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Early Start with John Berman and Zoraida Sambolin

Senate Votes To Pass $40 Billion Ukraine Aid Package; Kyiv Restaurateur Turns To Helping House Refugees Like Herself; Wall Street Journal: This Could Be A Lost Decade For Stocks. Aired 5:30-6a ET

Aired May 20, 2022 - 05:30   ET




CHRISTINE ROMANS, CNN ANCHOR: All right, a $40 billion aid bill for Ukraine now being flown to South Korea for President Biden's signature. Both houses have now passed the package to fund both military and humanitarian assistance to the war-torn nation. The White House also just announced another security package worth $100 million for Ukraine -- a security package including additional artillery, radar, and other equipment.

LAURA JARRETT, CNN ANCHOR: Dramatic and emotional testimony continues this morning in the trial of the first Russian soldier charged with war crimes in Ukraine. The 21-year-old pleaded guilty to shooting an unarmed Ukrainian civilian in cold blood.

CNN's Melissa Bell joins live from Kyiv. Melissa, the suspect asked for forgiveness from the victim's wife.

MELISSA BELL, CNN PARIS CORRESPONDENT: And these were the extraordinary scenes that we witnessed yesterday, Laura. This is 21- year-old Vadim Shishimarin, essentially, whose defense is that he accepts that he killed Kateryna Shelipova's husband, an unarmed civilian, and the chaos that ensued. He and several other soldiers trying to flee the point where their tanks had hit a mine.

He accepts that this happened. But as his defense lawyer just told the court before the trial was adjourned until Monday when we expect a verdict to be given -- the sentencing, rather -- the lawyer saying look, it is the Russian leadership that is to blame; not these boys.

But extraordinary moments here yesterday -- you're quite right -- when he spoke to the widow of the civilian that had been killed by Vadim Shishimarin. Have a listen.


KATERYNA SHELIPOVA, HUSBAND KILLED BY RUSSIAN SOLDIER (through translator): Can you please tell me what did you feel when you killed my husband?


SHELIPOVA (through translator): Do you repent?

SHISHIMARIN: Yes, I acknowledge my fault. I understand that you will not be able to forgive me but I am sorry.


BELL: Vadim Shishimarin, 21 years old, who now faces life in jail. That verdict due on Monday, Laura.

JARRETT: All right, Melissa Bell. Thank you.

ROMANS: All right. On the battlefield, we're following an unknown number of Ukrainian troops who apparently don't know the meaning of the word quit. They're vowing to keep fighting from inside that bombed-out steel plant, even after hundreds of others surrendered.

CNN's Suzanne Malveaux live inside Ukraine for us right now. Suzanne, what do we know about these last holdouts there?

SUZANNE MALVEAUX, CNN CORRESPONDENT: Christine, we are actually monitoring social media and essentially collecting these messages that are coming more and more frequently now and we are working, of course, to verify those messages.

But we have been hearing just today -- just three hours ago from a soldier inside of that steel plant who sent an Instagram message. And he simply said that's it. Thank you for the shelter -- Azovstal -- the place of my death and my life.

We also been hearing not only from the hundreds of people that are believed to be inside of that steel plant, but also some of the top commanders -- military commanders inside of Ukraine's military. We heard from one just yesterday who over the course of days had been posting, saying that it was just the beginning of the war. That it was not the end of the war.

We have also heard from a deputy commander just last night who posted a video message essentially suggesting that there is something afoot. That potentially, there is going to be some sort of last gasp of a fight from those inside. I want you to watch.


SVIATOSLAV PALAMAR, AZOV REGIMENTAL DEPUTY COMMANDER (through translator): My command and I are on the territory of the Azovstal plant. An operation is underway. I will not give any details. I'm grateful to the whole world and to Ukraine for support. See you.


MALVEAUX: And so, while the hope, at least, that there was some sort of negotiation that was taking place to release or to actually help those evacuate inside is unknown -- the status unknown there. It certainly does seem to be like there are indications if you believe what we are coming -- what we are seeing coming out of social media that there will be some sort of activity outside or inside that steel plant. And that potentially, it is imminent if you listen to those messages and believe what they are saying at this time and what they are expressing to the rest of the world -- Christine.

ROMANS: Wow, just the drama there and the -- as I've said before, the hellscape at that -- at that plant just awful.


All right, thank you so much for that, Suzanne.

JARRETT: Meantime, the U.N. says more than 8 million of the Ukrainians forced to flee the war are now displaced within the country. One of them, a well-known restaurant owner in Kyiv who went from planning parties to now providing shelter to as many other war refugees as she can.

She joins us now from western Ukraine, Kateriea Terekhova. Thank you for joining the show, and thank you for all of the work that you are doing.

Take me back to the beginning. Tell me what you were doing when the war started and how you decided to flee your home.


Yes. You know, I'm like a lot of Ukrainian girls -- a lot of Ukrainian strong girls. The Ukrainian women is really powerful.

So, when the war was started, I live with my family the first 12 days on the ground in my home. And it was -- you know, it was really a lot of adrenalin because it was always -- there was bombing sounds and a lot of process what we need to do. Because all of us understand we can help something for our soldiers and for our civilians.

So, the first 12 days of the war I was doing my volunteer job from my underground and it was held for a few -- a few group of soldiers. It's more than 1,000 guys.

And it was like you tell I'm a restaurants worker. So I build the kitchen for the -- for the soldiers. I build the kitchen and I have found a lot of products -- a lot of food. It was a lot of frozen food. So I prepare the guys for a long, long time using and have some food for they can cook themselves.

And actually, I was helping them -- some hospitals -- and these was a children's hospital and hospital for pregnant women because they was asked to move to undergrounds the same. And I was helping with the building these underground with electricity, with some pharmacy, with everything what I can to found. Thankful for my -- a lot of friends. So that was my job for the first 12 days.

And after that, we decide just because my friends, soldiers asked me to take my family, to take my pets and go out from Kyiv. That's why we moved here to Transkarpatien. And for me, it was absolutely impossible to think about I'm just come here --


TEREKHOVA: -- and not continue to do nothing.

JARRETT: What --

TEREKHOVA: And that's why we come here in eight of March. And nine of March I found -- I found and I rent some space for make my own storage. And on the 10 of March, we start working and start helping civilians who was -- who was -- who was must to leave here from their home because a lot of home was destroyed in Bucha, Irpin --


TEREKHOVA: -- in Kharkiv, in Mariupol, in Verdansk.

Here, it's really a quiet place here. And it's more than safety to be here. It's more than safety and that's why a lot of shelters for orphans was moved here to Transkarpatien. And a lot of people just who live in the small villages here -- all of them take some people in they own houses. And this is a group of civilians what I tried to help --

JARRETT: Kateriea --

TEREKHOVA: -- with everything what I can.

JARRETT: Kateriea Terekhova, I hate --

TEREKHOVA: And all what I do, I do just because I have really a lot of friends in different parts of the world, and that's why I can still continue my work.

JARRETT: Thank you.

TEREKHOVA: Now you see I'm sitting in my storage. I am here every day and now, too, we helping civilians who just -- it's a family. So it is grandmothers, grandfathers, childrens. And they are coming here --

JARRETT: All right, Kateriea Terekhova, we have to leave it there. I hate to interrupt you. Kateriea Terekhova, I hate to --

TEREKHOVA: I'm sorry.

JARRETT: Yes, Kateriea. Thank you for telling us your story. You have -- you have such -- you have such an incredible tale, such an incredible journey. Thank you for sharing your story.

We, unfortunately, have to leave it there but we hope to get you back soon. Keep us updated on your work. Thank you.

ROMANS: So many people just from all walks of life all of a sudden have found themselves --

JARRETT: Yes. ROMANS: -- organizing and leading --


ROMANS: -- you know. Testing their leadership skills. It's just been remarkable.


ROMANS: All right. Coming up, your retirement account taking a big hit lately. How to bear-proof your money.


JARRETT: And tens of thousands of SUVs on the recall list.


ROMANS: OK, let's get a check on CNN Business this morning -- big sigh.

Mercifully, it is the end of the week for global stock markets. You can see Asia has closed the week higher. London has opened solidly higher. And stock index futures are also higher. I haven't been able to say that very much --


ROMANS: -- because U.S. markets fell again Thursday. The Dow hit a new 52-week low, down 14% since the start of the year.

The S&P 500 zeroing in on a bear market. That's not good. It's when it's down 20% from its all-time high. That was set back January 3.

Tech stocks in the Nasdaq already there, down a whopping 27% this year.

Look, interest rates are rising, inflation is too hot, the era of easy money is over, Russia is waging war in Europe, COVID lockdowns in China. I could go on and on. There are so many crosscurrents in the global economy, any one of which, as you've heard me say, would be destabilizing.


The "Heard of the Street" column in The Wall Street Journal this week finds this. This could be a lost decade for stocks.

Let's bring in Spencer Jakab. He's the editor of the "Heard on the Street" column. OK, so lay it on me. Why a lost decade for stocks, Spencer?

SPENCER JAKAB, EDITOR, HEARD ON THE STREET, THE WALL STREET JOURNAL, AUTHOR, "THE REVOLUTION THAT WASN'T (via Webex by Cisco): Good morning, Christine. So, look, it's always painful when you check your retirement account and it's down by 15% or 20%, which is about par for the course now. But it's more painful when you look back at 10 or 12 years like we've had, which have mostly been very good. I mean, you've had a couple of crises and you had the COVID panic, but basically, it shrugged all of those off.

And so, people have been conditioned to expect very good return. And a survey of the (INAUDIBLE) of several countries show that U.S. investors looked back at stocks going forward to go up by 17.5% a year, which is unrealistic. The 17.5% -- if you just do the math on a calculator, you will make five times your money in 10 years.

And the reason that -- one reason people have that unrealistic expectation is that times have been so good.


JAKAB: And there is a whole cohort of investors who I wrote about in my book, "The Revolution That Wasn't," who expected even more. And they're facing much steeper losses.

If you look at Disruptive Innovation fund manager Cathie Wood, her flagship fund is down 72% --


JAKAB: -- from its peak. You know, it has all kinds of flying car stuff and blank check companies, and stuff like that.

And the younger crowd of investors is most invested in things like that. So they are really -- I mean, they are wondering why they got into the stock market thing in the first place.

ROMANS: Yes. So I guess it makes sense. Look back 10 years, look back even longer, and look forward to see that we're kind of at this moment of getting more -- to more realistic -- a realistic outlook.

Looking at the moment where we are right now -- I mean, the problem in the stock market this week really was these concerns about the U.S. consumer. Over the long term, never count out the U.S. consumer.

JAKAB: Sure.

ROMANS: But we looked at Walmart earnings and Target earnings, and you're starting to see where they're saying -- also at other data that you -- The Wall Street Journal reported on this subprime borrower starting the paycheck-to-paycheck consumer -- starting to show some signs of strain here?

JAKAB: Yes, it's a -- there's a bit of a bifurcation. There are people who are doing fine who are able to save money -- you know, who are upper-middle class -- and they're still doing OK. They have a nice cushion of savings from the pandemic.

ROMANS: And home equity. Oh, and their house is worth a fortune. JAKAB: Right. And their stock -- their stock portfolios are not completely destroyed yet.

And then you people who don't even have stock savings who might not own homes who -- for whom gas prices and the price of milk and things like that really do matter. And that's starting to cut into their budgets. There just is no money left over.

And this week, both Walmart and Target, back-to-back, had the biggest drops that they had ever had since the 1987 stock market crash.

But then -- I mean, going back to the sort of the lost decade, I mean, we might not have one but the -- that's a function of how well stocks have done. I mean, if you analyze in any given decade how stocks do, the underlying kind of motor of the stock market -- how the economy is doing -- doesn't have that much to do with it --


JAKAB: -- and that's a big misconception.

It's been OK and now it has taken a bit of a hit. But what happened is that multiples that pay for stocks have expanded so much. And corporate margins, especially, have expanded to a record high. So, if just those two normalize over the next decade, just back to their long-term averages, then we'll wind up where we started.

And so, that certainly could happen. It's not a -- an ironclad prediction because nobody really knows what's going to happen next week or the next 10 years. The next 10 years is a little easier to predict because of that now.

ROMANS: I know. I mean, if we -- if you and I had a crystal ball we'd both own private islands in the Caribbean somewhere, right? No one knows what's going to happen next.

Spencer Jakab, thanks --


ROMANS: -- for at least plotting it out with us. Thank you. Have a nice weekend.

JARRETT: If you had a crystal ball you would still --

JAKAB: Thank you.

JARRETT: -- be here on EARLY START with me. What are you talking about?

ROMANS: You know, I actually would. I would. I do like to work.

JARRETT: You do?


JARRETT: All right. We're waiting --

ROMANS: Very old school of me.

JARRETT: We're waiting to see the president again this morning in Seoul for his first trip to Asia as president. We have more live coverage for you next.



JARRETT: Fifty-three minutes -- back now.

More than 39,000 Ford Expedition and Lincoln Navigator SUVs are being recalled because of the risk that they could catch fire. Ford is telling owners they don't have to stop driving the SUVs but they should park them outdoors and away from buildings. The full-sized SUVs were built during a 4-month period between December 2020 and April 2021.

The company says 16 have caught fire while in park and turned off. It's incredible. The exact cause is still being investigated.

ROMANS: Yes. They don't know why they're starting on fire but keep them out of your garage.


ROMANS: All right, record heat is building across the east. Millions of people will see the first 90-degree temperatures of the season this weekend, and it's still -- it's May 20.

JARRETT: I'll take it.

ROMANS: Let's get meteorologist Derek Van Dam. It's going to heat up here for us.

DEREK VAN DAM, AMS METEOROLOGIST: Yes, here it is, new this morning, Christine. We have heat advisories in place for many of the interior portions of New England, and that is the operative word, interior. Remember, the coastal areas -- that is excluded from this because the ocean water temperatures here are still in the middle-50s.


But if you're working your way inland, we're talking about temperatures feeling like, on your skin, in the middle and upper 90s. That is why we have the heat advisories in place.

So, a cool day in New York -- 71 today -- but look at how the mercury and the thermometer climbs this weekend -- Philly to Boston, as well as the nation's capital. It is going to be stifling this weekend. In fact, the potential to shatter over 100 record-high temperatures from today right through the weekend.

Here's a look nationally at our temperatures and, wow, what a juxtaposition with this weather forecast from a heatwave along the east coast to a full-fledged winter storm unfolding across the Colorado Rockies, including the Denver metropolitan area. This is going to be a major impact storm for Denver. Winter storm warnings in effect for them -- Christine.

ROMANS: Wow. All right, Denver, you've been warned. And it's going to be hot out here -- out east.

All right, thanks, Derek. Nice to see you. Have a good weekend.

VAN DAM: All right.

JARRETT: All right, let's get a little sports now. Tiger Woods makes his return to the PGA Championship but it didn't go as well as he might have hoped.

Coy Wire has it all covered in this morning's Bleacher Report. Hey, Coy.


Tiger said that he felt that he could this PGA Championship -- quote, "definitely" -- feeling stronger than six weeks ago at the Masters in his return to golf after nearly losing his leg.

And he started off hot, Laura -- two under after the first five holes. Sitting up at fourth on top of the leaderboard at one point there. But as the round went on those injuries started to rear their ugly heads. You could just see Tiger wincing in pain at times but he did power through. He bogeyed the last two holes, finishing four over par, nine shots off the lead.

Here he was after the round.


TIGER WOODS, 4-TIME PGA CHAMPIONSHIP WINNER: Yes, my leg is not feeling as good as I would like it to be. Well, I just can't load it and loading hurts. Pressing off it hurts. And walking hurts. The twisting hurts.

So, it's just golf. I don't play that -- I don't do that, then I'm alright.


WIRE: All right. It is 2-time PGA champ Rory McIlroy sitting at the top of the leaderboard after round one. He birdies four straight holes early in this round, cruising to a 5-under 65 and a 1-shot lead. And history says that could be huge for Rory. In the seven men's majors at Southern Hills, the winner had a least a share of the lead after round one.

Rory, Tiger, and Jordan Spieth teeing off at 2:36 eastern.

Let's go the NBA Conference Finals. The Boston Celtics are back. Marcus Smart and Al Horford both missing game one in Miami where Smart said they were embarrassed by the Heat. But it was Smart making the Heat look silly last night, putting the shake and bake on Max Strus right there. Look at it as Baxter's (ph) going down through the canvas.

Twenty-four points, 12 assists, and nine rebounds for Smart. The Celtics win 127-102. The series is now even at one apiece. Game three tomorrow night at Boston.

And tonight at 9:00 eastern, it's the Warriors and Steph Curry against Luka Doncic and the Mavs. Game two on our sister network TNT.

Now to a war of words in college football. Alabama coach Nick Saban has apologized for singling out Texas A&M and Jackson State, saying that they bought players and that he should have, instead, said that schools across the board can now essentially buy high school players via name, image, and likeness deals.

Here is what Saban had to say at an event where some boosters and donors were listening earlier this week.


NICK SABAN, ALABAMA HEAD COACH: And we were second in recruiting last year. A&M was first. A&M bought every player on their team. Made a deal for name, image, and likeness.

I -- we didn't buy one player, all right? But I don't know if we're going to be able to sustain that in the future because more and more people are doing it.


WIRE: Texas A&M's head coach is Saban's former assistant, Jimbo Fisher. And he feels Saban's attacks were personal. He says their relationship is over.


JIMBO FISHER, TEXAS A&M HEAD COACH: It's despicable that a reputable head coach could come out and say this when he doesn't get his way or things don't go his way. Some people think they're God. Go dig into how God did his deal. You may find out about a guy that -- a lot of things you don't want to know.

I don't cheat and I don't lie. Because I learned that when I was kid, if you did, your old man slapped you on the side of the head. Maybe somebody should have slapped him.


WIRE: Well, Saban and Fisher were publicly reprimanded by the SEC for violating its code of conduct.

Laura, Christine, Alabama hosting A&M on October 8. Get your popcorn ready. JARRETT: Yikes.


JARRETT: That got ugly.

ROMANS: A little coaching drama.

All right. Thanks so much. Nice to see you.

WIRE: You got it.

ROMANS: Have a great weekend, Coy.

JARRETT: Thanks, Coy.

WIRE: You, too.

ROMANS: All right, thanks for joining us. I'm Christine Romans.

JARRETT: I'm Laura Jarrett. "NEW DAY" starts right now.

JOHN BERMAN, CNN ANCHOR: I'm John Berman. Brianna Keilar is away. Erica Hill with me this morning.

On this new day, a high-stakes Asia trip -- a pivotal moment for President Biden and his plans to counter China.

The January 6 panel wants answers from a Republican lawmaker who gave a Capitol tour on the eve of the insurrection.

ERICA HILL, CNN ANCHOR: Plus, Oklahoma lawmakers pass a bill banning almost all abortions. If signed into law it would be the strictest anti-abortion law in the country.