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First Move with Julia Chatterley
Biden Democracy Speech; Biden Apologizes to Ukraine for Aid Delays; Israeli Strike on U.N. School Kills Dozens in Gaza; Nine Militants Killed in Strike on U.N. School; U.N. Chief Includes Israel's Military in Blacklist That Harms Children; U.S. Jobs Boost; U.S. Wage Growth Rises First Time in Months; Japanese Government Launches Dating App; Japanese Birth Rate Decline; China's World's Toughest College Exam; GameStop Shares Fall; Cuban Businesses Can Now Open Bank Account in U.S.; Archer Aviation's Flying Taxi; Alcaraz Face Zverev in French Open Men's Final; Swiatek face Paolini in French Open Women's Final. Aired 6-7p ET
Aired June 07, 2024 - 18:00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[18:00:00]
(COMMERCIAL BREAK)
JULIA CHATTERLEY, CNN HOST, FIRST MOVE: It's 7:00 a.m. in Tokyo, midnight in Paris, and 6:00 p.m. here in New York. I'm Julia Chatterley. And
wherever you are in the world, this is your FIRST MOVE.
A very warm welcome to FIRST MOVE, and here's today's need-to-know. The fight for freedom. President Biden says D-Day veterans would want Americans
to stand up to Russia, as he apologizes to Ukraine for aid delays.
Rate cuts curtailed. A surge in hiring in the U.S. casts doubt over the Federal Reserve's next move.
Baby boost. The Japanese government launches a dating app in response to the nation's record low birth rate.
And coming soon to a sky near you, the CEO and founder of Archer Aviation will talk sky taxis success. That conversation and plenty more coming up.
But first, U.S. President Joe Biden apologizing to his Ukrainian counterpart Volodymyr Zelenskyy for just how long it took Congress to agree
on further aid, while also announcing a new package of $225 million worth of military support.
(BEGIN VIDEO CLIP)
JOE BIDEN, U.S. PRESIDENT: I'm not going to walk away from you. I apologize for the -- those weeks of not knowing what's going to happen in
terms of funding.
(END VIDEO CLIP)
CHATTERLEY: Also, earlier Friday, the U.S. president spoke at Pointe du Hoc, where American troops scaled the cliffs to dismantle German artillery.
He reiterated, 80 years after D-Day, the fight for freedom is far from over.
(BEGIN VIDEO CLIP)
BIDEN: They're not asking us to give or risk our lives, but they are asking us to care to others in our country more than ourselves. They're not
asking us to do their job, they're asking us to do our job, to protect freedom in our time, to defend democracy.
(END VIDEO CLIP)
CHATTERLEY: And Kayla Tausche has more on Friday's events.
(BEGIN VIDEOTAPE)
BIDEN: The Rangers who scaled this cliff didn't know they would change the world, but they did.
KAYLA TAUSCHE, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice-over): Atop the beaches, Allied troops stormed on D-Day to defeat the Nazis. President
Biden warning of renewed threats to democracy in Europe.
BIDEN: Does anyone doubt that they would want America to stand up against Putin's aggression here in Europe today?
TAUSCHE (voice-over): And at home.
BIDEN: They fought to vanquish a hateful ideology in the '30s and '40s. Does anyone doubt they wouldn't move heaven and earth to vanquish hateful
ideologies of today?
TAUSCHE (voice-over): From the sky, Biden surveying the hundred-foot cliffs American soldiers scaled, dodging the bombs that left craters in the
hillside to overtake Nazi lookouts and artillery positions, paving the way for a D-Day victory and a free Europe. Those American troops honored here
by Ronald Reagan 40 years ago in his iconic Cold War era speech.
RONALD REAGAN, FORMER U.S. PRESIDENT: These are the boys of Pointe du Hoc. We've learned that isolationism never was and never will be an acceptable
response to tyrannical governments with an expansionist intent.
TAUSCHE (voice-over): Army Ranger John Wardell arrived days after June 6, 1944 to replace a fallen soldier. He came back this year to remember.
Wardell's fellow soldiers may be gone, but their memory, Biden said, and their mission live on.
BIDEN: They're not asking us to scale these cliffs, but they're asking us to stay true to what America stands for. They're not asking us to give or
risk our lives, but they are asking us to care for others in our country more than ourselves. They're not asking us to do their job. They're asking
us to do our job to protect freedom in our time.
(END VIDEOTAPE)
CHATTERLEY: Now, to fresh Israeli strikes in Gaza. At least three people were killed Friday at a school linked to a U.N. in the Al-Shati refugee
camp, according to local officials. The Israeli military saying once again it used precise munitions to target alleged Hamas militants.
It follows Thursday's attack on another U.N. run school where thousands are believed to have taken shelter. That attack killed at least 40 people,
including children. with health officials saying nearly 80 people died in just 24 hours across the enclave.
[18:05:00]
Washington says the Israeli government would release more information about Thursday's strike, expecting that info to be made "fully transparent."
We're also learning that the head of the United Nations has taken the extraordinary step of adding the Israeli military to a blacklist of
entities that harm children. The report should be submitted to the Security Council next week.
Paula Hancocks joins us now. Paula, these strikes just continuing to pile pressure on the Israeli government and it does seem the coalition itself
could appear differently if Benny Gantz does decide to announce that he's going to leave this weekend.
PAULA HANCOCKS, CNN CORRESPONDENT: Yes, it'll be a key day, certainly, Julia. We know that at 8:40 p.m. local time on Saturday night, Benny Gantz
will make an announcement. Now, he has said last month that he gave the Israeli Prime Minister Benjamin Netanyahu three weeks to come up with a
certain conditions, otherwise he and his party would walk away from the coalition.
Now, those conditions were to have a precise plan for how to get the hostages back from Gaza, to make sure there was a day after the war plan
for Gaza, and also, to make sure that the northern border was calmer so that tens of thousands of residents could move back there. Now, none of
these conditions have been met.
At this point, we know that Netanyahu, for many months now, has been very vague in any plans for a post-war Gaza. But we also know that U.S.
officials have been trying to convince Gantz not to walk away at this point because they're concerned about what that could do to the ceasefire and
hostage deal that's on the table at this point. That is according to U.S. officials close to those conversations.
We don't know whether that would have swayed Gantz in any way. We will find out on Saturday night if he is going to walk away from the coalition, and
of course from that key war cabinet. Now, if he does decide to walk away, the coalition doesn't automatically collapse. We know that Netanyahu will
still have a majority, but it will be a much slimmer majority. But it will make him more isolated, certainly domestically and internationally. Julia.
CHATTERLEY: Paula Hancock's there. Thank you for that report. OK. Now, to the U.S. Economy. The surest bet in financial markets is that the Federal
Reserve will keep interest rates steady when it meets next week after yet another month of robust jobs growth.
The U.S. employers adding 272,000 jobs net in May. That's almost 100,000 more than expected. With workers also getting a little bit more cash than
expected in their pay packets too. The numbers sure to spark some interesting discussions at the Federal Reserve and the market has already
adjusted. Just one quarter point cut is fully priced this year.
Paul La Monica joins us now. He's senior markets analysis writer at Barron's. Happy Friday, Paul. Happy Friday, if you're a job seeker in the
United States as well, according to these numbers. The market adjusted very quickly, assuming that this would hold the Fed back from cutting rates, but
the data a little bit more complicated than that, I think. What do you make of it?
PAUL LA MONICA, SENIOR MARKETS ANALYSIS WRITER, BARRON'S: Yes, Julia, I think the wage gain accelerating again to 4.1 percent year over year, as we
know, wages are a big component of inflation and that's what the Fed is really worried about right now. So, you really saw the reaction in the bond
market, the long-term bond yields, the 10-year treasury yield had been tumbling over the past couple of weeks.
There was this notion that the Fed possibly would be able to cut rates after all, maybe as early as September. Not so sure that's in the cards
anymore. And you saw the 10-year yield spike from about 4.3 percent just before the jobs report to about 4.43 percent, a pretty dramatic move in a
short period of time.
So, bond traders clearly not convinced that inflation is out of the picture just yet. And the Fed may very well have to stay on old higher for longer.
CHATTERLEY: Yes. I mean, that was an accident that some of our viewers may have seen on the corner of their screen there. But we've actually got the
front cover of Barron's that has Jerome Powell featured on the front. And the title says "Why He Won't Cut Rates This Year." Paul, is that the
thinking?
LA MONICA: It very well could be the case. Yes, my colleague Nick Jasinski wrote that story about how everyone was hoping the Fed would be cutting
rates. Remember the beginning of the year, we're talking about five, six rate cuts that those hopes gradually diminished to two or three. And I
don't think that it is out of the question, like my colleague obviously wrote, that the Fed may not be able to do anything until 2025.
[18:10:00]
If inflation remains sticky, you quickly get to September. If the Fed doesn't have evidence where they feel like they could cut, they're not
going to do it in November, most likely shortly after the election, an election where we may not yet know who is president. So, then maybe you're
looking at December. That if we get to that long, then maybe 2025 is when the Fed finally starts cutting, assuming inflation pressures have finally
receded.
CHATTERLEY: Yes, I went out on a limb today and said, I don't think they're going to be able to cut before the presidential election in
November either. But if I sort of calibrate some of the optimism here, at least on the jobs market. If you look at the household survey, which
actually goes to households and ask people how they're doing, that's weakening, jobs opening is weakening. Anecdotally, from both smaller and
larger businesses, I hear some noises that actually the inflation rates that they see are less than the data that we're seeing officially that the
Fed use.
There are signs perhaps that they've got more room to maneuver here, at least the Federal Reserve do, then perhaps you might think.
LA MONICA: Yes, I think that's definitely right. And we shouldn't over analyze the one jobs report from today and exclude all of the other data
points that might be suggesting that there is weakness. You did have, as you mentioned, Julia, that jolts number earlier in the week, weekly jobless
claims did inch up as well. The ADP number weaker than expected. And don't forget, the ISM manufacturing number from earlier this week, also not a
great number.
So, there are some signs that the economy is cooling, which is what the Fed wants. They don't want it to fall off a cliff, obviously, but if we get
signs of a soft landing, then the Fed could probably pivot and start to cut rates because they'd be more worried about maximum employment than they are
price stability.
But again, that wage growth number, that, I think, was a little disturbing having a four-handle instead of a three, that might give the Fed some
pause. And I think, you know, we're, we're not going to get a rate cut next week. That's guaranteed. Probably not one in July as well. September is
still on the table, but the windows getting more narrow.
CHATTERLEY: Yes. And what do we hear from the Fed next week? Data dependency. We have 10 seconds, Paul.
LA MONICA: Yes, the Fed is clearly going to stay data dependent. Jerome Powell will try not to tip his hand. But obviously, everyone is going to be
overanalyzing what he says and what the -- you know, the statement looks like if there are any meaningful changes in the language.
CHATTERLEY: Yes, I'm all for overanalyzing, smart over analysis, of course, but we'll keep watching. Paul La Monica, have a great weekend.
Thank you so much for joining us.
LA MONICA: You too. Thank you.
CHATTERLEY: Now, Japan's birth rate has been falling for years. Well, now Tokyo's government is looking to help by playing cupid. It's launching a
dating app using A.I. to match potential lovebirds. No flings here though. The service's website says users must have a "desire to be married."
Japan's fertility rate is at a record low and the nation has tried a number of programs to drive it back up. I'm not sure I'm old enough for this
segment. Hanako Montgomery has more from Tokyo.
(BEGIN VIDEOTAPE)
HANAKO MONTGOMERY, CNN CORRESPONDENT (voice-over): Running towards her future, Tomomi Bitoh made the decision to freeze her eggs in an effort to
achieve her goals.
TOMOMI BITOH, JAPANESE MARATHON RUNNER (through translator): I have this big dream of becoming number one in the world, and I want to achieve that
first. I don't think that's something I can do 10 or 20 years from now after having a child. It's now or never.
MONTGOMERY (voice-over): The 33-year-old Japanese marathon runner is working hard to be number one in the world's toughest marathon. Bitoh is
one of a growing number of Japanese women choosing to freeze their eggs for future planning.
Japan's birth rate hit an all-time low in 2023, according to the country's health ministry data released this week.
In 2023, the average number of babies born fell for an eighth consecutive year, and government officials warn Japan's youth population will rapidly
shrink in the coming years. If the trend continues, this could lead to a shrinking workforce, with not enough young people to fill the gaps.
FUMIO KISHIDA, JAPANESE PRIME MINISTER (through translator): If this trend continues, Japan's socio economy will contract and it will become difficult
to maintain our Social Security System and our local communities. The six or seven years we have from now until we enter the 2030s will be our last
chance.
MONTGOMERY (voice-over): Government officials have announced various programs to tackle this issue. Japan's parliament enacted a law to expand
monthly child care allowances and parental leave policies. The Tokyo government offers to subsidize women aged 18 to 39 up to 200,000 yen to
freeze their eggs for future pregnancies. City officials also plan to launch a dating app, encouraging singles who want to get married to find
each other.
[18:15:00]
Some contributing factors behind the low birth rates include the country's high cost of living, lack of childcare support, and changing attitudes
towards marriage and family. The country's number of marriages has declined in the past couple of years, and the rate of divorce has increased.
BITOH (through translator): It costs a lot of money to raise children, and if there was more support for that, I think people would be more optimistic
when considering raising children.
MONTGOMERY (voice-over): Bitoh shared her experience with egg freezing on social media, hoping more women will have access to this option.
BITOH (through translator): It's reassuring to know that I have a choice and have the possibility to get pregnant when I want to.
Hanako Montgomery, CNN, Tokyo.
(END VIDEOTAPE)
CHATTERLEY: It's also a make-or-break moment for millions of students in China. The Chinese media calling it the world's toughest college entrance
exam. And this year, a record 13.4 million students registered for the test. Students cram for years to prepare for it so that they can get into
the country's top universities. It's an out biting quiz of subjects like literature, math, physics and history that takes two days. But one parent
says it's also a rite of passage in China.
(BEGIN VIDEO CLIP)
ZHI HAIHONG, MOTHER OF STUDENT (through translator): I think this is a necessary process of growing up. Every one of us has been through this.
It's also a method for the country to select talented people. Only after undergoing pressure can one's mental tolerance increase. Then you'll be
able to withstand these pressures in the future when working in society.
(END VIDEO CLIP)
CHATTERLEY: Now, note that beautiful dress there. Students aren't the only nervous ones. Parents often do wear red. It's a symbol of joy, vitality,
success, and good fortune. It's the luckiest color in Chinese culture as they anxiously wait for their children to finish the exam. Fingers crossed
for all of the entrants.
Now, straight ahead, your latest weather and sport. Plus, a purr-fect storm for Roaring Kitty and the stock he just can't quit, GameStop. The meme
stock maven saying on his first live stream in years that he remains a GameStop bull even if shares tumble on weak results. Does Roaring Kitty
still have a tiger in his tank? Someone should take that tiger by the tail. We'll discuss.
And wheels up for Archer Aviation. The electric air taxi company says all systems are almost go to begin commercial operations. Why EVs will soon
make room for E.T.'s, coming up. We'll explain.
(COMMERCIAL BREAK)
[18:20:00]
CHATTERLEY: Welcome back to FIRST MOVE and TGIF to all our First Movers in the United States, U.K., and across Latin America. And to everyone in Asia,
we hope you're having a wonderful Saturday morning.
Topping today's "Moves," robust U.S. employment leads to no bullish enjoyment on Wall Street. U.S. stocks finishing lower in a volatile session
as investors reacted to that stronger than expected U.S. jobs report. We higher amid diminished hopes for Fed rate cuts. They were pushed right
back. One cut now priced by December.
The S&P, however, still posting a winning week and still trading near record highs. Shares of A.I. chip giant NVIDIA finishing Friday's session
pretty much unchanged after executing its 10 for 1 stock split. Trading on the split value price begins on Monday.
And Apple shares finishing more than 1 percent higher as investors await new details of its A.I. strategy. That comes on Monday. Apple expected to
announce new A.I. features at its Worldwide Developers Conference.
Now, Roaring Kitty, to paraphrase a Katy Perry song, promised that we would hear him roar in his return to live streaming on Friday. The roar, however,
turned into more like a whimper, which shares in his most touted stock, GameStop tumbling throughout his broadcast and on the company's poor
earnings, which it reported earlier in the day.
The meme stock investor whose real name is Keith Gill appeared wearing a sling and fake bandages on his head and apparent nod to the rough day of
trade. Many of his hundreds of thousands of viewers wondered how he was holding up.
(BEGIN VIDEO CLIP)
KEITH GILL AKA "ROARING KITTY," MEME STOCK INVESTOR: Am I OK? Oh, that would be -- am I OK? I don't know. I will say, I'm probably not. I'm
probably not. I mean, I'm clearly cuckoo, you know? Clearly, right? I'm off. That should be apparent now.
(END VIDEO CLIP)
CHATTERLEY: Roaring Kitty licking his wounds, apparently with GameStop shares finishing the session down almost 40 percent. But context, as
always, is key. The stock is still up 38 percent since he first returned to social media with this post on X last month. And then the meme mania that
we saw back in 2021 began once more.
Clare Duffy joins us now. Actually, his YouTube account description, as you and I were discussing earlier on "Quest Means Business," is for educational
and entertainment purposes only and does not provide investment advice. I think the smartest thing perhaps he said during this broadcast was that
he's cuckoo, which we just heard there.
CLARE DUFFY, CNN BUSINESS WRITER: Yes, Julia, clearly cuckoo. I mean, that really does not only sort of describe this livestream that we saw today,
but also this whole revived meme stock frenzy. The whole thing felt very unserious. You see he shows up in sunglasses, a fake bandage on his head,
he's drinking a beer.
At some point somebody asked him in the comments whether he had a lawyer with him in the room. And he said, no, but I probably should have. You
know, he talked a little bit. He tried to explain his thesis on GameStop, but he said it was based on a feeling I have. He said the foundation of
this feeling is the long-time outlook of a company like this, the prospect that it could work out very well in the long-term. But in the short-term,
things aren't going so well for him.
As you see there, the stock, end of the day, down about 40 percent wiping millions of dollars in value off of his holdings in this company. And, you
know, I think it's hard because on one hand, you want to laugh, you know, at the end of the live stream, he chugs a beer and he says, cheers. But
this is no longer just about Gill. There is the potential for serious harm to lots of people who might be inspired by him. Even if he says that his
videos are just for educational purposes, people could be losing real money here if they bought when the stock was up and now down 40 percent at the
end of today, Julia.
CHATTERLEY: Yes, I mean, he was the -- at the forefront of the dumb money movie that was made about this, and he was seen as a defender of the small
guys, the little traders, and that's why they followed him, and he wouldn't back out of this stock. But he was arguing a fundamental thesis, a reason
for buying this stock, and funnily enough, just before he began broadcasting, the company themselves decided to bring forward their
earnings report. It was meant to be on Tuesday next week. They brought it forward because, hey, it was bad news again, and they had to sell stock and
didn't want to do it on a boost high due to this broadcast. It's very dodgy.
[18:25:00]
DUFFY: Yes, it is interesting timing. They may have been hoping that Keith Gill's broadcast was going to send shares higher again and potentially sort
of balance out the downer news of their earnings. The company lost, what was it, $32.3 million in the first quarter, which is a slightly narrower
loss than a year ago, but still not great results. Sales were down from a year ago.
And so, maybe they were hoping that he was going to boost shares, but that clearly hasn't happened here. And it's interesting, you know, Gill talks
about he's a fan of GameStop CEO Ryan Cohen. He believes in what the CEO is doing with this company as he tries to turn things around, but the
volatility that Keith Gill's posts and this live stream are creating for this company may actually be making things more difficult for that
leadership team as they try to turn this company around.
CHATTERLEY: Yes. And buyers, unfortunately, the company is selling into your enthusiasm and people like Keith can do the same too. Buyer beware.
Clare Duffy, thank you for that.
Now, from hot stocks to hot shocks, more scorching temperatures are expected next week, though parts of the Western United States are cooling
off just a bit in time for the weekend. For more on this, we're joined by Chad Myers. How much relief Some of these areas going to get, Chad? And
happy Friday.
CHAD MYERS, CNN METEOROLOGIST: Happy Friday. Well, you know, for parts of California, pretty good, dropping down like 10 degrees Fahrenheit, you
know, 3.5 degrees or four degrees Celsius.
So -- but there's still some very hot parts of the world. One in the southwest part of the U.S. Not in the northeast where it's nice and cool,
really. I mean, certainly close to normal, but it's the heat out west. 110 degrees again for today in Phoenix. You know, I mean, that's 43.3 Celsius.
So, yes, still very, very warm. But cool down here for Sacramento, back to at least normal. That all ends by the beginning of next week where you're
back up to 100 degrees again.
Another place that's hot, yes, it'll be hotter in the summer, but this is kind of preseason hot, parts of Europe, well above normal by about 10
degrees Celsius here. Even from Florence gets all the way to 32. That heat moves a little bit farther to the east. And let me tell you, 36 in
Bucharest at this time of year is hot. That's 10 degrees Celsius above where you should be.
Now, we took a look at this yesterday, took a look at the rain potential in parts of China, especially the southern part of China, Hong Kong and north
of there, you kind of get the idea. There will be areas over the next few days that will get six inches, 150 millimeters of rainfall.
Someplace that would like some rain, Beijing. Not going to happen here for a while. Look at Tuesday all the way up to 37, really making a run at 98 or
99 degrees Fahrenheit. So, yes, hot in some places, cool in the other. But when it's hot, man, it's been going up, Julia.
CHATTERLEY: Wow. Those students that are taking those two days exams going to be sweltering in that heat. Let's hope there's air con. Good luck again
to them. Chad, have a great weekend. Thank you.
MYERS: You too. You bet.
CHATTERLEY: Chad Myers. All right. We'll be right back. Stay with CNN.
(COMMERCIAL BREAK)
[18:30:00]
CHATTERLEY: Welcome back to FIRST MOVE with a look at more of the international headlines this hour. The prosecution rests in the Hunter
Biden federal gun trial. Today, the defense called his daughter, Naomi Biden, to the stand. Naomi testified about her pride in seeing her father
in rehab in 2018 and that he did not do drugs in front of her. Defense attorneys say they won't call any more witnesses, but have until Monday to
decide whether Hunter Biden will testify.
Denmark's prime minister was attacked by a man in one of Copenhagen's public squares. Her office saying the man was then arrested. Mette
Frederiksen leads Denmark's Socialist Democratic Party. It's not clear yet if she was hurt in the assault. The attack comes just weeks after the
Slovakian prime minister was shot and wounded.
A Russian tourist train resuming services to North Korea for the first time in four years. The Russian customs service says the train departed on
Thursday with more than 40 passengers. The cross-border train had previously been suspended by North Korea due to the coronavirus pandemic.
And Cuba says a convoy of Russian naval ships will dock in Havana next week. Among them, a nuclear-powered submarine, as well as the frigate
Gorshkov seen here during a trip to Cuba in 2019. Russian naval forces stop in Cuba fairly regularly, but this visit appears to be the largest in
years. Moscow has yet to confirm the visit.
Meanwhile, the U.S. is looking to build its own relationship with Cuba. Cuban businesses and owners that can now open bank accounts in the U.S. and
access online banking. The policy change will allow entrepreneurs to import food, equipment and other goods. That could be a big boost to about 11,000
private businesses there.
Another benefit, it will also make it easier for Cubans living abroad to send money to Patrick Oppmann joins us now from Havana. Patrick, this feels
like a huge shift. I guess the caveat is if the government changes in November, this may change too. So, how eager are businesses to get moving
on this?
PATRICK OPPMANN, CNN CORRESPONDENT: Oh, very eager, Julia. And as you said, it's a badly needed boost. You have to think that for the current
entrepreneurs in Cuba, this is the first generation of entrepreneurs since Fidel Castro's revolution were -- essentially capitalism, private
enterprise were outlawed for more than 40 years.
So, these business people, they have a lot of grit. They have a lot of patience, a lot of guts. And now, finally, they're getting a helping hand
from Washington.
(BEGIN VIDEOTAPE)
OPPMANN (voice-over): This small store in Old Havana called Dador, or Giver, produces its own clothing line and is a must visit on just about
every Cuba insiders list. As with many other privately owned businesses on this island, for visitors to Dador, it's cash only.
U.S. economic sanctions mean communist run Cuba is off limits to the U.S. financial system, which for Cuban entrepreneurs usually means most banks,
even non-U.S. banks don't want their money. But changes announced by the Biden administration in late May are giving Cuba's scrappy business
pioneers cautious hope.
LAUREN FAJARDO, CUBAN ENTREPRENEUR: A lot of the Cuban businesses are very much dependent on foreigners coming to Cuba. So, having access to credit
cards and being able to do those transactions will be very positive. And just like anywhere in the world now, people don't really travel with cash
anymore.
OPPMANN (voice-over): While the U.S. economic embargo remains very much in place, the Biden administration is allowing Cuban entrepreneurs to open
bank accounts in the U.S. and access online banking.
[18:35:00]
As the island transitions, however slowly, from a centralized Soviet style bureaucracy to an economy that permits greater entrepreneurial freedoms,
there are more opportunities available.
ONIEL DIAZ CASTELLANOS, CUBAN BUSINESS CONSULTANT: Food, beverages, even cars. Cuba imported from the United States last year $300 million of
dollars in goods. So, something is happening. It's better to be first right now.
OPPMANN (voice-over): Still, it's not clear how many U.S. banks, if any, will take advantage of the change in policy, which the Biden administration
previewed in 2023.
OPPMANN: So far, U.S. government officials tell me they're not aware of any U.S. banks willing to do business with Cuban entrepreneurs. Part of the
problem could be something called over compliance. Even when it's legal, U.S. financial institutions would have nothing to do with Cuba. The risks
simply outweigh any potential rewards.
OPPMANN (voice-over): For entrepreneurs like those at Dador, the new relaxed restrictions could make it easier for them to buy materials from
the U.S., even sell their clothes to customers abroad.
FAJARDO: I mean, that's part of the Cuban resilience. That's who we are. That's -- I think that's actually part of our identity now, always thinking
outside the box because we've always had so many challenges and so many limitations.
OPPMANN (voice-over): Cubans deal with endless restrictions placed on them from outside and within. However big or small the opportunity they are
given though, Cuba's entrepreneurs will make the most of it.
(END VIDEOTAPE)
OPPMANN (on camera): And, Julia, amazingly, about a third of the workforce, Cuban economists estimate, is now comprised of these employees
of small businesses, privately owned businesses, that is a monumental change in the years.
I've been living in Cuba, I'm covering Cuba, something that many of us really never thought we would see happen up until recently. This was a
communist state where everyone worked for the government. So, you are seeing these kinds of changes. You are seeing wealth being created. When
you go into markets now, privately owned markets, small to be sure, the majority of the food that is coming to this country is coming in via those
markets.
So, critics say this is an economic lifeline to a government that has not been friendly to the United States over the years. But certainly, this is
the driver of the economy right now. It's the only bright spot, an otherwise almost bankrupt economy. And so, you know, as you mentioned, you
know, will this continue? It probably will come down to a U.S. election.
President Biden finally is engaging with Cuba, is lifting some restrictions that should supercharge these small businesses here, if they are given
enough time. But that will depend on what happens in November in the United States because Donald Trump, when he was president, felt that isolation was
the way to go with Cuba and he surely did not engage with these businesses and the critics of these businesses feel that is simply helping the Cuban
government to hold on.
CHATTERLEY: Yes. I mean, what an opportunity, an economic opportunity for the businesses and for workers there too, if they can open up international
markets in this way. Fingers crossed. Patrick Oppmann in Havana. Great report. Thank you. Fascinating. Good to have you with us.
All right. Coming up after the break, Archer Aviation aiming for a bullseye. The electric air taxi company is flying through the certification
process. We'll talk what's next to make services a reality.
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[18:40:00]
CHATTERLEY: Welcome back to FIRST MOVE. And on the up, you're looking at the takeoff of a flying taxi by Archer Aviation, which says it can ferry
passengers from places like New York's JFK Airport to Manhattan in just a matter of minutes.
The eVTOL aircraft called Midnight seats a pilot and four passengers, and it takes off like a helicopter and flies like a plane, as you're seeing on
pure electric power. The Midnight's range is nearly 160 kilometers with a top speed of around 240 kilometers per hour.
And now, the Federal Aviation Administration has granted Archer permission to operate an on-demand air taxi service, having already obtained its
airworthiness criteria. All that remains is the granting of type certification before flights can start. We'll explain that, don't worry.
And that's good news for partners like Stellantis, the U.S. Air Force, and crucially United Airlines.
United hopes to buy $1.5 billion worth of aircraft while Archer's latest quarterly results show it has $4 million dollars cash on hand. It sounds
like a strong start for the startup.
And Adam Goldstein is Archer's founder and CEO, and he joins us now. Adam, fantastic to have you back on the show. Congratulations, first and
foremost. My understanding of this is there's two effective tracks. There's the certification of the airline itself and then the certification of the
plane. So, explain what the FAA has granted you today and what you still need.
ADAM GOLDSTEIN, FOUNDER AND CEO, ARCHER AVIATION: Yes, well, thank you very much. And it's great to be back. So, this was a really exciting
milestone for the company. So, since I started the company, we've really been focused on these two tracks.
And so, you need to first, build the airline and get that certified so that you can fly passengers all over the country and really all over the world.
And we can do that with our partners like United Airlines. Then the second tract is to certify the aircraft itself. And that will enable mass
production of these vehicles. And so, we're in the final stages of the ladder. And what we announced was getting our operating certificate to
launch the airline with the FAA.
And so, this is a really big milestone. It will enable us to be able to start flying in cities like New York City or Los Angeles or San Francisco.
CHATTERLEY: OK. So, you say the latter one on now is what we're waiting for. Have you filed all the information and all the data? Is it simply a
case now of waiting for the FAA to come through or is there more work that has to be done? I guess I'm trying to get a sense of timing. I know you're
waiting on them, but have you done all the work on your side?
GOLDSTEIN: Yes. So, we're in the process of going through the testing phase with the FAA. So, we've set up all the criteria, and we've filed all
the paperwork, and now we're going through and testing all that.
So, first, you start testing all your subsystems, and you prove all the systems themselves work, and then you put them in the aircraft, and you
start testing the aircraft itself. So, we're in that final phase with the FAA going through that, and our hope is to get through it as soon as
possible.
CHATTERLEY: I mean, the initial target I remember was 2025. Is that still the target?
GOLDSTEIN: Yes, that's still the target. So, what's really been amazing as there has been, you know, a lot of excitement all over the world for this
product. And so, we've seen a lot of international markets also really lean into. And so, the UAE has been especially excited about this. And so, we've
announced a lot of partnerships all over the world, but specifically in Abu Dhabi and Dubai, there's been a lot of really countrywide level
organization to really help launch this entire network. And that could end up being one of the early launch cities, launch markets in the world.
CHATTERLEY: Interesting. So, watch this space. OK. So, let's assume that the regulation is on track and we're looking at 2025, whether that's in the
United States or, to your point, in the UAE, what about manufacturing these things?
Because I mentioned the cash that you have on hand for a reason. We know this is an expensive business. How many planes do you have the capabilities
of manufacturing in 2025 at this stage based on your plans? I know we've got California and you've got Georgia. What about even manufacturing in in
the UAE or in the Middle East or even Europe potentially too?
[18:45:00]
GOLDSTEIN: So, the good news is that we took a capital light approach to building the manufacturing process. So, the first thing we did was partner
with a lot of the tier one aerospace suppliers. So, companies like Garmin or Honeywell or Saffron. So, groups that have spent a long time and a lot
of money developing a lot of the different subsystems.
The next thing we did was partner with Stellantis, which is one of the largest auto OEMs in the world. They make Jeep, Ram, Maserati. So, you
know, millions of cars per year. We've worked together with Stellantis help stand up our manufacturing plant in Georgia. That plant will come online
this year and has the capabilities of manufacturing up to 650 planes per year. And so, there's a lot of potential here to get going.
And so, you know, when you put that all together, we're really looking at the opportunity to start scaling this industry here, really in the next
year, but also as we expand out into the later parts of the decade.
CHATTERLEY: OK. I think we should also take a step back for viewers that aren't familiar with what you're doing and just explain a little bit about
what the vehicle comprises, the differences between this and a helicopter, for example, and what you with some of the big-name partners that you're
talking about here envisage the cost of these flights will be.
What is going to be the comparison? You're clearly going to save people time you hope getting them to these places but what about the cost
differential?
GOLDSTEIN: So, the reason why everybody's excited about these aircraft is that they are really structurally better vehicles than helicopters. And
they're structurally better across three main categories, and that's safety, noise, and cost. And so, this is an aircraft that has the ability
to be really scaled out to become ultimately a mass form of transportation.
And so, everybody, I think, universally agrees they would prefer to get to where they're going faster and not use up all their time just sitting in
traffic. I think we all can agree on that. And so, if that service can be offered to the masses instead of just the very select few that take
helicopters today, that would be really pretty incredible.
But because these vehicles are electric, they also have a much simpler form. And so, these vehicles require less maintenance and they can fly a
lot more than helicopters can today. So, we can drive the price down and offer them something that's comparable to ride share, even from the very
beginning and drive that down even further over time, ultimately, with the goal of being below car ownership.
CHATTERLEY: Wow. I mean, the greater accessibility point, I think, is a vital one too. What about charging, though, Adam? I think if we look at the
example of electric vehicles, part of the reticence, and still is, is building out the infrastructure of the charging facilities. How do you
envisage that working?
GOLDSTEIN: So, we have great partners on charging. So, one of our partners is actually another one of the eVTOL companies called BETA. And so, they've
been building charging networks all over the country and soon to be all over the world. So, charging is actually pretty similar to the charging
we've seen on the ground with the EV. So, similar types of charging rates and similar types of charging technologies.
So, we have leveraged a lot of what the automotives have put in place in our existing powertrain from the batteries and electric engines, and we
converted that over to a vehicle that can be flown. And so, that will enable us to really leverage and use a lot of the existing EV technology
charging infrastructure that's out there.
CHATTERLEY: Why Midnight, by the way? Why is it called Midnight?
GOLDSTEIN: Well, that's a great question. My daughter seems to think that's something to do with Taylor Swift, Archer, Midnight. There's a lot
of crossover there. But really, I think it's a cool name.
CHATTERLEY: It's just that it's cool. Oh, I think I prefer your daughter's answer. We'll go with Taylor Swift. Adam, looking forward to hearing from
you again and when this comes through. And I just want to raise my hand and offer to do a test flight, whatever. I'm very excited about this. I know
it's quieter as well, which is a key point compared to helicopters to which is important. Adam, great to chat to you. Thank you so much and have a
great weekend.
GOLDSTEIN: Thanks so much.
CHATTERLEY: Founder and CEO of Archer Aviation there.
GOLDSTEIN: Good to see you.
CHATTERLEY: OK. If you've missed any of our interviews today, they'll be on my X and Instagram pages. You can search for @jchatterleyCNN.
And while we're talking about flying machines, here's a viral stunt, which got one man into a lot of trouble with the law. A YouTuber known as Suk Min
Choi, who has around 2 million followers across social media, has been charged with putting an explosive device on an aircraft. Yes, you heard me
right.
This video he allegedly posted called Destroying a Lamborghini with fireworks went viral. Federal prosecutors claim Choi directed the video and
filmed it in June of last year in California without a permit. Also, by the way, fireworks are apparently illegal in California. Wow.
All right. Coming up on FIRST MOVE -- poor Lamborghini too -- a showdown on red clay, the third Thrilling results of Friday's dramatic semifinals at
the French Open, next.
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[18:50:00]
CHATTERLEY: Welcome back to FIRST MOVE. Spain's Carlos Alcaraz and Germany's Alexander Zverev reaching the men's final of the French Open.
Alcaraz is now looking for his third major title and he's only 21 years old. It will be the first men's title match at the French Open in two
decades that doesn't include Roger Federer, Rafael Nadal, or Novak Djokovic.
And Don Riddell joins me now. Djokovic was the favorite coming into this, wasn't he, Don? So, now, I've got no idea. I guess Alcaraz, judging by the
way he's played? What do we think?
DON RIDDELL, CNN WORLD SPORT: Yes, I mean, Alcaraz is absolutely amazing. So, much fun to watch. And when you look at what he's achieved already at
such a young age, he's got Wimbledon title, U.S. Open title under his belt. As you say, he's only 21. He could win three of the four Grand Slam titles
at such a ridiculously young age.
This was an amazing semifinal that he played in. He was up against Italy's Jannik Sinner, who is going to be the new world number one next week.
Sinner is the Australian Open champion. He's only 22. These two guys are the future of men's tennis and they are doing it right now. They are
already forming a pretty intense and entertaining rivalry. And they are a lot of fun to watch.
This one was another instant classic more than four hours, five sets. Alcaraz had to come from 2-1 down to win this match. And now, as we say,
he's going for a third different Grand Slam title.
He's going to be up against Germany's Alexander Zverev. He played in the second semifinal against Casper Ruud of Norway. And Zverev won this one
pretty handily in four sets. And this ends a real streak of disappointment and heartbreak for Zverev. He's actually lost the last three semifinals
here at Roland Garros. In fact, two years ago, he left the court in a wheelchair having sustained a very serious ankle injury against Rafael
Nadal.
This result means that Casper Ruud will not be playing in what would have been his third French open final. He's been beaten. And so, now, we are
looking forward on Sunday to Carlos Alcaraz and Alexander Zverev.
On the women's side, Julia, you were saying kind of not quite sure who's going to win on the men's side. It looks very straightforward on the
women's side because Iga Swiatek has proven this season and already in her young career that she is just almost impossible to beat. So, she's into the
final. She's going to be playing against somebody that a lot of people probably hadn't even heard of until recently, that's Italy's Jasmine
Paolini.
Paolini is going to be in her first major final. Swiatek is going for a third consecutive French Open title, what would be a fourth in five years
if she can pull it off. And what she's achieving on the clay at Roland Garros is very, very similar to what Rafael Nadal achieved at the same age
when he was younger.
So, people have been asking Swiatek, is she ready to declare herself as the queen of clay? Nadal was the king of clay. She says she's not there, but a
lot of people watching her and making those comparisons because she's just getting started and already, she's looking absolutely unbeatable.
[18:55:00]
CHATTERLEY: Yes, she's a titan. Come on, Jasmine. Give her a good run for her money at least.
RIDDELL: We'll see.
CHATTERLEY: Don Riddell, I can't wait to watch.
RIDDELL: All right.
CHATTERLEY: Thank you, sir. All right. And finally, on FIRST MOVE, a first prize pet. The winner of the 2024 Comedy Pet Photography Award goes to this
dog caught in a flap. Taken by Sarah Haskell, it shows her dog, Hector, trying to squeeze through a cat flap.
And, talking of which, this cat is in a tight squeeze. Oops. I actually prefer that one. That was a runner up. Animal lovers have been competing to
submit pictures of their furry friends, sometimes both together. These category winners and runners up were selected from 850 entries from around
the world. The event supports animal welfare charities and celebrates the joy our pets bring to humans.
Next year, I might submit this picture of Romeo in the cattery I called bored, helping me choose paint colors. That is mid yawn, which I have to
say he does frequently.
That just about wraps up the show. Thank you for joining us. Have a great weekend. And I'll see you Monday.
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[19:00:00]
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