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Trump to Deliver Policy Speech, Changes on Muslim Ban; U.K. Can't Cherry-Pick Privileges in E.U; Clinton Problems on Honesty, Untrustworthiness. Aired 11:30-12p ET

Aired June 28, 2016 - 11:30   ET

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

[11:30:00] JASON OSBORNE, TRUMP SUPPORTER & BEN CARSON CAMPAIGN WORKER: No, I wouldn't say it's a policy. I think you have to look at the broader complex -- you have to look at what he has been saying all along, which is there's been a deep concern among Americans that state-sponsored terrorism should be restricted -- those people coming from countries where there is state-sponsored terrorism should be restricted coming in. I also think there's a misconception or misunderstanding of how the visa program works. We already have --

(CROSSTALK)

KATE BOLDUAN, CNN ANCHOR: Wait, Jason. The first original thing he said was, "Donald J. Trump is calling for a total and complete shutdown of Muslims entering the country until the representatives can figure out what the hell is going on." That was the original statement. How can you say there's not a change?

OSBORNE: Even there what you just said, everybody continues to say that this is a permanent ban or this is a ban.

BOLDUAN: I never said permanent ban.

(CROSSTALK)

BOLDUAN: No, I literally am quoting what he said on TV.

OSBORNE: I understand that. What everyone keeps saying is not a contemporary ban. Congresswoman Blackburn said, we need to take a look at the visa program and figure out how are these people getting in from countries where we don't have the ability to actually do the background checks on them and make sure that they are not coming in as a threat to the United States.

What Donald Trump and the campaign are doing right now is they are actually getting into the weeds and saying, this is how the program and this is what we're talking about in that context. When we are on a campaign at a rally and you start talking about different things that you're going to do when you become president, you aren't able to get into the weeds and start talking about the specifics of each plan. Now, Donald Trump is not talk like your average politician. So many times what he's saying obviously is misconstrued. I don't necessarily think this is a change in position. I think this is actually a fine- tuning and understanding of exactly how the program works. BOLDUAN: I actually don't think it's bad if a politician says I've

evolved on an issue. We have politicians that evolve all the time. I'm more surprised they don't say this is what Republicans wanted. Republicans like Paul Ryan wanted to see him change evolve on this issue. This is what Republicans have been asking for. This is one of the big problems they have with him. A Donald Trump is showing signs of moving toward the center, a Donald Trump is showing signs of pivoting, isn't that a Donald Trump harder to beat for Hillary Clinton?

MO ELLEITHEE, DIRECTOR, GEORGETOWN INSTITUTE ON POLITICS & PUBLIC SERVICE: If there was any sense that was genuine and consistent, my colleagues would be taken seriously. When he's on, he can be a very strong candidate. 17 Republicans realize that in the primary.

BOLDUAN: Right.

ELLEITHEE: But what we've got here is a really interesting situation.

And, Jason, I'll throw you a bone. Yes, we are talking about temporary ban he outlined from the beginning.

But there was not a lot of nuance there. It was pretty clear what he was talking about. And now his own campaign and his surrogates are saying, no, he's staying true to what he has always said.

One of two things is happening here, either Donald Trump is about to try to moderate his position, which will make him a liar to the people who voted for him in the primaries, or Donald Trump is going to stick with the temporary ban that he outlined in the primaries, which is completely unpalatable to a majority of voters. It's a very difficult position he's in. And I'm not sure what his way out of it is.

BOLDUAN: Ana, which one would you prefer?

NAVARRO: Look, I think Donald Trump should tell us what he exactly believes. And I think we need to vote based on that, on what the consistent beliefs are. I think what is happening is that he's hearing now that this campaign has shifted into a new mode where they are trying to do things like fund-raise, get endorsements, he's hearing from other Republicans this is not a tenable position and he's trying to make it more of a nuance position. It takes a lot of talent to walk that tight-rope. What we saw yesterday is very little acrobats from the Trump campaign. They did it clumsy. Get one shot at making a first impression. Yesterday, they blew it on this.

BOLDUAN: Guys, we have a lot more to talk about as the hours tick by and we wait to hear from Donald Trump on the campaign. We'll see.

Thank you all very much.

Trust issues, that's ahead. Hillary Clinton admits she's made a mistake and has trust problems. She says she has work to do to earn voters' trust. But she also blames 25 years worth of wild accusations. How do you earn the trust back?

[11:35:44] Also ahead, Europe deals with the chaos and turmoil from the Brexit vote. President Obama warns against hysteria.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: There's been a little bit of hysteria post-Brexit vote as if somehow NATO is gone, the trans-Atlantic alliances is dissolving, and every country is rushing off to its own corner. And that is not what's happening.

(END VIDEO CLIP)

BOLDUAN: President Obama in an interview warning against hysteria following last week's Brexit vote. Investors' fears at least seem to be leveling off after a two-day loss of 900 points.

Across the pond, a contentious divorce is getting awkward. Outgoing U.K. Prime Minister David Cameron is meeting with E.U. leaders right now for the first time since the Brexit vote trying to sort out what happens now, the final details of how to move forward.

Meanwhile, the German and Italian leaders both with this tough message for the U.K., you can't cherry-pick the privileges of being in the E.U. Listen.

(BEGIN VIDEO CLIP)

[11:40:13] MATTEO RENZI, ITALIAN PRIME MINISTER: In my view, it's impossible to only go with what good things and not with the bad things.

(END VIDEO CLIP)

BOLDUAN: The host of CNN International's "Quest Means Business," Richard Quest, is live in Brussels.

My dear friend, is there any more clarity you're hearing as leaders meet on what to do forward as they move on from here?

RICHARD QUEST, CNN INTERNATIONAL CORRESPONDENT & CNN HOST, QUEST MEANS BUSINESS: No, in a short word. The British are determined they are not going to invoke article 50 firing the starting gun of negotiations until the new prime that won't be until September. And the other 27 countries are determined that they won't do a sort of divide and rule having formal negotiations, having discussions until that happens.

So what is going to happen here is nice to see you, to see you nice. We know you had a referendum. We know what the result is. Now come back and tell us when you're ready to start negotiations. And the Brits will say we will come back when we've got a better idea of what everybody's negotiation position is. And in some ways, in some ways this is not a bad strategy. Because tempers are so heated and people are so miffed, there's such a level of resentment and anger that if there was a couple of weeks, a couple of months to allow that diplomatic balancing to begin, there's a much better chance of a reasonable result all around. BOLDUAN: But again, we talked about this yesterday, there's still no

chance that the U.K. is going to go back on this, unweave their leave, right?

QUEST: There are people here who are starting to say that maybe, possibly, perhaps, maybe in the fullness of time with another deal being done. Look, there are two distinct groups here led by the French and the president of the commission that frankly would have Britain out yesterday.

And there are those, like the prime minister of Malta, who basically saying, let's get real about this, we do not expect Britain to leave. And we read in some of the newspapers today basically saying he thinks Brexit is going to happen. So yes, there's still an argument that says a classic Euro fudge is going to be found. It wouldn't be the first time. This institution is a master of managing to fudge facts that seem impossible two weeks ago into something that seems possible today and likely tomorrow.

BOLDUAN: Time heals all. I don't know if it's going to apply in this situation. We shall see.

Thank you, Richard.

(LAUGHTER)

All right. Coming up for us -- I love Richard Quest. Hillary Clinton, she's got trust issues. The polls show Hillary Clinton trails Trump when it comes to which candidate is most honest and trustworthy. Now Clinton is explaining why. That's ahead.

We'll be right back.

(COMMERCIAL BREAK)

[11:47:33] BOLDUAN: Hillary Clinton says Donald Trump is right about at least one thing. Maybe, she will say, one thing and one thing only. People have trust issues with her. Listen to her, Hillary Clinton.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, (D), PRESIDENTIAL CANDIDATE & FORMER SECRETARY OF STATE: A lot of people tell pollsters they don't trust me. Now I don't like hearing that. And I've thought a lot about what's behind it. And, you know, you hear 25 years' worth of wild accusations, anyone would start to wonder. And it certainly is true I've made mistakes.

And you can't just talk someone into trusting you. You've got to earn it.

(END VIDEO CLIP)

BOLDUAN: That's a fascinating moment on the campaign trail. And this is the kind of poll that Hillary Clinton is talking about.

The most recent CNN poll finding that barely a third of voters trust her and find that Trump is winning in the honesty game.

Let's bring back Mo Elleithee, the man who managed Secretary Clinton's 2008 campaign; and Donald Trump's former campaign adviser, Michael Caputo.

Great to see you guys.

Normally, when you acknowledge you have a problem, the first step is to fixing it. Does that apply in politics? Hillary Clinton acknowledges where her problem is. Do you think that's a first step in fixing it? Is that a first move?

ELLEITHEE; I didn't manage her campaign, but I was a spokesperson. You deal with that a lot.

BOLDUAN: You managed a lot.

ELLEITHEE: We dealt with this a lot. I mean, it's actually kind of refreshing to hear a candidate actually acknowledge one of their weaknesses. And decide to take it head-on as opposed to say, no, no, plenty of people trust me. You are an idiot for not, right? At least she's acknowledging what everyone sees. And that is she got a real disconnect with some voters on this issue.

Now, I think this ultimate election is going to come down in many ways to an issue of trust, right? Because people right now believe that this is not a left versus a right election, in any way, shape or form. This is an election where people say, are you going to lookout for me? Do you have my back? Are you going to wake up and fight for me or fight for the big interests? If they don't trust you --

(CROSSTALK)

BOLDUAN: That's funny. I was going to take the opposite, Michael. If you look, Donald Trump's numbers aren't good either on this. Neither of them have really good numbers on this, especially when you know they are the most unpopular candidates we have seen in presidential election history. My question was going to be, do you think the whole trustworthy question important traditionally think that is kind of thrown out the window because they are both seen so negative?

[11:50:03] MICHAEL CAPUTO, FORMER DONALD TRUMP CAMPAIGN ADVISOR: You can tell from the polls they don't trust Hillary Clinton and Donald Trump at this point. But I don't know what step it is the one key thing is, you have to stay off the sauce. She has to stop lying. She has to stop standing there on the lies she has already told, the lies she told to the families after Benghazi, when she told them it was about a video, we are going to get this video producer. She still pretends that was the truth. If she is going to try to stop lying now, maybe she can get to the point where people trust her. If she is in its 12-step program, she has to stay off the sauce.

BOLDUAN: Can you earn it back in the middle of a very negative, heated election battle?

ELLEITHEE: Look, I think elections are always very personal vote. Who to vote for, it is a very personal thing. You can't rationalize with a voter. You need to find a way to connect with that. I believe that's what her campaign is trying to have her do and what Donald Trump was able to do with Republican primary voters during the primaries. There was a moment she had. They turned this into an ad in the primary. It was very, very powerful.

They filmed her at a town hall speaking to a group of people in Nevada about immigration. A young girl said, I am worried about my parents being taken away. She showed real empathy and concern for what this little girl was worried about. She said, you don't worry about that, go be the best little kid you can be, let me worry about that for you. That was one of the best moments of the primary campaign for her. It showed why people should trust her and what she is trying to accomplish on their behalf. She is going to need a lot more moments like that during this campaign.

BOLDUAN: What is unique about this moment, an honest moment, we were talking about it when Hillary Clinton said she had a trust program, she was acknowledging a fault. I don't know if we have yet heard Donald Trump acknowledge, this is where I'm lacking and this is where I want to work on. Do you think we will hear something like that from Donald Trump? Do you want to hear that from Donald Trump?

CAPUTO: I don't think I want to hear that from Donald Trump right now. It shows a huge problem where Hillary Clinton is having where she shows she must do this. That's a very strong Clinton campaign. For them to stop, take a look at something and have a speech like this given means that there is real trouble here. I don't think Donald Trump faces those troubles. The polls bear that out. I think, however, if Donald Trump gets into a situation where he faces that kind of negativity, I don't put it beyond him to make that kind of speech.

ELLEITHEE: I think Trump could use a little bit of humility now. We see that in his numbers continue to soften. He gets weaker with every single poll that comes out. 70 percent of the American public view him unfavorably. He is going to have to figure out -- it is incredibly hard to win an election when 70 percent of the electorate doesn't like you.

(CROSSTALK)

BOLDUAN: Stop, assess and shift. That in presidential politics? Who knew?

CAPUTO: Shocking. Now, Trump is going to get the campaign he deserves. These numbers are going to change.

BOLDUAN: We'll see. We'll see.

Thank you so much.

(LAUGHTER) Soon, we're going to hear from Donald Trump, who is set to deliver what the campaign is touting as the most detailed economic address he has given about so far. We are going to bring that to you live when it happens.

Plus, new trouble for the Summer Olympics. The best golfer in the world announcing he will not be going to Rio amid Zika fears, as the governor of Rio warns the games could be in big trouble. Why? What else could happen? That's ahead.

(COMMERCIAL BREAK)

[11:53:18] BOLDUAN: New trouble in paradise. Six weeks before of the Olympics, the best golfer in the world says he is not going to go to the Olympics. Australian Jason Day pulled out over Zika fears. Meanwhile, a dire warning coming from Rio's governor. He says the fames could be a, quote, "big failure."

Nick Paton Walsh is following the latest developments from Rio.

Nick, what's going on?

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: It's hard to keep track really. Yeah, we just heard from federal official that is they hope maybe which has been so direly need by the state of Rio, they are potentially $5 billion in debt, needing $1 billion. Federal officials saying they might be able to live without it by Thursday.

But that's in response to an estimate from the acting governor, saying, quote, "If some steps are not taken, then the games can be a big failure." A stark warning. A lot of brinkmanship between this state and the federal government who has to make sure the Olympics themselves are a grave success. It is that sense of uncertainty that begins to build. Calamity after calamity here. Those finances, so badly needed to make sure there's police on the streets and hospitals functioning to welcome those half million visitors many hope will be here.

BOLDUAN: Over and over, one thing after another.

Nick, thank you so much. I appreciate it. Great to see you.

Busy hour for us.

Thanks so much for joining us AT THIS HOUR.

"Legal View" with Ashleigh Banfield starts right now.

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