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First Move with Julia Chatterley
Fed Expected to Deploy Eighth Straight Rate Hike; Netanyahu: People get "Hung up" on Peace with Palestinians; Fed Chair Powell could Remain Hawkish during News Conference; Biden, McCarthy to Meet to Discuss National Debt; Inside the Rebel Forces Fighting Myanmar's Military Junta; Tiny Missing Radioactive Capsules Found in Australia. Aired 9-10a ET
Aired February 01, 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)
ZAIN ASHER, CNN HOST, FIRST MOVE: A warm welcome to "First Move", I'm Zain Asher in for Julia Chatterley so good to have you with us. Just ahead on
today's show, focus on the Fed U.S. Central Bank is out with a closely watched our interest rate decision later on today market hoping for signs
of an upcoming rate hike pause.
Plus, debt ceiling dealing, it was President Biden and House Speaker Kevin McCarthy sitting down to discuss raising the debt limit. It is a high
stakes political battle likely to drag on for months it can they actually agree on anything today. We'll break it down for you later on in the show.
As markets brace for a busy day in Washington, it's looking like a lower open pretty much across the board as Wall Street kicks off. Yes, it is
February 1st by the way, yes, Wall Street kicking off a new trading month. Europe however, in the green, with new numbers showing Eurozone inflation
falling for a third straight month.
Just released data in the U.S. shows that private U.S. employers adding a weaker than expected 106,000 jobs last month Wall Street was expecting a
rise of almost 200,000 jobs, bad weather, largely to blame and ADP, the company that put out the report says that the job market does remain solid.
We will be having an all-inclusive U.S. jobs report later on this week coming up on Friday. One thing is for certain though; the Federal Reserve
is surely watching all of these data points very, very closely indeed. Let's bring in Christine Romans talk about all things Fed.
So we have seen I mean I've lost track now. But I believe about seven or eight rate increases just between last year. And in terms of what's coming
up to date, we know that it's going to be a much smaller rate high. What is going to be the reaction to that? Do you think, Christine?
CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: I mean, look, the consensus is that we're heading into a new phase here and that inflation
numbers are showing signs of moderating and that wage growth is showing signs of moderating and the job market may be slowing just a tiny bit still
strong.
But slowing just a tiny bit that shows the Feds work has been working its way through the economy. And the consensus is 25 basis points later today.
Listen to the Chief Economist of Wells Fargo.
(BEGIN VIDEO CLIP)
JAY BRYSON, MANAGING DIRECTOR & CHIEF ECONOMIST OF WELLS FARGO: Yes, the Fed is ratcheting it back, no longer no need to go 75 basis points or even
50 anymore. They're kind of at the fine tuning stages of their tightening cycle. And so yes, we expect them to go 25 basis points today.
(END VIDEO CLIP)
ROMANS: The fine tuning stages as we wait for that wall of tightening those seven rate increases, we've already seen working their way through the
economy. It's interesting that ADP number from just an hour ago, lighter than Wall Street forecasts.
There are some hopes, believe it or not that moderating job gains in a couple of days would send the right signal to the Fed. That it's doing the
right thing, and that even if there is a recession this year Zain, it would be mild because you do have the backdrop of a strong economy and still a
solid labor market.
ASHER: And the key here, Christine is not just what Jerome Powell does in terms of interest rate hikes. I mean, 25 basis points you mentioned that is
the consensus, but it's also what he says I mean, people are going to be hanging on to every single word looking for clues about the overall health
of the U.S. economy.
ROMANS: Yes and already, you've got people wondering if the Fed has gone too far. And they might have to turn around, pause for a period of time and
then turn around and start taking some of those rate hikes back. Certainly, that's something that has been shared in Wall Street in January.
And then what happens beyond I mean, if 2022 was a transition year and 2023, you face the risk, the risk of a mild recession, at worst, but also
you could see a soft landing and what how do we set up for 2024 so all of this very, I'm going to tell you last year and the year before we're almost
impossible for economic forecasters to get right.
And so they're a little timid in 2023 following the Fed here honestly, just following the Fed hanging on Jerome Powell is every word and try to figure
out whether you get a soft landing or whether you get a mild recession.
ASHER: Well, we shall see what happens in 2030 today, right Christine Romans live for us there, thank you so much. Alright, shares of SNAP
sinking in pre-market trading following its fourth quarter earnings report.
[09:05:00]
ASHER: This Snapchat parent posted a net loss of almost $300 million. It also warned that revenue in the current quarter is expected to drop. Paul R
LA Monica joins us live with all of this. Paul, not a great day so far for Snapchat at all or snap rather the parent company blaming they're blaming a
slowing economy and that is really slashing their digital ad budgets just walk us through that.
PAUL R. LA MONICA, CNN REPORTER: Yes, exactly Zain, it seems like, as you know, Christine was talking about with you just a few moments ago,
recession, worries probably are already here and hating advertisers. They are not spending as much on social media platforms like Snapchat. And that
is a big problem for the company, the company saying that revenue down so far in this quarter.
And they expect a drop, when all is said and done when the first quarter officially ends in March. And that is a problem. Snapchat has struggled to
be consistently profitable. They weren't in this quarter. And they obviously face a lot of competition TikTok whether or not it gets banned,
is of course a major competitor.
But also from larger social media companies you've got Alphabet, which owns Google, has YouTube shorts, you know, Meta on Facebook, Instagram reel so
Snapchat facing many challenges beyond a slowing economy and digital ad sales dropping.
ASHER: Another company that's struggling right now is of course Intel, their CEO essentially agreeing to a 25 percent pay cut. And actually, it's
not just the CEO, because there are other executives within the company that have to contend with pay cuts of 15 percent some people 5 percent.
And it's all because we're seeing excess supply in terms of chip manufacturers. And also this this real sort of drop in demand when it comes
to PCs and computers just walk us through it.
MONICA: Yes, Intel obviously had a disastrous quarter when they reported their most recent results. And now executives and other employees are
paying the price with these cuts in pay. It doesn't sound like it's going to be hitting the hourly workers though.
But with Intel, they don't have as much diversification in the chip market as their rival AMD. AMD reported earnings last night that topped forecast
saying and even though AMD mentioned the same weakness in PCs and gaming. They have a big data center server business that is actually doing really
well that helped bolster their results. Intel not doing nearly as well not as diverse as AMD which has been rapidly gaining market share and ground
against its larger rival.
ASHER: Paul La Monica live for us there, thank you so much. But Ukraine is brace for what could be a maximum escalation in the war. The warning comes
from a top Ukrainian Security Official he told Sky News that no it could happen within weeks following recent changes in Russian activity at sea.
And in the meantime, anti-corruption searches have been launched across Ukraine. The State Bureau of Investigation said it found cash, luxury
watches and cars at the residence of the head of the Kyiv tax authority. Scott McLean is following all of this from our London newsroom.
I think was really come to light over the past year and actually even beyond just the past year is really Ukraine's struggle against corruption
its war on corruption within its own borders just walk us through that.
SCOTT MCLEAN, CNN CORRESPONDENT: Yes, pretty worried. Ukraine certainly was one of the most corrupt countries in Europe really struggling with this
problem and certainly hampering its development as a country as well. And President Zelenskyy seemed to telegraph this latest crackdown on corruption
by promising that reforms were coming to make the country more effective and more transparent.
It also comes after a series of crackdowns firings and resignations of some top high level officials last month over corruption allegations and oddly
enough, just two days before a Ukraine EU summit scheduled to take place in Kyiv on Friday. So these latest crackdown includes searches of the state
tax service.
The dismissal of the entire management team of the customs agency and notices of suspicion were also served to several officials in the Defense
Department. Now in announcing the raids the majority leader in the Ukrainian Parliament said look, his country is going to change and if
everyone's not on board with those changes, then the state is there to kind of help them along.
So one of the raids was on the as you mentioned the head of the tax authority in Kyiv. Accused essentially of selective enforcement of taxes
and looking the other way on about 1.2 billion U.S. dollars in unpaid taxes and as you saw their officials found at in searches of his home and his
office, cash totaling some $175,000, luxury cars, and luxury watches.
[09:10:00]
MCLEAN: CNN has also attempted to reach out for common to this individual. Another one of the raids actually related to the helicopter crash that took
place last month killing 14 people including the then Interior Minister. This raid was on the property of the Former Interior Minister who was in
the job back in 2018.
When that fleet of helicopters was actually purchased from France, he denies there was any wrongdoing saying that look, those contracts were
vetted, approved by parliament and that everything was on above board. Investigators though at the time Zain, said that look, they are going to
try to find every or any possible cause of this crash from everything from pilot error to a technical malfunction to sabotage.
ASHER: I just want to turn now to the sort of expected maximum escalation that Russia is about to impose on Ukraine. I mean, this is coming at a
pivotal point in this war. You know, we know that obviously, the Ukrainians are going to be getting the Leopard 2 tanks, for example.
And those will be crucial, but it's going to take some time for the tanks to arrive, but also for Ukrainians actually be trained on this type of
weaponry. Just explain what happens in the meantime?
MCLEAN: Yes, so pretty much everything that Ukraine is asking will take a while to actually reach the front lines. The Patriot battery systems
require some extensive training to get those in place plus the tanks which are all coming from 12 different countries will all need people to be
trained on those as well before they're on the front lines.
They're also now asking for fighter jets, even long range missiles, even if they were to be given fighter jets, and there's no indication that they
will. The training on those could take some six months. But officials in the meantime are saying look, this maximum escalation campaign that they're
predicting the Russians are going to go ahead with is going to come in the next two or three months.
They're saying the most pivotal battles in this war will be fought in that timeline, and that they're even prepared for something that happen in the
next two or three weeks. And one official, one defense official in the south of the country said that some of the evidence for this is actually
found not just on land, but in the Black Sea, saying that there is intelligence that missile carriers in the Black Sea are moving around in
unusual ways or unusual patterns.
And there's also aircraft activity that suggests that the Russians are trying to coordinate their air force with some of their naval activities as
well in preparation for this expected spring offensive, Zain.
ASHER: Right Scott McLean, live for us there, thank you so much. Right in Israel, Prime Minister Benjamin Netanyahu saying that he will prioritize
peace with Arab neighbors first, before pursuing talks with the Palestinians. He spoke to CNN's Jake Tapper in an exclusive interview.
(BEGIN VIDEO CLIP)
BENJAMIN NETANYAHU, PRIME MINISTER OF ISRAEL: I think we can get hung up on this. And we have in the past, people said, you know, unless you resolve
this issue, and unless you have peace with the Palestinians, you're not going to have a broader peace with the Arab world. So for 25 years, the
Palestinians who don't want peace with Israel want to see a peace without Israel, who don't want to stay next to as well but a state instead of
Israel.
They had an effective veto on Israel's expansion of the peace circle of peace around it. I went around them; there is a formula for peace. But my
view is because of the fact that the continuing the persistent Palestinian refusal, which goes back a century to recognize the Jewish state and nation
state for the Jewish people in any boundary, that persistent refusal persists.
If we wait for them, we're not going to have peace. People said you have to work your way outside in first, inside out first peace with the
Palestinians peace where they are? Well, I think realistically, it's going to be the other way around.
If we make peace with Saudi Arabia depends on the Saudi leadership and bring effectively the Arab-Israeli conflict to an end? I think we'll circle
back to the Palestinians and get a workable peace with the Palestinians. I think that's possible and I think that's the way to go.
(END VIDEO CLIP)
ASHER: Nic Robertson joins us live now from Jerusalem. So like, how realistic is that and this idea that Latinos talking about? You know, sort
of changing the peace process and going from outside in trying to make peace with Saudi Arabia? Obviously, they share a common enemy in terms of
Iran, making peace with the Saudis first, and then trying to get peace with the Palestinians. How realistic is that?
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Well, it's a couple of things. I was in Ramallah yesterday talking to Palestinians on the street
and well experienced Palestinian Diplomats. And a number of people pointed out to us, they said, look, these Abraham Accords, their relationship, the
new relationship that Israel struck with the UAE, with Qatar with some other regional Arab powers is a relationship between leaders.
They pointed to the World Cup and said look at the World Cup. Supporters of Arab countries did not want to be joining in poaching and fun with Israel
supporters there. So this they say a point to the fact that the leaders might have a rapprochement with leadership in Israel.
[09:15:00]
ROBERTSON: But the people level on the street the popular level it's not there. Now these countries that we're talking about UAE they're not
popularly elected governments. So perhaps it doesn't really matter, Saudi Arabia is the same. But the viewers in Saudi Arabia are that if there is a
deal to be done with Israel, it needs to be done with a leader in Israel who can deliver on what the Saudis want.
And they believe, and they feel that they have a high price to ask, because the King is a Custodian to Two Holy Mosques, or two holiest places in
Islam. And that gives them a very important standing in the Islamic world. And they don't feel at the moment the Saudis don't feel or don't appear to
feel that Benjamin Netanyahu, with his far right government is a leader that they can actually do a deal with who can deliver what they want.
Now we're talking about the King of Saudi Arabia, King Salman, his son, the Crown Prince Mohammed bin Salman, the heir apparent is may feel enabled and
emboldened because he does move quickly on issues to make that rapprochement. But it's not there at the moment. And the fundamental thing
that I think that the Palestinians read into what Benjamin Netanyahu says when he talks about a workable relationship.
That's daylight between what the U.S. calls and they call a two state solution, and the world sees that as a two state solution. And that's also
daylight between what Secretary Blinken says standing next to Prime Minister Netanyahu, when he said that way of growing the circle of peace is
not a substitute for real progress between Palestinians and Israelis.
Meaning that's not the way to go, that was a diplomatic language around it. So there are a number of real potential flaws in this high wire act that
Prime Minister Netanyahu is carefully walking.
ASHER: Right, Nic Robertson, thank you so much. We appreciate it. I want to turn now to Memphis, Tennessee, where the community and the family of Tyre
Nichols is preparing to say goodbye. In a few hours, Tyre Nichols will be laid to rest. U.S. Vice President Kamala Harris will attend the funeral
service. A 29-year-old was horrifically beaten to death last month by police after a traffic stock. CNN's Ryan Young has more.
(BEGIN VIDEOTAPE)
RYAN YOUNG, CNN NATIONAL CORRESPONDENT (voice over): Tyre Nichols to be laid to rest later this morning. His funeral will be held at the
Mississippi Boulevard Christian Church in Memphis. Last night Nichols family was joined by national clergy and Reverend Al Sharpton at the Mason
Temple. The same site Dr. Martin Luther King Jr. gave his last speech. I've been to the mountaintop the day before his assassination and April 1968.
UNIDENTIFIED MALE: The need for justice has brought us here again.
YOUNG (voice over): Sharpton who is scheduled to give the eulogy at Nichols funeral call for police reform.
AL SHARPTON, AMERICAN CIVIL RIGHTS ACTIVIST: We are going to continue to fight this fight around police brutality and killing. Until we get federal
laws changed. What happened to Tyre is a disgrace to this country. We all Tyre now and we all going to stand up with this family.
YOUNG (voice over): This as we are learning more videos are set to be released from the investigation in Nichols death. And we are seeing for the
first time. A picture of the initial police report filed just hours after the traffic stop that says Nichols was pulled over for reckless driving
report contradicts police video released last week.
It states Nichols started to fight with officers and says he was grabbing for Detective Martin's gun, further stating he began actively resisting and
pulling the duty belts and grabbing Officer Smith by the vest. The report list one of the officers as a victim. The report does not mention the
Officers punching and kicking Nichols. Officers are seen discussing this at the scene.
Additionally, personnel files obtained by CNN show that several of the Memphis cops charged in connection to Tyre Nichols death have histories of
minor department violations, including Emmitt Martin, who joined the Memphis Police Department in 2018 and had two separate suspensions. Nichols
family wants these officers held accountable.
UNIDENTIFIED MALE: Keep fighting for justice for our son and my family.
UNIDENTIFIED MALE: I've been fighting my whole life in one fight that I need to be at I wasn't here. At the end of the day, I'm never going to
forgive my brother.
YOUNG (voice over): Ryan Young CNN, Memphis, Tennessee.
(END VIDEOTAPE)
ASHER: Alright, still to come here Powell on the prowl, U.S. Fed Chair set to deliver a brand new inflation prognosis later today. Now prices falling
fast enough for Central Bank pivot. We'll discuss with Former Fed Economist Julia Coronado next.
[09:20:00]
(COMMERCIAL BREAK)
ASHER: From January jubilation to February hesitation U.S. futures remain on track from mostly lower open on this first day of trading of the month.
All of this ahead of a challenging few days for global investors over the next 24 hours you've got the U.S. Federal Reserve the Bank of England and
the European Central Bank all expected to raise borrowing costs yet again.
The heavy hitters of the tech world are set to release Q4 results on Thursday. And on Friday, the U.S. releases its first look at how the U.S.
jobs market is holding up in the New Year? U.S. stocks coming off that best January gains since 2019 and NASDAQ having its strongest start to a new
year in over 20 years soaring almost 11 percent growth stocks.
That were hit hard last year have come roaring back on hopes that the U.S. Federal Reserve is close to pretty much wrapping up its rate hike campaign.
U.S. Central Bank is expected to raise rates by a quarter of a percent today. And while markets hope that the worst is over, the Feds future path
is far from sight.
And let's discuss all of this with Julia Coronado, the Founder and President of MacroPolicy Perspectives. Julia, thank you so much for being
with us. So I think the general consensus is 25 basis points today in terms of the Fed rate hike. So does that mean that the days of 75 basis points
are those days firmly, firmly in the --?
JULIA CORONADO, FOUNDER & PRESIDENT OF MACROPOLICY PERSPECTIVES: Yes, very, very likely the days of 75 basis point or even 50 basis point rate hikes
are probably behind us. The Fed is now sort of feeling its way to what level of rates will keep the economy cooled off and inflation pressures
moderating without tipping it into a recession. So that's a more delicate task and judgment call.
ASHER: So in terms of what happens today, I mean, obviously, everybody's going to be focused on the headline number, but also in terms of what
Jerome Powell actually says, what he says about the state of the U.S. economy and what he really says about the path forward?
CORONADO: Right, yes, so I think he's going to be cautiously optimistic the news on inflation and inflation pressures, including things like wage
growth for the United States have been very good lately. But we've had about three months of good news and they really need to see more evidence
and another three months that confirms that these trends are intact, because they haven't been broad based across the world.
[09:25:00]
CORONADO: The inflation pressures in Europe for example, are still a little bit firmer. So they're going to be cautiously optimistic. And then even
when they feel like they've reached the right level of interest rates, which let's say that's 50 basis points or 75 basis points from where we are
right now, their plan is to hold it there.
So, you know, market optimism needs to sort of take that into account rates are going to stay high for a while, because the Fed doesn't want to repeat
the mistake of the 70s were these things called victory too early. And those pressures just came right back?
ASHER: So looking into your crystal ball and Julia, I mean, how, at what point this year, would you expect the Fed to completely put a pause, a
pause and rate hike increases?
CORONADO: So I do expect that they will pause after the next rate hike. So they're going to take another 25 basis points in March, but by May, which
will be the following meeting. They will have enough evidence of cooling labor market conditions, further cooling and inflation pressures that they
can sort of, you know, take a pause and look around and try to then focus on balancing the other risk, which is that they do too much and tip the
economy into a recession.
ASHER: Right, because it's all about that soft landing. I mean, - has talked about that. That's the goal here. So we've got the jobs report
coming up on Friday. I mean, that's a key. That's a key macro-economic data point. What are they going to be looking for? And how crucial is this
particular jobs report, do you think?
CORONADO: Every jobs report is very important right now, what we've seen is a great deal of resiliency and employment. So we haven't seen broad based
job losses, filing for unemployment insurance remains near record lows, the unemployment rate remains very low. But what we have seen is wage growth,
which had soared during the pandemic, really start to cool off, and we got another data print confirming that yesterday.
So if we can cool off wage growth and inflation and bring that down, we don't necessarily need to engineer higher unemployment. Some people call
that the immaculate disinflation. But the signs the data have been very hopeful on that front lately, we've gotten again, resilient employment and
moderating wage growth and inflation. It's it that's why the market is it has been rallying; it looks very soft landing like.
ASHER: So in terms of what the Fed actually needs to see going forward. I mean, you mentioned three months was of positive news on the inflation
month, you said that's not really enough time, we need to see a few more months of that. But then on top of that, you need to see that the labor
market is calling as well, what else? What else is the Fed officials need to see before you know, saying that, you know, we can temporarily pause
rate hikes?
CORONADO: Right yes, so one thing is on wage growth, they kind of have a number in mind, which is somewhere in the neighborhood of 3.5 percent is
consistent with their 2 percent inflation target. So we've seen wage growth sort of moderate to around 4 percent. So they'd like to see that keep
moderating that's a specific number.
And then the other things that they're looking at, we've started to see a lot of which is interest sensitive sectors, cooling off sectors that were
perhaps overvalued, in financial markets correcting, you know, sort of the froth of the you know, sort of - growth period coming out. So we've seen
housing correct, we've seen house prices come down and start to come down from an astronomical appreciation during the pandemic that needs to
continue.
House prices are sort of out of sync with a higher level of interest rates. So you know, interest sensitive sectors continuing to stay subdued and
moderate and move back into alignment with sort of economic fundamentals, if you will, housing affordability right now in the U.S. has gone a bit
crazy. House price correction is actually good news, in a lot of ways, from a sort of structural standpoint.
ASHER: Alright, well, we'll see what happens that this afternoon Julia Coronado, live for us there, thank you so much, appreciate that.
CORONADO: My pleasure.
ASHER: All right, still to come here on "First Move", President Biden comes face to face with the Republican Kevin McCarthy the crucial debt talks that
story next.
(COMMERCIAL BREAK)
[09:30:00]
ASHER: Welcome back to "First Move"! The curtain going up on a new month of trading on Wall Street made it past January everyone. This first day of
February U.S. stocks are trading mostly lower. Bit of nervousness ahead of the Fed's interest rate decision later on today in about five hours from
now.
We'll find out what it is. The stocks in the news include Adani enterprises down 26 percent today and almost 50 percent year-to-date shares that the
Indian conglomerate continuing to plunge after a short seller reported a legit financial fraud inside Adani Empire, which the firm is of course,
strongly denying.
Losses have become so great that Gautam Adani is now no longer the richest man in Asia. He's also dropped off the list of the world's 10 richest
people. Also today shares of parent company of Facebook Meta currently are trading lower ahead of closely watched earnings that are out later today.
Social media firms Snap trading sharply lower after reporting a Q4 revenue miss and a weak forecast as well. And Peloton shares higher. The badly
beaten down exercise bike firm hailing what it calls a turning point for the company as losses narrow.
The stakes are high but expectations are low for today's talks about U.S. debt ceiling between President Biden and House Speaker Kevin McCarthy. Joe
Biden has been warning Republicans not to use the issue as leverage to negotiate spending cuts. The national debt currently stands at more than a
$31 trillion. If the debt ceiling is not raised the U.S. risks potentially devastating financial default.
MJ Lee is at the White House where today's talks are taking place. Just walk us through MJ how on earth the stalemate gets resolved and what
realistically - realistically what do we actually expect to come out of this meeting between these two men?
MJ LEE, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, I think you put it pretty perfectly when you said that the stakes are really high, but the
expectations are really low. You know, it may even be too generous to call this meeting this afternoon at the White House a negotiation even though
this is just significant.
And that it's the first time that the two men are meeting face to face in the new session of Congress. Look where things stand right now is that the
White House has consistently said that on the issue of raising the debt ceiling we are absolutely not going to negotiate.
There are no concessions we are going to make no strings are going to be attached. Whereas for Kevin McCarthy the House Speaker here he definitely
wants to negotiate. He has been fielding requests and ideas from his colleagues in the House.
[09:35:00]
LEE: And we know that some of those very members have been really pressing him to get deep spending cuts in return for agreeing to raise the debt
ceiling. So the two sides really go into this afternoon, being very far apart. And I think that's why the expectations for at least this first
meeting are pretty low.
And we've gotten indication from our reporting on the Hill, that Kevin McCarthy is actually unlikely to even put a specific proposal on the table
this afternoon that he basically just wants to figure out is the President willing to negotiate?
Now there was this interesting moment last night that I just wanted to point you to where President Biden was speaking at a fundraiser in New York
City. And he started talking about Kevin McCarthy in this meeting this gathering.
And he basically was talking about some of the things that he had to do to actually become speaker, obviously, you'll remember a couple of weeks ago,
there was a lot of drama, as we were all not sure if he would actually successfully become the speaker.
And in order to clinch that job, he had to make some serious concessions political concessions to win over some of his colleagues. And what the
President said was that those commitments that McCarthy made to his colleagues were just absolutely off the wall.
Those were his words. And then he called to a - returned to or looked at a Democratic colleague of his Chuck Schumer, who is a New York Senator. And
then he said to him, Chuck, I can't imagine you making one of those commitments.
So it was just this sort of interesting and colorful moment where we got a little bit of insight into how President Biden has been viewing Kevin
McCarthy in his new role? And sort of giving him a little job right? Saying to him, look, I know that you are the House Speaker right now but I also
happen to know that you are pretty compromised in your new role.
Now, the last thing I will say too is early June is sort of the timeline that we are looking at, and that's when we have our calendar circled.
Because that's when the U.S. Treasury Department has said it can continue making these sorts of so called extraordinary measures taking these steps
to prevent the government from defaulting.
And really in Washington, D.C. a couple of months is a really long time for both sides of the negotiations to drag their feet, and this could end up
being a very protracted situation.
CHATTERLEY: Yes, the general expectation is that we eventually will see some kind of deal but it will take months. MJ Lee, live for us thank you.
All right, nearly half a million workers are out on strike in the UK today demanding better pay. The strikes will close schools cancel university
classes and bring much of Britain's rail network to standstill in the biggest day of walkout in years.
The National Education Union estimates that 300,000 teachers have taken to picket lines saying a "Toxic combination of overworked and underpaid has
forced teachers to take action". UK Prime Minister Rishi Sunak says that teachers are already getting paid more.
(BEGIN VIDEO CLIP)
RISHI SUNAK, UK PRIME MINISTER: When it comes to teachers, we've actually given teachers the highest pay rise in 30 years, includes a 9 percent pay
rise for newly qualified teachers and record investment in their training and development.
I am clear that our children's education is precious, and they deserve to be in school today being taught. And actually the party opposite would do
well to say that the strikes are wrong, and we should be backing our schoolchildren.
(END VIDEO CLIP)
ASHER: Nada Bashir joins us live now near Downing Street. So clearly Rishi Sunak not even coming close to backing down on this but the fact is Nada
inflation has really sort of wreaked havoc on people's real wages in terms of their take home pay.
I mean, everything has gone up, especially food items, but it's really basic goods, where we're seeing major price increases while wages are
actually stored. A lot of people say that, you know, that's, that's really not fair, something needs to be done.
NADA BASHIR, CNN REPORTER: Yes, absolutely. And of course, the country is facing a worsening cost of living crisis. And anecdotally, we've heard from
teachers from nurses and other public sector workers who say they simply can't afford those basic - struggling to pay rent struggling to afford
their basic groceries.
And of course, the disruption that we're seeing now as a result of these strikes, they say is really a result of them reaching the very end of their
tether when it comes to being able to afford those basic goods. They say this was a necessary measure in order to put that pressure on the
government because of course they in these negotiations between the trade unions and the government have been ongoing for weeks now and they are
still really at a standoff.
It appears as though those negotiations have stalled. In fact, the trade union representing rail workers says that the negotiations are going
backwards and the government really not budging on their position.
[09:40:00]
BASHIR: And of course today we have seen hundreds of thousands taking part in that strike. And I have to say, just in the last half hour this street
here in white holding the center of government here in London, it has cleared up but just a little while ago.
It was full of thousands of people protesting many of them public sector workers themselves, protesting against the government demanding better pay
better working conditions. They say this is necessary because while this may cause disruption today, this week, it is those shortfalls that they are
facing that are causing long term disruption within schools within the NHS National Health Service and of course, also within the transport network
Zain.
ASHER: Yes, we will see if these strikes actually make a difference? I mean it's one thing to strike under a Labor Government but under Conservative
Government, we'll see if anything really changes. Nada Bashir live for us there thank you so much.
All right, still to come here two years after a military takeover in Myanmar everyday people are taking up arms against the military junta.
We'll have an exclusive report after this.
(COMMERCIAL BREAK)
ASHER: All right, today marks two years since the military seized power in Myanmar, ousting democratically elected leader Aung San Suu Kyi. What
followed was a massive crackdown several leading pro-democracy activists excuse me were executed and some journalists were arrested. Now Myanmar is
being rocked by violence as rebel groups take on the military. Ivan Watson has a rare and exclusive report on their fight.
(BEGIN VIDEOTAPE)
IVAN WATSON, CNN CORRESPONDENT (voice over): Racing into battle images shared exclusively with CNN filmed by combat medics in Myanmar. The extract
of rebel fighter wounded in a clash last October with government forces.
Scenes from a vicious conflict raging across the heart of Southeast Asia, a war that is rarely seen by the outside world, the United Nations Special
Rapporteur on human rights in Myanmar is trying to focus international attention on the crisis.
TOM ANDREWS, U.N. SPECIAL RAPPORTEUR, MYANMAR HUMAN RIGHTS: It has been a two years of the military at war with its own people. We've seen 1.1
million people displaced. We've seen more than 28,000 homes destroyed. Thousands of people have been killed.
WATSON (voice over): Before the war this group of medics included a high school student a lab technician and a hospital nurse.
WATSON (on camera): Why are you guys doing this? Why are you risking your lives right now?
[09:45:00]
ROSALIN, COMBAT MEDIC: If we don't fight, then we know we won't get democracy and that is what we want.
WATSON (voice over): On February 1st 2021, Myanmar's top Army General announced a military coup, imposing martial law and throwing members of the
elected government in jail. A deadly crackdown crushed anti-coup protests, forcing the opposition underground and into the jungle.
Armed rebel groups calling themselves Peoples' Defense Forces sprouted up across the country, allying themselves with armed ethnic militias that have
battled the military for decades. No foreign country publicly offers them support.
So these fighters armed themselves using ammunition produced in a jungle workshop. Homemade rounds stored in a refrigerator.
UNIDENTIFIED MALE: This is for Andrew.
WATSON (voice over): He shows drone bombs, mortar rounds and something he calls rifle grenades tested nearby. Compare these makeshift weapons to the
military, boasting an arsenal that includes tanks and warplanes. One of the military's deadliest air strikes on record involved what was promoted as a
local golf tournament last October.
The competition and subsequent concert organized by an ethnic opposition group called "The Kachin Independence Organization". Survivors say a famous
local singer named Aura Lee was about to perform his second song of the night when an airstrike demolished the building, throwing this local
businessman who doesn't want to be identified for his safety up into the air.
People who had been happily greeting each other clapping and drinking wine were now corpses he says. They were in pieces. It was horrific. Kachin
officials say the attack killed the singer and at least 67 other people.
In response to a CNN request Major General Zaw Min Tun (ph) claimed responsibility for the attack. In this letter published in the state
newspaper he called it a necessary military operation, targeting a den where enemies and terrorists were hiding, adding throughout history until
now, the military has never attacked civilians.
ANDREWS: That statement is absurd. It's ridiculous. There is clear evidence. We have video of airstrikes on villages.
WATSON (voice over): Evidence that points to a growing number of civilian casualties from a conflict with no end in sight.
ANDREWS: If it remains in the shadows of international tension. Then we are providing a death sentence to untold numbers of people.
WATSON (voice over): With no help on the horizon, the next generation has little choice but to prepare for a life at war. Ivan Watson, CNN.
(END VIDEOTAPE)
ASHER: All right, still to come here on "First Move" finding a needle in the haystack. How a tiny missing radioactive capsule was found in Australia
will explain next.
(COMMERCIAL BREAK)
[09:50:00]
ASHER: All right, major news from the world of sport today American Football Legend Tom Brady announcing in a social media video that he is
hanging up his cleats for good after 23 stellar seasons in the NFL.
You remember Brady actually did announce his retirement this time last year only to change his mind a few months later. Well, this time - quarterback
who won that seven Super Bowl rings in all says this time he is retiring forget. Andy Scholes takes a look back at his career.
(BEGIN VIDEOTAPE)
ANDY SCHOLES, CNN CORRESPONDENT (voice over): In sports, we celebrate our champions and cherish our underdogs. No athlete in history has personified
both more than Tom Brady. After starting at Michigan, his junior and senior years Brady was not a highly touted draft prospect so much so that he had a
professional resume ready to go into the business world.
But he was selected in the sixth round 199th overall by the New England Patriots in 2000. Brady's legend was born in his second season as he led a
fourth quarter comeback to beat the heavily favored rams delivering the Patriots their first Super Bowl title.
UNIDENTIFIED MALE: It's just really hadn't even sunk in.
SCHOLES (voice over): Brady win back to back Super Bowls and 03' and 04' giving him three titles in his first five seasons, but he would then go an
entire decade without winning another before recapturing the magic. In 2014 Brady leading another comeback to beat the Seahawks in dramatic fashion for
his fourth Super Bowl ring.
His partnership with Head Coach Bill Belichick resulted in six Super Bowl titles in New England. But there were challenges along the way. In 2015 we
had the flake game where Brady and some of the Patriots staff were accused of letting air out of football so he could grip the ball better.
An investigation found Brady was at least generally aware of what was going on and he refused to turn over his texts and emails. He was suspended for
four games by the NFL for his involvement.
UNIDENTIFIED MALE: Is Tom Brady a cheater?
TOM BRADY, AMERICAN FOOTBALL QUARTERBACK: I don't believe so. I mean, I feel like I've always played within the rules. I would never do anything to
break the rules.
SCHOLES (voice over): Brady would end up serving that suspension to start the 2016 NFL season. By the end of that season Brady led the greatest
comeback in Super Bowl history leading the Patriots back from down 28 to 3 to beat the Falcons. No matter the score. No matter the game. Brady always
proves it was never over while he was on the field.
BRADY: When you're losing late in the game. I mean, what's the worst thing that can happen? You're already losing. So I always look at it as you know
a great opportunity. And I think man if we you come back and win this. This is what - this is what people are going to remembered.
SCHOLES (voice over): In 2020 Brady moved on from the Patriots signing with the Tampa Bay Bucks and he would further cement his legacy outdueling
Patrick Mahomes at age 43 to win Super Bowl 55. Brady retired and then unretired before the 2022 season saying he still had the desire to play,
but that faded after just one season.
At 45 years old Brady leaves the game with tons of records including the most passing yards and touchdowns. His Seven Super Bowl titles are more
than any other team in NFL history. For 23 years he gave sports fan so many amazing moments. And that's why when people discuss the best athletes ever
for many Tom Brady is at the top of the list.
(END VIDEOTAPE)
ASHER: What an incredible, incredible career that man has had? All right, in Australia a tiny but very dangerous radioactive capsule has now been
found after days of intense search. Crews search an area roughly the length of the United Kingdom.
Marc Stewart joins us live now with details. So Marc we're talking about crews essentially searching 1400 kilometers of highway to find something
that small or the same size the 10 cent coin it is tiny?
MARC STEWART, CNN CORRESPONDENT: Exactly and since this is a business show let's make a money reference. I mean, this is--
ASHER: I can't even see that. It is so tiny I cannot even see it.
STEWART: Yes, I mean, it's very similar to a U.S. done. But I mean, that's what we're talking about this capsule is that small but it's a big part of
the buying process. So let me walk you through this because there's a history here there's a timeline.
The capsule was discovered six days after authorities realized it went missing, likely falling off a truck. Eventually it was found off the side
of a road by crews they were using radiation detection equipment, and it was found not far from the mine suggesting it fell off the truck soon after
it left.
[09:55:00]
STEWART: That was back on January 12th. But this was a potential search that could have been very enormous. When you talked about some of the size
references I mean, here's another one. This is a distance longer than the California coastline big picture.
Eventually though it was found a perimeter was set up and so now the immediate goal Zain is to transport it in the lead container to health
department facility in Perth. But this was concerning because human exposure to radiation can cause skin burns.
There's radiation sickness, even a cancer risk in some cases. And as we reported yesterday, authorities felt the chance of finding this was slim.
Now they have to determine they have to figure this out and determine how this event happened in the first place?
ASHER: Yes, I'm shocked - I'm actually shocked that I actually managed to find it. It is so tiny as you pointed out with that coin, but I'm sure
there will be some accountability but technically it was an accident.
It did fall off the back of a truck but you know there will be an investigation. I'm guessing. But, Marc Stewart we have to leave it there.
Thank you so much. That is it for the show. I'm Zain Asher appreciate you joining us.
(COMMERCIAL BREAK)
[10:00:00]
END
