man and he is not only a
renowned artist, but also a former political prisoner.
He was one of the student protesters back in 1988. We know that many of those former political prisoners have been arrested by the military hunter
since they took control of the country back in February of last year. Now what we're hearing from the military themselves, this is their version of
events. They say that she has been charged under the Immigration Act. They say that the address that she gave on her visa did not match the address of
her residence.
[09:15:00]
HANCOCKS: And this is the reason they say that they have arrested. And charged to add this particular time that if found guilty does have a
maximum prison term of 5 years. Now we've heard from the U.K. Foreign Officials well, they haven't confirmed her identity. But they have said we
are concerned by the arrest of a British woman in Myanmar saying that they're in contact with authorities and providing consular assistance.
But this is really interesting timing coming at the same time as those increased sanctions. And certainly it will be a concern of those in the
U.K. Foreign Official trying to find out how they can help their former ambassador, Alison.
KOSIK: All right, Paula Hancocks thank you I know you'll be following this story. The U.S. says Iranian backed militants have fired rockets at
coalition bases in Syria and apparent response to American airstrikes which were captured in this video. The latest rocket attack injured at least
3U.S. service members. The U.S. says it returned fire killing 2 or 3 people that's according to initial assessments.
KOSIK: Demonstrators in Western Iran this week are calling for government officials to resign. This after water was reportedly cut off more than a
week ago, amid a widespread and relentless drought. Officials say their top priority is to complete a pipeline to supply drinking water within the next
three weeks.
Hundreds gathered outside and anti-terrorism coordinate Islamabad to show support for Pakistan's former Prime Minister Imran Khan. Khan was granted a
one-week extension of his protective bail, which means he cannot be arrested until then. Police are investigating whether Khan broke anti-
terrorism laws during a speech at a rally over the weekend.
Still to come new economic data in the U.S. could offer insight into the state of the economy. Mark Zandi joins me to discuss ahead of Jerome
Powell's Jackson Hole Wyoming policy speech. And a new kind of supercar turning the auto industry on its head you'll never guess how it's made stay
tuned.
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KOSIK: Welcome back to "First Move", I'm Alison Kosik. U.S. features still pointing to a higher Wall Street open this Thursday.
[09:20:00]
KOSIK: Stocks on track for their second straight day of gains. But the major averages are still down for the week overall how we finish the week
will have a lot to do with Fed Chair Jerome Powell's tone during tomorrow's Jackson Hole Wyoming policy speech.
Powell could hold out hope for a slower pace of Fed rate hikes later this year. And perhaps rate hikes pause further down the line. If inflation
moderates, he could take a harder line and leave the door open to another big rate hike next month. Or he could simply play his cards close to the
vest. The Fed after all is vowing to become much more data dependent going forward and perhaps less transparent about its future moves.
Meantime, just released numbers show the U.S. economy still contracting in the second quarter. GDP dropping by an annual rate of six tenths of a
percent a bit better than the preliminary reading of nine tenths of a percent with consumer spending numbers revised higher.
Mark Zandi joins me now. He's the chief economist at Moody's Analytics. Great to have you on the show again, Mark.
MARK ZANDI, CHIEF ECONOMIST, MOODY'S ANALYTICS: Thanks, Alison.
KOSIK: So GDP the upper revisions, still negative consumption higher, more conflicting signs on whether or not we are in an actual recession which
technically we are right?
ZANDI: Well, no, no, I don't think so. Alison, you know, for me, what matters most in terms of judging whether we're in recession or not is jobs
are we creating jobs are people employed is unemployment low. And we're creating a lot of jobs a half a million last month, 10 million over the
last 18 months; unemployment said 3.5 percent that's back down to low prior to the pandemic layoffs are very low. There's close to 10 million unfilled
positions open position. So now looking at the job market, which again, I think is the most important thing in terms of judging recession or not,
this is not a recession.
KOSIK: We are seeing signs, though at least analysts are saying that they're seeing signs that Americans are extending their credit card debt,
depleting their savings. What does that say to you about a recession in the broader economy?
ZANDI: Well, you're right, I mean, because of the high inflation painfully high inflation mean, for the typical American household, there's, they have
to shell out on those $500 more a month to buy the same goods and services they were a year ago. That is cutting into people's savings, particularly
lower income households, folks in the bottom part of the income distribution, and there's some financial pressure that's developing there.
And those households are having to make some pretty tough hard choices here, you know, do I fill my gas tank, do I pay my rent, you know, grocery
bills, that kind of thing. So the stress points are intensifying in the economy, and the economy is beginning to struggle. So we need to get the
inflation back down again, here pretty soon, otherwise recession risk will arise. And recession seems more likely than not.
KOSIK: Jay Powell's message will be at Jackson Hole tomorrow.
ZANDI: Exactly that we need to get inflation down. And he's going to do everything he can to do that without pushing us into recession. And so that
means more interest rate hikes. You know, he's got a, I think, a pretty clearly articulated script, half point increase, another half point
increase in the federal funds rate, that's the rate the Fed controls. When the Fed meets in September, a quarter points in November, quarter points in
December that will put the funds rate at 3.5 percent.
And that's probably where it's going to stay for a while until you can make an assessment of, you know, what it all means for the economy and for
inflation. But my sense is that if he sticks roughly to that script and articulates that, markets will take that in stride, and you know,
ultimately that will allow the economy to navigate through without actually suffering a recession.
KOSIK: To the U.S. housing market, we're going to existing new home sales fell in July, housing starts they tumbled as well. Do you think the housing
market is in a recession?
ZANDI: Yes, that part of the economy is indeed in recession. And you know, to some degree, that's by design, right? So the Federal Reserve is raising
interest rates to try to slow growth, quell wage and price pressures get that inflation rate down. The most interest rate sensitive part of the
economy sector is housing, because when we go out and buy a home, we need a mortgage. And that's tied to mortgage interest rates.
So it's not surprising that housing is struggling, but it is clearly in recession. We haven't seen any house price declines yet. It hasn't
happened, but I suspect we will. You know, as we move later into the year a seller's kind of figure out that they can't sell their home at the current
price, but that's coming but yes, housing is struggling.
KOSIK: OK, to President Biden's student debt relief plan. Many critics saying that this is adding to inflationary pressures in the economy what do
you say to that?
ZANDI: No, you know, I don't think so. I mean, there's a lot of cross currents here. I mean, the debt forgiveness, all else being equal.
[09:25:00]
ZANDI: But yes, would help support growth in increase inflation but the President is going to also ask current debt holders to start repaying on
their debt. As you know, during the pandemic, there was a moratorium on those debt payments that's going to restart at the beginning of next year.
That's going to all else being equal, slow growth in slow inflation. So you take a look at those crosscurrents, headwinds, tailwinds. I just don't
really see any impact on inflation now.
KOSIK: I did want to ask you one follow to the housing question because it was a lack of supply that drove prices up but if homebuilders if they start
to see prices coming down will that remove? Will that remove the incentive to build more?
ZANDI: Yes, that's a great point, kind of ironic, right? I mean, we need more housing, to make sure that rent growth and house price growth begin to
moderate. And of course, these high interest rates make it less attractive for builders to go out and build. I suspect they will continue to build
there's a record number of homes in the pipeline going towards completion. They've been kind of stuck there can't get across the finish line because
of all the supply chain issues. You know, I can't get an appliance, I can't get the lumber, I can't get you know, wherever it needs to be to finish the
home. But the supply chain issues are ironing themselves out. So we'll get more completions more housing starts. So I think home builders are will
hang tough, we'll get we'll get those homes built. But you make a great point that is a negative consequence of the higher rates of money; I get as
much housing as we otherwise would have.
KOSIK: All right, a big thanks to Mark Zandi, the Chief Economist at Moody's Analytics. Thanks for your expertise today.
ZANDI: Sure thing, Alison.
KOSIK: Still there comes to wheat rewards for online shoppers in the form of Bitcoin. I'll be talking with the CEO of Bitcoin Rewards App Lolli about
what's next for Bitcoin adoption. Stay with us.
(COMMERCIAL BREAK)
[09:30:00]
KOSIK: And welcome back to "First Move", I'm Alison Kosik. A little rock and roll shot there of the NYSC opening. U.S. stocks are up in running this
Thursday.
A higher start for Wall Street overall, after the S&P 500 broke a three day losing streak yesterday. Stocks advancing even as U.S. benchmark yields and
oil prices tick higher, but gains for the major averages could be muted ahead of tomorrow's all important policy speech by Fed Chair Powell.
Stocks in the news today include Tesla shares higher on its first day of trading afterwards three for one stock split, lots of market moving
earnings news today as well.
Shares of stationary bike maker peloton are falling after posting a more than $1 billion quarterly loss and a weak start to the trading day for
discount retailers Dollar General and Dollar Tree, Dollar Tree slashing its forecast, but Dollar General raising its guidance.
To parse through all this, let's bring in Paul La Monica, he joins us live. Paul what do the earnings from these dollar stores, what did they say? And
then what do they say about the consumer and how they're spending?
PAUL R. LA MONICA, CNN REPORTER: Yes, it's fascinating Alison. As you pointed out Dollar General is holding up better than Dollar Tree. But there
are some concerns about consumer spending overall that I think are weighing on both the stocks.
What I found interesting is that Dollar General said that sales of things like apparel and holiday goods and other household products they actually
fell in the quarter. So where Dollar General is still excuse me, Dollar Tree is still doing what Dollar General lights these $2 stores, it's hard
to keep track sometimes.
Dollar General is holding up better with the "consumables part of the business" things like food and drugstore items beverages, that's a lower
profit margin part of their business even though it's the overwhelming majority of sales.
So I think the consumer is starting to feel the pinch of inflation even at Dollar Stores. And Dollar Tree they're struggling because they're still
trying to merge the Family Dollar brand within Dollar Tree.
And there's also the whole backlash to them raising prices late last year that got them you know, called Dollar 25 Tree somewhat derisively.
KOSIK: Yes and something tells me they won't be changing the sign outside their store to that but that's for another discussion. I want to talk about
peloton for a moment taking a huge hit but then learning that Amazon will be selling peloton equipment and apparel on its site.
Could this lead to something bigger perhaps Amazon just buying the whole company and then having a subscription through Amazon Prime?
MONICA: Yes, I mean it is a good idea I think on paper. Amazon obviously has the cash and financial wherewithal to do something if they so chose so
maybe this is sort of a trial balloon to see how this partnership works out.
Peloton did get a big boost yesterday because the Amazon news but the reality has sunk back in today Alison. Because the earnings were terrible
first of all, they weren't earnings they lost more than a billion dollars as you already alluded to.
Sales are falling there are worries about whether or not peloton which is trying to make a lot of changes with a new CEO can really go it alone and I
think you're going to see increased speculation that at some point.
Peloton might be a one trick pony that will be better off as part of a larger company whether it's Amazon whether it's another athletic apparel
company like a Nike or a Tech Giant, think all that remains to be seen but I don't think peloton takeover talk is going to go away anytime soon as
long as the company keeps reporting numbers as lousy as today as well.
KOSIK: A lot to watch there. Paul LA Monica thanks so much. Most shoppers are used to getting deals for shopping at their favorite stores, think free
shipping or a buy one get one free. But how about earning Bitcoin?
Lolli is a free browser extension and mobile app that allows users to earn Bitcoin when they shop from its retail partners. Those partners include an
impressive list of major brands like Chevron, CVS, Alta, Microsoft, Macy's, and Sephora.
It is currently only available in the U.S. But Lolli says its mission is to make Bitcoin accessible for everyone turning the average shopper into an
investor, a Bitcoin investor.
Alex Adelman is the CEO of Lolli and he joins us now, Alex, great to have you on the show and a special week for you because your company just
celebrated its fourth birthday, happy birthday.
ALEX ADELMAN, CEO, LOLLI: Thank you so much it's been a great four years.
KOSIK: Good to hear, so let's talk about crypto in general and how that's affecting your company.
[09:35:00]
KOSIK: Although the crypto winter, it seems to be falling a bit, it is, you know, what was happening with Bitcoin is it really is stuck in a narrow
range. It has been for a while.
And bitcoins price has seen an almost 70 percent drop in value, since it's all time high of 68,000. Talk us through how you've seen traffic in your
app change during that volatility? I mean, is there less interest in using your app when Bitcoin is just less buzz?
ADELMAN: No, quite the opposite. So you know, we're seeing an incredible amount of people, you know, start to wake up to what inflation is doing to
their currency that they know love and trust. And so they're looking for alternatives.
Some countries, you know, more than others are realizing they need something that has a set of parameters of exactly how much currency is
going to be in the market. So what people are doing right now is what they're calling stacking the dip, where they can actually earn Bitcoin when
you know, Bitcoin is historically in a low, but it's actually acting right now is almost a stable coin, you know, hovering around 20 to 21k.
KOSIK: Yes, it certainly isn't moving much, although today, so it was up one and a third percent, but it's neither here nor there because tomorrow
could be down the same as well. I'm curious, with the growth of Lolli, do you see, maybe expanding to considering even adding Aetherium on your
platform?
ADELMAN: So right now, we're very focused on Bitcoin adoption. You know, we think Bitcoin has already proven its value to society all over the world,
and served as a way to provide financial inclusivity to everyone.
I think other chains other crypto currencies are in its infancy. And with new regulation that's coming along, it's going to be interesting to see
what countries do, do they treat, you know these other currencies as security.
So, you know, do these other chains like Aetherium, you know, upgrade with the new merge and what happens there. So there's, you know, we're excited
about innovation, and we're excited about, you know, the human potential of what we can possibly do with new chains and new currencies.
But right now, Bitcoin is doing exactly what it set out to do 13 years ago, other chains are in their infancy, and we really want to be a conduit of
providing people with the best currency in the world, which we think is Bitcoin.
And as you know, other chains develop, you know, we are open to innovation and change, as our users demand it and our merchants demanded as well.
KOSIK: In September 2019, you said you're not open to being bought meaning Lolli. Do you still feel that way?
ADELMAN: Interesting question. I mean, look, my goal is to, you know, to take Bitcoin to as many people as possible. Right now we're, it's, you
know, you don't wake up every day, when you're building a company with an incredible team and think, oh, I want to get you know, I want to sell my
baby, sell the company.
You know, we want to grow; we want to bring Bitcoin to billions of people. And we're always going to look for the best ways to do that. So right now
just focus on growing by ourselves, but never say never if it meant growth.
KOSIK: What about an IPO? Is that in your future?
ADELMAN: That's more a cup of tea.
KOSIK: So you're definitely open to that.
ADELMAN: Yes, I like I like the idea of IPO-- Lolli and you know, it giving us the ability to you know, play in a public market and be more accessible
to everybody. We've, we've had a joke with our users from day one of like, you know, a lot of people say, you know, when Moon, a lot of people have
asked like when IPO.
So it'd be cool to you know, to run a public company and also give people the ability to invest in Lolli and play a part of the journey.
KOSIK: Yes, very exciting for lots of shoppers to really just have access to Bitcoin when they wouldn't otherwise think of it. It's so easy to use. I
was going through it yesterday, so once again, congratulations four years, great talking with you, Alex Adelman, CEO of Lolli.
ADELMAN: Thank you for having me.
KOSIK: Stay with "First Move", more to come after the break.
(COMMERCIAL BREAK)
[09:40:00]
KOSIK: In Sierra Leone the government is facing accusations that it's using a new cybercrime law as a legal cover to crack down on political dissent.
The law was supported by the UK and the European Union, but European officials say it was never meant to be used against free speech.
CNN's Katie Polglase has the story and a warning here. Some of the video is disturbing to watch.
(BEGIN VIDEOTAPE)
KATIE POLGLASE, CNN INVESTIGATIVE PRODUCER (voice over): On August 10, in Sierra Leone's capital Freetown people took to the streets to protest a
worsening cost of living crisis. Rising food shortages have left over half the population without enough food to eat according to the World Food
Program.
Protesters held rocks set buses alight. Authorities were quick to condemn the destruction which they said left eight officers dead with the president
of Sierra Leone in labeling the protesters as terrorists.
There was no mention of the number of civilians killed, which Reuters reported as high as 21. But it was the severe police crackdown both on the
street and online that is revealed worrying signs of a government suppressing freedom of speech.
UNIDENTIFIED MALE: Don't destroy the cars please. Move from here.
POLGLASE (voice over): The voice you're hearing is a 20 Gabriella Kojo (Ph) sitting on his balcony, he calls for those running past to be careful and
not damage the cars parked below. Just over an hour later, Gabriella would be dead.
His friend David whose name we have changed to protect his identity witnessed the shooting and first Gabriella was shot in the neck by Sierra
Leone's police.
UNIDENTIFIED MALE: He was totally harmless; he was not even part of the protest. He was at the balcony, watching the protestors.
POLGLASE (voice over): David's videos of the events are rare and risky. He told CNN he believes it was the sight of him and his friend filming that
made them a target for police.
UNIDENTIFIED MALE: The moment before Gabriella dies, I told him that they were firing live rounds, we need to back off, we need to get inside. But he
insisted. He said they were firing rubber bullets. But it was live rounds.
POLGLASE (voice over): CNN analyzed a bullet casing found at the scene which was confirmed by weapons experts to be from live ammunition. The
police have made no comment on whether they did use live bullets during the protests.
David's filming two hours before Gabriella's death revealed armed police standing on the streets below. You can see the red hats indicating is the
Operational Support Division, an armed unit of the police, which According to Amnesty International has a track record for shooting an unarmed
protesters dating back to 2007.
As other scenes of injured and bloody protesters across Freetown began to be shared on social media, the internet was cut off. By midday just half an
hour after Gabriella's death, net blocks recorded a total shutdown of the internet activity net blocks identified as an intentional disruption.
The next day a statement was issued by the Government's Department for cyber security warning that anyone spreading incendiary information online
could be punished with up to 20 years in prison. And the basis for this threat was a new cybersecurity law introduced in 2021 and backed by the EU,
UK and the Council of Europe.
[09:45:00]
POLGLASE (voice over): The law had aimed to safeguard intellectual property and privacy online and was part of a broader initiative by the EU and UK to
fund projects across Africa that tackled cybercrime.
In statements to CNN, the EU and UK delegations to Sierra Leone said they were engaging with the government on freedom of speech and protest. The
delegation encouraged all measures which lead to dialogue and refrain from repressive measures, the EU said.
And the Council of Europe said the spreading of incendiary information is not listed in the offences under the act.
POLGLASE (on camera): Do you think it's what the UK and EU intended for this law to be used by?
WISLAW GOZDZIEWICZ, FORMER NATO LEGAL ADVISER: Definitely not. I mean, neither the EU which is founded upon the basic principles of human rights,
nor any democratic states in the world, including the United States would even consider an attempt to limit the freedom of speech in such a manner.
POLGLASE (voice over): Reporters without Borders told CNN, any repressive provision of freedom of expression online must be repealed. And so they
called on authorities in Sierra Leone to highlight the fact the Act should not interfere with the rights to freedom of expression.
And for many in Sierra Leone who spoke to CNN, they said this law made them fearful to use social media to document what they witnessed during the
August 10 protest.
UNIDENTIFIED MALE: They don't want you guys to see it, the foreign Medias. They don't want the foreign Medias to be seeing these videos.
POLGLASE (on camera): Do you feel scared right now?
UNIDENTIFIED MALE: Of course, yes. I am actually expecting a physical assault, yes, but I pray it don't happen.
POLGLASE (voice over): Katie Polglase, CNN, London.
(END VIDEOTAPE)
KOSIK: CNN reached out to government officials in Sierra Leone for comment regarding the new cybersecurity law and also the Amnesty International
report, but have not heard back.
Coming up after the break, a Czinger of a car of this mean machine can tear up a race track the way it's built. That may surprise you.
(COMMERCIAL BREAK)
KOSIK: That's the roar of a street legal supercar that can reach 253 miles an hour and set a new lap record at the Laguna Seca race track. Well its
cockpit was inspired by a Lockheed spy plane.
The really radical thing about this $2 million American hyper car is the way it's built. Much of the Czinger 21C is made with 3D printed parts. The
company says there is no excess material and if something can't be used it can be recycled.
[09:50:00]
KOSIK: The first deliveries are set for next year and a limited production run of AD. And the 21C is the first of several planned models. While the
parent firm Divergent is already working with other carmakers, including Aston Martin, of James Bond fame.
I want to bring in Kevin Czinger; he is the CEO and Founder, great to have you with us.
KEVIN CZINGER, CEO & FOUNDER, CZINGER VEHICLES: Great being here, thanks so much. That was a great introduction. I appreciate it.
KOSIK: It's pretty easy when you look at that car and listen to how its engine roars, the 21C is, is really cool. And it's being called
revolutionary. Talk with us more about, you know, the construction of this car meaning is the entire car actually 3D printed?
CZINGER: So what's 3D printed are really the functional structures of the vehicle. So on an automobile; you're going to have a body. And then
underneath that body is the real structural frame, and the power train parts, the parts that really protect you in a crash and power the vehicle,
and those parts that protect you in the crash and power you in the vehicle.
All of those are generatively designed using supercomputing and AI, and 3d printed and automatically assembled in a full digital manufacturing
platform.
KOSIK: But the weight of the car is significantly less than a steel welded car. What about the safety factor of this?
CZINGER: What the machine when it's designing is also designing for crash concurrently with all of the other engineering objectives. So this vehicle
is as safe as any other normal vehicle because it's designed to meet all crash standards.
So the ductility, the crumpling the crash performance is engineered into the structures themselves.
KOSIK: Talk us through how you know the reality of how amazing this car is. It's got this Batmobile image but you want to focus on the methods of what
went into the manufacturing process.
Because from what I understand you're trying to actually change the way all cars are designed and manufacturers through your examples here.
CZINGER: That's correct. So if you look, it's really taking the automotive industry from to use an analogy, the typewriter era to Mac desktop
publishing. So we're normally when we're manufacturing, we're stamping a piece of flat sheet steel or flat aluminum, that's the same gauge.
This is using supercomputing and AI within a design space in three dimensions to create a perfectly optimized structure. And when you do that,
you're able to meet all of the performance requirements, but dramatically reduced the material and energy inputs.
And that's what we want to do across all of automotive, all of these physical structures, reduce material and energy inputs, make manufacturing
much more efficient, make the products much higher performing by making them much more optimized.
KOSIK: Would that stand up to mass production, though?
CZINGER: Yes. So if you look, Czinger Vehicles is this American brand LA based, that's there to provide really off the hook performance vehicles
across a number of different segments. The parent technology company, Divergent, last week, it was announced were already delivering at volume
frames for the Aston Martin Vantage.
We have half dozen major automotive brands that we're going to be supplying the structures for over the next few years. And the volumes of those
vehicles go up into the tens of thousands. So this is a technology, which is scalable, and is going to be fundamentally disruptive add volume.
KOSIK: How are the orders with the 21C you've got AD that are going to hit the market?
CZINGER: Terrific. I mean, the one thing that's been very heartening, and we were at Pebble Beach last week is, we're almost sold out of all of these
vehicles now. May people really look at this and they say this is an amazing American brand.
It's something that's discontinuous from whatever has been made before and what I tell people is, these are vehicles of historic impact and
importance. These vehicles signal the transition from the analog built world to a digital built world that is much more mass and energy efficient
and capital efficient and allows us to have much more high performing products will having much less impact on the environment.
[09:55:00]
KOSIK: Well, I must say even the look of it is just it's just incredible to watch that thing drive. I love it. I would love to feel how that is inside
the cockpit. Anyway, Kevin Czinger, CEO and Founder of Czinger Vehicles, what was that?
CZINGER: Come visit. We'll take you for a ride.
KOSIK: OK, maybe so maybe so. Alright, thanks so much for your time today. CZINGER: Sounds good, have a great day.
KOSIK: You too. And finally on "First Move", we love to end on a dog story and it was a case of love at first bark for Megan Markel, and Prince Harry
who saw this Beagle in need of adoption in Los Angeles.
Seven year old Mamma Mia is one of 4000 dogs saved from a facility in Virginia, a breeding facility. So they adopted her. The Beagle Freedom
Project has rescued 27 dogs so far and is expecting 50 more next month.
That's it for the show. I'm Alison Kosik. Follow me on the gram and on Twitter @alisonkosik, thanks for joining us. "Connect the World" with Becky
Anderson is next, I'll see you tomorrow.
(COMMERCIAL BREAK)
[10:00:00]
END
