We're inside the senate building, and Gracchus is talking about the various issues that need to be handled: sanitation in the Greek quarter, for one. A plague is in progress.
Commodus is barely paying attention, contenting himself with spinning his sword instead.
Finally, he tells Gracchus to stop talking for a minute, before giving a talk about how his father spent all his time reading and studying and forgot about the people.
Gracchus and Commodus spar a little bit—in words, that is.
Lucilla, who's watching the whole thing, clearly can tell Commodus has no idea what he's doing, especially when he gives a speech about love and describes himself as the father of the people, one who will "embrace" them tightly.
Hmm, what happened to the last guy you embraced, Commodus, eh?
Gracchus knows Commodus is living in a fantasy world, and he asks him if he's ever embraced somebody dying of plague.
Commodus is irritated, and mildly threatens Gracchus before Lucilla intervenes, ushers Commodus away, and takes a list from Gracchus of things that need to be handled.