Return to Transcripts main page

First Move with Julia Chatterley

British Lawmakers Pay Tribute to Murdered Member of Parliament; China's Economic Growth Slows to 4.9 Percent in Q3; Plans to Hire 10K in the E.U. to Build Metaverse. Aired 9:30-10a ET

Aired October 18, 2021 - 09:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

(COMMERCIAL BREAK)

[09:30:40]

JULIA CHATTERLEY, CNN BUSINESS ANCHOR, FIRST MOVE: Hello, I'm Julia Chatterley. You've been watching CNN's coverage of General Colin Powell who

has died at the age of 84 from complications related to COVID-19.

And another top story today takes us live to the House of Commons in London where British lawmakers are about to pay tribute to Sir David Amess, who

was killed on Friday while meeting voters.

Sir David who was 69, was a member of Boris Johnson's ruling Conservative Party.

Let's bring in Fred Pleitgen. He joins us now from London.

Fred, I do believe we're looking at live pictures there of the lobby ahead of what's going to be prayers and a minute of silence. But for now, I'll

bring you in just so that you can tell us what's been going on this weekend in terms of tributes, and what we're expecting today? I believe we're going

to hear from the Prime Minister himself in the next hour or two.

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, we certainly are, Julia. We certainly are going to hear from Prime Minister

Boris Johnson. As you've said, Sir David Amess, he was part of Boris Johnson's political party, the Conservatives here in this country.

But of course, the tragedy that happened here last Friday as Sir David Amess was stabbed to death, as he was actually meeting with constituents

doing that very important work that politicians do here in this country, and in so many other countries, as well, and which is so important for

democracy to function.

That is, of course, something that has really taken this country aback. There have been a lot of tributes that have not only been happening this

weekend, by fellow politicians here in the United Kingdom, but of course, also something that has really gone on around the world where you've had

governments from other countries who have given their condolences also, for instance, from the U.S. House Speaker, Nancy Pelosi has done so as well.

So there is a lot of sorrow. But at the same time, of course, there is also a big discussion as to how this country, and that's also really a question

internationally as well, how to keep politicians safe, while ensuring that they are able to do their jobs, which is, of course, in many ways that

interaction with the public to be there for the constituency that they have.

And you know, one of the things that I think that we'll hear in some of these tributes that are going to be going on today, after we hear that

moment of silence, and before there is going to be that procession going to St. Margaret's Church at Westminster Abbey, is that I think a lot of people

are going to speak about Sir David Amess, and how important it was for him to have that interaction, how important it was for him to have those causes

that he supported to be there for his constituents, and to be able to speak face-to-face with them in a very normal setting.

Because one of the things of course, that's also being discussed right here right now, is also more security, for instance, for Members of Parliament.

Also, when they are in their constituencies, how would that be differ? Or make the political process here different?

Will it make it more difficult for people to speak to their constituents? Will some people have inhibitions then? Will it distance Members of

Parliament or would it from their constituencies? And it is really a question that I've seen across media here in this country, and from top

politicians throughout this entire weekend and well into early this morning -- how do you keep the political process upright? How do you keep that

interaction upright, at the same time keeping people safe?

Because of course, Julia, we've been pointing this out as well. This is already the second time that a Member of Parliament in this country has

been killed in the past five years. And that's certainly something that is a great cause for debates here in this country, obviously a lot of sorrow,

but also a great cause of debate as to how to move forward at this point in time, again, to make sure that the political process, which is of course, a

very open, a very transparent one, and one that depends on interaction, but the same time keeping people safe as well -- Julia.

CHATTERLEY: Yes, I'm just showing our viewers now images of Members of Parliament meeting in the House of Commons. And those are live pictures

that you're seeing there as we await this moment of silence.

And Fred, you raised some very good points, as you say, a combination here of one, remembering someone who has donated and given 40 years of service

to the British public and then the debate that's happened this weekend. And I also have been watching with some of those saying -- I'm going to stop

speaking now actually and listen in to the prayers now.

Let's listen in to what's going on in the House of Commons.

UNIDENTIFIED FEMALE: Honoring Sir David Amess, the Honorable Member for Southend West, colleague and friend, may the bright memory of his rich life

ever outshine the tragic manner of his death. Let us keep silence.

[09:35:07]

SIR LINDSAY HOYLE, SPEAKER OF THE HOUSE OF COMMONS OF THE UNITED KINGDOM: Thank you. I'm sorry the House is returning in such tragic circumstances.

Since we last met, we have lost two outstanding friends and colleagues: Sir David Amess and James Brokenshire.

I know Honorable and eternal members, and all parts of this House will show my deep sadness, of their loss and will want to join me in sending

heartfelt condolences to their families.

GROUP: Hear, hear.

HOYLE: The circumstances of Sir David's death was despicable and raise the most fundamental issues about how Members of this House are able to perform

our vital democratic responsibilities safely and securely.

In light of the ongoing police investigation, I will not say more about the events, but I give the House my undertaking that I will do everything

within my power to ensure that these issues are treated with urgency and with the sense of priority that they deserve.

I know that whatever political differences there are in the House, all members want to ensure not just that we and our staff are able to work

safely, but our democracy itself with local Member of Parliament at the heart of our constituency is able to function securely.

On that, I know the House is united.

The House will want to pay tribute to both Sir David and to James, and I hope it will be useful if I set out how I expect us to be able to do so.

On Wednesday after Prime Minister's Questions, there will be an opportunity for tributes to be paid to James Brokenshire. Today's planned substantive

business in the Chamber in the Westminster Hall will not be proceeded with.

Instead, we will have Home Office Questions followed by an opportunity to pay tribute to Sir David Amess on a motion from the Chairman to be opened

by the Prime Minister.

At 6:00 p.m., there will be a service of remembrance to commemorate Sir David at St. Margaret's Church. I expect the House to adjourn approximately

at 5:30 p.m. for those members who wish to attend the service, then to proceed from this Chamber to St. Margaret's.

I know many, many members want to speak, and if we can bear that in mind, it will help resolve that we get it on the record. And just to say, there

will be books of condolence for members to sign along with staff as well.

So please let us now move to questions to the Home Secretary and we now come to that.

We no come to Sheryll Murray.

SHERYLL MURRAY, CONSERVATIVE BRITISH MEMBER OF PARLIAMENT: ... one please, Mr. Speaker.

HOYLE: Home Secretary?

CHATTERLEY: And we'll leave the House of Commons there and the Speaker of the House of Commons. They're paying tribute and remembering the life of

Sir David Amess there, paying tribute to his work, I think, Fred.

As we were discussing there, and as the Speaker mentioned, there are two things here, there is remembering the life and the work of Sir David Amess,

but as you also pointed out, there will be questions to be asked and he mentioned it there about the safety and the work and the duties that the

MPs undertake during their day and how best we protect them going forward.

PLEITGEN: Yes, yes. And I think listening to Sir Lindsay Hoyle, I think it was -- it was certainly the case that you could tell that this is something

that is of fundamental importance to this country, and of course to democracies around the world.

There are two sort of phrases that that he used that I've jotted down here. He said "vital democratic functions." Really the essence of what democracy

is all about is Members of Parliament, politicians being able to meet their constituencies, to hear -- able to hear from their constituencies what

their worries are, what their concerns are, but doing that obviously in a way that is safe for these politicians as well.

[09:40:04]

PLEITGEN: And then he said, "The democracy itself to function securely." So it is really the essence of the political process here in this country,

of course, and in many other countries as well.

And I think it was really quite interesting to hear over the past couple of days, especially this weekend, after the tragic events unfolded. You heard

people like Sir Lindsay Hoyle, he was saying that he doesn't want to see any kneejerk reactions after this takes place. In other words, he doesn't

want politicians to all of a sudden get large amounts of security or be too distant from their constituents.

Of course, these questions have to be asked, he said he doesn't want any kneejerk reactions in that case. Also heard from Dominic Raab, the Foreign

Secretary this morning on several British outlets where he also said he does believe that something needs to be done to ensure security, to make

security better.

But at the same time, of course, you do have to have those face-to-face interactions. And one of the things that he said, he said, look, if you go

into your constituencies, and all of a sudden, you have a big security detail with you, are some of the constituents that you have still willing

to speak to you face-to-face? Are they willing to speak their mind the way that they would if they would be in one-on-one meetings without security

present?

So really, these are really very big and very important questions. And one of the things that was also raised this weekend, which I think is also

going to be important in this country in this debate, going forward is also a lot of the online hate that a lot of politicians, of course, not just

politicians face, and how that could also contribute to some of the violence that we've seen, of course, not in this country, but also in other

countries as well.

Again, you have a situation here in Britain, in the United Kingdom where you've had two Members of Parliament killed within the past five years. Of

course, in the tragic circumstances, of course, both of those are being investigated, especially the case of the gentleman who is alleged to have

killed Sir David Amess, but at the same time of course, there are big fundamental questions that are going to need to be addressed and that are

going to be asked moving forward.

And I think you can already see that process taking place while at the same time of course, we are in this somber moment where you have the tributes

coming in right now. You're going to have that service later on today. Of course, that is something that takes precedent at this point in time --

Julia.

CHATTERLEY: You're right. Tomorrow we'll continue to ask those questions. Today is about Sir David Amess himself and a tribute to his life and work,

and we will continue to cover that here on CNN throughout the coming hours.

For now Fred, thank you. Fred Pleitgen there in London.

Stay with us. More to come.

(COMMERCIAL BREAK)

[09:45:03]

CHATTERLEY: Welcome back to FIRST MOVE. A muted Monday for global stocks. Consolidation, I would call it after gains last week that put the Dow less

than one percent away from records. Europe coming off its best week since March of this year, too. The challenge, rising global bond yields. That's

driving the cautious tone, I think here as investors are pricing less Central Bank support going forward.

U.S. benchmark yields trading above 1.6 percent. That's the 10-year U.S. yield to levels not seen since June's volatility, if you remember when we

saw yields spike back then. European yields also pushing higher, too. It's certainly a global story. It's a combination of supply chain pressures and

energy price rises, and there is further concern today in the natural gas market amid chatter that Russia's Gazprom may not increase supplies to

Europe as President Putin suggested they might last week.

Rising energy prices, supply shortages also led to a softer Chinese GDP number than expected. The world's second largest economy reporting 4.9

percent growth year-on-year for the third quarter. That's actually the slowest pace in a year.

Much of this slowdown, however, has been engineered by Beijing to meet things like climate goals, quell rising property prices, and curb the

powers of Big Tech.

Joining us now Leland Miller, CEO of China Beige Book.

Leland, great to have you on the show. I have to say, for all the analysts out there that are saying this is a disappointing number, there is no

surprise on your side, I think because you've been talking about this all year.

LELAND MILLER, CEO, CHINA BEIGE BOOK: Well, that's right. It's not a disappointing number, because a higher number shouldn't be a better number.

Right now, look, you have these -- base of comparison issues from 2020. So, this is this weird window where the Chinese government can actually

announce sort of whatever number it wants without being overjudged by the market.

I think what Beijing did this time around was announce a number much lower than what they could have put out there.

China GDP and its aggregate growth, it's not productive growth. So if they wanted to juice it, they could have announced the larger number, they

didn't, and that's a signal of where they're going, going forward.

CHATTERLEY: Where are they going forward? Because you raise a great point. You have to take this number with a little bit of a pinch of salt, quite

frankly. China will announce whatever growth number they feel comfortable with. And this is them basically saying, look, this is a good number, given

all the challenges, and where is it when we're talking about productive employment as well? Because I always feel like the trigger for them is

where is the growth that we're seeing that can maintain the level of employment that we need, otherwise, we start stimulating again?

MILLER: Julia, that's exactly the right area of the economy to be focusing on.

When we look at the performance of the Chinese economy right now. It doesn't look good. And you know, there was basically a flat growth from Q2

to Q3. That's exactly what we saw in China Beige Book data. So that's not surprising.

What's surprising to markets it seems is that this weakness in the data hasn't been responded to with some sort of stimulus, aggressive stimulus.

RRR cuts, whatever it might be, and the reaction to this should be one relief that's China's playbook is breaking down, but also a realization

that things aren't quite as bad as they seem from the government's point of view.

You ask about growth, our overall job growth is still looking okay. Manufacturing job growth has slowed down a lot, but it's still okay.

Services job growth which has gotten harangued by people because they thought COVID and supply chain breakdowns were crushing services. No, look,

services job growth is doing okay.

So when the government looks at these numbers, they're not looking at some GDP number to try to figure out whether they're -- whether they're going to

panic. They are looking at jobs and the job situation in China is actually okay right now and that's why you're not seeing big stimulus.

CHATTERLEY: And I mentioned in the introduction here, a lot of this is engineered, too. I mean, we know that supply chains are challenging all

around the world. We know that there is a power crunch going on in China, and they're ramping up coal production in order to perhaps offset some of

that as well.

But the other things about them tinkering with the economy, taking some of the steam out of the property sector, challenging some of the powers of Big

Tech. They are very conscious, I think of inequality, wealth gaps. It's about tinkering with the economy and surely this should be a good thing.

It's about quality growth as opposed to the magnitude.

MILLER: That is what it is about. And you know, Western economists have been lecturing the Chinese for years and years and years, you know, you

need to have slower, healthier growth, and stop relying on so much debt, which of course, is hypocritical.

But look, what we're seeing right now is Beijing de-risking parts of its economy. Earlier in 2021. We saw a significant de-risking of the financial

sector and we look at our credit gauges. Borrowing has just gone down, down, down. Credit tightening has been across every sector, every cohort,

every size firm throughout 2021.

You move deeper into 2021 and you've seen the property sector de-risking.

[09:50:03]

MILLER: Now, Evergrande didn't happen on an island. Things got tough in the property sector because from on top, they said, look, you use unlimited

amounts of debt anymore.

So this has been a de-risking throughout 2021 from the very top, and the fact that they are announcing lower numbers in response to this de-risking

is all very positive, I think.

CHATTERLEY: Anything to fear -- very quickly -- in systemic terms by what we're seeing in the property sector and Evergrande? It's not the only

property developer that's had some challenges.

MILLER: I'm not worried about Evergrande because Evergrande is a property distress story, not a financial sector distress story.

CHATTERLEY: Right.

MILLER: What is worrisome from the macro outlook is whether there is a growth driver to replace property going forward and that is nowhere obvious

in any of our data or anywhere across the Chinese economy right now.

CHATTERLEY: Yes, so it's not a financial systemic risk, but it's about future growth and how they are going to offset perhaps the slowdown in the

property sector.

We'll reconvene on this conversation. Leland, great to chat with you as always. Leland Miller, CEO of China Beige Book, and thank you for bearing

with us with some of the delays today.

Okay, up next 10,000 new Facebook posts for Europe. The tech giant hires for the metaverse with Brussels in mind. We'll explain, next.

(COMMERCIAL BREAK)

CHATTERLEY: Welcome back to FIRST MOVE.

Metaverse mega hire. Facebook plans to recruit 10,000 people in Europe over the next five years. They will help develop quote, "The Metaverse," the

company's newest product.

It's a virtual reality world that would allow users to interact online. Anna Stewart joins me now.

Anna, you get the best jobs. Let's set the metaverse aside for a second and just explain the jobs because it makes sense to me for Facebook to be

targeting Europe given how active the regulators are there, but which country specifically? Is it Europe or the E.U.?

ANNA STEWART, CNN REPORTER: Very much the E.U., not Europe, i.e., not the U.K., no jobs for here, but it was really interesting. As soon as I saw

their headline, 10,000 jobs over the next five years in the E.U., you think, as you did, interesting, because they've had a rough ride here in

the E.U., haven't they? Particularly given the E.U. Commission and the antitrust probes into a variety frankly of U.S. tech companies.

But most recently in June, they launched an investigation into Facebook. Ireland recently slapped WhatsApp with a massive 225 million euro fine,

which Facebook are appealing and they want to hear from the whistleblowers. They've invited them to appear in the E.U. Parliament in November.

SO while this is very much Facebook investing in the E.U. and in jobs, it's also on the flip side, going to hopefully make Europe more invested in

Facebook and their future.

CHATTERLEY: I've just been told, you've got one minute, Anna, better and better. So now you have to explain to a mesmerized audience what on earth

is the metaverse and what does one require in order to work in it?

[09:55:00]

STEWART: Great. I've got about 30 seconds then to tell you all about the metaverse.

I imagine there was a huge spike in search engines of people typing in "What is the metaverse?" If you took it to its absolute extreme, we are

talking about the matrix, living your life virtually online.

I can see you, Julia, as an avatar shopping in a virtual shopping mall for your avatar's virtual outfit, using of course cryptocurrency. You would

love that. But what we're talking about here is a much more blended experience really, and some of us have actually already dipped our toes

into the metaverse using VR and AR, whether it is multiplayer games, whether it is socializing online, or attending a virtual conference. This

is the blend we're looking at.

Facebook is not the only company that are really invested in this. Lots of game developers like Epic Games, Roblox, and also chipmaker NVIDIA all very

keen on this space. I think there is something here, but possibly not too extreme, at least not for me. I'm not joining the matrix anytime soon --

Julia.

CHATTERLEY: Good job, Anna Stewart. I don't know why I've got this reputation as being a shopaholic from. It is deeply inappropriate. Anna

Stewart, thank you very much for that.

We will see you tomorrow. That's it for the show.

Stay safe. "Connect the World" with Becky Anderson is next.

(COMMERCIAL BREAK)

[10:00:00]

END

END