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First Move with Julia Chatterley

Ukrainian Government Dismisses Several Top Officials; Authorities Working to Established Killer's Motive; Hogan: Tech Companies Trying to get to a Manageable Size; Schools Sound Alarm on New CHATGPT AI Tool; China Detaining Demonstrators after COVID Rules Protests; Just Released: This Year's Oscar Nominations. Aired 9-10a ET

Aired January 24, 2023 - 09:00   ET

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

[09:00:00]

(COMMERCIAL BREAK)

RAHEL SOLOMON, CNN HOST, FIRST MOVE: A warm welcome to "First Move", I'm Rahel Solomon in today for Julia Chatterley. Great to have you with us!

Head on the show today, California's grief after another mass shooting this time seven people are dead after a lone gunman opened fire in the San

Francisco Bay Area.

The suspect now in custody it is the state's third mass shooting and as many days, we have a live report. Plus, Poland's push worse off formally

asking Germany to OK battle tanks for Ukraine. NATO now confident that the tanks will be sent soon, we have an update from Kyiv just ahead. And Oscars

unveiling the Academy Award nominations have just been announced big nods to Elvis, Avatar and The Fablemans, full report on the nominees a little

later in the show.

But first far from an Oscar worthy performance for the global markets look at that red arrow across the screen. U.S. stocks set to pull back from

seven week highs amid a mixed bag of Q4 results Microsoft on deck later today, Europe also mostly lower although new data out today showing

Eurozone business activity back in expansion mode for the first time in months.

ECB Head Christine Lagarde saying in Davos last week that the Eurozone economy will perform a lot better this year than many people had feared. So

can Europe avoid recession in 2023? We'll discuss. Also shares of tech giant Alphabet under pressure premarket down about 1.2 percent.

Bloomberg reporting that the U.S. is set to sue Google's parent company over its dominance in digital ads lots to get through today but let's begin

with the latest on the war in Ukraine. Germany is saying that it will decide soon whether to allow other countries to send German made Leopard 2

tanks to Ukraine.

(BEGIN VIDEO CLIP)

BORIS PISTORIUS, GERMAN DEFENSE MINISTER: There is no new status yet. I have always said that I expect the training of Ukrainian forces on these

partners' tanks to start already that the decision will be taken shortly. And I still assume that but what I want to emphasize again is what I said

in Ramstein I explicitly encouraged the partner countries that have Leopard tanks that are ready for use to start training Ukrainian forces on these

tanks already.

(END VIDEO CLIP)

SOLOMON: And now Poland has formally asked Germany for permission to deliver the battle tanks to Kyiv. Salma Abdelaziz joins us with the latest.

So Salma, it appears that Germany has been saying this announcement would be coming soon, at least for the last few days since that meeting of

Defense Ministers.

What can you tell us about what's happening now in terms of the conversations taking place, the negotiations taking place? Bring us up to

speed here?

SALMA ABDELAZIZ, CNN CORRESPONDENT: Absolutely, so Germany's allies and partners are really piling on the pressure here pushing Berlin to make a

decision on whether or not they're going to give a green light to deploy these Leopard tanks to Ukraine. And this is a matter that does not just

impact Germany, there's around 2000 of these tanks, they're spread across 13 different European countries.

And for any one of those countries, even if they own those tanks for any one of those countries to send those tanks to Ukraine. They need legally to

get the OK from Berlin. Now, this really escalated when Poland's Foreign Minister said a few days ago, look, if we don't have that approval from

Germany, and we can collect a coalition of partners, we might go ahead without that approval and send those tanks to Ukraine.

Now Poland saying they have submitted that official request to Germany. Germany saying they're reviewing it as a matter of urgency. You heard there

from Germany's newly appointed Foreign Minister saying to his partners, go ahead and train Ukrainian troops if that's what you need to do.

But we are still working on the sort of bureaucracy, if you will, of giving the OK for these Leopard tanks. And there's also been this back and forth

about whether or not it's the right type of tank to send debates on whether or not U.S. may tank the Abrams should be sent instead.

But what you hear repeatedly, from analyst and from Ukrainian officials is that these are the tanks needed right now. Probably yesterday, if you ask

President Zelenskyy he sees all of this red tape as wasting of time and causing more bloodshed on the ground. And if you take a step back, you

absolutely can look at the back battleground now and see how Ukraine is under pressure in places like Bakhmut.

Ukrainian officials saying Russia is preparing for a spring offensive in the use of these Leopard tanks right on the frontlines. And what is very

much an infantry war, meaning it is all about those foot soldiers all about the artillery. Those tanks can spearhead and provide the movements that

Ukraine needs going forward in this anticipated counter offensive this spring.

SOLOMON: Now time is of the essence here. Salma Abdulaziz thank you. And staying in Ukraine, several top officials, including a Deputy Defense

Minister and a Deputy Prosecutor General had been removed from the government and as the largest shake up and President Zelenskyy's government

since the war began a 11 months ago.

Fred Pleitgen joins us now he is live and Kyiv. So Fred, what more do we know about these folks who are resigning and also what me led to the

resignations?

[09:05:00]

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well first of all it's a lot of them Rahel, to Deputy Ministers and also some regional

governments as well with a cabinet here has decided that they need to go a lot of people so tendering their resignations. One of them, for instance,

the Deputy Head of the presidential administration that's someone who's really, really high up and certainly someone who's also very high profile

here in the country.

Now all this pretty much started off last week when the Deputy Minister got taken into custody for alleged embezzlement. And since then, we've sort of

seen this wave of people tendering the resignations, and possibly not completely voluntarily and other people's being sacked out right now. It's

unclear what exactly is behind this large wave of all this.

But it certainly seems to be as though the President of this country Volodymyr Zelenskyy, is somewhat cleaning up the ranks and certainly trying

to remove some people that he might feel are not fully on board with the effort of defending against Russia.

And certainly might also be doing some other things as well. It was interesting, because a top Presidential Adviser earlier today and came out

and said, look, this operation that we're seeing right now, the sackings that we're seeing right now.

They show that Volodymyr Zelenskyy, the President feels the pulse of the people and the people who are in office, the people who are in government

need to understand that in these tough times, they have a job to do and they certainly shouldn't deviate from that.

So a really big purge going on here right now. Unclear how much longer this will go on or whether if there will be others that follow. But this is a

big political shakeup that we're seeing here in Kyiv, Rahel.

SOLOMON: It certainly sounds like it, Fred, while I have you I want to turn your attention to the Wagner group, a Ukrainian Military intelligence

document obtained by CNN just pointing out, among other things, how effective this group has been for the Russian side. Help me understand and

for our viewers at home and around the world, is it just the brutality of this group? Or is there something else at play here?

PLEITGEN: Well, there's a lot of things that apparently are at play here, at this is as far as the Ukrainians believe. They say that obviously, it is

a group that operates in a very brutal way, but also in complete disregard of their own losses.

And we did obtain a document from the Ukrainian military outlining this, how the Wagner group is fighting and why they are one of the few units that

are affiliated with the Russian military that are able to get gains here in Ukraine? You should be learned.

(BEGIN VIDEOTAPE)

PLEITGEN (voice over): As Russia's invasion of Ukraine falters, there's one group that is having some success on the battlefield. The brutally

effective Wagner private military company led by Putin ally Yevgeny Prigozhin.

Wagner, why are we effective? And where does this effectiveness come from? He asks, first, we have been fighting for many years probably we are the

most experienced army in the world today. And Ukraine's leadership is alarmed by Wagner success. CNN has exclusively obtained a military document

outlining Kyiv's assessment of the group.

There are also purely military reasons for Wagner's effectiveness. The document says as the command structure and tactics currently employed are

the only ones that are effective for the poorly trained mobilized troops that make up the majority of Russian ground forces.

Ukraine's military filmed this video showing Wagner assault tactics using waves of fighters trying to overwhelm and encircle a Ukrainian position.

The tasks are set to be as primitive as possible to achieve the goal, many assault groups are deployed, and attacks can be carried out for a long

period of time without regard to losses, the document says.

The first waves are often convicts essentially used as cannon fodder. The deaths of thousands of Wagner soldiers do not matter to Russian society,

the military document asserts. And unauthorized withdrawal of a team or without being wounded is punishable by execution on the spot.

Prigozhin makes no secret of the fact that losses don't matter to him. He recently visited a building where the bodies of the fallen were kept. Their

contracts have ended. They are going home he said. But Prigozhin also claims to respect the Ukrainians defending against his mercenaries saying

they're fighting with valor. You need to be more careful to send them off in a dignified manner.

He said while recently overseeing an exchange of bodies between Wagner and the Ukrainian army. Internally though it's a brutal regime. A pro Wagner

social media channel recently posted a video of mercenaries using a sledgehammer to kill a Former Comrade who allegedly defected and criticized

the group. The word is out on the battlefield too. Ukrainian intelligence intercepted this call, which CNN cannot independently verify of a Russian

soldier talking to a friend about --. [09:10:00]

PLEITGEN (voice over): Still, Wagner's morale seems high, the Ukrainian say, and the fighters are often better equipped and Russia's regular forces

thanks to what the Ukrainians claim is U.S. made technology. In contrast to the Russian Armed Forces, Wagner's main means of communication are American

made radio relay stations and Motorola walkie-talkies, the Ukrainian document says.

(END VIDEOTAPE)

PLEITGEN: And Rahel, we did reach out to the Motorola Company and ask them for a statement. They said that they stopped selling to both Russia and

Belarus and essentially stopped all of their operations there right after Russia invaded Ukraine. But you know there's so much in this military

document we got one of the other things that we thought was really interesting.

We've been hearing so much about infighting going on between Wagner and Prigozhin specifically. And the leadership of the Russian military with a

document says that apparently, the Russian military is now recommending some of those brutal tactics that Wagner uses for Russian regular forces as

well, Rahel.

SOLOMON: Fred Pleitgen thank you, just an incredible and chilling look inside of that group. Well, some optimism now this morning that Europe

could dodge a recession this year initial reading of Eurozone PMI showed activity in the manufacturing and service sectors grew in January.

That is the first expansion since June, but business activity in the U.K. Well, that contracted sharply. Anna Stewart joins me now from London. Anna

I suppose let's start with the good news, at least for Europe. What's behind this more optimistic forecast?

ANNA STEWART, CNN REPORTER: Yes, a few factors that play is interesting, because it's not just the first indicator we've really had of this shifting

economic outlook. Yesterday, there was a survey of analysts by consensus economics that also suggested the Eurozone would avoid recession.

And it's interesting because the same survey just one month ago told the exact opposite story so quietly about turn. And in Davos last week, I felt

like the mercury in CNN's economic thermometer was rising. Here's what's the Dutch Prime Minister Mark Rutte said to Richard Quest.

(BEGIN VIDEO CLIP)

MARK RUTTE, DUTCH PRIME MINISTER: I'm not sure you will go into the session. I am not a political forecaster, economic forecaster. So we have

to see economically what will happen. But when we came into Davos, everybody was a bit pessimistic; there is no more optimism also because of

the latest figures coming out of the U.K., coming out of Germany.

(END VIDEO CLIP)

STEWART: More optimism, and a few reasons for that, first of all energy. Europe's actually in a much better position in terms of energy than it was,

say in October, a result of stockpiles, but also simply a fact that winter wasn't as bad as it could have been a lot colder, supply chain issues have

ease, that's a huge benefit to producers.

And so that has an outsized benefit for a big economy like Germany. And lastly, China's reopening now that happened very recently, very suddenly.

But I think the outlook in terms of that has already boosted optimism levels across the block.

SOLOMON: It's interesting Anna, yesterday, we spoke with an expert on China's economy, Leland Miller, who said that many people expect the

Chinese consumer to save the world. He wasn't so sure, but I do want to turn to another major economy, the U.K., the forecast, they're not looking

so promising. What's happening there?

STEWART: Yes, really not so good, is it? So the same PMI data for the U.K. told a very different story, the steepest decline in business activity

since the COVID, locked down two years ago. So certainly no good news here this is the toxic combination of high interest rates, inflation, cost of

living crisis and suppressed consumer confidence, that's really taken a slump, particularly in services.

And also we can add to that I know you've been talking about this on the show. In recent weeks, the strikes we've been seeing which according to the

U.K., Office of National Statistics have been so bad that the U.K. economy lost more working days between June and November of last year than any six-

month period over the last 30 years.

And strikes really are a byproduct of all of those issues, frankly, wages just not keeping up with the cost of living. There's also a little bit more

to it. And I am always loath to mention this because I feel like it's all I've talked about last years when the Chief Economist of S&P Global who put

together the PMI report also highlighted longer term structural issues related to Brexit.

So more than six years since the vote nearly three years since it actually was implemented still structural issues with trade and with labor

shortages, Rahel.

SOLOMON: Anna Stewart, good to have you thank you. Back here in the U.S., three communities in California have been rocked by gun violence in the

past three days most recently and Half Moon Bay. On Monday, a gunman killed at least seven people in two separate locations authorities now working to

establish a motive. Veronica Miracle is standing by in Half Moon Bay. Veronica, what can you tell us, bring us up to speed here?

VERONICA MIRACLE, CNN CORRESPONDENT: We'll Rahel, those two locations where this massacre took place just less than five minutes apart at that first

location to call.

[09:15:00]

MIRACLE: The 911 call came in around just before 2:30 with deputies responding to reports of a shooting with multiple victims, and when they

arrived, they found four bodies and a fifth person who's still critically injured. And then a short distance away they found another three bodies.

One of these locations is a farm, a mushroom farm, and it is believed that some of the people who work there also live there and this happened in the

afternoon after school got out.

So there were children present during this horrific shooting, seven people in total killed at this point. And then about two hours after that first

phone call to 911 came in a sheriff's deputies discovered 67-year-old Chunli Zhao in the parking lot of a police substation, and that's where

they were able to take him into custody relatively without any issues.

Police believe that he acted alone and that he you know turned himself in. But as far as the motive, it is very unclear. And of course, this community

reeling right now here's what the Mayor had to say.

(BEGIN VIDEO CLIP)

DEBORAH PENROSE, MAYOR OF HALF MOON BAY, CALIFORNIA: Our hearts are torn out of our chests for all these individuals and families, our neighbors,

our friends. The only thing we do know is that some of the victims were Chinese, that the perpetrator was Chinese, and that this is an agricultural

community, they were agricultural workers.

(END VIDEO CLIP)

MIRACLE: And Rahel, there are some disturbing similarities between this mass shooting here and Half Moon Bay and a mass shooting that took place in

Southern California just a couple of days ago in Monterey Park. Both of the suspects, older Asian gentleman who went and targeted police say other

Asian individuals, but something that is acutely just specific to this community here.

The state has been battered; excuse me by storms in recent weeks. And it's an agricultural community here that has been severely impacted by flooding,

including some of the farm workers here who believed to be victims. So there's just tragedy upon tragedy and trauma that this community is dealing

with, Rahel.

SOLOMON: Yes, it's a great point, Veronica; it's been just certainly a rough go for California. But then you sort of add this to the mix at it.

You know, you have these communities in California grieving a tough state of affairs for not just California but really the nation at large. Veronica

miracle thank you!

And as we mentioned, three California communities are now mourning lives lost and mass shootings. In Monterey Park, a vigil will be held on Tuesday

evening for the 11 people who were killed on Saturday.

You're also learning more about the victims of that shooting which occurred on the eve of Lunar New Year. It's now being reported that two Taiwanese

Americans, one Filipino American, and at least one Chinese citizen, are among the dead. What more "First Move" after this?

(COMMERCIAL BREAK)

[09:20:00]

SOLOMON: Welcome back, it is a busy week for earnings and that crucial first-quarter guidance will be the main driver for stocks. According to my

next guest, Microsoft, Verizon, Johnson & Johnson and GE just some of the big ones reporting today, Art Hogan is predicting that there will be more

good news than bad with two thirds of firms beating estimates. So how is that holding up?

Well, let's ask Art Hogan himself. He is the Chief Market Strategist at B. Riley Wealth Management. Art, good to have you today!

ART HOGAN, CHIEF MARKET STRATEGIST AT B RILEY WEALTH MANAGEMENT: It's great to be here. Thank you very much.

SOLOMON: So what's behind the forecast? And I also wonder our corporate earnings, do you think becoming more important in this stage of the

inflation fighting cycle where it appears we've gotten convincing evidence on the inflation front it appears the Fed will soon be done with its rate

hikes. Do you think corporate earnings become now more important and what's behind your forecast here?

HOGAN: Yes, certainly I think that, you know, as we went through the third- quarter earnings reporting season, there was a big concern that we're going to see a massive slowdown. And clearly, things turned out better than

feared. I suspect the same type of reaction function here in the fourth- quarter earnings reporting season.

Well, it's early days, and we've only had about 65 S&P 500 companies report so far. We're having a historic number of beats have both on the earnings

line and the revenue line. But what's more important is thus far, in terms of guidance, it really hasn't drawn down the consensus estimate for 2023

yet and that's the important thing when you try to stack up valuations and what makes sense for level.

So this will be an important week as well next, and we'll have a much larger sample set of companies reporting in this. This is one of the busier

weeks with next week being the busiest, but I think what we'll really be paying close attention to and watching is, does the aggregate guidance,

drive down what we think the S&P 500 can throw off in terms of earnings for 23? And therefore, it's the multiple assumptions, appropriate or justified?

SOLOMON: I think that's an interesting point, though, that we've seen an impressive number of beats so far. And it makes me wonder, is this yet

another example of some times of the difference between the narratives of what's happening in the economy versus what is actually happening in the

economy?

HOGAN: Yes, there's certainly some dichotomy there, for sure. And we've certainly seen that across a broad spectrum of sectors. But I would say

it's also that sort of natural inclination for Wall Street analysts to be conservative. And that's been true for a long time; you don't get rewarded

for being overly optimistic.

And as matter of fact, when earnings miss estimates, the reaction function tends to be much sharper than it is if you, you know if you beat modestly.

But I also think what's really important here is to your point; it's just a position between the narratives around how much things have slowed down in

the economy versus how corporate America is doing?

And I think that the recent announcements of layoffs, it's a pretty good sign that technology companies in general, are trying to get back to a

manageable size to manage their expenses, et cetera. So if you look at all the layoffs that have been announced, which seems like on a daily basis,

really only getting the total level of employment at tech companies back to where they were in the in 2021.

There was a massive amount of hiring that went on and technology companies between 2022, they're getting back to where they were in 21. I think that's

going to make a great deal of sense and help protect margins.

SOLOMON: I think that's a great point. I also want to ask to that point in terms of what we see in tech versus what we see perhaps in the broader

economy? What specific names are you going to be watching this week? Because I know we get some of the big tech names, as I said, Microsoft.

But one thing that got my attention is that we hear from a lot of the credit card companies we hear from visa, we hear from American Express, we

hear from MasterCard. And when I hear that, I think we'll, might we learned a bit more about the consumer this week in terms of how consumers are

spending?

HOGAN: Such an excellent point and that's entirely correct. I think that when we think about what gives us the best window into how the consumer is

doing? How active they are? Where these companies, standard delinquencies, we'll get a really good report card with those three reporters. I think

they're going to surpass expectations, expectations that come down significantly for the credit card companies.

And I think that's integral to our assumption of how the consumer continues to do. It's hard to take the retail sales data on a standalone basis

because there was so much shifting of holiday shopping and back to school shopping into the month of September and October, which are upside

surprises versus the November-December period.

[09:25:00]

HOGAN: So we actually get to hear from the companies that are actually the sort of picks and shovels of the consumer respond. I think that'll help us

understand where the consumer stands right now.

SOLOMON: Yes, I think it's a great point because we got that retail sales data which really disappointed and really spooked quite a few people in

terms of what it could mean. But we'll learn a lot more later this week.

I want to pivot a bit, because I understand that we've talked a lot about ChatGPT on this program, we're going to talk about it a bit more later in

the program. But you too, have experienced or played around with the technology. What more can you tell us about your experience with ChatGPT?

HOGAN: Well, it's interesting, I read a morning commentary every day, and I thought I'd do a little experimenting to see how that would come out. And

it was surprisingly pretty sharp in terms of what it produced, obviously, you know, it's sort of a good rough draft. I'll never use it necessarily in

its early stages, and I'm not sure how it will eventually be monetized.

And we certainly know there's a lot of excitement around AI and Microsoft is making some big moves into sponsoring that. But I will tell you this, I

wish I had it when I was in college; it certainly would have come in handy when I had to write papers and whatnot.

SOLOMON: Well, I don't know because you were able to sharpen your writing skills and your critical thinking skills that we all rely on so much

because you had to write those papers. And before I let you go speaking of assistance, we couldn't help but notice that you had two adorable dogs on

your Twitter, I think we can pull up the photo. And I have to wonder inquiring minds have to wonder, are they bullish or bearish on the U.S.

economy for 2023?

HOGAN: Well, I tell you the black and white one whose name is Ziggy is very conservative, but also modestly bullish ET tends to really lean into things

that are much more cyclical whereas the crazy redhead who is Maverick is really excited about the resurgence that technology stocks. But in general,

both those guys sort of remind me every day that the economy likely has some more downside to it. But there's still a great opportunity for a soft

landing here.

SOLOMON: Here and here's hoping Art Hogan, great to have you thank you.

HOGAN: Thank you.

SOLOMON: He is the Chief Market Strategist at B Riley Wealth Management. And after the break, we just talked about it Art Hogan he said that he

tested out ChatGPT but who else is going all in on the viral sensation, and who's already warning about it? We'll discuss.

(COMMERCIAL BREAK)

[09:30:00]

SOLOMON: Welcome back to "First Move"! U.S. stocks are up and running while the NASDAQ starting to date up - actually I think that might be from

yesterday so we'll get that updated for you. But the Dow Jones and the S&P both off about half a percent a lower open there for those two major

averages.

We'll check to see just about the same actually for the NASDAQ. I would have been surprised if the NASDAQ started up 2 percent. But you never know

these days. Mixed results from major U.S. firms reporting today. We have weaker than expected numbers from manufacturing giant and post it note

maker three M, it's cutting its guidance and also announcing 2500 job cuts telecom giant Verizon offering disappointing forward guidance as well.

Now on the plus side Johnson & Johnson beat earnings estimates and also raising its 2023 outlook, J&J, the first big pharmaceutical firm to report

Q4 results. And as we discussed in the last block, a new and controversial artificial tool, it's known as ChatGPT. It's gaining popularity for its

ability to craft emails, write essays and answer almost any question in a matter of seconds.

But with great power also comes great responsibility and people are already sounding the alarm about the risk of it being misused. CNN's Vanessa

Yurkevich has more.

(BEGIN VIDEOTAPE)

VANESSA YURKEVICH, CNN CORRESPONDENT (voice over): ChatGPT short for Chat Generative Pre-training Transformer is a machine learning model that can

generate human-like text. It's been trained on a massive amount of data, allowing it to understand and respond to a wide range of questions and

prompts.

YURKEVICH (on camera): What you just heard me reading wasn't written by me it was written by artificial intelligence ChatGPT.

YURKEVICH (voice over): I simply typed in a prompt write a TV news script written by a reporter about ChatGPT. And in just seconds, the AI spit out

the copy you just heard. CHATGPT has exploded in popularity in recent months. CEOs are now using it to write emails. It even passed a Wharton

School of Business exam.

YURKEVICH (on camera): Should people be more excited about ChatGPT or more fearful of it?

GARY MARCUS, PROFESSOR EMERITUS OF PSYCHOLOGY AND NEURAL SCIENCE, NYU: I think they should have a mixed view.

YURKEVICH (voice over): Open AI which owns ChatGPT says the technology is still in its research phase and can produce inaccurate information.

YURKEVICH (on camera): You like artificial intelligence, but are you here to issue a warning about it?

MARCUS: Absolutely. Artificial Intelligence is sort of like a teenager right now. It's exciting to see the teenager like, get its footing. But

it's also not there yet and we can't trust it.

YURKEVICH (voice over): But Microsoft thinks it's a good bet even with some risks. They're investing billions of dollars in open AI. Jack Po, CEO of

Ansible Health had ChatGPT take three versions of the U.S. medical licensing test and it passed all three.

JACK PO, CEO, ANSIBLE HEALTH: Not only can it answer very complex questions, it can also modulate his answer.

YURKEVICH (voice over): Po and his team of 30 doctors started using the platform to help with treatment for their patients who have COPD or

pulmonary disease.

PO: What this technology could really enable, and has already started enabling us is to suddenly suggest things that we might not be thinking of

at all. It will absolutely save life.

YURKEVICH (voice over): Jake Heller is the Lawyer and founder of case text which helps its clients comb through documents using AI like ChatGPT.

JAKE HELLER, FOUNDER, CASETEXT: You can have it read police reports. You can even have it see if witnesses gave contradictory testimony, you can

almost certainly help find information that is pertinent to your guilt or innocence.

YURKEVICH (voice over): But Paul and Heller both say that human oversight of ChatGPT is still necessary. Open AI says the platform can produce

harmful instructions.

HELLER: In law, there absolutely is right and wrong answers. And that's why your ChatGPT alone is not going to be enough to handle some of the most

important questions in fields like law.

YURKEVICH (voice over): And then there's the question of plagiarism. New York City Public Schools ban ChatGPT on school network devices, due to

concerns about negative impacts on student learning and concerns regarding the safety and accuracy of content.

EDWARD TIAN, FOUNDER, GPTZERO: It's incredible innovation, but at the same time it's like opening a Pandora's Box.

YURKEVICH (voice over): Which is why Edward Tian a 22-year-old Princeton student himself spent his winter break building GPT zero, which he says can

detect whether something is likely written by a human or ChatGPT. He says teachers use it to check their student's papers.

YURKEVICH (on camera): Is this like one AI cross checking another AI?

[09:35:00]

TIAN: In a sense, yes.

YURKEVICH (on camera): But can it spot misinformation?

TIAN: Oh, OK. Yes. So as opposed to misinformation, it's more of like it can only spot if something is AI generated or human generated.

YURKEVICH (voice over): And that's the greatest fear of all spreading misinformation. ChatGPT a tool designed to help humanity could ultimately

hurt it.

MARCUS: People who want to manipulate elections and things like that, instead of like writing one thing at a time to be able to write thousands

of things to give, for example, vaccine denialism more oxygen than it deserves.

YURKEVICH (voice over): Vanessa Yurkevich CNN, New York.

(END VIDEOTAPE)

SOLOMON: Meanwhile, Microsoft is staking billions on ChatGPT announcing a major investment on open AI on Monday. Microsoft, which was an early

investor in the start-up, said that it plans to expand its partnership with open AI as part of its effort to add more AI to its suite of products.

My next guest says that big tech players like Google, Amazon and Apple are ready to engage in the AI arms race. Joining me now is Dan Ives, Managing

Director and Senior Equity Analyst at Wedbush Securities. Dan, always good to see you!

DAN IVES, MANAGING DIRECTOR& SENIOR EQUITY ANALYST, WEDBUSH SECURITIES: Great to see you.

SOLOMON: So, lots of questions for sure about the ethical implications of the program. But I want to ask you how large of an opportunity is this? I

mean, you say it could be a game changer for Microsoft, our last guest, we asked him about it. He's a Market Strategist. He said, look, it was a

pretty sharp program. How big is this market do you think?

IVES: We'll get the trillion-dollar market opportunity, and that's why Microsoft spent 10 billion. And what I view is probably the most game

changing AI technology we've seen, that's important, because this is going to be a Game of Thrones battle versus big tech when you look at Amazon,

Apple and others, as well as the China U.S. story that continues to play out on AI.

SOLOMON: So how many major players would you say were talking about at this point in terms of staking a major investment?

IVES: OK, in terms of big tech, I mean, right now, I think this is sort of having no Google or the whiteboard in terms of some of their AI technology,

because this is a shot across the bow at Google. You look what Amazon's doing cook and Cupertino clearly on the AI front. And then even Zuckerberg

met and others then you look at China, I mean, they've really been ahead of the AI race.

And that's why from Microsoft, go back to the mid-90s. They basically stopped investment do the antitrust situation they were going through. The

Dell is not going to make the same mistake here. They're diving into the deep end to the point AI. I view this as a strategic poker move a homerun

deal.

SOLOMON: OK, so AI, certainly the future or perhaps the future, but let's also talk about the present with these tech players. Every day, every week,

we're hearing more about layoffs. When does that start to normalize, Dan?

IVES: OK, I think a lot of these tech companies last four or five years they were spending money like 1980s, rock stars, and hyper growth snack

continuing clock struck midnight, and now you're starting to see cost cuts. I still think we could see another five, 10 percent cuts across the board

now be a narrative over the coming weeks in terms of tech earnings.

But these companies are going to continue invest in innovation and growth areas while it's cutting from the non-strategic areas. But it is a canary

in the coalmine for what I think is going to be a darker 2023 as tech firms navigated.

SOLOMON: Looking ahead to Microsoft, what are you watching in terms of advertising spend in terms of its cloud computing business? What are you

going to be watching very closely, do you think the street is going to be watching?

IVES: Yes, I think it's all about cloud. I mean, that's really almost good year blimp sort of headline here. I think many been yelling fire in a

crowded theater that clouds going to drop off significant. We don't think so, I think in Microsoft's the best barometer not just for cloud, but

enterprise spends.

It's probably going to be the most closely watched tech earnings along with apple that we see not just the across the street, but even on the world in

terms of industry leaders. So, I believe Microsoft about that cloud guidance, I think it's going to be better than feared. And this is going to

be important. I view this as the tech earnings season that will actually lift names higher, while the bad news baked in.

SOLOMON: That's interesting. It's been a positive start to the tech earnings season, at least you could argue Netflix sort of start at the tech

players off on a positive note. I want to get a few more things in here.

Dan, Tesla and China have the price cuts been working for Tesla in China because once upon a time not long ago, Tesla was really dealing with a

demand problem. It was dealing with increasing domestic competition, or the price cuts working.

IVES: Yes, I think out of the gate, it's been a home run. I mean, we did a survey last week, talking to over 500 Chinese Evie consumers, about three

and every four look like they're going to buy a Tesla. This is catalyzed more and more of that buying.

And I think it's what Tesla need to do, because right now it's a price war that's playing out. It needs to defend their turf it's still a massive

market that we see in EVs, that's going to be a big focus in terms of Musk and Tesla tomorrow after the market.

[09:40:00]

SOLOMON: And Dan, before I let you go, is it too soon to start thinking about a rebound for tech? I mean, typically you think about some of the

hardest hit names being the first to rebound. Is it too soon to start thinking about that for tech?

IVES: I think tech stocks are up 20 percent plus this year, Fang names could be up 30 percent. The New York City cab driver right now is bearish

on tech. And I just think there's a lot of bad news baked and we'd be buying high quality tech names. And new earnings are better than feared as

these companies rip the band aid off from 2023 guidance.

SOLOMON: Very interesting. Dan Ives, good to have you, thank you.

IVES: Thank you.

SOLOMON: He is the Managing Director and Senior Equity Analyst at Wedbush Securities. Still to come they want us to be emotionless machines after

were anti COVID protests in China, there are still reports of people being detained. CNN's Selina Wang looks at one woman story.

(COMMERCIAL BREAK)

SOLOMON: Welcome back, don't let us disappear. That's the ominous appeal from a protester in China who vanished after recording that message. She

was one of several young women who had been quietly detained after rare anti-zero COVID protests in Beijing. Selina Wang has the story.

(BEGIN VIDEOTAPE)

SELINA WANG, CNN CORRESPONDENT (voice over): If you're seeing this video, that means I've already been taken by the police. These are the chilling

words of a young woman in China, who took part in this demonstration in Beijing on November 27. It was one of dozens of anti-zero COVID protests

that erupted in cities across China.

WANG (on camera): They're chanting that they don't want COVID tasks. They want freedom.

WANG (voice over): Police mind the streets but the mood this calm and peaceful. Many were there to mourn the lives lost in Chinese - city where a

deadly fire broke out in a lockdown building. This 26-year-old woman and editor at a publishing house said, that is why she and her friends took to

the streets. She said they followed the rules and didn't have any conflict with the police.

Soon after filming this she was arrested. She knew her time was nearing. CNN has learned from sources that weeks after the protest, police started

rounding up her friends one by one, most of them also young female professionals. We tracked down and interviewed one of her friends who have

been tirelessly searching for her for not revealing her name or any of the sources we've spoken to because of concerns of retribution from the Chinese

state.

[09:45:00]

WANG (voice over): Authorities want to intimidate ordinary people. She said they want to turn people into emotionless machines. We can't even gather

together to grieve. Police swiftly crackdown on the protesters in some cities violently pushing and dragging the demonstrators, but the Beijing

protesters peacefully dispersed afterwards police blanketed protests sites.

In some places authorities check cell phones for virtual private networks and tracked down participants with cell phone data. Soon after China

dropped it zero COVID policy and opened up. In his New Year's Eve address Chinese leader Xi Jinping said it was "Only natural for different people to

have different concerns or hold different views on the same issue". But behind the scenes their loved ones say the retribution continues.

She's paying a heavy price. We were born into this land; so naturally, we would want to make China better. But now I feel there's nothing that we can

do, she says breaking down into tears. Authorities have made no official comment about the detentions and will likely never know how many people

have been detained in connection with the protests if it's dozens hundreds or more.

As people across China are celebrating the Lunar New Year with their newfound freedom, the young woman says the mothers of her and her friends

want to know why their daughters were taken from them. In her final words in the video message, she made this call for help. Don't let us be taken

away or convicted arbitrarily. Don't let us disappear from this world unjustly.

(END VIDEOTAPE)

WANG: CNN has asked Beijing authorities for comment on the young woman you saw there along with the other detentions but we have not heard back. We've

learned she's one of eight people who have been quietly detained after the protests. People who know these women tell us they were confused as to why

they were taken.

Describing them as young female professionals working in publishing journalism and education, think they are socially minded but not dissident

or organizers. Experts say the police may have been suspicious of young politically aware women.

Chinese authorities have a well-documented history of targeting feminists and at least one of the women detained was questioned during her

interrogation about whether she had any involvement in feminist groups. Selina Wang, CNN, Beijing.

SOLOMON: And we'll have more "First Move" after this.

(COMMERCIAL BREAK)

SOLOMON: Call it a gamer's worst fear and the lunar new year. Millions of Chinese video game fans logging on this holiday period, only to find they

have lost access to the hugely popular World of Warcraft franchise. You can blame the - on a long running licensing battle. Marc Stewart joins me now

from Hong Kong. So, Marc, just explain to me what was happening here?

[09:50:00]

MARC STEWART, CNN CORRESPONDENT: So, Rahel, at the end of the day, this is kind of a business relationship that just went sour if you will. If you are

a video game operator and you want to have your games available for who will play in China, you will have to have a local license, if you will. So

we have Blizzard, which is the very big video game player.

And then we have a net ease which is the local provider in China. Well, they had a deal that was pretty strong for about 14 years. And then last

year, they hit some barriers along the way. And basically, the deal dissolved, so now people who have been playing many popular video games are

without luck.

I mean, these games have basically been suspended. I mean, of course, the big one is World of Warcraft, which is very popular. You know you play with

people from really all over the world. It's one of those multiplayer games. It's been suspended. And the reaction has been pretty, pretty robust on

social media.

We heard from one player who said that they were crying in their sleep over this. So, if it's a big part of your routine, Rahel, I understand why

people may be a little upset.

SOLOMON: Fair enough, not here to judge but Marc, I do wonder is it suspended forever is it game over forever.

STEWART: It is not game over forever. At least that's what Blizzard hopes. Right now, the company is trying to find another provider in China that

they can reach some kind of agreement with. And as we know, the Chinese market is one that you want to be in. If you are in entertainment, there

are more than a billion people. And this is an outlet, which is very popular.

The good thing though is that Blizzard says that it has basically frozen or stored people's player profile. So, no matter where you were in the game,

when things hopefully start up again, you'll be able to resume where you left off.

SOLOMON: Well, hopefully that makes people feel a bit better. But as you pointed out, Marc apparently popular and people are very passionate about

it. So, we'll watch to see how this all unfolds. Thank you, Marc Stewart.

STEWART: Take care.

SOLOMON: But speaking of entertainment, this year's Oscar nominations came out not long ago. Everything, everything everywhere all at once is leading

the pack, picking up 11 nominations, and an assignment the Academy Awards are embracing more popular movies.

The Best Picture category includes a battle between "Avatar: The Way of Water". And our Executive Producer Bob Cookson's favorite Top Gun Maverick,

Chloe Melas has the list in her hands. Chloe, what else got your attention? What else are you looking at?

CHLOE MELAS, CNN ENTERTAINMENT REPORTER: Well, I mean, first of all, the fact that Avatar in the Way of Water and Top Gun are both nominated is a

huge deal because in years past when you look at the Oscars, it's usually like the indie films. And I can't tell you how many years have gone by

where I have family and friends who say I haven't seen any of these movies.

Well, not this year. And I definitely think that the fact that Avatar and Top Gun are nominated for Best Picture. That is a really huge deal. And I

think marks that the Academy Awards, they're shifting and they're actually nominating movies that people are seeing Jerry Bruckheimer who directed Top

Gun.

He released a statement just moments ago saying that this is his first Oscar nomination and he thanks everyone, on behalf of himself, the film

"The Crew" and Tom Cruise. And he you know, says that they are so honored by this and so many stars in Hollywood waking up to these nominations.

So I also want to point out that the Banshees have interferon, which I finally watched is also leading the way with Oscar nominations right

underneath everything everywhere all at once with 11 nods. And that is a movie that a lot of people are talking about.

Colin Farrell stars in this movie, Brendan Gleeson, and it's set in Ireland and it's about two best friends who have this falling out. And it's a

pretty interesting, interesting movie that you can see right there. I think it's just so beautiful, like where it was shot and everything.

Also, one of my children's favorites, Puss in Boots was nominated for best animated film. And then Lady Gaga, she has a nomination for Best Original

Score so that's really, really exciting. But there are so many movies and then Angela Bassett, who we all love she got a nomination for Best

Supporting Actress for Wakanda forever for her role and people just love her.

I know I do, I saw her recently speaking at the glamour Woman of the Year award. She's so inspiring. You know if she wins, she's going to give some

jaw dropping speech. But there are just so many great movies. Oh also, let me mention Rihanna nominated in the same category with Lady Gaga for

original song.

So, Lady Gaga for Top Gun Maverick Rihanna for her song and Black Panther Wakanda forever but mark your calendars the Oscars are on March 12. So,

we're just a couple of weeks away well about a month away or so from seeing this all go down. And I'm sure it will be the less eventful than last

year's Oscar slap with Will Smith.

[09:55:00]

SOLOMON: Yes, it won't take much to make it less eventful than that. You know, Chloe every time we get these nominations, I always think I really

have to watch more movies. We don't have a lot of time yet. But if I am allowed to ask you your personal favorite, I know you're a journalist and

you don't take sides. But if I am allowed to ask what your personal - is.

MELAS: I can tell you my favorite movie here.

SOLOMON: OK.

MELAS: It's Top Gun, Top Gun, Top Gun, Top Gun. I'm thrilled it was nominated. I'm just going to say it right here. I hope it wins. I mean,

that would be a shock. But I think that has a real chance.

SOLOMON: It wouldn't be the only one or executive producer Bob told me this morning. He too thinks that it will win. Chloe Melas, thank you.

MELAS: Thank you.

SOLOMON: Alright, let's get one more check of the markets on an unusual day of trade so far on Wall Street. So, U.S. stocks are mostly lower. You can

see the Dow is off about 97 points, but lots of confusion in the opening minutes of trade.

Many stocks on the New York Stock Exchange were halted some 80 stocks and all no word yet on exactly what happened. We'll continue to follow it. And

the meantime that is it for the show today. I am Rahel Solomon. "Connect the World" is next.

(COMMERCIAL BREAK)

[10:00:00]

END