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U.S. Markets Surge at Open; SC Lawmakers Pass Bill to Take Down Confederate Flag; Donald Trump Responds to "Tone It Down" News Story; The Mystery of Baby Doe. Aired 9:30-10a ET

Aired July 09, 2015 - 09:30   ET

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

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[09:30:00] ANA CABRERA, CNN ANCHOR: Good morning. Thanks for joining us. There's the big bell this morning. We're watching the market. I'm Ana Cabrera, in for Carol Costello. Thank you so much for being here.

What will happen to your investments this morning? The market crashes in China, debt debacle in Greece, that nearly four-hour stop at the NYSE yesterday following some kind of technical glitch, all these questions throwing into question what will happen. Right now you can see, though, we're starting off in a good, positive light, 76 points is the Dow up this morning.

CNN's business correspondent Alison Kosik is monitoring this from the floor of the New York Stock Exchange. Also with us this morning, chief business correspondent Christine Romans and CNN global economic analyst and time assistant managing editor Rana Foroohar.

Let's start with Alison there at the exchange.

Tell us what's happening right now.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Good morning, Ana.

It feels like business as usual. I'm seeing traders bustle around. I don't know if you see them running by me, making trades. It's like yesterday didn't happen.

Earlier, before that opening bell rang, a lot of traders told me they were cautiously optimistic that the trading today would go smoothly. That's, of course, after, as you said, the floor of the exchange was basically shut down for almost four hours because of a technical glitch.

Now late yesterday, the president of the New York Stock Exchange said they had found the problem and fixed it. And in his statement they called it a, quote, "configuration issue," which in computer speak means that some settings weren't put out there properly when the NYSE unleashed some new software the previous evening.

Well, now what? Now comes the concern from many traders about whether or not the New York Stock Exchange could take a hit to its reputation. One trader jokingly telling me, I'm worried that the New York Stock Exchange is going to be put in a penalty box, meaning the worry is that trades wouldn't be routed all the time to the New York Stock Exchange because of worries that those trades won't go through. However, yesterday, when the exchange reopened at the end of the day, we did see a rush of volatility, a rush of orders. So we did see many signs of confidence coming back.

And more confidence to the market, the Dow up almost 200 points only a couple of minutes into the trading day.

Ana.

CABRERA: And we're hearing the energy there with you, Alison. A few whoo-hoos as people are walking by. It seems like people are energized and ready to get to work today. Thanks so much.

I want to bring in Christine and Rana now to discuss a little bit more about what we can expect moving forward here.

Obviously, Christine, it had been a very roller coaster week. Right now we're seeing this huge spike this morning. I mean what's next?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: There are four big fears here. You've got Greece to deal with, and we're in the last moments of that. There will be some resolution here in the near term. If Greece falls out of the euro, I expect it could be trouble for your 401(k), at least in the very near term, as the dollar gets strong and the euro declines if there are real worries about -- about Europe.

You've got China, a stock market crash in China. That is still a big uncertainty, what it's going to mean for Chinese consumers, the -- you know, U.S. investors are pretty much immune of their own -- losing their own money in the Chinese market. I mean it's not even really a normal market. It's very controlled by the government. But China is a real concern.

Commodities have been moving sharply. Oil prices down sharply. A lot of commodities are moving. That's destabilizing. And then you've got the Fed. The Fed will eventually have to raise interest rates. So there are -- there are four big, I think, fears or factors in the market right now that could keep things choppy in the near term.

CABRERA: And that being said, Rana, what should people do? I mean we're watching. Is there like a deadline where we're waiting to reach?

RANA FOROOHAR, CNN GLOBAL ECONOMICS ANALYST: Yes. Well, you know, the European situation is going to come to a head on Sunday. There's going to be a big vote. We're going to see what the ECB might come up with. We're going to see what Greece is going to come up with in terms of another proposal for the Europeans to bail them out. So I expect the markets are going to be jittery around that through early next week.

The Chinese situation is really interesting because the government essentially came in and put a floor under the market yesterday, which goes to your point, Christine, about how controlled that market is. I think there's going to be continual jitters there because they're having a major debt crisis. You know, they have about three times the amount of debt that we do here in the U.S. We worry about debt and deficit here. The Chinese have three times as much. Until they solve that problem, you're going to see a market that is out of sync with the real economy in China and that makes for volatility.

ROMANS: I'm -- I'm surprised how resilient American markets have been though.

FOROOHAR: Yes.

ROMANS: We were just talking about this. It's -- it still, as Mohamed El-Erian, the big investor says, the United States is still the cleanest dirty shirt in the laundry.

FOROOHAR: Yes.

ROMANS: So when there is uncertainty around the world, people tend to want to come to safe havens like the United States.

FOROOHAR: It's true. And the other thing that's happening is, you know, the Fed was really supposed to raise interest rates in the fall. That's what everyone's been expecting. Because of all of this trouble, in China, in Greece, that may not happen.

ROMANS: Yes.

FOROOHAR: That gives the markets a little more time here to run. Of course the worry is that they're brewing up a bubble and that we could see a correction after that rate hike.

CABRERA: And I do want to go back to Alison just briefly real fast because, of course, there's always money to be made for traders and, of course, there are some weaknesses right now in the market. But are investors trying to take advantage of this global turmoil, Alison?

KOSIK: You what's interesting, when you ask that, I mean if you're an average investor, like I am, when I see that volatility, it's kind of scar scary, as many investors would see. But if you're a hardy investor who's been in the market, who's used to these twists and turns, they actually see volatility as a good thing to make money because they wind up buying on the dips. They see those dips as a buying opportunity and kind of like everything's on sale. So you'll see those hardy investors really ride the volatility. And you'll see usually, unless there's, of course, a full scale correction going on, you'll see maybe some big volatility where you'll see a triple point drop let's say for the Dow and then the next day you'll see it shoot up. That's why you'll see -- that's when you'll see those investors really buying in on those dips.

[09:35:34] CABRERA: And look at the Dow climb this morning, up 230 points, where we ended the day yesterday.

Alison Kosik, Rana Foroohar and Christine Romans, our thanks to all of you.

And we'll be right back.

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JENNY HORNE (R), SOUTH CAROLINA STATE REPRESENTATIVE: I cannot believe that we do not have the heart in this body to do something meaningful, such as take a symbol of hate off of these grounds on Friday.

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[09:40:13] CABRERA: That is State Representative Jenny Horne in South Carolina as the house yesterday went into the wee hours of the morning debating the bill to remove the confederate flag from state grounds. It all ended with an overwhelming majority passing the bill, meaning that flag could come down in the next 24 hours.

And I want to bring in Representative Horne, joining us live from Columbia this morning.

I know you were going at it until about 1:30 this morning. You must be exhausted. I know it was emotional for you. How are you feeling right now?

JENNY HORNE (R), SOUTH CAROLINA STATE REPRESENTATIVE: Oh, I feel good this morning. I feel very proud and very excited about the future of South Carolina.

CABRERA: When we listened to your speech last night, I think you couldn't help but be moved. Was this personal for you?

HORNE: You know, it is. And representing Charleston County, as I do, and the tragedy that occurred in Charleston three weeks ago, you know, the people of Charleston are so gracious and so spiritual and known for their hospitality. I felt like that it was time for us to get back on track and talk about the reasons why we were there. The debate got kind of sidetracked. And I felt like we needed to focus on the matter at hand, which is removing the confederate flag as quickly as possible from the statehouse grounds.

CABRERA: When can we expect that to happen?

HORNE: I'm sorry?

CABRERA: When will see the flag come down now?

HORNE: I'm having difficulty hearing you because of the traffic. Can you -- can you repeat it?

CABRERA: There is -- there's a lot of noise. I'm hoping you can share with us what we can expect to happen next. When might the flag come down?

HORNE: Oh -- oh, yes. The flag will -- the governor is signing the bill, it's my understanding, today at 4:00 p.m. And I plan to attend the bill signing. And after that at some point the flag will come down. But I think we would have to talk with Governor Haley to know exactly when that will take place. CABRERA: I do know that it did pass, 94-20 was the final vote. And,

again, that's more than the two-thirds majority need. But we talked about that 13 hours of debate that happened. There were 68 amendments that were proposed by other lawmakers there at the house of representatives. State Representative Michael Pits (ph), in fact, proposed 25 amendments himself. What do you say this morning to those who still stand so firmly on the other side of this debate?

HORNE: Well, you know, there is always another side to a debate and I respect the opinions of my colleagues in the house. But at the end of the day, the South Carolina house of representatives did the right thing in voting to remove the flag. And for that, I am proud of my colleagues in the house. And even though it took 13 hours of debate and it was at times grueling, we came to the point where we are today. And today is a new day in South Carolina and I'm proud to be a small part of that. And I cannot tell you how proud I am of this state, my home state. And I never thought I'd see it in my lifetime.

CABRERA: Before I let you go, do you believe that South Carolina will now be a leader of a larger movement across the country?

HORNE: South Carolina, as demonstrated in Charleston, we have -- we have very good race relations in this state. And, you know, contrary to the stereotypes that you may hear about the south, we are a very loving, spiritual state. And we have tragedies, we pray. We don't riot. And you can see in South Carolina, and in Charleston in particular, the forgiveness and the grace that was demonstrated by the victims of this horrible tragedy and the reaction of Mayor Riley and law enforcement, Chief Mullen. I mean we came together as a people and -- to sustain one another and to recover from such a horrible tragedy.

And we're still in recovery mode. We really are. It's very painful for all of us. And part of the emotion last night was the pain that we feel in Charleston.

[09:45:03] And certainly I did not want to leave this state house without telling the folks back in Charleston that we were bringing the symbol of hatred down, and placing it in a museum where it can be studied as part of our heritage and viewed by the public. And certainly we all -- we all have been affected, every single one of us has been affected by this tragedy. .

CABRERA: Absolutely. Well, State Representative Jenny Horne of South Carolina, thank you so much for spending some time with us this morning. Our best goes out to you and the entire state as you continue to heal after the tragedy in Charleston. Thanks again.

HORNE: Thank you so much. Thank you.

CABRERA: Up next, Donald Trump is at it again. Yes, just this morning, some new tweets about what the RNC chair said to him last night. We'll have his response next.

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[09:50:10] CABRERA: We have some breaking news to tell you about. Just moments ago, presidential hopeful Donald Trump responded to reporting that RNC chairman Reince Priebus told him to tone it down on his illegal immigration remarks. And I want to bring back in CNN political reporter Sara Murray.

So, Sara, we were just talking about this conversation that the two apparently had last night in our segment about a half an hour ago, and it was just minutes later that Donald Trump fired off this tweet. What did he say?

SARA MURRAY, CNN POLITICAL REPORTER: Yes. So we are hearing from Donald Trump yet again today. He tweeted, "Totally false reporting on my call with Reince Priebus. He called me ten minutes, said I hit a, quote, nerve. Doing well, end."

So this is Donald Trump's version of how the events went down. One thing I would say, though, is the Republican National Committee has a whole set of communications officials. They send out e-mails every morning about the stories they're reading, the headlines they're paying attention to. The No. 1 story on the list was "The Washington Post" story about this exact call, about Reince Priebus telling Donald Trump to tone it down.

So the idea that that didn't happen, the idea that it's totally fabricated, I'm not sure why the RNC would be pumping that out as the hop headline of the day if it never happened.

CABRERA: All right, Sara Murray, thanks for the update. We'll continue to follow.

Still to come, just who is this child? Take a look at this picture here. This is a huge mystery to police. A little girl's body found near the beach on Boston Harbor. And despite a massive media campaign, police say no one has come forward claiming to know who the girl could be. The strange case of Baby Doe after the break.

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[09:55:58] CABRERA: I want you to take a close look at the picture I'm about to show you. You could help solve a major crime. This is Baby Doe. Her remains were found inside a trash bag in the Boston Harbor two weeks ago, and police are desperate to find out who she is. This new composite sketch just released last hour. Police say they now know Baby Doe has pierced ears. Now earlier sketches have been viewed more than 45 million times on Facebook alone. Police say they have received dozens of tips, but they still have no solid leads. They do not know who this little girl is.

Joining me right now is John Walsh, the host of "THE HUNT" here on CNN. And, John, of course, I want to talk to you about your season two premiere of "THE HUNT", which is coming up this week, but first I want to touch base on this story, this mystery. It's unbelievable that nobody seems to know who she is, how she died. I mean, where is the missing persons report for this little girl? Where are we are parents?

JOHN WALSH, CNN HOST, "THE HUNT": Well, No. 1, the National Center for Missing and Exploited Children -- which we helped create after Adam was murdered, President Reagan helped us create the national center -- has done a composite that the Massachusetts police are looking and are working with. The Massachusetts police distributing everywhere, and as you mentioned, Facebook has put it on. Facebook is a great partner of mine and they do Amber alerts. We're hoping that someone will have the guts to come forward.

And if this little girl's identity hasn't been found, we will probably do this case on "THE HUNT" in the future, but it's not unusual for immigrant parents or illegal parents to have something happen to their child and dump their child. I'm not saying necessarily that they intentionally killed their child, but because they're illegals, they will dump their child. I've done several of those cases over the years.

CABRERA: Do you believe that could be the case here? The reason why --

WALSH: Could be the case.

CABRERA: -- we haven't heard from neighbors or other family members or anybody who has an idea.

WALSH: Could be the case, or it could be the worst case. It could be parents who have murdered their child or killed their child. You know, the first guy I'm doing this week on "THE HUNT" on Sunday night is a man who killed his own daughters, murdered his own daughters.

CABRERA: And on that note, before we talk more about that, let's play the clip to give everybody a preview.

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WALSH (voice-over): It's the classic control freak domestic abuse scenario: Make the woman so dependent upon the man that she's not only afraid, she's actually convinced that this is the norm. This is the way that she has to live.

UNIDENTIFIED FEMALE: He always had a gun on him, and he would always go to the gun range to practice shooting.

He had threatened before to kill my mom and kill my dad.

UNIDENTIFIED FEMALE: I think slowly Patricia became very, very isolated.

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CABRERA: A parent killing their own children. I can't fathom it.

WALSH (on camera): It's horrible, and I wanted to say one more thing about Baby Doe. I know people don't want to talk to cops, especially people that are illegals. "America's Most Wanted" worked for 25 years because they gave people the opportunity to call, go to our hotline, go to the website. Caught 1,400 bad fugitives, recovered 61 missing children. "THE HUNT", we have the same thing. If somebody knows who this little

baby is, they could call me at 1-866-THE-HUNT or CNN.com/thehunt. So if you know who this little girl is, you don't have to go to law enforcement if you're afraid, if you're afraid you're going to be deported. If you know who she is, contact me. We'll deal with that. That's one thing to do.

This guy, Yaser Said, was a guy I couldn't catch on "America's Most Wanted". I profiled him eight times.

CABRERA: Does it just eat at you?

WALSH: It eats at me. Having a child is a privilege. It's the toughest job you'll ever have in your life, it's the most rewarding.

[10:00:03] I cannot fathom how anyone can kill a child, especially your own children.

This guy probably molested his own daughters. They went to the police. He then got them to recant. He terrorized them by saying "I will kill your mother" if you don't recant. He arranged marriages for them in Egypt. He had dual citizenship. I think he may have fled to Egypt.