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GOP Takes Senate; Republicans Win Key Governor Races; Dow Hits New Record; Mitch McConnell's Potential Political Problems

Aired November 05, 2014 - 09:30   ET

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


(COMMERCIAL BREAK)

CAROL COSTELLO, CNN ANCHOR: Good morning. I'm Carol Costello. Thank you so much for joining me.

The White House is waking up to dismal news this morning, with the GOP clinching key races across the country. Republicans now control both the House and the Senate. It was a big night for Republican governors, too, who won races in traditionally blue states, like Massachusetts and even Maryland. In states like Wisconsin, the governorship will remain in GOP hands. In Georgia, Governor Nathan Deal defeated Democrat Jason Carter, but it was the state's Senate race that had everyone talking. It was expected to be one of the tightest in the country but in the end Republican David Perdue sailed to victory, defeating Democratic rival Michelle Nunn.

Last night, in an exclusive interview, CNN's Kyra Phillips had a chance to talk with Perdue about his big win.

(BEGIN VIDEO CLIP)

DAVID PERDUE (R), GEORGIA SEN-ELECT: We had people tell us a year ago that if we got our message out, that we could win this. And so we just purposed to get out in the state. And that's what we did. You know, we had some really talented, quality people in our primary, Republican primary. In the runoff I had Jack Kingston. The only reason I think we're standing here tonight is that this message resonated across the state that we've got to change the direction of our country.

KYRA PHILLIPS, CNN CORRESPONDENT: And, as you know, Michelle Nunn was very critical saying, oh, he's the out of touch businessman. All he cares about is the money in his pocketbook. What does this say about how voters feel about you and what happened tonight, the message to her and what she was saying?

PERDUE: Well, I -- you know, she's a great candidate. She comes from a great family. She's done a wonderful job with her life and her work. I have nothing but, you know, kudos and I admire her professional work. They do great work over there.

I think what -- you can't run from your heritage. My mother is 88. She's in the crowd here. She's a retired school teacher. My dad was a school teacher. And I think just growing up the way most people in Georgia grow up, people related to that in the state. And so, yes, I ran some big companies, but nothing changed in my life. And so I think people could relate to that when I talk to them about, you know, what I wanted to do in the Senate and what I saw as the crisis. The crisis that got me in here is the debt and the economy and how to get that going. So people really related to that.

(END VIDEO CLIP)

COSTELLO: Republican Senator Rand Paul is weighing in on last night's elections too. He says GOP wins in places like Kentucky, Iowa and Arkansas indicate the American people are fed up, not with just President Obama, but with Democrats like Hillary Clinton who stumped on the campaign trail this season. Some might say -- well, I suppose those some are Democrats -- they say he's rubbing in last night's win.

Take a look at this album Paul posted on Facebook. You can see pictures there of Hillary Clinton alongside candidates with the hashtag, #hillaryslosers. As for whether Paul plans to run for the White House, he says he's weighing his options.

(BEGIN VIDEO CLIP)

SEN. RAND PAUL (R), KENTUCKY: I don't have a great desire to do it just on a lark. I would only do it if I thought that we had a real chance at the nomination and at winning. So we'll make that decision sometime this spring. I think I've been more forthright than many. I haven't demurred. I haven't said, oh, not me, I'm not thinking of it. We actively said we are thinking about it.

(END VIDEO CLIP)

COSTELLO: Republicans have a lot to celebrate this morning, but they're realistic too. Haley Barbour, the former RNC chair, told "The Wall Street Journal," quote, "this election was a repudiation of President Obama and his policies. The voters did not embrace us, but they said we're going to give you a chance to do better."

So let's talk about that with Sean Spicer. He's the communications director for the RNC.

First off, Sean, congratulations.

SEAN SPICER, COMMUNICATIONS DIRECTOR, RNC: Thanks, Carol. It was a great night.

COSTELLO: How are you feeling this morning?

SPICER: I'm a little tired, but the wins of last night that continued into this morning, it's just pure adrenalin right now.

COSTELLO: I bet. Let's go back to what Haley Barbour says because the real work begins today. Haley Barbour said voters did not embrace Republicans, but voted against President Obama and his policies. How do you get voters to put their arm around Republicans?

SPICER: Well, I think Haley's right, that we have an opportunity now. We talked about the different direction that we take the government, both at the state and the federal level. And I think we have an opportunity now to show the voters that what we -- when we talk about focusing on the economy, when we talk about focusing on education, that we mean it and that you're going to see a lot of activity coming out of Congress and coming out of different state houses that are looking to improve the economy, create jobs, create a better America for folks, whether it's at the federal or the state level. So we've got to prove that we were worthy of the vote last night.

COSTELLO: President Obama has already reached out to Senator Mitch McConnell, the man who will likely lead the Senate. Can we expect the two men to talk soon and come to some sort of common ground?

SPICER: Well, I'm definitely going to expect the leaders to talk, but I think, look, the president himself said that his policies were on the ballot. And so last night, to some degree, was a repudiation of those policies. I think he's got to eat some crow, if you will, and say, OK, guys, I put my policies on the line and you won. Let's find some areas where you think we can work together.

But there are 300 and some odd bills sitting on Harry Reid's desk that didn't get moved. A lot of them were bipartisan. That's a great place to start and to say to the president, hey, there's a lot of things that folks in your party want to get done. What if we start moving those first and you, as a sign of good faith, sign some of these things into law that will get the economy moving again, which is something that you actually had talked about wanting to do yourself.

COSTELLO: There is some concern there will be friction within the Republican ranks. Senator Ted Cruz, for example, he's not exactly enthusiastically supporting Mitch McConnell for majority leader. Listen to what he told CNN.

(BEGIN VIDEO CLIP)

WOLF BLITZER, CNN HOST, "SITUATION ROOM": Will you support Mitch McConnell as your leader in the United States Senate?

SEN. TED CRUZ (R), TEXAS: Well, that will be a decision for the conference to make, and that will be decided next week. But I'll tell you, tonight was a terrific night for Republicans. It was a powerful repudiation of the Obama agenda, the Obama economy, which isn't working.

(END VIDEO CLIP)

COSTELLO: There are Republicans who worry about this. They say, hey, here's our chance to show we can govern and here's a fellow Republican who's already threatening dissent within the ranks. What do you say to Senator Cruz?

SPICER: Well, look, I think that right now, as Senator Cruz pointed out, we had a great win. I think the senators and the senators and the senators-elect are going to get together, talk about an agenda, and iron things out.

Look, this happens in every party, Carol. You know that after the last election, Hillary Clinton and Barack Obama had gone at it. She ended up serving as his secretary of state and they became fine friends, as has been well documented. So I think that we're going to have a big family discussion, there's no question about it. But at the end of the day, I think that our party went into the election knowing that if we were given the opportunity to lead, that we would come together and move forward with an agenda that would be in the best interests of America.

So I do think there's going to be a very healthy and lively debate in both the House and the Senate conferences and throughout the rest of the party as we head now into 2016. That's a good thing. I think that we should be having those discussions. But what you saw last night was when the Republican Party is unified, we win all over this country, whether it's Maryland, Illinois, Massachusetts. So as a united party, we can win. Now we have to show not only the American people, but our own party that we can follow through on what we said we were going to do.

COSTELLO: Sean Spicer, thanks for being with me this morning, because I know you're a little tired. But, again, congratulations, and thanks so much.

SPICER: It's worth it. Thanks, Carol.

COSTELLO: Still to come in the NEWSROOM, riding the red tidal wave. Sitting Republican governors and challenges in blue states score resounding victories. CNN's John King breaks it all down for us, next.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

GOV. RICK SCOTT (R), FLORIDA: You know what they say about democracy, it's messy, but it's absolutely the best form of government there is. Tomorrow, however, marks a new day. It's time to put all the division behind us and come together.

(END VIDEO CLIP)

COSTELLO: Florida's Rick Scott staying in the state houses as the Republican rout extends to the governor's races. CNN's John King breaks it down. Good morning, John.

JOHN KING, CNN HOST, "INSIDE POLITICS": Good morning to you, Carol. Look at the map. These are the governors' races. Notice the trend? There's a lot of red, right? Let's look at the House races last night; even more red there, right? And the Senate races, a whole lot of red in the big contest.

But let's focus on those governors' races you just mentioned. First and foremost, let's look at what the Republicans are so happy about this morning, wins in blue states. The Republicans elected a new governor in Massachusetts, defeating Martha Coakley. They're very happy about that, replacing a Democrat there. In the state of Maryland, nobody thought, Carol, this one was on the map even just a week or so ago. And, look, Larry Hogan, the Republican, with a convincing win over Maryland's Lieutenant Governor Anthony Brown there. Two blue states there.

And you move across and you look -- also out in Michigan they held it, in Ohio they held it. This is the president's home state. How many times did Michelle Obama go out to campaign for the Democratic incumbent Pat Quinn? He loses, and it's not even close, 51-46.

So you look at the map and you have three big blue state pickups for the Republicans. What Democrats had hoped was the counter argument would be that, well, this is an anti-incumbent sentiment. But what happens? Michigan's Republican governor wins re-election, and comfortably. Wisconsin's governor -- this was a huge Democratic target -- Scott Walker wins. And again, this race was close in the polls. Scott Walker wins pretty convincingly. There are more and more. Ohio's John Kasich, you just mentioned, Rick Scott in a very close hanging on.

So if you look at the map, some prized pickups for the Republicans, Carol. They held their own and defended it. And, look, the president has to worry every day about the House and the Senate, but it's governors who implement the health care law. It's governors who implement a lot of federal policy. So Republicans are just as happy, if not in some cases more happy, about this map than the federal map.

COSTELLO: Perhaps, John, the most surprising victory came in Maryland, a very blue state, and a Republican won the governor's chair. How did that happen?

KING: Carol, you've lived in this area. You know the state politics. Now, Maryland has had a recent Republican governor, Bob Ehrlich, not that long ago, so it does happen in the state. But this -- Anthony Brown was the Lieutenant Governor to Martin O'malley, who's the sitting governor now, who's thinking about running for president in 2016. If you looked at all the polls in this race, this of nowhere on the map.

Larry Hogan is a Republican real estate developer and this is one of the things you look at now saying, whoa, what happened here? Well, certainly, there was a Republican wave. And again the question was did we have an anti-incumbent wave, was it an anti-Washington wave? You have to say, when you look at the results, especially in blue states like this -- and it's convincing, he won in all the Republican counties but he also held his own in places. Now, Baltimore City goes overwhelmingly Democratic, but when you pull out and look around in the suburbs of Baltimore, Larry Hogan is winning. This is not a close race. This is not a fluke. It's a convincing win for Republicans in a state that normally trends blue.

That's a message election, Carol.

COSTELLO: Yes, sir. , John King, thanks so much. I appreciate it.

Still to come in the NEWSROOM, it may be a tough balancing act for potential Senate Majority Leader, Mitch McConnell, and it's all thanks to some colleagues with presidential ambitions in 2016.

(COMMERCIAL BREAK) ANNOUNCER: This is CNN breaking news.

COSTELLO: A bit of breaking news to pass along to you and it's good breaking news. The Dow popped to a new record this morning, following the sweeping victories by the Republican Party. Christine Romans joins us now. Up 52 points.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: I know. 17,440 was the highest the Dow has ever been during a trading day ever, so backed off by just a couple points. But you're right there, Carol. It's utility stocks, consumer staple stocks, energy stocks, bank stocks, financial stocks. Get my drift here? There are investors who think that there could be a pullback of regulation of some of those sectors, or at least maybe more industry-friendly policies because of a GOP-dominated House and Senate, and so that's why you're seeing the kneejerk reaction in some of those stocks.

COSTELLO: So you've immersed yourself in the world of business and finance. So will it makes a difference that Republicans control both houses of Congress?

ROMANS: There is an opportunity here. There's an opportunity for the White House and for key Democrats and for Congress to do something on tax reform, to maybe find common ground on an infrastructure package. The GOP has to show that it can do something for the American people and the middle-class so that it can get elected in 2016, that's what it wants, right? And the White House doesn't want to be a lame duck. They want to get stuff done, too. So there is legislative common ground they can find. I think on taxes and infrastructure would be my guess is the best way they can find that common ground.

COSTELLO: So some workers won, too, because of last night's elections. The minimum wage was raised in four states.

ROMANS: In four states and in Oakland, California, and in San Francisco, California. And when you do that math, 606,000 people got a pay raise last night. 606,000 people. Some of these are going to be averaged in just a little bit at a time. But when you're looking at some of these cities and some of these states, they are following the public polls that show 71 percent of people support higher minimum wage. It's a Democratic priority that's gone nowhere in Washington, but even in red states, voters are raising the minimum wage.

COSTELLO: All right, Christine Romans. Many thanks. I appreciate it.

I'll be back in a minute.

(COMMERCIAL BREAK)

COSTELLO: Now that the midterm elections are over, all eyes are already fixed on 2016, and presidential ambition could change the dynamic even more for Mitch McConnell and the new look Senate. Tom Foreman has more for you.

(BEGIN VIDEOTAPE) TOM FOREMAN, CNN CORRESPONDENT: As the majority leader, Democrat Harry Reid enjoyed a certain advantage in the Senate because his party also held the White House. That tends to tamp down the presidential ambitions of other people in the party.

But Mitch McConnell, if he indeed becomes the Majority Leader, will not have that advantage. He will look out on an ocean of people with big presidential ambitions. Right across the chamber, he'll see his own fellow Kentucky senator, Rand Paul. Just last year it was not clear at all that Rand Paul would even back McConnell for reelection, so there could be hard feelings about that. In the corner, Ted Cruz is back there. He gets a lot of headlines that Republicans have trouble managing, and he didn't even want to jump on board saying that he thinks McConnell should be the majority leader right now. Marco Rubio back there from Flroida also has presidential ambitions.

From outside the chamber, there are people like Paul Ryan from the U.S. House of Representatives. A lot of ideas about the economy and how to run the country. And what about all those governors and former governors? People like Bobby Jindal and Jeb Bush and Chris Christie and even Sarah Palin and Mike Huckabee.

Put them all together, and what Mitch McConnell is facing is people who have a lot of ideas about what ought to be done with all this newfound Republican power. And all those ideas may have a lot more to do with their 2016 ambitions than they do with what McConnell would like to do here.

(END VIDEOTAPE)

COSTELLO: Tom Foreman reporting.

The next hour of CNN NEWSROOM starts now.