Say you've got a two's complement binary number i:
0b1101001010000000
and you want to find -i. Well, -i is the number such that i + (-i) == 0. So what number has that property? Well, if you construct another number:
i: 0b1101001010000000
-i: 0b0010110110000000
such that the rightmost set bit is the same as in i, all bits after that are 0, and all bits before that are the inverse of those in i:
i: 0b11010010 1 0000000
-i: 0b00101101 1 0000000
then when you add these numbers together, the carries propagate off the left side of the number and just leave all 0 bits, so this is -i.
Now, what do we get if we & these numbers? Well, the trailing zeros & together to produce zeros. The bits on the left are opposites in i and -i, so they & together to produce zeros. But the rightmost set bit is 1 in both i and -i, so that's the only set bit in i & -i.
i: 0b11010010 1 0000000
-i: 0b00101101 1 0000000
i & -i: 0b00000000 1 0000000