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Wall Street Surges after Monday's Big Losses; Trump-Bush Immigration Fight Escalates; Suicides May Be Linked to Infidelity Site; Judge Drops Arrest Warrants before 2015 in Ferguson. Aired 10:30-11a ET

Aired August 25, 2015 - 10:30   ET

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

[10:29:48] POPPY HARLOW, CNN ANCHOR: 10:30 a.m. Eastern time. Good morning, everyone. I'm Poppy Harlow in this Tuesday for my friend Carol Costello. Thank you so much for being with me.

We start on Wall Street where one of the most stomach-churning trading days in years turned into a stunning turnaround this morning. The Dow surging after yesterday's panicked selling around the world. And just like yesterday, China once again at the center of the drama.

As I bring in Jim Awad, the managing director of Plimsoll Mark Capital, let's show you the big board on Wall Street and show you where stocks are trading right now. The Dow up 278 points.

So China made two big moves this morning. Chinese government steps in to say we're going to pump $23 billion into our economy. We're going to cut interest rates for the fifth time in just a matter of months.

Is that what's driving this market higher or was it, as one trader said this morning, foolish selling yesterday?

JIM AWAD, PLIMSOLL MARK CAPITAL: Yes, a combination of both. The futures were actually up before that announcement came. That announcement is necessary but not sufficient to change the situation in China. It could be interpreted actually negatively, that things are worse than they think but the markets in the short term like it.

Also yesterday you did have foolish selling on the open, And so what you're getting is a psychological bounce and what I would say is I wouldn't put too much into this bounce. It could reverse itself very quickly. We could recouple with China. We're decoupling now because they were down and we're up, but I would say is it's highly likely that -- not guaranteed, but highly likely that the low yesterday at the open will prevail and hold. And that if you buy quality stocks sort of at today's prices or yesterday's prices or in the next correction a year from today you should look fine, but that in the short term the volatility is not over. We're highly unsettled.

HARLOW: Right. And this advice to everyone at home. You can never time a market. Do not try to catch a falling knife, do not try to pick the bottom. What are you doing with your investors' money?

AWAD: Okay, on balance we're buyers. You've got to think long --

HARLOW: You're buyers in this market.

AWAD: Yes. You want to think long term and what I always tell people is have greed when others have fear and fear when others have greed.

HARLOW: As Warren Buffett says.

AWAD: Yes, exactly. So yesterday was a chance and during periods like this a stock like GE that opened yesterday at a 4 percent yield. JPMorgan that went down tremendously on the open.

HARLOW: Apple.

AWAD: Yes. Apple is also a fine company. Those kinds of companies if you buy them during periods of weakness in the current environment, you'll do fine. You may not make money in the next month, but you're likely to make money in the next year.

HARLOW: Right. Stick with blue chips. Don't try to play the emerging markets game.

AWAD: Yes. No, the emerging - U.S. is the best game in town and we have the best corporations and the big ones are attractively priced. I would not get back into the momentum stocks that were leading the market a couple years ago.

HARLOW: Yes.

AWAD: They're not as attractively priced as the big S&P quality companies.

HARLOW: All right. Jim -- nice to see you as always my friend. Thank you for coming in.

AWAD: My pleasure.

HARLOW: Good luck in this market today --

AWAD: Thank you. Thank you.

HARLOW: -- and going forward.

Coming up next, Jeb Bush has been one of Donald Trump's favorite targets on the campaign trail. You're looking at live pictures of him right there. He's holding a town hall with veterans in Englewood, Colorado. Now the former governor also fighting back, picking a fight with the billionaire candidate over -- well, we'll tell you about that next.

(COMMERCIAL BREAK)

[10:37:16] HARLOW: After a trip near the U.S./Mexico border yesterday, Jeb Bush is taking his message to the swing state of Colorado. Take a look at these live pictures out of Englewood, Colorado where Bush is set to hold a town hall. He's holding it right now with veterans.

He's expected to slam President Obama's policies on veterans, but the trip comes as Bush's war of words with Donald Trump on immigration escalates.

(BEGIN VIDEO CLIP)

JEB BUSH (R), PRESIDENTIAL CANDIDATE: Mr. Trump's plans are not grounded in conservative principles. The simple fact is that his proposal is unrealistic, it will cost hundreds of billions of dollars. It will violate people's civil liberties. It will create friction with our third largest trading partner that's not necessary, and I think he's wrong about this.

(END VIDEO CLIP)

HARLOW: Trump took issue with those comments from Bush. Listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Jeb Bush is a nice person. He doesn't have the energy or the capacity to make our country great again. That I can tell you 100 percent, and you do need the wall. The wall is very important.

(END VIDEO CLIP)

HARLOW: Joining me now to talk all about it, Republican strategist Cheri Jacobus and also Javier Palomarez, he's president and CEO of the U.S. Hispanic Chamber of Commerce. Thank you both for being here.

Cheri, let me begin with you. Is this Jeb Bush 2.0 and if so is this the right Jeb Bush to win the primary?

CHERI JACOBUS, REPUBLICAN STRATEGIST: Well, I think he's fine. I don't think he has to somehow be more energetic just because Donald Trump says he has to, but look, everybody is familiar with Jeb Bush. He has a solid record. I think he's doing the tortoise and the hare game and he'll be a solid, steady presence --

HARLOW: You haven't seen a change in him.

JACOBUS: Well look, nobody was getting a lot of press and a lot of attention in recent weeks because of Donald Trump. Donald Trump's comments about Jeb Bush however are ridiculous frankly. It's inappropriate to talk about another candidate that way and it doesn't really make a point.

Where I do think Mr. Trump has an issue -- I mean everything else he's talking about, about mass deportation and that sort of thing is ridiculous. But he is pushing for border security, and whether it's a wall, partial wall, a fence or whatever, I think that Jeb Bush is right to address that.

Every candidate who addresses border security, that's a good thing, but what none of them are really doing, a little bit Rubio a little bit Huckabee I think, is separating out border security from the other issues, from deportation or amnesty and everything in between.

For the past 20 years, Washington has been punting on that. We could have had border security, wall, fence, whatever it is for the past 20 years, but they've mixed it up with these other issues that's kind of held hostage --

HARLOW: That's interesting that you have to deal with --

JACOBUS: Well, once you secure the border, a lot of these other issues kind of go away. I'm, frankly, waiting for one of the candidates to be a little bit stronger on that point and that kind of takes care of the Trump problem, too.

[10:40:00] HARLOW: But the 11 million undocumented workers doesn't go away if you secure the border. That's one issue and that's getting a lot of attention.

Javier, to you, how do you think Jeb Bush is resonating now with Latino voters after those anchor baby comments and controversy because a new Gallup poll -- a new Gallup poll -- survey, rather -- shows that he has an 11 percent favorability rating among Hispanics, the highest in the field.

JAVIER PALOMAREZ, U.S.-HISPANIC CHAMBER OF COMMERCE: Well, first of all, Poppy, I think that his trip to McAllen, Texas, was well-timed and well-received. By the way, McAllen is my hometown. It's a community that's about 94 percent Hispanic. They certainly understand the real challenges of dealing with a broken immigration system.

I think that Governor Bush has approached this issue the way we want an American president to approach it. It's well-thought out. It's feasible. It's fiscally responsible. He's illustrating some compassionate conservatism that I think the American people and ultimately our Congress may be able to get behind.

Compare that to Donald Trump's approach. You know, I couldn't agree more with Cheri. This mass deportation of some 12 million people living in this country today only to turn around and bring them back, you know, doesn't make any sense. It would cost somewhere around $300 billion and the American taxpayer would be stuck with that bill.

And at the same time industries like the construction industry, the agriculture industry, the hospitality industry would be decimated if that plan ever was allowed to happen.

HARLOW: I want you both to respond to something. I read in the "New York Times" this morning and it really struck me. Let's pull it up. "The change in Mr. Bush's tone is a calculated strategy, interviews show, with two different but crucial aims now that Mr. Trump is proving to be a long-term obstacle, not a passing nuance." A long-term obstacle, not a passing nuisance, not nuance, excuse me. Nuisance. So, I mean Cheri, to you first, what do you think? That's why I'm saying is this Bush 2.0?

JACOBUS: Well, he's taking on Trump. He's basically saying look, if this is a serious candidate, and the polls are saying that he is, he needs to be held to account the same as any other candidate. So he is, rather than just letting this die out -- this Trump phenomenon -- whatever you want to call it, he's taking it on. So that is a little bit feistier, that is a different plan, and it's probably the right plan that they all should do.

HARLOW: So you think this is the Jeb Bush that voters want to see?

JACOBUS: I think so. And I think that a lot of it, too, is just becoming accustomed to the different candidates and the different personalities. If his authentic self is measured and more thoughtful, I don't think that he should turn it on too much and try and out-Trump Trump.

HARLOW: Right. You have to be yourself.

JACOBUS: Nobody should want to do that. And the polls show too that with electability, when you look at how he's doing with Hispanic voters, you know, responsible Republican primary voters are going to start taking that into account as well.

HARLOW: Javier, what about you. Your thoughts on that, whether he's a long-term obstacle now, not just a passing nuisance?

PALOMAREZ: Well, I think he has become an obstacle and the reality of it is sadly that Donald Trump may cost the Republican Party this election. The Hispanic vote is crucially important and growing every day. As I have said in this program before, you know, every month 60,000 Hispanics turn 18 and become eligible voters --

HARLOW: Right.

PALOMAREZ: -- and that's going to be the case for the next 21 years in a row. So if you aspire to be the President of the United States, you'd do well to engage the Hispanic vote, not turn it away. And what's happening, unfortunately, is that good men like Governor Bush, like Marco Rubio, like Scott Walker, are being drowned out by the drama of a Donald Trump, and ultimately I think it will be the Republican Party that ends up paying for this.

HARLOW: We'll see.

JACOBUS: I disagree. The polls show that's not --

HARLOW: We have to leave it there, guys. I have to get a commercial break in. I'm sorry -- we'll have you back. Javier Cheri -- thank you both very much.

PALOMAREZ: Thank you -- Poppy.

HARLOW: We have to get a quick break in. Still to come, an incredibly disturbing story: the Ashley Madison

hack embarrassing for millions of people, but could that shame be driving some to commit suicide? Our story with Laurie Segall next.

(COMMERCIAL BREAK)

[10:48:38] HARLOW: Disturbing new developments following the exposure of customers on the infidelity website Ashley Madison. Toronto police now investigating two possible suicides connected to the website. There has been one suicide in the United States that could be linked as well.

With 32 million names now compromised, this could be the beginning of just absolute tragedy. CNN Money tech correspondent Laurie Segall looking at this. I remember when this broke, I sort of couldn't believe it, but you know, these people -- what do we know?

LAURIE SEGALL, CNN MONEY TECH CORRESPONDENT: Yes. I mean I guess what we're learning is this is not a victimless crime. You also have the families of these folks who have committed suicide.

HARLOW: Sure.

SEGALL: We looked into one of them here in the United States, a San Antonio police captain. We did see that his information was on Ashley Madison although it appeared he had never really utilized this account. And then we do know that a couple of days later he committed suicide. That's confirmed.

You have the Toronto police coming out saying they're investigating these links. And we're also seeing that this is just kind of the beginning. We thought there's going to be a lot of backlash with 32 million user names exposed, so this is part of this tragic ending to this data leak -- Poppy.

HARLOW: So exposure is one thing -- right. People that go on websites and look, is there a name on there or their spouse's name but there's been blackmail.

SEGALL: Yes, we're also seeing extortion -- right. We actually obtained a copy of a letter that hackers were trying to send out and they succeeded in sending out, many of them. They were trying to send out to people on the list.

[10:50:02] And what this letter said was if you don't pay me $200, the equivalent of one bitcoin which a digital currency, I'm going to go to your significant other and I'm going to tell them that you're on this site. You have seven days to do this. If not I'm going to go ahead and tell your significant other. So we thought that this was going to happen and we now officially have seen that this is happening.

HARLOW: Especially, and you point out not a victimless crime at all, I mean even for people who haven't committed suicide, that's just hard to believe. The families just finding this stuff out, right, even if their spouse did something incredibly wrong. Think about children involved.

What kind of punishment for the hackers could there be if they find them?

SEGALL: They could certainly face jail time. We have multiple lawsuits also being filed, you know, as seeking hundreds and millions of dollars in damages, and you also have the Toronto police coming out and saying we'll offer $400,000 to anyone who has any information to help put these folks behind bars.

So you can see they say the investigation is moving and what they said in a quote, unquote, "positive direction" but they still need a lot of help.

HARLOW: Absolutely Laurie -- thank you. As always -- I appreciate it.

New information just into us here at CNN that I want to tell you about regarding that thwarted French train attack over the weekend. The terror suspect, Ayoub el Khazzani looked at a jihadist website on his mobile phone shortly before boarding that train on Friday. That's according to the AFP, that media outlet citing a source in the investigation. He reportedly watched the video between the time he bought the ticket and boarded the train.

This report comes as we have learned that police in Belgium have raided two apartments near Brussels. One of the apartments belongs to the suspect's sister, the other belongs to his friend. Belgium prosecutors say el Khazzani could have lived in both of those apartments. We'll bring you more on that as soon as we have it.

Still to come here in the NEWSROOM, a major overhaul in Ferguson, Missouri -- a move being called a big win for protesters this morning. We'll tell what you it is next.

(COMMERCIAL BREAK)

[10:56:14] More than a year now after the death of Michael Brown, sweeping changes are overhauling Ferguson, Missouri's court system. A judge announcing he is withdrawing all arrest warrants for minor violations, including traffic stops that were issued before 2015. The overhaul is the latest fallout from a DOJ report that found the Ferguson Police Department and the city's municipal court overwhelmingly engaged in discrimination against African-American residents. One activist called the move quote, "an olive branch to protesters".

Sara Sidner is following the story for us this morning. Good morning, Sara.

SARA SIDNER, CNN CORRESPONDENT: Good morning -- Poppy.

You know, the move is being called significant even by those who have been deeply critical of Ferguson's courts and police department. The city is taking concrete steps to prevent people from being jailed because they simply can't afford to pay fines and on top of those fines the court was imposing fees. So putting people deeper and deeper into debt they simply couldn't get out of and then going to jail because of it.

Let me give you a quick look at what Ferguson municipal court judge has ordered now. It's a withdrawal of not just the arrest warrant for things like fines but all arrest warrants issued before December 31st, 2014. Those ticketed for minor traffic violations will no longer be arrested but given another court date and if they can't pay outright, they can face alternative penalties like payment plans or community service or if they are deemed indigent, their fees could be wiped out altogether.

Now, while the warrants are wiped clean, that does not mean the cases go away. The cases stay put. They have to still work those out in court but people will still have to face the courts to resolve those.

But let's remember what prompted all this, Poppy. Sustained protest over a year that exploded after the killing of Michael Brown, and though the officer involved in the shooting was deemed justified by a grand jury, a Department of Justice investigation revealed that Ferguson was arresting and searching black residents for more -- far more than white folks and policing for profit.

For example, in 88 percent of the cases where Ferguson police reported using force, it was against African-Americans. And between 2012 and 2014, it found that African-American drivers were twice as likely to be searched during traffic stops.

The DOJ ultimately found that Ferguson's patterns and practices showed serious racial discrimination. People found themselves getting warrants or going to jail over minor traffic violations because they simply couldn't afford to pay the fines or they didn't show up to court worried that they would be arrested. This new order is trying to change all that.

Although there's some folks that are looking at this and saying, hey, if the arrests were not good in the first place, then why shouldn't all these cases just be thrown out altogether and start from zero? That would help the community really see that the courts are making a major change -- Poppy.

HARLOW: Yes, wow. "CNN MONEY" and "AC 360" did this in-depth investigation on all this and now a significant change.

Sara Sidner -- thank you as always.

All right. I do want to bring you an update on a story that we brought you last hour about a group of African-American women who were kicked off of a wine train in Napa Valley, California for being too loud. Well, they called the incident humiliating. They say it was racism.

We just got a statement from the company, the Napa Valley Wine Train. The CEO reached out to this woman's group, this book club, and said, quote, "I learned a great deal from my conversation with Lisa Johnson of the Sistahs on the Reading Edge Book Club" -- that's what the book club is called. "Most of all I learned that the Napa Valley Wine Train was 100 percent in the wrong. He said the wine train was quote, "accurately insensitive to the members of the book club." Also apologizing, "Please accept my apologies for our mistake and our failures."

[11:00:00] That will do it for me today. Thank you so much for joining me.

I'm Poppy Harlow in for Carol Costello. She's back tomorrow.

"AT THIS HOUR" with Berman and Bolduan starts now.

KATE BOLDUAN, CNN HOST: Another wild ride on Wall Street --