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First Move with Julia Chatterley
Tesla Reports Disappointing Deliveries for 2022; Pele's Casket Passes Through Santos in Funeral Procession; Levitt: I Suspect any Recession would be Mild; China Criticizes Restrictions Imposed on its Travelers; Zipline to be Nationwide Drone Delivery Service for Rwanda; Former FTX CEO Expected to plead not guilty to Charges. Aired 9-10a ET
Aired January 03, 2023 - 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: A warm welcome to "First Move", I'm Zain Asher in for Julia Chatterley, lots to get through this hour for you. We
are live in Brazil as thousands continue to pay their final respects to Soccer Legend Pele, who will be buried later today in a private ceremony in
the City of Santos emotional tributes just ahead. Plus, shocking scenes at a professional U.S. football game in Cincinnati, Ohio, Buffalo Bills safety
Damar Hamlin collapsing and going into cardiac arrest in the middle of the game.
We are live at the hospital where he is being treated. Also on financial markets and important day for global Investors with the opening bell on
Wall Street about to sound for the first time in 2023 it is looking like certainly all the green arrows that are across the screen setting looks
like a positive start to the New Year with all the futures pointing higher.
European stocks on the rise as well let's take a look here the Wall Street bulls hoping for more profitable year after the S&P 500, almost 20 percent
drop in 2022 its worst performance since the financial crisis back in 2008. Rahel Solomon joins us live now. So Rahel, let's talk about 2023. What
reasons should I say to Investors have to be cautiously optimistic in 2023? What are they looking for this year?
RAHEL SOLOMON, CNN CORRESPONDENT: Well, Zain good to be with you, I think a few themes will emerge for 2023 right? If you think about the last year,
the huge themes were, of course, Central Banks and their fight to tame inflation. We spent a lot of time in 2022 looking at overall inflation.
Of course, we had that peak of 9.1 percent in consumer prices here in the U.S. in June and we have suddenly come off of that. Looking ahead to 2023,
there is going to be a lot more focus on non-shelter services inflation in fact Citibank putting out a note this morning, saying that hat will be the
key theme for 2023.
So less focusing on things like delivery times and commodity prices, which we focus on a lot for goods inflation, inflation on physical items, durable
goods, and that sort of thing, more focus on labor market tightness, how much is the strong labor market here in the U.S. driving the current
inflation?
So to that end, we're going to be looking at labor turn over. We're going to be looking at, certainly the unemployment rate. We're going to be
looking at how many jobs are being added? And Zain, on that and we'll actually get a few pieces of key data this week.
We get the jolts data, which will tell us about job vacancies. We'll get the all-important monthly jobs report, the expectation there for this
month, or for the month of December rather are an extra 200,000 jobs being generated, being added and wages increasing 0.4 percent. Both of those
things, they still suggest a strong market, but a cooling labor market, which I think, markets would like to see.
ASHER: And how much have Investors priced in the possibility of a recession this year? Do you think Rahel?
SOLOMON: Well, I think if you look at the major averages Zain and how they close at the end of last year? You can see a lot of the bad news is already
priced in right? I mean take a look at the DOW that was the best performer of the major averages and that closed off about 9 percent.
The S&P closed off 19 percent. The NASDAQ closed off a whopping 30 percent. So you could certainly argue there is a lot of bad news already priced in
and the Fed, of course, has done so much in 2022. They raised their benchmark policy rate 425 basis points or 4.25 percent, just in about nine
months or so.
So the Fed has already done a lot. There's already a lot of bad news baked into the markets that said the catalyst for growth. Looking ahead, you get
earnings season that starts later this month. The labor market data as I pointed to.
And Zain, expect the first time we hear from Chair Powell or I would argue any major fed speakers any dovish language. You're likely going to see
market surge, they've been waiting for a sign from the Federal Reserve that they are starting to slow on their interest rates hike and may actually
start to stop once we get that you do we do expect to see at least a short term rally for the markets. That's something they've been waiting for at
this point all year, Zain --.
ASHER: All right, Rahel Solomon, live for us there thank you so much. Alright, disappointing deliveries Tesla is saying it's sold 1.3 million
vehicles last year that's up 40 percent from 2021 but short of Wall Street's expectations. Shares of the company are down about 4 percent or so
in pre-market trading.
Paul R. LA Monica joins us live. So let's just talk about Tesla and what happened last year? The last quarter for Tesla was particularly
challenging. You had COVID outbreaks in China. You also had them offering pretty steep discounts on some of their cars as well. Just walk us through
what the overall picture was for Tesla last year taking into account what happened in the final quarter?
[09:05:00]
PAUL R. LA MONICA, CNN REPORTER: Yes, in the final quarters Zain, I think that Tesla recognized that there are growing worries about a recession and
consumers that may be wary of buying pricey electric cars needed some incentives in order to do so. And Wall Street views that as a negative
since Tesla has been such a high growth story for a long period of time.
Right now though, there are worries about increased competition, of course, just about every major global automaker is now selling some version of an
electric vehicle to go after the Model S, X, 3 and Y Tesla's big cars and that is a concern.
And then of course, there's the whole Twitter distraction as well. Elon Musk has a lot on his plate. And now that he's running Twitter and
seemingly focused almost exclusively, at least based on his tweets on what's going on at that social media company. Investors are rightfully
nervous that, you know, there may be a bit of a leadership gap brain drain at Tesla, and the company is trying to, I think, addressed that as well
now.
ASHER: Exactly and that brings me so grace, thank you for that pivot, Paul, because you bring me perfectly to the next point, which is that Elon Musk
has hired Tom Zhu. Tom Zhu was in charge of Tesla, China. But now it appears as though he's now sort of shifting his responsibilities to be more
in charge of Tesla, U.S., which makes sense, given how distracted Elon Musk is, with what's going on at Twitter?
MONICA: Yes, I think that even though Tesla's stock is down, or at least going to be headed lower on those deliveries numbers for the fourth
quarter, this is good news, Zain. I think that there have been legitimate worries that Tesla is a one person show Elon Musk, obviously. And that the
company has had this revolving door of many other high profile executives that have risen through the ranks only to wind up leaving the company.
And again, that just leads to the perception that it's all Elon all the time, having Zhu take over more responsibilities. To me this sounds like a
could be analogous to what's going on and has been going on for years at SpaceX where Gwynne Shotwell is the widely respected number two at that
company. You don't have to worry Zain at SpaceX like you do with Tesla about Elon Musk being exclusively the one person running that company.
Alright, Paul R LA Monica live for us there thank you so much. NFL star in critical condition after collapsing on the field. Buffalo Bills played to
my handle and suffered cardiac arrest during the game against the Cincinnati Bengals. Adrienne Broaddus has more.
(BEGIN VIDEOTAPE)
ADRIENNE BROADDUS, CNN CORRESPONDENT (voice over): The first Monday night Football game of 2023 between the Buffalo Bills and Cincinnati Bengals ends
abruptly and tragedy after Buffalo Bill safety Damar Hamlin's tackle on Bengals wide receiver Tee Higgins. You see Hamlin standing briefly and then
collapsing on the field.
EPHRAIM SALAAM, FORMER NFL PLAYER: When I saw that young man fall to the ground the way he did it. It felt like my soul had left my body.
BROADDUS (voice over): Within minutes after Hamlin's collapse medical staff started CPR on him, right on the field.
JOE DANNEMAN, REPORTER OF WXIX: Usually you see players gather around a player and that happened tonight. But when they saw them start doing chest
compressions. You saw the reaction of those players walking away and being distraught being very emotional, the kind of thing we don't see on a
football field.
BROADDUS (voice over): The 24 year old NFL star suffered a cardiac arrest. According to the Bill's his heartbeat was restored on the field. And an
ambulance was driven onto the field to transport him to a local hospital.
DONTE STALLWORTH, FORMER NFL PLAYER: I've never seen anyone have CPR administered to them on the practice field or the game field. So that's
when I became concerned.
BROADDUS (voice over): Players huddled on the field visibly emotional, the NFL then postpone the game.
RYAN CLARK, FORMER NFL PLAYER: We were not ready for this. We were not prepared for this. These are all men that spend time together growing
together making sure that, one another is all right. Doing whatever you have to do for your brother and you are now putting the hopeless position
of being absolutely helpless.
BROADDUS (voice over): Hamlin is receiving care at the University of Cincinnati Medical Center, where fans could be seen holding vigil. NFL
Executive Vice President of football operations, Troy Vincent says some of Hamlin's teammates decided to stay behind.
[09:10:00]
BROADDUS (voice over): Hamlin's teammate Stefan Diggs was captured in this video arriving at the hospital to visit his friend and teammate. This as
well wishes are pouring in from the sports world.
DONOVAN MITCHELL, NBA PLAYER OF CLEVELAND CAVALIERS: From the Cavalier organization we want to wish the best and I'm praying for everything goes
well.
LEBRON JAMES, NBA PLAYER OF LOS ANGELES LAKERS: The safety of our players in all sports is always the most important. So you know it was a terrible
thing to see.
(END VIDEOTAPE)
ASHER: And Adrienne joins us from Cincinnati, Ohio, I believe outside the hospital. So I mean, Adrienne, that video is, it's chilling, you know, you
see him there stand up after that tackle, and then he collapses to the ground. It really hammers home, just how dangerous the sport really is?
BROADDUS: You know, Zain, it's a brutal sport and the players have been telling us that since last night, and we've heard that before, just I do
want to point out moments ago we spoke with Jordan Rooney. He is one of Mr. Hamlin's friends. He wasn't at the game but if you take a step back, he did
tell us his mother was there.
So she watched all of this unfold. Right now her son is here at the hospital behind me listed in critical condition. According to the Buffalo
Bills, he is sedated and fighting for his life. Here's more of what his friend had to say about.
(BEGIN VIDEO CLIP)
JORDON ROONEY, DAMAR HAMLIN'S FRIEND AND MARKETING REP: Damar is someone who he isn't someone who's like I want to be a football player, because I
want to be rich. He's someone who he wants a platform. He wants to influence because he wants to inspire other people. And I think that's what
everyone is remembered.
Like, yes, you watch him on TV. Yes, you know, you may be a fan of the sport or the game. This is a person, a human being who means a lot to a lot
of people if there's anyone that you don't have confidence in making it out of anything. It's him.
(END VIDEO CLIP)
BROADDUS: At 24, he was trying to inspire, he wanted to be influential, and help others especially those in his hometown. I asked his friend, when was
the last time they spoke? He said a short time ago. And they were talking about a toy drive that he sponsored. And that's the type of person he is,
giving back to the community that needs it most, Zain.
ASHER: And that toy drive. I understand that GoFundMe page has now raised about $3 million dollars just so many fans across the country donating and
just showing their love and their support for him at this critical time. All right, Adrienne Broaddus live for us there thank you so much. In
Brazil, the Santos Football Club says that more than 150,000 people turned out to join the 24 hour wait for Pele who died last week.
President Lula da Silva paid his respects to the football legend at the stadium. Right now a procession is underway is a live pictures Pele's
coffin being taken through the city before a private funeral. Julia Vargas joins us live now from Santos, Brazil.
So as you mentioned, the President the brand new President of Brazil, paid his respects just recently. When you think about it, Julia, Brazil,
especially after the last election is extremely divided, extremely divided politically in the run up to the elections, there was actually quite a bit
of violence. How much is Pele right now serving to unite the country to sort of at least temporarily heal those divisions in Brazil?
JULIA VARGAS JONES, CNN PRODUCER: He's definitely serving as some kind of respect from a little bit of a break from what's going on politically. But
just on Sunday, Brazil was able to finally take a deep breath. After months of wondering whether or not the country would have a democratic transition
of power, a peaceful transition of power, believes death has meant that Brazil could come together into something else.
It is in a way, a distraction, a very sad one, but also one of celebration, because this morning, as we saw President Luiz Inacio Lula da Silva come
into the stadium, we witnessed a moment of joy was an outburst of joy. People were there in their Pele jerseys cheering for Lula wanting to turn
the page on everything that has been happening, you know, Bolsonaro supporters took to the streets. They asked for a military intervention.
Bolsonaro said he was not going to accept the results of the elections all of that being put behind us now. We are remembering what Brazil is really
all about what Brazil represents in the world stage? It's about excellence in sport. It's about the memory of this great man that was Pele and what he
represented to the Brazilian people but he inspired in us today, here at the cemetery, we'll be seeing no more public, is no longer able to access
anyone that got to see him at the stadium.
[09:15:00]
JONES: At this point this is only media only family we'll be here this is a private ceremony that will be taking place thousands were turned away. We
saw lines going over two kilometers outside the stadium and when I talked to the attendance of the stadium that we're counting the numbers and see
the people that were going inside. They told me they just had to in the last 40 minutes, more than 1600 people tried to get in and they managed to
get everybody that got there on time, in to see Pele's casket to say goodbye.
One less time as his casket was loaded on to the fire truck that left the stadium of a drum line accompanied him. It gives me the chills to just
think about this because it's such a Brazilian moment to say goodbye to this great man with a drum line with Brazilian flags with Santos flags. It
was just such it's so Brazilian. It's speaks to the Brazilian soul and the way that we want to remember our idols, Zain.
ASHER: My god Julia, I'm hearing just so much emotion in your voice. As you describe this, just tell us a bit more about what you're feeling?
Obviously, you're from this country. Obviously you were born a lot longer, a lot later than you know, Pele played but clearly this moment means so
much to you personally.
JONES: It does and as a Brazilian who's been abroad for so long, I've been I've seen this. I've seen people look at me and hear my accent or say, oh,
Brazil Pele. You know, for the past 17 years of my life. That's the first thing that people say to me, its Pele somber football. Those are the things
that are attached to our country.
And what he did is show that we could be excellent in something that we could be the number one in one thing before Pele, that wasn't Brazil's
reputation. It's hard to imagine what that was like? Right today that is the first thing people think about but he wasn't like that he built this.
That is his legacy and people came after him.
He just opens that path for this kind of culture to blossom and for me to see that was an inspiration as well. I mean, I didn't grow up watching
football. I'll be quite honest with you but he doesn't matter because he transcended that he went far beyond that and to see little kids, kids of
color, black children, poor children have an idol that in the 1960s was able to have achieved that kind of notoriety to get that kind of
recognition from the world. That is what I think is his true legacy, the most important thing that he did for this country and for all of us.
ASHER: Yes, I mean, you don't have to know anything about football to know who Pele was and I think that one of the things that people love about him
is just how humble he was. Despite all of the accolades, all of the praise, all of the fame, which of course we know as an athlete can do quite a
number on your ego if you're not careful. He really always seemed to have that common touch and I think that's what people will miss most about the
legend. Julia Vargas live for us there thank you so much.
Right crowds are continuing to flock to Vatican City to pay their respects to Pope Emeritus Benedict the 16th. He is lying in state for a second day
at St. Peter's Basilica. Around 25,000 people have already attended this morning alone.
All right, coming up on "First Move", it is the first trading session of 2023, straight ahead. We have a stock market outlook for the year to come.
Plus autonomous drone deliveries how an African startup is rapidly expanding its healthcare business, that's next.
(COMMERCIAL BREAK)
[09:20:00]
ASHER: All right, welcome back to "First Move" the curtain is about to go up on a new year of trading. On Wall Street futures remain a bit off
session highs but we're still on track for a suddenly higher open. The bulls hoping stocks content around in 2023 after an almost 20 percent drop
for the S&P 500 last year, and more than 30 percent for the NASDAQ but lots of concern that markets will face new selling pressure if Central Banks
continue to raise rates. Earnings season, which begins later this month, will of course be critical for sentiment as well.
Brian Levitt joins me with his take on what to expect this year? He's the Global Market Strategist at Invesco. Brian, thank you so much for being
with us. So I think that 2023 the sort of good news on the horizon. Is that inflation does seem to be sort of slowing, what will that mean for how more
or less hawkish you anticipate the Fed to be this year?
BRIAN LEVITT, GLOBAL MARKET STRATEGIST AT INVESCO: Yes, I think the Fed is likely coming towards the end of its tightening cycle, which is a positive
for risk assets. Now, it's not going to be easy. Not every day is going to feel good but ultimately, we should see the Federal Reserve Bank off the
tightening stance, pause that at a terminal rate of 5 percent. And then pause and that should give Investors a bit of a breather should invigorate,
reinvigorate risk appetite in the markets.
ASHER: So that's the good news. However, the fact is, because interest rates are so high, there is there are going to be ramifications of that we
aren't going to feel that.
LEVITT: Well, yes, a couple of things. I mean, first, when the yield curve gets this deeply inverted, which of course it is, that usually signals the
peak in long rates. And of course, 10 year rates have come down off its peak. So we would expect long rates over the year to come down as the
economy goes through a slowdown or maybe even a contraction by the middle of the year.
Now, with regards to businesses, we have to expect there to be some type of a default cycle, there are going to be businesses that are exposed that are
only viable in a very low interest rate environment and now that they have to roll over debt are less viable. But if you look at what's gone on in the
markets, S&P 500 that was down 25 percent peak to trough high yield bond indices yielding something close to 8 percent. That's pricing in a lot of
the pain the markets go first than the economy.
So the question for Investors is have we priced it all in? Or is there more to come? I suspect that if we do have a recession, it'll likely be a milder
one, a more mild default cycle. And it's probable that we've already priced in a lot of the pain or maybe all of the pain.
ASHER: I see and when it comes to interest rates since you're just touching on interest rates. Obviously, we know that tech stocks love low interest
rates. What do you see for tech stocks heading into 2023?
LEVITT: If interest rates come down inflation moderates the Fed pauses that should help tech stocks recover some of what they had lost in 2022. But
what Investors should think about though as they're thinking about in a recovery phase of a cycle, you tend to see smaller cap more value oriented
parts of the market perform well. So growth stocks are going to participate in a recovery but you tend to do better in the more value or cyclical parts
of the market.
Now some of that is going to be in tech, but a lot of that will be more of your financials, your industrials, your materials, your early cyclicals
that would do well or should likely outperform in a recovery.
[09:25:00]
ASHER: The IMF put out a statement basically saying that, you know, there are parts of the global economy that will not do too well in 2023. I mean,
Kristalina Georgieva talked about the U.S., the EU and China all slowing down simultaneously. And this idea that even in the U.S. wet, which might
avoid a recession, it still will feel like a recession, especially in the early parts of this year. Do you agree with that?
LEVITT: Yes, I do and look there's different things to consider when you're talking about Main Street versus Wall Street. So remember, the Federal
Reserve's goal here was to make us feel less wealthy to slow down the economy. And, and they've certainly succeeded in doing that and so, policy
operates with lagged effects.
So we're still going to feel the brunt of that policy tightening as we move through the first half of this year. But remember, the markets are already
down peak to trough 25.4 percent, on average, in a recession, the last 10, you're down 31 percent. But you've got more mild recessions like 1991,
1981, where you're down around 25, 27 percent.
So we've likely price a lot of it and so what Investors should be focusing on is not the lagged economic data lag. Lag economic data is going to show
a weakening environment, what they should be focusing on are leading indicators that suggest signs of a recovery. Good ones to focus on, of
course, would be what's the tenure doing? What's the dollar doing? If those are easing coming down, it suggests that the markets looking ahead to a
different policy cycle and the early stages of a recovery.
ASHER: Alright Brian Levitt, live for us there thank you so much. We appreciate it. All right, still to come, we'll take you to China where
COVID cases are surging, that's next stay with us.
(COMMERCIAL BREAK)
[09:30:00]
ASHER: Ringing in the New Year, welcome back to "First Move". That is the opening bell the first time the opening bell has rung on Wall Street in
2023 this year. U.S. stocks beginning the New Year in the green the DOW is up ever so slightly. Tech stocks are among the best performers so far in
early trading.
Global Investors are hoping to turn the page after disappointing and somewhat you know, let's be honest, unusual 2022, which saw both stocks and
bonds suffering losses. The first few days of the year are extremely important for traders from a psychological standpoint, especially after
across the board weakness that we saw last year, lots of challenges for Investors in the days ahead that will surely affect trade as well.
New job numbers are out on Friday and a fresh round of consumer inflation data will be released next week so two important things that Investors are
watching very closely stocks in Hong Kong, kicking off the New Year with gains of almost 2 percent the best start to a trading year for the HANG
SENG since 2018.
The Shanghai composite finishing higher as well in the hopes that China's recent COVID spike will soon peak. Right now however, China is seeing a
huge wave of new infections after Beijing abruptly lifted COVID health restrictions late last year.
Some reports suggest as many as 70 percent of the population on Shanghai may already have been infected. With hospitals filled to the brim filled to
capacity despite the surge in cases China is threatening countermeasures against countries that have placed new restrictions on travelers from
China, calling the new measures excessive.
They're also saying it's unacceptable. South Korea meantime now is requiring passengers from Hong Kong and Macau to show negative PCR test
before departure. Senior International Correspondent Ivan Watson is in Hong Kong for us. So Ivan, just walk us through some of these sort of counter
measures that Beijing is talking about imposing on countries that are restricting Chinese travelers.
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Right. We don't quite know specifically what those might be yet. What we do know is that there is
a growing backlash from the Chinese government and Chinese state media, to the growing number of governments that are imposing restrictions on travel
to their territory, from not only mainland China, but also in most cases from the territories of Hong Kong and Macau.
This perhaps all the more ironic because for the better part of three years, China kind of self-isolated itself imposed very strict quarantines
wouldn't allow travel into China that is supposed to end on January 8, that is going to end the quarantines that have been imposed for years on
travelers trying to get into China.
And just as it's trying to do this, again, this growing number of countries that are saying, well hang on now, you should at least get a negative COVID
test within 48 hours of getting on the plane to our territory. So the Chinese foreign ministry spokesperson said that those kinds of measures,
"lack scientific basis and some practices are unacceptable". Some Chinese state media has gone a step further. The Global Times tabloid this
nationalistic tabloid has said that this is another chance to defame China, it kind of singled out the U.S. and Japan which have imposed some of these
restrictions.
But actually, if you look at a map at the number of countries that CNN has compiled, you can see that these countries are all around the world that
are either demanding negative COVID tests before travelers from trying to get on the planes or in the case of Morocco have completely banned at least
temporarily traveled from China to their territory.
Another country, South Korea has taken a measure of travelers coming from China; they're basically being pulled aside for tests on site because South
Korea set on the first day of travel direct from China. That was Monday, the first day that they were requiring PCR tests, they got 61 positive
cases out of about 309 travelers on that very first day that they implemented that measure.
So this is kind of a disagreement that's likely to continue to grow as China continues to wrestle with the growing waves of COVID infections
around the country. One scientific model that's been put forth by a Chinese Health Journal says that the infections have likely peaked in the major
cities, but that the peaks won't hit the rural areas central and western China really into the middle or the end of this month.
[09:35:00]
WATSON: And we have the Spring Festival, the Chinese Lunar New Year coming up that this modeling report suggests that the infections will probably
spread all the more as you get the massive movement of humanity for that holiday travel, Zain.
ASHER: Alright, Ivan Watson live for us there. Thank you. Alright, it's still not clear how many Russian soldiers were killed during a New Year's
Day missile attack in Occupied Eastern Ukraine. But anger is certainly increasing among some Russian nationalists who are demanding punishment for
commanders in their own army, who they say ignored the dangers.
Kyiv says the number of Russians killed in Makiivka is being clarified after initially claiming that it was around 400. The Russian defense
ministry has said 63 soldiers died it comes as Ukrainian President Volodymyr Zelenskyy says Russia is planning a prolonged attack.
(BEGIN VIDEO CLIP)
VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT: Our task is to give Ukraine successes achievements, even small yet victories over terrorists and terror
on a daily basis. Each shutdown drone, each shutdown missile each day with electricity for our people. And minimal schedules of power outages are
exactly such victories.
(END VIDEO CLIP)
ASHER: CNN's Scott McLean is in Kyiv. So Scott back to the attack in Makiivka. The defense ministry the Russian defense ministry saying that 63
Russians died. How rare is it for Moscow for Russia just to come out and admit so many fatalities on their own side?
SCOTT MCLEAN, CNN CORRESPONDENT: Yes, I think it's an indication that probably the true number is substantially higher than what they're
conceding thus far. And there's even some indications plenty of indications really, that are piling up right now from the Russian side that, in fact,
those numbers are higher. You have pro-Russian officials, you have pro- Russian bloggers saying that look, they are still on the scene, they are still picking through the rubble, they are still trying to figure out how
many bodies may have been under there.
And if you look at the latest pictures from the scene in Makiivka of what was once a vocational school, it is pretty difficult to imagine how anyone
could have possibly survived that. How there could possibly be any survivors still under the rubble, it is literally a pile of rocks, there's
one wall, it appears still standing.
And then there's a lot of heavy machinery that are trying to pick through it right now. And this is attracting a lot of criticism, as you said, there
is one pro-Russian blogger who says that look, Russian command has been sloppy. There's another who says that incompetence, even 10 months into the
war is still a big, big problem that you shouldn't have a situation where you have these, you know, this kind of concentration of Russian troops in
one tiny small area, essentially making them sitting ducks.
And you have a former official in the occupied Donetsk region, the vets People's Republic, who says that, look, Russian military leaders clearly
have not gotten the message yet that the message or that the weapon that the Russians believe that the Ukrainians use the high Mars artillery
system, a longer range artillery system, they still don't quite understand the full scope of it.
And they ought to buy now that weapon by the way, supplied by the United States. And one of the things you mentioned and you said it, in your
introduction, there is a Russian lawmaker who says that there ought to be criminal liability when it comes to this. And he's not talking about the
Ukrainians. He is talking about the Russian military leaders, the intelligence leaders who allowed this concentration of troops to actually
happen there.
ASHER: All right, Scott McLean live for us there. Thank you so much. All right, let's get back to Brazil now as Pele's coffin continues its
procession through Santos before a private funeral. Stefano Pozzebon joins us live. Stefano, you and I spoke about this yesterday. But Pele of course,
we know meant so much to all Brazilians but specifically to Afro Brazilians, as well, and actually black athletes all around the world.
STEFANO POZZEBON, JOURNALIST: Yes, indeed. I mean, he was an icon of the 20th century in a country that has a complicated history with racism and
racial policy just like the rest of South America, Brazil, for those who don't know has the largest Afro descendant population in South America,
especially in the Atlantic Ocean cost around the state of Bahia.
But for decades, Pele was a symbol of what an afro athlete could achieve that in a country that during the colonial time and the first years as an
independent country was essentially white aiming to recreate a sort of European racial profile. That said Zain, I think we should really enjoy and
appreciate the moment we're living through in history because these has been a roller coaster of emotions.
[09:40:00]
POZZEBON: And right now, no emotion is higher than seeing the plays on family who's standing over there saying on the rooftop of the house where
police 100 year old mum still leaves it to the stay. Those you see some of them waving. The woman muster onto the right is Pele's sister Tanya Lucia,
you see a flag is being brought up on the flag is written Pele, a turn of Pele forever.
And you can see all the fans here and just understand the scale of what we are witnessing today. There are four blocks of these roads that have
completely jammed by fans all trying to get a glimpse of this house that is so significant for the city and a glimpse of these family.
You also know that yesterday was the public wake in the sense that there was a stadium we understand that over 200,000 people pay their respects
inside the stadium that is more than --.
ASHER: OK, it looks as though we have lost Stefano's shot. OK, this is a live picture of Pele on his way going to that private funeral. I'm sure
Stefano was just showing us images of Pele's family outside his house. And I'm sure all of the tributes the entire well wishes all the outpouring of
love and support from the crowds, certainly given them comfort at this really difficult time.
But again, Pele is heading back for a private funeral after lying in state for 24 hours just yesterday. All right, still to come on "First Move"
expanding access to health care in Africa, one drone delivery at a time. I speak with the CEO of Zipline after the break.
(COMMERCIAL BREAK)
ASHER: Welcome back to "First Move". One company is taking healthcare delivery to new heights in 2016. Rwanda partnered with drone delivery
company Zipline to deliver blood across the country. At the end of last year Zipline announced a $61 million deal to expand the partnership making
it the country's nationwide drone service.
[09:45:00]
ASHER: The new investments should enable Zipline to complete nearly 2 million deliveries and flight and more than 200 million kilometers in
Rwanda by the year 2029. And Zipline is hoping the deal convinces governments and other countries to enter similar partnerships with them, of
course, as well.
Joining me live now is Zipline CEO, Keller Rinaudo Cliffton, Keller, thank you so much for being with us. So your company essentially delivers whole
blood, frozen plasma platelets to sort of rural locations where a distribution network is harder as a lot more tricky.
For your delivery company for this drone sort of delivery Network Company, why did you think that a strong medical delivery or health care delivery
component was an important aspect to your business?
KELLER RINAUDO CLIFFTON, CEO, ZIPLINE: Well, thanks for having me, Zain. And when we started in 2016, we were delivering blood to 21 different
hospitals throughout the country. We've expanded from there into today, we deliver over 250 different kinds of medical products, we've delivered 2
million doses of vaccine of COVID vaccine, 5 million doses of traditional vaccine.
We deliver 75 percent of the national blood supply of Rwanda outside the Capitol today. We started with health care, because we believe that where
you live should not determine whether you live. So we think that as you start to see these kinds of transformations in logistics toward zero
emission, instant autonomous delivery, really, really important to make sure that that delivery serves all people equally. And that ensures equal
access to health care products for every person on earth.
ASHER: And so what are the real world implications of that this idea of equitable distribution? Obviously, you're playing an important part of
that. What are the real world implications, do you think?
CLIFFTON: Yes, there are a lot. And in fact, you know, over the last year, we've seen a lot of academic studies sort of wrap up over the course of a
couple of years. One done by University of Pennsylvania in Rwanda demonstrated that not only has this new kind of logistics been able to
reduce National Blood waste by 66 percent, but it's also been able to reduce maternal mortality in the hospitals that have access to this kind of
service by 88 percent over the last two years.
So it turns out that logistics and healthcare are inextricably linked and making wide variety of products more readily available at every primary
care facility in hospital in the country has a big impact on patient health.
ASHER: Let's talk about logistics. So you guys sort of own operate and build design, manufacture, et cetera. Your own drones, you have these
distribution centers that are kind of like drone airports. And then these drones fly to a 50 mile radius, a 50 mile sort of radius from where the
distribution centers are located.
But from the moment you get a call that let's say, a hospital, somewhere in Rwanda needs blood, for example, or medication or whatever it is, just walk
us through how it works in terms of the time that you get the call to how the medication or blood or whatever it is, is delivered?
CLIFFTON: Yes, actually, you can see the manufacturing floor behind me. This is not a, you know, this is the factory. You know the experience for
customers' needs to be extremely simple for the service to be magical. So it really is, you know, press a button on a phone or place a call and you
can get what you need, instantly.
So anybody in the U.S. if you've used any kind of instant delivery service, whether that was you know, door dash or grub hub, it's not totally
dissimilar than that. But instead of using a 3000 pound gas combustion vehicle driven by human Zipline manufacturers, these light, fast electric
autonomous aircraft that you can see behind me. And we use those to provide an instant logistics system at national scale that hospitals, patients,
families can depend on day in day out 24/7 365.
ASHER: But what are the challenges especially when it comes to let's say delivering vaccines which have to be stored at certain temperatures? Walk
us through some of the challenges when it comes to the delivery of certain kinds of medical products?
CLIFFTON: Well, you know, last year, we actually announced this new partnership with Pfizer to begin delivering COVID-19 vaccine. As I
mentioned, Zipline is now delivered 2 million doses, and that's increasing a lot and 2023. That's an ultra-cold chain dependent product. A lot of the
products we deliver are cold chain dependent.
So for example, packed red blood cells have to be refrigerated. The advantage is when you're delivering really fast; it actually means that
there are fewer cold chain requirements in transit. So Zipline is already certified by the health systems that we work with to deliver the whole
spectrum of medical products from ultra-cold chain like COVID vaccines to cold chain like blood to non-cold chain like say anti-retroviral.
[09:50:00]
CLIFFTON So, we do everything necessary to keep the products cold at our distribution centers as well as keep them cold in transit. But it really
helps us that transit is only on average, you know, 10 to 30 minutes rather than 10 hours.
ASHER: Right. Right, all right. Thank you for that Keller Rinaudo Cliffton, CEO of Zipline, we appreciate it. All right, coming up here on "First Move"
FTX Founder Sam Bankman-Fried expected back in court in New York, we'll bring you the details up next.
(COMMERCIAL BREAK)
ASHER: The man once dug - the king of crypto will be back in court on Tuesday. FTX Founder Sam Bankman-Fried is set for his second federal court
appearance in New York where the prosecutors accusing him of cheating customers and investors out of billions of dollars. Bankman-Fried faces
eight criminal charges from wire fraud to conspiracy by misusing customer funds. Kara Scannell joins us live now. So Kara is expected to plead not
guilty today. What more can you tell us?
KARA SCANNELL, CNN REPORTER: Yes, that's right Zain. So in a few hours from now, Sam Bankman-Fried the Founder of FTX will appear for the second time
in the federal courthouse behind me. Today he will be arraigned that means he will go before a judge and be asked to enter a plea on those eight
federal charges that he's facing. Those include counts of wire fraud and multiple counts of conspiracy.
The sources tell us that Bankman-Fried is expected to plead not guilty to those charges. And of course, later down the road if he is convicted, he
could face up to 115 years in prison. Now prosecutors have called this a fraud of epic proportions. Bankman-Fried is accused of stealing billions of
dollars from customers and using it to cover debt by a related hedge fund called Alameda Research to make political donations and to buy real estate.
Now he has maintained interviews that he gave before he was charged and arrested in this case, saying that he never intentionally defended intended
to defraud anybody. He's denied that there was a fraud at all. So he will appear in court today. He's not expected to say much usually the defendants
are not required to say anything other than enter their plead in this case; which we understand will be that he will plead not guilty.
That will take place a little later today. And of course, Bankman-Fried is out on bail. So we are waiting for his arrival at the courthouse. He is out
on a $250 million bond. He also is at home confinement at his parent's home in Palo Alto, California. They of course are Stanford law professors, Zain.
So we're just expecting his arrival sometime in the next few hours for this court appearance later today. And of course, you know, this drew a lot of
public attention the last time he was here since he was had to be extradited from the Bahamas. So this will be the second time that we will
be out in public since facing these serious, serious charges, Zain.
ASHER: Right, Kara Scannell live four us there, thank you so much. And finally on "First Move" an amateur golfer invited to play in the Masters
tournament up by mistake he has the same name as PGA golfer Scott Stallings.
[09:55:00]
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: OK, Scott, why are we at the UPS store?
SCOTT STALLINGS, PGA GOLFER: Because I have to send my invitation to play at the Masters back to the other Scott Stallings.
UNIDENTIFIED FEMALE: I'm sorry.
STALLINGS: I try.
UNIDENTIFIED FEMALE: I'm sorry.
STALLINGS: That's OK.
UNIDENTIFIED FEMALE: OK, you go snap them.
(END VIDEO CLIP)
ASHER: OK. He told you that first. The pro golfer thought it was a prank, but he was convinced after seeing a photo of the invitation posted on
Instagram. All right, thank you so much for being with us today! I'm Zain Asher, appreciate you joining us. I'll be back in a couple of hours with
"One World". And that's it for the show; "Connect the World" is next.
(COMMERCIAL BREAK)
END
