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Quest Means Business

IDF Retrieves Bodies Of Three Israeli Hostages; Diddy Shown In 2016 Video Assaulting Former Girlfriend; IBM SVP Walks Richard Through New Quantum Super Computer; Scottie Scheffler Arrested; French Police Kill Man Who Set Fire To Synagogue; Paul McCartney With $1.3 Billion At 81. Aired 4- 5p ET

Aired May 17, 2024 - 16:00   ET

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

[16:00:09]

RICHARD QUEST, CNN INTERNATIONAL HOST: So close. It was there. It was over 40, and it might just do it again. We went over 40 in the last 30 seconds

and then we pulled back. And now we are just diddling around. Yes. Is it going to hold? Standby. It's the closing bell, one, two, three. Yes. It has

done it.

My word. My goodness. Too much enjoyment for a Friday evening. It looks as though from the numbers on the screen, the Dow Jones has closed above

40,000 for the first in its history.

It will diddle around a bit over the next minute or so, but it does look like that's the way things are. The first time that the Dow have closed

above 40,000.

It is significant and it is meaningless at both the same time. I will explain more in a minute.

The markets and the main events of the day.

We will be going to Israel where we will be telling you about how the country has recovered the bodies of three hostages from a tunnel in Gaza.

Also tonight, I will tell you about the golf course, the arrest of the world's top pros near the lead of a major tournament.

And IBM, Big Blue, well, you might, have thought it was done and dusted, it is not. AI and quantum computing, and that is the chief researcher who is

going to tell me why IBM is more relevant and bigger and better than before.

Live from New York, end of the week. As you can see, we've got a busy hour together, you and me. It is Friday, May the 17th, I am Richard Quest. I

mean, business.

Good evening.

We start in Israel where the Israeli Defense Forces say that they've recovered the bodies of three hostages who were in tunnel in Gaza. The

spokesperson says the bodies have been identified and their families have been informed.

Daniel Hagari vowed that Israel would leave no stone unturned to find the remaining hostages and bring them back. He delivered the somber details at

a news conference.

(BEGIN VIDEO CLIP)

REAR ADM. DANIEL HAGARI, ISRAEL'S CHIEF MILITARY SPOKESPERSON: According to the credible information that we have gathered, Shani Louk, Amit Bouskila,

and Itshak Gelernter who were murdered by Hamas while escaping the NOVA Music Festival on October 7th, and the bodies were taken into Gaza.

They were celebrating life in the NOVA Music Festival and they were murdered by Hamas.

(END VIDEO CLIP)

QUEST: Jeremy is with me. Jeremy Diamond in Jerusalem, there are questions that need to be asked. They are not pleasant, Jeremy, so I will put that on

the table.

Do we know -- I mean, listening to what Daniel Hagari was saying, it sounds like we don't know when they died.

JEREMY DIAMOND, CNN CORRESPONDENT: No, actually, Admiral Hagari said that he -- the Israeli military believes that these three hostages were actually

killed on October 7th and their bodies were then taken into Gaza.

They were all attending that NOVA music festival along the border with Gaza on October 7th, when Hamas began attacking that festival, shooting wildly,

killing dozens of people at that festival alone.

These three individuals, Shani Louk, a 23-year-old, Amit Bouskila who is 28, and Itshak Gelernter, 58 years old. The three of them were at that

festival, but they actually managed to escape Hamas' rampage there and they escaped to the nearby kibbutz of Mefalsim, about 10 miles away, and that,

the Israeli military says is where they believe that these three individuals were killed and their bodies then taken across to Gaza.

Shani Louk, there was actually a very symbolic image of her, an image that became symbolic at least of Hamas' brutality on that day. It showed her

body in the back of a pickup truck with several Hamas militants standing over her and she is the only one of these three who we had previously

confirmed was dead. The Israeli government had announced they believe she was dead.

But for these other two, Amit Bouskila and Itshak Gelernter, their families seem to have found out today that for seven months, they believed that they

were hostages. They did not know if they were alive or dead.

And today, of course, being told not only that their loved ones were killed, but also that their bodies are now back in Israel. So at least,

amid the pain, amid the heartbreak, there is certainly a sense of closure.

QUEST: Can I just drive this point home, Jeremy, that Hamas saw its various agents or operatives or whatever you want to call it, basically had these

three bodies for the last seven months and ignoring the rights -- no rights, ignoring the wrongs of hostages couldn't be bothered to return them

to their loved ones.

[16:05:21]

DIAMOND: It is not just that they couldn't be bothered to return them, but that they see these bodies as valuable. We have seen, of course, during the

course of this war, but in previous conflicts as well that Hamas views the bodies of hostages as valuable bargaining chips and they have been

successful in the past, of course, in trading in those bodies -- sorry for using that terminology -- for bodies, but that is what they do, is they

trade in those bodies for Palestinian prisoners.

They have done it before and that is certainly was their intention to do this again. But in this case, these three bodies recovered by the Israeli

military overnight in the Gaza Strip returned, identified as who they were by forensic pathologists, and then returned to their families.

QUEST: One quick last, I need you to tell me the mood tonight.

DIAMOND: Well, certainly, we are getting reactions from across the political spectrum in Israel, all of them expressing grief for these

families, thanks to the troops that were involved in recovering their bodies. There isn't necessarily the kind of uproar or outcry for a hostage

deal renewed, I should say that we have seen in other cases where we found out that certain hostages were actually dead, that may have to do with the

fact that the Israeli military believes they were actually killed on October 7th.

But, there is no question that it is once again, another way in which the plight of these hostages, now 125 of whom remain in Gaza, about 40 of those

are believed to be dead, but renewing attention on the plate of those hostages who remain in Gaza -- Richard.

QUEST: Jeremy, I am grateful to you, and I am sorry for having to discuss these issues in such terms, but thank you.

We continue tonight, disturbing video I need to bring to your attention. It is obtained exclusively by CNN, which would appear to support at least some

of the abuse claims against Sean "Diddy" Combs.

Now, it is graphic surveillance footage, which appears to show him repeatedly hitting his then girlfriend, Cassie, inside a hotel. This is all

in 2016.

What you're about to see in Elizabeth Wagmeister's report is indeed very disturbing.

(BEGIN VIDEOTAPE)

ELIZABETH WAGMEISTER, CNN ENTERTAINMENT REPORTER (voice over): New surveillance footage obtained exclusively by CNN appears to corroborate

some of the allegations of abuse against music mogul, Sean "Diddy" Combs.

The video captured on multiple cameras shows Combs assaulting his then girlfriend, Cassie Ventura, in a hallway at a Los Angeles hotel in March

2016.

A lawsuit filed by Ventura in November last year and settled the next day reference actions that seem to match those seen in this video.

There is no audio.

According to the complaint, Combs became extremely intoxicated and punched Miss Ventura in the face, giving her a blackeye, which according to the

lawsuit, prompted Ventura to try and leave the hotel room.

The surveillance video obtained by CNN begins as she enters the hallway. The complaint says, as she exited, Mr. Combs awoke and began screaming at

Miss Ventura.

He followed her into the hallway of the hotel while yelling at her. The complaint goes on to say, he grabbed her and then took glass vases in the

hallway and threw them at her. In the surveillance video, Combs can be seen grabbing Ventura and throwing her to the ground.

As Ventura lies on the ground, Combs then kicks her twice and attempts to drag her on the floor back to the hotel room. Ventura is seen picking up a

hotel phone. Combs seems to walk back to the hotel room, then returns and appears to shove her in a corner.

Moments later, he can be seen throwing an object in her direction. According to Ventura's now settled lawsuit, the pair began dating several

years after they met in 2005. They parted ways in 2019.

Combs' attorney said the decision to settle was in no way an admission of wrongdoing.

Ventura declined to comment on the video, but her attorney told CNN: "The gut-wrenching video has only further confirmed the disturbing and predatory

behavior of Mr. Combs. Words cannot express the courage and fortitude that Miss Ventura has shown in coming forward to bring this to light."

The video hasn't been seen publicly before and comes on the heels of a series of civil lawsuits alleging Combs' involvement in sex trafficking and

sexual abuse, allegations Combs has repeatedly denied.

In a December 2023 statement, Combs responded to the claims in all the lawsuit saying, "Sickening allegations have been made against me by

individuals looking for a quick payday. Let me be absolutely clear, I did not do any of the awful things being alleged."

[16:10:14]

QUEST: Elizabeth is with me now.

The pictures tell it all. What do the authorities say? I mean, there is now clear evidence of an assault, or at least some -- arguably, some crime

being committed there.

WAGMEISTER: Well, that certainly does raise a lot of questions, doesn't it, Richard? This video was taken in 2016. That is years ago. And as we know

from Cassie's lawsuit, she claims that she suffered Diddy's abuse for over the course of a decade.

So this happened at a hotel, in a public place, and there is footage of it that we just got our hands on, so that raises a lot of questions about who

knew what and when?

QUEST: Right. I mean, one of the core issues besides whether or not the authorities go after Combs, what does Combs say about this video, which

just seems to be unbelievably graphic. My guess is that of course, Cassie has been paid off through the agreement and the NDA and therefore, we are

not going to hear too much more from her on any form of this.

But did any security at the hotel, did that management of the hotel -- I mean, how many other people knew this existed and chose to keep quiet? We

don't know.

WAGMEISTER: You know, we don't know, but we have reached out to the hotel. This hotel actually doesn't exist anymore, but it is part of a larger hotel

group. We have reached out, we have not heard back, but something interesting Richard is in Cassie's lawsuit from November of 2023.

She claims that hotel staff was paid off $50,000.00 to bury this footage. That is her claim. We have not been able to corroborate that at this point.

QUEST: Thank you. I am grateful to you. When there is more -- excellent reporting -- when there is more, please come back. Thank you.

IBM, International Business Machine is heavily invested in quantum computing. I visited their research center north of New York City, and that

is the head of research, very senior, two or three in the company and he gave me a look at what they're up to.

(BEGIN VIDEO CLIP)

DARIO GIL, IBM, SENIOR VICE PRESIDENT AND DIRECTOR OF RESEARCH: We have three of these. Three quantum processors.

QUEST: Only three?

GIL: I know. Yes, for now, only three, the most anybody has ever done.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

[16:15:04]

QUEST: Now, with all the exciting 14 minutes ago when the Dow, having flirted and dillied and dallied, did finally close above 40,000 for the

first time.

The recent gains have been fueled by easing inflation and hope the federal pull off the famous soft landing. and also the tremendous potential and

indeed, some of which has already being seen: The productivity gains for the economy, and those companies involved with, of course, AI-artificial

intelligence.

It is helping drive the market.

One of those companies is IBM, International Business Machine as it was originally called. It used to be known as Big Blue after the color of the

computers. They were blue in color. They gave us -- IBM gave us punch cards, the floppy disk, the Selectric Golf Ball Typewriter, and of course,

those famous computers that helped put man on the moon.

Do you remember? You can see it in the movie, "Hidden Figures."

("HIDDEN FIGURES" VIDEO CLIP PLAYS)

DOROTHY VAUGHAN PLAYED BY OCTAVIA SPENCER: Atta girl.

(END VIDEO CLIP)

QUEST: If you think IBM is a relic of the past, let me show you what is taking place inside this research center north of New York City.

I was there recently and I met the company's director of research. He reminded me, IBM is pushing to the forefront of AI and quantum computing.

(BEGIN VIDEOTAPE)

GIL: This is the world's most advanced quantum computer;. It is actually our next generation quantum system. It is called IBM Quantum System 2, and

is the building block of creating quantum supercomputers.

This machine that you're seeing here behind is a fully functional quantum computer that has three of the most advanced quantum processors that have

ever been built inside it and working.

QUEST: Give me an example of the sort of thing that this can do that you couldn't do before.

GIL: Look, the biggest category is simulating the physical world, the natural world, so people that want to do a chemistry calculation or a

physics calculation or a materials calculation, that you want to build a better material that corrodes less, because you're going to use it in an

industrial process.

So those kinds of calculations with classical machines are very, very difficult to do.

QUEST: What do you mean when you say it behaves like nature? It doesn't grow trees. What do you mean?

GIL: Well, we know that there are fundamental forces in nature that over the last hundred plus years, right, physicists have discovered and one of

the great discoveries over the last hundred plus years was quantum mechanics.

And we know that the way atoms behave and interact with one another can be described according to these physical laws of quantum physics and quantum

mechanics and that is what I mean that we know that nature behaves quantum mechanically, right? That this behavior that we've described with those

equations is an accurate description of how atoms work with each other.

QUEST: What is the difference between a qubit and a bit? And I realize you're probably thinking this man is an idiot.

GIL: No, no, no. Look these are like hard concepts to process, so these are not easy ideas.

QUEST: But in practical terms?

GIL: But listen, here is the difference. A bit is a binary, the binary digit. It is just a zero or a one state. There is only two states.

And what we do in the world of computing is we take all the knowledge in the world of the data, and we map that knowledge into zeros and ones, and

then we process them through transistor base technology, right, which are switches.

In this world, you take information from the world and you encode it in a richer representation than the zero and one. You get to have more states

than zero and one, and you can have combinations of zeros and ones, and it is a subtle approach of like bringing some ideas from physics to make that

happen.

At the bottom of the refrigerator where the quantum processor sits is one of the coldest places in the universe.

QUEST: How cold?

GIL: Fifteen millikelvin. Very, very close to absolute zero. And over a hundred times colder than outer space and that cooling is essential for the

functioning of these quantum computer.

Basically, inside this system, we have three of these. Three quantum processors.

QUEST: Only three?

GIL: I know. Yes, for now, only three. It is the most anybody has ever done.

QUEST: What are they doing?

GIL: So we have three of them.

QUEST: Where is it?

GIL: It is sort of hanging inside here, sort of mounted like that and use three of them, and they are all connected, right, with cabling systems and

some that go out and basically, the way it works is you're -- wherever you are in the world that you write your program, you send go, it comes here.

Here it gets converted through the systems that are on this side to microwave pulses that travel down the cryostat. We create the qubits.

[16:20:01]

QUEST: The cryostat. What a great name.

GIL: The cryostat. Isn't it?

QUEST: The cryostat.

GIL: So in this cryostat, at the very bottom of it, we found the qubits and the qubits are inside here and they are all doing the magic inside there.

In the end, we perform a measurement. We amplify the signal, and we convert it back to zeros and ones, and then you see it magically.

QUEST: In all of this, which is the most expensive bit? Is it this?

GIL: Yes, building the quantum processor, this is the most important part of the technology.

So what they do is they ring you up and say, Dario, I've got something I want you to build a better or I need this, that, and the other. How much

will it cost to use your thing-a-ma-jig?

GIL: So we offer a few different approaches to do that.

One method, we partner with governments and regions and they put IBM Quantum Systems in there. So for example, we have deployed Quantum

computers in Japan, in South Korea in Spain, in Canada, in Germany, and many in the United States.

QUEST: Are you betting the ranch on Quantum?

GIL: Look the way, Arvind Krishna, the CEO of IBM describes it, it is that this is our big bet for the future. So today, the company is focused on

hybrid cloud and AI. Those are the two defining technologies over time that we are focused like a laser on bringing that capability to enterprises.

Then next one in our horizon after that is quantum, so what IBM is today is hybrid cloud and AI company, and it will become as the technology mature, a

hybrid cloud AI and quantum company.

QUEST: What worries you about AI and to a certain extent, quantum, but that is still a bit further down -- what worries you?

GIL: We have a problem in that universities are supposed to be really, really ahead, right, in the field? But because it is so computing

intensive, AI, and they don't have enough computing capacity in universities, the universities, even the very best ones are falling behind

these AI sort of field, and we need to be able to create new infrastructure to help our educational system advance its ride, that's an example of it.

At another level is that we don't end up in a situation of have and have- nots --

QUEST: We are already there.

GIL: I know, but like one of the things is how do we democratize the value creation dimension of AI? I like to say, the AI strategy of a region, a

country, an institution cannot be reduced to being an AI user, meaning, you know, all you need from is just use it, and you're like no, you also have

to be an AI value creator.

You have to actually know how to create these models, how to actually create value on top of it, because it is going to be a massive source of

competitive advantage.

So the world cannot end up with just three, five firms who are the only ones who know how to create AI and no one else.

(END VIDEOTAPE)

QUEST: We will have more from IBM on the democratization later in the show. Dario says it needs to be democratized, AI, a new partnership between

OpenAI and Reddit aims to do just that.

Shares in Reddit jumped on the news, up some 10 percent.

OpenAI will gain access to the content generated by millions of people on the social media company, and will get access to AI technology.

At the same time, a recent report from Boston Consulting, BCG found that consumers are both excited and concerned about AI. Companies will need to

get a detailed strategy to use the new technology in ways that generates profits.

Rich Lesser is the Global Chair of BCG, he joins me now.

You were listening I am sure, carefully to Dario Gil and the way in which quantum is being put into it, and the way in which companies access. I

mean, we've got two good examples today.

Youve got the way it can be accessed, the quantum and you've got these deals like with AI and Reddit. This is what your clients are doing.

RICH LESSER, GLOBAL CHAIR, BOSTON CONSULTING GROUP: I think you're exactly right, Richard.

If last year was a year to experiment with the technology, this year is a year about focusing on how to translate it into business value and we are

so excited across a wide range of topics, how companies are really finding that you can actually drive real business value out of it, not just have a

really nifty technology for pilots and investor shows.

QUEST: So do you have to spend quite a bit of time coming up with the return on capital and the return on investment proposals when companies are

doing this to prove that the productivity gains of spending that money will be worth it?

LESSER: Absolutely. In fact, one of the things we are constantly encouraging our clients is start with what are the outcomes at scale that

if you could really deploy them would fundamentally drive business value?

[16:25:10]

It doesn't always have to be just financial, it could be a much better customer experience, a more personalized experience. It could be ways to

accelerate R&D productivity to build better molecules, or accelerate clinical development trials.

But to really start with what are the outcomes at scale that can make a difference and focus efforts because the companies that focus on a thousand

flowers bloom kind of philosophies often get really interesting pilots, but they don't really get impact.

QUEST: Now, one of the stories around today, relevant to what we are talking about is one of the top people at OpenAI who has left, Jan Leike

and he has given all load of tweets, or X or whatever we call them now.

His disgruntlement with his company is one thing and we are not going to get into that, but he does say building smarter than human machines is

inherently dangerous in DevOp. We need to be getting a better bandwidth on model, security, monitoring, confidentiality and societal impact.

Now, in your role, how do you navigate that very narrow line to get people to use it, but relevant to what these other people are saying?

LESSER: First of all, I really agree and we spend a lot of time talking to clients about what responsible AI means and how they think about what

capabilities they develop, how they deploy them, how they monitor them, how it is CEO-driven responsibility AI, not the technology departments driven

responsibility AI. You have to cascade this into multiple functions and across the business.

At the same time, at least the situations we are seeing, it is not about having smarter than humans at this stage, maybe that will come someday, it

is about taking a lot of the tasks that are massively time consuming, putting together huge reports to do a clinical trial protocol, taking 10

days do a claims processing when with AI, you can do it in one day or at least all the documentation parts of it.

We are finding applications like that that are available today that can drive that, and we are seeing it really translate into business value.

QUEST: Fascinating. Thank you very much, sir. I'm glad to have you with us today. Thank you.

Rich Lesser joining us.

Coming up, the golfer, Scottie Scheffler has wrapped up a stellar second round. The ability for him to play with such aplomb near the lead after

getting arrested earlier in the day in some very unpleasant circumstances. We will talk about it after the break.

QUEST MEANS BUSINESS.

(COMMERCIAL BREAK)

[16:31:34]

QUEST: Hello, I'm Richard Quest. Together we'll have a lot more QUEST MEANS BUSINESS. We'll take you back to IBM, where one of the top researchers

walked me through the quantum lab. And the experiments are fascinating and will change computers forever.

And the top golfer in the world performed well today. Extraordinary considering he got arrested this morning. But we will only get to that

after I've given you the news headlines because this is CNN and as you always know here, the news always comes fast.

French officials say the man shot and killed by police in a suspected arson attack on a synagogue was an Algerian national. The mayor of Rouen where

the incident occurred, said the attacker threw what appeared to be a Molotov cocktail into the building before he was then shot dead by security

forces. No one else was hurt.

Boeing shareholders have approved a $33 million pay package for the outgoing chief executive Dave Calhoun. He announced his departure from

Boeing in late March, two months after a door plug blew off a Boeing 737 Max 9. He'll leave as the highest paid CEO in Boeing's history, whilst

keeping his seat on its board of directors.

At 81 years old, the Beatles legend Sir Paul McCartney is now the first musician from the U.K. to be worth a billion pounds. What is the annual

rich list from the Sunday Times with attributes to Paul's success, his longevity and popularity across the generations.

The world's top-ranked golfer is near the lead in the PGA championships, which is quite remarkable considering he started the day in jail. A police

have charged Scottie Scheffler with assaulting a police officer outside the golf course. The officer was directing traffic. Scheffler was trying to

drive round him. And there had been a tragic accident earlier in the day, which somebody was killed. They were hit by a bus.

Nothing to do with this, of course, but Scheffler described the whole scene as chaotic. He said he misunderstood what he was being asked to do. Patrick

Snell is at the PGA Championship in Louisville in Kentucky. He's with me now. Right. This really -- having read the various bits, Patrick, this

really comes down to the policeman thinking, it tells Scheffler to stop. Scheffler continuing to move.

Policemen grabbing the car, policemen getting dragged. Scheffler then getting dragged and arrested.

PATRICK SNELL, CNN WORLD SPORT ANCHOR: Richard, I've been covering golf majors for over 30 years and I've never witnessed anything like this during

that entire time. The reaction, people in shock here on the course in Louisville, Kentucky. Media and fans are like. But I will say when

Scheffler didn't get released and took to the course there was huge support for him. There were people getting right behind him wanting to make a

statement of intent.

And he's been doing that with his golf, as you said in the introduction firing a superb 66 on Fridays if motivated somehow by what happened. But I

think it's so important, Richard to focus in on what Scottie Scheffler said in the immediate aftermath of what went down in the 6:00 a.m. hour here

local time. He said he never intended to disregard any of the instructions. He wanted to keep his focus on golf.

And he did want to pay tribute to the man who lost his life. He said he puts everything into perspective.

[16:35:05]

That was a separate incident which happened in the 5:00 a.m. hour. But within the last few minutes here, Richard at Valhalla and iconic golf

course. Remember, this is one of the big four golf men's majors. A massive global event. Scheffler has been speaking to reporters, as always candid,

nothing off limits are not holding back and really sharing the moment if you like with it. This is what he had to tell reporters about his whole

experience. Take a listen.

(BEGIN VIDEO CLIP)

SCOTTIE SCHEFFLER, WORLD NUMBER ONE GOLFER: I feel like my head's still spinning. I can't really explain what happened this morning. I did spend

some time stretching in a jail cell that was a first for me. You know, that was part of my warmup. I was just sitting there waiting and, you know, I

started going through my warmup. I felt like there was a chance I may be able to still come out here and play.

And so, I started going through my routine. I tried to get my heart rate down as much as I could today. But like I said, you know, I still feel like

my head spinning a little bit. But yes, I was fortunate to be able to make it back out and play some golf today.

(END VIDEO CLIP)

SNELL: And Richard, Scheffler is the hottest property when it comes to the world of men's golf. He's just won the masters for a second time recently.

He's aiming for a fifth victory in six tournament starts. He's aiming for a third straight tournament victory. He's still just 27 years of age. And he

really is a powerful, impactful man on and off the course. He really is a strong Christian. He's motivated by strong Christian values.

He says they help him keep a focus on the golf course. Golf often is second, when it comes to his faith, family first, and faith. I tell you

what, though, he's been attracting the headlines, but not in the kind of way he would have liked. And I will say, as I said he paid tribute to the

life of John Mills, we now know the man who passed away in that tragic accident in the 5:00 a.m. hour. And Scheffler's attorney, I can tell you,

Richard telling CNN that he plans -- Scheffler plans to plead not guilty to all charges.

QUEST: Patrick, I'm grateful. Thank you. Patrick Snell. Now the attorney Jason Citron is with me. The founder of the law firm Athlete Defender. It's

good to see you sir. I'm grateful for this. Now, look, here's an interesting one, isn't it? Because clearly, Scheffler did not intend to

break the law. And this idea that he assaulted a police officer is somewhat disingenuous because the police officer grabbed the car and got dragged.

But it doesn't mean he didn't technically commit the offence of failing to stop and failing to obey, does it?

JASON SETCHEN, ATTORNEY, ATHLETE, DEFENDER: Well, it doesn't. But with any criminal case, intent is everything right? The intent, the mindset of the

individual that allegedly committed the act. And in this situation is anyone that's been to a large-scale sporting event, particularly a golfing

event of this size knows, it's chaotic, when you're trying to go into the courts. Most golf courses are not set up for large crowds, there's usually

one way in and one way out.

And you tend to get a bottleneck when you're trying to go into the facility. And so, with a lot of times, in my experience, players are

instructed to get to the course early. And even if there's traffic, their security, to identify themselves, either through the vehicle having

markings on it in this case, I understand that was what happened.

(CROSSTALK)

SETCHEN: And try to get around the security so that they can get into the facility and go through their pre-match routine which is critical to their

performance.

QUEST: The other aspect, of course, is we're going to focus on this and it's highly likely that the police will be found to have overreacted in

many cases -- in this case. But it does -- we're only getting to that point because he is the one of the most famous golfers in the world. And he is

the number one. If it was you -- me, not you, then, you know, it would be a very different story.

SETCHEN: Well, it worked. But again, it also depends on what he was told when he was on his way to the facility or how to go about entering the

facility. If he was told to go around security that there may be traffic or fans or things going on and he needs to get inside but just go around the

outside, tell them who he is or whatever he was instructed to do. And that's exactly what he might have done.

And he couldn't identify that it was a police officer. I don't believe that there's anything that's been reported that he knew that there had been a

tragic event that had occurred prior to his pulling up to the facility. So again, that created additional chaos that he wasn't aware of. And so, as

he's walking or driving up to the facility, there's all of these things going on and he's not aware of exactly why they're going on and he's just

trying to get into go to his pre-match routine.

Remember, this man is an athlete at the highest level in the world. He is the world's number one golfer and he has a routine. And so, in his mind,

he's hyper focused to get inside and get started on his pre-match routine, so that he can do what he needs to do in the tournament. And so, with all

of this going on, he may just simply not have known what was happening and been following what he thought were the orders he was given.

[16:40:07]

I would also point out in the video that I watched, which was the video that was released this morning. There was a reporter involved and he was

talking to an officer who was basically telling him, I think most people have seen that by now. That officer's green jacket was wearing, that rain

jacket. It didn't have any police markings on it on the front of it. I watched the video a few times. It didn't say police on the front there.

I don't believe that was the officer in the incident. But if other officers were there wearing those rain jackets and the one officer that was involved

in the incident, came up to the car wearing that jacket and it didn't have police markings on it, who's to say that he even knew that he was law

enforcement?

QUEST: Do you think -- quick question. Do you think all of this gets dropped and goes away?

SETCHEN: Think it'll depend on, you know, a lot of times police officers wear body cameras and I believe Louisville probably their police department

does have body cameras on -- they will have body cameras on. So, if they did, I would be curious to see what the footage shows and how the

interaction went. I think ultimately, it should be at least looked at very closely by the prosecutor's office who ultimately will decide what to

charge in this case and should be considered to be dropped based on the information that at least that has been put out so far.

QUEST: Just quickly, I don't know which bit of it (INAUDIBLE) it does seem that they do have all these large parts of Louisville Metro Police do wear

body cameras. Sir, I'm grateful for you. Thank you. Thank you for giving us some --

SETCHEN: I'm grateful to you. Thank you for that --

(CROSSTALK)

QUEST: Thank you. More than two-thirds of African nations now have access to the sea making maritime trade, a vital economic lifeline. U.N.

Conference on Trade and Development Fund. 1.3 billion tons of goods pass through the continent's seaports in 2021.

Connecting Africa's Eleni Giokos tells us about Morocco's new gateway for trade in Africa.

(BEGIN VIDEOTAPE)

ELENI GIOKOS, CNN CORRESPONDENT (voice-over): This roadway leads to what will become the Dakhla Atlantic port.

NISRINE IOUZZI, DIRECTOR, DAKHLA ATLANTIC PORT CONSTRUCTION: We are constructing the Nico system. We have a big infrastructure, which is the

bridge, maritime bridge. So, we have three bases. The first one is for ship repair, the second one for fishing activities, and the third one for

commercial activities.

GIOKOS (voiceover): The $1.2 billion project will also include two industrial zones for logistics services (INAUDIBLE) oversees construction,

and she says by the end of the phase one, the port is expected to be handling about 35 million tons of goods a year, but they're not stopping

there.

In the second phase, we will also construct second capacity which eight million ton that will be added for -- specially for dry cargo.

GIOKOS (voiceover): This project is part of Morocco's larger port strategy. The general manager of the regional Investment Center of Dakhla says the

port is strategically positioned to ensure the nation's southern provinces can also become a gateway for trade.

MOUNIR HOUARI, GENERAL MANAGER, REGIONAL INVESTMENT CENTER, DAKHLA: Morocco historically is very connected to his African roots. We strongly believe

that with this infrastructure, port infrastructure, road infrastructure, renewable energy, we will be very attractive for investors that aim to get

to the one of the fastest growing market which is the West African market.

GIOKOS (voiceover): With the implementation of the African continental free trade agreements, a deal aimed at boosting intra African trade by creating

a single market for goods and services. He says the port will provide Africa with the opportunity to keep the production of raw materials within

the continent.

HOUARI: Less than five percent of the African natural resources are processed in Africa, because there is no industrial infrastructure and

exporting infrastructure. So, the fact that we are having this free trade zone will encourage many Africans to be part of this biggest project and to

start processing African natural resources in Africa, allowing African countries to create more jobs to improve their skills and the know-how and

to strengthen their own industries.

(END VIDEOTAPE)

QUEST: Still to come. QUEST MEANS BUSINESS. Beijing has taken some of its strongest measures yet to prop up China's struggling real estate. We will

have a report from Beijing.

(COMMERCIAL BREAK)

[16:47:15]

QUEST: China has unveiled sweeping new measures. It's meant to rescue its struggling property sector. The Chinese real estate stocks soared on the

news look at those numbers. The secular ones accounted for as much as 30 percent of the country's economic activity. CNN's Marc Stewart has the

details.

MARC STEWART, CNN CORRESPONDENT: Let me share with you the reaction here in China. One state newspaper describing the measures as heavyweight policies.

Going on to say it marked a significant historic moment for the real estate sector. A big focus of this rescue plan puts the burden on local

governments to buy unsold homes from developers. It would also ease some of the rules on purchases.

The country's top economic official said the government should buy the homes and convert them into affordable social housing. As far as the

financing behind this, the People's Bank of China will set up a $41.5 billion loan program. The housing crisis has been a real economic detriment

to China. But this is something the stock market has wanted. Expectations of this plant have lifted stocks since last month.

Investors are putting their money back into Chinese shares. And finally, these measures come as new data suggested the property woes here in China

got even worse in April. Marc Stewart, CNN, Beijing.

QUEST: After the break. We are back with IBM in upstate New York where they are betting big on Quantum. I visited the lab that's developing the chips

behind the next generation of supercomputers.

(COMMERCIAL BREAK)

[16:51:28]

QUEST: For IBM's supercomputers, it really boils down to one critical piece, it's the chip. When I visited its laboratory in suburban New York,

IBM's director of Quantum Research showed me how those chips are put to the test.

(BEGIN VIDEOTAPE)

JERRY CHOW, IMB FELLOW AND DIRECTOR, QUANTUM INFRASTRUCTURE: We're about to go to one of our IBM Quantum research and development labs. So, we are

testing a lot of the chips that we build for quantum computers. And a lot of the experiments that you see in these systems here, these are all a you

can see a large number of these dilution refrigerators which cooled down our processors and allows us to figure out how they're performing.

QUEST: Now obviously, I have got no idea what any of this is doing. What's the important bit here?

CHOW: I'd say that what you can see is that there's a large number of experiments all going on at the same time.

QUEST: When you say experiment. What do you mean?

CHOW: So, what we do is we actually go and try and improve some aspect of our quantum processors. So, something like the coherence time. How long

does a quantum state actually live on our qubits? It's typically on the orders of several hundreds of microseconds to milliseconds. And experiments

often involve trying to improve that. Make those times longer by changing some aspects of how we fabricate the devices or how we designed the

devices.

QUEST: Oh, this is the vacuum.

CHOW: This is the -- this is -- this is the vacuum and this is where it's cold, 15 millikelvin. Right? So this is -- this one is also running a

quantum processor on that side over there, we'll be able to show you what and this side --

(CROSSTALK)

QUEST: One thing I do love about all of this despite all the high technology.

CHOW: A lot of plumbing.

QUEST: Exactly.

CHOW: Yes.

QUEST: It's a lot of plumbing.

CHOW: Lot of plumbing.

QUEST: Basic plumbing.

CHOW: Basic plumbing.

QUEST: The chilled water goes that way, the hot water goes that way (INAUDIBLE)

CHOW: Yes, pumps, plumbing.

QUEST: We need plumbers.

CHOW: I would say that our cryogenic engineers are phenomenal plumbers. You get to see a open one of our systems. This is one that's in the throes of

swapping out our devices and sample --

(CROSSTALK)

QUEST: What is this made off?

CHOW: What you're looking at are the -- is the -- is the shell of the dilution refrigerator. These plates are actually gold-plated copper. And

so, mirror here is actually going to help assist to work with you to --

QUEST: I'm going to help you put it together.

UNIDENTIFIED MALE: That sounds like a plan. All right. Let's see it a little bit. Here we go.

QUEST: Oh, wait a minute.

UNIDENTIFIED MALE: (INAUDIBLE) coming down, going down. There we go.

QUEST: And what do you then?

UNIDENTIFIED MALE: There we go.

QUEST: Oh.

UNIDENTIFIED MALE: (INAUDIBLE) So now we have to get some long screws.

QUEST: When all this goes horribly wrong don't send me the bill. I have made my contribution to the future of quantum computing. And it is all with

a screwdriver.

(END VIDEOTAPE)

QUEST: There's no answer to that. The Dow was closed above 40,000 for the first time ever. It briefly touched the level on yesterday's session. And,

you know, we never really got there until the last minute then it went through, and then it came back and then it went through again. And it did

actually stop. So only three above but the psychological barrier has now been broken, and you will not find it as difficult in the future to keep

and maintain.

The triple stack shows another number for you. The S&P 500 edged higher and you will not find it as difficult in the future to keep and maintain.

[16:55:05]

The triple stack shows another number for you. The S&P 500 edged higher. While the NASDAQ actually posted a minor loss. GameStop's meme stock rally

a screech to a halt. It's going to be 19 percent lower after soaring nearly 75 percent on Monday. I just pity those people who are on the wrong side of

that momentum trade and there will be plenty you were. We will have a profitable moment after the break.

(COMMERCIAL BREAK)

QUEST: Tonight's profitable moment, it's Friday. So that's always a good moment, a good chance perhaps for us to reflect on the weekend. I think

amongst all the horrible things that are happening in the world at the moment, the Dow crossing 40,000 and closing there tonight is worthy of note

and merit. Look, 40,000 Is a number that has no magic attached to it. It's no different to 30,000, 45,000 or whatever it is.

Over time inflation and the value of investments and corporate earnings will push the Dow higher. It is the speed with -- which it get there and

the solidity if you will. The foundations upon which it is rescuing. Is this dot com boom and bust? Tottering, ready to fall or not? I don't think

so for one second. I think that the earnings growth that we've seen in the United States, which bluntly put is the cleanest white shirt in town.

The cleanest bit of laundry you can find. Why? Because everyone Alice has much greater problems than the United States. And being fully invested,

whether through bonds, currencies or whatever, ETFs in the U.S. market still remains the most obvious way for long-term equity growth. And so,

40,000 makes sense. The fact it took us a while to get there, the psychological barrier of pushing through, but now we are one would expect,

obviously a possible retrenchment in a week or two, then it goes back up again.

And before long, you and I are wondering about 45,050. Earnings and still excellent. The U.S. companies are making good money. And as we've heard

tonight, the issue and question of A.I., which will boost productivity is still to yet be fully realized. There's plenty of reason to be bullish

tonight.

[17:00:02]

And that's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, I hope it's profitable. I'll see

you next week.

END