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First Move with Julia Chatterley

Norway, Ireland Spain To Recognize Palestinian State; Hostage Families Release Extended Footage Of Hamas Abduction; Terrifying Moments Aboard Flight SQ321; 20 SQ321 Passengers Taken To Intensive Care; Singapore Airlines Flight; Nikki Haley Voting For Trump; NVIDIA Nirvana?; A.I. Chip Boom; Russia's War On Ukraine; Ukrainian Troops Fight To Save Key Village; China's Deepfakes; Deepfake Dilemma; Deep Dive Into Deepfakes; Autonomous Race Cars Vs. Professional Race Car Driver; Cannes Film Festival; Cooking Up A Storm In China; China's Beauty Market; Rare Feather Sells For More Than 28K. Aired 6-7p ET

Aired May 22, 2024 - 18:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


[18:00:00]

JAKE TAPPER, CNN INTERNATIONAL HOST: "The Times" reports that the flag was carried by rioters at the Capitol on January 6th as well and symbolizes

both support for Donald Trump and a push to remake the U.S. government in Christian terms.

"The Times" says neither Justice Alito nor the U.S. Supreme Court responded to their questions about this new second flag. We'll have much more of this

breaking news situation on --

LYNDA KINKADE, CNN INTERNATIONAL HOST: It is 6:00 a.m. in Singapore, 11:00 p.m. in London, and 6:00 p.m. here in Atlanta. Hello. I'm Lynda Kinkade in

for Julia Chatterley. And wherever you are in the world, this is your "First Move."

A very warm welcome to "First Move." Here is today's need to know. Norway, Spain, and Ireland will recognize a Palestinian State. Israel's Prime

Minister Benjamin Netanyahu says the move rewards terrorists.

Passengers aboard the Singapore Airlines flight that hit severe turbulence describe the terrifying moments that left one person dead.

And when seeing is no longer believing, the A.I. generated deepfakes peddling products and propaganda in China. All that and much more, coming

up.

But first, Israel is recalling its ambassadors from Spain, Norway, and Ireland after those countries announced they would recognize a Palestinian

State. Only a few European nations recognize Palestinian statehood.

And though most of the world already does, a source tells CNN the Israeli Ministry of Foreign Affairs is currently considering further diplomatic

steps. The recognition is largely symbolic, but it carries political weight. My colleague Richard Quest spoke with the Irish foreign minister

earlier.

(BEGIN VIDEO CLIP)

MICHAEL MARTIN, IRISH MINISTER FOR FOREIGN AFFAIRS: I think European Union states coming forward and saying, we believe in and we will recognize the

Palestinian State, gives strength to, for example, the Palestinian Authority, gives strength for those who in Palestine recognize an Israeli

State, who renounce violence and who are prepared to enter into a negotiation to develop a resolution of this.

(END VIDEO CLIP)

KINKADE: Well, our Jeremy Diamond has more now from Jerusalem.

JEREMY DIAMOND, CNN CORRESPONDENT: Well, Lynda, the Israeli government is certainly reacting with outrage to the decision of these three countries,

Spain, Ireland Norway to unilaterally recognize a Palestinian State.

The Israeli foreign ministry today recalling its ambassadors to those three countries. And then the ambassadors from those three countries here in

Israel were brought in for a formal reprimand, wondering which the Israeli foreign minister said he would make them watch the video of women being

kidnapped on October 7th.

The Israeli prime minister, for his part, has said that this decision to recognize a Palestinian State is tantamount to offering a "reward for

terror." He also said that he believes that the establishment of a Palestinian State would be a terror state, one that would attempt to

perpetrate the October 7th attack over and over again. That is obviously a notion that these three countries firmly reject.

And it further amplifies the -- what is kind of the basis in some ways for this decision, which is the fact that the current Israeli government led by

Israeli Prime Minister Benjamin Netanyahu absolutely rejects the establishment of a Palestinian State. Rejects it a two-state solution for

the time being. And that is obviously at odds as well with what the United States has been trying to accomplish in what they hope will be the day

after the war -- the current war in Gaza. They hope that that can lead to the establishment of a Palestinian State, to a pathway to a two-state

solution.

Now, in terms of how the Israeli government plans to formally react to this decision by these three countries, we've heard the Israeli foreign

ministers say that there will be serious consequences. And earlier today, Israel's finance minister, Bezalel Smotrich, a far-right member of

Netanyahu's governing coalition, saying that he will seek the approval of tens of thousands of housing units and settlements in the occupied West

Bank. He will also seek the approval of new settlements in the West Bank. And he is also seeking to withhold Palestinian tax revenues collected by

the Israeli government meant for the Palestinian Authority, which is already severely cash strapped, and that could certainly have a very

serious consequence. Lynda.

KINKADE: Our thanks to Jeremy Diamond there in Jerusalem. Well, families of seven female IDF soldiers kidnapped by Hamas have released graphic footage

of their abduction on October 7th. We need to warn you, the images are very disturbing. The Hostages Families Forum says the video was previously

released by Hamas and received it from the IDF.

[18:05:00]

The IDF made some edits and put some captions on. We can't confirm one of the captions because of the audio quality. You can see several women

bloodied and bruised.

My colleague, Bianna Golodryga, spoke with a mother of one of the hostages.

(BEGIN VIDEO CLIP)

AYELET LEVY SHACHAR, MOTHER OF ISRAELI HOSTAGE NAAMA LEVY: At first, I was actually quite reluctant to see it and I was -- you know, I didn't know

what I was going to see. We knew it was from the body cameras of the Hamas and I really didn't know what to expect. And then some of the parents saw

it and then I saw it.

And you know, I don't think I have enough words in English or in Hebrew to describe what I felt. And that was on October 7th and this is she was

experiencing in this terror attack, and this has been going on for her, for 229 days.

BIANNA GOLODRYGA, CNN SENIOR GLOBAL AFFAIRS ANALYST: We hear her voice and she's speaking to the Hamas terrorists in English saying, I have friends in

Palestine.

SHACHAR: I said, yes, you know, you say -- I heard her, you know, saying whatever she thought was right at that moment to fight for her life and I

was thinking, you know, I knew that she -- if she had a chance that would - - that's what she was going to say because it's true, because she was part of the youth program promoting peace.

(END VIDEO CLIP)

KINKADE: Well, passengers who were on the Singapore Airlines flight that encountered that severe turbulence are describing scenes of chaos and

panic. A 73-year-old man died and more than 100 passengers and crew were injured when the flight going from London to Singapore suddenly dipped on

Tuesday.

New flight tracking data shows the plane continued to climb and fall for about 90 seconds. The terrifying scene happened as many passengers were

having breakfast. The flight diverted to Bangkok where dozens of people are being treated.

Our Senior International Correspondent Ivan Watson is covering the story for us and joins us live from Bangkok. Good to have you there for us, Ivan.

So, we heard earlier that 20 people were getting treatment in intensive care. You've been speaking to some of the passengers. What are they telling

you?

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, I mean, think about that, 20 people on this flight -- from this flight in intensive care

right now. In fact, the Thai authorities here say that after this flight had to make its emergency landing here after hitting that violent

turbulence over Myanmar, that unexpected stop here in Thailand, that up to 85 people had to be hospitalized. That's out of a flight that had 211

passengers and around 18 crews. So, nearly a third of all people on that plane needed hospital treatment to give you a sense of that.

Now, among passengers, one account that has come out several times is that they saw the seatbelt light go on and then the violent movements on the

plane began shortly afterwards on what had otherwise been a very peaceful flight. So, it was very, very sudden, people were describing.

Take a listen to what one of the passengers, who was just leaving a hospital where we were reporting from, had to say to journalists as he was

stepping out of that hospital. Take a listen.

(BEGIN VIDEO CLIP)

JOSH SILVERSTONE, SINGAPORE AIRLINES FLIGHT SQ321 PASSENGER: I had some hurts on my neck, but everything was fine until I arrived back in the

airport and then I started feeling really sick, vomiting. You know, I couldn't stop vomiting, couldn't walk. And yes, it was pretty bad. Yes. But

there were lots of people in worse positions than me. People were laying out on the floor and they couldn't move. They were completely paralyzed.

Yes, I did. I bought some Wi-Fi. I've never bought airport -- airplane Wi- Fi before. I bought some Wi-Fi. I texted my mom and just saying, you know, I don't know -- well, I didn't try not to scare her, but I said, I love

you. People were scared.

(END VIDEO CLIP)

WATSON: That young man, 24 years old, saying that he was thankful to be alive, thankful to be here in Bangkok. Now, we spoke with another

Australian man in the hospital whose wife was being treated. He said that she had been standing in line to use the bathroom and that's, again, when

the violent, sudden turbulence hit and that she was badly injured in that.

And if you need any kind of evidence or proof, again, of how sudden this is and how little warning there was, passengers have said that virtually all

of the flight crew were also injured. So, those people, the professionals on board the plane, they also had very little warning and there were a lot

of commendations for how professional the crew members were, even after they were all hurt in helping try to take care of everybody when this had

happened.

[18:10:00]

Again 20 people in ICU still as a result of this accident. The Singapore Airlines CEO, he's come out and made a public statement, apologizing for

the trauma that people have endured and also expressing his condolences to the family and loved ones of the 73-year-old British man, Geoffrey Kitchen,

who died aboard this stricken flight.

They're still conducting relief flights to try to send the people as they're released from the hospitals here in Bangkok further onward towards

what was their intended destination, and that was Singapore. Lynda.

KINKADE: Yes, the numbers are just quite incredible, aren't they? Really? We'll good to have you there on the ground for us. Ivan Watson in Bangkok.

Thank you.

Well, just a short time ago, former U.S. Republican presidential candidate Nikki Haley announced that she will be voting for Donald Trump in November.

Take a listen.

(BEGIN VIDEO CLIP)

NIKKI HALEY, FORMER U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: I put my priorities on a president who's going to have the backs of our allies and

hold our enemies to account, who would secure the border, no more excuses. A president who would support capitalism and freedom. A president who

understands we need less debt, not more debt. Trump has not been perfect on these policies. I've made that clear many, many times. But Biden has been a

catastrophe. So, I will be voting for Trump.

(END VIDEO CLIP)

KINKADE: Well, we should note, that despite suspending her campaign in March, Haley has continued to garner more than 10 percent of the primary

vote in many states.

Well, we want to go straight to CNN's Kylie Atwood, who joins us now live. Good to have you with us, Kylie, from D.C. So, this was Nikki Haley's first

public appearance in two months since dropping out of the presidential race. She's thrown her support behind Trump, but what else did she have to

say?

KYLIE ATWOOD, CNN U.S. SECURITY CORRESPONDENT: Yes, well, listen, as you said, this is the first time that she has explicitly said that she's going

to vote for Trump in November. And she made the case quite clear, in her perspective, he is simply the better option when compared to President

Biden.

She is a conservative. She has been a Republican her entire career. So, in some ways, this is not altogether surprising. But, Lynda, you also have to

consider, of course, the recent backdrop here that it got incredibly heated during the campaign. She, at one point, said she believed that Trump wasn't

qualified to be president. She said that military families couldn't trust him not to put their loved ones into harm's way. It just -- it got really

heated during the campaign.

And when she ended the campaign, she did not endorse Former President Trump. Instead, she said that the onus would be on him to win over her

voters, in her words, during that dropout speech saying he need to earn their support. And she reiterated that point today, which is significant,

saying that Trump would be smart to reach out to the millions of voters who have voted for her and continue to support me.

And that's a key line there because she's making the case that not only are these people who have support her in the past, she believes that these are

people who still support her to this day. So, we'll have to watch and see how this plays out, how the former president is going to receive this news

that she says she's going to vote for him. If they're going to have a conversation, if she decides to do any campaigning on his behalf, those are

questions that are yet to be answered.

KINKADE: Yes, absolutely. And when you think about what she said in the past, you mentioned some of the things. But she also called Trump

disgusting, she called him unhinged, you have to wonder whether he's also going to put this behind him and whether she might jockey for the vice

president or running mate position.

ATWOOD: It's a fair question to ask. There's many people who are jockeying for that position right now. But they are aggressively jockeying for that

job. We have not seen Nikki Haley do that. She said in her dropout speech that she isn't looking for anything from Former President Trump. Making it

quite clear that she's not really angling for a job in a second potential Trump administration.

Now, things change, conversations change. Today, will certainly change the tone of the conversation around Nikki Haley. We know that it has been quite

coarse between the two of them. So, we'll just have to watch and see how it plays out. But there have been many other contenders for vice president who

have been really trying incredibly hard to get that job up until this point. And even still today, Nikki Haley just isn't one of them.

KINKADE: Yes, and Trump, of course, needs her supporters, her voters. But whether he'll get them, whether he'll win them over is another question.

Kylie Atwood, good to have you with us from D.C. Thank you.

[18:15:00]

Well, still ahead, your latest weather and sport. Plus, chip split. The king of the A.I. chip world, NVIDIA, is out with the latest results and

announcing a big stock split. We'll have the details just ahead.

And later this hour, deep fake dilemma. Chinese social media is being flooded with fake A.I. generated videos of Russian women glorifying China

and even looking for Chinese men. Don't believe a word about. A special report coming up.

(COMMERCIAL BREAK)

KINKADE: Welcome to "First Move." I'm Lynda Kinkade topping today's "Money Move." Investors seeing right after hawkish comments from the Fed. U.S.

stocks fell across the board Wednesday after the U.S. Federal Reserve released the minutes from its last policy meeting. The minutes revealed

that some policymakers are worried that it will take longer to tame inflation.

New comments from the CEO of Goldman Sachs did not help sentiment either. David Solomon saying the Fed will probably not cut rates this year due to

stickier inflation.

Well, in corporate news, shares of retailing giant Target tumbled after it missed on earnings. It cited a pullback on consumer spending. Target

recently announced that it will cut prices on thousands of items to make them more affordable.

Shares of BuzzFeed soared on news that Former Republican Presidential Candidate Vivek Ramaswamy has taken a more than 7 percent stake in the

firm. He believes the stock is undervalued.

Well, in other business news, it's the moment the tech world has been waiting for. Artificial intelligence chip firm NVIDIA has just released its

first quarter results. Earnings easily beat expectations. Sales rose more than 260 percent and the company is announcing a 10 for 1 deal stock split.

Well, NVIDIA shares are currently up more than 5 percent in afterhours trading. Call it a sigh of relief from tech investors and further proof

that the A.I. boom is still going strong.

Well, tech analyst Dan Niles, the founder of Niles Investment Management, joins me now. He and his family own shares in NVIDIA. Good to see you.

DAN NILES, FOUNDER, NILES INVESTMENT MANAGEMENT: Thanks for having me on, Lynda.

KINKADE: So, clearly, the company beat estimates. The first quarter up 18 percent from the last quarter, and year on year over 260 percent. But only

slightly better than what was expected.

[18:20:00]

NILES: Well, I mean, the revenues came in about 6 percent higher than expected, but that's about $1.4 billion. And the EPS came in or earnings

per share about 9 percent better than expected. But importantly, they're raising the outlook as well to 5 -- an extra 5 percent. So, the stock

deserves to be up in the aftermarket.

They also did a stock split of 10 to 1. So, it'll go from about $1,000 a share to about 100, which will make it more affordable for retail investors

who want to get in. And they increased their dividend per share by about 150 percent. So, all of those things are really positive. And the

conference call they had talking about a lot more growth ahead of them, that was also good from a big picture basis.

KINKADE: So, that 10 to 1 stock split will make it more accessible for more investors. Was that expected?

NILES: Yes. I mean, people -- a lot of companies have gone through a stock split recently. I mean, Chipotle, your viewers may be familiar with, they

went through a 50 to 1 stock split. The stock is about 8 percent higher than when they announced that. And so, people are expecting within NVIDIA

shares approaching $1,000 that 10 for 1 that might happen, and it did.

So, that's a good thing. I mean, you forgo going to Starbucks for a month and you can buy a share of NVIDIA, which I would argue will get you a lot

further. So, it's a good thing for people.

KINKADE: I mean, it -- these results have become a way for investors to certainly gauge the strength of the artificial intelligence boom. This

company, of course, produces the chips that generate A.I. tools. It has next to no competition, right?

NILES: Yes. I mean, they've been investing in the software, never mind the hardware, that enables A.I. to basically exist. And they've been doing that

for probably a decade now. So, they have a huge head start over a lot of other people that want to get into that business of producing the chips.

And really, their software is what makes it very difficult because that's the secret sauce for running their hardware.

And so, I think it's going to be very hard for potential competitors like AMD or Intel to make a lot of inroads into what NVIDIA is producing. And

they're also producing new chips at a very fast pace. They'll be getting another new chip coming out that's about 2.5 times more powerful than their

current chip, but only cost you 20 to 30 percent more in a few months. And that should drive another wave of demand from the biggest companies on the

planet that are spending on it.

KINKADE: And the biggest companies in the world, as you say, are driving the profit. How long do you think this rally can last?

NILES: Well, I think a lot of your viewers who are older will probably remember the birth of the internet. And if you look at the end of 1994,

when you heard about this thing called the internet and a web browser, so Netscape, Navigator came out at the end of 1994. Cisco Systems was the

NVIDIA of that time, and they produced the networking gear that made the internet possible to some degree. And their revenues went up about 15.5

times from about 400 million to 6.7 billion over that five-year period of time and the stock went up 4,000 percent.

If you look at NVIDIA, their revenues are up about a little over four times, and the stock's up a little over 500 percent. And it's only been

about, you know, 15 months or so, since you heard about this thing called ChatGPT, OpenAI, you know, artificial intelligence. And so, I think you've

got another several years in front of you of strong growth.

And importantly, names like Google, Microsoft, Amazon, Facebook, those are the companies that are spending on this versus back in the early days of

the internet where you had a bunch of unproven names. The internet advertising model didn't exist. So, you didn't know how to make money off

of it. These big companies today that are spending on A.I., they already are highly profitable. They know how to make money off of A.I. and that

should keep this spending boom going for a while.

KINKADE: For quite a while indeed. Dan Niles, the founder of Niles Investment Management, good to have you on the program. Thank you.

NILES: Thank you, Lynda.

KINKADE: Well, multiple people have died after an Iowa town was hit by a devastating tornado. Greenfield's hospital was damaged during the storm,

forcing some patients to leave for other facilities. At least 18 tornadoes were reported in Iowa Tuesday, part of a wave of storms across the U.S.

this week. Whitney Wild joins me now from Iowa.

This tornado, Whitney, was just so strong. We saw a semi-trailer on a highway tipped over on its side. We saw wind turbines snapped in half like

they were a piece of straw. What are people saying to you there that you're speaking with?

[18:25:00]

WHITNEY WILD, CNN CORRESPONDENT: Well, it's interesting you mentioned the wind turbine because I was talking to some folks here on scene and I said,

you know, have you ever seen a wind turbine topple over in a storm? And they said, absolutely not. I mean, this is such a rare occurrence. Even

though Iowa is a place where they know storms, a storm like this is still a pretty big shock.

This was an EF3 and it just decimated this town. It ripped right through the center of what is a pretty small town, Lynda. It is 2,000 people in a

less than a two-square mile area. And as you can see from the video, the destruction is just so vast.

We went out to a couple of places around town. And at one point, I was actually standing on a slab of concrete and I looked over and I saw that

there had been a house there. And what I realized was that I was standing where a garage had been, but it -- when you're out in these scenes, and

there's so much destruction, it takes a few minutes to understand what you're looking at because the destruction is just so enormous.

And then back to that hospital. There's an anecdote I think is important to share. That hospital was so hard hit that parts of it became inoperable.

And so, what they did was they took patients out of the hospital and they triage them in the hospital basically a couple yards from where I was

standing in the destruction. I mean, they went to a parking lot of a lumber company, and that's where they triage patients until they could get them to

other places. For example, using flight to life to get patients out of Greenfield into hospitals that were in working order. That is how dire the

situation is.

I'm at the edge of Greenfield and the situation there is so dangerous that law enforcement has insisted and really insisted upon having police escorts

to go in there because the situation is still a search and rescue mission. There is destruction everywhere. It is a dangerous and volatile situation

because you just don't know how stable buildings are.

So, let me give you a look over my shoulder. And you can see even from -- I'm about a mile away, even from about a mile away, Lynda, you can see what

looks just like a massive heap. That was the town. That was Greenfield. And now, it has been reduced to a pile of rubble.

I spoke with one woman who was inside her home. She's disabled. So, she was in a main floor. She couldn't get down to the basement where most people

hunker down during a tornado. She was in her chair and she said that the tornado was coming. And here's how she described that moment to me.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: It's stressful. Stressful. So, it just makes me sick looking at all these houses. I was panicky. I mean, panicky. I thought I

was going to be boom gone. And when I went out to see the damage, where my roof's gone and everything, that's when I started crying.

(END VIDEO CLIP)

WILD: There is so much emotion here. People are simply exhausted. They've been working on this since 3:45 yesterday. And one thing that stands out

that's very different from other storms I've covered, Lynda, we are more than 24 hours since this tornado hit, we don't yet know how many people

have died, how many people are injured or what the total dollar amount of damage is going to be here.

So, certainly, a very long road to recovery. And at this point, law enforcement and state officials can't even say -- can't even define using

any data points how bad this was. They're still in the basically research mode here as they continue the search and rescue mission.

KINKADE: Yes, search and rescue mission still underway. Whitney Wild in Iowa, good to have you there. Thank you.

Well, the storms aren't over. A large part of the U.S. is bracing for more severe weather, including more tornadoes. With more on the forecast, I'm

joined now by Chad Myers. So, Chad, like we saw the devastation from the tornado in Iowa. It was at least an EF3. Explain what that means.

CHAD MYERS, CNN METEOROLOGIST: Probably somewhere, Lynda, around 160 miles per hour, 260 kilometers per hour as it was rotating around. Now, they

could find damage that's higher than EF3. What the weather service went out there and looked at today, they said at least the EF3. So, somewhere

between 140, 165. Could it be higher? Absolutely.

The way they look at this is how much damage happened, not what the wind speed was, but what the wind did. Did it knock down brick structures? Did

it just knock over a car? Well, that wouldn't be an EF3 if it was just a car. You can't get any EF scale with just a vehicle. But we have all of

these tornadoes from Wisconsin all the way down into Oklahoma yesterday.

Now, today, the focus is kind of into Texas. I've already seen a few storms that were rotating, looked very, very healthy that could have put down some

tornadoes. Right now, I don't have anything confirmed other than way, way out west into parts of Texas. And I think that warning, when I looked at

it, contain like 38 souls out there. 38 people inside that warning box. So, not a very populated area.

We're still going to watch it for today. We still have the tornado watching effect here right in the middle of Texas. And Dallas, you had some storms,

especially north of you, but nothing that was spinning. Nothing that really generated that tornado warning for you. And there's a storm, pretty heavy

storm, lots of lightning headed toward Waco here in the next 30 minutes, I think.

Everything else moves off to the east and calms down. Finally. I think tomorrow's calm, maybe even all the way through Saturday is pretty calm,

but it does look like Sunday is going to ramp up again with the potential for more tornado.

[18:30:00]

Certainly, a lot of rainfall. We could see more flash flooding. People can get out of the way of a flash flood a lot easier than get out of the way of

a tornado. But flash flooding happening at night can be very, very dangerous. We'll keep watching that. Lynda.

KINKADE: Yes, exactly. At least there is a bit of a break from those tornadoes after four straight days. Chad Myers, thank you so much.

MYERS: You bet.

KINKADE: We're going to take a quick break. We'll be right back. You're watching CNN. Don't go anywhere.

(COMMERCIAL BREAK)

KINKADE: Welcome back to "First Move." I'm Lynda Kinkade with a look at more international headlines this hour. British Prime Minister Rishi Sunak

has set the date for a general election, July 4th. His Conservative Party faces a tough challenge to extend its 14 years in power. It's trailed the

Labour Party led by Sir Keir Starmer in the polls for more than two years.

Graceland is off the auction block, at least for now. A Tennessee court chancellor ruled that the company trying to sell it is likely committing

fraud. The Memphis mansion belonged to musical superstar Elvis Presley. After the hearing, a person who claimed to represent the company trying to

foreclose on the property said it would drop its claim.

The Boeing Starliner's historic crew launch has been postponed yet again, this time indefinitely. The update comes on the back of several previous

delays. The crewed mission could be the final milestone before NASA officially signs off on using Boeing's spacecraft for routine operations.

Well, now to Ukraine, where troops are trying to protect a strategic village they can't afford to lose to Russia. If Russian forces take it,

their artillery will be in range of Ukraine's second largest city, Kharkiv. Nick Paton Walsh got an exclusive look. And we have to warn you, some of

the images in his report are graphic.

[18:35:00]

(BEGIN VIDEO CLIP)

NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT (voice- over): Some towns they can never let Putin take, and this, Lyptsi, is one

of them.

Destroyed artillery on the streets. Homes aflame from an airstrike, they can only move at night.

UNIDENTIFIED MALE: Lights off.

WALSH (voice-over): It's a perilous grip they keep, but lose here, and Russian artillery will be in range of Ukraine's second city, Kharkiv.

WALSH: You can still smell the smoke here from an airstrike that landed just in the last hour or so.

WALSH (voice-over): This is life under the drone. We're the first reporters into the heart of the town. Only soldiers left here underground. The

Khartila 13th National Guard first tackled Russia's new offensive.

OLEKSANDR, KHARTILA NATIONAL GUARD BRIGADE (through translator): You saw how it's all burning. It's like that every night.

WALSH: Do you think there were good enough fortifications here?

OLEKSANDR (through translator): Nothing was prepared here. Nothing. Just nothing. All the positions are being built by the hands of the infantry.

The Russians are trained professional soldiers. We can see it from their equipment, from their tactics.

WALSH (voice-over): There were eight airstrikes just in the last hour, so we leave soon. A buzzing noise near us, very close, and the only way they

know whose drone this is, is if it attacks.

UNIDENTIFIED MALE (through translator): Is it your drone?

UNIDENTIFIED MALE (through translator): Who knows?

WALSH (voice-over): All around Kharkiv, they don't have enough guns and the Russians have too many drones. The 92nd Assault Brigade show us something

that isn't even theirs.

WALSH: Russian artillery piece that they captured in the first year of the war in the fighting in Kharkiv region. And now they use, strangely, French

mortar rounds to fire from here. It's just a sign of how little appropriate ammunition they have available to them. This wire is a protection from FPV

drones.

WALSH (voice-over): Above, he sees a drone with two battery packs, a long- range scout.

WALSH: Run. Basement.

WALSH (voice-over): It is not friendly. If you can tell, it's an attack drone. Hide. This seems to be a scout. So, running is better before it

calls in shelling.

Another artillery unit wants to show us something not even Russian, but Soviet. Made in the 1940s, it can still fire newer Polish shells. In the

autumn, it was a hundred a day, now it is 10.

WALSH: Extraordinary to see something here that's three times the age of either of these two guys holding back a new Russian offensive in 2024. I

say the metal is so old that that limits the number of times.

WALSH (voice-over): That sound warns another drone is incoming. And back in the bunker, they show us the online bought 30 gadget that is their best

warning mechanism.

The team here embody Ukraine's exhaustion and resilience. Older guys, wounded infantrymen. Artur (ph) has drone shrapnel in his arms still.

UNIDENTIFIED MALE (through translator): Moving towards Lozova?

UNIDENTIFIED MALE (through translator): Yes, yes.

UNIDENTIFIED MALE (through translator): Orlan. Don't go out at all for now.

WALSH: He just saw an Orlan Russian drone passing overhead. So, he is saying, better stay inside.

WALSH (voice-over): On the way back into the city, we see what fuels this defense. This was a lakeside resort, football, cocktails, a beach.

WALSH: Extraordinary devastation. I think they're here to collect the bodies.

WALSH (voice-over): A seven-month pregnant woman was among the seven dead here. Another body found later, just fragments in the mulch.

Russia's advance looms over whatever life persists here, belching out over homes. The darkest little salvation, this may be a drone being hit, but

they kill two when they crash in failure. Flares breached the enforced blackout. Moscow is getting nearer again. And there are always too many

blasts before dawn.

Nick Paton Walsh, CNN, Kharkiv, Ukraine.

(END VIDEO CLIP)

KINKADE: Well, still to come after the break, a deep dive into China's alarming misuse of artificial intelligence. How deepfakes are used to

spread Beijing's propaganda.

(COMMERCIAL BREAK)

[18:42:16]

KINKADE: Welcome back. I'm Lynda Kinkade. An alarming misuse of artificial intelligence and China's deepfake diplomacy. Beijing employing an A.I.

generated videos on social media to promote its foreign policy. Our Will Ripley has the details.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE (through translator): I am really envious of you Chinese.

UNIDENTIFIED FEMALE (through translator): China is the safest country in the world.

UNIDENTIFIED FEMALE (through translator): Only in China can you sleep soundly.

WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): On Chinese social media, what you see --

UNIDENTIFIED FEMALE: I am Chinese.

RIPLEY (voice-over): -- may not be what you get.

UNIDENTIFIED FEMALE (through translator): Single men in China, I have good news.

RIPLEY (voice-over): The women in these videos supposedly Russian, with messages appealing to the romantic fantasies and nationalist pride of some

Chinese men.

UNIDENTIFIED FEMALE (through translator): I love this land. I love China.

RIPLEY (voice-over): Below the videos, comments like this. Welcome to China, Russian beauty.

OLGA LOIEK, YOUTUBER: This is so creepy.

RIPLEY (voice-over): Olga Loiek is a student at the University of Pennsylvania. She claims in this video on her YouTube channel, someone

cloned her image in China and is peddling products and propaganda with A.I. generated deepfakes of her.

LOIEK: The narratives my clones were voicing sounded like blatant propaganda.

RIPLEY (voice-over): Deepfakes designed to build a narrative of alliance and admiration between China and Russia, largely untouched by the

government's heavy-handed censors. CNN cannot independently verify the videos, which have now been taken down. But not before Loiek says they

racked up thousands of views.

LOIEK: Here she already has 140,000 fans? And she has a ton of videos of my face. Where she likes saying how much she likes Russia, and how much Russia

needs Chinese economic support. As a Ukrainian, this has obviously been infuriating for me.

RIPLEY (voice-over): How this happened? Loiek says she has no idea. CNN showed Loiek's real and fake videos to people in Taipei.

RIPLEY: Couldn't tell the difference?

How's your Chinese?

UNIDENTIFIED FEMALE: A.I.

RIPLEY: A.I. You can tell.

UNIDENTIFIED MALE: No, I have no idea.

RIPLEY: You can't tell which one is A.I.?

UNIDENTIFIED MALE: No, no.

RIPLEY (voice-over): Artificial intelligence is advancing so quickly, experts say you need A.I. detection software just to identify some deep

fakes.

TYLER WILLIAMS, DIRECTOR OF INVESTIGATIONS, GRAPHIKA: A general kind of undermining of a source of truth.

RIPLEY (voice-over): Amplifying the power of disinformation and not just in Chinese.

UNIDENTIFIED MALE: Staged by the Filipino side --

RIPLEY (voice-over): Chinese state media is using A.I. enhanced videos on TikTok, altering the reporter's voice and face. A disclosure on screen for

just a few seconds, easy to miss.

UNIDENTIFIED FEMALE: Under China's jurisdiction.

RIPLEY (voice-over): The video is pushing Beijing's narrative on the South China Sea.

[18:45:00]

RIPLEY: Is this a threat to democracy?

FELIPE SALVOSA II, JOURNALISM PROFESSOR, UNIVERSITY OF SANTO TOMAS: Most definitely. I think China has found a more cost-effective way to get its

message across.

RIPLEY (voice-over): Turning today's digital landscape into a battleground for truth, where seeing is no longer believing.

Will Ripley, CNN, Taipei.

(END VIDEO CLIP)

KINKADE: Well, still to come on "First Move," and staying in China, superstar singer Rihanna is cooking up a storm in Shanghai. So, what's in

the menu? We'll tell you after a short break. Stay with us. You're watching CNN.

(COMMERCIAL BREAK)

KINKADE: Welcome back. The world of A.I. has hit a milestone in Abu Dhabi. Autonomous race cars facing off with a professional race car driver.

Veronica Miracle has more.

(BEGIN VIDEO CLIP)

VERONICA MIRACLE, CNN CORRESPONDENT (voice-over): At the Yas Marina Circuit, practice sessions are in full swing for the Abu Dhabi Autonomous

Racing League. Teams from eight international universities are busy coding, designing algorithms that they hope will allow artificial intelligence to

drive these racing cars on the track.

But can A.I. compete with the skill and experience of a professional racing driver? To find out, I've come to the track to meet former Formula 1 driver

Daniil Kvyat.

MIRACLE: You are about to go head-to-head with artificial intelligence. Did you ever think this was going to happen in your life?

DANIIL KVYAT, FORMER F1 DRIVER: It's great to be part of this project. There was a lot of talks about it in the past. And now, here, it's actually

happening for the first time.

MIRACLE (voice-over): Daniil Kvyat is no stranger to the Yas Marina Circuit, but his memories of the track are bittersweet.

KVYAT: I won my Formula 3 title here more than 10 years ago already. Also, it was my last race in Formula 1 here. So, yes, a lot of memories.

MIRACLE (voice-over): This time, the driver will come face to face with artificial intelligence for a test of speed.

MIRACLE: What is it like for you to see coders in the pits?

KVYAT: This is engineer's world. It's a perfect playground for them. And my job is more to guide, to give a bit of feedback, to give perspective from

the human side.

UNIDENTIFIED MALE: That is a driver. That is Daniil Kvyat in the car, the former Formula 1 driver stalking the A.I.

MIRACLE (voice-over): Out on the track, the autonomous car has been taught to think and act like a racer. But after a series of laps, it is clear that

the human at the wheel still has the edge. And Kvyat beat his autonomous adversary to the finish line by 10.38 seconds.

As autonomous tech is pushed to the limit, the hope is that the lessons learned on the track may be used to improve mobility in the future.

MIRACLE: This technology is still young, but do you think one day this car could outperform you. Will you be out of a job soon?

[18:50:00]

KVYAT: I don't think so. The progress has been incredible. But I think, again, the target is not that. The target is to bring this technology to

the point where it can actually serve its purpose outside also of racetrack and the technology progress.

TOM MCCARTHY, EXECUTIVE DIRECTOR, ASPIRE: It's still up to the machine to catch up on the driver because when we talk about the human driving, there

is so much that comes with fear. What's remarkable is how close the machine is getting. It's quite astonishing.

(END VIDEO CLIP)

KINKADE: Well, the Cannes Film Festival is one of the most important events in the cinema world, often foreshadowing the next big award winners. This

year's Cannes Film Festival had the big Hollywood names, controversial films, and even an Olympic moment. CNN's Saskia Van Dorn reports.

(BEGIN VIDEO CLIP)

SASKIA VAN DORN, CNN CORRESPONDENT (voice over): It's that time of year again, when Hollywood glamour comes to the French Riviera.

The 77th annual Cannes Film Festival is underway. This nearly two-week event has been full of starlet moments, extraordinary fashion, and show-

stopping red-carpet events, including the arrival of the Olympic flame. The torch was carried up the famous steps of the Palais des Festival for the

viewing of the documentary "Olympique." A film featuring Olympic and Paralympic champions.

However, the real stars of the festival are the films themselves, including "Francis Ford Coppola's Megalopolis," "The Substance," starring Demi Moore,

and the new buzzworthy "Mad Max" saga from Warner Bros. Pictures, which shares a parent company with CNN.

UNIDENTIFIED MALE: That wasn't hope, that was instinct.

VAN DORN (voice-over): Mexican drug lord musical "Emilia Perez," by French director Jacques Audiard, Starring Selena Gomez, Zoe Saldana, and Karla

Sofia Gascon, received a nine-minute standing ovation.

JACQUES AUDIARD, DIRECTOR OF "EMILIA PEREZ" (through translator): It's that when you show your film here, it's really seen by the whole world. And

that's it. I know that I'm very anxious every time I come. I'm very, very, very anxious. And it doesn't get easier with the years.

VAN DORN (voice-over): Japanese animation studio, Ghibli, became the first group to be awarded the honorary Palme d'Or, which usually goes to an

individual. Another film causing a stir is "The Apprentice," a biopic about Former U.S. President Donald Trump. A spokesperson for the Trump campaign

said it would be filing a lawsuit over the film.

Director Ali Abassi said the former president should watch the movie before taking any legal action.

ALI ABBASI, DIRECTOR OF "THE APPRENTICE": I don't necessarily think that this is a movie that, you know, he would dislike. I don't necessarily think

he would like it. I think that he -- I think he would be surprised.

VAN DORN (voice-over): The film depicts prominent lawyer Roy Cohn and Trump in his early years as a real estate mogul.

Jurors for this year's festival include director Greta Gerwig and actresses Lily Gladstone and Eva Green.

PIERFRANCESCO FAVINO, ACTOR (through translator): It's an honor. It's a pleasure for me. As a film lover and also a cinema goer, it's like being a

kid in a candy store. And being surrounded by people I admire and respect is marvelous.

VAN DORN (voice-over): The International Film Festival will end this weekend when the Palme d'Or is awarded.

Saskia Van Dorn, CNN, Paris.

(END VIDEO CLIP)

KINKADE: Well, Rihanna has cooked up a clever bit of marketing while in Shanghai. The singer and business mogul wowed shoppers by making Chinese

crepes at an event for her cosmetics company. It went viral on Chinese social media. Mike Valerio reports.

(BEGIN VIDEO CLIP)

MIKE VALERIO, CNN NEWSOURCE NATIONAL CORRESPONDENT (voice over): Rihanna serving up looks and Jian Bing, a type of crepe in Shanghai. The artist and

entrepreneur was in the city for her beauty brand's first ever pop up in China.

The Fenty event was a masterclass in enticing Gen Z shoppers amid a slump in Chinese retail consumption that's hit the country's economy hard.

Rihanna quickly became the number one trending topic on Chinese social media site Weibo.

Rihanna is no stranger to the connection between cookery and couture going viral online. The show stopping look by Chinese designer Guo Pei nicknamed

the omelette dress captivated onlookers at the 2015 Met Gala and became the root of many an internet meme.

Of course, if you want to sell your products in China, you'd better be ready to live stream, even if Forbes says your net worth is over $1

billion.

Rihanna joined several beauty bloggers to showcase Fenty products on Douyin, China's version of TikTok. There were more than 460 million live

streaming e-commerce users in mainland China in 2022, according to a body affiliated with Beijing's commerce ministry.

RIHANNA, SINGER: I love them. Are you kidding?

VALERIO (voice-over): Now, we can add Rihanna to that long list.

Mike Valerio, CNN, Hong Kong.

(END VIDEO CLIP)

[18:55:00]

KINKADE: Well, put a feather in the cap of the folks who work at the Webbs auction house in New Zealand. They've just auctioned off the world's most

expensive feather for more than $28,000. Way above the $3,000 estimate. The feather comes from a now extinct New Zealand bird.

The purchase may have set records, but with that price tag, the winning bidder probably has a much smaller nest egg.

Well, finally, on "First Move." A plane that puts pets first. The world's first luxury airline for dogs. BARK Air is set to kick off its maiden

flight on Thursday.

(BEGIN VIDEO CLIP)

MATT MEEKER, CO-FOUNDER AND CEO, BARK: First class experience for the dog. A business class experience for people. Along the way, the dog's treated to

a lot of pampering. Including, you see the pillows and blankets all over, they're covered in pheromones that make the dog more comfortable.

(END VIDEO CLIP)

KINKADE: The airline is currently only flying between New York, London, and Los Angeles. The price for a one-way international flight is a whopping

$8,000 for one dog and its human companion, and $6,000 for a domestic trip. Tickets include treats, toys, and an on-board spa. Well, you'll be able to

hear from the CEO, Matt Meeker, when we speak to him on the show tomorrow.

Well, that just about wraps up the show. I'm Lynda Kinkade. Thanks so much for joining us. Have a good night. Oh, good morning.

(COMMERCIAL BREAK)

END