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First Move with Julia Chatterley
Ukrainian Official: Growing Risk of new Front from Belarus; Iranian Protester Describes Horrors of Violent Crackdown; Ukraine: Russia has Damaged 40 percent of Energy Infrastructure; Ukraine Appeals to Allies for more Air Defense Systems; Twitter Deal set to Close Next Week; Protecting Personal Info from Online Security Breaches. Aired 9-10a ET
Aired October 21, 2022 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JULIA CHATTERLEY, CNN HOST, FIRST MOVE: A warm welcome to "First Move" great to have you with us this Friday! TGIF or in the U.K. T-G-I-O, Truss
gone, it's on whatever it means. We are live in London for you shortly as the Conservative Party launches a new leadership search a day after Liz
Truss called it quits ending the shortest leadership term of any U.K. Prime Minister. And UPM promised as early as next week.
Hash tag brings back Boris trending as we speak. Is Boris mock too really interview honestly speaking, we don't have a clue but we'll try. Also this
hour we're awaiting the sentencing of Former Trump adviser Steve Bannon found guilty of contempt of Congress for failing to cooperate with an
investigation following the January 6 capitol riots.
Department of Justice has recommended a 6-month prison term. We will bring that news to you the moment it breaks. Also, Twitter fitter certainly
leaner if a report on the Washington Post proves correct.
Elon Musk discussed cutting 75 percent of the firm's workforce if and when he takes control. Twitter shares also under pressure pre-markets on fears.
The deal might be up for a U.S. security view.
Tech Analyst Dan Ives will give us his take later on in the show and for now nothing positive to tweet about. On Wall Street U.S. stocks on track
for a third day of losses as you can see there red on the screen.
Despite further solid earnings reports the benchmark U.S. 10-year Treasury yield hitting a new 14-year high with the futures market. Now expecting Fed
interest rates above 5 percent by next year and as you can see there at the bottom of your screen European stock markets also softer too with the pound
softer against the U.S. dollar.
Nowhere near last month gut wrenching plunge during the worst of the Truss induced budget fast. But fresh concern that new Chancellor Jeremy Hunt's
fiscal plan due on Halloween. Of course 31st of October might be delayed by the search for a new Prime Minister.
Much to discuss today, as always first, I will head to Ukraine where homes and businesses have been plunged into darkness there are now rolling
blackouts in Kyiv as Russian strikes have knocked out as much as 40 percent of its power infrastructure and a Senior Ukrainian official warning that
Russia could open a new front in the war from Belarus.
CNN's Senior Diplomatic Editor Nic Robertson joins us now from Kyiv. Let's begin with the rolling blackouts. Nic, what are we talking about in terms
of hours with power and hours without.
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes, you can lose power for four hours here expects the government says to get it back for six
hours. And then you could lose it again for another four hours. There's a lot of very heavy advice coming from the government telling people between
those sorts of peak usage hours 5 pm to 11 pm in the evening.
Don't use your heavy duty electrical devices, the things like washing machines, heaters, those sorts of things. Don't use those at the peak hours
in the evening. That's the way to try to spread the load. But there's also advice such as make sure you've got plenty of water stored away. Because
when the electricity is off, you won't get water.
Have extra blankets in the house have extra socks, charge your phones, charge your battery packs so a lot of advice. And even in some cities,
there are sort of electricity consumption. Police out regular Police but on their patrols, making sure that there aren't extra lights on the City of
Police there are making sure that people aren't sort of leaving lights on business premises overnight where they don't need to be on. So this is a
very, very big and sharp issue for the government. If they cannot keep pace with the attrition to the electricity supplies in terms of repairs, then
the system could degrade further.
So spread out the usage. That's how the government's trying to get around the situation right now.
CHATTERLEY: Important advice as well for people as we had further into winter as well to be prepared with things like blankets and socks, just the
basics. Something else that caught my attention, Nic as well, the comments on the Senior Military Official of Ukraine suggesting that there's growing
danger of a new front being opened via Belarus and that would split the focus of Ukraine as well in terms of where their forces and where their
focus is now. What more detail do we have on that and the concern?
ROBERTSON: Yes, it's a concern of course; the sirens the air raid sirens went off here in Kyiv a little while ago.
ROBERTSON: And oftentimes, the sirens here will go off. Because to detect military activity is detected either potentially missiles being prepared or
fighter jets take into the air in Belarus. Because Belarus is already being used by Russia as a platform to attack here and it's relatively close.
So Belarus is relatively close to the capital. When Russia launched that advance into Ukraine earlier in the year a lot of the troops came through
Russia. But there's a real concern now that as Belarus and Russia now have formed this joint force, several weeks ago.
This was announced that this could be a threat to the northern border moving the potential for that advance further to the west. So of course, as
you say, this is a concern for authorities, because there have a big offensive in the south. But if you have a threat from the north end, do you
have to divert troops up there?
Is this a real and genuine threat and the assessment at the moment seems to fall in the area of actually Ukrainian officials feel that the threat from
the north is genuine. They say that in recent days, they've seen military equipment, and personnel moving into positions north of the border. So this
is the growing concern, balanced against, of course, the need to keep troops in the south and keep that offensive to retake territory ongoing
there as well.
CHATTERLEY: The challenge is continuing. Nic Robertson, thank you so much for that. And later in the show, we'll hear from the Ukrainian
Infrastructure Minister, about how the country can rebuild and the immediate priorities of course too.
OK, let's move on and the race is on. Again, the British Conservative Party searching for a new Leader and a new Prime Minister with Liz Truss
admitting defeat after just 45 days in office. Possible contenders include Former Prime Minister Boris Johnson, and he's expected to get support from
the Current Defense Minister.
(BEGIN VIDEO CLIP)
BEN WALLACE, DEFENSE MINISTER OF THE UNITED KINGDOM: At the moment, I would lean towards Boris Johnson. I think he will still have some questions or
answer around, obviously that investigation. But I know when I was Secretary of Defense, he invested in France, he supported me, he supported
the actions this country has taken to keep her safe.
(END VIDEO CLIP)
CHATTERLEY: Bianca Nobilo joins us on this. That would be an important vote of confidence in Boris Johnson from the Defense Minister, Bianca. But the
political jockeying has already begun.
I've seen the hash tag; bring back Boris, ready for Rishi, of course. Rishi Sunak, the Former Chancellor, and just map out again. What we're seeing in
terms of voices of support for various candidates? And how it's going to work in terms of who we come to the decision?
BIANCA NOBILO, CNN CORRESPONDENT: While the Defense Secretary Ben Wallace is tipped is one of those big beasts whose endorsement will go a long way.
He's a formidable character, and also popular with the membership himself. And he's stayed in post for a considerable period of time, given the last
two governments that we've had here in the United Kingdom.
What he said was significant as well. He said that he was leaning towards the Former Prime Minister because mandate credibility and justification of
having another Prime Minister without an election was going to become a question.
And you hear that from inside the Boris Johnson camp, that because he's already won an election. He'd be the natural next leader of the
Conservative Party to avoid those difficult questions over whether or not the party can really have a second Prime Minister. That was unelected by
the British public in terms of where we are and the runners and riders that are emerging.
Obviously, Boris Johnson is the large focus in Westminster will he won't he the consensus is that Johnson doesn't like to lose. So behind the scenes,
he's trying to figure out along with his team, will he get to that critical threshold of 100 MPs. And if it looks like he will, then I'm sure there's
nothing that can stand in his way.
And of course, given the Shakespearean nature of British politics at the moment one of the contenders that he would be standing against is
successful would be Rishi Sunak his Former Chancellor, and for many in the Johnson camp, anathema.
Because he was criticized as being the one to ultimately stabbed Boris Johnson in the back which precipitated that waterfall of resignations that
led to the end of Boris Johnson in number 10 last times round. Another key figure though, is Penny Mordaunt.
So she was the second runner up in the previous leadership contest. And she is one to watch because the acrimony between Johnson and Sunak and those
cams is quite acute. And there's a lot of factionalism.
She could present herself as the Unity candidate and make quite a strong case for doing so. But it will all depend on the members if more than one
person gets the support of 100 MPs. And if polls are anything to go by, it's suggested that Boris Johnson would have the edge.
CHATTERLEY: It sort of digging into the weeds of recent history. But I think they're important weeds in this case and perhaps big ones for Boris
Johnson in particular. One thing that perhaps stands in the way is that parliamentary committee investigation into whether or not he misled or lied
to lawmakers over the party gate scandal.
CHATTERLEY: Of course to remind I'm not sure they will have forgotten but the actions of the government during COVID. Bianca, what happens if that
parliamentary committee finds against and then reestablished British Prime Minister? Would you have to step down once again, I mean, the revolving
door reference that the Leader of the Opposition used yesterday, springs to mind.
NOBILO: Julia, this is such an important point. And I was speaking to some MPs earlier who said they feel like there's a sense of collective amnesia
about the circumstances under which Boris Johnson ultimately was forced out of Downing Street. That investigation around 140 of his own MPs, 148 I
believe voting against him in that confidence vote.
So many letters from his own party saying that he wasn't fit for office anymore but this investigation is key for the reason that you outlined
because it the parliamentary standards committee finds Boris Johnson guilty of having misled Parliament along the line.
And that investigation was into whether or not he informed the House of Commons that no rules have been broken inside number 10 inside the
government buildings during the COVID lockdown and if he was found to have not been honest, when he gave that response to the House of Commons.
Then that's misleading parliament, you can't willingly lie to Parliament that is a resigning offense. So that could mean a suspension or losing your
seat as an MP. Now naturally, that could be a big issue, because if Boris Johnson did in a sounding turn of events.
Find his way back into number 10 by next week. And then faces this investigation, which we understand will occur in November and go on for
about three and a half weeks or thereabout. Then that could put the party into another phase of instability.
And I think the British public is just getting quite impatient that they want the biggest issues that are facing this country address. And don't
want that revolving door to keep on turning and more uncertainty about who is going to be occupying that building behind me.
CHATTERLEY: Bianca, someone on social media when I post out this conversation can cover my face with that head bang emoji, quite frankly, at
this moment. Bianca Nobilo, Great to have you with us your context. Thank you so much for that.
OK, let's move on now to Iran, where for weeks ordinary Iranians have been risking their lives to fight for civil rights. CNN's Jomana Karadsheh
recently spoke to one woman who told her what she has experienced, and why she's risking her safety to take a stand. We want to warn you that some of
the images in this report are disturbing.
JOMANA KARADSHEH, CNN INTERNATIONAL CORRESPONDENT (voice over): Every day for the past five weeks, a little bit of video trickles out of Iran giving
us a small window into the repressive Republic a snapshot of the bravery of protesters and the ruthlessness of regime forces.
The government's internet restrictions have made it hard for us to speak to those on the frontlines of this battle for change. But we got a rare
opportunity to speak briefly with a 28-year old protester. We're not identifying her for her safety.
UNIDENTIFIED FEMALE: When I arrived to process location. I was really scared and I was like, what am I doing here? Here's a warzone and I was so
scared. I realized that if we want to make a change, I should start with myself.
KARADSHEH (voice over): That defiance was met with shield brutality. Women who have been beaten up with batons and shot at this protesters body
riddled with shotgun pellets. According to rights group hangout, many have been dragged by their uncovered hair.
And according to human rights groups and Amnesty International some sexually assaulted in plain sight by the very forces claiming to be the
enforcers of morality.
UNIDENTIFIED FEMALE: Individuals and basset forces attack people and beat them and to scare people. I saw a lady who was coming back from class and
the basset forces hit her. When they beat on in her sensitive place and she couldn't walk.
KARADSHEH (voice over): She recounts in terrifying detail what she and others have witnessed firsthand security forces roaming the streets on
motorbikes attacking people. Opening fire on peaceful protesters and chasing them into buildings.
UNIDENTIFIED FEMALE: When we were attacked, we ran into a store and the sale man closes and locked the door. So the forces couldn't see inside. My
heart was pounding and I was shaking.
My friend said do you want to go home? I said no, like home. I didn't come to run away.
Nothing has happened to me yet. And I was able to skate. But it is possible at any moment. We are now in the worst time of our life. We do everything
we can despite all the stress even if it costs our lives.
KARADSHEH (voice over): To many lives already lost in a battle they say for women life liberty. But that not stopping the fearless generation rising up
to reclaims freedoms they've never known. Jomana Karadsheh CNN, Istanbul.
CHATTERLEY: OK, straight ahead here on "First Move". Russia continues to target Ukrainian energy supplies. The country's Infrastructure Minister
tells us about the partnership with the United States to help the nation rebuild.
CHATTERLEY: Welcome back to "First Move". A pro-Russian official is accusing Kyiv of targeting a river crossing in the City of Kherson. His
claims 2 people were killed in Thursday's missile strike and 10 others were injured. That's happening as Russia conducts the mass evacuation of
civilians from the city. Fred Pleitgen has all the details.
FRED PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): As Ukrainian forces press their counter offensive in the country south. Russia
is resorting to what appear to be increasingly desperate measures in the areas they control in the Kherson region thousands of people waiting to be
evacuated by boat.
The Puppet authorities installed by Moscow claiming they've already taken some 15,000 out of Kherson city. Why did you decide to evacuate? The
reporter asks. I have a small child to take care of you see the woman answers.
Russia says its fairing these people to safety. The Ukrainian say these are little more than deportations. Russia has imposed martial law in this and
other areas of Ukraine controlled by its forces.
The Russian say they are increasing the intensity of their mobilization effort Russian President Vladimir Putin visiting soldiers outside Moscow
and himself even firing a sniper rifle. And Putin's continued aerial assault on Ukraine's energy infrastructure is starting to take a toll.
Ukraine's authorities announcing the need for partial blackouts in most of the country as intense strikes on power plants continue using cheap
kamikaze drones which Kyiv says Iran has provided to the Russian army the spokeswoman for Russia's Foreign Ministry rejecting the allegations.
MARIA ZAKHAROVA, SPOKESPERSON, RUSSIAN FOREIGN MINISTRY: This is nothing more than a collection of unsubstantiated inferences and far-fetched
assumptions that Britain and France are trying to build into a structure.
ZAKHAROVA: And every time it all collapses in front of everyone.
PLEITGEN (voice over): But on Russian TV this military expert and Defense Ministry Adviser seem to admit the origin of the drones not realizing his
mic was hot. He tells the host.
RUSLAN PUKHOV, RUSSIAN MILITARY ANALYST: That's not shaking the boat too much. We all know that they are Iranian. But the authorities did not admit
PLEITGEN (voice over): But the Russians are now admitting things are not going well on the battlefield. The top commander acknowledging his forces
position in Ukraine South is "Tense". Fred Pleitgen CNN Kramatorsk, Ukraine.
CHATTERLEY: Another site near Moscow on Thursday, Russian President Vladimir Putin visiting a training ground for new recruits, accompanied by
Russia's Defense Minister. President Putin's presence at the facility was apparently meant to demonstrate his personal support for the new soldiers.
President Putin even lying down at the gun range to fire off a few rounds with a sniper rifle which is what you're seeing in front of you now the
Kremlin has said its partial mobilization to drive 300,000 Russian civilians into the military is nearly complete. What's not mentioned are
the hundreds of thousands of Russian men who've also fled the country to avoid that conscription?
Vladimir Putin has a long history of presenting a macho image to the world. It's a public persona he's carefully crafted over more than 20 years in
power. A CNN's Brian Todd explains.
BRIAN TODD, CNN CORRESPONDENT (voice over): A made for TV moment Putin style. The Russian President makes personal, hands on show of force firing
a sniper rifle while at a Russian Military base. This video just released by the Russian Defense Ministry.
Visiting a training ground for newly mobilized soldiers Vladimir Putin gets a briefing enters the firing range to observe target practice. Then strides
out on the range himself, dons his eye and ear protection.
Hits the dirt alongside the others and takes a look dust off his coat. Pugs, a soldier then continues his inspection of newly mobilized troops.
SUSAN GLASSER, CO-AUTHOR, "KREMLIM RISING": What's really remarkable is given how Russia is suffering. Battlefield reverses that Putin is willing
to not only take ownership of the war but appears to double down on it by picking up a gun himself and sort of saying, I'm here fighting with you.
TODD (voice over): Here's an exchange where Putin asks a soldier if he's got everything he needs in training. The soldier responds no issue, sir.
And Putin wraps his knuckle on the table in approval. But one clip from near the front lines recently played by CNN portrays the opposite newly
mobilized Russian soldiers in the Luhansk region complaining.
UNIDENTIFIED MALE: We've got this for training 11 days from when we were deployed; we left Moscow 11 days ago. How many times did you shoot already,
once three bullet cartridges?
TODD (voice over): Analysts say Putin's recent order to mobilize 300,000 more troops is beset with problems.
GLASSER: It appears that more Russian men have fled the country that has agreed to go along with Putin's conscription. So this is at a very delicate
moment with the war.
ANDREW WEISS, CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE: What we're seeing instead is an airbrush Kremlin depiction of Russia's mighty army. And we
know quite vividly what has happened to that army on the battlefield inside Ukraine. It's being shredded.
TODD (voice over): But for Putin displays like this are go to move to galvanize support. In the past the Kremlin's put out propaganda images of
him riding a horse shirtless on a bare chested fishing expedition, descending in a small submarine, hiking on a hillside thoughtfully
pondering nature on a fallen tree. We've seen him in organized hockey games, magically scoring multiple goals. But one analyst says put in strong
men act at this point in a grinding war has gotten stale. WEISS: Putin himself just celebrated his 70th birthday. And I don't think most Russians
are taken in by the image of their Leader. I think they're scared of the horribleness of the war in Ukraine. They're worried about their family
members being sucked into it.
TODD (on camera): Part of the irony of Vladimir Putin managing his image and his messaging on the war so carefully. Observers say is that there have
been complaints from Russian families that the Russian government hasn't always been very good about giving information to the relatives of Russian
soldiers that their sons have been killed or wounded in the war. Some families complaining that they've had to get that information from social
media, word of mouth or other means. Brian Todd, CNN, Washington.
CHATTERLEY: Coming up after this, we'll be speaking about rebuilding Ukraine with the nation's Infrastructure Minister. Stay with us for back
CHATTERLEY: Welcome back can be cutting one of our top stories today 40 percent. And estimated 40 percent of Ukraine's energy infrastructure has
been damaged by Russian attacks over the past 10 days leading to power blackouts as winter approaches.
On Thursday, Germany said Russia's "Scorched earth tactics" are only strengthening the Western alliance against Moscow. And the United States
has now agreed to set up a joint infrastructure task force with Ukraine. The aim is to bolster Ukraine's ability to meet critical wartime needs and
to support reconstruction efforts after the conflict ends.
Joining us to discuss this and more Oleksandr Kubrakov, the Ukrainian Infrastructure Minister and he's joining us now from New York. Minister
Great to have you on the show today!
Let's start with the strategic partnership with the United States. I know you're here having discussions about the future too. What does this
agreement mean in practice today? And does it guarantee investment?
OLEKSANDR KUBRAKOV, UKRAINIAN INFRASTRUCTURE MINISTER: Security much for a question. For us it's very important to feel to see support from the United
States of America where for the moment. We'll say thank you for the support for military supply for direct financial support of our budget.
But infrastructure recovery is also important. At the moment, we are focusing only on critical objects we are focusing on transport
infrastructure on energy sector. We are talking this face like survival face and survival projects from United States of America of the Secretary
of transport department of commercial department.
We received strong signals that they will support us. And again, for the moment we understand the waters continue and the key priorities projects,
which will help us to win.
CHATTERLEY: But those projects I think I'm reading between the lines here will begin after the war ends as opposed to efforts to rebuild before then.
Is that correct?
KUBRAKOV: Yes, like top priority for us to maintain transport connectivity between regions between our main cities in order to supply military,
military staff in order to provide humanitarian corridors and in order to maintain our economy, this is our approach is the same as the energy
Winter's coming and we need to repair some as possible our substations, our power generation. So I mean, this this is top priority for the moment.
CHATTERLEY: I'm sure. That's the first thing actually, that you're being asked is, what is the situation today? How many people are we talking about
that now are suffering with these rolling blackouts, some power at certain times and not others? What can you tell us about the situation in the
country at this moment and the message that you're giving to people as you travel around the world?
KUBRAKOV: First of all, I try to explain. During last several weeks, we do occupied thousands of square kilometers of our territory. So we have
success and we are succeeding, and we are winning on battlefield. At the same time, Russians are trying to change the tactics and they try to as
they're doing like terrorists.
They are trying to hit our largest cities to make life of our people more complicated. And during the last two weeks they attacked energy sector,
substations, electricity, substations, power generation stations. So for us, for sure, it's a life of our people which it is becoming more
complicated - it depends on damages.
But in some cases, it can take half a day without electricity for the electricity for millions and millions of people. In some cases, it could
take even two days. But we're doing our best all services are working. President takes control the situation personally, each day; he has meetings
with responsible services.
So I think and actually fortunately for support of our allies, air defense system is working. And more than more than 70 percent or 80 percent depends
on the rockets were shot by our air defense system, by our military people. And situation is complicated. But again, it's new phase of the war.
CHATTERLEY: I want to ask you about protection of the skies and air systems defenses. But I just want to get back to what you were saying there about
the short term infrastructure damage. And you mentioned it and we were showing pictures there of what looks to be pretty devastated energy supply
Do you have any sense of time, given the current level of damage, how long these rolling blackouts that are now being imposed will last? I know it's
difficult, and it's early days.
KUBRAKOV: Let's - this question is much related. How soon our air defense system will be improved will be upgraded. I mean, in case if it will go on
the same level.
So we expect new demand, just in case if we will receive with the help of our last air defense systems, new systems, more rockets, I think we will be
ready to protect them in parallel, we repair all those damages which we receive during the last two weeks.
CHATTERLEY: And I asked you as a member of the government now really, rather than the Infrastructure Minister, do you have any further
information on when additional support to protect the skies will be provided?
KUBRAKOV: First of all, thank you for Germany for the first provided Iris system. It's very efficient, it shows very good results. And we expect from
U.S. side very soon in the coming weeks first - system. So it's also important and hope that we heard quite good news last week from friends
from Spain from other countries.
So I hope UK also they're trying to find us some systems. So I hope that in the coming weeks, we will upgrade our system center. Our military people
they're doing a fantastic job. They train - they try to use this all new equipment in a base they trained immediately. So I think even with these
challenges, because again, with support of our allies, we will be even this--
CHATTERLEY: I know it's difficult to answer the question, should we assume weeks rather than days for the rolling blackouts?
KUBRAKOV: I think it's - I mean the situation is unpredictable.
KUBRAKOV: But again, our people and our government, our team president we're ready for any scenario. What we see is our people committed everybody
ready to suffer but in order to win.
CHATTERLEY: You know, the message that we keep hearing after these attacks, and as you said, it's a new way of waging war with these strikes on
critical infrastructure and on the largest cities, that it's only strengthening the Ukrainians people's resolve in standing up in defense of
their country. I just wanted to ask - please.
KUBRAKOV: You know, sorry for interruption.
CHATTERLEY: I was just going to ask whether that's the case and what the message is perhaps to Ukrainian people at this moment? What you want people
outside of Ukraine to understand about what people are still going through, and still fighting for?
KUBRAKOV: People protect their own country, everybody understands this, everybody feels that our army on battlefield is winning. In Southern part
in Northern part in the Eastern part, in spite of all this hundreds of thousands of new drafted, people in Russian Army.
And they understand that all these attacks on energy sector, it's like attempt to make the life of our people more complicated. And this idea of
Russian President probably Russian military people, but it won't work. Our people during the last eight months showed that they are ready to wait.
Their support to army and they're ready to suffer. So we understand what we're waiting for. Well, we are fighting for our country.
CHATTERLEY: Even in the deepest of winter, when if we pray they aren't but people are cold and suffering without light still no negotiation with
Russia until they leave. Is that correct?
KUBRAKOV: Absolutely. Until they leave our territory.
CHATTERLEY: Minister, thank you so much for joining us today! We wish you well.
KUBRAKOV: Thank you.
CHATTERLEY: You're in our thoughts you and your people. Thank you, sir the Ukrainian Infrastructure Minister there. OK, coming up here on "First Move"
more Twitter turmoil as Mask's deal deadline creeps closer what potential layoffs in the security career review could mean for the company? Tech
Analyst Dan Ives after the break.
CHATTERLEY: Welcome back to "First Move"! In a highly volatile start to the trading day on Wall Street this Friday the major averages seeing large
swings in early trade amid ongoing concerns about rising bond yields and the effort strengthening U.S. dollar. You've heard it all before.
This week also notable for a relentless parade of downbeat economic exclamations from the likes of Jeff Bezos, the Amazon boss, former Amazon
boss, Goldman Sachs CEO, David Solomon and Elon Musk, who are all worried about recession.
A Conference Board Survey also shows an overwhelming 98 percent of U.S. CEOs anticipate a recession as well as possible layoffs. Cue a report from
"The Washington Post" saying Elon Musk has discussed cutting some 75 percent of Twitter's workforce with potential investors if and when he
takes control of the social media platform.
Twitter shares currently down by more than 4 percent also on fears that the $44 billion takeover deal might be up for a U.S. national security review.
And Elon Musk once again commenting on Russia's war in Ukraine after Russia's Former President Dmitry Medvedev tweeted about Liz Truss
resignation in the UK stick with me.
The Tesla CEO responded tweeting "Pretty good troll to be honest". By the way, how's it going in - Medvedev responded, "See you in Moscow for Victory
Day". This is the reality on the ground. CNN's Fred Pleitgen was recently there - it's a place which has been dealing with a barrage of Russia and
(BEGIN VIDEO CLIP)
PLEITGEN (on camera): So we're taking cover here because we just had some incoming artillery fire. We're going to wait and hope that there are not
any hits anywhere close to us.
PLEITGEN (voice over): We're at the receiving end of a full Russian artillery barrage. Photojournalist Richard Harlow tracks several of the
projectiles whizzing close over our heads. She says Ukrainian troops face this kind of shelling several times a day.
(END VIDEO CLIP)
CHATTERLEY: All of this comes the deadline for Musk to close the deal for Twitter quickly approaches. The billionaire has until October 28th to seal
the deal if he wants to avoid a trial. Joining us now is Dan Ives Managing Director and Analyst at Wedbush Securities. Dan, great to have you with us!
And forgive me this question for this question. But I feel if I were an investor, I would be asking you this. There's clearly much to discuss. And
we know that Elon Musk is also helping Ukraine with the provision of Starlink Satellite Technology.
But when you see him on Twitter, engaging with the Deputy Chairman of the Security Council in Russia, he always raises all sorts of questions. Dan,
do you just stick to the fundamentals where Elon Musk and his businesses are concerned? Or is this arguably a worry an ongoing worry?
DAN IVES, MANAGING DIRECTOR & ANALYST, WEDBUSH SECURITIES: It's hard to ignore because it's just so horrific in terms of what's going on Ukraine,
in fact, that Musk those tweets like that, Julia, it just keeps. The theme here is that and you've seen it in Tesla stock is that this is a CEO right
now that continues to sort of get further and further away from really who he was called to three years ago.
And I think that's part of the frustration with Twitter, you talk about the national security potential review, the 75 percent cuts, this is just a
Twilight Zone circus show that continues to take other twists and turns with Musk leading the way.
CHATTERLEY: As you mentioned, the security review the reports of a potential U.S. security review. One of the members of my team pointed out
this morning, and it really did make me think that the conversations with Russian officials perhaps and some of the questionable comments that he's
made, perhaps raise the probability of that review, and maybe that's something that he's trying to do.
We know that, as he said on his earnings call that he's overpaid in this deal? Dan, it's tough to know whether that's a credible concern or not. But
again, I sort of throw the question to you.
IVES: Look, I mean, from valuation, he's basically paying 44 billion for something that's probably worth 25 billion 30 billion at most. It's a
disaster train wreck deal. And when you start to look at some of these things that are happening in the background I mean look for Musk the only
way out is ultimately the financing falls through or obviously if there's an increased government review.
IVES: And I think that's why you're seeing Twitter stock sell off the way it is.
CHATTERLEY: I can't disagree with you. What about cutting the way as a way to growth? 75 percent cut of the workforce for any business is mind
boggling. Even if there's reports behind the scenes that Twitter was already thinking about cutting its own workforce before this sort of deal
negotiation began by around a quarter. Dan, what do you make of those reports with Twitter?
IVES: Look, and the reality is, is that he should try to get cash flow as high as it can on Twitter, to try to get outside financing. The reality is
75 percent cut would take this company back three, four or five years; it would be a disaster scenario in terms of what that would do to Twitter.
But I think that shows, his backs against the wall, he ultimately got into a horrific deal looking for any way in terms of from a financing
perspective. And I think it just shows in terms of some of the desperation that you're seeing, to try to get outside financing because otherwise, it's
a must that stuck with the bill, this deal is going to happen outside something anomalous.
And it's going to be a significant pill to swallow paying. Essentially, he's selling Caviar and Tesla stock to buy a $2 slice of pizza in New York
City with Twitter.
CHATTERLEY: What an analogy? It's got corporate reader feel about it as well with those kinds of helps to your point just to simply raise cash
flow, specifically on the deal Dan. It did sort of catch my attention, this idea that if you try and do a subscription model, I believe the users who
use the most ads will view the most ads of the top 1 percent.
And they're also most likely to be the ones that that take up a subscription. So are you cannibalizing your own advertising revenue
creation introducing a subscription model because if you want to raise revenues, there's a huge problem there if that's the case?
IVES: Well, that's the biggest problem with Twitter. It's always that's why this is the comments, treadmill for the last decade, for monetization
subscription. How do you ultimately increase content? Now when Musk talks about the Super X and call it a China Super App type model down the road?
OK, that makes sense. But in the near term, every slight uphill battle to turn around Twitter, and that's right from us. The easy part was buying
Twitter. The hard Herculean part is going to be turning it around.
CHATTERLEY: Yes. And look how easy the buying was not. Let's talk about the caveat. Let's talk about Tesla because we've got the earnings this week.
You have lowered your price target, but clearly it's still significantly above where we are today.
Did he assuage your concerns about supply about stability about the future particularly in light of what we know in 2023 is going to be a barrage of
competition from other names in electric vehicles hitting the market?
IVES: Yes, I mean, look to me the arms race, especially going in 2023 a seat in Europe in the U.S. as well as China. They continue to be massive
leaders in EVs. I think the demand story continues be robust go in 2023.
But look, the reality is it's been as Cinderella rides in second half 2018. And this is a major rough patch in terms of supply chain as well as demand
around the edges. Musk needs to navigate pilot on the plane to get through this, but the worry about selling more Tesla stock and just like how we
start off. These antics and sideshow continue to really be what I view as a black eye for Musk that I think tainted his view in the eyes of many
investors in the near term.
CHATTERLEY: Yes, I think if there's been a Cinderella ride for Tesla, I think most of the investors with the volatility that the scene is saying
we're ready for the princess. Bring it on, please. We're ready for the princess. Dan always great to chat to you!
IVES: Thank you.
CHATTERLEY: Thank you so much. Dan Ives there Managing Director and Analyst at Wedbush Securities thank you! OK, coming up after the break, I think
you've got a foolproof password for everything think again. Even our Stock Correspondent Donnie O'Sullivan comes up short against the hackers,
important advice to protect yourself next.
CHATTERLEY: Welcome back! Remembering passwords one of the beans of our lives and thinking up new ones that are never easy either. CNN's Donie
O'Sullivan thought he was pretty password savvy until he allowed a hacker to test his online accounts. Just take a look at how easy it is to crack
DONIE O'SULLIVAN, CNN CORRESPONDENT (voice over): So it's been three years since you last hack me here in Vegas, Rachel. You have stolen about $2.5
worth of hotel points.
O'SULLIVAN (on camera): A lot has changed. There's been a pandemic, there's a new president, I am still wearing the same shirt.
RACHEL TOBAC, CEO AND CO-FOUNDER, SOCIAL PROOF SECURITY: Oh, yes.
O'SULLIVAN (voice over): You have put me in a middle sea.
R.TOBAC: I'm afraid--
O'SULLIVAN (on camera): Oh, my God! This time I mean, as far as I know, you haven't broken into any of my accounts so far, anything like that?
R.TOBAC: No. I'm about to do that right now.
O'SULLIVAN (on camera): OK.
R.TOBAC: Most people, when they log into their accounts, they reuse their passwords, or they change it just ever so slightly. And when you do that,
if you've been in a breach, which all of us have, that means I can take that password. And I can shove that into all the other sites that you log
O'SULLIVAN (on camera): I have been using quite a few of the same passwords over the years. I've gotten a bit better with some accounts.
R.TOBAC: I guess we'll find out. I'm going to go to a data breach repository site. And I'm going to put in your email address. You can see
here that you're involved in 13 breaches, just with this email address alone.
O'SULLIVAN (voice over): Wow! Online, there are sites that collect all that breach information like email addresses and passwords. And it's likely some
of your data is in there, too.
R.TOBAC: We have our first password that I found sounded familiar to you Donie?
O'SULLIVAN (on camera): Yes, that's a password I still use today occasionally.
R.TOBAC: OK. So you were using that on LinkedIn?
O'SULLIVAN (on camera): Many times.
O'SULLIVAN (voice over): Tip number one; don't use the same password for different services, your password for your Gmail should be different to the
password for your Instagram. If one of these services gets attacked, and your password is leaked, hackers can use it to get into a different site if
you're using that same password.
R.TOBAC: The hackers got a lot of information, some of which included a hash. We also were able to crack one of your passwords. The other half is
Evan is the other half of Social Security. I want to bring him in here and show you what it looked like when he cracked your password.
O'SULLIVAN (on camera): Evan emerges from the darkness.
EVAN TOBAC, HEAD OF RESEARCH AND TECHNOLOGY, SOCIAL PROOF SECURITY: I can take all the passwords that we know about you put it in a word list, and
then try 10,000 different little tweaks that you'll probably try. I can add a number at the end I can add a special character. And we did that your
password list and we cracked one of your new passwords. Is this a password that you use now?
O'SULLIVAN (on camera): Yes.
R.TOBAC: How do you feel about that?
O'SULLIVAN (on camera): I--
O'SULLIVAN (voice over): Tip number two; don't use very similar passwords across different websites if you don't want people like Evan being able to
figure out your password.
O'SULLIVAN (on camera): You should probably go change my passwords. That's not great.
R.TOBAC: It's not.
O'SULLIVAN (on camera): So what are the tips for people not to be like me?
R.TOBAC: Well, first and foremost, it is on the company's to avoid getting hacked and prevent breaches like this. Many companies do not use MFA
internally that second step when they're logging in. We need them to use that.
O'SULLIVAN (on camera): MFA is Multi Factor Authentication, which is when they text you code or whatever after you put in your password.
R.TOBAC: They text you a code you look at it app. You have a prompt on your phone that's your second step. So if I get your password I still can't log
into your account because I don't have that code.
R.TOBAC: Don't reuse your passwords. If you reuse your passwords across multiple sites, even for sites that you deem silly, or kind of a throwaway
site, I can take that password and I can use it against you. So you have to use long, random and unique passwords for every single site.
I recommend storing it in a password manager, which keeps all of your passwords safe and encrypted and can generate good passwords for you.
CHATTERLEY: You're actually lucky I'm still here because my entire team as well as myself is now going to change all our passwords finally. The De
Swifties have been waiting for has arrived. Taylor Swift's new album Midnight's is out. The 11 time Grammy Award winner teased a release with
this post on Instagram.
She describes her 10th studio album as a collage of intensity highs, lows, ebbs and flows. And that's it for the show. If you've missed any of our
interviews today, they will be on my Twitter and Instagram pages so you can search @jchatterleycnn. In the meantime, "Connect the World" with Becky
Anderson is next and I'll see you on Monday.