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Quest Means Business
White House Weighs Federal Layoffs Amid Government Shutdown; Interview with Rep. Lloyd Doggett (D-TX); U.S. Supreme Court to Hears Case Involving Fed in January. Federal Jobs and Inflation Reports Face Possible Delays Amid Government Shutdown; Mexico's First Female President Faces Off Against Trump, Cartels in Her First Year; Youth-Led Demonstrations Across Morocco Turn Violent; A.I. Generated "Actress" Sparks Hollywood Backlash; Peloton Announces New A.I. Powered Products; Famed Conservationist Jane Goodall Dies at Age 91. Aired 4-5p ET
Aired October 01, 2025 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:17]
JIM SCIUTTO CNN HOST: Well, U.S. markets seem to be shaking off shutdown worries. The S&P 500 hit another new record high. Those are the markets and
these are the main events.
Hours into a U.S. government shutdown, The White House says layoffs of federal workers are imminent.
The U.S. Supreme Court lets Fed Governor Lisa Cook keep her job for now.
And Hollywood stars are speaking out about an A.I. actress who is capturing the industry's attention. Real actors, understandably not happy.
Live from Washington, it is Wednesday, October 1st. I'm Jim Sciutto, in for Richard Quest and this is QUEST MEANS BUSINESS.
Good evening to you.
Tonight, The White House says it is preparing to lay off federal workers in response to the government shutdown. Funding for the U.S. government lapsed
at midnight, and the two parties appear at an impasse, with health care spending the main point of contention.
Vice President J.D. Vance says The White House has not yet made a final decision on layoffs. Press Secretary Karoline Leavitt says if federal
workers lose their jobs, she claims Democrats are to blame.
(BEGIN VIDEO CLIP)
KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: Well, sometimes you have to do things you don't want to do and it is because the Democrats have put us
into this position. If the Democrats did not vote to shut down the government, we would not be standing up here talking about layoffs today,
we'd be talking about all the other news stories going on in the world and in our country. We'd be talking about all of the great things that this
administration is doing to uplift Americans across the country.
But unfortunately, the Vice President of the United States and I have to come out here today to talk about a government shutdown that the Democrats
put us in this position.
(END VIDEO CLIP)
SCIUTTO: The U.S. government is still carrying out functions deemed essential, such as Defense and Homeland Security, however, most federal
workers will not be paid. Some agencies will struggle to operate, for instance, the FDA's ability to provide public health oversight will suffer.
And critically, there will be no U.S. Jobs Report on Friday. That's the number investors use to gauge the labor market.
On Capitol Hill, Arlette Saenz.
J.D. Vance said today that some moderate Democrats might be wavering. Do you see any signs of that on the Hill?
ARLETTE SAENZ, CNN WHITE HOUSE CORRESPONDENT: Well, right now, these efforts to avert a government shutdown really are at a standstill and
Republican and Democratic leadership, at least, are digging in on their positions.
Republicans still want Democrats to get on board with that seven-week stopgap funding bill, while Democrats want Republicans to come to the
negotiating table on health care, things like extending the Obamacare subsidies that are expiring and reversing Medicaid cuts implemented by
President Trump.
But there have been discussions behind-the-scenes between lawmakers of both parties who want to find a way out of this shutdown, that kind of spilled
into public view earlier today on the Senate floor, when there was a group of bipartisan senators, Republicans and Democrats, huddling for a lengthy
period of time talking about different options that they might be able to consider.
One of the things that a lot of lawmakers coming out of that meeting talked about were those Obamacare subsidies, and especially the fact that if those
subsidies are not extended, that health insurance premiums are going to spike for a lot of people in this country. And October is the month when
Americans will start to learn by just how much their health insurance would increase next year if those subsidies are not renewed.
So Democrats are hoping that some of those warning signs for senators from conservative states that that might be something to push them to the
negotiating table as it relates to health care.
But so far, Senate Republican leadership is insistent that the only way to reopen the government is by getting on board with that seven-week plan, and
after that is when negotiations would be able to happen.
So still a lot up in the air. I will say that many senators are actually leaving town tonight, as there will not be votes in the Senate tomorrow due
to the Jewish holiday of Yom Kippur.
Senate GOP leadership is allowing people to go back home for that Jewish holiday, and they are set to return on Friday, which is the earliest that
they could try to reopen the government. But it is likely that the impasse could last much longer than that. There still is no immediate resolution,
no clear offramp for these lawmakers, and now they are potentially starting to have to figure out what the long term impacts of this shutdown might be,
as the White House is warning that those mass layoffs could begin in the next day or two.
SCIUTTO: Of course, there were a lot of those layoffs earlier in the year as well. Arlette Saenz, thanks so much.
Vice President Vance says Republicans are willing to negotiate on health care, but only after government funding is restored. House Democratic
leader Hakeem Jeffries says the health care discussion must take place now.
(BEGIN VIDEO CLIP)
REP. HAKEEM JEFFRIES (D-NY): Tens of millions of Americans are about to experience dramatically increased premiums, co-pays, and deductibles
because of the Republican unwillingness to extend the Affordable Care Act Tax Credits.
Hospitals, nursing homes and community based health clinics are closing all across the country, including in rural America, because of what Republicans
have done.
(END VIDEO CLIP)
SCIUTTO: Congressman Lloyd Doggett is a Democratic congressman from the state of Texas.
Congressman, thanks so much for taking the time.
REP. LLOYD DOGGETT (D-TX): Good to join you, Jim.
SCIUTTO: So first question, J.D. Vance says, hey, just fund the government now and we will talk about health care later. Would you trust Republicans
to follow through on that?
DOGGETT: That's really one of the biggest problems we have. We have a totally untrustworthy President, his messenger, Mr. Vance, the same. Their
approach to negotiations is give us everything we want and we will let you beg for whatever you want later. That won't work.
I view this as a life and death issue. The University of Pennsylvania has said that up to 51,000 Americans could lose their lives each year as a
result of the cutbacks that the Trump administration has made in health care. We think this issue is essential and the Republicans control every
aspect of our government. We are simply saying you control the shutdown, and if you want to end it, sit down and talk with us and lets find some
common ground.
SCIUTTO: Republicans have claimed that this is health care for illegal aliens. We factchecked that as false. But Republicans do make a point that
stands up, which is that these premiums were expanded back in 2021 during the COVID pandemic. And of course, the pandemic is over now. So they make
the argument that they don't need to be as high today as they were then. What's your response to that?
DOGGETT: Well, I think it is subject to negotiation as to exactly how these credits are handled, but I can tell you that the families across America
and in my hometown of Austin, who will get these notices within just a few days, premiums spiking, perhaps as much as 75 percent, they don't think
that there is a problem here with providing some relief to them and that's what we are trying to do.
I know that the dangers of people losing their lives from not having access to health care, from my work on the Health Subcommittee, we just can't let
that happen. We have been asking Republicans to deal with this all year long. They have refused to do so. Hopefully now with the shutdown finally
occurring, they will come to their senses and join us and try to find a common sense solution.
SCIUTTO: Do you believe that this is part of a longer term effort by the GOP to straight up end Obamacare?
DOGGETT: Well, you know, as you well know from your reporting through the years, Jim, they tried to do that over 60 times to repeal it. This is a
way, not only with the cutting of the tax credits, but other things they have done to sabotage Obamacare that they do seem to be having the same
goal, to never abandon it. And I think the American people have made it very clear through the years, as more and more have turned to the
marketplaces to give them access to a family physician and vital medications that they like this program.
And so they're speaking out to their member, Republican and Democrat can help us in the shutdown and get the relief that we need. I will add,
though, that as important as this is and as big as the shutdown is and a concern of everyone, I don't think it is the most important event that
necessarily happened yesterday.
I am greatly troubled by President Trump declaring to 800 officials in our military from all over the globe that they need to focus on the enemy
within, and that he would use military forces against American citizens to accomplish his objectives.
SCIUTTO: I wonder how far you believe the President was defining that enemy within, because oftentimes he will describe it purely as invading
immigrants. Right? Migrants or a crime issue. But do you believe he was at least opening the door to criminalizing his opposition?
DOGGETT: That's exactly what he is doing. The military, was not needed, and local officials said, don't send them in Los Angeles, in the district of
Columbia, in Memphis, in Chicago. He is trying in Portland.
He is trying to normalize and make us accept the use of the military always waving this immigrant issue and as you know, and pointed out in your
factcheck, that's a phony argument on the shutdown and on health care. It is also a phony argument for him sending out the military.
[16:10:10]
He wants, as he said to his former chief-of-staff, he wants his military to be more like Hitlers and the kind of military that he wants is one that's
pledged to him, not to the Constitution, which is what our officials take their oath to.
I am concerned that bit by bit, he is eroding democracy and seeking the kind of government that Hungary, with Orban or Erdogan, who was in the
capital recently from Turkey, he wants that kind of authoritarian government and Americans have to stand up and reject it.
One way to do that is with what we are doing to protect their health care and another is their involvement in next year's election to give us a check
on this President who wants unlimited power and has a Republican majority that seems willing to let him do whatever he pleases?
SCIUTTO: Yes. I mean, to your point, for folks who may not be aware, some of Trump's own former advisers say that he complained that Trump's
generals, rather, that Hitler's generals were more loyal to him than Trump's "generals" were to Trump himself.
I wonder, given you're in the state of Texas, where the GOP run state legislature is redrawing the districts there, and this is a national plan
and with White House direction to do so in a number of red states. What does that going to mean for the Democratic Party, in your view, in the
midterms? Are enough Democrats going to be redistricted out of their seats so that, in effect, you can't win the midterms?
DOGGETT: You know, I think most people don't realize that the midterms have already begun because Trump is determined to sabotage them and assure that
people don't have the choices they think they have in this election. It is one of a number of things he is doing, like asking to see voting machines
and establishing a national voter roll that he can follow. All of these things designed to undermine our efforts to get the extra three votes, we
need to have a check on him and raise that number to 10 or 13.
We are seeing this happen in Kansas, in Ohio, in Indiana. It has happened in Missouri and Texas already. I think we can overcome it, but we have to
overcome it by winning some of these districts that were designed by Trump for Trump in Texas, and to pass the referendum in California so that there
is at least some balance and some opportunity to get some additional Democrats to counter all of these Republicans that are being foisted off on
the country.
Ultimately, I think Americans will recognize that to preserve our democracy, to address the kitchen table type issues, the soaring prices
that have occurred under Trump for just about everything with his tariff taxes and his other suppression of freedom, they will respond, and we will
elect a Democratic House and preserve our democracy and push back against Trump's drive for authoritarianism.
SCIUTTO: We will be watching. Congressman Lloyd Doggett, thanks so much for joining.
DOGGETT: Thank you.
SCIUTTO: Well, the U.S. Supreme Court has agreed to weigh in on quite an important case concerning the Federal Reserve's independence.
President Trump wants the authority to fire Fed Governor Lisa Cook. A lower court blocked him from doing so, ruling that he likely lacked sufficient
cause. The Supreme Court has now agreed to hear arguments from both sides in January.
In the meantime, justices have allowed Cook to remain on the Fed's governing board for now. She denies allegations of mortgage fraud, argues
that no court has reviewed them.
Joining me now, Joan Biskupic, our chief supreme court analyst. So as you know better than me, the court has given Trump broad power to fire leaders
of other agencies, such as the FTC, National Labor Relations Board. How is the Fed -- how does it differ legally and historically from those agencies?
And do you see the court seeing a difference?
JOAN BISKUPIC, CNN SENIOR SUPREME COURT ANALYST: The court is seeing a difference. First of all, in the way that it is treating Lisa Cook, for
starters, irrespective --
SCIUTTO: Letting her stay.
BISKUPIC: Letting her stay because everyone else had had to leave and it is -- she is coming up there in a different -- with different grounds saying
that, there is no reason to even fire me irrespective of the kind of independent agency we are talking about here. And Donald Trump's lawyers
are saying, no, we get to fire her because of the mortgage fraud that has not been proven in any way.
SCIUTTO: A lot of questions, in fact, about that allegation.
BISKUPIC: Yes. Exactly right.
So just in terms of her personal case, they're treating it differently. But the broader picture, Jim, you're exactly right to focus on will this
Supreme Court view the Federal Reserve differently than its viewed the Federal Trade Commission, the National Labor Relations Board, the Consumer
Financial Protection Board, agencies where it is already suggested Donald Trump will have more authority to get rid of the top official.
Now, that is not the actual question before the justices in what they're going to hear in January. But there is a prelude case in December where
they're actually going to look at the Federal Trade Commission structure and look at how easy or hard it should be for Donald Trump to get rid of
the top official there.
And I think that's where we will first get an indication of whether they are going to treat the Federal Reserve differently, because, as you know, a
few months ago, they suggested that they do view the Fed differently because it was set up differently because of its major importance to how
our economy runs.
[16:15:31]
You know, obviously, in setting up interest rates, but also just as a body that keeps the equilibrium economically in America. I think the phrase they
used was it is a distinct historic tradition. It is uniquely structured as being different.
So I think in that case, we might see some suggestions.
SCIUTTO: It was intended to be deliberately nonpolitical, right, with terms transitioning over or transcending rather elections.
BISKUPIC: Always, yes. These other agencies that are under fire by him also were set up to be, you know, bipartisan and not political also.
SCIUTTO: This is a court which, as you know, again, better than me, has had a very expansive view of presidential power, particularly President Trump's
power. I mean, do you see them coming to some kind of grand decision here, which allows him a lot of leeway on everything except the Fed?
BISKUPIC: That's a real possibility. As you may know, in the Lisa Cook case, several members -- former members of the Federal Reserve, including
like Alan Greenspan, Janet Yellen, Ben Bernanke have all said essentially keep the Fed independent. Keep your hands off of this. And I think that
that resonates with this court. The idea that they could be entering a really thorny, difficult issue that could affect the markets in a way that,
disrupting things at the Federal Trade Commission might not be as -- have the kind of repercussions nationwide.
But we won't know until we hear both these cases, the December one I was talking about and the February one and the February -- the January one,
excuse me, the January one with Lisa Cook, the question they're taking up is not will the Fed be different? It has to do with Lisa Cook herself. It
is just that they could eventually give us some really important signals.
SCIUTTO: Some broader guidance.
BISKUPIC: Yes.
SCIUTTO: Understood.
Joan Biskupic, thanks so much for joining us, as always.
BISKUPIC: Sure.
SCIUTTO: Well, Elon Musk has opposed Wikipedia for years, so he is making his own website now to rival it. Sure, he has the money to do so. More
information on Grokipedia, next.
(COMMERCIAL BREAK)
[16:20:12]
SCIUTTO: Elon musk says his A.I. company is now building a rival to Wikipedia. He is naming it after his A.I. chatbot, Grok, and touting it as
a massive improvement, in his words. Musk has long accused Wikipedia of liberal bias, referring to the crowdsourced site as "wokepedia."
Hadas Gold is in New York.
I mean, let's be honest, Elon Musk's personal record for balanced viewpoints, I mean, it is not perfect. So what's the -- how is Grokipedia
going to work?
HADAS GOLD, CNN CORRESPONDENT: Well, we don't have a ton of information on exactly how it is going to work and most importantly, namely is how it is
going to be written. Because, as you noted, Wikipedia is crowdsourced. Absolutely anybody can be an editor on Wikipedia, and it is very public.
You can see the history of all the edits that were made to the article that you are reading.
Not clear yet from Elon Musk whether Grokipedia will also be crowdsourced, but we have an indication it is likely going to have at least be partly
written by Grok, the A.I. Elon Musk was posting tweets calling on people to come join Grok, come join xAI and help them create Grokipedia.
And as you noted, Elon Musk has a long history of having an issue with Wikipedia. He believes it is woke. He believes that it parrots legacy media
propaganda and many conservatives have had issues with Wikipedia over the years.
Part of the issue is because Wikipedia has sort of a list of sites of places that you are not really allowed to, but you can source from and cite
from, and certain conservative news outlets like Breitbart News, for example, are considered not trusted news sources.
Now, there are also liberal left leaning sites that are also considered not trusted news sources, but for a lot of conservatives, they believe that
this makes Wikipedia as it is today, kind of inherently biased against conservatives.
Now, there have been other attempts to create Wikipedia alternatives. There was a Conservapedia that came out in 2006, obviously didn't gain as much
traction as Wikipedia, which if you search on Google today, it is like the top source. It is often used to train A.I., and that's why it is very
important for Elon Musk, because if you're trying to change the narrative, if you're trying to control the information ecosystem, creating an
alternative to Wikipedia is a good place to start.
And if you believe in Elon Musk's view on the world, which is very, you know, anti-woke and he has a certain viewpoints on certain things, you can
kind of surround yourself in this information bubble.
You have a social media site on X, you have an A.I. chatbot in Grok. You're going to have Grokipedia soon, and soon it is all going to be integrated
into your Tesla car.
And so, you know, this is different though than the other attempts to create alternatives to Wikipedia because, as you noted, he is the richest
man in the world and he has a lot of ability and capability and a giant megaphone to create the sort of alternative to Wikipedia.
But we will have to wait and see what it looks like, because even with Grok, as much as Grok, often parrots Elon Musk's point of view, Grok
himself, I mean, Elon Musk will talk about how he gets mad at Grok for what he believes is like parroting legacy media, which Grok says in itself are
trusted, verified sources.
SCIUTTO: Way to go, Grok. Hadas Gold, thanks so much.
Well, Tesla, speaking of Elon Musk is raising lease prices for U.S. buyers now that E.V. tax incentives have inspired Tesla used to advertise the
federal tax credit on its website. The Model Y listing here is from last summer with that $7,500.00 incentive. That incentive, however, ended
Tuesday because Congress passed legislation ending it, now, leasing its best-selling car has gotten more expensive while demand for electric
vehicles is showing signs of a slowdown.
Ross Gerber is with me, CEO of Gerber Kawasaki Wealth and Investment Management.
Good to have you, Ross.
I mean, I suppose this is -- they've got to raise the lease prices because the tax credit is going away, but it is a tough time for Tesla to be
raising prices, isn't it? With downward pressure on sales.
ROSS GERBER, CEO, GERBER KAWASAKI WEALTH AND INVESTMENT MANAGEMENT: A hundred percent. I mean, you're already struggling to sell cars and
actually the expiration of the credits helped drive a lot of people into buying electric cars over the last 30 days. So it has been a great month
for the electric vehicle business and tesla because of the expiration.
But on the other side of this is a cliff where demand just ends and that's what I am concerned about because obviously, we have just tremendous need
for clean energy vehicles and now there is no incentive to buy one, so that just makes sales go down. That's as simple as that.
SCIUTTO: Does it kill them, though? I mean, there are other reasons people buy electric cars. I've got one, it is good to drive, right? You don't have
to pay for gas.
GERBER: They are a better car, yes.
SCIUTTO: That kind of thing, yes, does it -- I mean, are you projecting that not just Tesla, but all E.V. sales in the U.S. fall off a cliff?
GERBER: Yes, and in fact, many of the companies that are selling E.V.s now don't really want to be selling E.V.s. It was just because of the
regulatory credits and the government's push to force them to sell E.V.s that they came up with some great E.V.s like BMW, for example.
[16:25:10]
But they are lower margin cars than gas cars. So these companies care mostly about maximizing their profit, not protecting the environment and
they're going to go right back to doing that.
So a lot of the companies are now like basically dumping all the E.V.s they have at cheap prices, like I heard Mercedes is like giving away the
electric G-Wagon and it is like -- and it sucks because they're just basically not going to be replacing them with new electric vehicles.
So this is a horrible day, you know, when you're thinking about what is great for the environment, what's great for our country, is supporting new
technology vehicles and now we are ceding this business to China and this is something that is an unintended consequence of this action, is that we
are basically ceding the electric vehicle business to China, and they will be the global leader for ever to come.
SCIUTTO: Yes, I mean, much like ceded, I don't know, solar power panels and so on.
I mean, is the U.S. an island when it comes to a falloff in E.V. demand?
GERBER: Well, E.V. demand is actually pretty strong in China and in Europe, and they're over 25 percent of the vehicles being sold in foreign countries
are E.V.s and many of the countries, including China, are all in on the transition to electric vehicles because there is a lot of logical reasons
besides climate change. It is also -- they are just better vehicles. They perform better, they are cheaper to maintain and countries like China have
to import all their oil and they have to pay for this and it is quite expensive.
So, you know, when you're driving an E.V. for long enough, it is like you forget that you're spending three to five thousand dollars a year on oil,
that you don't have to spend when you have an E.V.
So I think this transition will continue in the rest of the world. But as I said, what we are doing here in America is we are ceding the industry to
the Europeans and the Chinese. The one -- the industry we created and we dominate we are literally like destroying. It is the stupidest thing we
could possibly be doing if we are trying to beat China in the technology race.
SCIUTTO: Yes. I mean, is that happening as well with other renewables? I mean, we know we have a President and a party here in this country in power
that are openly hostile to renewable energy across the board. The President has a particular issue for some reason, with wind power.
Are we seeing those industries get squeezed similarly?
GERBER: Not the same in that these industries are much more reliant on interest rates, because when you put in solar panels on your house, you're
borrowing to do that and so it was actually worse, you know, Fed Chairman Powell did by raising rates substantially for the solar industry than
anything Trump has done.
I think people want to put solar on their houses. There is a hundred reasons why, but it has to be affordable. So interest rates matter more for
that than per se the credits, but the credits were a huge incentive as well, up to 30 percent, and solar and battery systems of your cost would
come from that.
But I think for most people today and me as a survivor of the Palisades Fire, I can tell you, you want to be off the grid. You want to have your
own power sources. You want to have your own backup battery supply, because what happens is the government just turns off the power and there is
nothing you can do.
And so solar power being off the grid is a crucially important thing for Americans to consider for their home.
SCIUTTO: That is interesting. It is not a benefit you often hear about when speaking about solar power.
GERBER: Yes, well, until you're fighting a fire yourself and you have no power for two months, you're like, you know, it would be nice if I had
solar.
SCIUTTO: Yes. I hear you.
Ross Gerber, always good to have you on. Thank you so much.
GERBER: Yes. Thank you.
SCIUTTO: Coming up, the government shutdown means economic policy makers are working increasingly in the dark. We are going to discuss what private
indicators, however, are saying about the state of the job market and the economy.
(COMMERCIAL BREAK)
[16:31:55]
SCIUTTO: Hello, I'm Jim Sciutto. There's more QUEST MEANS BUSINESS in a moment when we'll discuss how an A.I. actress is sparking backlash among
Hollywood's most famous real life stars. And Peloton is hoping a new line of products will pull the company out of its post-pandemic slump. Before
that, the headlines this hour.
The U.S. government shutdown will last at least until Friday. The Senate is taking a break on Thursday, and the House not set to return until next
week. The White House says some federal workers will be laid off within one to two days. Democrats and Republicans are blaming each other for the
stalemate on funding.
Rescue efforts are underway in Indonesia to reach people trapped under a collapsed school. Scores of boarding school students have now been trapped
for two days there. Officials in East Java say time is running out to reach those still alive. At least 91 people remain missing. Six have died
already, 100 others hurt.
The conservationist Jane Goodall has died at the age of 91. Her work revolutionized the study of primates, in particular chimpanzees by focusing
on their behavioral and emotional connections. Her institute says she passed away due to natural causes in California during a speaking tour
there.
Returning now to our top story, the U.S. government shutdown and the blind spot it is creating at a time of economic uncertainty in this country.
Friday's jobs report will likely be delayed, and a longer shutdown could affect this month's reports on inflation and GDP growth. Without those
reports and that data, decision-makers will have to rely on private economic data. And just today, the payroll provider ADP said the U.S. lost
32,000 jobs in September.
Its numbers historically don't necessarily match the government. Still, the ADP report does give an indication of where the labor market is heading,
and its chief economist says the trend is clear. Hiring momentum has slowed down.
Vanessa Yurkevich is in New York.
And I imagine, Vanessa, we should take this report with a series of other reports that have at least shown a relatively cold jobs market.
VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Yes, a slowing jobs market, much slower than some had expected. And we really rely on this
private payroll report, but also really on these government reports that we get on the first Friday of every month and looking like we're not going to
get it this Friday. So it gives economists and the Federal Reserve a lot of guesswork to do.
In terms of the cost to the overall economy, economists have looked back to the previous government shutdown, which showed that the impact was about $3
billion in economic impact from 2018 to 2019, when we had that shutdown for about five weeks. And then in terms of what the Congressional Budget
Office, who provided that number, is predicting for this government shutdown, you're talking about a weakening in CEO and Consumer Confidence
because folks are not getting paid. And so they're not going to be spending as much.
[16:35:07]
You also have the possibility of 750,000 furloughed workers every single day, according to the Congressional Budget Office, which totals about $400
million in lost wages. And then we've heard from the administration including the president, the vice president, about possible mass federal
layoffs. Those are not furloughs. Those are permanent firings.
And then, of course, that delayed data on jobs and prices, which includes inflation data. And also we've heard from the Commerce Department that
they're not going to be putting out reports in the near future as long as this shutdown goes on, which is going to impact GDP. We were going to be
learning about the last quarter's GDP results.
But really, Jim, we saw markets earlier today and much of the day really kind of act a little bit muted in response to this government shutdown. And
that is largely because a government shutdown affects main street more than Wall Street. And investors right now are really still pricing in a rate cut
later this month from the Federal Reserve, even though the Federal Reserve will have much less data to parse through data, Jim, that has been so
critical for the last nine months.
We've heard from Jerome Powell that they were looking at both inflation data and the jobs market so closely because they wanted to make sure that
inflation wasn't heating up, and they wanted to make sure that the jobs market was, in fact, cooling before they started to cut rates. Their first
rate cut of the year. So nine months since the last one, just happened recently. The next one, investors believe, is still going to happen.
But really, all they have to go on is what we've seen up until last night and including the private sector payroll data that we got that showed a
decline in jobs in the month of September. And actually, Jim, a revision for August.
SCIUTTO: Yes.
YURKEVICH: Initially, they reported that there were 54,000 jobs, added a revision to the downside of 3,000 jobs. So imagine showing up to work
having your roadmap taken away from you and trying to make decisions. That is what the Federal Reserve will ultimately be left with if this shutdown
drags on weeks, even a month. We know at least it's going to go on until this Friday, Jim.
SCIUTTO: Yes, and of course a few weeks ago the administration attacked job numbers when they did come out, but they didn't like the numbers, so you
have a whole bunch of challenges.
YURKEVICH: Well, they won't have anything to attack now on Friday, Jim.
SCIUTTO: Exactly. Vanessa Yurkevich in New York, thanks so much.
YURKEVICH: OK.
SCIUTTO: Well, in Mexico, an historic year of firsts for the country and its president, Claudia Sheinbaum. But as Valeria Leon reports, her
inaugural year in office has had its challenges and controversies.
(BEGIN VIDEOTAPE)
VALERIA LEON, CNN CORRESPONDENT (voice-over): Mexico's first female president taking office a year ago.
CLAUDIA SHEINBAUM, MEXICAN PRESIDENT (through translator): I call on you to keep making history.
LEON: Claudia Sheinbaum elected with more than 60 percent of votes, a historic win, making her the successor to Andres Manuel Lopez Obrador. The
two have been aligned on much. But since taking office, her security policy has been quite different. Analyst Luis Carlos Ugalde says the jury is still
out on whether that shift has translated into better results.
LUIS CARLOS UGALDE, POLITICAL CONSULTANT (through translator): There is a strategy of pursuit, confrontation, of restricting the spaces that
organized crime had gained.
LEON: Sheinbaum has been recognized for her firm stance in tense negotiations with her U.S. counterpart, Donald Trump. Most recently, she
secured an agreement with the U.S. to curb illegal flow of weapons and a pause on tariffs.
SHEINBAUM (through translator): We have the best possible agreement compared with other nations.
LEON: Still, at home, corruption has tarnished her achievements. A scandal in the higher echelons of the country's Navy saw 14 people arrested. There
have also been U.S. accusations that her government and the country's political class as a whole are in the clutches of the cartels. The latest,
when two government officials went on the run after being accused of leading a drug trafficking group. Their boss, a powerful senator in
Sheinbaum's own party.
Yet while organized crime may be hogging the spotlight, for some Mexicans there's another crucial issue.
YURIKO GUEVARA, MEXICO CITY RESIDENT (through translator): There's also the question of whether she herself is embracing different aspects of the
system that silence the very struggle.
LEON: If corruption and crime weren't enough, economic issues dominate voters' concerns. With Mexico still very much dependent on a good
relationship with the U.S., the challenge of safeguarding its free trade agreement with both the U.S. and Canada will remain President Sheinbaum's
greatest task.
[16:40:01]
Valeria Leon, CNN, Mexico City.
(END VIDEOTAPE)
SCIUTTO: Youth-led protests have turned violent across Morocco after several days of anti-government demonstrations. Gen Z demonstrators are
demanding better social services. They claim the Moroccan government is instead focusing on the FIFA World Cup being held there in the year 2030.
The protests in Morocco mirror similar unrest in other countries, which has brought about real change in several nations, as Hanako Montgomery reports.
(BEGIN VIDEOTAPE)
HANAKO MONTGOMERY, CNN CORRESPONDENT (voice-over): Moroccans taking to the streets and demanding an end to corruption, better health care and
education reforms. The nationwide youth-led protests have rocked the North African nation for several days.
This video shows a police van suddenly ramming into demonstrators in the city of Oujda. The fate of those involved remains unclear.
The government issued a statement this week saying it's open to dialogue, quote, "within institutions and public spaces to find realistic solutions.
That's according to Reuters.
Over in Madagascar in East Africa, another movement led by young people has swept the island nation. This time over water and power cuts. And not even
the president dissolving the government has put a stop to the unrest.
The United Nations says at least 22 people have been killed, and more than 100 injured. But the government rejects those numbers.
Morocco and Madagascar are the latest in a number of youth-led uprisings in different parts of the world. In Kathmandu, Nepali Gen Z led tens of
thousands of protesters into the streets two weeks ago, furious over government corruption. In Indonesia, protests swelled after 21-year-old was
killed by police in August. Elsewhere, crowds took to the streets in the Philippines and France. And in several of these protests, this skull flag
has been raised.
So what does the flag mean? Well, it comes from Japan's best-selling manga, "One Piece."
(Voice-over): In the story, the flag is the jolly roger of the straw hat pirates who don't just hunt treasure but also fight oppressive powers and
demand freedom. For protesters, that message hits home.
UNIDENTIFIED MALE (through text translation): This is a symbol of warning for the government. So they have to look at their people. Many Indonesians
are hoisting the "One Piece" flag because they want the government to listen to them.
MONTGOMERY: The protests around the world may have different origins, but the anger is the same. That's why young people have turned this skull flag
into a global banner of defiance and freedom.
Hanako Montgomery, CNN.
(END VIDEOTAPE)
SCIUTTO: Actress in Hollywood are furious about this A.I. generated actress with the name Tilly Norwood. Of course it's all fake. Her creator says
she's not a human replacement, but a piece of art. We're going to have more on that coming up.
(COMMERCIAL BREAK)
[16:46:09]
SCIUTTO: Now to Hollywood, where real-life human actors are understandably outraged over this.
(BEGIN VIDEO CLIP)
TILLY NORWOOD, ARTIFICIAL INTELLIGENCE ACTRESS: Let's get to know each other. And thanks for watching.
(END VIDEO CLIP)
SCIUTTO: Totally not real. That's A.I. actress Tilly Norwood, created by A.I. startup Particle Six. The character made her, quote-unquote, "acting
debut" at a film festival over the weekend after posting on Instagram for months about her hopes of landing a gig. SAG-AFTRA and Hollywood stars are
condemning the project. Creator Eline Van Der Velden defended her work, writing, "She is not a replacement for a human being, but a creative work,
a piece of art."
Clare Duffy is in New York.
Well, I can understand why actors are concerned because certainly cheaper than paying an actor. But I thought that the strike was settled in part by
giving guarantees that, you know, A.I. wouldn't take human jobs. So how is this happening?
CLARE DUFFY, CNN TECH CORRESPONDENT: Yes. I think the challenge here is that the strike was, you know, between the actors' union and the movie
studios and the streaming, you know, companies who agreed to some protections around the use of A.I. content. But that doesn't necessarily
mean that startups like this or anybody else couldn't create these very compelling, real-looking A.I. actors or actresses.
And this does speak to the concerns that many in Hollywood, actors, but also writers and directors and musicians, have had, that their work and
their likenesses may have been trained -- use to train these A.I. systems, and that then those A.I. tools could go on to replace them. To your point,
you can imagine why a Hollywood boss might say, well, we don't have to fly somebody out. We don't have to put them up in a hotel. We don't have to pay
them for a project. We maybe just want to use this A.I. actress.
And I just want to give you a sense of some of the backlash, some of the comments that Hollywood actors have posted on this Instagram page. Cameron
Cowperthwaite said, "This is incredibly thoughtless and frankly disturbing. I hope this backfires in every way humanly and well, not humanly possible."
Mara Wilson says, "You didn't even make this. Hundreds of real workers, real photographers, camera operators, heck, even farmers made this. You
took their work and pretended it was yours." And Sophie Turner simply says, "Wow. No, thanks." And then on top of that, we have also heard from the
actors' union SAG-AFTRA, which said, "SAG-AFTRA believes creativity is and should remain human centered. The union is opposed to the replacement of
human performers by synthetics."
Now, as you alluded to there, the creator of this A.I. actress, Tilly Norwood, says that they didn't necessarily mean to replace human actors.
I'll read a bit more of that statement from Eline Van Der Velden, who's the founder of Particle Six. She said, "To those who have expressed anger over
the creation of our A.I. character, Tilly Norwood, she is not a replacement for a human being, but a creative work, a piece of art. Just as animation,
puppetry or CGI opened fresh possibilities without taking away from live acting. A.I. offers another way to imagine and build stories."
But I have to imagine that's cold comfort to the actors who feel like this wouldn't exist if not for their work, and that they weren't necessarily a
part of the conversation. They weren't compensated when their work was used to train these kinds of A.I. systems.
SCIUTTO: I mean, it's like you read that statement, it sort of sounds like every other unwitting bad guy in a sci-fi movie about, you know,
synthetics. And, oh, it's a work of art, you know? And oh, my gosh. Anyway, well, life imitates art.
Clare Duffy, thanks so much.
Peloton is unveiling its latest products as the company aims to reverse a post-pandemic slump. It's releasing new plus versions of its bike and its
treadmill, as well as a new rowing machine. They will, lo and behold, include an A.I. powered feature, Peloton IQ, which will act like a personal
trainer. Sound familiar?
The company shares have been on a tumultuous ride. Peloton soared during the pandemic, but then struggled to keep up the momentum.
[16:50:03]
The founder stepped down as CEO in 2022. Shares hit by slowing sales and this unfavorable appearance in "The Sex and the City" spinoff "And Just
Like That."
(BEGIN VIDEO CLIP)
SARAH JESSICA PARKER, ACTRESS: John.
(END VIDEO CLIP)
SCIUTTO: Anna Cooban is in London.
OK, so I'm talking about A.I. actresses replacing human actors. I mean, the big thing with the Peloton, right, was you had these human coaches that
people, you know, got relationships with. They have huge followings. So now we're talking about A.I. generated coaching?
ANNA COOBAN, CNN BUSINESS AND ECONOMICS CORRESPONDENT: Yes. That is that is what Peloton thinks it needs to do in order to really rebrand itself, get
customers flowing back to its stores online. And, you know, Peloton really has a lot to answer for like, people are very angry with it for killing off
Mr. Big, for thwarting Carrie Bradshaw's happy ending. And also, it's really taken a huge knock since the pandemic. Its stock has dropped by more
than 90 percent because people simply just don't need to buy at-home exercise equipment like they used to during that time.
And so this really is a sort of "Hail Mary" by the company. It's had CEO changes as well. Layoffs were announced last month, about 6 percent of its
workforce. And so part of this rebrand is leaning on A.I. and as you said, they've got new products, new bike, a new treadmill, a new rowing machine.
They've got upgraded Wi-Fi connectivity and, you know, sort of bells and whistles around that.
But really the piece de resistance is this A.I. assistant, which can tweak your exercise routine. It can provide modifications, suggestions on your
form, count the number of reps you do. So there's really no hiding from this. And this is a technology the company is really, you know, leaning on
in quite a significant way. It's flirted with A.I. before. It had an attachable camera that was able to provide feedback on people's workouts,
but they discontinued that.
And the company said that they wanted to really integrate it in a very significant way into its products. And this seems to be how they're
attempting to do that.
SCIUTTO: Anna Cooban, thanks so much.
When we return, we're going to look at the life and legacy of one of the world's most renowned conservationists. Of course, the famous Jane Goodall.
(COMMERCIAL BREAK)
SCIUTTO: The famed conservationist Jane Goodall has died at the age of 91.
[16:55:02]
Goodall was the world's leading expert for years on chimpanzees. She spent more than six decades studying primates.
The news was confirmed on her official Instagram page, saying, quote, "Dr. Goodall's discoveries as an ethologist revolutionized science. She was a
tireless advocate for the protection and restoration of our natural world."
CNN's Tom Foreman looks back at Goodall's extraordinary life.
(BEGIN VIDEOTAPE)
TOM FOREMAN, CNN CORRESPONDENT (voice-over): Jane Goodall's love of animals began at an early age.
JANE GOODALL, CONSERVATIONIST: I was watching earthworms before I could talk.
FOREMAN: As a child growing up in World War II London, she escaped into books about Dr. Doolittle and Tarzan.
GOODALL: My dream when I was 11 years old, I will grow up, go to Africa, live with animals and write books about them. And of course, everybody
laughed at me. We didn't have any money. And finally I was the wrong sex. Girls didn't do that sort of thing.
FOREMAN: But that didn't matter to legendary paleontologist Louis Leakey. After hiring Goodall as his assistant, he sent her to what is now Tanzania
in 1960 to study chimpanzees in the wild. With no formal scientific education, Goodall conducted her research unlike anyone else, giving the
chimps names, observing humanlike behavior, even gaining acceptance into chimps society.
Her unconventional methods led to several landmark discoveries, among them that chimps use tools and ate meat just like us. Her findings for
scientists to redefine humankind and reconsider what really separated us from our closest cousins.
GOODALL: Just objects. Not just things, that they have personalities, minds and feelings.
FOREMAN: Goodall would earn a PhD from Cambridge University and be named a dame of the British empire, and through her institute, she became a
tireless advocate for animal rights and the environment. One of Goodall's proudest accomplishments, creating a youth program called Roots and Shoots.
GOODALL: Bring up generations of children around the world to be better stewards of the planet and to be more loving of each other.
FOREMAN: Even in her later years, Goodall spent 300 days a year on the road preaching her message. But no matter where she went, nature was never far
from her mind.
GOODALL: Wherever I am, I can close my eyes and imagine myself in the forest, living with the most fascinating beings out in the forests I
dreamed of, doing some writing, which I love, a little bit of teaching, which I enjoy. I mean, what better life could anybody have?
(END VIDEOTAPE)
SCIUTTO: An extraordinary life of service.
That is QUEST MEANS BUSINESS. I'm Jim Sciutto. "THE LEAD WITH JAKE TAPPER" starts now. After that, I'll be back for "THE BRIEF."
(COMMERCIAL BREAK)
END
