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Cases Surge To All-Time High As Trump Calls Pandemic Handled; Rio Reopens Bars Despite Brazil Adding 48,000 Cases; Iraq's Coronavirus Cases Skyrocket 600% In June. Aired 6:30-7a ET

Aired July 3, 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]

JOHN BERMAN, CNN HOST: So the President is not just - he's out of touch with reality of what's happening here; even Mike Pence. A forensic analysis of the words used by Mike Pence tells you how much things have changed. Listen.

(BEGIN VIDEO CLIP)

MIKE PENCE, VICE PRESIDENT OF THE UNITED STATES: We slowed the spread, we flattened the curve.

We will slow the spread. We will flatten the curve.

(END VIDEO CLIP)

BERMAN: So the first one was June 18. The other one was yesterday when Mike Pence goes from we have to we will in two weeks. You know there's something major going on.

ABBY PHILLIP, CNN POLITICAL CORRESPONDENT: Yes. There is a real shift happening and the truth is if you're paying attention, you can't deny the reality of what is going on. The hospital - people - doctors at hospitals are telling us that they're seeing more and more patients, that the patients are coming in sicker, that they are experiencing a surge in cases that they weren't experiencing before.

That is not flattening the curve. We clearly have a problem and Mike Pence has in some ways no choice but to accept it. The question is why won't the President? Why won't he acknowledge that there is - that this has not been solved or resolved in this country? It is a counterproductive perspective for President Trump to have because I think a lot of people want to - around the President want him to understand that you cannot just ignore this virus and hope that it goes away.

That his whole - when he's most you know worried about is his political future and his entire political future at this point is wrapped up in how he and his administration handle what goes on over the next several weeks.

ERICA HILL, CNN HOST: Well, what's been clear from beginning if he does not want to lead on this, he does not want to be connected to it, right? Especially if things aren't going well but what's fascinating is there's a part of this that he could embrace, that he cares about the economy. We know that.

We saw what he had to say about the jobs numbers yesterday. There's also the potential to maybe lead a little bit on the economy to put forth some proposals because it's going to be tough for a long time but the President wasn't - doesn't want to get on board with that either, Abby.

PHILLIP: Yes, I mean there have been some mixed messages from the administration about the path forward and what is required next for the country. There's a lot of cheerleading over the slow coming down of this astronomical, really historical unemployment situation that we're in.

And yesterday at the White House, we heard Steve Mnuchin, the Treasury Secretary talking about some - some steps that they would be willing to take including expanding to some extent the PPP, the small business loans but at the same time, I don't get the sense that there is a real acknowledgement of how deep this hole is.

I mean 11 percent or 12 percent unemployment is still astronomical. We're still dealing with a situation where we're finding that for example indoor dining. States like New York and - and elsewhere and California are finding that indoor dining is so dangerous that they have to pull back from the ability to do that.

What is that going to mean for restaurants, for small businesses, all across the country, you really don't hear a discussion of the of - what might - might be necessary in order to keep the country in a place where this virus is under control but people can maintain their livelihood, not be lining up to food banks.

The President just isn't dealing in that level of detail. He just wants to paint a very happy picture about what is going on in the country.

BERMAN: Yes, very quickly of far less importance than the fact that tens of thousands of Americans are getting sick, record numbers of Americans are getting sick, of far less importance is what it means for the President's political future, still it's interesting and confounding in many ways that what he is saying and the way he is handling this might be the opposite of what is politically expedient.

And there are fascinating articles, both in the Washington Post and New York Times, just about the political low for the President and you.

PHILLIP: Yes, the data is so clear, it has rarely been this clear and so stark, how far behind President Trump is Joe Biden and the tie - the tie in between his job performance. People - this country - a majority of Americans believing that the country is headed in the wrong track, that is sort of like the sort of golden number that pollsters look at when they try to determine people's attitudes around incumbents. The wrong track number for President Trump is really, completely

terrible for him and so it's obvious where he stands. The problem is he has not been willing to change his behavior or his approach to the situation which has been as you put it confounding to a lot of people and a lot of Republicans who simply say they want the President to not only change his attitude but to also demonstrate to the American public that he cares about what is going on financially in terms of their health.

And this is also tied up in how Americans feel about how he's handled the environment around race in this country. These are all connected because President Trump has seemed out of touch with where the majority of the country is going and that's a really bad sign for his re-election prospects.

[06:35:00]

BERMAN: Abby Phillip, thank you very much for being with us. Happy almost Fourth.

PHILLIP: Happy Fourth.

HILL: Brazil and Mexico are pushing ahead with reopening, despite spiking coronavirus case numbers in both countries. CNN has reporters worldwide bringing you the latest developments.

(BEGIN VIDEO CLIP)

MATT RIVERS, CNN INTERNATIONAL CORRESPONDENT: I'm Matt Rivers in Mexico City. On Thursday, Brazilian health officials reported more than 48,000 newly confirmed cases of this virus, bringing the country's overall total to nearly 1.5 million but despite that the country is beginning to reopen parts of its economy.

And it was on Thursday that the city of Rio de Janeiro allowed bars and restaurants to reopen with limited capacity. Meanwhile here in Mexico City we watched as some of the city's famous markets were allowed to reopen. This as Mexican health officials Thursday reported, just over 6700 newly confirmed cases.

That is yet another daily record here in Mexico.

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: I'm Arwa Damon in Istanbul. According to the international rescue committee, Iraq is seeing a startling rise in Covid-19 cases. A 600 percent increase during the month of June. Warnings that hospital there could quickly be overwhelmed.

The spike in cases has resulted in a shortage in oxygen with the WHO sending in an additional 300 canisters but great concerns that this country who's medical infrastructure had been decimated by decades of war, corruption and sanctions will be unable to cope with the scale of the crisis.

OREN LIEBERMANN, CNN CORRESPONDENT: I'm Oren Liebermann in Jerusalem where Israel and the Palestinian authority have seen a record number of new cases of coronavirus within 24 hours. For Israel, that number nearly 1000 new cases in a day. For the PA, more than 300.

Both governments have now begun reinstituting lockdowns and closures, putting limits on social gatherings in an attempt to contain the suddenly surging numbers. Up until this point Israel and the PA had been models of containing coronavirus with early restrictions and measures.

All of that is now in jeopardy of being undone.

SCOTT MCLEAN, CNN NATIONAL CORRESPONDENT: I'm Scott McLean in London where the British Education Secretary says that reopening schools as soon as possible is critical to the national recovery from the coronavirus.

The government is planning to make attendance mandatory, come September when schools are fully reopened. Schools will have to keep students from different grades separate in case there's an outbreak which may involve staggering school start times.

Now the government says that it has set aside money to help students make up for lost time. It's also set aside testing kits for schools.

(END VIDEO CLIP)

HILL: A positive jobs report from June but there is growing concern the unemployment crisis could last for years so what does that mean in terms of the stimulus that could be needed? What could it look like? That's next.

(COMMERCIAL BREAK)

[06:40:00]

(COMMERCIAL BREAK)

BERMAN: So this morning U.S. markets are closed after strong week which ended yesterday after a jobs report that once again beat expectations but what do we really know about how American workers are being affected in this pandemic.

Joining us now to discuss, CNN Chief Business Correspondent, Star of Early Start, Christine Romans.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Hi guys.

BERMAN: So you know, Roman it's been quite a week. It was quite a jobs report in a lot of different ways.

ROMANS: I mean you look at the Nasdaq for the week you know, more than 4 percent gain, just strong performance for stocks across the board after a very strong a quarter, the best quarter for the S&P 500 in 20 years and so that's continuing.

And that strong jobs report kind of you know, putting the capping and finishing touch on what has been a really good trend here. The economy reopening. You can see that meant hiring but I want to be really clear about where we are in the hiring here.

We have crawled about a third of the way up a very deep hole. 22.2 million jobs were lost and then 7.5 million have come back here so we're a third of the way through this and as we reopen, right? That risks of resurgence of the virus which could put those job returns in jeopardy.

HILL: And we've been hearing estimates from the CBO too not just about the job numbers but the employment rate in general, just how bad it could be for the next decade and that is sobering.

ROMANS: Yes, the Congressional Budget Office really making it clear that it could take a full decade to completely recover from all of this and get all those people back to work. When you see where the jobs gains have been in the past couple of months, they were the tip of the spear for where we lost the jobs.

You know, in retail and in hospitality and if you have a resurgence of the virus and you have more shutdowns, you could see those jobs disappear again so I think the virus really clouds the outlook here for how strong the recovery will be in the jobs market in the near term.

So one of the things that's interesting is as the pandemic gets worse, discussion in Washington about a stimulus increases. The markets actually seem to like that and so in some ways when the pandemic thinks situation gets bad, Wall Street thinks more money is going to be pumped into the economy. Where our discussions right now about a new stimulus?

ROMANS: And that's one of the reasons why you have had that market up so well because the Fed is pumping money into the economy and there's hope that Congress will continue to do that so the House, Democrats in the House have already passed another $3 trillion in their Heroes Act and now you're starting to see the contours of what another - another effort would look like.

And we heard from Steven Mnuchin. He would like education funding as the Treasury Secretary. He said they were open to that yesterday. Larry Kudlow, one of the President's economic adviser said he didn't think that there would be another $600 in that. It enhanced unemployment insurance in the next part of the - of the stimulus.

The President has said he would like a payroll tax holiday and he said this week that he'd like to have stimulus checks to all Americans, even bigger than the check that Nancy Pelosi and the Democrats have already passed in their version of a - of a Phase 4 of stimulus.

You know the clock though is ticking here because you're hearing the contours of the debate. You know the Republicans would like to see you know, liability limits for companies as they reopen but they don't have much time.

There's an August recess right around the corner here and there's this kind of a feeling that jobs improving and the stock market so high maybe that takes some of the - some of the heat off the discussion. BERMAN: Christine Romans, have a fabulous 4th of July weekend.

ROMANS: You too, you guys.

[06:45:00]

BERMAN: So how are airports going to handle what - what actually could be a surge in holiday travelers over this weekend? That's next.

(COMMERCIAL BREAK)

HILL: Under normal circumstances, today would be one of the busiest travel days when it comes to air travel but how is the new coronavirus spike impacting excuse me, that holiday travel, CNN Pete Muntean is live at Reagan National Airport.

We've seen some uptick but obviously this is nothing like what it would have been, Pete.

PETE MUNTEAN, CNN CORRESPONDENT: Yes, that's right Erica. You know, we'll have to wait and see exactly how busy this typically busy travel weekend will be. What's so interesting is that the airline industry has said the globally, demand for tickets actually tapered off a little bit during the second half of June as coronavirus cases continue to rise.

At TSA checkpoints here and across the country, more lanes will be open the administrator says in order to move people through more quickly but also keep people spaced out in line and reduce exposure for passengers and for workers.

[06:50:00]

Once you're on the plane, you'll have an entirely different experience, a higher chance of being on a completely full flight. American Airlines has joined United Airlines. It's saying that it will sell every seat on board of its flights. A big admission from United actually saying that they're like that blocked out middle seat for making more of a public relations move rather than a public health move.

I spoke United's Josh Earnest about that and he insisted that those who fly this weekend will be safe.

(BEGIN VIDEO CLIP)

JOSH EARNEST, CHIEF COMMUNICATIONS OFFICER, UNITED AIRLINES: It's very, very difficult, if not impossible to socially distance onboard an aircraft. Keeping the seat next you open is not going to make a material difference. What is going to make a material difference is wearing a mask, having a high quality air filter and thoroughly cleaning the plane before you get on board.

(END VIDEO CLIP)

MUNTEAN: The whole idea of filling up airplanes completely drew ire from the head of the CDC on Capitol Hill this week. He called it troubling and disturbing, demanding a review but now we will wait and see if passengers feel the same way. Erica.

HILL: It will be interesting to see. Pete Muntean live for us at Reagan National. Thank you. Some dangerous heat in parts of the country this holiday weekend. Meteorologist Chad Myers is here with your July 4 forecast. Happy early holiday my friend.

CHAD MYERS, CNN METEOROLOGIST: To you too. Hot and humid, I think is the problem. If you get out there and start to sweat to cool down, the sweat's not going to evaporate because the humidity is going to be like wearing a suit out there. It's just going to be so thick.

So storms to the middle part of the country. Temperatures across most of the east coast are going to be warm. They're going to be hot but it is July 4. I woke up this morning and thought how did it get to be July? Honestly, where did the rest of the year go? But here we are, right in the middle of it. Only 14 more days to the peak heat of summer and then we begin to go back down to start to cool off for fall.

I'm not even sure where the rest of the year went. 106 though if you get out there to the west into Vegas. 110 if you're going to be out there in Phoenix in the heat of the day. Now the sun's going to set, the showers are going to tape off, taper off and we are going to see some cooler temperatures around the country.

But well, I think John, if you can stay out of the sun for really today and tomorrow, it would be a good - good idea. Just grab some shade, maybe some place to cool off.

BERMAN: We're non-evaporating sweat Chad, non-evaporating sweat. Now you've given me one more thing to worry about.

MYERS: You don't get that everywhere.

BERMAN: Chad Myers, special delivery. Thank you very much Chad. Have a great weekend.

MYERS: You too.

BERMAN: This morning pressure is mounting for the Washington Redskins to change their name and this pressure coming from a new location really. Carolyn Manno has more in this morning's Bleacher Report. Good morning Carolyn.

CAROLYN MANNO, CNN SPORTS CORRESPONDENT: Good morning John. Well the team's been nicknamed the Redskins since 1933 but that could definitely change in 2020. Money matters and that's what's happening now. This is a conversation that has been reignited many times but FedEx is now joining the call for owner Dan Snyder in the week to change the team's name.

The shipping company, a major sponsor for the franchise, cutting a check for hundreds of millions to own the naming rights to the team's home stadium of FedEx field. That's just outside DC. Other investors are taking note too.

Nike, the NFL's official game day uniform supplier no longer has the team's merchandise available on its online store. The organization changed the mascot, it's leading the fight to change the team's name and the mascot saying that it is racist.

Neither the team nor the companies have responded to CNN's request for comment so far and with coronavirus canceling sporting events across the country, there is one July 4 tradition that will press on. The Nathan's hot dog eating contest is a full go but with some different rules here.

The competition can be held indoors at a secret location. Number of competitors have been reduced. The eaters are going to be socially distant, condition that hot dog legend Joe Chestnut says are very favorable John, for another world record here.

You know he's been known as the Bjorn Borg of Smorgasbord and he is a beacon of light for all of us who have been eating competitively so far in quarantine.

BERMAN: Look, you may not get sick from coronavirus but you could very well get sick. the hot dog eating contest, the added fringe benefits. Carolyn Manno, have a great weekend. Thanks so much for being with us.

MANNO: You too.

BERMAN: The Governor of Texas relenting to this explosive rise in coronavirus cases. Is a state wide mask order too late to stop the increase? We have a live report when we come back.

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[06:55:00]

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ANNOUNCER: This is New Day with Alisyn Camerota and John Berman.

BERMAN: All right, welcome to our viewers in the United States and all around the world. This is New Day. Alisyn is off. Erica Hill with me again. I have to say one hour into the show, you haven't commented on my patriotic July 4 tie.

HILL: It is a lovely, lovely tie, John Berman and I'm glad that you dressed for the occasion.

BERMAN: You didn't notice. You barely look at me. That's what - that's what it's come to.

HILL: Not true. You know we're separate. This is what it is. We don't even get to see each other anymore.

BERMAN: Exactly. All right, we wake up this morning to really sobering news. It took the United States just 24 hours to shatter the record for the most reported cases of coronavirus in a single day. There are new case records in six states. You can see them there. Alaska, Arkansas, Florida, Georgia, Montana and South Carolina. There also record hospitalizations in six states including Texas.

END