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First Move with Julia Chatterley
Strong Q1 Results from Facebook's Parent Company; Hospitals Struggle to Keep up as Casualties Mount; Citroen Launches New Model in S.E. Asia, S. America, India; Taiwan Losing Supporters in Latin America; Beijing Broadens Law in Worrying Move for Businesses; South Korean President to Address U.S. Congress. Aired 9-10a ET
Aired April 27, 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]
ZAIN ASHER, CNN HOST: A warm welcome to "First Move" to all of you so good to have you with us this hour. I want to begin today's show with just
released economic data out in the U.S. new numbers show the American economy growing at 1.1 percent annualized rate in the first quarter that is
below the expectations of about 2 percent. And the slowest pace of growth since last spring.
The report shows consumer spending is still strong but businesses are pulling back on spending as investors pour over the new data. U.S. Futures
let's take a look here still pointing to a higher open after Wednesday's mixed session.
Tech in the lead after strong earnings from Facebook Parent Company Meta, Europe mostly higher as banking giant Deutch Bank and Barclays post market
friendly results higher close in Asia too investors looking ahead to tomorrow's highly important Japanese central bank policy statement its
first policy pronouncement under its new chairman.
Also in Asia Samsung shares finishing Thursday session slightly higher as well the South Korean tech giant promising a stronger second half after
suffering a 95 percent first quarter profit drop due to the ongoing chip supply glut so much to get through today.
Let's begin with the latest on the U.S. economy the world's largest economy is growing at a much slower pace. U.S. GDP growth slowed to an annual rate
of just 1.1 percent in the first quarter, missing expectations of 2 percent. Rahel Solomon joins us live now. So it certainly represents a
slowdown here Rahel that is for sure. But it still shows just how resilient the American consumer really is, despite all of the price increases they're
experiencing?
RAHEL SOLOMON, CNN CORRESPONDENT: Well Zain, I think that's the absolutely most interesting point of this report, right that we're seeing a slowdown,
and we can show you how this 1.1 annualized rate compares to the last few quarters. And make no mistake about it.
This is a slowdown, but to your point Zain it's where we're seeing the slowdown, right? So we saw actually still positive contributions in terms
of consumer spending, which I should point out powers about two thirds of the U.S. economy.
So consumer spending is the backbone of U.S. GDP. And that was still a positive contribution. We saw exports increase, we saw federal government
spending. Now on the opposite side where we saw a really meaningful deceleration it was things like a private inventory investment, you think
about, for example, business investment, business inventory investment, non-residential fixed income that would include things like manufacturing
plants, equipment and software.
And so it's interesting that we're seeing a pretty market slowdown in terms of businesses in terms of business spending investment, but in terms of the
U.S. consumer, we are still seeing in spite of, as you pointed out, the higher interest rates in spite of the high inflation, which is cooling, but
still very high, consumers are still spending. So that really helped on the upside. But businesses on the other side are really pulling back as they
prepare for what could be potentially a recession here in the U.S.
ASHER: And speaking of businesses, let's talk about First Republic Bank. What are they going through this week? Stocks their stock falling about 50
percent on Tuesday, 30 percent again on Wednesday how long can this bank actually continue in this current format Rahel?
SOLOMON: It's a great question Zain; I think there are a few scenarios that look likely at this point. One scenario is that actually, maybe it
continues to coast along and its share price languishes is one financial portfolio manager told me yesterday, that is certainly a possibility.
Because when you actually look under the hood of the report, which they were -- which they released earlier this week, profitability is a challenge
for the bank. And that's what you're seeing reflected with its stock price. But deposits have stabilized.
Customers have remained with the bank, although they have minimized they have lowered how much deposits they have within the bank. So this is really
a concern about profitability for the bank, the spread between what they borrow and what they can earn, that is shrinking. And so that's what you're
seeing reflected in the stock price.
So they could languish here for quite some time they could potentially be put under the umbrella of a larger bank, which it has been before it's been
under Bank of America before it's been under Merrill Lynch before that as a potential, perhaps another rescue package. There are so many scenarios
being discussed right now. And it has a similar profile in many ways to SVB so that is really speaking clearly Investors and speaking as it had
depositors Zain.
ASHER: Yes, it's quite remarkable that it's managed to cling on so long. You think about what happened with SVB and Signature they fell within days.
This bank First Republic--
SOLOMON: Still hanging on.
ASHER: --still hanging on for over a month, right? Rahel Solomon so good to see you my friend thank you!
SOLOMON: Thank you Zain.
ASHER: We'll call it a mega quarter for Meta, shares of Facebook's parent company up by more than 10 percent pre-market after beating profit
estimates and raising guidance China a bright spot Meta also touting progress in AI as well.
Clare Duffy joins us live now. So Clare Mark Zuckerberg actually dubbed 2023 the year of efficiency obviously we had all of those layoffs thousands
of people laid off at Meta at the end of last year.
[09:05:00]
Those numbers are actually reflected in this earnings report. Just walk us through that.
CLARE DUFFY, CNN WRITER: That's right Zain. What seems to be happening here is that this year of efficiency is really sort of getting underway and
that's starting to be reflected in these earnings? Meta did take about a $1 billion hit from this sort of restructuring process.
And look, profits were still down by nearly a quarter year-over-year, although they beat expectations. And what shareholders really seem to be
sort of tapping into here is that sales grew 3 percent in the first quarter of the year. It's the first time Meta sales have grown in nearly a year.
And Meta's family of apps also posted 3.8 billion users up 5 percent year- over-year. And so I think you're starting to see Meta sort of come into this recovery process. Meta also lowered its expectations for expenses for
the full year.
And it said it expects revenue to grow again in the current quarter. And so I think what the company is really sort of trying to express to
shareholders is that well, last year, business was really struggling. It's starting to improve and it's starting to recover here.
ASHER: And let's talk about Meta's reality labs unit, because that's the sort of branch of the company that focuses on virtual reality for the
Metaverse, that segment of the business still posting huge losses. What did Mark Zuckerberg say about that?
DUFFY: It's so interesting Zain because, you know, Meta more than a year ago changed its name to focus on the Metaverse to really reorient its
business. And while it is still spending billions of dollars in this reality labs unit, the Metaverse seems to really have taken sort of a
backseat in terms of focus at this point.
And Mark Zuckerberg is talking a lot more about AI, as it's sort of chasing these other big tech companies that are really spending on AI right now.
And so a few of the things that Meta talked about in terms of its AI efforts, it plans to introduce AI chat in Messenger and in WhatsApp.
It plans to introduce AI visual creation tools in Facebook and Instagram and also its advertising business. But it is really interesting to sort of
hear him now talk about the Metaverse is this really sort of future effort for the company while AI is the focus right now, despite the fact that they
reoriented the whole company around that plan just over a year ago?
ASHER: The irony. All right, Clare Duffy live for us there. Thank you so much. The battle between Disney and the Governor of Florida, Ron DeSantis,
only is growing fiercer by the second. DeSantis blasting a lawsuit served by the House of Mouse. The company is accusing Governor and his political
allies are violating Disney's constitutional rights. DeSantis though has dismissed that.
(BEGIN VIDEO CLIP)
RON DESANTIS, FLORIDA GOVERNOR: They had no accountability, no transparency, none of that. And that arrangement was not good for the State
of Florida. We did not think that that should continue. So we now have broad accountability.
Every other Floridian has to have this this type of oversight all Florida businesses. So it's a little bit much to be complaining about that. I don't
think the suit has merit. I think its political people Florida; they understood that this was an issue. Do you want one company to have their
own fiefdom? Or do you want everyone to live under the same laws?
(END VIDEO CLIP)
ASHER: CNN Reporter Steve Contorno has been following this. So just talk to us a bit more about how this tit for tat started it essentially started
when Disney started speaking out about the so called parental rights and education or the so called "Don't say Gay Bill", just walk us through how
this all began.
STEVE CONTORNO, CNN REPORTER: That's right, Zain. And that was 14 months ago. So this is a class that has been going on for almost over a year. And
we really seen it now escalate to this point. Disney a few weeks ago, it was uncovered that they had made a maneuver to block DeSantis from blowing
up their special district and taking away their long standing powers.
In Central Florida where Disney has its theme parks it has for the last 60 years operated essentially its own government there. It runs the water, the
utilities, the streets, the sewers; everything is sort of under their purview. And that is sort of the covenant that that Disney in Florida came
to 60 years ago when they first wanted to open this theme park here.
Well, DeSantis in retribution for Disney speaking out that against the "don't say gay law" they actually took away some of those powers and said
we're going to be in charge of this district. Well, Disney said, I don't think so let's take back some of those powers to the last minute.
DeSantis found that out, and then they nullify those agreements. So now here we are with Disney saying, well, the only recourse we have left now is
to take this to court and so a judge in the Northern District of Florida will now decide who is right here Disney or DeSantis.
ASHER: And just pivoting to the sort of more political aspects of all of this. DeSantis still hasn't technically announced that he's running for
president, but he's been out there raising his international profile, sort of brandishing his foreign policy credentials. He's actually in Israel
right now.
CONTORNO: Correct. He just got to Israel. He previously was in South Korea and Tokyo. This is really his first chance as a likely presidential
contender to sort of step out onto the international stage.
[09:10:00]
He has been mostly known for domestic issues. He was a Governor who was a pandemic contrarian; he kept Florida open for a much more people were able
to move around without masks or vaccines, much more than in many other states.
He also has been in the forefront of these culture wars, that don't say gay bill is one example. But he's also been one of these Governors who has been
making it harder for transgender children to get health care and a lot of those battles.
So this is the first chance he has to sort of flex his foreign policy credentials, but in a sign of just how much he is known for these, these
cultural battles. Even in Israel, one of the questions he was asked about was this lawsuit. So this is something that is following him around the
globe, really, as he tries to make a name for himself and be known for something a little bit other than the fights he's had back at home.
ASHER: Alright, Steve Contorno live for us there. Thank you so much. The situation in Sudan is getting worse by the hour. A race is on to evacuate
foreign nationals while the current ceasefire low tenuous remains in effect until later today.
Meantime, millions are trapped in their homes, hospitals are overwhelmed food, water, fuel all of those in short supply. And we're getting reports
of new clashes in Khartoum and some of the surrounding areas.
CNN's David McKenzie is following these developments from Johannesburg. So David, I mean, on the political level, there's still no sign really that
either side is truly ready for serious talks. But it's the humanitarian cost that is really heart wrenching in all of this.
DAVID MCKENZIE, CNN SENIOR INTERNATIONAL CORRESPONDENT: It is heart wrenching. And it's very serious both for Sudan, the people of Sudan and
for the wider region Zain. And that ceasefire that was due to expire later today. I mean, really, it's a ceasefire, in name only based on the
eyewitness reports we're getting in and people I've been speaking to in Khartoum, who really say that there's been fighting throughout that period
of ceasefire.
Though some areas of the capital have been calmer the impact of this conflict between the two warring generals is exceedingly difficult for a
particularly those hospitals and doctors that are still able to operate and they're struggling to save lives.
(BEGIN VIDEOTAPE)
MCKENZIE (voice over): A brave Sudanese doctor takes us inside a frontline hospital in Khartoum, filming over several days. Doctor Howida AlHassan and
her team are barely coping at Alban Gadid Hospital. They talk about ceasefire, but there is no ceasefire.
The wounded keep coming in she narrates the same staff have been here for 11 days. They're facing a deluge of civilian victims, many with multiple
gunshot wounds wiping away the blood because the casualties never stop. My son was wounded says this man. I didn't come because many hospitals aren't
working.
DR. HOWIDA ALHASSAN, ALBAN GADID HOSPITAL: I'm astonished how we're able to continue we don't sleep. I wouldn't call what we do sleeping. I would call
it fainting. We faint and we wake up again. I'm surprised how we are managing.
MCKENZIE (voice over): Dr. Howida says everything is running out. They're giving smaller doses of medicine to ration their supply. We use the
equipment and the instruments more than once she says we can't sterilize properly there are just too many wounded.
DR. ALHASSAN: Soon we'll have no bandages no medication, no anesthetic drugs and no oxygen. The situation is bad with all the meaning of the word.
MCKENZIE (voice over): Bad and it will get worse unless help come soon or the fighting stops. Sudan's Doctors Union says that more than two thirds of
hospitals are shutting the capital. Eyewitnesses and doctors group say hospitals are being targeted with heavy weapons by both sides, which they
deny. As foreign governments spirit their diplomats and nationals out of Sudan Dr. Howida says her conscience compels her to stay.
DR. ALHASSAN: I believe the number of casualties and wounded will increase after the foreigners are evacuated. God knows if we will be alive or dead.
MCKENZIE (voice over): Sudanese blood is one blood she told us. I beg you to silence the sound of the rifles.
(END VIDEOTAPE)
MCKENZIE: We spoke to Dr. Howida this morning Zain and she said that they've run out of oxygen now that hospital they're desperate to get
supplies in. There's been growing pressure of course for diplomatic end to this conflict but so far effort by the African Union the regional body in
East Africa the U.S. and others all haven't really persuaded those two sides to meet, and even just to stop fighting for more than a few hours
Zain.
[09:15:00]
ASHER: The situation on the ground as you point out in your piece is nothing short of harrowing. David McKenzie live for us there. Thank you so
much. Well, Russia is pounding targets in Southern Ukraine, as speculation mounts over the timing of an expected Ukrainian counter offensive.
Mykolaiv the Ukrainian Military says that Russian missiles hit a residential building and houses killing one person and injuring 23 others
rather eastern Zaporizhzhia, the regional military says that Russia pounded targets with more than 80 attacks. Two people were killed there. Nic
Robertson joins us live now from Northern Ukraine. So Nic just talk to us about these fresh attacks in Mykolaiv, once again targeting civilians.
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes, they are hitting civilians and are heading along -- they appear to be hitting them in the
areas where Russia seems to fear that there could be the potential for an advance from the Ukrainians. At least it seems that in the Zaporizhzhia
area where those two people were killed in the Mykolaiv area that is not far from Kherson.
And it is just across the river from Kherson where Russians say that they've been receiving some small attacks from the Ukrainians. Ukrainians
say they've been having some successes, and striking just across the Dnipro River from Kherson. But the Mykolayiv strike two, rather four S 300 surface
and this sales hitting at about 1 am in the morning, as you say one person killed 23 injured one of those injured a child.
Again, this does appear to be Russia, potentially targeting those areas where it thinks Ukraine potentially could be building up forces for this re
offensive operation that Russia believes Ukraine is preparing. And we've seen other indications.
Again, not far from Kherson in the North of Crimea, which is sort of potentially one of those areas, the Russians could expect Ukrainian forces
maybe to advance from the Kherson region across the Dnipro River along the coastline towards your North of Crimea and in the North of Crimea satellite
images show that Russia appears to have pulled out its military hardware from a base.
Satellite images were showing that that hardware artillery tanks as late as January and February this year, but a few weeks ago, satellite images
showed that all that military hardware had gone. It's not clear why Russia has pulled that back?
But it does seem to indicate that potentially, they think that Ukraine could advance along the coastline there near the North of Crimea and
perhaps threaten that particular storage facility. Why Russia chooses to strike Mykolaiv again, when Kherson was being contested, going back to
November last year, Mykolaiv was getting a lot of fire from the Russians. Are we seeing a sort of repeat of that? Not clear but at the moment -- at
the moment those Russian strikes still very deadly.
ASHER: Nic is thank you so much. All right, still to come here on "First Move", Citroen on a path to growth with a new model and a brand new CEO.
We'll hear more about the next. Plus, what a voice? What a voice? South Korea's President offers Joe Biden a slice of American Pie at the White
House there he was saying. We'll have more on this state visit later in the show.
(COMMERCIAL BREAK)
[09:20:00]
ASHER: Citroen has set its sights or rather its headlamps on Southeast Asia, India and South America. The French automaker, which has been part of
-- since 2021 sees these regions as high potential fast growing market that is launching the new petrol engine C-3 Aircross SUV with those markets in
mind.
It follows the C-3 Compact Hatchback which came out last year and with a brand new model comes a new brand CEO. His name is Thierry Koskas. He joins
me live from the C-3 Aircross Launch in New Delhi. Terry, thank you so much for being with us. So congratulations, you're launching the C-3 Aircross
SUV today. Just walk us through how this model features in your portfolio as part of your international growth strategy.
THIERRY KOSKAS, CEO, CITROEN: Well, as you will know, we are introducing a brand new lineup based on the new platform both in India and in Latin
America. Last year, we introduced the first model the C-3 Hatchback, this year, all new C-3 Aircross midsize SUV in both regions of the world. It's
the second step of our strategy that will be a third model next year. And it's a whole strategy of expansion in these new territories for the
Citroen.
ASHER: Right. So these new territories include India, various parts of Southeast Asia, South America, just explain how the C-3 is tailored to suit
those markets. From what I understand you actually got input from potential local customers.
KOSKAS: Absolutely, what we did is the platform and the cars have been designed, engineered in and they are produced both in India and in Latin
America. And it's so important for us to feed the products to the local needs.
India needs are, for example, very specific in terms of features of the cars. And that's why we have engineering centers that are really designed
to car listen to the customer or you see and design the car specifically for these markets. And by the way, we are launching today, the two cars at
the same time in both regions, but they are slightly different and tailor made to each region.
ASHER: And just in terms of what these markets represent for Citroen? Just explain to us what does that represent because obviously there's so much
potential in these regions. They're obviously very fast growing as well.
KOSKAS: There is a huge potential. The objective of Citroen is that, you know, it's very much a European based brand. We want to grow as quickly as
possible to 30 percent of our sales outside of Europe. Latin America and India are two big opportunities for us. In Latina America we have been
present particularly in Argentina now in Brazil.
[09:25:00]
So it's a growth strategy. India, it's completely new. We introduced the brand in 2019. India will become very soon, the third car market in the
world, probably very soon to 5 million cars. So it's a great opportunity for Citroen because we are starting as a new brand.
And we think that we have very many specific things to offer to this market, particularly in the DNA of Citroen comfort is one of the key values
of the brand. This is so important for Indian customers. This is what we want to offer to the market.
ASHER: I mean, yes, you have certainly your sights set high in terms of India, obviously, there's so much potential there. You mentioned it's a new
brand in India. March 2022, you sold just 52 units, obviously, it's brand new, it's a brand new brand for India. And by a year later, you sold over
2000. So obviously, there's very, very fast growth here. How do you sustain that rapid pace?
KOSKAS: Well, the way to sustain the growth is, first of all, to rely on the dealer network. We have today 30 dealers in India very soon, with the
launch of C-3 Aircross, we will have 60 and by the end of next year, we will have 100 dealers and the strategy is one product one new product every
year.
C-3 we have also the electric version of C-3. Now C-3 Aircross the third vehicle next year. This is very important in Indian market to sustain
always the novelty. There is always a big appetite from Indian market to get new products, updates of the product and so on. We want also to cover
very well the territory. That's the growth strategy, one new product every year and 30 more dealers every year.
ASHER: So the growth strategy is a new product every year in terms of staving off the competition because obviously even though you know India
represents so much potential for you actually these three markets do there is competition in terms of other brand SUVs, be it from Honda or Kia just
explain to us how Citroen plans to differentiate itself from those other brands?
KOSKAS: Well, first of all cars are made in India produced in India. We have a very high rate of localization more than 95 percent. But
particularly, we think that we stand out in the Indian market, because we have unique features, -- consult an issue take the all new C-3 Aircross one
of the key features that no competitor has is the possibility to have a five seater version and a seven seater version.
You will not find that in the competition. That's one example of things that make us stand out compared to the competition and that's why we think
we have really something to say in Indian market and also in Latin America.
ASHER: All right. Thierry Koskas thank you so much for being with us. We appreciate it. Alright, still to come here on "First Move" the benefits of
going green and not only for the planet the Asian Development Bank says it pays to embrace net zero.
(COMMERCIAL BREAK)
[09:30:00]
ASHER: Welcome back to "First Move". The opening bell sounding on Wall Street and we got a higher open across the board investors shrugging off a
weaker than expected U.S. GDP number at Tech in the lead after strong results from Meta whose shares are currently up more than 14 percent.
The next big earnings test comes after the closing bell today when Amazon reports profits. Meantime, First Republic Bank as we discussed earlier that
shows only under so much pressure, again, certainly little changed rather falling some 30 percent Wednesday and almost 50 percent on Tuesday.
The deeply troubled bank is still working to study its finances after suffering massive deposit outflows. A lot is riding on where the larger
banks or even the government might be willing to lend support if needed. Tensions continue to keep rising between Taiwan and China but Taipei is
losing diplomatic support from Latin America as Beijing's influence in the region continues to grow. Rafael Romo has more.
(BEGIN VIDEOTAPE)
RAFAEL ROMO, CNN CORRESPONDENT (voice over): China has launched a diplomatic charm offensive with Latin America in recent months. In
September, then Chinese Foreign Minister Wang Yi met with his Argentine counterpart at the U.N. General Assembly.
Two months later, he sat down with Mexico's Foreign Minister at the G20 Leaders' Summit. And in January, President Xi himself delivered a video
address a Latin American and Caribbean forum. China's influence in the region has grown so much and so fast that Taiwan's President Tsai Ing-wen
felt compelled to visit Guatemala and Belize a week after Honduras severed ties with Taipei.
A move Taiwan called very regrettable as the Honduran Foreign Minister traveled to Beijing to establish formal diplomatic ties.
ROMO (on camera): Now only 13 countries in the world diplomatically recognize Taipei over Beijing, which considers Taiwan part of its
territory, despite never having ruled it. Beijing refuses to maintain diplomatic ties with any country that recognizes Taiwan, among them
Guatemala and Belize and in South America, Paraguay.
ROMO (voice over): In its holding presidential elections this coming Sunday and the leading opposition candidate has signaled he may rethink his
country's ties with Taiwan, if he wins.
EFRAIN ALEGRE, PARAGUAYAN OPPOSITION CANDIDATE:--
ROMO (voice over): Efrain Alegre says national interest and foreign policy goals would influence his decision, adding that he's not happy with the
current relationship.
PARSIFAL S'SOLA, DIRECTOR OF ABF CHINA-LATIN AMERICA RESEARCH CENTER: It has worked for decades to maintain Taiwan's presence.
ROMO (voice over): An expert on relations between China and Latin America says Beijing has been filling the void left by the United States across the
region.
S'SOLA: Absence the U.S., what happens? China's participation in the region has been growing for the last two, three decades. And this is its latest
manifestation it's the U.S. pulling back and China gaining ground.
ROMO (voice over): The only Latin American Leader who seems to remain a staunch ally of Taiwan is the Guatemalan President. Alejandro Giammattei
gave side the red carpet treatment when Tsai arrived last month, saying Guatemala recognizes Taiwan as an independent nation and the only and true
China. Tsai and her host tour the hospital build things to a $22 million donation from Taiwan.
[09:35:00]
Her government also donated $1.5 million to equip Guatemala City's airports with air conditioning. On Monday he returned the favor by starting a three-
day visit to Taipei, where he called for a free sovereign and independent Taiwan.
ALEJANDRO GIAMMATTEI, GUATEMALAN PRESIDENT: Yes--
ROMO (voice over): Before departing, the Guatemalan President said he hoped Taiwan would now buy as much sugar and coffee from his country, as it used
to get from Honduras, hoping the unwavering loyalty Guatemala has shown will pay off in the long term. Rafael Romo, CNN Atlanta.
(END VIDEOTAPE)
ASHER: It pays to go green. That's the message from a report by the Asian Development Bank, which says that for developing Asia, the net zero
transition can bring benefits up to five times as great as the cost of change, not just by heading off massive economic losses driven by global
warming, but also via better public health that comes with cleaner air.
The bank says that on the cost side changing around our economies could save 1 percent a year of GDP in the Asian region. Joining us live now is
Albert Park, Chief Economist at the Asian Development Bank. Albert, thank you so much for being with us.
Let's talk a bit more about this new report that the bank has just released on climate change. Just walk us through more broadly, what the global
transition to net zero will mean for Asian economies?
ALBERT PARK, CHIEF ECONOMIST AT ASIAN DEVELOPMENT BANK: Well, the first point to make, of course, is that Asia is more vulnerable to climate change
than any region of the world. You have a lot of populations living in coastal regions, you have a higher frequency of natural disasters, and
we've seen quite a lot of them in the last couple of years alone.
And so because those damages are so high, the benefits of really aggressively attacking the climate change challenge are also very high. And
I think as we learn more and more about the negative damages of climate change, this is becoming more and more obvious that the region will really
benefit from being more aggressive, even then the current net zero commitments to tackle climate change as early as possible.
ASHER: But the fact is that no region in the world operates as an island and the fact that you have two of the world's biggest polluters, the United
States and China not exactly on the best of terms right now. How much does that make things a bit more difficult when it comes to combating climate
change for the region?
PARK: Yes, absolutely. I mean, one of the concerns is a lot of individual countries have made their own pledges towards net zero or divine
contributions to the climate change challenge. But there hasn't been enough discussion about working together and coming up with common standards, a
common goals and even trying to open up coordination across countries.
So that the countries that can address climate change most efficiently can bear a higher burden. And that can only be achieved by some sort of carbon
pricing mechanism, where countries are seeing a similar price signal for what the cause and benefits are of climate change mitigation.
ASHER: Talk to us about just from a macro-economic viewpoint, some of the major headwinds you see for the region, be it for example, trade tensions
between the U.S. and China. Obviously, China's still healing or the region rather is still healing from the pandemic and China's zero COVID policy.
Obviously, there are inflationary pressures on top of that. I mean, how do you ensure that Asian economies remain resilient, as resilient as possible
in the face of all of those headwinds?
PARK: Well, earlier this month, we released our updated forecast for growth in the region. And we are actually predicting pretty resilient growth of
4.8 percent this year and 4.8 percent next year in developing Asia compared to 4.2 percent last year. Now, that's not quite as high as the even higher
rates of growth that were being posted by the region before the pandemic, but it's pretty resilient cover recovery.
At the same time, you're right there, there are major global headwinds, a lot of the risks are still related to the Western Central Bank's efforts to
control inflation. They're still of course concern that the Fed could become hawkish if they're really tried to bring inflation down to low
target levels like 2 percent.
And there's also been recent banking turmoil we've seen most recently with another likely failed bank in the United States, which puts pressure on the
overall financial system because it makes credit conditions much tighter. And this could have negative effects as well on the region.
ASHER: As you and many others have noticed in the past, where China goes, so goes the region, when you think about the fact that it's been a few
months since China loosened it's very strict zero COVID policy. What sort of material effect do you think that will have on the rest of Asia
especially developing Asia?
[09:40:00]
PARK: Well, we've upgraded our growth forecasts for China for this year, from previously 4.3 percent, to now a projection of 5 percent. That
reflects the very sharp shift away from the zero COVID policy. And this has important spillovers to other countries in the region, because China is
becoming an increasingly important part of supply chain relationships.
Chinese tourists also have not been traveling to other regions in Asia; we estimate that about 18 percent of tourists that go to Asian countries
before the pandemic are coming from China. And so the Chinese tourists coming back on the scene will provide a boost to the region but especially
economies that rely more on tourism like Thailand, Cambodia, Laos, Philippines for example.
ASHER: Alright, Albert Park, Chief Economist at the Asian Development Bank, thank you so much for being with us. All right, still to come here on
"First Move", a home coming for Ya-Ya, the panda, why her return to China's -- a deepening rift with the United States.
(COMMERCIAL BREAK)
ASHER: China is widening its already sweeping counter espionage law. I move that's worrying Foreign Businesses Experts say that any organization or
person could now be considered a suspect. The amendment approved by China's top legislative body on Wednesday is in line with an increasing emphasis on
national security under President Xi Jinping.
Anna Coren joins us live now from Hong Kong. So, Anna, what does this mean just in terms of legal risks and also uncertainty for journalists, for
example, for foreign companies but even academics?
ANNA COREN, CNN CORRESPONDENT: Yes, there is so much that is unknown, which obviously is very concerning, but this counter espionage law, Zain has been
updated. It's the first time since 2014. It's banning the transfer of any information related to national security and broadening the definition of
spying.
It's a move that analysts warn could create further legal risks for foreign companies, as you mentioned, journalists, academics, researchers, you know,
people who are visiting or working in China. This revised law will come into effect on the first of July, and it has expanded the definition of
espionage from covering state secrets and intelligence to "any documents, data material or items related to national security and interests".
[09:45:00]
Now cyber-attacks against the state and key infrastructure are also now considered espionage. However, the law is vague and it does not define what
falls under China's national security or interests and here lies the concern. China's President Xi Jinping has made national security a key
priority for his administration.
And analysts believe the revised law is evidence of that as suspicion and tensions with the U.S. and its allies grow and it also comes as China is
reopening to the world after three years of self-imposed COVID isolation. Some analysts say it's feeling rather vulnerable. But there are concerns
about the implementation of the law.
And that really has been compounded by a series of arrests of foreign nationals on espionage charges. Most recently, an Executive at Japanese
drug maker Astellas Pharma, who was detained in Beijing last month and Zain, I think it's also important to mention that last month; Chinese
authorities closed the Beijing office of Mintz Group, an American firm and detain five local staff.
While U.S. consultancy, Bain and Company said that staff at their Shanghai office today were questioned by police. Now authorities they've refused to
offer any details about the crackdown on either company. But certainly analysts believe the move will further spook foreign businesses operating
in China, Zain.
ASHER: Anna Coren live for us there thank you so much. Ya-Ya, the giant panda is back home in China after spending 20 years most of her life to
date actually at a zoo in the United States. Chinese state media says that she landed in Shanghai earlier today.
The Memphis Zoo in the U.S. returned to her as its loan agreement with China expired. But as Selina Wang reports Ya-Ya has become a symbol of
deteriorating relations between the U.S. and China.
(BEGIN VIDEOTAPE)
SELINA WANG, CNN CORRESPONDENT (voice over): Once the symbol of Beijing's goodwill now the center of angry debate in China. This panda in Memphis,
Tennessee has become the latest victim in worsening U.S.-China tensions. Ya-Ya arrived in America with her playmate Le-Le two decades ago as an
emblem of growing bilateral friendship.
But recent videos showing the ones fluffy panda now looking skinny with scraggly fur has sparked outrage in China. Many Chinese people in some
animal advocates accusing the zoo of mistreatment videos on Chinese social media claiming the pandas are being abused quickly went viral against the
backdrop of growing anti-American sentiment.
The rumors often fanned by state propaganda. And meanwhile, Chinese social media users are praising these viral videos of this panda in Russia Ru Yi
playing videos of the active and playful panda through Russia is taking excellent care of the Chinese bear. State TV saying the pandas are helping
the Russia-China relationship.
Chinese and American scientists launched a joint investigation concluding that Ya-Ya has a genetic fur and skin condition that does not impact her
quality of life and has received excellent care, but that message is not getting through. Outside the panda exhibit at the Beijing zoo I asked
people if they've heard of Ya-Ya, the panda.
This man says yes she's abused in America. An 11-year-old boy tells me I heard the U.S. is treating the panda poorly. This man says, isn't Russia
taking good care of pandas. Pandas are happy over there, not like in the U.S. And this man with his granddaughter tells me, pandas and Russia are
very happy why Russians and Chinese are friends. At least Russia is not sanctioning China.
WANG (on camera): Ya-Ya will soon settle in this Beijing Zoo. Now China has long used as pandas as a diplomatic tool. Currently, it's pandas on loan to
about 20 countries that the United States has not received one since Ya-Ya and Le-Le 20 years ago. Now these pandas are normally loaned on these 10
year leases, and they cost a million dollars annually.
WANG (voice over): The Memphis zoo had already planned to send Ya-Ya and Le-Le back to Beijing this spring because their lease is expiring, but Le-
Le died of heart disease two months ago, at the age of 24. The average lifespan for pandas is usually under 30 years.
Yet that didn't stop rampant speculation and led to an explosion of accusations about Ya-Ya's treatment too. Accelerating cost to bring Ya-Ya
back to China. The Message even featured on billboards from New York City to major cities across China. In 1972, during U.S. President Richard
Nixon's historic trip to China, his wife visited pandas in Beijing.
[09:50:00]
PAT NIXON, WIFE OF RICHARD NIXON FORMER U.S. PRESIDENT: On behalf of the people of the United States. I am pleased to be here and accept the
precious gift.
WANG (voice over): Months later, China sent a pair of pandas to the National Zoo in Washington D.C. Now, decades later, this panda is returned
from the U.S. to China symbolic not of growing friendship, but growing animosity between two global superpowers. Selina Wang, CNN, Beijing.
(END VIDEOTAPE)
ASHER: All right still to come here on "First Move", state dinner serenades, the President of South Korea channeling is in a K-pop star and
belting out an American pop classic at the White House. Watch out BTS, that story just ahead.
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(BEGIN VIDEO CLIP)
YOON SUK-YEOL, PRESIDENT OF SOUTH KOREA: I can't remember if I cried when I read about his widowed bride something touched me deep inside the day the
music died.
(END VIDEO CLIP)
ASHER: Follow that this dividend South Korean President Yoon Suk-Yeol performs at the White House during his official state dinner last night as
you heard showing off his vocal range of a slice of American Pie.
After this standing ovation, President Biden presented President Yoon with a signed guitar the songwriter Don McLean. It was a lighter moment during a
very serious visit, which has been closely followed by Paula Hancocks in Seoul.
So of course, this was an eventful visit, I mean, everything from the Americans rather promising a much greater demonstration of military might
in the Indo-Pacific sort of deterred North Korea, on top of that, to South Korea, promising not to develop their own nuclear weapons. But I have to
ask you about that really sort of touching moment of President Yoon singing American Pie. What a charming moment?
PAULA HANCOCKS, CNN CORRESPONDENT: --, as it's known over here is massive in South Korea. And you can see the passion for it goes right to the top.
Now it's interesting, he had a standing ovation for that in the White House; we'll see what kind of response he gets from Congress in about an
hour or so when he's going to be addressing Congress.
His message will be about the 70-year alliance between the U.S. and South Korea. And of course, what we heard on Wednesday this new agreement between
the U.S. and South Korea, the fact that the U.S. is promising more that they are strengthening, as they say the extended deterrence to try and
deter North Korea.
And specifically what was really being headlined, especially over here is the fact that there will be a U.S. nuclear submarine deployed into Korean
waters. And according to a presidential office official that could be within a few weeks. Now, there hasn't been a reaction from North Korea at
this point.
[09:55:00]
This is all obviously Directed towards Pyongyang, but we have had a reaction from China. And the U.S. actually warned China about this
Washington declaration ahead of time saying its all preventative measures against North Korea's missile threats. There's nothing to be concerned
about.
But that's not the way that Beijing saw it. They have opposed they said, the deployment of this nuclear submarine saying, "the actions of the U.S.
reeks of cold war mentality". So clearly, not everybody in the region is happy with this, President Yoon is likely to be happy with the reassurance
that he has had from Washington.
Whether or not it's enough to placate those in this country who were calling for South Korea to have its own nuclear weapons program? Its
unlikely those calls are still strong. There is a majority of people here who believe South Korea should have its own nuclear weapons program. But
what President Yoon has agreed is that South Korea won't if the U.S. can protect them more, Zain.
ASHER: Alright, Paula Hancock's live for us there. Thank you so much. And that is it for the show. I'm Zain Asher; I'll be back in a couple of hours
with "One World".
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