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Quest Means Business

ByteDance Faces Hollywood Backlash Over A.I. Tool; U.K. Government Plans To Crack Down On A.I. Chatbots; FBI Analyzing DNA On Glove Found Near Guthrie's Home; Oscar-Winning Actor Robert Duvall Dead At 95; Princesses Beatrice And Eugenie Grapple With Fallout From Parents' Epstein Scandals; Sports Betting Increasingly Popular On Prediction Markets. Aired 4-5p ET

Aired February 16, 2026 - 16:00   ET

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


[16:00:17]

PAULA NEWTON, CNN INTERNATIONAL HOST: So, no trading on Wall Street today. The U.S. is celebrating the Presidents' Day holiday. As you can see there,

though, European stocks mostly flat. Those are the markets, and these are the main events.

ByteDance is promising changes to its A.I. video tool after it caused an uproar in Hollywood.

Amazon's RING is facing backlash over privacy concerns. I will speak to its founder coming up.

And legendary actor, Robert Duvall, dead at the age of 95. We will have a look back at his considerable legacy.

Live from New York. It is Monday, February 16th. I am Paula Newton, in for Richard Quest and this is QUEST MEANS BUSINESS.

And good evening everyone, tonight, ByteDance, the company behind TikTok is vowing to curb its A.I. video tool after a backlash from Hollywood over

this fake scene. Take a look.

(A.I. GENERATED VIDEO CLIP FROM BYTEDANCE PLAYS)

NEWTON: Real or A.I.? Can you tell the difference? That A.I. video showing the likeness of course of Brad Pitt and Tom Cruise was created with

Seedance 2.0. ByteDance launched the new tool just last week. It has prompted an uproar from major movie studios, both Disney and Paramount

Skydance reportedly sent cease-and-desist letters to protect their intellectual property, and ByteDance has now responded. It says: "ByteDance

respects intellectual property rights, and we have heard the concerns regarding Seedance 2.0. We are taking steps to strengthen current

safeguards as we work to prevent the unauthorized use of intellectual property and likeness by users."

Clare Duffy is in New York.

Clare, do I have questions?

We could kind of see this coming. Right? So, where are we in terms of what happened here? I mean I would venture most people would be tricked by what

they saw there, so in terms of intellectual property, guardrails really should be in place.

CLARE DUFFY, CNN BUSINESS WRITER: Yes, Paula, this is exactly the kind of thing that Hollywood has been so concerned about since we've seen the

release of tools like this that can easily create such hyper-realistic A.I.-generated videos and what I thought was really notable about this

situation is the director who created that clip using Seedance 2.0, he said it was only a two-line prompt to create that video, and so if you just

think about that for a minute, if that video were created in real-life by humans, he would have needed dozens of people, actors, people to set up the

set and the lights, camera people, directors. Now, you can create a really realistic looking clip with just a two-line prompt to an A.I. video

generator in a couple of seconds.

I mean, that is really remarkable here and that is why Hollywood stood up so quickly to address this. You saw legal threats from Disney and Skydance

Paramount.

Now, ByteDance is responding, saying that it will work on cracking down on unauthorized I.P. on this Seedance platform. I think the challenge here is

this is sort a of a race to the bottom issue. You know, maybe you have ByteDance has enough of a reputation that it doesn't want to put at risk.

It doesn't want to get in Disney's legal crosshairs. So, it will take down unauthorized I.P., but what is to say there is not a smaller player who is

less worried about that sort of thing, who wouldn't allow someone to create a video like this?

And I think we are starting to see these big entertainment companies realize that they can't push off this A.I. Revolution forever. I mean, we

saw Disney last year taking a $1 billion equity stake in OpenAI, allowing OpenAI to use its characters with its Sora A.I. video generator. And so I

think that we are starting to see Hollywood sort of grapple with what this could mean, try to take control where they can with deals like this Disney-

OpenAI deal.

But at the end of the day, I think this is going to be really challenging to truly get their hands around and prevent these kinds of A.I. clips --

Paula.

NEWTON: Yes, and we are talking about the regulatory environment, and, you know, the United States and Europe, but this really -- a lot of what is

spooking people about A.I. originates from the Chinese ecosystem. I mean, as you pointed out, right, ByteDance backed off now. But what is coming?

DUFFY: I think that's exactly right. I mean, whether it is ByteDance or another company in a foreign country, you know, individual creators can now

make these tools. It is not all that hard to create these really convincing A.I. look-alikes and so I think that is their challenge for both

legislators and lawmakers in the United States to perhaps try to create some regulation around that, but there is only so much that you can do, I

think and so that's why I think we are starting to see Hollywood try to grapple with this.

[16:05:10]

I mean, I think, on the other hand, you also hear both creators and consumers of media saying that they still want human created art. They are

not interested in A.I. generated look-alikes that don't have the human experience, and the soul behind them. But I do think this is a real

challenge that the industry is going to have to confront in the coming years.

NEWTON: Yes, with a whole new system of actually identifying what is intellectual property. Clare Duffy for us, appreciate the explanation.

Now, another video using ByteDance's A.I. tool depicts an alternate ending. So, pick your ending here on HBO's "Game of Thrones" after fan backlash

over the series finale. Look at this.

(CLIP FROM A.I. GENERATED VIDEO OF HBO'S "GAME OF THRONES.")

NEWTON: We should note here, Warner Bros Discovery is the parent company of both CNN and HBO. CNN has reached out to HBO for comment.

Sara Fischer is in Washington, D.C. for us and is following this ever so closely. I mean, it is incredible, right? You had the audience backlash

over "Game of Thrones," and there you have it, in just a few minutes, you've got the ending you wanted.

I mean, this is just stunning to me what has happened just in those two stories we are covering now. Hollywood and the creators knew this was

coming, and as I pointed out, ByteDance backed down. Clare was just telling us about that. Where do you see the fallout going from here?

SARA FISCHER, CNN SENIOR MEDIA ANALYST: So, they are lucky that ByteDance backed down and remember, ByteDance just struck a deal with the U.S.

government to divest its U.S. arm of TikTok, so there is good reason for them to want to play ball with U.S. entertainment companies. But other

Chinese tech giants may not, and that's the big problem here.

Disney has not just sent cease-and-desist letters to ByteDance, it has actually taken legal action against another Chinese A.I. firm called

Minimax, and the real threat here is that Chinese companies at their core are not that concerned with U.S. copyright fights. They have a lot more

incentive to steal U.S. I.P., use it to fuel their A.I. tech, and then make it go global and viral, and that's the big concern.

If we want to challenge China in A.I. dominance, which doesn't just have implications for entertainment, but also, as you know, things like National

Security and energy, we need to ensure that the Chinese are not building their A.I. platforms off of stolen U.S. material.

And so this has far bigger implications than just Hollywood itself. But, of course, notably, Hollywood is up in arms about this because it is really

their content and their businesses that are at the front lines of this threat.

NEWTON: And to be clear, I mean, they've been complaining about this with I.P. in China, and I say they, I mean many countries for decades now, and

yet, where are the guardrails here? If we start with, let's say the creators, the celebrities, do you believe there will be a structure in

place just putting China aside for a minute, can the United States regulate this? Will the United States want to regulate this?

FISCHER: We are not in a place right now where Congress is going to pass any laws, because we are too gridlocked. We've seen very minimal laws being

brought up at the state level around things like copyright, and that's due to the fact that the U.S. Copyright Act makes it really hard for states to

introduce their own legislation. We have seen a certain measures take hold around things like transparency. Really what I think is going to happen,

Paula, is you're going to need the market to create a solution.

We saw when the internet was first created three decades ago, this same type of challenge around leveraging I.P. for Big Tech happened around

search engines, and what we were able to do was create a two-sided marketplace where I.P. owners, websites were able to make money through

advertising that came from traffic from search engines.

I think ultimately, we are going to get to a place where two-sided marketplaces can help dictate the future of the economics here in a way

that favors both I.P. owners and tech companies. The question becomes what does the involvement of China -- what role does China play here? Because as

you know, when it comes to search, the vast majority of U.S. tech firms are banned in China. So, they're not really accessing Google or things like

that there. With A.I., it is a whole new ballgame and to what extent we are going to be willing to restrict Chinese firms here, not just, you know,

social media like TikTok, but their A.I. is a big question and to what extent the Chinese are going to allow U.S. I.P. to inform their A.I.

algorithms is a big question, you'll note, a lot of movies are blocked in China, right?

So, it is all unclear, but there are major implications for the future of Hollywood and the U.S.' sort of dominance in economics with China that are

ahead.

NEWTON: And to that turmoil, Sara, I do want to ask about viewers, audiences here. Do you believe this whole A.I. will change their

experience? And I note that directors with full rights, with over I.P. and everything, use A.I. all the time to enhance what they are bringing to the

screen.

[16:10:10]

FISCHER: Well, I think you're going to see a lot more animation because A.I. is so helpful in lowering the cost of animated films. We are already

seeing animated films take hold at the box office, you know, Zootopia 2 being the highest grossing export that we've ever seen. So, that's going to

be one. Another is going to be just sort of these more sophistication in terms of action and adventure movies. You know, it used to be that you had

to hire a lot of people, as Clare Duffy was saying, to produce one simple scene. Now, you can cut down on the costs and the risk to stunts by

incorporating A.I.

I do think the continued challenge is going to be, how do you get to a place where actors are not constantly on strike and fighting with studios

because that does delay the commercial output that consumers enjoy? You'll recall in 2024, we had such a slow start to the box office or in 2025, in

part because of those big strikes over A.I.

NEWTON: Right.

FISCHER: So, that's the big question here is how do we come up with smart legal and labor standards to continue production in a way that we've been

used to?

NEWTON: I will say, part of the charm, right, of "Mission Impossible" was the fact that you knew that Tom Cruise did most of those stunts on his own,

and that it was not A.I. generated. We will see if that can carry Hollywood through this next iteration.

Sara Fischer, really appreciate it. Thanks so much.

FISCHER: Thank you.

NEWTON: Now, the British government is planning to crack down on A.I. chatbots. It is the latest attempt to make the internet safer for children.

It is considering measures including finding chatbot providers that fail to protect users from illegal content, curbing features for young people like

infinite scrolling and access to A.I. chatbots.

Hanna Ziady in London for us for us.

Hannah, you know parents, they don't need any more explanation as to how dangerous this is. We do have real-life examples. I am wondering how this

would work though because the issue has always been enforcement.

HANNA ZIADY, CNN BUSINESS WRITER: You're absolutely right, Paula. That is the issue. And as we are seeing now with Australia, which was the first

country in the world to implement a social media ban for under 16, it is difficult to police. It is difficult to enforce. Teenagers are good at

bending rules, but also good at finding workarounds to some of these bans. So, can we be confident that the U.K. government's latest push will achieve

what it wants to? We don't know, but what we do know is that they are really trying to speed up the pace at which they can respond to

developments in A.I.

The U.K.'s Online Safety Act came into effect just last year. It was passed in 2023, again barely three years ago. But in A.I. terms, in the world of

A.I., that's ancient history because of the pace at which these platforms are developing and the Prime Minister, the U.K. Prime Minister, Sir Keir

Starmer really underscored that today when he addressed parents and young people that legislation needs to move faster because, as you outlined in

your introduction, this is really part of a big push to protect children -- Paula.

NEWTON: Yes, and he was speaking not just as a Prime Minister, he was very candid that he was also speaking as a father. I am wondering if what

happens in the U.K. can serve as a model elsewhere? And I ask this because even the Trump administration now seems to push back at any iteration of,

you know, high tech, any kind of high tech regulation, any kind of infringement on U.S. companies being able to really run these things the

way they want to, even outside of the United States.

ZIADY: That is. Yes. That is a very good point.

Interestingly, though, the United States did pass towards the end of last year, the Take It Down Act which criminalizes the creation and sharing of

these non-consensual intimate images. President Donald Trump signed that Act himself.

And what we did see earlier this year, and of course this development in the U.K. comes off the back of this major backlash that we saw last month

against Grok, which is X's chatbot, and what Grok was doing is generating these non-consensual sexualized images of women and children at the request

of users.

So, there was a huge outcry against that. The U.K. was one of the leading voices and that X has since restricted Grok's ability to do that, to

generate these images, but it is still facing investigations by the U.K. communications regulator, Ofcom, and by other regulators worldwide.

So, it remains to be seen to what extent the regulators may follow the U.K.'s lead. But we certainly are watching and we are also watching in the

U.K. for potential social media ban. The government has put out a public consultation on that. We expect to hear the results of that in April.

It will be in good company. As I mentioned earlier, Australia has already done that and several other countries here in Europe are moving in that

direction -- Spain, France, The Netherlands, Denmark. So Paula, lots to watch in this space, but it is moving quickly and legislators are trying to

respond just as fast.

NEWTON: Hannah, thanks so much. Thanks for your insights there. And coming up for us, the search for Nancy Guthrie has put a new spotlight on doorbell

cameras. We will speak about that with the founder of RING, one of the leading brands.

[16:17:41]

NEWTON: NBC News anchor, Savannah Guthrie is making a new plea for her mother's release as the search for Nancy Guthrie enters its third week now.

She posted a video directed at her 84-year-old mother's captor, saying "It's never too late to do the right thing."

This, as the FBI is now analyzing DNA on a glove found near Nancy Guthrie's home. Investigators say the glove appears to match the one worn by the

suspect in footage, you see it there from Guthrie's doorbell camera.

Josh Campbell joins us now.

Josh, we've got the RING video, obviously, or the RING camera video I should say. It is actually not a RING, it is from Nest. I should really

make that clear. It is the doorbell camera, and now we have this DNA evidence from the glove.

I know that it is no guarantee that this case will be solved, but you know, how much more likely does it make it? These are substantial clues, right?

JOSH CAMPBELL, CNN SECURITY CORRESPONDENT: That's right. And in a case that has had few clues, this could be notable. And what authorities announced

yesterday is that as researchers or searchers rather were out and around the Guthrie residence, looking for any items that this alleged abductor may

have been discarded, they did find one glove that they believe actually matches the glove seen on that doorbell camera video that the suspect was

wearing.

Authorities also say that they have recovered DNA from that glove that is now being sent for testing. Again, too soon to tell what that means as far

as identifying a suspect. But one thing authorities will often do is run DNA through national databases here in the U.S. to see does it match DNA

from a suspect that's already known to law enforcement? Theres also this burgeoning field called familial DNA genetic mapping. You know the 23andMe

and other types of programs that are available to the public, that can be used to try to determine an identity, possibly, you know, maybe the suspect

himself didn't use one of those services, but a family member might have.

And you know, if there is a close enough match, that could then prove somewhat beneficial. One thing we just got in moments ago, Paula, which is

interesting as authorities are trying to identify the suspect, the entire Guthrie family has now been ruled out by Sheriff investigators as having

anything to do with this case.

That is notable because we've seen in this investigation numerous true crime enthusiasts, the online sleuths postulating that maybe there was a

family member that was behind all of this, the Sheriff saying, no, they have been ruled out. They are saying that the family, Paula, has been

nothing but cooperative.

[16:20:02]

NEWTON: Yes, and the family obviously going through a special kind of torture at this hour as this goes into its third week now.

You know Josh, I have to ask you again, leaning on your experience as a former FBI official, there are hundreds of investigators there now. Does it

surprise you that there isn't a break in the case? Because even if this is the mother of a celebrity, I think many viewers wonder how can an 84-year-

old woman go missing from the house in this way and still no sign of her?

CAMPBELL: It is certainly a mystery and I think the one characteristic here that is making this much more difficult is a remote area where this

actually happened. We are talking about a part of Arizona that is rural. This is in an area with a lot of security camera footage like in major

metropolitan areas, and that has certainly challenged investigators to find any type of clue that can show who was there and where they went.

And so, you know, again, a lot of people obviously are frustrated to include the Guthrie family, members of the public, law enforcement officers

themselves, I am told are actually frustrated by the lack of progress here, but sometimes these investigations are so complex. And, you know we have

these hundreds of investigators that are scouring the area that are trying to field tips from the public.

All it takes is that one clue that can send this case, hopefully in the direction we all hope and that is Nancy Guthrie's safe recovery, but

authorities say at this point, there just haven't really been any viable leads.

NEWTON: Yes, and thank you for pointing out, right that if there is DNA evidence there, even if this person didn't do any kind of an Ancestry

search, if any close relative of his did, they will at least be able to understand who it may be.

Josh Campbell for us, thank you again.

Now, the Guthrie case has thrust doorbell cameras, as I was saying, into the spotlight. Authorities say the video from her Google Nest device has

given them their biggest leads. I mean, those are pretty good photos and videos.

The use of doorbell cameras, though, is also sparking concerns over privacy and unwanted surveillance. Amazon's RING faced backlash following their

Super Bowl commercial, showing how the technology can be used to find lost pets. Now, days later, RING cancelled its partnership with the company

Flock Safety, which makes cameras for reading license plates.

Jamie Siminoff is the founder and chief inventor at RING and he joins us now.

Jamie, we really want to thank you for coming in because people have so many questions about how this works, not obviously, just in this case, but

in general. Now, you know, you guys landed dead center in controversy in two very different but important stories, each showing both the

benevolence, right, that this application can have. And for some people, the malevolence if people have ill intent.

So, let's begin with the investigation into the Guthrie case. I mean, that is pretty much one of the most solid leads they would have. In fact they

wouldn't have even found the glove or maybe not known that it was anything had they not had the picture, right, of the glove and the video on that

camera. How was that retrieved? And can you understand how it might make people nervous? Because, you know, the family of Nancy Guthrie says she did

not have a subscription and no one was supposed to be recording that.

JAMIE SIMINOFF, CEO AND CHIEF INVENTOR, RING: Yes. I don't want to speculate on how it was retrieved because it is another company, and

obviously there is a lot of information happening. What I will say is, it is definitely the most important piece of information that has happened so

far.

As Josh was just saying. I mean I think investigators, they are looking for leads. It is a rural area, so it is a little bit harder. It has been harder

to get video evidence. It also just shows how much we've now relied on video evidence in these cases.

We are used to when things happen, and we saw this in like the Brown School shooting that we had neighbors in that area very quickly being able to get

video to the police to help them start to lead to where this, you know, what suspect was doing what.

NEWTON: But Jamie just -- and I understand you're not involved in that case. It wasn't even your camera on the door, but I think people want to

know, right. If you do not have a subscription, if you are not recording really, at this point, it would be naive for any of us to think that that

video couldn't be retrieved. From a technical point of view, you're saying, of course it can be.

SIMINOFF: Well, actually, what I am saying, the video is -- that is a very important piece for this investigation. From a RING perspective, and that

is all I can talk about, I have built the systems, I invented RING and kind of have been very material in building the systems, RING does not store any

of the data transient like that, so you would not -- we would not be able to recover this. We never would have taken that data into our system, so we

would not have seen it.

If you delete a video on RING, it is basically in real time is taken off of our system. So we don't have the remnant data that you saw here. What I was

saying though is that it is -- it has been -- I mean you can kind of see how important video is to this investigation.

NEWTON: And getting to the second point of this though, as we just outlined last week, you ended a partnership and you abandoned a feature that may

have helped people locate their lost pets. I mean, how did you come to understand the backlash here?

[16:25:04]

Because RING was accused by some, I believe, erroneously about everything from, you know, being, you know spying on Americans to collaborating with

ICE.

SIMINOFF: So, let me break some stuff apart. So, we did not actually discontinue the search party for dogs, so that feature, which if your dog

is missing, it is going to say like, you know, this dog looks like this dog that is missing in the neighborhood. Do you want to contact your neighbor?

Theres your --

NEWTON: Right and you can opt-in, right?

SIMINOFF: You opt-in. And your privacy always --

NEWTON: Right, got it!

SIMINOFF: We are always holding your privacy. So, at RING, we are always making sure your information, your video is yours. So, with this feature,

if a dog is found on your camera, you get to say yes, I want to talk to them or no, I don't, so that you're opting in in privacy.

With Flock, we saw Flock as a separate company. It was a -- it is not a commercial deal. It was just something we were partnering with them on

Community Alerts. Community Alerts is where local police is able to request video from RING customers. Again privacy-centric, where if you say no, its

anonymous. They don't know you asked. If you say yes, then obviously you can then give them the video. We are already doing that with Axon. We have

that out there. It was used, for example, in the Brown shooting. It has been used in the Nancy Guthrie case.

So, it is still out there. We just cancelled our partnership with Flock at this time.

NEWTON: Now, I do want to get to this issue of the technology itself, though because there is backlash from it. You, as the founder of this, how

do you believe these cameras including privacy restrictions, how should they evolve? And I have to tell you, while I understand you had some

backlash, I know every day I get police reports on seniors that go missing, and I know many people would like more access to those cameras because it

might tell them where their seniors are because it is a huge problem in many communities.

SIMINOFF: So, I mean, everything we've built is an incident happens you know, like a dog is missing. We have a thing called Fire Watch, which if

there is a fire in your area or a Community Alert so, you know something happens. We then request, we send a request out to our customers, and then

they get to choose if they want to help take part in the neighborhood and help take part in what is happening or not.

And so I think the important thing is you can have the neighborhood come together like you're talking about. You can have people come together to

help, and you can also do it with a hundred percent privacy and security being maintained. I think that's where, you know --

And I just -- I think there is angst around A.I., there's angst around all this stuff that people like they kind of conflate the two together when the

reality is you can have both. We can hold your information private. It can be a hundred percent under your control. We can also have you be asked if

you want to help in a neighborhood incident that's happening, like Nancy Guthrie or, you know, a dog missing.

NEWTON: We've explained a lot there, Jamie. We will see where this goes. And obviously, we are all hoping that there is a break in that case of

Nancy Guthrie.

Jamie Siminoff for us. Really appreciate you coming in.

SIMINOFF: Thank you very much.

NEWTON: Next, the U.S. Secretary of State ends his visit to Europe and Hungary. We look at what was on the agenda.

(COMMERCIAL BREAK)

[16:31:15]

NEWTON: Hello. I'm Paula Newton, and there is more quest means business in a moment.

When Marco Rubio visits Hungary and Slovakia, as the two countries deepen their dependence on Russian energy.

And CNN's Coy Wire caught up with Flavor Flav at the Olympics. You will hear from Team USA's official hype machine. Before that, though, the

headlines this hour.

Savannah Guthrie is pleading for the return of her missing mother, Nancy Guthrie. The NBC news anchor, posted a new video directed at her mother's

captor, telling them it's never too late to do the right thing.

Meantime, the FBI is analyzing the DNA on a glove found near Nancy Guthrie's home. That glove appears to match the one worn by the suspect in

footage from Guthrie's doorbell camera.

The U.N. Secretary General is slamming Israel's new move on the West Bank as a flagrant violation of international law. For the first time since

1967, Israel has approved a process to officially register some land as state property. Palestinian officials call it de facto annexation.

After Robert Duvall has died at the age of 95, his prolific career included films like "The Godfather", "Apocalypse Now" and "The Great Santini", who

won the Oscar for Best Actor for his performance in tender mercies. His family said he died peacefully on Sunday at his home in Virginia.

America's top diplomat says U.S. relations with Hungary have entered a golden era under Prime Minister Viktor Orban. Marco Rubio wrapped up his

trip to Europe by meeting with Orban, who is facing a serious challenge in April's elections. Rubio said, the U.S. is deeply committed to Hungary's

success.

(BEGIN VIDEO CLIP)

MARCO RUBIO, UNITED STATES SECRETARY OF STATE: Under President Trump, it is our expectation that every nation on earth is going to act in their

national interest. That's what nations are supposed to do. If the prime minister of Hungary does not act in the national interest of Hungary, he

won't be prime minister for long, but who is going to act in the national interest of Hungary if their prime minister doesn't do it? If your

government is it, if your government is not acting in your national interest, then, who will? By the way, we feel the same way about America.

So, in those instances in which our national interest and some other countries' national interests are aligned, that is an opportunity for

extraordinary partnership. And we have many, many areas where our national interests are aligned.

(END VIDEO CLIP)

NEWTON: Rubio also visited Slovakia, where he said the U.S. is not asking Europe to be a "vassal". In other words, Washington wants Europe to reduce

its dependence on us power.

Now, a new report says Hungary and Slovakia rely more on Russian energy than when the war in Ukraine began. The Center for the Study of Democracy

says Budapest could find other resources of oil. It says Hungary's largest oil company is buying cheaper supplies from Russia, without passing along

those savings.

CNN has reached out to the company and the Hungarian government for a response. Jennifer Hansler is in Washington monitoring all of this for us.

You start with Rubio's visit here to both Hungary and Slovakia. It was intentional, right? Not exactly subtle. He went to the Munich Security

Conference there, and kind of gave a speech that was well received, and yet, he really wanted to make the point that these are the two countries

that President Trump believes are on America's side.

JENNIFER HANSLER, CNN STATE DEPARTMENT REPORTER: Yes, Paula. He really went there with this message that he believes that they are acting in their

interest, which the U.S. believes is acting in everyone's interest, and that these are countries in which the U.S. is going to continue to ink

these partnerships.

We had saw him today in Budapest to sign the Civil Nuclear Deal. The state department has been touting all of these agreements they have been able to

reach with the Hungarian government, despite the concerns around, for example, human rights there, repression of civil society there.

[16:35:04]

They have focused on the economic side of things, even as you noted, Hungary and Slovakia continue to buy massive Russian oil.

Now, this comes, of course, after his messaging in Munich, where he drove the point that, you know, Europe and the U.S. will always be together.

However, he needs Europe to pull its own weight. And he said they do not want to separate from them, but they need to revitalize these ongoing

institutions.

He also drove home a very specific point, Paula, on this idea of Western civilization. The state department has been pushing these messages of what

they call fundamental rights, which have really aligned with a lot of these more conservative governments in Europe. So, this is something else that he

was driving home throughout this trip. Paula.

NEWTON: Jennifer, appreciate the update.

Now, Robert Duvall, the Oscar winning actor who appeared in some of Hollywood's most acclaimed films, has died at the age of 95. He played Tom

Hagen with "The Godfather" trilogy, and had a memorable role in "Apocalypse. Now".

Danny Freeman, more now, on Robert Duvall's legacy.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: That's a terrific story. We have newspaper people on a payroll, don't we, Tom?

They might like a story like that.

ROBERT DUVALL, OSCAR WINNING ACTOR: They might. Just mine.

DANNY FREEMAN, CNN CORRESPONDENT (voice over): Regarded as one of the most iconic actors of his generation, Robert Duvall had a knack for bringing to

life a variety of compelling characters.

His debut on the big screen was playing Boo Radley in the 1962 film To Kill a Mockingbird.

UNIDENTIFIED MALE: Hey, Boo.

UNIDENTIFIED MALE: Ms. Jean Louise, Mr. Arthur Radley.

I can't believe he already knows you.

FREEMAN (voice over): Yet, it would be another decade before his big break in "The Godfather".

UNIDENTIFIED MALE: Tom, Tom, you are the conciliary. Now, you can talk to the Don. You can explain --

DUVALL: Just a minute. Don is semi-retired, and Mike is in charge of the family business now. And anything to say, say it to Mike now.

There was no movies I'd be on stage, but "Godfather" was kind of a catalyst for all the actors.

(INAUDIBLE)

FREEMAN: Duvall went on to play a psychotic warmonger in "Apocalypse Now", delivering one of the most famous lines in film history.

DUVALL: I love the smell of napalm in the morning. Smells like victory.

Everybody relates to that line, I think, you know, in many places. And scenes like that, we had to get quickly, because all that fire in back of

me was supposed to be the napalm, and sometimes that's the best stuff you can get.

I decided --

FREEMAN (voice over): Duvall's role as a down and out alcoholic country singer in "Tender Mercies" won him his first Academy Award as Best Actor in

1984.

His natural ability to transform into these characters led to more than half a dozen Oscar nominations throughout his career.

DUVALL: It always has to come from yourself. The base is yourself. You turn that a certain way.

UNIDENTIFIED MALE: So, you are not impersonating someone.

DUVALL: No, no. No, it's you only have one temperament, one set of emotions, one psyche, one image. So, it's like you, a certain way, you

become the character, but it's you doing it.

If you -- if you say, I'm going to become the character. I'm going to become the character like this, this, this, it becomes tense, becomes

abstract. You lose contact with yourself.

FREEMAN (voice over): Duvall's talent went beyond just acting. He wrote, directed, and financed "The Apostle," playing the leading role of a

Pentecostal preacher.

Duvall also had a penchant for dancing and singing, hobbies, which made their way into many of his films. But as successful as Duvall was,

professionally, his personal life was complicated. It took three failed marriages before he fell in love with actress Luciana Pedraza. The two

shared the same birthday, January 5th, though she was more than 40 years his junior.

Born in 1931, Duvall was the son of an actress and a Navy admiral. His passion for the arts, acting, and life was evident, into the end.

UNIDENTIFIED MALE: Why do you like it?

DUVALL: I was like, playing house for big stakes. You know how kids play house? So, it's --

UNIDENTIFIED MALE: So, it's child-like us.

DUVALL: Yes, yes. But it's fun, and maybe not as much as other professions, but we give a positive influence to society, hopefully.

(END VIDEOTAPE)

NEWTON: So many memorable roles there. Still to come for us, the latest release of Epstein documents is causing renewed scrutiny of the British

monarchy. We'll see how Princes Beatrice and Eugenie are being swept up into the maelstrom. That's just ahead.

(COMMERCIAL BREAK)

[16:42:04]

NEWTON: Renewed scrutiny is swirling around the British monarchy as princesses Beatrice and Eugenie grapple with the fallout from their

parents' ties to the late sex offender Jeffrey Epstein. CNN's royal correspondent Max Foster has more.

(BEGIN VIDEO CLIP)

MAX FOSTER, CNN LONDON CORRESPONDENT (voice over): Princesses Beatrice and Eugenie of Britain's Royal Family thrust into the spotlight after being

named hundreds of times in the latest tranche of Epstein files.

The saga involving the late sex offender had already engulfed both their parents, the former Prince Andrew, and his ex-wife, Sarah Ferguson. Now,

new details have emerged about Epstein's friendship with the princess's mother, who seems to have brought her daughters into his orbit, even after

he was convicted for sex offenses.

A series of e-mails released by the department of justice indicate that Ferguson, Eugenie, and Beatrice, all visited Epstein in Miami in 2009, just

five days after he was released from jail. He served 13 months for soliciting prostitution from a minor.

"Do you need a ride?" Epstein asks, before they lunch? "No, thank you." The former Duchess replies, adding, it will be myself, Beatrice, and Eugenie,"

at a time when they were 20 and 19 years old.

In a subsequent e-mail, Ferguson tells Epstein, "Cannot wait to see you." A separate thread between Epstein and his personal assistant days earlier

also appears to indicate that he paid about $14,000 for the trio's flights to the U.S. And here is another email chain nearly two years later, in 2011

between Epstein, Ferguson, and her then-spokesperson.

In it, the former Duchess says that Beatrice advised her on how to handle a British journalist to whom she had given a statement about Epstein. Just

last year, Ferguson's spokesperson said she had cut off relations with Epstein, "as soon as she was aware of the extent of the allegations."

But all these DOJ files suggest otherwise. As for Andrew Mountbatten- Windsor, Beatrice and Eugenie's father, he remains under pressure from his ties to Epstein. The disgraced former prince has previously denied any

wrongdoing, including after he reached an outer court settlement with a woman who said she was trafficked to him as a teen.

Beatrice and Eugenie have kept a low profile through all of this, and there is no suggestion of wrongdoing simply because they have been named in the

Epstein files.

(END VIDEO CLIP)

FOSTER (on camera): We have reached out to Ferguson's representatives for comment on these exchanges seen in the Epstein documents, and CNN has

sought to contact the princesses for comment, but we haven't heard back from them.

Max Foster, CNN, London.

[16:44:51]

NEWTON: Sports betting is searching on prediction markets. We are joined by a gambling therapist and public health expert to discuss its rapid rise.

(COMMERCIAL BREAK)

NEWTON: The Federal Reserve's next decision, the winner of the English Premier League, even the location of Dua Lipa's wedding. Those are just

some of the things you can bet on through prediction markets. Like Kalshi, an official partner of CNN.

The popularity of prediction markets has soared since 2024 since that presidential election really introduced it to so many people, and this has

been compared to traditional sports betting, given the similarity and overlap between the two.

Harry Levant is the director of gambling policy at the Public Health Advocacy Institute. Good to see you, Harry. You know, you have been

studying this for a long time. Your web site blares at the top. Gambling is a public health threat. And now, prediction markets have entered the fray.

Where do you see this going, and how much do you believe it really lends to more harm?

HARRY LEVANT, DIRECTOR OF GAMBLING POLICY, PUBLIC HEALTH ADVOCACY INSTITUTE: Paula, thanks for having me on and if it only says public health

threat, I'm going to need to amend that. It's a public health crisis at this point. And prediction markets are just the latest to enter the space,

and they are expanding the scope of what people can gamble on. And we are still -- they are now making gambling, and constant online gambling

accessible to people as young as 18 years old. It's simply too much.

NEWTON: You know, I went on some of the prediction markets. You can very freely, you know, bet on even the Olympics right now. So, this begs the

question, where is the regulation here? The prediction markets are fighting it. The sports betting companies have fought it for years. How do you see

this unfolding?

LEVANT: This whether we are talking about, prediction markets or the more traditional sports betting companies, regulators have not kept up with the

technology. We are dealing with a fundamentally different and inherently dangerous type of online gambling product where people are now able to

wager on every micro event within sporting events and contests and with prediction markets, even in the pop culture things.

We have known since at least 2013 that gambling is an addictive product. If you deliver an addictive product to people at light speed with the use of

A.I. and technology so that it never stops, people are going to get hurt. And that's why I call it a public health crisis, because that's what's

happening.

[16:50:04]

NEWTON: And I take your word. This is a public health crisis. There doesn't seem to be regulators moving on this, at least not that I see at the state

level in the United States. How -- you are speaking to us. I think a lot of people have seen this unfold in their own families. You know, especially

it's worrisome with young men now. What is it going to take?

LEVANT: Young men and young women. What I fear it's going to take is more harm in the public square. I fear it's going to take severe harm. Now, the

risk of suicide and suicide ideation is more closely aligned with gambling disorder than any other addiction.

I'm fearful that what is going to take is more public harm. I'm hopeful that the more we talk about this, states will begin to recognize that what

has happened here is not what they were expecting. No one was expecting you would be betting on the speed of every pitch in every baseball game and

every little micro event all fueled by A.I.

So, there is an opportunity here for greater regulation. There is bills pending in Massachusetts and in New Jersey to rein in micro betting. And

regarding prediction markets, Congress is going to have to get involved. There is a loophole here that's going to have to get closed, and in a

strange way, prediction markets are making my advocacy work a little bit easier, because they are making the public aware that this thing is just

completely out of control.

I'm not opposed to the properly regulated legalization of sports gambling, but what we have is not properly regulated at the state level. And at the

federal level, thus far, we're devoid of regulation, but the safe bet act is pending in both the Senate and the House, and that would significantly

bring public health regulation to bear.

NEWTON: You said the word though, pending. There is certainly a lot of congestion, shall we say, with legislation on Capitol Hill. Harry, what is

it going to take here? Because some people would say to you, Harry, look, they are adults. They can do what they ant. There are a lot of vices

regulated and unregulated that adults take part in.

LEVANT: That's not the issue. I'm not opposed to gambling. I've said it every time I speak about this. The issue is the product is inherently

dangerous. Micro betting, where people are being targeted by A.I., same game parlays, where people are being targeted by A.I. It's simply a

fundamentally dangerous and defectively designed product.

Think about a bar or a pub. If the bartender at the bar -- the pub was pushing another drink over in front of you every 10 seconds or faster,

government would shut the bar on the spot. With online gambling, state governments have become partners in this enterprise, and what it's going to

take is greater awareness on the part of the public, greater outcry and courageous legislators at the state and federal level to step forward. It's

going to happen. The question is going to be, how long it's going to take?

NEWTON: Yes, and as you know, you say, that is a public health crisis. In the meantime, Harry Levant, thanks so much for being with us. We really

learned a lot. Appreciate it.

LEVANT: It's my pleasure. Let's continue the conversation. Thank you.

NEWTON: Now, turning to the Winter Olympics, Team USA stormed a victory in women's ice hockey in Italy. They dispatched Sweden, five zero in a

dominant display on the ice. They advanced to the gold medal game, where they will face the winner of tonight's Canada, Switzerland match-up.

Now, team USA's Hillary Knight will have a chance at Olympic history in that game. One goal and she will become USA women's hockey all time Olympic

goal scorer.

And it's not just the world's top athletes lighting up the snow. Plenty of stars are in Italy enjoying the game. CNN's and Coy Wire caught up with the

team USA's biggest fan, rapper play the flight.

COY WIRE, CNN SPORTS ANCHOR: As these athletes are out here chasing gold, we found the man who is T.V. gold.

Flav, good to see you, man.

FLAVOR FLAV, AMERICAN RAPPER, REALITY T.V. STAR: Yes, what's up? Coy --

(CROSSTALK)

WIRE: Pleasure to see you.

FLAV: How are you doing, Coy?

WIRE: Sitting reminiscing about the very last time, I was at the Olympics trying to bust the rhyme. I was at the house of WBD. I look up. Who do I

see? Yes, boy, it's Flavor FLav. You said, yes, Coy.

FLAV: Yes.

WIRE: I almost off at there.

FLAV: And that's my boy.

WIRE: There we go.

FLAV: Yes.

WIRE: Listen, you have done the Summer Olympics. Now, your first Winter Olympics. What do you make of it?

FLAV: Yes. Hey, you all, man, let me tell you something.

I'm looking to watch my girl, Keisha (PH), love do her thing. You know what I'm saying.

WIRE: And Elana Meyers Taylor has an incredible story bob sleigh, right?

FLAV: Yes.

WIRE: You know, for team USA, it's just so inspiring, as a mom of, you know, children that have disabilities, as you can only imagine, is so

difficult, and here she is, one of the best ever at bobsleigh. I'm really looking forward to her,

FLAV: Yes, yes, no doubt.

Well, the reason why, too, I say, Keisha love is because, you know, I went up. Park City, you know, and I took a bobsled ride, and the four-man

bobsled.

[16:55:05]

Coy, that ride was crazy.

WIRE: (INAUDIBLE) like.

FLAV: But I really enjoyed it. And see, I'm an adrenaline junkie.

WIRE: Yes.

FLAV: You know, I'm big kid. I never grew up. You know, I'm saying, I like, like exciting things.

And then, I saw that -- I saw the skeleton. I said, oh my God, I going to try that, you all Coy, he let your boy, Flav, get in on the sled.

WIRE: Come on.

FLAV: I topped out at 66 miles per hour, bro. I enjoyed it so much, Coy. I joined the team.

WIRE: You have hyped up arenas all around the world. When you are here hyping up these athletes, you bring them life and joy. When you see them,

what? What reminds you of your own grind when you were coming up in the hip hop game?

FLAV: Well, it reminds me of, you know, how I wanted to be accepted when people saw me perform. And, you know, when I go out there and I perform, I

give it my all, and I just wanted people to really recognize that and embrace it.

So, that's what it reminds me of, when I see these athletes get on their sleds and stuff and they slide, all they want to do is, is be recognized,

you know, for the hard work that they put in.

You know, no matter how hard you try, you don't give up. Number one, you know what I'm saying? And as long -- as long as you keep trying, you

guaranteed to succeed, you know? And don't let failure be discouragement.

You know I'm saying, because part of success is failure. It takes a lot to get out there and try. You know, there is a lot of people that's scared to

get out there to do that.

But the ones that's out there doing it are the ones that have the heart. You know what I am saying, and those are the ones that's given us our

entertainment too, because it is an entertaining sport.

WIRE: Absolutely.

FLAV: Yes, and entertain. And absolutely don't normally make vodka, baby. Hey.

WIRE: All right. Flavor Flav, thank you so much for being here, man.

I can't wait to watch you continue to inspire these athletes out here, and inspire everyone you come into contact with. I really appreciate you, man.

FLAV: Hey, I just thank you guys for letting me be here. This is an honor and a pleasure and a perfect measure, and I'm going to keep this memory as

a perfect treasure. Says be as gesture.

Yes, boy!

WIRE: Yee, boy!

FLAV: Yes, Coy.

NEWTON: Coy is a pretty big booster, Olympic booster as well.

Now, no trading today on Wall Street. It's President's Day in the U.S. And Europe, those stocks finished mixed.

FTSE gained a quarter of a percent. Germany's Dax shed nearly half a percent. The CAC 40 finished flat, and the Swiss Market Index gained 0.4

percent.

That is QUEST MEANS BUSINESS for today. I'm Paula Newton. "THE LEAD" with Jake Tapper starts now.

(COMMERCIAL BREAK)

END