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First Move with Julia Chatterley

Novak Djokovic's Australian Visa Revoked for Second Time; Report: No. 10 Parties Held on Eve of Prince's Funeral; Major Cyberattack on Ukraine Government Websites; Prince Andrew Stripped of Military Titles Amid Sex Abuse Case; China Denies MI5 Claim that UK Lawyer is a Chinese "Agent"; Sources: Netanyahu Discusses Plea Deal in Corruption Cases; U.S. Banks Kick Off Q4 Earnings Season; Kazakhstan's President: Restoration of Almaty to Take Months; U.S. FDA Authorizes Siemens Healthineers COVID-19 Test; Zero- COVID Puts Brakes on Air Cargo into Hong Kong; Robo-Barista Serves Richard Coffee. Aired 9-10a ET

Aired January 14, 2022 - 09:00   ET

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


[09:00:15]

ZAIN ASHER, CNN ANCHOR: Live from New York, I'm Zain Asher in for Julia Chatterley. This is "FIRST MOVE." And here is your need to know.

Djokovic drama. The tennis star's Australian visa is canceled again.

And another apology. Boris Johnson's government says sorry over more party allegations.

And cyber scare. Ukraine's government is hit by a widespread hack attack.

It is Friday. "Let's make a move."

(MUSIC PLAYING)

A warm welcome to all of you watching "FIRST MOVE." Great to have you with us once again.

Lots of market-moving news this Friday, including the formal start of the U.S. earning season. And the latest look at U.S. retail sales. The all-

important holiday shopping period just released numbers show sales falling by a much weaker than expected, 1.9 percent last month.

All of this is banking giant's JPMorgan, Wells Fargo and Citigroup released better-than-expected fourth quarter profits. And JPMorgan and Citi's

results however coming in lower year over year.

U.S. stocks on track for week open as investors inspect the data. They're still passing through it. Stocks are set to extend yesterday's broad-based

losses. That so interest rates sensitive tech falling more than 2.5 percent.

The Nasdaq breaking a three-day winning streak as hot inflation data raise the chances of aggressive Fed tightening. A number of Fed officials talking

tough yesterday on the need to pull economic support quickly.

Certainly, a busy Friday for you ahead. Let's get right to the drivers.

Novak Djokovic will be detained by Australian authorities on Saturday ahead of a federal court hearing. This comes hours after the country's

immigration minister revoked the tennis star's visa just ahead of the Australian Open saying it is in the public interest to do so.

Let's bring in Amanda Davies.

So, Amanda, at this point in theory, Amanda, in theory, he's still set to play on Monday. But in reality, how likely is that really?

AMANDA DAVIES, CNN WORLD SPORT: Yeah. Absolutely, Zain. Novak Djokovic is still there listed in the draw as the number one seed to begin the defense

of his Australian Open title on Monday against fellow Serb Miomir Kecmanovic. But we very rarely if ever seen Novak Djokovic give up a fight

on the tennis court. And he is certainly not giving up the fight here to stay in Melbourne. Anybody who's expecting the decision by Australia's

immigration minister on Novak Djokovic's visa would be the end of the matter will be sadly disappointed.

We did it 6:00 p.m. on Friday evening here from Alex Hawke the immigration minister saying as you said, he has cancelled the visa on public interest

grounds for reasons of health and good order. But it took just a matter of hours for Novak Djokovic team to launch an appeal. Against that, the case

was back in court with Novak Djokovic, his lawyers talking about the decision being patently irrational as an emergency hearing.

So, whilst Novak Djokovic isn't in detention this evening. The case has now been referred up to a federal court. We understand he is set to meet with

Australian Border Force officials for another immigration hearing on Saturday morning. At that point, he is being expected to be taken back into

detention ahead of an initial federal court hearing Saturday with a more final one on Sunday where perhaps a final decision will be made.

There is no doubt the growing feeling is that this has just become a complete mess. And nobody is coming out of it looking well. Not the

Australian governmental officials, not Tennis Australia, organizers of the Australian Open, not Novak Djokovic or the tennis community. The fact that

the top-ranked male tennis player in the world at one of the biggest sporting events on the planet that this is unfolding and continuing to

unfold in the final hours before the start of the tournament really just doesn't reflect well.

ASHER: That's incredible that it's really come down to the wire. We'll see what happens over the next two days.

[09:05:01]

Amanda Davies, live for us there. Thank you so much.

All right. No. 10 Downing Street has apologized to Queen Elizabeth for two lockdown breaking parties held the night before her husband's funeral. The

COVID rules the government put in place meant that the following day the queen had to mourn Prince Philip alone by herself. It is the latest

revelation that Prime Minister Boris Johnson and his staff enjoyed a series of social gatherings while the country was under lockdown. Will he, of

course, see that as very unfair?

Salma Abdelaziz joins us live now from London.

So, Salma, you and I have talked about the sort of string of scandals - the litany of scandals that have followed this prime minister for the past

several months, if not longer. How on earth has he been able to keep his job through all of this?

SALMA ABDELAZIZ, CNN REPORTER: It's a good question, Zain. More I'm sorrys today from 10 Downing Street. More apologies. This one, though, is really

going to hit hard, Zain.

What the prime minister's apologizing for today is a party that took place the day before the queen buried her husband. I want to bring that picture

up for our viewers. Of the queen sitting alone at the chapel by herself saying good-bye to her husband of more than seven decades, with no one

beside her. No one to comfort her. She is not alone in that. There are tens of thousands of people who have died of COVID over the last couple years.

And many of those families did not get to say good-bye to their loved ones. Many people in this country watched funerals over live stream.

So, for 10 Downing Street to hold two parties on the night before the queen buries her husband is really going to strike at heart of what this is

about. It's about the sense that there is one rule for them and another rule for the rest of us.

Now, Prime Minister Boris Johnson was not in attendance at this alleged party that occurred in April of last year. We understand that the party was

held as a leaving do for a communications chief, the former director of communications, for Prime Minister Boris Johnson and local media is full of

salacious details about this party.

I'm going to bring up one up from the "Telegraph" which broke this story that someone was sent out to get -- with a suitcase to get more booze, a

suitcase full of booze. And that's really the headline you are seeing in this country today. Yet again, more stories, more allegations of parties

occurring at Downing Street when people were making great sacrifices in this country.

Prime Minister Boris Johnson right now is quite literally fighting for his political career and more is to come, Zain, because there is an

investigation underway right now into all of these alleged parties that span now over the course of two years, multiple lockdowns, multiple periods

of this pandemic, there is a lot there that could come back to bite the prime minister.

ASHER: Yeah. Let's talk about that investigation that you just brought up. It's going to be conducted or it is being conducted by Sue Gray, a senior

civil servant. We're supposed to get the results of that investigation, I think, early next week, Salma. If the results of that investigation prove

that the prime minister and his office did, indeed, flout rules, what happens then?

ABDELAZIZ: A lot is going to happen from that point forward. You have a couple things that you need to find out with that investigation. How

implicated is the prime minister? Because this is going to compromise his reputation, his credibility and most importantly his support within his own

party.

If the prime minister is directly implicated in this investigation, if he is directly accused of breaking COVID rules, you can watch and wonder if

he's going to hold on to his seat. Then there is the possibility of a Met Police investigation, of the police getting involved, if this is triggered

into a -- moved forward essentially into a police investigation.

So, you have many aspects here that absolutely have the prime minister biting his nails. That investigation is something he kept pointing to, a

way to kick the can down the road. At no point, I think, any observer would tell you, seeing a prime minister who is in denial, denial, denial, denial

mode. Did he really want to admit to something before this investigation? He clearly has.

You have to wonder what pressure Prime Minister Boris Johnson is under internally. We know externally he now has the lowest approval ratings he's

had since he took office. So, this is going from bad to worse for the prime minister.

ASHER: Salma Abdelaziz, live for us. You've always done - I have to say, you've always done a fantastic job covering the stories, Salma. Thank you

so much.

All right. Be afraid and wait for the worst. A threatening warning to Ukrainians after a widespread cyberattacks brought down a number of

government websites, including that of the foreign ministries.

Sam Kiley is in Kyiv for us with more on this story.

So, we don't know for sure, Sam, at this point who is behind these cyberattacks, but all eyes right now are looking toward Russia. Walk us

through it.

SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yeah. Inevitably, Zain. Given that Russia has 120,000 troops close to the Ukrainian border in a

kind of arc-shape around the east of the country.

[09:10:04]

It's got cover operators inside the dumbass region. It's backing rebels in dumbass. It's illegally annexed Crimea. That all happening after 2014 and

he has form for much, much more sophisticated cyberattacks around the world, notably in the United States.

Of course, the Ukrainians will be looking instinctively blaming Russia for an attack that is threatening, intended to do perhaps raise tensions

psychological, there is no serious damage done. It's very low level close to a denial-of-service type attack affecting websites only. The government

here insisting there has been no theft of personal details. No penetration of any serious ministries. No threat to critical national infrastructure.

But in the context, of course, we'll be seeing inevitably as a part of the continuing psychological pressure being put on Ukraine and part of the

rhetoric that has emerged, Zain, after a week of frantic diplomacy involving talks to Russia and the United States, Russia and NATO, emergency

meetings held, the OSCE and so on, all intended to try to deescalate to get Russia to pull its troops back from a very threatening posture on the

border with Ukraine.

The Russian countering that they would only do that if NATO rolls back its presence in Eastern Europe 30 years and promises in writing that the

Ukraine, Georgia or other East European nations can never join NATO in the future. Something that of course NATO has rejected out of hand.

So, the interesting issue now will be all eyes will be on the Kremlin really is to this what Vladimir Putin decides to do next if this cyber

operation can be attributed to the Russians. Then it needs to be seen in the context of that continued effort to maintain pressure and noise around

this subject. Zain?

ASHER: Sam Kiley, live for us. Thank you so much.

North Korea firing what appeared to be two ballistic missiles into the sea of its east coast. This comes after the U.S. imposes new sanctions against

the North after Kim Jong-un's regime claimed its successfully test fire a hypersonic missile this week.

I want to bring in Selina Wang joining us live now from Tokyo.

So, Selina, at this point, what more do we know?

SELINA WANG, CNN CORRESPONDENT: Well, Zain, this is the third missile test from North Korea in just two weeks. And it came just hours after North

Korea lashed out at the U.S. for its sanctions and threatened further action if the U.S. helps to impose further sanctions.

Now, North Korea often argues that it has a right to develop its military to prevent itself, protect itself against any potential aggression from

South Korea and the United States.

Now the U.S. on Wednesday had imposed sanctions on North Korea and Russian individuals with ties to North Korea's missile programs.

Now this particular time South Korea's military said that for this most recent test, it was launched into the sea off its east coast to what

presumed they said, presumably were short range ballistic missiles.

Now this also follows a test on Tuesday that North Korea claimed was a hypersonic missile.

Now, experts say that this would be a game changer since hypersonic missiles can travel theoretically as fast as 20 times the speed of sound in

the air. But experts are doubtful that it was actually that sophisticated. Being said, South Korea's military did say it was more advanced.

ASHER: All right. Selina Wang, we actually unfortunately can't hear you. We're having audio problems with us. Selina Wang's microphone. So,

unfortunately, we're going to have to move on.

OK. These are the stories making headlines around the world.

Britain's Prince Andrew has been stripped of his military titles and his roles with royal charities after a New York judge ruled that a sex abuse

lawsuit against him could move forward. That laid the ground for a possible public trial in the case. As so says the queen's dear child will no longer

be referred to as his royal highness.

China is denying allegations made by Britain's domestic spy agency. The London-based solicitor Christine Ching Kui Lee is a Chinese agent. The UK's

MI5 says that Lee is active in UK politics covertly establishing links with the current and aspiring members of parliament. China's foreign minister

says the claim is groundless and alarmist and that Beijing has no need for quote, "interference activists."

Former Israeli Benjamin Netanyahu is believed to be negotiating a plea deal in his corruption case. Sources tell CNN, the agreement could see one of

the three cases against him shelved and the most serious charge of bribery dropped. There's apparently disagreement over the sentence he would face

which could determine if he can run for office again.

All right. Still to come here on "FIRST MOVE."

A mixed bag for big banks. We dig into the latest earnings from JPMorgan, Wells Fargo and Citigroup.

And the U.S. approves a new rapid test in the fight against Omicron. I speak with the CEO, manufacturer Siemens Healthineers. That's next.

(COMMERCIAL BREAK)

[09:17:42]

ASHER: Welcome back to "FIRST MOVE" coming to you live from New York.

U.S. stocks remain untracked for a week open, a solid stock to fourth quarter earnings season. But big retail sales missed. U.S. sales falling

almost 2 percent last month, chalk it up to perhaps the spread of Omicron and consumer shopping early.

All the major U.S. averages are now lower for the year with tech performing the worst down more than 5 percent.

Major U.S. banks however enjoying a strong start to 2022 with many big names up double digits. Banks unlike the riskier tech names thrive in a

higher rate environment. They closed out 2021 and certainly a pretty strong position too with Citigroup, JPMorgan and Wells Fargo all reporting better-

than-expected results. But rising costs are biting into profits. Trading results are also coming under pressure as well.

Alison Kosik joins us live now.

So, Alison, you have been digging into the numbers for Wells Fargo, JPMorgan, Citigroup. Just walk us through what we are learning about these

earnings.

ALISON KOSIK, CNN CORRESPONDENT: So, JPMorgan is really coming into focus, Zain. We are seeing shares of JPMorgan right now falling more than 4

percent in the pre-market. And that's despite a strong fourth quarter report card coming from JPMorgan including a $10.4 billion profit that

exceeded forecast. Earnings show the bank didn't take an expected hit on credit losses. In fact, the bank wound up taking a $1.3 billion benefit

from releasing reserves for loan losses that never materialized.

So, its earnings actually were down 14 percent in the fourth quarter -- from a year ago in the same quarter, the fourth quarter. And that's because

of trading revenue falling. Trading actually revenue powered JPMorgan over the past couple of years. So now we are seeing it kind of trail off from

the strong pace that it's been on. So that's part of the reason we are seeing shares in the pre-market falling.

We did see shares take a leg lower than when the pre-market. As we got on this media call with JPMorgan CFO Jeremy Barnum who basically said

inflation could wind up affecting JPMorgan by offsetting some of the gains it would see because of higher interest rates.

[09:20:00]

Barnum saying that the pressures on expenses, the pressures from inflation would hurt expenses and leave what he called, sub-target returns. That we

saw certainly hit investors. They've started selling in the pre-market JPMorgan shares.

Bright spot for earnings, loan growth returned its part of JPMorgan's businesses. It's earning show average loans rose 6 percent in the fourth

quarter. You know JPMorgan and other big banks as you know are benefiting from rising interest rates. They make a bigger profit on those higher - on

those loans if there are higher interest rates. We've also seen commercial lending rates rise as well in anticipation of the Federal Reserve raising

interest rates this year as well.

One theme that I am seeing, however, is that consumers are still stockpiling cash. JPMorgan in particular deposits were up 18 percent. And

that's happening in its wealth management division. Zain, I also saw a similar trend in the earnings of Wells Fargo.

ASHER: And then let's talk about JPMorgan, specifically. Because Jamie Dimon is sounding very upbeat not just about earnings but about the state

of the U.S. economy overall. Walk us through that.

KOSIK: Yeah. JPMorgan is often seen as a bellwether and a barometer of the health of the U.S. economy. So, when Jamie Dimon speaks, we kind of listen.

And he did sound upbeat in a release as JPMorgan released its earnings. He sounded upbeat not just about the quarter but about the full year of 2021

saying this.

That the economy continues to do quite well despite headwinds related to Omicron, inflation and supply chain bottlenecks. Credit continues to be

healthy, he said, and we remain optimistic on U.S. economic growth.

So, it's a very different tune that Jamie Dimon the CEO of JPMorgan is singing compared to last year when he called loan growth quote,

"challenging." And that was due, in part to government stimulus programs which you know sent cash to businesses and consumers and round up resulting

in stagnant loan growth.

But if you look at how banks have done, they've rallied. So far this year, up until today, it looks like it's going to be a rough day for the bank

today. And as you showed earlier, banks have outperformed the market over the past six months. Zain?

ASHER: Alison Kosik, live for us. Thank you so much.

And investors hope that strong profits and solid economic fundamentals can help offset Fed moves to tighten financial conditions.

Kristina Hooper joins us live now. She's the chief market strategist at Invesco.

Kristina, thank you so much for being with us.

So, what do the earnings, first of all, I want to start with the bank earnings. What do the earnings from the big banks tell us right now about

the overall outlook for the U.S. economy?

KRISTINA HOOPER, CHIEF GLOBAL MARKET STRATEGIST, INVESCO: Well, certainly the earnings tell us that we are on the road to normalization. And that -

and by that, I mean, that all the kinds of aberrations we saw as part of the pandemic are starting to dissipate. Think about trading revenues. That

went up a lot during the pandemic. That was an unusual environment. I would call it hyper trading. And so, that's coming down and the expectations are

that it will come back down more to more normal levels.

There is an expectation that we're going to start to see rates go up, of course. That's all a part of the normalization of the economy as we move

away from pandemic conditions to be kind of environment -- we had the normal environment we had in 2019. So that carries with it some positives

and some pain.

ASHER: Right, because -- let's talk about rising interest rates as well. Because the banks so far have certainly benefited from loan growth, but

they're set to really benefit from rising interest rates. Just explain to us how much and what sort of revenues increases the banks could see.

HOOPER: Well, it could be significant. Again, it really depends on where the rate environment goes this year. But we know that net interest income

is important. That's the spread between the interest the banks are getting on the assets they own, including mortgages versus the interest that

they're paying out on deposits. So, when rates go up, that tends to be a positive. That could be quite significant for banks.

At the same time, though, always the concern when the Fed raises rates is that it doesn't raise rates so much that it chokes off the economic cycle

and essentially plunges on economy into recession, which could be of course very problematic for banks. They have benefitted from improving credit

quality. So, it is always a very fine line that the Fed walks in terms of raising rates and certainly helping banks. But possibly creating even

bigger problems by raising rates too much. And choking off the economic cycle.

ASHER: As you mentioned, that is a very important fine line that Fed ends up having to walk.

[09:25:02]

So, what do you think -- what do you think the stock market reaction overall will be this year just in terms of how volatile the stock market

might be because of rising Fed rates and also the Fed shrinking its balance sheet, too?

HOOPER: Well, certainly my expectation is that we experience a deceleration in economic growth. That makes sense, we're withdrawing stimulus, not just

the monetary stimulus you talked about. Raising rates, tapering, the balance the balance sheet, tapering asset purchases and, of course,

shrinking the balance sheet. But we also are removing fiscal stimulus. So, that's -- that's likely to have an impact on the economy.

I think we'll still be above trend growth. But it will -- we'll see a deceleration. Even a slowdown environment, that phase of the economic cycle

typically needs to see a convergence in asset class returns. Equities are not going to have the kind of robust returns typically that we would - that

we saw, for example, in 2021.

That's OK. That's a part of this environment. I still expect positive returns. But I think we should anticipate more muted returns and not that

big a difference between, for example, fixed income returns, and equity returns.

ASHER: OK. So, more muted returns. But what types of stocks do you think are going to be that much more vulnerable to hawkish Fed policy?

HOOPER: Well, the conventional wisdom suggests that tech is most vulnerable, right? Because when - you know their high valuation, long

duration. So, when rates go up, there is a re-rating. And, of course, that hurts tech stocks. And we did see a little of that. And we've seen that in

the past as well.

But I would argue, actually, that once we go through a short-term digestion period, there is still opportunity for tech. And, in fact, for growth and

defenses in general this year. In the early part of the year, we are likely to see cyclical outperformance. But because of the slowed down environment

that we're in for developed markets, I would anticipate that growth performs better, larger cap performs better, including areas like tech,

like healthcare.

ASHER: All right. Kristina Hooper, live for us there. Thank you so much.

HOOPER: Thank you.

ASHER: And stay with "FIRST MOVE." The market open is up next.

(COMMERCIAL BREAK)

[09:30:30]

ASHER: Welcome back to "FIRST MOVE."

U.S. stocks are up and running this Friday ahead of a long holiday weekend. Monday is actually Martin Luther King Day in the United States. And stocks

currently are on track to end the week on a down mode. All the major averages falling in early trading with tech stocks pacing the declines. We

get an expected read on U.S. retail sales, certainly not helping sentiment at all.

Banking giant JPMorgan and Citigroup pulling back in early trading, Wells Fargo faring better. You see it's up slightly. Good fourth quarter earnings

are from the banks overall. Investors perhaps focusing on pressures going forward including on certain loan growth, higher costs and weaker trading

volumes.

All right. Back to our top story.

Novak Djokovic expects to be detained Saturday ahead of a court hearing. This comes after Australia canceled the world premiere - the world number

one tennis player's visa for a second time, just three days before the Australian Open.

Paula Hancocks is live for us in Melbourne with more on this. So, at this point, obviously, his lawyers have appealed. Is there any chance - I mean,

there's only three days to go. Is there any chance that he could win this appeal? Just walk us through it.

PAULA HANCOCKS, CNN CORRESPONDENT: Well, Zain, he's certainly fighting it as we all expected him to do. So, it's less than seven hours now that we

will be, we understand, that Novak Djokovic will have to go for an interview with immigration officials. This was all decided in a hearing

this Friday night which was convened just three hours after the Immigration Minister Alex Hawke decided to cancel the visa.

So, what we understand is he hasn't been detained. Up until this point, he is still staying at his rented accommodation here in Melbourne. But then,

8:00 a.m. Saturday morning, local time, he will be interviewed, once again by immigration officials. He will be officially in detention. He will be

escorted by two Australia Border Force officials to then go to his lawyers.

And now this has been also referred this case to a higher court. It's been referred to the federal court of Australia. And that court has a listing

for 10:15 in the morning for the initial hearing for this case. So, this is moving fairly quickly.

The immigration minister deciding that he was going to cancel the visa. He said, on health and good order grounds on the basis that it was in the

public interest to do so.

Now, we did get some insight into what those reasons might have been this Friday evening when we were listening to that hearing. The lawyers for

Djokovic alluded to the fact that the minister was talking about Djokovic being in the country would quote, "excite" anti-vax sentiment in the

community.

So, that gives us some idea of one of the arguments that the government might be giving in order to try and push this cancellation of the visa

through. So, we will be hearing more through the courts on Saturday. The lawyers for Djokovic also said in a hearing Friday night, the time is of

the essence. As you might imagine, the Australian Open starts on Monday, Djokovic is slated to play in the first round on Monday. His lawyers

saying, they would like a decision before that. Zain?

ASHER: And what's been the reaction to this latest decision from the Australian public?

HANCOCKS: Well, this has been playing out for some time. So, I think for some it's a sense of relief that the decision has been made. Many I've

spoken to have said that this isn't good for anyone. This is embarrassing for the Australian government. It's embarrassing for Novak Djokovic. And

it's certainly embarrassing for Tennis Australia who holds the Australian Open.

But there has been an overwhelming feeling from those I have spoken to that there shouldn't be special rules for certain celebrities or for people

coming in. The fact that Novak Djokovic decided not to vaccinate himself and came into the country knowing that the rules were, you have to be fully

vaccinated or you have to have a medical exemption why there is a medical reason you can't be vaccinated.

Now, Novak Djokovic and his lawyers say that he did have a medical exemption and they believe that was enough. But certainly, the feeling

among many in Australia is there shouldn't be a different set of rules for some people coming in.

Now, we heard from Scott Morrison, the prime minister as well saying that Australians have made many sacrifices during this pandemic and rightly

expect the results of those sacrifices to be protected.

[09:35:03]

Now, of course, there are other who believed that this has just dragged on too long and that he should be allowed to play at the Australian Open. But

I think looking at some local polls, the majority, it appears at this point believe that he should have had his visa canceled if he did not meet the

criteria for coming in. Zain?

ASHER: Paula Hancocks, live for us there. Thank you.

All right. Clean-up efforts are underway in Kazakhstan after mass protests in several parts of the country triggered a violent government crackdown. A

resident says it could take at least eight months to restore the damage done in the largest city, Almaty.

Fred Pleitgen is there. He joins us live now.

So, Fred, just set the scene from where you are earlier in the day just a few hours ago, I saw you outside a massively chard building. I think that

was the mayor's office.

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: You are absolutely right, Zain. That was the mayor's office. And I think when you

hear the authorities here in the country in Kazakhstan say that they believe it could take up to eight months to really restore everything and

to rebuild everything, it certainly seems that could very well be the case. There are several government buildings just here in Almaty that certainly

seem very much damaged by those violent protests that happened here. But of course, similar things happened in the other cities as well.

However, what we did see today is also, was a massive government effort to get things underway to clean things up as fast as possible. Here's what we

saw.

(BEGIN VIDEOTAPE)

PLEITGEN (voice-over): Inside the charred carcass of the Almaty mayor's office, a massive cleanup is now underway. By hand and by machine, work has

started to repair the damage caused by violent protests that gripped Kazakhstan.

CNN is the first media outlet allowed inside to survey the extent of the damage.

(on camera): The authorities have brought in dozens if not hundreds of workers to clean up the aftermath of what were those street battles here in

Kazakhstan's largest city of Almaty. And it's really remarkable to see the full scale of the destruction here in the mayor's office as the authorities

here say rioters entered this building and set fire to all of it.

(voice-over): Kazakhstan's officials say they were dangerously close to losing control not just here in Almaty but other places across the country.

Kazakhstan's president said protests that were originally against high fuel prices were hijacked by what he calls quote, "terrorists."

He issued a shoot-to-kill order and summoned an international military force led by Russia.

KASSYM-JOMART TOKAYEV, KAZAKHSTANI PRESIDENT (through translator): We prevented dangerous threats for our country's security. As part of the

counterterrorist mission, we are trying to identify people who committed those crimes.

PLEITGEN: The government says things are now largely under control and there is evidence of that across the city, life is almost back to normal.

The Russian-led military force has started its withdrawal. Although, that process is said to take another nine days. But authorities say their

crackdown will continue.

Around 10,000 people have been detained and more than 160 killed.

Opposition activist Zhanbolat Mamay was at the protest. He says things started peacefully, but then he, too, was beaten by what he calls

provocateur. He provided us with this video seeming to show what happened and these photos of what he looked like after the attack. Mamay says he

believes the rioting was a pre-text for a violent crackdown.

ZHANBOLAT MAMAY, OPPOSITION ACTIVIST: The government decided to slaughter their own people and one more great problem I think is that it was done not

only with the help of Kazakhstani security forces but with the interference of Russian troops.

PLEITGEN: Kazakhstan's leadership denies attacking peaceful protesters and says they've launched a full investigation into who was behind the violence

that erupted. Meanwhile, the country's president has vowed to improve people's living conditions and rebuild the sites damaged as fast as

possible.

(END VIDEOTAPE)

PLEITGEN (on camera): And I do think, Zain, that it is really part of the government's strategy to really show that it's starting to rebuild as fast

as possible. And this might be the beginning as they put it of a new era here in Kazakhstan. Certainly, the government has, and the president has

said that there are going to be political reforms or are going to be social and economic reforms as well to make sure that more people actually get

better living than they had in the past.

But one of the things that we also have to keep in mind, which is very important, especially for Kazakhstan as well. It is the fact that this

country is an economic powerhouse here in this region. And quite frankly also to a certain extent globally as well. There are a lot of international

investors here. This country does have a lot of very important raw commodities.

And one of the things the government has told me, they want to show is they want to show that they are reliable as a business partner and that things

here are going to continue and that there's going to be no stop to doing business here in Kazakhstan as well. Zain?

ASHER: Fred Pleitgen, live for us. Thank you.

All right. Up next.

The U.S. approves a new at-home test as it grapples with a COVID surge. I speak with the CEO of the company behind it.

(COMMERCIAL BREAK)

[09:42:43]

ASHER: The U.S. is grappling with a shortage of COVID-19 tests, just as the Omicron variant drives a surge in cases. On Thursday, the Biden

administration said it will double the number of tests its buying to 1 billion. Although, it's not yet clear when exactly they'll be available.

Testing capacity was given another boost last week when the U.S. approved a new at-home rapid test by Siemens Healthineers.

Joining me live now is Bernd Montag the CEO of Siemens Healthineers.

So, Bernd, thank you so much for being with us.

Just talk to us a little more about these tests run by your company that will be available in the U.S. Just in terms of things like how long it

takes to receive result and how they compared to other rapid tests, at-home tests that are already on the market.

BERND MONTAG, CEO, SIEMENS HEALTHINEERS: Yes. So, thank you for having me.

And the tests we are providing is already - greatly contributed already to dealing with the pandemic in Europe. Now we have sort of the test tool in

many European nations like also for the school systems for the last 12 months. We have now approval also for the U.S. It is tests which delivers

results within 15 minutes and it is seen and evaluated as one of the most accurate and entry level tests on the market.

ASHER: And what about its ability to detect specifically the Omicron variant? How sensitive is it to that variant?

MONTAG: So, I have also the head of very, very close eye (INAUDIBLE) a research team which looks at and follows the variants and it is providing

similar results or more or less the same level of quality when it comes to Omicron as it does for Delta and the previous variants.

ASHER: Will you have to possibly update these rapid tests as more and more variants continue to emerge?

MONTAG: We have, as I said, a very, very close eye on this and a dedicated team. So far, this was not necessary.

[09:45:05]

If future variant would make it necessary, we would, of course, do that.

ASHER: You know, one of the issues I think that people worry about with at- home testing is the accuracy.

I know that you know your at-home test kits are sensitive as you mentioned to the Omicron variant. However, you know, we all sort of are aware that

PCR testing is considerably more accurate than rapid testing.

Just explain to us what the standards are for being able to provide a rapid at-home test kit in the U.S. and sort of the accuracy of the results? So,

for example, how many sorts of false positives during sort of trials did you guys end up seeing?

MONTAG: Yes. I mean, here we are in the among the best tests and I think the neutral, we reframe the discussion here a little bit because when it

comes to comparing PCR to antigen tests or rapid tests, it is about having tests, which give an immediate result, so that you will and which you can

perform by yourself, so it is really not, it is a little bit like comparing apples to oranges. And from that point of view, an antigen test plays a

significant role which a PCR test cannot play. And that is, you do it yourself and have an immediate result. And that is why they play such an

important role in the situation of a pandemic.

ASHER: So, you are saying it doesn't -- it's not really fair to compare them because yes PCR tests are more accurate, but at-home rapid tests play

an important part because you know you can do it yourself. You can do it easily and you can do it at home. As more and more people get boosted, as

more and more people get vaccinated overall, how do you think that will affect the demand for at-home testing?

MONTAG: See, I mean, we will I think we currently see with the Omicron wave is a bit of an unprecedented development, yes? And - but we know that

testing remains a very, very important tool to fight the pandemic. We know that - that also vaccinated people can - can carry the virus. So, from that

point of view for the foreseeable future of the next -- in this year at least in the first half of this year, testing and especially antigen

testing or rapid testing will continue to play a major role in society.

ASHER: All right. Bernd Montag, CEO of Siemens Healthineers. Thank you so much.

MONTAG: Thank you.

ASHER: All right. Coming up next here on "FIRST MOVE."

Hong Kong is feeling the pressure when it comes to paying for every day goods as prices surge because of supply issues. We hear from people in the

city, next.

(COMMERCIAL BREAK)

[09:50:22]

ASHER: To Hong Kong, where the city's strict COVID policy is taking a significant toll on the economy. Flights bring in goods and supplies are

being cut, meaning consumers are having to pay more for everyday items.

Kristie Lu Stout has more.

(BEGIN VIDEOTAPE)

KRISTIE LU STOUT, CNN CORRESPONDENT (voice-over): Empty terminals, board staff and flight displays with cancellation after cancellation. Two years

of pandemic have empty what was once one of the busiest airports in the world.

(on camera): As the city tightens restrictions amid an Omicron outbreak, flagship carrier Cathay Pacific is slashing flights with air cargo capacity

cut to 20 percent of pre pandemic levels is putting pressure on supplies of fresh produce and a plethora of goods not made in Hong Kong.

(voice-over): The Hong Kong Transport & Housing Bureau tells CNN it has been closely communicating with the aviation industry with a view to

maintaining smooth air cargo services into and out of Hong Kong and addressing the basic daily needs of society while safeguarding public

health.

The city's economy is highly dependent on trade relying on imports for food and consumer goods. And with the squeeze on cargo, industry experts have

warned of a sharp rise in prices. And what was already one of the most expensive cities in the world.

Hong Kong logistics trade body chief says shipping costs is expected to go up 20 to 30 percent. And such increases will be passed on to Hong Kong

consumers.

Cathay says the sharp cargo reductions will likely remain in place until March. The announcement follows temporary flight bans on several countries

including the U.S. and UK and new quarantine requirements for air crew.

Hong Kong is holding firm to a zero-COVID policy with strict quarantines and border restrictions. And while the tough policy has saved lives, it is

also isolated the ones thriving business and logistics hub.

In November, FedEx said it would close its crew base in the city. Even air mail to countries like the UK has been suspended. International trade

groups have warned Hong Kong could lose talent and investment unless it relaxes its restrictions.

BRENDAN SOBIE, INDEPENDENT AVIATION ANALYST: I remain concerned about Hong Kong's position as a hub long term because of the very strict policies and

strict zero-COVID strategy of Hong Kong and its lack of a recovery. So far, basically, the gap between Hong Kong and other hub airports in Asia Pacific

is widening.

STOUT: The Hong Kong government maintains the curbs are essential for public health and to allow the city to reopen to Mainland China.

CARRIE LAM, HONG KONG CHIEF EXECUTIVE (through translator): Well, there's nothing we can do because we have to fight the epidemic.

STOUT: A once glittering International Finance Center is now locked in a zero-COVID bubble. So, residents make do with what they have. Like Richard

Ekkebus, a two-star Michelin Chef at one of the most celebrated restaurants in Hong Kong, working with a more limited and pricier supply of fresh

produce.

RICHARD EKKEBUS, CULINARY DIRECTOR, LANDMARK MANDARIN ORIENTAL HOTEL: Pricing has gone up significantly up to 35 percent due to shortage of

supplies, shipping crates that went up tenfold. So yes, that definitely has significantly impacted price structure in everything we get in Hong Kong.

STOUT: He now uses spiny lobster from Hong Kong instead of French blue from Brittany.

(on camera): So locally sourced Hong Kong lobster is still worth to Michelin's course?

EKKEBUS: Absolutely, absolutely.

STOUT (voice-over): Kristie Lu Stout, CNN, Hong Kong.

(END VIDEOTAPE)

ASHER: Finally, on "FIRST MOVE."

A cup of coffee can feel essential when you start work as early as our team here in New York. But most of us don't get the experience Richard Quest got

when he asked for a coffee in Dubai while reporting on the expo there. Take a look.

(BEGIN VIDEO CLIP)

RICHARD QUEST, CNN HOST, "QUEST MEANS BUSINESS": I want a cup of coffee and this contraption is going to make it for me.

All right. Here we go. I'm going to choose a latte, regular milk. OK. Check out.

You want to take a picture?

Now then, that wasn't in the light.

So, first of all - hang on. Sorry.

All right. Let's go!

There's my coffee.

Where are they going to give it to me?

Here we - OK. There.

[09:55:00]

Thank you.

I'm saying thank you to a robot.

Cheers.

That is a thing of beauty.

Well, I must confess, it's a bit weird to drink your own face. But I do taste very good. Oh, sorry, Richard.

(END VIDEO CLIP)

ASHER: That is a thing of beauty. Richard Quest scoring points there, for more to see. All right. That is it, for the show. You are on "FIRST MOVE."

I'll be back with you in a couple hours with "One World."

"Connect the World" with Hala Gorani is up next. You are, of course, watching CNN.

(COMMERCIAL BREAK)

[10:00:00]

END