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At This Hour

Dow Plunges 400 Points; Trump, Bush Dueling Videos; Texas Deputy Suspect Found "Mentally Incompetent" in 2012. Aired 11-11:30a ET

Aired September 01, 2015 - 11:00   ET

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

[11:00:00] CAROL COSTELLO, CNN ANCHOR: AT THIS HOUR with Berman and Bolduan starts now.

JOHN BERMAN, CNN ANCHOR: Brace yourselves for ugly. The Dow plunging 400 points right after the open. A new hit to your 401K and new fears for this fragile market.

So if they fight like this over the Internet, what will they do at the CNN debate? Donald Trump, Jeb Bush, they drop the gloves. New dueling videos you have to see.

Plus, she did the impossible. Her drawing made Tom Brady look not perfect. But after backlash, she is back in court. Did she redeem herself? She joins me live with her new sketch.

Hello. I'm John Berman. Kate Bolduan is off.

Breaking news, the Dow diving. Whatever badness that is in the system is still there and it is getting worse. At one point, the Dow was down 400 points this morning. You can see down 330 points right now. Markets in Asia took a hit. Europe also down.

CNN business correspondent, Alison Kosik, on the floor of the exchange.

Alison, break it to us gently.

Alison Kosik breaking it so us so gently, we don't even have the audio. That's just how bad it is down on the market.

Luckily we can tell you what's going on there. With me in the studio, CNN's chief business correspondent, my "Early Start" colleague, Christine Romans.

(CROSSTALK)

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: It looks better with the sound off.

BERMAN: It looks better with the sounds off.

(LAUGHTER)

With the sound, it's downright awful. The market down to 330. The Dow Jones Industrial Average, this is off the worst levels of the

morning but this is a 2 percent decline for the Dow. Over the past year, we're down 5 percent. You're back to the levels you last saw last November for the Dow Jones Industrial Average. It is in a correction. When you look at the S&P 500, this is more likely, John, to be what's reflective of your 401K --

(CROSSTALK)

BERMAN: I just know mine is way down.

(CROSSTALK)

ROMANS: Yeah. Down about 3 percent over the past year. Again, back to the levels we last saw last fall.

This is all about the rest of the world. It's about China. It's about a manufacturing number, John, that showed China's manufacturing sector is contracting, not expanding, but contracting. That means less demand for raw materials, less demand for U.S. products, and it means its consumers are likely contracting as well, which is not good --

(CROSSTALK)

BERMAN: And the financial outlook right now because of this, all of a sudden now people are saying the world may slow down because China is slowing down.

ROMANS: We don't know how much China is slowing down. That's the other part of this story that's confounding because Chinese official growth targets are 7 percent. Imagine 7 percent growth in the U.S. We're at 2.5 percent right now. But no one believes it's really 7 percent. And that not knowing how quickly the market is growing, that economy is growing, is disconcerting. This is the 30 stocks in the Dow Jones --

(CROSSTALK)

BERMAN: They're all red. A whole lot of red.

ROMANS: They're blue chips. We'll call them the red chips for now because they're all down no matter what you're talking about. A lot of the oil sector has been really hit. We had a three-day rally in oil prices recently, a pop, if you will. But look at this, this has been almost straight down for more than a year now.

BERMAN: Can you go back to the Dow 30 for a second?

ROMANS: Sure.

BERMAN: If you're talking about what kind of effect does China have on the U.S. economy, how broad based is the concern? Well, it's here.

ROMANS: Yeah.

BERMAN: It's everything.

ROMANS: It's everything. So the China story is really the big driver here. Don't forget the Federal Reserve is likely going to start raising interest rates pretty soon. That can put a damper on things. We're really concerned about when the Fed thinks the U.S. economy is strong enough it can start raising interest rates. And Friday we had a jobs report. So we're going to get a good sense of how robust jobs growth is in this country. We saw auto sales today. It was still humming in the most recent month. People are still buying cars. It takes a lot of confidence in the economy to shell out all that money for a car. We're looking at all of these gauges in the U.S. economy that show things are still good here but all eyes are on China.

BERMAN: Christine Romans, thank you. If you thought last week's awful week was an anomaly, no, down 368 points so far this morning. Thank you so much.

ROMANS: You're welcome.

BERMAN: And we have political news to tell you about right now. It's getting nasty in the Republican race. Trump and Jeb Bush going after each other. Yes, you can hear them talk. They don't seem to like each other so much right now on the stump. And now we have new videos. Donald Trump was first, and then this morning, Jeb Bush responded with his own, going right after the New York billionaire. Let's watch.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Hillary Clinton I think is a terrific woman. I mean, I'm a little biased because I've known her for years.

Yeah, I know her very well. She's very talented.

I live in New York, she lives in New York. And I've known her and her husband for years and I like them both a lot.

WOLF BLITZER, CNN ANCHOR: Do you identify more as a Democrat or Republican?

TRUMP: You'd be shocked if I said that, in many cases, I probably identify more as a Democrat.

UNIDENTIFIED ANCHOR: Then why are you a Republican?

TRUMP: I have no idea.

JEB BUSH (R), PRESIDENTIAL CANDIDATE: Yes, they broke the law, but it's not a felony. It's kind of a -- it's an act of love.

(END VIDEO CLIP)

[11:05:07] BERMAN: All right. Let's talk about this. It's getting real. Joining me, politics and conservative columnist, author, Kurt Schlichter -- follow him on Twitter -- also with us, CNN political commentator, Van Jones -- also a great follow on Twitter.

Also a great volume on Twitter.

Kurt, let me ask you this. Donald Trump and Jeb Bush, they have been fighting for some time. People were wondering when Jeb Bush would respond. Now he's responding with Donald Trump's own words. Trump, not a conservative. Is that message resonant in the Republican primary race?

KURT SCHLICHTER, CONSERVATIVE COLUMNIST & AUTHOR: Well, you know, John, Donald Trump isn't a conservative. He's barely a Republican. But it's not going to resonate because the people who are voting for Donald Trump, the people who are supporting him are not conservative Republicans. They're not members of the party. They're angry. They're infuriated at what the GOP establishment and the liberal establishment in Washington have been doing. For them it's beside the point what Donald Trump actually believes. He's an empty vessel. He's filled with their frustrations rather than any kind of policy prescriptions. So it's kind of beside the point. As usual, Jeb Bush is behind the eight-ball.

BERMAN: So, I mean, you say it's beside the point but they can vote. So these people will not be swayed. It will not hurt Donald Trump's standing. What about Trump's attack on Jeb Bush, Kurt?

SCHLICHTER: I think it was devastating. Look, let's understand this. I'm a conservative before I'm a Republican, and Jeb Bush is terrible. He's an establishment donor-class puffball who can't land a punch and doesn't seem to really believe in anything. And when you get up there and start talking about how committing a crime by coming into our country illegally is a, quote, unquote, "act of love," you are just inviting the kind of grand slam that Donald Trump laid down on him. Jeb Bush is swirling around the drain and going downhill.

BERMAN: It's interesting listening to this because you're not a fan of either guy and you're watching them fight each other out right now.

Van Jones, from the other side of the aisle, this must be delightful for you.

SCHLICHTER: Oh, it's wonderful.

VAN JONES, CNN POLITICAL COMMENTATOR: It's delightful.

BERMAN: Van?

JONES: It's delightful, but it's also disturbing. Let's try to pull this apart a little bit. First of all, you've got Donald Trump, I thought that attack ad was really below the belt, but you did have Bush trying to do, perhaps he didn't do it the best way, was to show some heart, some concern, some understanding that the vast majority of people who come to the United States are just trying to better themselves, which is what has happened for 200 years. He tries to show a little bit of concern, a little compassion, and he gets slammed, just taken to the ground and frankly his words taken out of context. I think that's very, very unfortunate that plays well in the Republican Party. Then you have the counterattack. The counterattack comes from Bush. Bush at least has enough character and class to actually use Donald Trump's words in context but look what he's saying. He's bragging on how many people he's put in prison and what a hard-hearted person he is. He's been drug down to show what a hard- hearted guy he is when he's actually more of a soft-hearted guy. So I think both of these guys are going down.

(CROSSTALK)

JONES: Meanwhile, Carson is rising and nobody is even talking about Ben Carson, who is shooting past both of them.

BERMAN: Let's talk about Ben Carson.

Kurt, what about Ben Carson, who, by the way, is literally on vacation right now. He's watching these two guys fight with his feet up on a beach somewhere, hopefully, if he's lucky. He is tied with Donald Trump, Kurt, in Iowa right now at 23 percent. And he isn't on TV 24 hours a day, like Donald Trump is. So what is Ben Carson doing right?

SCHLICHTER: Well, you know, Ben Carson is a great American, John. I love Ben Carson. I think he's wonderful, His character, his class. He has so much to offer America and he has so much to offer outside of Washington. OK? We need him out in the popular culture using his example to change our culture. What we need in Washington right now is a conservative president with a killer instinct who will disassemble and pull out, root and branch, the liberal establishment that's been put in there by Barack Obama.

(CROSSTALK)

BERMAN: Van, just in 20 seconds or less, Kurt's reference to the outside here, nonpolitical people going in, how does that play in the Republican race? Is there a candidate? Is it Bernie Sanders who benefits from this urge for an outsider?

JONES: Absolutely. Bernie Sanders is riding a massive wave right now. I think the Democratic establishment should be worried. If you are an elected official, ordinarily, that gives you a tremendous advantage. Right now it looks like in America it's a disadvantage. People are just that angry in both parties.

[11:10:00] BERMAN: Kurt, Van, great to have you here with us. Come back, gentlemen. Really enjoyed it.

JONES: Thank you.

SCHLICHTER: Thank you.

BERMAN: All right. Fears of a sniper after shots are fired at several cars on the freeway. We're going to speak to a law enforcement officer who is not holding back. He says the public needs to be concerned.

Plus, a dark past revealed. Disturbing new details about the man accused of killing a deputy in cold blood. Were warning signs missed? And the CEO of Yahoo! expecting twins. And she says she plans to

pretty much keep on working when they're born. So is she setting a bad precedent for women at Yahoo!, who have children and might want to take some time off? We'll debate.

(COMMERCIAL BREAK)

BERMAN: Friends and family gathering in Roanoke, Virginia, to say good-bye to Adam Ward. He's the photojournalist who was shot and killed along with reporter, Alison Parker, during a live broadcast last week. His fiancee was producing the show when this happened. Vicki Gardner, the woman they were interviewing, is recovering from gunshot wounds. The shooter was a former station employee. He killed himself hours after the attack.

New this morning, authorities are warning drivers on Interstate 10 in Phoenix that they should be on high alert. Four cars have been hit in three days by a sniper. The shootings have not been linked yet, but Arizona's top public safety official says everyone should be concerned.

Joining me now is Colonel Frank Milstead, Arizona's director of public safety.

Colonel, thank you so much for being with us.

At this point, any evidence linking these shootings?

[11:15:03] COL. FRANK MILSTEAD, DIRECTOR, ARIZONA DEPARTMENT OF PUBLIC SAFETY: Good morning, John. And thanks for having me on and giving me the opportunity to speak about what's going on in Arizona.

Right now, the ballistic work is still being done by our Laboratory Services Bureau. We don't know that the rounds are related, but I will tell you after 30 years of law enforcement experience, there's very few coincidences of this magnitude. I think we'll find something being related.

BERMAN: Four shootings in three days seems a little too much of a coincidence over a 10-mile stretch. Do you have rounds? Do you have forensics? Bullet casings, anything?

MILSTEAD: We do have evidence from the shootings. I'm not really at liberty to discuss the depth of the case at this point. At this point, we're really looking as an outreach to the community to find someone who may have seen something or they know something and come forward and report that.

BERMAN: And no connection between the victims other than that they were on -- or the people who were shot at I should say, only one person was hit, only that they were driving on this one stretch?

MILSTEAD: That's correct. A stretch of road is I-10 right through the heart of Phoenix. It's about an eight-mile stretch of roadway. Two of the shootings happened around 11:00 a.m. on Saturday morning. Another one around 10:15 on Saturday night, and that wasn't discovered until they inspected the car on Sunday morning. And the last one was yesterday morning, Monday morning, at about 4:45 a.m. So random times, but all in the same eight-mile stretch of I-10 through downtown Phoenix.

BERMAN: So your advice to people driving through Phoenix, you're getting on interstate 10 which I'm sure tens of thousands of people do every day. What do you do differently today than you would have done a week ago?

MILSTEAD: I think it's just commentary on where we are in America in general. You have to be vigilant and pay attention. And the other thing you have to do is if you see something suspicious, pick up your phone and call your local law enforcement agency and let us determine whether or not it's a big deal or not. Don't rationalize things away. But if somebody had seen something during those times or heard something that would be great. If you know who is doing this and you're friends with them or in the car and think this is insanity to shoot at moving cars, call us and let us investigate and let us resolve this before someone is actually killed or severely injured.

BERMAN: I remember I covered something like this in Columbus, Ohio, some years back, and there was real concern among law enforcement then about copycats. They were very careful about how much information they gave, how much they discussed. They almost didn't want to give anyone any ideas. Is that something you're concerned about?

MILSTEAD: Well, I think we might already be seeing that because there's other parts of the nation where this is going on and that may have been what prompted this. But more importantly with the investigation is just not to jeopardize our ability to make sure that the person or persons -- held to the highest levels of the law. I mean, there is nothing that I can imagine that is more dangerous for anyone than to shoot at a moving vehicle with the potential of actually killing somebody and then that vehicle careening out of control and what else it might strike and who else might be injured. It's a big deal.

BERMAN: It is terrifying. Lucky that only one person has been slightly injured.

Colonel Frank Milstead, thank you for being with us.

MILSTEAD: John, thank you for covering this, sir. Have a great day.

BERMAN: You, too.

All right, dark past revealed. Disturbing new details about a man accused of killing a deputy in cold blood. Were morning signs here missed?

Plus, the pope making a big move. Changing on the church's stance on treatment of women who have had abortions, at least for a period of time. The reaction is pouring in.

(COMMERCIAL BREAK) [11:22:18] BERMAN: New information this morning on the suspect in the horrific execution-style murder of a Texas sheriff's deputy. A prosecutor says Shannon Miles spent six months in a mental hospital in 2012 after he was found mentally incompetent to stand trial on a felony assault charge. He had beaten a man at a homeless shelter over a TV remote. Miles was eventually found competent. The case was dropped because prosecutors could not find the assault victim. Miles is now charged with capital murder in the killing of Deputy Darren Goforth. The deputy was pumping gas was Miles allegedly approached from behind and shot at him 15 times emptying his gun into the officer.

CNN legal analyst, Joey Jackson, joins me.

Joey, the new information we're getting today is this history of, if not mental illness, mental evaluation. He was being evaluated for a period of time in 2012. The direct impact that this has on this capital murder case is what?

JOEY JACKSON, HLN LEGAL ANALYST: Well, it affects it in a number of ways. The first thing is this is a capital case and capital cases which equal intentional murder plus an aggravating factor which is that this was a peace officer would make you eligible for the death penalty. Now there's a question whether the prosecution will seek the death penalty because the Supreme Court has said in instances of an intellectual disability it affects the eighth amendment to sentence someone to death. By virtue of his mental instability, that could affect it in that way. Just to be clear about that, what ends up happen it's not that your mental health is evaluated by what you did at some other prior time. It's what you did and how you were now. His status and mental how as to how it was during the day he engaged in that act is going to be critically at issue.

BERMAN: We do not know that yet.

JACKSON: We don't know.

BERMAN: We also know in Texas that a mental health defense, for lack of a better word, doesn't always work, right? We saw it in the American sniper case.

JACKSON: We certainly did. Understanding how that works, what happens is when you plead insanity, it's an affirmative defense, and what that means is that in this jurisdiction, the burden shifts to the defense to establish that, in fact, their client was insane at the time, and the standard is did he know right from wrong?

And in talking about American sniper, John, if you remember that case, there were compelling facts as to his mental history of Eddie Ray Routh, his mental status, his mental illness, his family, and they still convicted him but did not seek the death penalty. As terms as how they charge this case, it could influence them a lot.

Remember, the facts here are compelling, they're atrocious. They really have all the evidence they need with the surveillance, the ballistics. This is the only way the defense can get out of this. [11:25:22] BERMAN: Witnesses, ballistics, the car. But again, the

mental health factor will play in. And they raise more questions about the gun, right? Prosecutors say there were two guns in the house, including a handgun.

JACKSON: That's right.

BERMAN: If there were mental health issues that were documented to a certain extent, then there are questions about how did he get the gun?

JACKSON: 100 percent. Of course, one of the guns was reloaded. They did the ballistics and that gun apparently matched the gun he used at the scene. 15 -- just unbearable to talk about. But, of course, it will go back to the issue of gun control. How did he get it, where did he get it, why did he get it, who did he get it from? So those issues will surface as the investigation continues to move forward.

BERMAN: Joey Jackson, thank you so much.

JACKSON: Thanks, John.

BERMAN: And, of course, the president called the widow of Deputy Goforth last night to express his mourning along with the best of the nation. We all feel the same way.

JACKSON: Tough circumstance. Absolutely do.

BERMAN: Thank you, Joey. Appreciate it.

JACKSON: Thank you.

BERMAN: A groundbreaking announcement by the Catholic Church just days before the pope's visit to the United States. We'll have the details ahead.

Saved by a hero and a mop. Mops are very powerful instruments. Incredible video. A toddler dangling from a fourth floor window and the brave actions of the man who saved her life.

(COMMERCIAL BREAK)