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New Day

Trump Foolish on Deal; No End for Shutdown; Pelosi Reclaims Speaker; Apple Stock Losses; Cutting Junk out of Diet; Changes with New Congress. Aired 8:30-9a ET

Aired January 03, 2019 - 08:30   ET

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

[08:30:00] JOHN BERMAN, CNN ANCHOR: Inside that room, in that picture we just saw there, the Democratic whip, Dick Durbin of Illinois.

Senator, thank you so much for being with us.

We're hoping to get a better understanding of what transpired in there specifically.

CNN is reporting that the president told Chuck Schumer, Senator Schumer, that he felt he would look foolish if he supported the Democrats' plans to reopen most of the government while you discussed border security over the next month. He was afraid he would look foolish. What did you take him to mean there?

SEN. DICK DURBIN (D), DEMOCRATIC WHIP: Well, I think we all understand what this is about. The president has made the decision that despite his responsibility to manage and lead this government, he would rather shut it down and hold it hostage for his beloved wall. That wall the Mexicans were supposed to pay for, remember?

Well, most people, including those who work in his agencies for border security, don't list this as even the highest priority. What they want to see are the technology and personnel for border security which Democrats are more than happy to support.

BERMAN: So when he said he would look foolish, as a negotiator, and you're on the other side of the table now, is there something that you can give that would make him look less foolish?

DURBIN: Well, that, of course, is what we're searching for, but we are not going to compromise on the basics. And the basics are, we are offering $1.3 billion for border security, an amount which was debated back and forth among Democrats and Republicans in a Republican Congress and came forward. And what we said to the president, let's move forward. Let's open to the government.

We offered to him yesterday, take eight federal agencies and departments currently closed down and we will accept the Republican passed appropriation bills, the spending bills the Republicans asked for to open those agencies. Don't hold them hostage. The president refused.

BERMAN: Let me play you what Lindsey Graham says about the president's negotiating position. Listen.

(BEGIN VIDEO CLIP)

SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: If he gives in now, that's the end of 2019 in terms of him being an effective president. That's probably the end of his presidency. Donald Trump has made a promise to the American people.

(END VIDEO CLIP)

BERMAN: Do you see it that way?

DURBIN: Well, I can tell you this, 75 percent of the American people say we should not shut down the government over the wall. So if this president is trying to find a way to lengthen his tenure or popularity in office, it isn't with this tactic. This is a ham-handed approach. He should be using his own people around him and others to counsel for some compromise that's good for America.

BERMAN: I will also note what Senator Graham says, Donald Trump has made a promise to the American people. One of the things he also promised was that Mexico would pay for it.

DURBIN: That's right.

BERMAN: This isn't Mexico paying for it. But you say you are willing to have border security. Hakeem Jeffries, who will be the number five in the House, yesterday told me that means enhanced fencing. He also wouldn't rule out perhaps more money for border security.

So is there -- look, if an extraterrestrial came to earth right now without knowing anything and tried to solve this problem, he might say, well, why not do $1.6 billion and call it a fence and not a border wall. Would Democrats allow and pay for some new fencing?

DURBIN: Well, I can tell you, we've had fencing in the past. I'm sure we would in the future. I won't be a big, long, beautiful 2,000 mile wall.

For example, we have the worst drug epidemic in the history of this nation. Eighty percent of the narcotics coming into the United States come through ports of entry and newer than one out of five vehicles are being scanned to see if they have contraband, firearms or even victims of human trafficking. I'll invest $300 million into making sure that those ports of entry start stopping narcotics. That's good border security investment.

BERMAN: When I hear you saying that, though, I don't hear you ruling out the possibility of some new fencing. So maybe if everyone just started calling this a barrier and stopped using wall, there might be some progress here.

DURBIN: Well, it could be. It could be a matter of words. But at this point, who cares if the government's shut down. What we're saying to the president is, for goodness sakes, open the government you were elected to manage and serve. Make sure the people of the United States are going to be provided with the services that are fundamental and stop penalizing these federal employees who have done nothing wrong and are ready to go to work and deserve a paycheck.

BERMAN: A couple questions before we wrap up here. Number one, Nancy Pelosi will be the next House speaker as of noon today. Democrats taking control of the House. That's the other side of the Capitol from you. But what do you see the difference being when that happens today?

DURBIN: Well, it's a big difference. The fact that we will have a Democratic majority in the House means it's a new, political world for the president. If he's having a struggle with the old political world, where Republicans had a majority in the House and Senate, get ready for a new day. There's going to be more balance in terms of the decision-making in Washington. That's not something the president has invited.

BERMAN: Now, Nancy Pelosi did an interview that aired just a short time ago where she was asked about different aspects of the investigation into the president. And she was asked whether she believed the president could be indicted. I want you to listen to what she said.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D), MINORITY LEADER: Everything indicates that a president can be indicted after he is no longer president of the United States.

UNIDENTIFIED FEMALE: What about a sitting president?

PELOSI: Well, a sitting president, when he's no longer president of the United States.

[08:35:03] UNIDENTIFIED FEMALE: A president who is in office?

PELOSI: Right.

UNIDENTIFIED FEMALE: Could Robert Mueller come back and say, I am seeking an indictment?

PELOSI: I think that is an open discussion. I think that is an open discussion in terms of the law.

(END VIDEO CLIP)

BERMAN: So it's the Justice Department's opinion that a sitting president cannot be indicted. You sit on the Judiciary Committee. Do you believe that a sitting president can be indicted?

DURBIN: You know, I haven't resolved that issue in my mind and I know it's one in controversy. But I will say this with no reservation whatsoever, Congress and president get out of the way of Bob Mueller. Let him finish his investigation and let the results be made public in America. That is the vital next step. Presuming what's going to happen beyond that is just pure conjecture. BERMAN: So you say you haven't resolved it. That sounds like it's an

open question -- what Nancy Pelosi is saying -- in your mind it's an open question whether a president can be indicted?

DURBIN: It is.

BERMAN: Are you running for re-election?

DURBIN: I am.

BERMAN: Senator, you have -- you are?

DURBIN: Yes.

BERMAN: OK. Well, that clears it up because we were going to ask you --

DURBIN: But I haven't made a formal announcement, John. Don't take that as a formal announcement.

BERMAN: You just announced it. You just said you're running. That's a formal announcement. Whether you like it or not, you just announced you're running for re-election formally.

DURBIN: Well, let me tell you, what I've said is, and I'm raising money and trying to lose a few pounds, and that's a good indicator that I'm looking forward to 2020.

BERMAN: All right, Senator Dick Durbin, thank you for joining us this morning. Thank you for that non-formal announcement. Appreciate it.

DURBIN: Thank you, John.

BERMAN: Alisyn.

ALISYN CAMEROTA, CNN ANCHOR: Yes, sounded like an announcement to me.

BERMAN: I know.

CAMEROTA: All right, meanwhile, Apple's CEO is blaming President Trump's trade war for a -- with China for a slump in iPhone sales. How are the markets taking this news? Christine Romans joins us next.

(COMMERCIAL BREAK)

[08:40:13] CAMEROTA: All eyes on the opening bell after Apple announces its iPhone sales have slumped. The company's CEO is blaming President Trump's trade war with China.

CNN's chief business correspondent Christine Romans joins us with more.

Was this expected?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: No, this, Alisyn, came as a shock. This is a rare warning from Apple. China's slowing economy is hurting iPhone sales and the U.S./China trade war is making it worse Tim Cook says. In a letter to shareholders, the Apple CEO warned of lower sales from the holiday quarter. He blamed the disappointing outlook on the ongoing U.S./China trade war, that slowing Chinese economy and a number of other factors, including Apple offering cheaper iPhone battery replacements.

Now, Apple now expects revenue for the three months ending in December to be about $84 billion. That's down from the earlier range of $89 billion to $93 billion. So a big hit there. Cook told CNBC, tensions between the U.S. and China put additional pressure, his words, on the Chinese economy, especially in the second half of last year. China makes up about 15 percent of Apple's global revenues. Apple's stock is down in pre-market trading some 8 percent on this news. It's unnerving markets around the world and it really undermines China's slowing economy.

Taking a look at futures here right now, you can see they are lower before the opening bell, but off the worst levels, John. The Dow looks like it's going to open for maybe 200, 250 points to the downside.

John.

BERMAN: All right, a lot of unnerving going on these days.

Christine Romans, thanks so much.

President Trump had a really interesting reveal inside the Oval Office yesterday. What are we talking about? There have been so many questions about this. The poster. The poster on the table during the cabinet meeting, but he never once referenced it. The poster had "Game of Thrones" fans talking. Here's CNN's Jeanne Moos.

(BEGIN VIDEOTAPE)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Thank you very much, everybody.

JEANNE MOOS, CNN CORRESPONDENT (voice over): Just your typical cabinet meeting with President Trump in the thrown position and a poster mimicking "Game of Thrones" in front of him. "Sanctions are coming," it said, playing off the "Game of Thrones" mantra.

UNIDENTIFIED MALE: Winter is coming.

UNIDENTIFIED MALE: And winter is coming.

UNIDENTIFIED FEMALE: Winter's coming.

MOOS: Hmm, is pretty much what reporters said about the poster. We do know that President Trump tweeted out this exact same image back when he was about to re-impose sanctions to Iran after the U.S. pulled out of what the president calls that --

TRUMP: Stupid deal.

MOOS: But what's the deal with the poster? Critics reimagined it, "Mueller is coming," or a back view with "indictments are coming." Someone safely bet that "tantrums are coming."

The president made no reference to the poster while cameras were rolling.

TRUMP: And walls work.

MOOS: He talked about walls working in front of a poster echoing a show in which a wall didn't work. In "Game of Thrones," a dragon breaches the wall. HBO did some crowing of its own, referring us to what they said the last time the president used the image, with a nod to the show's made-up language, HBO tweeted, how do you say trademark misuse in Dothraki?

UNIDENTIFIED FEMALE: (INAUDIBLE).

MOOS: Imagine President Trump delivering his rally speeches from that. The next thing you know, he'll be trading in Air Force One for dragon one.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

CAMEROTA: I've got to start watching it.

BERMAN: You do. You really do. But the weirdest thing was the poster just being on the desk the whole time with no reference to it.

CAMEROTA: I think that it's a tease.

BERMAN: Maybe it's product placement.

CAMEROTA: It's product placement.

BERMAN: Do we know that HBO didn't pay to have that there?

CAMEROTA: Look, season three promises to be a really good one.

BERMAN: Yes, especially with the dragon.

CAMEROTA: That's right.

All right, incoming House Speaker Nancy Pelosi had interesting comments this morning on whether a president can be indicted. We get "The Bottom Line."

BERMAN: But first, processed foods may be convenient, but recent studies have linked them to a host of health problems. Nutritionist Lisa Drayer has easy tips on how to cut down on junk.

(BEGIN VIDEOTAPE)

LISA DRAYER, CNN HEALTH CONTRIBUTOR: Ultra-processed foods are those loaded with salt, sugar, fat and plenty of other additives. They're not great for you. So here are my favorite tips to cut back. First, supplement your meals with fresh foods. Try adding a piece of

fruit to breakfast or add a salad to any meal. Ideally, half our plate should be fruits and veggies, but you can smart small. Chose whole grains over the refined kind. Swap brown rice for white rice. And go for whole grain bread instead of white. And limit or avoid processed meats. That means bacon, ham, hot dogs, and sausage, which have been linked to an increased risk of cancer. You can also substitute highly processed foods for healthier options. Instead of potato chips, try non-fat popcorn. It's crunchy, but has the benefit of being whole grain and a good source of fiber.

[08:45:03] And, lastly, DIY. Try making homemade versions of traditionally processed foods. Bake your own kale chips, mix your own granola, or whip up your own salad dressings.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

CAMEROTA: Well, today is the first day of the new Congress. So what exactly will change? Let's get "The Bottom Line" with CNN's political director David Chalian.

David, I understand that for you it is like Christmas Day.

DAVID CHALIAN, CNN POLITICAL DIRECTOR: Yes, it's that first day of school feeling. I love this day every two years when the new Congress forms.

CAMEROTA: That is so corny.

CHALIAN: I'm proud of that.

BERMAN: You have so many problems.

CAMEROTA: Yes. Wow.

So, but, big picture, what changes today?

CHALIAN: Well, it's a really good question, Alisyn, because if nothing changes, there will be two parties now that are going to have to suffer the consequences of that now that Democrats are going to be in charge. So their mission is going to have to show some change to the American people if they want to get renewed for their job in the majority going forward.

But I'm skeptical that much will change. And I think what we saw out of the meeting last night at the white House trying to get the government back open indicates why. This is not -- this does not seem like a changed environment or a new dynamic at play just yet that has caused action, though I do think Donald Trump clearly is going to be facing a new reality with Democrats in charge of one house.

[08:50:07] BERMAN: Yes, oversight is a huge difference. I mean there's history being made by the membership of the House. That's for sure. There's also history in the Trump presidency, which is that as of noon today he's got someone looking over his shoulder.

CHALIAN: Yes, in a way that he's never seen before and, quite frankly, John, in a way that the White House is not fully prepared for. This is going to be -- there is the oversight piece of this, like you're saying, someone looking over your shoulder, and that's just on the day-to-day, right? That's just on the regular policies that the administration puts forth, how they conduct their business, day-to-day work in Washington.

But then there's also the investigative arm that was dormant in Congress throughout all of this. It was only Robert Mueller looking at the Russia investigation. But now you're going to have the House Intelligence Committee and other committees in the House be able to take up different strands of the investigation into the president as well. That's going to be a new heat on the White House.

CAMEROTA: Day 13 of the partial government shutdown. Good news, David, John and I have figured out a solution. I mean --

CHALIAN: What is it?

CAMEROTA: OK, here's the solution. Every single lawmaker that we have talked to says something like, yes, I mean, I would give money for some sort of barrier. Yes, we could shore up fencing. Democrats and Republicans both say this, OK?

BERMAN: As long as it's not a --

CAMEROTA: Wall. Change the --

CHALIAN: You think it's just a semantics issue?

CAMEROTA: Yes.

CHALIAN: Yes.

CAMEROTA: Yes, I do. Yes, I do, David. I think that if we change the same from "wall" to "door" or "ceiling" or we -- fill in the blank, that they could make a deal.

CHALIAN: I think there's no doubt that there is a border security deal to be had. I think that in addition to words, dollars are going to matter here as well. But the issue here is that the president has been all over the map on what the wall is, but then when he presents different language, he tries your approach, Alisyn, he talks about slats, he talks about fencing and other things. But then when he gets called out that -- whoa, whoa, so it's not the wall you promised in the campaign that Mexico's going to pay for, then he goes right back at it and says, no, no, it is a wall. I mean he just pushed back on John Kelly as Kelly was on his way out the door on this fact.

BERMAN: Right. I mean that's what makes it so interesting here is that the deal to be made is one for additional funding for a barrier. But inside the language of that deal, much like it was last year, there will be language that it can't be a concrete wall. It could be some kind of enhanced fencing. It can be some kind of barrier, but not a concrete wall.

Can the president politically and I honestly have to say psychologically, can he swallow that pill? And I'm not sure we know the answer, David.

CHALIAN: I'm not -- we certainly don't know the answer, but I think it's the right question, John, without a doubt.

CAMEROTA: Yes, but, I mean, I think that they shouldn't put language in there. I think that that is -- that's the Democrats going overboard of saying, and it can never be a cement wall. I don't think the president could actually swallow that one. But I think that if we all just call it a barrier, we might be able to open the government.

CHALIAN: I love it. You guys should come down here and be part of the new Congress.

CAMEROTA: Thank you.

CHALIAN: Yes.

CAMEROTA: It's so easy.

BERMAN: We're not (INAUDIBLE).

CAMEROTA: OK. I mean all this kind of deal making, it's so easy.

BERMAN: You don't -- you don't want -- you don't want us down there because we take up a lot of office space.

David, Nancy Pelosi -- Nancy Pelosi will be speaker for the second time. This is the first person since Sam Rayburn -- or, you know, the first person since Sam Rayburn to get the job twice.

And, look, only four times since the '50s has power shifted in the House. It's a big deal. And she's got this big, new job. What are you expecting from her today in this favorite moment of yours when, you know, you have the new Congress in, and going forward?

CHALIAN: Well, I'm so glad you brought up the Rayburn history there, John. I was looking at that last night because this has never happened in my lifetime that I've seen a former speaker become a speaker. It is a big deal. And what she has promised is, of course, to try to work across the aisle, to be a force of compromise when there's an ability to work together.

But here's the reality. Nancy Pelosi is now the face of the opposition to Donald Trump in a way that she hasn't been before. Even with all the money spent against her by Republicans in the last campaign, as the 2020 Democrats try to figure out who the nominee is, there's this one person who's now third in line for the presidency who is going to be the very embodiment of the opposition to Donald Trump. And that's going to be her biggest role, how she deals with the president and how she plays that opposition card. And what we heard from her this morning I thought was quite interesting on this investigation front, on this issue of whether or not a sitting president can be indicted. BERMAN: She says yes. What's interesting there is, she's not the one

who would indict him. But the idea that she's willing to open that door and openly muse about that.

CAMEROTA: Yes.

CHALIAN: She says it's an open question, an open legal question.

CAMEROTA: She said (INAUDIBLE).

CHALIAN: Exactly. The fact that she's willing to muse about that shows us a little bit of how she intends to use this position.

CAMEROTA: David Chalian, enjoy your day, you kid in a candy store down there.

CHALIAN: Thanks, guys. You too.

CAMEROTA: Have fun.

[08:55:03] BERMAN: Do you think David laid out his clothes, like the first day of school, you know, beforehand just to get ready for this?

CAMEROTA: Yes. Yes. Yes, I do think he did.

CAMEROTA: All right, "The Good Stuff" is next.

(COMMERCIAL BREAK)

BERMAN: It is time now for "The Good Stuff."

People all over the world join hands. Also they pitched in to make this a special birthday for one of our nation's heroes in California. Duane Sherman, a World War II Navy veteran, he didn't feel like celebrating his 96th birthday at first.

CAMEROTA: Oh.

BERMAN: Why?

CAMEROTA: Why?

BERMAN: He said most of his buddies are gone.

CAMEROTA: Oh, that's horrible.

BERMAN: So what did his daughter do? She wanted to make him smile. She asked everyone she knew to get the word out to send her father some birthday love. And it worked. Duane got 50,000 cards from around the world.

CAMEROTA: Oh, my gosh.

BERMAN: Fifty thousand.

CAMEROTA: What? BERMAN: Ten Navy officers even paid him a personal visit.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: With U.S. Navy, we're a brotherhood and sisterhood of chiefs. And that spans his entire lifetime. So he still has friends and we're all here to celebrate his birthday with him. So hopefully it's a happy one.

(END VIDEO CLIP)

BERMAN: You've got friends, Duane. Happy birthday, Duane. Ninety-six years old. Thank you for your service. Happy birthday.

CAMEROTA: Sometimes people are wonderful.

[09:00:00] BERMAN: You say that to me. We've been together for three hours and only now.

CAMEROTA: There are -- well, some -- I mean that's what "The Good Stuff" shows every day --

BERMAN: Yes.

CAMEROTA: That people are wonderful. And so are you. Thank you for watching.

President