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First Move with Julia Chatterley
U.S. Futures Flat, PPI Rose 0.4 Percent in September; Biden: There will be Consequences for Saudi Arabia; British PM Defends Mini-Budget in Parliament; Kyiv Government asks Ukrainians to Limit Energy Use; Wall Street Opening Flat after PPI Rose 0.4 Percent in September; NASA Confirms Mission to Change Asteroid Trajectory a Success. Aired 9-10a ET
Aired October 12, 2022 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:00]
(COMMERCIAL BREAK)
ZAIN ASHER, CNN HOST, FIRST MOVE: Coming to you live from New York. I'm Zain Asher in for my colleague Julia Chatterley. Welcome to "First Move".
President Biden saying that Vladimir Putin badly miscalculated his ability to invade Ukraine the U.S. President also says he does not believe that
Russia would use a nuclear weapon.
A CNN exclusive interview in just a few moments, plus a new round of Russian missile attacks in Ukraine at the latest. At least 7 people killed
at a major market and a major Southern city also struck by missiles a live report from Ukraine coming up.
Meantime on Wall Street futures are let's see here flat after the U.S. producers Price Index, which tracks wholesale prices rose about half of 1
percent in September, that's more than expected. This also comes a day after the NASDAQ entered its second bear market of the year. Stocks mostly
fell yesterday after the Bank of England said it will end its emergency bond buying program this Friday as scheduled.
Investors are also nervously looking ahead to tomorrow's key inflation data the U.S. consumer spending index. Let's get now to our top story, President
Joe Biden sat down with CNN's Jake Tapper for an exclusive interview to discuss a wide range of topics, including Russia's war on Ukraine.
(BEGIN VIDEOTAPE)
ASHER (voice over): President Biden giving a stark assessment of Vladimir Putin's invasion of Ukraine.
JAKE TAPPER, CNN HOST: Do you think Putin is a rational actor?
JOE BIDEN, PRESIDENT OF UNITED STATES OF AMERICA: I think he is a rational actor who's miscalculated significantly. I think he thought he's going to
be welcomed with open arms that this has been the home of Mother Russia and Kyiv and, and they were he was going to be welcomed. And I think he just
totally miscalculated.
ASHER (voice over): Russia's Military strategy has fallen short in recent months. And Ukraine has regained territory and its Eastern region. As a
result, Putin has weighed one of Russia's harshest bombing campaigns this week, hitting multiple civilian targets throughout Ukraine, including in
its capital of Kyiv.
At a fundraiser last week, Biden saying the world was the closest it has been to nuclear Armageddon since the Cuban Missile Crisis 60 years ago.
BIDEN: I hope when I was making was it could lead to just a horrible outcome and not because anybody intends to turn it into a world war ending.
But it just once you use a nuclear weapon, the mistakes that can be made the miscalculations, who know what would happen?
ASHER (voice over): On Saudi Arabia, Biden claiming the United States his relationship with the kingdom will be reevaluated after the Saudi led OPEC+
oil cartel announced plans to slash oil production next month, a decision criticized as showing allegiance to Russia.
BIDEN: When the House and Senate gets back. They're going to have to there's going to be some consequences for what they've done with Russia.
ASHER (voice over): Biden, not providing specifics, and continuing to defend his decision to visit Saudi Arabia this summer, where he met with
Crown Prince Mohammed bin Salman.
BIDEN: I wondered about making sure that we made sure that we weren't going to walk away from the Middle East. And what was going on,
ASHER (voice over): On the economy, Biden defending his administration's accomplishments.
BIDEN: I don't think there will be a recession. If it is there'll be a very slight recession.
TAPPER: Look, what we got done.
BIDEN: We passed so much legislation that significantly, it makes the point about you knows, for example, the American rescue plan the legislation to
deal with inflation. The inflation act we moved along. I mean, there's so much has been accomplished, that the idea that there's something there's
automaticity to recession is just not there.
ASHER (voice over): The President who turns 80, next month, saying he will decide after the midterms, whether to run for a second term.
BIDEN: Name me a President in recent history has gotten as much done as I have in the first two years? Not a joke, I believe I can do the job. I've
been able to do the job.
ASHER (voice over): And making this pledge.
BIDEN: We finally have action on guns. And by the way, I'm going to get an assault weapons ban before this, or I'm going to get that again, not a
joke, and watch.
ASHER (voice over): The President also commenting on his son's possible legal troubles. CNN has reported that Hunter Biden could face charges for
allegedly violating tax laws and lying on a gun application.
BIDEN: By the way, this thing about a gun I didn't know anything about it.
[09:05:00]
BIDEN: But turns out that when he did Made my application to purchase a gun what happened was he stayed I guess you get asked I don't guess you get
asked the question Are you on drugs you use drugs he said no made my application to purchase a gun. What happened was he stayed? I guess you get
asked. I don't guess you get asked the question. Are you on drugs? You use drugs? He said no. And he wrote about saying no, his book. So I have
confidence in my son. I love him. And he's on a straight, narrow and he has been for a couple of years now. And I'm just so proud of him.
(END VIDEOTAPE)
ASHER: In Ukraine, Russian strikes continue at least 7 people killed at a market and in Eastern Ukrainian town. Missiles also hit the City of
Zaporizhzhia and its suburbs. Let's bring in Fred Pleitgen, joining us live now from Kyiv with the very latest.
So Fred just in terms of the interview with our Jake Tapper, and of course, President Joe Biden, the headline coming out of there is that the President
says that, yes, look, Putin miscalculated here? But bottom line, he is a rational actor, despite the fact that there is clear fear that President
Putin could resort to more extreme ways to win this war, as it gets harder for him, walk us through that Fred.
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Alright, Zain yes, and of course, the extreme measures that many people fear could be
meant by that is tactical, or the use of tactical nuclear weapons on the battlefield has been quite interesting because as you know, Jake had that
interview with the President of the United States.
I also had an interview with the National Security Adviser of Ukraine. And they also said that they believe that this is something that there's a
danger of that happening. It's obviously something they don't believe is necessarily in the cards imminently.
But they also do say that the further they push the Russian Military back, the more the fear of that grows. And, you know, we were watching very
closely to see earlier today, when Vladimir Putin spoke at an energy conference in Moscow to see whether or not he would react directly to those
comments that the President of the United States made. The Russian President didn't do that. He talked about the Nord Stream pipeline, saying
it was an international act of terrorism that the pipeline was hit.
He also talked about the Kerch Bridge and blame to the Ukrainians for the attacks that happened on those on that bridge, but he used some very strong
rhetoric towards the Ukrainians. And certainly that is something that does lead to a lot of concern here and Kyiv and among many people who are
watching this conflict as well.
And then you have the Kremlin for its part, Zain. And it did comment on that interview that Jake Tapper did with the U.S. President, essentially
accusing the U.S. and European countries of being the ones who are talking about the use of nuclear assets or nuclear weapons.
So essentially, the Kremlin trying to turn all of that around while at the same time, you do sense that the Ukrainians, you know, they have it in the
back of their minds that the threat is there, but at the same time, of course, they do remain defiant. And they also say they are going to
continue to win on the battlefield, Zain.
ASHER: Just set the scene in terms of what's happening? Where you are now more missile strikes in places like Zaporizhzhia, for example, to set the
scene for where you are?
PLEITGEN: Gay, you know what, its missile strikes in places like Zaporizhzhia. And if you look at the Zaporizhzhia missile strikes,
according to the Ukrainian authorities, they say that S-300 missiles were used for those strikes, those are normally used to shoot down planes at
high altitudes. They're very inaccurate if you use them on the ground to ground way and so certainly if you use them in populated areas, the danger
of civilian casualties is very high.
Now the Ukrainian say no one was injured in those specific strikes, this time in Zaporizhzhia. But if we look at the past couple of days in
Zaporizhzhia, many, many people were killed and injured in strikes that happened there. In fact, within a span of only a few days, 43 people were
killed, the Ukrainian authorities said.
And then you have an Avdiivka in the East of the country, where the Ukrainian says a market was a hit. And 7 people were killed there. Here in
the Capitol, we did have air raid siren alarms, pretty much the entire time. It was on and off, but it pretty much happened throughout the entire
night. There were also some Ukrainian jets flying over the city, no impacts in the city itself.
And you do sense that defiance also here in the Ukrainian capital. That one site that was struck early Monday morning, where 5 people were killed in
the Ukrainians had already patched up the holes in the concrete there was traffic rolling again; it only took them about a day to actually patch all
of that to backup.
So you have the defiance, but at the same time, the Ukrainian authorities say they understand that the recent blitz of missiles that they faced from
the Russians and kamikaze drones, they say as well. They don't believe that by any means that that is over yet, Zain.
ASHER: Al right, Fred Pleitgen live for us there, thank you so much. And mean time here in the United States, soaring gasoline prices ahead of the
midterm elections are not exactly what the White House wants to see. It says that President Biden will work with Congress to reevaluate relations
with Saudi Arabia after the kingdom partnered with Russia to cut back oil production.
(BEGIN VIDEO CLIP)
TAPPER: Do you think it's time for the U.S. to rethink its relationship with Saudi Arabia?
BIDEN: Yes, and by the way, let's get straight why? When? I didn't go to one about oil, I want about making sure that we made sure that we weren't
going to walk away from the Middle East.
[09:10:00]
BIDEN: We should, and I am in the process when the House and Senate get back. They're going to have to there's going to be some consequences for
what they've done.
(END VIDEO CLIP)
ASHER: Rahel Solomon joins us live now. So Biden, they're saying that, look, there's going to be consequences for Saudi Arabia here. There will be
a price for the Saudis to pay what how what, what could that look like?
RAHEL SOLOMON, CNN CORRESPONDENT: Well, Zain there's really left the White House. And certainly Democrats done this decision, of course, coming as you
know, just weeks before the U.S. midterm election. And so we're already starting to hear legislation being proposed ways of which to get back at
Saudi Arabia in particular for this announcement from OPEC Plus.
So one legislation Zain that was introduced yesterday on Tuesday would limit or stop all U.S. arms sales for a year that would include things like
military supplies, sales and other weapons aid that proposal and legislation coming from Connecticut Democratic Senator Richard Blumenthal,
who also said that there is a very strong appetite in Washington to hit back at Saudi Arabia.
Now, I should say that this announcement from OPEC+ to reduce or lower production by about 2 million barrels per day. And it's true, experts Zain,
say that will actually look a bit closer to 900,000 to a million barrels per day. OPEC+ defending those production cuts, Zain that this was not
about the U.S. that they are preparing for the potential of a global recession and trying to stabilize oil prices.
ASHER: And just in terms of what President Biden has to do in order to shield Americans from higher oil prices, what are his options on that
front?
SOLOMON: Well, it's an interesting point, right? Because that these proposals don't get to that right, which is the gas problem here in the
U.S. or gas prices here in the U.S. And the truth of the matter Zain is that the President passed very limited options in terms of how to lower
prices in the near term whether they're on the way up or on the way down.
One suggestion being floated is perhaps the President could increase the reserves from the strategic petroleum reserves or increase more production
coming from the strategic petroleum reserves. But Zain, those levels are already at 40 year lows, because the President of course in the White House
has already been pulling from that reserve anyway, the other idea being floated.
The other potential, however, is perhaps easing sanctions on countries like Iran and Venezuela. But that does not come without tradeoffs. For example,
Bob McNally, the Former Energy Adviser for George W. Bush, telling our colleague, Christine, Romans recently that look, you know, you could do a
deal with Iran and get a lot more oil. But would that be good for national security?
And then when responding to Venezuela said, would that be good for national security and human rights and so forth? So Zain, the President doesn't have
a lot of short term options at his fingertips, and they certainly don't come without some tradeoffs.
ASHER: Right, Rahel Solomon live for us there, thank you so much. Right, British Prime Minister Liz Truss that she will not cut public spending to
fund her proposed tax cuts. Liz Truss faced questions in Parliament earlier today from the opposition for the first time since her mini budget
triggered economic turmoil.
(BEGIN VIDEO CLIP)
LIZ TRUSS, PRIME MINISTER OF BRITISH: What we're making sure is that we protect our economy, this very difficult time, internationally. And also
results as a result of our action, Mr. Speaker, and this has been independently corroborated, we will see higher growth and lower inflation.
(END VIDEO CLIP)
ASHER: Meantime, the Bank of England says that its emergency support will end on Friday. The bank had been forced to step in to buy government bonds
after the market turmoil left some pension funds on the brink of collapse. Joining us live now is Clare Sebastian from London.
So Andrew Bailey here saying that look, he'd stayed up all night trying to figure out a way to calm the markets. But in the end, he'd always been
clear that the bond buying would be temporary. Obviously, a lot of people not happy about that walk us through that Clare.
CLARE SEBASTIAN, CNN CORRESPONDENT: Yes Zain, there were no good options for the Bank of England here. If they stayed in the gilt market beyond
Friday continuing to buy these government bonds to sort of try to prevent dysfunction in that corner of the market, which was causing a lot of
turbulence for pension funds then those risks looking like quantitative easing at a time when inflation in the U.K. is it almost 10 percent.
And the Bank of England's main task right now is to bring that down by tightening monetary policy things like raising interest rates. But coming
out of the gilt market in this way with those very stark comments saying to pension funds, you have three days you've got to get this done, also caused
a lot of time I was seeing the 30-year gilt yield now over 5 percent.
That is not just staggering in terms of the scale of the yield, which we haven't seen in years but also because it's doubled in the past two months,
Zain. These are moves that you do not often see in the very quiet corner of the market. That is bond yields. So they are clearly still very spooked.
But the message from the Bank of England is that they cannot continue to be the lender of the last of last resort for pension funds.
[09:15:00]
SEBASTIAN: They are asking today that lessons be learned from this essentially that pension funds have to reduce the amount of leverage in
their portfolios to avoid this happening again, the question, of course, is three days enough for a market which just one day ago, the Bank of England
described as posing a material threat to U.K. financial stability?
ASHER: So it's really time for pension funds to get their affairs in order? What do they need to do to ensure their resilience here Clare?
SEBASTIAN: Yes, so clearly, they need to reduce the amount of leverage. I think part of the problem here was that, you know, pension funds have been
borrowing to buy certain financial products in their portfolios and when we saw the rise in interest rates in the fall in bond prices that triggered
margin calls on some of these assets.
And the banks had to sell in many cases, long dated gilts in order to pay that. But there's a bigger issue here, Zain. And that it's not just these,
these long dated gilts that are rising, yields are rising across the market for government bonds.
And that is partly a question of credibility in the U.K. Government. Why would you lend money to a government when you don't exactly know how
they're going to pay for that tax cuts. And you don't know how long they're going to be able to do what they're doing given the amount of political
turmoil here.
I think that is again, part of the message from the Bank of England that they cannot fix credibility in the government by stepping into the gilt
market. It will be up to the government to do that. And I think, Liz Truss's comments today about not cutting public spending raises further
questions, how will she pay for these tax cuts?
Is she's not going to cut public spending? Is she just going to ignore the ballooning deficit? Or will she have to roll back some of those tax cuts?
These are some of the questions being asked today.
ASHER: Yes, Liz Truss leaves a major conundrum for her. Clare Sebastian live for us there. Thank you so much. Alright, the French government has
ordered some striking gas refinery staff back to work as the country faces fuel shortages. Long lines, gasoline pumps have become common in France.
Petrol workers are demanding a pay hike to cope with soaring inflation joining us live now CNN's Jim Bittermann in Paris. Obviously, Jim massive
disruption here just walk us through how hard is that for motorists in France, to get their gasoline?
JIM BITTERMANN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, in fact, you could see it behind me here that one in three gasoline stations in France
looks something like this, which is to say they're either completely out of fuel, or they've run out of some varieties of fuel. And the lines here are
just incredible.
We've been here since early this morning. The line here goes all the way down to the corner. I don't know if you can see it down there, the corner
and around the corner. People tell me they've been waiting in line for about two hours or so to get their gasoline. And then of course, one thing
that does happen, something have changed from this morning is that they've run out of some gas.
Here's the lead free gasoline out now. So you can imagine your disappointment if you're waiting in line for two hours for lead free and
you get to the gas station and they don't have any all this is because the refinery workers are on strike six of the seven refineries in France are
being affected by the strike. And the unions are basically saying they want to keep the pressure on the government that one refinery is still operating
sort of normally.
And the government has ordered this requisitioning of employees as they can do for strategic industries and critical conditions. They're going to get
challenged on that input, but they can order workers to go back to work under the penalty of a $10,000 fine, and six months in jail, if they don't
go back to work. This would be just key workers have a need to keep the refinery running.
So they've ordered that and we'll see how that works, whether or not they'll be able to get some workers back to work. And like I said the
unions are challenging that in court saying and quite correctly so that the right to strike is guaranteed in the French constitution, Zain.
ASHER: Strike is demanding at least a 10 percent pay increase especially given the cost of living crisis there in France and also given the eye
watering profits of a lot of energy companies there. Jim Bittermann live for us there, thank you so much. Alright, still to come here. I speak to a
Ukrainian NP as deadly Russian missiles continue to bombard the country that's next.
(COMMERCIAL BREAK)
[09:20:00]
ASHER: Russian missiles continue to rain down on parts of Ukraine with at least 7 dead after Russian shelled a market and Eastern part of the
country. The Southern city Zaporizhzhia and its suburbs were also hit overnight as well as according to Ukrainian Military in the region. No
fatalities were reported there. This is the context, as NATO ministers meet today in Brussels to discuss the latest battlefield development.
Joining us live now is Kira Rudik, a Member of Ukrainian Parliament. She joins us live Kira, thank you so much for being with us. I understand that
you recently just traveled to Berlin for a major political conference. What message were you there to stand? And what sort of international assistance
does Ukraine need at this point, especially as Putin continues to hammer civilian targets?
KIRA RUDIK, MEMBER OF UKRAINIAN PARLIAMENT: Hello, thank you so much for having me. Well, our message remains clear. It's a frustration and pity
that on the eighth month of war, we are begging and asking our lives for the same thing that on the day one enough of the Air Force Protection
Systems to protect our skies, to protect our cities from being shelled, and to protect our people from being killed.
Because you can train with your guns, you can go in march to the front. But there is absolutely nothing that you can do with a huge piece of metal
going from the sky to kill you and your family. And I think the world have seen this over the last couple of days, we were able to intercept at least
half of the missiles.
So the distraction would be even bigger than it is right now. And 30 percent of Ukrainian energy infrastructure is destroyed right now. So we
see the movement and President Biden promised to give us more of air force production systems.
And even there are movements from Germany that they will finally give us the system that we need. The key difference in between two days ago and
today we have 30 percent of our energy infrastructure less, and the rebuild of that will also lie on the shoulders of our allies. And the lives of our
citizens cannot be returned.
So the question that we still have is, why, why, why not to give us their air force protection system that we need. We really need them for our
survival just so there would be another day. And this was my message in Berlin and this is our message throughout the world.
If you want us to be effective in potential interception of nuclear missile give us the Air Force Protection system because it will increase our
chances of actually saving the world. So we still are asking for fighter jets.
[09:25:00]
RUDIK: It is critical for us to have fighter jets. We need them to protect all our territories. Ukraine is a large country and we need lots of their
systems because so just to be able to say, OK, Zaporizhzhia nuclear station is safe.
ASHER: Right.
RUDIK: --are safe. And right now we already lost this time.
ASHER: And so Kira on Monday, after sort of the several bombings of civilian targets across Ukraine. We saw bombings, obviously in Kyiv, and
Lviv and Dnipro and various other parts of Ukraine as well. President Biden issued a statement essentially saying that look, in addition to the
billions of dollars, we've already given Ukraine.
We are determined to stand with Ukraine and support this country for as long as it takes IE there is no timeline here. We will support this country
for as long as necessary the U.S. basically saying that it really does have your back. Was that reassuring for you?
RUDIK: Yes, it was, indeed, along with the statement that we will receive more and more weapons. You see, we are not producing any weapons right now.
And we really need them. And so the oldest kinds of support are important, political support, information or support. But also the pragmatic support
of sending weapons to Ukraine.
Because though it was incredibly important for our soldiers to know that we will always have United States as our allies, as somebody who always has a
shoulder for us to lean on, at the time of need. It is important that we will be able to continue fighting and for that we need the weapons and for
that we need the financial support and we need to continue.
ASHER: And Kira, President Joe Biden spoke with one of our anchors here, Jake Tapper. And he basically said a couple of things. First of all, he
said that he believes that overall, despite what he said in the past about nuclear Armageddon, being more likely than it has ever been in 60 years.
He believes that Putin is a rational actor, and he does not believe that at this point. Putin is close to using a tactical nuclear weapon. Do you agree
with President Joe Biden's assessment? Is Putin a rational actor? And do you think it's highly unlikely that there will be a nuclear weapon used
here?
RUDIK: I think that we cannot rely 100 percent on the statement that Putin is rationale and things are changing very quickly, in this war, and in
political situation in Russia, and was Ukraine's counter offense and successes in the battlefield. So, personally, I do believe that Putin is
capable of using tactical nuclear weapons.
And what we learned in Ukraine is no matter what people believe we have to be ready. So I can tell you at home, I have a backpack with everything
needed for that potential nuclear threat for myself and my family because no matter what would happen, we need to be ready. This is what we already
learned the hard way.
ASHER: How much has what happened over the past sort of 48 hours; just in terms of you know, obviously, Putin has no problem destroying civilian
targets, no problem, obviously killing innocent people. How much is what has happened over the past 48 hours really strengthen the resolve of the
Ukrainian people to defend and continue to defend their country?
RUDIK: Honestly, it's transits our results a lot. First of all, because we have seen a difference in ourselves in our reactions, between what similar
situations of shelling and tensive shelling of Ukraine happening in the first days of war and right now. We are much more organized, we are
prepared, and we are ready. And we know that his aim was to destroy our infrastructure to make it harder to survive through the winter, but also to
break us.
Well I can tell you, we are heartbroken but we are not broken at all. And we know that whatever he does, is still goes with his plan that to kill us
and to deny our right to exist and we are fighting for the right to exist and we will be fighting on the harder we know that he would not stop unless
we stop him and we intend to stop him.
ASHER: Heartbroken but not broken. Ukrainians have only gotten stronger these past eight months Kira Rudik, thank you so much for being with us.
All right, we'll have much more news after the break.
(COMMERCIAL BREAK)
[09:30:00]
ASHER: All right, welcome back to "First Move". U.S. stocks opening flat on this Wednesday. Let's take a look and see here just down about 84 points or
so in terms of the Dow. The U.S. producer price index raised almost half of 1 percent last month that was faster than expected, the latest inflation
data also raising concerns over more aggressive rate hikes by the U.S. Federal Reserve.
Bitcoin remains under pressure floating at the 19,000 level; the crypto currencies are from last year's all time high by about 70 percent. But
there is plenty of excitement in the crypto world around Sam Bankman-Fried FTX exchange.
Growth is under regulation on the buzzwords here as it enters the UAE market with a license to operate in Dubai as a virtual asset service
provider, the first by the way of its kind.
FDA has also partnered with Visa to offer debit cards in 40 countries linking crypto to traditional payment providers, the billionaire they call
SPF has pledged to give away virtually all of this entire fortune. And interview with Julia Chatterley, she started by asking him about crypto
prices and whether were over the worst after the market meltdown.
(BEGIN VIDEOTAPE)
SAM BANKMAN-FRIED, CEO AND FOUNDER, FTX: I think that we've seen the worst unless there's sort of a general change in macro environment. You know, I
think that we've seen everything that's likely to blow it around here. But you know, I think that like if we saw a giant, giant sell off and risk
acids generally you could imagine that reverberating around with crypto.
You know, in terms of recession, to some extent, that's just a definition right? Like some people's definitions, we're already in a recession. And so
you know, I think that it really ends up being sort of a question of exactly how you see you know, see the details here.
What you want to say things even look like right now. But yes and I think that like it certainly if you saw you know greater basically greater you
know, fiat currency strengthening against for its assets that could trigger a sell-off in digital assets as well.
JULIA CHATTERLEY, CNN CORRESPONDENT: And you make a great point for the least wealthy in the world this is recession and what they're going through
now feels like recession --.
BANKMAN-FRIED: Right.
CHATTERLEY: --were vitally important point. Regulation, you mentioned it, elephant in the room, clarity would be a really good thing.
[09:35:00]
CHATTERLEY: I mean, you're probably the most powerful ambassador, let's call it that lobbyist, actually for the broader sector. And I know you're
in DC more than once a month, you're really optimistic that we see some kind of clarity and regulation within the year I've seen you quoted, I
speak to others who are far less optimistic. What gives you that confidence? What's coming? And why are you so sure it's coming - synth box?
BANKMAN-FRIED: Yes, totally. And, you know, obviously, I could be wrong here. I don't want to say that I'm, you know, 100 percent confident that,
you know, my take is going to be right here. But basically, I think we're just seeing on many fronts at once, a really big push from lawmakers,
policymakers, regulators, to get regulatory oversight and clarity in the industry.
You're seeing this with some of the bills that are being proposed, you know, those has been stabbing out bill in the Senate AG Committee; you're
seeing this with a wish for stable coin legislation. You're seeing this with the CFTC and the SEC, you know, working to, to oversee crypto
companies. You're seeing this with a lot of chatter from Fed from Treasury and others about Stablecoin oversight.
CHATTERLEY: I think there'll be a lot of people listening to this, they have their fingers crossed, and they're hoping you are absolutely right on
that point.
BANKMAN-FRIED: We'll see.
CHATTERLEY: This catch up going on and it's coming in and clarity, hopefully will be the upside of this. OK, I've got you in the chair now. So
I have to ask you about Twitter. And I'm sure there's a thing that you can tell me and that you can't tell me. But there is a rumor that you spoke to
Elon Musk, and then there was a decision to pursue being at least some part of the financing. You decided to let that rest. How does your vision
perhaps of what Twitter should be today different from Elon Musk's, what -- ?
BANKMAN-FRIED: Yes, it's a good question. And, you know, without commenting specifically on, you know, the, the goings on, you know, I think that like,
we don't know, for sure what Elon's vision will end up being and I don't think he knows for sure. I think he knows some pieces of this, right?
You know, he wants to clean up a lot of what's going on there. You notice that he wants to create a more efficient structure. I noticed that he wants
to create a more open and transparent structure in terms of, you know, oversight and transparency around, you know, what you can tweet.
I think that, you know, when it comes to things like decentralized or blockchain, Twitter, I think it's something that he's, you know, brought up
a few times, something he's maybe potentially interested in. I don't think it's something that we've seen sort of like, a whole lot of ultimate
clarity on what he; I'm not sure whether or not he sees that as something he has a definitive opinion on.
But I can say that, you know, from my perspective, like, you know, I would be really excited to see, you know, version of Twitter, where, you know,
there is a decentralized store, ultimately, of tweets that are going on, you know, where other platforms can interoperate with it, where you can
have multiple social media networks that share the same messages that pass them back and forth.
And you can break down some of the monopolistic barriers there. So that's what I would be excited about for it. And, you know, always excited, you
know, if it makes sense to, you know, play any role in helping that come about.
CHATTERLEY: So what you're saying is Blockchain should be part of at least some of the running of the solution of how Twitter operates. And I'm sort
of reading between the lines, just to be clear, if anything changes in the future, you're still open to being part. Part, notice this.
BANKMAN-FRIED: It all depends on the details, but super open to, you know, being part of, of working through this. And I think, you know, in some
cases, that might mean being part of, you know, the running of it. But that's, you know, not something I want to give any sort of competence
statements on because really, in the end, this does depend on the details.
CHATTERLEY: I agree. But Elon, if you're watching, some still ready for a phone call, plus another phone call. Visa, the deal with Visa, I have to
ask about this too, because there's certainly some irony there and that's the hope of the crypto sector making some of these big payment giants ever
superfluous.
From Visa's perspective, I can understand if you can't beat them, join them. What does it mean for you guys? And is this about being an on ramp
for greater adoption of crypto and utility of crypto going forward?
BANKMAN-FRIED: Yes, that's absolutely a lot of what it is and I think that you know we're really excited to work with traditional payments companies.
I think that that's sort of a really healthy way for them to purchase, you know, thinking about how they can you know, help build out some of this new
financial structure.
(END VIDEOTAPE)
ASHER: Now a smashing success for NASA, it says it has changed the path of an asteroid after deliberately crashing into it.
UNIDENTIFIED MALE: I - visual confirmation.
ASHER: Last month's DART mission was a test to see if an asteroid could be moved just in case it was heading towards the earth. The first time those
humans have actually managed to move a celestial body.
[09:40:00]
(BEGIN VIDEO CLIP)
BILL NELSON, NASA ADMINISTRATOR: Now this is a watershed moment for planetary defense and a watershed moment for humanity.
(END VIDEO CLIP)
ASHER: CNN Space and Defense Correspondent Kristin Fisher has more.
KRISTIN FISHER, CNN SPACE AND DEFENSE CORRESPONDENT: Well, Zain, what we've learned is that this mission has exceeded even NASA's expectations. We
already knew that NASA's DART spacecraft had successfully hit its target asteroid Dimorphos about two weeks ago.
What we didn't know was if NASA had succeeded in achieving its primary objective, which was to actually move that asteroid just a little bit off
its current orbit. And so yesterday, NASA confirming for the first time that yes, they had done it, they had proven that for the very first time
humanity had successfully moved a celestial object in the universe first time that's ever happened.
And so what NASA announced was that they were successfully able to tighten Dimorphos's orbit around a larger asteroid called Didymos. Before, the
orbit was about 11 hours and 55 minutes; they were able to shorten it by 32 minutes, which is about three times more than what NASA was expecting.
And so the reason that this is significant is because they prove that this kind of kinetic impact technology, which is, you know, fancy NASA speak for
essentially just nudging an asteroid, they prove that this technology can actually work. Now, this asteroid posed no danger to earth or humanity.
But if there ever were an asteroid in the future that was on a collision course with Earth, NASA's first planetary defense mission has proven that
this type of technology could potentially save it all. Save us all.
If and this is a big if saying, if NASA detects this asteroid early enough, they would have to detect an asteroid many, many, many years in advance in
order for this type of deflection to actually work, Zain.
ASHER: Alright, that is it for the show. I'll be back with "One World" in a couple of hours. Marketplace Asia is up.
(COMMERCIAL BREAK)
[09:45:00]
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: The 15th round of the 2018 Formula One World Championship, arguably the most spectacular, it's the Singapore Grand Prix.
KRISTIE LU STOUT, CNN CORRESPONDENT (voice over): Dazzling loud and high octane Singapore's F1 circuit in 2018, as seen on the popular Netflix
series Formula 1 Drive to Survive. At the time, no one could have predicted the Coronavirus that would shut down the global economy and major sporting
events along with it. But this month after a two year hiatus, Formula 1 is back on Asian soil. I
STOUT (on camera): I'm Kristie Lu Stout here in Hong Kong. And on this episode of Marketplace Asia, we look at the business of F1 in Asia and its
economic impact on the region, plus the humble company that has grown into one of the largest pewter manufacturers on the planet. We go inside the
century old Malaysian company to find out how it plans to survive in a digitized post pandemic world.
STOUT (voice over): Suspense celebration, an unexpected beauty, a rare perspective on the internationally popular Formula 1 championship on
display here in Hong Kong's foreign correspondents club.
STOUT (on camera): But the last time spectator saw scenes like this with their own eyes here in Asia, was in 2019.
STOUT (voice over): Since then, Formula 1 has rebounded from the pandemic, revenue surpassed $2.1 billion in 2021; almost double that of 2020 and more
than 5 percent above 2019.
STOUT (on camera): My colleague Amanda Davies spoke to F1 CEO Stefano Dominical about the return of the sport to the region.
AMANDA DAVIES, CNN SPORTS ANCHOR: Tell me what does it mean to Formula One to be back in Asia this year?
STEFANO DOMINICAL, CEO, FORMULA ONE GROUP: Well, actually a lot. We were feeling, you know, the fact that we were too many years out of Asia for the
reason that everyone knows, but it's great to go back.
STOUT (voice over): The Asia leg of this season's championship kicked off at Singapore's Marina Bay. The five kilometer street circuit is a favorite
amongst drivers and spectators tickets worth nearly $7,000 sold out within hours and then onto Suzuka, home of the Japanese Grand Prix since 1987 and
some of the sport's most colorful fans.
DAVIES: From a personal perspective, what have you missed about Singapore and Japan?
DOMINICAL: I can start from Japan; the Japan is one because it reminds me the first victory world title with Michael in 2000. That was an incredible
event. I know that everyone loves to be there, as everyone loves to be Singapore, different kind of place, different kind of atmosphere. And there
has been an incredible, you know, vision when we went there in 2008 to have a night race. You know, it's all different dynamic.
DAVIES: Where do you see Asia and its place for Formula 1 these days?
DOMINICAL: Asia is very important for our future. We want to invest we want to still grow the business there. There is a real lot of attention coming
from that specific region of the world and is our duty and commitment to make sure that we are focalized in the best place that we can be offering
the right strategic market to develop for our partners for our teams for our stakeholders.
DAVIES: How much of a sports growth in a region is dependent on the drivers? We've got Yuki Sonoda from Japan, Guanyu Zhou from China.
DOMINICAL: I think a driver represent an aspirational face and in all the sport and everywhere in life, you know, they are very, very important for
the growth.
STOUT (voice over): China the world's second largest economy is a potential growth market for the racing series. On Chinese platforms such as Weibo,
WeChat and Douyin F1 says its following in 2021 grew 39 percent from 2020. And this season, China's first ever full time driver Guanyu Zhou made his
debut for Alfa Romeo.
Expectations are high for the Shanghai born rookie on and off the track. Many believes Zhou could open the door for new sponsors and fans in his
home country, as could the return of the Chinese Grand Prix.
DAVIES: So I must ask you about China, a race that hasn't yet come back for this season. What do you think are its prospects for 2023?
DOMINICAL: We really hope that we're going to have and hosted racing Chinese Shanghai. As you know this is not only in our hands but you know,
we are really hoping that for the time of the year when we have the race as traditionally is in April, you know, everything will be cleared to start
wherever an international sport business going back to China.
[09:50:00]
STOUT (voice over): As Formula One contemplates its future racing calendar; countries weigh up the costs and benefits of hosting the championship. A
Grand Prix set Singapore back as much as $97 million each year, with the government putting 60 percent of the bill, while tourism revenue from the
event is around 90 million each year, according to Singapore's Ministry of Trade and Industry. But the impact of Formula 1 extends far beyond race
weekends, experts say.
JAMES WALTON, SPORTS BUSINESS GROUP LEADER, SOUTHEAST ASIA, DELOITTE: A media value of hosting a Formula 1 Grand Prix in a place like Singapore is
probably around 70 to $75 million. 80 to 90 percent of the costs of hosting Formula 1 go back into the economy in the form of that it is local
Singaporean SMEs that are doing the construction, the technology and the hospitality side of things.
STOUT (voice over): But surging demand comes with challenges. Like economies around the world, Singapore is grappling with rising costs of
materials, energy and wages.
WALTON: So there will be inflationary pressure on the organizers and on things like food and beverage and trackside hospitality as well.
STOUT (voice over): For the drivers and the businesses involved in Formula 1, the goal is the same to beat the competition and triumph no matter the
odds.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
(BEGIN VIDEOTAPE)
STOUT (voice over): In a corner of Hong Kong central district stands this former dairy farm depot turned Press Club. It was built in the late 19th
century and passed down through generations of owners who renovated and reinvented over the decades. Elsewhere in the region another institution is
building on a century plus legacy and adapting with the times. My colleague in Malaysia Will Ripley has more.
WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): First you heat up a mixture of tin, antimony and copper. Then pour the molten metal
into molds, trim, polish, hammer, and buff until it gleams. A process family owned pewter company Royal Selangor has perfected over the past four
generations, now at the helm, Cousins, Chen Tien Yue and Yong Yoon Li.
RIPLEY (on camera): Your great grandfather started.
YONG YOON LI, MANAGING DIRECTOR, ROYAL SELANGOR: Yes. So when he started the business back in the late 1800s Malaysia or rather Malaya at that point
in time Kuala Lumpur in particular, Tien was abundant. The Chinese community was growing so he made products for the Chinese community.
RIPLEY (on camera): Like what?
LI: You know, Basin's, incense burning, containers, tea caddies.
RIPLEY (voice over): As more Westerners came to Malaysia, the Pewter Smith expanded his product offerings to coffee pots, cigarette cases; a sign of
the business savvy that would help Royal Selangor survived the great depression and two world wars to become one of the world's biggest Pewter
manufacturers.
Today the company says it employs more than 250 craftspeople and exports to more than 20 countries. Here at the Visitor Center in Kuala Lumpur, you can
see why. Royal Selangor sells more than thousand products ranging from the decorative to collectible and surprisingly functional.
LI: So let's open up. We saw this everywhere.
RIPLEY (voice over): Prices start at $6 up to about 70,000 gensets.
RIPLEY (on camera): What's been the biggest change that you've seen in the family business?
LI: We've had an online shop for the longest time, one of the first online shops in the world. In 2001 we started royalselangor.com, over the last
four or five years and this is accelerated by COVID the pandemic right. We've seen a lot of growth not only just on the sales point, but the way
that we market the way that we tell our story, you know, whether on social media or on other digital platforms.
[09:55:00]
RIPLEY (voice over): The pandemic changed how Royal Selangor sold. The company shut down some brick and mortar stores, expanding its e-commerce
offerings. It also changed what its soul, gensets.
CHEN TIEN YUE, EXECUTIVE DIRECTOR, ROYAL SELANGOR: So what COVID forced us to do was figure out what our customer's passions were, and to try to focus
on those things. So in a way, you know, the fact that we did so many collectibles was because we found these communities of fans who loved Star
Wars and Marvel. It's a great way of connecting with new fans, new generations of customers.
RIPLEY (voice over): And find vital new streams of revenue, like manufacturers across the planet, royal Selangor is facing rising costs of
raw materials, freight and fuel. The company says it has raised price tags, but it's also finding ways to bring more ambitious, modern inventions to
life.
YUE: We've had to think about how to digitally scope that's a new skill that we built. And when we did that, with 3d printing, it is able to get
one additional level of detail that we couldn't include.
STOUT (on camera): And before we go, let's take you in the market for look at the region's remarkable events expos and marketplaces, this month,
Shenzhen.
STOUT (voice over): This is Asia's largest electronics market. Vendors sell gadgets of all shapes and sizes, from microchips to sensors. Buyers can
then build phones, drones, anything really. We call the - Bay District market, a laboratory for innovation back in 2018. When we last visited,
it's worth some $28 billion in annual sales according to Chinese state media.
But that ground to a halt in August when authorities locked the market down due to a rise in Coronavirus cases. China is the world's last major economy
still enforcing strict anti COVID measures, which can in turn affect the global supply chain. Shenzhen produces most of the world's electronics.
Today innovation here has resumed the market is back open for now.
(END VIDEOTAPE)
STOUT: And that's it for today's show. As ever for more on these stories and others, check out our website just goes to cnn.com/marketplaceasia, I'm
Kristie Lu Stout in Hong Kong; I'll see you next time.
(COMMERCIAL BREAK)
END
