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Quest Means Business

Tributes Pour In For US Senator Dianne Feinstein; GOP Plan To Avert Shutdown Fails, Heading For Shutdown; Interview With Rep. Sara Jacobs (D- CA); United Auto Workers Expand Strike At Ford And G.M.; Heavy Rain Causes Flash Floods In New York City Area; Hardline Republicans Hold Out For Budget Cuts. Aired 3-4p ET

Aired September 29, 2023 - 15:00:00   ET

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

[15:00:07]

RICHARD QUEST, CNN INTERNATIONAL HOST: Less an hour to go trading on Wall Street, and September is living up to its reputation as the worst month for

stocks. The Dow is down some four percent. If you look at the triple stack, the NASDAQ is off five-and-a-quarter percent for the month so far.

That's where the markets are looking. The events of the day: Sad news, very sad. Dianne Feinstein, the longest serving female senator in US history has

died at the age of 90.

The US is bracing for a potential government shutdown with 33 hours left to reach a budget deal.

And the chief executive of Axel Springer joins me in the C-suite in the sky. Believing AI can be a journalist's friend, not the enemy.

Tonight, I'm live in London. It's Friday, September 29th, the month is just about gone. I'm Richard Quest in London in September, I mean business.

Good evening. Good day.

We believe, we begin, I should say with two big stories from Washington, DC, the US nation's capital.

Firstly, tributes for the late US Senator Dianne Feinstein are being paid, and at the same time showing the dysfunctionality of the US capital, last

ditch efforts to keep the US government open seem to have failed.

The reality, if lawmakers fail to reach a spending agreement, the US government, the federal government will shut down just after midnight on

Sunday morning.

Congress began their work today. However, on a more personal and a deeply somber note.

(BEGIN VIDEO CLIP)

SEN. CHUCK SCHUMER (D-NY): May I ask that the Senate observe a moment of silence in honor of Senator Dianne Feinstein.

(END VIDEO CLIP)

QUEST: Senator Feinstein passed away at the age of 90. The California Democrat was the Senate's longest serving female member. The word being

used to describe her across the board today is "trailblazer" because she broke gender barriers throughout her political career. She earned a

reputation as someone eager to work across the aisle, a true bipartisanship, so President Joe Biden offered this tribute.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: She was a historic figure, a trailblazer for women, and a great friend and made her mark in everything

from national security to the environment, gun safety to protecting civil liberties.

The country is going to miss her dearly, and so will Jill and I.

(END VIDEO CLIP)

QUEST: Jim Sciutto is with me from Washington.

You have much work to do for us this evening on both stories before we get to delve down and deep into them. Let's first hear CNN's Wolf Blitzer, who

looks back at Senator Feinstein's life and legacy.

(BEGIN VIDEOTAPE)

WOLF BLITZER, CNN HOST, "THE SITUATION ROOM" (voice over): Dianne Feinstein emerged on the national stage after a 1978 tragedy in San Francisco.

SEN. DIANNE FEINSTEIN (D-CA): Mayor Moscone and supervisor Harvey Milk have been shot and killed.

BLITZER (voice over): After the assassinations, Feinstein was sworn in as the first female mayor of the City by the Bay.

Mayor Feinstein quickly got the attention of the National Democratic Party, landing on a shortlist of VP candidates for Walter Mondale in 1984.

FEINSTEIN: We will take back our unity.

BLITZER (voice over): Feinstein made it to Washington when she won a special election in 1992 and went to the nation's capital with Barbara

Boxer as California's first female senators.

FEINSTEIN: I won among men. I won among women. I won in every age level. I won in every ethnic group.

Now what that says is that to me, the fact that I'm a woman is there, but it's incidental.

BLITZER (voice over): The assassinations that made her a mayor also made her an outspoken advocate for gun control. Feinstein was crucial in passing

the 1994 federal ban on assault weapons.

FEINSTEIN: I've seen assassination. I've seen killing. I've been a mayor. I know what these guns can do. Why is it, every man comes before me and says,

nice lady, you really don't know.

BLITZER (voice over): She was unsuccessful in renewing the legislation in 2004, but she didn't give up resurfacing the bill after the Sandy Hook

massacre and going toe-to-toe with conservative senator, Ted Cruz.

FEINSTEIN: I was a mayor for nine years. I walked in, I saw people shot I've looked at bodies that have been shot with these weapons.

[15:05:05]

BLITZER (voice over): She was the first female member of the Senate Judiciary Committee and the first woman to leave the Senate Intelligence

Committee. Considered a moderate Democrat, she often challenged her own party with their pro-death penalty stance.

After Donald Trump was elected president, Feinstein got groans from hometown Democrats, when she encouraged your party to be patient with him.

FEINSTEIN: I just hope he has the ability to learn and to change and if he does, he can be a good president, and that's my hope.

DONALD TRUMP, FORMER PRESIDENT OF THE UNITED STATES: Senator Feinstein, that's another beauty.

[BOOING]

BLITZER (voice over): But Feinstein was hardly a favorite of President Trump, especially when her committee's investigation of sexual misconduct

allegations against Brett Kavanaugh nearly derailed his nomination to the US Supreme Court.

TRUMP: I'd like to find out who leaked the papers. Was it Senator Feinstein?

BLITZER (voice over): As her party shifted to the left during the Trump administration, Feinstein did the same, announcing officially in 2018, that

she no longer supported the death penalty.

FEINSTEIN: I don't want to not grow. I don't want to not learn and the world changes and views change.

BLITZER (voice over): By the time Feinstein was elected to a fifth full term in 2018, she was the oldest sitting US senator.

In February 2023, she announced that she would not be running for re- election. Later that year, health problems kept her off the job for three months holding up approval of several judicial nominees. Some Democrats

called for her to resign, but she kept going.

Dianne Feinstein often led the way for women and men on the Hill with a dedication to public service and an uncommon resilience.

FEINSTEIN: Life is filled with defeats and you just pick yourself up and you go on.

(END VIDEOTAPE)

QUEST: Jim is with me in Washington. Every time I see these lives of these tremendous politicians, and she was one of the greats.

JIM SCIUTTO CNN ANCHOR AND CHIEF NATIONAL SECURITY CORRESPONDENT: She was and for folks, more recent observers of Washington, that they would know of

her health issues later in life and might think of her only in those terms, but she was in the Senate for three decades. And as Wolf recounted there,

central to roles to attempt to address gun violence in this country, you know, driven by her own personal experience of it.

She witnessed the assassination of two of her colleagues in San Francisco back in 1978 that helped drive her, but she also -- she rose to the

chairmanship of the Judiciary Committee, so central to choosing judges in this country. She was chairman of the Intelligence Committee, central to

investigating the CIA's use of torture following the 9/11 attack.

So she had a long and illustrious career here in this country, and of course, was a trailblazer for women as well.

QUEST: Now, she was bipartisan in many cases, and in fact, one of the last votes she actually did was on the Senate deal to keep the US government

open, I believe, but the reality is, efforts, Jim, to keep them up have been dealt major blows time and time and time again.

Today, the lawmakers failed to advance and to try to do it.

Have a listen to Kevin McCarthy, and then tell me, where does this go next? Here's the speaker.

(BEGIN VIDEO CLIP)

REP. KEVIN MCCARTHY (R-CA): It's easy to surrender. If you want to surrender, yes, but if you want to fight for the American public to secure

our borders and keep government open, how is that a problem?

(END VIDEO CLIP)

QUEST: So how much trouble -- I mean, first of all, is the accepted wisdom there is going to be a shutdown?

SCIUTTO: Hundred percent. I spoke to a Republican member of Congress just a short time ago who actually voted for this continuing resolution, you know,

too in the weeds, but basically a chance to keep the government open. He voted for it.

But the fact is, McCarthy there, you know, he talks about standing up and not surrendering. I mean, he's got a problem in his own party, right,

because 21 members of his own party have voted against this. And frankly, some of them may want to see a shutdown. I mean, you do have a wing of the

Republican Party here that is sort of bring the temple down, right, to get what they want and that threatens, most crucially, shutting down the

government here, but also his speakership.

I spoke to a Democratic Congressman yesterday who said that if it does shut down, he, when he speaks to his Republican colleagues doesn't see their way

out, right, that this wouldn't be a 24-hour shutdown, but could be days weeks and you know, better than me, Richard Quest that that has genuine

economic consequences for this country.

QUEST: Around six, seven billion a week, about 0.2 percent of GDP. But Jim, listen, he could get a deal through if he is prepared to drop the spending

cuts, thereby getting the Democrats on board and he is home and dry before tea time.

[15:10:07]

SCIUTTO: Problem with that is he loses his speakership, so this is literally a case of self over country, right, because there's an obvious --

and you would get Republicans and Democrats to vote for that. Believe it or not, you do have some moderates in this country based on the way districts

are drawn. You do have some Republicans who know that a shutdown might put them into trouble in the next political cycle, next election next year.

But McCarthy knows that if he were to make that deal with Democrats, then he loses the razor thin support he has among Republicans for his

speakership. So what's he going to choose? It appears he is -- well, again, we've got some time, but it appears that he is choosing speakership over

keeping the government open.

QUEST: I guess, you didn't have many plans over the weekend, because it looks like you're going --

SCIUTTO: I don't anymore, Richard Quest. I'll be back here tomorrow for our viewers, if they're interested where this goes.

QUEST: Oh, absolutely. Thank you, Jim. Thank you. Have a good weekend, whatever you can enjoy. Thank you.

SCIUTTO: Appreciate it.

QUEST: Now, to the Democratic Congresswoman Sara Jacobs, of California, San Diego.

Congresswoman, before we deal with the gritty unpleasantness of the budget -- of the shutdown, California, Senator Dianne Feinstein, obviously, you

knew her. This is a -- it is sad.

I mean, yes, she was 90. So you know, it is not a tragedy in a sense, but the sadness is great.

REP. SARA JACOBS (D-CA): Yes, it is a very sad day for California and for our country, and my heart goes out to her family and loved ones.

You know, Senator Feinstein was just a giant. I feel so grateful to have grown up in California at a time where I only really knew two female

senators, and thought it was normal, and didn't have to imagine what it would be like to have woman in leadership because I got to see it all the

time.

Senator Feinstein was a real trailblazer, whether it was LGBTQ+ rights, or fighting against torture, or making sure that we were addressing the gun

violence issues in our country with her assault weapons ban.

She will be missed, and her legacy will be long.

QUEST: As I said, one of her last votes was to keep the government open. And it looks like -- I mean, Jim Sciutto says, a hundred percent, this

thing is going to shut tomorrow night, Saturday night, I guess you probably wouldn't disagree.

So the issue for you is, what would it take -- I'm not suggesting that it's on the table yet, but what would it take from the speaker by way of a bill

that you could sign on to? What would he have to drop from the existing measures?

JACOBS: Well, there already is a bipartisan bill. The Senate has passed a bipartisan continuing resolution with overwhelming support from both

parties, and if that bill were to be brought to the House floor, it would pass the House with overwhelming bipartisan majority as well.

So the fact of the matter is, we don't actually -- we just need Kevin McCarthy to bring up the bill that is already passing the Senate and

already has the support of as many members as it needs to, to become law.

QUEST: Do you find it distasteful that the speaker is really putting his -- forgive me, it is a leading question when I put it like that, but you know

what I mean? He is putting his speakership before keeping the government open, because if he were to put that Senate vote to or that Senate bill to

the House, he would lose his speakership.

JACOBS: I think it's incredibly disappointing and infuriating. Kevin McCarthy already made a deal with President Biden, we voted on a deal and

he needs to uphold the deal. And the fact of the matter is, he is putting himself among the servicemembers who are going to have to work without pay,

the mothers and children who are going to get turned away from grocery stores because their WIC won't be funded.

I mean, this is going to be devastating for people, and Kevin McCarthy can stop it by just bringing the Senate continuing resolution up for a vote and

he refuses to do it.

QUEST: Now you have particular interest, I mean, the federal government is vast, but you're from San Diego, your district in San Diego, and you have -

- you're the largest military complex in a sense, or the largest military economy in the country.

So you're going to have soldiers and military officers not paid, but more importantly, in a sense, because, you know, it's all the companies that

suddenly won't get paid, all the contracts will be disrupted.

JACOBS: That's right. I'm incredibly worried about our servicemembers and their families. You know, in San Diego County alone, we already have 45,000

members of military families who visit the food bank every single month and that was while they were getting their paychecks.

So it's going to be so hard on these families to not get paid for the work that they're doing, and while it will be hard for our servicemembers and

federal workers, they will be getting back pay, our contractors like the people who clean federal offices, they might not get back pay and we're

fighting to make sure they do because they deserve it as well.

[15:15:12]

QUEST: All right, we've got viewers all around the world watching, every nation, and they're looking and they're saying, what's wrong with you? I

mean, other countries have political discussions and they have discord, but they don't close down. As the president said -- oh, he -- the president

believes it's a dangerous time, but has de facto the US become ungovernable?

JACOBS: Look, I think it's incredibly hard for us to lead on the world stage when we can't even keep our own government open. And I think that,

you know, this shows how much work we have to do here at home and why we need to have humility as we partner with other countries in moving things

forward on our shared values.

But I don't think the United States is ungovernable. In fact, House Democrats, Senate Republicans, Senate Democrats and the White House all

agree on what we need to do. It is only a small group of extreme House Republicans who are holding everything up.

And if Kevin McCarthy had a spine, he could bring up the bipartisan package that would get a vote.

QUEST: I am saying to everybody involved in this, I hope, you didn't have any weekend plans and I suspect you're going to have to stay close to the

Capitol in case there's late votes.

But next time we speak, hopefully it'll be in San Diego, which will be a delight for us. Thank you, ma'am. Enjoy your weekend.

JACOBS: I would love that.

QUEST: Thank you.

It's QUEST MEANS BUSINESS. What a day.

Let's go from the United States to the east, to Evergrande, Chinese authorities are now detaining its chairman. It is the latest drama facing

the crisis at the property giant, and one that could derail frankly the Chinese economy in much greater ways to come, in a moment.

(COMMERCIAL BREAK)

QUEST: A NATO country could be about to elect a pro-Russian leader this weekend. He is Robert Fico and his opposition party are leading the polls

ahead of Saturday's voting in Slovakia, which of course is a neighbor and a close ally of Ukraine.

Fico could soon flip the dynamic. He is parroting the Kremlin's justifications for its invasion and he's already said if he's elected,

there is not one more piece of ammunition or military hardware will go from Slovakia to Ukraine.

CNN's Scott McLean has been watching events.

[15:20:17]

(BEGIN VIDEOTAPE)

SCOTT MCLEAN, CNN CORRESPONDENT: Slovakia is a NATO member, an EU member. It borders Ukraine and it has been one of its strongest allies since the

outset of the war. It has sent helicopters, air defense, and artillery systems, but that may soon stop. That's because the leading candidate for

prime minister of Slovakia is a man named Robert Fico. He has been prime minister twice before. He is a well known quantity in the country. He is

also openly sympathetic to Moscow, claiming that it was Ukrainian Nazis and fascists in his words who provoked Russia into war.

He says that sending weapons to Ukraine only prolongs the conflict, so he says that if he takes office, he will not send Ukraine even one more round

of ammunition. He is framing this as a Peace Initiative, especially in light of rising inflation, rising cost of living that is squeezing people's

budgets.

Slovakia has also taken in more than a hundred thousand Ukrainian refugees, which is further straining the public purse. And there's also this, Fico

doesn't think that Ukraine can win. Listen.

(BEGIN VIDEO CLIP)

ROBERT FICO, SLOVAKIAN PRIME MINISTERIAL CANDIDATE (through translator): Please, can someone explain to me why tens, maybe hundreds of thousands of

soldiers should be dying on either side of this conflict? They will have to sit down anyways and find an agreement because Russia will never leave

Crimea, never leave the territories that it controls in Ukraine.

So what is this conflict good for?

(END VIDEO CLIP)

MCLEAN: What is especially remarkable is that Fico was forced out of office by scandal in 2018, but because of at least in part political chaos and

infighting in recent years, Fico has managed to not only rehabilitate his image, he is now the frontrunner.

Slovakia, though has a lot of political parties, and it is very likely that he will need the support of another to govern as a coalition and while Fico

may pair with a more moderate party, he hasn't ruled out the possibility of pairing with a far-right party with even more extreme views on Russia and

Ukraine.

Scott McLean, CNN, London.

(END VIDEOTAPE)

QUEST: Well, uncertainty now about the future of the embattled giant property company, Evergrande after Chinese authorities detained its

chairman. Officials are calling it suspicion of crimes. It is the latest twist in the saga, and it's one of the major problems facing China's

property sector.

CNN's Marc Stewart is our correspondent in Beijing.

(BEGIN VIDEOTAPE)

MARC STEWART, CNN CORRESPONDENT: China's real estate sector is dealing with a long list of troubles, people have invested in a home only to find

construction come to a halt.

Right now, there is a lot of focus on real estate developer Evergrande. Chinese authorities are investigating the company's Executive Director and

chairman of the board over suspicion of crimes.

If we look at the timetable, it comes just weeks after police launched their first criminal probe since the firm defaulted on debt nearly two

years ago. In addition, shares of Evergrande and its two subsidiaries were also suspended from trading in Hong Kong. This comes amid fears about its

ability to restructure its debts and fears of a liquidation.

Evergrande is not the only real estate developer struggling right now. China's economic woes have impacted the real estate market in a broader

sense. We asked one observer to share his observations.

ANDREW COLLIER, MANAGING DIRECTOR, ORIENT CAPITAL RESEARCH: The economy is going to have to reset itself at a lower level. That's the key issue. And

what we don't know is how low a level that's going to be and how much of a political mess in terms of anger towards the central government that's

going to cause.

STEWART: So why is this happening? The housing sector has been seen as a sense of strength in the Chinese economy, but after the pandemic, people

became reluctant to spend money, unemployment rose, housing prices fell as buyers questioned whether a home was a worthy investment.

Those woes have damaged investor confidence in the Chinese housing sector, making it harder for developers to borrow money on the financial market to

fund ambitious projects.

Marc Stewart, CNN, Beijing.

(END VIDEOTAPE)

QUEST: And so, at the heart of the US government shutdown fight is a standoff within the Republican Party itself and it is that infighting that

very likely will bring the whole government to a standstill.

We'll talk about that in a moment.

(COMMERCIAL BREAK)

[15:28:20]

QUEST: Hello, I'm Richard Quest.

So much more QUEST MEANS BUSINESS to bring you across CNN. The US government shutdown, the far reaching consequences, we will do the economic

ripple effects.

And I met the chief executive of Axel Springer, who has some extraordinarily good views on artificial intelligence. He says it's a

friend to the media industry, not an enemy. We'll get down to that only after I've updated you with the news because this is CNN and on this

network, the news come first.

Pakistani officials are blaming suicide bombers for deadly attacks on two religious gatherings. The first target is a procession marking the birthday

of the Prophet Muhammad. At least 52 people were killed and dozens of people were injured.

Hour later, two blasts hit Friday prayers near Peshawar City, there at least four people were killed.

Inflation in the Eurozone hit its lowest level in two years. Consumer prices this month rose at an annual rate of 4.3 percent. Now if the slowest

pace since October of '21. The hope is that the European Central Bank will pause in its interest rate hikes, but that level of interest is still twice

as high as the EU CB wants.

The United Auto Workers says it's expanding its strike, an additional 7,000 workers will now picket at Ford and General Motors. The walkout will not be

extended at Stellantis, which makes vehicles in the Jeep and Chrysler brands. There are negotiations in progress which is the reason why.

There are now 25,000 people on strike across the Big 3 US automakers.

A state of emergency has been declared in New York City. Heavy rain is flooding subways, roads, and basements. More than a month's worth of rain,

about 10 centimeters has dropped in parts of Brooklyn over the last three hours. The National Weather Service is warning totals could be more than 20

centimeters, nearly a foot in the course of the region.

[15:30:25]

There's blame to go around in the budget standoff plenty for all. But at its core probably is a small group of hardline House Republicans who want

to cut federal spending dramatically and drastically. And they're also wanting to cut U.S. aid to Ukraine. Some have threatened to oust the

Speaker Kevin McCarthy who's unable to count on his right-wing lawmakers. Those like Florida's Matt Gaetz and Georgia's Marjorie Taylor Greene.

Doug Heye is the former communications director for the Republican National Committee. He's with me now from Washington. This is really a Republican

problem, isn't it? In a sense, it's everybody's problem. But it's a Republican problem because Republicans could if they wanted to pass this on

their own.

DOUG HEYE, FORMER COMMUNICATIONS DIRECTOR, REPUBLICAN NATIONAL COMMITTEE: Well, in theory, they could if they wanted to, but they start with not

wanting to because of internal Republican politics and what we see -- and I'll tell you, Richard, I worked in the 2013 shutdown that we had. And when

did that begin? October the 1st. So, it's very similar territory. The fights that we had then were about Republicans who wanted to fight with

each other, and demonstrate to their base that there were fighters.

That didn't necessarily have to have a strategy to land a punch or win around, or certainly when the fight, just an ability to show that you're

throwing punches is often rewarded in the Republican base. That's precisely what we see now. The outcrop of that is that Republicans will fight with

each other on the House floor. And in statements that's happening now as well. And I'll tell you, Richard, I've heard you ask a couple of guests

earlier, including Jim Sciutto.

You know, I hope that you hope that he didn't have weekend plans. A lot of people in Washington had plans this weekend. Bruce Springsteen was supposed

to play a concert about a mile from the Capitol just tonight, that -- that's gotten postponed. But when the date was announced for September

29th, the e-mails went around. We all know what tomorrow is. And a lot of people were worried weeks and months in advance that they'd have to cancel.

QUEST: And indeed, all things postponed anyway. So, they get another attempt which is more than the U.S. economy will do. Because -- look, the

numbers I've seen, Goldman says it's about point-two-tenths of a percent per week. The six billion $7 billion. Eventually, it will have an effect,

even if everybody who's furloughed gets their money back.

HEYE: Absolutely. And, you know, so often in politics in Washington, you get -- you get caught in your own intraparty or enter Congress house versus

Senate games. You sort of forget sometimes that there's the country watching and the world is watching. And that also means markets. And so,

what we know is whatever happens in this process, that will not be pretty, we don't know how it will end, only that it should end at some point.

It's going to affect markets, it's going to affect the pocketbooks of not just people in the military but essentially on one level, every American.

QUEST: Right. But Doug, there's also another solution which I agree before your answer will cost the speaker his speakership. He could drop many of

the spending cuts, just go for a continuing resolution, and he would have Democratic support to get over the -- over the edge.

HEYE: It -- certainly, that could happen. Ultimately, that may be the result. The challenge there is -- it's been put a lot of, you know, Kevin

McCarthy's being selfish, he needs to put the country's interests in front of his own. And I get that. The reality is if that motion to vacate the

chair is introduced, the House goes into immediate chaos. This isn't replacing a senator or a member of Congress.

This is a constitutional office. The house will go into chaos if that happens. So, by trying to do this, it is may be the least bad option for

McCarthy right now. If he vacates his speakership, the House will be plunged in chaos. And again, the rest of the world and the markets are

watching.

QUEST: Thank you, sir. We'll talk --

(CROSSTALK)

HEYE: Anytime. Thank you.

QUEST: Actually, no, hang on. Before you go.

HEYE: Yes.

QUEST: Did you have tickets for that concert?

HEYE: Of course, I did. Absolutely. This would have been concert number -- like 54 for Bruce for me. And unfortunately, we'll have to wait a few

months.

QUEST: Well, now I can -- now I can see the sort of person we're dealing with here.

HEYE: Yes. Mental one. Yes.

QUEST: Fifty-four. Right. There we go, sir. Excellent. We look forward to it. Thank you very much. Have a good weekend.

HEYE: Thank you. You too.

QUEST: The economic impacts of a U.S. government shutdown, they will be sprawling. As I said, Goldman Sachs says it's about two-tenths of a

percent. A stalemate delays, jobs and inflation data that helps the guide the Federal Reserve.

[15:35:00]

It also gives transparency and vision to private economists. The top U.S. securities regulator would have to cut staff. That could still deal making

wherever you look, there will be trouble.

U.S. Treasury Secretary spoke earlier. Janet Yellen said a shutdown would threaten economic progress.

(BEGIN VIDEO CLIP)

JANET YELLEN, U.S. TREASURY SECRETARY: To failure of House Republicans to act would hurt American families and cause economic headwinds that could

undermine the progress we're making. A shutdown would impact many key government functions, from loans to farmers and small businesses, to food

and workplace safety inspections to head start programs for children.

(END VIDEO CLIP)

QUEST: Thomas Phillipson was the acting chair of the U.S. Economic Council of Economic Advisers in the Trump White House. He's with me now from Miami.

Sir, good to see you. The reality is, yes, we sort of know what happens when the government shuts down. And yes, everybody does sort of get paid

back when it's over. But the level of uncertainty this time is on a different level.

THOMAS PHILLIPSON, FORMER ACTING CHAIR, U.S. COUNCIL OF ECONOMIC ADVISERS: Yes. I think it's a -- there's two questions, sort of how long is this

going to last and what -- how broad is the spending cuts on how long. Usually these things are pretty short in terms of once the pain goes up

with the population, they start yelling at their representatives. The one that airlines lines at the airport are becoming too long, et cetera.

So, it's usually pretty short. What's covered is this a little bit misguided I think in terms of the disaster looming. There's no, you know,

standards. Mandatory spending is not being shut off. And that's 75 percent of the federal budget. 25 percent of discretionary spending is that what a

steak essentially. But even within that 25 percent bucket, essential operations are still going to go on.

QUEST: You -- right. But we don't know, for example, whether there'll be sick out to the airport, we don't know whether essential operations

actually mean full staffing. And if you take for example, I saw you writing about it earlier. If you take the travel industry, this is a groaning giant

to start with with the FAA, the TSP and all of these things and CVB. The last thing anybody wants is to put more pressure on a system that was

sprouting leaks regardless.

PHILLIPSON: Yes, I think that's right. And that's where you see the pressure points. Once the voters see the implications of this, it's going

to be a lot of frustration with a representative. But even the economic sphere, so the Fed and similar agencies is not under threat here because

they're covered by fees essentially. They're not congressionally funded through appropriation. The White House staff is essentially.

And then when I was in the White House in 2019, the last time we had a shutdown, essentially, there was a lot of empty halls walking around

because non-principals were essentially shut out of work. But certain regulatory agencies, SEC, the Securities Exchange Commissions, CFTC, et

cetera, the data releases coming out of labor department and Commerce Department. They will be reduced essentially.

And that's when real threats, especially for that -- especially for the Fed who relies on those data quite heavily obviously the same policy.

QUEST: To us, the core point tonight is the dysfunctionality in a sense. Look, I don't know how I can -- I don't know how I can sweeten this

question. But the blunt reality is, other well-functioning democracies do not close down their governments as frequently as the United States does,

because of political infighting.

PHILLIPSON: Well, things particularly now we have a left-wing or Democratic party who's run by the left wing of their party, the Bernie Sanders

fraction, essentially, is driving a lot of policies. And then you have the Republican Party who's had mercy of their right wing within the Republican

Party. So, it's no surprise and this is going to continue all the way until the next election that you have a lot of disagreements which are very, very

hard to settle because of that sort of extreme division between the two parties.

QUEST: Did you ever -- did you have plans this weekend? I mean, you know, they'll have gone out the window and a sense of having to watch wait and

cover.

PHILLIPSON: I'm fine. I'm doing fine. I've tried to rely on the government as little as possible, put it that way. That's my -- that's my policy.

QUEST: We found somebody's going to have a good weekend. Have a -- enjoy, sir, in Miami. Enjoy the good weather. Thank you.

It's QUEST MEANS BUSINESS on a Friday. Delighted you're with us. When we come back, Axel Springer and some of the most recognizable media brands in

the world. I talked to the chief executive who's told me he's ready to embrace artificial intelligence in journalism.

(BEGIN VIDEO CLIP)

[15:40:05]

MATHIAS DOPFNER, CHIEF EXECUTIVE OFFICER, AXEL SPRINGER: We have already five projects where we take advantage of the possibilities of large

language models. I don't see it as a structural enemy of journalism. I see it as a potential friend.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

QUEST: This week, Call to Earth, we've turned the spotlight on France and man who believes seaweed is our planet's greatest untapped resource. He's

our guest editor, Vincent Doumeizel and he's determined to spread his message as broadly as possible. He even talked seaweed with French

president Emmanuel Macron. CNN's Zain Asher brings us the story.

(BEGIN VIDEOTAPE)

ZAIN ASHER, CNN INTERNATIONAL ANCHOR (voiceover): Covered in vineyards, the burgundy region is what a wine connoisseur might refer to as a happy place.

Vincent Doumeizel would agree, particularly when it comes to his home in the quaint riverside town of Arcy-sur-Cure.

VINCENT DOUMEIZEL, FOOD PROGRAM DIRECTOR, LLOYD'S REGISTER FOUNDATION: At the place where my mother come from. It has been in my family for

generations and generation my family use to grow grapes here. I come here since I'm a child for my holidays and enjoying the rivers and the beauty,

full of hills around here.

ASHER (voiceover): Hundreds of kilometers from the nearest coastline, it's not however, what you'd consider a hotspot for another of his favorite

ingredients.

DOUMEIZEL: Or some more seaweeds there.

ASHER (voiceover): But Vincent usually has a backup supply on hand.

DOUMEIZEL: Seaweed is a nutritional bond. It is packed with nutrients, proteins, irons, vitamin C, anything you need.

ASHER (voiceover): Today, the father of three has enlisted the help of his children to prepare a seaweed centric meal to share with friends and family

at a historic picnic spot across town.

The group includes Vincent's bandmates who together form a local rock band called Arcy like the village.

DOUMEIZEL: We often gather and share meals and I like to make them discover seaweed and taste new things.

ASHER (voiceover): But in his day job as the Food Program Director for Lloyd's Register Foundation, Vincent believes that eating seaweed is key to

opening people's minds about its broader potential.

DOUMEIZEL: We need to preach all around the world and tell everyone that seaweed may we it'd be the greatest untapped resource we have on the

planet.

[15:45:08]

ASHER (voiceover): Earlier in the week Vincent traveled to the Brittany region of Northwest France, where the maritime city of Brest was hosting

EPC8. A weeklong conference dedicated to everything algae.

The quadrennial event brings together an international collective of scientists, experts and enthusiasts alike.

Vincent's become a rock star in these circles as well, but not only for a stage presence.

DOUMEIZEL: What's the solution looks like there. It does look like this. Big seaweed farm.

ASHER (voiceover): He first gained international attention in 2020 with the release of the Seaweed Manifesto. A 10-page document outlining how seaweed

can contribute to reaching the U.N.'s 2030 Sustainable Development Goals.

In 2023, the release of his first book, The Seaweed Revolution, upped the ante.

DOUMEIZEL: It led me to meet with our president, Mr. Macron to be invited in many meetings. And that -- that's a big difference. And I think a book

is a very strong way to carry the message.

ASHER (voiceover): Other well-known faces have taken notice too. But to Vincent, the notoriety takes a backseat to the mission.

DOUMEIZEL: We need a lot more seaweed, especially because they are disappearing because of ecosystem disruption. So we don't have enough of

them. We should restore them, we should repair them. And we should more importantly learn how to cultivate it.

(END VIDEOTAPE)

QUEST: Seaweed. Who knew? And to see how more seaweed is one of our planet's most vulnerable resources. There's the full documentary it's Call

to Earth's Sea of Hope. It's this weekend at CNN.

(COMMERCIAL BREAK)

QUEST: In Nevada, in Las Vegas, the police have confirmed they've arrested a suspect. In the decades old murder of Tupac Shakur. The rap store was

shot and killed while leaving a boxing match in 1996. In the years since the murder has been a subject of conspiracy theories and numerous

investigations. Now the authorities say Duane Keith Davis has been arrested on Friday morning, two months after his wife' home was searched in

connection with the case. The police have spoken just moments ago.

(BEGIN VIDEO CLIP)

[15:50:01]

LT. JASON JOHANSSON, LAS VEGAS POLICE DEPARTMENT: -- include members of Mob Piru came to Vegas to attend the Mike Tyson fight at the MGM Grand Garden

Arena.

Members of the South Side Compton Crips, which included Duane Davis, along with his nephew Orlando Anderson, were also in attendance at the same

event. As both were leaving the fight, members of Death Row Records spotted Orlando Anderson near an elevator bay -- bank inside the MGM, a time they

begin to kick and punch him near that elevator bank.

I will now show you hotel security footage as -- related to the incident. And on this incident, you'll see Tupac Shakur who's wearing a shiny satiny

shirt with Marion Suge Knight who's a large man and a brown suit, punching and kicking Orlando Anderson. Following this incident, you'll see hotel

security intervene and then they will leave the area of the fight.

Little did anyone know that it is this incident right here that would ultimately lead to the retaliatory shooting and death of Tupac Shakur.

Following this incident, Tupac and Suge Knight both left the MGM to make their way to a post-fight party, which was the occur at a local nightclub.

At the same time, where it had spread amongst members of the Southside Compton Crips of what it -- inside the MGM and then that's when Duane Davis

began to devise a plan to obtain a firearm and retaliate against Suge Knight and Mr. Shakur for what occurred inside the hotel against Mr.

Anderson.

After Davis attained a gun, he entered into a white Cadillac along with Terrence Brown, DeAndre Smith and Orlando Anderson. Based on our

investigation, this is where he we know they were seated. At some point in time, as they are in the white Cadillac, Mr. Davis took the gun that he had

attained and provided it to the passengers in the rear see the vehicle. As they were both -- as they were driving west on Flamingo Road near Kobal,

they located the black BMW which was driven by Suge Knight and in the passenger seat was Tupac Shakur.

And as they turned around, they pulled up near the passenger side of that vehicle and immediately began shooting at Mr. Knight and Mr. Shakur.

Following that shooting, the white Cadillac fled the area southbound on Kobal. And as our actor officers arrived on scene, Tupac was later

transported to the University Medical Center where he was treated medically, and died approximately six days later on September 13th.

My homicide section handled this investigation from its onset and for a short amount of time. And within a short amount of time, what we knew was

that we were working on a game investigation where our victims, our witnesses and our suspects were all from Southern California and not local

to Las Vegas. Within the first few months of the investigation, our detectives knew most of the information I just briefed you on.

However, we never had the necessary evidence to bring this case forward and present it for criminal charges. As time went on this case -- viewed more

times by different investigators assigned to my section. But it wasn't until 2018 that this case was reinvigorated as additional -- came to light

related to this homicide. Typically, Duane Davis' own admissions to his involvement in this homicide investigation that he provided to numerous

different media outlets.

In our section, we knew at this time that this was likely our last time to take a run at this case to successful --

(END VIDEO CLIP)

QUEST: Absolutely fascinating. The step by step, abecedarian approach that the Vegas police took into the murder of Tupac Shakur. And what is

fascinating of what we've just heard, is that they have known pretty much since the beginning. It's just after the murder. The series and

circumstances have events but did not have the evidence to proceed further. And what we have still to learn, of course, is what changed.

What was the new evidence that they received in 2018 that now allowed them as the chief said to have another run at this case which they believed

would be the last chance to actually go against Duane. Fascinating and extremely well explained by the police officer there.

[15:55:17]

September has lived up to its reputation as a rough month. The Dow is set to close significantly lower tonight on the day and on the month. Overall,

the index has fallen about four percent tis month. A lot of red. Travelers is at the bottom. Caterpillar is giving back yesterday's gains. And Wal-

Mart is down which is interesting in recessionary times. But Morgan's off. Nike has popped its reported stronger profits than expected.

Walgreen is higher. It's a real mishmash. Bloomberg supporting Walgreens considering a former executive as chief executive. I'll take a profitable

moment with you after the break. Across the world, across the United States. This is CNN.

(COMMERCIAL BREAK)

QUEST: Tonight's profitable moment. I want to bring together our two top stories for you. The death of Dianne Feinstein and the closure of the U.S.

government because a rump of Republicans won't agree to anything other than burning the House down. Dianne Feinstein's last vote was just yesterday. On

the floor, she raised her hand to say, I had to be helped a bit to pass a Senate -- a Senate measure that was going to pass, but would go no further.

It was an act of bipartisanship that was extraordinary by her. But it also spoke volumes against what we're seeing in the house where we have seen

numerous attempts today to try and keep the U.S. government open and they have failed. And if everything we heard Jim Sciutto told us earlier, it's

almost 100 percent clear that he -- that the U.S. government will shut down.

So, we have acts of bipartisanship from Schumer and Mitch McConnell and Dianne Feinstein and others. We have Democrats who say drop the spending

cuts and we'll help you across the road. We have Kevin McCarthy saying I'm not -- I'm not holding on just for my speakership. It's what's right. But

the truth and reality is, tomorrow night the U.S. federal government shuts down.

[16:00:07]

And as my late grandfather used to say, that's no way to run a railroad. And that's QUEST MEANS BUSINESS for this Friday night. I'm Richard Quest.

Whatever you're up to in the hours ahead, I hope it's profitable. I'll see you on Monday.

END