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Markets Rattled over Trump; Presidential Line of Succession. Aired 9:30-10a ET

Aired October 02, 2020 - 09:30   ET

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

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[09:33:54]

POPPY HARLOW, CNN ANCHOR: All right, well, clearly, global financial markets are rattled on the news that the president has tested positive for coronavirus. Take a look. The Dow already off nearly 350 points here at the open.

Kevin Hassett is with me, former senior economic adviser to the president, and former chairman of the Council of Economic Advisers in the Trump White House.

Good morning, Kevin.

KEVIN HASSETT, CNN ECONOMICS COMMENTATOR: Good morning, Poppy.

HARLOW: We'll get to the president in a moment. Obviously all of us are hoping for a quick recovery for him and the first lady and the safety of everyone in the -- in the West Wing and at the White House.

Let's begin, though, with markets.

So you've got a mixed close in Asia. You've got Europe down. And you've got our market off 350 points on the Dow right now.

What is -- I mean markets hate uncertainty and that's all they have right now. What are the implications for the markets?

HASSETT: Yes, I think that that's exactly right. And, you know, there was one other case of this that I can remember in history where President Eisenhower had a -- I think it was a heart event and it really rattled the markets until people knew he was going to be OK. I think that there's a chance that that's something that we're going to be looking at in markets for the next week or so as we learn whether he becomes symptomatic.

[09:35:00]

As far as I know, he hasn't yet. And, you know, things that start to look like, well, maybe it's going to be a very serious case.

You know, for the most part, I think that even at his age, most people who get Covid recover relatively quickly and don't have very serious -- unless they have comorbidities, you know, very serious outcomes. And so I think we're going to be watching his health very closely, markets will too, and, of course, they'll respond negatively to bad news.

HARLOW: Yes, maybe -- maybe for a week or two. Let -- again, let's hope he is OK and that the markets do feel reassured as we learn more.

Look, our White House reporter, Kate Bennett, is reporting this morning that staff inside the White House right now are, quote, nervous, they're very careful, but there is, quote, concern. You not only worked in the White House, you had an office in the West Wing.

HASSETT: Yes.

HARLOW: You were working there when two other staffers were diagnosed with Covid.

What are your thoughts this morning having lived through that experience?

HASSETT: Sure.

You know, and, in fact, it's more than just the two that we're -- you know, became public. There were people in the EEOB (ph) as well that had Covid. And I -- I think that the way to think about it, you know, and -- and I -- and I just wish that people would cover it this way. You know, I think it seems like, as I flip around the channels, that there's some places even glee that -- that there are people at the White House sick, is that people understand the risks.

HARLOW: Yes.

HASSETT: When I was in the White House I, you know, got a little bit of flak for -- for saying, hey, I understand the risks. You know, it -- when there's Covid, you know, it's incredibly contagious and that, you know, I'd be safer if I just stayed in my basement, but I'm going to work every day because it's my duty to serve the country.

HARLOW: Right. You said you were scared.

HASSETT: Yes.

HARLOW: Yes. No.

HASSETT: Well, no, I said it's -- I said that it's scary, but you overcome that. You know, I mean, obviously, there are a lot of first responders that are doing much riskier things than going to the White House, but it's a -- you know, the West Wing is a cramped quarters place. If there is Covid anywhere in the West Wing, then it could be that lots of people have it. And people understand that. It's not that they're in denial about Covid, it's that they're willing to take the risks to serve their country. They're heroic to do that. And I think that -- I would say that's true of the journalists who go in every day as well --

HARLOW: Yes. HASSETT: That they're serving their country. They're taking -- they would be safer if they were Zooming, but they go into that White House Press Room to serve their country anyway.

HARLOW: Yes.

HASSETT: So I think that that's the way to think about it. And I've spoken to a number of people at the White House this morning. I've not heard of any other positive tests, thank goodness, so far. But I think that people, again, they're -- they're being heroes. They're going in there when the risks is high. They've been doing that.

If you go back to March, when I started back at the White House, my second trip in, look, we didn't know anything about Covid. And we knew that lots of people in government were getting it, including over at FEMA. And those people were coming back and forth to the White House, even before we had testing. But we went to work every day because there was an emergency and we had to serve our country.

And so I think that this idea that the White House is in denial about Covid and that they deserve to be sick or something, it's just wrong. You know, there are 43,000 people that got Covid yesterday. Those 43,000 people weren't misbehaving. There's nothing immoral about what, you know, what they were doing. It's a contagious disease. It's terrible, you know, and it struck folks.

HARLOW: That --

HASSETT: And I think turning it into a kind of morality play, the way I see people doing, is something that really upsets me because, you know, my friends are being heroic. They're going to work every day, as so are so many first responders all around the country.

HARLOW: Kevin, I want to get your take on what it was like in the building, if you would, in terms of -- you just said cramped quarters. What else? What else makes those in the West Wing so vulnerable?

HASSETT: It's a very -- it's just a very old building. If you look at the floor that Hope's on, she's across the hall from Jared. A door down from Chief of Staff Meadows. A door and a half down from Vice President Pence. And everything is just kind of bunched together in a really old building with windows that most -- for the most part don't open up and so there's not a lot of really good, fresh ventilation.

And so, yes, it's definitely a place where I think that, you know, everybody understands that it's very important to test people before they go in to keep the people safe, but even with all the testing protocols that they have, I got tested every day before I when into the West Wing. I would show up, drive into the driveway, and then go in and get a test before I would even go into the building. And I think that people understood that that was the way to operate because the West Wing is such an old building. It's not -- it's not like an outdoor space where you can expect that ventilation would move the virus away and so on.

HARLOW: A place -- a place where Covid can spread quickly, it sounds like you're saying.

HASSETT: Yes.

HARLOW: And I'm wondering what your colleagues said to you this morning as -- as you've talked to them.

HASSETT: Yes, that's -- that's right. There no -- like there aren't windows that are open. Yes.

HARLOW: Yes. What did your colleagues say to you?

HASSETT: Yes, that's right. And people understand that.

HARLOW: This morning.

HASSETT: Oh, just, you know, every -- that as far as I know, that everybody is just getting back to work. And, you know, they understand the risks, but they want to serve their country.

HARLOW: OK.

HASSETT: And people are getting tested this morning. We'll find out if there are more cases.

HARLOW: OK.

HASSETT: But, so far, I haven't not heard -- I've not heard anything.

HARLOW: Kevin Hassett, thank you very much for being with us.

HASSETT: Thanks, Poppy.

HARLOW: We'll be right back.

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[09:44:12]

SCIUTTO: This just in to CNN.

A White House official describes President Donald Trump's condition now as having, quote, mild symptoms of coronavirus. This, of course, after the president announced on Twitter last night that he and the first lady have tested positive. This reporting comes from our Jim Acosta. Of course the difference between a symptomatic response to this and an asymptomatic response, potentially significant. We'll stay on top of all the latest news.

HARLOW: Also, House Speaker Nancy Pelosi, just moments ago, spoke with our colleague Lauren Fox on Capitol Hill.

Let's play that tape.

(BEGIN VIDEO CLIP)

LAUREN FOX, CNN CORRESPONDENT: Well, when did you find out the news about the president and his family yesterday and what extra precautions are you taking as the speaker of the House to ensure your own safety?

REP. NANCY PELOSI (D-CA): Very early this morning the news came that the president and the first lady had tested positive for the virus.

[09:45:03]

I pray for them all the time, including last night. So this was just a continuation of more prayers for their safety and their health and well-being.

They will have the best of care, and that's a good thing. And, hopefully, this will be a message to the rest of the country, though, that you have to wear your mask, you have to be tested, you have to -- we have to have the funding for testing, tracing, treatment. We have to have people wearing masks, engage in sanitation and social distancing. That is not what -- what the White House was engaged in. Now hopefully they will send a different message to the country, or even if they don't, that it will be a lesson learned by the rest of the country.

But, again, the -- this virus has affected so many families, over 209,000 people already have died. You know the staggering numbers of people infected. And that -- that's a tragedy for every person and every family affected and we want them to have the access to the health care that they need in order to fight it, as we do.

FOX: What precautions are you going to be taking? Have you been tested this morning?

PELOSI: An abundance of test -- of caution. I was tested this morning because I've had meetings with Secretary Mnuchin and the rest. He put out this morning that he tested negative this morning, so that was good. But he gets tested every day because of his contact with the president. And that works well for the rest of us that were in touch with him. So he again was --tested negative.

We have to subject the testing though to some judgment about what -- you know, how -- how accurate are they and have to be closer to over 80 percent accurate so that we can trust the testing. And, obviously, there was some not so accurate testing done on Hope Hicks. We'll find all of that out.

So, yes, I did. And we do have our office of -- the official physician of the Capitol is in touch with the District of Columbia, who -- which is -- they manage this under the auspices of each other. And they have a tracing protocol in the words of the office of the physician does.

FOX: CNN has reported that a small circle of aides at the White House, they were aware that Hope Hicks has -- had tested positive yesterday morning and yet the president still proceeded with the events of his day. What do you make of that kind of judgment being carried out by the president?

PELOSI: Well, you know, what I want now is for us to worry about the rest of the country. I think that's most unfortunate. I don't know all the facts involved there, so I won't speak it to. But I think that there was some poor judgment involved.

However, I will say that maybe the blessing of all of this, as sad as it is, and as hopeful as we are that this will be dealt with quickly as far as the president and first lady and others, Hope Hicks as well, that the rest of the country has to know that even with the precautions taken surrounding the president, that people are susceptible so that they should ignore the, shall we say, mocking of masks and wear masks, that they should keep their distance and not go to events that are packed with people unmasked without social distancing and laughing at the fact that other people are wearing masks.

My understanding at the debate, it was like the -- a wedding, Democrats on one side, Republicans on the other. That -- that's unusual. I've never been to a debate that was that way. But on one side, everybody had a mask. On the other side, practically nobody -- anybody had on a mask.

FOX: Have you talked to Joe Biden's campaign? Are they taking any additional precautions given the fact that they were in the same place with the president just a few days ago?

PELOSI: Well, they're addressing that. But understand this about Joe Biden and Dr. Biden and their -- our vice presidential candidate, Kamala Harris, they have always taken precautions. This is not news to them that this is a deadly virus that can spread in an airborne way. So they will, obviously, continue the protocols that they have in place all along. And, yes, addressing the fact that they were in that same proximity with the president.

I don't want to announce any of their plans, but anyone who was that close up for that length of time with the -- with someone who's been diagnosed has to take other precautions. And they'll be making their announcement.

But it's -- nothing changing what they're doing because they have been doing it all along. Maybe people will understand it better and the president won't be mocking it as we go along.

[09:50:04]

But, again, let's just hope and pray that because by (INAUDIBLE) of age and pre-disposition (ph), whatever it is, the president is venerable and we hope and pray that people get through this. And, you know, they're all different versions of the story when you get diagnosed.

So I was tested this morning. I don't have the result. But the doctor had said if the -- Mnuchin tests negative -- excuse -- negative, that's good, then there's not an imminent need for you to be tested. But as an abundance of caution, I did so.

FOX: And that's the only person from the White House that you have been in the room with in the last several days? PELOSI: Yes.

FOX: OK.

PELOSI: Well, he and his aide, but he is the one that is in the room --

FOX: Right. Yes.

PELOSI: In the room with -- with the president.

But, again, let's just take it as a prayerful moment for our entire country.

The mask I have today was, just by coincidence, is one my colleague, Susie Lee (ph), gave me. Her sister gave me. It's faith, hope and love. And let us -- let's have faith and the love of all of us to give us hope that we can overcome this working together. And as sad as the diagnosis is that the president and first lady have, maybe it is the trend -- the pivotal moment to take us to a different place as we fight this vicious virus based on science, not on politics.

FOX: Thank you so much for your time. I appreciate it.

PELOSI: Thank you.

(END VIDEO CLIP)

SCIUTTO: That, the speaker of the House, of course, Nancy Pelosi, speaking with our colleague, Lauren Fox, on The Hill. She said that if there's a blessing in this, and that is that the infection can be dealt with quickly for the president and for the first lady and also for the country, she notes that this may remind people that everyone potentially is susceptible to this, even with the precautions taken for the president.

We're going to discuss a lot of news this morning, all the implications of this right after this short break.

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[09:56:27]

SCIUTTO: Welcome back.

While the world is watching the president's positive Covid-19 diagnosis, that means America's adversaries are, North Korea, Russia, China, Iran.

Joining me now, former assistant secretary at the Department of Homeland Security, and CNN national security analyst Juliette Kayyem.

First, I want to begin on the question of the 25th Amendment. We're far from there. But just so that folks understand the legal standard for a president temporarily perhaps handing duties off to the vice president, next in line of succession, what is that standard? Is it severe illness? Is it hospitalization? Or is it not clear?

JULIETTE KAYYEM, CNN NATIONAL SECURITY ANALYST: Yes, it's -- it's a path -- it's not clear. It's incapacitation generally or it would be that, you know, as President Bush had done, you would be under anesthesia, in other words, your incapacity to be competent. So most presidents who are healthy but have to go under would then write a letter of transfer for a short period of time.

We're not there yet. We certainly don't think we're there yet.

But there are processes in place to deal with this transition between a president and a vice president. And those -- you know, those -- we should have confidence in a good way that the systems of transition, from continuity of operations and government and transition of presidents are actually systems that have been thought through, tested and understood. It just depends on what the president's health is right now.

SCIUTTO: OK, let's look at the playing field right now.

KAYYEM: Yes.

SCIUTTO: U.S. adversaries were also -- already watching the U.S. response to the coronavirus and, frankly, unsuccessful response to the coronavirus.

KAYYEM: Yes.

SCIUTTO: Now you have the commander in chief infected, according to our Jim Acosta, showing symptoms of this, given his age, et cetera. Do North Korea, Iran, Russia, China, do they look for opportunity to take advantage?

KAYYEM: Yes.

SCIUTTO: And what does the U.S. then do in response to that concern?

KAYYEM: They will certainly look at an -- sort an opportunity to take an advantage, but it's not clear at all right now whether there's an opening. So how I think about it is, first, just the distraction issue, right? We have a president -- let's be clear here, we have an entire White House, an entire leadership from the Senate to the president now focused on something else. So this is just the gap in leadership that we have right now because they're focused on something else.

Symbolically, we are in a worst place because two days ago our adversaries, as well as our allies, saw a nation brought to its knees because of its horrible Covid response, so much so that we couldn't even visit our allies. We're not allowed to travel. And it said something about our resiliency and our capacity to essentially rebound. In that gap, countries like China sort of take hold and go forward and other nations align with them.

So I think it's both the symbolic side and then also just the -- the times side. We are a distracted nation. SCIUTTO: Yes.

KAYYEM: We feel -- we -- we're a nation that doesn't -- that doesn't have a center right now and they take advantage of that.

SCIUTTO: Juliette Kayyem, something to watch very closely.

KAYYEM: Yes.

SCIUTTO: We will continue to watch. And often in situations like the U.S., like this, the U.S. will make a show of force, right --

KAYYEM: Yes.

SCIUTTO: To show that it is in charge, fly B-52 bombers, whatever, and there's precedent for this.

Juliette Kayyem, we appreciate your analysis.

KAYYEM: Thanks, Jim.

ANNOUNCER: This is CNN breaking news.

HARLOW: Major developments overnight. If you're just joining us, we're glad you're here.

I'm Poppy Harlow.

SCIUTTO: And I'm Jim Sciutto.

News this morning, to say the least, the breaking news this morning, the president and the first lady have tested positive for Covid-19. We now know that he appeared tired and hoarse on Thursday.

[10:00:02]

This from White House staff and a White House official telling our Jim Acosta that he is exhibiting, the president.