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First Move with Julia Chatterley

Biden: We will not Allow Iran to Acquire a Nuclear Weapon; The Rise and Fall of the Rajapaksa Dynasty; Wildfires Rage on Amid European Heat Wave; U.S., Israel Sign Joint Declaration to Counter Iran; Biden: Going to Saudi Arabia to "Promote U.S. Interests"; Senior Dogs in Shelter "Marry" in Bid to Find New Home. Aired 9-10a ET

Aired July 14, 2022 - 09:00   ET




JULIA CHATTERLEY, CNNI HOST: You're watching CNN. I'm Julia Chatterley in New York. Welcome to "First Move". And we begin with U.S. President Joe

Biden's trip to the Middle East. Becky Anderson joins us now from Jeddah, Saudi Arabia Becky, great to have you with us in a busy day already for

President Biden!

BECKY ANDERSON, CNN HOST: It most certainly has President Biden - thank you, Julia emphasizing deepening ties between the U.S. and Israel on this

critical tour of the Middle East. And signing a joint declaration with Prime Minister Yair Lapid to expand security ties and embrace Israel's

integration into this wider region. That has become a major theme of the President's four day visit. Today's landmark commitment also includes a

promise to never allow Iran to acquire nuclear weapons.


JOE BIDEN, PRESIDENT OF THE UNITED STATES OF AMERICA: Today, you and I also discussed America's commitment to ensuring Iran never obtains a nuclear

weapon. This is a vital security interest to both Israel and the United States. And I would add for the rest of the world as well.


ANDERSON: Well, that's President Biden with more Hadas Gold is in Jerusalem for us. And both of us listening in to that press conference with President

Biden, of course, and Israel's new leader, Yair Lapid Iran, very much in focus Hadas and the idea of the building of a regional alliance, which

includes Israel, Israel and its Arab neighbors to ensure that Iran doesn't have this destabilizing force going forward what did you make of what you

heard today?

HADAS GOLD, CNN CORRESPONDENT: Yes, Israel has long wanted this sort of regional alliance is something we heard former Prime Minister Naftali

Bennett talking about during his visit to the United States last year. But for them, they would like to have the sort of regional alliances with like-

minded countries, which in their dreams will also include Saudi Arabia, to work together to help counter Iranian threats using some of these missile

defense systems that President Biden toured yesterday like the Iron Dome and this new laser iron beam program.

But there is still exist a difference of opinion between President Biden and Prime Minister Yair Lapid and how best to counter a potential nuclear

Iran this is sort of the main moment you could call it of contention during this press conference where President Biden repeated that he thinks the

best path forward to prevent Iran from obtaining a nuclear weapon is diplomacy and that is what he wants.

He also said when he was asked about whether there is a deadline when he will say to the Iranians, OK, that's it. It's been too much time diplomacy

is off the table. We're done. He didn't give a specific deadline, but he did say that it won't be forever.

Prime Minister Yair Lapid pushed back and said very clearly on stage that diplomacy will not work that words itself will not work. He said the only

way that you can prevent a nuclear Iran is through a credible military threat on the table.

Now there is Israel - there are some reassurances for the Israelis in this Jerusalem declaration that they signed, there was an American commitment

that Iran will never obtain a nuclear weapon of recognition that Israel will always be able to defend itself by itself, and that the Americans will

also always help Israel have a qualitative military edge.

And also importantly, there was an interview aired last night on Israeli Channel 12 that President Biden conducted with them, where he was asked

point blank, will the Americans ever be willing to use force against the Iranians? And he did and President Biden did say yes, he said, as a last

resort, we will be willing to use force against the Iranians.

The Israelis will be happy to hear that. But they still want to push the Americans away from a return to the nuclear deal that they just think will

not do enough to stop a nuclear ran, and especially will only they fear open up the doors to more Iranian threats in the region. Things like

supporting Hezbollah things like supporting missiles and armed drones. They're very concerned about as well as their new regional allies like the

UAE and Bahrain.

ANDERSON: Sure. I mean, we know those nuclear talks are stalled at present. The question is does Washington have a plan B, of course, if diplomacy

fails, so perhaps the President going further than he has on putting a military option on the table. Today, look, this trip is mostly focused on

mending ties with Saudi Arabia. Let's be quite frank about that is promoting Israel's further integration as you have rightly pointed out in

this region pushing the Abraham Accords one step further.


ANDERSON: The Israelis would like normalization with the Saudis I don't think anybody assumes for that to happen during this Biden trip. But it's

also about consolidating the sort of regional alliances, the de-escalation in the region, and these regional alliances for the purposes of both

economics and security.

And we've seen a lot of that when you live in this region. We've seen the coming together of these regional assets. What we know we are likely to get

very little off on this trip is much for the Palestinians, or at least that is their frustration. I think one commentator pointed out that the

inclusion of motorcade pass on Biden's agenda is nothing more than a courtesy call, your assessment?

GOLD: That is very much what it feels like. It definitely feels like the Palestinian issue is pushed to the side that the focus is on Iran. It's on

Saudi Arabia, and that there is a very clear recognition by the Americans that there's not going to be major steps made on any sort of major peace

process between the Israelis and the Palestinians.

And President Biden said as much on his remarks at the tarmac yesterday, he said as much as he believes in the two state solutions. He recognizes that

it might not be happening in the near future. And there's quite a bit of disappointment from Palestinians from the senior officials to the everyday

Palestinian and what they believe are unfulfilled promises from President Biden.

And I'm sure Palestinians listening to the press conference in the last few hours, would have been a little bit disappointed also to hear about just

the fact that they signed what they call the Jerusalem Declaration, President Biden was explicitly asked about whether his visit tomorrow to

East Jerusalem to a hospital there is some sort of recognition to Palestinian claims that they want East Jerusalem to be the capital of a

future state of Palestine, whether it's some sort of pulling back of the Trump Administration recognition of Jerusalem as Israel's capital.

And he said simply no, and there just doesn't seem to be any major moves going to be made towards the Palestinians other than just some small

confidence building measures the Americans announcing more funding for the Palestinians more funding for the hospital networks, but not much else. And

the feeling that you're really getting from the Palestinians is one of disappointment and of pessimism.


GOLD (voice over): Five years ago, on his last visit to the White House, the Palestinian Authority President Mahmoud Abbas made a rare venture into

English. Several months later that hope proved to have been terribly misplaced.

DONALD TRUMP, 45TH U.S. PRESIDENT: It is time to officially recognize Jerusalem as the capital of Israel.

GOLD (voice over): Under Donald Trump U.S. policy tilted heavily towards Israel. The Palestinian political office in Washington was closed. The

American Consulate in Jerusalem, which symbolized U.S./Palestinian relations also closed. And almost all economic aid to the Palestinians was

switched off.

So when Joe Biden won the election, there was great relief among many in the Palestinian community. But that relief has little to show in terms of

action. The Biden Administration highlights renewed financing about half a billion dollars mostly on schools, hospitals, and other humanitarian aid


Further $100 million is set to be announced on this trip, including some money for Palestinian hospitals in East Jerusalem. But politically, the

White House seems unwilling to pressure Israel over continued expansion of West Bank settlements and weaken the face of Israel's resistance over plans

to reopen the Consulate in Jerusalem. Hussein Sheikh is one of Abbas's closest aides.

HUSSEIN SHEIKH, SECRETARY-GENERAL, PLO EXECUTIVE COMMITTEE: The U.S. administration has been talking with us about these issues for more than a

year, but nothing has been achieved. Even so we continue to hope this visit will produce serious outcomes, that it provides hope and a political


GOLD (voice over): Biden's visit to the West Bank will take him not to Ramallah the Headquarters of the Palestinian Authority, but to Bethlehem

just a few miles south of Jerusalem, where the President will find it hard to avoid stark reminders of the conflict.

GOLD (on camera): One issue that will likely be staring President Biden right in the face the killing of Shireen Abu Akleh. This giant mural of the

Al Jazeera Journalist is right on the road you take as you enter Bethlehem.

GOLD (voice over): For many here are the U.S. response to the death of the Palestinian American reporter shot dead while covering an Israeli military

operation has been inadequate and indicative, they believe of the U.S. is unwillingness to force Israel to get serious about peace and bringing an

end to occupation.

LINA ABU AKLEH, NIECE OF SHIREEN ABU AKLEH: Putting an end to this injustice putting an end to this impunity is important because it sheds

light it continues to shed light on the greater picture of what Palestinians continue to endure on daily basis.

GOLD (voice over): From the Palestinian perspective the overwhelming feeling around the President's visit is one of pessimism.



GOLD: And Becky, President Biden did say that he believes normalizing relations with Arab countries, especially the steps towards possible

normalization with Saudi Arabia will help the Palestinians. But when you talk to the everyday Palestinian I spoke to one tour guide, and he said the

only benefit that he think will come out of the President Biden's visit to this region and to Saudi Arabia, is the fact that the roads in Bethlehem

will be repaved for President Biden's motorcade, Becky.

ANDERSON: Hadas Gold Thank you. So President Biden currently in Israel, he'll go on to the West Bank back to Israel from where he will fly direct

here to Jeddah in Saudi Arabia on Friday. And that is a first for a U.S. President whether he can achieve anything more substantive as far as

progress is concerned for Israel in normalizing relations with the kingdom is not clear at this point. Lots to digest, we will be back shortly "First

Move", let's get you the rest of today's news with Julia.

CHATTERLEY: Thanks Becky, and for Sri Lanka now, where the nation's President has now landed in Singapore after initially fleeing to the

Maldives. This video shows the pain relief to be carrying him at an airport in Singapore. He had pledged to step down but he's yet to officially submit

his resignation letter.

Meanwhile, Colombo calm on today as troops patrol the streets of the capital city Kyung Lah joins us now it's starting to feel a little bit like

a movie "Catch Me If You Can". So we can talk about how long the President intends to perhaps to stay in Singapore. But the constitutionally this

letter this resignation letter is vitally important because without it, the country can't move on select an interim fresh government. So this is what

we need to be talking about specifically, I think.

KYUNG LAH, CNN CORRESPONDENT: Right, it is in the constitution of the Sri Lankan government that in order for the resignation of the President to be

official, the Speaker of the Parliament has to have that letter in hand. But of course, there is no letter and the President is not in the country.

First, he disappeared into the Maldives. And now, the sheer of the Singaporean government has allowed him to enter the country as a private

visitor. So is he going to stay there? Is it going to continue on all we know is that he has absolutely fled the country.

With him gone, what he has done has appointed a Prime Minister. But the problem with that Prime Minister from the protester viewpoint is that he is

seen as simply an extension of the President's government. So that has left the country in a state of limbo. And from the people who have been so angry

that they have taken over the Presidential palace as well as the Prime Minister's residence.

It is really not help pull things down. So what is happening as far as some of that simmering anger is there is just a lot of questions on what happens

next, especially when the President is still on the run.

CHATTERLEY: Yes, and that interim President has now given the armed forces more powers of arrest permission to use force, if necessary. They've also

imposed a curfew, I believe, from noon Thursday until 5am. Friday, and that does seem to have lessened some of the protests that we've seen, what can

you tell us on that front?

LAH: Well, we've heard from the protesters, at least through the lawyer, Julia. Is that what they want to do is to leave two of the three offices

that they have occupied. They will remain in the Prime Minister's office, but as far as the Presidential Palace and the Prime Minister's residence,

they're going to walk away from those places.

So there is this effort, at least on the ground from the people's protesters to turn the volume down. And so far, what we've seen on the

ground, and what we're hearing from reports on the ground is that there is just this anticipation this concern, but no direct violence or pushing

forward of the protesters into more of the governmental space. Parliament is scheduled to meet but now it appears that they're going to be holding

off on meeting as well.

So again, everyone holds their breath. So far today, we have not seen what we have seen the chaotic scenes of protesters pushing into governmental

offices that we had over the last few days, Julia.

CHATTERLEY: Yes, far more targeted, now directed towards the remaining man, which is the Prime Minister/Interim President and a rejection of his rule

too. Kyung Lah, great to have you with us, thank you. Let me bring you up to speed now with some of the other stories making headlines around the

world. Rescue workers searching for survivors following a deadly airstrike in Central Ukraine.

Kyiv says 20 people were killed including 3 children when Russian missiles slammed into buildings located in the heart of Vinnytsia.


CHATTERLEY: Ukraine says the attack was carried out with colonial cruise missiles launched from submarines stationed in the Black Sea. WNBA star

Brittney Griner is back in court near Moscow this hour after pleading guilty last week to drug smuggling.

In today's hearing Griner was expected to be questioned and her lawyers are expected to ask for leniency. We don't know if there will be a verdict

today. If convicted, she could be sentenced to up to 10 years in prison.

And in the United Kingdom, American actor Kevin Spacey has pleaded not guilty to sexually abusing three men. He faces four charges of sexual

assault and one of causing sexual activity without consent, which carries a maximum sentence of life in prison. The Oscar winner has previously night

denied all allegations. His trial is set to start next year. OK, coming up here on "First Move" big revisions, big problems.

The EU commissioner for the economy joins us to discuss their latest forecasts plus Armageddon yes, it's a thing and it's all Heathrow's fault

at least according to the Emirates. It seems accusations and blame are the only things flying there at this moment we'll discuss stay with us.


CHATTERLEY: Welcome back to "First Move" and as we were just discussing Sri Lanka's President now landing in Singapore after initially fleeing to the

Maldives the crisis though in the country signals the fall of one of the country's most powerful political families. CNN's Vedika Sud looks at the

rise and the fall of the Rajapaksa Dynasty.


VEDIKA SUD, CNN REPORTER (voice over): This was the moment that sang Sri Lanka's Rajapaksa Dynasty. On Saturday, protesters stormed the abandoned

Presidential Residence of Gotabaya Rajapaksa demanding he resign.

Days later, the President fled the country just before he was due to formally resign, bringing an end to his three year presidency, also an end

to more than a decade of his family's dominance of Sri Lankan politics.

Gotabaya Rajapaksa's father was a Member of Parliament from 1947 to 1965. But it was his older brother Mahinda Rajapaksa who brought the family to

national prominence working his way up the political ranks for decades until becoming Prime Minister in 2004 and President in 2005.


SUD (voice over): Mahinda Rajapaksa appointed his brother Gotabaya as Defense Secretary. And they led a brutal war against the Tamil Tigers

separatist group, ending a 25 year insurgency in 2009. Mahinda Rajapaksa lost the 2015 Presidential election. But the brothers came back to power in

2019 this time Gotabaya as President.

Five family members were appointed to keep government positions. Mahinda Rajapaksa became Prime Minister. But in the years since the family was

accused of mismanaging the economy, borrowing too much. Spending on vanity projects and cutting taxes too steeply. Then they were hit by the

Coronavirus pandemic, devastating tourism and drying up revenue.

And this year, sky rocketing fuel costs have pushed the public to the brink. After weeks of protests, Gotabaya Rajapaksa led several family

members to resign from the cabinet. Mahinda resigned as Prime Minister in May. And now with Gotabaya out the Rajapaksa dominance appears to have

ended, Vedika Sud, CNN.


CHATTERLEY: OK, let me give you a look at what we're seeing across financial markets. Its inflation frustration and its monetary policy and

profit implications weighing on global investor sentiment once again, the latest U.S. producer prices data.

We're talking about the price of goods leaving factories in the United States that rose at 11.3 percent year over year rates last month and a more

than 1 percent jump month over month the translation it's really hot, both data points in fact hotter than expected.

And of course, today's report follows Wednesday's consumer price calamity with CPI rising more than 9 percent year-over-year in June. Wall Street is

now beginning to consider the previously unthinkable I think the possibility that the Federal Reserve might have to raise interest rates by

a full percentage point later this month and perhaps another three quarters of a percent in the month of September too.

I mean, this is going to represent a much more aggressive pace of tightening than had been expected even just a few days ago, a necessary

move perhaps, but also a step that would only increase the chances of recession and restrict the Federal Reserve's ability to calibrate the

impact of the policy that they're applying.

Giant U.S. Bank JP Morgan in the meantime, bracing for trouble shares set to fall some 3.5 percent after missing on their second quarter revenues and

profits CEO Jamie Dimon & co engaging in all sorts of defensive maneuvers like suspending stock buybacks and raising loan reserves to protect against

future bad debts and delinquencies.

And another banking big - Morgan Stanley missing on both the top and bottom line in their earnings too, all of this contributing to a softer picture as

you can see there pre market U.S. stocks set for early session losses with the S&P 500 set to fall for the fifth straight session and as you can see

in the line below Europe in the red too.

The XETRA DAX over in Germany, the underperformer down some 1.5 percent in the session and speaking of hot there's no break in sight from sweltering

heat waves scorching parts of Western Europe.

Temperatures' reaching 45 degree Celsius in parts of Portugal and Spain Wednesday but this weekend, the heat wave is expected to reach Britain and

possibly bring the highest temperatures ever recorded. As the heat grips the continents so do massive wildfires as CNN's Jennifer Gray reports.


JENNIFER GRAY, CNN CORRESPONDENT (voice over): Plumes of smoke billowing into the sky blamed scorching hundreds of hectares of land emergency crews

battling to bring the blazes under control. In Portugal, France and Spain dozens of wildfires are sweeping the region amid a blistering heat wave

threatening residents and tourists.

MYLENE DOREAU, MAYOR OF GUILLOS, FRANCE: There are no longer residents in my town, maybe two or three people but no one is left. When I saw the fires

by the houses and we had to evacuate people who didn't want to leave their homes. That's alarming, everyone has dogs, cats, chickens they wanted to

save everything, but they had to move quickly.

GRAY (voice over): In Southwestern France, local officials safe thousands have been evacuated many now in temporary shelters as they escape the

raging wildfires.

PASCAN CORDONNIER, TOURIST EVACUATED FROM TROYES, FRANCE: We see it on TV and we tell ourselves it'll never happen to us. And then inevitably, when

it does happen, it's upsetting especially the people shouting, the smell of smoke and all that. It's scary. I didn't think it would be so hard and with

the heat and fatigue I'm just glad we're here now.

GRAY (voice over): Hundreds in Western Spain and Central Portugal have also been evacuated as firefighters struggle to control a series of wildfires



JOAQUIM GOMES, RESIDENT OF OUREM, PORTUGAL: I've been here for 50 years and I can't remember something like this ever happening before. Because it's

everywhere it's burning in all directions. I just can't remember anything like this.

GRAY (voice over): Portuguese officials tells CNN that the country is better prepared to combat the ongoing fires than in previous years after

reforms implemented since devastating wildfires killed dozens in 2017. But the current wildfires do pose a grave challenge.

JOAO GOMES CRAVINHO, PORTUGUESE FOREIGN AFFAIRS MINISTER: The convergence of factors that we are having this week in Portugal in Spain and the whole

of the Mediterranean, with after very little rainfall, very high temperatures, not just of the air, but of the of the grounds and very low

humidity winked from the southwest. This convergence of factors is extremely worrying.

GRAY (voice over): As fires tear through the region, millions across Western Europe are sweltering in an extended record breaking heat wave with

the highest level of heat alerts issued in several areas. But those scorching temperatures and devastating fires that accompany them may soon

become the new norm.

According to a February report from the United Nations, the number of extreme wildfires is expected to go up by as much as 30 percent within the

next three decades, as a climate crisis triggers searing heat and droughts. Fires blazing across Western Europe it appear the latest impact of human

caused climate change in an increasingly warming world Jennifer Gray, CNN.


CHATTERLEY: OK, coming up on "First Move", John Kirby, the Coordinator for Strategic Communications at America's National Security Council will join

Becky to discuss Biden's controversial trip to the Middle East. That's next, stay with CNN.



ANDERSON: Welcome back. I'm Becky Anderson joining you from Jeddah in Saudi Arabia where President Joe Biden will land in the next 24 hours. Right now

he's in Jerusalem, telling his hosts that the U.S. stands by its ironclad commitment to Israel.

The two countries jointly declaring they will never allow Iran to acquire nuclear weapons. Biden saying the move is vital to the security of Israel,

the U.S. and the entire world he said. On the murder of Journalist Jamal Khashoggi Biden says his position is already quite clear when asked if he'd

bring up the topic to Saudi leaders.

He shied away from a yes or no answer a turnaround from his campaign comments on the killing to which Saudi's Crown Prince is linked well as

Biden towards Israel controversy and discomfort in some quarters over his impending visit here to Saudi Arabia.


ANDERSON (voice over): When Joe Biden arrives in Saudi Arabia on Friday; don't expect to see scenes like this. It was then President Donald Trump's

first foreign trip back in 2017, underscoring the importance he placed on America's relationship with the kingdom.

TRUMP: A great honor to have the Crown Prince.

ANDERSON (voice over): But his successor chose to signal a different approach.

BIDEN: I would make it very clear, we were not going to in fact, sell more weapons to them. We were going to in fact, make them pay the price and make

them in fact the pariah that they are.

ANDERSON (voice over): Since taking office, Biden has avoided directly engaging with the kingdom's de facto ruler Mohammed Bin Salman, also known

as MBS over human rights violations. MBS has denied he ordered the killing of Washington Post Journalist Jamal Khashoggi in 2018.

But has said he bears responsibility, but geopolitical challenges may have forced President Biden to adopt a more conciliatory approach than candidate

Biden promised. He'll be flying into the Red Sea City of Jeddah after wrapping up a visit to Israel, a flight that has never before been taken by

a U.S. President.

And a clear example of the improving ties between Israel and Arab States first initiated by the Trump Administration and the Abraham Accords

UNIDENTIFIED MALE: --for the signing of the document.

ANDERSON (on camera): Behind me is where Joe Biden will meet with leaders from the GCC plus Egypt, Jordan and Iraq in the coming days. He's keen to

provide support for further normalization efforts with Israel and provide a unified regional front against Iran, as talks to revive the nuclear deal

continue to stall.

ANDERSON (voice over): Another key priority energy security, Russia's invasion of Ukraine earlier this year and subsequent Western sanctions on

Moscow has left the world short on supplies. And that means Washington needs Saudi Arabia and other Gulf allies to increase oil production to help

bring down prices at the pump and curb inflation at home.

Well, the White House has confirmed Biden's upcoming meeting with Saudi officials will include MBS it also announced new COVID measures reducing

presidential touch, raising questions about whether the administration is trying to avoid the optics of a Biden/MBS handshake.

ANDERSON (on camera): Or optics aside, President Biden's visit here to Saudi Arabia will be key in resetting Washington's relationship with its

Middle Eastern partners skeptical of America's commitment to them and may bring about a regional security arrangement in the coming month.

ANDERSON (voice over): So while it's unlikely Biden will be received like Trump was the stakes couldn't be higher for a U.S. President whose domestic

agenda hinges on the success he finds abroad.


ANDERSON: Well, in Israel earlier, Mr. Biden made one commitment clear saying the U.S. will not allow Iran to acquire nuclear weapons. Israel's

Prime Minister Lapid told Biden that the U.S. is threat must be credible and requires force, not words.

John Kirby is Coordinator for Strategic Communications at the National Security Council. He joins me from Jerusalem where Joe Biden just announced

the joint security declaration. It's good to have you, John! In the last couple of hours Israel's Prime Minister had this to say when speaking about

Iran, take a listen.


YAIR LAPID, ISRAELI CARETAKER PRIME MINISTER: Words will not stop that Mr. President, diplomacy will not stop them. The only thing that will stop Iran

knows that if they continue to develop their nuclear program, the free world will use force.



ANDERSON: President Biden said he still prefers diplomacy but will use military action as a last resort. John Kirby is President Biden going to

put a credible military threat on the table as the Israeli Prime Minister is calling for.

JOHN KIRBY, COORDINATOR FOR STRATEGIC COMMUNICATION, NATIONAL SECURITY COUNCIL: President Biden has been very, very clear that he's not going to

take any option off the table with respect to staying true to our commitment that Iran cannot have a nuclear weapons capability. But he also

was very honest and you heard that today, Becky, that he still believes diplomacy is the best path forward to achieve that outcome.

Now look, the Iran deal negotiations are pretty well complete. There's a deal now on the table. And the President and you heard him say this today

believes that the onus is on Iran now to take that deal to accept that deal so that we can move past where we are right now.

ANDERSON: Well, some will say that without a return to the JCPOA, that limits Iran's nuclear program Tehran, will reach the threshold of nuclear

weapon capability. Does that concern you? And are the Israelis asking you to prevent Iran from reaching that threshold?

KIRBY: We are obviously concerned about increasing nuclear material being developed inside Iran. I mean, it's no secret that they are closer now than

they were when our administration took office because the previous administration pulled out of the deal, and lifted those constraints, got

rid of those rigid inspection regimes that were in place.

So obviously, we're concerned about this continued development by Iran of that fissile material. And that's why again we still believe that the best

outcome is Iranian compliance with the JCPOA so that we can prevent them from getting a nuclear weapon capability.

ANDERSON: But if not, does that beg a preemptive strike?

KIRBY: I won't speculate about military operations, one way or the other. The President has made it clear, Becky that he's not going to take any

option off the table. But the preferred option still remains, in the President's view, a diplomatic path.

And he still believes that there's time and space for that. But you heard him say today, we're not going to wait forever. There's a deal on the

table. We want Iran to accept that deal, so that we can make the region safer for everybody.

ANDERSON: What are we talking about here? Are we weeks, months away at this point?

KIRBY: No, I won't speculate about, you know, a timeline. I think the President was very clear that we're not going to wait forever. Again I want

to say it again. And I know I sound like a broken record here. But there is a deal.

And we need Iran to accept that deal. There has been a lot of hard work done by diplomats, not just American diplomats, but from our European

colleagues as well, to get to this point. So there's still a chance. But obviously, you heard the President say we're not going to wait forever.

ANDERSON: Ahead of this trip, the White House also messaged about Iran, supplying drones to Russia. Is it your assessment that Iran has drone

building capacity and technology to be a significant player in this arena?

KIRBY: Well, we know they have the ability to build, manufacture and to field, their own drones. And they have used some of that technology against

our interest and our troops in places like Iraq, and in Syria. So clearly, they have the domestic production capability.

I don't know the parameters of the deal that Mr. Putin has struck, so I couldn't speak with specificity about how well Iran will be able to step up

to this requirement? But I think there are two things that are obvious here. Iran is also an isolated nation, and so is Russia.

So Russia, turning to Iran for help, I think speaks volumes of the degree to which both nations for their actions in two different areas of the world

have even been increasingly isolated by the international community.

And number two, that it's indicative of Mr. Putin's problems in terms of replenishing his own defense needs to prosecute this war in Ukraine that we

know that the sanctions are biting, we know the export controls are biting. We know that his ability to replenish precision guided munitions and now

UAVs are limited because of the pressure that the rest of the world is putting on Mr. Putin.

ANDERSON: The President also discussed the two state solutions but there is some frustrations on the part of the Palestinians that the U.S. President

doesn't have anything to offer them no clear timeline for the reopening of the U.S. Consulate in Jerusalem.


ANDERSON: The de facto U.S. mission, of course, to the Palestinians there no effort to reverse laws, defining the PLO as a terrorist group no support

to release tax revenues withheld by Israel.

Is it fair to describe the inclusion of Mahmud Abbas on the U.S. President's agenda is anything more than a courtesy call, as one

commentator has described it?

KIRBY: No, we would not say that at all. We certainly would not say that is a fair characterization. The President is looking forward to his

discussions. He is meeting with President Abbas and to making clear to the President that the United States still stands firmly in favor of a two

state solution.

We think that that's the best path forward here. A two state solution is still possible. But the President also has said both sides have to want it

as well. So the United States will continue to reaffirm our commitment to that. But we obviously would like to see both sides take steps in that

direction as well.

We would know, and we were encouraged by the recent conversation between Prime Minister Lipid and President Abbas. We think that's an important step

forward, and we hope it leads to additional steps. But again, both sides have to be equally committed to this as well.

ANDERSON: John, why did the President choose not to meet the family of the American Palestinian Journalists Shireen Abu Akleh?

KIRBY: The President stays laser focused on this case. He has made it clear throughout our administration and certainly to leaders here in the region

that we want to see full transparency with respect to investigative results.

And we want more information about exactly what happened to Ms. Abu Akleh. And we have also stayed in touch with her family. Secretary Blinken just

had a recent conversation with the family in recent days. And we'll continue to do that.

We'll continue to make sure that we're staying in touch with them, and that we're giving them as much information as in as close to real time as we

can. It's important to us that there'll be transparency here with the investigative efforts.

And it's obviously important to us that there's proper accountability. We know that they want more answers, quite frankly, we share that concern. We

want more answers, and the President is going to stay focused on this.

ANDERSON: When asked about his potential meeting with the Saudi Crown Prince Mohammed Bin Salman, the President framed his visit to Saudi Arabia

as part of a wider regional plan, not simply a bilateral visit, which to a certain extent is fair enough.

How concerned though, are you about how this visit is playing back in the U.S.? And when the White House announced recent COVID measures that will

limit the President shaking hands on this visit is that simply a way to prevent a potential handshake with the Crown Prince?

KIRBY: President's looking forward to his trip to Saudi Arabia here in the next day or so. There's an awful lot on the agenda Becky, you talked about

a bilateral discussion and there will be with King Salman and his leadership team which of course includes the Crown Prince.

And then there'll be a full day on Saturday, in the context of the Gulf Cooperation Council plus three. And my goodness, between those two sets of

meetings. There's an awful lot of ground to cover.

The President is looking forward to having a discussion here with nine leaders in the region nine state leaders on things as diverse as

counterterrorism, the threat of Iran, which you and I have just been talking about the continued ceasefire in Yemen and seeing that that gets

continued in that we've had the longest now period of peace in Yemen that we've had in seven years so literally thousands of Yemeni lives have

probably been saved by the stoppage of the conflict there.

And there's a robust agenda. The President will greet these leaders, all of them in the same way that he's been greeting leaders around the world. And

he's looking forward to a robust agenda. And his focus is not on the greetings themselves. His focus is on the actual agenda and the topics that

have to be furthered and discussed in Saudi Arabia.

ANDERSON: Yes, and you'll find a region which is really sort of on the move as far as Build Back Better together. We are seeing a real de escalation of

tensions by many of these regional sorts of heavyweights here, and it's sort of coming together of regional alliances and ties.

Not just on the economic side, but on the security side as well for the bettering they say of this region, so quite a different region from that

which the President will have traveled through in the recent past. John it is good to have you thank you, John Kirby joining me from Jerusalem, the

first leg - thank you - of Joe Biden's trip.

Coming up Julia takes a look at the tension between a major airline and one of the world's busiest airports that's an incredibly important story find

out why up next.



CHATTERLEY: Welcome back to "First Move". We can start to the Wall Street trading day as expected all the U.S. majors down by well over 1 percent

bridging 2 percent as you can see there for the DOW is yet another U.S. inflationary data point.

This time the Producer Price Index comes in red hot. Today's the numbers suggest that businesses as well as consumers are facing growing pricing

pressures further complicating the Fed's rate hike path.

A shaky start too to U.S. earnings season it's all tied JP Morgan and Morgan Stanley lower in early trade after both of the Wall Street banking

giants missed on earnings and revenues. JP Morgan taking steps to address the uncertain economic picture including suspending share buybacks a weaker

deal making environment impacting the bottom line at Morgan Stanley just sheer uncertainty and volatility.

Rahel Solomon joins us now and into that mix a weakening growth outlook, Rahel. We're starting to think the unthinkable and that is that the Federal

Reserve might have to hike a full percentage point at the next meeting and then three quarters at the one after, that's a lot of work being done in

terms of tightening.

RAHEL SOLOMON, CNN CORRESPONDENT: Yes, what seemed unthinkable about a week ago was starting to look a lot more likely. And this of course, after a

fresh set of bad data this morning, as you already pointed out, Julia producer price index.

That report coming in at 11.3 percent year-over-year for producer prices for factory level inflation at 1.1 percent over the last month so red hot

numbers there. And of course, that is on the heels of yesterdays' much hotter than expected consumer price inflation report. So this is

problematic to say the least for the Federal Reserve.

And to your point, Julia, just a week ago, we were talking about half a percent to three quarters of a percent for the Feds meeting in two weeks.

Now all of a sudden we're questioning might we see a four percentage point when asked about this yesterday, Atlanta Fed President Raphael said

everything is in play Julia.

CHATTERLEY: Yes, likes is my response to that? Rahel Solomon, thank you for that update there. And all is tied to our next story as well and we're

calling Armageddon. The UAE's Emirates Airline rejecting a request by Heathrow Airport to cut flights, calling it "Unreasonable and unacceptable"

Heathrow has asked airlines to stop selling any more tickets for this summer as it struggles to cope with high demand.

Anna Stewart joins us on this story. Anna we said the airlines will be unhappy furious I think is a more appropriate word where Emirates is

concerned incompetent their word not mine and we're not cutting capacity. The end this was quite striking.


ANNA STEWART, CNN REPORTER: It really was? This was the most stinging rebuke I think I've ever seen in a corporate statement ever calling

Heathrow Airport Cavaliers and have no regard for their customers, the airlines and also of course for the consumer.

And it was hard actually to lift out a paragraph from it. But here's one little bit where it says London Heathrow Airport, chose not to act not to

plan not to invest now faced with an Armageddon their word situation due to their incompetence and non-action. They are pushing the entire burden of

costs and the scramble to sort out the mess to airlines and travelers.

Now we've already heard from Willie Walsh, the Head of IATA the Global Airlines Association earlier in the week. He accused Heathrow Airport of

trying to maximize profits at the expense of both airlines and passengers. Lufthansa responded straight after the announcement about the capacity cap

they said they'd already cut a lot of flights from Heathrow.

And many other destinations I more diplomatic way of saying what ultimately Emirates has said, which is they are not cutting any more flights. Now

Heathrow said on Tuesday that they were just requesting airlines do this capacity cap.

They weren't going to enforce it. But today from Emirates, they say the airport has threatened legal action. We're still waiting for a response

from Heathrow on that, so a lot of confusion as well. I can tell you many airlines clearly are not obeying the rule or the request if it is a request

from Heathrow Airport to stop selling tickets, because I can tell you I've just been booked onto a flight from Heathrow, traveling to Dubai at the end

of July.

If of course that flight takes off if it takes off on time and if of course my bag gets there those are all questions I do not know the answer too?

CHATTERLEY: Yes, and if it's not canceled, I guess the other challenge here. Speaking of lost bags, I mean, airlines around the world are all

having capacity issues. Let's be clear. So we're not just seeing this in Heathrow. There are other issues but Delta taking some unique measures to

retrieve lost bags themselves as a result of the Heathrow chaos?

STEWART: This was an extraordinary solution they said a creative solution. Just look at all those bags you're seeing on the screen stacked up at

Heathrow Airport, Delta decided as they had to cancel the scheduled flight from Heathrow to the United States as a result of the capacity cap this


They took the opportunity and the slot available for them to take a big plane and put thousand bags on it bags that had been stuck at Heathrow

Airport and they've taken it back to the U.S. and onto their customers. Absolutely extraordinary as a solution isn't it?

But also it made me wonder this is just one airline Delta this is just the customers who bags are stuck who are currently in the U.S. How many bags

are at Heathrow right now for all of the different airlines to fly to all of those different destinations, Julia?

CHATTERLEY: Yes, to me to count or keep track of it seems. Anna Stewart thank you for that! OK, coming up after this a day to remember for this

little pup and despite the years like wardrobe malfunction there all went well, we will explain after this. Don't go away.



CHATTERLEY: Welcome back to "First Move". And finally and we end the show today with a compact Canine Crescendo. You're witnessing the wedding of two

senior dogs at the shelter in North Dakota. The staff thought it would help these bonded pit bulls find a new home together.

Fran and Earl enjoyed flowers and a cake and seal the deal with paw prints on a certificate. Of course we never miss an opportunity here on "First

Move" to get Romeo involved.

He's ready in his favorite outfit. Yes, you can probably tell he hated it. We both wish long and happy lives and hopefully find that new home very

soon. Yes, if you think I'm bonkers, you would be completely right.

That's it for the show. If you've missed any of our interviews today they will be on my Twitter and Instagram pages. You can search for

@jchatterleycnn. In the meantime, "Connect the World" with Becky Anderson live from Jeddah continues after this stay with CNN.