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First Move with Julia Chatterley

Biden Begins Asian Tour, Meets South Korea's new President; Victims Speak of Loss after Odessa Strike; U.S. Futures Higher After China's Interest Rate Cuts; Wall Street Opens Higher after China's Interest Rate Cut; Real Estate Manger Turns Soldier in Ukrainian Army; Uncrewed Boeing Starliner Blasts off into Space. Aired 9-10a ET

Aired May 20, 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)

ALISON KOSIK, CNN HOST, FIRST MOVE: You're watching CNN. I'm Alison Kosik in New York. President Biden is in South Korea kicking off his first trip

to Asia since taking office. He joined the New South Korean President Yoon Seok-youl at a Samsung Semiconductor Plant.

In a display of unity the main goal of his trip is to reassure America's Asian allies of its commitment to counter and contain China. The President

is also bracing for the possibility of a nuclear test by North Korea.

Mr. Biden will go on to visit Japan later in his trip. I want to bring in Paula Hancocks. She joins us live now from Seoul. Paula, you know, as Biden

arrives in Seoul, all eyes, their turn toward North Korea and toward China. What message do you expect the President will try to send to these

countries?

PAULA HANCOCKS, CNN CORRESPONDENT: Well Alison, the main message he's trying to give by simply being here is that he is standing by his allies.

He wants this to be an economic partnership trip, he certainly starting it off in that respect as well by starting at that Samsung Semiconductor Plant

just after he landed.

Now there has been a severe shortage of semiconductors in the chips in the United States. It certainly hurt American manufacturing. It's something

that President Biden himself has been very focused on. And so this is really the message he was giving that there would be more economic

partnership with the South Koreans.

And certainly the message to China is the fact that they have been hurt badly by the supply chain issues. COVID he pointed out was certainly

something that has shown the fragility of the supply chain when it comes to elements like this.

And he also brought it back to Russia's invasion of Ukraine, saying again, that did hurt the supply chain and that they should not be working with

partners they didn't share values with.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES OF AMERICA: Putin's brutal and unprovoked war on Ukraine has further spotlighted the need to secure our

critical supply chains so that our economy, our economic and our national security are not dependent on countries that don't share our values.

(END VIDEO CLIP)

HANCOCKS: Now Samsung will also be building a $17 billion plant in Texas in the United States another reason why this is where President Biden started

his trip here? Meeting for the first time the new South Korean President Yoon Seok-youl now certainly economic partnership will be one of the key

things they'll talk about at their summit on Saturday tomorrow.

But clearly North Korea will be top of the agenda as well. It always seem to make sure that it is being talked about when anyone important comes to

the region, U.S. and South Korean intelligence saying that they both believe that it could be imminent another missile launch, it could be an

intercontinental ballistic missile according to intelligence sources, as well.

Now, this hasn't happened before that, that there was some kind of missile launch, while a U.S. President was in the country. It usually happens just

before or just afterwards to give some kind of message. But we are hearing from National Security Adviser Jake Sullivan that they believe it may

happen while or during or after President Biden's trip saying that they do have contingency plans if that were to happen, and they know exactly how

they would react.

They have spoken to their allies about that. So well clearly, this is a reassurance of allegiances of alliances, and President Biden showing that

he is able to concentrate on Asia at the same time as concentrating on Ukraine. It is also inevitably going to be talking about the two perceived

threats for the United States in the region and that is China and North Korea Alison.

KOSIK: Certainly would be brazen if North Korea did carry out that test. Paula Hancocks live from Seoul thanks very much. The United States has been

the world's leading maritime power for decades, but China and North Korea are increasingly flexing their military muscles, triggering changes in the

international security environment.

CNN's Blake Essig reports aboard the USS Abraham Lincoln off the coast of Japan as the U.S. looks to reassure allies and maintain a free and open

Indo-Pacific.

[09:05:00]

(BEGIN VIDEOTAPE)

BLAKE ESSIG, CNN CORRESPONDENT (voice over): If you ask the United States Seventh Fleet Commander Karl Thomas this is what deterrence looks and

sounds like.

VICE ADMIRAL KARL THOMAS, U.S. NAVY COMMANDER, SEVENTH FLEET: Deterrence to date has worked. And I'm hopeful that it continues to work, but my job is

to be prepared in case it doesn't.

ESSIG (voice over): For the past several months, the U.S. Navy carrier Strike Group III, led by the U.S.S Abraham Lincoln, an armed with U.S.

Navy's most advanced fighter wing has conducted joint drills with allies like Japan and patrolled the waters of the Indo-Pacific.

THOMAS: Being out here operating as a very visible, very agile, dynamic force. There's no better way to provide the deterrence that we need this

part of the reason.

ESSIG (on camera): This aircraft carrier brings massive firepower to the region its purpose to protect power, increased security, and serve as a

deterrent to countries like China, North Korea and Russia. But in a part of the world, seemingly more unstable by the day, the effectiveness of a

carrier strike group like this as deterrence to adversaries, called into question.

KEN JIMBO, DEFENSE ANALYST, PROFESSOR AT KEIO UNIVERSITY: We need to have a more robust, like minded states coalition because China's rise is now the

global phenomenon.

ESSIG (voice over): A reality that isn't lost on Quad member states, a coalition made up of the United States, Japan, Australia and India, whose

leaders are set to meet in Tokyo early next week.

With South Korea watching from the sidelines, member states are likely to discuss a unified response to Russia's invasion of Ukraine. The recent

flurry of weapons tests conducted by North Korea and of course, China.

RAHM EMANUEL, U.S. AMBASSADOR TO JAPAN: One of the things that China doesn't have its friends and allies. They have subjects we have friends and

allies who want to stand shoulder to shoulder with the United States.

ESSIG (on camera): Well, the Quad isn't NATO like mutual defense commitment. Continuing to upgrade security cooperation between Quad Member

States and other like-minded nations in this region is extremely important to maintaining maritime security.

ESSIG (voice over): But according to Cleo Paskal an Indo-Pacific Strategic Specialist, the key to combating China's rise isn't necessarily through

military strength.

CLEO PASKAL, SENIOR FELLOW, FOUNDATION FOR DEFENSE OF DEMOCRACIES: By the time you get to the military part, you're almost too late. You don't want

to cut off China militarily you want to block its influence politically and economically, first.

ESSIG (voice over): However, is China and Russia work to strengthen their own military alliances in the region Rear Admiral JT Anderson says the

U.S.'s presence along with the strength of its allies has proven to be an effective deterrent? Nevertheless, if that deterrent fails--

UNIDENTIFIED MALE: Our job is to fight and win period.

ESSIG (voice over): An outcome no one wants, but when the U.S. military and its allies must prepare Blake Essig, CNN onboard the U.S.S. Abraham Lincoln

in the Philippines.

(END VIDEO TAPE)

KOSIK: It is hell there those are the words of Ukrainian President Zelenskyy during his nightly address Thursday saying Russia has completely

destroyed the Donbas. Mr. Zelenskyy also said a Russian missile strike in the village of Desna killed civilians.

According to him, Russian forces are making a deliberate and criminal attempt to kill as many Ukrainians as possible. It's a different story in

Kharkiv, where President Zelenskyy says Ukrainian troops continue to advance to liberate the region. But he also noted Ukraine's monthly budget

deficit is now $5 billion, stressing that his government needs financial support. Now to the human cost of this war Sara Sidner brings us this

heartbreaking report on the people picking up the pieces of their lives after a Russian missile strike in Odessa.

(BEGIN VIDEOTAPE)

SARA SIDNER, CNN CORRESPONDENT (voice over): The moment a Russian missile slammed into an apartment building on Easter weekend in Odessa. Yuriy

Glodan's family was inside waiting for him to return from the grocery store.

YURIY GLODAN, WIFE AND DAUGHTER KILLED: On the way home that's when I heard an explosion. I felt immediately something bad had happened. I tried to

call my wife. She did not answer when he got there chaos. Police and EMS had arrived he and a bystander ran in to try and find his family.

We began to clear away the rubble and this is how alongside EMS staff we were able to find the bodies of my family all murdered.

SIDNER (voice over): First, they found his mother in law Lyudmila's body than his wife's body, but his three month old daughter was missing. They

were being told to leave for fear of a building collapse. I was constantly shouting, he says, there is still a child up there. Did you find the child

or not eventually they found her little body lifeless. He returned to find her blood soaked baby stroller the next day.

GLODAN: It's hard to live with this. My family was my whole life. I live for their sake. When my baby came along, I understood the meaning of life,

he says.

[09:10:00]

SIDNER (voice over): 19-year-old Oleksiy can't believe he is still alive. He was in the same apartment complex. The explosion sent slabs of scorching

hot concrete and shrapnel into his body.

OLEKSIY PARADOVSKIY, SURVIVED CRUISE MISSILE ATTACK: I realized that a rocket had hit my place and I started to burn he says. I thought another

minute, and I would definitely turn into ash I felt everything.

SIDNER (voice over): 20 percent of his body was burned his hands, arms, and back. Jagged pieces of shrapnel had to be removed from his legs as well. He

cannot do simple things for himself at the moment, but he is thankful for simply being alive.

PARADOVSKIY: It's a miracle for everyone for me as well he says.

SIDNER (voice over): Before the blast, he was preparing to take to the seas and work on a commercial supply ship. Now he's just practicing walking

again. His neighbor, once surrounded by family now walks alone.

PARADOVSKIY: We used to walk in the park when my wife is pregnant?

SIDNER (voice over): Every place he now goes in Odessa, a reminder of what a Russian missile took from him his wife, child and mother in law, now dead

and buried with each deadly strike, a new and terrible story is born in Ukraine. Sara Sidner, CNN, Odessa.

(END VIDEOTAPE)

KOSIK: The lawyer for the Russian soldiers standing trial in Kyiv for a war crime says Russia is to blame for the war and not the man who's in the

dark. Vadim Shishimarin has already pleaded guilty to shooting an unarmed Ukrainian civilian. The trial has been adjourned until Monday.

Let's bring in CNN's Melissa Bell. She is live for us from Kyiv. Melissa, I know the trial is done for the week. We are on day three what happened in

the latest court proceedings?

MELISSA BELL, CNN CORRESPONDENT: Well, it's been just an extraordinary week in that courtroom since what we've had painted for us, not just through the

testimony given by Vadim Shishimarin the defense provided by his lawyer the prosecution's case laying out the facts of it.

But also the testimony of another soldier who is with Shishimarin on that day is essentially a picture of some of the chaos from the Russian side of

those early days of the invasion. The bare facts of the case very briefly, Vadim Shishimarin is understood that he and several other soldiers were

traveling in a tank division that was heading across the Russian border when it hit a mine.

He and several other soldiers according to the prosecution's case, then escaped from that tank column, in a stolen car arrived in a village not

terribly far really far from the Russian border saw an unarmed civilian who was on his phone and outside his house and Vadim Shishimarin shot him.

Now, what we've learned from what happened was happening inside that car, is that it was an order that he was given to shoot the civilian for fear

that he might report them. Both soldiers explaining that really it had been a scene of panic Vadim Shishimarin had resisted the order, but it had been

given in such a way that he could not refuse.

And essentially, that is the novel also of the defense's case that these young soldiers didn't really know what they were going to do and that's

something Vadim Shishimarin said in his very poignant exchanges yesterday with that civilians' widow that they knew they were told to head in with

their column and they did not know what would follow. Here is what Vadim Shishimarin's defense lawyer had to say in court today.

(BEGIN VIDEO CLIP)

VIKTOR OVSYANNIKO, DEFENSE LAWYER: The leadership of the Russian Federation is to blame for this war, not this boy. He was trying to save his own life

especially from the threat that came from his fellow servicemen.

(END VIDEO CLIP)

BELL: So we will find out are on Monday at the end of an extraordinary week in that courtroom, Alison and having listened to that widow cross examined

Vadim Shishimarin and it was really very emotional asking him about how he felt he's expressed his remorse. He's expressed his regret but he is facing

life in jail and that is what we will find out on Monday we will get both the verdict of the court and the sentence that the 21 year old will face.

KOSIK: And until then, we will talk to you on Monday, Melissa Bell live for us from Kyiv thanks so much. Finland's main gas company says Russian gas

supplies to Finland will halt on Saturday morning. Gasum said it will keep its customer supplied with natural gas from other sources after that the

CEO says the company has been preparing.

Earlier this week Gasum said it would not pay for Russian gas and Rubles or use a scheme proposed by Russia's Gazprom to convert Euros to Rubles.

Coming up rising recession fears, how great is the risk? Moody's Analytics Chief Economist will join us with insight. Plus, Monkeypox alert the rare

disease now appearing in a number of countries including here in the U.S., details next.

[09:15:00]

(COMMERCIAL BREAK)

KOSIK: Welcome back! I'm Alison Kosik. U.S. Stock Futures are higher after the Chinese Central Bank unexpectedly cut a key interest rate. Futures for

the tech heavy NASDAQ are up right now about one and a quarter percent. S&P Futures they're rising as well after the index came close to falling into a

bear market.

European markets are also gaining a bit hopes that China's decision will boost the world's second biggest economy in Asia. We saw green arrows

across the board the HANG SENG jumping 3 percent and South Korea's KOSPI closing up about 2 percent.

Christine Romans joins us now I am so happy its Friday I don't know about you? What a week for Wall Street? But what's interesting is not much has

changed since that massive sell off on Wednesday till today except for that that rate cut in China, it feels like investors really want to grab on to

anything positive.

CHRISTINE ROMANS, CHIEF BUSINESS CORRESPONDENT: Yes, and maybe just to bounce quite honestly, you know, just sometimes when you get a lot of - big

down days, you have a little bit of a bargain hunting. And maybe that's what we're seeing here.

The S&P 500 has avoided for now by a whisper, that official bear market territory. There are plenty of people though; who think that is all but

inevitable Alison that you're going to see a bear market there. We're almost there and you tend to see investors tight kind of take a run for

something like that make that mark happen.

How shallow it will be? We don't know will it cause a recession or does it portend a recession? No one knows for sure what's going to happen next,

which is why this market has been just so wild. But you know this hasn't been a yo-yo market. This has been really a slow-mo lower moving market for

much of the year as investors really grapple with a whole new playing field here of higher interest rates inflation cans Central Banks and get it

right? And can we get COVID behind us? Oh, yes. And there's war in Europe as well so just a lot of cross currents Alison.

KOSIK: Yes, and you speak about those cross currents and you wonder what could be the next catalyst for Wall Street to sort of accept those cross

currents at this point know that they're going to be hanging around for a while and move higher. What do you see next as sort of the next driver?

[09:20:00]

ROMANS: I think we'll be really looking at all these earnings reports. Remember, it was Walmart and Target that really sparked so much of that

unease about what's happening with the consumer and how corporate profits and margins by the way, margins over the past decade have gotten so fat for

big companies.

I mean, its shareholders have just been relishing these big margins that companies and passing on higher costs to their consumers and the consumers

keep shopping. And they kept earning money. And then this week, we started to see some signs that maybe those margins couldn't stay so fat forever.

And that's what really got things tumbling on the downside.

So we've got a lot more earnings, you get through that it really paint the picture for how two years into COVID into this new world of supply chains

that must be made more resilient, that's going to take investments, that's going to take time, we're going to have to redraw the global energy map

that's going to take investment that's going to take time.

We could have for American consumers, we have a period of high energy prices, that's going to weigh on consumer sentiment. So there's just so

much going on here. I would say the next thing to really watch are these earnings and what these companies are telling us about this, you know this

brave new world.

KOSIK: Great context, Christine. Christine Romans thanks so much.

ROMANS: Have a great weekend.

KOSIK: You too. And these are the stories making headlines around the world. Health officials in the U.S. are investigating a confirmed case of

Monkeypox in Massachusetts, plus a suspected case in New York. There have been dozens more cases in several other regions around the world where the

virus is not usually common, including Canada, Great Britain, Italy and Spain.

CNN Health Reporter Jacqueline Howard joins me live now from Atlanta, Georgia. Great to see you, Jacqueline! I'm wondering what are health

officials saying then about this infection should we be concerned?

JACQUELINE HOWARD, CNN HEALTH REPORTER: Alison, CDC officials that I've talked to say that there is scientific concern but for us for the public,

no need to worry, no need to panic. But there are two reasons why scientists are investigating this and taking a close look, CDC Official Dr.

Jennifer McQuiston told me that one of those reasons is because these cases are occurring outside of a region in the world where they normally are

seen. Have a listen.

(BEGIN VIDEO CLIP)

JENNIFER MCQUISTON, DIVISION OF HIGH CONSEQUENCE PATHOGENS AND PATHOLOGY, CDC: This is a very unusual situation. Monkeypox is normally only reported

in West Africa or Central Africa. And we don't see it in the United States or in Europe. And the number of cases that are being reported is definitely

outside the level of normal from what we would see.

(END VIDEO CLIP)

HOWARD: So we heard there, Alison, she said this is outside the level of normal that we would normally see. And the second reason why scientists are

concerned with Monkeypox? We typically see the virus spread from animals to humans. The virus was first identified in the late 1950s and it was found

in lab Monkeys. That's why it was named Monkeypox.

And since then, we've seen transmission mostly from rodents to humans, but with these cases, the CDC official told me that some of them appear to be

spread among people. So we are seeing human to human transmission. And that's why there is this level of scientific concern.

Now overall, Monkeypox is still rare, no need to panic. But again, because this is happening at a level that's abnormal, because it's seen outside of

the region of the world where it's typically found and because we might be seen human to human spread all of those reasons are why scientists are

investigating this, Alison.

KOSIK: OK, Jacqueline Howard, thanks very much! A setback in China in battling the latest COVID outbreak; Shanghai is reporting three new cases

outside quarantine areas, after local officials declared the city had eliminated community spread.

And in Beijing, two large districts have been partially locked down after clusters of COVID cases were detected. North Korean state media are

reporting that the country's' so called fever cases have surpassed 2 million since late April. The secret of nation is scrambling to contain a

COVID outbreak which it claims began two and a half years after the virus was detected globally. CNN's Will Ripley looks at how North Korea's

outbreak has spread so quickly?

(BEGIN VIDEO TAPE)

WILL RIPLEY, CNN CORRESPONDENT (voice over): The mood was triumph the crowd massive, most people not wearing masks at last month's military parade in

Pyongyang. North Korean Leader Kim Jong-Un promised to protect his people from hostile forces like the U.S. Protection from the virus that would soon

ravage his unvaccinated population non-existing.

Weeks later, devastating fever believed to be undiagnosed COVID-19 infecting and killing some of Pyongyang's most privileged citizens.

CHAD O'CARROLL, MANAGING DIRECTOR, NK NEWS: The military parade was a super spreader event, and we know that they flew in citizens from across North

Korea.

RIPLEY (voice over): Some of those citizens from the Chinese border region a place I visited five years ago North Koreans are living a literal stone's

throw away from the raging Omicron outbreak in China.

[09:25:00]

RIPLEY (voice over): Beijing pledged to help Pyongyang battle the outbreak, the hermit kingdom's hermetically sealed border, apparently breached by the

highly contagious variant.

Two years of pandemic isolation two years of sacrifice gone in one parade.

O'CARROLL: That's the perfect petri dish for this virus to spread. So I think that that parade will go down in history as a very bad idea for North

Korea.

RIPLEY (voice over): A colossal miscalculation and experts say the likely cause of North Korea's explosive outbreak and unprecedented nationwide

lockdown, skyrocketing infections and deaths a dilapidated healthcare system on the verge of collapse lacking even the most basic medicines and

medical equipment, millions of malnourished North Koreans are at higher risk of severe infection.

O'CARROLL: I think it's going to test his leadership certainly, and it's going to create some urgency for very creative storytelling in the North

Korean propaganda apparatus.

RIPLEY (voice over): North Korean propaganda, crucial to keeping the Kim family in power, even during times of crisis, like the deadly famine of the

late 1990s when citizens literally a tree bark to survive the Kim's rule over a police state that relies on heavy surveillance, restricted movement

and brutal political prison camps.

LINA YOON, SENIOR KOREAN RESEARCHER, HUMAN RIGHTS WATCH: They strengthened social controls because they had the fear that you know, if there is an

outbreak there if there is a crisis. That was what happened in the 1990s. That you know, the police, the secret police, the military, they all went

hungry.

RIPLEY (voice over): Now they're getting sick. State media says around 2 million fever cases in one week, a crisis of Kim's own creation, and

potentially devastating hardship for the North Korean people. Will Ripley, CNN, Taipei.

(END VIDEO TAPE)

KOSIK: Stay with CNN "The Market Open" is next.

(COMMERCIAL BREAK)

[09:30:00]

KOSIK: Welcome back! I'm Alison Kosik in New York. And there you have it U.S. markets are up and running. The DOW, S&P and NASDAQ all recovering

some ground this morning at the end of another volatile week that included Wednesday's big sell off the DOW losing 1100 points.

This Friday, the Chinese Central Bank cut a key interest rate giving a boost to investor sentiment around the world. Meantime, shares of another

U.S. retailer are tumbling. We are watching shares of Ross Stores. They're under pressure after disappointing earnings. But Footlocker as you can see

is jumping after its quarterly profit beat Wall Street estimates.

Joining us now Mark Zandi, he's the Chief Economist at Moody's Analytics. Great to have you with us today, Mark!

MARK ZANDI, CHIEF ECONOMIST AT MOODY'S ANALYTICS: Hi, Alison.

KOSIK: So we have been watching market getting crushed. You know, it's not just the market, though it's you know, from Wall Street to Main Street, the

big worry here is a possible recession. So how high is our risk of recession here in the U.S?

ZANDI: Well, I'd say uncomfortably high Alison. I put the odds at about one in three over the next year and close to even odds over the next two years.

I mean, we're grappling with very high, painfully high inflation, and the Fed is working really hard to get that inflation down. But that means

higher interest rates.

And that, of course, creates all kinds of adjustments to the stock market into the housing market into the broader economy. So it's a pretty tricky

time. And of course, adding to the complexity of it all is that the pandemic is still on, it's still creating havoc in places like China and

scrambling supply chains.

And of course, the Russian invasion of Ukraine is still creating havoc in oil and other commodity markets. So there's a lot going on here. So the

risks are awfully high.

KOSIK: Yes, we talk a lot about a lot of crosscurrents going on and the Fed somehow has to get a handle on this. And everyone's questioning whether or

not the Fed is going to be successful in the so called soft landing? What are your thoughts about that?

ZANDI: Well, I think they're up to the task, you know, I still think better than even eyes with that we navigate through it. That's partly that I think

that the Fed will be able to calibrate monetary policy that is, raise interest rates, just enough slow growth, bring down inflation, but not

raise rates so far, so fast that it undermines economic activity.

And I'm also assuming and expecting that the worst of the pandemic is behind us, and that, you know, we'll have new waves of the virus, but each

wave will be less disruptive than the previous one. And that the worst of the economic fallout from the Russian invasion is also behind us.

So you know, we need a little bit of luck here, on the pandemic and the fallout from the Russian invasion, and, you know, some depth policymaking

by the Fed, but I think they're up to the task, but a really close call.

KOSIK: I'm curious what you're going to be watching what leading indicators will you keep an eye on as you gauge whether we know when this downturn

could come? You know as we've watched, all these factors play out?

ZANDI: Well, a whole bunch of indicators. I'll point out one, Alison, and that's consumer confidence, you know, the consumers are pretty dour right

now. I mean, they've been through a lot that the high inflation is really wearing on the collective psyche, high oil prices and food prices is really

making people doubt.

And, of course, you know, two years of the pandemic, this really weighed on sentiment. But the real leading indicator here is if sentiment collapses,

if it falls very sharply in two, three month period. That's because at the end of the day, a recession is a loss of faith, you know, faith that I'm

going to hold on to my job as a consumer, and I'll pull back a faith as a business person that if I produce something that there'll be somebody out

there to buy it.

So sentiment is really, really important a turning point. So if we see a big decline in sentiment for two, three months, I think that'd be an

indication we're going into recession.

KOSIK: Some may say by watching earnings, let's say from Target and Walmart, we're sort of seeing the canary in the coal mine as far as how the

consumer feels. At the same time, we're seeing home improvement chains like Home Depot and Lowe's, they're looking strong. So we are seeing this

disparity and how the consumer is acting though.

ZANDI: Yes, I think consumers so far they're hanging in there. You know, they haven't lost faith. I mean, there's lots of a job unemployment is low

debt services low, you know, they're in good shape.

I think what we're seeing among the retailers is they're grappling with the high inflation. They're grappling with the fact that what they're buying is

now costing a lot more. They're grappling with the high diesel prices because the cost to shipping goods around they're grappling with the higher

wage costs so it's cutting into their earnings.

[09:35:00]

ZANDI: I think overall spending is just fine at least so far. So, you know, consumers in the game, and as long as they are, we're going to remain

recession free. But that's why we have to keep all eyes on the consumer.

KOSIK: Crystal Ball this for me this time next year, May of 2023 what do you see for inflation? You know food and car prices and even the housing

market? How are things going to look a year from now?

ZANDI: Yes, I expect them to be lower. I mean, I think the worst of the supply chain disruptions should be behind us, we'll get more vehicle

production, which will mean that we'll get vehicle prices down.

I think the worst of the Russian invasion will behind this, think oil prices, and then we'll get more supply because of these higher prices

creating profits for the energy companies will produce more oil and we'll get prices down on oil. And I think the economy will cool off obviously,

given the higher rates that the Fed is implementing, and that'll take some of the pressure off of the labor market and wage growth.

So I expect that inflation will be meaningfully lower a year from now moving in the right direction. If that's the case, and then the most likely

outcome here is we'll navigate through without going into recession.

KOSIK: We can only hope Mark Zandi, Chief Economist at Moody's Analytics, great to have your perspective today.

ZANDI: Sure thing Alison.

KOSIK: Stay with "First Move" coming up a new reality shared by many Ukrainians. We're joined by a man who left his job in real estate to fight

for his country.

(COMMERCIAL BREAK)

KOSIK: The war in Ukraine has seen countless civilians put their day jobs on pause as they join the war effort. My next guest is one of them. Ivan

Matveichenko a real estate investment and management firm before the war. Now he's fighting with Ukrainian army. And he joins us now from Ukraine.

Thanks so much for joining us today.

IVAN MATVEICHENKO, FIGHTING WITH UKRAINIAN FORCES: Thank you for having me.

KOSIK: So talk us through this. How did you come to the decision to go from you know, working in real estate in real estate investment. Basically

corporate America suit and tie I saw your LinkedIn you're in a suit and tie and I saw part of your resume there. You know you've been a CFO, how did

you decide to go from corporate America to the frontlines and fight for Ukraine?

MATVEICHENKO: Well, I think my story is pretty typical for almost every Ukrainian. What happened is when the war started, I took my wife and kids

to a safe place, and then ultimately to Europe.

[09:40:00]

MATVEICHENKO: And then I went and to a recruiting station to join an army. I wasn't accepted first, because I don't have any military background, or

military training. But then a couple of weeks later, they called me and accepted me. And so I went through training. And right now I'm waiting for

transfer to battle brigade and to ultimate deployment to the frontlines.

KOSIK: I hear that you went for training, but you don't have a military background, you say, so, how scared were you when you picked up your first

weapon?

MATVEICHENKO: Right. I mean, it's - I was more scared when I saw pictures from Bucha. This is a town where my parents live. They bought a house there

and we're supposed to move in to a new house on February 27th. So three days after the war started.

And I think everybody saw what happened there all the war crimes. And you know, once I saw those pictures, basically, any self-preservation instinct

that I had was surpassed by a willingness to join an army and fight Russian threat.

KOSIK: And how does your wife feel about this?

MATVEICHENKO: Well, she's worried. At first it was difficult to convince her that I should go and do that. But as time goes on, and we realize that

we need to have everybody who's - who can hold a gun in the army. It got better. So her kind of used to that at this point. But she's still very

worried. We talk with her every day.

KOSIK: Can you describe what it's like to be on the frontlines fighting for Ukraine? Have you gotten to any difficult moments where you thought this

could be it?

MATVEICHENKO: I haven't been to the first line of contact, which is, you know, where the most heated battles go on. As I said, because I didn't have

any military training I was assigned to, to a security platoon.

And our job was to basically guard infrastructure objects across Ukraine. But I should be going on my first deployment and first frontline next

couple of weeks. So I haven't experienced that, you know, serious battle engagements. But I'm going do that over the course of the next weeks.

KOSIK: How do you feel about that because that's taking a completely different step?

MATVEICHENKO: Well, it is a little bit scary, but you know, you got to do what you got to do. We're fighting on our own land, we did not invade

anyone. And we know what we fight for. And we don't have any other choice. So that makes it much easier.

KOSIK: I understand you've started a change.org petition. What was that for? And, you know, how many contributions have you gotten? And how's it

going?

MATVEICHENKO: It wasn't me who started this petition. It was one of the wives of Azov Regiment fighters who are trapped in Mariupol. And this

petition already gathered I believe, over a million and a half signatures. But at this point that evacuation from Mariupol has already started. I

think that, you know there is no need to further promote this petition.

What we should do right now is just to watch how things unfold in Mariupol? And hope that Russians will keep their word and we'll exchange Ukrainian

soldiers for Russian prisoners.

KOSIK: What message do you have for any loved ones watching you right now? MATVEICHENKO: Well, for my loved ones, I just wanted to say that I love

you. Nothing new there but I do have a quick message for American people. I want to thank from the bottom of my heart and on behalf of all Ukrainians.

A big thank you to all of you guys for helping our resistance without you it wouldn't have been possible. And we know that you sacrifice your

economic comfort to do that. So we really appreciate everything you do and we will win this together, So Glory to Ukraine and Glory to American

people.

KOSIK: All right. Ivan Matveichenko, we wish you the best. Thanks for joining us from Ukraine.

MATVEICHENKO: Thank you very much.

KOSIK: Ukraine's ongoing counter offensive around Kharkiv has made that city much safer than it was just a few weeks ago. Now some residents who

evacuated are venturing back to reunite with loved ones and see what's left of their homes. Dan Rivers has this report.

[09:45:00]

(BEGIN VIDEOTAPE) DANS RIVERS, CNN CORRESPONDENT (voiceover): The siege of Kharkiv was documented for us in March in this video diary.

ANASTASIYA PARASKEVOVA, KHARKIV RESIDENT: Last night was probably the most terrifying night of my life, had to go was terribly bombarded.

RIVERS (voice over): Anatasiya Paraskevova film the destruction and her emotions, giving a harrowing insight into this war.

PARASKEVOVA: Airstrikes all over the city. Dozens of buildings destroyed civilian buildings where people live.

RIVERS (on camera): Today she's returned to her home city for the first time she's with her mother after staying with friends in the relative

safety of Poltava a two hour drive from Kharkiv. They haven't seen her father for almost two months.

PARASKEVOVA: He says it is time to come back.

RIVERS (voice over): In her video diary Anastasiya showed where she took refuge in her flat. A home she was forced to leave without knowing if she'd

ever see it again.

PARASKEVOVA: This is our hiding place. It's a vestibule area between two walls with no windows. I don't know why but being bombarded is easier to

live with your home.

RIVERS (voice over): But today Kharkiv is much safer. She's come back to check on her apartment.

RIVERS (on camera): Does it feel strange coming back?

PARASKEVOVA: Yes. Oh, my room. It just feels odd because it's so not usual like it's supposed to be you know, I just for some reason thought that I

will return and all the furniture will be standing the right way sorry my bed - Poltava bed.

RIVRES (voice over): Her flat is undamaged. But you don't have to go far to see the consequences of Russia's bombing.

PARASKEVOVA: When we're still a heck of this was the closest first the closest large explosion. We heard incredibly loud noise and also the

windows and the doors in the house were shaken. And this was it.

RIVERS (voice over): --peeled off by the blast, which have laid bare lives ruined in an instant. The random nature of what survived and what didn't is

on display, like an exhibit in a museum. That this war is not in the past around the edge of this city, it is very much in the present. The attack on

the city's Town Hall marked the beginning of the siege.

Today almost in an act of defiance flowers have been planted in front of it. For Anastasiya it is a sign Kharkiv will recover.

RIVERS (on camera): This building was the heart of Kharkiv. Would you say Kharkiv heart has been broken?

PARASKEVOVA: Yes, I would say so for sure. When this - it was the most excruciating thing to see this building, rocketed.

RIVERS (voice over): Anastasiya has returned to a city scarred by this war, but one in which its citizens are beginning to glimpse normality again. And

in the warm spring sunshine there is something that's been absent for the people of Kharkiv of under Anastasiya for so long hope, Dan Rivers ITV

News, Kharkiv.

(END VIDEOTAPE)

KOSIK: Coming up heading to the stars. Boeing Starliner leaves on another test flight in an unmanned mission to the International Space Station,

details after the break.

(COMMERCIAL BREAK)

[09:50:00]

KOSIK: Boeing's Starliner Spacecraft launches into space. It's the third unscrewed test mission for the rocket, which is now on its way to the

International Space Station. I want to bring in Rachel Crane. She joins us live.

So Rachel, this Starliner is actually a space taxi, right? And it's had some hiccups with this mission because it hasn't completed its flight to

the space station. So how are things going?

RACHEL CRANE, INNOVATION AND SPACE CORRESPONDENT: That's right, Alison. This is actually the third launch attempt for Boeing with Starliner. As you

pointed out, this is an un-crewed mission. They knew it needs certification from NASA before they can start flying humans in this.

And the intention of the Commercial Crew Program which was a program from NASA that actually birth this spacecraft here are called Starliner also

SpaceX is Dragon was to replace the shuttle program. And what we saw yesterday was finally a successful launch of Starliner. And it is on its

way right now to rendezvous with the International Space Station.

So third time was the charm, Alison but it wasn't without a few road bumps. Boeing said in a press conference following yesterday's launch that two of

12 thrusters onboard the spacecraft actually failed. Luckily, they were redundancies in place and the spacecraft was able to correct for that

failure. Take listen to what Mark Nappi Boeing Vice President had to say about it.

(BEGIN VIDEO CLIP)

MARK NAPPI, MANGER, BOEING COMMERCIAL CREW PROGRAM: Now the team is working - is why we had those anomalies occur. We have a safe vehicle and we're on

our way to the International Space Station. This is a test flight. So we're going to learn and this is one of the items that we will learn some lessons

from, and we'll make the adjustments as we go.

(END VIDEO CLIP)

CRANE: So Alison, Boeing hopes to fly humans in this spacecraft before the end of the year. But that's probably a goal. That seems unlikely. As we

pointed out earlier, this is a program that's been plagued by failures and delays.

But yesterday's launch, that was a major step forward for the company. And of course, NASA and Boeing both very happy about this $4 billion of

taxpayer money here in the U.S. has been sunk to create that spacecraft.

So Boeing, NASA and taxpayers all across the country very happy with the way this mission is going so far. But of course, there are several major

milestones ahead before we can call this mission success.

This spacecraft has to dock with the International Space Station. That should be happening at 7:10 pm, Eastern this evening. It will stay on board

for a few days before making its return through the Earth's atmosphere and make a parachuted landing back in the U.S.

So Alison, you know, a reminder, just how hard space travel is when you look back at this program? Again, this was a successful launch today, but

without a few hiccups. But of course, as we heard Mark Nappi, say these are learning lessons and they're going to get to the bottom of what happened

here, Alison.

KOSIK: Very quickly, Rachel, you know, you think about the competition that Boeing is under with Elon Musk's SpaceX with the kinds of missions?

[09:55:00]

CRANE: That's right, Alison at one point actually SpaceX was the underdog when these contracts from NASA, these multibillion dollar contracts were

first issued. You know, Boeing has a lot of space heritage with NASA they were, you know, the main contractor on the International Space Station.

So SpaceX was thought of as the underdog. But as we saw SpaceX beat Boeing, to the International Space Station; SpaceX has already had five crewed

launches for NASA.

And here, you know, Boeing is just trying to get certification for a test launch.

So certainly SpaceX has beat Boeing in this particular race back to the International Space Station. But NASA is very eager to have a redundant

system to get back to the International Space Station.

Of course, it's never good to have all your eggs in one basket when it comes to space travel, as we've seen with this program, and time and time

again--

KOSI: Right.

CRANE: --you know, there are delays, and there are failures and you always want to have a backup when you can Alison.

KOSIK: Yes. Plan B they don't call it a space race for nothing. Rachel Crane thanks so much. And that's it for the show. I'm Alison Kosik. You can

follow me on Instagram and on Twitter @alisonkosik. Thanks for joining us, "Connect the World" with Eleni Giokos is next, have a great weekend.

(COMMERCIAL BREAK)

END