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First Move with Julia Chatterley

U.S. Futures Volatile after April Jobs Report; Medic Inside Azovstal Plant: People are dying "In Agony"; Sources: EU Proposing Sanctions on Putin's Girlfriend; U.S. Stocks Falling Again After Thursday's 5 Percent Tech Sell-off; U.N.: 5,700,000 Plus Ukrainian Refugees Since February; War Contributing to Spiraling Costs for UK Grocer. Aired 09-10a ET

Aired May 06, 2022 - 09:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[09:00:00]

(COMMERCIAL BREAK)

JULIA CHATTERLEY, CNN HOST, FIRST MOVE: You're watching CNN. I am Julia Chatterley in New York. The Russian assault in Azovstal continues.

Ukrainian President Volodymyr Zelenskyy says the bombardment of the steel plant in Mariupol is now non-stop and the regiment inside have accused the

Russians of breaching a ceasefire.

CNN is unable to verify that a ceasefire was in effect. Officials also believe around 200 civilians remain trapped inside. A medic inside the

plant says people are dying in agony from bullet wounds hunger and lack of medicine.

Over in eastern Ukraine, Russian forces have made some small progress in parts of the Donbas region, according to the Pentagon spokesman John Kirby,

but that progress is not as much as the Kremlin expected to have made at this point. Kirby also said Ukrainian troops are "Putting up very stiff

resistance".

Meanwhile, symbols of the Russian invasion and presence in parts of southern Ukraine continued to appear, especially in Mariupol. The self-

declared Donetsk People's Republic is changing road signs from Ukrainian to Russian.

And this week, Russian soldiers were awarded medals for "The liberation of Mariupol"

Scott McLean joins us live now from Lviv. Scott, let's hone in on once again. And what we're seeing in Azovstal, it feels like more of the same

more violence, more fighting and more desperate struggles to release those trapped civilians.

SCOTT MCLEAN, CNN CORRESPONDENT: Yes, there is still some hope, Julia and that's because the Ukrainians and also the United Nations have said that

this evacuation mission is ongoing. It has already started. The hope, according to the United Nations yesterday is that the evacuation convoy

would arrive at the plant this morning to try to take people out.

Now the President of Ukraine says that they're not only hoping to get civilians out but also soldiers there are many of them who are wounded. We

don't know the status of the--

CHATTERLEY: And we appear to have lost Scott there, we'll try and get back to him if we can reestablish the line. For now, I mentioned in the next

half an hour we'll hear about the impact of the war on the economy and people's lives from the Ukraine's Central Bank.

The governor of the National Bank of Ukraine will join us shortly for an exclusive interview. Now, as Scott was saying, now the wall just one factor

creating significant turbulence across financial markets to stocks.

In the midst of our worst periods since the 2020 lock downs pressured by geopolitical uncertainty, China's slowing economy and fears that central

bankers will force their economies into recession by trying to tackle at higher prices.

Let me give you a sense of what we're seeing across global financial markets. As you can see, it is virtually a sea of red, U.S. futures also

losing ground once again today, after Thursday's sharp pullback, the worst session in fact on Wall Street in almost two years, Europe is also under

pressure.

As you can see their losses across the Asia session the HANG SENG dropping more than 3 percent in fact, almost nearly 4 percent, you can see on the

screen there the volatility on Wall Street this week has been well breathtaking.

All the way to Wall Street's averages dropping more than 3 percent Thursday with tech in fact down near 5 percent and that after rallying 3 percent

during Wednesday's session, volatility of course and uncertainty, always unsettling for Investors.

A little perspective though to the Dow and the S&P come into today's session at least it's still a touch highs on the week. But admittedly down

between 10 and 25 percent from recent highs for those indices.

Now crucial U.S. jobs data today to just release numbers showing the U.S. adding 428,000 net new jobs last month a bit better in fact than expected.

The numbers showing the U.S. labor market remains a relative economic bright spot, at least for now.

Rahel Solomon joins us now, Rahel, great to have you with us. Just walk us through all the numbers that we saw today from this report.

RAHEL SOLOMON, CNN REPORTER: Good to be with you Julia. Yes, the headline from the report that was just released about 30 minutes ago is that the

labor market here in the U.S. is extremely tight, but steady to put that in context.

But the number that we heard this morning, the 428,000 jobs added Julia that now makes the 12 straight months of job gains of more than 400,000.

The labor market again is extremely tight.

When we look at the unemployment rate that's now unchanged at 3.6 percent, but to put that in perspective before the pandemic February of 2020 the

unemployment rate was at 3.5 and that was a 50 year low. Just really gives you a sense of sort of where we are in the jobs market.

[09:05:00]

SOLOMON: When we look at, well, let's take a look at some of the last few months you can see again, March was 428,000, February 714. Part of the

reason we saw that huge spike that month was because of sort of Omicron lifting and the re-openings.

Now, when we look at the report today and some of the strongest gains with what industries it was industries, like leisure, hospitality,

manufacturing, transportation, and warehousing.

Yearly hourly wages increased 5.5 percent, perhaps a bright spot for employees, but not necessarily when you think about inflation. So that's

sort of the situation here we have hourly wages increasing 5.5 percent.

But we also have inflation sort of rising at its fastest pace, and 40 years, the latest CPI figure coming in at 8.5. So yes, 12 straight months

of 400,000 jobs added. It's part of the reason why Powell has called the unemployment market or the labor market, almost unhealthily hot, right.

We heard him on Wednesday, talk about how there are 1.9 open jobs for every unemployed person. It's part of the challenge that companies find

themselves and as consumers continue to spend, and the demand remains hot, and companies try to hire people to sort of keep up with that demand.

It's a very delicate and tricky spot for the Federal Reserve as they try to manage inflation, Julia.

CHATTERLEY: Yes, a bit of wage inflation should be a good thing. But the broader backdrop makes it complicated to say the least. Rahel, great to

have you with us, thank you so much for that.

Richard Quest joins us now on the Twitter, I was just thinking about this, actually, I was listening to Rahel, and it's almost a case of the Fed

having hanging on in there and providing support in order to gain the next or the final one to 2 million jobs at the expense of raising prices and

conditions for 150 million other people in the U.S. economy. None of that is relevant today. Because whatever it takes, they've got to rein in

inflation.

RICHARD QUEST, ANCHOR, QUEST MEANS BUSINESS: Yes, because it's so much out of control than they actually expected. And to your very good point, if you

look at the way the statement changed the dual mandate in the last few in the last 18 months or so, the attention and there has been focused on is

the full employment side of it.

Well, full employment has arrived. And then some, you've got that wage inflation; you're talking about a 5.5 percent year on year increase in

average earnings. And yet that's negative when you put it in terms of inflation.

On a nominal level it's fine, but on a real level people. So we have the worst of all situations here. We have real incomes actually falling, we

have inflation exceptionally high. And we have interest rates going up because the Fed now has only one duty, responsibility, one ambition, and

that's to bring inflation down.

CHATTERLEY: Yes, and the consequence of that, of course, turbulence on financial markets.

QUEST: Yes, absolutely.

CHATTERLEY: Wherever you look, not just in the United States, of course, but right around the world too.

QUEST: And I think what you saw, of course, in the UK, is you've seen the Bank of England, the fourth increase in interest rates with more to come.

The bank itself basically as Central Bank, basically saying there's a recession on the cards and the ECB.

Interestingly, Christine Lagarde had wanted to finish the nontraditional the bond buying and maybe start raising rates in September, October.

President Lagarde is not going to be able to do that it now looks like the Hawks on the Bundesbank Governing Council will bring that forward so we

could see the Bundesbank, or the ECB raising rates as early as July.

That's the latest thinking. The totality of my message this morning with you, Julia, there is every reason for markets to be unhappy and remain

unhappy for the foreseeable future until they get cheap enough to buy.

CHATTERLEY: Yes, that's a great point, particularly given the backdrop and the level of uncertainty that we're seeing, and adjustment has to happen,

Richard, always great to chat to you, thank you.

QUEST: Thank you.

CHATTERLEY: Now adding to the uncertainty that we were just discussing there and the fears President Xi Jinping not backing down on his zero COVID

policy and making sure everyone knows it.

Selina Wang joins us now. Selina, you and I have long been discussing the challenges the social pressures that Xi Jinping and the government are

under as a result of their COVID policies that they're taking.

What was fascinating to me about this was you have to try and understand what's going on behind the scenes and the pressure that he must be feeling

socially and politically, to have to come out and make the statement that look, we're sticking with this - come what may?

SELINA WANG, CNN CORRESPONDENT: And not only that it was also a direct warning to anyone who descends against him was a direct shot at them. In

this top meeting with Communist Party leader Xi Jinping vowed to "unswerving unswervingly adhere to the general policy of dynamics zero

COVID and resolutely fight against any words and acts that distort doubt or deny our country's epidemic prevention policies".

So Julia, if there was any wavering as to whether or not China was going to stick with this policy because of the devastating impact it's had on the

economy and on some people's lives, well this totally quashes any of that doubt.

[09:10:00]

WANG: And after the news we saw Chinese markets fall more than 2 percent with the tech stocks hit especially hard. Investors are especially

terrified and rattled by the fact that this speech made no mention of balancing zero COVID with the economy, and we've been discussing just how

severe the hit has been to the economy.

We saw the services sector a contracted at the second sharpest pace on record factory activity contracting for the second straight month. This is

as the Capitol in Beijing, they continue to ramp up these COVID-19 restrictions, even though COVID cases there remain relatively low.

And in Shanghai, still, many of the city's 25 million people have been sealed in their homes for more than a month. In fact, across China, at

least 30 cities are under some form of COVID-19 lockdown, and that's impacting up to 198 million people.

So these harsh words after what we heard from Xi Jinping, you should also expect to see more censorship of dissenting voices online. In fact, even

potentially, if economists for instance, Chinese social media recently shut down the accounts of a prominent market analyst Hong Hao who is at BOCOM

International.

He had recently made critical posts about the dramatic slowdown in China's economy, as well as the severe capital outflows his social media accounts

all shut down.

And in fact, he has also since left their banks. Now Julia, there are serious concerns about China opening up and learning to live with COVID.

Vaccination rates among the elderly are still low and there is a concern that the health system could be severely overrun and we could see COVID

deaths skyrocket.

But there is agreement that this year recovery strategy is also about politics. Xi Jinping has put his personal stamp on this. So experts see

this as a reason why there is this unquestioning unwavering dedication to this because it is tied to his leadership.

So no matter the economic the human toll, zero COVID for now is here to stay. Julia?

CHATTERLEY: Right and you raise a great point that actually flexibility on this might not be an option, given the preparations in the country, which

is a valid point to. Selina, thank you so much for that, more after this, stay with CNN.

(COMMERCIAL BREAK)

CHATTERLEY: Welcome back. I think we've managed to reestablish our contact with Scott McLean over in Lviv. So I'm going to try and go back to him now.

[09:15:00]

CHATTERLEY: Scott, we were talking to you earlier on in the show about the challenges of trying to evacuate people at the same time as what seems to

be ongoing bombardment of that steel plant. What more can you tell us? What more do we know?

MCLEAN: Exactly. So the latest that we've been told is that this evacuation convoy is in progress. It is in route it is there, we're not sure exactly.

Officials are in radio silence mode, not wanting to jeopardize the success of the operation in terms of militarily around that steel plant.

The latest update that we have from the Ukrainian military is that the plant is still blocked off by the Russian military. Sometimes they're

firing on it. And we've just gotten a further update from the Azov regiment.

That's the part of the Ukrainian military that's doing the bulk of the fighting there. They say that an anti-tank missile was fired at a car that

was helping with evacuations during what they described was a ceasefire period.

They say that one person was killed and six were injured. And they say that this is just one example of the Russians breaking their commitments to

these ceasefire agreements, though we're not in a position at this stage to verify that there even was a ceasefire agreement in place because, as I

said, officials are saying nothing about this.

Now, there have been some predictions as well that the Russians may use the symbolism around May 9, a victory day over Nazi Germany back in 1945. That

anniversary is coming up in a few days.

And there's been some speculation that perhaps the Russians will use the symbolism of that day to declare victory, declare war declare something.

And the Kremlin was asked whether or not they might parade the military through Mariupol.

And they didn't shoot it down. They just said they didn't know what the military's plans were at this stage. The Russians have not begun rebuilding

Mariupol. But on the ground, as you mentioned earlier in the show, Julia, there are some signs that there were at least redecorating, changing some

of the road signs, especially into the entrance of the city from Ukrainian language into Russian language.

They've also erected a statue of an old woman carrying a Soviet Union Flag. They've also rolled out old statues, some refurbished some Soviet era

statues, and of course, the Russian flag is now flying at City Hall. Julia?

CHATTERLEY: I mean you can't take anything away from that symbolism. I think the images that we're seeing being presented by some of the officials

from the Mariupol that heartbreaking again, more heartbreak on top of heartbreak for the Ukrainian --.

Scott, great to have you with us, thank you. Scott McLean there in Lviv, thank you.

MCLEAN: You bet.

CHATTERLEY: Now over $500 billion dollars, that's the figure Ukraine puts on the total damage caused to its economy in just the first six weeks of

Russia's war alone. Bridges, roads and homes worth $270 billion have been destroyed. It says 30 percent of business is shut down initially according

to a research institute there.

President Zelenskyy says a full scale recovery will cost at least $600 billion. The United States and Europe have vowed to support Ukraine as it

grapples with the economic fallout of war. This week, the European Central Bank President Christine Lagarde invited the Governor of Ukraine's National

Bank to meeting with Central Bank heads of the Euro zone nations.

Joining us now is Kyrylo Shevchenko. He's the Governor at the National Bank of Ukraine. Governor, fantastic to have you with us on the show, we

appreciate your time.

I know you've probably had much to discuss with the European Central Bank. But can you just start by giving us a sense of what your latest numbers are

on the scale of the damage to the economy and perhaps what recovery you're seeing as you recapture parts of the country that were initially taken?

KYRYLO SHEVCHENKO, GOVERNOR, NATIONAL BANK OF UKRAINE: Thank you.

CHATTERLEY: OK, I seem to have lost the connection there too. It is just one of those shows. Governor Shevchenko, can you hear me?

SHEVCHENKO: Yes, I can hear you.

CHATTERLEY: OK.

SHEVCHENKO: Sorry for the connection, I am speaking from--

CHATTERLEY: That's OK. Please. I'm grateful to have you here.

SHEVCHENKO: tried - probably.

CHATTERLEY: Yes, we should expect some connection issues.

SHEVCHENKO: Thank you.

CHATTERLEY: Just start by telling us the current economic situation in the country and what you're forecasting. What you were telling the European

Central Bank? And is it improving to any degree as a result of getting parts of the country back up and running again?

SHEVCHENKO: OK. I don't understand that it sounds like a miracle, but we have been consistent in --. I mean, the digital systems are completely--

[09:20:00]

CHATTERLEY: OK. Governor, we're having some ongoing difficulties with your connection. I don't want to waste your time because I know you have very

important meetings. We're going to let you go.

I think and try and reestablish connection. Kyrylo Shevchenko, the Governor of the National Bank of Ukraine there, we will try and reestablish

connection and get him back as we can.

All right, new details on what life is like for Ukrainians now living in Russian occupied areas. CNN International Security Editor Nick Paton Walsh

is in the Kherson region with more.

NICK PATON WALSH, CNN INTERNATIONAL SECURITY EDITOR: Here in Ukraine South multiple areas now held by the Russian some for a matter of months. And

we've seen people emerging in large numbers out of Kherson still using intermittent gaps it seems in the Russian control of checkpoints.

Some days it's impossible in the cars - 10s of miles, other days they just waved through.

But in Kherson itself, we've just heard that officials Ukrainian officials are concerned that those trying to leave are indeed being abused. It's

increasingly hard it seems to get out and there are increasing signs of Russian elements in daily life there.

The internet taken down now back up locals telling us you may indeed even need to get a Russian passport to get a Russian SIM card to operate on

future cell phone services there.

And also to the Russian ruble, having been in evidence there as a currency since the weekend too, though, in the heavily besieged city of Mariupol

were still is intense firefights happening around the Azovstal steel plant in the areas the Russians do control.

They appear according to sources, they're to be trying to restore monuments of Soviet glory and a clenched fist with a flame coming from it symbolizing

the Soviet fight against the Nazis and also to a Russian flag said to be flying over a key hospital there.

These bids it seems by Russia to stamp its mark on territories it's taken in Ukraine possibly ahead of Sunday's key, sorry, Monday's key Victory Day

parade. Unclear what this is doing for the local population sense of being part of Ukraine, but certainly a bid by Moscow to suggest that it's got

some sort of progress in these months of war.

CHATTERLEY: Paton Walsh there. Now EU Commission President Ursula von der Leyen says she's confident the blocks new proposed sanctions against Russia

will pass that despite some opposition to parts of the package. Clare Sebastian joins me now on this.

Clare, you and I could have discussed this any day this week. And we could have had the same conversation. We don't want to talk about problems. We

want to talk about solutions. What is the solution to get the likes of Slovakia, Hungary, the nations that have incredibly high dependency on

Russian oil across the line on this embargo?

CLARE SEBASTIAN, CNN CORRESPONDENT: Yes, Julia, what they're asking for is more time, essentially, in terms of the Czech Republic, Slovakia, certainly

we think Bulgaria as well, they're saying that the current phase out plan which would take off all crude oil and all oil products off the market in

the European Union by the end of this year, that just isn't enough time for some of these countries.

We are in terms of the discussions that are currently in the third day in the EU Council. We're hearing some positive noises coming out. The Czech

government told us that they think things are moving in the right direction, which is also the exact same wording that we had from Ursula Van

Der Leyen.

But Hungary remains one of the most ardent opponents to this. The Prime Minister Viktor Orban gave a radio interview today, which was quoted by his

communications chief where he essentially compared the sanctions package to an atomic bomb.

He said, The European Union is disrupting its own unity by doing this, and he said he has sent this back to us and van der Leyen asking for amendments

essentially. So it remains to be seen.

Of course, the number one risk here is that they can't reach unanimity. The number two risk is that they do reach unanimity, but they do it with so

much dilution to the package, that it essentially doesn't go much further than what they already said they were going to do, which is phase out

Russian fossil fuels by 2027.

And that, of course, gives Russia plenty of time to prepare. Russia, of course, will face pain if this goes through. But it is showing some

resilience in its economy. The ruble today hit its strongest point against the dollar since around February 2020.

So before even the pandemic artificial, of course, because the Central Bank is propping it up is still a sign that they have managed to stabilize

things there.

CHATTERLEY: Also one of the big questions, I think, as far as sanctions are concerned is how to directly target to Vladimir Putin himself. And what's

the best way to do that?

And of course, a lot of the pressure was on targeting some of the oligarchs that have believed it to manage his wealth. It now appears or at least it's

rumored that perhaps Vladimir Putin's purported girlfriend could be included in the EU sanctions as well. What more do we know on that?

[09:25:00]

SEBASTIAN: Yes. So in the playbook, as you say, of targeting people close to Putin, this would I mean, allegedly because he's always denied that

there was even a relationship.

This would allegedly hit as close as it gets. Really this is according to two EU sources speaking to CNN's Luke McGee that say that Alina Kabaeva,

who is a Russian former rhythmic gymnast, has been linked romantically to President Putin for many years now could be included among those individual

sanctions. That would be significant.

Of course, even though Putin has denied that relationship. This is something that according to the Wall Street Journal, U.S. officials stopped

short of doing because they were worried it would look like too much of an escalation.

So potentially Alina Kabaeva, we've also got reports that from - Luke McGee, as well from his sources that the Patriarch Kirill, the Head of the

Russian Orthodox Church is also on the list.

He is, of course, an ardent supporter of President Putin and arbiter in many ways of his sort of social program, his social reforms; he's more

conservative ones that he has put in place during his tenure.

So this will be significant individual sanctions also hitting hard if this package of sanctions goes through.

CHATTERLEY: Yes, and we shall wait to see if that can be achieved. And to your earlier point, what carve outs are required for some of those nations

in order to get them across the line. Clare Sebastian, thank you so much for that. OK, stay with us, the opening bell is up next.

(COMMERCIAL BREAK)

[09:30:00]

CHATTERLEY: Welcome back! The opening bell - on Wall Street, the Americans Swiss Foundation ringing the opening bell and fist bumps and cheers. Let's

hope they can give some energy to markets as well. Stocks are up and running after Thursday's sharp declines and take a look at that.

As we are seeing fresh weakness for all the major averages with tech stocks, once again, the worst performance after Thursday's at 5 percent

drop. Stocks falling amid fears that to contain inflation, the Fed will have to raise rates well above what the market has already priced, which

Clarida the Former Fed Vice Chairman says rates must rise to at least three and a half percent. So that's significantly above the current 1 percent

level.

And new numbers showing the U.S. labor market remains strong with a greater than expected 420,000 jobs added last month with solid gains in

manufacturing and in leisure and hospitality.

Christine Romans joins us on these numbers.

Christine, it's actually quite fascinating when you know that there are two available positions virtually for every unemployed person that actually

they can find workers to hire into these positions, actually. And that's the reality of the jobs market in the United States today.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: You wonder if these numbers they've at least the payrolls numbers would have been even hotter

if they could have found the workers right?

I mean, this is a strong number. I would say though Julia strong, but slowing, we saw some minor downward revisions. I haven't seen downward

revisions in a very long time. So that's something important to note, I want to look at wage growth as well strong, but slowing.

So I think the moderation in these numbers is something that's interesting and important to watch. I mean, earlier today, I asked Mark Zandi from

Moody's, you know whether he thought that maybe peak inflation is close? And this is what he said.

(BEGIN VIDEO CLIP)

MARK ZANDI, CHIEF ECONOMIST, MOODY'S ANALYTICS: Yes, I think so. You know, it's, I think, really tied to those oil prices. And you know what we pay at

the pump, because it's also driven up diesel prices, which makes the cost of food higher. And, you know, when we get those packages from Amazon, on

our front doorstep, you know, that that cost more because of the higher diesel.

So we need to get oil prices moving south. And this goes back to the Russian invasion of Ukraine. You know, hopefully the, you know, the worst

of the fallout on oil prices behind us.

(END VIDEO CLIP)

ROMANS: We're also going to get some easier comparisons, I think, because of the calendar really right in the months ahead. You know, those base

effects, as it's known in terms of inflation figures, but overall look, 5.5 percent wage growth wasn't the 5.6 percent. We saw last month, so strong,

right, but looks like it's showing some signs of moderating.

And it's a moderating of the pace in the job market from here on out. Zandi and others have said, Julia would be kind of a welcome signal here, the

Fed, remember is trying to get inflation under control here. So a more moderation in the job market might end up a good thing overall.

CHATTERLEY: Christine I was watching you earlier in - and for me, that was the key question to be asking, at the key moment, are we at the point of

peak inflation? And just so that our viewers understand why this matters, because you've got central banks all around the world, with incredibly low

interest rates, knowing that they've got to hike because they see these inflation, these pricing prints coming in, and they're super, super high.

But at the same time, we know when we can feel that the growth environment is slowing in, in certain parts of the world like China, it's slowing

dramatically. So with the risk here that you've got, its central banks trying to play catch up at the same time is actually they're going to be

shocked, perhaps quicker than they realize, with prices then coming down.

And I think that's part of what financial markets and investors are dealing with here. It is sheer uncertainty, but it's that fear of they've been slow

to react, and now perhaps they're going to be slow to react when things slow.

ROMANS: Yes. And I mean, look, we don't know for sure how it's going to play out. And you've heard Mark there, talk about all of these

uncertainties, you know, the war in Ukraine, I'm still don't think we have a full sense of what that's going to mean for global food supplies and

global food prices, right?

I mean, we are just in the early innings, the early stages of understanding what's going to happen there. We're the energy you know, energy. You know

energy embargoes, if you will, restrictions and import restrictions of Russian energy that's going to remake the landscape of the global energy

market, and that will be difficult to figure out pricing going forward here.

At the same time, you have a world, many governments that are trying to look towards sustainability. So they'll do two things at once. They have to

scour the world for supplies at the same time. They're trying to be more sustainable, that's going to be difficult politically. There's just a lot

going on which I think makes it you know boy I want to say the peak in inflation is in.

[09:35:00]

ROMANS: But there are a lot of factors here that we just don't have a real handle on quite yet.

CHATTERLEY: Yes, absolutely. And you can add to that we discussed earlier on in the show the leader of China saying, whatever it takes, we're going

to maintain our zero COVID policy and the economic consequences of that not just for China, but for everyone else trying to calibrate what the impact

is going to be too huge, huge uncertainty. Christine Romans, it's great to get your perspective as always. Stay with "First Move' we'll have more just

after this.

(COMMERCIAL BREAK)

CHATTERLEY: Welcome back! Ukraine's Azov Battalion has accused Russian troops of breaking a ceasefire at the Mariupol Steel Plant a short while

ago. The battalion sees Ukrainian fighter was killed and several wounded when Russia fired at a car attempting to evacuate civilians.

CNN has been unable to verify if a ceasefire was in effect. And earlier Ukraine said more efforts to rescue civilians trapped in the Azovstal Plant

were planned for today. Ukraine's President Zelenskyy said last night the plant is now under non-stop shelling.

The Russian invasion has displaced millions of Ukrainians, many of them children, that trauma is being compounded by a loss of crucial early

education and stability. Some organizations are trying to address one of those problems. And that's CARE.

It's working to hide teachers who are also Ukrainian refugees, bridging the language gap and trying to help children acclimatized to a new reality.

Joining us now is Daria Khyshenko she's a Russian refugee who now works as a teacher in Poland.

Daria, it's great to have you on the show. Thank you so much for your time and you're Wonder Woman in my mind, you speak Ukrainian you speak English

you also speak Polish. And you're a teacher. But you've also become almost everything. I think the translator, family friend confidant to the students

and the parents. Tell us what it's been like.

DARIA KHYSHENKO, UKRAINIAN REFUGEE, HIRED AS A TEACHER IN POLAND: Hello, Julia, thanks for having me. Well, yes, it's an honor for me to be part of

this team, to regard of CARE and to be part of teaching program because for teachers and for children, this is a lot. For teachers this is chance to be

in a position of teaching which we were doing previously and to be a bridge between Polish teachers and Polish society and Ukrainian children.

[09:40:00]

KHYSHENKO: For them, I'm not just the teacher, as you said, I help them in all the matters, all the issues that they have, I constantly have a contact

with parents. Sometimes they have personal questions, some troubles with applying for something. So in documents and this I do as well. And of

course, translating and helping children during the classes and their free time activities as well.

CHATTERLEY: And I know you're suffering too, you've obviously left your home. You left your parents, I believe back home, you bought your son with

you. So you're also trying to deal with what he's going through and what you're going through? How are the children doing?

I think we all say children are incredibly resilient, despite at times awful circumstances like these, but how are they? How are they doing?

KHYSHENKO: Well, children, they don't show the effects as we show as adults, but you can see that they have suffered and they have - they of

course have witnessed terrible things, but coming to Poland a safe place. We also see - I see how they by days, they become happier, they smile; they

can't wait to go to school, for example, my son.

He is at the same school as I am. And today morning, he said, it's so bitter that it's Friday, we don't go to school tomorrow, likes it so much.

He has friends he has - they play football, they just talk in their language.

And teachers, they're also incredible, they help a lot. And we are all trying and helping and doing our best to do feel to help children, you

know, adjust as fast as it's possible.

CHATTERLEY: Yes, I can't imagine what it's like to have your son say that that he is sad that it's the weekend because actually he loves school,

which I think is testament to what you and everybody there is doing.

The reason why you're able to do this, though, is the result of CARE because and you can talk us through this. They approached you and said

look, you're a teacher, we'd love to hire you give you a salary put you to work doing more than teaching admittedly in your role.

But how was that for you in terms of being a refugee, but actually knowing that you're going to have steady income money coming through the door and

be able to provide some sense of stability to your son, even in a different country?

KHYSHENKO: Well, yes. It's a lot it is, when we were coming, I was afraid that I will not be able to find job as many other women as many other

refuges. And I was so lucky to be defined this opportunity and to be part of a teaching program sponsored by CARE.

And it means like all our lives, they were taken away, unfortunately, and this little understanding of stability of having and given, you know,

having sense of your work. It is a lot to me, it means a lot to help Ukrainian children to help Ukrainian women and refugees to be at least a

little part of something big. They say this is very inspiring. And to me, it's great opportunity as much. I do what I can, and I wish I could do

more.

CHATTERLEY: I think you're holding the country together, even if you're not physically present there. Daria how is your family doing? How are your

parents that are still back there? And I think one of the obvious questions that that we all wonder in this situation is when this war ends, do you

plan to go back home?

KHYSHENKO: Well, about my parents, my mom, she's here with me in the water. So it will have together with my mom and my son and my father. He is 63 but

he decided to join the army. They didn't want him first. But he was so persistent. They took him finally, yes.

And he is now part of Ukrainian army fighting for our independence and for our country. And of course, we all want to return we hope this war ends

very soon and we'll be able to go home and to rebuild our lives again.

CHATTERLEY: And that's most definitely the plan.

KHYSHENKO: Yes.

[09:45:00]

CHATTERLEY: And does your son ask that? Does he ask when you're going home?

KHYSHENKO: Well, yes. He's asking all the time. He plans to go next week. Next month. He's saying, this as we finished school and then returning

home. We try to explain that it might take longer, but he has no doubt as all the children he has no doubt that we are returning and it is just a

temporary place for us now.

And we all want and children they want to return so much we - I can see it they talk about it every day that we are we are returning home. This is

this is not home. We have Ukraine is our home.

CHATTERLEY: I think a fighting spirit and resilience is a family treat, Daria, and we wish you and your family well. Thank you for joining us from

Worcester and thank you for what you're doing.

KHYSHENKO: Thank you.

CHATTERLEY: Thank you. So many towns and villages across Ukraine have been devastated by this war. Many of those left behind desperately searching for

answers and hoping their missing loved ones will return as CNN's Sara Sidner reports.

(BEGIN VIDEOTAPE)

SARA SIDNER, CNN CORRESPONDENT (voice over): Every single day, Valentina - waits for the moment her husband and son returned home. On March 11th I

called them and - just said Hold on. Wait a minute, and that's all.

SIDNER (on camera): What do you think happened to your husband and son?

SIDNER (voice over): I don't know. I have no idea. My husband and son won't hurt a fly. They are very kind. Days before Russian soldiers had occupied

the town when she returned home that day neighbors told her husband and son had been taken by Russian soldiers. I want them to return my husband and

son or at least tell me where they are now. Where did they hide my boys? I can't find my place in life. Where are they?

How am I supposed to live now tell me how? She is not the only one suffering through this across the street and just around the corner. Other

families are longing for the day their husbands and fathers return. She watched his Russians forcibly took their - away leaving them with just

pictures for now.

The main thing is they took him and we don't know where he is. We hope we find him and they the Russians will be punished. They are relieved that

this village is no longer crawling with Russian tanks. But it means there's no one left to ask where the men were taken.

In the rubble of war - has been searching for his brother. He says he was also picked up by Russian soldiers in the same time, like many others. From

the story we heard from a guy we know he was beaten around the clock. We met the guy he's talking about who says he too was detained and held by

Russian soldiers who said it was their job to beat them each day.

My hands were tied with this rope here it is what he says. And another two guys were handcuffed. One of the men didn't make it up alive he says. In

the morning, the Russian said that his body was already cold.

He reported it to police and it was determined that the man killed was - brother, though nobody has ever been found. They took the body away who

knows where we still don't know where he is.

SIDNER (on camera): After hearing all this how do you survive this? How do you live with this?

SIDNER (voice over): It's very hard very hard. We happen to be with - when he got permission from the homeowner to go on his bombed out property. We

went down a set of steep stairs at the bottom. He stayed merely seconds the memory of his brothers last moment too much for him to bear. Sara Sidner,

CNN, Ukraine.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

[09:50:00]

CHATTERLEY: The war in Ukraine leading to ongoing fears of a global food supply crisis at home and abroad. It's clearly evident wherever you are in

local supermarkets too. Clare Sebastian is back and talk to one boss about how he's changed the way he does business.

(BEGIN VIDEOTAPE)

RICHARD WALKER, MANAGING DIRECTOR, ICELAND: The national flower of Ukraine is the sunflower and 80 percent of production actually comes out of Ukraine

that has stopped.

So we have to limit stocks now and shut down our suppliers of the five liter oils and move into two liter oils. But actually the bigger impact is

on our pre prepared ready meals.

SEBASTIAN (on camera): Chicken --?

WALKER: Yes, there you go.

SEBASTIAN: --rapeseed oil?

WALKER: --oil yes. OK, there you go. So the price of rapeseed oil is going up about 500 percent. But the price of sunflower oil is going up 1,000

percent, where it's available, but really, it's a lack of availability.

SEBASTIAN (voice over): Iceland is a 50 year old chain of over 1000 UK supermarkets known for its low prices. It's not alone in rationing cooking

oil we found several other British supermarkets doing the same. And that's not the only difficult decision they've had to make.

WALKER: We took a stance and boycotted palm oil. We were the first retailer in the world to do that. And we reformulated 450 of our own labeled frozen

products. And we actually swapped palm oil with sunflower oil. So now there's no sunflower oil.

We're obviously prioritizing other oils to use instead, like rapeseed oil, olive oil, et cetera. But unfortunately, I never thought I'd say this we

now have to move back into to palm oil in some products.

SEBASTIAN (on camera): Were you surprised by how many products were affected by this conflict?

WALKER: Yes. I mean, vegetable oils used in up to 50 percent of all supermarket products, everything from ice cream to pies and pastries, even

lipstick, and I didn't realize this, but apparently those noodles come out of Ukraine. And that's why there's only one left on the shelf now.

SEBASTIAN (voice over): Nestle confirmed the instant noodles were manufactured at their factory in Kharkiv a city and the Russian

bombardments since the very start of the conflict. That factory has stopped oil production. And Nestle says it donated all remaining supplies locally

when the war started.

SEBASTIAN (on camera): Obviously, it's not just Ukraine that's contributing to the price rises that you have to swallow.

WALKER: Yes, I mean, obviously the oil price has shot up and that's affecting the base commodity price of everything. We're having quite a lot

of cost pressure from our suppliers. They're also having a shortage for example of things like fertilizer because a lot of fertilizer is derived

from potash mines in Russia.

So in the UK, we have national minimum wage increase, which is the right thing to do. But it's going up to 9.50 pound and that will add 20 million

pounds of cost onto our business this year. Our electricity bill is very large anyway. Last year, it was about 65 million. But this year coming

because of where energy prices are it will be many times more than that.

SEBASTIAN (on camera): Are you going to make any money this year?

WALKER: We'll certainly make less money than last year, that's for sure. And we won't be taking any dividends. Any profit that we have is reinvested

in the business. I think that's the right thing to do. Because we need to make sure that you know it's in my interest that we're here for another 50

years.

(END VIDEOTAPE)

[09:55:00]

CHATTERLEY: And from supermarkets to space, four astronauts flush down to earth this morning returning from a six month stint on the International

Space Station. And SpaceX Capsule bought them home overnight landing them in the Gulf of Mexico. A Russian cosmonaut is now in command of the space

station.

And a final look at what we're seeing across the border financial markets steepening losses as you can see there the NASDAQ down some 2.5 percent all

the major averages now significantly in the red in early trade tech stocks. Look at that, once again, it brings tech losses over the past two days to

one - I'm just doing the math now to around 7 percent.

Yep, 7 percent over the last two days, and of course, stocks losing ground as a result of that relatively solid read on the U.S. jobs market in the

United States. U.S. economy adding more than 400,000 jobs net that was a 12 straight month above that 400,000 figure. Manufacturing sector in

particular, it remaining strong what was it that Christine Romans called it's solid, but slowing and that is the key. And nonetheless whatever it is

in terms of the economy now or the inflation Brent, the Federal Reserve knows, it has to keep raising rates into a very uncertain environment.

And that's it for the show. If you've missed any of our interviews today, there will be on my Twitter and Instagram pages you can search for

@juliachatterleycnn. In the meantime, have a good weekend "Connect the World" with Becky Anderson is up next.

(COMMERCIAL BREAK)

END