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First Move with Julia Chatterley
UK PM Boris Johnson Booed during Jubilee Event; U.S. & South Korea Launch Eight Ballistic Missiles into Sea; Investors Dealing with Inflation and Inflation risks; UK PM Boris Johnson to face vote of confidence Monday; Ukraine: Russia Launched 5 Cruise Missiles Toward Kyiv; Twitter Shares fall as Musk Warns on Takeover Deal. Aired 9-10a ET
Aired June 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, CNNI HOST: You're watching CNN. I'm Julia Chatterley in New York. And the future had the British Prime Minister Boris Johnson could
be decided in the coming hours. He faces a confidence vote later today. That's where lawmakers from his own Conservative Party will decide if they
still want him as a leader.
It requires 180 votes to out Johnston as leader. That's the simple majority, and moments ago, Boris Johnson met with the Prime Minister of
Estonia Kaja Kallas visited Mr. Johnson in Downing Street in the last hour. And we will bring you pictures of that engagement very shortly. For now
Nada Bashir oh, actually, we have those now. Here we go.
This was him earlier, meeting the Estonian Prime Minister ahead of that confidence vote. Nada Bashir joins us now with all the details from Downing
Street. Great to have you with us! A Platinum Jubilee hangover for the Prime Minister it seems that this morning, no time to lose.
I think the key point here is the numbers. It takes just 54 letters from MPs to trigger this confidence vote within the Conservative Party. It
requires 180 of them now to say, look, we've had enough with him. How's it looking for the Prime Minister?
NADA BASHIR, CNN REPORTER: Well look, Julia Chatterley been a busy morning. We have seen already conservative MPs and particularly their senior
ministers coming out, some of them pledging their support publicly for the Prime Minister. We've heard from the Chancellor, Rishi Sunak, we've heard
from Liz Truss the Foreign Secretary. And as well, we've heard from the Deputy Prime Minister Dominic Raab.
He actually spoke to UK media earlier this morning and said he predicts a very clear mandate for the Prime Minister from this vote of confidence. But
as you mentioned that it's that key figure they need more than 50 percent. That's 180 plus one MPs to vote in favor of the Prime Minister.
And that is significant for a number of reasons. There could be perhaps some support for him coming because we're seeing two very key bi-elections
coming up, they might want to distract the focus away from now we obviously saw this Conservative Party suffer some pretty significant losses in the
local elections, in early May.
There's also, of course, a diplomatic focus on the war in Ukraine, this might not be the best time to look at a leadership challenge. And of
course, there's the question of who will replace Boris Johnson even if there were a leadership challenge? There isn't a clear front runner in that
instance so that might dissuade Conservative MPs from voting against the Prime Minister.
But of course, we have also heard significant opposition over the last few weeks and indeed over the last few months and that rebellion has been
bubbling on the Prime Minister really coming under fire for his involvement in the party gate scandal. That all important cabinet office sue gray
report was released just over a week ago and really gave a damning and full account of the extent of the parties and social gatherings, which took
place both here at Downing Street and also at other government buildings.
The Prime Minister photographed several times at different gatherings at a time when the country was under strict COVID regulations. So he has
certainly come under fire. The question now is whether that will be enough to push conservative backbenchers and MPs to vote against the Prime
Minister and trigger a leadership challenge?
We've heard from Downing Street this morning the Prime Minister has said he's welcomed the opportunity to put the distraction of the past few months
behind him to draw a line on the scandal. And that is certainly what he has been saying throughout these last few weeks or months during the party gate
scandal.
But the question is now whether the MPs do want to draw a line? Whether they want to move forward and focus on those policy priorities, as the
Prime Minister has so often said, or whether it is time for a change or for a shake up within the Conservative Party, Julia?
CHATTERLEY: You raise a great question that has to draw a line under this and move on the question is can they even if he survives this? Nada Bashir
we shall see in the coming hours, thank you for joining us there from Downing Street.
Now this vote comes hot on the heels of the Queen's Platinum Jubilee marked by a weekend of extravagant celebrations that also highlighted Boris
Johnson's flagging popularity, just take a listen to this. That's the British public booing is the Prime Minister and his wife left a special
Jubilee Church service, on that Saturday, this weekend. Max Foster joins us now with more on this.
Max, I think a lot of people picked up on that booing and how popular he is or unpopular he's become it's not just about party gate, as now there was
suggesting there there's a whole host of challenges that this government faces, indeed, in terms of policy to react to the cost of living crisis
that people are facing in the court of public opinion. How does the British public feel about Boris Johnson and his future?
MAX FOSTER, CNN LONDON CORRESPONDENT: Well, you know, I was at St. Paul's I did hear that booing but then I went to other events on Saturday night. For
example, I was in a big crowd and Boris Johnson turned up and booing again and that is the sort of the trend as it were and on social media seeing
lots of negative words about him as well.
[09:05:00]
FOSTER: But the polling is negative as well for him amongst the public. And I think this is going to be a really central theme in everyone's thinking,
as they go into that vote tonight, because, you know, there will be lots of, you know, ministers who will be voting, they will lose their jobs if
they lose Boris Johnson, because there'll be a big shake up. So that might make them want to vote for Boris Johnson.
But there'll be others thinking ahead to the elections and Nada was suggesting a couple that are coming up, but then the broader general
election, if Boris Johnson is unpopular, then he could cost me my seat. And that's going to be the most damaging part to this, for that vote tonight.
But speaking to all the experts and various MPs, most people do feel that Boris Johnson might scrape through tonight, and then we ended up with a
question of how bad will this look for him? And how much will it damage his credibility?
So, you know, there needs to be 180 votes to for him to lose the entire vote, and then he'd be expected to resign. But what if he, you know, gets
100 votes against him, that's very damaging to him. And over the next year, he'll be protected for a year there can't be another vote of confidence.
That'd be a very rocky road for the government and the conservative party. So either way, it's all looking pretty negative for British politics.
CHATTERLEY: Yes, it's going to be an interesting few hours, Max, great to have you with us Max Foster, joining us there from London. And just a
reminder, that crucial vote takes place from 1 pm Eastern time 6 pm in London. We'll have more on this story later in the program and stay with
CNN, of course for all the latest updates throughout the day.
But now, we'll move on President Putin threatened Russian strikes on new targets if the West delivers long range weapons to Ukraine. He warns the
deliveries will prolong the war.
(BEGIN VIDEO CLIP)
VLADIMIR PUTIN, PRESIDENT OF RUSSIA: In general, all this fuss around additional weapon deliveries, in my opinion, has only one goal to drag out
the armed conflict for as long as possible. If they are supplied, we will draw appropriate conclusions from this and use our own weapons of which we
have enough in order to strike at those facilities. We are not targeting yet.
(END VIDEO CLIP)
CHATTERLEY: Ukraine says the weapons could be a game changer in the battle in the east and this is where Moscow is now focusing its attacks the key
cities of Sloviansk and Severodonetsk under fresh assault this morning.
In Severodonetsk Ukraine report street fighting and says Russia is sparing neither men nor equipment and its fight for the city. Ben Wedeman joins us
now. Ben I want to focus in on what we're seeing in the east?
We heard from the Ukrainian President last week saying that Russia now controls around 15 percent of the country. Fast forward to this weekend and
there be some suggestion that Ukraine was regaining territory in the east. Clearly this fierce fighting what is the latest status?
BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well yes, what we heard last week, Julia was we felt it by the end of the week that the
Russians controlled about 80 percent of that City of Severodonetsk, which is about an hour and a half 45 minute drive to the east of here.
Over the weekend, Ukrainian officials say that they really were able to regain some of that lost ground within the city. But today Monday, the tide
seems to have turned again and the Russians are pushing the Ukrainians back.
Now, what's interesting is that overnight, the President Volodymyr Zelenskyy actually came to the town of Lisichansk, which overlooks
Severodonetsk, or rather; he came to the area of Lisichansk. So they're clearly very concerned with the situation there.
Ukrainian officials are describing how the Russians are pursuing their goals in that city as essentially scorched earth tactics. The problem, of
course, is that there are still around 15,000 people in that city. And of course, given the intensity of the fighting at the moment, it's very
difficult for any of them to get out, Julia.
CHATTERLEY: Just part of the challenges, of course, that the country continues to face. Ben, I also mentioned the comments from President Putin
about the prospective the provision of longer range weaponry to Ukraine, and the risk that they would then tackle targets that perhaps they haven't
done, so before. We can question what he meant by that, whether it's in Ukraine or beyond, but if we're talking specifically about Ukraine, what
might that mean?
WEDEMAN: Well, the goal of - these are called high mobility artillery rocket systems. These I read, it's like artillery with the precision of a
sniper scope, and they fire long range missiles. So that would allow the Ukrainians to sort of counterbalance the advantage the Russians have in
terms of artillery.
The Russian is certainly in the eastern part of the country and I've seen this I are using artillery on a massive scale. They're essentially some of
these towns they're just completely flattening in order to just drive right through.
[09:10:00]
WEDEMAN: So when the west and of course, we've heard the Americans are going to provide these weapons, and we heard from the British Defense
Ministry that they would also provide these weapons, these would perhaps, help turn the tide to fight to sort of push the Russians back in the
Eastern part of the country.
But really, the problem is time is of the essence. It's very nice that the British came out and made this announcement today. But the Ukrainians want
to know, that's great, fine, thank you very much. But when are the weapons actually going to arrive Julia?
CHATTERLEY: And weeks away, perhaps from delivery Ben Wedeman great to have you with us, thank you. A combined show of force by the U.S. and South
Korea, the two countries launching eight ballistic missiles into the sea after a North Korean missile test over the weekend.
That launch was the north third missile test since South Korea's new President took office a month ago. Paula Hancocks joins us now, with all
the details. Paula, it was eight for eight, I believe it reminded me of that song.
Now, whatever you can do, I can do better, or at least equal to in this case, we seem to be looking at rocket diplomacy, which ties I guess, to a
tougher stance on the new South Korean President who said, we're not going to stand for this.
PAULA HANCOCKS, CNN CORRESPONDENT: Well, this is I mean, this is the true sense of the phrase tit for tat, isn't it Julia? The fact that there were
eight on Sunday morning, local time from North Korea, and then eight in response by the U.S. and South Korea on Monday morning now pointing out of
course, all of these was fired into the sea off the east coast of Peninsula so it wasn't engaging either side engaging each other.
But what is interesting is what we saw from North Korea is the fact that Japan's Defense Minister actually called it unprecedented. There were eight
missiles, short range ballistic missiles, but they were all fired from four different locations, some multiple sites within about 14 minutes of each
other. So that is, North Korea, stepping up what they are testing at this point.
So that's why the U.S. and South Korea felt the need to have what they call a show of force in response. Now, it's not the first time that it's
happened. They also did this back on May 25th, the last time that North Korea fired, launched missiles, and that was just after the U.S. President
Joe Biden had left the region he was here in Seoul and also in Japan.
And it has also happened with the previous administration with the Former South Korean President Moon Jae-In, but certainly not as often as he was
very much pro engagement and pro negotiation with North Korea.
But it's not unheard of that this is the kind of response that we have from the U.S. and South Korea, the JCS the Joint Chiefs of Staff here in Seoul
say that it is to show that they know exactly where these launchers are coming from when they come from North Korea, and they would be able to
target that particular location should they so desire, Julia.
CHATTERLEY: And you make a very good point that these were all tests into water and not rockets directly fired at each other. And I just want to
reiterate that point. But it also does come at a time when they are rising fears that perhaps North Korea is preparing for nuclear tests. And we've
had comments, even just today from the International Atomic Energy Agency also perhaps pointing in that direction too critically important to
understand the timing.
HANCOCKS: That's right, yes, so the IAEA has said this today that they believe that there are indications they've observed indications that one of
the entrances to one of these underground tunnels, which is where that the previous underground nuclear tests have taken place, has actually been
reopened.
And it could be for a possible preparation of a nuclear test. It's very similar to what we've heard from U.S. and South Korean intelligence and
military agencies saying that they believe actually the preparations are completed. That's certainly what we've heard from the South Korean side.
In fact, the U.S. side was saying they believe that it could have happened while President Biden was in the region, now it didn't. But what of course,
this tells us at this point, according to experts is that if the preparations are ready, it is now up to the Leader Kim Jong-Un to make a
political decision when and if he wants to carry out this seventh underground nuclear test.
It would be a step up from what we're seeing at the moment missile launches. Yes, they are condemned. Yes, there is some kind of sometimes
physical response from the U.S. and South Korea was we saw in the early hours of this Monday morning, but a nuclear test is beyond that, once
again.
In fact, the IAEA said that it would be a cause for serious concern, reminding us once again, it is a violation of United Nations Security
Council resolutions as are many of these ballistic missile launches as well.
[09:15:00]
HANCOCKS: But certainly if there was number seven of these underground nuclear tests, the repercussions could be far greater, Julia.
CHATTERLEY: And the message is they're being watched I think to your earlier point, Paula Hancocks, thank you for that. OK, let me bring you up
to speed now with some of the other stories making headlines around the world.
In Bangladesh and massive fire to contain a depot has left at least 49 people dead and more than 300 injured. Officials say several firefighters
have died trying to extinguish the flames, which had been burning at the facility on since Saturday.
The fire is mostly contained, but some of the chemical containers have exploded complicating the operation. And close to 50 people were killed on
Sunday after gunman stormed a Catholic Church in Southwest Nigeria and opened fire according to a local lawmaker.
Authorities say they cannot yet confirm the total number of casualties, nor can they identify who is behind the attack. Stephanie Busari is in Lagos
for us and joins us now. Stephanie, admittedly, that's what the authorities are saying but what more do we know? And what about hopes for working out
who actually did this and finding them?
STEPHANIE BUSARI, CNN DIGITAL SUPERVISING EDITOR, AFRICA: So Julia, in the past hour, we've been speaking to officials in Nigeria, and they have said
that they've counted more than 50 bodies. So as we expected, the death toll in this gruesome attack will rise.
We had initially 28 people at least, but now they're saying that's more than 50 people and that is expected to rise. And still no clear indication
about who was behind these attacks? In previous attacks, which have happened in northeast, it has similar kind of hallmarks, with large groups
of armed men on motorcycles, storming a building and abducting attacking people.
So very similar what is different here is that this part of the country is very, very peaceful. No previous incidences, such as this have happened in
this very peaceful and stable part of the country. And that is let's concerns that this is going to lead to more violence in different parts
where we haven't seen it before, as the election primaries and election season ramps up.
And also, I've been speaking to a woman whose parents sadly, both died in this attack. And they - she said she has been to the mall this morning and
has seen a lot of elderly bodies and children who were the primary victims of this terrible attack Julia.
CHATTERLEY: Heartbreaking, our thoughts and heart with all those people involved. Thanks for that Stephanie, great to have you with us. OK,
straight ahead, the British Prime Minister's career hanging in the balance. We speak to one of the lawmakers deciding his fate. And Russia targets
Ukraine's Capital for the first time in weeks, we're joined by Kyiv's Mayor to talk about the city's fight, stay with us.
(COMMERCIAL BREAK)
[09:20:00]
CHATTERLEY: Welcome back to "First Move"! It's the start of a new week on Wall Street U.S. stocks look set to open higher for the first time in a few
sessions. Now what we saw last week is pullback with the tech in the lead. That's the picture that we're seeing at this moment higher by 1.6 percent
for the NASDAQ.
Europe as you can see on the board there also in the green solid Asian session too, the HANG SENG rallying almost 3 percent a relative
outperformer in fact the HANG SENG this year compared to other major indexes, it's down 7.5 percent compared to an almost 8 percent drop for the
German DAX and a 13 percent drop for the S&P 500.
Just to give you some context there Hong Kong high today is COVID lockdowns begin easing in Beijing indications that China's almost a year-long
crackdown on tech may be widening down too - winding down too.
"The Wall Street Journal" reporting that Beijing is wrapping up its national security review of the ride hailing app Didi and other tech firms.
Didi who reportedly be allowed back on Chinese app stores and will be allowed to sign up new users once again.
The big question of course is whether more benevolent Beijing changes did his decision to delist from the United States and relist in Hong Kong? I'll
give you one guess China's outlook, just one uncertainty that has Wall Street raising the alarm on the global economy.
Black Rock CEO, Larry Fink telling Bloomberg he expects inflation to remain high for years, partly because of the disruptions in the global supply
chain. And just last week, JP Morgan CEO Jamie Dimon warned investors to brace themselves for economic hurricane and add in Elon Musk telling
executives that Tesla that he has a "Super bad feeling about the economy". And we'll reevaluate hiring at the electric carmaker.
Inflation, the central theme of CEOs and investor concerns the latest U.S. inflation report is due out later this week. Now joining me to discuss all
of this and it's a lot to get through Troy Gayeski he's Chief Market Strategist for FS investments. Troy, fantastic to have you on the show!
What did you make of the comment about the economic hurricane? Does that tie with your level of concern or at least the level of uncertainty at this
moment?
TROY GAYESKI, CHIEF MARKET STRATEGIST, FS INVESTMENTS: Well, I think if you go back to coming into this year, Julia, by the way, good to see you again,
it's been too long. The main focus for investors was how to manage through an environment where the economy stayed relatively strong.
But you would have significant multiple compressions, which would affect equity markets, as well as higher bond yields, because inflation was going
to run hotter, and the Fed would have to tighten money supply and monetary policy.
And then, of course, we had two really negative shocks, right? First the Russian invasion of Ukraine and then secondarily China's bizarre COVID Zero
policy, which have put additional pressure on supply chains. So that was the initial concern.
Unfortunately, what you're seeing now is some concerns over global growth and U.S. growth. You know, the U.S. consumer, Julia is very mighty, right?
They have tremendous balance sheet wealth built up from the pandemic; you still have a hyper tight labor market.
But basically what guys like Jamie Dimon are saying is the U.S. consumer can't keep the global economy going single handedly, you know, they need
some help from CapEx and business fixed investment. They need some help from China need some help from Europe.
And so recession risk was exceptionally low coming into the year and unfortunately, that has appreciated substantially, because the U.S.
consumer just can't do it single handedly.
CHATTERLEY: It's such a great point. And I think the focus comes down to perhaps two different scenarios. And it's the one that we heard the Black
Rock CEO talking about, which is that inflation, remains sticky and it stays high for a long time. And we're battling it for whatever reason.
And then perhaps the other one where the Federal Reserve in particular, but obviously, other central banks around the world are trying to tackle the
pricing pressures too, they managed to do that but the consequences significantly tighter rates than a reduced balance sheets sucking out from
the liquidity means recession risk, high recession risks, if not recession. Is that the sort of two most likely scenarios that we're looking at here?
GAYESKI: Well, there still is the third which is that the Fed can thread the needle and the consumer can keep chugging along and we get business
fixed investment in China avoids or evolves away from a counterproductive policy right now.
[09:25:00]
CHATTERLEY: Is that probability though?
GAYESKI: 100 percent Julia, that's probably outcome has declined substantially, and the probability of sustained inflation, because now
we're in a full blown wage price spiral. And unfortunately, if the Fed did tackle this a little bit earlier, we might not be there.
But that probability is uncomfortably high. And then alongside that, you've now had an increased probability where the Fed really does what it takes to
break inflation. But eventually, the consumer can't keep it going single handedly, because financial conditions, equity multiples interest rates,
credit spreads heightened so much, you never get that follow through on business fixed investment in CapEx, which we've all been expecting.
And we have a fairly mild recession, you know, call it later this year or early next, that's still on our base case, we're trying to be very balanced
in terms of, you know, these three potential scenarios. But unfortunately, as the needle threading scenario has diminished, the probability of
recession has increased marginally.
CHATTERLEY: How do you handle or how do you invest to handle all of these kinds of scenarios, whether you're an individual investor or fund because
one of the big challenges this year, and it plays to the point that you were just making is that we've seen stocks, at least for indices go down,
and we've seen bond yields rise, that means bonds have gone down so your traditional safe haven in that environment is disappeared?
Where are the safe havens? Even if we're just talking about capital preservation, never mind capital return, and we'd love some returns too
please store if you can solve that problem for us as well?
GAYESKI: Yes, I'll come through like a champ, you know.
CHATTERLEY: --please.
GAYESKI: --where firms like ours that have been democratizing alternatives for over a decade, you know, really pleased that there are a variety of
alternative investments now that protect capital can benefit from the Fed hiking, because the majority of the assets are floating rate, and can also
mitigate downside in the event of a surprise recession, which is becoming less of a surprise or if we stay in a higher inflationary environment.
So one of the first areas would be senior secured commercial real estate debt, where you have a tremendous economic resilience because you're in the
senior part of the capital structure. And you benefit some extent by the Fed hiking, because the majority assets are floating rate. So that would be
you know, very stable grind out a consistent return mid to low, high single digits, and not deal with all the drama.
And furthermore, you know, in all three of those scenarios, you should expect a positive return; you're never going to make 12 to 15 percent in a
given year. But that's not what this year is all about. That's point 1. Point 2 is if you can tolerate a little bit more mark to market volatility,
and can live with some drawdown risk in the event of a recession.
You know, if you look at business development corporations like FSK, they have over 12 percent, dividend yield and trade at a significant discount to
NAV so you can get a very attractive total return story, albeit with more volatility.
And then lastly, Julia in multi strategy, hedge fund strategies, or like our multi strap product, volatility is actually our friend because as
market dislocations go up, we can do a lot more relative value trades and take advantage of those dislocations.
And so there are a handful of safe havens. We're not arguing it's going to be easy, when equities are struggling and fixed income struggling. But
there are ports in the storm in an environment like this to make a decent return at least keep pace with inflation. And make sure if we get any one
of those three scenarios, you at least have a fighting chance to make some return.
CHATTERLEY: Yes, and I think the overriding message there is stay calm and expect volatility. Troy always great to chat to you, thank you so much!
Troy Gayeski there the Chief Market Strategist for FS Investments we'll see you soon thank you for that and the "Market Open" is up next stay with us.
(COMMERCIAL BREAK)
[09:30:00]
CHATERLEY: Welcome back! And a reminder of one of our top stories this hour the future of the British Prime Minister Boris Johnson hanging in the
balance. The UK Leader faces a vote on his leadership of the Conservative Party later today. After at least 54 lawmakers from his own party said they
no longer have confidence in him.
And as the vote approaches senior members of his cabinet have been voicing their support on Twitter the likes of Foreign Secretary Liz Truss
Chancellor Rishi Sunak and Michael Gove all saying Prime Minister Johnson should stay in the top job, even if he survives tonight spoke to opposition
leader Kier Starmer, says the writing is on the wall. Take a listen to this.
(BEGIN VIDEO CLIP)
KEIR STARMMER, BRITISH LABOUR PARTY: I think history tells us that this is the beginning of the end. If you look at the previous examples of no
confidence votes, even when Conservative Prime Ministers survived those he might survive it tonight. The damage is already done.
(END VIDEO CLIP)
CHATTERLEY: As you would expect nothing less than the leader of the opposition. But joining us now is Daniel Kaczynski. He's a member of
parliament for Boris Johnson's Conservative Party sir great to have you on the show. Can I ask if one of you are one of the 54 potentially plus
members of parliament that have written a letter saying they no longer have confidence in the Prime Minister?
DANIEL KAWCZYNSKI, BRITISH CONSERVATIVE MP: Well, I think when members of parliament do write in to Sir Graham Brady, that is a confidential matter,
and I certainly don't discuss those things with the media.
What I would say is I very much hope that the Prime Minister does win the vote today in the House of Commons. We have increasing problems facing our
country, whether it's the situation with Ukraine, whether it's high - a very high inflation, and trying to rectify the economy after the pandemic,
it's a difficult time for our country, and to have a change of leadership at this time I don't think it's optimum.
CHATTERLEY: Sir your view is that he remains an asset rather than a liability both to the country and the government.
KAWCZYNSKI: Well, I'm speaking to you from London, which is a very left of center city, and a city where all conservative politicians have struggled
over the last 20 to 30 years. Boris Johnson is the only conservative politician who has won London and not just won it once, but won it twice.
And when he finished being Mayor of London, he had a very high reputation as having done the job extremely well.
The thing that matters for me is and the reason I voted for him to be Leader of the Conservative Party, and ultimately Prime Minister is his
promise to deliver Brexit. Let's not forget the chaos and mayhem that we saw in this building behind me in 2019, when the previous Prime Minister
could not implement the decision of the British people who voted for Brexit, that was a very, very difficult and painful time.
And it was Boris Johnson's leadership and courageous approach that finally managed to resolve that issue. So I think that plus the fact that he's got
a majority for us, the biggest majority since 1987 of over 80 majority in the House of Commons are things that are very relevant in assessing his
continued leadership of our party.
[09:35:00]
KAWCZYNSKI: And if you are going to throw your captain overboard halfway along the journey, you need to be pretty damn sure that you've got somebody
better to steer the ship, and I don't see anybody else who has the credibility of doing a better job than the current incumbent.
CHATTERLEY: Do you think that's the view of the entire party, that at this moment whether or not he's the best man for the job, he's the only man to
continue given a lack of available alternatives that perhaps could have to do a better job?
KAWCZYNSKI: Well, I think in any organization, you will have, whatever corporation or organization you work for, there will be a certain number of
people who are not happy with the leadership for various reasons. We now have a contest because 15 percent of the parliamentary party has called for
a vote of confidence, following the Sue Gray Report; I'm not going to get into a confrontation with my colleagues who want to have a vote of
confidence that is their right.
And from an emotionally intelligent perspective, we need to try to understand each other's perspectives. The most important thing, however,
though, is that when we know the result tonight, that the whole of the parliamentary party comes together again, and accepts the results.
Because one thing I can guarantee you divide the parties do not win elections, ahead of the next general election, which is due in two years'
time, we really need to put this party gate issue to bed and resolve it one way or another, and move on and focus on the things that affect people's
day to day lives, whether it's the economy, whether it's jobs, or whether it's inflation.
CHATTERLEY: I think that's what the British people surely want to "Party gate" just one of a whole host of issues that the government should be
focusing on and perhaps not this? Daniel, how long does he survive, even if he wins this confidence vote? And should he be the leader of the party
going into the next election in your mind?
KAWCZYNSKI: Oh, I think that if he - let's wait and see what the result is, but I'm quietly confident that three quarters of the parliamentary party
will support him this evening. If that is the case, then he will survive and he will not only survive, but lead us into the next general election
campaign.
The one thing which your viewers ought to know is that we've been in office now for 12 years, and to be behind in the opinion polls by only 7 percent.
Some put in opinion polls put us just six points behind labor is an astonishing feat.
Normally, at this time that the parliament, a governing party, if you look at the opinion polls historically, will be 10, 15 points behind. So I do
think the British people are convinced by the opposition by Sir Keir Starmer, and I think there is everything to play for at the next general
election in 2024. And I very much hope it's under the leadership of Boris Johnson.
CHATTERLEY: Thank you, that doesn't have to be like a consolation prize, quite frankly, one would rather be ahead than not quite so far behind us as
far as previous governments. We can debate that point again, very quickly, who's the best backup? Should the Prime Minister lose this vote in your
mind? Who is the best backup to be Prime Minister?
KAWCZYNSKI: That's a speculation, of course. And I think--
CHATTERLEY: Of course.
KAWCZYNSKI: I mean, I hope you will allow me just to focus on the on the vote in the hand today before making any further speculations, I do have
somebody in mind who would be a potential credible alternative. But at the moment, the focus is making sure that we vote in the in the elections today
and understand what the magnitude of the vote is.
If, as I predict three quarters of the parliamentary party supports the Prime Minister, then I think he will be safe. The rules say that there is
no contest allowed permissible for another 12 months, by which stage we are moving into the domain of getting ever closer to the next general election.
So the tonight's vote is absolutely crucial, crucial for the Conservative Party, crucial for the country.
CHATTERLEY: And sir I would ask you what that name is they know exactly what you're going to say to me, in which case I won't bother asking. We'll
focus on the matter at hand. Thank you for joining us. And thank you for your time. I know it's a busy day.
KAWCZYNSKI: Thank you very much.
CHATTERLEY: British Member of Parliament, the Conservative Party there. Thank you, sir. All right up next Russia's first strikes on Kyiv in weeks
rattle Ukraine's Capital; we speak to the city's mayor
(COMMERCIAL BREAK)
[09:40:00]
CHATTERLEY: Ukraine's President Volodymyr Zelenskyy visited the water on East if his country is the battle for the Donbas rages. On Sunday President
Zelenskyy reportedly visited frontline troops near the critical City of Severodonestk. That visit comes as Ukraine says Russia is putting its full
military might into the back of the East.
On Sunday, military officials reported Russian troops had suffered losses in the Donetsk region amid a push towards the key City of Slavyansk.
Severodonestk Ukraine reports the fiercest battles quote and street fighting after we took half the city over the weekend. Sunday also saw the
first Russian strikes on Kyiv in weeks.
Ukraine says five missiles were launched at the Capital, one military target and one civilian target were reportedly hit. Joining us now is
Vitaly Klitschko. He's the Mayor of Kyiv. Mayor Klitschko good to have you on the show we appreciate your time!
I wanted to ask you about the missile strikes that we saw on Kyiv over the weekend, the Russians said they were targeting and destroyed foreign
provided tanks obviously the Ukrainian forces have said it was a train repair operation can you tell us what happened?
VITALI KLITSCHKO, MAYOR OF KYIV, UKRAINE: Good afternoon! In Kyiv we have already afternoon. Actually just yesterday we have rockets attack five or
six rockets landed and destroyed the buildings. And the Russians told this was military objective totally a liar.
And it's not true. It's saying it got nobody died but a couple of people were injured - in spent right now that time in hospital. Its worse civilian
infrastructure objects and they doesn't have - don't have connection to military forces. And like always Russians explain the - regarding this
special operation.
CHATTERLEY: So just to be clear, no tanks that were provided by Eastern European nations were destroyed in this attack.
KLITSCHKO: In Kyiv - doesn't have tanks. It destroyed civilian buildings.
CHATTERLEY: I got it. You've been honest. And you've said to people, you understand their desire to come back to Kyiv but they do so at their own
risk. Because the situation still isn't stable and this rocket attack I think proves that.
[09:45:00]
CHATTERLEY: What impact does it have on people's mentality, people's fears?
KLITSCHKO: Kyiv, Capital of Ukraine was the target and still the target of Russians. And their main priority to occupy the Capital of Ukraine always
was the goal of Russian Federation Mr. Putin.
And right now, the thanks to Ukrainian military forces to Ukrainian the warrior soldier who actually defend our city and Russians right now
concentrate - forces to the East of Ukraine. But Kyiv still the target we see the rockets attack.
Actually, before the war, its population of our city was 3.6 million people. The 3.6 million citizens in during the war is our population
reduced to 1 million because woman's children left the city and slowly right now, when the Russians soldier go away from Capital of Ukraine the
people coming back they are coming back to homes.
Right now the population in Kyiv around 2.5 million citizens and people come and go and back into right now - actually, if we can the call that
normal life, the Cafe is open some small business starting to work there.
Right now beginning of the summer, people coming back to hometown, but every day we listen the warning regarding rockets attack and everyone has
to go to the bunkers a couple of times if they will listen, the alarm.
CHATTERLEY: Yes, the fear remains. One of the other things that I think people need to understand is something that the emergency services the
Ukrainian emergency services estimate which is that half the country now has unexploded ordinance so that remains a risk even for people returning
wherever they are in the country.
And I knew you and your brother run a foundation that was created to give sporting access to young people. And now you've switched and you're
providing education on this kind of unexploded ordinance on critical first aid if people are caught in their attacking and trying to make instant
decisions to save lives. Mayor Klitschko even just saying it is heartbreaking to me that that's what children are now learning.
KLITSCHKO: As this nation - have huge and long impact in the citizens of our city. Is one of the reasons why I tell to everyone please not so fast
coming back because the north of east of our city the woods and green zone was totally with the mines and unexploded staff.
And we have couple of examples a couple of cases not example sorry cases when civilian already died. And that why this zone is - to visiting the
green zone is actually the people make a barbecue to the green zone it's if we get - good weather to spend in weekend but right now we lost all green
zone because it's very dangerous.
Yes, of course we have to do it a lot anti-mine the program actually we need the experts to do that. But right now it is still in the war it's
difficult to do it because we are everybody comes ready to support the Ukrainian army and to defend our country in the east - east of - south of
Ukraine.
But anyway, this one of the reason why I told to everyone please if you come to the Kyiv it is your personal risk the own risk. Following the rules
- please follow the rules, we actually every day announced what is allowed to do and what is not.
[09:50:00]
CHATTERLEY: Mayor Klitschko you and I were both in Davos just over a week ago and one of the discussions taking place there was the concern that the
rising food prices the rising energy
prices, the complications of this war might force some countries leaders around the world to take a look at the situation in Ukraine and decide for
to perhaps persuade or say to the Ukrainian government, we need to compromise here for the good of the world, there needs to be some kind of
compromise and the warm has come to an end.
And I saw the comments from President Macron at the weekend where he said, President Putin shouldn't be humiliated in the negotiations that are taking
place. Mayor, what do you make first of President Macron's comments and some of those conversations that perhaps could force a compromise?
KLITSCHKO: If we listened about the words, the Russian still told us, let's find a compromise. Let's find solution. I don't know what they talk about.
What we talk about which compromise to give up Russians, some big part of territory of Ukraine is compromise or is solutions in some politician, for
example, is Macron I was really - as Ukrainian citizens I was very disappointed and upset from his messages is actually Ukrainians attack they
kill our citizens.
The big part of Ukraine was occupied and the Russian Federation not accept Ukraine as country and they asked Ukrainian as nationality - is actually
the people have to understand we defend our country we defend our future we defend our families and our children.
And also we defend the same well and principles. What have European country you would have we have your democratic countries, we fighting for you for
every one of you because the principles and wellness is main priority right now.
We're in a modern world, and we can't accept some compromise. I don't know what we have to talk about. We are ready to talk about compromise or
solution if the last Russian soldier left our country. And after that, it's time to talk right now its difficult - to talk if every day they kill
Ukrainian and a big part of Ukrainian country was occupied. We don't have other solution.
CHATTERLEY: There is no surrender.
KLITSCHKO: Yes, you're right.
CHATTERLEY: Mayor great to chat to you. Thank you for your time. And we'll speak again soon I hope the Mayor of Kyiv there. Sir thank you. We're back
after this stay with us
(COMMERCIAL BREAK)
[09:55:00]
CHATTERLEY: A warm welcome back and a better tone on Wall Street this Monday though it is early hours. Tech stocks in the lead in early trade
after last week's 1 percent NASDAQ - lots of challenges for investors to overcome this week including Friday's all important read on U.S. consumer
price inflation.
Take a look at shares of Twitter in the meantime lower in early traders Elon Musk accuses the company of withholding data on bots. Musk is now
saying he may withdraw his takeover bid one to watch. That's it for the show. If you've missed any of our interviews today they will be on my
Twitter and Instagram pages shortly you can search for at @jchatterleycnn in the meantime "Connect the World" with Becky Anderson is up next and I'll
be back tomorrow.
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[10:00:00]
END
