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First Move with Julia Chatterley

Protests Continue in China Against Strict COVID Restrictions; NATO Ministers Meet to Discuss Support for Ukraine; Fed Chair Powell to Deliver Policy Speech in Washington, D.C.; Former Chinese President Jiang Zemin Dies at 96; Astronauts Arrive at Chinese Space Station; Lamborghini Unveils Crazy Off-Road Supercar. Aired 9-10a ET

Aired November 30, 2022 - 09:00   ET

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

(COMMERCIAL BREAK)

[09:00:00]

RAHEL SOLOMON, CNN ANCHOR: A very warm welcome to First Move. I am Rahel Solomon in today for Julia Chatterley.

Another busy day on the program, the U.S. and England are celebrate their World Cup advance. Fed Chair Powell delivered an important speech on

finance. And on Wall Street, a higher open, we still have got a chance. U.S. futures pretty flat at the moment after two days of losses for the S&P

500. Europe meantime is fairly higher with new numbers showing Euro zone inflation is slowing for the first time in 17 months.

Closely watched U.S. data has just been released too. An updated read on third quarter GDP shows the American economy expanding at an annual rate of

2.9 percent. That is a stronger pace than the initial reading and also a better performance than expected.

In Asia, meantime, another strong showing for the Hang Seng, that said, weak Chinese factor was also released, data was also released today and it

is a further sign that zero-COVID policies are pressuring the world's second largest economy.

But the main event for global markets today takes place less than five hours from now, and Fed Chair Powell delivers a policy speech at the

Brookings Institution. Will Powell cool like a dove or talk like a hawk on the size and scope of rate hikes? We will discuss later in the program with

Kristina Hooper. She is the chief global market strategist at Invesco.

But, first, we begin in China, where China is seeing more COVID protests despite government attempts to stop them.

This new video here shows angry protesters shouting and throwing objects at riot police in the major city of Guangzhou.

Ivan Watson joins us now from Hong Kong with the latest. Ivan, it appears that these protests have escalated, at least these protests, from just

protests to clashes with police. I mean, how significant are these latest rounds of protests?

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: You are looking at some pretty startling images from the southern city of Guangzhou Tuesday

night, where riot police were dressed in white hazmat suits carrying shields in confrontations with residents there. What all the more startling

is then the next day, city officials announced the relaxation of some COVID restrictions.

The Chinese state appears to be in a bit of a dance right now talking very tough, promising to calm down hard on demonstrators while also showing

signs of relaxing some of the onerous COVID restrictions that have made people so angry.

(BEGIN VIDEOTAPE)

WATSON (voice over): China's police state strikes back, flooding the streets of Beijing and Shanghai with police, an unmistakable show of force

after a weekend of unprecedented protests in at least 15 cities across the country.

In the eastern city of Hangzhou Monday night, police arrest people in a central square. And an eyewitness tells CNN police searched people's phones

on the Shanghai subway, looking for apps that allow users to circumvent China's strict internet censorship.

The communist party's domestic security committee ordered officials to resolutely strike hard against infiltration and sabotage activities by

hostile forces, as well as criminal activities that destabilized social order. No compromise for peaceful protesters to voice their opinion.

Meanwhile, health officials striking a slightly softer tone, calling for a shorter lockdowns in the Chinese government campaign to eradicate COVID-19.

CHENG YOUQUAN, CHINESE CENTER FOR DISEASE CONTROL AND PREVENTION: We need to minimize the inconvenience to the general public because of the anti-

COVID-19 measures. As for the high-risk regions, we must have rigorous control. But at the same time, we should spare no efforts to provide

services to meet people's basic living needs and medical needs.

WATSON: A carrot and stick approach from different parts of the Chinese state after the biggest nationwide display of discontent in this tightly

controlled country has seen in a generation.

(END VIDEOTAPE)

WATSON (on camera): So, Rahel, Guangzhou recorded close to 7,000 COVID cases on Tuesday. That makes it a veritable hotbed of the virus by Chinese

standards. And yet the authorities today announced that they were lifting lockdowns from four of the city's districts and they were not going to send

close contacts of COVID cases to government quarantine.

[09:05:01]

That's another measure that is so difficult for the population.

Meanwhile, Beijing has announced that it's not going to impose as much COVID testing as it has. The people there have needed to get tests every 48

hours just to ride on public transport. Rahel?

SOLOMON: And, Ivan, in the meantime, we've also learned that former Chinese President Jiang Zemin has died. Internationally, he will perhaps be

remembered be best for his economic reforms. How else, Ivan, do you think he will be remembered?

WATSON: Well, he's 96 years old at passing today, dying from leukemia and multiple organ failure. He's already being lauded by the Chinese government

and the communist party, which has called him a, quote, great Marxist, and great proletarian revolutionary statesman, military strategist and

diplomat. And we can anticipate big state funeral for Jiang Zemin.

Online, there is a certain amount of nostalgia for this man who was president of China when it hosted the 2008 Olympics. He then ruled the

country as the top official of the communist party during a period when China was opening up more to the world, when the handover of Hong Kong --

the peaceful handover took place in 1997. He was president at that time.

And the difference between his time in office and today is pretty stark when China has quite literally been cut off from the outside world for some

three years due to COVID restrictions. It's almost impossible to get into the country from the outside. And there is perceived to be much less

freedom to discuss than there had been during his time. It felt perhaps a little bit more like China was growing more economically and life was

getting better and it feels today. Rahel?

SOLOMON: Very interesting. Ivan Watson, good to have you. Thank you.

Now, turning to the Qatar World Cup, Saudi Arabia set to clash with Mexico to qualify for the round of 16. Also today, Lionel Messi's Argentina must

win against Poland to secure its place in the next round. This as fans in the U.S. celebrating yesterday's big win against Iran.

Amanda Davies is live in Doha with more. So, Amanda, a lot on tap today but still plenty of reaction to that game yesterday. I watched it. And despite

Iran's best efforts, even into like the last minutes of the game, they just couldn't get it done.

AMANDA DAVIES, CNN WORLD SPORT: Yes. And this is the point we are at with this tournament now, Rahel. If I tell you a number of the Iranian players

already on an airplane back to Tehran with lots of questions are being asked about what this exit for their team means for the players and their

families. As you might remember, it was at this point yesterday we were talking about the threats that their families had received if the players

weren't going to behave, as the word that was used ahead of the match. So, those players are on a plane. Some have remained here.

But for the U.S., it is now all about building up to that round of 16 game against the Netherlands. You have seen from the pictures of the team

arriving back at their hotel in the early hours of morning. Just what this result means to Gregg Berhalter young and hungry side, and, absolutely,

they deserve to be celebrating this moment, a first U.S. place in the round of 16 since Brazil in 2014.

A lot of questions had been asked about how this young side, 25 out of 26 of them playing in a World Cup for the first time, we're going to cope with

the pressure on them at that match. They did it admirably. Up stepped Captain America, Christian Pulisic with a decisive goal.

The big question over the last 12 hours or so is, is he going to be fit to play in the next round? He was taken off the pitch straight to hospital

where he had some scans, examinations for what is being called a pelvic contusion.

There is good news though for U.S. fans. This is what their coach, Gregg Berhalter, told CNN This Morning a short while ago.

(BEGIN VIDEO CLIP)

GREGG BERHALTER, U.S. MEN'S NATIONAL SOCCER COACH: He seems to be doing good. I just spoke with him a couple minutes ago. And we are going to go on

the training field tomorrow. Hopefully, he will be ready for the game against the Netherlands.

But in terms of his contribution to the group, you know, I've said all along, when one of your most talented players is one of your hardest

workers, you know you're in a good spot then. And that' defines (ph) Christian.

DON LEMON, CNN ANCHOR: Well, how are you feeling right now?

BERHALTER: I feel good, you know? I think it's just about focus. Like we're not done. It's nice to get to the next round, but we want to keep

going. We had two tournaments that we were looking at, the group stage tournament and the knockout tournament. And we are now here in the

knockout. We just want to get this thing rolling.

(END VIDEO CLIP)

[09:10:00]

DAVIES: I'll tell you what, Rahel, there are a few other teams who are not yet. Lionel Messi's Argentina are up against Robert Lewandowski's Poland.

Argentina knowing it's a match they must win if they want to be heading through to the rounds of 16.

If you would have told people at the start of this tournament that we would be in this situation with Messi on the brink, not only of a tournament exit

but perhaps the end of his international career, people would not have believed you. But they suffered that shock defeat to Saudi Arabia.

And here we are with Saudi Arabia and their not small contingence of fans, many of whom are behind me here, very much wanting to make some history of

their own with -- if they beat Mexico, they will be the ones heading through to the round of 16 for the first time since 1994.

SOLOMON: Amanda Davies, good to have you. The World Cup has produced many surprises this year.

And just in, we are getting reports of an explosion at the Ukrainian embassy in Madrid. One person is said to be slightly hurt and in the

hospital. Spanish police are investigating. If we learn more, we will, of course, bring it to you at home.

Meanwhile, America's top diplomats say Vladimir Putin has focused his ire and fire on Ukrainian civilians. Russia has bombed more than a third of

Ukraine's electricity and water supply in just the past weeks. Secretary of State Anthony Blinken vowed ironclad support for Ukraine at a NATO meeting

in Romania. And NATO ministers are pledging more arms and more equipment to help Ukraine restore its damaged infrastructure.

(BEGIN VIDEO CLIP)

JENS STOLTENBERG, NATO SECRETARY GENERAL: Ukraine has made significant gains but we must not underestimate Russia. Russian missiles and drones

continue to strike Ukrainian cities, civilians and critical infrastructure. This is causing enormous human suffering as winter sets in.

(END VIDEO CLIP)

SOLOMON: And as that bitter winter sets in, Matthew Chance brings us extraordinary footage from the frontline in Eastern Ukraine.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: The brutal fight for Bakhmut, where Ukrainian troops are battling Russia's onslaught.

These exclusive images are from the soldiers themselves. The commanders tell us dozens of lives are now being sacrificed here every day.

The road into town is heavy with thick smoke and danger. Explosions ahead forced us to pull over for another slams into a building close by.

All right, well, you can hear the incoming rounds, the incoming rounds from Russian artillery fire are really intensive here as we have entered the

outskirts of Bakhmut, which is certainly from everything we're seeing, everything we've been told, is now the most fiercely contested patch of

ground in the entire Russia-Ukraine conflict.

So fierce, we made a rapid exit, leaving the relentless barrage behind.

Much of this battle is fought avoiding the artillery threat in underground bunkers, like these, where a local Ukrainian commanders, like Pavlov (ph),

can respond to Russian attacks.

They are assaulting our positions from early morning until night, he tells me. But the real problem is we are heavily outnumbered, he says.

But the innovative use of low-cost tech is helping to bridge that gap. In another frontline bunker, we saw how commercially available drones are

giving Ukraine an edge.

Wow, that's incredible because we've just seen an artillery strike in this position. The Ukrainian drone operators have identified as being full of

Russians. You see Russian soldiers, as we look at them live now, running for cover as Ukrainian artillery pounds their positions.

But battery commanders of the frontline, like Tuman (ph), tell me they are now running low on ammunition rounds, that even guns sent from the United

States are breaking under such constant strain. They need more of both, they say, if this battle for Bakhmut is ever to be won.

[09:15:00]

Matthew Chance, CNN, in Bakhmut, Eastern Ukraine.

(END VIDEOTAPE)

SOLOMON: Well, call it an inside look at the turmoil at Twitter, a former trust and safety executive who left the company just weeks ago sitting down

for an interview at a digital policy conference in Florida. The ex-employee delivering a searing indictment of Elon Musk's leadership.

Clare Duffy joins me. So, Clare, this an executive who not long ago said that twitter was safer with Elon Musk at the helm. Why the about-face? Did

he address it?

CLARE DUFFY, CNN BUSINESS TECH WRITER: Right. So, this is Yole Roth's first time. He is Twitter's former head of trust and safety. This is his

first time speaking out since leaving the company publicly. And so, you know, he did sort of address this about-face. He talked about the fact that

when Musk first took over the company, there was this trolling campaign. I'm sure everyone remembers the surge in hate speech on the platform. And

he talked about the fact that his team was able address that and build technology to take care of that problem. But it seems that things sort of

deteriorated from there.

And in the early days, Musk did seem to be trying to continue to appease Twitter's advertisers, which requires keeping the platform safe, so you

have to imagine that sort of played in. But Yoel Roth then talked about the fact that Muck launched this updated version of Twitter subscription

product, Twitter Blue. And the trust and safety team have predicted all of the problems that happened, impersonation of prominent accounts, he said

that they had told Musk that that was going to happen and that Musk decided to launch the product anyways. And that seemed to really sort of have been

the breaking point for him.

And he addressed this in an op-ed in The New York Times a couple of weeks ago when he talked about the future of Twitter under Musk, and he sort of

talked about the fact that Musk is going to be the chief decider, as chief twit at Twitter, Musk is going to be the person who is going to make these

decisions sort of regardless of the fact, regardless of the advice that he is receiving from the staff or whether or not these are good decisions.

SOLOMON: Well, I mean, I think that is certainly clear, Clare. I guess we will see as the weeks go on what that then looks like. Clare Duffy, good to

have you.

Let's turn to some health news now. An exciting development in the fight against Alzheimer's disease, data from a clinical trial show an

experimental drug appears to counteract the effects of the disease. It's one of the first treatments to slow the decline of brain function in

someone with Alzheimer's. But the trial also found some adverse effects were more common among people taking the drug.

Joining me now is CNN's Senior Medical Correspondent Elizabeth Cohen, wonderful to have you. So, how promising is this new drug, Elizabeth?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Rahel, no question, it's promising. But it is far from a cure. And there are some issues that

the doctors and patients are really going to have to talk about if this gets approved, and that is an if. This has not been approved yet.

So, let's take a look at what the study found when they looked at this drug. So, they took about 1,800 people who had mild, sort of early stage

Alzheimer's disease, ages 50 to 90. Split them in half, half of them got a placebo, half of them got the real drug. After 18 months -- so, it took a

while for this to kick in. After 18 months, those who were taking the drug saw a 27 percent decline in -- a slower cognitive decline, I should say. In

other words, there was still cognitive decline but it was 27 percent lower or slower than those who got the placebo.

Also, their amyloid levels dropped. So, amyloid levels are -- amyloid is that plaque that gets in the brain of people with Alzheimer's.

Now, here is the question. Are those improvements -- and there is no question that those are improvements. Are those improvements enough to

really make the difference for someone with Alzheimer's? Will they feel those improvements? Will it make a difference in their daily lives? And you

have to weigh that against the potential downsides.

And here are the potential downsides. They did find some adverse effects. So, what they found was that folks who were taking the drug, 17 percent of

them had brain bleeding and 12 percent had brain swelling. Now, folks who got the placebo also had those two things, but it was a much, much lower

percentage.

So, this is going to be something that the FDA will have to consider when they review this drug. It's expected that the FDA could be issuing some

kind of decision within weeks. But on the other hand, in this study published in the New England Journal of Medicine, the author said that

longer studies need to be done. So unclear if the FDA is going to say, hey, you know what, guys, we're not ready to make a decision on this yet, or if

they will make a decision soon. Rahel?

SOLOMON: Well, Elizabeth, I think we can all relate to knowing someone with Alzheimer's and there still seems to be so little out there to help

them. If this doesn't turn out to be the answer, are there more potential solutions in the pipeline?

COHEN: So, there is so little out there, Rahel. You are absolutely right. A drug did come out last year. It was the first drug in about 20 years, the

first novel treatment for Alzheimer's disease. And it has been, well, for some have said, a bit disappointing.

[09:20:02]

It is not nearly used as much as one might think. There have been some problems with it.

And so for that reason, it's unclear exactly what these new drugs will bring. There are hundreds of drugs being studied for Alzheimer's disease.

They are in the pipeline at various stages. We will see what they do and what kind of side effects they might have.

SOLOMON: A lot of people watching that. Senior Medical Correspondent Elizabeth Cohen, wonderful to have you, thank you.

Straight ahead, a slowing pace for the Fed raising rates, investors are waiting to hear from Jerome Powell for hints on the central bank's next

move. I will discuss with Invesco's chief strategist after the break.

And later, too fast, too furious and too dirty. Lamborghini's CEO will hop on the passenger seat with the dirt on its new all-terrain super car. Yes,

you heard that right. We will explain. Stay with us.

(COMMERCIAL BREAK)

SOLOMON: Welcome back to First Move. And as we mentioned at the top of the show, an updated estimate of third quarter growth for the U.S. show the

economy grew a strong 2.9 percent. That rebound is good news for investors after two straight quarters of negative growth.

Investors are now bracing for a speech from Federal Reserve Chairman Jay Powell later today. We will be listening carefully on any clues on the pace

of future interest rate hikes.

Joining me now is Kristina Hooper. She is the chief global strategist at Invesco. Kristina, wonderful to have you.

So, as you know, anytime Chairman Powell speaks, there is a reading of the tea leaves. What are you going to be listening for?

KRISTINA HOOPER, CHIEF GLOBAL STRATEGIST, INVESCO: Well, actually, Rahel, I might surprise you by saying I'm not too concerned with what Jay Powell

is going to say today. We have a few weeks until the FOMC meeting. And so while I think he's going to be measured, I think he's going to be balanced,

I'm not sure he's going to reveal a lot at this meeting.

Keep in mind that he is waiting for trends to form, right? We certainly got a good inflation reading. But that needs to be supported by other data. And

so I suspect that he's going to be guarded.

Clearly, it seems that the Fed is only going to hike rates 50 basis points in December, but I don't think the Fed has much visibility beyond that. The

big question on everyone's mind is when are they going to hit the pause button, and I just don't think he's going to reveal that today because he

doesn't know.

[09:25:03]

SOLOMON: I mean, that's fair, right? I mean, on the one hand, you could say Jay Powell has mastered the art of Fed speak, which is saying a lot of

things but not really saying much at all. And on the other hand, you could say that the data just isn't there yet. I mean, they talk often about being

data-dependent.

Kristina, the last USCPI report, which you just alluded to there, was promising for investors, right? It showed it slowing certainly more than

expected. We also got some new data in the Euro zone that inflation has fallen for the first time in more than a year. Have we reached a turning

point in global inflation?

HOOPER: I do believe we have. And so that means that we are likely to get good news from central banks going forward. But that's a big if in terms of

how data plays out from here. Because you could have a big COVID wave that could disrupt supply chains, that could add to some inflationary pressures,

you could have some issues that present potholes on the journey. But I do believe we are moving in the right direction. It's just how quickly we are

moving in the right direction and are central banks satisfied?

They are certainly satisfied enough to downsize rate hikes but I don't think they are satisfied enough to hit the pause button just yet.

SOLOMON: Clear enough. And investors, I think, will certainly take the downsize when they can get it.

Kristina, we get quite a bit of data on the economic front in the U.S. this week. We get JOLTS data later this week, we get the, of course, all-

important jobs report. In this environment where sometimes it feels like good news is bad news and bad news is good news, what would a promising

economic report look like on Friday? Would it be slower job growth maybe in the 100s, in the low 200s? What are you going to be looking for?

HOOPER: Actually, Rahel, I'm going to be focused on wage growth because that really is the sticky part of inflation. That's been problematic thus

far, although we did see an easing in the most recent jobs report. So, I want to see a continuation of that trend. And I suspect that that is going

to be the biggest focus for FOMC members as well.

We don't need to drive up unemployment that much if we can exert some downward pressure on wage growth. Keep in mind there are a lot of job

openings. So, even if companies slash job openings as opposed to, for example, laying off many workers, we could achieve the same results. So, to

me, the most important single component of the jobs report on Friday is going to be wage growth.

SOLOMON: And I think to your point, I mean, that is certainly something that Powell has said that he is trying to accomplish. And we will learn

more about that, right, when we get the JOLTs report, I mean, how many job vacancies are starting to decline. I think Powell would certainly like to

see that.

Speaking of data, we got the GDP report today, the second estimate that showed it was an upward revision. But what got my attention was because it

was an upward revision largely because of consumer spending. And, of course, we are just coming off of black Friday, we're coming off of Cyber

Monday, where the consumer just continues to spend.

On the one hand, it is a sign perhaps of consumer strength. On the other hand, is this what Powell and the Fed wants to see right now as just

continuing to spend at all costs even with inflation at what it is right now?

HOOPER: Well, it is certainly not ideal. But Powell is going to focus on inflationary pressures. And we have seen goods prices by and large ease.

And that is not the main concern. So, if there is a way that we could see a soft or soft-ish landing, we would likely see the consumer remaining

relatively strong, especially since we have such a tight labor market. If some of those other pressures would ease, I think the Fed would be

satisfied. They're not just going to be looking at inflation.

They're not just going to be looking at inflation, though, they're going to be looking at expectations, particularly consumer inflation expectations.

So, I think that's going to be part of the equation as well.

SOLOMON: And I think if -- and correct me if I'm wrong, but consumer inflation expectations have remained pretty well anchored as of now. So,

here is hoping on the inflation front. They've remained that way.

Kristina, one thing that I think about a lot is the last time we heard from Powell, he made some comments that seem to indicate that the committee is

aware that the full impact of these rate hikes probably has not been felt or has not then seen in the economy, in a sense, an acknowledgment that

they know that there is a risk of overdoing it. What are they going to be looking at? What data are they going to be looking at to see are they

actually doing too much?

HOOPER: Well, I think you are absolutely right, Rahel. That is an important, important realization that there tends to be a lag. And so what

the fed is going to do in response is to essentially downsize their rate hikes and perhaps wait a little longer in between rate hikes.

So, they are going to look at all the data. They want to look holistically at the economy to see if they have created a lot of economic damage. I

don't think there's one particular data points that is going to be very important over some others.

[09:30:01]

I think it's getting a picture of the economy.

So, the best way to do that is to allowing a little time for the economy to digest the rate hikes we have had, and, of course, as I said, downsize rate

hikes going forward.

So, it could be that we get to our pause early in the first quarter or perhaps by the end of the first quarter. And that certainly would be enough

time for the Fed to assess what is happening and be comfortable with the inflation picture even if the economy has not gone into any kind of

significant downturn.

RAHEL SOLOMON, CNN ANCHOR: Essentially, a wait and see, a breather. Let's just let this play out, let's see how this is actually being felt in the

real economy.

HOOPER: Absolutely. I mean, it's critical that the fed do that. There has just been an enormous, synchronized tightening cycle this year, and we just

don't know how much damage it's done to the global economy or the U.S. economy. It looks like the U.S. economy has held up better than other

economies, but we just don't know until we give it some time.

SOLOMON: Kristina Hooper, wonderful to have you today. She is a chief global market strategist at Invesco. I appreciate your insights.

And coming up, former Chinese Leader Jiang Zemin has died. How will he be remembered, next.

(COMMERCIAL BREAK)

SOLOMON: Welcome back to First Move. U.S. stocks up and running this Wednesday. The last trading day of November mostly flat open pretty much

across the averages. The Nasdaq, the biggest gainer there, three-tenths of 1 percent. It's really a reflection though of how much is riding on Fed

Chair Jerome Powell's policy speech later today.

Stocks barely budging after a stronger than expected read on third quarter GDP. That report was good news for the U.S. economy. That said, a separate

report suggesting today that private sector hiring in the U.S. is slowing, firms adding only 127,000 new positions this month.

[09:35:00]

For context, Wall Street was looking for growth of almost 200,000.

Now, despite today's tepid action, November is actually turning out to be a profitable month for all of the major averages. The Dow coming into today's

session up more than 3 percent. The Nasdaq set in the month, pretty much flat, but the S&P is up about 2 percent on the month. I think investors

will take it at this points.

Apple, though, one of the tech sector's worst performance, off some 8 percent for the month, much of that due to concern over slowing iPhone

production in China during lockdowns.

And Elon Musk's recent tweet storm targeting Tim Cook, well, that's not helping sentiment either, Apple falling once again today for a third

session, trading at about 141 a share.

And turning now to one of our top stories, former Chinese Leader Jiang Zemin has died at the age of 96. He left the country after the 1989

Tiananmen Square protests, paving the way for China's rise as an economic power.

Kristie Lu Stout has a look at his life and legacy.

(BEGIN VIDEOTAPE)

KRISTIE LU STOUT, CNN CORRESPONDENT (voice over): He was the communist hardliner with a softer side. Jiang Zemin was also a shrewd and cunning

politician. He rose to the pinnacle of power after the massacre of pro- democracy demonstrators in Tiananmen Square in 1989. He didn't order the crackdown but was handpicked by the man who did, Supreme Leader Deng

Xiaoping.

A year after the bloodshed, Jiang Zemin told America's ABC News it was, quote, much ado about nothing. At first, he was written off by most as a

political lightweight who wouldn't last. He was known as the flowerpot, lots of decoration and no action, but history would prove them wrong.

DAVID SHAMBAUGH, GEORGE WASHINGTON UNIVERSITY: Jiang Zemin has had many more successes than failures. And he surprised many people with his staying

power.

STOUT: As leader, he courted the military and was determined to keep the communists in power while pushing ahead with economic reforms.

WENRAN JIANG, ALBERTA UNIVERSITY: He is definitely not going to be remembered as China's Gorbachev. He's not even close.

STOUT: On an official U.S. visit in 1997, Jiang was lauded by Wall Street and chastised by President Bill Clinton over human rights.

BILL CLINTON, FORMER U.S. PRESIDENT: On this issue, we believe the policy of the government is on the wrong side of history.

STOUT: But he never gave ground on political reforms and explained why during a rare interview with CNN.

JIANG ZEMIN, FORMER CHINESE PRESIDENT: I do think that to require all countries to adopt the same model of democracy would itself be

undemocratic.

STOUT: He was leader one Hong Kong was handed back to the mainland when Beijing was awarded the Olympics and business people were allowed to become

communists. In 2003, he retired as president. A year after, that he gave up his last post as China's military commander, completing the first smooth

leadership transition ever in communist China.

I want to thank you for accepting my resignation, he said at the time. Jiang still exerted political influence behind the scenes for years,

including the selection of current Chinese Leader Xi Jinping, who secured a norm-busting third term as party head.

Xi, China's most powerful leader in decades, has eviscerated political rivals, including those in Jiang's faction, and rollback much of the

economic and personal freedoms enjoyed during the Jiang era. In retirement, Jiang reportedly saying an aria at Beijing's National Grand Theater before

it was officially opened. For a man who once ruled more than a billion people, the performance was set to be the fulfillment of a lifetime

ambition.

(END VIDEOTAPE)

SOLOMON: And the impact of China's zero-COVID strategy is a major talking point at the World Travel and Tourism Council Summit, which is taking place

in Saudi Arabia. The meeting is also a huge opportunity for the host country to showcase its trillion dollar investment plan.

Richard Quest sat down with the CEO of Saudi Tourism Authority and asked him about the kingdom's new airport and upcoming so-called giga projects.

(BEGIN VIDEOTAPE)

FAHD HAMIDADDIN, CEO, SAUDI TOURISM AUTHORITY: I think this is a regional play. Whatever Saudi is doing is not just doing it for its own country,

within its political borders. The spillover at the region level is what we believe the opportunity lies, and it's our responsibility to make sure that

the good of tourism serves the whole region.

RICHARD QUEST, CNN BUSINESS EDITOR-AT-LARGE: So, you have all these projects, the giga projects, as they're called, what's happening with them,

besides large sums of money? Have you actually done anything yet?

HAMIDADDIN: You, however, were with us last night at the (INAUDIBLE) and you saw the first maybe 3 percent of the total development off that giga

project. And I will leave the judgment of how charming and beautiful it is to you. But right in the first quarter of next year, we are going to see

the Red Sea project also opening its doors with three resorts.

QUEST: The big question is, if and when alcohol is going to be allowed to be served in all these uber luxury resorts that you're building, because if

you are going to try to attract the western American visitor, they would like a drink with dinner.

HAMIDADDIN: It's a speculation. We have different scenarios. We'll wait and see.

QUEST: You're not going to tell me?

HAMIDADDIN: I've already told you, this is -- you've asked me this question before, and we still believe that there is a lot to offer in Saudi

without alcohol.

(END VIDEOTAPE)

SOLOMON: So, I guess he did not tell Richard Quest.

And coming up, hugs and high fives in space, Chinese astronauts taking the brand-new space station out for a spin. The latest on a historic day in

orbit, coming up next.

(COMMERCIAL BREAK)

SOLOMON: Welcome back. And you can call it a highflying, house warming party. Hundreds of miles above the earth, a team of astronauts docking at

China's almost complete space station today to help finish construction. It is beginning of China's long-term presence in space.

So, let's bring in Kristin Fisher. So, Kristin, when we say, long-term, as I understand it, it's six months. Help me understand the significance of

this.

KRISTIN FISHER, CNN SPACE AND DEFENSE CORRESPONDENT: Well, this is a big deal, because up until this point, only the United States and its partners

at the International Space Station have been able to have a continuous human presence in lower Earth orbit. That's the orbit right around the

Earth. And it's something that is not only incredibly technically complicated to pull off but it's also very expensive as well.

And so that has only been done by the United States and its partners up at the ISS until yesterday. That all changed yesterday when China launch that

rocket, the Shenzou rocket that you see there, and sent three new astronauts, or taikonauts, as they're called in China, to its new space

station.

And what was really significant about that moment is the crew changeover, or the change of command, so to speak, that new crew going to be replacing

the crew that is up there. And that is really the most significant moment here, because there are now going to be Chinese taikonauts living and

working in space continuously at the same time as you have NASA astronauts and Russian cosmonauts and European Space Agency astronauts working at

their own space station.

[09:45:01]

And so this is a big moment because it really solidifies China's stance as a dominant space power, one that truly rivals the United States in space.

And you know, Rahel, this is really going to be helping China have the training that it needs to do what it really wants to do, which is to land

taikonauts on the south pole of the moon, which is where you might find water in the form of ice down the south pole of the moon, two things very

critical to build a lunar base and even potentially rocket fuel someday.

And it has some real geopolitical implications as well, because we've seen and we've talked so much about NASA's new Artemis program, it is ultimately

aiming to do the exact same thing, land astronauts on the south pole of the moon and build a base there. So, you can see why NASA administrator Bill

Nelson has been saying repeatedly over the last few weeks and months that he believes that the U.S. is indeed in a second space race, only this time,

with China. Rahel?

SOLOMON: Okay. Kristin Fisher, we will leave it there. Thank you.

And coming up after the break, cover your ears, a new Lamborghini is coming, and this one can go where normal super cars cannot, right after the

break.

(COMMERCIAL BREAK)

SOLOMON: And you cannot mistake that engine sound, but what you're seeing might surprise you. This is the same looking super car is Lamborghini's

first all-wheel drive, and they actually encourage you to take it off road.

Now, it might be hard to traverse a desert, but the Huracan Sterrato can be driven on dirt roads. That's pretty much the same as an average street here

in Manhattan. And as this publicity video shows, it can be used to cut corners on the racetrack. This limited edition model will be the last pure

combustion engine Lamborghini to be released, as the company transitions to hybrid.

Stephan Winkelmann is the CEO. Stephan, wonderful to have you today. So, lots to discuss. So, it's the last with a pure combustion engine, but the

first sports car that's essentially an ATV. When I think of Lambo sports cars, I think pretty low to the ground. How did you do both, both low to

the ground and an ATV? Help me understand that.

STEPHAN WINKELMANN, CEO, LAMBORGHINI: It's unexpected. It's a car, as you said, now which is able to run race track and it is all-terrain, so it has

more ground clearance than the other Huracans. It is a car which is combining the fun to drive on street (INAUDIBLE) roads and also the

opportunity to go outside, those type of concrete roads. So, as our (INAUDIBLE) said, beyond the concrete. And then, for sure, it's also a lot

of lifestyle (ph).

And I've driven the car several times. It's I think the car which gives you fun and pleasure, a pure and all-type of terrains, and this is very, very

positive for the brand.

[09:50:08]

And I think here we are again, unexpected and authentic as Lamborghini.

SOLOMON: Unexpected for sure. So, walk me through -- who are you trying to attract? Who is the ideal customer for this type of model?

WINKELMANN: You know that we have three models. We have to V-12, we have the V-10, which is the Huracan, and then we have an SUV. It's clear that we

have a very young customer base, and we are attracting a lot of customers with this car, which really enjoy, let's say, the drifting and the fun of

driving a car which has the look of a super sports car, but it's able to do all sorts of different things. And this is something that we know and we

are presenting the car live tonight at the Art Basel in Miami. And we are limiting the number and a good part of them have already sold without

looking at the car, just by seeing the teasers.

SOLOMON: I noticed that limiting production to just about 1500.

Stephan, certainly, when you think Lambo, you think fun, as you just pointed. But as the company shifts to electrification -- and, look you

haven't always been the biggest fan of electrification. I mean, you have said before that one of the challenges, perceive performance and sound and

how that impacts the brand. You're clearly embracing it now. But how do you maintain the core Lambo audience but shift to electrification?

WINKELMANN: I step, I think, is already prepared from our side in '23 and '24. We are going to hybridize all of our lineup. So, we will stay with

internal combustion engines. We will have a complete UV-12 when the following of the event, although it is coming on the market next year. And

then in '24, with the hybridization of Urus and the complete new Huracan at the end of '24, we will accomplish what we promised.

So, it is very easy. On the one hand, though, we have more sustainable car. In fact, we are going to reduce the Co2 emissions by 20 -- or stating from

'25 in comparisons up today by 50 percent. And the promise we have to give to the customers, and this is something we will keep, is the fact that

these cars are going to be more performing than the ones we have today. And the sound will stay.

Then by the end of this decade, we will have the first full electric car, and for sure, here, in my opinion, the fun to drive will be there, the

design will be very appealing as a true Lamborghini. And we are working also lot on not only the longitude and acceleration but what you call

lateral acceleration, so how you get into the corners, out of the coroner's corners, so handling and, let's say, the opportunity to go also on roun

tracks, on race tracks. And I think this is something -- please go ahead.

SOLOMON: Well, I wanted to actually follow up on that. So, by 2028, I think, as you pointed out, Lamborghini will be fully electric. So, I take

your point that the performance aspects will be improved and fine-tuned. What about the sound when Lamborghinis are fully electric? Will you still

be able to create that classic Lamborghini sound?

WINKELMANN: So, the sound will be different, for sure. We have to decide. This is something which we are working on, the different opportunities, for

sure. The first full electric car, which is coming in '28, will be an additional model, model number 4, which will be the first one. It will be

more a GT (ph) car, so daily useable car, 2x2 with more luggage compartment. And then, the super sports cars, they will be at the beginning

of the 30s. And I think, with the upcoming technology, and also all the things we have in mind, we will have also a new generation of car drivers,

which will embrace this much easier.

On, the sound, as you said, this is something which you cannot fake. So, we have to find a different way, which will not be the sound of an internal

engine, for sure.

SOLOMON: Well, Stephan, I think one thing that might surprise viewers at home is that Lamborghini, and correct me if I'm wrong, posted its best

nine-month performance in its history, even with inflation, even with rising interest rates. I mean, how is the company still being able to post

this type of growth? I mean, where are you seeing the strongest growth?

WINKELMANN: The strongest growth is not in one particular market, because our older bank is lasting more than 18 months right now. So, we have our

sales increased by 8 percent in comparison to last year, but our turnover is increasing by 38 percent, and the profits even more, almost 70 percent,

which is then, in fact, the thing that matters most.

[09:55:01]

And this means that we are making out -- we are making more profit out of each and every car because the people are buying at high rates. So, the

ones which are more performing, more expensive, and they put more options, more individualization into their cars.

And as we speak, we are still selling more cars every month that we are able to produce and deliver. I think this is due to the fact that the brand

is very loved by all over the world. We have an incredible customer base, but also a huge fan base, which is very large also on social media. So,

despite, I don't know, increasing of interest rates and all the things that you were naming before, we are still going strong, and we are very cautious

in our planning. So, we are not trying to reach for some peaks because our business is about the audience, about its mobility, it's about fulfilling

dreams, and, therefore, it is very important to keep it safe.

SOLOMON: Well, look, clearly, very strong, as you said, with a waitlist of 18 months there. Stephan Winklemann, CEO of Lamborghini, I'm sure a lot of

car companies would love to have that same problem.

And that is it for the show. I'm Rahel Solomon. Thanks for watching.

Connect the World with Becky Anderson is next.

(COMMERCIAL BREAK)

[10:00:00]

END