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Quest Means Business
Mixed Verdict in Sean "Diddy" Combs' Federal Criminal Trial; North Korea Sending Up to 30,000 More Troops to Fight for Russia; Paramount Settles Trump's "60 Minutes" Lawsuit for $16 Million; Tesla Reports Record Sales Plunge from Last Year. Lawyer for Cassie Ventura Reacts to "Diddy" Verdict; U.S. House Takes Up Senate Version of Trump's Agenda Bill; Trump Says U.S. has Reached Trade Deal with Vietnam. Aired 4-5p ET
Aired July 02, 2025 - 16:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:08]
PAULA NEWTON, CNN INTERNATIONAL HOST: Indeed, it is another day, another record for the S&P 500. I mean, investors just keep trucking along there. I
mean the Dow was down marginally there. But the NASDAQ also ticking up nicely up almost one percent. Apparently, some investors cheering on those
trade deals. Those are the markets and these are the main events.
A mixed verdict for Sean "Diddy" Combs. In about an hour, a judge will decide whether to grant him bail.
The U.S. House could hold its final vote on the so-called Big, Beautiful Bill. That's as soon as today.
And the Eiffel Tower remains closed as Europe swelters. How extreme heat is changing our travel habits.
Live from New York. It is Wednesday, July 2nd. I am Paula Newton, in for Richard Quest and this is QUEST MEANS BUSINESS.
And good evening, tonight a judge will soon look at whether Sean "Diddy" Combs should be released from jail ahead of his sentencing. Combs was
acquitted of the most serious charges against him. Those were the counts of sex trafficking and racketeering and conspiracy. He was found guilty of
transportation to engage in prostitution.
Now the music mogul is now facing up to 20 years in prison. In the meantime, his attorneys have asked that he be released on $1 million bond.
A hearing on that request is about an hour away from now.
Now, an attorney for Cassie Ventura, the main prosecution witness, says Combs is dangerous and should remain behind bars. Ventura testified that
Combs had sexually abused her for years. Her lawyer had this to say about the verdict.
(BEGIN VIDEO CLIP)
DOUGLAS H. WIGDOR, CASSIE VENTURA'S ATTORNEY: Obviously, we would have liked to have seen convictions on the RICO charges and the sex trafficking
charges, but Cassie prompted this investigation by the Southern District, and now Sean Combs stands before the court as a convicted felon of two
federal crimes. He faces significant incarceration.
(END VIDEO CLIP)
NEWTON: CNN legal analyst, Michael Moore is with me now. Grateful to have you as we continue to still watch all the drama in the courtroom there here
in New York.
Can you take us through these verdicts and why he was, in fact, acquitted of the most serious charges, but still, two guilty verdicts there.
MICHAEL MOORE, CNN LEGAL ANALYST: Yes, well, I am glad to be with you. I think that if you think about federal court and federal trials, this is not
unusual to have a mixed verdict like this. And so, basically, the jury came back and they said, look, we think that he engaged in this transportation
for the purposes of prostitution, we can see that, but we don't think that the sex trafficking and the and the RICO case, the RICO charges were proven
beyond a reasonable doubt.
And RICO is a tough charge to bring. Federal prosecutors sometimes bring it at their own peril. You know, they really have to prove that this is about
a corrupt organization or a criminal enterprise with criminal goals, and that these underlying acts, which were predicate acts or crimes, are in
furtherance of some illicit process and gain by the criminal organization and that's just a tough road to hoe.
I mean, that really -- that's one of those things that sometimes you overcharge a case because by definition, federal cases are often
complicated because you have to sort of prove the whole interstate nexus and that type of thing, and you end up charging these big multi-level
conspiracies or RICO criminal organization charges and juries just like a simple case and they like a simple -- a simple story.
And here it was very clear that you had Mr. Combs engaged in the process of bringing in prostitution participants for these parties that he threw and
these assaults, really these days-long sexual events that went on, but the jury just did not believe that this was behind a criminal organization and
I think that's why you saw the mixed verdict.
NEWTON: We want to get to the defense strategy now, you know, it decided to not call any witnesses at all in this case. Does this really vindicate that
strategy?
MOORE: You know, I don't really think it does. I mean, at the end of the day, he is a convicted felon on two counts. And so, you know, he certainly
wasn't acquitted on every charge. Of course, being a convicted felon didn't mean what it used to at least, you know, we've got politicians who are
convicted felons. So it just doesn't have the same connotation that it may have had in the past.
But, you know, I think what the prosecution did is they tried and they did maybe -- what the defense did is they tried to keep it very simple. The
prosecution could have learned from that and thought about that as well. And that is, look, we don't need to put up other witnesses. We've scored
points on witnesses through our cross-examination and that will be sufficient to overcome any arguments that the government has made in the
case.
[16:05:11]
So, you know, it is always risky to not put up any information, but here also, there were messages and recordings and statements by other people.
There were things out there that sort of told part of the defense story without the need to put up a lot of evidence in their case in chief.
NEWTON: Interesting. The judge, as we were saying, will be back on the bench at the top of the hour. Mr. Combs' freedom, in fact, hangs in the
balance. Is there a good case for bail here in your estimation? I do want to point out, you know, we noted, look, the maximum sentence is 20 years,
but this is a first time offense for him. He is not going to get anywhere near that, is he?
MOORE: No, he is not going to and he may not be looking at anything more than even a 10-year maximum if the judge decides to run the charges or
merge them together, which is something that the court can certainly do. I think there is an argument here to be made for bail. He has been in custody
for a period of time, the judge will take note of that.
One thing that courts can do, what sentencing judges can do is they can consider uncharged conduct. They can consider other conduct that's laid out
in the indictment presented at trial, even though he wasn't ultimately convicted of it. At the end of the day, you know, this is something the
court will weigh heavily with and that is that he has got a pretty clear pattern of some violence and it is not an allegation when you can see it on
a videotape.
And we saw where he is on the tape, where he has attacked Miss Ventura in the hallway of the hotel or whatever. And so that's something that will
likely weigh in the judge's mind as he thinks about, well, should I put him out?
Federal courts have a lot of discretion here and federal judges, I think, can put in place certain things, like leg monitors, house arrest, these
kinds of things that will sort of dictate the behavior of a defendant awaiting sentencing. And he is just likely in this kind of case because it
is a first offense, because of the nature of the charges that the conviction rested upon, you know, he is likely, in fact, to do something
like that.
NEWTON: Yes, you know, Michael, you're on the record as saying that you weren't surprised by these verdicts. But I will tell you something that did
surprise me, you say the evidence didn't really follow the outline that the jurors might have expected in terms of what they may have watched on things
like courtroom T.V. for decades.
You're saying that the jury needed kind of a cleaner prosecution here. What do you mean by that?
MOORE: One of the things that we try to tell younger lawyers is that is when they want to go into a courtroom in front of a jury, they need to keep
it simple. And so sometimes when you drag a case out for a number of weeks or you, you know, you have to bring in certain information that is not --
when I say T.V. courtroom dramas like you don't finish the case in 60 minutes, you know. Juries can get lost and they get tired of listening to
things.
Sometimes they get tired of hearing about bank records or phone records or hotel receipts or whatever they may have, and they expected sort of more
fireworks throughout the week or throughout each day. In this case, you had a lot of graphic sex testimony and certainly some evidence that came in
strictly to the jury and the court and the media didn't see that, but we know that it was, you know, tapes and photographs, this kind of thing.
Those are things that might pique the jury's interest somewhat. But, you know, people are used to watching T.V. dramas and they expect a case to be
oftentimes cut and dry. And so since the age of sort of the courtroom television shows, you know, they expect either there is going to be sort of
a "Matlock" moment where suddenly the witness caves on the stand, or there is going to be some piece of evidence that shows up in a CSI crime report.
That's just not always the case.
So the cleaner case you do without trying to overcharge, without trying to go in and make it too complex and talking about this corrupt organization
because they bought so much baby oil and this kind of thing. If you just kept the case fairly simple and went in on a charge that you knew you could
prove, you would have had an outcome, I think that certainly would have at least equaled what they got today on a much shorter and a much shorter
trial, and likely have exceeded it.
NEWTON: Yes, there was certainly a lot of drama in the courtroom, but also on display, obviously, as well. The trauma that was caused to the two
witnesses that appeared was certainly something that, again, when jurors saw that, they still were able to look at this case, right, and say, yes,
guilty of this, but not guilty of that.
Michael Moore, we have to leave it now. But as I said at the top of the hour, we will expect more news from that courtroom. Appreciate it.
MOORE: Great to be with you.
NEWTON: Now to Capitol Hill, where lawmakers are working towards a key procedural vote on President Donald Trump's domestic agenda bill. Now, at
this hour, House lawmakers are voting on the Senate version of the legislation that includes tax cuts, billions for border security and
defense, all while slashing Medicaid health care coverage. The votes are a major test of Mr. Trump's political power in his second term, and the
persuasiveness of Speaker Mike Johnson.
Democrats and some Republican hardliners have said they plan to stall the bill, spelling disaster for the President's self-imposed July 4th deadline.
[16:10:10]
Annie Grayer again with us, who continues to do a lot of really hard duty there as you're trying to follow all the ins and outs. Now, from what I
just saw, these negotiations in the House still very tense and what is interesting to me is that both Republican hardliners and the moderates
still have significant problems with the Senate version that they are now needing to vote on.
I mean, I guess the question is, what's the rush? We talk about the July 4th deadline. Does the Speaker still intend that, yes, I am going to hit
that deadline -- that Friday deadline?
ANNIE GRAYER, CNN CAPITOL HILL REPORTER: The Speaker, the President, Republican leadership are intent that July 4th is the deadline that they
will meet it, but we have hit a standstill in the House. The vote on the floor has been open for hours now as Republicans came in as all House
lawmakers, Democrats and Republicans came back into Washington, D.C. to vote, and as they started doing some of the procedural votes, Republican
leadership started hearing more and more from their members that the votes just weren't there to move forward on the bill at this time. So leadership
has now left this vote open.
Both moderates and right wing conservatives have been meeting behind closed doors to try and negotiate some semblance of a deal here and these two
groups are opposed to this bill for different reasons. You have moderates who are frustrated with the Senate's bill that makes different cuts and
steeper cuts to Medicaid than what they had passed in the House, and then you have right-wing conservatives who don't think that the Senate's version
of the bill does enough to cut spending.
So both of those groups actually went to the White House earlier today and met with President Trump and his team, and I talked with a lot of those
members after those meetings, and they seemed relatively positive. But then when it came time to vote, the votes just were not seeming to be there.
So now we are in this holding pattern where there are separate meetings going on. The Speaker is meeting individually with members. The White House
has sent some of their team over to meet with people on the Hill, so, you know, members are looking at their schedules, trying to figure out what may
come next. But we are honestly just waiting to see if there will be a breakthrough, and Republicans can get the votes necessary to deliver this
to President Trump by his July 4th deadline.
NEWTON: Yes, fascinating that you heard, you know, some positivity there from members. We will wait to see. Most people wouldn't bet against this
passing if not by July 4th, then next week.
Annie Grayer for us, appreciate the update.
Now, President Trump says he has struck his third major trade deal with just one week to go before his blanket tariffs kick back in. Now, in a
social media post, Mr. Trump says he has reached an agreement with Vietnam. He says Vietnamese goods sold to the United States will face a 20 percent
tariff. In return, he says Vietnam had given the U.S. access to its market with zero tariff.
The 90-day pause on the President's sweeping import duties will expire next week, July 9th.
Kristen Holmes is at the White House, watching all of this for us. Still a busy week at the White House. You wouldn't know there is a holiday on
Friday. Another deal done. It is likely giving us an indication, right, of what other deals may look like here?
KRISTEN HOLMES, CNN NATIONAL CORRESPONDENT: Yes, although we have seen a lot less in terms of tariffs placed on these various countries for imports
coming in. I mean, you noted the 20 percent, that's actually double what we had seen for other countries. So it is unclear why it was so much higher
for Vietnam than it is for other countries.
He also said there would be a 40 percent tariff on what he called trans shipping, which is essentially tariffs on goods that go to another country
before they come to the United States. But it is unclear how that would work either. And this is kind of President Trump's specialty, right? We see
him post about the deal that he made, but then we don't really learn the details in full until a little bit later. But of course, we've reached out
about that.
Now, you talked a little bit about what the United States was getting in return, and President Trump posting that they will do something that
they've never done before, saying giving the United States of America total access to their markets for trade, and we will be able to sell our product
in Vietnam for zero percent tariffs.
So we are still waiting to hear exactly what the terms of the agreement are. The other question is, is this an actual agreement or is this a
framework for an agreement? One of the things that we've seen time and time again has been President Trump kind of announcing a deal, but then we
learned it is really just the framework for a deal or the framework to start negotiating on a deal.
So waiting to see more details here. But as you noted, this deadline is coming up. The self-imposed July 9th deadline, which President Trump said
that those reciprocal tariffs would go back into effect, and he had said at one point and his team had said, 90 deals in 90 days. This, as you
mentioned, is the third deal if it is in fact a signed deal with Vietnam. So it is unclear how this is going to look and President Trump at one point
said that he was just going to have his team, Scott Bessent, the Secretary of Treasury, Howard Lutnick, the Secretary of Commerce, send letters to
countries who didn't make a deal by July 9th, just telling them what their new tariff, their new reciprocal tariff would be.
[16:15:23]
But then he kind of hedged on that last week, saying what he wanted to do was send these letters, but didn't say that that was actually happening the
way that we had seen before. So what actually goes into effect on July 9th? That's one of the things we are waiting to see, because we've heard from
members of his team who say there is just too many countries and it is taking longer to negotiate that with them.
And so even asking them the questions of, oh, well, if this negotiation is in progress, does this reciprocal tariff go into effect? They don't seem to
have the answers either.
So I think this is kind of a wait and see game, whether or not these next deals look like this Vietnam deal, I really think it is unclear at this
point how any of this is going to shake out, and how any of this is going to look, but right now we have three deals, and that deadline is now seven
days away.
NEWTON: You know, it has been interesting. We've been looking at the stock prices of some of the companies, for instance, that rely on that's just
imports from Vietnam. But in general, the stock prices, the markets have really assumed that this is going to be an optimistic outcome. I am not
sure that consumers will feel the same way.
You know, this baseline tariff, you know, 20 percent now for Vietnam, but it is going to be at least 10 percent for other countries. You know, is the
White House saying that this will not add to costs for Americans or how are they defending it?
HOLMES: Well, a couple of things. One is that President Trump continues to tout the money coming in from these baseline tariffs, saying that he is
actually making money for the country. He was talking about this just yesterday, the day before, saying that when he looks at his books, now,
you're seeing billions of dollars coming from the tariffs. So that's one way that he is defending it.
Now when it comes to the cost on actual everyday Americans, you've heard a couple of things. One of them is that President Trump and the White House
essentially blames the companies for raising the cost on the consumer, saying that the companies should be absorbing this cost. They can afford
it. They shouldn't be putting it onto the consumer. But obviously, as we know that they can't always afford it, particularly some of these smaller
businesses that might not even be able to raise the price to have people continue to shop there, they might actually shutter their doors because of
just how expensive this is going to be.
So generally, they seem to ignore that part of this, but they do focus on the fact that the tariffs will make money for the country, as well as
saying that these bigger companies, the larger corporations, should be absorbing the cost.
NEWTON: Again, another big week this week at the White House and another one next week. Kristen Holmes covering it all -- covering all of it for us
from the White House. Grateful to you.
Now, an early summer heat wave scorched Europe for a third straight day, and it is prompting tourists to adjust some of their plans. We will have a
report next.
(COMMERCIAL BREAK)
[16:20:36]
NEWTON: A scorching heat wave in Europe is taking a toll. In France, the government says two people have now died from the extreme heat and at least
300 needed treatment from emergency services. Another two deaths were reported in Northeast Spain as firefighters tackled intense, fast moving
wildfires.
CNN's Melissa Bell has more now on the impact of the sweltering temperatures.
(BEGIN VIDEOTAPE)
MELISSA BELL, CNN SENIOR INTERNATIONAL CORRESPONDENT: All across Europe, scenes like these repeating themselves, people seeking whatever relief they
can from the scorching heat. It is yet another very hot day across huge parts of Europe. The big peak of this heat wave appears to have been on
Tuesday, when records were reached in Spain. One town recording 114 degrees Fahrenheit, 115 in one town in Portugal.
Here in Paris, one of the hottest days on record and the point about these heat waves beyond the toll, we know that two people have died here in
France as a result of the heat yesterday, two deaths reported in Spain as well due to a wildfire there.
Beyond the immediate human toll, the fact that these heat waves are happening so early, there are fears of more wildfires spreading over the
course of the summer. And of course, the main point here is that Europe is not adapting fast enough to the climate change that is happening faster
here than anywhere else on Earth.
The climate is getting hotter in Europe twice as fast as it is anyone else, which has, of course, huge implications, not just for tourism. The Eiffel
Tower closed now for the second day in a row. The point is, these heat waves are happening summer after summer here in Europe. Temperatures the
continent had not been used to when these cities were built, and they need to be re-equipped. Of course that can't happen quickly enough in many
European cities, with the death tolls that we are seeing.
And the difficulty that there is for cities to adapt for what we expect will be another scorching summer here in Europe.
Melissa Bell, CNN, Paris.
(END VIDEOTAPE)
NEWTON: So sweltering heat is impacting habits and decision making for travelers this summer. The European Travel Commission found that climate
awareness is affecting how 81 percent, so four in every five travelers and how they react to European travel. This includes monitoring weather
forecasts more closely and seeking destinations with milder temperatures.
Europe, as you just heard Melissa say, is the fastest warming continent. So some locals are avoiding areas prone to extreme summer heat. This year, 18
percent of Europeans are scheduling their beach holidays during the off season.
Eduardo Santander is the CEO of the European Travel Commission, and he joins me now live from Brussels.
Good to have you here as we continue to watch this heat wave, extraordinary heat wave in Europe. I do want to state the obvious here, tourists make
decisions on where they go based on weather. European heat has gotten a lot of attention, of course. How do you see this affecting Europe? Not just
this year, but in the summers to come?
EDUARDO SANTANDER, CEO, EUROPEAN TRAVEL COMMISSION: Right. Thank you for having me. Good evening from Brussels.
So undoubtedly, tourism relies on predictable weather patterns. Tourism relies on nature, relies on pleasant weather, clear waters, green
landscapes and all this is affected, it is undoubtedly affected by climate change. What we see is that the trend is in the last two or three years,
this is no news. You know, we had heat waves in 2024. In 2023, too and even back in 2021, even after the pandemic, in the first year, first summer
after the pandemic, there was also a heat wave in Europe.
So there is a pattern --a weather pattern, a climate pattern that is remarkably affecting the industry. What we see is that people are planning
their holidays not only more in advance, seeking for a better rate, but also not deciding only where, but also when, when, meaning that they are
looking for a cooler, spaces to spend their holidays, destinations that are more adapted to climate change.
In that extent, we see a change of behavior happening, but that is not totally reflected in the booking pattern as we are expecting another record
summer in Europe, particularly in the Mediterranean basis in the classic tourism spots in Europe.
[16:25:04]
However, there is this trend that we see that when people book they start clicking and looking for alternative destinations in Northern Europe, for
instance, Scandinavia, what we call the so-called phenomenon of cool- cation, so trying to find cooler weather.
NEWTON: Cool-cation, yes, that will be a word many of us learn. And we just saw some of the increase in some of those Nordic countries as well in terms
of destinations. You did, though, also point out that, look, European travel is up. So these destinations still need to adapt to these extreme
heat waves.
Again, though, so many people I speak to, going to Europe can't even be guaranteed that even their hotel will have air conditioning. What is the
starting point here for you in terms of what you tell people who are trying to adapt to this new climate?
SANTANDER: Well, the first step is to get informed and get informed by official channels. Don't rely on just social media posting and people
telling what to do, but rather, you know, to consult with the national tourism organizations and with governmental officials. Because the reality
is, sometimes heat waves happen just for a few days, and then they get forgotten. And, you know, the weather is actually normal is what had
happened actually in the last years.
My appeal to all travelers from North America and beyond coming to Europe this summer is to get ready also to, you know, to definitely, you know,
consult with the forecast days before and avoid, you know, the sunny hours in the midday. And of course, you know, like always if there -- in case of
wildfires, in case of any natural catastrophe, you know, to always follow the official news and obviously all the information and orders that are
given by governmental authorities.
NEWTON: Yes, I think perhaps offering though refunds would also help as well. Right? I mean, some of these cities, some of the reasons that people
just continue to go is because they are not offered those refunds. And so they decide, okay, there is a heat wave, the Eiffel Tower might be closed,
but I am still going to Paris.
SANTANDER: I think this is something that we have also to address to the industry as such. We are trying to educate both demand but also the supply
chains. Supply chains has to embrace agility and flexibility as things are getting complicated and sometimes, you know, as I say, there are angry
customers trying to get a refund and they don't want to come, but they come nevertheless, and there has to be, you know, a choice also, you know, to
rebook or get refunded or at least be given an alternative to another destination for that time.
NEWTON: Yes, it is a very good point. Again, as we've said so many times, the heat is dangerous and can be dangerous. Eduardo Santander, really
appreciate it. Thanks.
SANTANDER: Thank you.
NEWTON: Now, Sean "Diddy" Combs faces a maximum of 20 years in prison after his conviction today. We will take a look at how Cassie Ventura's 2023
lawsuit led to this moment. We will have that after the break.
(COMMERCIAL BREAK)
[16:31:18]
NEWTON: Hello, I'm Paula Newton, and there's more QUEST MEANS BUSINESS in a moment when Ukraine says North Korea will roughly triple the amount of
soldiers fighting for Russia. Tesla just reported its worst year-over-year drop in sales, and its shares soared, though, regardless. We'll tell you
why. But before that, the headlines this hour.
A bail hearing will soon be held for Sean "Diddy" Combs. Earlier, a jury found him guilty on two counts of transportation to engage in prostitution.
Combs was acquitted of more serious charges that could have put him in prison for life.
House Republicans are in the process of procedural voting on President Trump's sweeping domestic policy bill. Mr. Trump and his Capitol Hill
allies are trying to convince party hardliners and moderates to back the legislation. House Speaker Mike Johnson is hoping for a full House vote on
the matter no later than Thursday.
Bryan Kohberger has pled guilty to the murder of four University of Idaho students in 2022. The 30-year-old former criminology student admitted guilt
in a plea deal that eliminates the death penalty. He broke into an off- campus residence in Moscow, Idaho, and killed four people, Ethan chapin, Xana Kernodle, Kaylee Goncalves and Madison Mogen. Kohberger evaded capture
for more than a month. He faces 10 years for a burglary charge as well, and four life sentences for first-degree homicide.
Sean Combs faces a maximum of 20 years in prison after he was acquitted of the most serious charges against him. Those were the counts of sex
trafficking and racketeering conspiracy. He was found guilty of transportation to engage in prostitution. An attorney for Cassie Ventura,
the main prosecution witness, you'll remember, says Combs, should remain behind bars as he awaits his sentencing.
Ventura testified that Combs had sexually abused her for years. Her lawyer says she was glad that the truth came out.
(BEGIN VIDEO CLIP)
DOUGLAS H. WIGDOR, CASSIE VENTURA'S ATTORNEY: Cassie was comforted in knowing that not only has she played a role in the criminal prosecution,
but that she has shined a light on this behavior by Sean Combs.
(END VIDEO CLIP)
NEWTON: Now, the genesis of today's verdict goes way back to November 2023. That's when Cassie Ventura filed a civil lawsuit that accused Combs of rape
and abuse. Several more women then came forward with accusations of their own.
In March 2024, federal agents searched his homes in Los Angeles and Florida. His lawyer at the time called it a gross overuse of military-level
force. A few months later, CNN published a 2016 surveillance video that showed Combs attacking Ventura in a hotel corridor. He was indicted last
September by a federal grand jury, then arrested in New York City. He has remained behind bars ever since.
Elizabeth Wagmeister is outside the courtroom. She sat down with Cassie Ventura's attorney earlier.
Elizabeth, so many thinking at this hour of Cassie Ventura, Combs' ex- girlfriend, and that dramatic testimony. I want the viewers to really know that you are the person who's been at the forefront of this case. Ventura's
lawyer, in fact, credits your reporting on bringing this indictment.
Tell me, how is this case reverberating right now, given all the reactions and especially given that Cassie Ventura went through so much in that
courtroom. You saw her nine, nearly nine months pregnant, and she did, you know, has since given birth to that child. It seemed so traumatizing for
her in that courtroom.
[16:35:10]
ELIZABETH WAGMEISTER, CNN ENTERTAINMENT CORRESPONDENT: Absolutely. And when I spoke to her attorney, Douglas Wigdor, who we just saw, he did tell me
that it was incredibly challenging for Cassie to testify. But it was also cathartic for her, in a way. He said she is really ready to move on.
You may remember that after she testified that both Cassie and her husband released statements. Her husband at the time saying that he is so glad that
this chapter, this horrific chapter, is behind them. And as you said, Cassie has a newborn at home, so she is really focused on her family. Her
attorney told me that she is also in therapy, that this will take a lifetime to heal from. She claims that she endured a decade plus of abuse,
both physical and emotional, and of course, sexual. So she is getting proper treatment. Her attorney tells me that she has a great support
system.
Now, as far as how this is reverberating, I have to tell you, people in Hollywood, in the entertainment industry are really shocked. They really
expected that Sean Combs would have been convicted on more serious charges. What I am hearing from different sources throughout Hollywood is, oh, my
gosh, is he not going to serve time? Is he only going to get a few years?
You have to remember that, of course, this criminal trial is completely separate from the mountain of civil suits that Sean Combs is facing. But in
terms of the court of public opinion, people group this all together. They are thinking of this 70, we have nearly 70 civil suits against Sean Combs
that have come out since Cassie's lawsuit was first filed back in November 2023, as you said.
So there have been horrific allegations, all of which he denies. But Combs has been accused by men, by women, by minors over the course of decades of
drugging and assaulting them. So he has evaded life in prison here. He still is a convicted felon on two federal crimes, but he also is facing
this mountain of civil, civil troubles, quite frankly, ahead of him. So that's the reaction I'm hearing. People are quite shocked that he was not
convicted on more of these charges.
NEWTON: You know, Elizabeth, as you're speaking, we are showing sketches that we have of Mr. Combs basically kneeling down, it seemed almost in
prayer or in genuflection really, I guess, thanking God, and then thanked his family. Perhaps he feels a measure of vindication here, but I do want
to put the spotlight, you know, clearly on the alleged victims here.
I mean, as I said, a lot of your reporting brought this to light. How do people feel about the verdict in light of that? Because, you know, some
victims, given how traumatized they are about bringing their story forward, many may say to themselves, is this really worth it? Is the trauma of doing
this in open court really worth it?
WAGMEISTER: That is absolutely correct. And that is what survivors of sexual assault are thinking today. You know, you think of just Cassie and
what she went through on the stand there. You know, some of her most embarrassing moments that she probably was hoping to take to the grave. Now
the whole world knows. Of course, enduring cross-examination is grueling for any alleged victim who takes the stand.
You know, Aubrey Oday, who she is a member of the girl band Danity Kane, formerly of, that was a band that Diddy created on his MTV show called
"Making the Band." Aubrey Oday has been one of the first people to be speaking out against Diddy long before Cassie's lawsuit even came. She said
that she was not treated well by him, and she posted about this today, saying that her heart is with Cassie.
She said that people in the entertainment industry should not have to go through this sort of abuse, and that she is, of course, one of those people
who wish that he was convicted on more of these charges. So she is just one of many people who have been commenting on this. But, you know, you
mentioned those sketches of Sean Combs kneeling and appearing to be praying. I want to give a shout out to our colleague Kara Scannell, who has
been in the courtroom while Laura Coates and I were out here reacting live to the verdict.
But Kara has been observing Sean Combs, and she said that he was kneeling down. He appeared to be praying that his attorneys were crying. His family
was cheering. He turned around and was clapping at everyone. So for them, they certainly see this as a victory because he evaded life in prison. But
again, he has been convicted on two federal charges to think of Sean Combs, one of the most powerful, wealthy, famous men in the world, for him to have
been in the court at all is a testament to Cassie Ventura, because this investigation would not have been sparked without her, and now for him to
be convicted is quite a stunning turn of events.
It may seem underwhelming to some people, but we have to keep this all in perspective, look at the big picture.
[16:40:04]
NEWTON: Yes. And some have said that the prosecutor showed courage in fact in even attempting to bring these charges against Mr. Combs.
Elizabeth Wagmeister, I thank you. I thank Kara Scannell and Laura Coates. Great team, and you guys have more work to do because at the top of the
hour, again, as we say, the judge will be on the bench and we will bring you all the news from the courtroom in New York City.
Appreciate it, Elizabeth.
Now, still to come for us, Paramount reaches a $16 million settlement with Donald Trump over an interview he didn't like. The media giant is looking
to get the government's approval for a multi-billion-dollar business deal.
(COMMERCIAL BREAK)
NEWTON: Ukrainian president Volodymyr Zelenskyy says details are being clarified over the Pentagon's decision to pause some weapons shipments,
including defense missiles, to Ukraine. This comes after a review of military spending and U.S. support to foreign countries. An adviser to
President Zelenskyy said it would be, in his words, inhumane for the U.S. to stop supplying missiles while the Kremlin is welcoming the move, saying
it will help end the war sooner.
This as Ukraine says North Korea is set to triple the number of its troops fighting for Russia. According to Ukrainian intelligence, North Korea is
sending as many as 30,000 more troops to bolster Russian forces along the front lines. The country covertly sent 11,000 troops to Russia last year.
CNN's Nick Paton Walsh has our story.
(BEGIN VIDEOTAPE)
NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT (voice- over): They brought near ruthless tactics. The rumblings of a war going global. 11,000 North Korean troops helped Russia expel Kyiv's soldiers from
its border of Kursk. But that, it seems, is just the start.
CNN has learned up to 30,000 more may be headed to the front lines, according to Ukrainian intelligence, for use in a summer offensive, with
Moscow hungry for manpower and Pyongyang keen to school its troops in brutal trench and drone warfare.
[16:45:10]
They were first seen here in October, but recently the routes used then could be active again. A troop carrying Laputa ship was seen here on May
18th, the same type of vessel at the same Russian port used in transports last year, experts said.
Ukraine also assesses Russia will refit transport planes like the one seen on the tarmac here again in June at North Korea's Sunan Airport to move so
many North Koreans. Likely air or rail will take them across Siberia to the front line, 10 kilometers east of Kursk, this camp is enlarged in recent
months. Further evidence of North Korean build up.
CNN has geolocated to hear the six-minute video report from a part Korean- Russian correspondent. The report surfaced 48 hours after the Kremlin's first admission of the North Korean deployment.
UNIDENTIFIED FEMALE (through text translation): Such a good bunker. Warm.
PATON WALSH: They are not only training, but appear to have new long-term bunker accommodation and equipment. The tastes of home, red Korean pepper
and homemade propaganda. It says, "Revenge for our fallen comrades."
This Russian instructor says his new trainees are aged 23 to 27.
UNIDENTIFIED MALE (through text translation): The guys arrive in good physical condition. Their fighters are as good as ours. The enemy runs away
first. And the enemy does run, because it's afraid of a gun fight.
PATON WALSH: And there's a translation sheet to get over the language barrier, which meant the first units operated separately from the Russians.
State media has shown videos of both countries now training together. Here, in the same training ground, a Russian shows how to use a shotgun to take
down a drone. Others practicing clearing buildings together. More signs are open. Putin's top presidential adviser, Sergei Shoigu, visiting Kim Jong-un
here for the second time in a fortnight, announcing a thousand mine clearers and 5,000 military construction workers to rebuild Kursk region.
Perhaps a sign Moscow is indeed short of the manpower it has sent mercilessly into the fight, but also that it is not short on allies who
share their ruthless commitment.
Nick Paton Walsh, CNN, London.
(END VIDEOTAPE)
NEWTON: Tesla has just seen a record drop in its sales. We'll take a look at why after the break.
(COMMERCIAL BREAK)
[16:50:30]
NEWTON: Paramount, the parent company of CBS News, is settling a lawsuit brought by Donald Trump for $16 million. Now, Trump sued Paramount over a
"60 Minutes" interview with Kamala Harris during last year's presidential race. He claimed it was edited to make his rival look good. Paramount needs
the president -- President Trump's administration to sign off on a lucrative merger with Skydance Media.
We want to bring in CNN's chief media analyst, Brian Stelter.
Good to see you, Brian. And you have been following this story very closely. I mean, what does a settlement like this mean for CBS and more
broadly for the media, right, that covers the Trump administration?
BRIAN STELTER, CNN CHIEF MEDIA ANALYST: Yes, for the Trump administration and for the president personally, this is a power play. He wants to be able
to wield control and power over media outlets and over newsrooms that are reporting on him. We've seen this over and over again. So this particular
lawsuit, which he filed in his personal capacity before winning reelection, he was able to use it as a form of leverage over Paramount because of
Paramount's pending merger with Skydance.
You know, Shari Redstone, who controls Paramount, has been waiting for many months to get this merger through the Trump administration. The government
has frankly been holding it up. And from the view of Paramount executives, it was being held up because Trump was suing CBS.
Now, Paramount, officially on the record, says there is no connection between today's settlement and between the ongoing merger review process.
The government basically says the same thing, but outside analysts, Democratic lawmakers, press freedom groups, they see a connection. They see
a quid pro quo here. There's even been words like bribery and extortion used in this case.
So going forward, Trump has gained $16 million more for his presidential library. CBS has taken a reputational hit, but now maybe the parent
company, Paramount, can move forward with its multibillion dollar merger.
NEWTON: Yes, and we shall see where that goes. To the journalism of it all, you know, CBS News did not apologize for anything because of course it
claims it did nothing wrong. Perhaps there was some clunky editing there, but that was about it. But where does this take the profession now, in and
of itself, because there's been a lot of turmoil within CBS News about this?
STELTER: I think clunky is the perfect word. What happened at CBS was perfectly standard, reasonable television news editing. Was it awkward? Was
it maybe not the best choice of an edit? Yes. Did it create controversy and confusion? Yes. Did Trump seize on that confusion in order to file a
lawsuit and exploit it for his own purposes? Definitely. And the result here, weeks and months of turmoil inside CBS News.
This has consumed one of Americas biggest and most important television news divisions. Going forward, we're going to see Trump continue to try to
use power and leverage over media outlets. The question becomes fight or fold. It's the same question big universities and law firms have faced. Do
you fight against his attempts or do you fold? In this case, the parent company Paramount, folded, even though the journalists at CBS wanted to
have the legal fight.
And we're going to see this, I think, continue in the months to come. We're all getting used to the transactional nature of Trump's presidency. I
suppose before 2025, this would have been so abnormal, a sitting president suing a major network and getting a settlement payment for really no good
reason. But in 2025, this is the new normal. And as they've covered, as you've all been covered on this program, businesses, corporate America has
had to figure out how to navigate these issues with President Trump.
NEWTON: Yes. And as we've seen, as you pointed out, whether it's the universities or the law firms, even if you win, there is damage that is
done to your business and to your profession.
STELTER: Yes. Yes, that's right.
NEWTON: Brian Stelter, grateful to you. Thank you.
Now, Tesla has reported another plunge in the sales of its electric vehicles. Sales fell more than 13 percent last quarter, the largest year-
to-year drop in the company's history. Think about that. The carmaker has recently faced backlash, of course, over CEO Elon Musk's political
activities and stronger competition, though, as well in that electric vehicle market. Despite the drop in sales, Tesla shares actually were up
almost -- well, actually almost 5 percent today.
Hadas Gold is with me now.
I mean, look, investors cheered this because, you know, it wasn't as bad a drop as they were expecting. But it is really hard at this point in time to
separate the man, Mr. Musk, from the company. There is no turnaround yet obviously. But the one thing is for sure, investors want him to stop
feuding with the president.
[16:55:03]
HADAS GOLD, CNN MEDIA CORRESPONDENT: Yes, as I was once told by somebody in Elon Musk's orbit, they said Tesla is Elon Musk, Elon Musk is Tesla. It is
Tesla that really put Elon Musk on the map as a sort of worldwide figure. And you're right. Wall Street sort of expected these numbers today and it
was actually not as bad as some of the predictions that were out there. And I think that's why you saw the stock price of Tesla behaving as it did
today.
And just to go through quickly sort of why these numbers, why this drop, it is -- it does definitely have to do with politics. We'll get to that. But a
few things to keep in mind is that Elon Musk and Tesla, writ large, they are focusing a lot of their time now on these new projects like autonomous
driving, these robo-taxis in Austin, Texas, the Optimus robot, that's really where they see their future less so in the sort of car that you
deliver to a consumer who drives it every day.
As you noted also, there are competitors, especially in Asia, that are picking up steam. And then there is, of course, the giant, you know
elephant, Trump-sized elephant in the room, which is the politics, the fact that over the last few months, Elon Musk has managed to alienate any --
like the Democratic base, anybody who aligned themselves with the Democrats, who's more liberal, and now recently is starting to potentially
alienate himself also from Republicans, from fans of President Trump.
And, you know, while investors would love for Elon Musk to just completely step away from politics, say goodbye to all of it and focus on his
businesses, as we've seen over the last few days, it seems as though he is doing the exact opposite. He is running straight into politics. He has said
he is going to support primary challengers to any member of Congress who's talked about cutting government spending, but then voted for this big
domestic policy bill, and he's even said he's going to start a completely new political party if that is -- that is the complete opposite of stepping
away from politics.
That is getting as deeply entrenched into political -- into politics and political history as you possibly could. I'm sure there's a lot of Tesla
investors out there who are saying, oh, no, please don't.
NEWTON: For sure. For their stock portfolio, among other things.
Hadas Gold, you'll continue to watch this. Appreciate it.
Now, a mixed day on Wall Street after the drop in private payrolls and a U.S. trade deal with Vietnam. The Dow closed slightly lower. The S&P,
though, look at them, rock on. They closed at record highs.
We do want to have a look at some of the Dow components. Nike shares up 4 percent after President Trump announced a trade deal with Vietnam. U.S.
tariffs on Vietnamese goods will be lower than Trump first promised. There, Microsoft slightly lower. It's cutting about 9,000 jobs to pay for A.I.
investments. UnitedHealth, down 5.7 percent after a competitor pulled its guidance due to industry wide struggles.
And that is QUEST MEANS BUSINESS for today. I'll be right back here tomorrow. I'm Paula Newton in New York. "THE LEAD WITH JAKE TAPPER" is
next.
(COMMERCIAL BREAK)
END
