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Quest Means Business

Stocks Rally, Lira Hits record Lows After Erdogan Victory; Erdogan Faces Mounting Economic Problems; Spanish Prime Minister Gambles on Early Vote after Party Routed in Local Ballots; Ugandans Convicted Of Homosexual To Face Life In Prison; Violence Ticks Up In Once-Peaceful Jerich; The Venice Grand Canal Turns Bright Green. Aired 3-4p ET

Aired May 29, 2023 - 15:00:00   ET

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

[15:00:50]

ZAIN ASHER, CNN INTERNATIONAL HOST: European markets finished Monday slightly lower. The DAX and the CAC 40 lost about a fifth of one percent.

US and UK markets are closed. Those are the markets and these are the main events.

The lira hits a record low after President Erdogan clinches a third term.

In Washington, Republican-Democratic leaders push for votes for the debt ceiling deal.

And Universal Music Group eyes Queens music catalogue, a source tells CNN the deal could top $1 billion.

Coming to you live from New York, it is Monday, May 29th. I'm Zain Asher, in for my colleague, Richard Quest, and this is QUEST MEANS BUSINESS.

Tonight, Turkish stocks rally as the lira slips to record lows after President Recep Tayyip Erdogan sealed his iron grip on power winning re-

election. The currency has weakened to around 20 to the US dollar. It has fallen more than seven percent this year and more than 90 percent in a

decade.

The country's benchmark index gained 4.1 percent on Monday. Turkey's international bonds were steady. Still, the economic outlook is bleak.

Nada Bashir has more.

(BEGIN VIDEOTAPE)

NADA BASHIR, CNN REPORTER (voice over): Cheers of triumph, a declaration of victory.

President Recep Tayyip Erdogan secured yet another term in office. After a closely fought runoff election on Sunday, Erdogan of the incumbent, AK

Party, came away with just over 52 percent of the vote, according to preliminary results.

A comfortable win in the face of what many analysts believe to be his biggest political challenge in over two decades.

BASHIR (on camera): Well, here, outside the AK Party headquarters in Istanbul, you can see the crowds behind me, thousands of President Erdogan

supporters have gathered to celebrate his election victory and there is a real sense of jubilation, of triumph here. These are some of his most

ardent supporters.

UNIDENTIFIED FEMALE (through translator): We love him very much. He's our father, our grandfather, our everything.

We voted for him because we trust him. We love him very much. We are always with him.

BASHIR (voice over): In the opposition camp, Kemal Kilicdaroglu, the leader of an alliance of opposition parties fell by more than two million votes

behind Erdogan, a bitter blow to a once optimistic coalition, hopeful for change in Turkey.

KEMAL KILICDAROGLU, LEADER OF OPPOSITION PARTY (through translator): In this election, the will of the people to change an authoritarian government

became clear despite all the pressures.

BASHIR (voice over): The challenges ahead for the president are many. Chief among them, the economy.

Turkey is in the depths of a severe cost of living crisis, with soaring inflation and a plummeting lira caused in large part by Erdogan's own

unorthodox monetary policies.

Meanwhile, anger of the state's poor preparation and chaotic response to February's devastating earthquake is still raw. With more than 50,000

people killed and millions more displaced by the disaster.

On the global stage, Turkey's strongman has cemented the country's place as an influential power broker in the region, sometimes at the cost of

straining relations with the West.

But at home, his leadership has stoked fears over the future of democracy in Turkey.

Over recent years, Erdogan has doubled down on crushing dissent, centralizing his grip on state power and ensuring his net total influence

over the country's media.

Despite criticism, supporters maintain that this is a win for political stability. For opponents, however, Sunday's result has only deepened fears

that the country could be heading ever closer towards authoritarian territory.

Nada Bashir, CNN, Istanbul.

(END VIDEOTAPE)

[15:05:10]

ASHER: Turkey is grappling with a plunging currency, depleted foreign reserves and of course, a cost of living crisis as well.

President Erdogan backs an unconventional view that raising interest rates increases inflation. That policy was a major factor in a currency crisis in

2021, which sent annual inflation to a peak of 85.5 percent last year. It is now cooling, but still around 43 percent.

During the campaign, Erdogan gave no indication he plans to change his economic policies. Let's listen to what he said in his victory speech.

(BEGIN VIDEO CLIP)

RECEP TAYYIP ERDOGAN, TURKISH PRESIDENT (through translator): It was caused by the price increases as a result of inflation and compensating for

welfare losses is the most urgent issue of the process ahead. It is not difficult for us to find a solution to these issues.

(END VIDEO CLIP)

ASHER: And Richard Quest joins me live now from Antalya.

So Richard, as we were just talking about that, Erdogan has certainly been very reluctant to raise interest rates and during the campaign, he doubled

down on many of his unorthodox economic principles.

Just walk us through what another five years of Erdogan at the helm means for inflation in Turkey, and also the Turkish lira as well.

RICHARD QUEST, CNN INTERNATIONAL HOST: Let's start with the lira, which went over 20 to the dollar. So, it's now just a record low, just about. It

is bobbing around 20, so it's lost maybe two lira in the last couple of weeks and this is an indication that they expect high budget deficits, the

market is expecting a continued increased level of borrowing for the foreseeable future, and that the economy is going to weaken.

That's the fundamental point here, Zain. We can dress it up any which way, backwards and upside down, but the economy stands to weaken if they

continue to have inflation running at 40 percent. And by the way, food inflation is well over 65 to 70 percent.

So the issue now becomes how does he get inflation down if he is going to use his unorthodox methods, which he's been using for some time, and

haven't really worked? Certainly, they are not going to work like anything he expects.

I don't know the answer to that, but what I can think and can see is that there is going to be -- he is going to put forward some sort of mini boom,

it'll make people feel better. You saw that in the stock market today.

The rally there is because you're going to get more government spending, you're going to get policies on taxes, that's going to perhaps put more

money in people's pockets, which, of course, Zain will raise inflation even further.

It is -- I never want to be disrespectful, but it is a bit like being in economics "Alice in Wonderland" to hear the economic policies and realize

what the reality is.

ASHER: It's bizarre, to say the least, Richard. But as you point out, food inflation right now topping -- what -- 60 to 65 percent. Why have Erdogan

supporters been just so reluctant to -- or rather, why have they decided to shrug off his unorthodox economic policies knowing that it is hurting the

economy?

QUEST: I think you've got to also think about, say Viktor Orban in Hungary, where the economy wasn't doing that well, but he had done a very successful

job in neutralizing or neutering the opposition. State media is just about all under Orban's control, all media just about, and they've gerrymandered

the electoral system.

Now you look at Turkey, and it's just about the same story. Media is just about under the government's control or its proxies. You had a

gerrymandering of the system. You've had the buying of votes through public works and infrastructure spend, so there are a lot of people who depend

upon the government expenditures in one way or another.

And when you turn around to those people and say, listen, if you've ever put the other guy, by the way, you might find that your job is gone, your

project is gone, your infrastructure has changed, or whatever.

And so although the vote itself is free and fair, it is the level playing field that doesn't exist beforehand. Now, that's been well known for a long

time, Zain. What is perhaps more interesting and nuanced is why the opposition candidate and there was just one main candidate, they all

clubbed together, why he couldn't do better, and why the third candidate threw his weight behind Erdogan in the end?

These are the nuances that really have to be examined, but for the time being, five more years of Erdogan and I mean, he is reported to be okay,

but his health I don't think is that good, and so, in the longer term, the question is who's next?

[15:10:04]

ASHER: And Richard, just contrast where we are now to where we were when Erdogan first came to power? You think about the first sort of five, ten

years of Erdogan's rule. He was largely credited with a significant amount of economic growth in Turkey, and also lifting millions of people out of

poverty as well. Just contrast that to where things stand now, how did we get here?

QUEST: We got here through again, gerrymandering the system. We got here because he changed the rules from the prime ministerial to the presidential

system, gave him more power, gave him more influence, gave him more abilities.

And then you just literally keep plugging away of closing all the loopholes and the opposition targets. And finally, you end up with a country where,

to be honest, Zain people here are very proud that Turkey is now a much stronger regional power than it has been for many years.

So whether it is Ukraine, whether it is Syria in the Middle East, whether it is NATO overall, Turkey now has a position at the table that's a lot

more powerful and people like to see that they like the strong leader.

And by the way, just -- you might have seen last night, we were in the glory outside tonight, the weather has given perhaps its own verdict on the

election.

Just look at how dreadful -- I think we've got some pictures today.

ASHER: We are looking at the pictures, Richard.

QUEST: We were hoping to broadcast from the roof with glorious -- yes, glorious Antalya all around me, more like a biblical flood that came down

and so we've come into the lobby instead to take refuge.

ASHER: We know what the weather thinks of the election there. Richard Quest, live for us there, thank you so much.

We appreciate it.

All right, Spain will head to the polls in just a few weeks as the prime minister gambles on a snap election after being routed in regional ballots.

Pedro Sanchez made the announcement Monday morning, as the Conservative People's Party celebrated massive gains against his socialist party in

local and regional elections on Sunday.

Political watchers say Sanchez is betting his rivals won't be ready for a national campaign in time for the poll on July 3rd.

Al Goodman joins us live now from Madrid.

So Al, how much of a gamble is this do you think for Pedro Sanchez?

AL GOODMAN, JOURNALIST: Hi, Zain.

Well, political analysts are saying it's a huge gamble and everybody' is watching and he called these snap parliamentary elections in July, he said

in his announcement, because of the results in Sunday's vote where his socialist party took a lot of losses and he said he took responsibility for

that.

But the overall impact of that was not expected. That was the big surprise on Sunday. If there was a surprise in the announcement on Monday from him,

the surprise on Sunday was that the polls had said the conservatives were going to do well in those elections, but not as well as they did.

They ousted socialist leaders from city halls and regional governments in places that the socialists usually win. So now, the leader of the

conservative popular party or People's Party, as it's also called, has called on Spaniards to finish the job and get the socialists out of the

national government.

In the background, importantly, Zain is Spain's far-right party VOX, which doubled the number of its votes in the local elections on Sunday compared

to four years ago and got congratulations this day, from far-right leaders, well-known far-right leaders in Italy and in France.

There are reports that the far right is trying to negotiate some governing deals now with the main conservative party.

So a political analyst tells CNN, that Sanchez's move here is possibly to motivate and let progressive voters know in particular that the far-right

is about to get a lot more power in Spain, this anti-immigrant party that's against all their progressive values to try to get them to get out and vote

in July and save him and save the socialists and keep them in power.

It is a very huge gamble -- Zain.

ASHER: Yes, but as you point out, that is what he is betting on.

So what's the overall message here? What's the takeaway? Just the fact that the PP did relatively well in the regional elections? What should we glean

from that in terms of Spain's political landscape?

GOODMAN: Well, on the right and on the left, for a long time, for many years, until about a decade ago, there were two big parties, the socialist

and the conservative party, but then all of these smaller parties came up and part of the conservatives' gains on Sunday was basically the

disappearance of this moderate party called Citizens. They're out, Ciudadanos. They have basically lost all of their power in the local and

regional elections and all of those votes, hundreds of thousands of them were picked up by the main conservative party.

The far-right party is also moving up, but Sanchez who's got a governing -- he has got a minority government, a governing coalition with a party on the

farther left than the socialist, he is still plagued by all of this in party far left fighting.

[15:15:12]

And so the analysts say that part of this move for the July elections is to try to get all these smaller leftist parties that support him to join

forces and go in it one at a time, so it's just the socialist and a far left alternative and that could pack in a lot more votes under Spain's

voting system that tends to favor a bigger player rather than a bunch of little small parties.

That's all the things or among the things that people are watching -- Zain.

ASHER: All right, Al Goodman live for us there. We'll see what happens on July 23rd.

All right, hits like "Bohemian Rhapsody," and "Another One Bites the Dust" could soon have a new owner. According to a source, talks are underway for

the rights to Queen's music catalogue and it could cause a record amount. Chloe Melas reports.

(COMMERCIAL BREAK)

ASHER: A deal has been reached to raise the US debt limit. Now the problem is finding enough lawmakers to support it. The White House and top

Republicans are trying to secure votes from moderates in order to pass the agreement.

The first big test comes Tuesday when the bill goes before House Rules Committee. If that panel approves it, a full House vote could take place as

soon as Wednesday.

The Senate would need to approve it next. Congress doesn't allow more borrowing and the US Treasury could run out of money next week.

CNN's national politics reporter, Eva McKend joins us live now from Washington, DC.

So Eva, good to see you.

How hard do you think it is going to be at this point for the White House to really gather support from progressives, especially given that this bill

essentially reinstates student loan payments, and then also the work requirements for entitlement programs are a problem as well for certain

progressives, how hard is it going to be?

EVA MCKEND, CNN NATIONAL POLITICS REPORTER: You know, Zain, it's still going to be pretty difficult because essentially, this deal is among the

centrists in both parties, and the big question now is, are there enough of them to bring this over the finish line? That was one of the first texts I

got actually from a chief-of-staff of a prominent progressive member who didn't even realize because the president had been saying that he wasn't

going to negotiate.

So I think progressives are kind of just having whiplash right now trying to come to terms with the fact that work requirements were even on the

table. That is a really hard sell for Democrats.

Other things that are in this deal in addition to lifting the debt ceiling for the next two years, cap spending at two years, there are no cuts to

military or veterans benefits, but it does claw back $29 billion in unspent COVID funds.

So all of the federal dollars that were pumped into the states, pumped into the economy during the pandemic, Republicans have been really eager to claw

back some of that money that went unused and that is part of this deal.

But the work requirements, Zain, that is really the source of stress, I think, among the left, and we know that the White House is actively making

calls to progressives to try to convince them to support this and essentially saying, consider the alternative, consider going into default.

ASHER: Yes, and nobody wants that.

Let's just talk about just the timeline here. I'm a positive person. Right? So let's assume everything goes well, in terms of selling it to the House.

Is there enough time? We've got until next week, Monday, so a week today, is there enough time to get this through?

MCKEND: Well, we know that lawmakers pretty much the only space that they operate in is under pressure and we have seen, you know similar crisis

averted in the final hour. It is possible, but they would have to move pretty quickly so they would have to clear the House before going to the

Senate.

We know that some Republican senators are uneasy about this bill. Prior to the bill text coming out, at least one Republican senator said if he didn't

like the deal, he would do everything he could procedurally to slow it down. So this is still going to be a nail biter, Zain, but it is possible.

ASHER: All right, we will see. We'll see what happens next week. Eva McKend, live for us there. Thank you so much.

All right, your new favorite ad campaign could soon be made by AI. NVIDIA and the world's biggest ad agency, WPP are teaming up to create a new AI

tool that will use NVIDIA's omniverse, which you can see here and will generate a photo realistic ads using platforms Adobe and Getty Images.

Time is of the essence. The tool will make it possible for ad campaigns to be made in minutes instead of weeks.

Anna Stewart joining us live now from London.

So Anna, just walk us through the benefits here in terms of just who stands to gain, especially when it comes to making ads a lot more tailored, a lot

more immersive and also more effective.

ANNA STEWART, CNN REPORTER: There are so many benefits here if you think about it. Artificial intelligence is revolutionizing so many sectors, but

this is a $700 billion industry that really, a lot of those shoots that takes so many weeks that involve huge booking fees for locations and staff

on the creative side, the technical side, that could all kind of be reduced down to a few minutes or hours perhaps with this very clever platform.

So there are benefits in terms of the costs. You create a digital twin, you use AI to generate a completely unique image according to whatever you

want. And in that terms, it's also unrestricted.

Imagine, you can have a car as you saw, I think there in the video driving across the desert. It would be just as easy for AI to put that car on the

moon. You are completely unbounded.

And then you're right, as the whole personalization issue and I think in the future, you and I will probably see completely different adverts. It

won't just be as simple ads, you'll see a car, and it's driving around in New York, and I'll see one driving around Trafalgar Square, I think it'll

take the data that it already knows about us through all these platforms and will probably make it really targeted.

So they'll know what it is that I like, who I hang out with, where I like to go, what inspires me. We might see something totally different for the

same car in probably just a few months or years' time. So there's that.

The downside to all of this, and we talk about this a lot is the issue of jobs, because surely if it's going to have huge cost savings, it's also

going to reduce the amount of human labor that is required to make some of these campaigns. That is a fact.

It's also a fact that it's not just creative and advertising industries that are being hit here, also actually computer engineering and coding, all

of these things can also be done or helped with ChatGPT and the other generative AI systems out there.

It was interesting though, the CEO of WPP, the world's biggest advertising agency that is striking this deal, Mike Read was speaking to the FT, and he

said, it is much easier to identify the jobs that AI will disrupt than it is to identify the jobs that AI will create and that's the good news there.

AI will facilitate jobs, it will create jobs as well -- Zain.

ASHER: Gosh, when you talk about just how targeted some of these ads are going to be and just the information they'll know about us, frightening to

say the least.

But we know that NVIDIA is partnering with Getty and Shutterstock. Just explain to us what that means for copyright issues and also how you define

original content?

STEWART: Yes, artificial intelligence has really sent a bit of a shudder down the spine of particularly, I think, creative industries particularly

the music industry for example with AI able to help generate a fresh new song, but using all of the old backlogs of all sorts of artists that you

don't even know about.

[15:25:10]

So how unique is a song? How unique is anything if AI is being trained on treasure troves of other people's work, pictures, text, songs -- you name

it.

So I think it's really interesting with this particular deal that NVIDIA has decided it's going to partner with Shutterstock and Getty and that kind

of gets behind this whole hotbed of legal issues, and I think regulation will come and try and sort of draw a line here, because the issue of

copyright is a real one.

The amazing thing about generative AI is it can create any image or song or text that you want, it will be unique, but it won't really be new, because

it will have learned how to do that through all sorts of existing content and images.

So in many ways, it still is very interesting because it gets ahead of this debate, I think -- Zain.

ASHER: Gosh, so many issues with this. I don't know whether to be in awe or terrified. Anna Stewart, live for us there. Thank you so much.

All right, Universal Music might soon be singing "We are the Champions" in a bid to acquire Queen's music catalogue.

A source tells CNN the group is in talks to buy it from Disney Music within the next month or so. The band's hits like "Don't Stop Me Now" and

"Bohemian Rhapsody" will come at a staggering cost. A source tells CNN that the sale could surpass a billion dollars.

Disney is denying that sale is in the works.

CHLOE MELAS, CNN ENTERTAINMENT REPORTER: Zain, this is very big music news. A source telling me that conversations are well underway for Universal

Music Group to potentially acquire the Queen catalogue from Disney Music Group.

Now, this source who is close to the conversations telling me that this could close and be acquired within the next month and that it could be

upwards of $1 billion.

Now I have not heard back from Universal Music Group, but Disney did tell me that they have no plans to sell the catalogue. But again, this source

who is close to the conversation is telling me that the conversations are happening, they are well underway.

Now this is a very significant acquisition if it goes through because this would be the most expensive music catalogue acquisition in history.

Now Bruce Springsteen previously made headlines in December 2021, with the sale of his song catalogue and that was in reportedly the vicinity of about

$500 million and that is arguably the highest amount a music catalogue has sold for, but obviously Queen, a billion dollars, that would be a new

record set.

You know, we have seen several musicians sell their catalogues from Justin Bieber to the estate of David Bowie, Sting, you know, this is kind of the

next move for artists. It's a lucrative move for them. And obviously, it creates generational wealth.

So I will keep you posted on this deal as those conversations continue.

Back to you.

ASHER: Chloe Melas there.

Being gay in Uganda has never been easy, but it's just become far more dangerous. A look at the country's draconian new laws targeting the LGBTQ

community that have many people fearing for their safety and even their lives as well.

(COMMERCIAL BREAK)

[15:31:30]

ASHER: There is fear and anger in Uganda after the country's president signed into law, one of the harshest anti-gay bills in the world. People

convicted of homosexual activity can now be sentenced to life in prison. And sex education for the gay community has been made illegal.

HIV/AIDS organizations say that move puts progress against the disease in grave jeopardy. Our David McKenzie has more.

DAVE MCKENZIE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, certainly this law that was signed by President Museveni is one of the most draconian

anti-LGBTQ laws in the world. That includes, amongst other things, a life sentence for those who are caught in the act of homosexuality. And

crucially, it makes illegal the promotion of homosexuality and I'm using the words within that bill, which means that education could be curbed for

sexual education.

And also, asked for people to out those who they believe are LGBTQ to the authorities. I've spoken to several activists today in Uganda who fear for

their lives at this moment. They worried that people will take the law into their own hands. And there is already been an atmosphere of fear in the

lead up to the signing of the bill. Now, the proponents of the bill say that this is an important moment for Uganda.

This is a deeply conservative, mostly Christian country. And the man who put his name to the bill had this to say.

(BEGIN VIDEO CLIP)

YOWERI MUSEVENI, PRESIDENT OF UGANDA: So, if we don't stand our ground, as a country, as a people as a community, then we will completely have ceded

our sovereignty and independence as a country.

(END VIDEO CLIP)

MCKENZIE: Now, Museveni has already faced a great deal of pressure not to sign the bill. And I'm sure he'll be roundly criticized by Western

governments and potentially pay sanctions for this. Uganda is very dependent on support from the European Union and the U.S. for both

humanitarian aid and in the U.S. case, military support, but he has stood firm and says this law should be put forward and these punishments should

be meted out.

Now, despite the talk of sovereignty, there's a growing body of evidence that U.S. groups were certainly involved in helping Ugandan lawmakers push

through this law, conservative groups and the same is the case in Ghana where a similar law is being proposed.

David McKenzie, CNN Johannesburg.

ASHER: Nigeria's new president has been sworn into office. Bola Ahmed Tinubu held his inauguration in Abuja despite the opposition's legal

challenge, there's election and that's not the only test that Tinubu is facing right now. He inherits a country with a struggling economy and

widespread insecurity.

Stephanie Busari has more.

(BEGIN VIDEOTAPE)

STEPHANIE BUSARI, CNN SENIOR AFRICA EDITOR (voiceover): He's the man on a so-called Broom Revolution. Bola Ahmed Tinubu is promising to clean up

Africa's largest economy.

YOWERI MUSEVENI, PRESIDENT NIGERIA: Sweeping corruption away.

BUSARI (voiceover): But that's only one of the challenges he faces. His first is slightly more immediate. A legal one from the country's

opposition. Tinubu from the ruling APC party may have been declared the winner back in March, but many have criticized the election for voting

irregularities, violence and attempts to disenfranchise voters.

[15:35:03]

MUSEVENI: To those who didn't support me, I ask that you will not allow the disappointment of this moment to keep you from realizing the story of

national progress we can make by working together.

BUSARI: Former two-time Governor Tinubu has long harbored ambitions to roll Nigeria. But it will be a challenge of a lifetime to unite a fractured

nation, fix an economy on life support and tackles spiraling insecurity.

BUSARI (voiceover): Nigeria's total debt stands at more than $103 billion. And some analysts say the incoming president was get to grips with this

urgently.

ROLAKE AKINKUGBE-FILANI, CHIEF COMMERCIAL OFFICER, MIXTA AFRICA: Is now really a focus on the structural aspects of building sustainable economic

development? How are we going to plug some of the inefficiencies and the waste stages in the system?

BUSARI (voiceover): But that's not all. The country has grappled with violence, insurgency and crime, leaving some wondering which way forward.

AKINKUGBE-FILANI: One of the challenges of Nigerian societies here is there still huge polarization between the ultra-rich and the super poor. And in

some ways, successive governments have lost the social contract with a majority of the population.

BUSARI: Nigeria also faces a multitude of social problems, including inadequate access to education and health care, widespread poverty and

gender inequality. And expectations are high, that Tinubu will hit the ground running.

UNIDENTIFIED FEMALE: I believe those future and I believe he will be -- he's a -- he's fitting for the position.

UNIDENTIFIED MALE: We really don't need a government coming up and saying they're going to give us all the job. We just need a government that puts

things in place for us to achieve what we can naturally achieve as very strong-willed people.

BUSARI (voiceover): As he assumed office Tinubu was work to provide real solutions to these pressing problems. And only time will tell if we can

live up to the aspirations of the Nigerian people.

Stephanie Busari, CNN, Lagos.

(END VIDEOTAPE)

ASHER: New violence in one of the world's oldest cities. Israelis and Palestinians are now clashing in Jericho. CNN's Hadas Gold explains what's

behind the fighting in this one's peaceful tourist town.

(BEGIN VIDEOTAPE)

HADAS GOLD, CNN JERUSALEM CORRESPONDENT (voiceover): The palm lined road into the Israeli occupied city of Jericho and the homes in the Aqabat Jaber

refugee camp bear the scars of the night before. Another Israeli military incursion, targeting with the idea of scissor militants.

GOLD: Nine Palestinians have been killed so far this year here in the Aqabat Jaber refugee camp. And posters like these now line. The center and

as well as walls and houses around this camp. And while in places like Jenin or Nablus, you might see in plenty of these posters of people killed.

But this is so unusual for this refugee camp that hasn't seen violence like this in decades.

GOLD (voiceover): Better known as a tourist destination. Jericho is one of the oldest cities in the world and the lowest below sea level with biblical

significance while many wealthy Palestinians also have their weekend villas. It's also home to thousands of Palestinians who live in this

refugee camp.

The Israeli military says militants have risen up in the camp in recent months, carrying out shooting attacks against Israelis, including one that

killed American Israeli Elan Ganeles here in February. Militant group Hamas has claimed the first five of those killed by Israeli forces this year as

its members. There's no indication the other four including two teenagers were members of a group.

The residents of the camp say they now live in a state of fear. Mahmoud Jamal Hassan Hamdan was killed on March 1st during an operation to

apprehend those who killed Elan Ganeles. His family says he was shot while he was on his way home from work. What's left behind a, traumatized family

and a 10-year-old little sister who has grown up faster than she should.

RINAD HAMDAN, SISTER OF MAN KILLED BY ISRAELI SECURITY FORCES (through translator): I don't know what to do when I hear gunshots. I just leave it

to God. I'm now used to it because the soldiers come to the camp. I feel scared for my brothers. I feel scared for the people around us. But it's

OK. He died as a martyr. Our God gave Mahmoud to my mom and took him back. It's a sacrifice to God.

GOLD (voiceover): Jibril Al-Lada was 17 when he was killed by Israeli soldiers on May 1st while they carried out arrest.

UM JIBRIL, MOTHER OF MAN KILLED BY ISRAELI SECURITY FORCES (through translator): We were never used to soldiers in the camp. They're now

invading the camp every two or three days and terrorizing people.

GOLD (voiceover): He had been imprisoned once before by Israeli authorities. He's older brother currently in an Israeli prison as well. One

secret charge as the Israeli prison authority told his family. Jibril's parents say he heard his cousin had been injured so he ran out to see what

happened when he was shot as well.

[15:40:04]

In response to CNN's inquiries, the IDF said both Jabril and Mahmoud's cases are "under examination."

JIBRIL (through translator): This allegation is not true. Our children are just kids. When you come to someone with a weapon and want to shoot at him,

his normal reaction will be throwing a stone. That will not harm the army.

GOLD (voiceover): Community leader Jamal Ewada shows us around. He says he's never seen the camp like this.

JAMAL EWADA, AQABAT JABER REFUGEE CAMP COMMUNITY LEADER (through translator): Killing that you are practicing will not bring you any

security in any way. The killing will create rebels. When you kill someone who has four brothers, one of them will want revenge. The killing will

bring killing.

GOLD (voiceover): For weeks this year, the Israeli military set up checkpoints at times imposing a blockade on the entire city of 25,000. For

its part, the IDF said they set up the roadblocks because of concrete intelligence about an imminent attack. But the ripple effect was huge.

GOLD: Jericho is a major tourist destination. Attracting millions of foreign visitors every year to sites like this his, Hisham's Palace. But

the strict Israeli military measures as well as a weeks-long blockade, that's cost the city tens of millions of dollars in lost revenue.

GOLD (voiceover): Mayor Abdul Karim Sedir said the blockade amounted to collective punishment and affected everything from waste management to

farmer's harvest.

ABDUL KARIM SEDIR, MAYOR OF JERICHO (through translator): Maybe that was (INAUDIBLE) person. It's not the way. They tried to exaggerate. Of course,

I'm afraid. If the blockades continue during the next holiday at the end of June, there'll be an exodus of investors from Jericho and a large number of

resistant fighters will be born, which will transfer the city to a different rank.

GOLD (voiceover): I hope that the City of the Moon will soon return as an oasis of calm in the desert.

Hadas Gold, CNN, Jericho.

(END VIDEOTAPE)

ASHER: Italian authorities are trying to unravel an underwater mystery and one of the world's most famous waterways. Police are trying to figure out

why the Grand Canal in Venice turned bright green on Sunday. Authorities have collected water samples and are looking at CCTV footage but so far,

there are no clear answers. CNN's Barbie Nadeau has more.

(BEGIN VIDEOTAPE)

BARBIE NADEAU, CNN CONTRIBUTOR: Venetians are used to just about anything happening in their beloved Grand Canal. Tourists jumping into it, even

surfing in it. They're used to high water, low water, but on Sunday, they were seeing green. At first one city official was sure it was another

episode of climate activism, giving the term going green a whole new meaning. None of the groups usually involve to credit.

Instead, the region's President announced on Twitter that authorities believe a tracing agent used in small quantities to find leaks and

underwater structures somehow got spilled into the water. He says it isn't dangerous for the canal's flora or fauna. And hopes it doesn't give climate

activists any ideas for their next stunt. Officials say they don't know how long it will keep the canal system looking like slime or exactly how to get

rid of it.

Barbie Latza Nadeau, CNN, Rome.

(END VIDEOTAPE)

ASHER: And that is QUEST MEANS BUSINESS. I'm Zain Asher in New York. Up next, Quest World of Wonder.

(COMMERCIAL BREAK)

END