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Stocks Super Worst Day In Four Years; Bush Visits Border, Takes Aim at Trump; Source: Obama Gave Biden His Blessing To Run Today. Aired 7-8:00p ET

Aired August 24, 2015 - 19:00   ET


[19:00:10] JIM SCIUTTO, CNN ANCHOR: OUTFRONT tonight. The Dow's roller coaster day, dropping nearly 600 points in a massive sell-off. Its worst day in four years. What's next?

Plus, Jeb Bush on the border charging that Donald Trump's immigration plan is unrealistic, costly and offensive. What's Trump's answer?

And a source tells CNN Joe Biden is leaning towards a run for president? How does a Biden candidacy stack up against Donald Trump? Let's go OUTFRONT.

And good evening, I'm Jim Sciutto in again tonight for Erin Burnett. And OUTFRONT tonight the market's deep dive. The Dow plunging more than 1,000 points within minutes of the opening bell. The fall epic. Stocks did try to stage a comeback but fell back ending down 588 points. That's three-and-a-half percent for the day. Overall today, the worst for the Dow since August 2011. And it caps the biggest three-day point loss in history for the market. America's biggest and best known companies like General Electric and Pepsi crashing more than 20 percent at one point. Apple dropping 10 percent. This is part of a meltdown on stock markets across the globe, raising fears this could be the beginning of something worse.

Alison Kosik is OUTFRONT tonight. Alison, give people a sense of how crazy today was. Nearly 14 billion shares traded, the most in four years. The Dow see sawing 3,000 points in the first 90 minutes of trading. And it poses biggest three day point loss ever. What is going on here exactly?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Yes. Certainly, it was a stunning day when you look at what happened in the markets, Jim. You know, this was all about China and it all sort of began at least for today's trade, it began the night before when we saw China's main index, the Shanghai composite fall 8.5 percent. That triggered the jaw dropping fall of the Dow at the opening bell for us, that drop of more than 1,000 points. That sort of set things into motion. But there's a bigger underlying reason for the volatility that we're seeing. We're seeing this because China's economy is slowing. Now, we have known this for quite a while.

But the difference that's happening now is, is that investors are seeing that it may be slowing more than they realized. And the problem here is that China is the world's second biggest economy. In fact, at one point it was powering growth throughout the world. But now it looks like China is having some really big problems. And the reason we're worried about is because U.S. companies rely on China where we sell our products there. But China is having problems. That means sales and revenues could really suffer. And that could wind up ricocheting here in the U.S. and hurting consumers here in the U.S. -- Jim.

SCIUTTO: No question. Chinese miracle, big driver of global growth. What are traders telling you about what they're expecting tomorrow? You have Asian markets opening up not long from them.

KOSIK: Right. And you make a good point. Now, traders are telling me they wouldn't be surprised if this route continues, meaning, we could see these main indexes drop even lower. But you said it yourself. You know, traders are going to be watching a couple of things. One, they're going to be watching the Asian markets which open in about two hours. They're going to want to see how Asian markets react to our performance today. And they are also going to want to see if China's government makes any kind of policy change. If it does, that could kind of calm things down. The second thing that traders are going to be looking for is the Fed. The Fed is expected to raise interest rates in September. But if the Fed takes a look and sees how the global environment is and says, we're going to wait, that could also bring some calm into the market. Keep in mind that there's no quick fix for this. But there are a couple things that could calm the markets down. We shall see what happens when that opening bell rings.

SCIUTTO: Alison Kosik, she's been down at the market herself today. Thanks for joining us.

And joining me now for tonight's "Money and Power," Richard Quest. He is host of "QUEST MEANS BUSINESS." Peter Kenny is chief market strategist at Clearpool Group. And Jim Bianco, Bianco Research. So, Richard, I have to ask you, this is really the burning question, is this a market move, a market correction or could this be the beginning of a global crash, another crash like 2008?

RICHARD QUEST, CNN HOST, "QUEST MEANS BUSINESS": No, it's not 2008. Everybody I have spoken to says, it's not 2008, the same factors aren't at play. It's not 1997 either. The same factors aren't at play. Is this a correction or is this a bear market. We just don't know. And you never really know until the thing is up and running in full throttle. What we can say with a certain degree of certainty is that what needs to happen is policy response. This market is not something you're going to turn around and head up again unless there's some form of policy response. Now, that might be the Fed making it clear they're not going to race rates. It might be China clarifying its policies. There's 1,001 issues that are out there. All of them are mixed up in the same mess at the moment. And what the market is looking for is direction.

[19:05:15] SCIUTTO: A response. Peter, the Dow losing more than 1,100 points over the last two trading days. People at home are watching this. What if anything do we all need to be doing with our savings, with our 401(ks), our 529s, et cetera? PETER KENNY, FORMER NYSE POOL TRADER: Well, it's certainly true

that over the last four trading days we have seen volume expand, prices coming quite, quite sharply. And the VIX go up 200 percent. That's sets off alarm bells for everyone. Every investor. That said, it's important to remain diversified, to make sure that you have got exposure to the VIX if it's all possible even at this elevated levels. There's justification for exposure. Additionally, think defensively. Don't try to catch the falling knife. This market is going to be intensely volatile for the next few weeks. Possibly months. With that in mind, there's going to be a lot of money shaken out of very, very weak hands. You want to have exposure to the VIX, utilities, defensive names, financials with the focus on the domestic economy.

SCIUTTO: VIX, just for our viewers, Volatility Index, key from market watchers. Jim, I want to ask you because one of the problems now is that interest rates and so many countries are basically zero. And typically one of the tools the government would now is cutting interest rates, to kind of, you know, give the market a bit of a boost. Does Washington -- sounds like we lost Jim there. So, Peter, I want to ask you that question. I will ask you as well, Richard. Since interest rates are zero, that would typically be the government response. Does Washington have any tools to revert a crash or even a financial crisis?

KENNY: Well, from my perspective, the Fed is in a bit of a box given the fact that global coordination in terms of monetary policy has to today at least, at least to the last week or so, it has worked. Now the Fed is -- does not have that option of lowering rates or reintroducing a stimulus package. But what the fed can do is speak to policy, terminology is going to matter a great, great deal. And the fact of the matter is, we're getting GDP on Thursday. It's probably going to be stronger than expected. The Fed is going to have to address that by stating that they are probably going to hold off on moving on rates. As Richard indicated, it was expected to take place in September, at least initially. That's probably going to be pushed off until later in the year.

SCIUTTO: I think we have Peter Bianco now back. Peter, can you hear me, okay?


SCIUTTO: So, Peter, I want to ask you as well, we were just talking about governments not having the ability to cut interest rates because they're as low as a response to this just to try to get these markets going again. What would you want to see? And Richard mentioned this before that the markets are looking for something, right? They're looking for a positive message, some sort of change, some sort of injection. What are you looking to -- looking for to slow this crash down?

BIANCO: I heard Richard. He is right that it is about a policy response out of China. And the problem is, China has been trying to give us a policy response all year. And the market has now concluded that China is in a full panic. They cannot stop a slide in their economy, they have gone as far as threatening to arrest short sellers in their market. They have devalued their currency. They have tried everything they can to get their economy moving forward. And because they can't do it, the market is losing confidence in them. Now, is there a magic bullet they could come up with tonight or tomorrow?

Well, they tried numerous bullets in the last number of months. And none of them have worked. That's the epicenter of the problem. China is the factory of the world. Everything gets produced in China and sold around the world. The reason that China is slowing is the world economy is slowing right now. And that then -- the inability of China to deal with it is making people think that the world economy is slowing a lot worse than they thought, which is why we're seeing market turbulence not just in the U.S. but all over the world.

SCIUTTO: Thanks, Jim Bianco. By the way, I called you Peter but I know you are Jim and I am a Jim as well. Before we go, Richard, just want to ask you this. I mean, you know, one of the oldest investing rules in the book right, is the simple thing buy low, sell high. And you look back at these past market crashes, people made a lot of money, they are the ones who had the guts and the money to buy when the market crashed. Because you never know when the bottom is. That's the trouble.

QUEST: Buy low, sell high, if you know the direction.


QUEST: If you are not trying to take on the professionals. If you are an amateur at home looking at your 401(k) and worried, you just sit this out. I guarantee you, if you try and play into this market, in this -- in these conditions, you don't know what's happening in two hours in Beijing or in Shanghai or in 12 hours while you are asleep in Frankfurt or London. This is not a time for their --

SCIUTTO: And that is the reminder, I did really, the market never closes today, right? I mean, it may close here but then the Asian markets pick-up. There's always something going --

[19:10:04] QUEST: I'm looking to see what's happening in Auckland and Sydney.

SCIUTTO: Yes. Exactly. Peter Kenny, he said don't try to catch the falling knife. I think that's the metaphor of the night. Thanks very much. To all of you, Peter, Jim and Richard.

OUTFRONT next, Jeb Bush on the U.S./Mexico border today outlining his immigration plan and taking aim at Donald Trump's. How did Trump fire back.

Plus, breaking news. Joe Biden meeting with President Obama today and coming away with the President's blessing if he decides to make a run for president. Will Biden make a late bid to take on Hillary Clinton? And can he top Donald Trump?

And this dramatic video of three young Americans, friends on a tour of Europe, now hailed as heroes after risking their lives to stop a potential massacre.


[19:15:00] SCIUTTO: Tonight, the battle over the border is heating up. Jeb Bush heading to Texas today and taking aim at GOP frontrunner Donald Trump. Just miles from the Mexican border, a notably feistier Bush calling Trump's plan to build a wall and deport more than 11 million undocumented immigrants unrealistic, costly and offensive. But is this trip and that message enough to change voters' minds?

Polo Sandoval is OUTFRONT in McAllen, Texas.


JEB BUSH (R), PRESIDENTIAL CANDIDATE: You have to have a deeper strategy than just building a fence.

POLO SANDOVAL, CNN NATIONAL CORRESPONDENT (voice-over): It didn't take long for Jeb Bush to go on the offense during his day stop at the South Texas border city of McAllen. The former Florida governor went straight for his fellow candidate, Donald Trump's immigration policy.

BUSH: His plans are not grounded in conservative principals. It would cost hundreds of billions of dollars. It's not realistic.

SANDOVAL: Last month, Trump flew his signature plane down to Laredo, Texas and other border cities. He toured the dividing line between the U.S. and Mexico in the midst of a media frenzy.

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: We have a tremendous danger on the border with the illegals coming in.

SANDOVAL: Trump is needling his fellow GOP candidate.

TRUMP: I was down on the border, it's rough, tough stuff. This is not love. This is other things going on. And I think he will probably be able to figure that out, maybe.

SANDOVAL: While both Bush and Trump met with local officials, the similarities end there. Not on Bush's agenda, a look at the actual border, approximately six miles south of the stop. Campaign officials say Bush has visited the border before and is familiar with the issues dominating the immigration debate. Today, stop in South Texas coming amid rising tensions between the GOP rivals with Bush tweeting last week, his massive inconsistencies aside, Donald Trump's immigration plan is not conservative and does not reflect our nation's values. Trump later responded at his big Alabama rally.

TRUMP: Jeb Bush, very weak on immigration. Wants to let people come in.

SANDOVAL: For all the back and forth, the two do have substantial differences on key issues such as birthright citizenship.

BUSH: I think that people born in this country ought to be American citizens.

TRUMP: You walk over the border one day and all of a sudden, we have another American citizen. It doesn't work that way.

SANDOVAL: Or building a wall.

BUSH: I talked to the southwest governors. No one thinks that we should be building a fence as the solution to security.

TRUMP: I will build a great, great wall on our southern border. And I will have Mexico pay for that wall.

SANDOVAL: And how to deal with the 11 million undocumented immigrants already in the United States.

BUSH: The simple fact is, there is no plan to deport 11 million people. We should give them a path to legal status.

TRUMP: They came over illegally. Some are wonderful people and they have been here for a while. They got to go out.

SANDOVAL: Over the weekend, Trump was short on specifics on how he would execute that plan.

GEORGE STEPHANOPOULOS, ABC NEWS ANCHOR: You declare how you are going to do it but you don't say how.

TRUMP: George, I'm telling you, it's called management. You can do this and we can expedite the good ones to come back in.


SANDOVAL: At Bush's press conference actually happened, the building you see behind me, the restaurant you see behind me, six miles from the actual U.S./Mexico border. We asked some of his campaign aides why he didn't actually make the drive to see firsthand what's happening right now. Their response was that Bush has been to the border on several occasions and a visit to the border is not necessary this time around -- Jim.

SCIUTTO: Polo Sandoval in McAllen, Texas. And OUTFRONT, Katrina Pierson, she's the spokesperson for the Tea Party Leadership Fund and republican strategist Mercedes Schlapp. Thanks for both of you coming tonight.

Katrina, I want to start with you. Jeb Bush slamming Trump's immigration plan. You heard it there. Unrealistic, causing billions of dollars, hundreds of billions in fact. And offensive, violating people's civil liberties. How do you answer that charge?

KATRINA PIERSON, SPOKESWOMAN, TEA PARTY LEADERSHIP FUND: I say, it's just all talk. You know, it's really nice that Jeb Bush stopped for a photo op when he was really there for a fund-raiser but didn't bother to go see the border and then wants to grand stand that his plan is the best. Here is the thing, he didn't talk about what his plan would cost. He talks about the billions of dollars that it would cost to get it under control but in his plan, he wants to let everybody come in, let everybody stay and share the cost with the states. But he doesn't put a number on that which happens to be in the billions as well. Jeb Bush needs to take a step back and ask the voters what they want. Because if you look at the polls right now, it's Donald Trump's plan and there's no denying that.

SCIUTTO: Mercedes, I want to ask you. But keep in mind Katrina, it's a right leaning think tank, the American action forum which estimates it would cost four to $600 billion to deport 11 million undocumented immigrants. It estimates reduce real GDP by $1.6 trillion. I mean, these charges are not coming from the Left. They're coming from the right.


PIERSON: But the point is -- hold on. He was talking to me about those numbers. The point is that there isn't a number put on what it would cost to keep them here. And that was my point.

SCIUTTO: Mercedes, let me give you a chance to response.

[19:20:00] SCHLAPP: Sure. Well, I mean, when you look at immigrants who are here legally and contributing to our economy and during a lot of the jobs that Americans don't want to do. I mean, this is about creating economic growth in America. And if we have an immigration, I mean, we are a land of immigrants. This is where, you know, the Irish came to our country to search for a better life to contribute to America. And the key is you have individuals who left very bad situations in their own countries. When you look at Guatemala, Honduras, El Salvador coming to America for a better life for their families.

And guess what, because of the fact that we have not enforced the law and we have President Obama with an executive overreach on immigration and he has basically ignored this problem, you already have the problem here. So, how do you deal with it? Katrina, do you actually think that you will going to round up these millions of individuals that have been here? Some of these children who are born in America and deport them. That is not popular amongst republican voters in general. I'm so sorry.

PIERSON: Well, it is popular among some republican voters. And it's because no one is buying into the scary tactics of rounding people up at gun point to setting them away. Trump's plan calls for sending back the criminals first. And the families will work with them.

SCHLAPP: Which we can agree with.

PIERSON: Maybe that looks like a sponsorship program, maybe it doesn't. We don't know that yet, but what we do know is that Trump's plan puts Americans and their children first, including legal residents, not some off branch shoot of just let everybody come and would just figure out how to do it along the way.

SCHLAPP: No one is saying to let -- (CROSSTALK)

PIERSON: Katrina, that's what Jeb Bush is saying. If you are born here, you should stay here. That's why we're talking about the birthright citizenship, which is a vast difference between the two candidates.

SCHLAPP: Which is actually important debate to have at this point. You are right. There's fraud that does happen.

PIERSON: Absolutely.

SCHLAPP: Individuals who come and have their babies here and then expect to get citizenship. Should that be a debate? Absolutely.


SCHLAPP: But the mere fact that we have ignored immigration -- illegal immigration our country for so long and the problem hasn't been dealt with, now you're going to go after the 11 million undocumented immigrants and say, get out of here? That's not realistic.

SCIUTTO: Mercedes, let me ask you --


PIERSON: The American public should not have to take up for the politicians who have failed. It's time to deal with the issue. And you have to deal with it swiftly. Because we're on economic fumes right now. We can't afford to let all these people stay here and put them on the systems.

SCHLAPP: You are saying --

SCIUTTO: Mercedes, give me a second. And Katrina, I'll give you a second to respond to this as well. Bush, we heard him speak in Spanish today at his press conference, conducting really an entire interview as well for Telemundo in Spanish. He has called Trump's plan as you know, offensive. And he also spoke about his own wife and children who, of course, Latino background. Have a listen to what he said.



"I am very proud to be married to a Mexican-American woman, my children are Hispanic, I've been immersed in Hispanic lives."



SCIUTTO: I want to ask you, Mercedes, because here, you heard that applause there, you heard him talking about pride as well. And yet Trump is still trouncing Bush in the polls. Why is that message not getting across?

SCHLAPP: Well, I think, you know, Trump loves looking at the polls. But one poll I don't think he is seeing is the one that came out on Gallup today basically saying that 65 percent of Hispanics view him unfavorably. So, it might be time for him to change his rhetoric on Hispanic. It's about tone. So, you know what? Jeb Bush and these other candidates have to be true to themselves in terms of immigration and figuring out the best way that they can fix the system.

SCIUTTO: Katrina, that's a very --

SCHLAPP: But the point is, it's going to be about tone and rhetoric and how you can really reach out to those Hispanics in key states like Florida, Colorado, Nevada. That's going to be critical, if we cannot win Florida in general election, we will lose.

SCIUTTO: Katrina, that's a fair question. You know that after 2012 the Republican Party itself looked at itself and said, we have to do a better job with Latinos. How do they do that when this is the message that is coming from the republican frontrunner?

PIERSON: It wasn't the Republican Party. And you will recall that it wasn't the base that chose the nominee. And the same people that wrote that autopsy report were the same consulting classes out there talking about we have to pander to Hispanics and we don't. How insulting is it to the Mexican-Americans, to the Latino-Americans and legal residents of this country where they feel like they have to be pandered to. And it's not true. They want the truth like everybody else. That's why Trump is winning Latinos in Nevada and why --

SCHLAPP: They're not --

PIERSON: -- in Florida.

SCHLAPP: He's not winning Latinos. He really isn't. He needs to change his rhetoric in order to gain Hispanic support. You should look at the Gallup poll, it just came out today.

SCIUTTO: Well, Katrina and Mercedes --

PIERSON: In Nevada and Florida?

SCIUTTO: I want to thank both of you --

SCHLAPP: Nationally.

SCIUTTO: And you are hearing and we are hearing right here that the deep emotion and differences on this issue. And keep in mind, this is within the Republican Party there before we get to the general election. Mercedes, Katrina, I want to thank you for coming on tonight. We will certainly speak to you again.

PIERSON: Thank you, Jim.

SCHLAPP: Thank you. SCIUTTO: And OUTFRONT next, a source telling CNN that President

Obama has given Joe Biden his blessing if he decides to run. What could that mean for Hillary Clinton and for Donald Trump?

And three Americans tackle a heavily armed man on a train headed to Paris. Now those young men are speaking out describing how and why they rushed the gunman.


[19:29:01] SCIUTTO: Welcome back. And breaking news. President Obama giving Vice President Joe Biden his blessing to launch a presidential campaign. The senior democrat telling CNN's Jeff Zeleny that the President and Vice President discussed a potential run over lunch today. And tonight, the buildup continues. The Vice President meeting with two of the President's former top advisers to discuss a 2016 run.

Joe Johns is live at the White House. Joe, so what are you hearing about this meeting going on tonight at Biden's residence? Are they talking about a run?

JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT: That's a good question. Of course. And they're not giving us any information about what they may be talking about. However, this is a trusted circle the Vice President is meeting with, including Anita Dunn, the former White House Communications Director Bob Bauer. The former White House council and the third person is Ted Kauffman, the former Delaware senator who is also a trusted adviser to Joe Biden, all of this information coming from CNN's Jeff Zeleny. We're talking about the run-up, the long investigation of the choices of the Vice President.


JOHNS (voice-over): Joe Biden arrived at the White House today with a lot on his mind. His weekly lunch with the President in the Oval Office taking on new meaning with speculation swirling about whether he will run.

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: Everybody is pretty interested to find out is what decision the Vice President is going to make. The President has indicated his view that the decision to add Joe Biden to the ticket as his running mate was the smartest decision he has ever made in politics.

JOHNS: A Democratic source in touch with Biden's associates tell CNN the vice president is now leaning more toward running for president than against it. The buzz about a possible Biden candidacy intensified after he traveled from Delaware to Washington this weekend for a secret meeting with influential liberal Senator Elizabeth Warren.

DONNA BRAZILE, CNN POLITICAL COMMENTATOR: She's the leading voice in our party for progressive issues and I'm not surprised that Joe Biden and others will seek her counsel.

JOHNS: So far, the Massachusetts senator has refused to endorse front runner Hillary Clinton, saying this last week.

SEN. ELIZABETH WARREN (D), MASSACHUSETTS: I don't think anybody is getting anointed. You know, what I want to see all of the presidential candidates lay out where they stand on key issues.

JOHNS: Biden associates see a possible opening because Clinton has been battling trust issues with voters over her email controversy.

REPORTER: Did you wipe the server?

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: What, like with a cloth or something?

JOHNS: The latest CNN/ORC poll shows 53 percent have an unfavorable opinion of Clinton while 44 percent view Biden that way.

Democratic candidate Bernie Sanders sees Clinton's numbers as helping him.

SEN. BERNIE SANDERS (D-VT), PRESIDENTIAL CANDIDATE: I think the evidence is pretty clear. We are gaining. What the polls seem to indicate is that Hillary Clinton support seems to be receding.

JOHNS: Biden still would face major hurdles if he got into the race this late, raising enough money and quickly starting up an organization. In the last few weeks, he has been talking to advisors and supporters about whether a run is realistic.

Biden has been told he needs to make a decision by October 1st. One plan would have him announce his intentions the first week of October.


JOHNS: And a little bit more about fund-raising. It has been one of Joe Biden's challenges in the past. CNN's John King and "The Washington Post" reporting that after Labor Day, the vice president will sit down with top Democratic fund-raisers to talk about things -- Jim.

JIM SCIUTTO, CNN ANCHOR: Joe Johns at the White House.

And OUTFRONT tonight, Steve Shale, he is an adviser to Draft Biden, a group encouraging the Vice President to run. He also worked in the Obama/Biden campaigns of 2008 and 2012.

Steve, thanks for joining us.

You heard the reporting at the end of Joe's report there. A source telling CNN if Biden runs, he plans to announce the first week of October. He is beginning to meet with fund-raisers. But we know that even as of July 1st, Hillary Clinton raised $45 million.

How does the vice president make up that deficit?

STEVE SCHALE, ADVISER, DRAFT BIDEN: Well, I think the first thing CBS reported that a fraction of the Obama bundlers are committed to Hillary Clinton at this point. So, it gives plenty of good fund- raisers out there that are uncommitted. I can tell you this anecdotally in the 48 or 72 hours I have been involved in the operation, that the number of folks that have expressed an interest in helping him has been staggering.

So, you know, I think in terms of putting to a campaign, particularly in the early states, there will be plenty of resources to do that based on the feedback I'm getting.

SCIUTTO: Polling from the key swing state of Florida shows Clinton losing to Donald Trump while Biden comes out on top in a head to head matchup, at least there. Clinton also having trouble as we know on trust issues, credibility in the wake of the e-mail scandal.

Are Democrats you speak to worried that the Democratic Party is in danger of losing the White House if Biden doesn't get in the race?

SCHALE: Well, I'm going to talk about Joe Biden. I think when you look at Florida, one of the places where Democrats have struggled are among white working class voters. If you look at Obama in 2012, a narrow win got 37 percent of vote among white working class voters compared to 42 percent four years earlier. Charlie Crist got 36 percent of the vote.

Joe Biden is nothing but sort of an authentic working class guy. I think he gives our party an ability to talk to voters we fully struggle with the last few selection cycles, in a way that could be really, you know, I think you are seeing in the polling numbers.

SCIUTTO: Let me ask you this -- Biden would be 74 years old if elected. That's older than Reagan was when he started his second term. If he entered the race, would the vice president pledge to serve just one term?

SCHALE: Well, I'm not going to get in front of that. I don't really know that. I can tell you that my 94-year-old grandmother in Illinois still drives to work and goes to work. So, I'm sure she would consider Joe Biden to be a pretty young spring chicken. So, you know him better than I do. He is the most energetic 74-year-old guy have been around anytime lately.

SCIUTTO: Steve Schale, thanks for joining us.

OUTFRONT tonight, we also have former senior adviser for President Obama, that's Dan Pfeiffer.

Dan, a Biden presidential run, you know, no matter what folks say, it puts people in the Obama administration in a tough spot. We heard the president's press secretary have a tough time, frankly, answering questions about it today.

[19:35:03] A White House staffer told "Politico", even if their minds are with Clinton, their heart is with the vice president.

How tough of a choice is this in terms of loyalty -- party loyalty, personal loyalty for the president and for former colleagues?

DAN PFEIFFER, CNN POLITICAL COMMENTATOR: It's very tough. People have grown over the course of the time in the White House, Secretary Clinton served at secretary of state, incredibly fond of her. Obviously, Joe Biden has been there at every step of the way with the president, tremendous loyalty, one of the best guys you will be around.

And these loyalties go back. A lot of the same people who were in the Obama White House or former Obama candidates also worked for Bill Clinton or maybe work for Hillary when she ran. So, this would be a family feud. A lot of people, you know everyone on both sides. You know both the candidates. And people will make judgments based on who they think is the best candidate, who will be the best president. But it's more about a decision for Joe Biden or for Hillary Clinton than a decision against Joe Biden or against Hillary Clinton.

SCIUTTO: We're aware Biden met with -- secretly with Elizabeth Warren. She's, of course, a liberal favorite. But so, of course, is Bernie Sanders. You would think that would be a natural support base for him than for Joe Biden.

Where does Joe Biden carve out a space of his own in this race? How does he differentiate himself both from a Sanders, but also from a Clinton?

PFEIFFER: I think that's going to be one of the big challenges that he and his team are going to have to figure out. Obviously, he is the most clear continuation of the Obama legacy and Obama agenda. He also has a long record of his own.

And what he is going to have do is make the case for why he is the better standard bearer for Democrats in the fall and why he -- what kind of president he would be. But figuring that out is challenging.

I think it's very smart to go talk to Elizabeth Warren. She's one of the power brokers in the Democratic Party with real influence who have not yet back a candidate. And so, go out here, take her temperature, see what she's thinking. He is having other meetings with important people. He is going through what I think is a rigorous and smart process to come to a decision about whether this is doable and whether it's the right thing to do.

SCIUTTO: Dan, you heard Steve Schale deflect on the age issue. But the fact is, age would be an issue. How big of an issue for Joe Biden potentially?

PFEIFFER: I think it's one he would have to take on. I think he -- if you spent any time around Joe Biden as Steve Schale mentioned, you get -- you notice how young -- how energetic and young at heart he is. He would -- you can't explain that away. You have to show that you have the energy to be president and take on those challenges. I think he can do that.

He is -- he runs full force at everything he does. He is full of energy. And so, he can do it. You will have to prove it over time. You can't give a speech saying -- explaining that away.

SCIUTTO: It's a presidency, and it's also that long exhausting campaign as well.

Dan Pfeiffer, thanks very much to be on again tonight.

PFEIFFER: Thank you.

SCIUTTO: And OUTFRONT next, how three young Americans on vacation became overnight heroes saving hundreds of train riders from a potentially deadly massacre.

And the candidate who talks toughest about immigration is the son and grandson of immigrants. Ahead, our special report on Donald Trump's immigrant ties.


[19:41:08] SCIUTTO: Breaking news: we know the identity of another American hero who helped stop what could have been a massacre on a Paris-bound train. Mark Moogalian, a French-American who is one of the first to try to wrestle an AK-47 from the attacker, shot in the neck and wounded as he did. His wife telling a European radio station that Moogalian became suspicious after the suspect went into the bathroom with a suitcase.

Today, the other three American heroes were awarded France's highest honor for risking their lives to avert disaster.

Martin Savidge is OUTFRONT.


MARTIN SAVIDGE, CNN CORRESPONDENT (voice-over): They were the right people in the right place at the right time. Three boyhood friends together on a long planned vacation today honored by France's president for preventing a possible massacre at a high speed train bound for Paris. It began at 5:13 Friday night. The train had just pulled out of Brussels. That's where French investigators say 25- year-old Ayoub el Khazzani got on packing an AK-47, a Luger pistol, a box cutter and nine magazines of ammunition.

Alek Skarlatos, a national guardsman, unwinding after a nine- month tour in Afghanistan heard something in the next car.

ALEK SKARLATOS, NATIONAL GUARDSMAN: The shot was probably the first noise I heard. Then that was followed by breaking glass.

SAVIDGE: Spencer Stone, an Air Force medical technician, sat next to Skarlatos.

SKARLATOS: I kind of just woke up from a middle of a deep sleep. I turned around and I saw he had what looked to be an AK-47. And he looked like it was jammed order wasn't working. He was trying to charge the weapon. Alek just hit me on the shoulder and said, let's go. SAVIDGE: Skarlatos wrestled away both guns, actions Stone says

that saved his life.

STONE: All three of us started punching him while he was in the middle of us. I was able to grab him again and choke him unconscious.

SAVIDGE: Stone paid the price with box cutter wounds to his head and neck. His left thumb almost cut off, later reattached by French surgeon.

Despite that, his first act after subduing the gunman was to stop the bleeding of a passenger who had been shot in the neck, likely saving his life. Their friend, Anthony Sadler, a Cal State University senior, quickly joined in, along with a British passenger, Chris Norman.

ANTHONY SADLER, CAL STATE UNIVERSITY SENIOR: That's our friend, so once we saw him go, we had to go join him.

SAVIDGE: It has the best of possible endings. No one was killed. There were few serious injuries.

Back home, Alek Skarlatos very relieved and very proud parents.

KAREN SKARLATOS, MOTHER OF ALEX SKARLATOS: We never doubted Alek had this in him. He is a big, buff, strong, brave guy.

SAVIDGE: Three brave and humble American heroes.

SADLER: I'm waiting to wake up. This is all just -- seems like a movie scene or something.


SAVIDGE: Skarlatos and stone are headed to another unexpected destination. Now, it looks like Germany where Stone will undergo further treatment for the injuries that he suffered.

As to the suspect in this case, it is expected that tomorrow he will possibly have a court appearance. Either way, charges are anticipated to be filed by French authorities. He is being held at the headquarters of French intelligence tonight -- Jim.

SCIUTTO: Such great and an inspiring story, too. Martin Savidge in Paris.

OUTFRONT, CNN terrorism analyst Paul Cruickshank with me here in New York.

So, we're learning about the suspected terrorist as well, particularly this time he spent in Turkey. What's important about that?

PAUL CRUICKSHANK, CNN TERRORISM ANALYST: Well, what we know is that he boarded a flight from Berlin to Istanbul in May of this year. European security agencies suspect he wanted to join with ISIS. What they're investigating is whether he may have linked up with a French ISIS cell present in Turkey which has been redirecting the extremists, trying to get into Syria, telling them, no, go back home and launch attacks.

[19:45:01] In fact, in April of this year in Paris, there was a plot thwarted against churches and other targets in Paris by an Algerian student who went to Turkey, connected with his French ISIS cell and online they were communicating about the possibility of launching attacks against passenger trains in Europe.

SCIUTTO: That's incredible. Instead of the war zone in Iraq and Syria, they say go to Europe and carry out terror.

One thing that's concerning here, we have seen this with other suspects in Europe, both Spain and France were aware of this suspect before. And yet, he makes it on the train. Was this a missed signal, a missed opportunity?

CRUICKSHANK: Well, as you were well aware, there's just so many extremists in Europe on the radar screen, thousands and thousands.

So, it's impossible to monitor them all, the resources to monitor a small fraction 24/7. So, even if you are on the radar screen, doesn't mean you can be prevented from carrying out a terrorist attack.

SCIUTTO: That's right. I remember the map. It's something like, if you have 100 suspects, you need thousands of agents to keep them under surveillance, right?

CRUICKSHANK: That's right. For just two or three guys under observation, you need up to 100 police involved in that one operation.

SCIUTTO: That's incredible. A tough game they have to play. Paul Cruickshank, thanks very much as always.

And OUTFRONT next, is Donald Trump's tough stance on immigration at odds with his personal history? Next, our report on Trump's immigrant roots ands his Czech and Slovenian wives.


[19:50:29] SCIUTTO: Tonight, Donald Trump facing new criticism from Jeb Bush on immigration. Bush calling Trump's plan costly and offensive.

But would Trump's wife and ex-wife, both immigrants themselves, agree?

Chris Frates is OUTFRONT.


DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: It's a big problem. It's a huge problem.

CHRIS FRATES, CNN CORRESPONDENT: For a guy as hard line on immigration as Donald Trump --

TRUMP: They're taking your jobs, and you better be careful.

FRATES: -- it's ironic the woman by his side on the campaign trail is an immigrant herself.

MELANIA KNAUSS-TRUMP, MODEL: To marry a man like Donald is -- you, you know, you need to know who you are. And you need to be very strong and smart.

FRATES: Trump's wife Melania was born in Slovenia and moved to New York in 1996 to model. She didn't become a citizen until 2005, a decade after arriving in the U.S.

TRUMP: She went through a long process to become a citizen. It was very tough.

FRATES: And, of course, Trump's first wife Ivana was an immigrant too, born in Czechoslovakia. She married an Austrian ski instructor to get a foreign passport to leave communist Czechoslovakia, her divorce attorney said.

Not long after she met Trump, and they were married in 1977. She became a U.S. citizen 11 years later.

And it's not just his wives, Trump has been surrounded by immigrants his entire life. Starting from the day he was born.

TRUMP: My mother was born in Scotland, in the Hebrides, in Stornoway, so that's serious Scotland.

FRATES: As a teenager in 1930, Mary MacLeod sailed for America from Glasgow on the SS Transylvania. She arrived in New York and married Fred Trump, himself a son of German immigrants.

TRUMP: My grandfather, Frederick Trump, came to the United States in 1885, he joined the great gold rush. And instead of gold, he decided to open up some hotels in Alaska.

FRATES: And though he says he supports legal immigration --

TRUMP: I want people to come into the country, but they have to come in legally.

FRATES: -- on the campaign trail, Trump seems to show little interest in the dreams of modern immigrants, calling for workers abroad to take a back seat to the unemployed here at home.

TRUMP: You have a border. You have a country. If you don't have a border, what are we just a -- just a -- nothing. A nothing.

FRATES: Trump hasn't been shy about celebrating his immigrant roots. He was the grand marshal of the German-American Steuben Parade, an annual tradition in New York City and later reminisced how far his family had come from its European heritage.

TRUMP: We passed Trump Tower, 69 stories, I looked up and said this is a long way from Kallstadt.

FRATES: Still, on the campaign trail, Trump is singing a very different immigrant song.

TRUMP: We are building a wall. It's going to be a wall that is not, nobody is going through my wall. Trump builds walls. I build walls.


SCIUTTO: So, Chris, Trump obviously not the only candidate with immigrant ties. Jeb Bush married to an immigrant as well.

FRATES: Well, that's exactly right, Jim. And Trump and Bush actually share common ground here. Bush's wife hails from Mexico. The two married in 1974. She became a citizen in 1988. That's the same year as Trump's first wife got her citizenship, that's Ivana.

But despite those similarities, we saw Trump take a shot at Bush earlier this summer on Twitter when he retweeted some one who said Bush, quote, "has to like Mexican illegals because of his wife." Trump later deleted that tweet.

Also, worth mentioning here, Jim, that both Marco Rubio and Ted Cruz often talk of the immigrant experience of their parents as well.

SCIUTTO: We all have immigrant stories don't we.

Thanks very much, Chris Frates in Washington.

And OUTFRONT next. Exciting news: a new addition to the OUTFRONT" family.


[19:59:00] SCIUTTO: Finally tonight, a special note from the OUTFRONT team. Well wishes and congratulations to our executive producer Susie Xu and her husband Dave. They welcomed an adorable baby boy into the world Friday. He is right there, Nolan Kai. He was originally due August 10th, which happens to be Susie's birthday. Nolan gave her much needed vacation, 11 extra days.

Susie, he is beautiful. Relish this time off. Put down the work phone. We'll hold down the fort. And, again, congratulations to your family.

Thanks to all of you for joining us tonight. We're going to see you tomorrow night. Donald Trump will be speaking live in our hour. We will take you there live.

"AC360" with Anderson Cooper starts right now.

JOHN BERMAN, CNN ANCHOR: Good evening, everyone. John Berman in for Anderson. Thanks for joining us.

Breaking news tonight. You will see it only here on CNN. Late word that Vice President Joe Biden has just received the biggest green light you can get for a presidential run.

CNN senior Washington correspondent Jeff Zeleny broke this story. He joins us now by phone.