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Coronavirus Fears Keep Cruise Ship In Limbo; Dow Drops Nearly 1,000 Points Again; President Trump Again Vows To Cut Social Security. Aired 5:30-6a ET

Aired March 6, 2020 - 05:30   ET



CHRISTINE ROMANS, CNN ANCHOR: The World Health Organization has reported the virus may kill as many as 34 out of 1,000 infected people.

But at a CNN global town hall last night, Dr. Anthony Fauci said that calculation is based on limited information.


DR. ANTHONY FAUCI, DIRECTOR, NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASE: The range is lower than that. How much lower, it's uncertain. Until we have a much more accurate determination of who is infected, including those who are asymptomatic, we will not get a more accurate determination of what the case fatality rate is.


ROMANS: Now, Fauci said the world will need millions and millions and millions of tests for coronavirus and he acknowledged testing got off to a slow start.


The administration's point man on coronavirus responds. Vice President Mike Pence traveled to Washington State yesterday modeling good infection control by bumping elbows with Gov. Jay Inslee instead of shaking hands.

And on the subject of testing, earlier in the week, this is what Pence said.


MIKE PENCE, VICE PRESIDENT OF THE UNITED STATES: Any American that wants to be tested for the coronavirus -- on their doctor's indications -- can be tested.


MATTINGLY: But yesterday, Pence acknowledged what has now become obvious. (BEGIN VIDEO CLIP)

PENCE: We don't have enough tests today to meet what we anticipate will be the demand going forward.


MATTINGLY: Now, Pence now claims 1.2 million testing kits will be shipped nationwide by the end of this week, though actually testing patients will take longer.

ROMANS: Meantime, the World Health Organization is ringing the alarm saying, quote, "This is not a drill. Countries have been planning for scenarios like this for decades. Now is the time to act on those plans."

A WHO doctor tried to ease concerns on last night's CNN town hall.


DR. MARIA VAN KERKHOVE, INFECTIOUS DISEASE EPIDEMIOLOGIST, WORLD HEALTH ORGANIZATION: What is really interesting about this virus is that many countries -- not just China, but China is the largest example we've seen that we can slow this down. This is a controllable virus and that's a really important message. It's not uncontrollable.


ROMANS: The number of confirmed infections worldwide now nearing 100,000, with the death toll over 3,300.

MATTINGLY: The lab tests for 45 people on the Grand Princess cruise ship are expected back today. There are nearly 3,500 people on board and the ship is stranded off the coast of San Francisco. Why? Well, officials refuse to allow it to dock because its last voyage included a passenger who became California's first person to die from coronavirus.

The California National Guard delivered test kits and medical personnel to the ship.

Every passenger has been told to remain in their cabins until further notice and not to expect any frills.


STAFF MEMBER, GRAND PRINCESS CRUISE SHIP: We're in discussions with the CDC regarding time for guests to access the open deck for fresh air and exercise, and we are working to have more details to share with you tomorrow. As you are now aware, we did not offer turndown service this evening as an overabundance of caution.


MATTINGLY: Yes, I think turndown service probably not high on the priority list if you're stuck in a cabin. Now, the death of a 72-year-old man from the Bay Area is now under investigation. He was recently on the same cruise ship.

And Google is now giving its Bay Area employees the option of working from home.

ROMANS: All right. The number of deaths from coronavirus in Washington State rising to 13 overnight. Across the country, there are a total of 228 confirmed cases with 14 deaths. More than half of those deaths stem from a nursing home in Kirkland, Washington.

MATTINGLY: Family members of residents there want answers about the condition of their loved ones.


CURTIS LUTERMAN, SON OF NURSING HOME RESIDENT: I don't blame the staff in here for his incident. What I do blame right now is the response from our government officials. When I was made aware of this Saturday afternoon on my way here to visit my mom, I assumed right away -- OK, when I get here there's going to be CDC trucks outside or people here looking at the visitor list.


MATTINGLY: The Life Care facility says their clinical team is making one-on-one calls to family members. Now, the nursing home has had quote "severe" deficiencies noted in an inspection last year related to infection control.

ROMANS: All right, to the market now. A rollercoaster of a week continued as investors weigh the economic effects of coronavirus and the government response. The Dow finished down nearly 1,000 points, the fifth-worst single-day point drop on record.

I want to show you the last 11 days because, I mean, if you feel like you've been whipsawed you have, although there's a lot more red on that screen --


ROMANS: -- than green.

The S&P and the Nasdaq both closed more than three percent lower. And the 10-year Treasury bond -- guys, this is -- this is a humungous market bigger -- far bigger than the stock market.

MATTINGLY: Far more important than the stock market.

ROMANS: Far more important than the stock market. It fell to an all- time low of zero -- below 0.9 percent. Investors are flocking into safer assets driving down those yields.

Now, the best-performing stock on Thursday, Kroger. It is benefitting as consumers stockpile pantry essentials. Kroger had a good day.


Markets in Asia -- looking at those right now, they've closed -- they have closed lower. And you saw European shares open down as well.

Southwest Airlines CEO Gary Kelly says the outbreak is delivering a gut punch to the airline industry. He says this. Quote, "This isn't economic in the sense that people want to travel but they can't afford to. We could discount prices tomorrow and it wouldn't do any good."

Costco also seeing panic shopping. Sales up there. Starbucks, though, predicts a 50 percent drop in China because of the coronavirus.

So where do we think this Friday of the trading week is going to start? You can see futures headed -- actually, worsening here, Phil.

And I think a lot of people on the 10-year note yield -- I think a lot of people see the Dow and they associate with the Dow because it's -- you know, it's sort of like a barometer for their own 401(k). But really, that bond yield --


ROMANS: -- is telling us something really anxious, I think, about the conditions in the market right now.

MATTINGLY: I think that's what market participants respond to.

ROMANS: Right.

MATTINGLY: You see it in the equities market, but the bond market is what --

ROMANS: That's right.

MATTINGLY: -- dictates kind of how things work and whether things work.

ROMANS: Whether things work.

MATTINGLY: All right.

Social Security and Medicare entitlements are a big campaign issue. Why would the president suggest he's ready to cut them in Joe Biden's native state?



ROMANS: All right.

President Trump is backing away from his promise to not cut Social Security and Medicare. At a Fox town hall in Pennsylvania last night, the president says entitlements are on the chopping block.

(BEGIN VIDEO CLIP) MARTHA MACCALLUM, FOX NEWS ANCHOR, "THE STORY", FOX NEWS TOWN HALL MODERATOR: And if you don't cut something in entitlements, you'll never really deal with the debt.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Oh, we'll be cutting -- but we're also going to have growth like you've never had before.


ROMANS: We've heard that before. Growth like you've never had before hasn't happened.

Just last month, the president tweeted "We will not be touching your Social Security and Medicare."

Democratic front-runner Joe Biden quick to respond. "Here's the deal, folks. Social Security is on the ballot this year and the choice couldn't be clearer. I'll protect and expand it; Donald Trump will cut it and take it away."

MATTINGLY: But, wait -- because Bernie Sanders entered the fray. But instead of going after Trump, he went after Joe Biden, tweeting quote, "Here's the deal. Joe Biden has repeatedly advocated for cuts to Social Security. I've fought my whole career to protect and expand it."

The Democratic contenders had a bit of a back-and-forth -- a bit of a Twitter beef, as the kids would say, before eventually calling it a night.

ROMANS: All right, let's bring in "Washington Post" congressional reporter Karoun Demirjian. She's a CNN political analyst.

And, you know, the third rail of politics -- you know, Social Security -- the president vowed that he would not touch entitlements. And then we heard him when he was at Davos. He said oh, yeah -- no, I'm open to cutting them -- we're going to do that. And he said it again before that -- before walking it back.


ROMANS: And then he said it again last night.

Will the Democrats seize on this because, I mean, this is a powerful election-year message?

KAROUN DEMIRJIAN, CNN POLITICAL ANALYST, CONGRESSIONAL REPORTER, THE WASHINGTON POST: Yes. I mean, they're definitely going to seize on this, especially because you're talking about Social Security affecting a very reliable voting bloc of people who do come out to vote and whose votes are probably going to be in play in many of the swing states. So I think that you will definitely see Democrats seizing on this, holding Trump to what he said even if he switches his message again.

And it's going to be a politically charged battle on the campaign trail. And then, of course, once they actually get to D.C. and have to fight out how to save --

ROMANS: Right.

DEMIRJIAN: -- Social Security and Medicaid and the various funding things, then we'll see what actually happens as people actually deal with what's been a really intractable problem for a very long time.

ROMANS: But even in the banner in that Fox town hall -- I mean, the banner says national debt of 18 percent for this administration -- you know, do you care about the national debt? He had promised that he could eliminate the national debt in eight years --


ROMANS: -- which, of course --

DEMIRJIAN: Which is not happening, right.

ROMANS: -- it just didn't happen. In fact, it's going the other direction but does anybody care -- does anybody care about the national debt?

DEMIRJIAN: Well, I mean, nobody seems to care as much about it --

ROMANS: Right.


DEMIRJIAN: -- as they did before, especially in the GOP. And, I mean, you just see that the Defense budget is expanding rampantly and people are very proud of that.

ROMANS: Tax cuts for companies.

DEMIRJIAN: And yet, the tax cuts are happening -- exactly. And so the math just does not add up to debt reduction right now and yet, it hasn't been something that the debt hawks really have held President Trump to account for successfully. And it doesn't seem like most of the party behind him cares that much about it right now, at least not as much as they did when Obama was president.

ROMANS: Right.

MATTINGLY: Yes, the bizarre world for anybody who lives through, like, 2009 through 2010 -- the Tea Party.

Karoun, I want to -- I want to move over just to the Democratic race for a second because I think one of the most interesting things that happened yesterday was actually scheduling related. And that was Bernie Sanders deciding that he was not going to go Mississippi anymore, which is part of Super Tuesday, too. And instead, he's going to Michigan.

And I think one of the questions everybody has right now, particularly in the wake of Super Tuesday one's result, is Michigan make or break right now for the Sanders campaign in a state they won back in 2016? DEMIRJIAN: I mean, it seems like it is certainly -- if Bernie Sanders is going to be able to make an argument for why he should be the nominee he has to be able to show that he can win in the states that are going to end up being fairly pivotal in the general election. And as well, he seems to be doing better in states like Michigan than -- and generally, he has been performing in the south.

So for him to be able to have a good showing in places where he has said that he's competitive, both in the present and in the long-term, is really important because right now the momentum is primarily behind Joe Biden, who has gone from being in a critical condition a few weeks ago in terms of his campaign to being the front-runner in terms of, I believe, delegates and the popular vote right now.

And so that's a position in which he has the wind at his back and Sanders has to make sure that he can seize that back towards his camp if he's going to keep going in a way that actually poses a real threat to Biden becoming the nominee.

ROMANS: Karoun, Sen. Elizabeth Warren -- she dropped out of the race yesterday. She walked out of her house, you know, with her husband and her dog Bailey and talked to reporters. And talked about, you know, what a -- she didn't endorse anybody but talked about --


ROMANS: -- why she was dropping out.

And this issue of is gender at play in the primary came up, and listen to how she responded.



SEN. ELIZABETH WARREN (D-MA), FORMER PRESIDENTIAL CANDIDATE: If you say yeah, there was sexism in this race, everyone says whiner. And if you say no, there was no sexism, about a bazillion women think what planet do you live on?


ROMANS: She says it's a trap. Asking her that question is a trap. She can't win answering that question. But a lot of people are talking about that subject this morning.

DEMIRJIAN: Yes. I mean, look, she's in an impossible situation to say yes or no because as she articulated, there will be people that attack her for either answer. But, like -- look, is sexism the only reason Elizabeth Warren is not the nominee and in the race anymore, no. But is it -- is it a factor in why she's not, yes. I think it's pretty easy to say yes.

I mean, there are -- there have been many people who have speculated, especially after Hillary Clinton's race in 2016 that the country just isn't ready for a female president. I have heard many people say that who had positive reactions and positive opinions about Elizabeth Warren but chose not to vote for her because that was one of the reasons.

And so, this is just a reality of this being a hurdle that we haven't crossed yet as a country where you have a female candidate who is both the nominee and wins the election, and wins the Electoral College and everything else like that.

And this is a point of I think continued frustration just generally speaking, whether or not you can say that Elizabeth Warren is the candidate that was going to make the decision about whether or not this can happen now --


DEMIRJIAN: -- or in the future.

So it's a mixed bag of an answer because no one person can be the absolute perfect posterchild to everybody of what having a female in the Oval Office should be, but it has clearly inspired the debate. And the fact that Warren was not the only female candidate out for the Democratic primary also has been part of why this has inspired a lot of soul-searching, I guess, on this question in the aftermath of Warren dropping out.

ROMANS: Tulsi Gabbard's still in the race but she's polling --


ROMANS: -- less than one percent, right?


ROMANS: So, I mean --

MATTINGLY: -- technically.

ROMANS: It's a -- it's a fascinating discussion -- it really is, I think. And she's still --

MATTINGLY: The most diverse field ever --


MATTINGLY: -- to two white men in their 70s.


ROMANS: Yes, grandpa and grandpa.


ROMANS: That's pretty good.

MATTINGLY: It's a little-known fact Karoun Demirjian and I were cub reporters and worked together at Congressional Quarterly. ROMANS: Is that true?

DEMIRJIAN: Yes, sat next to each other -- yes.

MATTINGLY: She has only grown more talented and more impressive, while as I stagnated and peaked back then.


ROMANS: I bet you guys can really geek out on following procedure and Robert's Rules of Orders.

All right, thanks so much. Nice to see you.

MATTINGLY: Nice to see you.

ROMANS: Thanks, Karoun. Have a great weekend.

DEMIRJIAN: Good to see you, too. You, too.

MATTINGLY: All right.

A federal judge sharply questioning Attorney General Bill Barr's candor and credibility in his handling of last year's Mueller report. Judge Reggie Walton ordering the Justice Department to let him review the unredacted report in response to a Freedom of Information lawsuit filed by BuzzFeed and a watchdog group.

Now, Walton, who was appointed by a Republican president, called Barr's summary of Mueller's main conclusions misleading, echoing Mueller's own objections at the time. Barr told Congress and the public Mueller found the Trump campaign did not conspire with Russia. Barr also said the Justice Department determined the president had not obstructed justice.

And we'll be right back.



ROMANS: Former President Bill Clinton reflecting emotionally about his affair with Monica Lewinsky back in the 1990s. More than 20 years later, he regrets how it all turned out not just for him, but for Lewinsky.


BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: I feel terrible about the fact that Monica Lewinsky's life was defined by it -- unfairly, I think. You know, over the years, I've watched her trying to a normal life back again, but you've got to decide how to define normal.


ROMANS: Clinton says it was one of many things he did to cope with pressure and disappointments.

MATTINGLY: And, former first lady Hillary Clinton opens up about how devastated she was.


HILLARY CLINTON (D), FORMER PRESIDENTIAL CANDIDATE: I can't believe you lied. You know, it just -- anyway, was horrible. And I said if this is going to be public then you have got to go tell Chelsea.

B. CLINTON: She said, well, you have to go tell your daughter. She said that's worse than me. And so I did that, which was awful.


MATTINGLY: Now, those revelations are from "HILLARY," a new four-part Hulu docuseries that traces Clinton's career and life.

ROMANS: All right, let's get a check on CNN Business this Friday morning. A look at markets around the world -- you can see Asian shares closed down and European markets have opened also down.

On Wall Street, a similar mood here to start the end of the week. In fact, this condition's been worsening over the past hour or so. It's worries about the coronavirus and the reaction from the federal government spurring a selloff in stocks.

The Dow fell 970 points, the fifth-worst single-day point drop on record. All three major averages down more than three percent on Thursday.

And get this. The 10-year treasury yield, an all-time low below 0.9 percent as investors around the world express their anxiety and pile into safer assets.

And that's one of the reasons why mortgage rates have hit a record low. The average 30-year fixed-rate mortgage fell to 3.29 percent. That's the lowest in 50 years. This is according to Freddie Mac. The 15-year fixed-rate, 2.79 percent.

Rates fell after that surprise interest rate cut from the Federal Reserve to help nudge the economy along as the coronavirus outbreak worsens. Some analysts say mortgage rates could have more room to fall even further.

Today's February jobs report expected to show strong gains across the board. Economists expect 175,000 net new jobs last month. The unemployment rate close to a 50-year low of 3.6 percent.


A strong jobs report could help ease concerns over slower economic growth because of this virus, though much of the impact should be seen in next month's job numbers. The outbrook (sic) -- outbreak is likely to hit consumer spending the hardest if people stop shopping, going to movies or concerts. MATTINGLY: And more than 20 million people in the east under a wind advisory this morning. Here's meteorologist Derek Van Dam.


DEREK VAN DAM, AMS METEOROLOGIST: Good Friday morning, Phil and Christine.

For any of our viewers located across the southeast, you know that the past several days have been extremely wet. In fact, our radar- estimated rainfall totals across Alabama into Georgia have exceeded four to six inches in some locations, including the wettest start to a year ever in Atlanta.

Now, the storm system responsible for that rainfall is now moving off the coast but it's also going to combine with low pressure that's dropping out the Great Lakes. So there's still some moisture that's going to be felt today from the nation's capital through Philadelphia into New York -- a few scattered showers and even a few snow showers for the downwind locations across Lake Erie and Lake Ontario.

But again, the rain coming to an end across the south. It will be replaced with extremely strong winds. In fact, over 20 million Americans under a wind advisory today for gusts exceeding 30 miles per hour for Chicago all the way to Atlanta.

Here's a quick look at your temperatures. They're warming up -- that's the good news -- across the east coast.

Back to you.


MATTINGLY: Thanks for that, Derek.

Former Illinois Republican Congressman Aaron Schock is revealing he's gay. During his time in Congress, Schock opposed same-sex marriage. Schock says he grew up in a family centered on faith and tradition and coming out was quote "unwelcome news to every single person in my family." Schock resigned in 2015 after an ethics investigation about his use of taxpayer money for lavish trips and more.

And, JPMorgan CEO Jamie Dimon is recovering from emergency heart surgery. The 63-year-old experienced a tear in the inner lining of his aorta blood vessel. The company says Dimon is awake, alert, and recovering well.

He has been CEO of JPMorgan, one of the largest banks in the world, since 2005 and chairman of the board since 2006.

You're going to want to take a look at this incredible bodycam footage this morning. Two New Jersey state troopers pulling the driver of a burning tractor-trailer from his rig just seconds before it explodes.




NEW JERSEY STATE TROOPER: Go, go, go. You all right? All right, all right -- take him over here. You all right?


MATTINGLY: Unbelievable stuff right there. Officials say Trooper Robert Tarleton interrupted a roadside stop when he saw the tractor- trailer run off the highway in Bridgewater Township. He ran to the truck where an off-duty trooper, Lt. Ed Ryer was already helping. The driver sustained minor injuries.

And American daredevil Nik Wallenda making history in Nicaragua. Wallenda walked a tightrope across the crater of a volcano, known as the Mouth of Hell, with an active lava lake a couple of thousand feet below. No, thank you. He completed the 1,800-foot walk across in 31 heart-pounding minutes.

Seriously, no, thank you. Pretty awesome though.

All right. While you were sleeping, comedians took on Elizabeth Warren's exit and the scramble for her endorsement.


STEPHEN COLBERT, HOST, CBS "THE LATE SHOW WITH STEPHEN COLBERT": Liz, I'm sorry I called you a liar. Please, my heart can't take much more of this. That's doctor's orders.

I guess what I'm saying is you complete me, literally. I need an organ donor.

Biden's not giving up without a fight. Don't listen to him, Lizzie. After all, you are my cousin. Oh, wait, you switched on me. Point is, I want you to endorse me for U.S. Senate. No, I mean that, folks

JIMMY FALLON, HOST, NBC, "THE TONIGHT SHOW STARRING JIMMY FALLON": That's right, two guys in their late 70s are fighting over a woman. It doesn't sound like an election, it sounds like an episode of "THE GOLDEN GIRLS." It's like but Blanche, we had something.


MATTINGLY: No shortage of humor on the campaign trail.

Thanks so much for joining us on a Friday. For Christine Romans, I'm Phil Mattingly. "NEW DAY" starts right now.


UNIDENTIFIED FEMALE: The Air National Guard airlifting coronavirus test kits to a cruise ship off the coast of California.

PENCE: We don't have enough tests today. FAUCI: We're going to need millions and millions and millions of tests.

WARREN: I will not be running for president in 2020.

SEN. BERNIE SANDERS (D), PRESIDENTIAL CANDIDATE: What she fought for in the campaign was far closer to what I am fighting for than what Joe Biden believes in.

REPORTER: Will you be making an endorsement?

WARREN: I want to take a little time to think a little more.

UNIDENTIFIED MALE: She's got a choice -- an alliance with her values or an alliance with the party.


ANNOUNCER: This is NEW DAY with Alisyn Camerota and John Berman.

ALISYN CAMEROTA, CNN ANCHOR: We want to welcome our viewers in the United States and all around the world. This is NEW DAY. It is Friday, March sixth, 6:00 here in New York.

And we begin with high anxiety for thousands of passengers who are in limbo on a cruise ship off the coast of California. Forty-five people on board have been tested.