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First Move with Julia Chatterley

At Least 36 Killed in Massive Wildfire in Hawaii; Ukraine: 10,000 Plus to be Evacuated from Kupyansk; ECOWAS Hold Summit on Situation after Coup; Disney Plus to Raise Streaming Prices after Mixed Earnings; A Look at Counteroffensive on Ukraine's Southern Front; Tech Protest in Tel Aviv. Aired 9-10a ET

Aired August 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)

CHRISTINA MACFARLANE, CNN HOST: Hello and a warm welcome to "First Move". I'm Christina Macfarlane in for Julia Chatterley. Just ahead on today's

show Hawaiian horror 36 people now confirmed dead as out of control wildfires rage in the Hawaiian Island of Maui. More than 11,000 people have

been evacuated and thousands still are without power. Officials say it will take years to rebuild.

Plus assassination in Ecuador, the candidates in the Latin American countries upcoming presidential elections has been shot and killed at a

campaign event in the Capital Quito the very latest on the ongoing investigation and where this leaves the violence torn country just ahead.

And inflation in America just released data shows headline U.S. consumer inflation rising for the first time in 13 months to a 3.2 percent annual

rate, month-over-month. However, CPI rose two tenths of a percent in line with June's levels. Core inflation was pretty much in line with

expectations too. And here's the market reaction U.S. stock futures still holding on to some solid games after a weaker Wednesday.

Europe is on the rise for a second straight session and Asian stocks finished Thursday's session mostly higher, modest gains in China and news.

The Biden Administration is placing fresh restrictions on U.S. tech investments there and on the very latest that the Chinese reaction later in

the show.

But first details of today's inflation numbers. Rahel Solomon is joining us live and Rahel, inflation still well above the Feds 2 percent target but

not a bad report overall.

RAHEL SOLOMON, CNN BUSINESS CORRESPONDENT: No, I don't think so Christina, good to be with you. So this is a report that needs some context. But I

think by and large, most people would say is a solid report that shows continued moderation.

So as you said, this is the first time in about a year that headline inflation actually increased, we can show you 3.2 percent on an annual

basis. But Christina, this is a result of what economists called base effects.

Essentially, this number has a lot to do with what inflation was doing a year ago, and a year ago, inflation was very low. And so this number looks

a lot higher as a result. Essentially what it means is that it's a statistical quirk it's a mechanical quirk the way it's calculated.

So let's look at what's happening on a monthly basis. Because Christina, I think that gives us a better sense of what's actually happening with

inflation, as you said, on a monthly basis prices increasing 0.2 percent, or two tenths of 1 percent.

That is holding steady from the month prior. If you look at core inflation, which the Federal Reserve pays especially close attention to because this

is the area of inflation, where they can actually control food and energy not necessarily within the Feds control up core inflation also remain

steady on a monthly basis, two tenths of a percent on an annual basis 4.7 percent so as you said, much higher than the Feds 2 percent target.

When we look at sort of what's happening with prices in terms of categories, so shelter or what our viewers around the world might consider

accommodations that were responsible Christina for 90 percent of the monthly increase that we saw in inflation.

So shelter is still a big contributor there. But we saw declines in areas like airline fares used cars and trucks and medical care so some relief on

that side of the equation. So what does the Fed do with this report?

Well, we have a few more weeks before the Federal Reserve meets again and mid-September, mid to late September. And so they'll get another jobs

report, they will get several more inflation reports. So they will still have more to digest.

But I can say that there is some feeling that a report like this would actually give the Fed some encouragement to actually pause with the rate

hikes. Citibank, in fact, saying this morning, that a report where we saw 0.2 percent inflation which we did, would give the Fed some room to perhaps

pause but a lot more data to come. But I think it is still another report that shows moderating inflation, which is why as you pointed out, markets

are still solidly higher on the news.

MACFARLANE: Yes, markets keeping their fingers crossed for that. But as you say, Rahel, there's just one of the first of a few key metric reports due

out in the next month. Thanks for breaking it down for us, Rahel Solomon there.

Now a monster fire in Hawaii, at least 36 people killed in Maui after a massive wildfire ripped through the island, these satellite images taken

before and after the fire showing the scale of the devastation here one survivor describing the dire situation.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Still get dead bodies in the water floating and on the seawall. He's been sitting there since last night. We've been pulling

people out since last night trying to save people's lives. And I feel like we're not getting the help we need. This is a nationwide issue at this

point. Yes, we need help a lot of help. We got to get people down here.

(END VIDEO CLIP)

MACFARLANE: A desperate situation for residents, Veronica Miracle has the latest details for us.

[09:05:00]

(BEGIN VIDEOTAPE)

VERONICA MIRACLE, CNN CORRESPONDENT (voice over): The view from above is of shock and heartbreak.

RICHARD OLSTEN, DIRECTOR OF OPERATIONS, AIR MAULI HELICOPTER TOURS: We were not prepared for what we saw. It looked like an area that had been bombed

in the war.

MIRACLE (voice over): Wildfires rampaging across the island of Maui.

DUSTIN KALEIOPU, LOST HOUSE IN MAUI WILDFIRE: Our entire street was burned to the ground.

MIRACLE (voice over): Decimating homes and businesses.

JAMES TOKLOKO, DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM: Local people have lost everything. They've lost their house. They've lost

their animals and it's devastating.

MIRACLE (voice over): The historic Town of Lahaina, a popular tourist and economic hub on the Islands West Side, particularly affected with hundreds

of structures impacted.

CLAIRE KENT, HOUSE BURNED IN LAHAINA ON MAUI: It happened so fast, people stuck in traffic trying to get out and they're slain on both sides of the

road like something out of a horror movie.

MIRACLE (voice over): Most of the fires on Maui fueled in part by violent winds caused by Hurricane Dora churning more than 800 miles away. Those

winds now subsiding as the storm pushes away.

MAJOR GENERAL KENNETH S.HARA, ADJUTANT GENERAL, HAWAII STATE DEPARTMENT OF DEFENSE: The primary focus is to save lives and to prevent human suffering

and mitigate great property loss.

MIRACLE (voice over): State Department crews assisting in efforts to restore communication across the islands and distribute water, with

military helicopters aiding and extinguishing the fires.

KENNETH S.HARA: To -- 47 supporting Maui County, they flew 13 hours did 58 drops and about 150,000 gallons of water to assist with suppression of the

fire.

MIRACLE (voice over): Recovery will be a long road ahead, according to Hawaii's Lieutenant Governor, Silvia Luke.

SYLVIA LUKE, HAWAII, LIEUTENANT GOVERNOR: The damage to the infrastructure. It's not just buildings. I mean, these were small businesses that invested

in Maui, these were local residents. And, you know, we need to figure out a way to help a lot of people in the next several years.

(END VIDEOTAPE)

MACFARLANE: And a survivor who narrowly escaped the fire with his family was on CNN this morning, sharing his experience. Take a listen.

(BEGIN VIDEO CLIP)

KALEIOPU: It all happened very quickly. We knew that the wind was bad and we could smell the smoke. It started before noon, the power went out the

telephone, the radio, and then all of our connection was lost.

And that's not uncommon for the infrastructure that we have in line whenever there's a storm like that. But I made my way home that morning

yesterday morning to check in and grandpa, he was fine. Everything was fine just a bit windy, no electricity.

By 3:30 in the afternoon, the fire that it had started a few miles above us up on the mountaintop had made its way down toward our home, and then

crossed its way over the highway to the condominium across the street and lesson. And then our neighbor's yard was on fire.

The smoke was filling our house and we had no choice but to evacuate. We had no time to grab anything. We lost our kitten in the process of

evacuating. And honestly we're grateful to my brother who returned home to retrieve my grandmother's preparing before he left to evacuate as well.

VICTOR BLACKWELL, CNN CORRESPONDENT: And do you know if you confirm that the home is lost?

KALEIOPU: My dad was able to make his way home before he evacuated and met up with us. The home is lost. I can say everything in -- is completely

gone. The aerial footage that I wish I could have shared with you this morning was completely devastating to see when we woke up.

Seeing what our town had transformed into just overnight. Everyone that I know and love everyone that I'm related to that I communicate with my

colleagues, friend's family, we're all homeless.

Thousands of people are homeless in Lahaina. Hundreds, if not at least thousand are still missing and unaccounted for. And we're hoping that the

death toll does not rise to much higher once it's confirmed.

(END VIDEO CLIP)

MACFARLANE: All right, let's turn now to an assassination in Ecuador. A presidential candidate shot and killed after a campaign event. The moment

of the attack appears to have been caught on camera. We need to warn you this video is disturbing.

At least 12 gunshots so what you can hear there on that footage. Police say the suspect died after a shootout. Rafael Romo is joining us now live. And

Rafael this is an event that has shocked the nation just walk us through what happened during the shooting and also why Villavicencio was targeted?

RAFAEL ROMO, CNN CORRESPONDENT: Yes, no doubt about it is shocked the entire country Christina. Fernando Villavicencio had just finished just

finished Christina a speech after a rally held at a school in Quito, the Ecuadorian Capital as he was leaving the school and being ushered into a

car gunfire rang out it was at least.

[09:10:00]

Like you said, 12 shots and all the people who moments before were cheering him on, dove for cover, officials say this was a targeted attack against

the man who wants to describe his own country as a Norco state won by a political mafia.

Authority say nine people were injured Fernando Villavicencio 59-year-old activist journalist and politician who was running in Ecuador's

presidential elections to be held in less than two weeks on August 20th.

He would frequently speak openly against corruption in this country, and have recently said that the mafia had subjugated his homeland. And just to

give you an idea, Christina of how bad the security situation is in Ecuador, seven of the eight candidates in the election were under police

protection.

The attack happened less than two weeks before the August 20th election, but officials say it will still go on as planned. And in a video shot at a

rally just a few days ago Villavicencio said he was refusing to wear a bulletproof vest because the people his supporters, he says wear his

bulletproof vest.

He also said he had received death threats from a known drug trafficking gang in Ecuador. And Current Ecuadorian President Guillermo Lasso vowed the

killing will not go unpunished, and announced a 60 day state of emergency, Christina, back to you.

MACFARLANE: Rafael as you touched on there. We know organized crime has been a real issue in Ecuador for years now. I remember reporting just a few

weeks ago about the revolts within prisons that were happening the situation out of control there, but why has it become so particularly acute

in recent months in the last year?

ROMO: Ecuador's officials are saying is that Ecuador has the tentacles of different criminal groups, not only from inside the country front, but also

from outside, including some say Mexican drug cartels, and what's been happening in the last year.

So you're right. We've been covering this. The prisons have had a particularly really bad problem with some of the gangs facing each other

inside the prison; you get the idea that the criminals have the control, not the authorities.

And this is all only a little taste of what people are experiencing regular people in Ecuador also complaining about a security problem saying that

this is the main issue as we go into an election in just a few days, Christina.

MACFARLANE: Yes, important to remember this is just coming just ahead of the election later this month, Rafael Romo, appreciate it. Thank you. Well,

turning now to several new developments in Ukraine.

Authorities have ordered a mandatory evacuation around a city in the Kharkiv region after intense Russian shelling in the area. Heavy combat is

also ongoing in Southern Ukraine. Meanwhile, the Russian controlled Zaporizhzhia nuclear power plant lost connection to its main remaining

external power line.

A state owned power generating company says the plant is now running on a backup line. All of this comes after the Mayor of Moscow said that two

attack drones were shut down as they approached the city on Thursday morning. Russia's Ministry of Defense says two other drones were also shut

down near a city in the Crimean Peninsula.

Well, Fred Pleitgen is joining us with more on all of this. And Fred, I just want to turn first to the situation in the Kharkiv region this town of

Kupyansk which we know was liberated from the Russians last September. So how significant are these orders to evacuate we're hearing now.

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, certainly indicates that the Ukrainian authorities believe that right now it's

becoming extremely dangerous in that town. And one of the things they have said is why they're doing this is not necessarily.

Because the Russian army is threatening to march into that place or to advance into that place, but because Kupyansk has been under such heavy

shelling and it was quite interesting. I was looking at the mandatory evacuation orders just a couple of minutes ago.

And it seems as though around 12,000 people including 600 children are being told to evacuate that area and it pertains to the town of Kupyansk,

but also a little sort of suburb, smaller town on the other side of a major river that is there.

And that river is very significant, because that is a natural barrier, if you will, for that Russian military that seems to be trying to advance

there. One of the things, Christina that the Ukrainians have been saying are they believed what the Russians are trying to do up there is

concentrate their forces to try and make them some gains to ultra-relieve some of the pressure that the Russian Military is facing in the south of

the country where of course the Ukrainians have been advancing.

Over the last 24 hours or so we've gotten sort of a mixed bag of news from the Kupyansk area. The Ukrainians are saying they are indeed under heavy

shelling they are under heavy pressure. But they've been able to fend off those Russian attempted advances.

The Russians are saying that they have been making some gains but it certainly seems as though right now there's a lot of shuffling going on.

[09:15:00]

There's a lot of dynamic on that front line, but very little in the way of real major territorial gains Christina.

MACFARLANE: And Fred, yet more attempted attacks drone attacks on the Russian Capital earlier this morning, but I believe there were an attempt

to 13 drone attacks in total.

PLEITGEN: Yes, there certainly were. And those 13 drone attacks have happened over the past couple of weeks in the Moscow area, which seems to

indicate that for the Russian Capital, this is becoming a near daily occurrence right now.

And certainly something that a lot of people in Moscow are having to get used to was quite interesting, because when the first drone attacks

happened a couple of months ago, and of course, we've been covering this, as these things have been going on.

The Russians really tried to downplay it, saying that the air defense systems there were working; they were taking some of these drones down

using electronic countermeasures. But recently, they have been speaking of a very real threat.

Of course, one of the things that happened last week was at the Financial District in Moscow, the Moscow City, as they call it was hit on two

subsequent days. And it was a building that houses some financial companies, but also some government ministry offices as well.

So that certainly was something was quite scary for a lot of Moscow residents. The recent drone attack or the one that happened overnight is

also quite an interesting. One drone the Russians are saying was shot down near Kaluga.

That's quite a way off southwest of Moscow, but one was right on the sort of highway ring that surrounds Moscow in the southwest of that it's called

the -- which is sort of the major highway there.

So that almost made it into the Moscow territory, again, showing that right now the Capital seems to be under fire quite regularly. And of course, we

know that the Ukrainians have been vowing that they will bring the war to the Russians and to the Russian capital as well, Christina.

MACFARLANE: All right. Fred Pleitgen there for us appreciate it. Thanks Fred. OK, straight ahead. Another extraordinary Summit is taking place on

the political crisis in Niger the details on that right after the break.

(COMMERCIAL BREAK)

MACFARLANE: Welcome back to "First Move". Leaders from the regional bloc ECOWAS are in Niger to discuss the ongoing political crisis in Niger. The

block had threatened to use force if the country's ousted President Mohamed Bazoum was not reinstated by Sunday.

[09:20:00]

Military Junta has failed to comply. So now leaders are deciding then next steps. The summit comes as coup leaders announced the formation of a new

government comprising of 21 ministers.

Meanwhile, President Bazoum says he has been reduced to eating dry rice and pasture well under house arrest, and that he has no medicine or

electricity. Larry Madowo is joining us live with more on all of this.

And Larry, what more, can you tell us about the health of the ouster of President following that report? And also, if anything of substance has

come out of this meeting yet? It's been running now for a couple of hours.

LARRY MADOWO, CNN CORRESPONDENT: Right, let's start with President Bazoum who's been held since July 26. That is when the Head of the presidential

guard essentially overthrew his boss and declared himself the leader of Niger. And President Bazoum says he's not had human contact since August 4.

Not even his doctor who is the one that used to bring him food and medicine. And he's not surviving, as you mentioned, on dry rice and pasta.

And if they run out of gas, then they won't have any way to cook because where he's being held does not have electricity.

So that is a situation that has led to the U.S. State Department saying they're concerned about his well-being and safety. The Acting Deputy

Secretary of State Victoria Nuland, who was in Niger on Monday, was not allowed to meet with President Bazoum. The last time he met with anybody

was with the Interim President in Chad, Mahamat Idriss Deby Itno who was trying to mediate here.

And after that he's not been seen from so there's great concern about how President Bazoum is doing even as the international community continues to

call him to offer support and call for him to be released. In the meantime, ECOWAS leaders meeting again in Abuja in Nigeria, it's chaired by President

Bola Tinubu of Nigeria and he said that instability in Niger could have far reaching consequences across the entire region.

(BEGIN VIDEO CLIP)

BOLA AHMED TINUBU, NIGERIAN PRESIDENT & ECOWAS CHAIR: Still look to engage the party involved, including the coup he does. And as discussion to

convince them to relinquish power as their yesterday is instead President Bazoum. It is our duty to exhaust all avenues of engagement to ensure a

swift return to constitutional governance in Egypt.

(END VIDEO CLIP)

MADOWO: It's been fascinating to see the ousted Foreign Minister of Niger at this meeting in Abuja. It's not clear how he got there because there's

still a no fly zone and the military junta have closed the airspace but he's there in Niger represented the country and the presidency of Niger has

tweeted a picture of him at that meeting.

So if you're keeping track, the military junta have announced own cabinet including a Prime Minister and these 20 plus Ministers and yet the ousted

Foreign Minister is in Abuja at this meeting, where ECOWAS will decide if they will militarily intervene in Niger or some other action, Christina.

MACFARLANE: Alright, Larry Madowo is keeping costs the latest from that meeting there. Thanks very much, Larry. I want to turn now to J. Peter

Pham. He is a Distinguished Fellow at the Atlantic Council. He also served as the first ever U.S. Special Envoy for this a hell region. Thank you so

much for joining us, sir.

J. PETER PHAM, DISTINGUISHED FELLOW AT THE ATLANTIC COUNCIL: Thank you.

MACFARLANE: So we know that as this meeting is taking place today, critics have been saying that ECOWAS has now lost face and lost ground in their

previous threats to step back to propose and then step back from military intervention, if they are seeking diplomatic solutions right now in this

meeting.

What possible options could they have to deter coup leaders as we were hearing from Larry just then reports this morning that they have announced

their own new formation of a government in just the last few hours?

PHAM: Yes, well, thank you for having me, Christina. The problem is that ECOWAS played this very poorly after an initial good start in the immediate

aftermath of a coup, with a very strong statement, didn't follow through with action. They made the mistake of setting a deadline that was a week-

long, which gave the junta time to consolidate support.

This was a coup launched by the presidential guard, a unit of a couple of 100 men in a much larger military, which was not involved, but that we gave

them time to consolidate support, both within the military and also to rally support among especially a youth populations but other us in Niger

who resented the idea of an ECOWAS threat of military intervention.

[09:25:00]

So that was for up one error, number two was the very elementary way of making a threat that you're not prepared to carry through. In fact, ECOWAS

claims to have a military plan. I don't think there is a military option that would not be catastrophic. It's one thing to intervene to help a

loyalist faction that is staging a counter coup or defending public.

It's a whole another thing to go in against a well-trained, well-armed military. And I think ECOWAS wasn't prepared for that. And then thirdly,

President Tinubu in Nigeria did even secure domestic support. The Nigerian Senate has already told him that they wouldn't support this and Muslim and

Christian leaders in Nigeria have been outspoken against military intervention.

MACFARLANE: And so from what you're saying, I mean, the fallback here position is probably going to be diplomatic solutions. And the reports

coming out of this meeting in the last hour indicate that ECOWAS wants a negotiation and dialogue with the coup leaders.

I mean, I wonder how ready the coup leaders will be to listen to this. And also, we were hearing just then about concerns around ousted President

Bazoum's health? I mean, what do you see as the chances of him being released or even I mean, reinstated seems out of the question right now?

PHAM: Unfortunately, as much as I regret to say so despite winning 55 percent of the vote in Niger less than three years ago, chances of

restoration are increasingly slim. That being said, however, I think, because President Bazoum has finally resigned. That gives him a bit of

leverage.

And I think, first he and other, he's not the only one but other officials who can need to be released. No one's going to find a resignation by

someone who's being held prisoner, particularly credible, and their families have to be secure. Beyond that, I think we have to seek some sort

of a solution that, though its sub optimal.

Nevertheless preserve some of the gains that have been had in Niger in the fight against extremism and in human development. Rather than risk the

country falling into disorder and taking with it the entire region. This country has been the linchpin of the fight against extremism in the Sahel

for some time.

MACFARLANE: We know that the recent visit by the U.S. Deputy Secretary of State yielded very little results, and what options do the United States

have to intervene here at the moment, especially given that they still have a military presence on the ground and two air bases?

PHAM: Well, I think that's part of the equation and I like to look at actually Acting Deputy Secretary of State, Victoria Nuland's visit as the

glass half full rather than half empty. She left it with the offer of the United States, exercising is good offices, some sort of mediating role,

been very telling that would have been violent demonstrations against the French.

The junta has canceled five different security and military agreements with France. And it's likely that the French forces about 1500 currently in

Niger will be forced to leave just as they've been forced out of Mali and Burkina Faso, its neighbors. But there have been no protests at the U.S.

Embassy and no demands for the U.S. to withdraw.

So I think there is a room for maneuver here. It has to be very delicate. It's not going to be to everyone's liking. But I think we, you know, we

can't let the best be the enemy of the good here. And we have to preserve some of the hard won gains that have cost a great deal of treasure, but

also lives.

MACFARLANE: Yes, delicate maneuvers ahead. J. Peter Pham, we really appreciate your perspective on this. Thanks very much for joining us.

PHAM: Thank you for having me.

MACFARLANE: All right, coming up on "First Move", rising revenues but falling subscriber numbers. Disney's mixed earnings means the CEO Bob Iger

is feeling the pressure. We'll dive into Disney after the break.

(COMMERCIAL BREAK)

[09:30:00]

MACFARLANE: Welcome back to "First Move", now U.S. stocks are up and running this Thursday on Wall Street a solidly higher open as new U.S.

inflation numbers coming in pretty much in line with expectations, tech stocks, the biggest gainers in early action that includes Chinese tech

giant Alibaba, the E-commerce firm, reporting strong double digit sales growth in the latest quarter.

But concerns remain on how the slowdown in the Chinese economy will hurt results going forward. And speaking of the consumer a big, big merger in

the world of luxury tapestry, the owner of Coach is buying up Capri holdings for 8.5 billion dollars. Capri is the owner of the Versace, Jimmy

Choo and Michael Kors brands.

Well Disney's stocks up right now after the House of Mouse posted mixed third quarter earnings while overall revenue rose 4 percent on a year ago.

The streaming service Disney Plus continues to drag on the bottom line subscribers fell over 7 percent on the previous quarter.

And despite the dwindling viewership, Disney Plus is raising the price of its ad free streaming tear. Well Tim Nollan is a Senior Media Tech Analyst

at Macquarie and joining us live now. So Tim, the big takeaway from yesterday's report is this aggressive move to increase streaming costs.

So Disney Plus now is costing twice the original price of when this service debuted four years ago. Is this crack this rise and also the crackdown on

password sharing going to be enough here to stem the rot or is the disruptive streaming model as we know it dead.

TIM NOLLEN, SENIOR MEDIA TECH ANALYST AT MACQUARIE: No streaming is very vibrant, I believe and these steps Disney is taking will get it toward

profitability. They have this target of having the direct to consumer business to be profitable by the end of fiscal 24. So you know that's only

five quarters away from now Disney has a September year end.

[09:35:00]

So you know they've been sinking so much into content production as has all the other streaming services for a few years now. And that's why they have

these operating losses. In the quarter that they reported, their streaming services actually yesterday were negative, but they were supposed to be

more negative to guide it to around $750 billion of losses in the quarter.

And they did, "only about 500 million of losses", so it was better and so the steps that they announced, with the price increases, add tear plans to

be rolled out in Canada and Europe. And as you mentioned, the password sharing plan, I think are all steps toward improving that profitability

profile.

Another thing you refer to is, I think you're kind of asking, how will consumers respond to a price increase? Obviously, you're not happy to see

that. But Disney is a very, very popular service. We've seen other streaming services led by Netflix for several years now raising price.

And its initial U.S. price tear for Netflix years ago was $8 and now it's over 15. So there is scope to raise price, there is consumer demand for the

content, as long as there is new, fresh and high quality content hitting that platform, I think consumers will be able to pay for it.

The question then is how do investors look at the subscriber numbers versus the earnings which they're going to generate? That's a bit of a tussle

between those two factors that investors are looking at.

MACFARLANE: Also, we know, Tim, that the box office is not proving particularly fruitful for Disney, either, even though as you rightly point

out streaming not quite as bad as they had expected. What in your view? Will the recent successes of say the Barbenheimer phenomenon have meant for

Disney who have by all accounts put all their eggs in the Marvel basket and that cash machine appears to be fading?

NOLLEN: Yes, well, Barbie and Oppenheimer were not Disney movies, of course, but it is encouraging that they did very well at the box office. So

consumers are going back to the box office after COVID locked down. So that's good to see. Disney had a very, very, very strong run over many

years.

You mentioned Marvel, but also Lucasfilm Star Wars and Pixar and even just Disney's own in house studio that it said for decades, has turned out lots

and lots of hits over the last many number of years. Very recently it's true. The box office attendance has been lower for some of those movies

that Disney has put out.

Maybe that's down to prior management from a few years ago instituting a different process of green lighting and creating films and that didn't seem

to work seems to be one reason why Bob Iger came back as CEO was to reinvigorate the creative efforts at Disney.

And he committed on the earnings call last night to improving the output, you know, making better movies are going to be more popular. They still

have very strong IP, very strong franchises. There are supposed to be more Star Wars movies coming there are Marvel movies, you know, that have come

out they've done well.

I think they will continue to produce high quality content. Again, the question is what is the profitability of these? You used to have movies in

the box office that would then go to pay TV services that would then go on to TV, as consumers are cutting the cord, a lot of that is falling away.

And Disney made this plan a few years ago to put all of these first run movies onto their streaming services. So if they can generate those

subscriber numbers at higher prices, then ultimately that's the big question is, how can their streaming business, turn a profit? And certainly

get better from where it is now and recover a lot of the lost money that Disney has been occurring over the last few years?

MACFARLANE: Yes, we'll be keeping a close eye on what their streaming hikes mean. And of course what happens next, but Bob Iger as you mentioned, he

was reinstated last year to turn around Disney's fortunes hasn't done that yet. Tim, it's great to have your perspective on this. Thanks very much.

NOLLEN: Thank you.

MACFARLANE: Now Beijing is blasting a Biden Administration executive order that restricts U.S. investments in Chinese tech, the White House announcing

the move on Wednesday citing the need to protect U.S. national security. China says it will hurt the global economic recovery. Chinese tech startups

could get hit particularly hard. Anna Coren has more now from Hong Kong.

ANNA COREN, CNN CORRESPONDENT: Tensions between the world's two largest economies are expected to worsen, following U.S. President Biden signing of

an executive order banning new American investments in key technology industries in China, Hong Kong and Macau, that could be used to enhance

Beijing's military capabilities.

This was long expected now we know the details. It will target three sectors, semiconductors and micro-electronics, quantum information

technologies and certain artificial intelligence systems.

[09:40:00]

This means U.S. private equity, venture capital, joint ventures in Greenfield investments will not be allowed to invest in Hope China

developed technologies that could support its military modernization and undermine U.S. national security.

The Treasury Department's released this statement, the Biden Administration is committed to keeping America safe and defending America's national

security through appropriately protecting technologies that are critical to the next generation of military innovation.

U.S. officials said this was a national security action not an economic one. But China wasn't buying it. Beijing strongly believes the U.S. is

trying to contain its rise. The Chinese Commerce Ministry said it reserves the right to take measures in response while the Foreign Ministry released

this statement.

It's a blatant act of economic coercion and scientific and technological bullying. The real purpose is to deprive China of its right to development

and safeguard its own hegemonic interests. This comes as tensions between the U.S. and China are at their most strained in decades.

There's been a parade of top U.S. administration officials recently visit Beijing Secretary of State Antony Blinken, Treasury Secretary Janet Yellen

and Climate Envoy John Kerry in attempts to get the U.S.-China relationship back on track something President Biden desperately wants. But this

executive order expected to be implemented next year could certainly affect those plans. Anna Coren, CNN, Hong Kong.

MACFARLANE: Now still to come on "First Move", and never before seen look at the frontlines of the war in Southern Ukraine. We'll be back with that

after this quick break.

(COMMERCIAL BREAK)

MACFARLANE: We're back now with a CNN exclusive and up close and frightening look at an area of Ukraine's frontlines that no reporter had

seen until our Correspondent Nick Paton Walsh, and we should warn you some of what you're about to see is graphic.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT (voice over): The brutal work here the world hasn't seen but wants its results.

From the west they have words and weapons of support. But out here, it's them alone in searing heat, cloaked in dust in the southern counter

offensive near Orikhiv, Ukraine has the initiative.

UNIDENTIFIED MALE: Come on Dima, fire!

[09:45:00]

WALSH (voice over): Yet they have to shoot their way forward, round by round. The Russians are just past the building on the horizon.

UNIDENTIFIED MALE: Let's keep moving guys. They're very anxious we leave.

WALSH (voice over): With the first journalist to reach this part of Ukraine's counter offensive push south towards Robotine.

WALSH (on camera): -- I'm pretty sure the tank was spotted by the Russians and so now we're moving fast out of here because they're expecting return

fire.

WALSH (voice over): The losses from their earliest assault evidence this or destroyed U.S. supplied Bradley armored vehicle.

WALSH (on camera): In this thick dust these tankers moving forwards to fire Russian positions which they say are beginning to look in parallel, as

Ukraine southern counter offensive pushes forward.

WALSH (voice over): The 15th National Guard have lost many friends here, but also gained ground. It has been incredibly tough, but some faces we saw

over the past week have brightened Robotine has got closer. Some of the assessment of their fight and the tools given towards it great to hear,

they're being expected to do things no NATO army would attempt with equipment they'd scoff at.

The Humvee we travel in with tires so threadbare no American soldier would be expected to drive it. They have no time for armchair assessments that

they're failing.

VITALY, TANK OPERATOR, 15TH NATIONAL GUARD BRIGADE: They are wrong. We have successes. It depends on how fortified they are. Above all, don't

underestimate the enemy.

WALSH (voice over): And that underestimation is visible here in the nearest town of Orikhiv pummeled by the main problem. Russian air superiority and

the half ton bombs they drop. At any moment, it may not matter how much cover you have.

UNIDENTIFIED MALE: Su-35 jet in the air.

WALSH (voice over): We take cover in a basement. One day 20 rockets hit in as many minutes.

WALSH (on camera): The wait now is for what they think is another missile to come in and land.

WALSH (voice over): The smell of death horns, the rubble where entire lives have been torn through.

WALSH (on camera): Now this was the main humanitarian aid point of the town and weeks ago, this was where the remaining locals would be hiding out

getting shelter from airstrikes, but it's taken direct hit and quite a few people lost their lives when this explosion happened. You can still smell

the explosive in the air.

WALSH (voice over): In Moscow's warped world of targeting it is these men, the military medics who feel hunted the underground world in which they

live is hidden as their last two triage points have been bombed. And then the three hours a day they spend above ground this is what happens. This is

rare footage of their frontline rescues.

The painkillers clearly not enough, the treatments given up to 100 miles an hour, over bumpy shelled road, it seems miraculous anyone makes it. In the

back of this armored vehicle, not everyone has. These transfers perilous their vehicles bunched together, perhaps visible to Russian jets.

Sometimes they don't all come back. On Friday, fellow medic, Andrei aged 33 was hit by artillery. They buried him Monday.

EUGENE, MEDIC, 15TH NATIONAL GUARD BRIGADE: We went there immediately. Another team picked up the driver. And that was the hardest thing I ever

did pick up the body and deliver it to the morgue.

VLAD, MEDIC, 15TH NATIONAL GUARD BRIGADE: His family, his mother, they are in temporarily occupied territories. They couldn't even come to the

funeral.

WALSH (voice over): Down here, death is far too close. And they seem to shut it out.

EUGENE: When they hit further than 100 meters away from us we don't pay attention. If it's closer we just laugh hysterically.

[09:50:00]

VLAD: I tell everybody, we will all die, but a bit later, maybe in 50 years.

WALSH (voice over): They need the war to end in months though, not years before nothing but dust is left. Nick Paton Walsh CNN, Orikhiv, Ukraine.

(END VIDEOTAPE)

MACFARLANE: And stay with CNN, we'll be right back after this quick break.

(COMMERCIAL BREAK)

MACFARLANE: Israel's judicial overhaul is having a chilling effect on the country's tech startups with some business owners taking steps to shift

their business overseas. Elliott Gotkine has more.

(BEGIN VIDEOTAPE)

ELLIOTT GOTKINE, CNN TEL AVIV (voice over): Tel Aviv last Saturday night, and nearly every Saturday night for the past 30 plus weeks, tens of

thousands of Israelis protesting against the government's judicial overhaul among them Chen Amit along with his family.

CHEN AMIT, FOUNDER AND CEO OF TIPALTI: We derived from democracy and we fight for democracy.

GOTKINE (voice over): When he's not protesting. Amit runs an $8 billion financial technology startup. The judicial overhaul he says and the

uncertainty disruption and risks that come with it has forced him to shift money and talent overseas.

AMIT: But we're holding all our funds outside of Israel, outside of payroll in Israel for a few months. That's actually a contractual obligation. One

of our banks enforced on us, there was a business continuity risk. So we applied for and received the blanket L-1 visa in the U.S, a visa that

allows us in with a few days' notice to relocate as many employees as we need.

GOTKINE (voice over): Within the next 18 months, I might expect 15 percent of his Israeli staff to move. He's not alone. A recent poll from the non-

profit startup nation central found almost 70 percent of startups are taking steps like shifting money workers, and even their headquarters

outside of Israel. At the same time, money going into Israeli startups is plunging.

ARI STRASBERG, VP OF STRATEGY AND CHIEF OF STAFF START-UP NATIONAL CENTRAL: That 70 percent reduction from last year to this year. But the trend is

also worrisome because when you see in the U.S. where it's starting to ease off and actually start to climb, we've seen an additional decline of 30

percent in the last quarter.

GOTKINE (voice over): Adding to the gloom declining shackle and warnings from Morgan Stanley Moody's and even officials from Israel's own Finance

Ministry that the judicial overhaul could do serious damage to the economy. The government's response, keep calm and carry on.

This is a momentary reaction, when the dust settles it will become clear that Israel's economy is very strong. But with a smaller or shrinking tech

ecosystem, it may not grow as fast as it could.

GOTKINE (on camera): Outside the reserve is refusing to sell the possibility of Israel stable tech startups rushing for the exits,

represents perhaps the biggest threat to Israel's future.

[09:55:00]

Technology accounts for half of all exports and if companies start to leave Israel's best and brightest may not be far behind.

GOTKINE (voice over): Protesters still hope the government will reverse course, or that laws designed to weaken and reduce the independence of the

Supreme Court could be struck down. With neither of those happen the so called startup nation may soon need to find a new nickname. Elliott

Gotkine, CNN, Tel Aviv.

(END VIDEOTAPE)

MACFARLANE: And finally on "First Move", a big day for billionaire Sir Richard Branson. Virgin Galactic the space tourism company he founded is

preparing to launch its first passengers to the edge of the cosmos. Mission gets off the ground in New Mexico in just over an hour's time taking off

like a conventional airplane at a designated altitude.

The mother ship will release the rocket powered space plane which fires its motors to send it shooting towards the stars. Three passengers are on board

including a Former Olympic Canoeist and a health and wellness coach. Amazing, we wish them the safe flight. And that is it for our show. Stay

with us, "Connect the World" is coming up, after the break.

(COMMERCIAL BREAK)

[10:00:0]

END