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First Move with Julia Chatterley
Liz Truss faces UK Parliament for First Time as Prime Minister; Foreign Fighters help in Ukraine's Counteroffensive; Dollar Hits Multi- Decade Highs Against Major Currencies; Pakistan's Largest Lake Breached Unexpectedly Tuesday; Chopra: How to help Children Facing Anxiety, Depression; Gulf Arab Nations ask Netflix to Remove "Offensive" Content. Aired 9-10a ET
Aired September 07, 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: A warm welcome to "First Move". I'm Julia Chatterley fantastic to have you with us this Wednesday. The first
full day on the job for the U.K. Prime Minister named Liz. No time for a honeymoon a time to get down to business.
High energy prices have Brit's feeling Liz. Concentrators meanwhile, wondering where the U.S. dollar tarp is and Apple's big product launch
today will investors see gee whiz.
Meanwhile, on Wall Street's investors hoping for some September stock fizz, suddenly another softer start on tap as you can see red across the board -
this after the 7th straight day of losses for tech stocks the longest losing streak in 5 years in fact with rising bond yields pressuring
performance.
Europe as you can see also under pressure too. The CEO of Deutsche Bank warning that recession in Germany is now inevitable in his view, saying
geopolitical tensions like the war in Ukraine are reversing the globalization trends that have fueled economies for decades.
The European Central Bank poised to raise rates aggressively despite those rising recession fears as European politicians scrambled to address the
worsening energy emergency. Price caps on gas we'll discuss later this week and will be discussed later this week at a special energy summit
triggering, though a stark warning from President Putin today the latest on Putin's pronouncements in just a moment's time.
In the meantime, a weaker picture across much of Asia too new data showing Chinese exports slowing significantly missing expectations in August, as
ongoing lockdowns curb manufacturing. Exports to the United States in fact contracting for the first time since 2020; one clear positive from all of
this however, global inflation will be much worse.
If the Chinese economy were running at full speed that's really bad thinking about more support from the Chinese government will clearly be
needed and it's going to be a similar strategy from the new U.K. Prime Minister it seems too and that is where we begin the show today.
Her first full day on the job and Liz Truss is rolling up her sleeves as she gets on with being Britain's Prime Minister. Earlier today, she chaired
her first cabinet meeting before leading Prime Minister's questions in the House of Commons. She was challenged by opposition leader about her
rejection of a windfall tax on the profits and each company's make take a listen.
(BEGIN VIDEO CLIP)
KEIR STARMER, BRITISH LABOUR PARTY LEADER: Can I congratulate the Prime Minister on her appointment, when she said in a leadership campaign that
she was against windfall taxes, did she mean it?
LIZ TRUSS, BRITISH PRIME MINISTER: Well, I thank the right honorable gentleman for his welcome. I hope that we will be able to work together,
particularly on areas we agree on. And I know that we have had strong support from the opposition in opposing Vladimir Putin's appalling war in
Ukraine.
And I want us to continue to stand up to that appalling Russian aggression that has led to the energy crisis we face now. I am against a windfall tax.
I believe it is the wrong thing to be putting companies off investing in the United Kingdom, just when they need to be growing the economy.
(END VIDEO CLIP)
CHATTERLEY: And Nada Bashir joins us now from Downing Street. Liz Truss's, first Prime Minister's questions, pointed answers there, I think to pointed
questions. I call it in a short performance and I watched a lot of it. How do you think she did?
NADA BASHIR, CNN REPORTER: Look Julia, many are saying that she did better than perhaps some may have expected. We saw a lot more of a focus on
policy. It was less combative than we've become used to with Boris Johnson.
And we've seen a lot less of those convoluted metaphors and with your bottles that we've been used to with Boris Johnson. We also saw a more,
clear ideological divide emerging between Liz Truss and Labour Opponent, Kier Starmer on the topic of taxation.
Of course Liz Truss, in favor of low taxation to generate growth. But as you heard there throughout PMQ Kier Starmer calling for higher taxation on
those big corporations, particularly as he laid out there when it comes to energy firms.
She was pressed on that repeatedly whether we may see windfall tax on those energy firms. She was very clear in her opposition to that and treasury
announced that the government will be laying out its plans for an energy package tomorrow in Parliament to deal with the rising soaring energy
prices that we have been seeing that. People really have been struggling with over the last few months and what is expected to get much worse.
[09:05:00]
BASHIR: So we are expecting to see the details of that plan tomorrow. There has been a lot of questions around that over the last few days. There has
been some suggestion that there may include some sort of freeze or cut on those energy prices.
But we'll wait to see the final details as laid out tomorrow. And this is all of course centered on the cost of living crisis, which is will continue
to be a key factor for debate for the Labour Party and the Conservative Party in the House of Commons over the coming weeks. We heard this morning
from the newly appointed Chancellor Kwasi Kwarteng chairing a meeting today with market leaders in the city.
Looking at the government's proposed business plan how it will deal effectively with the cost of living crisis. Liz Truss has said that she is
going to deliver on her bold plan, in her words, to cut taxes to pursue economic reforms to help families struggling with the cost of living.
And of course to allow for energy prices to become more manageable for the average family have was sort of out of control with seeing inflation in the
U.K. above 10 percent rising rapidly. Goldman Sachs just last week, projecting inflation to reach or top rather at over 22 percent next year.
So there are real concerns around the state of the economy. And that is certainly going to be a fixture for debate in the House of Commons over the
coming weeks, Julia.
CHATTERLEY: Yes, I said it in the introduction to the show there is no honeymoon period here. There is a whole array of challenges she has to face
not only. And I saw it this week in a poll by Comrades, I think 6 out of 10 Brits that were polled suggesting that they wanted to see elections by year
end. She was tackled on that in Prime Minister's questions as well. And she was pretty punchy in response, Nada.
BASHIR: Yes, absolutely Julia. There have been real questions around the mandate that she holds. Liz Truss, of course, was elected by a comfortable
margin of around 57 percent of Conservative Party members by no means a landslide. But of course, those were conservative party members.
It's a slim selection of the population. That's the 1 percent of the British electorate in a very select sliver of the population, I have to
say. So there have been real questions around the mandate she holds. We heard in her victory speech, that she wasn't looking at the potential for
an early election.
She said that she would lead the Conservative Party into success in 2024, where that has continued to be a point of contention for the Labour Party
and certainly something that she will continue to face challenges on.
And of course, she also faces the struggle within her own Conservative Party to unite her MPs. Behind that we heard from the outgoing Prime
Minister Boris Johnson calling on Conservative MPs to back Liz Truss 100 percent.
But this of course comes after weeks and weeks of blue on blue infighting and division within the Conservative Party over the course of the
leadership campaign. That is something she's going to have to overcome. We've seen already in almost a near total purge of Rishi Sunak supporters
and backers in Liz Truss's cabinet makeup.
She has really centered her support base around her in cabinet whether or not she will be successful in uniting the party is still a question many
are looking for the answer to.
CHATTERLEY: Yes, and that question was - will be continue to be asked certainly. Nada, great to have you with us, thank you, for that Nada Bashir
there.
Now a pre E.U. Summit shot across the bow from President Putin, the Russian Leader threatening to cut all fuel supplies to Europe. If the E.U. proceeds
with a plan to cap the price of Russian oil and gas. He also condemned Western sanctions once again.
(BEGIN VIDEO CLIP)
VLADIMIR PUTIN, PRESIDENT OF RUSSIA: After the pandemic, different challenges arrived that have also been global in nature and pose a danger
to the whole world. I'm talking about the West sanction fever, it's brazen and aggressive attempts to force the others how to behave deprive them of
their sovereignty, and force them into submission.
(END VIDEO CLIP)
CHATTERLEY: Clare Sebastian joins us has been watching this closely. Clare some of the sting of a threat of a full supply cut has been taken away,
given the fact that President Putin has already restricting supplies to Europe. And we know that in the form of gas in particular. But this threat
remains let's be clear, a potent one and it's a decision EU leaders have to take and we're going to take it on Friday.
CLARE SEBASTIAN, CNN CORRESPONDENT: Yes, Julia. Not a huge surprise given that Russia has already said it would cut supplies to any country complying
with the G7 oil price cap. But he was pretty definitive, he called the idea stupid. He said that it was a non-market solution that would lead to higher
prices.
And that he would not only cut gas supplies, as you say, but all fuel heating oil, coal which by the way, the EU has already stopped importing
from Russia as of last month. But Russia wants to make it clear, but it still has cards to play here in this energy war. And look Ursula Von Der
Leyen the E.U. Commission President wants to make clear the opposite.
She was at pains to point out in her press conference today that the EU has dramatically reduced its reliance on Russian gas from 40 percent before the
war down to 9 percent. She said that it's already importing more from Norway than it is from Russia. But that 9 percent would still matter going
into winter even with storage levels, exceeding expectations. It's still critically important that they continue to bring in gas throughout the
winter.
[09:10:00]
SEBASTIAN: Having said that, we don't know yet if they're going to actually agree on a gas price cap from Russia. We don't exactly know how this will
work? It's expected to be fleshed out in the meeting of energy ministers on Friday. An agreement, as you know, Julia, among EU members has been very
difficult to achieve as we've gone through various different sanctions on Russia, especially on the energy sector.
Hungary, for example, just agreed to increase gas supplies from Russia about a week ago. So it is something that's still up in the air in terms of
how they're going to get this done.
CHATTERLEY: Yes and the key is, if you're going to threaten to fully cut supplies, then you have to have an alternative buyer on the other side,
which is why it's very interesting to hear from Russia's envoy to China suggesting that President Xi, President Putin will meet - likely meet on
the sidelines in a conference in Uzbekistan next week. And ever more critical relationship and a one sided for the most part relationship,
Clare.
SEBASTIAN: Yes, but I think it was - we can read this as a signal that China is increasingly on board with Russia's pivot east, one that is
growing in importance, as you say, for Russia as it looks at to lose energy markets in the West. This would not only be President Xi's first face to
face meeting with Putin since the start of the war. But it would be his first trip outside of China since the pandemic.
So a critically important moment if it happens. And look, China is not just doing - not just signaling its willingness to help Russia through this
action. It's also showing up in trade data. We just got Chinese customs data today, Julia Reuters reporting the trade between the two countries
overall is up some 31 percent in the first 8 months of the year, in July, for the third straight month, Russia was China's top oil supplier.
So this is a growing trade relationship with one that, as I say, is increasingly critical importance to Russia as it looks to fill the gap that
will be left by Europe when the oil embargo comes into force in December. We don't know yet exactly how much China is willing to support Russia in
its efforts to diversify its markets or in fact, in the war itself, but this will still be relationship on with Russia is crucially going to be
reliant.
CHATTERLEY: Yes, Clare Sebastian, thank you so much for the context, there. Now at that same Economic Forum where President Putin was speaking, he also
claimed Russia has lost nothing, "During its military action in Ukraine". Last week, U.S. officials told CNN, Russia is facing severe shortages of
troops in Ukraine, and is looking for new ways to boost their numbers.
Meanwhile, foreign fighters on the front lines say the Ukrainians are making slow but definitive progress in retaking the southern region of
Kherson. And that they're doing it despite being outgunned and outnumbered by the Russians.
Sam Kiley joins us now. And Sam, I know you've been speaking to some of those foreign fighters in particular, but there's clearly a great deal of
secrecy surrounding this counter offensive in the south, but for obvious reasons, I think what progress is being made? Have you managed to glean
anything from those you've spoken to?
SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, we have. I mean, the truth of the matter is that in the first few days of CNN reported
within less than 24 hours of the campaign starting a small number about four villages had been captured by the troops in the counter offensive
pretty rapidly since then Mr. Zelenskyy, the President has confirmed that a couple more have been captured, because the target in this campaign is
Kherson.
Now the Ukrainians would love to be able to recapture Kherson by Christmas that is unlikely, or it's something of a tall order, I should say according
to the frontline troops, who some of whom we've spoken to have just come back wounded in the first few days of that counter offensive, take a
listen.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Go, go, go, go, no panic, no panic, this is normal.
KILEY (voice over): Among the most forward troops in Ukraine's latest counter offensive, this really is normal. When the crunch of incoming
artillery is this intense, casualty in this reconnaissance unit, which includes three foreigners are inevitable.
Mark Ayres, a Briton was lightly wounded on day one of the offensive. On day two, he was more seriously injured in the leg by artillery alongside
Michael Zafer a Former U.S. Marine from Kansas. He was hit the hand, stomach and head. They joined Ukraine's army together, but met fighting
ISIS in Syria. Zafer is the Former U.S. Marines Kurdish code name.
UNIDENTIFIED MALE: I am fine go.
KILEY (voice over): As recon troops they've been the tip of Ukraine's attacks on its southern front in the fight to recapture Kherson.
MICHAEL ZAFER, AMERICAN FIGHTING IN UKRAINE: And then I just remember looking out for my laughter then pop couldn't see anything for a bit,
everything looked the same.
[09:15:00]
ZAFER: Everything came to look at my left looks fine like am I right. OK, bear; bear all right to the hole to the hole.
KILEY (voice over): It's going to be a slow grinding fight they say whatever the claims of Ukraine's government.
KILEY (on camera): This counter offensive is being billed as kind of a quick process. Do you think that?
MARK AYRES, BRITON FIGHTING IN UKRAINE: No, definitely not. It would that won't be quick. I mean, it's hard slow for me - our position by position
because we haven't got the resources to do a massive blitzkrieg.
KILEY (voice over): U.S. weapons and other NATO equipment have proved useful, but not decisive as Ukraine has captured a handful of villages
since the counter offensive began. Here Russian troops wave a white flag of surrender. After precision artillery strikes by U.S. supplied howitzers are
monitored by Zafer's recon unit with a drone. Russia's motivated its troops with false claims that they're liberating Ukraine from Nazis.
KILEY (on camera): Do you feel sorry for the Russians?
AYRES: No, not so. It's not like Ukraine has invaded Russia. They've invaded Ukraine. They're here killing civilians killing our soldiers. I've
got no sympathy for them whatsoever.
KILEY (voice over): Ukraine's imposed a news blackout on the southern offensive and keeps his casualty figures secret. But for these men being
wounded isn't the end of combat, it's an interruption.
KILEY (on camera): And are you going to go back?
ZAFER: Yes, once everything heals on my body, probably within three to four weeks, I should be right back out there.
(END VIDEOTAPE)
KILEY: Now, of course, those frontline fighters, some may not be able to recover as quickly as they hope. We're in touch with others, who described
very similar battlefield scenes. But it's very clear, though, that the Ukrainians are putting this precision weaponry to good use, but universally
to a man, whether you're a general or frontline soldier in the trenches, the demand, the plea is for more and more of this weaponry.
In particular Julia in terms of ammunition, even if they've got the guns, they need the artillery shells or the rockets to fire using that equipment.
That seems to be one of the major things that the Ukrainians really need. They're going to press this counter offensive, and very much further,
Julia.
CHATTERLEY: Yes, Sam did that surprised you? They're their foreign fighters. They're in a strange country. They're concerned about a lack of
weaponry and yet, when you ask that question about going back out there, as soon as they've healed enough, straight back.
KILEY: No, I've spoken to a lot of foreign fighters who are very, very similar to the frontline Ukrainian fighters. They see this as a very black
and white moral issue. Now in the case of those two fighters that we spoke to, they had taken that same decision in volunteering to fight against the
so called Islamic State in Northern Syria when this war broke out, they joined up again.
In the past, I've spoken to Former U.S. Special Forces, soldiers, British paratroopers, all kinds of people, and many, many, many Ukrainians, and of
course, the vast majority here, obviously, Ukrainians and they do see this as a battle in the frontline of the global or the Western global defense of
democracy.
They do see themselves as very much in the frontline preventing something much, much worse from coming down the tracks if Vladimir Putin isn't
stopped and defeated, completely defeated here in Ukraine, Julia.
CHATTERLEY: It's exactly what you and I were discussing yesterday after President Zelenskyy spoke after everything in the opening bell at the stock
exchange. It's about a bigger battle Sam, thank you for that, Sam Kiley there.
OK, let's move on. Our growth downgrade for China analysts at Nomura now see GDP rising just 2.7 percent this year, as COVID controls a cut into
growth. Around 25 percent of the country's GDP is currently under some degree of COVID lockdown that according to consulting firm Teneo Kristie Lu
Stout joins us now. Kristie, for much of the rest of the world I think it's about moving on post COVID and these lockdowns.
But for China, when you see those kinds of numbers it remains incredibly eye opening. I think, to me and many of our viewers too. However, there are
clearly losers and the Chinese population are struggling much with these lock downs. But there are economic winners in this story too, as you've
been discovering.
KRISTIE LU STOUT, CNN CORRESPONDENT: Yes, it is interesting, Julia. As you pointed out, you know, China's zero COVID policy has totally slammed
China's economy, but profits are surging for its COVID-19 test makers. In fact, 12 of China's top COVID testing companies have recently posted these
huge spikes in earnings for the first half of 2022. You have a company called Andon Health reporting an over 27,000 percent rise in net profit for
the first half this is the biggest increase ever posted by any listed company in China.
[09:20:00]
STOUT: And have other test makers reporting in very significant first half net profit increases of like 55 percent or 376 percent et cetera. And it's
easy to see why because as you pointed out the top as much of the world has already moved on and pivoted to living with the virus.
You got the strict zero COVID measures are meeting in place in China keeping millions of people under lockdown and under mandatory testing
orders. In fact, since late August, more than 300 million people in more than 70 cities across China have faced some form of COVID related
restrictions.
Right now in Chengdu 21 million people are still in a lockdown that began last week, and persist to this day, even after Monday's deadly and
terrifying earthquake and the economic toll just continues to rise. There were some fresh data that was released today showing that China's export
growth has lost momentum in August dragged down by as you know a slowdown in global demand.
But also in part of the zero COVID measures that disrupted factory production this year. And despite the cost, China is still holding fast
this policy, local authorities have been under huge pressure to prevent flare ups before the big party meeting.
It's set to start in early October. And this is when President Xi Jinping is expected to secure an unprecedented third term is party leader and I
want to bring up this statement for you, analysis from Yanzhong Huang of the Council of Foreign Relations.
And he shares this with CNN saying that "The party wants to make sure nothing untoward, such as a major outbreak, could potentially threaten
social stability, shadow the leadership transition process, and not to mention tarnish Xi's personal leadership credibility."
And some Chinese hope that the country's zero COVID restrictions could somehow be relaxed after the Party Congress, but Beijing has not offered
any hint any timeline on a possible shift in policy back to you Julia.
CHATTERLEY: Yes, it's difficult, isn't it? It's whether a COVID and then a COVID outbreak would tarnish that reputation or that the measures required
to prevent it tarnish that reputation but either way, not changing certainly not the till the end of the year. Kristie, great to have you on
the show, thank you so much for that!
OK, straight ahead, a cultural conflict, Gulf nations warning Netflix over shows that offend Islamic values. The question is what does Netflix do
about it? And mindfulness and the power of meditation, I speak to Author and Entrepreneur Mallika Chopra about ways to help children and teens cope
with stress ahead of the school year and beyond. Stay with us.
(COMMERCIAL BREAK)
[09:25:00]
CHATTERLEY: Welcome back to "First Move"! On Wall Street the major averages still unable to shake off their September sogginess so far futures lower
over the past hour as you can see there due in part two fresh weaknesses in oil prices investors in a risk off mood. That's what we call it.
With the S&P 500 down some 2 percent over the past week on rising interest rate fears and I think concerns over China was the last discussion was just
indicating signs of U.S. economic strength have increasingly become negatives, though for investors, because they increase the chances of
further oversized rate hikes from the Federal Reserve.
For example, solid U.S. services data contributed to yesterday's pullback. And last Friday's strong employment report triggered stock weakness too.
And the prospect of a more aggressive Fed is fueling the rise in the U.S. dollar of course, too, with negative profit implications for U.S.
multinationals.
Those who earn abroad, more expensive U.S. exports will surely worse than the inflation crisis around the rest of the world too; the U.S. currency
now hitting multi decade highs against the Yen, the Euro and the pound. David Bailin joins us now he's the Chief Investment Officer at Citi Global
Wealth. David, always great to have you on the show! You know, I always read your notes. And I do feel like you're quite glass half full on the
outlook overall, particularly in the face of what I was just describing their rising rates, a stronger U.S. dollar tightening credit conditions,
the U.S. economy does continue to grow and it continues to add jobs too.
DAVID BAILIN, CHIEF INVESTMENT OFFICER, CITI GLOBAL WEALTH: So this is a very complicated time, like you've said, you know, you've got a slowdown in
China. You've got a recession on the horizon in Europe, and you've got the Fed raising rates in the United States to stave off inflation.
And all of that is going to yield us a slower economy in 2023, you know, we're expecting a 1.7 percent growth rate, you know, just to give you an
idea, that's probably you know, 45 percent less than a typical year and so all of that sounds negative.
And it is because the economy has to adjust to all of these different factors happening at the same time. What investors need to be looking at is
what's going to happen in 23, and 24? And what I mean by that is that earnings have to come down.
And once earnings expectations come down, I think that the market will be able to look through that and then see a better growth rate a year or a
year and a half from now. And investors have to be positioned conservatively to get through this very complicated time. That's really
what we're telling everybody so while my glass is half full, it's because ultimately, the world will continue to grow, earnings will continue to
grow. But we do have to be thinking about the near term, the next six to nine months, and how to position ourselves for that.
CHATTERLEY: Yes, it's so important, and there were many points that you - I want to pull out of that, would it be fair to say, actually, that what
you're saying is you're probably far more worried about what you're seeing in China, and the growth concerns in the E.U., simply because of the
kickback effect, they have to U.S. growth too. But it is really a global story at this moment. And actually, the picture elsewhere in the world is
worse actually than the United States.
BAILIN: That's exactly right, and you know, when these things happen, at the same time, they do have multiplier effects. But there are, as I said,
you know, hopeful signs. And what I mean by that is that the Fed at some point will realize its maximum rates.
And so for clients today who have cash, they should be buying U.S. bonds at these levels. Ultimately, after the Party Congress in China, as you were
just talking about, you're going to see right stimulus programs and real activity to really reinvigorate the Chinese economy.
The history of China, certainly over the last 20 years, says that once they have solidity of leadership, they will then act on the economy. And then in
Europe, you know, we're going to see government's act to cap energy prices, or at least do something to forestall their impact on the consumer, they're
going to have to do that.
But once we get through the winter, again, Europe a year from today, right will be far less dependent upon Russia as a source of gas right in general.
There are lots of transactions being done in Norway in the United States to mitigate their gas needs right for next year.
So you know, that's the thing is that investors are always about what's happening today? What's happening in the market this week? It's properly
priced for what's going to happen over the next six to nine months, if they're expensive, and they're a little expensive now, you have to be
cautious. And when things normalize, you have to be bold. And you know, that is not the time we're in right the second.
CHATTERLEY: Yes, it's interesting for much of this year, it's been a challenge to be invested in bonds to your point because rates have been
rising and that means bond prices come down and we've seen stock weakness and bond weakness.
But you're saying look, buy bonds, bonds are back but that goes to your point just to explain for my viewers that you think actually the Feds going
to come to a point where they realize perhaps that rates have gone up enough or they're virtually there in terms of if what's priced?
You know it's interesting coming out of earnings season if you look outside the financials and outside of the retail sector there is sort of a distinct
lack of concern I think and warnings about downgrades coming from analysts in particular too in a sort of lack of immediate concern in the forecast.
[09:30:00]
CHATTERLEY: And that doesn't really tie to what we've seen in stocks. So are you saying actually that there's going to be catch up from analysts and
for some of these businesses that will then sort of tied to what we've seen already in stocks? And that the disconnect; I think that we've seen there
will correct.
BAILIN: So first of all, your analysis is spot on, right? That is exactly what's taking place. The earnings estimates specifically in consumer
discretionary and banks have come down and their stocks will come down.
There areas in the market, you know, whether it'd be materials, right, as an example, and some of the technology names even still, that have not
adjusted their earnings, what we're talking about for next year just to encapsulate what you just said, is that we have to expect, right with a
slowing economy and with the Fed raising rates that the amount of profits that will be generated per unit of sales is going to go down for most
companies in the United States.
And that has to be built in. It doesn't mean they're going to go negative, it means they're going to go down. And that's what the market has to price
and it has not properly priced yet. That doesn't mean necessarily the market even has to retrace its most recent lows, but it could.
And then the question is, as I said, as we look out literally 18 months, can we imagine an upturn right in 2024 and we clearly see that on the
horizon. Lots to digest right now but the resilience of the market is real right the resilience of the companies that you talked about is real.
CHATTERLEY: I got it. David, great to chat to you as always, David Bailin there the Chief Investment Officer at Citi Global Wealth we'll talk again
soon sir thank you. We're back after this.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back! In Pakistan historic levels of flooding have left a third of the country underwater. With millions of people and in immediate
danger the UN is issuing an urgent call to the international community to do more to help.
[09:35:00]
CHATTERLEY: On Tuesday, Pakistan's largest lake was unexpectedly breached, exposing thousands more people to the risk of flooding. Officials say water
levels have remained dangerously high despite efforts to release water from the lake. Anna Coren has more on the devastation across Pakistan.
(BEGIN VIDEOTAPE)
ANNA COREN, CNN CORRESPONDENT (voice over): Stretching to the horizon and beyond an expanse of endless brown murky water, dotted with tops of trees
and roofs of houses. Never before has Pakistan seen this scale of flooding, as water now covers 1/3 of the country.
This climate change induced disaster has been months in the making, with more than double the amount of rain falling since May, in what the UN has
referred to as a monsoon on steroids. Last month deluge unleashing even more misery as violent torrents of water decimated townships, homes and
crops, the sheer volume unable to drain away.
CHRIS KAYE, PAKISTAN DIRECTOR, WORLD FOOD PROGAMME: Hundreds of thousands of families now have absolutely nothing. The land where they had their
houses totally flooded. They don't have anything more than what they're wearing.
COREN (voice over): 33 million people have been affected that's around 15 percent of Pakistan's population. More than 600,000 people have moved into
displaced persons camp. But some of the most vulnerable have been left stranded.
On this tiny strip of land or a number of families, their surviving livestock, a few belongings and 24-day-old Shamaliya (ph) her mother Kainat
(ph) is sick, exhausted and struggling to care for her sixth child. She's marked the baby's forehead to ward off evil spirits.
I want my baby to survive, but it's God's will if she dies she says. We cannot afford to move from this area. We are at the mercy of nature because
we are poor people. Kainat says she labored with baby Shamaliya through the rains.
The World Health Organization says 1.2 million pregnant women are among those displaced across Pakistan. A few bags of aid have been dropped off.
But it's not enough to sustain the families according to a 70 year old grandmother, who's witnessed three floods in her lifetime, but nothing
quite like this?
We keep our eyes on our children after sunset. They could fall down into the water and drown. We have one meal a day we have to say food for our
kids. God, please help us. But it's not just a lack of food they're worried about mosquitoes, venomous snakes and waterborne diseases are a constant
threat.
The W. H. O. says cases of typhoid, malaria and diarrheal diseases are rising and will undoubtedly worsen. Foreign aid is slowly trickling in,
Former U.S. Ambassador to the UN and now Head of USAID Samantha Power and UN Secretary General Antonio Gutierrez are due to arrives in Pakistan this
week, in a desperate bid to ramp up international assistance and support.
KAYE: Pakistan looking forward is very dire. We've got to be there for the long term. We've got to be there for three or four months minimum in order
to save lives.
COREN (voice over): But for these people, mere survival is a daily struggle. And these clear blue skies aren't expected to last long. More
devastating, monsoonal rains are days away to further terrorizing a traumatized country. Anna Coren, CNN, Hong Kong.
(END VIDEOTAPE)
CHATTERLEY: OK, coming up here on "First Move", the CDC says nearly a quarter of young adults in the United States were treated for mental health
issues during the pandemic. After the break spotting the signs and coping strategies for children and teenagers. Mallika Chopra has some important
advice next.
(COMMERCIAL BREAK)
[09:40:00] CHATTERLEY: Welcome back to "First Move"! Now on this show we haven't shied
away from open discussions about mental health particularly over the last two and a half years. The effect on children and teenagers also shouldn't
be underestimated either.
The Child Mind Institute's latest research found 37 percent of teenagers said their mental health had worsened since 2020 with social anxiety, just
one of the challenges they face. It's particularly poignant this week, as many begin a new school year.
Well, my next guest believes tools like meditation forms of mindfulness, and simply making time to breathe out can help. Mallika Chopra, the
Daughter of Deepak Chopra is a mother and entrepreneur and author and her latest book "Buddha and the Rose" is adapted from a classic she heard as a
child.
It's a calming story about our connection with the natural world and how you can just as simple flower can help us be more present in the moment.
Just take a look.
MALLIKA CHOPRA, AUTHOR, BUDDHA AND THE ROSE: I grew up in a family where we heard a lot of stories many people know my father, Deepak Chopra. So in
addition to learning meditation and other techniques, we had these wisdom traditions and these stories.
And so this story, "Buddha and the Rose" is a very classic story, where Buddha just sat with a rose in his hand, it's called the "Silent Talk". And
so I thought that it was a beautiful starting point for kind of this awakening and a moment of joy and awe and inspiration for what I added as a
young girl who witnessed this. And I just feel today we're living in a time where we really need some joy and some inspiration. So I hope that the book
offers that.
CHATTERLEY: You know, the dedication, this book and there are two of them. You've mentioned your father and of course your mother as well, which I
think they're brilliant people but you also put to my sweet babies.
Now young ladies, I love you, Tara, and Leila and you understand better than most I think the challenge of trying to keep children occupied keeping
them busy keeping them out of trouble being a working mother and entrepreneur and author and trying to find some balance between keeping
them busy the overstimulation that they the world social media provide versus finding, I think these moments of silence and appreciation for any
parent or educator, how do you find that balance? How do you help young people find that balance and recognize that this is important too?
CHOPRA: Oh, boy, what a big question? Yes, I think so many of us as parents, as adults who love children are struggling often with finding this
balance because we're living in a time where everything is over stimulated overdramatized.
And we're seeing just record levels of anxiety and depression in our children. So I hope that through some of my work, we just help kids take a
deep breath and I really focus on that just taking a breath in and out.
And as adults if we can role play for our children finding these moments of connection I think we can help them. And then there are so many resources
in the world now where we can use technology to, you know, get them doing a guided meditation or reading a book.
[09:45:00]
CHOPRA: But I always suggest the best thing is time with your children go for a mindful walk outside, go look up the sky and feel the sense of
infinity and expansiveness. And those are wonderful ways we can connect with our kids in micro moments and then those add up.
CHATTERLEY: For me, I think, and it's not just about this book, it's your previous books as well. It's a great entry point for adults too, because,
you know, I'm at the very early stages of learning about meditation and the power of meditation.
And particularly the power of silence when you're surrounded by so much noise and conversation, which I love too, but I have to say, I hear a lot
of skepticism from people back and they say, I can't focus. I think of other things, things pop into my mind. And I think one of the things that I
appreciate most is that's OK that is going to happen, your mind is going to do that. And you sort of acknowledge the point and you let it go.
I think that the simplicity of what you're providing in these books, whether for children or adults is crucial for everyone to understand that
it's possible. Meditation is possible on mindfulness, which is separate, but also similar is possible, and it's accessible for anyone?
CHOPRA: Yes, and that's the most important point. We hear people always say that, oh, every time I meditate, I fall asleep. Well, that just means
you're tired, or every time and I wonder if that's normal, our mind is supposed to wander.
So I feel really lucky. You know, I grew up with so many of these techniques. And then as I dedicated the book to my daughters Tara and Leila
I taught my kids. And what I learned is that we don't have to intellectualize this stuff too much.
CHATTERLEY: Yes.
CHOPRA: We can just start with a deep breath. We can start with simple affirmations. We can start with just looking at a rose or any object. And
so thank you, because I have heard that many adults have enjoyed my books because they're simple.
And these techniques are super simple. They shouldn't be that complicated. And we want to just make them joyful. That's the point. Make them joyful.
Have a connect with something that's deeper than ourselves, whether that's our bodies, or our environment, or something more.
CHATTERLEY: Mallika, back to the point where we began and the use of these classic stories to introduce these concepts. How do you look for signs of
concerns in your children? I mean this is a way to perhaps help them address anxiety.
But most children happy go lucky getting on with their day going to school maybe don't tell you if they've got problems? Is this one way perhaps to
look for signals of challenges, I think for young people, because we see it in the numbers, but we don't often have the conversations with our
families.
CHOPRA: Yes, so it's hard. It's hard for parents because also at different ages, we can interact with them in different ways. So with the reason I'm
doing some of these picture books is like starting at a very young age helping kids connect with their bodies.
Our children are really good at telling us that I have butterflies in my stomach or my stomach hurts. Or, you know, my heart is breaking or hurting
or I have dryness in my throat so like we can sense by their language, sometimes, especially with the younger ones.
As they get older, it's harder. And so I think as parents, finding ways that we can connect with them, but I'm a big believer in also kind of
developing that community conversation so being in touch with teachers, if you can, or other mentors.
So just having a lot of eyes on your children, as well because sometimes they present really well but there's deeper stuff going on. And my biggest
advice to parents, which is something I learned from my parents Rita and Deepak Chopra is role model for them.
So the more that you are taking a deep breath, that you're finding your practice, but also that you're being honest with your children about things
that you may be struggling with that may help open a conversation.
CHATTERLEY: Yes, I wholeheartedly hear that. I borrow your mother's advice as well. And she told me you just need silence. Yes, sweetie, you're
absolutely right.
CHOPRA: So hard to know, right?
CHATTERLEY: Yes, it is. Yes.
CHOPRA: Just read helps.
CHATTERLEY: Good advice. Thank you for talking to us about the book. It's beautiful. I recommend people of all ages take a look. Thank you great to
chat to you.
CHOPRA: Thank you Julia.
CHATTERLEY: Thank you. Just need silence you get a moment off. We're back after this stay with us.
(COMMERCIAL BREAK)
[09:50:00]
CHATTERLEY: Welcome back to "First Move"! It's not been a September to remember on Wall Street at least so far. That said U.S. stocks are moving
solidly higher now look at that in early trade tech in the green for the first time in well over a week.
Brand new data shows the U.S. trade deficit tumbling to a nine month low with exports at records that will surely help boost GDP this quarter.
That's also tied to the strength of the dollar of course because the monetary value of them is grown.
But it's also perhaps another strong red flag for the Fed. Solid data in the United States but growing recession fears overseas driven in part as
we've been discussing throughout the show by China's widening COVID lockdowns in cities like the manufacturing hub - slow growth fears
triggering a sharp pullback in oil prices today too, both Brent and U.S. crude down as you can see approaching 4 percent right now.
And a warning to Netflix from Arab nations the Gulf Cooperation Council led by Saudi Arabia demanding the streaming giant remove all content that it
says violate Islamic values. Scott McLean joins us now on this. Scott was the GCC specific about what they're taking offense to on what they want
removing?
SCOTT MCLEAN, CNN CORRESPONDENT: Yes, Julia. So the initial statement that you referenced there wasn't actually specific didn't actually point out the
content that supposedly violated Islamic and societal values.
But a Saudi TV reports did. It air a blurred clip from a show called Jurassic Park Camp Cretaceous. This is an animated spin off of the Steven
Spielberg's Jurassic Park films and it's aimed at kids.
And in the scene, its nine episodes into the most recent season, which was released earlier this year. Two female characters declare their love for
one another and then there's a kiss and then once the other characters see what had happened, they sort of cheer.
The state TV report said that this kind of content was calling for homosexual actions and moral corruption. The statement from the GCC and the
Saudi government essentially warned Netflix to take it down saying and I quote "The concerned authorities will follow up on the platform's
compliance with the directives. And in the event that the violating content continues to be broadcast, the necessary legal measures will be taken".
The Emirati government Julia also put out a very similar statement demanding that this content be taken down and it seems that Netflix
actually has taken action. If you log on to Netflix the Emirati version of it at least in the children's section you will not find this Jurassic World
Show. It is still though listed on the adult section. So if you're logged in with an adult profile, you'll still find it though.
It carries the rating now of 18 plus. Of course homosexuality in UAE and in Saudi Arabia it is illegal. In fact the Saudis recently a few months ago
went so far as removing rainbow colored toys rainbow colored clothing from stores.
[09:55:00]
MCLEAN: And from marketplaces for the exact same reason that they want this show censored that they believe that this is offending Islamic values and
societal values. This though all presents quite the dilemma for Hollywood this bubbled up earlier this summer with the release of the Buzz Lightyear
film which was not shown in many Arab countries because there was a similar same sex kissing scene.
Disney had initially actually not even had that scene in the show. It was only put back in later because of pressure from its own employees. So this
is the kind of conversation that's not having being had not just in the Gulf, but also in the U.S. about what is and is not appropriate to show
children that don't say gay bill in Florida just one example, Julia.
CHATTERLEY: Yes, and what the streaming giants do about it and what they say about it? No, nothing from Netflix on this so far, but as you said,
perhaps those restrictions on adults versus children is perhaps one way around it. Scott will continue to report on this. Thank you for that there.
OK, that's it for the show. "Connect the World" is up next.
(COMMERCIAL BREAK)
END
