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New Day

FBI Cracked Terrorist's iPhone without Apple's Help; Coronavirus Pandemic Update from Across the Country; Florida Gyms Reopening; Governors Ready for Sports Return; Mnuchin and Powell on Capitol Hill. Aired 6:30-7a ET

Aired May 19, 2020 - 06:30   ET

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

[06:30:00]

ALISYN CAMEROTA, CNN ANCHOR: In terms of the investigation, the FBI is understandably frustrated that Apple refused to help them unlock the phone, the attacker's phone. And of course we understand trying to balance privacy concerns, but when a terror attack is involved, why won't Apple help investigators?

EVAN PEREZ, CNN SENIOR JUSTICE CORRESPONDENT: Well, I think this is why the attorney general yesterday said, Alisyn, that they're now going to seek legislation to try to force tech companies, like Apple, to be able to answer these subpoenas, to be able to help law enforcement get into these phones. And to be clear, Apple did provide some of the iCloud information to the FBI. The FBI was able to reconfigure one of the phones that the -- that the attacker even was able to shoot into one of those phones and they were able to bring it back to life, so to speak. But it took several months for them to get into this.

He's Chris Wray talking a little bit about what he believes.

Well, Alisyn, one of the last things here is Apple says that they have been helpful to the FBI in this. Again, they provided some of the iCloud information and they say that it's important for people's privacy and security to have this -- this encryption technology that protects people's iPhones. It's going to be something, Alisyn, we're going to have to watch for the months and years to come.

CAMEROTA: OK, that's helpful context, Evan. Thank you very much for all of that reporting.

All right, is it safe this morning to go back to the gym? Up next we're going to speak to a gym owner about the new measures they are trying to keep you safe.

(COMMERCIAL BREAK)

[06:35:34]

CAMEROTA: This morning, we have reporters all over the country to bring you the latest on what each state is doing because by the end of this week all states will be at least partially open. So here are our correspondents.

(BEGIN VIDEOTAPE)

NICK WATT, CNN NATIONAL CORRESPONDENT: I'm Nick Watt in Los Angeles.

The governor of California has just eased and tweaked the criteria that counties are supposed to meet before they're eligible to reopen. Now, 90 percent of this huge state is, apparently, ready to begin getting back to normal. Fewer than half of the counties have pulled the trigger so far, but among them, those counties up around San Francisco that were the first to tell people in this country to stay home and that was 63 days ago.

DIANNE GALLAGHER, CNN NATIONAL CORRESPONDENT: I'm Dianne Gallagher in Atlanta.

Another plant worker from the JBS beef packing plant in Greeley, Colorado, has died. Now, CNN profiled sixty-year-old (ph) Tin Aye earlier this month, a Burmese refugee. She came and worked at that plant for nearly 15 years. According to her family, she'd been on a ventilator with Covid-19 since late March, just one day after her only grandchild, whom she never met, was born. Tin Aye is the seventh meat plant worker from that facility to die. A corporate worker from JBS Greeley has also died, bring the total to eight. More than 300 employees there have tested positive for Covid-19.

AMARA WALKER, CNN ANCHOR AND CORRESPONDENT: I'm Amara Walker in Atlanta.

Ohio's Governor Mike DeWine isn't happy with some reports he's seen over the weekend of customers at bars and restaurants not social distancing. So in response Monday he made an announcement that a large contingent of law enforcement officers and health officials will be conducting safety compliance checks. Now, businesses are required to keep parties at least six feet apart and to keep them seated while they are eating and drinking. Violations could lead to administrative citations that could result in businesses losing their liquor licenses and even criminal prosecution for some business owners. Bars and restaurants with outdoor services were allowed to reopen on Friday.

CRISTINA ALESCI, CNN BUSINESS AND POLITICS CORRESPONDENT: I'm Cristina Alesci in New York.

Stop at an Apple store is going to be dramatically different as the company moves to reopen 500 locations that it closed worldwide as a result of the coronavirus pandemic. The company saying that customers are going to have to wear masks and get their temperature checked. Now, so far, the company has reopened 100 locations worldwide with these changes as well as others, like more frequent deep cleaning and limiting the amount of people in the store. The company also saying that it's going to provide drop-off and pick-up curbside service at certain locations. And a company executive also warned that it will not hesitate to close down locations if the local conditions warrant.

(END VIDEOTAPE)

CAMEROTA: Thanks to our correspondents around the country.

Meanwhile, governors from New York, California, and Texas announcing that professional sports can resume in the near future. When, you ask? That's next.

(COMMERCIAL BREAK)

[06:42:42]

JOHN BERMAN, CNN ANCHOR: This morning, the majority of gyms in Florida are now open. So, what's the scene and what's being done to keep people safe?

Joining me now is John Sanguinetti. He's the co-owner of Powerhouse Gym in Tampa, Florida.

John, great to have you with us this morning.

You opened yesterday morning. So you've been open for about 24 hours. How's it going?

JOHN SANGUINETTI, CO-OWNER, POWERHOUSE GYM: Amazing. Amazing. We opened up Monday morning at 12:00 a.m. We had over 100 people outside waiting for to us open up our doors. It's been a great response. Unbelievable.

BERMAN: You are making people who want to come use the gym sign waivers. Why?

SANGUINETTI: We're looking -- we're trying to be proactive with this. We want to have all of our members, the community and guests, feel safe. And by us being proactive with them being able to understand the waiver, the policies that we are going through this, it's for their protection.

BERMAN: What are you doing specifically to keep people safe?

SANGUINETTI: What we've done is we've set up entrances and exits to the facility, OK, certain areas. We have had signs indicating social distance throughout the whole entire facility. Every other piece of our cardio equipment is at least six to eight feet apart. All of our machines and free weights --

BERMAN: Hey, can I interrupt you, sir? One second, John, can I interrupt you for one second?

SANGUINETTI: Sure.

BERMAN: Can we put the full shot back up again?

I've been looking behind you and I see people behind you, now they're not, but who aren't six feet apart. I mean they are back there in the dumbbell section to the right. I mean, what is being done to keep people apart?

SANGUINETTI: So we have (INAUDIBLE) throughout our facility. I have staff members that are trained to control it, being able to be safe and have the people, again, you know, stay that six to eight feet distance in between people. So it's a little challenging at times, but we're doing the best we can.

BERMAN: OK. And one of the things -- concerns that people have, I know I have, and I'm dying to get back to the gym, is, you know, people grunt. They breathe heavy when they're working the weights. That's a lot of air that comes out. And it's the type of activity, right, that can expel a lot of virus into the atmosphere. So what specifically are you doing about that?

SANGUINETTI: So what we've done is we've added air purification to our system, through our air handlers and air conditioning system that we have installed during this activation of our -- of our time being down.

[06:45:13]

So our air is being purified throughout the entire day and through the evenings too.

BERMAN: What happens if someone in your gym does get sick? I'm not saying they're going to get sick in the gym, but someone who uses the gym you find out has Covid-19 or coronavirus?

SANGUINETTI: So what we've done too, that's part our protocol also too. So we have an area stationed in the back of our facility where we would -- we would escort them to the back of the area, sit down there with them personally, talk to them, and if we need to be, taking necessary actions.

BERMAN: Yes, but what I mean is, if it turns out after the fact if you learn that someone who has been using your gym, will that shut you down again?

SANGUINETTI: That's a good question. From our legal team and for our department that's been kind of researching everything, that will not shut us down.

BERMAN: How come?

SANGUINETTI: Well, again, it's part of our protocol to make sure that everyone, again, does feel safe. So if someone's going to use this facility at their risk, then it's up to them. We're doing everything that we can to make sure everybody is safe. So for them to specifically make us to a point to where they're going to shut us down, it's going to be a very difficult task.

BERMAN: All right, John Sanguinetti, we do appreciate you being with us this morning. We wish you the best of luck going forward. We see people behind you getting their workouts in.

So, thank you, sir.

SANGUINETTI: Thanks again for your time. Have a great day.

BERMAN: You too.

Alisyn.

CAMEROTA: John, to hear how they are trying to handle all of that.

Meanwhile, the governors in New York, California and Texas say professional sports can resume in their states at some point soon.

Andy Scholes has more in the "Bleacher Report."

So, Andy, what does that mean?

ANDY SCHOLES, CNN CORRESPONDENT: Well, good morning, Alisyn.

Well, so, you know, over a quarter of the teams in the big four sports, you know, the NFL, the NBA, the NHL, Major League Baseball, they come from those three states. So the governors saying this is a big step forward to getting all those leagues back in action. California Governor Gavin Newsom, he expects pro sports back in his state in early June, playing, of course, without fans. Earlier this month, Newsom had said it would be hard to imagine a stadium full of fans in his state if there isn't a vaccine.

Texas Governor Greg Abbott, meanwhile, says leagues can apply for approval to hold events without fans on May 31st. New York Governor Andrew Cuomo, he didn't give a timetable for sports to return in his state, but did say he's ready for it to come back.

(BEGIN VIDEO CLIP)

GOV. ANDREW CUOMO (D-NY): Hockey, basketball, baseball, football, whoever can reopen, we're a ready, willing, and able partner. Personal disclosure, I want to watch the Buffalo Bills.

(END VIDEO CLIP)

SCHOLES: Now, this year's men's U.S. Open set to take place at Wing Foot Golf Club in September there in New York, while the women's U.S. Open set to take place in Houston, Texas, in December. But they're not truly going to be opens, Alisyn. The USGA having to scrap that qualifying -- all their qualifying events where the average joe could make it. So for at least one year, Alisyn, your dream of playing in the women's U.S. Open, it's going to have to be on hold.

CAMEROTA: Well, thank you for breaking it to me now, Andy, so I can turn my attention elsewhere.

Thank you very, very much.

SCHOLES: All right.

CAMEROTA: All right, so businesses across the country are desperate for financial help, so why has only a fraction of the stimulus money been given out? Two top economic officials ahead are going to testify this morning before the Senate. So we have details of what they're going to say and what it means for you. (COMMERCIAL BREAK)

[06:52:57]

CAMEROTA: The Dow climbed more than 900 points yesterday after an encouraging announcement about a possible coronavirus vaccine at some point in the future.

And, this morning, Treasury Secretary Steve Mnuchin and Federal Reserve Chair Jerome Powell will testify before the Senate Banking Committee on the nation's economic response to this pandemic.

Joining us now to talk about all of this, we have CNN chief business correspondent Christine Romans.

Christine, great to see you.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Hi.

CAMEROTA: What do we expect when Jerome Powell and Steve Mnuchin testify before the Senate?

ROMANS: Well, we've seen their testimony and so we know that Jerome Powell, the Fed chief, is going to say, we've wiped away a decade worth of jobs gains and we haven't had a recession or a crisis like this since World War II. He's going to say that people have put their lives and livelihoods on pause here to great personal loss and that suffering in the -- in the -- in the -- in the -- for the public good needs to be acknowledge and we need to do everything we can to help these families.

And we'll hear from the Treasury secretary about all that money that has been spent and what good it is doing to help small businesses, to help state and local governments and how they're spending that money. There will be a lot of scrutiny about how they're spending that money.

CAMEROTA: We also want to bring in CNN anchor and correspondent Julia Chatterley.

And so, Julia, you know, people were very interested on Sunday night on "60 Minutes" in what the Fed chair, Jerome Powell, had to say. They got huge ratings. And one of the things that he said, and maybe you can explain this, is that there's more fire power. The central bank has more firepower, there's more that they can do. I mean is this a bottomless well? What -- what was he saying?

JULIA CHATTERLEY, CNN ANCHOR AND CORRESPONDENT: Yes, he was basically saying that the Federal Reserve, backed by the Treasury, can be unlimited in what it can buy, in the cash that it can spend, in the lending programs that it can provide. But there's a difference between that and spending. And that's what Congress does. And that's what Christine was saying about the loans that can go to small businesses, the stimulus checks that can be provided, the unemployment insurance.

[06:55:00] So what we've seen is that the Federal Reserve has stepped in and splashed the cash and we've seen stock markets rise, but the optics of that and the benefits that go to big companies with (ph) investors is very jarring when you still see millions of people losing jobs and worried for what the future looks like. So that's going to be at the heart of the debate today. Yes, the Federal Reserve can step in and do what it's done, but that doesn't negate the need for Congress to step in. And everything we heard on Sunday night is going to be repeated today. Congress, you need to remember you have to do more too.

CAMEROTA: And yet, Christine, I have spoken to several small business owners who have not seen a cent yet.

ROMANS: I know.

CAMEROTA: And, I mean, why isn't the $500 billion of the latest CARES Act getting to the people who need it?

ROMANS: And unemployed Americans who are just now getting their first jobless check. It's been very, very frustrating for so many people. And, you know, the small business owners, those who have even gotten the money are saying they need to have more flexibility in how they use it. They're criticizing how the program was designed. It was too hard to get it in the first place, first come first serve, very clunky. The technology between the SBA and the -- and the banks, the big banks that are doing this lending and the small banks that are doing this lending, and so many of these business owners, especially restaurant owners, they want -- they want to be able to have more flexibility with how they use the money.

Right now, 75 percent of the money, of the loan that they get, must be used for payroll by the end of June, right? About eight -- for about eight weeks' time. Well, they don't think they can hire all their workers back to have that loan forgiven by the end of June, in part because of the same legislation that gave them this PPP also gives expanded unemployment benefits. They are workers who might be getting unemployment benefits are getting more not working than working.

CAMEROTA: Yes, I mean it's just not been easy for them. You know, there are -- there are these various kind of gateways and obstacles that they describe. And so, Julia, is that the same -- the PPP that small business owners are struggling with, is that the same as the CARES Act because the Congressional Oversight Committee -- Commission, which, as you know, has been set up to figure out how this money has been spent, finds that only 37 billion of the CARES Act fund has been spent. There's $500 billion. So a fraction of it has been doled out.

CHATTERLEY: There's all sorts of things going on here. So you've got within the CARES Act a main street lending program scheme set up, which is around $600 billion, to try and get to medium and small businesses. You've got the PPP, which was to target small businesses, but, of course, it got a little bit blurred around the edges there too. They've put up lots of money. The problem is the transition mechanism, getting it into people's hands that been the big challenge. It's also how this money can be used. In the end, all this money was supposed to be about holding businesses steady, keeping workers in the workforce and that hasn't happened.

What needs to be addressed now is to make sure that workers they're on -- that are on those bumped up unemployment benefits are protected when they go back into work, but are incentivized to go back into the workforce too, but also that businesses actually have their hands on the cash and have the time to use it. Right now we don't know what reopening looks like for many of these business. So it's a timing miss match, a flexibility mismatch. And even to your point, Christine, just getting it into people's hands, and, Alisyn.

CAMEROTA: And, so, Christine, it's not too late, right? People who haven't been able to get their hands -- small business owners who need the PPP and, you know, whatever kind of loan, they should still keep trying.

ROMANS: Yes, absolutely. And, you know, and the Fed -- and you're going to hear I think today from the Fed chief how the Feds has promised to work with Treasury to create even new main street small business lending. You know, the Fed directly lending to small business and main street as well. So I think that we haven't written the whole page here on what kind of aid is going to be available. I think you will hear from Jerome Powell today a real push that we need to be thinking of new ways for the next phase of the recovery to get more help for small business.

CAMEROTA: OK, Christine Romans, Julia Chatterley, thank you very much for all of the information. We will be watching, of course, today.

We have a lot of developments on President Trump's defiance of science.

NEW DAY continues right now.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I'm taking it, Hydroxychloroquine. I've taken it for about a week and a half now and I'm still here.

UNIDENTIFIED MALE: There's absolutely no data to support the use of this drug, Hydroxychloroquine, for preventive aspects of Covid infections.

UNIDENTIFIED MALE: I really wish he would use his platform to say, let's all wear masks. The difference that that would make is really substantial.

UNIDENTIFIED MALE: Massachusetts became the 50th and final state to lay out its plan to reopen.

UNIDENTIFIED MALE: We have social distancing, mask wearing, you have to keep six feet apart.

SEN. BERNIE SANDERS (I-VT): You've got 50 states scrambling on their own, each moving in a different direction. Clearly what we need is a national policy. (END VIDEO CLIP)

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

[07:00:03]

CAMEROTA: We want to welcome our viewers in the United States and all around the world. This is NEW DAY.

And this morning, more than 90,000 Americans have been --