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First Move with Julia Chatterley
Fire in Johannesburg Claims Dozens of Lives; Russia: Four Drones Shot Down in Separate Incidents; White House Approves Direct Military Aid to Taiwan; Idalia Leaves Trail of Destruction across Florida; Baidu, Sensetime Unveil ChatGPT-Style Bots; Police Warn Driver for Carrying Bull. Aired 9-10a ET
Aired August 31, 2023 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JULIA CHATTERLEY, CNNI HOST: And a warm welcome to the "First Move" fantastic to have you with us this Thursday. And another busy hour ahead,
including Johannesburg horror, more than 70 people have lost their lives after fire tore through a building where migrants lived. We've got a live
report from the scene as the rescue and recovery efforts continue.
Plus, the Idalia's fury the remnants of the powerful category three hurricane still reeking havoc in the Southeastern United States. Officials
saying some harder hit areas may never look the same amid monster storm surges and dangerous flooding.
And factory fumble; manufacturing activity in China contracting for a fifth straight month the numbers actually not as bad as feared but new signs too
that the property sector weakness is also weighing on consumer sentiment and that data certainly hitting Chinese investor sentiment overnight.
Stocks closing lower on Thursday Japan posting a nice gain however, though all the major Asian stock markets ending August in the red, the HANG SENG
tumbling more than 8 percent as you can see there on the month that Shanghai down some 5 percent plus too.
Now, it's U.S. data on tap. The Fed's preferred measure of inflation the core PCE Index rising a modest and expected two tenths of a percent last
month that comes out to around a 4.2 percent annual rate of inflation just remember that still twice as high as the Federal Reserve's target.
The market response to you well, U.S. stocks do remain on target for a mostly higher open as you can see the DOW the outperformer green arrows in
Europe on the screen as well. The major U.S. averages in fact paring a large portion of that August losses this week, I mean new data showing the
U.S. jobs market is easing, with most market participants now predicting that the Federal Reserve will hold rates steady at its September meeting
that's a sigh of relief for stock market investors certainly.
Plenty to come as always, but we do begin with the tragedy in Johannesburg. Firefighters and rescue crews searching through charred remains after a
fire in the city's central business district claimed the lives of at least 73 people.
Fire broke out in what's described as a hijacked building one that's been taken over by people who couldn't afford to live elsewhere. It appears many
of the occupants were asleep when the fire started. No clear statement yet on what may have caused the fire but officials don't believe it was started
David McKenzie joins us now on this. David just a terrible tragedy there in Johannesburg and of course, difficult I guess to get a sense of who also
might be lost and injured in this given the people that were staying there. What are the authorities saying at this stage and what the survivors are
telling you too?
DAVID MCKENZIE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well Julia, they're telling us of a horrible early morning hours when a fire ripped through
this building behind me and you can see those gutted windows as people desperately tried to get out.
Now one person said they were locked in and though that doesn't believe that the stage at this is a deliberate fire. Investigation is still going
on and fingers are being pointed to what a horrible human tragedy this has been. There have been bodies put out on the street earlier. They were
forensic teams here trying to start identify the charred remains and any children Julia amongst the dead.
This is what's known as a hijack building which means it was taken over by gangs, and then leased to mostly migrants who were squashed into living
quarters that one opposition leader said is like living like pigs. I spoke to a witness who was there and a survivor when the fire break out.
(BEGIN VIDEO CLIP)
WISEMAN MPEPA, FIRE SURVIVOR: Listen if people are easy, they make noise. Yes is fire fire, fire, fire, fire, when I'm wake up. I guess it's in the
gate. I see the fire especially when we are going to into nothing. After that I come back to my room. Then I broke a window. When I broke the window
the head is intact but the body is not in touch.
So I come back into getting the fire is full after that as I don't have any plan. I just -- then something is come to me --
MCKENZIE: The smoke?
MPEPA: Yes, the smoke was coming to me. Yes. After that, I just the fall down. Then from there, I don't know anything until now.
(END VIDEO CLIP)
MCKENZIE: He blacked out and several of his family members are missing. There have been firefighters on the scene at this stage. Of course, it's a
recovery mission by those firefighters who are praised for getting in here and managing to save some people.
There were people who were tying blankets and comforters to the bars of the windows and trying to get out anyway there could have witnesses say it was
an awful scene. And now there is definitely a sense that this is shocking.
But not surprising because of the state of housing in this country, and particularly in the city, where an informal settlement basically can be
squeezed inside a building like this operating completely illegally, under the nose of the city and national authorities, Julia.
CHATTERLEY: David, huge questions to be asked to your point there as well. When I was just looking at the building behind you and trying to get a
sense and as we were showing some of those images with the bars that some of the fire crew and the rescue crews were growing through?
I know it's a tough question. But what about things like fire escapes, and doors and windows are able to be opened? I mean, that gentleman was saying
that he actually put his face I think it's his head through the glass in order to try and break the window. What do we know about those kinds of
MCKENZIE: Well, one big question we've asked people, they seem to be in some kind of barricade or locked door. We don't know if that was for
security, or there's some other explanation to that.
But imagine that like an apartment building with apartments inside, but those were subdivided, sometimes 10 to 15 people living in one apartment.
The person we interviewed the witness, sorry, the survivor, he said there are at least six of them living in there. This is what people can afford.
And because it's basically illegal, it means that it flies under the radar, at least one opposition figure blaming local leaders for being involved in
this. There is no direct evidence that I have seen, but it has been talked about and the problem has, at times tried to -- they tried to solve it.
But this is a poor country with people needing places to live and not affording it. And just a few miles down the road is one of the richest
parts of Africa. So it's very jarring. And the death toll is so extreme more than 70 people dead in the fire like this, that it's really shocked
CHATTERLEY: Certainly in our thoughts with everyone involved. David, thank you for that! Idalia losing strength but continues to pound parts of the
Southeastern United States. Now downgraded to a tropical storm it's moving along the coast of North Carolina as you can see there.
Idalia stopped at Florida, though as a category three hurricane on Wednesday destroying homes and dropping heavy rain on the region. CNN's
Carlos Suarez joins us now from Tampa, in Florida. Carlos now the cleanup operation begins talk to us through what happened there?
CARLOS SUAREZ, CNN CORRESPONDENT: Yes, that's right. So the cleanup effort is well underway here in Hillsborough County. The lone mandatory evacuation
out here was lifted yesterday. So the folks that evacuated ahead of that storm were allowed to return.
Now just to the west of us is Pinellas County that is home to the St. Pete and Clearwater area. The mandatory evacuation order there has also been
lifted. And some of the flooding that we saw there yesterday has disappeared. The floodwaters there have receded.
Now it is a very different story a little bit further north of where we are about two hours to the north here in Pasco County. That is where thousands
of homes were told are currently underwater and at least 150 families had to be rescued overnight.
SUAREZ (voice-over): Hurricane Idalia barreled through Florida Wednesday making landfall near Ketan Beach.
UNIDENTIFIED MALE: My house is down at Ketan. I don't know if it is there or not. But this right here I don't know. I don't know if may have a house
to go onto.
SUAREZ (voice-over): The eye of the storm ripped through Florida's Big Bend region with maximum sustained winds of 125 miles per hour. Resulting in a
once in a century weather event.
UNIDENTIFIED FEMALE: That was bad that was heavy, heavy winds. Worst I've ever been in.
SUAREZ (voice-over): The category three storm left homes demolished and streets flooded.
UNIDENTIFIED MALE: Well, we clearly have significant damage throughout the Big Bend region.
SUAREZ (voice-over): This family in Perry, Florida watched as trees fell directly on their home.
UNIDENTIFIED FEMALE: Oh my Gosh! No. It's OK. It's OK.
SAUREZ (voice-over): Up and down Florida's West Coast record breaking storm surge occurred in Citrus County Crystal River left devastated by
DOUG BABER, CITY MANAGER, CRYTAL RIVER, FLORIDA: People are actually really going strong and we are -- an entire City of Crystal River is in a flood
zone so we have no choice but to move to higher ground.
SUAREZ (voice-over): Further south along the coast in Hudson Beach crews rescued residents by boat as the floodwaters came rushing into their homes.
UNIDENTIFIED MALE: I can't believe this. I have never seen anything like this.
SAUREZ (voice-over): This family rescued but heartbroken to leave everything behind.
UNIDENTIFIED MALE: It just came in before you can get out man like so quick. We're trying to get into the truck and it's up to the -- really able
to get the doors open.
SUAREZ (voice-over): In Pasco County around 150 residents were rescued from flooded neighborhoods. This home caught fire in the midst of the
floodwaters. Michael Bobbitt from Cedar Key Florida says he stayed behind to weather the storm.
MICHAEL BOBBITT, RESIDENT OF CEDAR KEY FLORIDA: These are all little old school Florida villas, and they were just picked up and carried into the
gulf. So that was heartbreaking to see.
SUAREZ (voice-over): One resident on Anna Maria Island posted this video of her swimming through floodwaters at four in the morning.
ALEXIA DELEON, RESIDENT OF ANNA MARIA ISLAND, FLORIDA: Cars were flooded the trailer homes. I mean, it was up to our knees our waist; we're riding
bikes through it so it got pretty high.
SUAREZ (voice-over): Idalia then traveled north through Georgia into South Carolina, where the storm surge reached nine feet in Charleston, according
to the National Weather Service, leaving roadways throughout the state treacherous. This car in Goose Creek, South Carolina flipped over in the
middle of the road.
SUAREZ (on camera): And so we expect these rescue operations to take place throughout the day, especially in the northern part of the State of Florida
as this -- as all of this water still needs to recede. Julia as of this morning, about 140,000 homes and businesses in the State of Florida are
without power. And so the restoration effort has to get underway on that front as well.
CHATTERLEY: Much work to do. Carlos Suarez, thank you so much for that. And new this morning a group of pro-Ukrainian Russian Guerrilla fighters have
claimed responsibility for Sunday's drone strike in Russia's Kursk Region.
The group called "The Russian Volunteer Crops" says the attack struck a residential building and that they worked in tandem with the Ukrainian
Security Service. And overnight Russian officials say three drones were shut down in the Bryansk region.
The attack comes one day after the biggest drone strike on Russian soil since the war in Ukraine began. The Mayor of Moscow said a Ukrainian drone
bound for Moscow was destroyed. Melissa Bell joins us now on this. Melissa, the Guerrilla groups crediting aside it does say something I think about
Ukraine's homegrown manufacturing capabilities in drones.
Of course, because there are limits on the weaponry that they've received from other countries around them or NATO countries in particular that they
can't be used outside of Ukrainian soil. It's sort of interesting to note what we're seeing in terms of drone use here, elsewhere?
MELISSA BELL, CNN CORRESPONDENT: That's right. The Ukrainian say that their own drone making capability has increased substantially and yet, Julia,
they never comment on any of these drone attacks, neither confirming nor denying.
You mentioned a moment ago, that a Russian group it is Ukraine based were made up of Russian citizens that is not just opposed to the war, but
opposed to Vladimir Putin's regime. And it is one of two principal paramilitary groups that has regularly over the course of the last few
months, been carrying out. It says incursions onto Russian soil. And that happened once again.
Again, Ukrainians neither confirming nor denying any involvement or indeed any of the facts of the matter, but it is a reminder of how porous the
borders have become. And it is a reminder also of the fact that this is a war that is increasingly being fought on Russian soil.
And that was one of the words from the Ukrainian President's Office after that massive drone attack of Tuesday to Wednesday night that this war is
increasingly finding itself on Russian soil and that that cannot be stopped.
It's important to remember meanwhile, that here on Ukrainian soil it continues to cause misery to so many Ukrainians and specifically Julia,
beyond those who are fighting this counter-offensive, the very many tens of thousands of Ukrainians who find themselves in the towns that by accident
of geography have found themselves on the divide between Ukrainian soil and Russian soil now for nearly a year and a half.
We went to visit one of those towns very close to where the recent gains of the counter offensive were made along that South Zaporizhzhia front and it
took us five checkpoints on the Ukrainian side to get to it. It is a veritable no man's land of misery that has been there for 18 months.
BELL (voice-over): The waters for the animals left behind Svetlana draw some each week as she waits for her own supply or rather her villages. It's
too dangerous for emergency services. So she will carry it the rest of the way.
I can't abandon the people she says the elderly she quotes the Soviet era saying if not you then who? But even in the center of Stepnohirsk there
aren't many people left. The Russians are only five kilometers away.
BELL: Residential buildings like this one have been on the frontline of this war for nearly a year and a half. The shelling say the few residents
that are left here is day and night. About five to 600 civilians left in his town from several thousand before the war.
So far, they say that the counter offensive hasn't made things much worse in terms of shelling neither they say has it made things any better? It's
dangerous every day says -- overnight, the roof of that house was hit. There was shelling yesterday afternoon, and a building was on fire just the
As we inspect the damage done by last night's artillery fire a Russian drone inspects us exploding just as we leave. But little phases the local
emergency services that've been showing us around. People are used to the war says Mikola Malikin before a shell interrupts him.
Those the emergency services can't get to rely on people like Svetlana. She will now walk with what she can push on her bike for more than an hour
towards enemy fire. But with her dog for company she says she's never afraid, Melissa Bell, CNN, Stepnohirsk, Ukraine.
BELL (on camera): One of the questions we had as we went to visit this town Julia was who stays in those circumstances? The answer is the elderly and
those who simply can't afford to leave. What we've been hearing over the last few days are the beginnings of mandatory evacuations of families with
These are people who had refused to leave so far who are reluctant to leave now but the Ukrainian authorities are forcing to leave for the good of
their children Julia.
CHATTERLEY: Yes, what spirit? An incredible woman and her dog of course too. Melissa Bell, thank you so much for that. OK, coming up here on "First
Move", a historic decision by the Biden Administration to provide military support to Taiwan also ratcheting up tensions with China. Plus, not your
garden variety property crisis Chinese Developer Country Garden warning its debt woes could worsen what that means, next?
CHATTERLEY: Welcome back to "First Move", the United States is threatening North Korea with fresh sanctions if it helps to rearm the Russian military.
According to U.S. intelligence, the Kremlin is trying to obtain all kinds of weapons for its invasion of Ukraine. The report comes despite an
outright denial from Pyongyang.
Paula Hancocks is with us now on this. Paula, it certainly through the visit by the Russian Defense Minister to Pyongyang last month into new
PAULA HANCOCKS, CNN CORRESPONDENT: It does Julia, yes, we just heard from the Kremlin as well having a denial from them to Dmitry Peskov the
spokesperson saying on a call with journalists that the two countries maintain a mutually respectful relations and North Korea is Russia's
But there was a deflection when it came to answering the question as to whether or not the two sides are close to a potential arms deal. Now, this
U.S. intelligence report and Biden administration officials have pointed to this meeting that you mentioned the Russian Defense Minister going to
Pyongyang back in July.
He was seen at a military parade with the North Korean leader, Kim Jong-Un. He was seen walking around an arms exhibition with a North Korean leader as
well surrounded by different weapons systems and they say that they believe they are close to signing a deal. And they also point out that as the U.S.
Ambassador to the U.N. says that it is a violation of U.N. Security Council resolutions which Russia has also signed on to.
(BEGIN VIDEO CLIP)
LINDA THOMAS-GREENFIELD, U.S. AMBASSADOR TO THE U.N.: United States is now able to share that Shoigu's visit was more than just a photo op. Russia
used this visit to the DPRK to try to convince Pyongyang to sell artillery ammunition to Russia.
(END VIDEO CLIP)
HANCOCKS: Report also saying they believe there has been a subsequent meeting in Pyongyang as well with the Russian officials going back. It's
something similar to what we heard from South Korean intelligence officials earlier this month as well.
The NIS did say that they believed that they were discussing an arms deal when the Defense Minister was in Pyongyang saying that they also believe
that joint military exercises had been proposed by Moscow and that a Russian plane is believed to have transferred unknown military supplies
earlier this month from Pyongyang.
Now CNN has no way of knowing what was on board that plane but this is certainly something the South Korean intelligence officials and the U.S.
intelligence officials believe is close to the fact that they are close and in fact, "actively advancing talks of a potential arms deal".
Now as I say it's been deflected by the Kremlin has been denied by North Korea, but it is something that has been believed to be an issue since late
last year. The U.S. intelligence officials at that point saying that they believe that there had been some kind of deal done and there have been some
weapons sold to the Russian mercenary group Wagner at that point against something North Korea had denied.
But it is undeniable that the two countries have seen a closer relationship in recent years. And certainly it is a worry from the South Korean side
that if North Korea is going to provide much needed weapons and artillery to Russia, what will it receive in return, intelligence officials saying
that they fear there could be missile and nuclear know how coming the other way to Pyongyang, Julia.
CHATTERLEY: Certainly any U.S. shot across the bow to North Korea as well that if indeed this does take place, and there will be consequences. Paula
Hancocks, thank you for that. Now, the Biden Administration has approved the first ever transfer of U.S. military aid to Taiwan.
Under a State Department program normally available only to sovereign nations. The package totals $80 million, and U.S. taxpayers will be footing
the bill. This new level of U.S. support for Taiwan will not go down well in China, which claims the self-governing Island as its own. Kylie Atwood
has more from the U.S. State Department.
KYLIE ATWOOD, CNN U.S. SECURITY CORRESPONDENT: The U.S. government has green light funding for a new type of military assistance program to Taiwan
that's typically reserved for sovereign nations. That's according to the State Department which notified Congress this week that they were moving
ahead with this type of financing.
And this type of financing because it's typically reserved for sovereign nations is likely to enrage China of course, the U.S. military, the U.S.
government has sold Taiwan military equipment in the past, but this is a new type of program that's being used, which is significant and likely to
make China frustrated because they don't view Taiwan as a sovereign nation.
Also the difference between, this kind of assistance program versus the other military assistance that the U.S. has sold to Taiwan is that this
type of assistance is actually paid for by U.S. taxpayer dollars. And that means that the U.S. government is essentially giving a grant to Taiwan to
be able to pay for this military equipment.
Now, this military equipment isn't likely to actually get to Taiwan for months or years from now. It has to go through the Pentagon's typical and
long processes before it can actually get there. And the alert that went from the State Department to Congress earlier this week, notifying them
that the U.S. government was moving ahead with this financing.
Wasn't specific about what military equipment will be included in this $80 million package. But it did cite a number a range of possibilities
including air and missile defense systems, drones, military training programs, you know, a whole host of options that Taiwan will now be able to
get through this new grant from the U.S. government, Julia.
CHATTERLEY: Kylie Atwood there. And the Chinese Foreign Ministry has responded say they stand in firm opposition quote, to this decision. Now,
rising Taiwan tensions coming amid a more property pain for Beijing heavily indebted developer Country Garden reporting a huge loss for the first half
of this year.
The company warning once again, it could default on its debts and admitting key errors in judgment that have exacerbated the challenges, as Kristie Lu
KRISTIE LU STOUT, CNN INTERNATIONAL CORRESPONDENT: Last year was China's largest residential developer, now Country Garden is battling a liquidity
crisis. On Wednesday, they warned it could default on its vast debts, as it reported a loss of $7 billion for the first half of the year.
And in a filing to the Hong Kong stock exchange Country Garden said this, "The Company felt deeply remorseful for the unsatisfactory performance". A
Country Garden has nearly $200 billion in total liabilities and is facing mounting pressure to pay off its debts.
It said it was caught off guard by the depth and persistence of China's property slump, especially in smaller Chinese cities. For the past two
years, China has been mired in a historic property slowdown resulting in uncompleted homes and unpaid suppliers and creditors.
And the slump has been deepening, with new home sales falling more than 34 percent year on year in July. Chinese officials have introduced measures to
shore up the market. On Wednesday, the Chinese mega city Guangzhou relaxed mortgage rules for homebuyers, and let's say such measures have not been
Consumers are reluctant to buy new homes because of falling home prices and rising unemployment. And with Country Garden now warning of default, some
fear the liquidity crisis could spread to China's wider economy and even abroad. Kristie Lu Stout, CNN, Hong Kong.
CHATTERLEY: And the Chinese Central Bank is announcing in the past hour that it's cutting mortgage rates for first time homebuyers. It's the latest
move from Beijing to try and shore up confidence in the sector but the down payment ratio for first time buyers still at a sizable 20 percent.
All right coming up after the break, nine foot to storm surges turn roads into rivers. Idalia weakens but still causes massive damage and disruption.
CHATTERLEY: Welcome back with the return to the extreme weather in the United States and just take a look at this dashcam footage of a car picked
up and tossed from the road like a child's toy. Two people were taken to hospital though with minor injuries. Wow, just take a look at that.
Meanwhile, as Idalia weakens into tropical storm homeowners instead of key Florida face carrying up damage like this. It was the most powerful storm
to hit that region in more than a century. Let's bring CNN's Dianne Gallagher who is at Wrightsville Beach, North Carolina where the storm is
set to hit now. Dianne waterproofs on and definitely no surfing in those waves behind you, it looks pretty rough there.
DIANNE GALLAGHER, CNN CORRESPONDENT: You know, Julia, there's actually one surfer who is out there. I don't know he's still coming. We saw him
catching some of these waves a couple of moments ago. Actually he's right back going out again. It's sort of the remnants of Idalia as she goes out
into the ocean passing over the coastline here in North Carolina.
You're seeing these gnarly waves as they just sort of bash up against one of the many peers that litter the coastline of this state. This morning, we
were dealing with gusts of about 45 miles per hour, 72 kilometers per hour those tropical storm force winds still feeling them with much rain that we
had as well.
There was some isolated flooding in North Carolina and South Carolina. In fact, in Charleston, South Carolina, they saw more than nine feet of water
because of this storm surge that Idalia brought in coupled with the rain and the king tide these highest of high tides that happen because of the
alignment of the Earth and the Moon at certain points of the year.
And so it was truly a perfect storm for intense amounts of water but as quickly as it came here on the East Coast, it has receded with no
significant damage although there were several tornadoes spotted as well as water spouts in this area. Again, the big concern now goes into this water
here the ocean itself because hurricane Franklin out in the Atlantic created swells off the coast of North Carolina as well as Idalia coming in.
And so underneath the surface, they fear that coming up there's a holiday weekend here in the United States that visitors to this area it's very
popular over Labor Day weekend, are going to need to stay out of the ocean unless they are experienced surfers because of dangerous rip currents and
just swells and tides that may not be suitable for tourists to the ocean. Again it is a very busy weekend, typically in this part of the country all
along the east coast.
So officials here are mostly concerned about that at this point, feeling as if they really dodged the worst of what they expect it to be a very
terrible hurricane reaching this part of the country again as a tropical storm, and then moving off into the water.
CHATTERLEY: Yes, it's such a good point. But as you point out, the weather can still be very dangerous. I think I saw the head of your surfer at one
point over your left shoulder there.
GALLAGHER: You can see the pie coming in right now to --
CHATTERLEY: -- just turn around again. Let me see if we can see our surfer there. Yes you see that? I can think I can see him.
GALLAGHER: It's our surfer is out here. You might be -- oh, yes, he is right back there.
GALLAGHER: He may come up. We've seen him catch a couple of waves actually, as they come in. There were a bunch of them out here as the tropical storm
and when Idalia was still a hurricane as it was coming in before it became a tropical storm. We actually saw a bunch of surfers, dozens of them out in
the ocean catching those waves.
The Emergency Management Director here in New Hanover County warning people not to get into the water, but noted that he himself is a surfer and said
if he wasn't busy trying to keep people safe, he would have been out in the water as well pointing out that most surfers who would dare get in the
ocean in these conditions are well aware of what they can handle.
And will get back out before it becomes too dangerous for them. The waves have looked amazing. I'd like to be out there and board myself. But instead
I'm here like head to toe and rain here probably the safer option for me --
CHATTERLEY: That's about to say, we'll call that brave and be diplomatic over any other words. You have to stay safe. Dianne, great to chat to you
thank you. We're back after this.
CHATTERLEY: Welcome back to "First Move", stocks are up and running as Wall Street takes place for the final session of August all the major averages
pairing ahead in early trade. U.S. stocks now on track for a fifth straight day of gains. And a nice late August flourish to but stocks still down for
the month overall.
The bulls getting a boost from just released inline inflation numbers so nothing to panic about there. The big test comes tomorrow too when the U.S.
releases its monthly jobs report. And Yes investors in Switzerland's biggest bank applauding today's results the first in fact since UBS
announced it was absorbing Credit Suisse.
The lender today unveiling plans to reduce worker headcount in Switzerland as part of a billion dollar cost cutting drive, thousands of course Credit
Suisse bankers have already left globally. And Anna Stewart joins me now. Anna, we really are missing the point there in terms of the numbers.
Can we please talk about that enormous what near $29 billion profit basically down to what's called negative goodwill, the asset value minus
the price you paid?
ANNA STEWART, CNN REPORTER: Was this the deal of the century?
STEWART: I mean, everyone wants to know what happens after a shotgun wedding don't mean, the honeymoon has gone on a bit too long. As far as I'm
concerned, these results have pushed back. That was the headline figure. I think that really stole the show today, just what a deal this was?
Despite all the Credit Suisse's problems, it was pretty much accounting for the entire quarters profit for UBS. So that was point number one. Point
number two, this was more controversial. It's been the announcement that UBS is going to integrate Credit Suisse's domestic bank into their
operations in Switzerland.
There was so much opposition on this point, right from when acquisition was first announced. I remember protesters outside both headquarters,
essentially, it means that I think about one in three people in Switzerland will be banking with this group so clearly a drop off in terms of
competition but also even going into these results.
A few weeks ago, UBS announced that they would no longer need that $100 billion plus government backed loan. They don't want taxpayers on the hook
for this, they don't need a guarantee. So that share price we're seeing today UBS shares up over 5 percent. Not surprising at all, because by and
large, this was a very good result.
CHATTERLEY: Yes. And actually, Sergio Ermotti this returned CEO said, actually, it looks big, but we're going to need it to sort of get down to
an efficient, streamlined banking after this. That's sort of the next question. And I think there was certainly fears around what this would mean
in terms of cost cuts, stripping back potential job losses too, Anna.
STEWART: Well, that'd be the other massively negative story, particularly in Switzerland. I think it's just how many jobs will be lost, and they
haven't put a finger on the total number. But we know that 8000 jobs have disappeared from Credit Suisse voluntarily people have left.
We know that today they've earmarked another 3000. However, looking at the cost savings target, which is $10 billion by the end of 2026. I think we're
looking at many thousands more jobs. And the only information we really got on that is that job cuts would be spread over a couple of years.
But some analysts today predicting that could be between 30,000 and 35,000 jobs globally, overall. So that is a massive number and in Switzerland. If
you didn't work for Credit Suisse, UBS, so it'd be very hard for some people, I think to find a job elsewhere.
CHATTERLEY: Yes, huge shift for the financial sector workers there certainly. Anna, thank you, Anna Stewart there! Now, from own school
banking giants to the promise of game changing AI to Chinese tech firms officially jumping on the generative AI bandwagon Thursday.
Important news for the world's second largest economy as it charts its high tech future, as Michelle Toh reports.
MICHELLE TOH, CNN REPORTER: Chinese tech firms Baidu and Sensetime have just launched their answers to the ChatGPT craze, rolling out their AI Bots
today to the general public. The move marks a new milestone in the global AI race, which is heating up.
Baidu for one is now letting all users get their hands on its platform, which is dubbed Ernie Bot. This tool allows users to conduct AI powered
searches or carry out an array of tasks from creating videos to making newsletters to providing summaries of complex documents.
Now the news sent Baidu shares up immediately surging more than 3 percent in New York on Wednesday, and nearly 5 percent higher in Hong Kong on
Thursday. Baidu is among the first companies in China to get regulatory approval for this rollout. And it's the first to launch this type of
service publicly, a source tells me.
Until now Ernie Bot had been offered only to corporate clients or select members of the public who requested access through a waitlist. Meanwhile,
Sensetime, which is an AI startup, based here in Hong Kong also announced the public launch of its own platform today.
The company's stock surged 4 percent in Hong Kong after the news. Now, Baidu has been a front runner in China in the race to capitalize on the
excitement around generative AI the tech behind systems like ChatGPT, or its successor, GPT 4. Baidu announced its own iteration back in February,
giving it an early advantage in China according to analysts.
Since then, though, competitors like Alibaba have also announced plans to launch their own ChatGPT style tools, adding to the list of Chinese
businesses jumping on this bandwagon. Now Alibaba told CNN today it had filed for regulatory approval for its own bot, which was introduced in
April. To stand out companies are now showing off how their tech can be used for different scenarios.
Baidu says its service it's different because of its ability to generate various types of responses like text, images, audio and video. Sensetime
has touted a range of features, which it says lets users write code more efficiently or receive personalized medical advice. Michelle Toh, CNN Hong
CHATTERLEY: OK coming up here on "First Move", pressure intensifying on Luis Rubiales to resign. Now finally, the Head of European football's
governing body speaks out against the Spaniard, the details next?
CHATTERLEY: Welcome back, Spanish Football President Luis Rubiales is still refusing to resign despite the outrage and mounting pressure and now 11
days after he forcibly kissed player, Jennifer Hermoso the Women's World Cup final in Sydney, the President of European Football's governing body is
speaking out, Aleksander Ceferin condemning the behavior as inappropriate.
Amanda Davies joins us now. Amanda, you and I were talking about this days and days and days ago, I guess better late than never.
AMANDA DAVIES, CNN WORLD SPORT: Has it been worth the wait though, Julia? I think in short, no, probably not. I mean, there's silence as we were
talking about not only from UEFA's President Ceferin but from the official structures of European football's governing body really has been deafening.
Since the incident that played out in Sydney at the Women's World Cup Final. You wafers argument is that we are talking about an incident that
played out at a FIFA event the Women's World Cup Final. We should be leaving it for them to deal with many other people's view is hang on.
This is European football's governing body and this is taking place on their watch. I think it speaks volumes really as to the relationship
between the President of UEFA's President Ceferin and Luis Rubiales, the now suspended President of the Spanish Football Federation who as you
rightly said despite the growing pressure for him to resign has not officially done that.
It is World Football's Governing Body who has FIFA who have handed down the 90 day provisional suspension whilst they have opened disciplinary
proceedings it into what has happened, has Ceferin's statement done enough to placate the people who have felt really very, very hurt and let down.
Well, this is what it says. It says, Of course, what he did was inappropriate. We all know that. I hope he knows it was out of order.
That's enough for the time being, because the disciplinary committee will decide. I'm sad that such an event should overshadow the victory of the
Spanish national team.
We should to change things. So he does say we should change things. Aleksander Ceferin in his interview with French magazine L'Equipe but he
doesn't say how, what or when. And you know he is a man who liked the President of FIFA Gianni Infantino is a lawyer. He knows very well the
games that are being played.
We are talking about the structures of football and politics at play. Would he have said anything? Were it not for the fact that the Champions League
draw is taking place in Monaco and just a couple of hours' time? I think it would be very difficult for the President of European Football to promote
to celebrate their flagship tournament with five Spanish clubs involved without UEFA for having said anything.
Interestingly, we still haven't seen or heard from Luis Rubiales since that defiant press conference where he refused to stand down but the Interim
President of the Spanish Football Federation, Pedro Rocha is there in Monaco, and as you would expect, he is facing some questions and there's
one topic on the agenda.
CHATTERLEY: Yes, of course there are we'll see what comes from that. Amanda Davies, great to have you on as always thank you. Now surprise hit song has
been resonating with millions of Americans and embraced by politicians on both sides of the aisle. Just listen to this.
He is speaking about inequality Oliver Anthony says he's enjoyed watching people embrace his song. Rich men north of Richmond, it was even played at
last week's Republican presidential debate. So ironic because he says the song is about the people on that stage. Vanessa Yurkevich has all the
VANESSA YURKEVICH, CNN CORRESPONDENT (voice-over): In the woods of Farmville, Virginia, an Oliver Anthony thing about what he knows. And
millions of Americans now know him too.
OLIVER ANTHONY, MUSICIAN: A lot changed since the last time I sat here and spoke to you.
YURKEVICH (voice-over): He has the number one song in the country. He was also featured at the Republican debate. Candidates were asked why they
think it's resonating.
ANTHONY: It was funny seeing it that presidential debate, because it's like I wrote that song about those people.
YURKEVICH (voice-over): Politicians are trying to claim him as a Democrat or Republican.
ANTHONY: I'm going to write, produce and distribute authentic music that represents people and not politics.
YURKEVICH (voice-over): The people from all walks of life are relating to what he has to say.
UNIDENTIFIED MALE: I like that a lot of people can relate to that.
UNIDENTIFIED MALE: The lyrics are awesome. --
YURKEVICH (voice-over): His real name is Christopher Anthony Lunsford. His friends call him Chris. He lives here in the woods of Farmville, Virginia
with his family, just over an hour West of Richmond. He struggled with money, alcohol, depression, and sings about it all. He's everywhere, but
nowhere at the same time.
NASH OSBORN, OWNER OF NORTH STREET PRESS CLUB: I think that his lifestyle and what he wanted to do and like live off the grid, you know, live in the
country. I mean, that's what he wants to do.
YURKEVICH (voice-over): On a random Wednesday evening, he sang in town at North Street Press Club.
OSBORN: He wanted it to be so everybody here locally could come out and see him.
YURKEVICH (voice-over): Oliver Anthony says he's turned down $8 million deals since he shot to number one.
UNIDENTIFIED MALE: He seems like a pretty down to earth individual. And this town is one town that's going to protect that if they can,
YURKEVICH: What do you think about what he's saying and why people are resonating from all over?
UNIDENTIFIED MALE: I think there's still a huge swath of people in the middle who are just feeling a little disenfranchised with the wealth
disparity having somebody come out and sort of advocate or voice that frustration. It's not surprising to me that it resonates.
YURKEVICH: How do you know Christopher?
ANTHONY DEMARCO, OWNER OF MOUNTAIN CREEK SIGNS: He's my neighbor.
YURKEVICH (voice-over): Anthony DeMarco has lived next door to Oliver Anthony for five years.
DEMARCO: We still live on a next door.
YURKEVICH (voice-over): He's now his merchandise guy.
DEMARCO: He's just a guy that smiles a lot. It's a fun guy to be around. He says what everybody is feeling for the most part. We don't have a voice to
say it to the Rich men north of Richmond. And now we do.
CHATTERLEY: And finally on "First Move", something you don't see every day and perhaps redefining the term bull markets if that's indeed where they
were headed. It's a bull in the passenger seat of a car. Yes, take a look at this.
It happened this week in Nebraska in the United States and there's a chance this may not actually have been the first time as you can see the driver
heavily modified his vehicle, which was once a police car, in fact, to carry his friend whose name is Howdy Doody.
It left motorists doing all sorts of double takes, and I think even the police were probably scratching their heads too. They eventually sent the
driver away with a warning to take the animal home, which he reportedly did. Now clearly the officers didn't want to lock horns with man or that
beast and there was clearly a lot at stake for all see what I did there.
Plenty of news today and a meeting and to the show, and that' it for "First Move", if you've missed any of our interviews today, there'll be on my X
and Instagram pages you can search by @jchatterleycnn. "Connect the World" is up next. And I'll see you tomorrow.