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New Day
Trainer Of Kentucky Derby Winner Live On New Day; CNN Reality Check: China's Spy Campaign On The United States; Georgia Governor Expected To Sign "Heartbeat" Abortion Bill. Aired 7:30-8a ET
Aired May 07, 2019 - 07:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
[07:31:30] JOHN BERMAN, CNN ANCHOR: The race is over but the debate over the winner of the Kentucky Derby might be headed to court. The owner of Maximum Security now says he will sue to overturn the disqualification after the state Horse Racing Commission denied his appeal yesterday.
So what's it like to win a race with this kind of controversy swirling around it? Joining me now is Bill Mott, trainer of the Kentucky Derby winner, Country House.
Bill, thank you so much for joining us this morning. And I can just say congratulations? I know you probably haven't heard that quite as much as you thought you would when you dreamed about winning the Kentucky Derby.
WILLIAM MOTT, TRAINER OF KENTUCKY DERBY WINNER COUNTRY HOUSE: Well, this isn't the way that we planned on winning it. I mean, we're really glad to be in this position of having the winner. But on the other hand, we've probably had to apologize a little bit for the way we did it.
I mean, it's taken a little of the glow off the -- off the whole situation a little bit. But I believe that the stewards have made the right call and we were the recipient of the win.
BERMAN: And you've worked your whole life for this. To be clear, you're a first-time Derby winner. You've worked your whole life for this, right?
MOTT: I've been doing this for more than 50 years, yes, and you look forward to it. You look forward to the opportunity of just being in the Derby and having a horse that's good enough. And to win it is only a dream. It's like winning the Super Bowl.
BERMAN: So, the president, among other people, calls this a case of political correctness. He thinks the wrong decision was made here.
TEXT: "The Kentucky Derby decision was not a good one. It was a rough and tumble race on a wet and sloppy track -- actually, a beautiful thing to watch. Only in these days of political correctness could such an overturn
occur. The best horse did not win the Kentucky Derby -- not even close!"
BERMAN: But I have heard you say that if not for the fact that this was a Kentucky Derby, this would have been an easy call, not even in question.
Why do you feel so strongly about it?
MOTT: Exactly. We have rules and regulations in racing and most of them are due to fairness for the gamblers and the safety of the horses and riders.
And you're -- you know, the rules are -- strictly state that you cannot move out of your lane and impede the progress of another horse. You can -- you can change lanes if you're clear. But if one of those horses had gone down and caused a wreck -- I mean, they could have endangered the lives of horses and riders.
And also, the fact that three horses were dramatically taken up in the race and their progress was impeded, and those three horses lost all chance of a placing or even a win in the Kentucky Derby.
BERMAN: I want to read you one of the criticisms that I've heard that's fairly common. This comes from Andrew Beyer who is, obviously, a very well-known "Washington Post" horse race columnist.
He said, "...because Maximum Security's infraction did not affect the outcome, disqualifying the winner was a bit like deciding the NBA Finals on a foul away from the ball."
So how do you explain then -- what he calls "a foul away from the ball" -- why does that infraction matter?
MOTT: Well, I can tell you maybe the infraction didn't involve our horse as much as it did three other horses.
But you've got to remember that this is a pari-mutuel event and those horses that the -- that Maximum Security bothered were all bet on by the public -- millions of dollars. And you can't deny the people that bet on those horses that were impeded in this event -- you can't deny them justice.
[07:35:09] BERMAN: And again, this is a matter of safety. I mean, if you watch the replays very closely and you look at the photos -- look, it's a miracle that those horses didn't go down that were impinged there as Maximum Security was moving over. It really looked, for a moment, like they might.
What's your message to the owners of Maximum Security at this point, who -- they've been overruled on their first appeal? They may take this to a federal court.
MOTT: Well, I think once they cool down and they really look at this situation -- the owners of these horses and the owners of Maximum Security are professionals. They've been in the game a long time. Obviously, there's a lot of emotion that's involved in this. I mean, it's like taking the Super Bowl win away from you.
But when they signed their license application -- when Mr. and Mrs. West signed their license application, they waived their right to appeal a steward's decision on a disqualification. The rules clearly state in the state of Kentucky that you cannot -- you cannot appeal, so the stewards' ruling is and should be final.
BERMAN: Are you taking Country House to the Preakness?
MOTT: If he's doing very well we will. I mean, I don't feel like we've got any pressure to go other than the fact that the Derby winner usually goes to the Preakness, and I think people are looking forward to seeing him there.
We're going to monitor his progress in the next week and 10 days and then decide. There's a short time -- you know, we only have a short rest in between the Derby and the Preakness and it's -- you know, it will all be determined by the health and welfare of the horse.
BERMAN: Bill Mott -- listen, thanks for joining us this morning. I know this has been a complicated few days for you. I hope you've had a chance to enjoy the victory.
MOTT: Well, I'm sure we will in another month, six months. In a couple of years after this, I think it will -- when the dust settles I think we'll enjoy it a lot more.
BERMAN: Right. Thanks, Bill. Take care.
ALISYN CAMEROTA, CNN ANCHOR: I'm fine with stretching out a victory, much like I stretch out a birthday.
BERMAN: Six years?
CAMEROTA: Yes, that's fine. Celebrate it all for six months or years -- whatever.
All right.
Meanwhile, China's trade representative is coming to Washington. Can he strike a deal to stop a new round of tariffs? That's next.
(COMMERCIAL BREAK)
[07:42:10] CAMEROTA: It's time for "CNN Business Now."
Trade officials say the president's threat to hike tariffs on Chinese goods is real. Critical trade talks resume this week.
Chief business correspondent Christine Romans is in our Business Center. Is that the Business Center? OK.
CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT, ANCHOR, "EARLY START": Hi, guys. Yes, well, here I am. I'm here with you.
BERMAN: The Business Center is wherever Romans is.
ROMANS: I am the Center.
No, look, Friday is the day those tariffs go up, guys.
And the Treasury Sec. Steven Mnuchin and trade representative Robert Lighthizer, they've briefed reporters confirming tariffs will jump from 10 percent to 25 percent on $200 billion worth of Chinese goods. We're talking everything from car seats, bike helmets, fruit, processed fish, and thousands of other things.
Lighthizer blames China for backsliding during the last round of negotiations, derailing months of progress toward ending a damaging trade war. Lighthizer said, "We tried to accommodate changes in the text, but these are substantial and substantive changes."
China responding to the president's threat, saying that raising tariffs won't resolve any issues.
This morning, China's Commerce Ministry confirmed that Vice Premier Liu He will come to D.C. Thursday for the 11th round of talks. A day late, but he will be there.
So, guys, they are talking but the negotiations are more uncertain today than at any other time in this trade war. It's unnerving investors around the world. The Dow fell as many as 471 points Monday and then recovered to close just 66 points lower -- super volatile.
Taking a look at markets right now, futures are pointing down again about a half a percent move. The good news, Monday's losses were shallow. But guys, the higher tariffs and the president's threat for more is injecting uncertainty for businesses.
Remember, China does not pay those tariffs. China does not pay. The customs bill goes to the American importer who can then either eat the higher costs or pass it on to consumers.
The National Retail Federation says tariffs jumping from 10 to 25 percent will raise prices for those consumers and it will hurt jobs -- John.
BERMAN: All right, Christine Romans in the Business Center -- is the Business Center. Thank you very much for that.
Now, the trouble with China is about to get a lot more about trade imbalances. The nation is leading a concerted campaign to spy against the United States and planting its assets in some of the most sensitive areas of our government, and the damage is staggering.
John Avlon has today's reality check -- John.
JOHN AVLON, CNN SENIOR POLITICAL ANALYST: That's right, guys. So, as the trade war with China heats up after a Trump tweet, it's a reminder of how much our politics and our economy have become intertwined with China.
During the campaign, Trump railed against China to cheers from workers who thought their jobs had been lost to unfair competition.
Last week, Joe Biden found himself in hot water after saying this.
(BEGIN VIDEO CLIP)
JOE BIDEN (D), PRESIDENTIAL CANDIDATE: China is going to eat our lunch. Come on, man. They're not bad folks, folks, but guess what? They're not competition for us.
(END VIDEO CLIP)
AVLON: Now this drew rebukes not just from Republicans but from Democratic candidates like Bernie Sanders and Tim Ryan. Team Biden tried to explain that he wasn't dismissing the challenges of China but trying to give U.S. workers a pep talk.
[07:45:03] Regardless, there's no question China's on the rise as an economic giant and an expansionist power. They're building a technological surveillance state at home but it's their record of hacking and spying here in America that should be getting your attention.
"The New York Times" now reporting that the Chinese intelligence services gained access to NSA hacking tools and turned them against U.S. allies and companies.
Just last week, a former CIA officer named Jerry Lee pled guilty to conspiring to commit espionage for China. That came less than a month after a Chinese national was caught lying her way into Mar-a-Lago with nefarious intentions, not to mention four cell phones and a sketchy thumb drive.
But this is all just the tip of the iceberg. Get this -- in the last 10 years, at least 20 people have been charged with or sentenced for working on behalf of China against the United States -- or trying to. Cases range from Defense Intelligence Agency officer Ron Rockwell Hansen to State Department employee Candace Marie Claiborne, to FBI agent Joey Chun.
President Trump even accused Sen. Dianne Feinstein of once having a Chinese asset for a driver. Feinstein denied it but acknowledged that the FBI had warned her in 2013 that China was trying to recruit a specific member of her staff who she then forced out immediately.
But these are just a handful of examples. In some cases, they facilitated the hacking of huge databases and that may represent a greater long-term threat.
For example, in 2018, the Chinese government hacked into a Navy contractor and stole data on submarine warfare. In 2015, the Obama administration blamed China for a massive hack of the Office of Personnel Management that left some 20 million Americans' data compromised.
On the business front, the Obama DOJ also charged the Chinese military with hacking into U.S. corporations, like Westinghouse, Alcoa, and U.S. Steel, while a Bush-era director of National Intelligence has accused China of hacking -- get this -- every major corporation in the United States.
Against this backdrop, you could see why tensions are running high. It's about much more than trade balances and soybeans markets.
And it helps explain why the Trump administration has been taking a hard line against Chinese telecom Huawei in its efforts to help build America's 5G networks.
History is riddled with examples of great powers colliding. China's model of wealth without liberty is not something we want to see define life in the 21st century. It doesn't mean we need to be in conflict with the Chinese people but it does mean we need to be clear-eyed about the actions of its government.
But here's one way to gauge the stakes. Senator Chuck Schumer and Donald Trump don't agree on much but the Democratic minority leader recently offered words of encouragement to the president, tweeting, "Don't back down. Strength is the only way to win with China."
And that's your reality check.
CAMEROTA: That was very notable to hear Chuck Schumer agreeing with what Donald Trump is trying to do.
BERMAN: And then quoting Tom Petty. "Don't back down," he said.
CAMEROTA: Is that what he was saying?
AVLON: We'll always take a good Tom Petty quote.
BERMAN: Right. All right, John, thanks very much.
CAMEROTA: All right.
It's a night of high fashion and spectacular entrances. So who wore what at the Met Gala? Look at that.
BERMAN: Or what wore whom?
CAMEROTA: Yes. That dress was wearing Lady Gaga.
(COMMERCIAL BREAK)
[07:51:48] BERMAN: Georgia Gov. Brian Kemp is expected to sign a controversial anti-abortion heartbeat bill today. It bans abortions once a fetal heartbeat can be detected.
CNN's Dianne Gallagher has much more from Atlanta -- Dianne. DIANNE GALLAGHER, CNN CORRESPONDENT: Yes, and John, look, let the
lawsuits begin. There are already threats of boycotts from Georgia's booming and very lucrative film industry. There are protests scheduled for a little later today here at the Capitol.
But, Republican Gov. Brian Kemp campaigned on this specifically. In fact, there are people who initially supported him who now say they don't think that this so-called Heartbeat Bill, which oftentimes is first detected around six weeks -- opponents point out that look, sometimes a woman doesn't even know she's pregnant at that point.
Supporters of the bill, though, fear that this particular one in Georgia doesn't go far enough, they say. And that's because there are exceptions allowed, both for potential deadly issues with the fetus and the mother, as well as exceptions for rape and incest, but only if they have a police report and only up until 20 weeks. That is the current limit for abortions in Georgia.
Now look, again, proponents of this say that this is just simply allowing for additional options. It's not preventing all of them. Those who are against this say that it is draconian and is against Roe v. Wade and they intend to file lawsuits.
I've already talked to the ACLU. That's what they're going to do pretty quickly after this is signed at 10:00 this morning. And it's something that we've seen in all of the states that have passed these so-called heartbeat bills.
Yes -- and so, Alisyn, look, it seems the goal here is really just to get it to the Supreme Court now that President Trump has put two conservative justices on there. A lot of people who support these bills say that they would like the Supreme Court to go ahead and take another look at Roe v. Wade.
CAMEROTA: This is a very big deal, as you're saying, Dianne. Lots of doctors think that this will put women's lives in jeopardy. We will follow this.
Thank you very much.
OK, breaking overnight, two Reuters journalists who were jailed in Myanmar for more than 500 days are now free. This morning, Wa Lone and Kyaw Soe Oo reunited with loved ones.
The pair, who received this year's Pulitzer Prize for international reporting, have been locked up since 2017. They were charged under Myanmar's colonial-era Official Secrets Act for their report on a massacre of Rohingya civilians.
The two men were released as part of an amnesty of nearly 6,300 prisoners by the country's president.
BERMAN: President Trump praised golfer Tiger Woods for his relentless will to win. He honored Woods with the Presidential Medal of Freedom, the nation's highest civilian honor. The president called Woods a true legend who transformed the sport then fought through injuries to battle back to the top, culminating with his first major win in nearly 11 years at last month's Masters.
CAMEROTA: All right.
The Met Gala was last night and based on all of the daring theatrical fashions, this year's theme of "Camp" was open to interpretation and it doesn't mean a tent and Dinty Moore stew.
BERMAN: Oh, I know what camp's all about.
CAMEROTA: If there is one superstar who knows camp, it's Lady Gaga. Look at her eyelashes --
BERMAN: Wow.
CAMEROTA: -- or if that is what those are. She showed off not one, but four different outfits, John --
[07:55:02] BERMAN: Which is campy in and of itself.
CAMEROTA: -- starting with a billowy, bright pink dress. Then she stripped down to a black -- well, OK, a black gown.
BERMAN: To that.
CAMEROTA: Then, a pink slip dress. And finally, black undergarments. Why not --
BERMAN: Why not?
CAMEROTA: -- you know?
BERMAN: She wore them all well.
Singer-actor Harry Styles -- look at this. He turned heads with a sheer flamenco-inspired, gender-fluid jumpsuit by Gucci.
CAMEROTA: I'd like to see the full body picture here.
BERMAN: You really do need to see the full body to appreciate a full jumpsuit.
CAMEROTA: Yes.
BERMAN: There you go.
CAMEROTA: Who is the gentlemen with him, I'm just wondering?
BERMAN: I don't know the answer to that.
CAMEROTA: All right.
BERMAN: A princess of some kind.
Oscar-winner Jared Leto took himself to the event carrying -- took himself to the event -- look at that.
CAMEROTA: Carrying his own head.
BERMAN: He carried around his own head.
CAMEROTA: It makes sense.
BERMAN: The idea apparently was inspired by Gucci's fall-winter 2018 show, obviously.
CAMEROTA: Yes.
BERMAN: Obviously. That's where you get that kind of inspiration for carrying around a head.
CAMEROTA: Oh, yes -- all right.
Actor Billy Porter may have made the most memorable entrance. This is how John Berman comes into the studio every single morning. He makes the crew carry him in like this. But, Porter was carried in on a chaise lounge by six shirtless men.
BERMAN: Sort of bejeweled or bedazzled or both.
Obviously, though, the pair that everyone's talking about -- the best- dressed this year and every year, and every year going forward -- Tom Brady and Gisele Bundchen.
CAMEROTA: They do look good.
BERMAN: Obviously, they do.
CAMEROTA: They look fantastic.
BERMAN: This is beyond just my fixation with Tom Brady.
CAMEROTA: What's happening there with his sleeves? It's just all fantastic.
BERMAN: Yes, and she looks --
CAMEROTA: But again -- I mean, I just want to see the full dress. I know that this is this lovey -- OK, let's see this.
BERMAN: Well, when you see the full dress you're not close up on his face. I will say that. So that's what the problem is.
CAMEROTA: Oh, and that's what -- that is what you object to.
BERMAN: Yes, it's one of the problems. Is that -- is that velour?
CAMEROTA: No.
BERMAN: Is he wearing a purple velour jacket?
CAMEROTA: Oh, he might be. He's going to bring velour back. Look at that.
BERMAN: If anyone could bring it back. Like he brought the Patriots back against the Atlanta Falcons from a 28-3 deficit, Tom Brady will bring velour back. That's where you were going with that?
CAMEROTA: It was. Thank you for that analogy.
BERMAN: Oh. Pretty good outfits there.
All right. The big buzz after this week's "GAME OF THRONES" episode is less about what happened and more about how it happened, as in how did a Starbucks cup make the final cut?
Here's Jeanne Moos.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN NATIONAL NEWS CORRESPONDENT (voice-over): The "GAME OF THRONES" gang was guzzling out of goblets, toasting out of horns --
KRISTOFER HIVJU, ACTOR, "GAME OF THRONES": To the dragon queen.
MOOS (voice-over): -- when suddenly, a Starbucks cup? See if you can catch it.
HIVJU: Most people get bloody murdered. They stay that way.
MOOS (voice-over): Sharp-eyed fans --
UNIDENTIFIED MALE: They left a coffee cup in the --
MOOS (voice-over): -- were delighted to spot an icon of the modern world in the wayback fantasyland of Westeros.
UNIDENTIFIED MALE: You're drinking wine but you prefer ale.
UNIDENTIFIED MALE: No.
MOOS (voice-over): Somebody prefers lattes.
Twitter exploded with mock-ups of Winterfell sporting Starbucks signage. A cup was labeled with the many names the dragon queen goes by -- enough to make a barista wonder 'how do you spell that'?
Maybe they were all chugging dragon milk caramel macchiatos.
We kept waiting for President Trump to tweet. After all, when he warned Iran sanctions are coming, he borrowed the phrase from "GAME OF THRONES."
UNIDENTIFIED MALE: Winter is coming.
UNIDENTIFIED MALE: And winter is coming.
UNIDENTIFIED FEMALE: Winter is coming.
MOOS (voice-over): And he borrowed "Game Over" in the wake of the Mueller report.
The hubbub over the coffee finally prompted this tweet from the "GAME OF THRONES" account. "The latte that appeared in the episode was a mistake. Daenerys had ordered an herbal tea."
MOOS (on camera): I would rank this "GAME OF THRONES" gaffe somewhere between grande and venti.
MOOS (voice-over): Will it linger in legend like the watch that movie buffs think they saw a character wearing during the chariot scene in "Ben Hur" or the water bottle spotted on the mantle in a promo photo for "DOWNTON ABBY?"
Maybe the dragon queen looked so pensive because she was figuring out how to order her skinny cinnamon dolce latte in Dothraki.
EMILIA CLARKE, ACTRESS, "GAME OF THRONES": (INAUDIBLE).
MOOS (voice-over): One thing's for sure, some of these gung-ho "GAME OF THRONES" fans don't need any more caffeination.
Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
CAMEROTA: That was amazing. But have we ever gotten a response? Was it a mistake or was it product placement?
BERMAN: I'm just confused --
CAMEROTA: Yes.
BERMAN: -- by all of that. But, you know, Starbucks sits on the iron throne, which is all that really matters.
CAMEROTA: It makes sense.
All right. Up next, big new headlines about what is going on today on Capitol Hill and at the White House. NEW DAY continues right now.
(BEGIN VIDEO CLIP)
MANU RAJU, CNN SENIOR CONGRESSIONAL CORRESPONDENT: The House Judiciary Committee plans to vote on Wednesday to hold Barr in contempt.
UNIDENTIFIED FEMALE: Secretary Mnuchin will not fulfill that request for six years of the president's tax returns.
RICK SANTORUM, CNN SENIOR POLITICAL COMMENTATOR: Democrats are in great peril as they continue to go down this path. It is the president's political advantage to block everything.
UNIDENTIFIED FEMALE: Congress has a strong case here and the White House is stonewalling them at every front.
BRITISH RESIDENTS: Hip hip hooray.
PRINCE HARRY, DUKE OF SUSSEX: Meghan and myself had a baby boy. It's been the most amazing experience.
END
