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First Move with Julia Chatterley
Ukraine Halts Some Russian Gas Flows to Europe; Ukrainian Volunteers Battle Russian Forces in the East; Jill Biden Visits Children Impacted by Violence in Ukraine; Harley-Davidson Q1 Profits Fall as Costs Increase; Nova Ukraine Proving Humanitarian Aid to Ukrainian People; Passenger with no Flight Experience Lands Plane in Emergency. Aired 09-10a ET
Aired May 11, 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)
MAX FOSTER, CNN HOST, FIRST MOVE: You are watching CNN. I'm Max Foster in London. Ukraine says its troops have recaptured several settlements near
Kharkiv in the east of the country. A video geo located by CNN show signs of a chaotic Russian retreat. The Ukrainian military says Russia is
redeploying troops to the north near its own border.
(BEGIN VIDEO CLIP)
VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT: The Armed Forces of our state provided us all with good news from the Kharkiv region; the occupiers are
gradually being pushed away from Kharkiv.
(END VIDEO CLIP)
FOSTER: Well, despite ongoing fighting, it appears Russia is failing to make much progress in the east. That's backed up by videos like this one,
in which Ukrainian forces claimed they destroyed a Russian tank near Kharkiv. Top U.S. intelligence officials believe President Vladimir Putin
is preparing for a prolonged war in Ukraine. The U.S. Director of National Intelligence says Russian failures could usher in this dangerous new phase.
(BEGIN VIDEO CLIP)
AVRIL HAINES, U.S. DIRECTOR OF NATIONAL INTELLIGENCE: The uncertain nature of the battle which is developing into a war of attrition, combined with
the reality that Putin faces a mismatch between his ambitions and Russia's current conventional military capabilities likely means the next few months
could see us moving along and more unpredictable and potentially escalatory trajectory.
(END VIDEO CLIP)
FOSTER: That top official told Congress that the intelligence community believes that Putin still has ambitions beyond claiming the Donbas. The
Donbas covers the Luhansk and Donetsk regions that are currently the focus of Russian offensives.
More American aid where tens of billions of dollars could soon be on their way to Ukraine meanwhile, the U.S. House of Representatives passed a new
package worth about $40 billion to help show up Ukraine's defenses and address humanitarian needs. President Zelenskyy thanks Washington for its
support.
President Biden has urged Congress to act fast to pass the bill before the current defense aid runs out at the end of the month. The bill now needs to
be approved by the Senate. Scott McLean joins us from Lviv. They need all of this kit they need the funding don't they because Russia is escalating
the type of weapons it's using as well?
SCOTT MCLEAN, CNN CORRESPONDENT: Well, the Ukrainians Max says that when it comes to equipment, they're at a position where the Russians aren't going
to win the equipment war. That's how much foreign military aid has managed to get inside of the country. For instance, the Pentagon says that of the
90 howitzers that were promised Ukraine howitzers are these artillery.
These artillery systems are of modern day cannons of the 90 that were pledged 89 are already within the country and the Deputy Defense Minister
says that they are already well under way to moving toward the front lines.
And you mentioned earlier the situation in Kharkiv where the city itself is relatively quiet, or at least it has been in recent days. But the real
fighting is happening in the towns and villages outside of Kharkiv and you mentioned some of it already.
But the Ukrainian says that in some areas north of the city they actually have fighters from the Azov Regiment. This is the really one of the
fiercest fighters within the Ukrainian military. And they're just a few miles few kilometers really from the Russian border. And the Russians have
according to the Ukrainians built up the presence of troops on the Russian side of the border in anticipation of the Ukrainians actually reaching that
border at some point.
You showed that video earlier showing one example of the hasty Russian retreat. Ukraine, though says it's far too early for civilians to actually
start going back to these areas because of course, they're still within artillery range.
And we've seen over and over again in this war Max that when the Russians don't make a lot of progress on the ground, they resort to heavy shelling
of some of these civilian areas in hopes that that will eventually force the Ukrainian troops back.
FOSTER: Scott in Lviv, thank you. Well, from the offensive on the ground to the impact globally, that economically, Ukraine is suspending some Russian
gas flows to Europe, blaming Moscow for diverting supplies.
Germany and other EU countries are key customers affected by that move. Anna Stewart is on the story for us. Take us through exactly what's been
happening then we're talking about these particular suppliers go from Russia through Ukraine into Europe.
ANNA STEWART, CNN REPORTER: Yes, so as everyone knows, Ukraine is a major transit country for Russian gas heading into Europe. And there have been
plenty of disputes in years gone past. This one is regarding a certain transit point and we can show you where it is on a map it's called - and
it's in the Luhansk region which of course is Russian occupied.
[09:05:00]
STEWART: Now, according to Ukraine's gas grid operator, there has been Russian interference, they say at this transit point, including diverting
some of the gas. Now, they have said that this poses a major security issue to the whole gas grid network, so they have suspended it.
Now this transit point takes around a third of all the Russian gas that goes via Ukraine, through to Europe. So in that sense, it is quite
significant. Gazprom deny there's been any interference here at all. As of today, Russia is sending around 25 percent less gas via Ukraine to Europe
than it was yesterday. So currently isn't making up that shortfall of disruption, Max.
FOSTER: Are we looking at that map of the pipelines? There are several aren't there so surely the Russians could divert it through a different
pipeline, so it can still get to Europe?
STEWART: Lots of different solutions are here. The one that Ukraine points to and we'll keep that map up is the - the transit point to the west, they
say they could simply re-divert the volumes of gas that go to the disputed one through there.
Again, we have a difference of opinion here. Gazprom says that is technically impossible. Ukraine has then refuted that and said not only is
it possible, but it's been done before. We've spoken to an oil analyst; they believe over half of the volume of gas that goes through the disputed
transit point could go through there.
And Max there is other pipelines as well. The volume of gas we're talking about in terms of the European overall pie from Russian gas is about 8
percent. There are many pipelines that run through Europe. The biggest, of course, is actually Nord Stream One, which runs from Russia Street to
Germany under the sea.
There's capacity and multiple routes that could be used. Natural gas prices, oil prices were higher today. If this had been a few weeks ago, I
would actually expect a bigger market reaction. But currently, the EU is trying to wean itself off Russian energy.
It's working on LNG orders from other sources. It's trying to fill up its gas storage coffers. I think that's why we're seeing quite a muted response
really, that could change though, if this became a broader spat, with more pipelines in more areas of Europe being involved, Max.
FOSTER: OK Anna, thank you. The war in Ukraine and the rising cost of energy are two major factors contributing to higher inflation across the
globe. Brand new numbers show U.S. consumer inflation still hovering near 40 year highs, CPI numbers rising to 8.3 percent last month, year-over-
year, that's a bit slower than the price rise in March.
The CPI also easing month-over-month too, but these numbers were higher than expected and offer little comfort to anyone hoping to see signs of
peak inflation in the U.S. Rahel Solomon joins me now from New York.
As I say the numbers were slightly down when you look at the increase is just take us through what's happening here because it can be confusing, and
we mustn't relax just yet as I was saying.
RAHEL SOLOMON, CNN CORRESPONDENT: Not yet. Yes, there's a bit of everything in this report. Let's start with the positive which was that inflation did
ease it moderated a bit. First time we're seeing that since August so perhaps some good news there.
The not so good news, however, is that it didn't ease as much as most economists were expecting. Let's take a look at the report. You can see
last month food prices rose about nine tenths of a percent energy fell 2.7 percent and core inflation which strips away the more volatile categories
like food and energy that rose 0.6 percent that is twice the amount we saw last month.
When we look at sort of areas for the largest increases last month in the report things like shelter, airline fares and new vehicles, the largest
contributors when we look at some areas that we actually saw some declines apparel and used cars and trucks all declined over the month?
Now, Max, of course, the question that everyone is trying to answer is, have we reached peak inflation? Unclear, some, like Deutsche Bank believe
that the report in the easing that we saw today could be the beginning of a gradual move lower in coming months. Others say not so fast. One month, one
data point, there's not a trend make.
Not also, could it be a cause for celebration for consumers most likely because, yes, inflation is still hovering at 40 year highs. Things are very
expensive. And the President knows that U.S. President Joe Biden taking the time yesterday to address the public in saying that fighting inflation is
his number one domestic priority. So yes, we saw some gradual easing, but not nearly as much as economists most economists were expecting Max.
FOSTER: Alright could this play out in the markets today how the Futures looking?
SOLOMAN: Max in fact, it already has just before the numbers came out, the DOW was up 275 points before of course, the open pre market, but it pretty
much lost all of those gains when the numbers crossed.
So we're already seeing this play out in the market. Of course, there's so much sort of jitteriness and concern about how the Fed is going to fight
inflation and how severe and hawkish it will have to be to bring inflation closer to its target?
So we're already seeing Futures across the board negative of course, you know the markets have been open and there is a long way until the markets
closed but it's already been a tough week for the markets. We'll remain to see how it all plays out today Max?
[09:10:00]
FOSTER: Rahel thank you I know you'll be watching very closely thank you! To China now we're strict to China now where strict COVID-19 lockdowns are
starting to take an economic toll. Car sales dropped 48 percent in - factories and showrooms were forced to close.
Tesla's China sales were down 98 percent and exports from its Shanghai plants dropped to zero. Selina Wang is following that for us. And that's
because - is it because they can't get the parts or the people or what is it?
SELINA WANG, CNN CORRESPONDENT: Yes, Max, that monthly decline, you said is a record decline. This is the world's largest automobile market. And what
those numbers point to, is the impact these strict lockdowns in China are having on the economy on supply chain disruptions on consumer spending. And
the auto market is not immune to that.
Across China, at least 31 cities are under some form of lockdown impacting up to 214 million people and other automakers in China Tesla got hit the
hardest. It's sold only about 1500 cars in the Mainland last month that is down 98 percent for March.
Its production in the company also fell dramatically. It fell more than 80 percent. Now Shanghai has been under the strict lockdown for more than a
month. And Shanghai is the heart of manufacturing in China.
Many automakers have big production facilities there, including Tesla. And last month, Tesla had to close down its factory there for several weeks.
Only recently did it start getting back up and running. But according to a new report from Reuters that has yet hit another snag, and Tesla in China
has had to again, temporarily halt production because of snags, with suppliers.
But it's not just Tesla, Max. There are lots of automakers in China that are really hurting as a result of these lock downs, including Toyota and
Nissan and with no clear end in sight to these locked down this pain to the automakers this dampening of consumer spending when people are locked
inside. They're not out buying cars. So these numbers, they're going to continue to be painful.
FOSTER: OK, Selina, thank you for bringing us up to date with that. We're going to have a look at some other stories making headlines around the
world now. An Al Jazeera Journalist has been fatally shot whilst covering an Israeli military operation in the West Bank. Al Jazeera and Qatar which
finances the broadcaster say Israeli forces killed her and that no Palestinian gunmen were in the area.
Israel's Prime Minister says it appeared likely Shireen Abu Akleh was shot by Palestinians though her producer was also wounded in the attack. We'll
have more on this story later on CNN in the next few hours "Connect the World" will speak to the Israeli Defense Forces and hear from a colleague
and a friend of Shireen.
Sri Lanka has extended a curfew until early Thursday morning after nine people were killed in violence there this week. The government's apparently
mishandling of an economic crisis has sparked a month of deadly protests.
The Ministry of Defense says troops have been ordered to shoot anyone damaging state property or assaulting officials. Just ahead from software
engineer to soldier CNN speaks to the ordinary Ukrainians now on the front lines against Russia.
(COMMERCIAL BREAK)
[09:15:00] FOSTER: For the past 77 days Ukrainian fighters have fought the Russian
military defended their Capital and forced a retreat in the north. But what makes this David and Goliath battle even more remarkable are the Ukrainian
conscripts and volunteers. Just 78 days ago, they were regular people in regular jobs. CNN's Sam Kiley, spoke to volunteers on the front lines in
Eastern Ukraine.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Yes--
SAM KILEY, CNN SENIOR INTERNATIONAL CORRSPONDENT (on camera): Oh, it's funny - bunnies a tank?
UNIDENTIFIED MALE: Yes. So it's bunnies that think.
KILEY (on camera): He's got quite a carrot?
UNIDENTIFIED MALE: Yes.
KILEY (voice over): Bunnies got a very big stick. This TAT tank was built two years ago and was until March in the vanguard of Russia's invasion of
Ukraine.
ALEX, UKRAINIAN TANK COMMANDER: So down below you see now the loader. It's also slightly modernized to shoot more like advanced and like better
rounds. It can shoot guided missiles.
KILEY (voice over): Alex was on a sniper team when he discovered bunny stuck in abandoned in a field in March eight days into Russia's assault.
Within days the tank was back in action against Russians.
ALEX: This is like my personal tank I'm tank commander and tank owner.
KILEY (voice over): In March he says the tank destroyed 24 Russian vehicles and two tanks.
ALEX: We were fighting like new resume. So here we already destroyed three or four enemy tanks like we have three confirmed and four is like not fully
confirmed that it was our cue.
KILEY (voice over): That was in the previous couple of days when Russian forces tried to break through Ukraine's lines in the bitter battle for the
East.
ALEX: Showing like the thermal side.
KILEY (voice over): Alex isn't a professional soldier. He's a Software Engineer who lived in the now smashed IT hub of Kharkiv. His home has been
destroyed. Bunnies being serviced as the battle rages a few miles away burning fields encroach on the tanks hideout. The frontline in Ukraine is
hundreds of miles long.
KILEY (on camera): For many Ukrainian soldiers on this front line, there's a sense that perhaps the Russians haven't yet bought their full,
destructive power to bear. But they expect to find out this week.
KILEY (voice over): Russia's artillery is relentless. And Putin's tanks amassing this army of volunteers are expecting a hard Russian push. Anna is
22 she has been a soldier for a month and now she's a driver in a reconnaissance unit.
ANNA, DRIVER IN THE UKRAINIAN MILITARY: There are a lot of opportunities to be killed.
KILEY (voice over): She just graduated from university.
ANNA: This seems that makes me that angry as to be raped children and women.
KILEY (on camera): Is that something that you're afraid of happening to you?
ANNA: I can't say that I'm afraid of something like that. I'm afraid to be not useful for my country for my people.
KILEY (voice over): This is what being useful here means killing Russians. Russians Anna's age that this is a war thrust upon Ukrainians. Anna works
with a flat a poet, author, publisher, and war vet.
KILEY (on camera): And reconnaissance is a highly dangerous work he lost many comrades friends?
UNIDENTIFIED MALE: No--
KILEY (voice over): Vlad said since 2014 so many of my friend's people I knew comrades have died. So far the people I came with since the beginning
of the latest invasion have not died and I'm very happy. It's cool. These people are still fighting.
They're already in charge of units. It's awesome. The best of the best are here. His books are dark fantasies set in this war with Russia and all too
rich source of material Sam Kiley, CNN, Eastern Ukraine.
(END VIDEOTAPE)
FOSTER: The charity "Save the Children" is raising concerns about the trauma children are facing both in and out of Ukraine. And it's lasting
impact on their mental health. The group is sharing drawings made by some of the nearly 3 million children forced to leave Ukraine since the war
began.
[09:20:00]
FOSTER: Of all the pictures, one image is being drawn again and again. And its hearts, colored with crayons, simple images that speak volumes. Janti
Soeripto is the President and CEO of Save the Children, U.S. and joins us now. Thank you so much for joining us.
JANTI SOERIPTO, PRESIDENT & CEO, SAVE THE CHILDREN, U.S: Thank you, Max.
FOSTER: Talk us through some of the drawing some of the themes that you've seen in the images, and then we can talk about what's behind them.
SOERIPTO: Yes, thank you for highlighting this. And clearly, as always, pictures really say more than 1000 words. If you look at those drawings
from children they are essentially of tanks, bombs, homes, their homes being destroyed, dead bodies lying in the street that they will have seen.
So these young eyes have seen things that no child should ever see. And that is clearly coming through in those drawings. And it will, and that's
why we're doing that work with them, because it will also help these children start to process some of that trauma that they've experienced.
FOSTER: Which is more healthy seeing hearts with Ukrainian flags, or, you know, the actual scenes that they have encountered. And you know, maybe
coming to terms with now.
SOERIPTO: Well, it's going to be a long, long process, right. And you know, our child psychologist and the psychologist in the centers are, are working
with these kids, we're also doing play therapy to help them start that long journey of processing and recovery.
But as you can imagine, we are incredibly concerned not just for the immediate, life threatening impact for children on the ground in Ukraine
now, but also the longer term impact on their mental health as this war continues.
FOSTER: Is it useful, asking them to draw because these are such difficult events to talk about quite often?
SOERIPTO: Yes, and we see that in many, not just in this instance. But in many of these crises across the world, sometimes natural disasters, but
also conflict related disasters like this one.
We get children to draw, it's something that every child does, you know, across the world, and it helps them put some of their experiences into
words when they don't have them yet.
FOSTER: But what's been the most upsetting image that you've seen?
SOERIPTO: Well, it's, it's hard. There's a lot. And then of course, we also hear the stories that they tell us in the centers. I think, you know, an
image of a young child standing beside the grave of their mother, which I saw from one of our teams, last week was, you know, it's heartbreaking.
I think, an image of a drawing of a child drawing their own home being destroyed, and then themselves in front of it, fleeing, because they
offered these, you know, sometimes they draw themselves in these pictures, is very striking as well.
FOSTER: So when you, you know, when one of your team or with a child in front of a picture of them, they're drawing themselves next to their
parents grave. What's the next step? What do you take them to next?
SOERIPTO: Well, we try to work with them, right. And we have a whole sort of program around this. And clearly, this is also hard, because these kids
are often in transit, right? We often find sometimes no, but quite often now and where the conflict is now, kids are in transit.
So you get to see them for a bit, and then they move on. And thankfully, now in a lot of European countries, these kids are going into child, you
know, into child protection systems that can help them for longer.
But we help them talk it through, we sometimes help them put into drawings, what they have difficulty put into words. And then we try to figure out how
we can help the best. Of course, it depends on their age, what they've seen where we think they are.
FOSTER: Or there are some ages where they deal with it better?
SOERIPTO: I think that's really hard to say. You know, and I think it's almost too, also too early to say but I think but we've seen this in kids
coupling the Syrian war as well over the past 11 years.
No, I don't think you can say there's a better I mean, and there is no good age to see what these kids are seeing and have seen, right? But it does
depend on the individual situation.
FOSTER: You've involved, Joe Biden in this, you the first lady. I mean, it must be very difficult for her to see all of this. It must have been very
helpful to have her involved as well. How's that helped and how she dealt with it all?
SOERIPTO: Well, we were incredibly pleased that the lady took the time to come over on Mother's Day clearly, Dr. Biden is an educator herself a
passionate educator.
[09:25:00]
SOERIPTO: She was also involved with saved to children a couple of years ago. She knows our work; she's seen it on the ground. And we were delighted
that she had time to visit one of those schools that we're working with in Romania, where we're helping that school, who was actually accepted a lot
of children coming over.
I think about 100 kids are in that school now, where we're trying to also get them back into education and give them a sense of normality. So, so for
them, our staff, there, our volunteers and those kids to see that interest from somebody as you know, like the First Lady has been amazing for them
and inspiring, and I think and made them feel that they're not alone, and that there is support for them. And clearly, it has helped us here to
continue to keep this issue on the radar.
FOSTER: Well, that's the concern, isn't it? Because as horrifying as all of this is, there's been a lot of it over a period of time, and you need to
raise money, you need to keep the resourcing and this is a massively long term project for you dealing with long term trauma.
What more do you want from the world? I mean, is it just a case of, you know, keeping the awareness that the resources keep coming in?
SOERIPTO: There is that you know, and it's twofold, right? One is, yes, keep the awareness. This is a long term, rebuild and recovery process, and
it will need to happen long after the camera.
The cameras have gone and at some point, hopefully, they also the hostility. But first and foremost, the hostilities need to cease, then we
need to have access to all of the areas in Ukraine, alongside working with people who have fled Ukraine so that people feel safe to turn back.
And then of course, yes, funding needs to continue for Ukraine, it's been extraordinarily good across the world, not just in the United States. But
of course, we're worried about other crises that are exacerbated also by increasing wheat prices because of this conflict.
So we're now seeing hunger and famine spike up across many countries and that also needs resourcing.
FOSTER: OK, I appreciate you spending time with us and taking time out for your very important work. Janti Soeripto from the Save the Children, thank
you very much indeed, I'll have more in just a moment.
(COMMERCIAL BREAK)
[09:30:00]
FOSTER: Welcome back, I'm Max Foster in London. This is the opening bell sounding on Wall Street's. U.S. stocks have opened lower than NASDAQ and
the S&P reversing course after Tuesday's modest gains.
All this after another disappointing read on inflation. The U.S. reporting that consumer prices rose 8.3 percent in April year over year, that's a bit
lower than last month's increase, but still hotter than expected.
The month over month data were higher than expected to, the numbers is showing consumer inflation still hovering near 40 year highs. Matt Egan
joins me with more. So it's all about inflation today or what else you're looking at?
MATT EGAN, CNN REPORTER: Yes, Max. It really is all about inflation, because that remains the number one problem for the economy and really for
financial markets as well and probably for politicians in Washington.
And I think that there is a mixed bag from this report. I mean, the good news is that inflation has cooled off a bit, as you mentioned, 8.3 percent
year over year, in April backing away from 40 year highs.
This is the first time we've seen a deceleration since last August. The bad news, though, is that it really didn't back away all that many prices still
raised by 8.3 percent. You know, expectations were for less.
And as you can see on your screen, there were still record price spikes and everything from baby food restaurants, hardware, new trucks, men suits, and
core inflation, which is really what the Fed looks at, that excludes food and energy that actually accelerated month over month, more than expected.
Now, no one on Main Street is going to be celebrating the fact that, you know, inflation is still above 8 percent. No one on Wall Street either. It
was really interesting to see stock futures were modestly higher this morning. And then that report came out.
And within minutes, we saw Dow Futures drop about 500 points from where they were trading, as you can see markets opening up just slightly higher.
I think that's because there's really nothing about today's report that suggests the Federal Reserve is going to dramatically dial back its war
against inflation.
It's still going to be raising interest rates for the next few months, it could still be doing these half a percentage point interest rate increases,
and that eventually could pose some risk for the economy as borrowing costs keep going up that's going to slow down growth.
And so those worries about an eventual recession in the United States next year or in 2024, I don't really think that's going away either, so kind of
a mixed batch of numbers this morning, Max.
FOSTER: OK, Matt, thank you very much indeed. Harley Davidson shares were up today. Profits fell last quarter squeezed by supply chain issues, the
global chip shortage and inflation.
The company whose Livewire division is launching an electric bike says there is high demand though. And that's driving up revenue. The CEO spoke
to Richard last night.
(BEGIN VIDEO CLIP)
JOCHEN ZEITZ, CEO, HARLEY-DAVIDSON: This is a fantastic brand Harley Davidson fantastic brand. We are now standing up the second brand with
Livewire that is going public sometime in June at the New York Stock Exchange.
There's a lot of exciting things happening, despite the backdrop which is certainly challenging.
RICHARD QUEST, ANCHOR, QUEST MEANS BUSINESS: Do you think you'll still public in June I'm in the spec; the spec method is slowly going out of
flavor as long as the market is in such turmoil. I mean, I don't expect you to necessarily tell me what you're going to do. But are you rethinking that
plan to float and spec --in June?
ZEITZ: No, we're not rethinking it. And we're doing this for the right reasons. Livewire is a fantastic new brand. It's built on the lineage and
part of the lineage of Harley Davidson.
We want to set it off as a separate entity, separate company that is independent with an independent board listed at the New York Stock Exchange
and we see a great, great opportunity.
We launched our new bike today, the Del Mar and before the presentation was over, we sold our limited edition. So within 18 minutes, there was a strong
demand and we sold 100 bikes that are going to - next year.
So there's definitely demand out there and we believe that a pure electric play that can lead the industry is something that the market wants and that
we will give to the market. And we will be the ones that shape the electric two wheeler space in the future.
(END VIDEO CLIP)
FOSTER: Chief Executive Harley Davidson there. Speaking of supply chain issues as well chip shortages as well, Taiwan, a leader, a world leader in
semiconductor manufacturing getting a spotlight on its unique role in global tech.
[09:35:00]
FOSTER: This comes as U.S. Intelligence Chiefs warned that Taiwan will face an acute threat of takeover by China by the end of the decade.
(BEGIN VIDEO CLIP)
HAINES: It's our view that they are working hard to effectively put themselves into a position in which their military is capable of taking
Taiwan over our intervention.
(END VIDEO CLIP)
FOSTER: Will Ripley live for us in Taipei? Break this down for us, then how worried should we be?
WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, certainly here on the island of Taiwan, they are taking this threat seriously as they have
for decades since you know, Mainland China has claimed the communist rulers in Mainland China have claimed this island as their own for more than 70
years since the end of China's civil war.
But this is now a time according to U.S. Intelligence that China is building an army that just might be big enough not only to defeat Taiwan,
which would happen fairly quickly, but also defeat potentially intervention by the United States.
And that is what makes Taiwan's soft power, so crucial Max. Their semiconductor industry, a world leader, and it are so valuable that it
might actually experts say motivate countries to rally in the island of Taiwan and fast.
(BEGIN VIDEOTAPE)
RIPLEY (voice over): Taiwan's first line of defense from a Chinese invasion, billions spent on missiles. New warships and submarines and
upgraded fleet of fighter jets expanded training for reserve soldiers, all of it warped by the Mainland's massive military.
China's defense budget is 17 times bigger than Taiwan. Experts say the island's best defense its biggest weapon against China is technology so
small, you need a microscope super tiny super powerful semiconductors.
This tiny tech powers products you probably use every day, Taiwan produces about 70 percent of the world's semiconductor chips, most of them made by
TSMC Asia's most valuable company making chips for companies around the world like Apple and Intel.
Experts warn any disruption to Taiwan's chip supply could paralyze global production impacting almost everyone.
J. MICHAEL COLE, SENIOR FELLOW, GLOBAL TAIWAN INSTITUTE: People like to say, well, Taiwan should be defended by virtue of it being a democracy.
This is oftentimes too abstract if there is war invasion in the Taiwan Strait, and immediately the price of computers would increase your cell
phones would become more expensive.
It helps people make that self-serving but emotional connection which a society that otherwise would be obstructive.
RIPLEY (voice over): Russia's unprovoked invasion of Ukraine is raising questions about the future of Taiwan, a self-governing democracy claimed
but never controlled by Beijing's communist rulers. Well, what makes Taiwan different from Ukraine right is the economic leverage.
ROY LEE, CHUNG-HUA INSTITUTION FOR ECONOMIC RESEARCH: Always much more relevant to the global economy that in Ukraine, that is true.
RIPLEY (voice over): Even China relies on chips from Taiwan, more than 50 percent of the islands exports to the Mainland semiconductors. China is
Taiwan's top trading partner.
RIPLEY (on camera): So what does it mean economically for Taiwan and China if there was some sort of conflict to breakout?
LEE: There will be disastrous, not only for Taiwan, not only for China, but also for the U.S. and UN everybody.
RIPLEY (voice over): Chinese President Xi Jinping has vowed to reunify with Taiwan at any cost. Taiwan's chip industry could make the cost of any
invasion far too steep.
(END VIDEOTAPE)
RIPLEY: Just imagine if you had to wait more than a year to get your new iPhone or you had to wait even longer than that to get a laptop. That is
the scenario that experts say would be very possible, highly likely if there was any sort of disruption to Taiwan semiconductors.
And that is actually something that the leadership here in Taipei bring up when people draw comparisons between what's happening in Ukraine and
Taiwan. They're quick to point out the strategic role of the semiconductor industry, its vital technology even used in weapons, Max.
And so you know, the global supply shortage is actually prompting some countries now to take steps to try to break themselves away from their
dependence on Taiwan, because so many of the chips are made here.
But that would take many years. So at least for the short term, that soft power that Taiwan has is a lot of leverage. What they have to do, experts
say is to stay also continue to grow militarily as well.
FOSTER: Yes, it's fascinating. Will, thank you for joining us from Taipei. In the Philippines, Ferdinand Marcos, Jr. has claimed victory in Monday's
presidential election.
According to an unofficial preliminary count, he got more than twice as many votes as his closest rival. The son of the Philippine former dictator
calls it a win for democracy that asked to be judged on his actions not his ancestors. CNN's Ivan Watson has more.
[09:40:00]
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Judge me not by my ancestors but by my actions. Those are the final words of a short statement
declaring victory coming from the presumptive winner of the presidential elections that were held in the Philippines on Monday.
And that assumed winner is Ferdinand Marcos Jr. known by his nickname Bongbong. A statement released by his spokesperson declaring victory in
that election. The preliminary results show a massive lead more than twice the votes of the presumptive second place candidate in the election.
And Bongbong is, of course, the son of the ousted former dictator of the Philippines, Ferdinand Marcos Sr. who was forced to flee the country in
1986, in the face of a people power movement had ruled under martial law for nearly a decade had an atrocious human rights record and is still being
investigated for the alleged embezzlement of up to $10 billion worth of government and Philippine assets.
Now Bongbong ran under somewhat of a nostalgia ticket with the slogan rise again, he was very short on details about his platform. But his campaign
message appeared to have worked; he does seem to be on the verge of winning a much bigger electoral mandate than any other presidential candidate has
really seen in generations.
Now, the presumptive second place candidate still has not conceded defeat is going to hold a rally on Friday, thanking her supporters. There are
concerns and protests about voting machines that that did not function properly during the election.
However, the U.S. State Department spokesperson has gone on record saying that there does not seem to have been serious problems with this election
that it was conducted in line with international standards. Ivan Watson, CNN, Hong Kong.
FOSTER: Coming out, delivering life-saving first aid to Ukraine's people and its economy one organization's critical mission, next.
(COMMERCIAL BREAK)
FOSTER: Welcome back. The U.S. House of Representatives has approved an additional $40 billion in funding for Ukraine. This is a number of
nonprofit organizations around the world also continue to raise money to support the country.
[09:45:00]
FOSTER: One of them is California bass Nova Ukraine. Since the Russian invasion in late February, it has raised $30 million and spent 16 million
so far providing much needed medications, medical devices, food and other basic supplies.
Joining me now is Director of Nova Ukraine, Igor Markov, thank you for joining us. What are you finding is the most required thing right now? What
are your people on the ground saying they need?
IGOR MARKOV, DIRECTOR, NOVA UKRAINE: There are many things that are needed on the ground in Ukraine; we see very significant demand for medical
supplies for food, for evacuation services. For basic infrastructure, we fund bomb shelters in several places.
And we are listening to the people on the ground to our volunteers and also to the refugees and to the people in need. And we are trying to adapt to
the situation.
FOSTER: And are you getting as much support as you were early on in the crisis in the war? Or are people getting fatigued with all of this
fundraising, which is vital, but it's been going a long time now for some people?
MARKOV: Yes, we definitely start seeing donor fatigue. At the very beginning of the war, there was an outpouring of support. Many people
contributed. At some point later, we started seeing bigger donors coming in with support, then corporate matching programs.
And now we're starting to see some corporate donors, which was look specific about what we do and select projects. But overall, there's
definitely a problem with donor fatigue, because this war has been going on for quite some time. And there is really no end in sight.
The problem is huge. The amount of funding, the amount of help that is needed is only growing. And so we're doing all that you can to adapt to
convince donors to help Ukraine and to route the support these funds to the projects that have most impact.
FOSTER: The other issue, of course, is that, you know, there has been a food crisis, really, that's been prompted by what's been happening in
Ukraine and the sanctions on Russia as well.
So the cost of living for people in the West has gone up, and that's making it more difficult for them to donate.
MARKOV: Absolutely, we see now reports that food supplies are running low in many places in Ukraine, those that are hard to reach. But even those
that have good connections to the west, because some of the shipments have decreased from the western part because of prices.
We saw reports, just in the last few days that Russia is taken away grains from Ukraine from southern and eastern regions, into Russia. It's basically
stealing. And so we are doing several different things to feed people in Ukraine and also to support producers.
We support a number of small kitchens in different regions of Ukraine, Kyiv, Kharkiv in the south, in Odessa, in Mykolaiv, where people are
basically fed breakfast and lunch in the streets.
We support volunteer groups that prepare food baskets and deliver to disabled people to the elderly who have difficulty leaving their
apartments. And we support food producers to make sure that they remain viable and that they have the production lines running for canned meat,
pasta, and several places that bake bread.
FOSTER: Isn't that ironic, though, that you're having to effectively import grains and basic foods into a country which up until recently was you know
a real breadbasket for the rest of the world.
MARKOV: It is definitely, the supply lines are disrupted. And we are trying to adapt to the situation and of course trying to also make sure that these
imports don't suppress food producers in Ukraine.
This situation is changing. Of course, we know the Government of Ukraine is trying to help as much as they can. But this is really our strength as a
nonprofit, volunteer run organization, you can adapt to the situation on the ground very quickly.
FOSTER: OK. Igor Markov, really appreciate your time, Director of Nova Ukraine. Thank you for joining us.
MARKOV: Thank you.
FOSTER: Now next, a dramatic air scare a passenger with no flight experience landing a plane when the pilot passes out mid-flight.
(COMMERCIAL BREAK)
[09:50:00]
FOSTER: Welcome back, one last look at the markets for you. U.S. stocks are now trading higher after the release of a hotter than expected U.S.
inflation report. Today's consumer price report for April shows U.S. inflation still hovering near 40 year highs.
That's bad for consumers and the U.S. Federal Reserve which has begun raising interest rates in the hope of taming that inflation. Now imagine
this, you're a regular passenger on a plane the pilot suddenly becomes incapacitated.
And you're the one who has to land the aircraft. That's exactly what happened in Florida. Pete Muntean has this incredible story.
(BEGIN VIDEOTAPE)
PASSENGER: I've got a serious situation here. My pilot has gone incoherent and I have no idea how to fly the airplane but maintain at 9100.
PETE MUNTEAN, CNN CORRESPONDENT (voice over): The voice you're hearing is not a pilot but a passenger radioing for help. Audio captured from live ATC
details the communications between the plane a Cessna Caravan and the control tower and Fort Pierce in Florida.
TOWER: Caravan 333LD, roger. What's 333 Lima Delta Roger, what's your position?
PASSENGER: I have no idea. I see the coast of Florida in front of me and I have no idea.
MUNTEAN (voice over): Air Traffic Controller Robert Morgan was on break from working in the tower what his colleagues said he needed to come back
fast.
ROBERT MORGAN, AIR TRAFFIC CONTROLLER, FEDERAL AVIATION ADMINISTRATION: There's a passenger flying a plane that's not a pilot and the pilots
incapacitated. So they said we need to try to help them land the plane.
MUNTEAN (voice over): Morgan is a 20 year veteran controller, but also a certificated flight instructor with 1200 hours flying experience.
TOWER: What was the situation with the pilot?
PASSENGER: He is incoherent. He is out.
TOWER: 3LD, Roger. Try to hold the wings level and see if you can start descending for me push forward on the controls and descend at a very slow
rate.
MUNTEAN (voice over): Controller Morgan had not flown this specific airplane before. So we pulled up this photo of the layout of the instrument
panel and talked the passenger through it step by step.
MORGAN: I knew the planes fly and like any other plane I just had to keep them calm. point them to the runway and just tell them how to reduce the
power so they could descend to land.
MUNTEAN (voice over): Data from flight aware shows the flights path, the first challenge to controllers locating the flight and pointing the
passenger turn pilot to the airport.
TOWER: N3LD maintain wings level and just try to follow the coast either north or southbound. We're trying to locate you.
PASSENGER: Have you guys located me yet? I can't even get my navigation screen to turn on. It has all the information on it. You guys have any
ideas on that?
TOWER: N3LD Palm Beach he's telling me you're about 20 miles east of Boca Raton just continue northbound over the beach and we'll try to get you some
further instructions.
MUNTEAN (voice over): Morgan's instruction paid off guiding the flight to a landing at Palm Beach. Aviation experts call it a remarkable feat that left
other flights listening in stunned including a commercial pilot waiting for takeoff.
AMERICAN 1845: Did you just say the passengers landed the airplane?
TOWER: That's correct.
AMERICAN 1845: Oh my god. Great job!
TOWER: No flying experience. We got a controller that worked them down that's a flight instructor.
[09:55:00]
MUNTEAN (voice over): After the landing, Morgan left the tower and went out to the ramp to meet his newest student pilot that he taught the land
without ever getting in the plane.
MORGAN: I just feel like it was probably meant to happen.
(END VIDEOTAPE)
FOSTER: What a hero and what a calm passenger. Finally after nearly 20 years, Apple has decided to retire the iPod. Production set to halt on the
iPod Touch the only model still on shelves. The late Steve Jobs introduced the music player in 2001 with a promise of holding up to 1000 CD quality
songs.
Apple says the spirit of the iPod lives on in all its current products, where music storage and streaming have become an essential part of
software, a moment in tech history. That's it for the show. "Connect the World" is next. Do stay with CNN.
(COMMERCIAL BREAK)
END
