Return to Transcripts main page
First Move with Julia Chatterley
China Completes Military Drills Around Taiwan; Papers Show U.S. Penetration of Russian Military, Wagner; Ives: Our Stance on Tech Stocks Remain Firm, Bullish; Booking CEO: People Saved up, now they Want to Spend it; Northern Ireland Marks 25th Anniversary of Peace Accord; Spain's Jon Rahm Captures First Career Masters Title. Aired 9-10a ET
Aired April 10, 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)
JULIA CHATTERLEY, CNNI HOST: A warm welcome to "First Move", great to have you with us on this Easter Monday and exciting and an exceptional show for
you as always sorry including a diplomatic scramble U.S. Officials searching for the source of a highly classified document leak exposing
sensitive information about Ukraine's Military shortfalls, and more.
We'll have a live report from Kyiv and the Pentagon. Plus, hardball Beijing, China conducting a third straight day of military drills and war
simulations around Taiwan or this is French President Macron stairs up a transatlantic tussle, saying Europe should avoid getting dragged into the
dispute.
We're live in Beijing for the latest fair too and sunny side up. Washington Beijing tensions not stopping Tesla's solar and EV ambitions in China, Elon
Musk announcing a major new Shanghai battery factory investment on Sunday. We'll discuss that plus other tech trends with Dan Ives of Wedbush
Security.
Tech, of course, a key part of many nest eggs but a soft bold start, as you can see to the U.S. trading session. It seems though with Wall Street
futures lower as you can see and much of Europe still on holiday so liquidity today will be thin. Investors also getting their first chance to
react to Friday's solid U.S. jobs report.
That data of course strong enough to keep another Federal Reserve interest rate hike in play the other data's matter too, investor walking on
eggshells in the meantime, ahead of important inflation data out later this week and too the start of first quarter earnings season.
We've got major U.S. banks beginning reporting results on Friday of this week what U.S. regional banks say about profit pressures and the size of
their depositor base will be key in the weeks ahead also especially given new data from the Federal Reserve showing U.S. bank lending plunging by the
most on record following the Silicon Valley Bank collapse.
The numbers playing into fears that U.S. economic growth will slow as financial institutions pull back on providing credit. Let's to get to you
as always, but we do begin the show with the latest on the China-Taiwan tensions, "ready for combat". The Chinese Military says it's primed to
fight after carrying out three days of air and sea exercises under warfare conditions.
The drills were staged just days after Taiwan's President angered Beijing by visiting the United States and meeting Senior U.S. politicians. Selina
Wang joins us now on this posturing of military power is not unexpected, I think in light of what we've seen in recent days. But I do think we have to
put it in perspective once again, Selina, compared to what we saw, after Nancy Pelosi's visit to Taiwan in August of last year. This does feel on a
relative basis more muted.
SELINA WANG, CNN CORRESPONDENT: So that's right, Julia, most experts are saying that this round of military drills does not quite reached the level
of what happened after Then U.S. House Speaker Nancy Pelosi had gone to Taiwan. Last summer China in reaction launched these massive military
drills that surrounded the island and for the first time even fired missiles over Taiwan.
So part of the reason why you're seeing relatively more restraint is because these meetings between President Tsai Ing-wen and U.S. House
Speaker Kevin McCarthy were held on U.S. soil and that was done purposefully to try and not overly provoked Beijing versus holding those
meetings actually in Taiwan.
And throughout this process over the past few weeks, Washington and Taipei have repeatedly played down that trip as just an unofficial transit stop.
Now in reaction to these three days of military drills, Taiwan's Ministry of Foreign Affairs, said "China's provocative measures have clearly
challenged the international order under my peace and stability of the Taiwan Strait and the region".
But the drills from this time and last year they are both China flexing its military might. And in both cases, they're telling the world that it has
the ability to conduct blockade and joint air and missile strikes on targets in and around Taiwan.
(BEGIN VIDEOTAPE)
WANG (voice over): China's fighter jets fly around Taiwan skies, military ships sail off its coast. China says it simulating precision attacks on key
targets in Taiwan. While Beijing has not launched any missiles, its military released this animation showing missiles fired from land, sea and
air into Taiwan to have them explode in flames.
Beijing is showing the world its fury, launching three days of military exercises around Taiwan after the island's President Tsai Ing-wen met with
U.S. House Speaker Kevin McCarthy in California.
[09:05:00]
For the first time it appears Chinese stimulated strikes with warplanes that took off from an aircraft carrier. This video shows Taiwan's Coast
Guard confronting a Chinese ship. The Taiwanese sailor says you are now seriously damaging regional peace, stability and safety.
Please turn around immediately and leave. If you keep proceeding forward, I will take eviction measures. We encounter highlighting the risks of any
miscalculation in the Taiwan Strait. Beijing sees democratically ruled Taiwan as a part of its territory that will eventually be reunified with
the Mainland.
Chinese Military said the drills are "a serious warning against the Taiwan separatist forces collusion with external forces, and unnecessary move to
defend national sovereignty". Experts say Beijing is normalizing military activity around the island. It already sets military jets and ships around
Taiwan every day.
On China's heavily censored social media, some are commenting that the drills do not go far enough. One writes, let's just take Taiwan, another
says if you're not going to attack then don't waste taxpayer money. When Then U.S. House Speaker Nancy Pelosi visited Taiwan last summer, China
responded with military drills that simulated a blockade.
For the first time China even fired missiles over the island. Experts say the military response this time is more restrained because the meeting
between Tsai and McCarthy was held on American soil to avoid provoking Beijing. Both Washington and Taipei have called the visit just an ordinary
transit stop but the symbolism was undeniable.
TSAI ING-WEN, PRESIDENT OF TAIWAN: We're stronger when we are together.
WANG (voice over): With Washington support for Taipei only growing aging's anger will only intensify.
(END VIDEOTAPE)
WANG: And Julia, here also interesting is that on China's third day of military exercises around Taiwan, the U.S. Navy sent a destroyer close to a
contested island in the South China Sea. Beijing claimed the island is theirs and called the move illegal whereas the U.S. says it can operate
wherever international law allows.
So it's not just Taiwan, the South China Sea is another source of tensions between the U.S. and China. Also interesting is the timing of these
military drills around Taiwan. China started them after President Tsai Ing- wen already returned to Taiwan.
Some analysts are saying that some of the timing has to do with the fact that China wanted to wait until several global leaders had left China,
Beijing was hosting French President Emmanuel Macron as well as the EU Commission Chief and perhaps as China is trying to portray itself as this
global statesman.
As Xi Jinping is hosting many of these global leaders they wanted to restrain some of their action just a little bit so that they can uphold
that reputation, Julia.
CHATTERLEY: Selina Wang, thank you so much for that report. U.S. Officials in the meantime, doing damage control after highly classified Pentagon
documents were leaked online, with serious implications for Battlefield operations in Ukraine and beyond. As always close to President Volodymyr
Zelenskyy telling CNN Ukraine has altered some of its military plans because of the leak.
Nick Paton Walsh joins us now from Kyiv. Nick, you can imagine this scrambling going on, on all sides to understand how this information was
captured in the first place? What caused the leak? What information is real and not? It's, I think painful for everybody, particularly just days before
Ukraine was expected to launch a spring counter offensive.
NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY EDITOR: Yes, it is extraordinary and it's fascinating really to watch the different types of
response. We're seeing in different types of counterclaim Ukraine defense official today, again, suggesting that some of the information has in fact
been doctored, that's been released online.
But we still don't really have a clear idea as to who originally put it there and appears to potentially have been released in separate batches,
maybe more; it does appear that U.S. Officials are trying to get a hand on exactly how many documents indeed were placed there and of course by whom.
Now, it's important to put in context here, the kind of reactions we're seeing from various actors in all of this. The U.S. very full throated,
very open in saying these are authentic, these are deeply problematic. That's odd, I would personally say because sometimes in previous leaks,
particularly with topics as sensitive as this.
You might seek them to play down the authenticity of the documents or their relevance. We're seeing perhaps less of that. There are certainly things in
there which will make allies uncomfortable about eavesdropping on them about U.S. opinions, or information about how allies are behaving in
certain ways.
But more potently, it's very specific in certain areas about Ukraine's battle readiness about potentially parts of the terrain that might be
abused to Ukrainian this counter offensive or dependent at times on the weather. I'm standing here in torrential horizontal rain, which may be one
factor playing into all of this.
[09:10:00]
But this enormous bulk of information has suddenly emerged, firstly suggesting that certainly Russian intelligence services are deeply
penetrated by the United States. It's quite clear from these documents that the Russians don't really have particularly secure communication or
certainly isn't not as much as they would like to think.
It certainly shows at times Ukrainian force with trouble, certainly, and maybe not the great readiness, it would like to have ahead of this counter
offensive. And so yes, I think there'll be many Russian Officials looking at this an aghast, it seems how much the information the Americans do have
about them.
I'm sure there will be Ukrainians upset to see this put out debating themselves exactly how much of it is authentic? How much of it is damaging?
I have to say from reading that there was no bombshell revelation that I could see - the pun in that information that made me think it could
potentially alter the course of the war here, but certainly sensitive information as presented, which could be problematic.
And so I think what this release has certainly done is cause a very public panic in the United States about looking for the source of the leak here.
It's caused Ukrainian Officials to try and play it down as a Russian misinformation operation. But then also, it seems admit, some of this is
playing into their thinking in the weeks and days ahead, but it's certainly a shock.
It's definitely a shock to Moscow about how little confidence they have in their own communications. And that may play into their response to any
counter offensive. And I also find the timing particularly interesting given as it comes in this strange lull of activity here in Ukraine ahead of
what many are expecting to be a significant Ukrainian counter offensive, Julia.
CHATTERLEY: Yes, I couldn't agree more and to your point, no bombshell. But one has to question whether this is all the information that was gone a
truth that that's been leaked, at least stem that we can see. Nick Paton Walsh, great to have you with us! Thank you for joining us there from Kyiv.
Now, as Nick said, the obvious question now is how was that classified information accessed and released? Natasha Bertrand joins us now from the
Pentagon. Natasha, I'm sure you were listening to what Nick was saying there consternation for the Russians that then Ministry of Defense has been
penetrated the Wagner group information for them too not only spying on key allies as well, highly embarrassing for the United States.
NATASHA BERTRAND, CNN NATIONAL SECURITY REPORTER: Yes, Julia, it's already causing some friction between the U.S. and its allies. I'm sure as you saw
over the weekend; Israel had to release a statement, downplaying the intelligence that was in some of these reports.
That was sourced to the CIA that said that the Israeli Mossad, the intelligence agency, there was actually egging on protesters internally in
Israel against the government there. The Mossad having to issue a statement in response to the leak saying that they categorically deny that South
Korea as well also mentioned in these leaked intelligence reports.
Talking about the request by the U.S. for ammunition and how the South Koreans were very nervous about that they say that they're going to raise
this with Washington as well so clearly, a lot of tension now between the U.S. and its allies over this leak.
And we should note that there's even information in these documents about U.S. spying on Ukrainian President Volodymyr Zelenskyy, something that a
source close to him told me is not necessarily surprising, but still deeply frustrating that this information has been put out into the public sphere.
So now what the Pentagon has done is they have issued a referral to Justice Department to launch a criminal investigation into who may have done this
leak, which stems really it was sitting on a discord server, which is a social media platform for at least a month before anyone even noticed it.
So there are going to be a lot of questions here about why this wasn't discovered sooner how these documents that are top ranked listed as top
secret, some of them ended up on this random kind of social media platform. And also moving forward how the Pentagon will is going to stem these kinds
of leaks, because as we see from the documents, a lot of them come from the joint staff, which is the arm of the Pentagon.
That is the most senior military leadership that advises the President, a lot of these documents are intelligence documents made for their daily
briefing. So this is going to be really problematic for the U.S. moving forward in terms of maintaining not only its foreign relationships, but
also maintaining the access it has, as Nick was mentioning, into the Russian Defense Ministry, as well as the Russian mercenary organization,
Wagner group.
Really interesting details in these documents about just the level of insight and penetration the U.S. has managed to get into Russian Defense
Officials conversations as well as planning by that mercenary organization Wagner group inside Ukraine, Julia.
CHATTERLEY: Yes, and that puts lives at risk, potentially, as well. Natasha, just very quickly, are they confident that this is all the
information that was accessed and leaked? Or could there be more?
BERTRAND: There could be more Julia, they do not know at this point. Whether this is the extent of the information, there could be more
documents and it could have been out there longer than even just within the last month. That is something they're still investigating.
CHATTERLEY: Yes, Natasha Bertrand, great to have you with us. Thank you from the Pentagon there. To India now where the Dalai Lama has apologized
after a video showing him kissing a young boy triggered backlash on social media.
[09:15:00]
It happened at an event in Northern India in February. The Dalai Lama's office says His Holiness "Regrets" the incident. Vedika Sud joins us now
live from New Delhi. I think Vedika, anybody that's read the book; the book of joy with Archbishop Desmond Tutu knows that the Dalai Lama can be a
joker. But I think there's no surprise that this has caused outrage, consternation all across the internet and beyond.
VEDIKA SUD, CNN REPORTER: And severe backlash for the 14th Dalai Lama as well, Julia, people have called it outrageous. They've called it
inappropriate across social media after that clip emerge Sunday evening, local time here in India. I'm going to take you through the sequence of
events.
And I want to make it very clear that it's extremely disturbing for our viewers to actually watch that interaction between the minor boy and the
Dalai Lama in Northern India. Now this incident dates back to February this year. And what we can see in the video is the boy going up to the Dalai
Lama asking for a hug.
The Dalai Lama then calls him on stage invites him on stage and also asks him to give him a kiss on the cheek along with that hug. And the boy
obliges moments later you see the Dalai Lama then asking him to kiss him on his mouth. And then he brings in the boy's cheek, chin rather, and he
kisses the boy on the mouth.
Now this is disturbing enough and then seconds later, the Dalai Lama asks the boy to actually go ahead and also suck his tongue. This is extremely
disturbing for people across social media and otherwise, it's led to a lot of backlash, like I mentioned, because of which six weeks after this
incident, and mind you not before.
The Dalai Lama's office has now come out with a statement where they've said that the Dalai Lama regrets the incident and I'm going to read a bit
of that press statement as well. It says a video clip has been circulating that shows a recent meeting when a young boy asked His Holiness the Dalai
Lama if he could give him a hug.
His Holiness wishes to apologize to the boy and his family as well as his many friends across the world, for the hurt his words may have caused.
Interesting to note that they're talking about the words and how it may have hurt people the words and not the actions that you see in that video.
That's been the only reaction we've got yet we did put across a lot of questions to the Dalai Lama's office. But they only responded with a press
statement that they have put out, which then continues to read His Holiness often teases people he meets in an innocent and playful way, even in public
and before cameras.
He regrets the incident clearly for a lot of people across social media. This is more than just teasing. It has upset huge sections of people on
social media, on Twitter that have called a like I said, absolutely disappointing, absolutely disturbing and absolutely inappropriate behavior
by the Tibetan spiritual leader, the Dalai Lama, Julia.
CHATTERLEY: Vedika Sud, thank you so much for that report there. We're back after this stay with CNN.
(COMMERCIAL BREAK)
[09:20:00]
CHATTERLEY: Welcome back to "First Move", Tesla investing billions more dollars in China despite worsening tensions between Washington and Beijing.
Elon Musk tweeting Tesla opening Megapack factory in Shanghai to supplement output of Megapack factory in California the batteries that will make are
designed for utilities and commercial projects not electric vehicles.
Tesla says one unit can store enough energy to power around 3600 homes for an hour joining us now Dan Ives, Managing Director and Senior Equity
Analyst at Wedbush Securities. Dan, great to have you on the show! As always, we often talk about the importance of China for Tesla's longer term
and medium term ambitions. Put this announcement in context for us.
DAN IVES, MANAGING DIRECTOR AT WEDBUSH SECURITIES: Yes, Julia, it's the hearts and lungs of the Tesla story. I mean, both from a demand perspective
as well as production. This is really them doubling down on China, especially when it comes to battery technology.
It's obviously noteworthy given the geopolitical tensions, but ultimately, I mean, this continues to be a tight group. They're walking, but China is
really the test or growth story looking ahead.
CHATTERLEY: Yes, and this is about potentially feeding the grid wherever you are in the world. So this kind of battery power could be transformative
for broader energy provision, not just for electric vehicles. It's still your favorite disruptive technique, despite some of the, let's call it
volatility.
IVES: Yes, I mean, look, obviously, this year so far has been a great year in terms of the stock for Tesla, I think it was over. So - I think, wow,
that was sort of the Twitter overhang that started to dissipate. Look, ultimately, my view, you know, this is still the early stages of just a
massive transformation.
I think the biggest transformation to the auto industry since 1950s and Tesla continues to lead that race. This is really them flexing their
muscles. And even though they're cutting prices in terms of model Y, as well as model 3, I think that's the right strategic move to put an iron
fence around their customer base.
CHATTERLEY: Yes I mean I just want to look across the broader tech spectrum. And I read a great stat earlier this week, or last week, the
seventh largest tech stock, so we're talking about $500 billion valuation has risen more than 20 percent in 2023. That compares to around 7 percent
for the S&P 500. It's become a relative safety trade in 2023 at least the big tech names.
IVES: Well, look, I think the new safety trade even though it sounds Twilight Zone they say this tack and I think big tack. Julia, it's almost
been a Rock of Gibraltar sector in terms of Microsoft, Apple, some of the big tech names like Google and others Facebook in terms of you know, the
transition, the cost cutting, because ultimately they've caught costs are now starting to get cut.
And I think valuations are really starting to be what I believe is compelling given a growth story that's better than feared.
CHATTERLEY: Yes, I mean, you break it down into three different sorts of drivers of potential strength going forward. And they're interesting in
their own life. The first one is IT spending which is held up particularly cloud spending and cybersecurity spending this sort of an acknowledgment I
think that despite the budgetary pressures, and this is not a nice to have, this is essential.
IVES: Well, it's a higher priority and that's why that company in Redmond - -, I think Microsoft continues to gain more and more share. I think that's a stock that continues to move higher, but also there's benefits AWS for
Amazon, as well as GCP for Google, and I think that's holding up a lot better than feared in this environment.
CHATTERLEY: I think part of the reassessment perhaps in value has been driven by the fact that there is a broader belief that the Fed is almost if
not done in terms of Fed rate hikes. And what we can see in financial markets actually is rate cuts being priced.
There is a lot of skepticism about whether the Federal Reserve will actually cut rates even if it sorts of stand pat for a period of time once
it gets to its peak of interest rates. Dan, do you worry if we start to see some of those cuts priced out that people will go? Well, we perhaps still
liked it, but we like it slightly less than we were thinking when rate cuts were priced.
IVES: Yes, no doubt the biggest X variable in terms of Powell and the Fed but I think right now, I mean, it's really being priced you'll see cuts.
[09:25:00]
They're essentially handcuffed after SVB as well as Credit Suisse in terms of more hikes and then maybe 25 bps as an outside shot. And that's why
you've seen this green light risk on for tech assets. And I think the naysayers continued to sort of, you know, hate this rally. But in my
opinion, I think tech stores another 10 to 15 percent to go, despite many yelling fire in a crowded theater.
CHATTERLEY: Wow, I mean, that's interesting for tech investors. As you point out last earnings season was sort of kitchen thinking moment for
cutting jobs for cutting spending as well and trying to maximize efficiency. Where does that leave tickets we head into earnings season,
this time around?
Are you expecting sort of M&A activity as a result, because there are opportunities clearly for some of the big guys in particular?
IVES: Yes, I think a tidal wave of M&A we're going to see in tech, I think you're going to see on the private side, as well as in the public. Book the
strongest stronger in terms of big tech, as that's going to, I think, accelerate they've already cut in terms of guidance.
They're cutting costs in terms of these companies are spending like 1980s rock stars, and now you're starting to see margins protected. You know,
even though it's obviously a softer macro, I think big tech continues to outperform here. I think one cube earning just going to be another sort of
theme there. But M&A - I think there's just a drumroll for a massive M&A cycle.
CHATTERLEY: I think that you'd avoid in the big tech names.
IVES: I think there are some of the names like Cisco, where I view them on the wrong side of this trend. I think in chips, I'd rather own the video
and AMD over Intel I think Intel that's Everest like uphill battle to turn this around.
CHATTERLEY: Dan, always great to have you on the show. Thanks for your wisdom.
IVES: Yes--
Dan Ives Managing Director at Wedbush Securities, there. OK straight ahead, here on "First Move", spring break means one thing time to start planning
your next holiday. The CEO of Travel Giant booking holdings joining us to discuss travel trends as the weather heats up. That's next.
(COMMERCIAL BREAK)
[09:30:00]
CHATTERLEY: Welcome back to cheers and applause there and big smiles over at the New York Stock Exchange. And U.S. stocks are up and running after
the long holiday weekend. Unfortunately, though, that red jacket ominous is off to start investors on the East Egg hunt for a bit of green on the
screen and struggling at this moment.
We of course await crucial U.S. inflation data and the start of Q1 earnings season two. FactSet warning that S&P 500 companies are on track for their
worst profit performance in almost three years we're already seeing a greater than normal amount of negative earnings pre-announcements to ahead
of that.
Also, today oil pulling back slightly after last week 6 percent advance, a third straight week again for crude triggered by OPEC surprise production
cut, OPEX move expected to propel gas prices higher ahead of the summer driving season. Speaking of the summer with warmer weather finally on the
horizon and the pandemic in the rear - view mirror travel companies are gearing up for a further surge in demand.
Booking holdings with brands including Booking.com, Priceline, Rental cars.com, Kayak and OpenTable, faith had a record month in January with
over 95 million room nights booked. The company says gross bookings soared 58 percent last year hitting a whopping $121 billion.
And even with vacation prices rising bookings say pent up demand that has been stifled during the pandemic is still feeding through Glenn Fogel,
President and CEO of Booking Holdings joining us now. Glenn, great to have you on the show as always, that's a great time for you! And I looked at
your most recent numbers; travelers are certainly determined to keep getting back out there.
GLENN FOGEL, CEO & PRESIDEBT, BOOKINGS HOLDINGS: Well, thanks for having me. And there's no doubt that people having been frustrated not able to
travel for three years with the pandemic. There's a lot of pent-up demand certainly.
CHATTERLEY: And do you expect that to continue?
FOGEL: Well, we hope so. We never know. We can't, hard to predict the future sometimes. But certainly, I was in the airport in New York and
Miami, Amsterdam over the last couple of weeks. And it seems like people are traveling a lot. So, I'm happy about it.
CHATTERLEY: I make the city in particular travel is expensive. If I look at across Europe and the United States too, whenever people come to visit me
in New York, they complain. Do your numbers reflect the higher cost? Or is it driven by higher volume two or a mix of the both? What can you tell us?
FOGEL: Well, it's definitely both going on. But I have to point out that the high prices are incredibly, let's say shocking at times. And I did
that, as mentioned, it's just traveling, I'm looking at the numbers. I'm like, wow, this is expensive, yet people are paying it, people are willing
to pay it. And I think that goes back to what I said at the beginning about, you know; people haven't traveled for so long. And they've built up
a lot of savings during the pandemic. And now they want to spend it.
CHATTERLEY: Yes. And I think hotels, resorts; they're going to push as far as they can, if the demand remains high, even as those prices rise,
particularly if they see it. Do you have any sense of when we get to that tipping point where they go? Actually, we sort of pushed it as far as we
can. And it is going to have an impact on people's willingness to book.
FOGEL: Well, you know, one of the things you can sometimes see is people reducing the number of nights that they're going to book, or perhaps they
go from a five star to a four star or a four star to a three star. And we've talked in our earnings call last February, and we talked about how we
hadn't seen that yet. So that's one of the signals. And we said we hadn't seen it yet. But they'll be they'll definitely be a smoke signal we'll be
watching for.
CHATTERLEY: The other thing is late deals; people tend to go for later deals if they're trying to save money as well. But Glenn, I heard what you
were saying on that call, and its people looking ahead to, people are still saying, look, we want to go on holiday and we're willing to book it ahead
of time.
FOGEL: Absolutely. There's we called the booking window and people how far out are they booking before they travel. And they definitely went out
further than it had been, say last year. And that's one of the interesting things is people that just have more confidence that it'd be OK to travel.
Certainly, during the pandemic, when people began to travel a little bit, they still had a very short booking window. Because they are concerned that
maybe government would make a rule change that said you couldn't travel there, or maybe there'd be an increase in the number of infections. Right
now, people have more confidence, so they're willing to book further ahead.
CHATTERLEY: Last time when we were talking about a travel recovery across Asia and that it was delayed relative to the United States and Europe and
some of the international flight capacity constraints, particularly in areas of Greater China. Glenn, what are you seeing today in terms of that
recovery, but also sort of addressing some of those capacity constraints?
FOGEL: Well, they're no doubt was a slower recovery in Asia in general, and we also would happen in China. But one of the great things really for us
has been seeing it's starting to come back. We talked about how in our fourth quarter, it was the first quarter that we had Asia going faster than
it was in 2019 which was great.
[09:35:00]
But of course, it takes time. It takes time. For example, in China with the amount of outbound airlift number of really the number of players that will
be leaving China for outbound tourism, it takes a long time to get people to come, you know, get back into the pilot seats, get the flight attendants
back if and train, there was only about maybe mid-teens percentage versus 2019 in terms of the - people going.
And I'll tell you, it's going to take some time. And we all hope it comes back fast. But we know it takes time to get the planes and all the peel
back in place.
CHATTERLEY: Yes, so there's still capacity to be added there. And potential upside as well, which is, which is interesting. I want to get your views on
ChatGPT Glenn, I mean, you can tell me whether or not you've used it yourself just for amusement. But when I often read about the potential
benefits of this travel comes up a lot.
And the ability to, in some way use artificial intelligence to tailor great holiday experiences just by providing information on the things that you
like to do hiking, for example, or certain parts of the world. How were you looking at the potential benefits of artificial intelligence, perhaps to
serve your clients better? What are you doing even at this stage?
FOGEL: Yes, so we've been using artificial intelligence for over a decade. There are so many parts of our business that you need to have machine
learning models to really predict what you want offer up to a customer. But the advancements in things like ChatGPT, or any of the other chatbot type
AI interfaces, it's really going to change things significantly.
I think what we're going to end up with is, what I've always been talking about is using technology to go back to where it was with the old-style
human being travel agent, we had a conversation. Well, the great thing about ChatGPT or any of the similar type of AI promos, you can do the same
thing; have a conversation of what you're interested in, and what you're not interested in.
So being able to use all this AI information technology to provide a much better way to figure out what you want to do, where you want to do it, how
much is going to cost, I think it's going to be a great advancement.
CHATTERLEY: It's interesting; I was looking at the data on bookings made via the app. And I believe it's around 40 percent of total bookings made
via the app. I just imagine in a situation like that, where you say, actually, we go full circle, and you have this sort of digital travel agent
that's serving you.
I assume that pushes more of the traffic to the app rather than on a website or anybody else and then you just one app, of many options that a
customer can use? How do you ensure that you're the app that the customer goes to, rather than any of the other sort of competitive options out
there, Glenn?
FOGEL: Well, I totally agree with you. I think that is true. And we do hope that people use the app more and more. And one of the reasons they will use
it is for that capability to have that converse in dialogue style of getting what you want. Now, the way to do is we've always said, provide the
best pricing, provide the best service and make sure you're ensuring trust because people always nerves, big tickets are things that people get
nervous about.
It's expensive, and they want to make sure it's right. So being the provider of the service that people really trust is going to be somebody
who's going to provide the right thing at the right price. And if anything goes wrong, we will be there to help them.
CHATTERLEY: Yes, I mean, I always check things five times in case I've made a mistake. So having that follow up if you do make a mistake is critical.
Glenn, it's always great to chat to you. Thank you so much.
FOGEL: Always good talking with you, thank you.
CHATTERLEY: See you soon. President and CEO of Booking Holdings there! OK, still ahead. We're in Northern Ireland on the 25th anniversary of the
historic Good Friday Agreement is the deal that largely brought an end to decades of violence but has it for peace, when we find out from people
living there, next.
(COMMERCIAL BREAK)
[09:40:00]
CHATTERLEY: Welcome back to "First Move". U.S. President Joe Biden preparing to fly to Northern Ireland to mark 25 years since the historic
Good Friday Agreement was signed. The deal help put an end to decades of violence known as the troubles at its heart was a deep-rooted split between
Republicans and Unionists.
So, whether Northern Ireland should remain in the UK or become part of the Republic of Ireland. Nic Robertson is in Derry city that suffered some of
the worst violence. Nic and not everybody agreed or was pleased by this agreement, of course. And you've actually seen, I believe a bit of protest
today too, tell us what we've seen.
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes, there's a parade that's been organized here by a splinter Republican group - they are
believed by the police to be the political wing of the new IRA. The new IRA are the group that are still out there targeting trying to kill policemen.
They shot a policeman just a couple of months ago.
They've been targeting them at their police stations, roadside bombs, that sort of thing. You can probably hear overhead a police helicopter watching
the scene here. There's a commemoration by this group going on behind me the graveside here in the cemetery in Derry overlooking the city as to
commemorate the 1916 Easter uprising and every as they would see them the volunteers that have died in their struggle for United Ireland since then.
But this parade they're having wasn't authorized by the police. The police say that they had strong intelligence that this group wants to create
public disorder before the parade began. We saw young men preparing, preparing petrol bombs, Molotov cocktails were thrown at the police.
And as soon as the march got in, the remotest contact with the police in their armored Land rovers, petrol bombs were thrown around those armored
Land rovers. They try to chase down some more police vehicles or police backed off. And it's not quite clear what happens from here and this
protest.
But this speaks to that issue that the police have put up the terror threat level rather than the British government has put up. The terror threat
level here in Northern Ireland in the past few weeks from substantial to severe meaning an attack goes from being likely to being highly likely.
That's the background for this the day of literally the 25th anniversary of the Good Friday peace agreement. There are still the small groups who are
opposed to it and they're not giving up what they see as their struggle.
CHATTERLEY: No, and I'm sure it contributes to the huge security operation ahead of President Biden's visit to. Nic, but it did 25 years ago,
transformed the lives of many people there who were hoping for some kind of peace resolution and I know you've been speaking to some of them.
ROBERTSON: It's been really interesting to come back here after being here when the peace agreement was signed 25 years ago. I really hear the views
of people and what you hear from particularly the young people. Everyone of course is happy that there's peace, but it's not quite complete for some
people.
(BEGIN VIDEOTAPE)
ROBERTSON (voice over): Erin McArdle is a piece baby. The first Catholic born minutes after Northern Ireland's 1998 Good Friday peace agreement was
signed.
ERIN MCARDLE, NORTHERN IRISH "PEACE BABY": It's really special. It's something that I'm very proud.
ROBERTSON (voice over): Putting an end to decades of bloodshed, her mother hoping Erin wouldn't face the dangers known as the troubles as she did.
UNIDENTIFIED FEMALE: We were still very skeptical with this work.
[09:45:00]
MCARDLE: They always stayed about home just because of the bombings and the shootings and that so, I think yes, for me personally, the Good Friday
Agreement has made my life very happy and very safe.
ROBERTSON (on camera): This is where the deal was signed. I was outside that night the ground was freezing underfoot. But inside here the mood
thought. Former U.S. Senator George Mitchell sent over by President Bill Clinton did what had been impossible for 30 years with more than 3000 lives
lost. He negotiated a peaceful end to the sectarian bloodletting. So, what does it mean to you that your father used to paint murals like these here?
JOEL KEYS, POLITICAL ACTIVIST: I think it's great, it get kind of in a way that some love forever.
ROBERTSON (voice over): Joel Keys is another piece baby a Protestant.
ROBERTSON (on camera): Has the Good Friday Belfast agreement delivered for you?
KEYS: I don't think so. What the Good Friday Agreement did was took away the bombs and bullets but it did nothing they address people's mindsets.
ROBERTSON (voice over): Despite helping the economy, the Good Friday peace agreement has so far struggled to shift historic divisions, protestant
tending to be pro-British and some Catholics aspirations for a united Ireland.
KEYS: What pace can I look like nowadays is oh am protestant? I've got Catholic friends, but we just don't talk about that stuff. And that's pace.
But I think that's pseudo pace, that's false pace. We should be able to have strong conversations with each other.
ROBERTSON (on camera): But so many barriers the conversation remains. Most schools are still segregated and remarkably, these peace walls are not only
still here, they're taller and longer than they were before the peace deal. Real tensions exist.
UNIDENTIFIED MALE: No--
ROBERTSON (voice over): 12-year-old Ella McClay, a protestant school girl tells us how a group of Catholic children beat her up.
UNIDENTIFIED FEMALE: Yes--
UNIDENTIFIED MALE: You're protestant, that's what they were saying.
ROBERTSON (voice over): The video her parents share with us is brutal. Police say they're investigating the incident as a sectarian attack a
shocking reminder of life before the peace deal. There are other reminders too. These marches coming out to support a group that police believe tried
to kill one of their officers in February.
Parading through Belfast just days ahead of President Joe Biden's visit, hard line groups that rejected the Good Friday Agreement haven't gone away.
ROBERTSON (on camera): It's because of groups like this one that the British government has recently raised its terror threat level here in
Northern Ireland, from substantial to severe, from a threat likely to a threat highly likely.
ROBERTSON (voice over): For Erin and most people here, despite imperfections Northern Ireland's cup is more than half full.
MCARDLE: And half a year so I'd like to stand on their own place.
(END VIDEOTAPE)
CHATTERLEY: Nic, fascinating sort of discussions that you were having there and clearly not without deep complications at times. But I just wanted to
get your personal sense because you were there 25 years ago; did you believe it would hold at that time?
ROBERTSON: It seemed impossible that you really could bring it in to the deep tensions and the deep divisions, but a piece did hold it. It's had its
ups and downs. There was a terrible Omar bombing where more than 30 people were killed, not long after the agreement was signed, but for the most
part, there was that peace.
And then in Belfast, you could see areas where the economy was improving, where old derelict pieces of land were being redeveloped. And amazingly,
when you're in Belfast now, the downtown area is busy. But you see lots of lots of tourists. That's been a revelation to me as well over the past few
years, that area is getting an identity as a tourist attraction.
Lots of people coming in from all over the world so, you do, I do feel and sense that it's changing. But I think what Joel was getting to there that
point that the identity here is changing and there needs to be discussions about it. You know, the majority politicians here from Shin Fane, also the
majority south of the border want to unite in Ireland and they're pushing for it.
And without even the beginnings of discussions between the two communities here, how could you possibly hope to make that a peaceful if it happens, a
peaceful transition. So, there's still a lot of work to be done on that reconciliation part.
[09:50:00]
CHATTERLEY: Yes, the discussion at least needs to be had and not hidden. Nic, great to have you with us and great to have your context too! Nic
Robertson there! OK, still ahead, and the green jacket goes to a masterful come from behind performance that the master is on par with the all-time
greats all tired up all for you, after this.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move". Call it a masterful master stroke at the Masters for Jon Rahm, the Spanish golfer winning his first green
jacket after a dramatic come from behind finish, World Sports Don Riddell has more from Augusta, Georgia.
DON RIDDELL, CNN WORLD SPORT: Jon Rahm began the week here at Augusta with a double bogey. He has ended it as a double major winner. His first masters
title coming at the end of a grueling week and a very, very long day. He and all the other players had to come out early and finish their third
rounds.
And he began the day four strokes behind his playing partner Brooks Koepka. But by the end of it Rahm was four strokes clear at the top of the leader
board. It was an emotional scene as he celebrated on the 18th green with his wife and his two young kids.
And this continues an extraordinary runner form, it's a just reward for the work he's been putting in lately his sixth global victory since October and
it sends him back to the top of the world rankings.
(BEGIN VIDEO CLIP)
JON RAHM, WINNER OF 87TH MASTERS TOURNAMENT: We all dream of things like this as players and you try to visualize what is going to be like and what
is going to feel like. And when I hit that third shot on the green, just the wave of emotion of so many things is, overtook me. I never thought I
was going to cry like winning a golf tournament, but I got very close on that 18th hole.
And a lot of it because of what it means to me and to Spanish golf right it's Spain's 10th major four players to win the Masters fourth and my
second win right and my second major win, it's pretty incredible. And then there's one was for savvy. I know he was up there helping and help he did.
(END VIDEO CLIP)
RIDDELL: At Augusta this week, we've also witnessed the great Tiger Woods taking another step into the twilight of his career and it was more of a
limp than a step. But after another fragile departure, we can only wonder how many more major tournaments he has in him. However, the age of 52 his
greatest rival Phil Mickelson has roared back into the spotlight.
Who could ever have imagined that lefty he was mired in controversy this time last year, and who didn't even play here at Augusta could shoot a 65
to finish in a tie for second. It's the lowest round by a 50 something player ever at the Masters.
And with three Liv golfers finishing in the top six with Mickelson and Koepka contending for the green jacket there is renewed focus on the
strength and validity of the Saudi backed rebel tour. Perhaps this is not the golfing graveyard that some establishment figures had come to believe.
[09:55:00]
We leave Augusta with more questions than answers, but this compelling tournament has only served to heighten the excitement for the rest of the
golf season back to you.
CHATTERLEY: Ole - and finally Super Mario has jumped his way to the top spot at the box office. Super Mario Brother's movie is already breaking
records with the most lucrative global opening ever. For an animated film, it's based on the world-famous video game characters of course.
It opened last week and brought in a whopping $377 million in its opening run, grabbing the title for the best worldwide opening from frozen to. Let
it go. That's it for the show. "Connect the World" with Becky Anderson is up next. And I'll see you tomorrow.
(COMMERCIAL BREAK)
[10:00:00]
END
