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Trump Team Moves Ahead to "Drain the Swamp"; Trump Team to Hold Daily Press Briefings; Obama Meets with German Chancellor; Trump Brands Could Pose Conflict of Interest; Fed Reserve's Yellen to Testify on Capitol Hill. Aired 9-9:30a ET

Aired November 17, 2016 - 09:00   ET

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


[09:00:00] CAROL COSTELLO, CNN ANCHOR: And good morning, I'm Carol Costello. Thank you so much for joining me.

A surprise from the Trump transition team. Next hour, it will launch a daily briefing for the news media, days after Mr. Trump ditched the press pool and angrily tweeted about stories in "The New York Times." We're now told that reporters will be allowed to ask questions.

But, right now, we're watching the gold elevators at Trump Towers, waiting with a parade of experts and job candidates to file in. Expected today, South Carolina Governor Nikki Haley, a Trump critic in the past who's now reportedly being considered for Secretary of State.

All this after Hillary Clinton delivers her first emotional speech since losing to Trump in that stunning upset.

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), FORMER PRESIDENTIAL CANDIDATE: I know this isn't easy. I know that over the past week a lot of people have asked themselves whether America is the country we thought it was. The divisions laid bare by this election run deep. But please listen to me when I say this, America is worth it.

(END VIDEO CLIP)

COSTELLO: We have a lot to cover this morning as usual. So let's begin at Trump Tower with CNN's Sunlen Serfaty. Good morning.

SUNLEN SERFATY, CNN NATIONAL CORRESPONDENT: Good morning, too, Carol. The Trump team really seemed very adamant about trying to rein in and reclaim the narrative around their transition right now, not only about the infighting but that the transition team that they formed originally was stacked with D.C. insiders and lobbyists.

So today, they are making this first big move, this announcement of a lobbying ban, really trying to get back to the core elements of Donald Trump's campaign, the one that really catapulted his candidacy, that he is going to clean up Washington.

(BEGIN VIDEOTAPE)

SERFATY (voice-over): President-elect Donald Trump's transition team now moving to uphold this campaign promise.

DONALD TRUMP, PRESIDENT-ELECT OF THE UNITED STATES: We are going to drain the swamp.

SERFATY (voice-over): Unveiling a new lobbying ban requiring anyone under consideration for a job in the Trump administration to sign a written pledge to terminate their lobbying. And when they leave office, they will be banned from being a lobbyist for five years.

JASON MILLER, COMMUNICATIONS DIRECTOR OF PRESIDENT-ELECT DONALD TRUMP'S TRANSITION TEAM: When we talked about draining the swamp, this is one of the first steps.

SERFATY (voice-over): But as they make headway on some aspects of the transition, other parts are still slow moving. Trump's team has not yet contacted the Pentagon, State Department, or other federal agencies to inform them about the transition, with major Washington agencies saying, they're still left in the dark.

But Trump's team says they're moving forward on this today, readying to announce their so-called landing teams made up of transition staff that will deploy and interact with the Department of Justice, State Defense, and National Security, with other agencies to follow.

SEAN SPICER, CHIEF STRATEGIST AND COMMUNICATIONS DIRECTOR, REPUBLICAN NATIONAL COMMITTEE: I think we've made tremendous progress in giving the President-elect some ideas about how to move forward with his core team and potential members of his cabinet.

SERFATY (voice-over): Today, in Trump Tower, a flurry of meetings lined up for the President-elect, including South Carolina Governor Nikki Haley, a former Trump detractor --

GOV. NIKKI HALEY (R), SOUTH CAROLINA: That's not who we want as President.

SERFATY (voice-over): -- now under consideration for Secretary of State.

Meantime, new reports suggest that Jared Kushner, Ivanka Trump's husband, could likely up with top national security clearance and become a key adviser to Trump. Trump's team rejecting concerns over nepotism and the potential conflict of interest.

SPICER: Jared has, obviously, been a very important part of this campaign, and he's someone that the President-elect trusts very much. What that role is, just like anyone else, is going to be up to the President-elect.

SERFATY (voice-over): The transition team continuing to dispute reports of internal disarray and infighting.

KELLYANNE CONWAY, CAMPAIGN MANAGER FOR DONALD TRUMP: It's false to say it's not going well.

SERFATY (voice-over): This as the head of the transition, Vice President-elect Mike Pence sat down with Joe Biden, Wednesday. Biden promising his successor that he'll be available 24/7 for advice.

JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES: No administration is ready on Day One. We weren't ready on Day One. But I'm confident, on Day One, everything will be in good hands.

(END VIDEOTAPE)

SERFATY: And Donald Trump will be meeting later today here at Trump Tower with Japanese Prime Minister Abe. This is notable because this is his first face-to-face in person meeting with a world leader since becoming President-elect.

And already, according to reports and accounts from the Japanese officials, it seems that they have been greeted with a little disorganization, Carol, in advance of today's meeting. They have been having trouble reaching out and connecting to a lot of the transition officials to go over talking points and briefing notes in advance of the meeting. Carol.

COSTELLO: All right. Sunlen Serfaty reporting live from the Trump Tower here in New York City. Thank you. So let's talk about all of this.

With me now, Rebecca Berg, national political reporter for Real Clear Politics and CNN political analyst. And Paul Singer is a Washington correspondent for "USA Today." Welcome to both of you.

PAUL SINGER, WASHINGTON CORRESPONDENT, USA TODAY: Thank you.

REBECCA BERG, NATIONAL POLITICAL REPORTER, REALCLEARPOLITICS.COM: Thanks, Carol.

COSTELLO: Nice to have you here. So, Paul, the Trump transition team said they would implement a daily briefing beginning today in an effort to be more transparent after Trump's angry tweets about the press yesterday. What do you make of that?

[09:05:04] SINGER: Well, you know, it's a really interesting challenge for Mr. Trump, particularly.

Here was a candidate who was very dismissive of the press, who treated the press with disdain, and yet, of course, has always loved the press and loved being, you know, on the front page of the newspaper. Well, now, he's going to be on the front page of the newspaper every day. They apparently have decided it would make sense to try and grab that narrative and drive that narrative in a fairly traditional way, which is hold a briefing every day and tell the press what you're working on.

I think that's a good development for relationships between the press and Trump. And frankly, I think it's good for the Trump transition to, again, be able to tell their story every day in public without having the sort of back room whispering. I think it's better for them.

COSTELLO: Yes. And l think that, you know, as much as many people hate the media, you know, if you actually talk to the media, you can somewhat control the message.

SINGER: Yes, and you certainly get your side of the story out.

COSTELLO: Absolutely. So, Rebecca, on the other hand, the conservative radio talk show host Laura Ingraham, she's up for Press Secretary. And the Press Secretary is the liaison between the President and the press. This is what she said on the "Today Show" this morning.

(BEGIN VIDEO CLIP)

LAURA INGRAHAM, HOST, THE LAURA INGRAHAM SHOW: One thing that is going to be important, I would imagine, for the Trump folks, is to have a very, you know, transparent and, you know, practical approach to the press. I think the press has a lot of work to do to build back its own credibility. And I think, for Donald Trump, I think he wants someone who knows the issues, who's going to try to explain them to the American people, and --

MATT LAUER, HOST, NBC NEWS: Right.

INGRAHAM: -- and keep people updated. I don't think it's all that complicated.

(END VIDEO CLIP)

COSTELLO: Rebecca, thoughts?

BERG: Well, it's actually refreshing to hear Laura Ingraham talking about the need for transparency, the need for an open line of communication between the White House and the press. These are all positive developments. And so if she were to be Press Secretary, and certainly she does have government experience, she has media experience, she would be a logical pick for that post. That's the kind of thing we, in the press, are encouraged to hear.

You don't want a Press Secretary who's going to be really sort of adversarial, too adversarial, when it comes to the press. You want to be able to have a good, professional working relationship where you can have an exchange of ideas and, of course, an exchange of information. And it sounds like this is what she's thinking of, what, by extension, the Trump team would be thinking of. So this is all very positive.

COSTELLO: OK. So one of the things that reporters are likely to ask about in the daily press briefing that's supposed to take place in about an hour and a half will be Nikki Haley because, now, the South Carolina Governor is being considered for Secretary of State. She was a Trump critic, you know, back in the day during the primary, when she criticized Mr. Trump for not disavowing the KKK. But now, she says she's absolutely giddy about his presidency. Let's listen.

(BEGIN VIDEO CLIP)

HALEY: I will not stop until we fight a man that chooses not to disavow the KKK. That is not a part of our Party. That's not who we want as President. We will not allow that in our country.

Get excited because I am just giddy. And if you talk to any of the governors here, we are so excited at the possibilities and the opportunities that are going to be here. So the idea that we can now start to really govern, I've never known what it's like to have a Republican President.

(END VIDEO CLIP)

COSTELLO: OK. So Mr. Trump, during the primary, was concerned that Nikki Haley was weak on immigration. So what does his consideration for her as Secretary of State signify, Paul?

SINGER: Look, you know, winning is a great disinfectant. It removes all kinds of prior stains. It cleans up all kinds of former disputes. Every Republican in the country now faces the situation where they have the opportunity to participate in the first Republican presidency in eight years, in a unified government with a Republican Senate and Republican House of Representatives, and they can do some stuff. They can really achieve some stuff that they believe in. It's exactly the thing that makes the Democrats worried.

So for someone like Nikki Haley who has a great resume and a great profile for the Republicans -- she is Indian-American and a woman and sort of the perfect kind of person they want to promote as the Party expands its diversity -- it seems like the perfect opportunity for her to, at least, have a conversation with Mr. Trump about where do we agree and where can I play a role in all of this?

You certainly would be taking a risk if you just said, I want nothing to do with those people. I'm going to assume the Trump people are going to be gone in four years, and I'm going to hide under my desk and wait for that period.

COSTELLO: Yes. A lot of people find that Nikki Haley being in consideration for a post to be encouraging.

On the other hand, Jared Kushner, who is Donald Trump's son-in-law, there's been a lot of controversy surrounding his possible role in what. It's unclear in what role he would serve in because, on one hand, you hear that he's a very trusted adviser of Mr. Trump. On the other hand, you hear he can't really serve in a real role within the administration because of nepotism. What are you hearing, Rebecca?

[09:10:11] BERG: Well, Jared Kushner could certainly still serve as an informal adviser to Donald Trump in the White House. He wouldn't necessarily need to have a salary. But if they decided this was something they want to do, he could still get security clearance as an unsalaried, unofficial adviser to Donald Trump. And that would fit in very well with what his role has been throughout the campaign.

I mean, we've talked a lot throughout this election cycle about some of the shake-ups in the Trump campaign. He's had three different campaign managers over the course of the campaign. Now, he has even more people coming in to the fold in his transition. But Jared Kushner and Trump's adult children have been there throughout this process, sort of the uniting thread of Trump's advisers because there is just this level of trust and level of loyalty that you can't get from the outside. They're connected by blood and by marriage.

And so he really does trust Jared in a unique way among his advisers. And I would be very surprised if Jared were not to have some sort of informal role in this White House because Trump values his opinions so much. But there are some complicating factors here. Jared Kushner has a real estate business of his own separate from the Trump Corporation, and that could present potential conflicts of interest. That would need to be addressed. So we'll have to see what sort of arrangement they would make going forward.

COSTELLO: Yes, the story continues. Rebecca Berg, Paul Singer, thanks to both of you. President Obama --

BERG: Thank you.

COSTELLO: You're welcome. President Obama is in Berlin this morning to meet with a close international partner. That would be German Chancellor Angela Merkel. It's the latest stop in his final overseas trip that has been used, in part, to reassure world leaders uneasy about what a Trump presidency will mean going forward. CNN White House Correspondent Michelle Kosinski is with the President. Good morning.

MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: Hi, Carol. Right, a much, much different trip than President Obama expected, obviously. This is his sixth trip to Germany. Chancellor Angela Merkel is his closest ally in furthering the policies that he feels are important in establishing close ties with Europe and working together on some of the biggest problems, including the fight against ISIS.

So now, there are these big question marks, and analysts describe world leaders as being deeply concerned, as they're being a level of anxiety here because nobody really knows what those policies and what those issues are going to look like moving forward, especially when you think about the kind of leadership that the U.S. tends to take on these issues.

Originally, President Obama intended this trip to be a stop in Europe to say, OK, we got through this election. We're okay. Now, we can move forward together. Here is where we're going to go. Here's what policies of mine I'd like to continue, and here's how -- in his view, it was going to be Hillary Clinton -- is going to continue to shape those.

Well, now, there's not a whole lot of reassurance he can bring because he himself does not have much clarity on what those policies and what those initiatives are going to look like. I think the best that he can bring is to say, our ties are strong among our nations, and at least Donald Trump's exhibited some commitment to NATO in his meeting.

Now, President Obama and Angela Merkel did do an op-ed together in a German magazine saying, "Today, we find ourselves at a cross roads. The future is upon us, and we will never return to a pre-globalization economy. Germans and Americans, we must seize the opportunity to shape globalization based on our values and our ideas. We owe it to our industries and our peoples, indeed to the global community, to broaden and deepen our cooperation."

So that's going to be one of the themes here, talking about the challenges that globalization produces. And the fact that, you know, if you don't deal with those fully, you get the kinds of outcomes that we've seen, including now in the United States, Carol.

COSTELLO: All right. Michelle Kosinski reporting live from Berlin, Germany, this morning.

Still to come in the NEWSROOM, dealing with Trump's financial baggage, hundreds of companies, billions of dollars. Can he separate Trump Inc. from a Trump White House?

(COMMERCIAL BREAK)

[09:18:39] COSTELLO: Before Donald Trump gets down to business running the country, experts say he's got to deal with his own 500- plus businesses. Trump runs a billion dollar empire controlling real estate, hotels, golf courses all over the world. He's mentioned setting up a trust and allowing his children to take over his brand but critics argue that's a far cry from clearing conflict of interest.

So, does Trump's plan go far enough to eliminate conflict?

CNN's Cristina Alesci joins me now with more on that.

Good morning.

CRISTINA ALESCI, CNN CORRESPONDENT: Good morning.

So, essentially what Donal Trump has to do is convince the American people that he is going to make decisions in the best interests of the country, and not in the best interests of boosting his bottom line. And right now, his proposal for reducing or resolving those conflicts really falls short according to the ethics experts I spoke to Carol on both sides of the aisle. What he is proposing is essentially handing over control of his businesses to his children. And what ethics experts say has to be done in order to resolve conflict is to set up a real blind trust.

What does that mean? Well, that means that President-elect Trump would have to sell off all of his assets, put the proceeds in a true blind trust, run by someone who has no connection to him, or his family, and then that person would make investment decisions without the president knowing that is the only way to be completely above board from an ethical standpoint.

[09:20:03] Of course, other presidents have used blind trusts before. Not all of them quite appropriately, I should point out. There are problems in the structure of these blind trusts.

So, just keep in mind, Carol, what's really important here is that all of this is legal. The president and the vice president do not have to comply with the section of the legal code that subjects other people in the administration to conflicts of interest legislation.

COSTELLO: OK. So, so do we know the extent of Donald Trump's business dealings with international entities?

ALESCI: That's an excellent question. And actually on the international front, we know very little. All we know is really what's on his website, and some additional disclosure and his personal financial disclosure form that he filed. But, really if you look at his holdings in the Philippines, India, Turkey, Uruguay, and this is where he actually does have some risk because he is at risk potentially -- this is what ethics say -- of running up against an obscure section of the constitution called the Emoluments Clause.

What is the Emoluments Clause? It basically says that any official cannot accept a gift from a foreign entity. He's, of course, not accepting gifts. He's doing business deals. But if you look at the terms of the business deals, are there any sweeteners in there? Is there a reduced interest rate? Is there a bonus that's sometimes you know added into these deals? And do the companies that he's negotiating with in these countries have any connection to the actual government?

So, those are two questions that he's going to have to be really mindful about and it's unclear whether or not they're going to resolve this before inauguration day.

COSTELLO: All right. Cristina Alesci, thanks so much.

So exactly how can Donald Trump separate himself from his many businesses?

With me now to wade through that is Foster Friess, an investment manager and founder of Friess Associates. He's a Donald Trump supporter.

Welcome. Welcome to New York.

FOSTER FRIESS, DONALD TRUMP SUPPORTER: It's always great to be in New York. It's pretty exciting, right in the center of the washing machine with all the clothes going around.

COSTELLO: You're not kidding about that. That is very true.

So, I mean, Trump's not going to sell off all his assets, right? That would be impossible, right?

FRIESS: Impossible, right.

COSTELLO: That would be impossible, right?

So, how does he assure the American people that that he won't be influenced by any foreign entities that he does business with?

FRIESS: Yes, I think that's pretty easy because he's the richest guy ever to become president. And you know, I've been rich and I've been poor and rich is better. But when you get wealth, you're no longer wanting to say, how do I

build more wealth. I think like, eight or nine years ago I said, how do I'd be a blessing now with the wealth that God has blessed with me? And I think Donald Trump and the Koch brothers and look at all the money the Koch brothers give to charities that nobody knows about that, to cancer research, to the Smithsonian Institute.

So, the whole notion of wealthy people having different motivation, why would Donald Trump want to get richer? I mean look at --

COSTELLO: Well, but, but, certainly in the primary he held many political rallies at his golf courses.

FRIESS: Yeah.

COSTELLO: Some people accused him of, of using that platform you know to promote his new hotel in Washington, D.C., for example, and also his golf courses. So he is interested in continuing to make money.

FRIESS: Well, I think he maybe did it because he probably negotiated a very good price rather than having to pay one of his competitors to have a venue at another hotel or another place.

I'll tell you how successful this guy is. I go into one of the golf shops. I say to the pro, I'd like to have a ball marker. Guy gives me a dime, says that will be a dollar.

(LAUGHTER)

COSTELLO: But still -- nobody really knows Donald Trump's holdings. Is it time that Donald Trump releases tax returns?

FRIESS: Well, I thought a lot about that. I am blessed to be able to fly in airplanes, you know, United, and whatever, and the pilots, they do his health check so carefully. His vision. His blood pressure, and everything.

And they don't care what the pilot's financial statement is. And so, if you're running a ship of state, what difference does it make what his income is, where it came from. It's more important --

COSTELLO: So, you're saying the American people don't really care?

FRIESS: No. I don't -- 60 million people don't care. I think the only people that care are people who want to try to find some reason they look for --

COSTELLO: Well, let me give you an example of, of how his business dealings might affect his decisions as president of the United States. This is just one example. The Trump Organization has a $950 million mortgage according to "The New York Times," one of the lenders is the Bank of China, right? So, Mr. Trump wants to label China as a currency manipulator. Couldn't China use Trump's mortgage, his debt, to manipulate things for Donald Trump?

FRIESS: Isn't that a classic example to the answer to your question. Here is the bank of China has lent him money, yet he's willing to attack China for being a currency --

COSTELLO: He hasn't done it yet though.

FRIESS: I know but he's --

COSTELLO: Right? So, so, why would China be a good citizen and say you know we're not going to interfere with that bank loan at all with Donald Trump? Why would they do that? Wouldn't they be smart to sort of indirectly threaten the president of the United States with something like that?

[09:25:06] FRIESS: Well, I don't know Donald Trump that well. But I don't think anybody's going to threaten that guy. He is so bold and so courageous --

COSTELLO: Really? Even China?

FRIESS: He could care less about China. He's -- he's going to do just fine with China and Putin and the rest --

COSTELLO: So, the American people should just trust Donald Trump to do the right thing?

FRIESS: Absolutely.

COSTELLO: With no checks?

FRIESS: Well, no my heavens, Carol, you will be all over this guy, the least -- CNN I will give credit. That's the wonderful thing about America. Think of our free press system. They could find the most smallest little detail of 20 years ago and pick it out. And so, I have no lack of confidence in the press' ability to find every single picayune thing.

COSTELLO: Well, it is nice to hear that you like us. Foster Friess, thanks so much for stopping by. And have a good time in the city.

FRIESS: Thank you very much, Carol. Bye-bye.

COSTELLO: We are moments before the open belling on Wall Street. But many investors look to the top of the hour on Capitol Hill. Federal Reserve Chairwoman Janet Yellen is due to testify on the nation's economy.

CNN business correspondent Alison Kosik live at the New York Stock Exchange.

Hi, Alison.

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

So, Wall Street, yes, keeping a close eye, on Capitol Hill this morning, as Federal Reserve Chief Janet Yellen takes the hot seat. So, I got to look at her prepared testimony that she's going to be giving before Congress, oh, in about half an hour from now. And in it, she makes her strongest case yet to raise interest rates next month saying an increase could come relatively soon. In fact, she says there are dangers in waiting too long to hike rates.

Now, Wall Street wouldn't be so surprised if it happened. Many actually are putting the chances at 90 percent. That's up from 80 percent just a few days ago. You could also see the likelihood of a rate hike happening and how the dollar has been trading lately.

It's at its highest level in 13 years on hopes that the fed will begin raising rates quicker after President-elect Trump takes over.

Now, the election has also opened up uncertainty about policy. Oh, yes, you can bet lawmakers will be trying to glean information from Yellen on how his fiscal policies could affect the economic outlook. If you're keeping track I say market calendars, December 13th and 14th. That is when the Fed meeting will be happening.

COSTELLO: All righty. Alison Kosik reporting live from the New York Stock Exchange. I'll be right back.

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