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First Move with Julia Chatterley
Assassination Attempt On Slovakia's Prime Minister; Prime Minister Fico Operation Successful; U.S. Rushing Weapons To Ukraine; Russia's War On Ukraine; Zelenskyy Cancels Foreign Trips; U.S. Inflation; Trump And Biden's Presidential Debate; Boeing's Legal Troubles; Boeing Subject To Criminal Prosecution; Airplane Safety; Putin Arrives In China; U.S. Tariffs On China; EV Tariffs; Haiti In Crisis; Guns Keep Flowing Into Haiti; Massive Flooding In Indonesia. Aired 6-7p ET
Aired May 15, 2024 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[18:00:00]
JAKE TAPPER, CNN INTERNATIONAL HOST: I went behind the headlines to investigate and report and interview some of the most iconic political
controversial figures of our time. Here's a taste.
(BEGIN VIDEO CLIP)
TAPPER: We're here to get your side of the story.
Where are the weapons of mass destruction?
How do you view your time as governor?
UNIDENTIFIED MALE: I had 2,896 days in prison to ask myself a thousand questions, including that.
(END VIDEO CLIP)
TAPPER: So, that was season one --
JULIA CHATTERLEY, CNN INTERNATIONAL HOST: It's 5:00 a.m. in Jakarta, 6:00 a.m. in Shanghai, and 6:00 p.m. here in New York. I'm Julia Chatterley. And
wherever you are in the world, this is your "First Move."
And a warm welcome to "First Move." As always, here's today's need to know. Slovakia's prime minister is fighting for his life following an
assassination attempt on Tuesday.
The U.S. government rushing weapons to the frontlines in Ukraine as Russia makes a major battlefield advance.
A friendship with no limits, Russian President Vladimir Putin arriving in Beijing on a two-day visit to China.
And hell in Haiti, where weapons are plentiful, but food is hard to find. We've got the latest from there, and plenty more coming up.
But first, to that shocking story from Slovakia in Eastern Europe, the nation's prime minister, Robert Fico, shot on Tuesday. You can see his
security team in these images here, leading him to a car for safety, and very close by crowds, witnesses nearby.
Slovakia's defense minister blamed the assassination attempt on rising hate speech and called it an assault on democracy.
(BEGIN VIDEO CLIP)
ROBERT KALINAK, SLOVAL DEFENSE MINISTER: We're just talking about the level of democracy, about the ability to understand each other, to accept the
other opinion. And not only one is that good one, if somebody have a different opinion, it's also -- he have also his place on the earth and all
-- in the political field.
So, this is the issue what's happened. It's a political assault. It's absolutely clear. And we have to react on that.
(END VIDEO CLIP)
CHATTERLEY: Now Prime Minister Fico was leaving an offsite government meeting in Central Slovakia when he was shot multiple times. The pro-
Russian politician is the longest serving prime minister in the nation's history. And we're talking more than 10 years in total.
Now, a suspect has been arrested and no one else was injured in the attack. He's currently in hospital where the nation's deputy minister said an
operation was successful. Nic Robertson has been following this story online from London for us.
Nic, I believe that was the deputy prime minister that's just, in the last 15, 20 minutes or so, made some comments saying he believes that the prime
minister is not in a life-threatening situation at this moment, which, of course, will be a huge relief to his friends and family. What more do we
know about what happened?
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes, this has happened at a very divisive time in Slovakian politics, and it's divisive in many
ways because of policies that are being implemented by Prime Minister Fico, policies that were change and reduce the power of the judiciary, who's
already removed the special prosecutor's office for trying politically sensitive corruption cases.
His party is trying to move forward legislation that would put much stricter controls on the state broadcaster. And this has brought about over
the past number of weeks peaceful protests across the country. But today's events have turned a serious and very dangerous corner.
(BEGIN VIDEO CLIP)
ROBERTSON (voice-over): As Prime Minister Robert Fico approaches a security barrier, his would be assassin pulls a gun. Five shots fired into Fico.
This filmed from another angle. The prime minister unable to walk, manhandled by bodyguards into a car. The shooter instantly wrestled to the
ground.
As Fico rushed to a nearby hospital, where a spokesman said he was conscious, his life functions stabilized, before being transferred by
helicopter to another hospital about 30 kilometers away for higher level care.
More than three hours later, the defense and interior ministers announcing the P.M. still in surgery, fighting for his life. And this a motive.
KALINAK: It's a political assault. It's absolutely clear. And we have to react on that.
[18:05:00]
ROBERTSON (voice-over): No details from the country's two top security officials about the suspected assassin. Only extreme concern, his actions
would trigger a violent backlash in this politically divided nation of 5 million people.
MATUS SUTAJ ESTOK, SLOVAK INTERIOR MINISTER (through translator): I tell to all of our citizens, the answer to hate is not and cannot be hate. I'm
begging you all to stop. You have to stop spreading attacks and hatred, also through social networks and the media.
ROBERTSON (voice-over): The shooting occurred following a government meeting in Handlova, two hours' drive from the capital. This eyewitness
says she was there to shake the prime minister's hand, usual at events like this.
UNIDENTIFIED FEMALE (through translator): I heard three shots. It was quick, one by one, like if you throw a firecracker on the ground. I saw a
scratch on his head, and then he fell next to the barrier.
ROBERTSON (voice-over): The reality, however, more than a scratch on the head. The president of the country declaring it a terrible, a malicious
attack.
UNIDENTIFIED FEMALE (through translator): A physical attack on the prime minister is primarily an attack on a person, but it is also an attack on
democracy.
ROBERTSON (voice-over): Fico was never shy of courting controversy. A divisive figure, a populist who is anti-immigration, anti-Islam, anti-
LGBTQ, and pro-Putin and Russia. He had a political comeback last year, winning the elections as prime minister for a third time, despite long
running corruption's allegations.
He was forced to resign during his previous term amid mass protests over the murder of an investigative journalist in 2018. Fico had no shortage of
potential enemies.
(END VIDEO CLIP)
ROBERTSON (on camera): Details about this assassin from the defense minister, from the interior minister, from any officials, and that really
does seem to be an effort to play down what they fear could be, you know, a real spike intentions.
This divisive prime minister shot clearly, but now appearing to pull through. I think we can see plenty of political troubles ahead for him as
well.
CHATTERLEY: Certainly. Nic Robertson, thank you so much for now.
To Kyiv where U.S. Secretary of State Antony Blinken announcing $2 billion in further military aid for Ukraine and saying ammunition and weapons were
being "rushed" to the frontlines. It comes as Russia takes more territory in the Kharkiv region, and Ukraine announces a repositioning of some of its
forces.
Russia also says it intercepted Ukrainian bombs, drones, and missiles just inside its territory and over the Crimean Peninsula. In a sign of the
current escalation, President Volodymyr Zelenskyy has postponed his attendance at all international events.
Now, our Chief International Security Correspondent Nick Paton Walsh is in Kharkiv and has more.
(BEGIN VIDEO CLIP)
NICK PATON WALSH, CHIEF INTERNATIONAL SECURITY CORRESPONDENT: Well, Julia, the news is clearly so bleak that Ukraine's President Volodymyr Zelenskyy
doesn't believe he can be seen to be anywhere away from dealing with this frontline crisis. Canceling trips to Ukraine's foreign allies. An essential
part of his job, really, to get more aid faster for the frontlines here. And it's a reflection of how awfully things, frankly, are going to the
north of Ukraine's second city, Kharkiv here.
We heard today from Ukraine's military that they are -- they chose overnight better positions for their troops inside a key border town of
Vovchans'k. That's been the focus of Russian efforts and clearly is paying off for Moscow.
We heard Ukrainian police chief today say that there was certainly street fighting inside of Vovchans'k itself. And I spoke to one woman who was
evacuated today. She said she's been hiding in her basement for days, the town on fire, she said. And Russian troops have been in the street
neighboring hers.
So, clearly, they're seeing progress there. The Russians claim to be nearly taking double digit worth of smaller villages in those border areas too.
And it's here, Kharkiv that's possibly in their sights. If they advance a little further, their guns might be in range of this Ukraine's second
largest city.
And frankly, it's horrifying to come back to an area we're in, in 2022, to see the Russian kicked out of it. And now, because of the slowness of us
military aid, Moscow seizing the initiative, bringing resources and manpower that Ukraine simply does not have and pushing forward on an
entirely new part of their war and an offensive here.
Now, Zelenskyy today also reassured Ukrainians they would not see other parts of the frontlines suffer because they had to rush reinforcements to
here. But frankly, the east has seen significant Russian progress in tiny incremental villages over the past weeks or so. But key gains in their bid
to try and damage Ukraine's military infrastructure there.
[18:10:00]
The news is universally bad for Ukraine across the frontlines, possibly their worst moment militarily since the invasion of 2022 and those early
days of the war and possibly the fastest progress for Russia in that regard as well. And the clock is ticking.
Yes, soon there will be more American weapons in the hands of Ukrainian troops after that startling six-month delay caused by Republican
congressional dysfunctionality, but it may be too late. Russia may already have altered the nature of the war here, or at least damaged Ukraine's
positions and morale that it has much easier summer ahead of it.
And frankly, a bleak time here for Ukrainians. U.S. secretary of state, Antony Blinken, in Kyiv to deliver messages of solidarity, to say $2
billion more aid will be given to them, that will allow U.S. weapons to be delivered, weapons to be bought from U.S. allies and also better resilience
for Ukraine in the future, investing in its own technologies.
But really, a lot of this positive messaging and solidarity a little late because we're already seeing here Russia sensing it's got a month or two
for the weapons arrival mass in Ukrainian hands and phenomenal damage they're wrecking during that. Julia.
(END VIDEO CLIP)
CHATTERLEY: A bleak report indeed. Our thanks to Nick there.
OK. Moving on U.S. stocks closing at record highs, thanks to the latest U.S. inflation report. Consumer prices were up 3.4 percent in April year
over year. That was in line with expectations. Housing and fuel costs account for much of the increase on a monthly basis, though the price of
groceries actually fell. It's been a year since the last time we saw that. The Federal Reserve is waiting to see meaningful progress on inflation
before it starts cutting interest rates.
Joining us now, Mark Zandi, chief economist at Moody's. Mark, always a pleasure to have you on the show. An exuberant response, I think, from
stock market investors today. Do you match that in what you're saying? There's a clear hope here that after, what, three months of hotter than
expected readings, the path of inflation now can begin to come down once again. How confident are you?
MARK ZANDI, CHIEF ECONOMIST, MOODY'S ANALYTICS: Well, you know, it's hard to be as upbeat as the stock market. What a day, right? I mean, we had new
highs on the S&P 500, and I think on the NASDAQ too. So, a lot of giddy investors out there.
But it was good news. Yes, I know, particularly in the context of the kind of hot inflation numbers we've been getting since the beginning of the
year. This felt really good because it came in -- you know, there's a lot of concern that we get another hot number and we did, we got a reasonably
good one.
And I think the most important aspect of the report is it feels like all the trend lines here look pretty good, that, you know, we're going to see
inflation continue to moderate, get back down to something that the Fed would feel more comfortable with. And ultimately, the key thing here is
lower interest rates. We've got to get the Fed cutting rates. And I think that's what stock investors are now beginning to discount more
significantly.
CHATTERLEY: I like the use of the word giddy in this case, because what we've gone from at the beginning of the year is six-quarter point interest
rate cuts priced. And now, we've got barely even one this year. And yet, the market still seems to be exuberant.
But to your point, the Fed is not there yet, surely, certainly looking at this number. And I know they tend to focus on what is significantly lower
and has less weighting of housing, which has been such a key component of keeping inflation at these levels, which is that the PCE number, but
they're not there yet. Surely mark on, on the ability to begin cutting rates. We need more data.
ZANDI: Yes, that's what they're saying. I get it. You know, they're being cautious. They work pretty hard to get inflation back in, keep inflation
expectations down. That's what people think inflation is going to be in the future. And it's really important to keep them -- to keep those
expectations tethered because that's key to actually achieving the inflation goals that the Fed has.
So, they've worked really hard at this. They don't want to just make a mistake and start easing prematurely and inflation picking up again. But,
you know, Julia, I'm beginning to get more and more confident that they've hit their targets. They've hit their goals. You know, we're really close
now.
I don't think I sacrificed the economy to the altar of, you know, much lower inflation because we're just about there. They'll need a few more
months. OK. But we should start cutting rates here pretty soon.
CHATTERLEY: It's such a valid point. And I think it's something else that you pointed out in these numbers was food prices. For lower income
households in America, this is something that they're incredibly sensitive to. And also, part of, I think the level of discontent that we still see
and the concern over inflation, if you can see stabilization and even at- home food prices start to come down more materially. That's going to have a huge impact, surely on both confidence, but also on some of the confidence
to be able to say, look, we really do need to be able to bring rates down now.
ZANDI: Yes, I think food inflation is key. You know, not only because, you know, for low-income households, this is a really big deal, right? They
live paycheck to paycheck. You know, if the cost of a food item goes up, they're going to make a hard choice. You know, do I not buy that item? What
else can I purchase? What else do I cut back on? Do I borrow against my credit card?
[18:15:00]
You know, so it's a really difficult choices they have to make. So, it's really important to get inflation -- food inflation back in the bottle. And
if -- and you know, the good news here is it feels like it is back in the bottle. It really hasn't gone anywhere over the past year.
The other thing is, it's about perception, right? I mean, you know, all of you here, all the people here, all this happy talk from economists like me
saying the economy is great, but they don't feel that way. And one of the key reasons is because they're still paying a lot more for a particular
food item that they regularly buy. And, you know, even though inflation and the rate of growth has gone flat here, the prices haven't come down. We're
still -- they're still paying a lot more for lots of different things than they were two, three years ago.
So, we need to see, you know, continued very moderate food inflation. Let wages catch up and let perceptions catch up with the -- you know, the
reality that economists are talking about, like me, that, you know, things are going pretty well here.
CHATTERLEY: Yes, as much as we respect what you say, it's how it feels and the prices we pay that really matter, particularly in an election year.
Yes. Mark Zandi, great to chat to you, sir. Thank you. Chief Economist there at Moody's.
ZANDI: Any time.
CHATTERLEY: Now, President Joe Biden and Donald Trump don't often see eye to eye, but when they do, presidential debates can get scheduled. The first
right here on CNN on June 27th. Now, it will be the first debate between the two prospective presidential candidates this election cycle.
And if you think June is early for this kind of thing? Well, you are correct. Historically early, at least in modern times. The other is
scheduled for September on ABC. President Biden posted a video on social media aimed directly at his opponent.
(BEGIN VIDEO CLIP)
JOE BIDEN, U.S. PRESIDENT: Donald Trump lost two debates to me in 2020. And since then, he hasn't shown up for debate. Now, he's acting like he wants
to debate me again. Well, make my day, pal. I'll even do it twice. So, let's pick the dates, Donald. I hear you're free on Wednesdays.
(END VIDEO CLIP)
CHATTERLEY: Now, and for those that missed it, I hear you're free on Wednesdays is a dig at Trump's criminal court schedule here in New York.
Wednesdays, of course, are free. Kayla Tausche is at the White House for us.
Kayla, there was a sort of make my day punk, I think. There was a Dirty Harry reference in there. It sort of sounds more like a bullfight than a
debate. Do you think the president would be acting this way if he were further ahead in the polls?
KAYLA TAUSCHE, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, certainly he wants to appear energized going into a conversation, a showdown of sorts
where his opponent has accused him of lacking energy and not being able to essentially meet him intellectually on the debate stage.
But, Julia, I think the fact that the swing state polls have been so close is fairly critical here. Number one, the news that Biden and then Trump
would accept these debates turned the news cycle on a dime today, as did the fact that this first debate, hosted by CNN, will take place in Georgia,
which is a significant detail because it's a critical swing state that Biden flipped in 2020, but it was also central. It was a backdrop of sorts
to Trump's efforts to overturn the 2020 election.
And there's been one maxim that the Biden campaign has long believed, and that is that the electorate is not energized, it's not paying attention to
this race, but they will start paying attention when the two candidates are side by side, and the Biden campaign believes that they will get a boost
from voters once voters finally realize that this is a choice between these two candidates.
Now comes the preparation. Six weeks until the big day, that first debate on June 27th. Biden's longtime aide, his former chief of staff, Ron Klain,
tell CNN that he will be taking a hiatus from his day job to help prepare. So, certainly there is a lot of work to do to get going, Julia.
CHATTERLEY: Kayla, great to have you with us. Thank you. Kayla Tausche at the White House there.
OK. Straight ahead, a major announcement from the U.S. government spelling potential legal trouble for Boeing.
And then we'll hear what President Biden's new tariffs on China mean for U.S. automakers. And the American consumer, too. Clean air. That's next.
Stay with us.
(COMMERCIAL BREAK)
[18:21:50]
CHATTERLEY: Welcome back to "First Move." And a good morning if you're waking up with us across Asia, and a good evening, of course, elsewhere.
Record highs all around on Wall Street, as we've already mentioned, and that tops today's "Money Move." The Dow flirting once again with that
40,000 level. The tech heavy Nasdaq gaining nearly 1.5 percent today, and it follows that latest U.S. inflation report that showed a slight easing of
price rises in April. European stocks also finishing high with the FTSE closing at an all-time high. Giddy, I think was the word Mark Zandi used,
and we agree.
In Asia, Tokyo and Seoul posting slight gains on Wednesday while Shanghai stock markets fell. Hong Kong was closed for a holiday. We shall see what
Thursday brings.
While the overall trends are positive, the outlook for one company may have worsened. Boeing getting word it's now subject to criminal prosecution. The
firm had reached an agreement in 2021 to avoid charges tied to two deadly crashes involving its 737 MAX jets. The U.S. Department of Justice now says
the beleaguered playmaker has broken that agreement after series of mishaps.
Evan Perez joins us now on this story. One could ask why they were given so much trust in the first place, Evan, to deal with this. But now, the
government will decide if it goes ahead with some form of prosecution, I believe. The Alaskan Airlines flight arguably provides further evidence
that they didn't comply with their promise to address this.
EVAN PEREZ, CNN SENIOR U.S. JUSTICE CORRESPONDENT: That's right, Julia. I mean, that incident certainly brought the attention of everyone and it
reminded the Justice Department, it reminded the families of those victims in those two crashes, the Lion Air crash and the Ethiopian Airlines crash,
that perhaps not everything was being done by Boeing to rectify some of the problems that they've had.
And so, that's one of the things that you've seen in the last few weeks. You've seen a lot of pressure by some of the victims' families meeting with
the Justice Department, urging the Justice Department to take another look to see whether Boeing is indeed complying with the terms of that 2021
agreement. And the answer that came on Tuesday from the Justice Department to the judge that is overseeing the terms of that deal is that no, the
Justice Department is saying that Boeing breached that agreement.
And so, I'll read you just a part of what they say. They say that, by failing -- for failing to fulfill complete the terms and obligations under
the Deferred Prosecution Agreement, Boeing is subject to prosecution by the United States for any federal criminal violation of which the United States
has knowledge.
And so, what this means, Julia, is that everything is on the table now. We don't know when this is going to go forward. We do know that Boeing has 30
days to responds to the Justice Department and to the court, and then they'll take it from there.
But obviously, the stakes are very high for this company to be -- for them to be found criminally liable and perhaps for the Justice Department to
prosecute them on these criminal charges, including the ones that they had deferred by paying $2.5 billion dollars in penalties. All of that now is on
the table, Julia.
[18:25:00]
CHATTERLEY: Yes, the challenges continue for Boeing. Evan Perez, thank you for now. OK. Millions of people are operating under a severe weather watch
in the Central and Eastern United States. Another round of storms expected ahead of the weekend, and it's raising the risk of flooding for Texas and
other Gulf Coast states.
The Weather Prediction Center is calling it a "nightmare scenario." Elisa Raffa joins us now for more details. Talk to us about this nightmare
scenario, Elisa.
ELISA RAFFA, CNN METEOROLOGIST: Some record amounts of rain a couple of weeks ago. So, we've got some of these showers and storms that are
stretching across the Carolinas right now as one storm starts to -- tries to exit. You've got a severe thunderstorm watch in effect from Wilmington
just south and east of here there of Charlotte.
Then you have another storm that's developing over in the Texas and Oklahoma panhandles where you have another severe thunderstorm watch in
effect there. That storm system is going to continue to flourish overnight. Look at it as it brings some of the heavy rain and the strong winds towards
Dallas by tomorrow morning.
Then, as we go later in the day tomorrow, from Eastern Texas, from Houston, over into New Orleans, that's where we're looking at, that heavy rain, that
nightmare scenario of the heavy rain on already saturated soils. We're talking about widespread three to six inches of rain, could even find some
totals even higher than that.
We have two days of a moderate risk. That's a level three out of four, very high risk of excessive rain, flash flooding. We're talking about rivers
overflowing, urban flooding as well. We already have some of these flood watches that are in effect as we go through this event.
And we put the rivers on here too. And you can see where the rivers are already aggravated. They're already flooding, and it hasn't rained yet.
That's because they had some pretty significant problems of rain just a few days ago, just a few weeks ago.
We have had a very wet start to the year. I mean, look at all of these places that are seven inches above average in Montgomery, five inches above
average in Atlanta, a foot above average in Jackson. And we do know that this is the trend. We find that these deluge days, these water
precipitation events are about 37 percent wetter in the area there in the southeast since 1958.
And when we get wetter storms, because our atmosphere is warmer, it holds more moisture, this can mean more flood loss, more flood damage. $32
billion on average across the country. When you look at Louisiana in particular, that is under the gun for this flooding, they spend about $995
million in flood damage.
And as we look towards 2050, that could increase by 147 percent as our range has becomes more supercharged. Julia.
CHATTERLEY: Wow. And that makes insurance increasingly complicated to get as well, too. Elisa, not storm related. I know there were all sorts of
technical issues going on up there at the beginning. So, well handled. All in a day's work, I believe, too. And I apologize to viewers if they heard
any of that. Elisa Raffa, great job. Thank you.
We'll be right back. Stay with CNN.
(COMMERCIAL BREAK)
[18:31:16]
CHATTERLEY: Welcome back to "First Move" with a look at more international headlines this hour. Russian President Vladimir Putin has arrived in
Beijing, kicking off a two-day state visit to China. It's his first trip abroad since his fifth inauguration as president a little more than a week
ago. It's yet another sign of Russia and China's strong relationship. The West has criticized Beijing for allegedly supporting Russia's defense
industry.
The grandson of Jimmy Carter says the former president is approaching the end of his life. No U.S. president has ever lived as long as Carter, who is
now 99 years old. He spent over a year in hospice care after surviving a number of serious health issues in recent years. Carter made a rare public
appearance last year, of course, to attend his wife's memorial service.
Opening statements have begun in the corruption trial of U.S. Senator Bob Menendez. The New Jersey Democrat is accused of taking bribes from
businessmen and helping foreign governments. Menendez has pleaded not guilty. Potential jurors were told some of the witnesses could include
sitting U.S. senators and several sheiks. It remains to be seen who will be called to testify.
Now, the CEO of Swedish automaker Scania was on "Quest Means Business" just a few hours ago discussing something very topical, and that's how to
compete with low-cost cars from China.
(BEGIN VIDEO CLIP)
CHRISTIAN LEVIN, CEO, SCANIA: We are constructing a factory in China, as you say, correctly. And one reason to do that is, of course, to enjoy,
let's say, the Chinese competition in their home turf. And get to know their technology, their suppliers, their research, et cetera. And we do
that because we need to be competitive also there. And I think we should take the Chinese also in our industry seriously.
But I do not think the solution to having competitive Chinese competitors is to introduce tariffs or trade barriers. I think we need level playing
field. And then we need to play.
CHATTERLEY: Tariff is not the answer. Now, his comments come after U.S. President Biden announced the U.S. government's latest roadblock for China.
(BEGIN VIDEO CLIP)
BIDEN: Percent tariff on electric vehicles made in China, people say, wow. Because we're not going to let China flood our market, making it impossible
for American auto manufacturers to compete fairly. We're also implementing a 25 percent tariff on electric vehicle batteries from China and 25 percent
tariff on critical minerals that make those batteries.
Folks, look, I'm determined that the future of electric vehicles will be made in America. By union workers, period.
(END VIDEO CLIP)
CHATTERLEY: Now, the Alliance for Automotive Innovation, a trade association that represents automakers selling cars in the United States,
has welcomed that move, saying, "It's appropriate for the White House to be looking at tools to prevent the U.S. from becoming a dumping ground for
subsidized Chinese electric vehicles. We can't let China's EV overcapacity problem turn into a U.S. auto industry problem."
Now, just 2 percent of total EV sales in the United States are cars made in China, but this is only part of the story, since China is a dominant
producer of also components needed for EV batteries, as well as controlling more than two-thirds of the world's nickel sulfite supplies used to make
lithium-ion batteries.
Joining us now is John Bozzella, president and CEO of Alliance of Automotive Innovation. John, great to have you with us. I was using some of
your data there, which is interesting, but there is the question of cars from China, there's the question of components from China. And then there
are the commodities too.
[18:35:00]
If we start with cars, as I mentioned, they're just a fraction of the EVs on sale in the United States at this moment. But I think Europe's example
shows us that China can take hold in the EV market very quickly. They've gone from, I think,0.5 percent of new car sales in Europe to around 8 to 9
percent today. Stopping this is crucial in your mind.
JOHN BOZZELLA, PRESIDENT AND CEO, ALLIANCE FOR AUTOMOTIVE INNOVATION: Yes, I think that's right. But I think let's step back. You're asking a series
of really important questions.
You know, when it comes to the auto industry, the U.S.-China dynamic is complicated. China is the largest car market in the world. It's the largest
producer of cars in the world, and it's the largest exporter of cars in the world. We do enjoy automotive trade between China and the U.S. Auto
manufacturers in the United States and U.S. auto workers benefit from exports to China and from imports of parts.
And so, navigating this is, of course, very complicated. But I do think it's important that we compete on a level playing field. And so, the focus
has to be on making sure that China's automotive overcapacity and heavy subsidies don't result in below market anti-competitive actions here in the
United States. And so, it's really just a matter of fair competition.
CHATTERLEY: Does this now level the playing field, to quote you then, John, that the tariffs that we've seen? Because to your point, it is more
complicated. I mean, China also is crucial to EV battery production. They're expected to remain so, according to your data, through 2040, and
they have, what, over 90 percent of the world's anode production capacity, which you're not making batteries without these kinds of components. And
China is still the dominant player.
BOZZELLA: It's so true. And so, really what we're talking about here is time. And it -- you know, again, so that the idea that it's complicated.
With regard to finished vehicles, you know, I think Europe is a cautionary tale. With regard to the overall supply chain components, commodities, raw
materials that you've outlined, I do think it's going to take some time to shift from a dependence on China to supply chains that are built within the
United States and with our allies around the world, it's going to take some time.
And so, that's what makes this complicated. I think there could be some unintended effects here that we've going to have to navigate.
CHATTERLEY: Graphite is another great example. The United States imports a hundred percent of that, a third comes from China at this stage. And
actually, what we've seen in these latest measures is a carve out for graphite because the United States recognizes that if it restricts those,
it's going to have a pricing problem. It's going to have a manufacturing problem in the United States as well, John.
I mean, it's the upshot here that actually China could put greater tariffs on products like this and hurt the United States in response and
ultimately, the U.S. consumer ends up with higher prices and slower adoption of EVs. So, there are challenges to doing this.
BOZZELLA: There is no question there are challenges. We will have to see what type of retaliation might occur from this. And that would be a concern
if, in fact, what we see is challenges to the EV supply chain as we go forward.
So, look, I think it is appropriate for the Biden administration to consider and to look at anti-competitive or below market behavior as a
result of overcapacity. But I also do agree that we have to make sure there's time and flexibility to be able to develop supply chains to ensure
U.S. competitiveness going forward.
Look, the bottom line, manufacturers in this country can compete with anybody around the world. And the fact is, we just have to make sure that
that competitor -- that competition is fair.
CHATTERLEY: The former president, President Trump, has suggested that he would introduce 60 percent tariffs on incoming Chinese goods, a blanket
one. He also said 10 percent on any other imports. John, do you agree with that as a higher step here or do you see that as a step too far?
BOZZELLA: Yes. You know, we'll have to cross that bridge when we come to it. But I would certainly be concerned about an overreaching, overly broad
and non-targeted approach that makes it very, very difficult to engage in trade between the United States and China in the automotive market.
I think a targeted approach, I think a recognition of the importance of managing time and supply chains over time is going to be important here.
[18:40:00]
CHATTERLEY: Can I read between the lines there and say that the president's measures -- potential measures are a step too far, John?
BOZZELLA: Well, look -- well, I can't really comment on them until I see them. You know, it's a hypothetical. So, let's come back to that.
CHATTERLEY: John Bozzella. Sir, thank you for managing me. President and CEO of the Alliance for Automotive Innovation. Great to chat to you, sir.
BOZZELLA: Thank you, Julia.
All right. Coming up next on "First Move," we'll have a special report from Haiti, where guns and ammunitions still flow freely, and it comes at great
human cost as you would imagine. The details next.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move." Guns and ammunition are still flowing freely into Haiti, despite a U.N. weapons embargo.
They come in by air and by sea, earmarked for violent gangs, making weapons plentiful, yet food supplies are a real challenge, as David Culver reports.
(BEGIN VIDEO CLIP)
DAVID CULVER, CNN SENIOR NATIONAL CORRESPONDENT (voice-over): Touching down in Haiti's gang-controlled capital, we move quickly, armed guards holding
the perimeter as a long line of anxious passengers hurry out the way we came in.
Driving deeper to Port-au-Prince, we pass those desperately trying to survive a crippling humanitarian crisis.
CULVER: Can you give us a sense how dire the situation is getting with each passing day?
UNIDENTIFIED MALE: Look, we're very worried. Right now, you've got 5 million people in Haiti who are acutely food insecure. That's the highest
on record. The highest it's ever been. And we're going through the worst crisis in Haiti since the 2010 earthquake. It's that simple.
CULVER (voice-over): The WFP warns food supplies across the country are rapidly dwindling as hunger worsens.
CULVER: For folks who are getting this, how many meals a day are they going to get?
UNIDENTIFIED MALE: This will be their one meal.
CULVER (voice-over): And delivering that one daily meal to starving communities increasingly risky.
CULVER: The logistics alone are incredibly challenging. I mean, just every corner, you don't know what you're going to come across.
CULVER (voice-over): Not to mention the constantly shifting gang boundaries.
CULVER: Do you ever get scared delivering the food?
UNIDENTIFIED MALE: Sometimes.
CULVER (voice-over): The U.N. estimates gangs control more than 80 percent of Port-au-Prince, severing crucial supply lines for food, fuel, and
medical supplies. And yet, while basic necessities are scarce, guns and ammo seemingly plentiful and ravaging this country.
[18:45:00]
Now, how are the weapons getting here? And from where?
UNIDENTIFIED MALE: All right, we'll do one low pass. We'll make a hard right turn. We'll be back inbound.
CULVER: We're flying over the Central Plateau. This is an area that for years has been known for drug smuggling here in Haiti.
CULVER (voice-over): More recently, the U.N. says weapons also come in this way, arriving into Haiti's mountainous and hard to reach rural areas.
CULVER: Likely it's going to be a light airplane. I've seen a lot of Cessnas. But it does look like that grass has been tampered with right
there.
CULVER (voice-over): Often landing in the dark of night under the radar or smuggled across the land border or by sea. Law enforcement believe arms and
ammo arrive at the dock of what once was a flower mill, taken over and now controlled by gangs.
Haitian security sources sharing with us these images of seized weapons from other locations. The U.N. says most guns are shipped illegally from
the U.S. and end up in the hands of various gangs.
VITEL'HOMME INNOCENT, LEADER OF KRAZE BARYE (through translator): There are always guns that come in. There are always bullets.
CULVER (voice-over): One of the most influential gang leaders, Vitel'Homme Innocent, even explaining how easy it is to import guns and ammo compared
with food or medicine, though not confirming where the weapons originate from.
CULVER: Are your weapons coming in from the U.S.?
INNOCENT (through translator): No. I don't go to the U.S. I cannot accuse the U.S.
CULVER (voice-over): To be sure, we had weapons experts review our footage with members of Vitel'Homme's gang, examining images like these. They tell
us that many of these firearms and accessories are in fact made in the U.S., smuggled directly or stolen from Haitian police.
The end result here is often the same, with the innocent caught in the crossfire. Like eight-year-old Woodjina Kado (ph), shot earlier this year
while playing with friends. When we visited in February, her family was living in this makeshift encampment as she was recovering from surgery. Her
little sister, keeping watch.
But days later, gangs torched the whole neighborhood.
CULVER: Hi, Woodjina. How are you? Good to see you. You're walking.
CULVER (voice-over): We meet again as Woodjina heads to a doctor's appointment. We learn her family now sleeps on a church floor. Woodjina's
sister, sent to live with other relatives. Her mom says it was too difficult to flee the gangs while carrying both kids.
LOVENCIA JULIEN, WOODJINA'S MOTHER (through translator): We had to run. I could not have ran with both of them.
CULVER (voice-over): Back alongside the WFP, we arrive at our stop to distribute those meals. It's a school turned displacement camp. We step out
to a crowd of several hundred.
Recent gang violence forcing most here to become refugees in their own city.
CULVER: And did you see that firsthand? Some of the violence?
UNIDENTIFIED MALE: Yes. Yes, I see. I ran from it.
CULVER: You ran from it.
UNIDENTIFIED MALE: I ran from it. I ran for a lot -- like a lot of shots, a lot of things.
CULVER: People shooting at you?
UNIDENTIFIED MALE: People shooting and they're burning houses.
CULVER (voice-over): Folks here grateful for the one meal they'll get today.
CULVER: What about tomorrow?
UNIDENTIFIED MALE: We don't know about tomorrow. We're just hoping for tomorrow.
CULVER (voice-over): Here, thinking about tomorrow, even that is a luxury.
David Culver, CNN, Port-au-Prince, Haiti.
(END VIDEO CLIP)
CHATTERLEY: Now, to Indonesia, where more than 50 people have died after torrential rain has triggered flash floods over the weekend. The floods
have brought with it cold lava from a nearby volcano, forcing nearly 3,400 residents to evacuate. Lynda Kinkade has more.
(BEGIN VIDEO CLIP)
LYNDA KINKADE, CNN ANCHOR (voice-over): Roza Yolanda sits on a hospital bed. She's covered in cuts and bruises head to toe. The recent college
graduate tells Reuters she was at home Saturday, texting her sister about the heavy rain outside. Moments later, she heard a thundering noise.
ROZA YOLANDA, FLOOD SURVIVOR (through translator): Suddenly, the lights went out and the water rushed in. I didn't have time to stand up and I no
longer had time to run and was just washed away by the flood.
KINKADE (voice-over): Flash floods triggered by torrential rains in Indonesia's West Sumatra province have left dozens dead and missing.
Mudslides and cold lava flow from volcanic eruptions, a mixture of rock, sand, water and volcanic ash, adding to the level of devastation,
inundating roads and sweeping away homes, trapping victims or sending them into nearby rivers.
YOLANDA (through translator): I got stuck on the road that was full of wooden materials and debris from the houses that were washed away. I got
trapped by the pile of debris and the water was not flowing anymore.
And I hit the rubble and then tried to get my head out of the water because I could feel the water flow was receding.
KINKADE (voice-over): Thousands of people have been evacuated from their flooded homes as rescuers recover bodies and dig through the damage. While
Roza Yolanda recovers in hospital, others remain lost in the rubble.
[18:50:00]
YOLANDA (through translator): Mom, thank God, is safe while they are still searching for my dad.
KINKADE (voice-over): With heavy rains forecast throughout the week, the dire search for survivors continues.
This, the latest flood catastrophe, as unprecedented rainfall triggers flash floods around the world.
Lynda Kinkade, CNN.
(END VIDEOTAPE)
CHATTERLEY: And we'll be back after this.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move." He's one of the fastest men on Earth. But Jamaica's Olympic sprinting champion, Usain Bolt, is also a
major cricket fan. And he's now the ambassador for this year's T20 World Cup, co-hosted by the United States and the West Indies. And it begins, of
course, next month.
World Sports Patrick Snell spoke with Usain Bolt about his passion for cricket just a short while ago. Listen in.
(BEGIN VIDEO CLIP)
USAIN BOLT, AMBASSADOR FOR THE ICC MEN'S T20 WORLD CUP, 8-TIME OLYMPIC GOLD MEDALIST AND RETIRED JAMAICAN SPRINTER: I'm excited that it's in the
States. You know, what I mean? For me to bring the excitement of the T20 to the States is just going to be wonderful.
For me, I've had a love for cricket all throughout my life. It was my first love. So, to be an ambassador to the T20 World Cup, for me, it's wonderful
and excitement that I think is the cricket is going to bring to the state is just going to be just out of this world. You know what I mean? And the
energy and the vibes and it's just a wonderful experience. And I urge people to come out and support.
PATRICK SNELL, CNN SPORT ANCHOR: The United States, Usain, making history by co-hosting the sport is back into the Olympics as well for 2028 in L.A.
Do you really feel that cricket can truly prosper in America? And if so, why? How?
BOLT: I definitely feel so. I think it's similar to baseball. And baseball is one of the biggest sports in the United States. And I think the States
is the capital of sports. There's so many different sports that are here, that are just out of this world. I feel like the States will help to grow
the sport itself.
And T20 is the shortest version. It's like three hours. So, it's all about excitement and all the action is packed into three hours. So, I feel like
it will definitely strive. And I'm happy to see it in the Olympics now. And it's because of the shorter version, why it's back. So, I'm excited to see
what's about to happen.
(END VIDEO CLIP)
CHATTERLEY: And finally, on "First Move," never mind the wedding cake for one happy couple, it's all about the wedding snake. Yes, you heard me
right, Jeanne Moos has the story.
(BEGIN VIDEO CLIP)
JEANNE MOOS, CNN NATIONAL CORRESPONDENT (voice-over): Remember the days when all you had to catch at a wedding was the bouquet?
UNIDENTIFIED MALE: Erika, you're (INAUDIBLE) wild.
UNIDENTIFIED FEMALE: What the hell?
Erika Rodriguez was attending her sister's wedding in Florence, Arizona when guests enjoying cocktails on the deck got spooked by the snake.
[18:55:00]
Holding her gown in one hand and the snake in the other, Erika walked it out of the wedding, earning herself a new nickname.
ERIKA RODRIGUEZ: Just the snake wrangler everywhere I go.
SANDRA: Why isn't that girl scared of anything?
That was me that said that in the video, because she has always been this way.
MOOS (voice-over): That's Erika's older sister, Sandra. Erika took the wedding crasher to some greenery and let the harmless gopher snake go.
MOOS: What's your background with snakes that you can just like casually pick one up?
RODRIGUEZ: I was just a wild kid. I had snakes as pets as a kid and I was watching Steve Irwin all the time.
STEVE IRWIN, AUSTRALIAN ZOOKEEPER AND CONSERVATIONIST: And that's a display of aggression.
MOOS (voice-over): At least Erika was wearing cowboy boots. Though already married, she's been showered with proposals from bold over fans. That's a
wifey right there.
Unlike Medusa, Erika never lost her head. Why just pose for wedding photos when you can pose with a snake?
UNIDENTIFIED MALE: Erica, smile at least, come on.
Jeanne Moos, CNN, New York.
(END VIDEO CLIP)
CHATTERLEY: Now, that's the kind of sister you need at your wedding. It's scary. That just about wraps up the show. Thank you for joining us. I'll
see you tomorrow.
(COMMERCIAL BREAK)
END
