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First Move with Julia Chatterley
Israeli Cabinet Approves "Next Phase" of War; Israel's Possible Ground Incursion in Lebanon; World Leaders Calling for De-escalation; U.S.- Based Troops Put on "Prepare to Deploy" Orders; Hurricane Helene Kills at Least 128 Across U.S.; Nearly 200 People Killed in Nepal Caused by Landslides and Floods; Almost 200 People Dead in Nepal's Landslides; Hezbollah Vows to Keep Fighting; Queen Maxima on Improving World's Financial Health; China's Stock Market Rally. Aired 6-7p ET
Aired September 30, 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: -- before setting up what they called a sniper's nest near Trump's West Palm Beach golf course. Thankfully, he was
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The news continues on CNN with one Mr. Wolf Blitzer right next door in a place I like to call The Situation Room. I'll see you tomorrow.
JULIA CHATTERLEY, CNN ANCHOR, FIRST MOVE: Julia Chatterley. And wherever you are in the world, this is your "First Move."
And a warm welcome to "First Move." And here's today's need to know. Israel's national security cabinet approving the next phase of war with
Hezbollah ahead of a widely expected ground invasion. Almost 200 people have lost their lives in landslides and flooding in Nepal. Stock
simulation. Chinese markets have their best day in 16 years following a host of stimulus measures from Beijing. And a queen's quest. Her Highness
Queen Maxima of the Netherlands on her two-decade effort to foster financial inclusion around the world. That conversation and plenty more
coming up.
But first, the Israeli military preparing for a possible ground incursion in Lebanon. The Israeli National Security Cabinet approving the, quote,
"next phase" of its war with Hezbollah. Israel has already begun raids over the border and Israeli artillery units are firing into Southern Lebanon.
World leaders, meanwhile, are calling for de-escalation. Just take a listen to U.S. President Joe Biden earlier.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Israel may be now launching a limited operation into Lebanon. Are you aware of that? Are you comfortable with their plan?
JOE BIDEN, U.S. PRESIDENT: I'm more aware than you might know, and I'm comfortable with them stopping. We should have a ceasefire now.
(END VIDEO CLIP)
CHATTERLEY: Israel has also ramped up attacks against other Iran-backed militants, including new strikes targeting the Houthis in Yemen. All this,
of course, following Israel's assassination of the Hezbollah's leader last week.
Jeremy Diamond is near Israel's border with Lebanon. And, Jeremy, we can already hear the artillery fire behind you. Just describe what it's been
like for the last hour or so there, and obviously we're waiting for this potential ground invasion.
JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, Julia, over the course of the last few hours we have been hearing those percussive booms of
artillery firing into Southern Lebanon, and those are the steps that a modern military like Israel's would be taking in anticipation of a likely
ground offensive, and that is indeed what the Israeli military is preparing for, as you can continue to hear that artillery firing into Southern
Lebanon.
What they are doing is they are, quote, "softening the ground." That's the term that's typically used when you fire artillery into enemy territory in
preparation for those ground troops to move in. And of course, it is not the only thing that we are hearing that's leading us to believe that a
ground offensive is likely very much imminent.
In addition to that, that an area along the border, just north of us, has been shut down, declared a closed military zone. And so, we are also seeing
tanks, armored personnel carriers, about 100 vehicles alongside the highway leading north towards the Lebanese border.
And so, as you hear those artillery shells continuously being fired into Southern Lebanon, it is just a reminder, not only of the fact that Israel
is clearly ramping up its operations in this area, but of course, also of the impact that this war is having already on civilians inside of Lebanon.
About a million Lebanese civilians have been displaced from their home so far, according to Lebanon's prime minister. We are seeing, of course, as
hundreds of thousands of Lebanese have been fleeing from Southern Lebanon, as well as from the eastern Beqaa Valley. But also, of course, even just
within the Lebanese capital of Beirut, the Dahiya, as it is known, as people are fleeing from that area to other parts of that city.
Tonight, the Israeli military once again calling on Lebanese residents in parts of Southern Beirut to leave their homes as they continue to carry out
more airstrikes in that area. But now, of course, the question is will they actually carry out that ground offensive? And how quickly could we actually
see it?
Today, we heard the Israeli defense minister, Yoav Gallant, saying that Israel will employ all of its capabilities. And he was speaking to infantry
ground troops, and he said, that includes you. Julia.
CHATTERLEY: Jeremy Diamond there for us tonight. Thank you so much for that report. Let's talk more about this now. Joining me is the Lebanese
economy and trade minister Amin Salam. Minister, good to have you with us and we appreciate your time. I know it's the early hours of the morning. As
we were just hearing there, can you just describe to me what it's like as you and your fellow citizens await what comes?
[18:05:00]
AMIN SALAM, LEBANESE MINISTER OF ECONOMY AND TRADE: Well, thank you, Julia, for having me on. Certainly, Lebanon is under total siege. Beirut
tonight is under fire, and the whole nation is in crisis mode. Just few minutes ago, a few hours ago, southern parts of Beirut, probably a few
kilometers from where I am now, have been bombed heavily with a lot of victims, a lot of, you know, chaos in the city, and a lot of displaced
people.
We are nearing, the number, the big number of a million displaced people in Lebanon. And despite the fact that the Lebanese government today on the
highest level, the prime minister announced that the government is totally willing to deploy the army, the Lebanese army to the south and fully
implement 1701.
Yet, we see an escalation which defies this kind of diplomatic approach that the Lebanese government is working very closely with the U.S.
government. Just few minutes ago, on your show, we've heard President Biden as well in favor of an immediate, you know, ceasefire. However, as all this
is going, we have tanks on the border. We have airplanes, you know, bombing the city.
CHATTERLEY: And I do want to talk about the economic consequences of what we're seeing, Minister. But as you rightly point out, the Lebanese
government is a player in this situation. Hezbollah is another player, and they also have a choice here. They can choose peace or war.
Do you believe that they're in a situation today where they would agree to a ceasefire, particularly in light of what may happen over the coming hours
and days?
SALAM: Well, I mean, today was -- I mean, the most positive message today that came out of the Lebanese government was a very crucial meeting that
took place between our prime minister, the prime minister of the country, and the speaker of the house, President Berri, who is a very close ally in
politics to Hezbollah and is in close communication.
And the prime minister, after his meeting, with the speaker of the house, came out with this very positive message about the willingness of the
Lebanese government, and that includes Hezbollah, because when the message is coming from the speaker of the house, that means that he has been in
discussions with Hezbollah.
There was a very clear intention to -- you know, to go towards a ceasefire with a commitment from the Lebanese government to send the Lebanese army
and do a full execution of the 1701. So, we were building on that, but a few hours later, we saw this, you know, unbelievable -- or it was actually
unexpected escalation on the Israeli side that is now taking place as we speak.
CHATTERLEY: Minister, do you believe that if there is some kind of ground incursion into Lebanon by the Israelis that it will be limited in scope, or
do you fear what we've seen in Gaza and the fallout and loss of life there?
SALAM: I mean, after what we have seen, after what we have experienced for the past year, it's very difficult to really make this conclusion.
However, on the Israeli side, they have been very particular in sending this message that the fight is not against the Lebanese people and that
their missions and their targets are very specific. I mean, that has been demonstrated by maps, that has been demonstrated by the way they were
targeting everything.
So, a ground invasion, nobody can predict really what the expectations would be. But there has been, I would say, in the past 48 hours, hundreds
of messages from the Israeli side that it will be very limited. It will be very calculated, and the objective is to secure the zone that the Israelis
see comfortable for the north part of Israel to return for -- to a normal life.
CHATTERLEY: Minister, the truth is, and you quite rightly said, as the prime minister said, you believe you have 1 million people now displaced as
a result of the recent violence. You have an economy that's been in emergency mode for three years, if not more. The infrastructure has already
been downgraded.
What price will the people pay for this violence in a situation where half the population is already considered below the poverty line? What price?
[18:10:00]
SALAM: It's a very heavy price, Julia. It's a very heavy price. And I mean, we were suffering -- as you said, the economy has been suffering for
over three years. You know, the economic situation, the conditions, the social situation of people has been, you know, in crisis mode for three
years.
So, the war added another layer of challenge, added another layer of desperation and difficulty on the economy, on the GDP, on people's lives,
on employment. We have tens of villages, we have hundreds of thousands of people today on the streets unemployed. There's going to be short-term and
long-term negative implications for sure on the economy.
And early on, I set the alarm, early on, a year ago when the war started in Gaza that the Lebanese economy cannot bear a war and cannot bear now an
escalation. So, you know, the name of the game today is a regional deal, which we hope Lebanon would be part of. Today, even we got more support
from the State of Qatar that they are working, as well with other Arab countries, to reach a ceasefire.
So, we need to capitalize on that diplomatic approach with the positive messages we're getting from the United States and make it happen. Because
other than that, the country will be going into a very dark place. We will be going into the unknown. And that's not what we want to see happening in
Lebanon.
CHATTERLEY: It's a difficult question, Minister, but I want to ask it. Do you believe -- and I've already phrased it differently -- that Hezbollah,
at this moment, is prepared, ready, and willing to prioritize the Lebanese people above all?
SALAM: I hope they are. I hope they are. It's a very historic moment for Hezbollah as a political party as well. You know, they are part of the
government, and it is a very critical moment for Hezbollah, for all the players in Lebanon to really think very carefully about the government, to
think about where do we need to take the country, and to think about what the country can handle.
Today, unity is the big title in the country. We're asking for unity. We're asking for time to help all the displaced people, because pushing further
into an escalation will definitely, again, I repeat that, will take Lebanon to the unknown and will make -- will take us probably to the point of no
return, a very difficult place on all fronts on the economy, on the people on the diplomatic channels, because the window is very, very tight to get
to a solution. If we don't do that within the next few days to a week, I think it will be too late.
CHATTERLEY: Is enough pressure being applied, Minister, on Hezbollah, by the International Community, by all and on all sides, in your view?
SALAM: In my own view, if I'm doing, you know, a very wide political reading, starting with the United Nations General Assembly meetings,
watching all the world leaders, including the Iranians, talk about the war, and the message was very clear, that nobody wants the war. Even the Iranian
regime said, we do not want the war. We do not prefer -- the president -- the Iranian president was very clear.
So, I think there has been enough diplomatic messages on the highest level of the government in all countries that are involved on this issue that a
war is not in the favor of anyone, and nobody really wants to go there.
So, if those messages are not enough, I don't know what would be enough to avoid, you know, an escalation that will have, you know, unbelievable
negative consequences on Lebanon, on Israel, on Palestine, and on the entire region.
CHATTERLEY: Minister, I think many would agree with that message. We wish you safe and well tonight, that you and the Lebanese people. The Lebanese
Minister of Economy and Trade there, Amin Salam.
SALAM: Thank you.
CHATTERLEY: Thank you, sir. Now, while the United States is still hoping for a diplomatic solution, it's begun readying troops based in the United
States. The Pentagon's saying they've been given, "prepared to deploy," quote, orders to the Middle East. However, a spokesperson wouldn't give
specifics, just that they cover a wide range of capabilities and missions.
We're joined now by Oren Liebermann at the Pentagon. What kind of wide range mission and capabilities, Oren, are we talking about? What are the
options for the United States here?
OREN LIEBERMANN, CNN PENTAGON CORRESPONDENT: A number of different possibilities. Of course, the two that would be most critical in a time
like this would be troops needed to carry out an evacuation of Lebanon. Of course, that has not been ordered yet, but the planning has gone in and has
been put in pretty much since the very beginning of the war back on October 7th.
[18:15:00]
So, that would be one role we'd look at as a possibility. Another, of course, would be air defenses, not only for Israel, should it face another
barrage coming from Iran. And it's worth noting that there were U.S. troops that played a critical role there, both on the ground, intercepting some of
those launches as well as U.S. Destroyers in the Eastern Mediterranean Sea intercepting some of those launches from Iran.
So, you could see that, air defenses of Israel, air defenses, and a forced posture change for U.S. forces in Iraq and Syria and elsewhere throughout
the region. So, that would be another critical role. So, those would be the key spots we would be looking at for a possibility of prepare to deploy
orders. And generally, what that means is that U.S. troops are given a heads up that they might need to go within a very short period, 24, 48
hours, something like that.
So, the Pentagon saying some troops have been placed on those prepare to deploy or PDDO orders. In addition, the Pentagon also saying that several
thousand troops have been sent to the region as part of fighter squadrons, additional fighter squadrons that have gone in of F-22s, F-15s, A-10s. Now,
those were already scheduled to deploy. The reason they are now additional is because the squadrons they were set to replace will stay in the region
for now. They have also taken part in air defenses throughout the region.
And should it be needed, should we see a massive uptick in attacks on U.S. forces in Iraq and Syria, we could see those fighter squadrons step in once
again. Again, should it be needed. So, the Pentagon preparing for a number of different contingencies here.
And then, of course, is the forces that are already there. A carrier strike group operating in the Gulf of Oman, an amphibious ready group operating in
the Eastern Mediterranean Sea, that would be crucial should an evacuation, a NEO, Noncombatant Evacuation order be given from the State Department.
And then, there's another carrier strike group headed east through the Atlantic. Right now, it's scheduled to go to European command, but it too
could take part should the situation deteriorate massively. Of course, the State Department has already evacuated some non-essential personnel and is
urging U.S. citizens in Lebanon to get out while there are still commercial flights going. The situation incredibly volatile and incredibly sensitive
as the U.S. still pushing for a ceasefire.
We heard some optimism. It's almost crazy, Julia, to think that less than a week ago we heard the -- we heard U.S. officials say they basically had a
ceasefire ready to go and in place, and yet, look at where we are right now, that ceasefire seems, at least from where we're sitting, a very dim
possibility at the moment.
CHATTERLEY: Yes, and the United States sending a very important verbal message as a result of this to the region too, which matters also. Oren,
great to have you with us. Thank you. Oren Liebermann there from the Pentagon.
OK. Coming up for us, communities in desperate need of rescues, water and food days after the powerful storm hit lean, hit parts of the United
States. We'll have the latest from North Carolina after this.
(COMMERCIAL BREAK)
[18:20:00]
CHATTERLEY: Welcome back. In the Southeast United States, damage caused by Hurricane Helene has been described by some as post-apocalyptic. The storm
left a trail of devastation. It's responsible for at least 128 deaths across six U.S. states.
The mountains of Western North Carolina were especially hard hit. Flooding has washed away roads and wiped some communities from the map. Hundreds
remain unaccounted for too. Isabel Rosales has more. from North Carolina
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: Here's your first car.
ISABEL ROSALES, CNN CORRESPONDENT (voice-over): Lines of cars in Asheville, North Carolina waiting.
UNIDENTIFIED FEMALE: It's just rough. It's hard seeing the city like this.
ROSALES (voice-over): Some families tell CNN they've run out of drinking water in the hard-hit western area of the state. And without electricity,
their food is rotting.
Gary O'Dell is sharing everything he's got. His home with his daughter who lost it all to the catastrophic floods, and even lifesaving oxygen tanks
with his neighbor.
GARY O'DELL, SHARING OXYGEN TANKS WITH NEIGHBOR: My next-door neighbor ran out of oxygen, and he's in worse shape than I am. That's my problem. I've
got lung cancer now too. And you don't -- you know, you don't realize, you know, oxygen is very important.
ROSALES (voice-over): Nonprofits teaming up to serve 2,000 residents in the first four hours.
ROSALES: How are you guys doing?
ROSALES (voice-over): This is one of the first semi-trucks full of desperately needed supplies to arrive in Asheville.
MICHELLE COLEMAN, EXECUTIVE DIRECTOR, ASHEVILLE DREAM CENTER: This is the most devastating thing I've ever seen in our whole city. I think that the
loss of life, the fact that if you don't have cash, you can't get anything. We've gone to stores, water's out, ice is out. People slept overnight at
gas stations. Like, I feel like we've never seen this before.
ROSALES (voice-over): Alejandra Fuerte (ph) forced to walk to get help. She needs baby diapers for her grandchild.
We're not doing well, said Alejandra (ph). It made me so heartbroken to see everything so destroyed.
Outside of Asheville, it's even more waiting, hours just for gas, at the few pumps that are still running. CNN flew by helicopter, with a nonprofit
surveying inaccessible towns. Heavy trees and downed power lines are blocking major roadways, hampering the delivery of badly needed supplies.
An overturned semi-truck laying upside down in the river. And numerous landslides all spotted from above. Black Mountain City Manager Josh Harrold
says it could take years to get over this devastation.
JOSH HARROLD, BLACK MOUNTAIN CITY MANAGER: It's catastrophic. Black Mountain may never look the same again. It's just total destruction.
(END VIDEOTAPE)
CHATTERLEY: And not the only place in the world struggling. Images of devastation, too, from Nepal, after days of monsoon rains triggered
flooding and landslides that claimed the lives of almost 200 people.
Rescue workers managed to pull a two-year-old boy from the rubble of his home. According to police, however, his parents and brother were killed as
the landslide caused their house to collapse. Hanako Montgomery joins us now from Tokyo. Hanako, and I know you're across this story. What more can
you tell us about the rescue and recovery efforts?
HANAKO MONTGOMERY, CNN CORRESPONDENT: Yes, Julia, the rain has let up somewhat in Nepal, which has helped rescue efforts, but not before it
killed nearly 200 people and left destruction in its wake.
If you take a look at some of these videos, you can see just how widespread the devastation is. In this video, you see an entire building getting swept
away by the heavy rain. Take a look.
Now, this has happened all across Nepal, but it's been particularly bad in the Kathmandu Valley, which is, of course, home to the capital and also
where most of these deaths have taken place. In this next video, you see a two-year-old boy getting pulled out from underneath his buried home.
According to the police in Nepal, this boy and his home was buried in a landslide that actually killed both of his parents and also his brother.
Now, these roads in Nepal have flooded so much that survivors are having to wade through this dirty floodwater to get to these rubber rescue boats and
to get to safety. Helicopters have also been dispatched to this region as they search for any stranded survivors. Nepal has also closed schools and
colleges as they continue rescue operations.
[18:25:00]
Now, Julia, as you know, this region is no stranger to deadly monsoon seasons that kill hundreds of people every year. But according to climate
experts in Nepal, this year was particularly bad in part because of climate change. Also, interestingly, haphazard development and rapid urbanization
have exacerbated climate change risks, according to the International Center for Integrated Mountain Development.
In a statement released over the weekend, the center calls on government officials and also urban planners to, quote, "urgently increase the
investment in and planning of both gray, which is engineered and green, which is nature-based infrastructure." This would include better
underground stormwater and sewage systems and the restoration of wetlands.
Now, the statement also goes on to say that the effect of the rain was aggravated by poor drainage due to unplanned settlement, construction on
floodplains, lack of areas for water retention, and encroachment on the Bagmati River. So, Julia, all of this culminating in a very deadly monsoon
season for Nepal.
CHATTERLEY: Yes, and it's vital that we ask this kind of questions about how they should be investing to try and prepare better as this happens
season after season and get the infrastructure up to standard to be able to at least better cope with it. Hanako, great report. Great to have you with
us. Thank you so much for that.
Now, across Asia, Typhoon Krathon is heading towards Taiwan after lashing the northern islands of the Philippines with heavy rains and high winds.
Chad Myers is across this for us. Chad, what can we expect?
CHAD MYERS, CNN METEOROLOGIST: Super typhoon. I mean, 240 kilometers per hour right now. It is a very large storm. And if you look at it by itself,
you're thinking to yourself, oh, boy, Hong Kong. But all the computer models and the joint typhoon warning center turn this hard to the right and
make a direct impact here, not even where you'd expect it, but up here into Taiwan. And some spots now predicting, by the models, about 500 millimeters
of rainfall by the time this thing finally moves away.
It dumped a lot of rain in the Philippines and some of the area - and especially the northern islands, picked up over a half of a meter. And
already been raining here in Taiwan for a couple of hours, and we're up to 300 millimeters here.
But look at this thing, this is the actual computer model of what the radar may look like and it runs right over the top of Taipei Now, it isn't going
to be a super typhoon when it gets there. It will be much, much less, maybe only a 150, maybe, kilometers per hour with gusts more likely closer to
100, because a lot of the mountain areas here are going to take the storm itself out of the storm.
But it will also take the moisture out of the storm and put it down just like the pictures you showed in Nepal and the pictures you showed in North
Carolina. When you put mountains in the way of a storm, it rings that water out and it goes rain and it rains and it rain for days.
Up here toward Jebi, going to get real close to, I'd say Tokyo for the most part, but really not much of an issue because most of the wind will be on
the right side, away from Tokyo proper. Wouldn't want to be on a sailboat out there unless you, you know, really want to get into these waves that
could be three or four meters high. So, keep all the shipping on land, at least for now. But it does move away and doesn't really matter. By the time
we're looking at Wednesday or Thursday, this is completely gone.
Now, back to the Atlantic because we just had Helene, that was the story here in North Carolina. That's the H storm. We go in order here in the
Atlantic. So, I, J, K already out there. Just kind of piling them up. And this could be L. This could be Leslie, as it moves into the Gulf of Mexico.
The good news is, at least for now, you should see -- if you wanted to see a hurricane, big circles here. There are no circles. It doesn't get
organized, at least not for the next few days. We'll have to see how all that might change coming up by the weekend. Julia.
CHATTERLEY: Yes, let's hope it never gets organized, Chad.
MYERS: Right. We don't need it.
CHATTERLEY: Exactly.
MYERS: I don't need it.
CHATTERLEY: Had enough. Yes. Chad Myers, thank you, as always.
MYERS: You're welcome.
CHATTERLEY: We'll be back after this. Stay with us.
(COMMERCIAL BREAK)
[18:30:00]
CHATTERLEY: Welcome back to "First Move." And a deteriorating security situation in Lebanon tonight as Israel's cabinet approves the next phase of
war. Israeli artillery is firing into Southern Lebanon ahead of a possible ground operation. Residents in Southern Lebanon say they're terrified after
their army withdrew from positions at the border. Our teams in Beirut have reported multiple explosions in the capital.
According to the U.S. State Department, Israel has told Washington about a number of operations, including a limited one on the ground. Brigadier
General Mark Kimmitt is a retired U.S. Army officer and a former U.S. Assistant Secretary of State. Brigadier General, great to have you on the
show with us.
What are you expecting to see in the coming hours, and do you believe when the Israelis say this will be a limited ground incursion in Lebanon?
BRIG. GEN. MARK KIMMITT (RET.), U.S. ARMY AND FORMER SECRETARY OF STATE, POLITICAL-MILITARY AFFAIRS: Well, let's assume the hypothetical that they
do, in fact, decide to do a ground incursion tonight, I think it would actually start with some air support, probably beyond the Litani River to
ensure that any reinforcements to Hezbollah would not be able to get into that area.
I think you'll see strikes on targets within the Litani River south area. And I think the goal at this point, unless there's a different objective
that they have in mind, they have set for time, in memorial, that they want to get back into the 1701. agreement, which means they would clear the area
between the current border and the Litani River.
CHATTERLEY: Do you believe that's the ultimate aim, Brigadier General? Because there are those that look at this situation and what we're seeing
not only in terms of Hezbollah, but also tackling the Houthis as well and, obviously, the ongoing battle with Hamas, that this is an Israeli attempt
to shift the balance of power, not only in Lebanon, but in the Levant? Are we seeing a prelude to that or the beginning stages of that, in your mind?
KIMMITT: Well, look, the United States is dedicated to the defense of Israel. What you've described goes well beyond the defense of Israel, but,
in fact, is something that could, in fact, provoke a regional war. I think the United States is firmly against that. It's using diplomacy to do that,
candidly for them to do a huge operation in a number of different axes, Houthis, Hamas, Hezbollah, perhaps against the Hashid inside of Iraq, that
would certainly cross a red line with the United States.
But candidly, they may not have the capability to do all those things at the same time, despite what Prime Minister Netanyahu may want.
[18:35:00]
CHATTERLEY: How do you think the International Community contains the spillover, even of what we're seeing at this moment, Brigadier General?
Because some could argue that it's not that difficult. The Israeli war machine can't continue without U.S. military assistance. Should the United
States be doing more or is sort of standing back and letting the Israeli do targeted attempts as they're doing continue?
KIMMITT: Yes, there have been an attempt by a number of politicians inside the U.S. Senate in particular for trying to hold off some of the weapon
shipment. But the support for Israel and its defense within the United States is pretty overwhelming. And at political peril, they will try to
work against the -- as you would describe, the Israeli war machine, but in fact, the Israeli defense forces and our longstanding policy for the
defense of Israel.
So, it is hard politically to try to put up those restrictions. And I don't think that unless there was executive action by President Biden himself,
that there would be any chance of that happening.
CHATTERLEY: Yes. And I'll rephrase war operation as opposed to a machine in this case, as you quite rightly point out. What about Hezbollah at this
moment, Brigadier General? Because they have suffered significant leadership blows. The deputy leader said earlier today that they are
prepared and they're ready for what comes from the Israelis. Do you believe that?
KIMMITT: Well, I don't because the Israelis have executed a fairly targeted leadership targeting operation. They've taken out the -- at least
the first four tiers of leadership. No army can resurrect their leadership and make it a cohesive argument on a cohesive force as quickly as they may
like.
They will eventually. There will be more leaders that emerge, perhaps not of the strength of Hassan Nasrallah or Fuad Shukr and some of the other
leadership, but it will happen eventually, but it probably won't happen immediately.
CHATTERLEY: Now, we continue to hear the sounds of that artillery fire from Israel, the north of Israel into Lebanon, as we were just talking to
you there. Brigadier General, great to get your insights there. Thank you so much once again.
We're back after this. Stay with us.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move." Just 15 years ago, less than half of the world's adults had access to basic financial services like a
bank account, insurance, or savings. This year, financial inclusion stands at around 80 percent.
[18:40:00]
On Wednesday at the United Nations General Assembly, I have the honor of helping mark 15 years of progress on affordable, effective, and safe
financial services. It's in recognition of the work of Queen Maxima of the Netherlands as the U.N. secretary-general's special advocate for inclusive
finance.
Now, her role is transforming as she turns her attention to improving the state of the world's financial health. Her Majesty recently travelled to
Tanzania, Colombia, and the Philippines to see for herself the impact of inclusive financial services. And she told me that when she began, the true
scale of the challenge was unknown.
(BEGIN VIDEO CLIP)
QUEEN MAXIMA OF THE NETHERLANDS, U.N. SECRETARY-GENERAL'S SPECIAL ADVOCATE FOR FINANCIAL HEALTH: We started off we had no data. So, I had no idea.
You know, when I was thinking, OK, what is the gravity of the problem, you know? So, I said, well, we don't know, really. And then, we realized in
2011, we had the first set of data that was 50 percent.
CHATTERLEY: Yes.
QUEEN MAXIMA: So, when we started, it was well below 50 percent. And the last data is, you know, above 80 percent. So, I think we've had a lot of
successes. And so, we've actually seen and I've seen in the field that people actually have become better. They've gone out of poverty.
So, we were just, you know, in the Philippines, and there was this lady, and she got this credit. And now, she has two shops. And these two shops
now actually doubled her income. And she can actually pay school for kids. Now, she's trying to get a third shop because then, the husband that is
actually living abroad, could actually go back to the Philippines and help her out. And -- she doesn't see her husband for more than, you know, I
think, 10 months a year.
CHATTERLEY: Wow.
QUEEN MAXIMA: And so, this is, you know, changing -- life-changing for this person, for so many other individuals in the world.
CHATTERLEY: I think no one can ever doubt your passion, or to your point, the success and the results that all that has created, and it wouldn't be
possible without the public sector, without the partnerships that you've managed to create, and the bonds that you've created over this time as
well, I think, in addition to your true advocacy work.
And I think at a time where people are angry, people question the success and the achievements of the sustainable development goals. For me, this is
one where, as you've said, this is a success and it's a measurable success, which is so important.
QUEEN MAXIMA: Yes. You know, talk about measurable success, it takes long- term commitment. And it's not just about talking and making reports, it's about doing the work. And getting all the pieces of the infrastructure in
the architecture that are needed to be there to -- for these things to happen.
CHATTERLEY: Yes.
QUEEN MAXIMA: And I think that's one of the biggest issues for the success. You know, we've had regulators that are -- you know, were open to
innovation. We had standard setting bodies in Basel that embrace it. It was not only that financial stability when only 20 percent of the population
actually only had access. That's not stability.
CHATTERLEY: No.
QUEEN MAXIMA: So -- but how do you do to actually allow innovation and at the same time, you know, be able to sort of make it possible for all the
people in any given country and at the same time, you know, keeping that stability, speaking to the private sector, you know, how do we go there?
You know, you have a license to operate by being a bank, but if you're only just servicing the rich and you're forgetting, you know, the people that
need it the most, then we have to change the way things were doing it. And -- but you know, change came.
CHATTERLEY: But I think your point is a very important one, which is that all this work has been about financial access, but the real magic comes
when you can use that access to allow people to work on their financial health, whether that's getting credit, whether that's insuring and
protecting for some of the downside, and that is sort of a segue to where you go next.
QUEEN MAXIMA: Yes. So, I think that the access is done now. The issue is how we can improve people's financial health by, you know, helping them
being able to -- how do you deal with day-to-day expenses, how do they save, or, you know, being able to sort of look into the future, how do they
can actually have a pension fund, you know, invest in a home in the future? What happens if they have, you know, a crisis, health crisis, drought,
flood, how they're covered? You know, do they have an insurance or maybe the long-term savings to it?
And are they confident? Are they, you know, are they budgeting enough? Do they -- you know, have they covered all the risks? Are they -- like, you
know, I'm not having any financial stress. That's what financial health is. And this is not something in emerging countries. It's also my country, the
Netherlands.
CHATTERLEY: Yes.
QUEEN MAXIMA: You know, 30 percent of people in the Netherlands are not really financially healthy. So, I mean, we were just talking to a bank in
the Netherlands, and how do we do to get a lot of people that are not saving today? How do we help them save? And if we do, because one bank has
actually been doing that, and they have been increasing the savings of these people that never save before. And a buffer is so important.
[18:45:00]
CHATTERLEY: Yes.
QUEEN MAXIMA: So, I think that's a huge work to be done.
CHATTERLEY: The next 10 to 15 years, it sounds like you're going to be just as busy, if not more. It's going to be defined, I think, by the
technologies that we're already seeing artificial intelligence, automation. How do we ensure and how are you thinking about, as you said, utilizing
some of the benefits of this to define and to design products that work for people, but ensure that we don't leave the sort of 25 percent that we're
talking about that still need that access behind?
QUEEN MAXIMA: Yes, it's quite a challenge.
CHATTERLEY: Yes.
QUEEN MAXIMA: It's quite a challenge, because on the one hand, utilization is actually helping us to give these added services at a much better price.
CHATTERLEY: Of course.
QUEEN MAXIMA: That is affordable because, you know, it's impossible to have bank branches everywhere.
CHATTERLEY: Yes.
QUEEN MAXIMA: But at the same time, having this human aspect. And I was speaking to a bank here in America that has actually been doing a lot of
very good work on this field. And one of the things they've actually been doing is helped on the other -- on the one hand by digitalization. So, they
know, you know, which clients are having trouble so they can actually sort of, you know, drop a line and say, hey, we don't have a full bank branch,
but we have a little office where people can actually help you budget better and help you see, you know, how you can actually change certain
things so you can actually have a better outcome in your financial health. But I think it will be a mixer of actually self-digitization, innovation,
and the human touch.
CHATTERLEY: And consolidation of all the data that we're --
QUEEN MAXIMA: Of all the date.
CHATTERLEY: You're already having the conversations anyway. So, I'm not worried. Who are the unsung heroes in this 15-year -- 20-year journey?
Because you've been such a force of nature, I think, promoting this and traveling and understanding the real-world impact, but you also don't do it
alone.
QUEEN MAXIMA: No, no. Well, foundations that have believed in me and have supported me from the very beginning. I would say some leading countries
that when they thought, well, if we speak about financial inclusion, that means more risk and that means stability. And then, you know, some central
banks are like, you know, well -- and then, some of them really believed in it. They really put the neck out there and made the change and they paved
the way for innovation.
And when they -- you know, other people saw, well, you can do it, then a lot of other people followed suit. So, those first movers were
extraordinarily important. And so, I'm thankful to so many people. And I'm thankful for, you know, some -- a lot -- I mean, a lot of people that are
actually innovators but are on the ground, even in fragile places, and they fight every day to make the change. It's been it's been a great journey.
CHATTERLEY: We love first movers on this show. Your majesty, great to have you with us as always. Congratulations again.
QUEEN MAXIMA: Thank you so much.
CHATTERLEY: Thank you.
QUEEN MAXIMA: Wonderful to be back.
(END VIDEOTAPE)
CHATTERLEY: OK. Still ahead, Beijing bulls, investors buying Chinese stocks as new stimulus stimulates some animal spirit.
(COMMERCIAL BREAK)
[18:50:00]
CHATTERLEY: Making a "First Move" of a culinary kind. If you've ever been to Macao, you'll know just how popular and delicious its famous egg tarts
are. Been to Portugal too.
Now, 25 years after Macao's handover from Portugal to China, there you go, young entrepreneurs are finding new ways to reinvent the classic sweet
treat. Marc Stewart has Ma as part of our next Stop Series.
(BEGIN VIDEOTAPE)
MARC STEWART, CNN CORRESPONDENT (voice-over): This is a Portuguese egg tart, with its flaky pastry shell and rich custard filling, it's one of
Macao's most beloved sweet treats. And now, 28-year-old Crystal Kwok has turned it into beer.
This is Macao's very first craft beer company called Funny Eye. Founded six years ago while Crystal was still a university student. The business has
stood the test of time.
CRYSTAL KWOK, FOUNDER, FUNNY EYE BREWERY (through translator): Forget about the rules. People think savory flavors cannot be made into beer, that
food cannot be made into beer, but we are here to rewrite the rules.
STEWART (voice-over): The young entrepreneur first experimented with fermentation in her own home, and selling out of a wooden cart at weekend
markets with friends.
After years of fine tuning her brewing process, with fermentation tanks and brewing equipment tailored to fit inside her 12th floor warehouse brewery,
Crystal is proud to say her beer is 100 percent made in Macao.
KWOK (through translator): In every aspect, people wonder why we base our operations in Macao. We have to source everything externally. But to us,
Macao is our root. We hope that visitors can understand that Macao has its own thriving culture.
STEWART (voice-over): Her brand is now expanding into Mainland China and Hong Kong along the side of new nonalcoholic drinks. Young talent working
to ensure a future of made in Macao.
KWOK (through translator): I think this type of thinking is becoming more popular. They have a growing desire to build something new to try. I think
Macao is seeing the next generation who want to do their own thing.
(END VIDEOTAPE)
STEWART (voice-over): And in today's Money Move, U.S. stocks closing out a September to remember. And from Shanghai to Beijing, the China stock rally
is truly a thing. Beginning in the United States, Wall Street wrapping up the month of September and the third quarter in the green after a late day
rally. The S&P and Dow both finishing again at fresh record highs, despite some more cautious comments from Fed Chair Jay Powell on the size of future
rate cuts. The S&P having its best September in more than a decade, in fact, for a quarterly gain of 5.5 percent. The Dow doing even better,
rising more than 8 percent in the third quarter.
And in Asia, you can perhaps call it a Tokyo tumble, the Nikkei falling almost five percent on fears that the nation's incoming prime minister will
to raise corporate taxes and support higher interest rates. The new prime minister takes office on Tuesday. He's calling for snap elections for late
October.
And an entirely different market picture over in China, where stocks rallied for a ninth straight session on stimulus optimism. It was the
biggest one-day rally Monday for Chinese markets in 16 years. Kristie Lu Stout has more from Hong Kong.
(BEGIN VIDEOTAPE)
KRISTIE LU STOUT, CNN CORRESPONDENT: Shares in China surged again over Beijing's stimulus blitz, even after more weak data from the world's second
largest economy. On Friday, there was an explosive stock market rally after China unveiled a major stimulus package. And on Monday, markets soared yet
again.
The benchmark Shanghai Composite rose about 8 percent. the Hong Kong Hang Seng added over 2 percent, and Shenzhen shares surged nearly 11 percent.
Mainland markets will be closed tomorrow through October the 7th for the Golden Week holiday, and markets here in Hong Kong will reopen on
Wednesday.
Now, data released on Monday shows China's manufacturing activity contracted for the fifth consecutive month in September. But on Sunday, big
moves are made to revive the property market. China's Central Bank said it would start cutting existing mortgage rates before the end of October. And
three Chinese megacities, Guangzhou, Shanghai, and Shenzhen, eased curbs for home buyers.
Look, China has been facing a number of economic challenges, including weak consumer spending, a property slump, and rising local government debt. And
for months, economists had been asking the government to do more to boost the economy. And Beijing appears to be heeding that call.
[18:55:00]
Last week, China's Politburo, this is its top decision-making body, vowed more stimulus to reach China's annual growth target of around 5 percent and
investors and economists cheered the news. In fact, Bruce Peng, he's a chief economist, China at Jones Lang LaSalle said this, quote, "A pickup in
government spending will probably be sufficient to drive a turnaround in business confidence, market sentiment, and economic activities, helping
China to catch up with potential trend growth."
Now, the Politburo's pledge came days after China's Central Bank unveiled its most aggressive stimulus package since the COVID-19 pandemic. But this
won't be a quick fix. It's going to take time for the stimulus measures to filter through. So, investors may have to brace for more painful data
ahead.
Kristie Lu Stout, CNN, Hong Kong.
(END VIDEOTAPE)
CHATTERLEY: Our thanks to Kristie there, and we'll see what Tuesday's session brings.
And that just about wraps up the show. Thank you for joining us. We'll see you tomorrow.
(COMMERCIAL BREAK)
[19:00:00]
END
