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Racism, Xenophobia on Rise as Coronavirus Spreads; Vice President Pence Right Person to Head Coronavirus Response?; Democrats Fan Out Across South Carolina, Super Tuesday States; Markets Plummet Again on Coronavirus Fears. Aired 3-3:30p ET

Aired February 27, 2020 - 15:00   ET

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

BROOKE BALDWIN, CNN HOST: In Congress, members on both sides of the aisle are vowing to be ready, even as top Democrats criticize the president's actions to this point.

[15:00:05]

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D-CA): Unfortunately, up until now, the Trump administration has mounted an opaque and often chaotic response to this outbreak.

We're coming close to a bipartisan agreement in the Congress as to how we can go forward with a number. That is a good start. But we don't know how much we will need, hopefully not so much more, because prevention will work. But, nonetheless, we have to be ready to do what we need to do.

(END VIDEO CLIP)

BALDWIN: Wall Street giant Goldman Sachs today is warning the spread of the coronavirus could wipe out corporate profit growth for all of 2020.

Goldman analysts going so far as to say U.S. companies could see zero profit growth this year.

Greg McBride is a senior financial analyst over at Bankrate.com.

So, Greg, thank you for being on with me.

And when you hear that from Goldman, zero growth, what's your assessment?

GREG MCBRIDE, SENIOR FINANCIAL ANALYST, BANKRATE.COM: Well, you know, a year ago, we were all worried about the trade dispute and whether that was going to tip the economy into recession. Turns out that didn't.

There's a lot of unknowns regarding the coronavirus, unknowns in terms of how widespread it's going to be, what the impact on the economy is, and the magnitude of that. And in the face of uncertainty, you know, that's where the risk comes in.

You know, that's why you're seeing the type of volatility that there is. And if it continues, there's a risk that consumers start to retrench on their spending, and then that's when the risk of recession would certainly grow.

BALDWIN: That's -- you read my mind. I'm wondering what effect this would have on consumer spending, the effect on corporate America, and then you mentioned it, the R-word.

MCBRIDE: Well, everybody's trying to assess what the worst-case scenario would be, because market corrections are very normal. What's abnormal is the coronavirus.

It's new. It's uncharted waters in many cases. And so, you know, everybody's trying to connect the dots and just see what's the worst- case scenario, what could happen?

And the fact is, we don't know and we won't know definitively for some period of time. I think, as a consumer, you know, and as an investor, you just kind of have to hang in there, buckle your seat belt, because it is going to be volatile in the markets.

But the underlying fundamentals of the economy are good. Unemployment's low, people are working, and people are spending. And even if we start to see people staying home a little bit more, something tells me online shopping's going to do OK.

BALDWIN: I hear you saying buckle your seat belt, but as we have been highlighting, you know, looking at the markets this past week, this is the lowest it's been since 2008, the financial crisis.

And so for people thinking about their own investments, right, and they're seeing these numbers, what say you?

MCBRIDE: Well, it's the sharpest drop that we have seen seasons the financial crisis. The market has basically gone down 10 percent since a week ago Wednesday.

But this basically takes us back to where we were in the middle of last year. So, you know, we have had a market that's been on quite a run. We really got spoiled in 2019 with a lack of downward volatility.

Like I said, although the coronavirus itself is novel, we don't know a whole lot about it, we do know a whole lot about market corrections. They are normal. They do happen regularly, and the investors that make money in the long run are going to be those that have the discipline to hang in there and the fortitude to buy more.

BALDWIN: OK.

Greg McBride, thank you very much on the financial piece of this.

On the health piece, CNN senior medical correspondent Elizabeth Cohen is with me now.

And let's talk about this patient in California. You have more details on the patient who officials say could be an example of what they're referring to as a community spread. What does that mean, and what do we know about this patient?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Brooke, this patient is a real turning point. This is definitely something different. Haven't seen this before.

Let's talk about what we have seen. The cases that we have seen in the U.S., they're either travelers coming in from China or Diamond Princess patients, or they're close contacts, like very close contacts, like spouses. Nothing beyond that.

What we're seeing now, this woman who's now at U.C. Davis Hospital in Northern California, she did not travel to China or any other coronavirus hot spot, and she did not have close contact that she knows of with anyone who had been in China or a hot spot.

And so that's really important. We don't know where she got it. The concern is that this is going to happen more. That's what community spread is. And so you don't know where you got it. When you get the flu any given winter, you don't know where you got it, probably. You just got it, you know, from a colleague or a family member, or someone you sat next to on a bus. Who knows.

And so that's what they think they're facing.

One of the concerns this has brought up, Brooke, is that the U.C. Davis hospital on February 19 asked for a test. It took four days for the CDC to order a coronavirus test, another four days to get the reports.

The CDC lab in Atlanta has been the only place doing this, and there has been concern, because there's only so many that they can do. And so that's a real concern here.

[15:05:05]

BALDWIN: All right, Elizabeth, thank you.

Sadly, the spread of coronavirus is also leading to an increase in anti-Asian sentiment, from physical attacks to customers avoiding restaurants.

Today, the secretary of the Health and Human Services addressed the problem during a congressional hearing.

(BEGIN VIDEO CLIP)

ALEX AZAR, U.S. HEALTH AND HUMAN SERVICES SECRETARY: We must ensure nobody's discriminated against based on ethnicity. Ethnicity is not what causes the novel coronavirus.

REP. JUDY CHU (D-CA): In fact, will you affirm that racial stereotyping is not an effective way to prevent the spread of COVID- 19?

AZAR: That is absolutely correct.

(END VIDEO CLIP)

BALDWIN: And these incidents have prompted fashion designer Phillip Lim to speak out in this heartfelt Instagram post.

Let me just read part of what he wrote -- quote -- "The coronavirus is not a foreign threat, but a human one. Racism and xenophobia targeted at Asian communities will not protect us from a virus that does not discriminate based on race, gender or color."

And Phillip Lim is with me now.

A pleasure to have you here.

PHILLIP LIM, FASHION DESIGNER: Thank you.

BALDWIN: What possessed you to write that? That had to come from something.

LIM: Yes.

Well, first, thank you for having me on, Brooke.

BALDWIN: Yes.

LIM: It's a couple things. I'm part of the community, the Asian community.

And it is A -- this issue of xenophobia and violence is affecting people that I work with. Yesterday, a colleague of mine, her son in middle school was attacked with racial slurs and got in a fight with kids teasing about being Asian and go back to where you -- go back to your country.

BALDWIN: Oh.

LIM: Asians are dirty.

I work with Apex for Youth for non -- not-for-profit, to serve underprivileged Asian teens. And they're having to workshop groups of teenagers on how to deal with this rise in xenophobia and racism towards them.

The video that's been floating around of this elderly man -- elderly Asian man in San Francisco being assaulted and harassed to the point of breakdown, you know, that hit too close to home, and that hit -- in that moment, his face and that human fear, I hope everyone can connect that.

That could be your father, your uncle, your brother, your family member, and enough's enough.

BALDWIN: What has the response been to your post? LIM: It's been overwhelming, you know what I mean?

The lesson is, we can't let a few bad bunch, you know, take us back and divide us. This virus is not an Asian one. It is not based on race, gender or color. It is a health and human one.

You know, right now, what we need to do is band together. We need to stay calm. We need to unite and combat the virus and not each other. And it's really the outpour of support from just community, fashion and beyond, even being on CNN right now. It's incredible to me.

It's very heartfelt. And Asian communities right now need this more than ever. We need the support.

BALDWIN: The fear is that this get worse before it gets better. What is your message to Americans and also the Asian community?

LIM: Yes. Stay calm. Let's gather the facts. Let's unite. Let's employ empathy and love. Let's support communities. We are all part of beautiful, diverse communities that can really get through this together.

And, as for me, it's really right now think about -- put yourself in the other person's shoes, and employ empathy. We pass around this hashtag. It's really love, unity, community.

BALDWIN: You were saying to me a second ago how this is the time you want to tell people to go to those Asian-owned restaurants, spend your money, support them.

LIM: Yes. Yes.

Right now, you know, it's quite unknown where this -- the virus will appear, so it's so important in Asian communities right now that you don't have that fear of going in there. Of course, practice some awareness and practice common sense.

BALDWIN: Yes.

LIM: Hygiene and whatnot. But don't let this prevent you from going into communities that, you know, have served you prior to this.

It's time to support Asian-owned businesses, restaurants, and if you are -- you can't go into the physical space, online, you know what I mean? Like, order takeout. Like, shop online. It's so important, and we need your support right now more than ever, please.

BALDWIN: You have a voice. I appreciate you dropping everything today to come to CNN to use it.

Phillip Lim, I appreciate it very, very much.

LIM: Thank you so much.

BALDWIN: Very much.

LIM: Thank you.

BALDWIN: At least three people on a U.S. base in South Korea have now tested positive for coronavirus, a place where 30,000 American troops currently live.

Just ahead, we will take you around the world as our CNN correspondents track the global impact.

And Vice President Pence is now the point man for the U.S. response to this disease, but there are some major questions being raised about how he handled health crises when he served as governor of Indiana.

And we're live in South Carolina, where Joe Biden is banking on a primary win on Saturday. There are new indications this race could end up in a contested Democratic Convention.

[15:10:07]

You're watching CNN. I'm Brooke Baldwin. Back in just a moment.

(COMMERCIAL BREAK)

BALDWIN: We're back. You're watching CNN. I'm Brooke Baldwin.

The next couple of days critical to the 2020 presidential campaign. This Saturday, South Carolina votes, offering a pivotal showdown between Joe Biden and Senator Bernie Sanders.

But, then, just three days later, it is Super Tuesday, as 14 states go the polls, all the way from Maine to California to Minnesota to Texas. In all, Super Tuesday tees up a whopping 1,357 delegates. That is a third of the total delegates the Democratic primary.

[15:15:00]

Just by comparison, South Carolina offers up 54.

And that is why candidates like Elizabeth Warren, Mike Bloomberg, Amy Klobuchar aren't even scheduled to step foot in South Carolina today. Bernie Sanders is trying to have it both ways. He will be there later, but he's also campaigning today in Virginia and North Carolina.

Clearly, he is hoping to capitalize on all his momentum.

(BEGIN VIDEO CLIP)

SEN. BERNIE SANDERS (I-VT), PRESIDENTIAL CANDIDATE: Now, the reason we won the caucus in Iowa, the reason we won the New Hampshire primary, the reason we won the Nevada caucus, the reason we're going to win here in North Carolina is because we have the strongest grassroots movement of any campaign in modern American history.

(CHEERING AND APPLAUSE)

(END VIDEO CLIP)

BALDWIN: CNN's Abby Phillip is live in Greenville, South Carolina.

And, Abby, you have been at this Pete Buttigieg event. What are you hearing as all these campaigns have to consider two important votes so close together?

ABBY PHILLIP, CNN WHITE HOUSE CORRESPONDENT: It's a real balancing act, Brooke, here in South Carolina, as the candidates try to both campaign here on the ground, which is a very important state.

It is one of the first two of the most diverse electorates that we have in this nominating contest. And it's the electorate where African-American voters are going to have their say.

So, while they're doing that, they're also trying to campaign and keep their head above water in these Super Tuesday states coming up right on its heels.

What's interesting right now, I think, in South Carolina is the story of Joe Biden. This has been the place where he has said he is expecting to do the best. He is using this as a springboard for his campaign.

The question is, what will that actually look like? Will he have a significant victory in this state? He has promised already that he will win South Carolina. The question is, how big will that win be?

And for a lot of the other candidates, the question is, how far in the back of Joe Biden do they come along? For Bernie Sanders, who just came off a Nevada win, I think his campaign feels pretty good that they can -- they're making progress in South Carolina.

The question is, how close does he get to Biden? And for other candidates, like Pete Buttigieg and like Amy Klobuchar, there are some big questions about their ability to appeal to African-American voters.

Buttigieg is here in Greenville at a church right next to me, where he's having a roundtable. Many people at this roundtable are African- American voters. He's struggled here in the state to appeal to them.

But his campaign says they believe they are still making progress. And I think what you're hearing from a lot of the campaigns is, they are looking forward, they're looking to Super Tuesday and even beyond.

The signal we are getting from a lot of these campaigns is that they are not -- you should not look for any of them to drop out after what happens in South Carolina. They're continuing on, fighting for those delegates, and the fight is really about trying to prevent Bernie Sanders from mounting -- from accumulating an insurmountable lead in delegates.

And I think that's why you're seeing all of these campaigns really saying, we're in it for the long haul -- Brooke.

BALDWIN: Speaking of fighting and being in it for the long haul, Elizabeth Warren, she says she's going to fight it all the way to the convention floor.

Listen to this.

(BEGIN VIDEO CLIP)

SEN. ELIZABETH WARREN (D-MA), PRESIDENTIAL CANDIDATE: And I make my phone calls, as other candidates do.

And phone calls I make are to people who have pitched in $5 or $25. And as long as they want me to stay in this race, I'm staying in this race. That, and I have done a lot of pinkie promises out there, so I got to stay in this. I have told little girls, we persist.

(CHEERING AND APPLAUSE)

(END VIDEO CLIP)

BALDWIN: It's all about the pinkie promise.

She is way behind in the delegate count, though, Abby. So, what is her strategy?

PHILLIP: Yes.

Well, I think Elizabeth Warren, more than perhaps any other candidate, has seen what can happen if you have strong moments in this race. She had a strong debate right before Nevada. And that has given her campaign hope that she can rebound in some of the Super Tuesday states and the states that come later.

But what you're seeing from the rest of the Democrats in this field, with the exception of Bernie Sanders, is that all of them say, we should follow the rules as they are written, and the rules say that if you come into the convention with a plurality of delegates, that you don't necessarily get -- you don't get coronated as the nominee at that point.

That gets worked out at the convention. And so I think what she is saying is that she's going to continue to stay in the race, accumulating as many delegates as she can, so that she can go into that convention with leverage.

She is not the only candidate to have that position. And I think it could make for an interesting next few months, and certainly potentially for an interesting convention, if that is, in fact, how this whole thing goes -- Brooke.

BALDWIN: Oh, boy, oh, boy.

Abby Phillip in South Carolina, Abby, thank you.

Coming up next: House Speaker Nancy Pelosi calls the president's response to the coronavirus chaotic. The president calling her incompetent.

A look at how the politics could get in the way of the critical government response to this health crisis.

(COMMERCIAL BREAK)

[15:24:56]

BALDWIN: The office of the vice president has just announced additional members to its coronavirus task force.

[15:25:00]

And while the vice president, Mike Pence, will spearhead the response team, House Speaker Nancy Pelosi said that she is concerned about the vice president's past response to infectious diseases while he served as governor of Indiana.

(BEGIN VIDEO CLIP)

PELOSI: I expressed to him the concern that I had of his being in this position, while I look forward to working with him, about his -- when he was governor of Indiana slashing the public health budget.

It's also that respect for science, for evidence-based decision- making, and it's about having so much of that talent that we are so proud of in our public health sector be available in other countries, so that we can get a true, a true, accurate -- a true and accurate assessment of what is happening in other countries.

(END VIDEO CLIP)

BALDWIN: And the vice president appeared to respond to that criticism today at CPAC.

(BEGIN VIDEO CLIP)

MIKE PENCE, VICE PRESIDENT OF THE UNITED STATES: While the risk to the American public remains low, as the president said yesterday, we're ready. We're ready for anything.

As the president also said, it's important to remember we're all in this together. This is not the time for partisanship.

(END VIDEO CLIP)

BALDWIN: Let's talk about all of this.

With me now, CNN chief political analyst Gloria Borger and Laura Ungar. She served -- or she covered Mike Pence and his 2015 response to an HIV outbreak in rural Indiana. She is now a Midwest editor and correspondent for Kaiser Health News.

So, ladies, welcome.

And, Laura, I just wanted to begin with you, because President Trump cited the vice president's experience, right, with health care when he announced his appointment, but some of the decisions he made were considered pretty controversial. Explain what happened. LAURA UNGAR, KAISER HEALTH NEWS: Yes.

So there was a very large outbreak in -- centered in Austin, Indiana, which is a very small city in Southern Indiana, where they back -- five years ago, they had 26 confirmed cases of HIV in an area that had seen less than a handful in a decade.

And he -- at the time, the state did not allow syringe exchanges, and he supported that ban on syringe exchanges. And it took 29 days from the public announcement of the outbreak until he signed an order for a limited syringe exchange in Scott County, Indiana.

So, a lot of folks say there was basically a delay, and in that time many more cases came up. There were actually 79 by the time that--

BALDWIN: Yes, and there are other questions about, you know, calls he made or things he's written in his past. I want to come back you on that.

But, Gloria, as they say, there is a Trump tweet for everything. So, a lot of attention is being paid to this 2014 tweet from the now president. He wrote: "The new Ebola czar will report to the White House and NSA adviser Susan Rice. More mismanagement and duplicity with CDC. Obama is terrible executive."

Is this not exactly what President Trump did yesterday?

GLORIA BORGER, CNN SENIOR POLITICAL ANALYST: Almost exactly, except the person that everybody reports to is not the national security director. It is -- or the national security adviser. It is the vice president of the United States.

And what the president has done is getting a group of people together who generally agree with him politically on these things, and he's made sort of the message-making in his own image and put science, it seems to me, a little bit over to the side.

I mean, "The New York Times" is reporting just now that Tony Fauci, who has been speaking about infectious diseases for presidents over the last three decades, Republicans and Democrats, has been told that he can't go and speak about this unless it is cleared by the White House.

So what this is -- what they're trying to do is coordinate a message, because there was a sense from the president that the scientists were too not upbeat. They were talking -- using words like pandemic, which, of course, the president didn't want them to use.

And so now he has it coordinated, but not about science, just about P.R.

BALDWIN: These scientists, these top medical minds referring to, you know, evidence-based data and decisions.

BORGER: They're not the spokesmen, right.

BALDWIN: I want to flag this, Laura, coming back to you, because when Mike Pence was running for Congress back in 2000, he wrote this op-ed.

And, in part, he wrote this: "Despite the hysteria from the political class and the media, smoking doesn't kill."

And I think everyone knows that -- here's the statistic. The American Cancer Society says more than 480,000 people in the U.S. die from illnesses related to tobacco use each and every year.