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First Move with Julia Chatterley

King and Queen to Meet Families Affected by Nursery Massacre; Belarus, Ukraine & Russian Human Rights Activists Win Award; U.S. Economy added 263,000 Jobs in September; Musk has Until October 28 to Close Twitter Deal or Face Trial; Fighting Takes a Toll on Russia's Wagner Mercenaries; U.S. Stocks Drop after September Jobs Report. Aired 9-10a ET

Aired October 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)

ZAIN ASHER, CNN HOST, FIRST MOVE: Coming to you live from New York I'm Zain Asher in for Julia Chatterley, welcome to "First Move". Let's take a look

and see what U.S. futures are doing right now. Down ever so slightly after the September jobs report, the economy added 260,000 jobs last month

topping the estimate of around 250,000.

The unemployment rate dropping to 3.5 percent the Federal Reserve is of course trying to cool inflation. Today's figures, though, could be a sign

that the labor market remains resilient.

Thailand is in mourning, a day after the country's worst massacre. We told you about this story yesterday; a man killed at least 36 people including

24 children in a Daycare Center, the King and Queen of Thailand meeting families of the victims right now. We'll have a live report for you from

Thailand in just a moment.

Plus, how real is the risk of nuclear Armageddon; President Biden had a chilling warning about Vladimir Putin's threats that is coming up. But

first, the September jobs report shows the U.S. labor market remains solid. Let's bring in Marc Stewart joining us live now from Washington.

So Marc, how should we read these numbers 260,000 jobs or so added in the month of September? On the one hand, certainly robust but on the other

hand, it's coming in slightly sort of more cooler than previous months, perhaps showing that maybe what the Fed is doing, is working, walk us

through.

MARC STEWART, CNN CORRESPONDENT: And that's exactly what the Federal Reserve wanted to hear the economist expectations were about 250,000 new

jobs slightly a little bit higher. But that's OK, it's better to be solid in this case than stellar.

This jobs report is one of many metrics that the Federal Reserve will use to determine future interest rates, which in turn, determines how much we

spend for everything from groceries to household cleaning supplies. And also has an impact on how many businesses pay to do business not only in

the United States, but also around the world.

The one thing the Federal Reserve is probably hoping or was hoping was that if we had a really high jobs report it would indicate more people are

working. And that would mean more money is changing hands, more license to spend money. At a time when we want that demand to kind of cooled down

because inflation is so high.

So basically, the Federal Reserve will look at this and other metrics to determine exactly how much to raise interest rates and when? But right now,

this kind of shows that things are cooling off perhaps just a little bit. And that could have an impact on the consumer front in the very end, Zain.

ASHER: So obviously, the headline number is important here. But I think what the other sort of issue that people are looking at is, of course,

wages. What did we see on that front?

STEWART: Some, it will actually vary sector by sector. If I'm remembering the report, I'm digesting it all right now, some gains in wages, I believe.

It's also important to point out that people had actually been quitting their jobs; especially in data released earlier this week, people are

quitting their jobs.

And they are finding success in getting other positions. They feel that the jobs are there, and in many cases, they are quitting knowing that they can

get more from another employer.

ASHER: Right, Marc Stewart live for us there, thank you so much, Marc. Right, the king and queen of Thailand are about to meet grieving families

following Thursday's massacre at a nursery which claimed the lives of 36 people most of the victims were children. Earlier, the Prime Minister

visited the hospital to meet with survivors across the country flags had been lowered in mourning.

CNN's Anna Coren has been speaking to first responders. And we should warn you that there are very many distressing images ahead. Anna, I imagine that

for first responders rushing to the scene, I mean, what they saw, must have been horrific. It's all the sorts of things that will stay with you for a

very, very long time. What more are we hearing about sort of the portrait of some of the victims here as well?

ANNA COREN, CNN CORRESPONDENT: Yes, Zain, we caught up with the two first responders who were on the scene moments after that stabbing frenzy that

took place yesterday at a Daycare Center not far from where we are in Nong Bua Lamphu in the Northeast province of Thailand.

And you know, they did talk about this nightmare that they witnessed and that they had to gather themselves together to go ahead and check the

bodies that were strewn around them across three rooms, pools of blood, you know the scenes that they described.

[09:05:00]

COREN: We're actually Zain, given access to photos of the massacre, but we decided not to add them as we do want to distress the viewer's anymore. But

certainly we are here at the hospital. We're expecting the King and Queen of Thailand to arrive very shortly.

We've just been moved on by the military as we weren't allowed to stay where we were located. But this is certainly a big moment for Thailand. So

much pain, so much grief and then you have the King and Queen coming to meet the survivors and the families of the victims.

(BEGIN VIDEOTAPE)

COREN (voice over): Sitting in the stifling heat under a corrugated iron roof, a mother is unable to contain her heartache and anguish. Her pain

muffled by the collective grief being felt in the province of Nong Bua Lamphu in Thailand's Northeast after a disgraced police officer went on the

country's most murderous rampage in recent history inside a Daycare Center.

Of the 36 victims 24 were children. 4-year old Dan was one of them. This happy cheerful little boy was expecting a baby brother in a matter of

weeks. His mother barely conscious as she sits with other grief stricken parents and relatives, who've come to register for assistance at the

government relief center, just meters away from the scene of the massacre.

OY YODHKHAO, GRANDMOTHER: I can't imagine this kind of person exists, says his grandmother. I can't imagine a human could be this cruel to children.

COREN (voice over): For this couple clutching each other, their loss is unfathomable. Their 3.5-year old fraternal twin boys were wrapped and wore

upon their only children were slaughtered. Here we see them in the car with their parents, just days before their future was horrifically cut short the

father now speechless the mother still in shock.

PIMPA THANA, MOTHER: They were so talkative. They were at that age where they talked a lot she explained. They had different characters. They were

so lovely.

COREN (voice over): For the emergency crews the carnage they witnessed when they walked through the doors is a nightmare. They won't ever be able to

erase.

AKAPIN NANTHA, FIRST RESPONDER: The first thing I saw when I opened the door I was stunned. I had to gather myself, he says. I have never seen

anything like this before.

COREN (on camera): We are learning gruesome details about what happened at this Daycare Center from the first responders who were on the scene. They

said that they found the bodies of the children and teachers spread across these three rooms and we can still see the bloodstains splattered across

the floor. They said all the bodies had knife wounds to the head.

COREN (voice over): One of the children had tried to protect his face when the attacker wields the knife when responder says he also found two

children still alive.

PORNPET KHAOKA, FIRST RESPONDER: The first image I saw was children covered with blood he remembers. I was trying to transport them to the hospital.

Some of the kids still had a pulse, but I don't know if they made it.

COREN (voice over): While children's pictures and animal masks decorate the walls. The innocence of this Daycare Center has been lost forever.

Bloodstains smeared throughout the classrooms, the furniture and abandoned school bags, a ghastly reminder of the horrors and evils unleashed in this

refuge for the communities youngest and most treasured.

(END VIDEOTAPE)

COREN: --it's quite rare for the King and Queen of Thailand to meet the public. But this is such a momentous occasion, certainly a time of grief

for the country that it's seen as this national mourning, national healing event. Many of the families of the victims they are going to a nearby

temple where they are paying their last respects to some of the bodies that have been released. Many of the bodies have been stored here for autopsy.

But they are then being released to the families where they are held at these temples for several days before they are cremated. Of course,

Thailand celebrates Buddhism, and so this is their way of prevailing the dead but there's so many children and adults that they have to feel well,

Zain.

ASHER: An important piece there Anna Coren. But I have to say incredibly painful to watch. Anna Coren live for us there. Thank you so much. Right,

U.S. President Joe Biden has given a stark warning about the dangers behind Russia's nuclear threats.

[09:10:00]

ASHER: President Vladimir Putin recently suggested that Russia might use nuclear weapons as its conventional forces in Ukraine are driven back. On

Wednesday night, Mr. Biden said there's no such thing as the ability to easily use a tactical nuclear weapon and not end up in Armageddon.

Jeremy Diamond joins us live now. So what can we read into these comments about how likely the Biden administration actually believes that it is that

Putin would indeed resort to nuclear weapons here?

JEREMY DIAMOND, CNN WHITE HOUSE CORRESPONDENT: Well, there's no question that there is an elevated risk of Russia using a nuclear weapon in its

conflict in Ukraine. And that's largely driven by the increasingly bellicose rhetoric of nuclear threats that we've heard from the Russian

President.

Just last week, he talked about the fact that he would use all means necessary to defend Russian territory and in the same breath, he was

talking about what he believes is a precedent that the U.S. set in World War II, when it used nuclear weapons against Japan.

But to the President's specific comments this is no doubt the starkest most striking language that we've heard from any U.S. officials talking about

this risk of nuclear war with the U.S. President essentially saying that he believes that the prospect of nuclear war is at its highest. It's been in

60 years since the Cuban Missile Crisis.

And that colorful language that the President employed there did catch some U.S. officials off guard, in part because of the colorful language that he

used, but also because of the fact that U.S. officials say that the President's rhetoric was not driven by any new intelligence about Russia's

nuclear posture. U.S. officials say they've seen no indication that Russia has changed its nuclear posture. They don't have any assessment that Putin

has decided to use a nuclear weapon in Ukraine.

But what they do see is the rhetoric from the Russian President that they have been closely watching and they are also closely monitoring for any

changes in Russia's nuclear posture. But as of yet, Zain they say that they have not yet seen that. But they are on guard and the U.S. has drawn up

contingency plans. Should Putin decide to use a nuclear weapon?

It was just a couple of weeks ago that the U.S. National Security Adviser Jake Sullivan warns Russia directly that it would face catastrophic

consequences should it choose to do so. And we also know that privately the U.S. has relayed in more specific terms, what the consequences of such an

action would be.

ASHER: And one of the issues on Biden's plate is, of course, how to respond to the OPEC production cuts, just walk us through what his options are on

that front as well.

DIAMOND: Yes, we know that the United States has been continuing to release millions of barrels of oil from the U.S. Strategic Petroleum Reserve; the

President said that the U.S. release another 10 million in response to this action. That was actually part of the 180 billion that the President said

he would release last spring.

I talked yesterday to one of the top U.S. officials handling this issue here at the White House. And he said that he wouldn't telegraph whether or

not the U.S. would release additional barrels of oil from the Strategic Petroleum Reserve to shore that up. There was also discussion of

potentially easing some sanctions on Venezuela to get more oil from there.

The President was asked about that yesterday and he said that there are a lot of alternatives on the table to try and make sure that this doesn't

spike up U.S. gas prices, particularly ahead of these midterm elections. But that no decision he said has been made yet.

But there's no question, Zain that there is a heavy sense, as the President said of disappointment in Saudi Arabia, for choosing to go this direction

along with Russia and other members of OPEC Plus to cut up production of oil certainly after the President made a lot of efforts to go to Saudi

Arabia over the summer, that same as perhaps infamous fist bump with the Crown Prince Mohammed bin Salman.

There's no question that U.S. officials here certainly feel betrayed in the sense by Saudi Arabia's decision to do this, but they are looking for

alternatives to make sure it doesn't hit consumers as strongly as it might.

ASHER: Jeremy Diamond live for us there, thank you so much. The Nobel Peace Prize has been jointly awarded to a Belarusian activist and Human Rights

Organizations in both Ukraine and Russia. Laureate Ales Bialiatski has been detained without trial in Belarus since 2020, after he was arrested during

widespread anti-government protests.

Joining me live now is Nina dos Santos. Santos, this is somebody who has really spent a long, long time documenting human rights abuses in Belarus.

And also challenging Lukashenko's consolidation of powers as well, walk us through.

NINA DOS SANTOS, CNN CORRESPONDENT: Yes, that's right, all the way since 1996, when he founded Zain, an organization called Viasna, which means

spring, there in Belarusian. And it was designed as you said, to try and provide a counterweight if you like and certainly accountability towards

this growing power creep.

[09:15:00]

SANTOS: From the current President of Belarus, Alexander Lukashenko has often been described informally as Europe's longest serving and last

dictator. As you said, this individual Ales Bialiatski has been under arrest since 2020. He's also been arrested and served time for his

political activism in the years before that.

Now back in 2020, remember, there were street protests that turned violent and were violently cracked down upon by authorities after a disputed

election between Tikhanovskaya the opposition, Svetlana to kind of scale, the opposition candidate against Alexander Lukashenko and Lukashenko

himself, who obviously claimed victory in that disputed election.

And Ales Bialiatski has been in jail ever since then. His organization was one of three from Eastern Europe, obviously a region that is now beset by

war and aggression as well as growing authoritarian or growing authoritarian creep, not least from the shadow of Russia under its current

President Vladimir Putin.

And indeed the other two recipients of these Nobel Peace Prizes today, work coming from Russia, we had the organization Memorial, which you remember is

a Human Rights Organization set up at the end of the 1980s just before the fall of communism to document the atrocities. And human rights abuses

committed under Soviet times from Joseph Stalin's time and power all the way towards the present era that was shut down by a Russian court.

Memorial believed for political reasons back at the end of last year, and in giving this award to Memorial, the Nobel Peace Prize Commission said

that what they wanted to do is make sure that memorials legacy was not forgotten, even though the organization had now been shut down. And last

but not least, we also saw an organization from Ukraine, which was called the Center for Civil Liberties, founded in Kyiv in 2007, jointly received

this award.

They have been consistently pushing for rigorous democracy in Ukraine and now been playing a big effort in trying to document the allegations of war

crimes that we've seen since the invasion by Russia war Ukraine. That started back in February, and they were able to speak out this is what they

said about how important it was to receive this important accolade today.

(BEGIN VIDEO CLIP)

ANNA TRUSHOVA, CENTER FOR CIVIL LIBERTIES: When someone's work is recognized, particularly at such a level, it is a motivation to do even

more, take up new important initiatives, important projects, so that there is peace in our country, freedom and democracy.

(END VIDEO CLIP)

SANTOS: Well, the Nobel Peace Prize obviously sends a really important political message and that's what we see year after year. The Laureates

often reflect what is happening in the world. And at this time when war has resurfaced inside Europe, for the first time since the Great First and

Second World Wars this is a prize championing those who are fighting for peace in the hot zones on the Eastern side of Europe, Zain.

ASHER: Fighting for peace and also accountability, documenting war crimes as well. Nina dos Santos live for us there, thank you so much. All right,

the barrage of missile tests by North Korea in the past two weeks are raising alarm bells that Kim Jong-un is about to escalate tensions even

further with another nuclear tests.

Senior White House officials privately admit they don't know why North Korea has suddenly stepped up its ballistic missile tests. And they say

they can't predict what Kim Jong-un will do next, because of a lack of hard intelligence from inside North Korea.

Paula Hancocks joins us live now. So Paula, in terms of these missile tests, at the very least the U.S. responding with drills really a show of

force between the U.S., South Korea and Japan in the face of these missile tests, just walk us through that.

PAULA HANCOCKS, CNN CORRESPONDENT: Yes, Zain so we've heard of yet another naval drill today, this Friday. We're hold by the South Korean side that

did last Friday and Saturday. So this is the U.S.S Ronald Reagan destroyers within that strike group. And also destroyers from South Korea will be

carrying out these drills.

So it's yet another show of force from the U.S. and South Korea just yesterday on Thursday. Japan's Navy was involved in a drill as well, that

particular one was specifically to detect a tract and to then intercept missiles. So very pinpointed towards what they're facing at the moment.

And they're very clear about why they're doing this the fact that they want to show North Korea that they are more than capable militarily to strike

back if they so decided to. Now we also saw on Thursday, what the Joint Chiefs of Staff here in Korea called a protest flight from North Korea.

They said it appeared to be 12 aircraft carrying out an air to surface firing exercise and that was just slice of what's called that the special

surveillance line.

[09:20:00]

HANCOCKS: It's effectively a virtual line it's within North Korea itself. But the South Korean Military and Aircraft that have a rule that if they

see North Korean Aircraft come south of that line, then they mobilize. And that's exactly what they did on Thursday mobilizing some 30 aircraft

themselves.

Now, we haven't been told how close to the DMZ, the demilitarized zone, either side came. But certainly it's just another example of the fast

reaction and response that we're seeing from the U.S. from South Korea, and also from Japan. And it also leads many experts to believe that this sort

of tit for tat response and action is something that will continue for some time to come, Zain.

ASHER: Paula Hancocks, live for us there. Thank you so much. Still to come here on "First Move", more on the trend in the U.S. job market, as

investors and business owners worry about the chances of a recession. And close the deal or head to court; judge gives Elon Musk a deadline over

Twitter stay with us.

(COMMERCIAL BREAK)

ASHER: All right, welcome back today's top story 263,000 jobs created in the U.S. last month, September, the second straight month that we've seen,

the numbers of new jobs actually go down. But with the unemployment rate also dropping and nearing a 50-year low as well. It is still a very, very

tight labor market.

And economists are naturally looking closely at where jobs are being added, especially as expectations grow that a recession is coming. Joining us live

now is Julia Pollak, Chief Economist at ZipRecruiter. Julia, thank you so much for being with us. First and foremost, what do you make of the

headline number with the jobs report here? 263,000 jobs added in September is what the Fed has been doing when it comes to monetary policy actually

having an impact here.

JULIA POLLAK, CHIEF ECONOMIST, ZIPRECRUITER: Yes, you know, this is some of what the Fed is looking for moderating but still very robust job gains and

cooling wage growth, clearly cooling wage growth, but not all of what it wants to see. I think the Fed would have wanted to see the sort of

constraints on labor supply come off and people flood back into the labor market that's not happened.

[09:25:00]

ASHER: And for people who are in sort of pool of workers, you know, looking for work right now how much is for example, rising interest rates lower

stock prices a stronger dollar having on the recruitment ability and willingness for employers right now.

POLLAK: So increasingly, we are going to see this labor market turn into a story of two separate labor markets. One very robust, strong, still adding

jobs in huge numbers, as we saw in leisure and hospitality today, you know, there are still industries that are roaring back that are recovering and

now we are seeing a set of industries that are disproportionately affected by those factors that you mentioned, starting to make some cuts.

So in this report, we see some cuts in financial services and insurance. We also saw some cuts in advertising industry that somehow seems to get cut

first, when companies are worried about the future outlook.

ASHER: When it comes to wages, I mean, that is a sort of a real important area that everybody especially investors are going to be looking at very

closely right now too as they watch, where the Fed might be headed next?

POLLAK: So in this report, you know, we now can see a clear downward trend in wage growth, but not across the board. So construction workers saw wage

growth go up. But you know leisure and hospitality was really where wage growth was huge and nonsupervisory. The non-managerial employees were

getting double digit wage increases earlier in the pandemic, that's now come down substantially.

Nevertheless, you're with such a low unemployment rate. With so few unemployed people per opening, per job opening, we are still seeing

enormous wage growth pressures, and it's still a great time to be a job seeker in this market.

ASHER: Still a great time right now, as we both had been talking about the labor market is still very tight right now. But there are fears that a

recession is on its way in this country. How do you think the labor market is going to be impacted in the short term if the fears of a recession

continue to grow stronger?

POLLAK: So what we're seeing now is the labor market where employers are reducing their future headcount growth goals, but not cutting headcount,

for the most part. So companies are very worried about the future outlook, they are hardening themselves against the risk of a downturn. But because

business remains strong, because the U.S. consumer is continuing to come to visit to their businesses and buy, buy, buy.

They do not actually have to make those cuts just yet. So it's a very interesting time where job seekers are becoming a little more cautious, a

little bit more willing to negotiate. Employers are only hiring for essential roles.

And that means I think in recession, that there will be less fat to trim. I don't foresee a huge uptick in layoffs. Layoffs right now are still near

record lows, about 500,000 fewer people being laid off or fired each month than was normal before COVID.

ASHER: I think what's really interesting is that, of course, we know that there's a lag time between, you know, some of the sort of Fed policies when

it comes to monetary policy and raising interest rates and what happens in the labor market. We understand this that sort of a 6 to 8-month lag time.

However, this labor market does appear to be extremely stubborn, sort of feels as though some of the efforts that the Fed has implemented haven't

seemed to work as quickly, as perhaps Jerome Powell would have hoped. Why not?

POLLAK: Well, you know, the new market is still very strong because U.S. consumer is very strong household balances are very strong. Took, about two

thirds of U.S. mortgages are at a lower than 4 percent rate and only 2 percent of those mortgages are adjustable rate mortgages. So the Fed can

raise interest rates, all it likes.

But homeowners are not actually seeing their monthly mortgage costs go up at all. Renters, of course, are getting squeezed a bit. And so they are

going to make some changes to their spending habits. And that could affect some businesses. But for the most part, the U.S. consumer remains strong.

You know, I was expecting that we might see a bit of a downturn in employment in other services, you know, things like personal care services

and Pet Services.

We're not seeing that yet. Those industries remained strong. Even in the sort of recession indicators in the job market, things like temporary help

Services Employment, which tends to go down in the months leading into a recession. We're not yet seeing any warning bells go off in the labor

market indicators.

ASHER: All right, Julia Pollak live for us there. Thank you so much. After the break evidence that the U.K. economy was taking a hammering even before

last week's currency crash, we'll hear from the British Chamber of Commerce next.

(COMMERCIAL BREAK)

[09:30:00]

ASHER: Right, welcome back to "First Move". Wall Street opening lower this Friday. Let's take a look here. Up slightly down after the September jobs

report showed a still strong labor market. The U.S. added 263,000 jobs last month, the unemployment rate drops to three and a half percent as well.

Shares of AMD are falling after the chip maker cut its revenue forecasts citing weaker than expected. Demand and the jeans maker Levi Strauss is

sliding another company that has lowered its outlook as well.

Meantime, investors watching cannabis stocks following yesterday's big jump after President Biden pardoned all federal offenses of simple marijuana

possession. A deadline to make a deal in the Twitter, Elon Musk's soap opera, Delaware judge has ruled that the billionaire has until October 28

to close the deal to buy Twitter or else Twitter's legal action will force him to pay up and that will go ahead.

Lawyers from us filed a motion to call off the trial because of change. Circumstances namely Musk's letter telling Twitter he was willing to

proceed with the purchase. Paul LA Monica joins us live now, so Paul, clearly such little trust on either side here.

PAUL R. LA MONICA, CNN REPORTER: Exactly Zain. As you point out Elon Musk has now said that he's willing to do the deal for Twitter again, but that

isn't the same thing as having the financing commitments being firmly in place funding secured, if you will to use a famous Musk tweet.

And I think Twitter is skeptical because we have been in a situation where Elon was gangbusters to do the deal then he got cold feet because of

concerns about fake accounts. Now it seems like maybe he saw the legal writing on the wall the whispers that, you know a judge might force him to

do the deal so he's willing to make this purchase.

Again, it's understandable that Twitter is skeptical and wants real clarity, not just more possibly broken promises from Elon Musk.

[09:35:00]

ASHER: And switching gears slightly cannabis stocks rising right now after President Biden announced that he's going to be granting pardons for

federal marijuana possession convictions to.

MONICA: Yes, it was a stunning move Zain yesterday to see the shares of there, there are about half dozen cannabis ETFs. They all soared after the

Biden news, several of the top Canadian cannabis companies that have shares listed in the United States like Canopy Growth and Tilray, Tilray, which

reported earnings this morning Chronos all of them surging as well.

And I think really the bet here, Zain is that investors are looking ahead and hoping that this news from Biden potentially opens up the door for the

possible federal decriminalization of marijuana legalization of cannabis sales. So it's not just at a state by state level that may still be a long

time away if it ever happens.

But obviously, that's what traders are betting on with the surge that we saw on all those cannabis stocks and ETFs yesterday and continuing into

today.

ASHER: Right Paul LA Monica live for us there. Thank you so much. Right, this week, British Prime Minister Liz Truss said her focus was growth,

growth, growth. But not everyone sees growth on the horizon. Deutsche Bank says the UK economy will be weak until 2024.

And now the British Chambers of Commerce says that business confidence has declined significantly. The survey of over 5000 firms which is carried out

before last week's market turmoil reveals that 39 percent of businesses in the UK, I think that their profits will fall over the next year only 33

percent reported higher sales compared to 41 percent last year.

More than four out of five firms say that inflation is a concern, growing concern for them too. Shevaun Haviland is the Director General of the BCC,

Shevaun, thank you so much for being with us. When you think about the headwinds that a lot of British firms are facing, be it inflation,

obviously a weaker pound rising interest rates, part of businesses plan in that kind of environment.

SHEVAUN HAVILAND, DIRECTOR GENERAL, BRITISH CHAMBERS OF COMMERCE: Yes, as you said, you know, business confidence continues to fall 85 percent of

respondents said that inflation was their number one concern, and that's for the fifth quarter in a row. And remember, the quarterly economic survey

has been running for 30 years.

And this is the first time inflation has ever been a top concern, so that you know that that's bad news. It was - we welcome we very much welcome the

government the government's package on energy for business, and also the reversal of National Insurance contributions, which will put money back

into business's pockets.

But they are still we're still seeing 10 percent inflation and increasing, increasing interest rates. So what we want to see from government is them

to come forward with their fiscal plans.

We need a long term economic strategy, which will hopefully bring a bit more stability and give business a bit more confidence to plan ahead.

ASHER: Why because you sort of talked about the energy caps, the caps on energy bills for businesses, which is much shorter than for individuals,

it's only about six months for businesses. For individuals, it's two years or so. You know, how much sort of leeway does that give businesses in terms

of planning for the future? Six months, certainly better than nothing, but not a whole lot of time?

HAVILAND: Yes, that's right. So that package was it was big, it was broad, it covered business of society, charities, public sector, and it covered

all sectors of business. So that was definitely welcome. Six months was a matter of time when you're running a business, enough time to see us

through the winter, effectively. But what we don't want is a cliff edge at the end of that where, you know, we're back to soaring energy prices.

And some of our businesses when they move from fixed plates to variable rates, they may opt in 200, 300, 400 percent increases in their energy

bills. So we want to work closely with government. There's a three month review in that six months to say what we are going to do at the end of six

months. We don't need a cliff edge for business; they need to be able to plan ahead.

ASHER: And speaking of planning, how are UK businesses planning or how should they be planning for a possible recession?

HAVILAND: So what businesses are telling us is that they are its very hard for them to see very far ahead. We know that next year is going to be a

tough year. So they are saving cash. They're looking after their cash flow.

They're probably dealing with about 20 percent input inflation and about 10 percent output inflation. So they're absorbing as much of those costs as

they can because they don't want to pass them - to consumer, which means that they are saving cash. They are probably freezing hiring and they are

being very careful with any level of investment.

[09:40:00]

ASHER: And just in terms of, because it's not homogenous, you know, the business sector in the UK is not homogenous, various sectors are bearing

the brunt of this more than others, I imagine that the retail sector is going to have a tough year ahead, especially.

HAVILAND: Yes, we've seen retail and the hospitality sector, both already suffering more than others. We are seeing hotels, closing floors in their

buildings, and pubs and restaurants working out maximum 80 percent service levels, and maybe not opening every day of the week in certain parts of the

country.

So they are definitely reducing production, we will see issues there, but also manufacturing construction. You know, we had a member who has a very

strong order book in terms of manufacturing that because they've got really severe outgoings for their energy costs, it means they've got less cash to

buy raw materials to make their product, even though they've got a strong order book.

So there's really a knock on effect across the border. Remember, small businesses tend to buy energy a bit like consumers, so they also - big

businesses.

ASHER: And I understand that several businesses in terms of amendments - have actually told you that this period of economic uncertainty, some of

them have said that it's actually worse than COVID. Do you find that quite surprising?

HAVILAND: So we did find it surprising at first, but actually, if you think about it, when businesses came out in the UK anyway, came out of COVID. At

the end of last summer, they were already suffering with diminished cash flow that was sort of coming back into the economy.

And actually straight away last summer, they were hit with increased price of raw materials with increased shipping costs, with difficulty of getting

staff and now eye watering energy prices. So it's just a tsunami of costs. Its one thing after another and the problem is they don't have clarity for

the future.

So that's really why we're saying to government, try and let, we need a long term economic plan that will give business some vision into the future

and that will help clarity and business confidence.

ASHER: Alright, Shevaun Haviland, Director General of British Chamber of Commerce, thank you so much for being with us. All right, still to come,

morale plummets in Russia's military ranks as Putin's war in Ukraine falters, we'll have much more on that next.

(COMMERCIAL BREAK)

[09:45:00]

ASHER: It appears Russia is losing ground on its invasion of Ukraine. A senior Ukrainian military official said the country's forces have

recaptured around 120 settlements in the past two weeks as they advanced in Kharkiv, Donetsk and Kherson regions.

It's just not and it's just not Russia's regular troops who are racking up losses morale is plummeting in Vladimir Putin's private army, the so called

Wagner Group. A warning some images in Melissa Bell's report are graphic and disturbing.

(BEGIN VIDEOTAPE)

MELISSA BELL, CNN CORRESPONDENT (voice over): The chaos of Ukraine's frontlines, through the eyes of a Wagner mercenary.

UNIDENTIFIED MALE: Lex, guts, arms, boys, it's almost tough.

BELL (voice over): A video shared exclusively with CNN by a member of Vladimir Putin so called private army, one of those who've seen enough.

UNIDENTIFIED MALE: I'm sorry, bro. I'm sorry.

BELL (voice over): A far cry from the slick propaganda used by Wagner to entice recruits to the depleted Russian front lines. Long kept in the

shadows by Moscow, the Elite paramilitary group or the musicians, as they call themselves now lionized for their role in Russia's springtime

victories.

Like the surrender of Azovstal or the full of Mariupol. The mercenaries experience initially making all the difference to Moscow according to this

former Wagner commander.

MARAT GABIDULLIN, FORMER WAGNER MERCENARY: Without their active assistance, the Russian armed forces would not have been able to move forward at all.

BELL (voice over): The Kremlin didn't respond to our requests for comment. But a month's long CNN investigation has found what the war has cost

Moscow's elite fighting force. It's men it's confidence and it's a lure. Marat Gabildullin says Wagner fighters are paid $5,000 a month to do the

work regular Russian soldiers can't or won't.

GABIDULLIN: There is not enough motivation, only money, Russian peace for the American dollars.

BELL (voice over): Through their telegram channels and through intercepts, Ukrainian intelligence keeps a watchful eye. Morale within Wagner is low,

says Andrei Yusoff. It wasn't designed to participate in a full scale war.

GABIDULLIN: They're dissatisfied with the overall organization of the fighting the inability to make competent decisions to organize battles. And

of course, this means losses.

BELL (voice over): This video shared with CNN by Ukraine's Defense Ministry shows a mercenary desperately asking why there is no body armor for them.

UNIDENTIFIED MALE: There are no more flight jackets, no more helmets either.

BELL (voice over): Of the estimated 5000 Wagner mercenaries sent to Ukraine 1500 have been killed according to intelligence sources in Kyiv. In Russia,

that's meant recruitment drives from front pages to billboards, the W- orchestra is waiting for you, says this one with a number to call and no experience needed.

A recruiter is telling CNN through WhatsApp that barring Thuggery, terrorism and sexual impropriety, all criminal convictions are negotiable.

A man who appears to be the founder of Wagner Yevgeny Prigozhin, personally offering clemency to prisoners for six months of military service. The

Illusive oligarch no longer is denying ties to the group that the war in Ukraine has both exposed and transformed.

YURIY BELOUSOV, UKRAINE'S WAR CRIMES PROSECUTOR: The really shows that there's a guy signing --, so they really don't have people, they're ready

to send anyone. There are no criteria for professionalism anymore.

BELL (voice over): And that could mean more possible war crimes, especially on the retreat. This video shared with CNN by a Wagner soldier appears to

show mercenaries lining up the bodies of dead Ukrainian soldiers.

In a chilling conversation, they debate whether to booby trap them or shoot those who come to retrieve them before realizing that they're out of

ammunition. Melissa Bell CNN, Kyiv.

(END VIDEOTAPE)

ASHER: Stay with "First Move" more to come after this.

(COMMERCIAL BREAK)

[09:50:00]

ASHER: Welcome back. As the world searches for alternative energy solutions green hydrogen has attracted the interest of businesses and governments

around the world even in some of the biggest oil producing nations. In the UAE Dubai has partnered with Siemens Energy to run a pilot project

heralding a new era of cleaner energy.

(BEGIN VIDEOTAPE)

ELENI GIOKOS, CNN CORRESPONDENT (voice over): Shiny pipes, a few rumbles like panels here and there. It's hard to imagine that a place so calm and

still could potentially revolutionize the future of energy in the Middle East and beyond.

FALK WOTTAWAH, HEAD OF STRATEGY, SIEMENS ENERGY MIDDLE EAST: This is the first industrial scale green hydrogen production in the Middle East and

North Africa.

GIOKOS (voice over): Hydrogen, a colorless gas is the most abundant elements in the universe. But on Earth, it's almost always found as part of

another compound like water. In order to produce energy, hydrogen needs to be extracted from fossil fuels, biomass or water.

Today, 95 percent of hydrogen production relies on fossil fuels. However, there are greener options, fueling the process with renewable energy

sources like wind and solar power. This is what green hydrogen means.

At this plant in Dubai, solar panels provide power to split water into hydrogen and oxygen. Oxygen is released into the air and hydrogen is stored

to be used later on and converted into electricity during the night. This ability for storage is an added bonus.

WOTTAWAH: The sun doesn't always shine, the wind doesn't always blow. And this creates less reliability. Green hydrogen can be used as high intensity

long term energy storage.

GIOKOS (voice over): Open just over a year ago, the hydrogen produced here is currently being fed into Dubai's energy mix.

HESHAM ISMAIL, SENIOR MANAGER, TECHNOLOGY ADVANCEMENT, DEWA: We take the store hydrogen and we burn it and we producing about 280 kilowatt

electricity and we feed it back to the grid.

GIOKOS (voice over): That's enough to power just under 10 average American homes per day. But there are plans to scale up the project and increase the

outputs.

ISMAIL: There is a big future demand for vehicle and to be used and transportation as well. We can also export it tomorrow to countries who

want energy.

GIOKOS (voice over): There is still a long road ahead. More than $13 billion were invested in this pilot plant and hydrogen production itself

may be cost prohibitive.

WOTTAWAH: Currently it costs between three and 6.5 dollar per kg. So our hope is to take that number to be less than $1 per kg.

GIOKOS (voice over): For now, the future of green hydrogen is still up in the air, but as quiet as it seems this technology is making some noise in

the discussion of the future of energy. Eleni Giokos, CNN.

(END VIDEOTAPE)

[09:55:00]

ASHER: U.S. stocks falling this Friday after the September jobs report showed the U.S. labor market remains pretty strong potentially making the

Feds task of taming inflation even harder. The NASDAQ is down more than 2 percent. Right now the U.S. added 263,000 jobs last month, the unemployment

rate dropped to three and a half percent.

You see the Dow there is down about 450 points or so. And finally, the Vatican is using modern technology to recreate the life of the man

considered by Catholics to be the first pope.

An eight minute film called "Follow Me", the life of St. Peter is lighting up St. Peter's Basilica. It features Renaissance artwork from the Vatican's

Museums depicting the life of the apostle. The show is free to watch visitors in St. Peter's Square until October 16. All right, that is it for

the show. I'm Zain Asher. "Connect the World" with Becky Anderson is up next.

(COMMERCIAL BREAK)

END