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Quest Means Business

U.S. Inflation Tops Four Percent; Northern Ireland Violence; World Cup Countdown

Aired June 10, 2026 - 16:00   ET

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

JIM SCIUTTO, CNN HOST: Well, you see it right there, not a pretty day on the markets. The Dow down, well, now more than 900 points. Those are the

markets and these are the main events.

U.S. inflation rises above four percent driven largely by higher energy costs.

Northern Ireland braces for another night of anti-immigrant violence.

And it is the last day to fill out those World Cup brackets. The matches, they start tomorrow.

Live from D.C., it is Wednesday, June 10th. I am Jim Sciutto, in for Richard Quest and this is QUEST MEANS BUSINESS.

A very good evening to you.

Tonight, U.S. inflation has soared to the highest level in more than three years. Consumer prices rose 4.2 percent in May from the year before.

Headline inflation has not been that high since back in April 2023. The increase, driven by a nearly 25 percent jump in energy costs, which of

course are driven by the war with Iran.

President Trump was asked this morning about the latest inflation numbers. He said they were, "great" and that prices would fall soon.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES OF AMERICA: When the war is over, it is coming down.

REPORTER: I know you can't --

TRUMP: It is going to come down like a rock. And, again, we are taking out millions, which I am just announcing today for the first time. But we've

been taking out millions of barrels of oil, millions of barrels of oil has come out and that's why it is at $85.00 to $90.00 a barrel instead of

$250.00.

(END VIDEO CLIP)

SCIUTTO: David Goldman is in New York.

I mean, listen, the numbers don't lie, and not just that number on the screen behind you, but the markets do not seem to think that this is all

going to disappear very quickly.

DAVID GOLDMAN, CNN BUSINESS SENIOR REPORTER: No, they sure don't. I mean, markets are down because of a combination of factors. I mean President

Trump saying that we might have to start a kinetic war with Iran again, that's not going to help, but they were down before that and that is

because of this inflation number.

For the first time in three years, Jim, we had 4.2 percent inflation. That is the highest in three years. Look at this. Just in the last month alone,

0.5 percent growth in prices and this was 3.8 percent just a month ago. So, we are going in the wrong direction.

Now as you mentioned, what did the President have to say about this? He said, "I love the inflation." Everything is great. Well, okay, let's let

the political minds think about what this might mean for him, but what does this love mean? Is there anything to love about this inflation report?

Let's take a look.

So in energy, we had gas prices rising seven percent in the past month alone. Now we all know this, right? We've been to the pump. We've been

filling our cars.

We know how much pain there is, but we also know that this is outdated, right? Gas has fallen for 20 straight days and oil is also down 15 percent

since we had this inflation report, which is for the month of May.

Now, the good news is that energy contributed 60 percent of the monthly increase. So, that means those declines might mean that we have a little

bit of a cap on inflation, maybe just a little bit and that is the expectation that we might see maybe 4.5 percent, maybe five percent, and

then come back down a little bit. So maybe we are toward the end of this.

Now, food is one of those things that none of us can avoid. Certainly, at the grocery store, some people have noticed tomatoes are up 30 percent;

lettuce is up a lot and that does have to do with diesel, and it has to do with tariffs, and it has to do with climate change.

But overall, your price is not so bad, 2.7 percent over the past year, we can afford that and that is significantly lower than overall inflation.

If you go out to eat, you get stung a little bit more, 3.5 percent that's always the case that you pay a little bit more at a restaurant, but there

is some good news here. But -- but -- look at this, the Federal Reserve has to make a call.

[16:05:00]

Do we cut rates as President Trump hired new Fed Chair Kevin Warsh to do next week, or do we raise rates? And the market believes there is a 68

percent chance that we raise rates. I don't think the President is going to say he loves that, Jim.

SCIUTTO: No question. Listen, by the way, higher rates go right to the consumer as well in the form of mortgage costs, auto loans, credit card

interest rates, as you know better than me.

David Goldman, thanks so much.

GOLDMAN: Thank you.

SCIUTTO: President Trump says the U.S. is going to resume attacking Iran, "very hard." Trump has suggested that Iran's downing of a U.S. Apache

helicopter is pretext for the renewed strikes. The President is also, though, bemoaning the slow progress of talks with Tehran, which he does say

are still ongoing.

Trump is not now ruling out attacks on Iran's civilian infrastructure, raising quite hard legal questions.

Oil prices are higher. Brent crude is trading around $94.00 a barrel, West Texas Intermediate just a couple of dollars less.

President Trump says that oil prices would be much higher if it wasn't for the U.S. Military. In a post on Truth Social, Trump revealed something. He

said that, "Last month, I directed our great U.S. Military to execute a secret mission to support oil tankers and other commercial ships through

the Strait of Hormuz." Trump says that "... as a result of that, more than a hundred million barrels of order have made it out onto the open market."

He declared that the U.S. controls the Strait of Hormuz, not Iran.

Kristen Holmes is at The White House. And Kristen, listen, the President revealing that operation seemed perhaps a message to the oil markets. Not

the first time he has revealed information that he hopes might move the markets. But first, I wonder how big of an escalation is the President

threatening now? And might this mean the end of the ceasefire?

KRISTEN HOLMES, CNN SENIOR WHITE HOUSE CORRESPONDENT: The key word there is threatening. It is not necessarily what he is planning on actually doing

and we've seen this before. Weve seen him use rhetoric where he talks about bombing civilian infrastructure, where he pushes, at one point, he was

saying he was going to make an entire civilization extinct.

He has never actually crossed that line since he started with these threats. It is usually the rhetoric that he uses, the bluster he uses to

try and bring Iran to the table, to try and strong arm them into some kind of a deal, and one thing was very clear today when we heard him in the Oval

Office, he is very frustrated.

Just two days ago that he was saying that a deal was imminent, that it would be reached in two to three days. It obviously doesn't seem as though

that is the square we are on now.

Of course, we saw those strikes yesterday. What we had originally been told by U.S. officials was this idea that these were just retaliatory, that they

were expressly meant to respond to the downing of that Apache, that they were limited in scope. They were military targets along the Strait of

Hormuz, and that this wouldn't affect negotiations.

Now, of course, you have President Trump saying that they are going to continue striking them throughout today as well. So the question is, is

there going to actually be another military operation, or is this, once again, President Trump just trying to push or needle Iran into making a

decision or into signing this document that he says is sitting in front of them?

He continued to say it was already negotiated, all they have to do is sign it. Just to be clear, though, this rhetoric hasn't worked before. We are

still in the exact same place that we've been, even when President Trump threatens these, you know, enormous military operations or wiping out a

civilization.

In fact, the day that he was threatening to wipe out a civilization ended in a ceasefire, and that was two months ago. And yet we still don't have

any kind of a peace deal. So it is really unclear right now, Jim, what he is willing to do and what is just him frustrated trying to bring Iran back

to the table.

SCIUTTO: No question, and then the open question: What brings Iran back to the table? Because those threats to date and the attacks to date have not

done so, at least to his satisfaction.

Kristen Holmes, thanks so much.

Well, Trump's warning to Iran and today's hot inflation report took its toll as we noted at the top of the broadcast on U.S. markets. The Dow

dropped 950 points in the end, below 50,000 as you see there. The S&P 500 fell more than 1.5 percent. The NASDAQ closed just about two percent lower.

With inflation running well above the Fed's two percent target, the Fed is unlikely to cut rates any time soon. In a discussion as we noted earlier,

of raising rates, that's a setback for investors and stocks.

Joining us now Keith Fitz-Gerald, principal at the Fitz-Gerald Group, joining me from Utah.

Keith, good to have you on.

KEITH FITZ-GERALD, PRINCIPAL, FITZ-GERALD GROUP: Thank you so much. Great to be here.

[16:10:09]

SCIUTTO: So you look at a lot of bad indicators right now for the market. The price of oil is going up again as, well the crossfire continues in the

Middle East and possible escalation there. Not a great CPI Report, and now discussion of raising rates as opposed to cutting them. Is this a short-

term impact on the market? Because we've seen it drop and then bounce right back up before? Or do you see something more lasting here?

FITZ-GERALD: Well, that's a great question, Jim, and I think it is actually more the former than the latter because this is a highly quantitative move.

This is traders trying to reprice risk from a deal that they were front running anyway, the Iranian peace deal and oil prices.

So it puts the Fed between a rock and a hard place, definitely, but the underlying business case for owning many of the world's great companies

continues to grow stronger by the day, and that is where smart investors have the advantage.

QUEST: Let me ask you this, though, because right now, speaking to the governor of Alaska this morning, and of course, Alaska as you know, deep

into the energy industry and he said -- he made a point and you know this better than me, that to date, oil prices have been going up because of risk

to supply. And he said in two or three weeks, because of dwindling supplies, because of all these issues with the war there, that were getting

closer to a supply shock, which he says -- he warns would mean more lasting damage, higher oil prices and all the various carry-on effects from there.

Do you share that concern that there is some point at which this becomes real pain in the energy markets and not just fleeting pain?

FITZ-GERALD: Well, I do, and you know, the issue immediately is whether the oil companies have hedged that appropriately. Do they have a global

footprint? Can they draw their oil from other supply stocks that they've got around the world? What does that look like for manufacturing?

So yes, it is a real risk, but historically, it is the problem associated with a gradual shift versus a sudden shift. If it is a sudden shift, we

definitely have got problems, but it is not a canary in the coal mine yet, in my humble opinion.

SCIUTTO: Okay, and you heard -- before we go, you heard our Business reporter there make the point that now, the betting is that the Fed won't

just hold steady on rates, but a 68 percent chance of raising rates. Now, you may disagree with that, but I wonder how would the markets react to an

interest rate hike?

FITZ-GERALD: Well, actually I don't disagree with that. That has been my contention from the beginning of the year, is that the Fed is going to be

forced into that position, sort of unwelcomely.

I think that the possibility of rates staying higher for longer is very real, but it is not because of the inflation. It is because the Fed is

using antiquated tools that don't adequately reflect what is really happening with the numbers and I think they are getting it wrong. So again,

that's an opportunity for investors to buy companies that are growing faster than the rate of inflation itself.

SCIUTTO: So what are those companies? Just briefly before we go, what categories of companies?

FITZ-GERALD: Well, most of them have been beat down mercilessly today in the last few days. It is going to be mainly the Big Tech. It is going to be

some defense. It is going to be healthcare -- anything that supposedly is interest rate sensitive, but in reality, continues to have a very strong

business consumer case.

SCIUTTO: Keith Fitz-Gerald, appreciate you walking us through it.

FITZ-GERALD: Thanks, Jim.

SCIUTTO: Well, a second night of violent unrest in Belfast. We are going to have the latest as protesters defy warnings to stay away.

(COMMERCIAL BREAK)

[16:16:03]

SCIUTTO: Police in Northern Ireland have now fired water cannons to attempt to disperse a crowd of protesters in Belfast as a second night of anti-

immigrant unrest begins. Some protesters hurled bricks at officers. The city, on high alert with an extra 200 police officers on the streets.

Homes, buses and cars set alight Tuesday. Politicians say the rioters targeted immigrants and ethnic minorities. The violence followed a knife

attack on Monday by a Sudanese national. Graphic video of the stabbing spread on social media, amplified by far right groups.

Our Nic Robertson has more.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR (voice over): At its dangerous peak Tuesday night, police rescuing Belfast residents as their

homes torched in a night of anti-immigrant rioting gripping Northern Ireland.

A neighborhood bus set on fire amid scenes of some of the worst violence across the U.K.'s troubled province in years. At times, angry mobs of

masked men roamed streets unchecked, smashing houses, apparently searching for migrants.

The violence smoldering through the night as riot police clashed with rock- throwing youths in multiple towns. At least two policemen injured, several people arrested.

Northern Ireland's Police Chief ramping up his forces in readiness for worse.

CHIEF CONSTABLE JON BOUTCHER, NORTHERN IRELAND POLICE: We will be on the streets tonight in numbers even more than we were last night, and we have

got arrangements in hand to get mutual aid that will be arriving here tomorrow and we are looking to get a further some 200 officers to get on

the streets to deal with this.

ROBERTSON (voice over): The rioting triggered by a knife attack Monday night where the victim, Stephen Ogilvie, was saved by neighbors, but lost

an eye, according to authorities, and remains in hospital in critical condition with head and neck injuries.

The suspect, named in a Belfast court Wednesday as Hadi Alodid, a 30-year- old Sudanese refugee who authorities say was legally in the U.K. and was charged with attempted murder.

Other immigrants in Belfast now concerned for their safety.

ANSELME SHIMA, BELFAST RESIDENT ORIGINALLY FROM D.R. CONGO: I am afraid maybe I might be the next to be attacked on the street, so I don't know

where to take my family, my children, who is nine years old, who is asking me every question that crosses his mind and I don't know how to answer him.

I don't know, maybe I am the next.

ROBERTSON (voice over): The British Prime Minister calling for calm at a time when the U.K. is being tested by divisions over immigration.

KEIR STARMER, BRITISH PRIME MINISTER: But let me be clear, Mr. Speaker, the acts of violence and arson that followed are totally unjustified.

We are united in calling for calm and determined to restore order.

ROBERTSON (voice over): Last year, anti-immigrant riots lasted five days. In Northern Ireland, tensions are easily combustible. The legacy of

grievances from 30 years of sectarian bloodletting, a generation ago has left easy kindling and a knowhow for fiery rioting.

Adding to concerns violence could escalate further, some anti-immigrant Mainland U.K. campaigners have already come to Belfast. Others posting on

social media.

BOUTCHER: It is very easy these days, especially to look online and be persuaded by people who know nothing about Northern Ireland.

Stop listening to these idiots. We will be going after them for the incitement that they've been doing.

ROBERTSON (voice over): Most everyone in Northern Ireland hoping for calm.

Nic Robertson, CNN, London.

(END VIDEOTAPE)

[16:20:15]

SCIUTTO: Nuala McAllister was Lord Mayor of Belfast from 2017 to 2018. She is now a member of Northern Ireland's Legislative Assembly for North

Belfast, where this attack happened.

Thanks so much for taking the time to join us.

NUALA MCALLISTER, FORMER LORD MAYOR OF BELFAST FROM 2017 TO 2018, MEMBER OF NORTHERN IRELAND'S LEGISLATIVE ASSEMBLY FOR NORTH BELFAST: Good evening,

Jim.

SCIUTTO: I wonder if you could tell us what the situation is now, as we head into the evening hours there. Do you believe police have these

protests, these attacks under control?

MCALLISTER: Well, as we currently speak, there are smaller number of protests in fewer locations across Belfast and Northern Ireland.

Unfortunately, they are taking place, as you see on your screen there in my constituency of North Belfast and the aim of the protesters in that video

and at another location adjacent to that is to gain access to a hotel that is currently housing asylum seekers and refugees.

I don't think it takes much thought to recognize what they want to do when they get there, because last night's protests were anything but peaceful

and the police are holding the line there and keeping those protesters back.

It is really unfortunate because they are destroying their own communities and their own neighborhoods, and they are not doing anything to further any

cause of which they claim to speak for.

SCIUTTO: Yes, this pattern of far-right groups, but other influencers, and we are seeing this now, such as Elon Musk taking an attack like this, which

is awful in its own right as an excuse, really, to encourage broader protests against all immigrants and migrants. It is a well-established

pattern.

What is your response to those people right now who are fanning the flames? I mean, Elon Musk has an enormous following, and he is encouraging people

to go out and protest loudly and consistently.

MCALLISTER: And I think they shoulder some of the responsibility of what is taking place in our streets tonight. Last night, we saw Elon Musk actually

retweet locations of protests that were taking place across Northern Ireland.

Whenever you know, the troubles that Northern Ireland have already faced in the past 20, 30 and 40 years. Everyone that has lived here, who has visited

here, or even read any bit of information about here, knows that our people have already suffered enough with violence like this on the streets.

But the violence that took place last night is now targeted at an even smaller group of people. We had people -- masked men banging down the doors

of people who had different color of skin to burn them out. We had police and fire service run into their homes to try and rescue them and take them

to a place of safety.

We now in Northern Ireland in 2026, have displaced families who are already in the most part, refugees or asylum seekers.

SCIUTTO: Yes, CNN has spoken to immigrant families who are now afraid to simply send their children to school, or just to leave their homes. Are

they unsafe given this threat?

MCALLISTER: As an elected representative who has been on the ground all day today, yesterday, speaking with police, with neighbors, residents and

ethnic minorities, I can't in good conscience tell all of them that they are safe because of what happened last night.

I spoke to principals across my constituency in North Belfast today, who themselves went to drive to the houses of those children and bring them to

school, drive them back home to make sure that they are safe. But most of all, they simply just didn't show up because parents are too afraid.

And there currently is a list that is doing the rounds on social media that is being platformed by far-right actors, a list of addresses of people who

are from an ethnic minority background.

SCIUTTO: It was notable that the family of the victim, the Ogilvie family, the victim of the attack that sparked these protests, they have quite

deliberately called for the violence to stop. And in a statement, they went on to say, "... we have many migrants who make a deeply valuable

contribution to our country. We do not want this terrible tragedy to be used to divide people or fuel hostility."

I wonder if that message has impact in your view, given it is coming from the family of the person who suffered, right, at the start of all this.

MCALLISTER: I'd like to think it did have some level of impact and it did touched a lot of people who have been calling this out for what it is. It

is racist thuggery. And I do think that there were some people who wanted to protest and had peaceful intentions that actually saw that message, saw

what you see in your scenes before you, and have taken a step back.

But what is getting lost in this message of the rhetoric and hate that is being spread in social media, is that this is about protecting our culture

and our community here in Northern Ireland from people who are wielding knives, this this knife attack that happened.

[16:25:02]

And your viewers will probably not be aware. But just last week, a man was sentenced to over 30 years in prison for the brutal stabbing of his

partner. That was a White man, and there were no protests on the street. There was no rioting. There was no call to action whenever that man carried

out his brutal attack on a woman.

There have been many more attacks like that here in Northern Ireland and in Belfast, and it have been carried out by White men, and we don't see the

scenes that we see today from people who claim that they are trying to protect our streets.

SCIUTTO: Yes, well, it reveals the agenda, perhaps. Nuala McAllister, we appreciate you coming on and we and we hope that your home finds peace.

MCCALLISTER: Thank you.

SCIUTTO: Kyiv says that Ukrainian forces struck the Russian occupied port of Mariupol. Ukraine's government posted this video of that attack.

It says they hit a key energy and maintenance infrastructure and triggered a blackout at the port there. It is the latest in a series of Ukrainian

drone attacks on Russian supplies, fuel, energy, infrastructure and logistics.

These types of strikes are part of the reason that Moscow's momentum has slowed, even been reversed on the battlefield in recent months. I spoke to

the Foreign Minister of Finland about the state of the war.

Elina Valtonen tells me the dynamics on the battlefield are clearly shifting.

(BEGIN VIDEOTAPE)

ELINA VALTONEN, FINNISH FOREIGN MINISTER: Certainly, Ukraine is now showing that Russia is not, you know, an unstoppable force of nature like some

people have perhaps thought. But on the very contrary, Ukraine has been bravely fighting for its own independence and freedom, unfortunately, for

way too long. And now they are showing that they can actually have some military gains, not only on the battlefield, but also challenge Russia

throughout their vast territory and this is an entirely new picture.

SCIUTTO: As you know, Russia has been carrying out what has been described as a hybrid war on Europe, including on NATO allies, drone incursions, et

cetera. Is Finland concerned that as Russia loses territory in Ukraine, that the Kremlin might seek escalation, whether that be in Ukraine or

perhaps in Europe, that it might try to escalate this war?

VALTONEN: Well, we are pretty sure that the Kremlin sees that this aggression and the war is not going anywhere. Russia's economy is

essentially in shambles. They are losing 30,000 young men each and every month, and certainly they are not making any -- neither tactical nor

strategic gains on the ground.

So now would be the time that Russia withdraws, goes back to adhering to international law and then, we are more than happy to start talking about,

you know, renewed partnerships and establishing again, connections we have lost.

But before that happens, well, there is not much we can do. It is up to Russia, but certainly, what comes to escalation, there is -- well, nothing

that Russia can achieve with that on the very contrary, nature has been ramping up significantly over the course of the past months and years,

especially in Europe and Russia knows that.

SCIUTTO: What is your reaction to one, the U.S. effective withdrawal from the peace process, but also a reduction in U.S. support for Ukraine, in

particular, air defense missiles, which Ukraine is in great need of as Russia escalates its missile attacks, drone attacks on Ukrainian cities.

Is the U.S. leaving Ukraine vulnerable?

VALTONEN: I don't think the U.S. is going anywhere, but to be quite honest, I think the role of the United States in this entire conflict should be to

take the side of the victim and to take the side of freedom and world peace, and that certainly would require increased support for Ukraine

rather than being a neutral mediator in the middle because as we have seen over the course of the past 18 months, those talks have essentially not led

anywhere.

But the U.S. involvement is extremely important and it is fantastic that the U.S., obviously is on the side of Ukraine and has been supporting

through at least selling very critical air defense systems and other weaponry to Ukraine and also providing Intelligence, and we so hope this

continues and intensifies.

[16:30:10]

And also what would be important to implement now is the full maritime services ban towards Russia, because we do see that the sanctions we have

imposed together as Europe and the United States, those truly are hitting Russia hard.

SCIUTTO: But as you know, the U.S. has given Russia exemptions to those sanctions due to the rising cost of oil from the Iran War. Are you saying

that the U.S. is not taking the side of the victim in this war? That it is taking the side of the aggressor, or just playing a both sides game?

VALTONEN: Well, the U.S. has been on the side of Ukraine and that is so important that it remains so. And I just hope that our American friends do

see the reality of the war as it stands, and that is that Russia does not shy away from targeting even civilians directly

They have been bombing cities, critical infrastructure, but also residential buildings and this happens more or less every night. Ukraine,

on the very contrary, they have the right, of course, to defend themselves also with the help of their friends and partners and this is what they are

doing totally basing themselves on international law.

So for this war to end, we should all -- not just Europe, but also the rest of the free world and certainly under the leadership of the United States

put our full weight behind Ukraine because that will convince Putin that he needs to end his war.

(END VIDEOTAPE)

SCIUTTO: My conversation there with the Finnish Foreign Minister.

Coming up next, Bill Gates testifies on Capitol Hill over his ties to Jeffrey Epstein. We will bring you the latest.

(COMMERCIAL BREAK)

[16:35:02]

SCIUTTO: Hello, I am Jim Sciutto. There is more QUEST MEANS BUSINESS in just a moment when we will discuss the closed door testimony from Microsoft

co-founder, Bill Gates on his ties to Jeffrey Epstein.

And another day, another massive IPO. I will be speaking with the CEO of Parabilis Medicines about their market debut.

Before that, though, the headlines this hour.

President Trump is now vowing new U.S. strikes on Iran. This, as the President claims, an agreement to end the war is "fully negotiated" and all

Tehran has to do is start signing a paper. He is accusing the Iranians of dragging out the negotiations.

Earlier, the two nations exchanged strikes following Iran's downing of a U.S. Army Apache helicopter.

Police in Northern Ireland are now responding to a second night of anti- immigrant unrest in response to a knife attack on Monday. Masked protesters set homes, cars and buses on fire Tuesday, scenes like you're seeing there.

The violence erupted after video of a stabbing attack spread on social media.

The suspect, a Sudanese man, has been charged with attempted murder.

U.S. inflation rose to a three-year high in May. It now stands at 4.2 percent. That increase, driven by a big jump in energy costs, which of

course are driven by the war in Iran.

Bill Gates says that Jeffrey Epstein tried to pressure him to reconnect after their contract ended by using information about Gates' infidelities.

The Microsoft co-founder testified on Capitol Hill today over his ties to the late convicted sex offender.

In his opening remarks, Gates denied knowing the extent of Epstein's crimes and claimed he never went to Epstein's infamous island.

Annie Grayer is in Washington.

Annie, tell us what the thrust of his testimony was here because he is admitting to the infidelities and even saying that Epstein tried to

weaponize those against him, but he is denying any wrongdoing.

ANNIE GRAYER, CNN CAPITOL HILL REPORTER: That's right, Jim. He tried to walk a very fine line here where he argued that he never saw anything

illegal. He never participated in any illegal behavior with Epstein. But he said that he regretted that he ever interacted with Epstein.

He said he started interacting with Epstein around 2011 because he wanted access to Epstein's wealth and inner circle to try and further his own

philanthropy agenda. He wishes that he hadn't engaged with Epstein at all because even in 2011, that was after Epstein was a known convicted sex

offender, so Gates was continuing to engage with Epstein on these. He argues on these very narrow matters.

And Gates argues that even though that -- he argues that Epstein was trying to use the information that he had about Gates in that Gates had committed

infidelity in his marriage to try and manipulate him, to keep him close, to keep bringing him back for more.

So I am going to read you a piece of Gates' opening statement that we obtained to this point where he says: "I learned Epstein had become aware

of sensitive information about my personal life, including the fact that I had been unfaithful in my marriage. Epstein was working to use information

about my infidelities, in addition to many lies that he layered on top to pressure me to reengage with him."

Now we know that from sources in the room and from lawmakers who spoke to us after that Gates was answering questions from lawmakers and

investigators, but he was also pushing back pretty forcefully.

For example, in the Epstein files released by the Department of Justice, there are hundreds of references of Gates in there, from e-mails and phone

calls and meeting invitations, but there are two explosive draft e-mails that Gates was asked specifically about, we are told, and in these draft e-

mails that Epstein was allegedly writing to himself, Epstein alleges that he helped set Gates up with women, and he also helped Gates get medication

to hide a sexually transmitted infection from his wife.

And we are told that when Gates was asked about this in the closed door interview earlier today, that he vehemently denied all of these

allegations, which he has also done publicly. He said they are completely false and they are completely unverified.

But Gates did talk about how he has regrets that he wishes he hadn't interacted with Epstein at all and this is the 15th interview that the

House Oversight Committee has done as part of its investigation, and each time they bring someone in, lawmakers come out and say that they have new

leads to pursue new people, that they want to talk to. So, this investigation is very much full steam ahead.

But Gates is a very high-profile witness that the Committee was able to secure testimony from today.

SCIUTTO: Annie Grayer on the Hill, thanks so much.

[16:40:04]

Well, Parabilis Medicines has now made its market debut. Coming up next, I am going to speak to the drugmaker CEO, and there he is.

(COMMERCIAL BREAK)

SCIUTTO: Parabilis Medicines, a drug maker taking aim at hard to reach tumors has just gone public on NASDAQ. Its shares were offered at $20.00 a

share, soared 58 percent on their first day of trading as you can see there.

The company says it raised nearly $800 million through that IPO. Parabilis Medicines was founded back in 2015 and has already struck a lucrative

partnership with Regeneron Pharmaceuticals. It is going public at a time when the IPO market is heating up for lots of firms, particularly biotech

firms.

Dr. Mathai Mammen is the CEO of Parabilis and he joins me now.

Doctor, thanks so much for taking the time.

DR. MATHAI MAMMEN, CEO, PARABILIS MEDICINES INC: It is such a pleasure to join you.

SCIUTTO: So first, I wonder if you can explain the core of your business here. Your lead drug candidate -- I am not going to try to pronounce it

just I am sure I will get it wrong -- has been evaluated in trials for multiple solid tumors. Tell us what the effect of this treatment could be.

MAMMEN: I will, let me tell you why we even exist as a company. Why does Parabilis exist? You know, all medicines target an overactive protein that

drives particular diseases. But unfortunately, about 80 percent of proteins inside cells are considered undruggable, meaning that a traditional small

molecule or an antibody is not going to be effective for technical reasons.

The purpose of Parabilis is to invent and wield a new platform that's related to peptides. We call it helicon peptides that can drug such so-

called undruggable proteins.

So what we have found is that we can particularly -- we can make drugs against these proteins that the world biopharmaceutical industry has failed

today to do. The first of these you referred to is called zolucatetide or Zolu and Zolu inhibits a particular one of these proteins called beta

catenin and beta catenin is overactive in a number of different tumors, perhaps millions of cancers in the United States per year.

So this kind of -- this kind of protein is very valuable to be able to drug in that it would help patients suffering from particular kinds of cancers.

[16:45:06]

Our lead indication is a kind of cancer called desmoid tumors, and there are others like familial adenomatous polyposis and other tumors still that

we are excited about making medicines for.

So that's where we are. The data look very encouraging right now, and investors seem to agree and today's public offering gives us the capital to

pursue what we need to pursue, to drive towards medicines here for these patients.

SCIUTTO: As I understand it, the longer term goal is to go after a whole host of diseases that have been considered too difficult to treat. What

kinds of diseases and how?

MAMMEN: Yes, there are many diseases whose causal driver, the root reason you have a disease are these undruggable proteins.

For example, hepatocellular carcinoma, colorectal cancer, ameloblastoma. There are many, many kinds of diseases within the cancer space and there

are many diseases outside the cancer space as well that are driven by these so-called undruggable proteins.

So our platform lets us make medicines against those and help those patients that would otherwise be very difficult to help.

SCIUTTO: We are hearing extraordinary complaints about how A.I. is already accelerating drug trials, research and discovery. Has A.I. meaningfully

changed how Parabilis has been able to develop medicines?

MAMMEN: It does indeed. We don't lead with ourselves as an A.I. company, but our core platform that I mentioned, the helicon peptide platform, is

tremendously enabled by artificial intelligence machine learning, and computational approaches.

We, ourselves over the last decade, tremendously -- created a tremendous amount of data ourselves, and we've used that data to train algorithms that

help us create our particular kind of helical peptide platform.

So absolutely, I don't think we could do what we do if not for the advances of A.I. We just don't lead that we are an A.I. company, we are a company

that makes medicines, that really tries to help people.

SCIUTTO: Sure. Well, listen, we wish you luck in your mission, Dr. Mathai Mammen, thanks so much for joining.

MAMMEN: Thank you so much for having me.

SCIUTTO: Well, game four of the NBA finals between the New York Knicks and San Antonio Spurs could tip off in just a few hours. Madison Square Garden

is not a fan, however, of New York City's security measures.

We will explain after the break.

(COMMERCIAL BREAK)

[16:50:16]

SCIUTTO: You're looking at live pictures outside New York's Madison Square Garden. Fans beginning to stream in for tonight's NBA finals between the

New York Knicks and San Antonio Spurs. Security tight once again.

Police have set up security checkpoints to get within blocks of the arena over the objections of the Garden itself. Attendance for an outdoor watch

party has been capped at just 1,000 fans. There are a heck of a lot more Knicks fans in New York.

Mayor Zohran Mamdani says the measures are standard for large public gatherings. The Garden accused him of being a party pooper, its own words

and claims the restrictions will hurt neighboring businesses.

Omar Jimenez is outside Madison Square Garden.

I mean, Omar, yesterday or two days ago when the President came, there was all the security around the President, which caused its own problems, long

delays. Folks had to come two hours in advance. This is not related to that, of course. So why the big show of security now?

OMAR JIMENEZ, CNN CORRESPONDENT: Yes, you know, the city has essentially said that this is their security posturing for large events like New Year's

Eve or things like that. Now, again, these first went in place after when we knew the President was coming and they are actually putting some more

barricades in place now.

I just want to show you, give you an idea of what the presence is actually like right now. So you're seeing them block this street even more so than

they already have. You step down to the street itself, you look to your right, there is no vehicular traffic. They've got that closed for a block

in that direction and they are dragging that gate that way.

In this direction, they have also got it closed with vehicles blocking it as well and then if you look past these officers here, you might not even

be able to see it, but there is a set of flashing lights and avenue block even further over, and they've got the street closed over there.

So you might be asking if you're watching this, wait, where is Madison Square Garden in all of this? This is MSG right here behind me, and you'll

know it because you see the flood of police officers here that are, I should mention, around rush hour here in New York City. They have closed

off this entrance to Penn Station. There are a few others, but they've closed this one off the closest to MSG, really just trying to let people

out.

A lot of people are confused trying to figure out where it is they need to go. There is one guy here who clearly seems to be leaving work, and police

are trying to get a path for him to get out and other people. So there is a lot of confusion on the ground here from people who are trying to figure

out where to go, and then you sort of highlighted the back and forth between the city officials and MSG officials.

Typically, watch parties have happened in this space over here behind me. We know it will be ticketed now, up to a thousand people, as we've heard

from the city of New York. But to this point, we haven't seen people trying to get in. We haven't seen a screen set up in that area as well. So that's

also something we are watching for moving forward.

But yes, you're right, no President here and yet, it still has that same feel of a lockdown across multiple avenues and blocks in the perimeter

around Madison Square Garden, because they are trying to say the city is that this is the best way to go about celebrating safely as MSG says, trust

the fans, they are not going to tear down the city.

SCIUTTO: Well, one thing is for sure, they spent so much for the tickets. They are going to get in there some way or another. I am sure they will

shoulder the burden of those waits.

Omar Jimenez outside MSG. Thanks so much.

Well, there is another sporting event coming up, excitement of course, building for the World Cup. National pride on the line. It is time for some

friendly competition before the first match tomorrow in Mexico City.

Our colleagues Isa Soares, Max Foster and Paula Newton made their World Cup predictions for CNN's bracket.

(BEGIN VIDEOTAPE)

PAULA NEWTON, CNN ANCHOR AND CORRESPONDENT: Can I ask for help from the crowd? No?

(CHEERING AND APPLAUSE)

NEWTON: Anybody? No?

ISA SOARES, CNN ANCHOR AND CORRESPONDENT: Oh, I can't do a winner. I can't do -- I can't do a winner. This is awful.

MAX FOSTER, CNN ROYAL CORRESPONDENT: I am not a great expert in the footballing prowess of any of these teams.

SOARES: Will I lose friends? Yes, I most likely will.

NEWTON: This is so tough, guys. I am already nervous and they haven't even started.

FOSTER: I mean --

SOARES: Whoa!

NEWTON: This is how you get it done. Good juju for your team, okay?

SOARES: I think that Max will pick England for his Final. Clearly, very biased like me.

FOSTER: Well, I don't know why Paula is even involved in this because Canada is going nowhere.

NEWTON: I don't have any research or any football or soccer knowledge, but I make up for it in enthusiasm.

SOARES: Okay, there is no science. I am just going to go with my gut, okay.

[16:55:08]

NEWTON: All right, here, we are going.

So we are going to select here the first and second place teams in each group. So this is easy actually.

SOARES: I am going to put Morocco first, Brazil second. I am sorry, Brazil.

NEWTON: I am going with Mexico first, South Korea, second.

FOSTER: Can I just ask you they're playing each other, these two aren't they? And those two.

SOARES: Now select the eight best third place teams. Here we go.

NEWTON: They are telling me to select eight of the best third place teams. This is not easy.

FOSTER: Australia, because they're always good at sport.

SOARES: I have to put Scotland because my producer would be offended if I don't.

NEWTON: I am going to go with South Africa.

FOSTER: So we are in the knockout round. I have nailed it basically, and I am going to predict the winners of this entire tournament. So this is very

exciting for you.

NEWTON: Ecuador and Senegal, this is so tough.

SOARES: Now this would be a cracker of a game. Argentina, Uruguay, two massive rivals and neighbors. I would pay to watch that.

FOSTER: Brazil will beat The Netherlands, although The Netherlands could fluke it. But it is Brazil and they always come up trumps.

NEWTON: England and Mexico, you know, Mexico is going to be at home.

FOSTER: We are now into the Final. All of a sudden.

NEWTON: This would be epic. Weve got France and then I am picking Brazil.

SOARES: This is not politics or foreign policy. This is just gut. So Portugal.

FOSTER: We are into the Final and Spain won.

NEWTON: I am Paula Newton here in New York and I have just completed my World Cup bracket. Brazil is going to take it all. Don't ask me why.

SOARES: I am Isa Soares and the winner of this year's World Cup will be Portugal.

FOSTER: I am Max Foster. Spain is going to win the World Cup if everything goes to plan. But you know, anything could happen in the World Cup.

NEWTON: So remember guts, spirit, stop being cynical. Keep repeating it to yourself. They are bringing it home.

(END VIDEOTAPE)

SCIUTTO: I've got to go with France, I think, that's just my gut. You can try it out yourself with CNN's bracket, where you can play out your

predictions for not just the eventual winner, but the entire tournament.

That is QUEST MEANS BUSINESS. I am Jim Sciutto in Washington.

"The Lead" with Jake Tapper is next.

(COMMERCIAL BREAK)

[17:00:00]

END