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First Move with Julia Chatterley
Kyiv Mayor: Water, Power fully Restored in City; Foxconn Employees in China Flee COVID Lockdown; Chinese Leader Consolidates Power in History- Making Era; U.S. Stocks Rally on First Day of November; SAIE Launches Initiative to Raise Funds for Reproductive Rights; Stephen King Slams Reported Plan to Charge Blue-Tick Accounts. Aired 9-10a ET
Aired November 01, 2022 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:00]
(COMMERCIAL BREAK)
JULIA CHATTERLEY, CNN HOST, FIRST MOVE: A warm welcome to "First Move". Another great show on tap forgive the promote on Wall Street the bulls
sounding a more positive note.
I keep that policy meeting starts when they rock the boat. Elon Musk fires Twitter's board battling corporate bloat. And one week before the U.S.
midterms vote huge oil profits getting President Biden's gloat BP and Aramco posting huge profits today.
Definitely no time to gloat or more it's a new month of trade and stock market futures are, yes, a float. Green arrows on the screen and Europe
sold today too. As you can see they're higher by more than half a percent, one and a half percent there.
The Fed set to raise rates by another jumbo three quarters of a percentage point tomorrow. But Investors believe a slowdown in the severity of hikes
is nearer. Any indication of that of course is going to be absolutely key for sentiment hopes for is still elusive.
Jay Powell pivot helped the DOW post its biggest monthly gain since 1976 last month. A rise of near 14 percent as you can see on the screen in front
of you the tech heavy NASDAQ was a winner too despite weak results from Big Tech though both markets of course starting from a very beaten up base
level.
Oil firms with the outperformance as blockbuster earnings gush in Exxon Mobil rising 20 percent last month. In fact, it's up 80 percent this year
so far similar October gains for Occidental Petroleum to that's up 150 percent since January. That said a volatile day of trading for all majors
on Monday after U.S. President Biden discussed windfall taxes targeting the industry.
Biden blasting Big Oil suggesting they are profiteering from the war. Escalating rhetoric but tax hikes would need congressional approval of
course too. Future all profits depend, too on whether China can jumpstart growth held back by zero COVID policies too.
Asia rallying today after social media speculation that zero COVID policies in China could be relaxed, highly doubtful, at least at this stage. I think
especially with Shanghai Disneyland shutting down and Foxconn assembly workers fleeing the factory compound protesting health conditions.
A live report from Beijing coming right up we'll also discuss China's Outlook with China critic Kyle Bass, the CIO of human capital coming up
later on in the show. But first, we begin once again in Ukraine, where water and power have now been fully restored in Kyiv.
According to the City's Mayor, that's just 24 hours or so after Russian missiles struck critical infrastructure in the Ukrainian capital. And in
other developments more ships have been able to leave Ukrainian ports today despite objections by Russia. Moscow has suspended its involvement in a
U.N. brokered grain deal as we were discussing yesterday.
And Western officials say Iran is preparing to send additional weapons to Russia, including ballistic missiles. Let's get straight to Salma Abdelaziz
in Kyiv for us. Salma, good to have you with us!
Incredible work, I think by authorities and workers there to reestablish both power and water connections in Kyiv. I guess that the fundamental
question is how long for? Talk us through what they've managed to achieve? It's pretty huge.
SALMA ABDELAZIZ, CNN CORRESPONDENT: Absolutely, local officials say that they worked around the clock 24 hours through the night to bring back
restore water and power services. As you mentioned, this was quite a severe attack yesterday. 80 percent of the city's rested residents after that
barrage of missiles were fired.
80 percent of the city's residents here in the capital did not have access to running water. Hundreds of 1000s of homes were without power. But the
mayor saying look yes, we have it back up for now.
But we still have to be prepared that the infrastructure of this country is absolutely fragile. It is precarious. It is not a guarantee he's played
with families to store water at home to conserve energy where they can.
And officials are taking steps all across the country really to try to prepare in the winter months. Delaying train times, running less trains,
having scheduled power outages, cutting off streetlights, whatever possible ways and means they can conserve energy. They are taking those steps and
we've also heard that officials say Ukrainians are running out of the equipment they need to even repair power grids.
So there is a plea now from President Zelenskyy to the International Community. It has allies and partners to provide more equipment. He's
asking for generators. He's asking for power equipment, anything that can help this country go through the winter.
[09:05:00]
ABDELAZIZ: But again, you're looking at an infrastructure that has now sustained weeks of damage. All it takes is a couple of Russian missiles to
go through and massive suffering occurs, Julia.
CHATTERLEY: As you said, fragile and I think unfortunately, it's the perfect word here. At the same time a relatively high profile Russian
denouncing his citizenship on Instagram. What can you tell us about Oleg Tinkov?
ABDELAZIZ: Yes, this is quite a rare move, not something we witnessed before. But billionaire Russian banker, Oleg Tinkov, he gave up his Russian
citizenship after posting on Instagram. And I'm going to read you what the quote said, "I cannot and will not be associated with a fascist country."
That started war with a peaceful neighbor. That's what he posted on his Instagram, it was later taken down. It's not the first time that Tinkov has
opposed the war openly and publicly.
However, it is important to note that he was in March sanctioned by the U.K. for "supporting the invasion here". That would include of course,
asset freezes, travel bans. But it's still a very rare comment we're hearing here.
There was one other Russian billionaire who's done something similar the Founder of Revolut's, Nikolai Storonsky; he had also renounced his Russian
citizenship but again, a very rare move. We've seen sanctions rolled out over the course of this conflict, billionaires having their yachts taken.
But at the same time that has done little we see to really break the base around President Putin. So a really rare move here and we'll see what the
consequences but the rollout might be from that. And again, this is a billionaire, someone who is behind a huge company. So it does begin to
indicate what are the concerns when it comes to the financial services for these Russian billionaires?
CHATTERLEY: There's a PR battle and moral battle, in addition to many others going on here. And these moments are worth noting, I think. Salma
great to have you with us! Thank you, Salma Abdelaziz there in Kyiv.
OK, let's head to Brazil now where for right Leader Jair Bolsonaro still hasn't conceded after losing the Presidential election on Sunday. Bolsonaro
expected to address the country today, as fears grow that he might refuse to accept the results and set off political unrest overnight.
Some of his supporters blocked highways and major roads protesting those election results. Paula Newton joins us now from Sao Paulo. Paula, we were
worrying about this yesterday.
There's the political aspect of this with the Brazil Supreme Electoral Court already stating that Lula is won. But for the people and those who
support Bolsonaro a different story. What are we expecting him to say today?
PAULA NEWTON, CNN CORRESPONDENT: Well, we do expect to hear from President Bolsonaro today. The issue is, is it already too late? You know, and when
we talk about these protests and Julia, you know how critical it is for Brazil, to really get on with the goal of economic growth.
The fact that their goal in all of this has to be that there will be a peaceful transition and that this economy, these people can continue on
with their lives. And really try and grow this economy in a way it hasn't been able to in the last decade.
Instead, what do you have Julia, you have voters Bolsonaro supporters telling us that they will stay in the streets until Bolsonaro is declared
the winner because that's who they believe won this election. Listen.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: We have a President that won at the ballot box. And there's the front of the ballot boxes to put the other candidate ahead. And
we're against that.
UNIDENTIFIED MALE: Even if Bolsonaro accepts that people will not accepted because the power comes from the people. The people are the ones who put
Bolsonaro there, and we're the ones who would remove him as well.
(END VIDEO CLIP)
NEWTON: What's interesting here, Julia is the fact that U.S. allies have Bolsonaro continues to say that they understand that this disruption cannot
be tolerated. We just had a press conference from the governor of Sao Paulo state here. He is talking about trying to remove a lot of the protesters
saying that he will do it quickly.
And that the military police will remove everyone by force if they do not go willingly. But Julia, obviously, no one wants that escalation and given
up at a point in time when Brazil needs a very peaceful transition to the Presidency of Lula da Silva. Many are now watching the President to see if
he can even do anything to really remove the protesters.
Because at this point, some of them have even told us Julia, that they don't care what he says. Even if he concedes they are not ready to concede.
And again, it reflects such a division in this country that we saw right through the campaign, Julia.
CHATTERLEY: Yes, got to act in the greater good of the country now. Paula Newton, thank you so much for that. We'll see what he says later today.
[09:10:00]
CHATTERLEY: A year and a half after he was ousted. The Former Israeli Prime Minister Benjamin Netanyahu casting his vote in the nation's fifth election
in four years attempting a political comeback his hopes of forming a 61 seat majority government could rely on the support of Israel's most far
right politicians Hadas Gold joins us now from Jerusalem.
And she's watching that vote. Hadas that's the question obviously, we have no idea of the result yet. But the question is, in order to reach a
majority; will you have to make some serious compromises with those on the far right of the country's political system? You have spoken to him? What
did he have to say?
HADAS GOLD, CNN CORRESPONDENT: Yes, Julia, I'm outside of a polling station. This is actually where Benjamin Netanyahu voted cast his own vote
earlier today. Behind me, you can see the posters lining the way into the polling station candidates trying to last minute convince voters to vote
their way.
And although this is the 5th time in just 3.5 years that Israelis are going to the polls. It's different this time most markedly is that for the first
time in 13 years, when Benjamin Netanyahu cast his ballot this morning. He did so not as the sitting Prime Minister of course.
He was ousted more than a year and a half ago by that coalition formed by the current Prime Minister, Yair Lapid. What's also different this time,
and really what for many is at stake here is the rise of the far right of Israeli politics. And that's because as you noted, in order to likely form
a governing coalition.
Because Netanyahu's own party, Likud will not get enough seats to get that 61 seat majority in parliament. He will most likely need to rely on a
growing far right party. One of their leaders, Julia was in the past convicted for inciting racism and for supporting terrorism.
And so there is a question about how much will he be relying on them? And how much power will they have in a new government? I asked him that
question earlier today, take a listen.
(BEGIN VIDEO CLIP)
BENJAMIN NETANYAHU, FORMER ISRAELI PRIME MINISTER: We don't want a government with the Muslim Brotherhood, who support terrorists and deny the
existence of Israel and are pretty hostile to the United States. So that's what we're going to bring up.
(END VIDEO CLIP)
GOLD: And so Julia, as you can tell, he didn't exactly answer my question. What he was referring to is the fact that this current coalition government
has for the first time in history, an Arab Israeli party sitting with them. Now, polls leading up to Election Day did show that the pro Netanyahu block
of parties are the closest to that 61 seat majority needed to have ruling government.
But not all the polls had an even reaching 61. So it's really kind of a razor thin margin. Now, the anti-Netanyahu block has fewer seats. As we all
know, the voter turnout is really depending on who will actually win in the end. Will it be the pro-Netanyahu voters who come out in force?
You know, the Likud his party official's say that they believe something like hundreds of thousands of voters let were sat at home last election and
didn't come out to vote. Or will it be the 17 percent or so of Israeli Arabs who will come out and vote and help boost the anti-Netanyahu block?
But Julia, what's really interesting so far is despite the fact this is the fifth election in less than four years, turnout so far is the highest it's
been since 1999, Julia.
CHATTERLEY: Wow! So people certainly feel motivated to vote if, if nothing else. And I agree with you that was a perfectly a politician like response
to it to a good question. And well done for dealing with my endless question at the beginning of this conversation to try and trip you up a few
times to we shall see what happens. Hadas Gold, great to have you with us, thank you.
And be sure to watch our live coverage of Israel's election results as the polls close later today. That's 8 pm in London, 10 pm in Tel Aviv, right
here on CNN.
Now to India, and this is all that's left after a bridge collapse that killed at least 150 people. Police have arrested nine individuals in
connection with the accident which happened after the bridge recently reopened after scheduled maintenance. Those in custody are all linked to
the company that worked on the bridge during that time.
The Indian government has agreed to compensate families of the victims. Earlier Prime Minister Narendra Modi visited the scene.
And China showing no signs of ending it zero COVID policy just take a look. At this video some employees of Apple supplier Foxconn fleeing a factory in
Central China after a COVID outbreak forced them into lockdown. The company has quadrupled daily bonuses to $55 in an effort to retain workers.
Meanwhile, the City of Shanghai abruptly locked down Disneyland ordering all visitors to stay until they get a negative COVID test. Selina Wang
joins us now - she's back in quarantine in Beijing. Selina, you know what Quarantine is like after your back and forth traveling and the restriction.
So we hope you're doing OK under those conditions but just talk us through. They're clearly trying to encourage workers to remain. But when you're
faced with the prospect of being locked into a building as a result of COVID policies, you understand people's reluctance?
SELINA WANG, CNN CORRESPONDENT: Yes, Julia, I'm starting to lose track of how many quarantines I've been through since the pandemic started.
[09:15:00]
WANG: I'm on day 2 of 10, here in Beijing now. What this chaos at that pseudo factory represents is just the intense struggle that international
business does still face in China that's Zhengzhou factory. It is the biggest iPhone plant in China in the Central City of Zhengzhou.
So workers there they are fleeing these COVID restrictions. They had been flooding social media in recent days over the lack of quality food that
difficulty in getting enough food and the subpar living conditions. We can just take a look at that social media video again; you're seeing workers
flee in mass by foot, walking miles and miles, some of them across highways.
There are other videos that show them with their entire luggage walking through foreign fields going through these intense distances just to get
away from that factory. Now, this could have a big impact on Apple, especially during a critical time period, Julia we're getting close to that
holiday season. According to counterpoint research, they estimate that 10 to 30 percent of iPhone 14 production could be impacted in the near term.
If the situation doesn't stabilize, analysts estimate that this Zhengzhou factory. It accounts for as much as 85 percent own assembly capacity. So
this is a major deal. But some of these researchers are saying they do see the stabilizing in the coming weeks as the situation gradually improves.
But look zero COVID, it's still having a massive disruption on people's daily lives on businesses. That entire City of Zhengzhou in fact, which has
more than 12 million people it's been under lockdown since late October. And it's not just the City of Zhengzhou.
There are many places under China that are still going under lockdown in year three of the pandemic. Would all of this is reminding global
businesses the harsh lockdowns, the harsh border control rules, which I'm living through myself?
They are reminders to global businesses that China may not be as reliable of a place for global production as they once thought. We are seeing Apple
trying to diversify their production. They are increasing capacity in India in order to reduce that --.
CHATTERLEY: Oh, and we just lost her. Speaking of less reliability I think we lost the internet connection there. I will thank Selina Wang. But we
will continue this conversation straight ahead.
As Selina was saying zero COVID continues as President Xi's political group of course also tightens. What will this all mean for the West for doing
business for global growth? And of course for Taiwan insight from longtime China watcher and critic too, investor Kyle Bass plus, reinforcing
reproductive rights one beauty brands packing a real punch with profits that's coming up too stay with us.
(COMMERCIAL BREAK)
[09:20:00]
CHATTERLEY: Welcome back to "First Move", and as we saw before the break the fleeing of Foxconn employees shows no sign of a shift in the zero COVID
strategy in China. Rebutting hopes I think of a relaxation of measures following China's Communist Party Congress. It was a week that saw
President Xi shake up the party's leadership installing those most loyal to him while removing those perceived to have a greater focus on things like
reform.
Our next guest says she appears to have installed "A War Cabinet". The question is what next? Kyle Bass, a longtime China critic and Investor
joins us now on the show. Kyle, always fantastic to get your insights! Welcome back on the show.
I just want to take and get your take. We saw, I think a chilling effect on Investors in China's financial assets. We also I think around the world saw
those images of the Former President Hu Jintao being physically removed from that Chinese Party Congress as well. Overall, what was your take and
days later now that you've had time to assess? What was your view?
KYLE BASS, FOUNDER AND CIO, HAYMAN CAPITAL: Well, Julia, first of all, it's great to be here. I think it's really important to analyze exactly Hu he
sacked and who he replaced them with on in the both the Politburo the Central Committee and even the Central Military Commission. What he did is
he publicly humiliated the former leader of his predecessor who Jintao by physically removing him from the closing ceremonies of the 20th Party
Congress.
But he also removed any Hu Jintao Loyalist or anyone relevant related to the - basically the reform and opening or their Communist Youth League that
Hu Jintao was known as kind of the head of. And so he replaced anyone that was a reform an opener with the spy chief, the Head of the Ministry of
State Security with the Police chief, Military Police chief, the Ministry of Public Security.
And then he took a weapon's boss, the Head of the manufacturer of China's weapons. And added him to the standing committee or not the standing
committee, the Politburo and he took the person in charge of assimilating the Uighurs and committing the cultural and ethnic genocide Xinjiang.
And added him to the Politburo with you, basically, he took out anyone that was a reform and opening or market space. And replaced them with military
police weapons and operational, no house. So it looks to me it looks clear as day that he installed the war cabinet.
And it's something that the press and the international community has missed so far. Something that Matt Parker at Garner group has pointed out.
And so far, the only person I've seen catch it is they remove the words reform and opening from any mention in the party charter.
And they replaced it with the term great struggle. The most interesting part about the seven instances of great struggle in the party charter is
when China delivered the English language version of the new party charter to the press. They intentionally mistranslated the great struggle and put
words like fight in there.
And let's say they mistranslated it and six out of the seven times into something that wasn't as damning as the great struggle. So I think it's
important to note that the tectonic shifts in the architecture of the Politburo, the Central Committee are showing her a war footing.
CHATTERLEY: OK, so there are two things here. The sort of translation error that you're talking about my Mandarin snuck up to the translation. So I
can't say that I'm independently verified that.
But I have seen talk of it, as you point out as well. There's one thing that's what it means domestically, and that sort of power play and what it
means if you remove people that have promoted sort of reform. Better international relations, for example, and how you, as a country continue to
grow, to support jobs, which is also crucial for China.
But also what it means outwardly, what it means for relations with the international community with the United States? What it means for Taiwan,
in the shorter term, and in the longer term? Kyle, just give me your sense of how China manages to maintain domestic stability and domestic growth and
also where you see this now moving internationally.
BASS: Yes, you know when you really understand what the words great struggle means.
[09:25:00]
BASS: It means both preparing themselves for conflict internally and externally. The words that Xi used in his speech and in his amendments to
the party papers were incredibly chilling. A just imagine if President Biden in one move of a pen, removed the Head of the Securities and Exchange
Commission.
The Head of SEC, you have that the Head of the Central Bank and the PBOC gang was yanked, and their finance minister. They removed all three of
those in one move and replaced them with again, the spy chief, the Police chief, and a weapons manufacturer. Just what message is that sending to
those that are actually invested in China, Julia?
That's why the markets had such a horrible response to the amendments that were made over the weekend, right. Normally, what happens is they file the
new party charter on the first day of the party congress, which was October 16. And then they made these amendments last weekend.
And that's when all of the fireworks happened with Hu Jintao. So I think you're transcending reform and opening with the great struggle. And
specifically, the words that have been used, you know our words like resource competition and currency war, and ideological struggle and
territorial disputes.
And Xi even moves the goalposts for what use of force would be used for in Taiwan. One was in the prior declaration that was if Taiwan were to ever
seek independence, that's when force would be used. And now, it China can use force in the event that Taiwan resists a peaceful reunification, IE.
You know, it's almost like someone that refuses to break up with their wife or their girlfriend. And now they're going to force it to happen. And if
they don't want it to happen, they're going to, again, use force.
So it's pretty chilling for the world to see the architecture of the foundation of the Standing Committee at the Politburo in the Central
Military Commission. And the word she used in his speeches, lead me to believe that he is absolutely going to move on Taiwan in the next year or
two.
CHATTERLEY: You believe that because just so my audience is clear and if they remember our discussion. And you long before we saw the shift in Hong
Kong, you were predicting real trouble. So you think within the next year, China make some move, a physical moving in Taiwan?
BASS: Yes, I mean, in the end of his speech, Xi said, prepare to undergo high winds and waves, and even for stormy seas of a major test. What I
mean, how else can you read anything into that?
CHATTERLEY: How do you expect the United States in particular to react to that? I mean, there are all sorts of geopolitical consequences. There are
financial consequences with kind of being the world's largest chip producer.
And that's required for growth and products all around the world. How would you expect the United States specifically to react?
BASS: Yes, I mean, as you know, Julia, Taiwan Semi produces the overwhelming majority of the highest end chips in the world between Taiwan
Semi and ASML in Holland. Those are the two most important high end chip manufacturers in the world. So it we realized our strategic position, being
in deficit back in 2016-2017.
And if you've looked out towards the Phoenix area, Taiwan semi is building massive chip foundries. You've never seen more cranes in one place in your
life, $14 billion, $15 billion buildings. The problem is those things take five years to build.
And we're still right in the middle of building many chip foundries. As you know, Samsung announced one and Taylor Texas Intel's building one. Texas
Instruments is building on Taiwan Semi.
But the real issue, Julia is no one makes two nanometer chips other than Taiwan's Semi. Even the new ones that are being built in Phoenix are only
five nanometer chipsets, they're caught last generation. And so it's important from a national security perspective that the U.S. is going to
have to react.
The question is will it be kinetically? Or will it be economically or will it be both? And unfortunately, nobody wants this to happen, right? You
don't want it to happen. I don't want it to happen.
You know, people say that I'm just warmongering. I'm reading the tea leaves. And I think we all get paid for identify and really try to
understand what's happening and it's clear as day what's happening the problem is, it puts the world at a very, very, very difficult position as
she said, even for stormy
[09:30:00]
BASS: I think that major test is coming.
CHATTERLEY: Can anything prevent it Kyle, be it. I mean, we're one week at a Republican Congress, a Republican President in the White House. I'm just
throwing things out there. Can anything prevent this?
BASS: What silly between you in the question, it's kind of silly that you say, a kind of Republican President, you know, avoid a war. You have to
realize this isn't the United States is doing this is China's newfound belligerence and they've really been there since 2009, when they believe
they pulled the world at a global financial crisis is the first time they ever felt like they were financially strong.
And I'll tell you, Julia, if you look at, you know, 40 percent of Chinese GDP is, is driven by real estate and concentric circles around real estate.
And Xi has really; let's say douse the fire, or the flames of their real estate, ascendancy. What he realized Julia was that the average home price
in tier one cities in China got to 36 times income, because they allowed unmitigated speculation.
At the peak of U.S. subprime greatness, we were six times median income. So they got to a place where the average Chinese male or Head of Household
couldn't afford - couldn't even come close to affording buying a house. So they weren't marrying, they weren't having children. And now the birth rate
in China is 1.2.
So the Chinese population is dying off at a very steep angle. And it baffled Xi and his people. So I think he realized that he had to rein in
the real estate markets, which by the way, means there's not going to be a bounce, they're going to push it down and hold it down.
And if you look at the Chinese property developers look at the dollar bonds for Evergrande, the most indebted developer in the world, those bonds right
around zero, and country gardens headed to zero. So I think that we're in for a Chinese economic contraction, I think we are in for a Hong Kong
banking crisis.
And I think that the good news is, is the best place in the world to invest is the U.S. and that's where the money will flock to. And so I think that
were some bad news on the horizon. But the good news is, is the U.S. is still the greatest place in the world to invest. And I think Asia and
Europe realizes that and I think that's what's actually boiling our markets a bit.
CHATTERLEY: Yes, it's about to say, the upshot of that I think is continued to buy the U.S. dollar, no matter what anyone says about it being
overvalued. And I think your point about the politics was immune one. I was just wondering whether perhaps, belligerence can fight some degree of
belligerence, but I agree with you completely. This is not about any other nation but what's happening in China alone.
Kyle it is always brilliant to talk to you and as always, there's more to discuss. We'll get you back soon please. Thank you for sharing your views
and wisdom Kyle Bass there. Likewise, thank you. OK, coming up, big old profits big political risks OPEC oil producers defending cuts to production
that a key oil summit in Abu Dhabi we'll take you there next.
(COMMERCIAL BREAK)
[09:35:00]
CHATTERLEY: Welcome back to "First Move"! The Wall Street bulls hoping for a first day of November to remember the major averages were getting in the
new month with across the board gains positive results today from Drug Maker Pfizer and ride hailing app Uber also contributing to sentiment.
The auto sector on the rise too driven by robust earnings news from that sector, Saudi Aramco reporting a Q3 profit jump of almost 40 percent today,
it's the second best quarter on record, I believe. BP reporting third quarter profits to have more than $8 billion, Exxon Mobil, Chevron and
Shell outperforming as well.
All this great news for investors but outsized profits leave all majors open to political risk. President Biden yesterday escalating his rhetoric
against the industry he's floating a sector wide windfall profits tax.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES OF AMERICA: Oil company's record profits today are not because of doing something new or innovative. Their
profits are a windfall of war, you know, at a time of war any company receiving historic - profits like this has a responsibility to act beyond
their narrow self-interest of its executives and shareholders.
(END VIDEO CLIP)
CHATTERLEY: Eleni Giokos joins us now she's live at the International Petroleum Exhibition and Conference in Abu Dhabi, where industry profits
are topic - Saudi Arabia and the UAE defending recent OPEC production cuts too. Eleni got to be controversial, huge profits a war going on at the same
time, it's bound to face a backlash.
ELENI GIOKOS, CNN CORRESPONDENT: Yes. And I'll tell you, just everyone completely unapologetic about the production cuts saying, listen, if we
need to have energy security and the medium to longer term outlook requires the world to invest over $12 trillion in the oil and gas industry, then we
have to have oil prices at a certain level.
And that has been the big message when you speak into oil leaders majors and you're speaking to ministers that this is basically sort of the
overriding message that you're hearing. You know listening to that list of oil majors, Julia that are reporting record third quarter profits or close
to record levels.
It basically speaks to the fact that it was a combination of high oil prices, high demand volatility and the supply demand scenario, which was
basically prompted by the Russian war in Ukraine that gave this stellar performance that we've seen, but can it continue?
OPEC says they're already seeing a dwindling in demand, which is going to continue for the next few months. But we're also hearing from emerging
market leaders saying listen, if oil prices remain at elevated levels around what we're seeing now $90 a barrel that this could exacerbate
recessionary fears. And this could actually prolong a global recession.
Of course, oil touches everything we absolutely buy. What has been interesting is the criticism by the U.S. towards Saudi Arabia, and
importantly, for OPEC Plus decision makers, cutting production and what that would mean in terms of the relationships of politics very much
intertwined, and what we're doing.
But when it comes to energy security Julia that is always paramount, right? And I think that that trumps all other conversations, and I think there's a
really big fear and a very serious one, that once demand starts to pick up again, that there isn't enough capacity globally, or at least by OPEC
members to be able to fill in that demand scenario.
So these are some of the conversations that are being had. But let me tell you, a lot of the criticism is still being levied and I think finger
pointing is absolutely still happening at least in the corridors.
CHATTERLEY: Eleni great to have you with us and yes, no surprise the finger pointing I think will certainly continue and the debate will continue too.
[09:40:00]
CHATTERLEY: I don't know how I feel about taxing windfall profits just forced the money into renewables, forced them to invest in renewables to
diversify that mix to your point about energy security. But we shall reconvene on this conversation great to have you there and thank you so
much for joining us today.
GIOKOS: Good to see you, take care.
CHATTERLEY: Eleni Giokos there. OK, still to come here on "First Move" beauty brands take a stand on reproductive rights ahead of the U.S. midterm
vote. I speak to the CEO, one of them after this.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move"! In just one week Americans will head to the polls for the critical midterm elections and abortion is on the
ballot too in at least four states. A recent poll by the Kaiser Family Foundation showed half of registered voters say they are now more motivated
to vote after the U.S. Supreme Court overturned what's known as Roe V. Wade.
That decision let the beauty company say to launch everybody campaign a first of its kind human rights initiative to raise awareness and funds for
reproductive rights.
In partnership with Reproductive Justice Collective Sister Song the campaign allows people to donate to protect reproductive freedoms by
shopping limited edition products from over 35 beauty brands and that includes Elf Cosmetics Glow Recipe and Herbivore Botanicals.
And joining us now is Laney Crowell she's Founder and CEO of SAIE. Laney fantastic to have you on the show! I know this is personal for you. You're
a mother of two. You're fighting for the right for women to be able to make their own choices ultimately. Just explain why you just decided to look
maybe we got caught off guard by this decision now we have to act.
LANEY CROWELL, FOUNDER & CEO, SAIE: So for me personally, yes, I'm a mom of two daughters. I was distraught like I think most of us were after Roe V
Wade was overturned. And I, my husband said to me, well, why don't you do something? And I knew that as a brand, we have a huge following but
collectively, as a beauty industry, we are really powerful.
CHATTERLEY: I know you have a history and career beyond actually starting your own brand, SAIE of being in big beauty business. And I think one of
the things that resonate certainly, for me on this show and conversations with some big company CEOs is this nervousness to take a stand on big
issues like this because they don't want to alienate sort of half their customer base. How do you think about that specifically when you choose to
make firm stance like this?
[09:45:00]
CROWELL: I love this question. We are a beauty industry started by led by run from an honestly profiting majority from women. So, for us, this is
just good business. I was reading Inbox the other day that 85 percent of Americans approve of abortion at some point. So you know, that's just,
it's, it makes sense for us as an industry.
CHATTERLEY: So what you're saying is you don't perceive it to be alienating, really any part of your customer base, it's important to take a
stand and be perceived to take a stand.
CROWELL: Oh, for sure. And the response has been incredible. We've raised over $100,000, in just four days from these limited edition products, and
our communities, our staffs, everyone working in all of our companies has just been so positive and thankful and excited.
CHATTERLEY: Do you think it's going to make an impact? This kind of campaign, as you said, you know, it's we're only a week out from the
midterms. This is it's a shorter term issue, but it's a longer term issue for women all across the United States, particularly at a time when you're
running a relatively new business.
You have to make all sorts of choices about costs about rising import prices, about what do you charge your consumers? Do you have enough
bandwidth, I guess, is what I'm asking to sort of pump money into, into causes like this?
CROWELL: That's a great question. There have been a lot of late nights for this campaign. But - consulting actually recently reported that 42 percent
of Gen Zers make decisions and purchases based off of companies, missions, and purposes. So again, like for us, this is something that we believe very
passionately in, but also something that just makes sense from a business point of view.
So I'd say for example, you know, we are a clean and performance driven makeup brand. But we're driven by our people and planet mission to create
positive change, and our community, that's just something that's really important to them.
CHATTERLEY: Wow! You know, we were just showing those statistics there. And one of them said, I think 52 percent of Gen Zers would return a gift that
they were given that that wasn't sustainable. And as you were just saying, there, it sort of cuts to the ethos of your brand.
You're very focused on having a net zero and beyond carbon footprint, what you do is sustainable, and you're very careful about the plastics that you
use as well.
And actually you offset or more than offset what you use there. I mean, that's, again, it comes back to the question of cost, is it? Is it viable
to protect the planet and also be profitable, whether you're a small business or growing business or a large one in your mind? Or does that just
simply have to be part of the ethos going forward particularly if you've got so many of your future customers saying, we need this from you?
CROWELL: I couldn't agree more. I think you look at companies like Patagonia, for example. And they have so many dedicated customers who I
know people that only shop Patagonia because of how strong their mission is, and how outspoken they are on it.
I started say because I wanted to make beauty better. And so for us, it's something that's important to our soul, but also we see the future and we
see how important that is to business in the future.
CHATTERLEY: What's the ambition Laney ultimately for this campaign?
CROWELL: For the campaign, you know, we wanted to number one raise awareness for Sister Song. Sister Song is such an incredible organization
standing up for people affected the most by the abortion bans. They're based in the south so they're literally on the front lines.
So I'm so excited that everyone has Sister Song in their Instagram captions. You know, people are talking about it all over TikTok right now.
And we want to raise funds. So we've had incredible success there with products selling out already.
And then, you know, it's time for the midterms. It's time to talk about voting. It's time to get our communities to the polls. I was mentioning
that we're more powerful together, just our brands. Our Instagram following is over 13 million. When you add in our founders and our TikTok communities
and the influencers that we ceded to it's over 300 million followers.
CHATTERLEY: Wow! Well, in terms of the number of people in the United States of America, that's and obviously there's some crossover there. But
that's the power is out and could be a really powerful message. Laney thank you for joining us on the show and thank you for the work that you're doing
and deciding to act! I think the critical point here too not just be upset Laney Crowell Founder and CEO of SAIE.
CROWELL: Thank you Julia.
CHATTERLEY: Thank you great to chat to you today and we'll speak again soon.
[09:50:00]
CHATTERLEY: OK next, Halloween may be over. But here's a question for you. What does the world's most famous horror author have to do with the newly
appointed CEO of Twitter? Well, you can find out in just a few moments.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move"! The Musk era of Twitter is only a few days old, but it's already seeing huge changes. At least four top
executives have been terminated including the Former CEO, who will be replaced of course by Elon Musk himself, at least for now the Chief Twitter
as he's calling himself.
The company's previous Board of Directors was also dissolved as part of the merger agreement. Paul R. LA. Monica is here. I mean, there's nothing
private about this private company, quite frankly. But it's important and normal surely for an incoming CEO in this kind of situation to oust the old
broad and bring in the new. But there's a lot of criticism being made.
PAUL R. LA. MONICA, CNN CORRESPONDENT: Yes, I think there are legitimate concerns Julia about what Elon Musk wants to do with Twitter. His tweets,
sometimes, let's be honest, are not necessarily the most mature type of discourse and dialog you'd expect from a mature supposedly adult man who
also happens to be the richest individual on the planet but all that being said, I think the bigger concern, as we've discussed on this show numerous
times.
Elon Musk is an extremely busy individual; because he is also the CEO of Tesla and SpaceX, and he runs the Boeing Company and Neural Link, there are
lots of things going on in his life. Forget about his personal life. Does he really have the mental bandwidth to also try and fix Twitter because we
know that Twitter is not exactly the most popular social media platform out there?
CHATTERLEY: No, and I agree, but I would have to say that this man is someone with an enormous brain. So if anyone has the capacity to do this,
he does. I mean, TechCrunch compared him to a dictator. They said he is right now Twitter has what - to a dictator or like steady on, it's been a
few days. They've been excitable as they always are in Elon Musk's life, but you know, we'll see what happens with the new board if he appoints a
new board. There has been some reason--
MONICA: To be fair he said that it's temporary that there will be a new board.
CHATTERLEY: Yes.
MONICA: Yes.
CHATTERLEY: Yes, exactly. So I just I defend this aspect of what we're seeing. Now, let's talk about monetization Stephen King, famous author
saying, you should be paying basically for my content, rather than me paying to have a blue tick. And he got a response from Elon Musk, which is
quite fun. And Elon said what about paying $8 a month Paul?
MONICA: Exactly.
(CROSSTALK)
MONICA: I think it's interesting that I mean, the fact that Elon Musk is having this public negotiation with the most famous author arguably in the
world, a horror novel author on Halloween nonetheless, really is fascinating Julia. And I think it does beg the question.
[09:55:00]
MONICA: There are a lot of people; individuals who I don't think will pay up to remain verified unless people like us, for example at CNN wind up
having it expensed by the corporation. I mean, I have a blue checkmark, I can tell you right now that there is no way I'm going to pay one cent to
keep that blue checkmark.
I will gladly sacrifice it if someone's asking me to pay my own money. I don't value that verification that much to be honest. But there are other
people who are more powerful than I am who have bigger followings that probably will pay up. But just the question does become how much will they
pay? Is it a one-time fee instead of a monthly subscription? I mean, there are a lot of options I think.
CHATTERLEY: I just sort of arbitrary to go from $20 to eight, which was quite common beyond anything else.
MONICA: It was a strange pivot. Yes, why not--
CHATTERLEY: Do I - must I pay to provide my content. But the most amusing tweet was the fact that he said if he had $1 for every time someone asked
him whether Trump was coming back, that would be Twitter monetized fabulous. Paul, we've got to go. Paul R. LA. Monica thank you so much for
that as always. And that's it for the show. "Connect the World" with Becky Anderson is up next. We'll see you tomorrow.
(COMMERCIAL BREAK)
[10:00:00]
END
