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First Move with Julia Chatterley
Weak U.S. Employment Data Fuels Recession Fears; U.S. Stocks Tumble After Weak U.S. Jobs Report; U.S. Sends Additional Warships To The Middle East; Tensions Rise As Hamas Political Leader Buries In Qatar; Israel Braces For Attack; VP Harris Secures Enough Votes For Democratic Nomination; Harris Set To Meet With VP Contenders; U.S. Says President Maduro Lost The Presidential Election In Venezuela; Venezuela Accuses U.S. Of Leading "Coup Attempt"; U.S. Unemployment Rate Rises To 4.3 Percent; Freed Americans Reunite With Families On U.S. Soil; Astronauts Aboard ISS Still Waiting For A Ride Home; Olympic Boxing Controversy; Marchand Magic Completes Audacious Double Wins In Swimming History. Aired 6-7p ET
Aired August 02, 2024 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[18:00:28]
JULIA CHATTERLEY, CNN INTERNATIONAL HOST: It's 7:00 a.m. in Tokyo, 10:00 p.m. on the International Space Station, 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, and here's today's need to know. Jobs jolt, stock markets fall as weak U.S. employment data fuels
recession fears.
Retaliation ready, Israel bracing for attack as Hamas political chief is buried in Qatar.
Overwhelming evidence the U.S. says President Nicolas Maduro lost the presidential election in Venezuela, while his government accuses Washington
of a coup attempt.
And Marchand Magic, France's Olympic gold hero, completes one of the most audacious double wins in swimming history. All that and plenty more coming
up.
But first, call it the jobs jolt that rocked global markets, a disappointing read on U.S. employment, triggering a steep sell off on Wall
Street and a rise in bonds, all signaling fresh fears over a greater than expected slowdown in the U.S. economy.
The U.S. adding just 114,000 jobs net last month. Missing expectations by a wide margin and adding to a month's long slowdown. It also followed a
number of other economic red flags this week, including mixed tech earnings, dismal manufacturing data, and signs of weaker consumer spending.
I can tell you stocks did finish off this session lows, but the Dow and S&P dropped well over 1 percent. The NASDAQ fared worse and is now down 10
percent from recent highs. That's the technical definition of being in a correction. Context, of course, key. U.S. stocks were at record highs just
a few weeks ago, and U.S. economic growth is still strong overall. Today's report does, however, and has led to a frantic round of finger pointing and
criticism of the Federal Reserve for not cutting rates this week. JPMorgan and Citigroup now believe the Fed will cut by a total of 1 percentage
points this year, if not more.
Richard Quest, It's here. Richard, shoulda, woulda, coulda are the last words of a fool. The question is, was the Fed foolish not to cut rates
yesterday?
RICHARD QUEST, CNN INTERNATIONAL HOST: It depends on where you sit. They say, of course, that their preferred rate of inflation, whilst coming down
nicely, is still about a quarter higher than they'd like it to be, 2.6, 2. 5 percent. They want 2 percent.
And so, yes, the reality is, as inflation has come down, so real interest rates adjusted for inflation are now much more heavily towards tightening
and the question of whether or not they've stomped on the brakes too hard.
Julia, look at this graph and you'll -- it explains why we are where we are. All the interest rate rises that we have had over the last two years
or so, they've had a cumulative effect. They've built up in the system more and more to the point where it's almost an irresistible force. There you
see it. It's an irresistible force down on the economy, because there's a monetary lag, as you know, between 9 and 15 months. That's why we're seeing
now the slowdown that really started when interest rates started to go up.
CHATTERLEY: Yes, the question is, Richard, and this has been the big fear that, at some point, if you start bringing interest rates down, when you've
fought so hard to bring inflation down, you risk a spike higher. So, you understand the challenge that they've got. What I don't understand today is
the sort of freak out that we saw with one data point that signals slowing. But what's the big difference if you cut today or in September?
QUEST: None. None, whatsoever. Unless you start to cut by 50 basis points. Because remember, going down, the monetary lag is less, maybe three to nine
months, but there's still a monetary lag. So, even if you start cutting now, the cake is baked for what's going to happen over the next three to
six months.
The Fed know this. My guess is that they are perfectly comfortable with a slowdown that might be on the too harsh side because they don't want to
repeat that the '70s and the '80s of cutting rates, then having to rise -- raise them again afterwards.
[18:05:00]
But it's a very fine balanced argument. The Bank of England yesterday cut rates. Exactly the same issue. They did a more symbolic cut. Basically,
saying, everybody, don't expect more just yet.
CHATTERLEY: Yes, I just feel like there needs to be a sense of calm at this moment.
QUEST: Oh, the market, the market is -- usual children that haven't got their sugar rush, that need -- I mean, there is nothing in intel that
justifies its cut -- of its share price down 30 percent in one day, even from elevated prices. Bearing in mind that's the worst performance since
1974.
CHATTERLEY: Yes, and I'll agree with you on it is summer markets, A.I. stocks have taken a hit this week, the data's a little bit more concerning.
Investors, I think, need to keep calm and carry on. Richard, we'll debate the economics on a different day. Have a great weekend. Thank you, sir.
QUEST: You too.
CHATTERLEY: All right. Let's move on. The U.S. Defense Department has announced that the U.S. is sending a carrier strike group, a fighter
squadron, and additional warships to the Middle East as the region braces for an Iranian retaliation to the killing of a senior Hamas leader in
Tehran earlier this week. Oren Liebermann is at the Pentagon for us. Oren, what more do we know?
OREN LIEBERMANN, CNN PENTAGON CORRESPONDENT: Julia, this is arguably the largest shift of U.S. forces to the region we have seen a Since the
beginning of the war back in October. According to a statement just released a short time ago from the Pentagon, Defense Secretary Lloyd Austin
has ordered a carrier strike group to the region, the USS Abraham Lincoln. That's currently in the Pacific. It will replace the USS Theodore Roosevelt
carrier strike group, which is already in the region.
In addition, there will be destroyers and cruisers capable of intercepting ballistic missiles that are headed to the region. Although, the Pentagon,
at this point, is not specifying which warships will be headed. And they're going not only to the Middle East, but also to the Mediterranean Sea. From
that perspective, it's worth remembering that U.S. destroyers in the Mediterranean Sea intercepted ballistic missiles that were part of the
Iranian barrage that was fired back in April against Israel. So, they have shown their value in that capability before here. So, they, too, will be
operating both in the Mediterranean Sea and in the Middle East to intercept this anticipated Iranian retaliation.
Also, worth noting that Austin -- or rather the statement from the Pentagon says Austin also ordered a fighter squadron to the region. Fighter jets
have been used to intercept Houthi attacks against ships and others in the region over the course of the past several months. So, we have seen these
capabilities operate before.
What is noteworthy is the amount of them sent right now. And, Julia, that speaks to what the U.S. is anticipating here. We have spoken with officials
here over the past several days who say this might be like April 13th when Iran launched ballistic missiles and drones at Israel, or it could be much
larger than that, including a coordinated attack with Hezbollah against Israel, with the Houthis also against Israel, and potentially, Iranian
proxies in Iraq and Syria firing on U.S. forces in the region. All of that is on the spectrum of possibility, and that's why the U.S. is sending this
level of forces to be ready for as much of that as possible.
In terms of the timing, we have seen the rhetoric from Iran, we have seen the rhetoric from Hezbollah, and officials say they're anticipating that a
response could come sometime in the coming days here. This is something they're watching very closely, trying to pick up on any intel that gives
them a hint as to where this response might fall on the spectrum of possibilities as they look to prepare for it.
President Joe Biden promised Israeli Prime Minister Benjamin Netanyahu that the U.S. would boost its defensive forces in the region here. As it tries
to help Israel, making clear that this is for defensive purposes and this is not some new attack that the U.S. will try to carry out. The U.S. trying
to live up to that commitment, the Biden administration trying to live up its -- to its commitment to stand by Israel for what it calls its defensive
needs. And this is what the U.S. is showing here. Julia.
CHATTERLEY: Yes, a strong message of the ongoing defensive support that it will provide Israel in the scale to your point of what's being provided
here. Oren Liebermann, great to have you with that.
Nic Robertson joins us now. Nic, as Oren was saying there's a lot of question marks and guesswork at this moment over what that response from
Iran might look like. He pointed to the attack that we saw back on April 13th, and we saw the U.S. and other allies stand in support of Israel that
night and beyond. Nic, the question is, what kind of response are we looking at? What scale of response, when, and will it be as well
telegraphed as April 13th was?
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes, some of it may be telegraphed. You know, there's an assessment that says Iran wanted to
respond back in April to the strike that Israel had taken on its consulate building, where there was a meeting of some of its most senior military
commanders. They wanted to have a strike that didn't escalate things further. So, there was a narrative coming from Iran that, A, this is coming
and, B, it's going to be relatively limited.
[18:10:00]
And there were -- there was a telegraph nature to this because satellites pick up movements on the ground of missile systems being readied. And there
was a secondary telegraphing, if you will, a slightly shorter telegraph, if you like, because the drones took longer to get to Israel. So, they were in
the air for a couple of hours before they started getting close for Israel, and they were taken out. And then, there was the cruise missiles, which are
a little bit quicker than the drones and were there within about an hour or so.
And then, it's the ballistic missiles that actually were the missiles that we're most aware of that actually punched through. They took about 12
minutes to get from Iran into Israel. And a couple of them got through and targeted the air base, a military base where the Iranians said that the
fighter jets had taken off from in Israel that had struck the consular building in Damascus.
So, where does that leave us? Well, last go round -- I was there in Israel and what watched the intercepts over Jerusalem as they were happening. And
it's a very complex, you know, set of events. There's a lot of munitions in the air to track. And Israel and Iran will have learned from each other, is
Iran will have studied how Israel responded and Israel will have studied how Iran tried to attack it, because it was the first time that this had
happened.
So, Iran will try to outmaneuver and they'll potentially try to use more support from Hezbollah in the north. There were missiles fired by Hezbollah
that night, earlier in the night. But it -- in essence, what Iran, if it wants to be successful to get missiles through, needs to overwhelm that
defensive shield. The fact the United States is sending more ships tells you they're increasing that defensive shield. More than 300 missiles fired
by Iran last time. The United States was involved in intercepting of about 70 of them.
And of course, the Jordanian airspace and Saudi airspace. Although, they didn't talk about this publicly, that became available for the allies to
help and give them a bigger buffer zone to defend Israel. So, yes, we will get some kind of idea most likely, but not definitively, yes, of what Iran
is planning. But there's still dealing with it. And that's that really at the moment is the big question mark.
CHATTERLEY: Yes, and still leaves a great deal of uncertainty. Nic Robertson, great to have you with us in Washington there. Thank you.
Now, U.S. Vice President Kamala Harris says she's honored to have garnered enough delegate votes to win the Democratic presidential nomination. The
count was announced by the Democratic Party chairman earlier today, and comes as Harris gets ever closer to announcing her VP pick too, something
people expect imminently. Sunlen Serfaty has the story.
(BEGIN VIDEOTAPE)
JAIME HARRISON, CHAIRMAN, DEMOCRATIC NATIONAL COMMITTEE: I am so proud to confirm that Vice President Harris has earned more than a majority of votes
from all convention delegates.
SUNLEN SERFATY, CNN WASHINGTON CORRESPONDENT (voice-over): The DNC announcing Friday that Vice President Kamala Harris has won enough votes
from Democratic delegates to become the party's nominee for president.
KAMALA HARRIS, U.S. VICE PRESIDENT AND U.S. PRESIDENTIAL DEMOCRATIC CANDIDATE: I will officially accept your nomination next week. Once the
virtual voting period is closed, but already, I'm happy to know that we have enough delegates to secure the nomination.
SERFATY (voice-over): And Harris is closing in on one of the most consequential decisions of her political career as she is set to debut her
running mate on Tuesday in Philadelphia.
UNIDENTIFIED MALE: Will you be in Philadelphia on Tuesday by chance?
GOV. JOSH SHAPIRO (D-PA): I hope to be, yes.
SERFATY (voice-over): Sources tell CNN that Harris has not made a decision yet, but is scheduled to meet with top finalists over the weekend with most
expected to be in person. Those set to meet with Harris include Minnesota Governor Tim Walz, Pennsylvania Governor Josh Shapiro, Arizona Senator Mark
Kelly, Kentucky Governor Andy Beshear, Transportation Secretary Pete Buttigieg, and Illinois Governor JB Pritzker.
Some contenders shifting their schedules as Harris nears a decision.
PETE BUTTIGIEG, U.S. TRANSPORTATION SECRETARY: You know, every day we have to tweak the schedule a little bit because things come up, calls and
meetings that we have to take of.
UNIDENTIFIED FEMALE: Could you explain what those are?
BUTTIGIEG: No.
SERFATY (voice-over): Others joking about fellow hopefuls clearing their calendars.
GOV. J.B. PRITZKER (D-IL): Lollapalooza is happening this weekend here in Chicago. You know, I've heard other governors talk about how they've
cancelled their weekend plans. I was going to perform, of course, with Blink 182 on Sunday, but I've cancelled in order to clear my schedule.
SERFATY (voice-over): The meeting's poised to play a critical role in her selection process. Sources tell CNN Harris is looking for a running mate
that she gets along with personally and will not be a distraction. But her top consideration is electability, assessing which contender will help most
with independents and swing voters, especially in the battleground states.
SHAPIRO: I got a message to Donald Trump. Stop -- talking America. This is the greatest country on the face of the Earth.
[18:15:00]
SERFATY (voice-over): Shapiro, Walz and Kelly are seen as the top contenders with Beshear also being looked out closely. Shapiro and Kelly
hailing from key battleground states.
SEN. MARK KELLY (D-AZ): This is not about me. You know, this is about Donald Trump. And what a sad figure he has become.
(END VIDEOTAPE)
SERFATY (on camera): And the vice president is spending her weekend here in Washington at her home at the U.S. Naval Observatory. And sources tell CNN
that these face-to-face meetings will be so critical to her deliberative process over the next few days as she works to make that decision. And that
they tell us that certainly potential other candidates could be thrown into the mix on her schedule as well. Certainly, a very huge day, Julia. Huge
few days for the vice president as she moves towards making this decision by Tuesday. Julia.
CHATTERLEY: It certainly is. Our thanks to Sunlen Serfaty there.
Now, Venezuela's Electoral Council has released new figures saying President Nicolas Maduro won Sunday's disputed election as unrest continues
to rule the nation. The council, also controlled by President Maduro, now says he won with about 52 percent of the vote, with 97 percent of ballots
tallied. The opposition says Candidate Edmundo Gonzalez won the landslide and that the election was fixed.
Meanwhile, the U.S. is rejecting claims that it's behind violence in Venezuela after Venezuela's government accused the United States of leading
a coup attempt against the nation. It follows remarks by U.S. Secretary of State Antony Blinken Thursday on social media which recognized Gonzalez as
the winner.
Stefano Pozzebon, joins us now from Caracas with more. Stefano, it does look like Maduro not appreciating the U.S.'s suggestion that he didn't win
this election. The problem with this is we know that the Electoral Council has been criticized in the past and is biased. Where does that leave the
nation? Where does that leave voters and Maduro himself?
STEFANO POZZEBON, CNN CONTRIBUTOR: Well, more than the bias of the Electoral Council that, yes, it's been criticized in the past and it's
stacked by government sympathizers. The thing is that they haven't released the data yet. They haven't released the ballot tallies that they say give
the victory to Maduro. And when I say they, I mean both the Electoral Council, but also the Maduro's socialist party. Maduro is also the head of
the party here in Venezuela. And they also say that they have data that give them the victory to Maduro. And that -- those data is nowhere to be
found as either.
Today, for the first time, Maduro went to the Supreme Court to ask the judge to look into the matter, in what is seen as a way to kick that can
down the road and try to slow down and to get some fresh air from the international pressure, from the International Community that is asking him
to release the data.
Our colleagues at CNN, Osmary Hernandez, was able to ask Maduro directly, where are -- where is the data? Did you take it with you here? And she --
he just said, we have the data, we're going to release it in due time.
Now, the point is, it will be very easy to know who won this election, because the opposition has deployed, in the weeks ahead of the election, a
network of about 90,000 volunteers who picked up the ballot tallies from the machine.
This is very trivial, by the way, Julia. Like you have a voting machine that is an electronic machine. That machine, at the end of the voting day,
sends an electronic signal to Caracas, which is what the CNE, the Electoral Council, counts. But they also print out a paper tally that these
volunteers from the opposition took and scanned on their phones and then transmitted to the opposition party. And they have already published online
more than 22,000 voting tallies. More than 22,000 voting centers have been accounted. And that's why they say 67 percent of the vote went to the
opposition candidates.
And the only way to get out of this ugly mess, unfortunately, is for the CNE, the Electoral Council, to actually release the data that they have,
compare and contrast with what the opposition has. And they will be clear who the winner is.
The more Maduro keeps delaying the presentation of the data that he claims he has, the more the situation will get ugly and the more tension will rise
here in Caracas. Because this would be very laughable, what we're talking about here. It's a one electronic message against the paper trail. But
there are lives involved because more than 20 -- at least 20 people have been killed in the protests that have erupted since the election.
There are more than a thousand Venezuelans who have been in jail, incarcerated because of -- they took to the streets to protest. Maduro has
said about half an hour ago that two dozens of the military force members have been wounded. So, the situation here is extremely serious. And yet,
they haven't released the data yet. Julia.
[18:20:00]
CHATTERLEY: Yes, we have to assume that the International Community will continue to pressure to see that data, Stefano, because I think the
criticism will only grow. If you think you've won the election and you know you've won the election, show the data and prove it. Stefano, good to have
you with us. Sir. thank you. Stefano Pozzebon there in Caracas.
All right. Straight ahead, more on the Friday freak out on Wall Street. We'll discuss what it takes to preserve a so-called soft economic landing.
And from soft landings to, well, no landings. Astronauts aboard the International Space Station still waiting for a ride home, but at the same
time, keeping busy with their own version of the Summer Games. I wish there will be space games. We've got more, next.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move." And returning once more to our top story today. A Fed interest rate cut in September has gone from
probable to a near certainty after Friday's weaker than expected jobs report. The Fed coming under fire for not reducing rates to its meeting
this week. After the just released July jobs report undershot expectations by a wide margin.
In addition to Wall Street's losses, European stocks also suffered. Germany leading the decline, down over two and a quarter percent. And if that was
bad, Asia was worse. We saw sizable losses across the board, with the Nikkei down almost 6 percent. The Japanese topics has also had its worst
day in eight years. And it wasn't just stocks, actually. U.S. bond yields fell to their lowest point this year and oil prices tumbled on slower
growth fears too.
Let's get some context. Joining us now, Jason Schenker, is the president and chief economist of Prestige Economics. Jason, welcome to the show. The
Fed will have seen this data before they made the decision on interest rates. They have a pretty good sense of what's going on in the economy. Did
they mess up this week by not cutting rates?
JASON SCHENKER, PRESIDENT AND CHIEF ECONOMIST OF PRESTIGE ECONOMICS: Thanks for having me on, Julia. I don't think they made a mistake. They knew the
data was here and the Fed chair, Powell, in his press conference, repeatedly stressed that they're looking at the totality of the data.
And the top priority for them has been inflation. They did acknowledge in the statement this week and in the press conference that now there are sort
of two-tailed risks, both from inflation and also downside to the labor market. They're watching these data points very closely. They are data
dependent.
[18:25:00]
And I think going forward, they're going to be watching every release before they make their September decision.
CHATTERLEY: If we look at this number, it was weaker than expected, but we're still net adding jobs. The unemployment rate rose, but a lot of that
is because more people are coming into the jobs market that the challenge is just making sure that there are jobs available for those people to go
to. I sort of take a step back and I look at the number of analysts that came out saying they need to cut rates by 1 percentage point this year,
perhaps even more. Some people talking about a rate cut before the next meeting. And I just wonder what the panic is.
SCHENKER: Well, I think these are really good questions. I think the first piece is that an intermeeting cut would take something more significant
than a jobs report where you saw a net gain in payrolls.
CHATTERLEY: Right.
SCHENKER: This was still a positive jobs report. In that respect, we are now at a record all-time high for payrolls. We are at a record all-time
high for the labor market. And in fact, if you look at the three-month average of payrolls, that actually accelerated this month, the three-month
average actually went up.
So, to say that this is catastrophic is a little bit too far. But I think what analysts are worried about is that this is the camel's nose under the
tent and there's a lot more to come against that, right, the idea that there's never just one cockroach, that there's going to be more bad jobs
data to come. There's also the idea that one report does not a trend make.
And so, we're going to be watching that next jobs report more closely than ever to see if this is the outlier or if this is the trend and if things
are going to get worse. Unfortunately, this report came after yesterday's ISM manufacturing index, which took a really big drop, and that's data that
the Fed did not have in front of them.
CHATTERLEY: Yes.
SCHENKER: But still, right now, inflation is elevated, and this still was a modest number of positive job gains.
CHATTERLEY: Yes. And I think if you take some of the sort of flapping in the panic out of what we felt today, which had other sort of market
reasons, perhaps you could also argue it's not going to hurt to take interest rates down to 4 percent, if you want to just sort of maintain and
support what we're looking at, as -- at least at this stage, is a soft landing. But no one should be talking about sort of recession risks,
imminent recession risks today. Is that correct?
SCHENKER: Well, I think knowing that the risks are rising is important. There's this thing called the sum rule where if the unemployment rate goes
up more than half a percent in a year, it's a signal of recession. The same thing is true if we look at the ISM, where the below 50 for a period of
time is a signal of recession, but that's been weak for a while.
And so, you have now two data points two days in a row that could mean a recession is brewing, but we're coming out of very exceptional times. And
so, this might be one of those times where that rule also finds an exception. It doesn't mean there's not risk, it doesn't mean a recession
couldn't happen, but we still have about 8.2 million open jobs as of the month of June and jobless claims are below 1.9 million.
So, considering the totality of the data, the Fed is probably still going to be a little bit worried about inflation. By the way, if the market
freaks out by the fact that this report is, whatever, 60,000, 70,000 fewer jobs than expected, it's not a big delta, right? Imagine if this had been a
negative number, what would have happened, right? But this wasn't negative. It was still a positive addition, but rate cuts are coming. And if the data
gets worse, we will see more rate cuts than expected.
CHATTERLEY: Yes. And they're watching it closely. And I will just add, Claudia Sahm, on that rule was asked, and she even said, look, she doesn't
see recession risks at this moment. And Jay Powell was asked about it. And he said, it's, you know, something to watch versus being a rule. So, we've
tied the bow on that.
I was going to ask you about black jobs and employment, but we've run out of time. So, I'm going to save it till next time. Jason, great to have you
on and have a fantastic weekend. Sir, thank you.
SCHENKER: Thank you, Julia.
CHATTERLEY: Thank you. Now, dark clouds over the U.S. economy and stormy skies headed for Western Florida right now. We're hearing about warnings of
storm surges, heavy rain and flash flooding. With all the details, Elisa Raffa is at the Weather Center. Elisa, that doesn't look good. Talk us
through what we're expecting.
ELISA RAFFA, CNN METEOROLOGIST: We are expecting a tropical storm to develop as we go into the weekend. Right now, it's being called a potential
tropical cyclone because it's still developing over parts of Cuba. It's slow to develop because it's kind of getting beat up a little bit by the
mountains.
But as it gets out into the open water, we have near record warm temperatures here in parts of the Gulf of Mexico, especially as you get
towards that Tampa Bay area. You see all those deep purples. We're talking about the sea surface temperatures up near 40 degrees -- oh, I'm sorry,
well over 30 degrees Celsius. I mean, in the lower 90s. So just incredible. Some of these temperatures and that could fuel some of that development
into that tropical storm.
[18:30:00]
So, we've got some warnings that now include parts of Fort Myers. The watches stretch into Tampa. Tropical storm force conditions could start as
soon as Saturday night. And then, look at that, it very slowly Scrapes the east coast of the U.S. As we go into the work week here, that can mean, you
know, an onslaught of storm surge and some heavy rain. Storm surge two to four feet from Cedar Key down towards Fort Myers. It's over a meter in some
locations.
Looking at impact starting by Saturday night, going into Sunday. And then, like I mentioned, it cuts across the Florida Peninsula. And then just look
at that slow roll along the Carolina Coast. We're looking at four to eight inches of rain, up to a foot. That's more than 200 millimeters could cause
flash flooding. Julia.
CHATTERLEY: Wow. We'll continue to watch that. Elisa Raffa, great to have you with us. Have a great weekend too. We'll be right back. Stay with us.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move" with a look at more international headlines this hour. The U.S. Defense Department says the U.S. is sending a
carrier strike group, a fighter squadron, and additional warships to the Middle East. It comes as the region braces for Iranian retaliation for the
killing of senior Hamas leader, Ismail Haniyeh, in Tehran earlier this week.
Protesters returned to the streets of Bangladesh to demand the resignation of its prime minister. Earlier in the day, UNICEF said at least 32 children
were among those killed during unrest last month. Anger over civil service job quotas triggered the original protests. Demonstrators are now also
demanding justice for those who were killed.
The search continues in Southern India for victims of some deadly landslides. One official says the death toll has now risen by more than 200
people. Another 200 are still missing. The disaster happened Tuesday in the State of Kerala, about 9,600 people have been displaced.
[18:35:00]
And it was a hero's welcome for three Americans released from prison in Russia, now readjusting to life back in the United States. They were part
of the biggest east-west prisoner swap since the Cold War, one that involved 24 detainees. Among the prisoners to Russia -- or released to
Russia, Russian intelligence agents who were so deep under cover that the Kremlin says their children didn't even speak Russian, or know they were
Russian, or even who Vladimir Putin was. Nada Bashir has more on the historic exchange.
(BEGIN VIDEOTAPE)
NADA BASHIR, CNN REPORTER (voice-over): Home at last. Landing at Joint Base Andrews in Maryland, the long-awaited return of three Americans detained in
Russia now finally a reality. Former U.S. Marine Paul Whelan, journalist Alsu Kurmasheva, and Wall Street Journal reporter Evan Gershkovich. Seen
here being welcomed by cheers before an emotional reunion with his mother. All smiles as he greets fellow journalists.
For President Biden, this was an historic feat of diplomacy.
UNIDENTIFIED FEMALE: Did you think that this moment would come, sir?
JOE BIDEN, U.S. PRESIDENT: Yes.
UNIDENTIFIED FEMALE: What made you feel so confident?
BIDEN: My relationship with the heads of state.
BASHIR (voice-over): Their return comes as part of a carefully brokered exchange. The largest prisoner swap, according to the U.S., since the Cold
War. Secured in coordination with Germany, Poland, Slovenia, Norway, and Turkey. Among the 16 U.S. and European nationals released from detention in
Russia, prominent Putin critic, Vladimir Kara-Murza, a British national and permanent U.S. resident. Heard here speaking to his children who joined the
president in a call from the Oval Office.
VLADIMIR KARA-MURZA, RELEASED RUSSIAN PRISONER: I was sure I'm going to die in prison. I don't believe what's happening. I still think it's a -- I
still think I'm sleeping in my prison cell in Omsk.
BASHIR (voice-over): Not all American nationals held in Russia, however, were released. The family of Marc Fogle, who worked in Russia as a teacher
and was arrested on drug charges in 2021, have expressed their disappointment.
ANNE FOGEL, SISTER OF MARC FOGEL, AMERICAN HELD IN RUSSIA: It's been a roller coaster. No sleep. I feel like we've been kind of collectively
stabbed in the back.
BASHIR (voice-over): In an emotional statement, U.S. National Security Adviser Jake Sullivan said all Americans wrongfully detained remain a
priority.
JAKE SULLIVAN, U.S. NATIONAL SECURITY ADVISER: Today was very good day and we're going to build on it, drawing inspiration and continued courage from
it for all of those who are held hostage or wrongfully detained around the world.
BASHIR (voice-over): As part of the exchange, eight Russian nationals, including convicted killers and spies, were also returned to Moscow.
Sparking concern that the deal could strengthen Russia's hand and even encourage other adversaries to arbitrarily detain foreign nationals as
bargaining chips. But such criticisms have been rejected by Biden.
And for those who have anxiously waited for the return of their loved ones, including Evan's Wall Street Journal colleagues who campaigned for months
for his release, this is a moment of celebration.
Nada Bashir, CNN, London.
(END VIDEOTAPE)
CHATTERLEY: OK. Coming up for us, two NASA astronauts on the International Space Station are apparently going nowhere this weekend, apart from around
the world again and again. We'll update you on the Boeing Starliner situation, next.
(COMMERCIAL BREAK)
[18:41:36]
CHATTERLEY: Welcome back to "First Move." And about 250 miles above us, two NASA astronauts are hoping they haven't outstayed their welcome on the
International Space Station. The pair, who arrived on the first manned flight on the Boeing Starliner in early June, were actually originally
scheduled to stay for eight days. Yet, they remain there. Now waiting for clearance for a ride home after their ship suffered helium leaks and
thruster outages.
Meanwhile, NASA has revealed who's flying on the SpaceX mission to the ISS next year, and the crew includes two mission specialists from Russia and
Japan. Retired NASA astronaut Leroy Chiao joins us now from Houston.
Leroy, always fantastic to have you on the show. Now, NASA always say that these trips are flexible in terms of time. At what point, when you've been
up there for how many days it is now, do you start to get a little nervous?
LEROY CHIAO, NASA ASTRONAUT (RET.): Well, nobody really likes uncertainty on anything, and of course the original flight was only supposed to be nine
days. So, bit of a surprise for Suni and Butch to be delayed, then delayed again, then delayed yet again, and even now, without a firm return date.
So, they're making the best of the situation.
I'm sure they had other plans, but you know, astronauts like being in space. And so, they've both been on long duration flights before. They're
just making the best of it and waiting for the right decision to be made about their return. So, a lot of questions still and they're still in a bit
of limbo.
CHATTERLEY: Yes. I mean, NASA have two different systems. Obviously, they have the Boeing Starliner, then they also have the SpaceX Crew Dragon.
What's to stop them using a SpaceX craft to bring them back? There was the suggestion put forward by SpaceX in recent weeks in a press conference that
they know they have alternative options, but other politics of that perhaps more difficult.
CHIAO: Well, sure. I mean, Starliner, we -- supposed to be, you know, NASA wanted more than one supplier of a vehicle to fly to and from the ISS,
Starliner and SpaceX's Dragon, which has been operating with astronauts for around three years now, were the two. And so, Starliner making its first
flight was a big deal because no longer would we dependent -- be dependent only on the SpaceX Dragon. However, because of its problems, we've seen
these delays.
Now, NASA announced last week that they thought they had a good handle on the problem, which was great news, because then they could set a date for
Butch and Suni to come home. But what we're hearing now is that they don't still have a root cause for the failure of these thrusters that they
experienced on approach to the station.
So, without understanding a root cause, how can you rationalize putting humans on the vehicle to come back? And so, they're working very hard with
Boeing to come up and nail down a root cause for those failures and then figure out a solution to it. And then, they can clear the Dragon -- or the
Starliner to come back.
Absent that, yes, the other option is to come back down on a Dragon. That's a logistics issue. So, now, we're talking about maybe two members of the
Crew nine that are about to launch. Maybe two crew members are left behind and Butch and Suni can come back on that vehicle. You know, there's options
perhaps to bring more than the, you know, usual amount of people up and down because Dragon was originally designed to be able to take up to six
people at a time.
[18:45:00]
So, I'm sure all those options are being looked at as they run in parallel to figure out the Starliner issue. Hopefully, they'll figure out the
Starliner issue soon and we'll be able to get them back down on that vehicle. Otherwise, as you kind of said, the implications are pretty
profound if we never figure out what went wrong with the Starliner, how can we really fly that vehicle?
CHATTERLEY: Yes, I can imagine there are far greater conversations being happened -- happening behind the scenes versus what we're hearing now in
public. In the meantime, though, they're keeping busy, including, and I think this video is great, carrying out their own sort of space Olympics. I
just wanted to get your take on this. Some of this is really great. The lifting of two of their colleagues on a bar, which you'll see in a second
is great.
Firstly, what do you make of this? And secondly, how difficult is it to stay fit in space? How hard are some of these maneuvers, Leroy? Oh, look.
This is it.
CHIAO: Yes, of course, working out -- exercise in space is very important. We are scheduled to exercise for two hours a day, and that includes
cardiovascular, you know, doing an exercise bike and/or doing a treadmill. Of course, in zero-G you need a harness and rubber bungees to hold you down
onto the treadmill to use it. We have resistance exercise devices. And so, all that is very important to keep your circulatory system, your heart in
shape and also your muscles and your bones.
And so, two hours of exercise a day, pretty much didn't miss many days. Only when you get super busy. But, you know, having fun like these guys are
having, these folks are having up on the station that's a lot of fun. It's easy to do gymnastics and zero-G, a lot easier. You know, I wouldn't
personally try it on Earth. But yes, you could see the fun they're having and it's pretty easy to do those kinds of things. And obviously, they're in
good spirits and having a blast.
CHATTERLEY: Yes. I could definitely think I'd be a gold medalist in gymnastics up there. Wouldn't even dare go near a bar down here. Yes,
Leroy, great to get your insights. Sir, thank you. Have a fantastic weekend.
All right. Coming up, we are back to Earth with the Olympics here in Paris. We'll get the very latest on who's getting those golds. Stay with us.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move." An Algerian boxer is fighting a torrent of online abuse as she competes at the Olympic Games. Imane
Khelif's gender is being called into question by prominent figures like Donald Trump, Elon Musk and J. K. Rowling. And her accomplishments in the
ring are being overshadowed too by misinformation. Melissa Bell sets the fact straight in this report.
(BEGIN VIDEOTAPE)
MELISSA BELL, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): It was a quick win for Algerian boxer Imane Khelif, defeating Italian opponent
Angela Carini after only 46 seconds in the ring. Khelif's powerful opening barrage of blows left Carini in pain, retreating to her corner and
withdrawing from the fight.
But there continues to be a backlash over the victory, with some critics questioning whether Khelif should have been allowed to compete in that ring
at all, and claiming that Khelif is a man or transgender, something IOC officials have emphatically denied.
[18:50:00]
MARK ADAMS, SPOKESPERSON, IOC: The Algerian boxer was born female, was registered female, lived her life as a female, boxed as a female, has a
female passport. This is not a transgender case.
BELL (voice-over): The controversy over Khelif's gender has been fueled in part by her disqualification from the 2023 World Boxing Championships,
after the International Boxing Association says she and another boxer failed an unspecified gender eligibility test. But the IOC cleared Khelif
and the other athlete to fight in the Paris Games, casting doubt on the test that was previously used by the IBA, which was stripped of its
recognition as the official boxing body for the games by the IOC for corruption and financially related issues.
Italian Prime Minister Giorgia Meloni said she didn't think the fight between Khelif and Carini seemed fair and raised her concerns with the IOC.
GIORGIA MELONI, ITALIAN PRIME MINISTER (through translator): I think that athletes who have, let's say, male genetic characteristics should not be
allowed to compete in women's competitions, and not because we want to discriminate against anyone, but to protect the right of female athletes to
be able to compete on equal terms.
BELL (voice-over): And some spectators say they wish that the IOC had done more to head off a potential backlash before the fight began.
UNIDENTIFIED FEMALE: I'm sure it was hard for her to decide to compete when she knew she was going to be getting a lot of criticism. I wish her all the
best, and I know everyone has their own opinions. So, I mean, the Italian is entitled to forfeit.
UNIDENTIFIED MALE: I think it's an important topic, and it has to be addressed. And I find it unfortunate it wasn't addressed before the
competition. And therefore, it's a bit tragic for both parties.
BELL (voice-over): Carini since said that she's sorry for not shaking Khelif's hand after the match, and that she respects the IOC's decision to
allow her to compete. But the IOC says there's been a wave of online abuse against Khelif that's ongoing and rooted in misinformation.
BELL: The other boxer who fell foul of the International Boxing Association's eligibility rules last year at the world championships in New
Delhi is Lin Yu Ting, the Taiwanese boxer who here in Paris this Friday, took on an Uzbek opponent winning all three of her rounds.
BELL (voice-over): The IOC has strongly supported both Khelif and Lin's right to compete and says that it's in close contact with both athletes.
Khelif will get her next shot in the ring on Saturday when she faces the Hungarian Anna Luca Hamori.
Melissa Bell, CNN, Paris.
(END VIDEOTAPE)
CHATTERLEY: OK. Now, to one of France's homegrown heroes, 22-year-old Leon Marchand, putting on another dominant performance in the pool, winning his
fourth gold medal at the Paris Games while smashing Olympic records. Patrick Snell joins us now. Patrick, this is one to get excited about too.
This man is a prince of the pool.
PATRICK SNELL, CNN WORLD SPORT: What a storyline. Four gold medals and counting. Julia, you know, the young Frenchman comes from the City of
Toulouse, but he clearly doesn't know how to lose at the moment. He's in such red-hot form, sparkling form again the pool on Friday, just powered
his way to a fourth gold medal at these games. And nobody has more goals as of right now at these Olympics.
His latest gold coming, this was in the men's 200 meters individual medley. He also did it, just for good measure, in an Olympic record time of 1.5406
seconds, just six-hundredths of a second, in fact, of the world record time of the American Ryan Lochte.
This gold adding to his triumphs in the 200 meters breaststroke, the 200 meters butterfly, and the 400 meters individual medley. Marchand, who
attended Arizona State University over here in America, he could be far from done too. He could -- Julia, he could win two more golds if he
competes in additional team events. What a story le roi. I'm using my French high school skills here. Le Roi means the king, and he's proving to
be just that ever so regal at these games.
(BEGIN VIDEO CLIP)
LEON MARCHAND, WON 200M INDIVIDUAL MEDLEY GOLD: It's been unbelievable. Four gold medals is not what I thought I could possibly do. I was trying to
try to win one at first. I had four chances of doing it. So, after the (INAUDIBLE), I was really relaxed by the crazy race that I just did. Four
gold medals is -- yes, just -- I didn't know it was possible
(END VIDEOTAPE)
SNELL: He is one confident young man, Julia. And as I said, four, he may not be stopping at four. Clearly, he's very inspired, you know, by the
great Michael Phelps. I mean, who wouldn't be?
CHATTERLEY: Wow. Aren't we all? We're just not as powerful as this man in the pool. Now, it's one thing to be given, or to win, let's be clear, an
Olympic medal. It's quite another to get an Olympic ring. Talk to me about diamonds, please.
[18:55:00]
SNELL: Oh, I see where you're going with this, Julia. Look. it's one of my favorite stories of the day, no question. Love is in the air, quite
clearly, in the French capital at the moment. And what a moment for Chinese badminton star, Huang Ya Qiong, who has not one but two pieces of
silverware to be celebrating. She's a three-time world champion, and she was instrumental in leading her country to the victory over South Korea.
This was in the mixed doubles badminton final that took place on Friday, getting their hands there on the coveted gold medal.
But the day getting even better for the happy couple in question, because shortly after receiving her medal, what happens? Her day gets even better.
As I said, her boyfriend and fellow national team badminton player, Liu Yuchen, presenting out with a bouquet of flowers. He then drops to his
knees, pulls out a ring, and proposes, and delighted to say, she says yes.
So, I'll congrats to the happy couple. It's wonderful to see. And the storylines at the Olympics just keep getting better and better. Look at the
-- just the shock. I think she covers her face there. It's wonderful to see. And it's a winning day for her all round. Congrats to them both.
Julia.
CHATTERLEY: Smart for him too, because she couldn't say no with the whole world watching.
SNELL: Right. No pressure, right?
CHATTERLEY: No pressure. Congratulations to them both. Patrick, thank you for that. Some fantastic stories.
And that just about wraps up the show. Thank you for joining us. Have a great weekend, and I'll see you next week.
(COMMERCIAL BREAK)
END
