Return to Transcripts main page
First Move with Julia Chatterley
World Central Kitchen Workers Killed In Israeli Strike; International Community Condemns Israeli Strike; Iran Promising To Retaliate; Xi And Biden Speak For First Time Since Historic Summit; Tesla Deliveries Disappoint; Tesla Shares Skid; Form Courtroom To Campaign Trail; Trump Campaigning In Key Swing States; Arm CEO On A.I. Boom; Arm's A.I. Moment; Basketball's Rising Superstar Caitlin Clark. Aired 6-7p ET
Aired April 02, 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]
CHAD MYERS, CNN METEOROLOGIST: I don't even know where to begin, but Blizzard warnings are in effect for parts of the Upper Midwest.
JAKE TAPPER, CNN INTERNATIONAL HOST: Yes, it is April, and that is snow. Chad Meyers, thank you so much. Join CNN for Monday's Eclipse Across
America.
We're on the air with special coverage.
JULIA CHATTERLEY, CNN INTERNATIONAL HOST: It's 6:00 a.m. in Shanghai, 9:00 a.m. in Sydney, and 6:00 p.m. here in New York. I'm Julia Chatterley. And
wherever you are in the wild, this is your "First Move."
And we're welcome to "First Move," as always, and here's today's need to know. Growing international outrage after seven World Central Kitchen aid
workers were killed by an Israeli airstrike in Gaza.
Tackling tensions, U.S. Presidents Biden and Chinese President Xi Jinping speak for the first time since November last year.
Tesla's wrong turn, car deliveries disappoint, and annual sales drop for the first time since the pandemic.
And firmly arm in arm with the biggest A.I. players in the world. The CEO of Arm Holdings will discuss chip competition, geopolitical tensions, and
what the A.I. future holds. That conversation and plenty more coming up.
But first, the International Community is condemning an Israeli strike that has killed at least seven workers from World Central Kitchen. The British
prime minister calling the situation in Gaza "increasingly intolerable." France, the UAE, and Cyprus are also speaking out. The White House says it
wants accountability.
(BEGIN VIDEO CLIP)
JOHN KIRBY, WHITE HOUSE NATIONAL SECURITY COMMUNICATIONS ADVISER: We were outraged to learn of an IDF strike that killed a number of civilian
humanitarian workers yesterday from the World Central Kitchen, which has been relentless in working to get food to those who are hungry in Gaza and,
quite frankly, around the world. We send our deepest condolences to their families and loved ones.
(END VIDEO CLIP)
AMANPOUR: The victims include people from the United Kingdom, Poland, Australia, a Palestinian and a dual American-Canadian citizen. Prime
Minister Benjamin Netanyahu of Israel called the strike unfortunate and unintentional.
The charity's founder, meanwhile, Chef Jose Andres, is now calling on the Israeli government to "stop this indiscriminate killing." World Central
Kitchen has now also paused its aid efforts, it's even debating its future there. Melissa Bell has more.
(BEGIN VIDEO CLIP)
ZOMI FRANKCOM, EMPLOYEE, WORLD CENTRAL KITCHEN: Hey, this is Zomi and Chef Olivier. We're at the Dinner (INAUDIBLE) Kitchen, and we've got the
(INAUDIBLE).
MELISSA BELL, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Smiling in one of her final moments, Zomi Frankcom, an Australian aid worker, one
of the seven World Central Kitchen employees killed by an Israeli airstrike as they delivered food to a warehouse in Central Gaza. A dual U.S.-Canada
citizen, U.K. nationals, a Polish man, and a Palestinian also amongst those killed.
The hum of war drones drowning out the sound of ambulance sirens as their bodies were brought to hospital after the strike, but too late.
All trying to bring relief to the more than one million Gazans the U.N. says are now facing famine, all now in body bags. The logo of the aid
organization, a reminder of the lengths the charity went to to protect its own.
Traveling as they were, according to the World Central Kitchen, through a deconflicted zone whilst coordinating their movements with the IDF. The
charity, which was central in getting around the blockade by getting the first maritime shipment of aid into Gaza, now saying that it needs to
assess its future in the Strip.
Israeli Prime Minister Benjamin Netanyahu acknowledged the tragic loss of what he described as innocent lives.
BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER (through translator): Unfortunately, in the last day, there was a tragic case of our forces
unintentionally hitting innocent people in the Gaza Strip. It happens in war. We will investigate it right to the end.
BELL (voice-over): So far, at least 196 aid workers have lost their lives in the occupied territories since the start of the war, according to the
U.N. agency tasked with relief there.
The World Central Kitchen workers just the latest. Among them, the Palestinian driver and translator, Saif Issam Abu-Taha, his loved ones
forced to say goodbye to a man who died trying to help others to survive.
Melissa Bell, CNN, Jerusalem.
[18:05:00]
CHATTERLEY: And meanwhile, Iran promising to retaliate following Monday's attack on a consulate building in Damascus where at least seven officials
were killed. Here's the Iranian ambassador to Syria.
(BEGIN VIDEO CLIP)
HOSSEIN AKBARI, IRANIAN AMBASSADOR TO SYRIA (through translator): There is of course an international responsibility towards this crime and naturally,
there will be an Iranian response. We are waiting for international organizations to do their duty. We asked the United Nations and the
Security Council to hold a meeting tonight in the Security Council, and we are waiting for all member countries to do their duties towards this crime
during this meeting.
(END VIDEO CLIP)
CHATTERLEY: And hours ago, the Pentagon confirmed it believes Israel did carry out the strike. It also said it was given no prior warning of the
attack. Ben Wedeman has more on this story from Beirut for us.
Ben, what would Iran consider a proportional and appropriate response in this vein that doesn't take what's always been a sort of shadow war fought
via proxies and allow it to spill into the open at a very delicate moment, another delicate moment?
BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: I think that's the question that many people are asking. The feeling is that the Israelis are
sort of going further and deeper in terms of striking their enemies in Lebanon, for instance, in Syria as well.
Keep in mind, for instance, in the early hours of this Friday, there was an Israeli strike. There's no question about that, really, despite their
denial or their hesitance to claim responsibility on a facility outside of Aleppo, Northern Syria, that left nearly 40 soldiers dead, some of them
Hezbollah fighters.
What we're seeing is that the Israelis are increasingly striking targets, high-profile targets like these senior IRGC officials in Damascus. And of
course, the Iranians have vowed to respond. The question is, how are they going to do it?
Until now, what they have done is work through their various allied militias. Hezbollah here in Lebanon, militias in Iraq and in Syria, the
Houthis in Yemen, they have always been hesitant to directly strike either the Israelis or of course the Americans who the Iranians and many in the
region consider to be partners of the Israelis.
But the thing is that, at this point, Iran's profile, its deterrence -- deterrent power is on the line and if it does not respond forcefully and
strongly to this Israeli strike it will be seen as weak by both friend and foe.
On the other hand, if it does strike Israel somehow directly or the United States, this could, indeed, ignite a wider regional war. Julia.
CHATTERLEY: Clearly, Ben, and that's the danger that all sides, including Israeli allies, are facing at this moment. Can you just frame that in light
of what we have seen in the past 24 hours, with the British prime minister calling the situation in Gaza increasingly intolerable, the outrage that's
being expressed in various quarters by the deaths of those aid workers in Gaza? It just further ratchets up the pressure on Israel to agree to some
kind of temporary pause, if only because this further suspends the ability to provide aid to Palestinians at this moment. The pressure only builds.
WEDEMAN: Well, the pressure, in terms of words, is building, but to all of these countries, the United States, France, Britain, Germany, have the
power to have a more immediate impact to stop the war in Gaza by withholding aid to Israel.
But until now, what we've seen is they've expressed concern about famine in Gaza. They've expressed concern about the inability to get aid into Gaza,
but they're actually not doing anything to change the course of Israel's offensive in Gaza, which has now left at least 33,000 people dead, widely
believed 70 percent of them are women and children.
Until they stop talking about concern and actually do something to stop Israel from conducting this war, it's going to go on and on. And it doesn't
appear that there is the political will to actually do that at the moment. Julia.
CHATTERLEY: Yes, it's -- they're not mutually exclusive. War, the hostage crisis, the humanitarian crisis. But as far as allies and foes alike,
they're seemingly being treated as such, at least for now. One wonders what it would take. Ben Wedeman in Beirut there for us, thank you.
[18:10:00]
Now, the situation in the Middle East, just one agenda item for discussion during a phone call between the presidents of the United States and China
Tuesday.
It's the first time Joe Biden and Xi Jinping have spoken since their historic in-person summit in the United States last November. The war in
Ukraine, North Korea, technology, trade tensions, and TikTok were apparently also mentioned.
Our Senior White House Correspondent Kayla Tausche joins us now. Kayla, I think above everything the importance is, is this simply that this phone
call happened, it was clearly an extensive and wide-ranging phone call and it's the first point of contact that they've had since the physical meeting
in November of last year.
KAYLA TAUSCHE, CNN SENIOR WHITE HOUSE CORRESPONDENT: It is, Julia. There are quite a few high-stakes topics discussed in that more than 90-minute
phone conversation between the two leaders that the White House described as candid and constructive.
Among some of those topics, you mentioned a few of them, tensions over Taiwan, the South China Sea, North Korea's nuclear program, as well as
China's support of Russia's war in Ukraine, which the U.S. expressed continued displeasure toward. There was also quite a bit of discussion of
economic competition in the White House's telling of it.
They discussed China's unfair trade practices, and specifically the ownership structure of TikTok, where Congress in the U.S. is currently
weighing a law that would force TikTok -- or force the Chinese owner of TikTok to divest the company to new ownership. That still remains to be
seen, but the White House has lent its support behind that bill so far.
The White House says that Biden wanted to hold this call simply to check in with President Xi after their summit in November, during which the two
leaders pledged to just pick up the phone and call each other much more often, so that there are not any misunderstandings between the leaders of
two of the most consequential nations in the world.
I asked NSC Spokesman John Kirby whether there was a particular catalyst. Why now? Why did this call need to happen today, rather than last week or
next week, for instance? And he said simply that enough progress had happened at the staff level, that it was time for them to check in.
We should note, though, Julia, that Secretary of the Treasury Janet Yellen is traveling to Beijing in the coming days. Secretary of State Antony
Blinken will be traveling China in coming weeks. And, as is customary, usually the president likes to get on the phone to telegraph what's going
to be discussed so that the meetings on ground are as constructive and productive as possible. Julia.
CHATTERLEY: Yes, I think it's a key point, the fact that treasury secretary will back in China, because she was there recently, I believe, as well,
back in China this week. It also follows, of course, some of the most high- profile CEOs and business leaders from America that were in China last week as well. And we heard about the meeting that they had with them -- with Xi
Jinping as well.
Do you think this is playing into it and it's helping on some level, at least, diffuse tensions or at least improve understanding between the two
nations?
TAUSCHE: Potentially, but it is just a matter of time, Julia, until the Biden administration comes out with its next slate of hawkish proposals
toward China. I mean, just last month the Biden administration opened up a new inquiry into electric vehicles that are manufactured in China, there's
an ongoing review of a wide-ranging tariff program that was put in place under President Trump.
And China continues to be a talking point on the 2024 campaign trail, which is just heating up. And so, while, yes, tensions may be diffused for now,
usually there is no shortage of policy proposal rollouts that intensify things behind the scenes, Julia.
CHATTERLEY: Yes, probably good to make the phone call now because it's only going to get tougher as we head towards the elections.
TAUSCHE: Yes.
CHATTERLEY: Yes. Kayla, great to have you. Thank you.
OK. Straight ahead, Tesla's Q1 deliveries hit the skids, a major problem for Elon Musk, or merely a bump in the road. We'll ask Tesla analyst and
bull Dan Ives.
Plus, the chip giant that's arm-in-arm with the world's biggest A.I. players, the CEO of Arm Holdings will be here to discuss the future of A.I.
and plenty more.
(COMMERCIAL BREAK)
[18:16:50]
CHATTERLEY: Welcome back to "First Move." And to all our viewers in the U.S., U.K., and Latin America, we hope you're having a terrific Tuesday
evening. And it's a wonderful Wednesday morning, of course, if you're just waking up with us in Asia.
And it's another day of April showers on Wall Street in today's "Money Move." Investors still trying to find their Q2 groove with stocks falling
sharply and bond yields also rising, that's happening as more investors question the Federal Reserve's rate cut path with a June cut looking less
and less likely due to strong economic data and of course stubborn inflation.
Several Fed officials, however, saying Tuesday that they still expect cuts sometime this year. Thank goodness for that or the markets would be
significantly lower.
Asia, however, finishing mostly higher, as you can see. Strong gains for the Hang Seng, up more than 2 percent Tuesday as traders returned from the
Easter holiday weekend. We'll see what Wednesday brings. Xiaomi is a big winner there, up almost 9 percent on reports that orders for its new
electric vehicle have been strong so far.
And a less electrifying story for EV giant Tesla. Elon Musk's company reporting its first drop in year-over-year sales since the pandemic. Tesla
delivered 387,000 vehicles in the first three months of the year. That was well below expectations, and all this sent Tesla shares down 5 percent near
in Tuesday's trade.
Just to give you some perspective, shares have fallen more than 30 percent year-to-date, making Tesla, in fact, one of the worst performing stocks on
the S&P 500.
The first quarter was a rough one for China's biggest EV maker, BYD e2. Its sales fell 40 percent compared to Q4, making Tesla once again the world's
largest EV maker. That context is crucial. Dan Ives is the managing director of Wedbush Securities.
And you always have a great phrase on these things. You're calling Tesla's new numbers a "train wreck, an unmitigated disaster." I think you called it
a train wreck into a brick wall quarter, in fact. Dan, this was pretty painful.
DAN IVES, MANAGING DIRECTOR, WEDBUSH SECURITIES: I mean, look, it was a horror show. In terms of 1Q, now, look, everyone was expecting to rip the
band-aid off type of quarter, but, Julia, much worse than expected. I mean, this is a code red situation going on with Musk and Tesla, especially in
China.
CHATTERLEY: Talk to me about China, because you've said that you think, or at least estimate, that sales there were down around, what, 3 percent year
over year?
IVES: Yes. I mean, we were expecting it was going to be up 2 percent, 3 percent year. And if you go back, we've continued to cut numbers. Look, the
problem is that competition increasing, you see EV demand that's softened, and it's a game of thrones price score.
And that's why, right now, you need a pilot on the plane. And Musk, we've seen the last few conference calls, no adult in the room. This is a fork in
the road period for Musk and Tesla. There's massive growth on the other side of this. But they need to get to this category five storm. And I think
today was a wakeup call.
CHATTERLEY: You've called it a seminal moment, because what we're seeing is price cuts to try and shift these products. We're seeing increasing
competition, but the price cuts are creating margin compression or at least pressure.
[18:20:00]
Dan, what is the solution here? How do they get this car back on the road?
IVES: Well first, you got to come out with the actual roadmap for the next, call it year and a half in terms of new product, top 30K car.
But also, it's like, put a line in the sand. Either cut prices massively, squeeze the competition and then put that strategy or hold serve. Don't cut
prices, demand's going to be where it is and ultimately, you least keep margins.
The problem for investors right now, Julia, is that you're playing a game of blindfolded dark. No strategy, that's the problem at a time, investors
need hand-holding.
CHATTERLEY: Do you think the product's good enough, Dan, just to hold fire now on prices and say, we are facing increasing competition, we've got the
best product? Because that's crucial too. If you're saying to customers, look, we're cutting prices, then next minute you come back and cut prices
again, they're going to hang on in there and wait for further cuts. There's going to be a reticence to buy. And I think that also surely plays into
this. The messaging matters.
IVES: No, not -- it's just psychology, right? I mean, if you -- going back to the days you buy a TV, two weeks later, 10 percent cheaper, look, it
comes down to 2 million vehicles they're going to deliver this year. They are the brand leader, but it goes back to, look how Cook and Apple got
through periods, challenging periods, they didn't cut prices.
So, I think it shows for Musk, this is probably the toughest time we've called four or five years for Tesla. They need to navigate through this to
get onto the other side. This was a Cinderella story the last few years, now turning to a horror show, at least in the near-term.
CHATTERLEY: What would you like to see him do? Do you have a view, Dan? I know you've said, look, I just want the game plan. I want to know what the
plan is. Do you have a view on what the best plan for Tesla would be? And I guess my follow to that is, we know that the stock is already down by a
third this year.
I mean, we often talk and laugh about how bullish you've been now for the long-term. And if we talk about the long-term too, is this a buying
opportunity? Do you give him the benefit of the doubt and assume that he will come up with a plan?
IVES: Yes. Look, we've been here before. I mean, you've talked about it for many years, right?
CHATTERLEY: Yes, we have.
IVES: Right. So, the point is, we are strong believers that this will just be another -- I won't call it bump in the road, but a challenging period.
Musk needs to commit to being CEO next three to five years, keeping the A.I. initiatives within Tesla, give the strategy and price cut margins and
guidance. And I think then, at least, you have a roadmap for investors to get through this. But that's what needs to happen.
I also think a major buyback. You have $30 billion in cash, do a $5, $10 billion buyback announced, because that's what they need to do. But it goes
back to Jensen, Cook, Nadella, they've been through challenging periods, it got them through it. That's what Musk now needs to do, not just talk, talk,
walk the walk.
CHATTERLEY: Dr. Dan Ives giving his prescription for Tesla there. Always great to get your perspective.
IVES: Thank you.
CHATTERLEY: Managing director at Wedbush Securities. Thank you, sir.
Now, severe weather, ripping through the eastern half of the United States. A new tornado watch has been issued for parts of Tennessee, Kentucky,
Indiana, and Ohio. Forecasters are also warning people there of large hail and powerful wind gusts.
Chad Meyer joins us now. Chad, you were talking to us about this yesterday. Clearly, you need to expand upon it. Yes.
CHAD MYERS, CNN METEOROLOGIST: Yes. I mean, watches and warnings are significant in the United States. And we have over a thousand tornadoes on
the ground every year. That doesn't make them less dangerous.
If you don't know the terms, grab an avocado, a couple of peppers, some onions, and some salsa, and then you have a guacamole watch. Put them all
together and all of a sudden, you have a guacamole warning. You've made it, all the ingredients have come together and now, you have a tornado that's
on the ground. And that's what we talk about when we talk about the watch, big areas for a long time and then small areas for warnings and only 15 or
sometimes 20 minutes because that's all these tornadoes are on the ground for, but there has been damage.
There will be more damage tonight, and these storms will go all the way through the evening and the night. And that's the problem, Julia. Some of
these storms will be on the ground after people have gone to sleep. And so, if you don't get the warning, you don't hear the alarm, you don't wake up,
you don't get to your safe place, that's how we lose people. That's how the fatalities happen, especially in the south, southern part of the US where
most of these things happen after dark.
Yes, we have a few tornadoes on the ground right now. Without a doubt. One just moved over the interstate there, south of Jellico in parts of
Kentucky. But this is going to continue through the evening into the overnight hours. There may even be some thunderstorms across the East Coast
into bigger cities here across the East Coast in the overnight.
[18:25:00]
And yes, up here, that's not the wrong color, that is snow across parts of New England, all the way back to Wisconsin. And it's the warm air, we
talked about it yesterday, trying to say, hey, it's springtime, let me north. And the cold air is saying, not so fast. I still want to be in
charge. And that's the clash of the warm and cold, like shaking vinegar and oil, they don't want to mix, and that's why we get tornadoes here in the
U.S.
CHATTERLEY: Yes. Chad Myers, great to get your perspective. Thank you for joining us.
All right. Coming up now on "First Move." From courtroom trials and tribulations to campaign trails. Former President Donald Trump stumping in
key swing states. We're live at one of his campaign events next.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to "First Move" with a look at more of the international headlines this hour.
Turkish state media says a fire in Istanbul has killed at least 29 people. The blaze started during daytime repair work at a nightclub with officials
saying the victims were all construction workers. Local authorities have detained eight people in connection with the fire, including the club's
business manager, accountant, and partners.
A 12-year-old in Finland allegedly killed one of his classmates and injured two others during a school shooting on Tuesday. State media says the
suspect used a handgun license to a close relative. The child has been charged with murder and attempted murder. Police say they have no details
about the motive.
Ukrainian officials say a Russian missile attack on the City of Dnipro wounded at least 18 people including five children. President Vladimir
Zelenskyy says a college and a kindergarten were damaged. The attack comes as additional U.S. aid remains tied up in the House of Representatives
where Republicans are divided over whether to continue funding Ukraine.
[18:30:00]
And after weeks away from rallies, Donald Trump is now cramming into his campaigning in key swing states, Michigan and Wisconsin, which of course he
won in the presidential election back in 2016, but then lost in 2020.
He's also been a fought -- fraught a few weeks for the former president, whose legal woes continue to plague the campaign just after paying the $175
million bond in his civil fraud case, he got an expanded gag order imposed in the hush money trial.
And now, we're learning his legal team is once again trying to get the judge in that case to recuse himself due to his daughter's political ties.
Kristen Holmes is at that campaign in Green Bay, Wisconsin and he joins us now. And, Kristen, I think and I believe, the former president's actually
speaking, so you're going to have to compete with him in terms of volume with that speaker.
What message can he give today in 2024 that manages and achieves the same result he got in 2016 and avoids the loss that he saw in 2020?
KRISTEN HOLMES, CNN U.S. NATIONAL CORRESPONDENT: Well, right now, they believe that messaging is all about immigration. Remember immigration, his
anti-immigration rhetoric carried him to the White House in 2016. It did not do anything in 2020. He didn't really campaign on that.
Now, in 2024, it is back on the forefront. It is an issue that most voters ranked as their top issue. And Donald Trump is strong when it comes to this
issue. So, what you are hearing him do now is really double down on his rhetoric, linking immigrants and migrants to violent crime.
I want to be very clear here. We have reported this over and over again. The data shows that migrants or immigrants are much less likely to commit
crimes than citizens. However, there have been a number of high-profile recent cases that Donald Trump has really latched onto, stoking fear,
saying he is the only person who can keep America safe.
The other thing to point out here is just how critical the States of Wisconsin and Michigan are. Both the Biden campaign and the Trump campaign
believe that these two states are necessary to make it back to the White House.
One of the things that Donald Trump's team believes happened in 2016 here in Wisconsin, where he lost by a very small margin in 2020, was that after
he had all the support in 2020, there was just fatigue after four years of Donald in office.
They are trying to reenergize his base, reenergize these Republicans who decided not to show up in 2020, and they believe that they can do that with
this focus messaging on immigration and on the economy, but really tying all of it back to immigration because they have seen that in various
states, particularly in the primaries in New Hampshire, for example, it helps him win in elections, or he likes to help to win those contests when
he does focus so heavily on immigration.
CHATTERLEY: Yes. Good job Kristen. Thank you so much for that. We'll leave you and the former president speaking live there from Green Bay in
Wisconsin.
All right. We're going to take a break here on "First Move." But coming up, you may not know it, but there's a strong chance that your phone, TV, or
car contains technology from semiconductor and software firm Arm Holdings.
Arm designed some of the world's most advanced chips which are also in growing demand to power the A.I. wave. The CEO of Arm Holdings, up next.
(COMMERCIAL BREAK)
[18:35:52]
CHATTERLEY: Welcome back to "First Move." Chip giant Arm Holdings may not create as much market buzz as artificial intelligence phenomenon Nvidia,
but perhaps it should. Arm says 70 percent of the world's population uses its products. Its chip technology is included in most smartphones, cars,
across the internet of things, and data centers. And of course, it's increasingly being used to power and help A.I.
Now, Arm is not a chip maker. It makes money by licensing its chip designs and technology to clients and partners like Google, Microsoft, Amazon, and
Nvidia, just to name a few.
And the licensing fees and payments from tech giants adds up. Arm's recorded revenues of almost $3 billion last year. Now, a quarter of Arm
sales also come from China through an entity -- or an independent entity called Arm China, which is also one of the company's largest customers.
Arm is based in the U.K. It recently listed in the United States, though its biggest investor is Japan's SoftBank. And its stock is up more than 80
percent so far this year on a par, in fact, with Nvidia's year-to-date gains, as you can see on this chart.
Its shares also spiked more than 30 percent just two months ago after the firm raised its sales and profit guidance. And I'm very excited to say Arm
Holdings CEO Rene Haas joins us now. Rene, fantastic to have you on the show.
I hope we did a relatively decent job of trying to simplify what your business is, but I think it's crucial to point out that it's a very sector
diverse business among many things.
RENE HAAS, CEO, ARM HOLDINGS: Yes. No, thank you, Julia. You did a great job of explaining what it is that we do. And I think the heart of it is
that Arm technology is literally everywhere and it's probably impossible to find a use case or someone on earth who isn't using Arm technology in some
way, shape, or form.
CHATTERLEY: The beauty, I think, of what we're seeing today is that consumers in each of these markets, and I mentioned some of them,
smartphones, autos, the internet of things, whatever it is, data centers, are all demanding more tools, more apps, more capabilities, I think we'd
call it computer, you'd call it computer computing power. And then the adoption of A.I. just effectively puts that on steroids.
Can you just describe sort of the growth that you're seeing as a result of your involvement in the A.I. sphere in particular?
HAAS: Certainly. Well, so Arm has been around 30 plus years. And in those 30 plus years, nearly 300 billion chips in total have shipped with Arm
technology. So, as you've said, they are in smartphones, whether it's your iPhone or your Android phone, we're in Ford F-150s, we're in Teslas, we're
in PCs, we're in the data center. So, we've had huge growth over our 30 years because everything has become a computer and everything is more and
more intelligent.
But now, that AI, which on some level has been around for a number of years, has gone into a step function in terms of capabilities, we're seeing
unprecedented demand for computer across everything that we see, all the markets I mentioned.
And it's an amazing time because A.I. is going to unleash capabilities for society that we've never seen before. It's just amazing.
CHATTERLEY: So, in your 30-year history, this is truly something unprecedented?
HAAS: I personally believe so. You know, as someone who grew up with "Star Trek" in 2001, "A Space Odyssey," I never thought in my lifetime that we
would see computers that could think, have context, make judgments. But that's what we're about to see. And it's going to have just an amazing
amount of benefits for folks.
You know, one of the examples I like to talk about is healthcare. When you think about going to the doctor's office and you think about the questions
that are asked and the type of diagnosis it's done, a lot hasn't changed in 30, 40 years.
Going forward, doctors will have your health history, your DNA, context of what you ate that night, what you ate the week before, and be able to
prescribe and diagnose something that's very, very specific to you. And that's just a micro example, Julia. But I think across the board, A.I. is
going to unleash all of those type of opportunities for us.
[18:40:00]
CHATTERLEY: Yes, but I think it's important for people to understand how it affects them as an individual beyond, I think, what's the most obvious for
many people today, which is sort of ChatGPT and the excitement that's surrounded that. It's far more intrinsic, I think, to societal benefit
going forward. We'll talk about the downsides in a second.
You're partnered with just about every major player out there, Samsung, Apple, Qualcomm, Mercedes, Intel, Nvidia, and Taiwan Semiconductor is
another name. Some of these, they have perhaps deeper pockets, they have -- and could develop their own processors. Some of the technology that you
provide and license, particularly if they wanted to shore up the supply chains or increase their vertical integration.
Rene, what stops them doing that? What's so unique about what you're doing today?
HAAS: Yes, thank you. It's a question that I get asked a lot and it's one I really love to answer. Processors, which is what we do, is really hard, but
what's much harder than doing the processor is the software that runs on the processor.
So, when you think about iOS on your iPhone, Android on your smart Android device, the operating system in your car, windows running on a PC, all of
those pieces of software and the millions of applications have been written for them, they all run on Arm.
Years and years, decades and decades of time has been spent optimizing these applications to run on Arm. That is huge, huge work and huge, huge
investment that's just very, very hard to switch, which is why we have such a wide footprint across all the devices I mentioned.
It's really not so much about the processor, more about the processor ecosystem, particularly the software.
CHATTERLEY: And the architecture matters too. You mentioned in the beginning the number of chips that you've shipped. I saw 13 million plus
developer hours in the first decade for the V9, which is part of the sort of chip architecture, and what you're saying is providing and fostering a
better performance, better security, which is sort of a flagship product, I think, that you guys are now pushing.
Is it even possible for another developer to perhaps to catch up when we're talking about that many hours over that quantity of time?
HAAS: You know, I tend to look ahead rather than over my shoulder.
CHATTERLEY: Yes.
HAAS: I think it is going to be hard educated. But, you know, going forward, one of the things that I think really benefits Arm is not only
this broad software ecosystem but what we really all about is power efficiency, low power devices, running off batteries.
When you think about sustainability, when you think about the energy on the world's planet, you need the most power-efficient processors do those
workloads. Now, with the advent of A.I., the great news, as I mentioned, A.I. is going to unleash all kinds of capabilities, all kinds of new
experiences to enrich our lives.
On the other hand, the amount of power that's required to run these data centers or run these devices is going to be immense. So, power efficiency
is going to be extremely important relative to A.I. It happens to be an area that Arm is really good at. So, we're really excited about that
opportunity.
CHATTERLEY: Yes, efficiency, essential to the growth that we're at least hoping to see. Can I ask about the Chinese business as well? I mentioned
it's operated by a sort of independent entity. It was one of the things I think that came up in the prospectus when you were listing, and one of the
quotes was, it's an entity that operates independently of us, and is also our single largest customer.
The relationship, of course, between the Chinese and the United States is increasingly contentious, I think, and not expected to improve, at least in
the technology sphere simply because I think both are fighting for supremacy and for prowess.
How do you balance the relationship as you sit, in many ways, a bridge between the two nations?
HAAS: Yes, I think one thing that myself and just about every major technology CEO thinks about now is geopolitics. And if you were to go back
five years ago, I think even just a few years ago, the amount of energy that we spent, and my brethren, with folks in Beijing or in Washington or
in Brussels is at a different level, and, you know, candidly, that's the world that we live in now.
We now have to be much more mindful of the geopolitics, the issues that we face on the globe. I think what the world has also recognized,
particularly, you know, post-COVID, is that semiconductors are really, really important. And as a result, whether it's myself or other CEOs in the
semi-world, we spend a lot of time with government officials trying to understand and make sure that we are navigating through all that because
it's a different game now for us.
CHATTERLEY: Do you think it gets harder irrespective of leadership positions and whoever wins the 2020 election -- 2024 election, to your
point, Renee?
[18:45:00]
And I think it's an important one, everybody considers chips essential. It's going to be a huge fuel to growth and taking care of societies in the
future in many different respects. I don't see the tensions improving, or do you as a tech CEO see ways to perhaps circumvent those for the good of
both nations?
HAAS: You know, I'm an optimist by nature. I think a lot of technology advancements we were able to achieve when the earth was a lot flatter than
it seems to look right now. I tend to believe that the countries and companies need to work together to make sure that there are open standards,
that we're collaborating together on all these techniques, particularly with A.I. because it's going to be very, very crucial.
But as you said, we do live in unpredictable times. So, across the industry, we're going to have to navigate that.
CHATTERLEY: And you have no choice, so you'll continue to do so. You are the CEO of Arm. You're also on the board of SoftBank, which many in my
audience will understand a giant investor and has had to run roller coaster ride over the past few years as well, which is part of the format, I think,
with the Vision Fund that they have.
How did they and you, if you're wearing both those hats, view not only the impact of the future of artificial intelligence, but also on where the
limits should be applied, and perhaps swiftly for safety purposes?
HAAS: Yes, so SoftBank, as you mentioned, is our largest shareholder, and I do sit on the board of Softbank. So, as a result of that, a lot of dialogue
with the SoftBank leadership, particularly Masa, you know, it is an area that SoftBank, and frankly, all companies are trying to think about in
terms of A.I. regulations, how to think about safety, how I think of standards. It's top of mind, whether it's SoftBank, whether its Arm, you
know, frankly, across our partners.
I attended a U.K. A.I. safety summit last fall, which put many countries together, many industry leaders, maybe akin to the first time there was a
discussion about climate change. It is almost on that level, where I think globally countries and companies need to get together to thinking about how
to navigate A.I. safely.
CHATTERLEY: Yes, I mean the fact that it's being discussed at that level and by all nations at this moment I think gives you a sense of the gravity.
Hopefully, we get regulation right on this because the benefits I thing are enormous.
Rene, fantastic to chat to you. We'll continue the discussion, I hope. Rene Haas, the CEO of Arm Holdings. Great to talk to, sir.
HAAS: Thank you so much.
CHATTERLEY: Now, if you've missed-- thank you. If you've any of our interviews today, there will be on my X and Instagram pages. You can search
for @jchatterleycnn.
All right. Coming up next, the new face of women's basketball. We'll look at the rise of emerging superstar Caitlin Clark.
(COMMERCIAL BREAK)
[18:50:08]
CHATTERLEY: Welcome back to "First Move." American College basketball star Caitlin Clark gave a sensational performance Monday night. She and the rest
of the Iowa Hawkeyes eliminated defending champions Louisiana State University from the Women's March Madness tournament.
The showdown set an all-time ratings record for a women's college basketball game. Coy Wire has more.
(BEGIN VIDEO CLIP)
COY WIRE, CNN 10 ANCHOR: On Monday, we witnessed arguably the most highly anticipated matchup of the college hoops season. An on-court rivalry
centered around Iowa's Caitlin Clark and LSU's Angel Reese drawing more than 12 million viewers just in the U.S. A rematch of last year's national
title game. A pumped-up sold-out crowd in Albany. And Clark was ready from the jump, hitting a three pointer, of course, to open the scoring.
This game was tied at 45 at halftime and the pace was so fast, but Clark showed no signs of slowing down, hitting three after three. She hit nine of
them in total from behind. They are tying the NCAA women's record for most in a single tournament game, also breaking the record for most career
threes in women's Division 1 hoops.
Angel Reese dominant as well, dropping 17 points, 20 rebounds. But in the end, she fell out and Iowa was able to crack the LSU code with their own
cheat code, Caitlin Clark with another performance for the ages. A 94-87 win afterwards. Both Reese and Clark talked about their very different
experiences this time around.
CAITLIN CLARK, IOWA HAWKEYES GUARD: I know our group has given everything we got. And you know, at the end of the day, you win, you lose. I feel like
our group has given so much to this game and to this program that you can always help hold your head high.
But I think at the same time, that's the reason we have been able to play such good basketball is we don't want this to end and we want to keep
coming back and working hard with each other and fighting for one more week. and you know extend it as long as you possibly can, I guess.
ANGEL REESE, LSU TIGERS FORWARD: I'm still human, like all this has happened since I won the national championship. And I said the other day, I
haven't had peace since then and it sucks and -- but I still wouldn't change. I wouldn't change anything and I would still sit here and say like
I'm unapologetically me. I'm going to always leave that mark and be who I am.
WIRE: All right. Iowa get their revenge by eliminating recent LSU. They are into the Final Four where they will now face the University of Connecticut
on Friday. Caitlin Clark just two wins away from her first national title as she tries to end her historic collegiate career in style. Back to you.
(END VIDEO CLIP)
CHATTERLEY: Thanks to Coy Wire there. Felt for Angel Reese. I watched that press conference. She'll be back.
Now, from rising stars to the biggest star in our solar system, the sun. It's going to be hard to find though in parts of North America on Monday
next week as a solar eclipse briefly turns day into night.
Canada's famous Niagara region is already declaring a state of emergency as tourists flock to witness the once-in-a-lifetime event. Paula Newton
explores.
(BEGIN VIDEOTAPE)
PAULA NEWTON, CNN CORRESPONDENT (voice-over): Niagara Falls is known for its stunning views. The number of people expected to visit the famous
waterfalls may soon become a spectacle in itself.
It's a prime viewing site for the solar eclipse on April 8th as it crosses North America, passing over Mexico, the United States and Canada.
JIM DIODATI, MAYOR OF NIAGARA FALLS, CANADA: Even though we get 14 million people every year, it's over the year. It's not all at one time. To get 1
million at one time would be by far the biggest crowd that we've ever had.
NEWTON (voice-over): Canada's Niagara region has declared a state of emergency so that emergency services can prepare for the influx of people.
Hotels, stores and restaurants are gearing up for the visitors, which are estimated to outnumber the locals. Ontario's Niagara region has a
population of nearly half a million people, but some business owners say they're looking forward to some extra company.
GABRIEL GABRIE PIZZERIA OWNER: We're expecting to have a full house for the first time in a long time. We're coming up for the winter season. So, it's
an exciting time.
NEWTON (voice-over): By the time the eclipse is fully visible over Niagara Falls at approximately 3:18 p.m. Eastern time, it will be nearing the end
of its trek across the continent, which happens when it passes over the coast of Newfoundland and Labrador.
It will be the first total eclipse in Canada since 1979 and the last time the contiguous U.S. will see one until 2044. So, it's a sight many people
say they don't want to miss.
JASON HARLOW, UNIVERSITY OF TORONTO: Having that collective feeling of, oh, the sun's gone and seeing something that's so rare and so beautiful to see
the stars come out in the day. Yes, it's something that my kids will remember their whole lives.
NEWTON (voice-over): Paul Newton, CNN.
(END VIDEOTAPE)
[18:55:00]
CHATTERLEY: And you can join us next Monday for the total solar eclipse as it travels from Mexico, across America, and into Canada. Our special
coverage starts at noon Eastern, 5:00 p.m. in London. And if you're going to be watching live, get the right goggles. That's all I'll say.
And finally, on "First Move." Forbes crowns a new crop of billionaires as it releases its latest rich list. It includes the debut of one Taylor
Swift, the pop phenomenon whose ascent has been turbocharged by blockbuster albums and a record-breaking concert tour.
It's also a first for a musician and recording artist as the senior editor of Forbes, Chase Peterson-Withorn, explains.
(BEGIN VIDEO CLIP)
CHASE PETERSON-WITHORN, SENIOR EDITOR, FORBES: There's more and more money to be made in music these days if you're at the top. You know, we've seen
these huge sales of catalogs over recent years and also, you know, the money you can make touring can be pretty substantial.
But, you know, most celebrities who become billionaires they have other business ventures. Kim Kardashian has SKIMS, Rihanna has Fenty. But Taylor
Swift is the first person to do it just off of raking in money touring, recording and, of course, famously re-recording her way to the billionaires
list.
(END VIDEO CLIP)
CHATTERLEY: Pure music. And that just about wraps up the show. Thank you for joining us, and I'll see you tomorrow.
(COMMERCIAL BREAK)
END
