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First Move with Julia Chatterley

Ukraine's Zelenskyy Speaks to China's Xi Jinping; Former President Jair Bolsonaro Testifying about January 8; U.S. Restaurant Giant Chipotle Beats Expectations; IEA: A Record 10 Million Electric Cars were Sold in 2022; Newark Terminal A Reopens after $2.7B Renovation; U.S. Zoo says Farewell to China's Giant Panda Ya-Ya. Aired 9-10a ET

Aired April 26, 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, CNNI HOST: A warm welcome to "First Move"! I'm Zain Asher sitting in for Julia Chatterley. Just ahead on today's show, crucial call

important new development in the Ukraine war Chinese President Xi and Ukrainian President Zelenskyy holding talks on the conflict for the very

first time.

Zelenskyy describing the phone conversation as long and as meaningful as well we'll have a live report on this just ahead for you. Plus, the Sudan

crisis; a tense 72 hour ceasefire in the war torn country winding down more last minute evacuations and fears of a biological lab accident. We are live

in Sudan with the very latest as well.

And financial fears U.S. regional bank of First Republic mulling emergency steps to stave off collapse. It's shares tumbling almost 50 percent Tuesday

and is down again pre market today. How exposed is the global banking industry to new shocks? We'll be discussing that as well.

First Republic strap drama helping pressure U.S. stocks in the previous session with all the major averages down more than 1 percent but a firmer

picture for U.S. futures today. Solid results from a tech giants Microsoft and Google's parent company Alphabet helping the market mood however Europe

is firmly in the red.

Here in the U.S. shares of gaming giant Activision Blizzard, tumbling almost 10 percent pre-market after the UK ruled against its multibillion

dollar merger deal with Microsoft. We'll have more on that in just a moment. We begin though with the latest on Ukraine.

Ukraine's President Zelenskyy says he's had in his words, as I mentioned, a long and meaningful phone call with China's President Xi Jinping saying

that he hopes it will give impetus to the development of Ukraine's relations with Beijing. CNN International Diplomatic Editor Nic Robertson

is in Kyiv. So Nic, do we have any more details on what specifically the two men discussed?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: We have a little bit of detail. They both seem to be putting this in a very positive light. Both

leaders say they're exchanging diplomats, the Ukrainian sending an ambassador to Russia, the Chinese sending an envoy here to Ukraine.

This envoy, it will be interesting to be noted, perhaps on the Ukrainian side that this particular envoy spent 10 years as China's Ambassador in

Moscow but the language that's being used here very, very diplomatic.

President Xi saying that he neither wants to watch the fire from the other side nor pour fuel on it nor profit from it so I think the sense here is

that this is an opening of a diplomatic opportunity between the two countries remembering that just a month or so ago, President Xi was in

Russia meeting with President Putin.

Both these leaders have met many times in the past. They've already had five phone calls this year. So this phone call between President Xi and

President Zelenskyy the first since Russia's illegal invasion of Ukraine is significant, but their positions are still very far apart.

President Xi when he was in Moscow said essentially, you know, we'd like to help negotiate a solution. And here's our proposal. Well, Ukraine's Western

backer said nowhere in China's proposal, did it mention a tool, Russia's illegal invasion of Ukraine.

And Ukraine's current position on its peace plan is that you Russia should withdraw and get out of all Ukrainian territory to the pre-1991 borders. So

on the surface, it would seem that both sides, although there's an air of improved diplomacy here, and not really any closer on the big gaps in their

differences on the way they view the situation.

And a word from Moscow on this, they say they've taken note of China's involvement here to further its efforts in negotiations. But they also see

they don't see any likelihood of that bearing fruit in the near future. And I think that's the sort of political diplomatic reality.

But when President Xi visited Moscow, President Zelenskyy goes follow up to that was essentially, if President Xi has a peace plan, then it would be

great if he spoke here with us in Ukraine. So this is a step along that path.

ASHER: And that given everything you've just said, given how close China is with Russia, given how much China has sort of tried to, I guess prop up

Moscow, especially when it comes to either buying Russian oil or selling drones to them Moscow what can Zelenskyy really expect in the long term to

come out of this phone call?

[09:05:00]

ROBERTSON: You know, China is potentially an important economic partner, many years in the future for Ukraine and the envoy that is sending as a

former top customs official here in Ukraine. So you would think perhaps that indicates that Zelenskyy has at the back of his mind, future trade

opportunities with China.

You know, Ukraine is going to be a massive need for rejuvenating and regenerating its industry as an economy here once the war is over. That's

over the horizon at the moment, but that would be the long term view of the Ukraine. So I think of Ukraine.

So I think that will be part of the picture here. What can be achieved in the short term? Well, it will at least allow at a diplomatic level, a

closer and more intense exchange of what is really happening in the war, because in Ukraine, the feeling is very clearly that President Xi only gets

fully President Putin's view and narrative on what's happening.

So any chance that Ukraine has to put their view across, and if you will undermine or show the inconsistencies in Putin's view and Putin's illegal

invasion this will be something Ukraine will want to exploit.

ASHER: All right. Nic Robertson live for us there. Thank you so much. In Russia today, jailed Opposition Leader Alexei Navalny appeared in court via

video link his first appearance since new concerns were raised about his health. Navalny is warning that he faces decades in prison on new terrorism

charges. He called the charges unfounded and absurd, as well and said he had been placed once again in solitary confinement. His daughter says

prison officials are denying him food.

Shares of First Republic Bank falling again in pre-market trading after dropping nearly 50 percent on Tuesday alone following its report, that

customers withdrew about $100 billion in the first quarter. Take a look at this chart.

The U.S. regional lender has lost more than 90 percent of its value since the banking crisis began last month. David Chiaverini is joining me live

now. He's the Managing Director at Wedbush Securities. David, thank you so much for being with us! So without a massive injection of cash here, what

happens to this bank?

DAVID CHIAVERINI, MANAGING DIRECTOR, WEDBUSH SECURITIES: Yes, the main option for First Republic is to go forward as a standalone company. Now the

good news for them is that unprecedented amounts of liquidity are being thrown their way.

They're able to pledge their loans and securities to the Fed. And that gives them some runway to move forward. But it's not going to be easy by

any stretch, because they're taking on significant borrowings because of all of the deposits that have gone out the door.

So their net interest margin is really getting crushed here. So they already announced with their earnings release, that they're going to reduce

staff by 20 to 25 percent. I'm kind of viewing this as a round one of potentially multiple rounds, because they really have to right size, their

expense base to get back into a position of profitability. So we did take down our earnings estimates looking out for the next few years.

ASHER: Just in terms of how much money has been withdrawn about $100 billion. I mean, what shocks you here? Is it really the speed, the speed at

which depositors were withdrawing their cash?

CHIAVERINI: Yes, you nailed it. It's the magnitude of the deposit outflows they started at December 31st; they were at 176 billion of deposits, that's

come down $102 billion on a core basis. Now the big banks came in with a guess you could say, a partial liquidity rescue by depositing $30 billion

into the bank.

So that gave them a little bit more of a runway. But the balance sheet, the core balance sheet is clearly under significant pressure. And that pressure

is all aspects of the rest of the business model, because now they really have to significantly pull back on their lending going forward.

And we've also seen a number of financial advisors on the wealth management side also leave the bank. So the First Republic that we once knew it as

their business model is changing significantly going forward.

ASHER: And the executives unfortunately didn't do that much to establish competence on the core, many of the executives really refusing to answer

questions.

CHIAVERINI: That's right. They did not hold a Q&A session which is customary, but at the same time given how much the stock has come down and

how difficult of a business environment and challenging environment it is for them I wasn't surprised that they didn't take Q&A.

[09:10:00]

And in fact, I was expected. I wouldn't have been surprised if they had pre-recorded the call, played the call and then ended the call from there.

So at least we did get live comments, but you're absolutely right. They did not provide an opportunity to ask Q&A for analysts so that leaves investors

essentially assuming the worst when it comes to what's going on behind the scenes.

ASHER: All right, David Chiaverini thank you so much for being with us Managing Director at Wedbush Securities. We appreciate it. Alright, in

Sudan a fragile 72 hour ceasefire is now in its second day, but witnesses continue to report sporadic fighting.

Meantime, the World Health Organization warns of a huge biological risk after the National Health Laboratory was seized up by fighter. Sam Kiley

joins us live now with more So Sam, just walk us through how great the threat is at this point in time and especially when it comes to the samples

the samples of diseases that are in this lab?

SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, I think that we need to keep our heads on this. This is not a laboratory that may be

producing an unknown pathogen like COVID-19. What it is a laboratory that is contains bio hazards among them.

We know from the W.H.O. are measles, polio and cholera now, measles and cholera are pretty endemic in Sudan. There will be pockets of people

carrying cholera in Khartoum, as we speak, obviously, if this laboratory were compromised, if there was a release of these pathogens into the

population that would be a disaster.

But it isn't something that would be utterly catastrophic globally. What it would be though, is it would reintroduce potentially polio to a population

in which it's been eradicated or officially eradicated. There are still pockets, I understand, in West Africa of polio.

But essentially, that is a disease that has been done away with by decades of inoculation. Measles still exists than cholera in a town in which there

is already a chronic shortage of water, clean water is only available to people with access now to wells in most of the city.

It is getting increasingly dirty, the hospitals are already overwhelmed. So where there to be cholera epidemic as a comment or cholera spread as a

result, either of the existing pathogen being in a population or worse still from a release from a laboratory, then it would obviously be very

disastrous.

And think about cholera is it can get a grip on a vulnerable population such as the population at war very, very quickly. We've seen that many

times in the past, particularly during African civil wars, notably the most catastrophic outbreak being in what was then Zaire many years ago, Zain.

So that is the issue. But on top of all of that, there is ongoing violence. There is also a controversy between the different attitudes to the

evacuations of national groups. So Britain, for example, is conducting or planning to conduct something like six flights to try and evacuate British

nationals after quite a lot of criticism in the British media for the critics view failing to properly look after their citizens.

The United States is saying to its 16,000 citizens to remain in place because they don't think that the ceasefire at the moment is permissive

enough to be able to conduct evacuations. But in Saudi Arabia, some 2000 people have now been landed in Jeddah on a ferry as a result of being able

to get overland to the Port Sudan now that looks to be the best way out for most people. The problem is that is itself a dangerous route Zain.

ASHER: Alright, Sam Kiley, live for us there. Thank you so much. Former Brazilian President Jair Bolsonaro is testifying right now at Police

Headquarters in Brasilia on his alleged role in the riots on January 8th. The riots took place after a week, a week after a leftist President Luis

Inacio Lula Silva was sworn into office.

Supporters of Bolsonaro invaded and vandalized the Congress building the Presidential Palace and the Supreme Court as well in a reaction to the

election results. The Former President has denied that he bears any responsibility.

Julia Vargas Jones joins us live now from Sao Paulo. So Julia, just walk us through the evidence Jair Bolsonaro may have actively instigated and

encouraged the violence that we saw on January 8th, whether it's to do with the fact that he claimed that the October election was stolen or the fact

that he sort of undermined trust in the electronic voting system? Just walk us through that.

JULIA VARGAS JONES, CNN JOURNALIST: Well Zain, it's kind of all of that right? He did not keep that a secret. He started criticizing the electoral

system months before January 8th.

[09:15:00]

It's actually hard to pinpoint when that really began as his campaign started to take off he started to double down on those claims, fake claims,

by the way that the electoral system here that electronic voting machines were somehow had their integrity compromised. And that's part of a post

that police is investigating.

That was he posted on January 10th. Then he deleted from his social media accounts. And that's what he said that the voting machines were not

reliable. And he actually questioned the results of the election at that point, just to give you a sense, right, that happened after January 8th, he

did not stop making those false claims both online and when he was the president, in his official addresses at times.

He said, I wouldn't accept the results of the elections if they're not on paper, kind of taking a page out of Donald Trump's playbook right during

the 2020 election, he actually requested an audit very similar to what happened in Arizona Zain with a similar kind of firm that went through the

voting machines and did not find any evidence of fraud.

But he warned of fraud in those electronic voting machines early on. Another piece that they might be looking into investigators might be

looking into is a memorandum, a draft decree that was found in his justice minister's home during a raid that said that it was proposing a coup and

laying out steps to in state a sort of military state of siege.

Which as you can imagine, in Brazil, a country with a young and not necessarily fragile but still a young democracy that lived through a

dictatorship during the 60s 70s and into the 1980s it's a very sore point for the political scene here?

And another issue Zain that they're looking into is why the President leaved for Florida right before the inauguration of Luiz Inacio Lula Da

Silva, his opponent, he left for Florida. His justice minister, the one from the decree I just mentioned, he also went to Florida at some point,

was there some kind of connection?

Or was he just soaking his loss? So those are kind of the main points that investigators are looking into? Did he actually have a role in instigating

the attacks? Or was this just a coincidence, right? He had massive followings on Instagram on TikTok on Facebook, on Twitter, where he kept on

pushing this message. So these are the points that he's going to be looking at today. And that's what investigators will be grilling him on Zain.

ASHER: All Right, Julia, thank you so much for being with us. We appreciate it. All right, still to come here on "First Move" on the menu at Chipotle a

selection of strong earnings. The CFO tells me why they're cooking with gas. Plus, the EV revolution is coming. But what does that mean for oil the

Head of the International Energy Agency will be here with the numbers.

(COMMERCIAL BREAK)

[09:20:00]

ASHER: Microsoft's nearly $70 billion takeover on Activision Blizzard blocked by UK regulators, the British antitrust watchdog says that the deal

would harm competition in cloud gaming. Shortly after the rolling Microsoft saying "We remain fully committed to this acquisition and we will appeal".

Clare Duffy joins us live now with more Clare?

CLARE DUFFY, CNN TECH WRITER: That's right. So this deal would have been one of the biggest tech acquisition deals in history, it would have made

Microsoft, the third biggest gaming company in the world. And it would have put it in control of really popular games like World of Warcraft and Call

of Duty and as you said it could have supported its Xbox gaming business, its cloud gaming business.

Now, the UK antitrust regulators said the deal would harm innovation and competition for gamers. And this really adds to the regulatory opposition

that Microsoft is facing over this deal. The U.S. Federal Trade Commission sued to block the deal in December and the EU is already sort of reviewing

this deal.

And now both companies are saying they're going to appeal and Brad Smith, Microsoft's President said that this deal sort of reject some of the

concessions that they had made to try to win over regulators they had promised, for example, to make some of these popular games available on

rivals platforms, but it appears that wasn't enough to win over the UK authority here.

ASHER: Alright, Clare Duffy live for us there. Thank you so much. The Mexican Restaurant Chain Chipotle with locations in the U.S. Canada and

Europe is serving up better than expected earnings in the first quarter.

The chain which expanded its footprint with 41 new restaurants in the first quarter, says that higher menu prices has actually helped increase its

revenue by 17 rather percent year-on-years. The company has the goal of 7000 locations across North America.

Are they on target Jack Hartung is the Chief Financial Officer at Chipotle joins us live now. Jack, thank you so much for being with us! Let's talk

about earnings beating expectations profits coming in higher than expected partly because of obviously higher prices, more foot traffic, lower cost in

terms of avocados and other ingredients as well. How do you sustain it?

JACK HARTUNG, CFO, CHIPOTLE MEXICAN GRILL: Yes and in addition to inflation, which you know that's not new news, every restaurant companies

had to deal with inflation we have as well. But our transactions are positive.

So despite the fact that we've had to cover inflation with some menu price increases over the past, you know, 12 to 18 months, our transactions are up

4 percent during the quarter. So we think that's a great statement that our customers are saying they still want to come to Chipotle, they understand

that inflation is here and it's real. But Chipotle is still their choice to you know, when they're looking for a great meal and great value. They're

still coming to Chipotle.

ASHER: When it comes to foot traffic, though I mean, obviously, people as you point out, people are still coming to Chipotle despite the higher

prices. How are you sustaining that though?

HARTUNG: Yes well, there are a number of things that we're doing. First of all, we try to make sure every one of our channels is convenient and

frictionless for our consumer. So we have a great digital channel that's almost 40 percent of our business, but we have a great inline business as

well where customers can come in.

Go down the line interact with our teams, and have a great customized meal. And again, it's at a great value. Our chicken burrito, which is you know

what more than half of our customers do get when they come to Chipotle. It's still just a little over $9 so it's a really great value. But they

also are spicing it up with things like a limited time offer with our "Chicken el Pastore" which our customers have really, really loved about

one in four customers are getting it. We're also engaged--

ASHER: The "El Pastore" is really popular.

HARTUNG: Very popular customers love it. You know, the great thing is when we have something new customers are excited to try it. But importantly on a

"Chicken El Pastore" they're trying it and liking it and they keep coming back and we're bringing new customers and we're bringing existing customers

in more often. And so it's been a big hit so far.

ASHER: You guys have raised prices, I think three times over the past a year and a half. Do you plan to continue that and especially given

inflationary pressures?

HARTUNG: Yes, no further plans right now. You know, in the first quarter our inflation in terms of our ingredients was relatively flat. We're still

seeing wage inflation so we don't have any further plans. We're going to watch what the landscape looks like when and watch what happens to the

macro economy.

What happens to inflation of our ingredients? We know we have pricing power, we know that we have the ability to protect our margins when

inflation comes in. We're going to be very patient before we take any action.

[09:25:00]

ASHER: So as you point out, despite the price increases you've sustained -- you've seen sustained growth in food traffic. Are you concerned, though,

about what the price increases will mean for lower income customers coming to your stores?

HARTUNG: Yes, you know, in the fourth quarter, we did see that lower income consumers pull back a bit, and the first quarter, we saw them come back

almost to the same level as they were before the fourth quarter.

So we think that's a great indication that even at the lower income level, the value of company Chipotle and get a burrito for $9 compared to any

other choices out there. And when you look at any other restaurant companies in our category, in the fast casual category, you typically have

to spend somewhere between 10 and 30 percent, more at another restaurant company as you would compare to Chipotle.

So our customers are discovering that even during, you know, inflationary times like this, Chipotle offers a great value with the kind of food that

they want to eat every day.

ASHER: What are your biggest concerns when it comes to the macro-economic environment right now? I mean, obviously, we've touched on inflation,

there's also sticky inflation. The possibility of a recession still looms large still hangs overhead. What are your biggest concerns right now?

HARTUNG: Yes, you know, from a macro standpoint, I would say the biggest thing that would concern us is a recession that involves unemployment

problems. So right now, we have very low unemployment in the U.S. So even in this inflationary period, people still have money to do what they want

to do, including going out and dining when they choose to.

And so the biggest problem that we would have, or the biggest concern we would have, is if the fight against inflation turns into significant job

loss. And at that point, people are going to have to manage their budget. And one of the things they're gonna have to make a choice about is, you

know, will they want to eat out?

Or do they want to eat at home? I mean, so far, so good. So far, it looks like inflation is leveling off, and our unemployment is still very, very

low. So you know we're hopeful that we can navigate this and get through it without any significant shake up in the economy.

ASHER: Hopeful that the Fed can actually achieve that soft landing, they talk about. Jack Hartung live for us there. Thank you so much, we

appreciate it. All right, still to come here on "First Move", electric car sales are racing ahead. We'll chat with the Director of the International

Energy Agency about the electric revolution and what it means for energy suppliers and of course, the planet that's when we come back.

(COMMERCIAL BREAK)

[09:30:00]

ASHER: Welcome back to "First Move", U.S. stocks up and running this Wednesday. I found the picture in early trading after Tuesday selloff,

which was of course driven in part by -- certainties in the U.S. Bank sector attention turning to Washington, where the house could vote today on

a Republican backed bill to cut the U.S. budget and raise the debt ceiling.

No word yet and whether House Speaker Kevin McCarthy has the votes or if the vote might be postponed. He has been making changes to the bill to

vacate Republicans who are still on the fence, whatever happens the bill has no chance of being signed into law.

All of this amid new fears that the U.S. could default on its debt as soon as June if a debt ceiling solution is not reached. Stock of the news today

includes First Republic and shares falling again after losing almost half of their value Tuesday. The deeply troubled bank looking to sell billions

of dollars in assets to shore up its finances, and perhaps issue new stock but fears about its future persist.

Shares of Alphabet and Microsoft are higher after positive first quarter earnings and Activision Blizzard shares are tumbling after U.K. officials

voted to block its $69 billion takeover by Microsoft. Demand for electric cars is still racing ahead after a record breaking 2022 data from the

International Energy Agency shows that more than 10 million electric vehicles were sold worldwide last year.

Now it's expected to leap to 14 million this year. That would mean almost one in five cars sold in 2023 will indeed be electric. And the EV boom is

in turn driving a change in the energy industry. The IEA says that by 2030, the switch to electric vehicles will reduce demand for oil by over 5

million barrels a day.

Joining us live now is Fatih Birol, Executive Director of the International Energy Agency. Fatih, thank you so much for being with us! So that's an

incredible statistic when you think about it, but in 2023, one in five cars sold will be electric vehicles. Just walk us through what is behind? I'm

sure there are myriad reasons, but what is behind that search?

FATIH BIROL, EXECUTIVE DIRECTOR OF INTERNATIONAL ENERGY AGENCY: I think where we look at, where we came here from 2019. Only four years ago, one

car out of 50 cars sold was electric car. So 2 percent of all the cars sold in the world was electric cars. And four years later, today, we are seeing

that every fifth car is an electric car driven by China, Europe, more and more United States and the rest of the world.

But I think a bit more impressive number is even with the current trends, if we don't see even an acceleration, which is likely, even with the

current trends 2030, which is tomorrow, about one out of three cars sold in the world will be an electric car. It is driven by different concerns.

In some countries, it is driven by environmental clean energy concerns. But in China, it is an industrial policy and at the same time, China wants to

reduce its dependence on oil imports from countries. So there are three major drivers behind the explosive growth of electric cars, namely climate

concerns, the oil security concerns.

And at the same time, it is industrial policy in China and I believe with the Inflation Reduction Act in the United States, we will see a big growth

in the U.S. as well.

ASHER: Yes, it's important to mention just how important of a role policy changes have been to these the sort of growth in these sorts of numbers

we're seeing. You mentioned that the three biggest markets for this explosive growth. China, of course, Europe, the United States, what's being

done to ensure sustained growth, beyond those markets in places like India, for example, Indonesia too?

[09:35:00]

BIROL: India, Indonesia, Thailand, different countries coming strongly in those countries governments are also if I may say so waking up to the

electric car revolution which is in place in terms of the incentives, support subsidies, and creating the infrastructure for the electric cars,

and we will see those countries that are joining as well.

But if we even leave those markets aside for a moment, China, U.S. and Europe, they are the three largest car markets in the world now. In 2030,

60 percent of all the cars sold in this three largest car markets will be an electric car. And this will have significant implications for the oil

markets for the oil industry.

ASHER: And speaking of the oil industry, as you just touched on there, I mean, what are the numbers here from what I'm, I've been reading and

researching. There's an estimate that by 2030, as you point out, that literally is tomorrow, we will see a reduction by about 5 million barrels

of oil per day in terms of reducing demand for oil.

BIROL: So when we look at to oil consumption today in divert, about 40 percent of oil consumption comes from the road transportation, cars, buses

and trucks. In terms of cars, we just discussed this electric cars coming a very, very strongly a buses -- underline and the next wave will be trucks.

As such, even with very conservative assumptions, we think we will see, there'll be at least 5 million barrels per day of oil consumption avoided

and the biggest impact will be on the gasoline and diesel consumption as they are the main input for the cars but we should also in addition to oil

industry.

We should also take note that the automotive industry, the car manufacturing industry is going through a major transformation that we have

not seen since the early 20th century moving to electric from the fossil fuel, run cars, trucks and buses to an electrification of the art

transportation system. So the key word is electricity is the future for the transportation sector.

ASHER: Alright, Fatih Birol, thank you so much for being with us. Executive Director of the International Energy Agency, we appreciate them. Alright,

for a long time, there was little new about Newark Airport in New Jersey, but it's amazing what a difference a few billion dollars can make. Richard

Quest takes a peek inside, next.

(COMMERCIAL BREAK)

[09:40:00]

ASHER: Welcome back as we enter the summer travel season, it's fair to say the big three airports serving New York City have struggled to deliver a

satisfying passenger experience. I'm talking about Newark, LaGuardia and JFK, but billions of dollars are being spent to try to change all of that.

Richard Quest spoke to the man driving the upgrades.

(BEGIN VIDEOTAPE)

RICHARD QUEST, CNN EDITOR-AT-LARGE (voice over): Travelling to New York City used to be a miserable experience, something to be endured, not

enjoyed. It was a journey through places like LaGuardia that Joe Biden once compared to arriving in a third world country.

And the other airports in the tri state area weren't much better. JFK, Newark, and even the Port Authority Bus Terminal they were too small, out

of date, and difficult to get too. Survey after survey showed travelers thought they were amongst the worst in the country.

The Port Authority has spent billions of dollars and many years rebuilding the travel experience. LaGuardia Terminal B rebuilt, reopened and just

named the world's best new terminal by Skytrax. And now Terminal A at Newark recently opened after a $2.7 billion renovation.

QUEST (on camera): I like this.

QUEST (voice over): And that's where I met the man behind it all the Head of the Port Authority Rick Cotton.

RICK COTTON, EXECUTIVE DIRECTOR OF PORT AUTHORITY OF NEW YORK AND NEW JERSEY: Soup to nuts, we are tearing down the old facilities and building

new 21st century facilities at every single one of our major airports.

QUEST (on camera): My clearly arena is a firm believer that all you need is a shed, that you're going if you've heard this, you go in the front, you go

out the back. You don't necessarily subscribe to that view. You think there needs to be something that says something?

COTTON: Yes, well, airports are gateways, first of all, and they're also symbols of the regions that they serve. And so that's what they need to be.

QUEST (voice over): One of the airports isn't actually in New York. It's Newark. Now that proudly pointing out that Newark is close to New York, but

it's actually next door.

COTTON: You will see references to New Jersey across this new Terminal A. You will see constant references to New York across the new LaGuardia. You

will say future tense; I was spending $19 billion at JFK you will see in those terminals, Newark.

QUEST (voice over): Mr. Cotton told me that the old Terminal A was built 50 years ago. It was another era in travel, over the years it was too small

then the worst condition of all the terminals at Newark. He told me the lessons they learned as they were building the new Terminal A.

COTTON: What we've learned is you needing open spaces can't have pinch points. He can't have places where queues form. You have to have the

technology support, rapid throughput, the ease with which people board. So that all of these gates are equipped with e-gates in ways that right now

people can board just with their cell phone, but in the future, it'll be biometric.

QUEST (on camera): We're getting ready for summer that last year was horrible. Well, this year, will be better? Are you ready? I know to an

extent. It's not you. It's all the various but you get the blame.

COTTON: Well, the fact is the system is still struggling a bit in terms of coming back finding staff that goes across. It's with our government

partners, it's with the airlines. So at the Port Authority, we have the highest vacancy in terms of jobs we're trying to fill.

And this summer is going to be over 2019 level. There's just no question. Travel has come back. So we're preparing for it in terms of actually hiring

extra staff. We're preparing for it in terms of being sure that every system has checks and double checks, but it's going to be a challenge.

(END VIDEOTAPE)

ASHER: CNN's Richard Quest reporting there from Newark Liberty International Airport.

[09:45:00]

Alright, Kim Kardashian is one of the most recognizable faces on TV and on social media. Besides being a TV star and an influencer, she's also a very

successful entrepreneur as well. Her shape wear and clothing company SKIMS is valued at $3.2 billion.

And of course, she's a mom to four children. Kim actually spoke to my colleague, Poppy Harlow, at the time 100 summit in New York about her life

as a mom, daughter, aspiring lawyer and executive as well.

(BEGIN VIDEOTAPE)

POPPY HARLOW, CNN CORRESPONDENT: I was thinking a lot about sort of how you do business and observing it from the outside. Do you trust your gut?

KIM KARDASHIAN, ENTREPRENEUR AND FOUNDER OF SKIMS: Absolutely.

HARLOW: Over the data over what other people say, can we should do this and we should do this?

KARDASHIAN: Absolutely. And I like to be in business. I think there are two things I like to do things that I will feel very confident in that I

obviously feel like I know what I'm doing. I want to learn and surround myself with people that will support you in a way where you trust them so

much in the area that they're going to run the business in.

And you give them that control and they trust you in the area that you really know. And if you just trust each other like that, it absolutely can

be magic.

HARLOW: Equal respect and trust.

KARDASHIAN: Yes, and I do have I think as you get a little bit older, and you learn a lot along the way, I think one of the most important things.

And there was a time when I didn't have this luxury of choosing who I was in business with.

HARLOW: Yes.

KARDASHIAN: But if you're at a place and you take your time, you realize that you absolutely do not want to be in business with people you don't

want to spend holidays with and that you don't like.

HARLOW: So your dad, you've said that a lot of your work ethic, because I've heard you only sleep for about five and a half hours a night if that a

lot of now, a lot of it comes from your dad. And you lost him when you were 22.

KARDASHIAN: Yes.

HARLOW: he died from cancer, just two-month battle with cancer. He was a lawyer and your dream was to follow in his footsteps. We were talking about

this backstage, my dad too lawyer died when I was young, four months in the hospital.

So I understand that and wanting to make them so proud. Is his memory and what he wanted for you and what you learned from him a driving force now in

your criminal justice work?

KARDASHIAN: Absolutely, but I know that he would probably get such a kick out of this because he wouldn't have expected it at all. We talked so much

about me going to law school, and he always said he would help give us an allowance if we stayed in school. And I couldn't do it.

I was like, I'm on my own. I don't care. I'm not going to go to, I didn't finish school. And then now that the opportunity came about all these years

later, it's so much more meaningful to me.

HARLOW: Didn't he tell you not to be a lawyer?

KARDASHIAN: He did--

HARLOW: Well, -- to be a lawyer.

KARDASHIAN: He did warn me how stressful it is and said, I know you. You're not going to want to go through this. So figure out something else to do.

But I will say I did learn my work ethic from my dad.

HARLOW: Yes.

KARDASHIAN: But I learned so much more from my mom than I ever give her credit for and that I ever I you know --.

HARLOW: So give Chris credit, right now.

KARDASHIAN: Yes, I don't know, is that a thing like you, kind of give this is like, I'm not even trying to be funny, but you, kind of give the dead

parents a lot of credit --.

HARLOW: It's so true. My mom said the same thing to me. We did this video for CNN all about my dad. And she's like, I love it, Poppy, but, you know,

-- I was there till I was there too.

KARDASHIAN: Yes, I get it. I'm sorry, mom. You know, if you watch this, I feel like we've always given my dad so much credit.

HARLOW: What did she teach you?

KARDASHIAN: Well deserved. But she I mean, the one thing is she taught us how to have a home, how to make a home. And all of my, I mean, she's the

most nostalgic, sentimental person. So she kept everything from when we were growing up. I could find a tooth I could find locks of hair I could

find she has these chests that she saved for us with baby books.

And so I do that with all of my kids. And I write each one of my kids a letter like a four or five-page letter every year on their birthday, that

I'll give them when they're 21. And you know about what we did through the whole year and what their favorite shows are and what they like to eat and

who their friends are?

HARLOW: --for every child. I definitely feel like I'm underperforming -- we'll do it.

KARDASHIAN: Yes, it's a lot --. So she taught us how to be really good mom.

HARLOW: How to make a home, I don't?

[09:50:00]

I love being a homemaker and I love working and I don't often that we talk about both. So I'm really glad that you said that. You have said my 40s are

about being Team Me. Me too.

KARDASHIAN: 40s are the best.

HARLOW: So far so good. I've got almost zero in the books. I agree any advice for folks on Team Me?

KARDASHIAN: Just, oh my god, I have so much advice and I'm blinking. I mean, I think it's just really simple like, I live my life just trying to

be a good person. Be what do right by other people, you know, be kind to everyone and focus on yourself. Sometimes you need to give yourself a

little bit more love. Sometimes other people need a little bit more love and there's just enough to go around.

(END VIDEOTAPE)

ASHER: In that interview, Poppy Harlow speaking with Kim Kardashian. All right, coming up after the break it is Panda watch, heading to China Ya-Ya

says bye-bye to the American Zoo. She has called home for two decades but the decision is not without controversy. That's next.

(COMMERCIAL BREAK)

Alright, these are live pictures outside the White House in just a few moments from now. U.S. President Joe Biden is set to welcome South Korea's

President Yoon Suk Yeol at the White House. You just relist to the Marine Corps Band playing there.

This is the south lawn where we expect a traditional state arrival the two leaders will listen to a Korean choir, and they will both make brief

remarks later in about an hour or a few hours rather from now. There'll be given a joint news conference and tonight the Biden's will host a state

dinner for President Yoon and his wife as well.

The state visit comes under the banner of the Washington declaration and of course we will bring you all the pomp and circumstance live when it begins

next hour. Right, China's giant panda Ya-Ya is on a long journey home. She was loaned to the Memphis Zoo two decades ago with fellow giant panda Le-Le

who actually died in February.

Now China says that she'll be back soon. Anna Coren has more for us from Hong Kong. So there are concerns, Anna, from animal rights groups, but of

course this return from Ya-Ya back to China comes at a time when you know U.S.-China relations are at a low point.

ANNA COREN, CNN CORRESPONDENT: Yes, that's right, Zain, but it's these Chinese medicines and animal rights activists who've been watching you

know, the footage of Ya-Ya, coming out of Memphis Zoo, very concerned about her condition. They claim that she's unwell, that she's been underweight

that she has been mistreated.

[09:55:00]

These are allegations that have been firmly denied by Memphis Zoo that has looked after Ya-Ya for the past 20 years. It really all escalated when her

male mate Le-Le, he died earlier this year back in February. And that caused all this concern you know, about how these animals were being

treated.

Vets were flown in from Beijing; they conducted a post mortem on Le-Le, which found that he actually died from heart disease. They also inspected

Ya-Ya found that her weight was in fact good, her appetite was good and that. She in fact suffers from this skin condition, which can make her

further look patchy and thin.

And that is obviously what these Chinese medicines have picked up on. They have demanded that she be brought home she was always scheduled to fly back

to China this month. But they say this, you know panda diplomacy that China does with current countries. They want no more pandas, Zain sent to the

United States.

ASHER: Alright, Anna Coren live for us there, thank you. And that's it for the show. I'm Zain Asher; I'll be back in a couple of hours with "One

World".

(COMMERCIAL BREAK)

[10:00:00]

END