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First Move with Julia Chatterley
U.S. Stocks Set To Rise After Encouraging Inflation Data; China Loosens Some COVID Rules Following Mass Protests; FTX Founder Says He Never Intended To Commit Fraud; Biden Welcomes Macron To The White House; Powell Says Fed Set To Ease Up On Rate Hikes. Aired 9-10a ET
Aired December 01, 2022 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RAHEL SOLOMON, CNN ANCHOR: Hello and welcome to First Move. Great to have you with us this Thursday. Lots to get to today, including Jay Powell hints
at a Fed reset. Sam Bankman-Fried has a lot of regret. And in Washington, D.C., a transatlantic tat-tat-tat (ph). French President Emmanuel Macron is
set to arrive at the White House at this hour. You're taking a look at live pictures there as part of his three-day state visit to the U.S.
President Macron and Biden ready to discuss funding for the war in Ukraine, the global energy crisis, as well as French concerns over U.S. subsidies to
the green energy sector. The very latest on today's talks and tonight's state dinner in just a moment.
But first, U.S. stock futures and European shares are on the rise. That's after a softer than expected read on U.S. inflation and a solid look at
U.S. consumer spending. All this after that big rally Wednesday that saw the Nasdaq and the S&P soar more than 3 percent. The Dow, in fact, entering
a new bull market. Yes, I said bull market. Up 20 percent from recent lows.
Stocks spiked Wednesday after Fed Chairman Jerome Powell hinted at less aggressive Fed rate hikes, saying that central bankers are aware of the
dangers of tightening too far, too fast. And Powell's speech helping propel Asian stocks as well. The Hang Seng rising three quarters of a percent
after finishing out its best month since 2003. That's on Chinese reopening hopes. More on that in just a moment.
But first, U.S. President Joe Biden welcoming French President Emmanuel Macron at the White House. They will hold a briefing with reporters in just
a few hours after they've sat down for talks. Later, the French leader will be honored with the first state dinner since President Biden took office.
Joining me now is Sophie Pedder, she is the Paris Bureau Chief of the Economist. Sophie, wonderful to have you. How significant is this trip? As
I said, it is the first full state visit that Biden has hosted. So how significant is it that he's hosting France?
SOPHIE PEDDER, PARIS BUREAU CHIEF, THE ECONOMIST: Well, I think it's an incredible honor for France, and the French are very much treating it as a
sort of confirmation of the friendship that the two countries have. They consider each other oldest allies. And it's also the second state visit
that Emmanuel Macron has made to the U.S. He was in there in 2018 under Donald Trump and that makes him the very first French president to have two
state visits. So I think it's an incredibly important, you know, tribute to his country's friendship with America but also to his leadership within
SOLOMON: So certainly holds some symbolic value. Do you think either side walks away from this with any deliverables? I mean, what are the priorities
here, do you think certainly for France, but also maybe for President Biden, in the U.S.?
PEDDER: Well, I think there are two things going on here. The first of them is that there is a concern on both sides of the Atlantic that Europe
remains unified and solid, especially during this winter period in terms of supporting Ukraine and holding solid and strong against Russian aggression.
So that is really important for both sides.
Europe knows very much it depends on America for the support that America has given to Ukraine during this war. But the Americans are also very
concerned that Europe pulls its weight. So that continuing that unity is important (technical difficulty) this is where it comes from the French
side, is the concerns that European (technical difficulty) America's support to its green industries.
And that's where Europe feels that its own industries are really going to suffer from, if they aren't already. And it's fine with soaring energy
prices in Europe. It's a very difficult subject for European. So that is going to be the sort of the (technical difficulty) tricky subject on the
table from Macron -- President Macron (technical difficulty).
SOLOMON: Lots of thorny issues, as you point out. And Sophie, one thing that caught my attention is that Macron is traveling with quite an
entourage, includes ministers of defense, finance, as well as business leaders. What does that signal to you in terms of the range of topics that
Macron perhaps hopes to broaden or perhaps to further?
PEDDER: It's a really interesting point. I mean, if you look at the -- we've got -- there are two astronauts, two French astronauts traveling with
him. There have been -- there are authors, there are, you know, cultural representatives, business ManTech representative, finance, a really broad
range. And I think, again, it's a reflection of this sort of breadth of the relationship across the Atlantic.
And I think what Macron is also trying to tell those French representatives who work on transatlantic issues, you know, to sort of -- they're
representing France abroad at the same time. You know, France has always this sort of anxieties about making sure that its voice is heard in the
world and the French way of life, French sub warfare.
You saw President Macron with his baguette yesterday. He's very keen to promote every element of the French way of life. And I think it was -- is
therefore important for him to go beyond the political symbolism of this and to remind America and the French traveling with him, that there are all
these economic ties, business ties, tech ties, cultural ties that make the relationship between France and America very important on a much broader
SOLOMON: Absolutely. It's a great point, Sophie. Lots of ties and certainly a lot to discuss for the two leaders and a lot to discuss later on in the
show. So we'll bring you back just as soon as we hear from either leader.
Sophie Pedder, Paris Bureau Chief of the Economist, thank you. We'll check back with you soon.
Let's head to China now, where China is relaxing some COVID rules with one official calling for a human centered approach to the virus. It follows
days of nationwide protests.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: (Speaking Foreign Language)
(END VIDEO CLIP)
SOLOMON: So this man shouting unsealed as workers remove barricades on the streets there. Lockdowns in several parts of the city have been lifted,
along with districtwide mass testing. In Shanghai, where a lot of the video has emerged of protesters clashing with police, while health authorities
there lifted lockdowns across eleven districts. Not every city is easing up, though, and some authorities are sticking with the zero-COVID policy.
Ivan Watson joins me now. Ivan, wonderful to have you. So look, these comments seem to suggest perhaps a relaxing of zero-COVID. I mean, is that
your take? Is this the beginning of a new strategy?
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Some kind of a shift and we don't know where the end result is going to be. I mean, Chinese
authorities have made fun of the west directly mocked, for example, the U.S. approach to COVID calling it the live flat policy that they say
resulted in the deaths of a million people. And they insist that theirs is better.
The video that you just showed of the man kind of yelling, hey, the lockdown has ended in Guangzhou, that's from Wednesday. It's all the more
striking when you consider that Tuesday night in Guangzhou. You had riot police in hazmat suits clashing with residents, firing tear gas, people who
were so angry about the lockdowns. And then the very next day, that city lifts some of the city's lockdowns hearing some lockdowns lifted in
And then this statement coming from a top Chinese government official the Vice Premier saying, quote, "With the decreasing toxicity of the Omicron
variant, the increasing vaccination rate and the accumulating experience of outbreak control and prevention, China's pandemic containment faces a new
stage and mission." And she made no mention whatsoever of zero-COVID.
Let's take this all with a grain of salt, though. While some relaxation has taken place, as of Thursday, there were thousands of buildings and
residential communities across 32 cities in China that still remain under strict lockdown. Rahel?
SOLOMON: So fascinating, Ivan. So we know these protests have taken place across 17 cities. When I look at the protests, I see a lot of young faces.
I mean, what's the status of these protests now? I mean, what can you tell us?
WATSON: It's kind of hit or missed because the police state has come into force to censor, to intimidate and try to pretend like this never really
happened. There's been no official mention of this. Instead, we have very substantial coverage of the death of a former Chinese leader who passed
away on Wednesday, that is Jiang Zemin, 96 years old, dying of leukemia.
And instead of images of the protests in Shanghai over the weekend, we see the city's streets lined with mourners, watching the body of Jiang Zemin
taken through that city and then flown to Beijing, where he was met by none other than the current leader of China, Xi Jinping. And all the more
fascinating here that Jiang Zemin is shown in an open casket wearing his kind of trademark heavy spectacles as well.
Now the Chinese government is declaring him kind of a hero of Marxism, an important, of course, leader of the Communist Party. And we have seen some
outpourings of people laying flowers in his honor. What's interesting online, and the Chinese internet is always very heavily censored, is that
you're hearing a bit of nostalgia about Jiang Zemin, who led the country in the '90s and the early aughts with some people making the point that China
felt freer then, more open to the outside world than it does today when it's virtually impossible for outsiders to visit China because of the COVID
SOLOMON: That's a very interesting point, Ivan, just in terms of the comparisons between life in China now versus then. Good to have you, Ivan
SBF, Sam Bankman-Fried, of course, speaking out for the first time since the stunning collapse of FTX. Ex-billionaire Sam Bankman-Fried told the New
York Times that he was shocked when the $32 billion company plunged into bankruptcy in less than a week. He also maintained that he never intended
to commit fraud.
CNN's Chief Business Correspondent Christine Romans with me now. So Christine, did SBF mentioned anything about why he's talking? Because it
raised a lot of eyebrows that he would be talking in this forum when not only is it so soon after the collapse, but also he's being investigated by
federal prosecutors. It's very curious.
CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: And talking again today to ABC News, talking a lot against the advice he says of his own attorneys.
And what he is saying paints a picture really of a crypto empire with no regulation, no oversight, no CFO, and at times, the founder seems to have
no clue. Listen.
SAMUEL BANKMAN-FRIED, FTX FOUNDER AND EX CEO: I mean, look, I've had a bad month.
CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT (voice-over): Disgraced FTX Founder and ex-CEO Sam Bankman-Fried speaking out on camera for the
first time since he resigned after the implosion of his multibillion-dollar empire.
BANKMAN-FRIED: I'm down to, I think, I have one working credit card left. I think it might be $100,000 or something like that.
ROMANS (voice-over): Bankman-Fried, who was known as crypto's white knight, sitting for a wide-ranging interview at the New York Times DealBook Summit,
speaking about FTX's liquidity crisis and bankruptcy filing.
BANKMAN-FRIED: I didn't ever try to commit fraud on anyone.
ROMANS (voice-over): The collapse of FTX is under civil and federal investigations into whether FTX misappropriated customers funds when it
made loans to his hedge fund, Alameda Research. Bankman-Fried addressing this.
BANKMAN-FRIED: I ain't knowingly commingle funds. I was frankly surprised by how big Alameda's position was.
ROMANS (voice-over): Bankman-Fried now acknowledging the lack of corporate controls and risk management within the businesses he oversaw.
BANKMAN-FRIED: Look, I screwed up. Like, I was CEO, I was the CEO of FTX. And, I mean, I'd say this again and again that, that means I had a
responsibility. That means that I was responsible ultimately. There was no person who is chiefly in charge of positional risk of customers on FTX. And
that feels pretty embarrassing in retrospect.
ROMANS (voice-over): FTX, which was once marketed as an easy way for people to get into crypto, using star athletes like Tom Brady, Naomi Osaka and
Steph Curry, and even a Super Bowl ad with Larry David to amplify the platform.
UNIDENTIFIED MALE: Edison, can I be honest with you?
UNIDENTIFIED MALE: It stinks.
ROMANS (voice-over): Now its customers don't know how much, if anything, they'll be able to get back.
ROMANS: That's right, Rahel. Where is the money and why is he talking so much? He just did a lengthy interview with ABC News where he was asked, do
you think you're like Bernie Madoff, the famous Ponzi scheme scammer of the early 2000s? He said, no, Bernie Madoff didn't actually own anything or
trade anything. He said he had real crypto, real assets there. Where are they? Remains to be seen.
SOLOMON: Yes, a lot of people would like to know that. Christine, can I ask what's the reaction been to these comments? I mean, it's the first time
we're really hearing him speak. Of course, he tweeted, and that was sort of picked up in magazines, but this is the first time we're really hearing him
speak. What's the reaction to this been like?
ROMANS: Well, you heard that sort of nervous laughter in the DealBook crowd yesterday when he said he's had a really bad month. And I think that it's
coming off as pretty tone deaf overall, because, again, this was meant to be a platform for regular people to get their slice of crypto, where, until
now, you know, the savvy and the first movers were the ones who really made the money.
And so I think it's pretty tone deaf when there are investors who are complaining that they have lost all their money, that they put their real
money, real retirement money under his purview, and they have no idea if they're going to get it back, how much they're going to get back, if any at
all. So it's really -- he keeps talking. He keeps talking. And I'm sure his lawyers don't want him to be talking here. There are multiple
investigations into this.
SOLOMON: Yes, I'm sure his lawyers wish he just never opened his mouth to begin with. Christine, one last question. Andrew Ross Sorkin, the host from
The New York Times asked SBF, why is he still in the Bahamas? Did he have a good answer to that? What did he say?
ROMANS: You know, he's there. He says he's trying to be available for investigators and for the process here so that they can maybe try to get
the money back. I mean, it seems to be that he's trying to be available for whatever the next steps here. Although he is no longer the CEO and he is
under investigation here himself.
George Stephanopoulos said to him, you know, are you ready to go to jail? You could go to jail for a very long time, and he wouldn't answer that
question. Actually, that question, the interview he did this morning really kind of, you know, really kind of tripped him up a little bit here because
there are those who say there is an investigation into a massive fraud here, not just mismanagement, but a massive potential fraud here.
SOLOMON: Christine Romans, great to have you. Thanks for breaking it all down.
ROMANS: Nice to see you.
SOLOMON: And stay with First Move. Just after the break, we expect to hear from French President Emmanuel Macron as part of his state visit to the
White House. Stay with us.
SOLOMON: And we want to take you live now to the White House where U.S. President Joe Biden is welcoming French President Emmanuel Macron. Sophie
Pedder is the Paris Bureau Chief of the Economist. She is back with us as we look at these live pictures where we are also expected to see French
President Emmanuel Macron, his wife, I believe.
Secretary of State Antony Blinken has been seen, U.S. Vice President Kamala Harris has been seen as well as her husband. It's all the pomp and
circumstance, of course, of a state visit. It is President Biden's first state visit of his presidency. We are looking at the South Lawn where it's
about 09:18 a. m. Eastern time.
You can see the American flag there gently waving in the background. So it looks like it is a windy Thursday morning at the White House. But just as
soon as we hear from the President or French President Macron, we will bring that to you live.
In the meantime, I want to welcome in Sophie, Paris, Bureau Chief of the Economist. Sophie, do I have you?
PEDDER: Yes, I'm on the line.
SOLOMON: So, it looks like actually Emmanuel Macron, the French President, is arriving as we speak. So let's wait to see this. This is, of course, a
relationship that is very strong, as Sophie mentioned earlier, a relationship oldest allies, but also has been thorny at times. And so lots
to discuss for the two leaders.
Ukraine, of course, China, of course, some more thorny issues, including subsidies for green energy, subsidies for semiconductor chips. That is
amongst one of the thornier issues. So lots to come here, lots to discuss. I should say, Macron, for his part, has also traveled with quite an
entourage. It includes ministers of defense, finance, business leaders, astronauts. He has come with quite a bit of company.
Let's take a listen to some of the pomp and circumstance.
And you have the President there hugging his Vice President Kamala Harris. You see his wife, Dr. Jill Biden, just behind them. Members of the
diplomatic corps. If I can see correctly, I believe, the Treasury Secretary, Janet Yellen, is also there. I mean, this is an important
relationship that has all sorts of implications politically, economically, strategically, militarily. I mean, lots to discuss, certainly among the two
So we'll stay with these live pictures. In the meantime, let's bring in Sophie, again, the chief -- Paris Bureau Chief of the Economist. Sophie,
remind our viewers just how significant this trip is.
PEDDER: Well, I think it is for the French incredibly important. A symbolic sort of tribute to France, really, when you think about European leaders.
Since Brexit, the U.K. has been sort of sidelined in terms of considering when you look across the Atlantic, you're looking at who you're going to
talk to or who might talk for Europe. I don't think the U.K. can claim to do that anymore.
And then in Germany, you have Rudolf Schultz (ph), who is a relatively -- relative newcomer. And Emmanuel Macron was reelected in April this year. So
he's just started his second five-year term. It makes him the most -- one of the most experienced leaders in Europe. And I think that President Biden
has chosen to host this state visit for France is a tribute not just to the strength of the French and the American tie, but also of Emmanuel Macron's
leadership in particular.
And at a time like this, when we have war here in the European continent, Russia's invasion of Ukraine in February, it feels very close and very real
to everyone in Europe. It's all the more important, I think, for both sides to try and maintain the unity of the allies and in particular between
France and the U.S.
SOLOMON: Remind us of some of the key issues that Biden and Macron will likely be discussing, including some of the thornier issues.
PEDDER: Yes. But, of course, there are things that they agree on and agree on increasingly. And I would say that top of that list is what to do about
Ukraine. I think that at the beginning of the war, in February, there were some differences. The U.S. had been warning for months that Russia would
invade, and the French were quite skeptical about that.
They didn't have the same risk assessment. They thought Putin wouldn't do it, but he did, and the French were wrong. And there were some differences
there right at the beginning. But I think over the months, French and American positions have really begun to converge. I think that both sides,
you hear, increasingly voiced the view that the war at some point is going to have to go to the negotiating table.
It has to be on terms and at a time decided by the Ukrainians. But nonetheless, at some point there have to be talks. So I think there the
French and the American views have converged where there are really difficult talks to be had is about trade and subsidies and, in particular.
the Inflation Reduction Act, which is seen by Europeans as, you know, as sort of laudable in its objective because, of course, everyone wants
industry to become greener, but as putting European companies at a real disadvantage.
And that is where I think Macron is going to be trying to -- he's going to be pretty blunt and he's going to try and explain why it's difficult to see
this as a constructive move for Europe at a time of -- when you need unity and sort of, you know, everyone holding together rather than policies which
are actually putting European companies at a very severe disadvantage, in his view, at a time when they're also confronted with --
SOLOMON: Sophie, I'm going to --
PEDDER: -- the storing energy prices.
SOLOMON: I'm sorry, I'm going to interrupt here because we're now listening to the national anthem. I just want to tune in for this for just a moment.
SOLOMON: And that was a 21-gun salute there. We expect to hear from the President momentarily. But while we wait, again, if you were just tuning in
to CNN, you are watching, of course, French President Emmanuel Macron, U.S. President Joe Biden for President Biden's first state visit of his
presidency. We're watching the -- listening to the pomp and circumstance that surrounds and associates these type of state visits.
SOLOMON: We do expect there to be a whole host of issues for the two leaders to discuss, including Ukraine, including China, including potential
subsidies to green energy, to semiconductor industry, and France's, perhaps, frustration with some of those subsidies. So there will be a lot
to discuss in a lot of areas on which the two nations agree and maybe some areas where the two nations do not.
I should say that President Macron has traveled with quite an entourage. That includes French ministers of defense, finance, as well as business
leaders, astronauts as well. And that really gives you a sense, I think, of the scope of topics of issues that the French President hopes to discuss
with President Joe Biden.
Right now, we are looking at of reviewing of the troops. It's a relationship the U.S. and France, that certainly among the oldest allies
the two nations, but it has also not been without its more thornier times. And so this trip really symbolizes a warming of relations between the two
countries, really signifies how far the relationship has come, I think.
And Sophie, that's actually where I want to pick it up, because if you could remind our viewers of just a year ago, France and the U.S. weren't
exactly on the same type of footing.
If I can remember correctly, France was upset about an agreement essentially with Australia at the center of that agreement. And so it's
interesting to see this visit just about a year from then. I think it really signifies and illustrates how far relations have come. Bring us up
to speed on that.
PEDDER: I think that's right. I mean, this was the agreement known as AUKUS that was signed in September last year and it was signed between the U.S.,
Australia and the U.K. actually. There was a trilateral defense pact, but it was kept secret from the French. And the signing of this pact ended up
putting an end to a submarine contract that it had with Australia as part of France's own Indo-Pacific strategy.
And this absolutely exasperated the French. Firstly, that they weren't told about it in advance and secondly, that their own sort of geopolitical
strategic vision and their interests were being undermined. But I think what's happened is that the U.S. has moved very fast and very skillfully to
try and patch up that relationship, with the French who were really upset about it.
The Foreign Minister at the time (INAUDIBLE) called it a stab in the back, so just to give you a sense of quite how upset they were. But President
Biden then met President Macron in Rome in October last year and they had a bilateral meeting. And he went out -- he called -- President Biden called
what has happened clumsy and he's really, I think, gone out of his way to fix this up, fix this relationship.
And that this state visit is really the kind of, you know, the ultimate, you know, sign of respect for France that he could possibly have given. And
I think that's why the French feel that it's so important to them. And it really does mark, I think, closes that chapter. And although they have
difficulties, you know, France and America have always had difficulties. So France likes to have its own independent voice on the world stage and that
sometimes makes it a tricky partner.
You'll probably remember back in 2019 when President Macron gave an interview to us at the Economist and talked about NATO being brain dead.
That didn't exactly go down well in Washington. So I think, you know, there are always moments of where there's a sort of prickliness between the two
countries, but ultimately when push comes to shock, you know, France is America's ally and America and France both know that.
And I think --
SOLOMON: And I think --
PEDDER: -- that's what this sort of statement is all about.
SOLOMON: It's a great point, Sophie, and I think we'll have to interrupt you at some point because we expect the President to speak any moment now.
But as I understand that President Macron and President Biden have had at least seven one-on-one calls this year. So, as we speak about the patching
up of the relationship, I mean, as you pointed out, it really sort of illustrates how far the two nations have come after that disagreement last
year about that agreement with Australia and about that alliance with Australia.
And so, they certainly have sort of worked to reestablish the relationship and I think the war in Ukraine, as unfortunate as it has been part of that.
PEDDER: Yes, so I think that's right. And, you know, there are still differences. I mean, one has to be realistic about it. I don't think that
the French and the American views on what to do about China are exactly aligned. You know, the French do not want a confrontation with China.
France, don't forget, is a considers itself as an Indo-Pacific nation.
It actually has territories in the Pacific and the Indian Ocean and it has over 1 million citizens living out there. It's Navy's patrol in the region
too. And I think that, therefore, it feels it likes to have a different sort of an independent voice on China. So there are always going to be
issues where the two sides have to discuss.
But I mean, the important thing is that they're talking on the basis of a kind of fundamental trust. And the two countries work very well, you know,
together, the two militaries. I mean, I'm thinking of the African Sahel, for example.
SOLOMON: And Sophie, let me just get in here because I think President Biden is actually speaking. Just give me one moment.
JOE BIDEN, PRESIDENT OF THE UNITED STATES: The temperature may be a little chilly on this December night -- day, but our hearts are warm and to
welcome such close friends to the White House.
President Macron and Brigitte, members of the French delegation, distinguished guests, it's an honor, a genuine honor, to host you for the
first state visit of my administration. And to celebrate the enduring strength and vitality of the great friendship between France and the United
States of America.
UNIDENTIFIED MALE: (Speaking Foreign Language).
BIDEN: As my friend and I were talking, France is our oldest ally, our unwavering partner in freedom's cause. From the spirit of the Marquis de
Lafayette, who helped secure the success of our revolution, to the sacrifice of American GIs who stormed the beaches of Normandy, our history
has been shaped by the courage of the women and men who crossed the Atlantic, carrying within their hearts the flame of liberty.
Today, that flame burns more brightly than ever and the alliance between our two nations remains essential to our mutual defense.
UNIDENTIFIED MALE: (Speaking Foreign Language).
BIDEN: As allies in NATO, together with our European Union and the G7 and partners around the world, France and the United States are facing down
Vladimir Putin's grasping ambition for conquest and Russia's brutal war against Ukraine, which has once more shattered peace on the continent of
UNIDENTIFIED MALE: (Speaking Foreign Language)
BIDEN: France and the United States are once again defending the democratic values and universal human rights which are the heart of both our nations.
The wellspring of our strength is a shared commitment to liberty and justice for all -- liberte, egalite, fraternite.
UNIDENTIFIED MALE: (Speaking Foreign Language)
BIDEN: We are proving to people around the world that democracies deliver, from our joint leadership to make sure partners everywhere, everywhere and
parents everywhere can be -- feed their children, to cooperate and to tackle the climate crisis, and preserve our planet for generations yet to
come. And on this World's AIDS Day, we reaffirm our shared commitment to end the AIDS epidemic by 2030.
UNIDENTIFIED MALE: (Speaking Foreign Language)
BIDEN: President Macron, you heard me speak before about the inflection point we stand at in history and how the choices we make today and in the
years ahead will determine the course of our world for decades to come.
And the United States could not ask for a better partner in this work than France. For centuries, we've come together, charted a course toward a world
of greater freedom, greater opportunity, greater dignity, and greater peace.
UNIDENTIFIED MALE: (Speaking Foreign Language)
BIDEN: Stalwart friends in times of triumph and of trial, France and the United States will meet the future, just as we always have -- confident in
our shared capacity, sustained by the strength of our shared values, and undaunted by any challenge that lies ahead.
And the connections that we are building today between our students, our businesses, our trailblazers will see our alliance continue to prosper and
grow stronger for decades to come. So, Mr. President, welcome, again. And welcome to the French delegation. I'm honored to have you here, and looking
forward to a wonderful day together.
God bless both our nations. And may God protect our troops. Mr. President.
UNIDENTIFIED MALE: Ladies and gentlemen, distinguished guests, the President of the French Republic.
EMMANUEL MACRON, FRENCH PRESIDENT (through translation): Thank you so much, Mr. President, dear Joe, Madam, dear Jill, ladies and gentlemen,
We are both honored and moved, Mr. President, to be here with you today at the White House -- honored and moved, like you said, Mr. President, because
our two nations are sisters in their fight for freedom.
France, from the beginnings of American independence, the inception of your country -- and the United States in the life sacrifice from the trenches of
the Somme to the beaches of Normandy.
Accordingly, we bear a duty to this shared history. As war returns to the European soil following Russia's aggression against Ukraine and in light of
the multiple crises our nations and our societies face, we need to become brothers in arms once more.
This spirit of fraternity must enable us to build an agenda of ambition and hope, as our two countries share the same faith in freedom, in democratic
values, in empowerment through education and work, and in progress through science and knowledge.
Our democracies on both sides of the ocean are being shaken by the same doubts as to our ability to be sufficiently strong and effective when it
comes to the challenges we share -- those of the climate, geopolitics, and technology. They're in doubt in the face of relativism, hate speech, false
information, and today's fears.
United today by the same determination and the same strength of mind. Together, we need to find a path to offer a possible future for our
children -- one of prosperity, justice, and ecology.
Together, we need to work to rebuild the unity of our societies through respect and recognition -- the only means to eradicate hate.
Together, we need to frame new world balances to bring peace and build a renewed, more equitable partnership with the Global South.
Our new frontiers are there, and it is our shared responsibility to respond to this. And to that effect, the United States and France -- the strongest
allies -- are there, because our relationship is rooted in centuries.
It is our shared destiny to respond to those challenges together -- true to our history, clear sighted of our world, and determined to generate hope.
Long live the friendship between the United States and France.
SOLOMON: And we were just watching President Biden and French President Emmanuel Macron give comments on the South Lawn there. President Biden said
it was an honor for his first state visit of his administration to host France. He called France a great friend. He said it was a great friendship
of America and that France was the U.S. oldest ally in an unwavering partner.
For Macron's part, he also called it an honor and said he was moved. He said that he called the U.S. his sister in the fight for freedom. He also
talked about that shared history, that fight for freedom, saying that we need to become brothers in arms once more.
A lot for the two to discuss, including Ukraine, including China, including geopolitical events, including the climate, including technology. But
President Macron saying that together, we need to work to rebuild the unity of our society to eradicate hate. Also, perhaps a topic for the two
It is a windy Thursday morning at the White House. It is 10 before 10:00 a. m. It's also a packed day for both leaders before the state dinner tonight.
You're just joining us as President Biden's first state visit of his presidency. It's the pomp and circumstance as both leaders walk into the
White House with their respective spouses.
And let's bring back Sophie Pedder, she is the Paris Bureau Chief of the Economist. Sophie, it's been wonderful to have you on this day. Just walk
us through again the symbolism of this event and what this symbolizes about French-U.S. relations at this moment?
PEDDER: Well it's fascinating, isn't it, watching those images from the White House. I was just reminded of how many, you know, how many links
there are between these two men in particular, as well as their two countries. I mean, you have -- they're very different generations and
President Macron was already 44 years old. President Biden was born during the Second World War.
President Macron comes from a region he talked about the times when American troops have come to Europe, have come to France to rescue France
and to bring about freedom. And that is very much -- has an echo in his own life. He comes from Amiens (ph), a town in the Somme, which was where in
the First World War, there was a major battle build.
And there is this sort of quite personal link, therefore, between the two men as well as between the countries. And obviously, they've got tough
issues to discuss, particularly trade and subsidies under the inflation reduction act that the U.S. has brought in. But I think that the message
here at the White House today has all been about the symbolism of the strength of that tie, each other's oldest ally, going back to the American
Revolution, going back in the 20th century, to the times when the U.S. has helped liberate France.
And then again, you know, being, I think, a real message to President Macron in particular, that Europe at a time when the Americans need Europe
to be unified and that there isn't really another leader who has quite the same statue or experience in charge of a big European power. And so,
President Macron is beginning to stand out as one of those leaders that the Americans, you know, they both need and they really begin to appreciate, I
think, as representing, you know, a voice that they can trust for the most part, not always, but for the most part in Europe.
SOLOMON: It's an interesting point, Sophie, because I mean, I think back to when earlier this year when President Macron was reelected, I mean, that
was the one thing you heard a lot as an advantage of his, is his standing on the world stage, his diplomacy skills. So I think that is evidence at
the White House today.
Sophie Pedder, it's been wonderful having you today on this monumental day for the White House and France. Sophie Pedder, she is the Paris Bureau
Chief of the Economist. We'll have you back soon.
And stay with the First Move. More after this.
SOLOMON: And welcome back to First Move. U.S. stocks are up and running on the first trading day of December. Stocks mostly higher. That's after
encouraging new reads on U.S. inflation and also consumer spending. All this after a sizable rally in the previous session driven by hopes for the
less aggressive Fed.
Paul La Monica joins me now. Paul, wonderful to have you. So help me reconcile this. Powell said the end of inflation is highly uncertain, but
on the other hand, markets surge because smaller rate hikes are coming. So you have sort of two opposing objectives happening.
PAUL R. LA MONICA, CNN BUSINESS REPORTER: Yes, exactly, Rahel. I think that Jerome Powell really had a fine line that he had to tread, and so far, it
looks like the market thinks he did a great job of being sufficiently dovishly hawkish or hawkishly dovish, depending on which bird or which
feather you want to focus on. But I think Powell really showed that he realizes that the fed has already done these aggressive rate hikes.
They will probably slow the economy. Inflation pressures are starting to ease. We're seeing that even in the data this morning that came out. And as
a result, there is a lag effect. So the fed doesn't want to go too far with future rate hikes, so it's probably prudent to start cutting the size of
those rate increases heading into 2023. And the market, that's exactly what they wanted to hear. They did not want to hear Powell talk about how there
was going to be a need for even more super-sized 75 basis point ray hacks (ph).
SOLOMON: I think four was enough, according to the markets. Paul La Monica, wonderful to have you. Thank you.
And that is it for the show. I'm Rahel Solomon. Thanks for watching. Connect the World with Becky Anderson is next.