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First Move with Julia Chatterley
U.S. Stocks Have Their Worst Day In Two Years; U.S. Stocks Fall Sharply; Bangladesh PM Flees The Nation; Bangladesh PM Resigns After Deadly Protests; Several U.S. Personnel Injured In Rocket Attack In Iraq; Kamala Harris VP Choice Down To Two; Horrible Start To The Trading Week Across Global Markets; U.S. Prepares For Iranian Retaliation; Israel On High Alert; Iran And Hezbollah Vowing To Retaliate; Tropical Storm Slams Southeastern U.S.; Simone Biles Takes Silver On Floor Final. Aired 6-7p ET
Aired August 05, 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 ANCHOR: Biles scored just fractions of a point behind Andrede, landing her a silver medal and Chiles a bronze. Congratulations to
all of them. They're frankly three queens.
You can follow me on Facebook, Instagram, Threads, X, formerly known as Twitter, and on the TikTok @jaketapper. You can follow the show on X @The
LeadCNN. If you ever miss an episode of "The Lead," you can listen to the show whence you get your podcasts. The news continues on CNN.
(COMMERCIAL BREAK)
JULIA CHATTERLEY, CNN HOST, "FIRST MOVE": -- Tokyo 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. Sell-off stress. U.S. stocks have their worst day in two years
following Japan's Monday market rout. All eyes on the open there amid broader U.S. recession fears.
Deadly demonstrations. The prime minister of Bangladesh flees the nation as nearly 100 people die in new anti-government protests.
Veepstakes. Kamala Harris VP choice down to two. The decision expected within hours.
And, comeback complete. Simone Biles stumbles but still megawatt shines on the last day of her Paris Olympic Games. All that and plenty more coming
up.
But first, a record-breaking day for global stocks for all the wrong reasons. The fierce summer sell-off that began late last week, showing no
signs of easing on Monday. Just take a look at this U.S. stocks having their worst session in two years. As I mentioned, the Dow falling more than
2.5 percent, the tech heavy NASDAQ down almost 3.5 percent. And among those big NASDAQ losers, NVIDIA, the chip stock, down more than 6 percent. Apple,
Alphabet, and Amazon all tumbling more than 4 percent plus.
But it also wasn't just contained to tech with all of the 30 Dow stocks falling on the day. And actually, we saw selling pressure into the market
close, which bears watching as well. Now, Monday's deep sell-off began in Asia with the Nikkei finishing down 12 percent. That's actually its worst
drop since the Black Monday crash of 1987. South Korea, tech heavy Taiwan down more than 8 percent. That was actually the worst stock plunge ever in
Taiwan.
Now, for some perspective, one month ago, the Nikkei was at a record. And now, it's in a bear market. Look at that chart. And it's tough to say at
this stage, if we're done with all this selling pressure given, hey, U.S. economic concerns, tech stock pressure, geopolitics, U.S. politics, all
weighing on sentiment.
Richard Quest joins us now. Richard, I present you with a kitchen sink, feel free to fill it further if you want to, but I do think it's important
to point out, this is fear, this is not panic, at least at this moment.
RICHARD QUEST, CNN BUSINESS EDITOR-AT-LARGE: It's -- yes, absolutely. It is worry. It is worry about what comes next. And it's not in the
traditional sense, but it's about whether the Fed left it too late to cut interest rates, or at least start the process of cutting rates.
Now, it's interesting, if they did leave it too late -- let's just game this out. If they did leave it too late, what's the worst that can happen?
Well, the market continues to slow down, the economy continues to slow down, and we might have a technical recession of a short order. But it's
not going to be a calamity, it's not going to be a disaster, things will pick up because they've got 500 basis points, Julia, that they can cut to
get things moving again faster.
The more tricky question on tech, I think, is the reality that has dawned on everybody that A.I. is here and here to stay and will be part of the
future, but it's not going to be profitable anytime soon.
CHATTERLEY: But profitability doesn't always stop investors investing, Richard. So, where do you draw the line? I think people have just got
impatient, given all the things that we've suggested. And even if the Federal Reserve is late in lowering interest rates, and I agree with you,
they probably are, it's only six weeks and they can cut interest rates. Should we really be panicking like this?
[18:05:00]
QUEST: Yes, but it's six months after they've started that we'll see the effect of that because of the laggards. You know, look, back to this
fascinating question. I know -- I think we're seeing -- with A.I. we're seeing similarities with dot-com. In other words, those companies that were
a part of the infrastructure that actually built out the internet certainly took their fair share of pain, as NVIDIA, as Intel, as Cisco is doing now.
But they also took it then as well.
It is the -- basically, the crappy companies, those that had no path to profitability, no rhyme or reason for staying in business, they got washed
away, and I think we'll see the same with A.I. But those who are actually building the thing, I think they'll suffer, but they won't be down and out.
CHATTERLEY: Are you a buyer of A.I. stocks, Richard? Very quickly.
QUEST: Now, come on. Come on. Don't take me down that road. But the answer is --
CHATTERLEY: It's too easy. I took --
QUEST: The answer is, selectively choosing. You don't, for one moment, Ms. Chatterley, believe that NVIDIA is going to disappear without trace. The
question is, when is it going to make better profits on the back of it to justify the share price?
CHATTERLEY: Yes. Don't get chopped around. Buy and hold if you believe the story. Longer-term investors here only, Richard.
QUEST: Oh, your cynicism and skepticism is just dripping.
CHATTERLEY: Richard Quest, great to have you on, sir. Thank you.
All right. Asian investors now gearing up for the start of trade on Tuesday. It's safe to say that the entire investment world will be watching
when things open up in a few hours' time. Marc Stewart is in Beijing for us. Marc, and part of what we saw in the U.S. markets was a spillover
effect from those whopping falls that we saw across Asia. What can you tell us about what we're seeing pre-market and what people there are saying?
MARC STEWART, CNN CORRESPONDENT: Well, I think, Julia, first and foremost, there is a search taking place across all the Asian markets for any kind of
morsel of potential good news to start buying again. Because as you have alluded to what we saw yesterday in many parts of Asia was just
unprecedented.
I was looking back at some of our reporting over the last few hours, I mean, some of the verbiage that we've heard from traders was avalanche and
contagion. And while it is certainly not unusual for a sell-off in one part of the world to prompt another sell-off in the next time zone, there are
some shared economic stresses.
You were -- and Richard were talking about a kitchen sink of problems. I'm going to say it's a layer cake of problems. But there is one shared issue
between Asia and the United States, and that's interest rates, particularly in Japan. The board -- the Bank of Japan, you know, really started making
announcements last week talking about continued high interest rates for, you know, a second time this year with traders expecting more interest
rates to come. That was very hard for traders here to digest. It makes borrowing more expensive, the cost of business more expensive.
Now, yes, the yen, which had been weak, has been gaining strength, and perhaps this is all being viewed as a market correction. Nonetheless, it's
just not the uplifting news that investors want to see and get them excited about moving forward and investing in the future.
Let's talk about what we are facing in the hours ahead. Again, the Nikkei down by 12 percent, the KOSPI in South Korea down by 8 percent, a similar
story in Taiwan. You know, any time we see a decline of 1 or 2 percent, that's significant. So, when we see these 12 and 8 percent declines, that's
very harsh.
But even the Hang Seng and the Shanghai Composite, you know, here in China, they saw losses of about 1 to 2 percent as well. So, that is also quite
significant. Something also that caught my attention today that I think traders are hoping that we do not see again is the fact that the circuit
breaker system that we talked so much about in the United States also is intact here in Asia.
We saw these circuit breakers, essentially a pause in trading to allow everyone to regroup and prevent any kind of panic selling a kick in both
South Korea and Japan. That's not something we see that often. And for that to happen here, at least as an observer from the outside in, that certainly
took my breath away.
But, Julia, as we look in the hours ahead, I think everyone here is just trying to find that one nugget of optimism to try to turn this around. But
again, when we see these very daunting numbers from the U.S. as we begin the trading day here in Asia, it's a tough task.
[18:10:00]
CHATTERLEY: Yes, I think your point about the circuit breakers is very important because even with those circuit breakers, these are the losses
that we saw. And while I'm moving far away from using the term panic in the United States, it really did have that feel in Asia. So, this session, as
we crack on over the next few hours today, is vitally important. Marc Stewart, thank you for that.
Now, we'll have much more on Monday's sell-off in Asia later in the show and explain how the unravelling of the once highly profitable Japanese yen
carry trade. I'll explain it. Maybe making a bad situation far worse. We'll come back to it.
For now, in Bangladesh, Prime Minister Sheikh Hasina was resigned after weeks of anti-government protests. Her son says the ex-leader has fled the
nation. Security forces have clashed with thousands of demonstrators taken to the streets of Dhaka. Nearly 100 people were reportedly killed on
Sunday, including more than a dozen police officers.
Protesters stormed the prime minister's residence and they climbed the statue of her father, the leader of the Bangladesh independence movement
that was assassinated in the 1975 coup. They used a sledgehammer to damage the head of the imposing memorial. Military says it will be forming an
interim government.
The country's army chief now says the military is forming that interim government. Hanako Montgomery has more on what is a very volatile
situation.
(BEGIN VIDEOTAPE)
HANAKO MONTGOMERY, CNN CORRESPONDENT (voice-over): Forced out of office, Bangladesh's Prime Minister Sheikh Hasina, in a dramatic resignation Monday
after weeks of deadly antigovernment demonstrations.
Thousands of jubilant protesters stormed her official residence and scenes aired on local TV. Chairs, tables, and televisions looted from what was one
of the most protected buildings in the country.
GEN. WAKER-UZ-ZAMAN, BANGLADESHI CHIEF OF ARMY STAFF (through translator): I have given orders. The army will not fire at anyone. The police will not
fire at anyone.
MONTGOMERY (voice-over): The country's army chief, Waker-uz-Zaman, now calling for the same students who brought about Hasina's downfall to help
them maintain peace, and announcing that an interim government will be formed by the military.
It came after antigovernment protesters were attacked in the capital Dhaka on Monday, according to a CNN fixer in the city.
Dhaka is a battleground. That's how one witness described the chaotic scenes on Sunday as tens of thousands of protesters took to the streets,
some wielding sticks and knives, demanding has seen his resignation. Dozens of people were killed on Sunday alone in a resurgence of protests that have
spread nationwide with violent clashes erupting between demonstrators, police, and ruling party supporters.
Rallies that began last month over quotas for civil service jobs have escalated into widespread fury with protesters demanding Hasina and her
ministers be held accountable for the rising death toll. Protests began in July, led by students angry over hiring rules that would reserve more than
half of civil servant positions which are highly prioritized for select applicants. Students said it's a discriminatory system that would cut down
on job opportunities in a workforce where an estimated 18 million young people are unemployed.
In the clashes that followed, at least 150 people were killed, thousands injured, and about 10,000 arrested. A military enforced curfew and a mobile
and internet blackout attempted to suppress protests, as well as a ruling by the country's Supreme Court to reduce the quotas. But public anger has
only intensified with protests returning in recent days.
UNIDENTIFIED FEMALE (through translator): It wasn't possible to stay at home anymore. Everyone is on the street. Many people who are younger than
me are no longer with us. They've been killed.
MONTGOMERY (voice-over): Hasina blamed her political rivals for the unrest, saying the main opposition party and other adversaries infiltrated
the student movement. The human rights groups have accused authorities of using excessive force to stifle dissent and curtail civil liberties in the
past.
Now, Hasina's 15 straight years in power are over. The student movement celebratory, but what next for the country now under military rule is
uncertain.
Hanako Montgomery, CNN.
(END VIDEOTAPE)
CHATTERLEY: Now, we're just getting word of a suspected rocket attack on a military base in Iraq. Several U.S. personnel are said to be injured.
That's according to a U.S. defense official who said the attack happened at the Al-Asad Airbase. It comes amid high tensions in the Middle East as the
U.S. braces for Iranian retaliation against Israel.
Natasha Bertrand is at the Pentagon for us. Natasha, what more do we know about this attack and where perhaps this rocket was launched from?
[18:15:00]
NATASHA BERTRAND, CNN NATIONAL SECURITY CORRESPONDENT: Well, Julia, we're being told by a Defense Department spokesperson that this was a suspected
rocket attack that was launched at Al-Asad Airbase in Iraq and that it injured several U.S. personnel there. No word yet on just how many U.S.
personnel were injured or the severity of their injuries.
But as far as where it actually came from, that is not yet known either. The statement that we got from the Defense Department is pretty bare bones
at this point while they conduct a post attack assessment of the damage that was done to the base. But, you know, it's safe to say that this was
likely, according to officials that we've spoken to, an attack by one of these Iran-backed militias that have carried out these kinds of attacks
many times before against not only U.S. military personnel writ large across the region, but also against that very air base in Iraq.
And so, right now, of course, tensions are very high across the region. The U.S. military has been preparing for the possibility of a new wave of this
kind of rocket and drone attacks targeting U.S. military personnel in Iraq and Syria in particular because Iran and its proxies are, according to U.S.
intelligence, preparing for some kind of major retaliation against Israel and its biggest backer, of course, the United States.
And so, while they are waiting for all of this, it does appear like one of these groups has gone ahead and launched an attack here. And the last time
that Al-Asad Airbase was attacked was just a few weeks ago, on July 25th. But prior to that, there was a lull in these attacks, following U.S.
strikes on these proxy groups earlier this year.
However, it seems like that these have now started back up. And as we saw earlier this year at a U.S. outpost in Jordan, these attacks can be deadly.
Three U.S. service members were killed in that attack earlier this year, something that the U.S. obviously does not want to see a repeat of, which
is why they have surged additional air defense capabilities to U.S. personnel, U.S. forces across the region. Some, however, some of these
rockets and drones unfortunately do get through though, Julia.
CHATTERLEY: Yes, and this is that situation as you point out. Natasha, we'll continue to watch it. Any further developments on this, we'll bring
them to you. For now, thank you. Natasha Bertrand there.
Now, U.S. Vice President Kamala Harris is preparing to make the biggest decision of her presidential campaign so far, and that's picking her
running mate. She's taking it down to the wire, but sources telling CNN she's now narrowed it down to two top contenders, Minnesota Governor Tim
Walz and Pennsylvania Governor Josh Shapiro.
She met with both candidates on Sunday and also met with Arizona Senator Mark Kelly, who sources say is still in contention for the job. And it
could be just a matter of hours until we hear now with Harris expected to appear with her VP pick at a rally in Philadelphia on Tuesday.
Jeff Zeleny joins us now. Jeff, good to have you with us. I'm actually astonished in a similar way that we saw actually for the former president
in his choice that this hasn't leaked up to now. What's the difference between these two men and what difference will it make to her campaign
ultimately?
JEFF ZELENY, CNN CHIEF U.S. NATIONAL AFFAIRS CORRESPONDENT: Well, Julia, I think only Vice President Harris can answer the true difference because one
of the big factors here, perhaps the most important factor, is the chemistry. The chemistry that she found with these two governors and
perhaps Senator Mark Kelly as well.
But look, Minnesota Governor Tim Walz, let's start there. He is from the middle of the country, Minnesota, not exactly a swing state, but it's right
next to Wisconsin, which absolutely is at the center of all of this, and he served about 10 years in Congress, he was a high school football coach, a
social studies teacher, he was in the National Guard. But he's been Democratic governor there for -- he's just in his second term now.
So, he is a progressive. There's no question about it. But he speaks in a bit of a folksy way. And in fact, he is the one who coined the term weird.
He said that to J. D. Vance and Donald Trump, of course, the Republican ticket, they act weird. That was widely -- it went viral among Democrats
and everyone has started using it. So, he certainly gained some attention because of that.
Pennsylvania Senator Josh Shapiro. Of course, he comes from one of the most important battleground states. Those 19 electoral votes. So, important to
Democrats in November. He's very popular there. Has an approval rating of more than 60 percent or so. He is the governor. He's been an attorney
general. He has a relationship with Vice President Harris. So, only she knows, sort of, who fits the bill, if you will.
I'm thinking back to 2008, when then-Senator Barack Obama said he had a lot of good options, and it was a coin toss, essentially. Well, we know he
picked Joe Biden, that set things into motion. Had he picked at the time, Virginia Governor Tim Kaine, think of how different this would have been.
So, my point is, Vice President Harris' choice here could set the stage for Democratic politics, at least, perhaps even more than a decade, given the
fact that she's running for her first term. But again, she intends to announce this on Tuesday morning in a video message to supporters, and
she'll be appearing at a rally Tuesday night in Philadelphia.
[18:20:00]
CHATTERLEY: And we shall see. Nice to have good options. Jeff, I think that's the takeaway from this. Jeff Zeleny, great to have you with us, sir.
Thank you.
ZELENY: You bet.
CHATTERLEY: All right. Straight ahead, powerful (ph) market poses new opportunities to jump into stocks perhaps, in tech stocks in particular,
Dan Ives of Wedbush joins us to give his take.
Plus, the dangers of Debby counting the cost as the tropical storm carves its path through the Eastern United States. Stay with us.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back. I'm returning to our top story once more. A horrible start to the trading week across global markets and no real
assurances that the mood on Tuesday will improve. U.S. stocks finishing their worst session in two years with tech stocks in particular getting
particularly beaten up. The NASDAQ falling more than 3.5 percent.
The stock losses in Asia were substantially worse, too, with tech again bearing the brunt. The Nikkei plunging more than 12 percent for, its worst
session in some 37 years. Japanese stocks being pressured by the spike higher in the value of the Japanese yen versus the dollar as the Central
Bank tries to lift interest rates for the first time in decades. Many also pointing to the apparent unwinding of what's known as the Japanese carry
trade as a source of market instability.
Now, Cedric Chehab joins us now. He's the global head of country risk at BMI and he joins us from Singapore. Cedric, great to get you on with us.
Thank you for waking up early as well. Just explain what you're seeing over in your part of the world. There was a shakedown across a number of
markets, Japan, Taiwan, South Korea, but the carry trade unwind is also an important feature that we need to talk about, I think.
CEDRIC CHEHAB, GLOBAL HEAD OF COUNTRY RISK, BMI: Julia, thanks for having me. So, this really was a perfect storm of some macro market and
geopolitical shocks, which all hit at the same time. And at the start of it, to some degree, was the hawkishness by the Bank of Japan, which
imploded the carry trade. And what the carry trade is essentially investors borrowing money in Japan, where interest rates are low and investing them -
- that money all around the world.
And what happened was, as the Bank of Japan became hawkish and the yen started to strengthen, a lot of these investors started to exit their
positions and sell out all at the same time. So, that caused a spike in volatility and a lot of downside pressure on global stocks as well as
global assets.
[18:25:00]
And in particular, as you mentioned, the yen and Japanese stocks, as money came back in, it pushed the value of the yen up. Lots of demand for yen as
they have to close their positions. But also, a strong yen is bad for Japanese stocks, given that lots of Japanese companies they earn earnings
from abroad. A lot of their profits come from abroad. So, a stronger yen makes their earnings outlook in Japanese yen terms weaker.
CHATTERLEY: Yes. It's --
CHEHAB: Now, if you add -- go ahead, please.
CHATTERLEY: Go on, add in, but do it quickly.
CHEHAB: No. So, I just wanted to say then if you add in the U.S. economic data, which came out weak, particularly the labor market, that caused
uncertainty for global markets.
CHATTERLEY: It certainly did. Can I just ask my team to pull up the dollar yen exchange rate, please? Because you were talking about this, and I think
this is really important. And you use the word implosion. But when I look at the strengthening of the yen that we're seeing, it's a fraction of the
weakness that we've seen over the course of many months.
So, how much more unwinding of the borrowing that you're talking about there in the yen or the Japanese interest rates that have been so low could
unwind here because that's going to have profound implications for the money that's been invested elsewhere in the world, including the United
States? That's not the chart, but we'll work on it. It's a longer-term chart. I'll get it for you as soon as we can.
CHEHAB: As you mentioned, there's been several years of that carry trade, which has been going on. And it's unclear as to how much money would or
will return to Japan. But I think the size of the move over the past few weeks or so surprised everybody. And part of this might be the result of
lower liquidity during the summer months. And that helps to explain the magnitude of the volatility.
Now, it's hard to say exactly where the yen is going to end up with so much volatility over the short-term. But I think what we've likely seen is a lot
of asset managers and investors are now going to be very cautious and unlikely to put the same type of trade on at the same size and magnitude
over the coming quarters.
So, I think we're probably not going to see the yen -- we're probably going to see volatility over the short-term, but I don't think we're going to see
that carry trade coming back in the short-term.
CHATTERLEY: OK. That's important to note. You also mentioned, and I think it's very right to point it out, these are summer markets, what we call
liquidity thins. There's a lot of investors that are on the beach and it makes things far more volatile than perhaps it would have done. And we can
throw in geopolitical risk there as well, Cedric.
What are you advising clients at this moment as they look around the world and they consider all the things that we've discussed, what are you saying
to them at this moment?
CHEHAB: So, we're not hit -- we're not hitting the panic button just yet. And we're telling our clients that this is volatility. Sure. It has been
much more aggressive than we would normally expect. But just for context, corrections between 5 to 10 percent are normal in a bull market, even 15
percent. And this -- you know, considering that equity markets in the U.S. We're up 20 percent this year. So, this is an unwinding of some of that
bullish momentum. And there's also a lot of pickup in seasonal volatility between July and October. So, even though this has been very painful, this
type of corrections are common within bull markets.
We'd also say that the economic backdrop isn't perhaps as bad as people were thinking. We recently got the U.S. services PMI and that showed that
the economy or private sector was back in expansion, that was broad, and it helped to mitigate some of the risks from the manufacturing.
And the last thing is that the Fed has significant firepower if it needs to. It has lots of options. It can provide forward guidance. It can provide
liquidity into the market. And it could also potentially cut if it needs to in terms of -- if in the event of an emergency and if they see that they
feel that credit markets and credit spreads are getting out of hand.
CHATTERLEY: Yes, and that's the way you point to, because we didn't see that today in the credit markets. And I think that is very important. I
want to disagree with you on something, but I can't because I agree with you. Sir, great to get you on. We'll get you back.
CHEHAB: Thank you.
CHATTERLEY: Cedric Chehab there, the global head of Country Risk at BMI. Now, this profit seasons mixed earnings for big tech are also contributing
to the intense selling pressure we're seeing on Wall Street and around the world. That said, many tech names are still up strongly this year. Context
is key. NVIDIA, which remains up more than 100 percent since January. Even if we are, what, a third off the highs. The NASDAQ still up almost 10
percent despite the pullback that we've seen.
Dan Ives, the managing director of Wedbush Securities believes the bull market case of big tech remains in place despite the ongoing sell-off. And
he joins us now from Tokyo. Wow. Dan, you're in the right place for what is quite a lot of volatility and serious pressure there. What are you telling
clients and how nervous are they?
[18:30:00]
DAN IVES, MANAGING DIRECTOR, WEDBUSH SECURITIES AND SENIOR EQUITY RESEARCH ANALYST, WEDBUSH SECURITIES: Look, I think it's probably as nervous as I
think clients going back on the weekend and today. How about (INAUDIBLE) lows in terms of March to give some context?
Look, Julia, we're hand holding through this. We focus on this tech bull market that we see continuing for the next few years. It is nerve-wracking,
it is a white-knuckle moment, but this is not time to hit the exit button. We are really -- what I view as the focus on the winners, on what I'll
almost call bargain sale prices.
CHATTERLEY: The Economist had an article this weekend and I read it as one of the first things I read on Saturday morning and it was entitled, Is the
A.I. Bubble Bursting? And I thought, wow, Monday could be really exciting. And here we are. There are constraints, Dan, to your point, you're not
hitting the exit. When do you look at some of these valuations in the kind of stocks that you're talking about here, I think the bigger names and the
ones are more sure about and say, this is actually a buying opportunity?
IVES: I mean, that's over here in Asia. I mean, if you look at the man, this is a once in a 40-year cycle, the A.I. revolution. And the macro
jitters clearly cause nervousness, but that's a trillion dollars of incremental cap back, essentially building out a fourth industrial
revolution. That's why godfather of A.I. (INAUDIBLE) NVIDIA, Microsoft, Apple, Alphabet, Amazon, names like Palantir and others, and even
cybersecurity. That's how we navigate.
25 years covering tech, it's these types of periods, how we've made our best calls, where many others, they just hit the exit, and they go under
the covers, and they're afraid.
CHATTERLEY: There are a couple of other headlines, I think, that didn't help. One, huge investor, Warren Buffett, selling out around half of his
Apple position. Let's be clear, he still has a big Apple position remaining. But people were suddenly like, oh, he might prefer cash at this
moment. The other thing was reports of a delay in some NVIDIA products that could also create delays down the line.
Dan, how did you view both of these things? And again, what did you tell clients when I'm sure they asked?
IVES: Yes. And again, that's not what you want to see. Buffett's selling half his position. He's obviously the GOAT, you know, in terms of
investing. Still number one position, huge supporter of Cupertino. But look, these valuations have gone to a point where some -- especially value
investors like a Buffett, they will take chips off table.
Look at Apple's quarter. You don't sell going into an A.I. driven super cycle for Cupertino. You look at NVIDIA and some of the words about delays
a few months, that's breadcrumbs relative to the broader point. But look. the haters are going to come out. I haven't heard from any of the bearers
the last 18 months. I was actually getting a little worried. It was good to hear from them. We're going to go through some volatility, but I believe at
the end of this rainbow, bull market.
CHATTERLEY: How much lower could we go down? Because it's not just about tech stocks. As I was just mentioning earlier on the show, there are a
whole host of things. Geopolitics, U.S. politics, U.S. economic concerns, in addition to the tech stock sell-off that we're seeing at this moment. We
could call it profit taking. How much lower could we go? And at what point would you then go, actually, this is making me nervous versus we're still
looking at buying opportunities?
IVES: Yes, to me what would make me nervous is if the fundamental stories are falling apart, but they're not actually coming at earnings They're
actually -- look, we're going to get to a point. Could you go 3, 5 percent lower? It's possible You got 6 trillion on the sideline. And right now, you
are now going to start to see -- I'm starting to see exhaustion from a selling perspective, more people calling me looking to buy than sell. We
are getting near to what I've used, this white-knuckle moment could be ending.
CHATTERLEY: Always fantastic to get your perspective, Dan. And the fact that you're being called with more people asking for buying opportunities
than selling is a serious indicator for me. Good to chat, sir, and safe travels home when you come back.
IVES: Thank you.
CHATTERLEY: All right. U.S. President Joe Biden holding talks with his National Security Team. As U.S. Officials admit, they're not sure how or
when Iran will might retaliate against Israel. The latest next.
(COMMERCIAL BREAK)
[18:35:00]
CHATTERLEY: Welcome back to "First Move" with a look at more of the international headlines this hour. Despite the reported nationwide arrests
of hundreds, tensions are still high in the U.K. after a weekend of far- right protests. More demonstrations and counterprotests happened Monday, including this confrontation.
In Plymouth, the unrest was sparked by anti-immigration misinformation after the stabbing deaths of three children last week. Police took the
unusual step of naming the 17-year-old suspect and confirmed he was born in Wales.
A spectacular new eruption from Italy's Mt. Etna disrupted some flights this weekend to and from Sicily. Europe's largest and most active volcano
produced a huge ash cloud followed by fountains of lava. People living near the volcano swept up the ash, but city officials say they do not have the
resources to keep up with the mess.
North Korea claims it's sending 250 tactical ballistic missile launches to its border with South Korea. The announcement took place at a ceremony
attended by Kim Jong Un. He praised the new equipment, alleging it was made with North Korean technology. That's according to state media. Kim says the
delivery is just the first stage of a planned missile force at the border.
And U.S. President Joe Biden has been locked in crisis talks with his National Security Team as they await possible retaliation from Iran. An
airbase housing U.S. troops in Iraq was already attacked on Monday, and multiple U.S. officials are telling CNN that Iran's response to the killing
of a top Hamas commander in Tehran is expected soon, perhaps even within the next 24 hours.
Iran's foreign ministry says it doesn't want regional war, but adds it must take deterrent action after a series of high-profile assassinations that it
blames on Israel. This as Israeli Prime Minister Benjamin Netanyahu's doubled down, saying that Israel will stand against Iran on quote, every
front and in every arena.
Jeremy Diamond joins us now from Haifa in Northern Israel. Jeremy, good to have you with us. It's a case now of when not if and it has been for a
number of days. How are people there preparing? And what are they saying about the risks?
[18:40:00]
JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, Julia, it certainly appears that we are now within the window for a potential Iranian attack
against Israel. Exactly how large that window actually is, is one of the questions. The other question is exactly how wide scale, how significant
will this Iranian attack be? And therefore, what kind of response will it draw from Israel?
At this moment, as we face this tension, this uncertainty, it is also an opportunity for Israeli military officials to begin to prepare, as they
have been over the last few days, for the potential of an Iranian attack, for the potential of attacks by Iranian proxies in the region as well. And
they are -- what they are also doing is preparing for what those retaliatory options that Israel will have at hand should that Iranian
attack actually unfold.
And this is a potentially very, very slippery slope that we are heading down, which is why there has been a flurry of diplomatic activity in the
region over the course of the last several days to try and de-escalate tensions, sort of try and get Iran to reconsider its vows to retaliate
against Israel. So, far, those efforts don't appear to be successful.
And what is instead beginning to take place is efforts by the United States in particular to try and reassemble that international coalition that
helped to defend Israel from that barrage of 300 drones and missiles that Iran fired back in April.
And we know that those efforts involved not only actual shootdowns by the United States, the United Kingdom, but also radar assistance from several
Arab countries in the region as well. And so, efforts to reassemble that coalition are very much underway. That's where we see General Erik Kurilla,
the top U.S. general in the Middle East, visiting the region, meeting with top Israeli military and defense officials today.
But as you said earlier, the Israeli prime minister is vowing that there will be a quote, very heavy price to pay should Iran carry out that attack.
And so, for now we are in wait and see mode as all of these preparations, as all of that diplomacy still continues behind the scenes. Julia.
CHATTERLEY: Yes, and we'll see the success of that diplomacy, perhaps when we see the scale of what this looks like. Jeremy Diamond in Haifa for now.
Thank you for that.
All right. Coming up after the break, Tropical Storm Debby moves from state to state turning car parks into lakes. Take a look at that. We'll have the
latest from Florida and a full forecast right ahead.
(COMMERCIAL BREAK)
[18:45:00]
CHATTERLEY: Welcome back to "First Move." Hurricane Debby is now a tropical storm hitting parts of the southeast United States, and it remains
destructive and deadly, claiming the lives of at least four people. Other states are now bracing for this slow-moving superstorm, which is already
producing flooding at historic levels.
Isabel Rosales has more from Savannah, Georgia, where this city alone could get a month's worth of rain in a single day.
(BEGIN VIDEOTAPE)
ISABEL ROSALES, CNN CORRESPONDENT (voice-over): Pounding rain, whipping winds, powerful currents.
UNIDENTIFIED MALE: The water hasn't quite made it up to the (INAUDIBLE).
ROSALES (voice-over): Tropical Storm Debby no longer hurricane after making landfall this morning as a Category 1 storm. The Big Bend of Florida
seeing first impact.
GOV. RON DESANTIS (R-FL): We have seen significant storm surge. We have seen inundation. We have seen and will continue to see flooding in very
parts of the State of Florida.
ROSALES (voice-over): But Debby still bringing life-threatening storm surges and rain as it crawls inland. More than a month's worth of rain has
already fallen in Florida, triggering at least 10 flash flood warnings.
DESANTIS: There's going to be a lot of water that's going to be dumped throughout the state and we're going to see effects of that. Not just
today, but in the ensuing days.
ROSALES (voice-over): The rain will likely be Debby's biggest danger. Strong winds and potential tornadoes will continue to be a threat. The
first confirmed death from the storm, a Florida teen crushed by a tree that fell on his mobile home. A tractor trailer driver who lost control on a wet
roadway near Tampa, plunging off a bridge and into a canal is the second death blamed on Debby's severe weather conditions.
JAY MELDER, SAVANNAH, GEORGIA CITY MANAGER: This is a once-in-a-thousand- year potential rainfall event.
ROSALES (voice-over): Debby is slowing down in speed. And officials expressing concern over the amount of rain forecast as it continues into
Georgia and South Carolina. Residents in Savannah bracing for unprecedented flooding where they could see 20 inches of rain in two to three days.
CHESTER ELLIS, CHAIRMAN, CHATHAM COUNTY, GEORGIA: This type of rain hovering over us, coming with the intensity that they tell us that it's
coming, it's going to catch a whole lot of people by surprise.
ROSALES (voice-over): As Florida continues to clean up, the storm did wash up one rather unusual find, $1 million worth of cocaine near the Florida
Keys, according to the U.S. Customs and Border Protection.
(END VIDEOTAPE)
CHATTERLEY: Apparently, a good Samaritan reported there. I think that's an act of honesty not to be sniffed at. I couldn't help myself there. Chad,
don't talk about the drugs. Talk to us about Debby's progress because this is very concerning, please.
CHAD MYERS, CNN METEOROLOGIST: You could almost walk as fast as Debby is moving right now. Certainly, a jogger at the Olympics would be able to pass
Debby up completely. So, this is the problem we're having right now is that the rainfall, even though it has lost a lot of intensity and so has the
wind, we're down to 50 miles per hour, 80 kilometers per hour. So, we've lost a lot of that. But what we haven't lost is the amount of rain, even if
it's only, let's say, a centimeter an hour. The problem is it'll be for 48 hours.
So, yes, you're looking at a half a meter of rain in some spots. So, you're looking at 18 inches of rain possibility here. And yes, as every storm
comes on shore -- and we can see them here, every storm comes on shore could be rotating in every place that you see a purple box, if you do,
there's a tornado warning. Good news is, right now, only tornado watches, which means that could happen right now. We don't think they are happening
because none of these really are rotating significantly. One there near Brunswick looked like it had a little bit of a hook on it, but we'll have
to see what happens there.
There will be an awful lot more rainfall to come. If you've already seen a half a meter of rain, and that's what these people here in Lake City,
Florida have picked up, you're going to get what's called a flash flood emergency. Flash flooding is happening and it's happening to big cities,
big towns, lots of people that are in the way.
We have these scales, one through five for severe weather, one through four for flash flooding potential. And for the next two days we have a four and
a four, where at least a half of a meter possible in some of these areas running up hills, on top of the hills, and then all of a sudden, it rains
up there and then, obviously that all has to try to go back down into the ocean, and that's not going to happen willingly when the wind is off the
ocean, pushing that water, trying to keep it in the river. Where does it go? Well, it goes up.
And Julia, by the time we work our way into the weekend, just for you in New York, this thing could be heading all the way up there. That's what the
European model has going for it. Some models are way to the west. Some are out to the ocean. But yes, this thing could spread rain all the way into
New York in Boston by the weekend. Julia.
CHATTERLEY: Groan. Let's hope those weather models are wrong, Chad. And a tough few days, obviously, for everybody there. So, we wish everybody well
and safe. Thanks for joining us. We'll see you tomorrow. Chad Meyer's there.
Now, just ahead, a slightly disappointing end to an incredible Olympic run for American gymnast Simone Biles. We've got all the details, next.
(END VIDEO CLIP)
[18:50:00]
CHATTERLEY: Welcome back to "First Move." Now, shrugging off a slip on the balance beam and some penalties. American legend Simone Biles finished the
summer games without another gold medal. She told reporters in Paris that she's still proud of herself. And so she should be. She's the most
decorated American Olympic gymnast of all time. Now, with 11 Olympic medals, including seven gold.
With more of the Olympic action, Don Riddell joins us now. She proves she is the GOAT, but also, she's a little bit human too. And that makes us
lovers -- love her even more, I think.
DON RIDDELL, CNN WORLD SPORT: Yes. You know, I mean, some people might try to spin this as her Paris Olympics ended in disappointment or ended with a
defeat. I don't think we can look at it like that. When you think about what she's achieved, what she's accomplished, how old she is, 27 years old
for a gymnast, although it's very young, in my opinion.
And you think about what she went through in Tokyo with the twisties and the mental health issues and stepping away from the sport, this has been an
extraordinary comeback in gymnastics for her to win three gold medals and a silver. The silver coming on the floor in Paris on Monday is just
absolutely extraordinary.
And this is a pretty extraordinary image as well. It was the Brazilian Rebeca Andrade that took the gold medal in that floor event, you're looking
at Biles and Jordan Chiles, another American who took bronze, bowing down and saluting her.
And this is a hugely significant moment because this is the first time in the sport of gymnastics at the Olympics that we've seen three black
athletes together on the podium. Just a great moment in more ways than one. This is what Simone had to say about it.
SIMONE BILES, SILVER MEDAL, FLOOR EXERCISE: She's queen. And first, it was an all-black podium. So, that was super exciting for us. But then, Jordan
was like, should we bow her? And I was like, absolutely. So, we're like, are we going to do it now? And then, that's why we did it.
But she's such an excitement to watch. And then, all the fans in the crowd always cheering for her. So, it just -- it was just the right thing to do.
(END VIDEO CLIP)
RIDDELL: It was Monday at the Olympics and it was Mondo's day at the Stade de France. You're looking at this pole vault legend. At the age of 24 he
won his second gold medal. And having done that, he then broke the Olympic record, vaulting 6.1 meters. And then after that, he broke his own world
record with a vault of 6.25. Absolutely incredible. This young man still has so much to offer the sport, no doubt, but one of the journalists
afterwards asked him what is going to come next. This was his answer.
[18:55:00]
(BEGIN VIDEO CLIP)
MONDO DUPLANTIS, WINS POLE VAULT GOLD FOR SECOND STRAIGHT OLYMPICS: Probably one of the moments where I care the least about the future is
right now. I'm soaking up this right now. I mean, how could I care about anything else except this? I mean, when things align the way that they did
for me tonight, then it's like, you got to enjoy those kinds of things. And I try to enjoy it as best as I can, honestly. And I'm going to enjoy the
heck out of it tonight. Trust me, you don't got to worry about that.
(END VIDEO CLIP)
RIDDELL: I'm sure he will have a good time, Julia. Interesting that question was asked because just the other day, Simone Biles said, the
question the athletes hate the most is what are you going to do next? Like, just let them enjoy the moment. And Mondo Duplantis sounds like he's doing
exactly that.
CHATTERLEY: Yes, keep winning. I hope. But that image for me of the three women is just so powerful, such grace. Look at that. Such power. It gives
me goosebumps. Go girls. Awesome job. Don Riddell, thank you so much for that.
And that just about wraps up the show. Thank you for joining us. We'll see you tomorrow.
(COMMERCIAL BREAK)
[19:00:00]
END
