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New Day

Cruz Upsets Trump in Iowa, Rubio Posts Close Third; Clinton Campaign Claims Victory in Iowa. Aired 7-7:30a ET

Aired February 02, 2016 - 07:00   ET

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

SEN. TED CRUZ (R-TX), PRESIDENTIAL CANDIDATE: The most votes ever cast for any Republican primary winner.

[07:00:04] DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: We will go on to get the Republican nomination.

CRUZ: A victory for courageous conservatives.

SEN. MARCO RUBIO (R-FL), PRESIDENTIAL CANDIDATE: We are not waiting any longer to take our country back.

They told me that we have no chance, because my hair wasn't gray enough and my boots were too high.

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: Wow, what a night. An unbelievable night.

SEN. BERNIE SANDERS (I-VT), DEMOCRATIC PRESIDENTIAL CANDIDATE: It looks like we are in a virtual tie.

CLINTON: This campaign stands for what is best in America.

SANDERS: The people of Iowa have sent a very profound message. The government of our great country belongs to all of us.

(END VIDEOTAPE)

ANNOUNCER: This is NEW DAY with Chris Cuomo, Alisyn Camerota and Michaela Pereira.

CAMEROTA: We want to welcome our viewers in the United States and around the world. This is NEW DAY. It is Tuesday, February 2. Michaela is in New York this morning.

Great to see you, Michaela.

Chris and I are here at the wonderful Waterworks Cafe in Manchester, New Hampshire. They're serving up a lot of delicious breakfast food for us following a wild night in the Iowa caucuses.

Breaking news this morning. Hillary Clinton's campaign declaring a win over Bernie Sanders in the Iowa caucuses despite, as you can see on your screen, a razor-thin margin. CNN not yet calling the race here. But the candidates separated by less than one half of 1 percent. On the Republican side, a decidedly more finished affair. Ted Cruz

using the backing of evangelicals to fend off Donald Trump, who settles for second. Senator Marco Rubio finishing a strong third, just one point behind Trump.

CUOMO: And yet there, the race is just started. We're going to be speaking with three of the presidential candidates this morning: Bernie Sanders, Ted Cruz, and John Kasich. We have all angles covered, because a lot of history was made and the table was set for more.

Let's begin with chief political correspondent Dana Bash, who spoke with Ted Cruz after his big win.

Dana, this was a big night for him. People felt that this played to his strength in Iowa. It doesn't happen until it happens, and now he has the momentum.

DANA BASH, CNN CHIEF POLITICAL CORRESPONDENT: He does have the momentum. But you know, it was so fascinating watching even throughout the day yesterday. Even the Cruz campaign genuinely thought if there was more people who went to the caucuses it would be better for Donald Trump. But it turned out it was his win.

(BEGIN VIDEOTAPE)

BASH: Senator, congratulations.

CRUZ: Well, thank you. It has been a remarkable victory here in Iowa. And really a victory for the grassroots. It is breath taking to see what happens when so many Americans stand up and decide they're fed up with what happens in Washington, and they want something different. They want a leader they can trust. They want someone who will stand and fight for them against the corruption of Washington.

And Heidi and I are overwhelmed. We're gratified. And we're encouraged going on to New Hampshire, going on to South Carolina, going on to compete and win this primary and then win the general election and together turn this country around.

BASH: Have you already sent Marco Rubio a bouquet of flowers for taking Donald Trump's votes away? I mean, that was a help to you, right?

CRUZ: Well, listen, I recognize that folks may want to talk about the third-place finisher, and that's fine. You can talk about that.

I'm focused on...

BASH: How you became the...

CRUZ: I'm focused on our victory tonight and the fact that courageous conservatives across Iowa, all across the country generated the most votes ever given to any Republican victor in a Republican primary. That is an unbelievable grassroots. We had over 12,000 volunteers in Iowa. We've got over 200,000

volunteers nationwide. That's the strength of this campaign. It is a grassroots campaign. That has been where our fundraising has come from. It has been where our energy has come from. It's where our passion comes from. And if you want to know who I'm accountable to, that is to whom I am accountable. It is the women and women of the grassroots.

BASH: Let's look ahead.

CRUZ: Yes.

BASH: Who do you think your biggest competition is, given the results tonight? Is it Donald Trump? Or is he still a factor?

CRUZ: Every candidate is going to have to decide what they do next in the campaign. I like and respect everyone in this race. I like and respect Donald Trump. I like and respect Marco. I like and respect everyone. Donald and Marco both -- both had a good night. I congratulate them in their second and third place finish. Ben Carson had a good night. There are a lot of people. Everyone in this field I like and respect.

We're going to stay focused on making the case to the American people that we can't have another campaign conservative.

BASH: I'm not taking anything away from your victory. You had a very solid, you know, well-deserved victory, given how much you guys worked.

CRUZ: Thank you.

BASH: But Iowa is kind of tailor-made for Ted Cruz. If you look at the entrance polls -- let me just give you an example -- 85 percent said that they were conservatives; 15 percent say they were moderate. And of the moderates, you only got, like, 9 percent.

So how do you translate what you did here to other states that don't have such a conservative electorate?

[07:05:04] CRUZ: You know, Dana, I have to admit, I'm kind of amused hearing that Iowa is tailor-made for us. Last night I was watching the news, and on every station, every media pundit was saying, "Cruz is going to lose." I heard that over and over and over again. "Trump will win, Trump will win, Trump will win." Every media pundit.

And then, suddenly, when the grassroots proved the media wrong, then suddenly, well, of course it was a foregone conclusion Ted was going to win.

This is the power of the conservative grassroots. And there is a silent majority in this country. You know, one of the greatest lies that gets told over and over again is that this country has somehow embraced Barack Obama's big-government failed liberalism. That's not true. This is a center right country. This is a country built on Judeo-Christian values. And the heart of my campaign is based on common sense principle. Live within your means. Don't bankrupt our kids and grandkids. Follow the Constitution.

BASH: Do you still think that the nominee could emerge by, like, the middle of March? And do you think that you have the path to be that person?

CRUZ: Look, I think it is entirely possible that we know our nominee by the end of March. If you look at the states, the states are front- loaded. A great many of the delegates are chosen by the end of March. And winning Iowa is a good first step. You've got to do more. That doesn't do it on its own.

But winning Iowa particularly, you know, it's interesting. If you look at the past two caucus winners, very good men, people of principle, but when they came out of Iowa, they were broke. When they came out of Iowa, they didn't have the national infrastructure to be able to compete effectively enough to win the nomination.

We're in a very different position. You know, the finance reports that were filed last night showed that at the end of December 31, that we had almost as much money in the bank, our campaign, as the campaigns of Jeb Bush, Marco Rubio, John Kasich and Chris Christie combined. That is an incredible testament. Usually the conservative is broke. In this case, because we've had over 800,000 contributions at TedCruz.org, we've got resources. We've got over 200,000 volunteers and a grassroots army.

I believe we have the national campaign and infrastructure to capitalize on this victory, to keep working to earn those votes. And I hope and believe, if we continue to be effective building that grassroots army, that we're going to win the nomination and then win the general election and beat Hillary Clinton in November.

BASH: Senator, congratulations.

CRUZ: Thank you, Dana.

BASH: Thanks for your time. Appreciate it.

CRUZ: Thank you very much.

(END VIDEOTAPE)

BASH: That was just moments after Ted Cruz won last night in Iowa.

He didn't want to talk about Marco Rubio. But the fact of the matter is, when you look at the numbers, it's very clear that Marco Rubio helped Ted Cruz get that victory.

Let's just look at one example. The number of Republicans who decided just in the past few days: Marco Rubio, 30 percent. Thirty percent. Ted Cruz, 25 percent. And Donald Trump, only 14 percent.

There's another interesting number, just to look ahead: People who could potentially win in November. Marco Rubio has the highest numbers by far, 43 percent, Donald Trump 25, Ted Cruz 22. So what that shows is that Marco Rubio's closing argument you heard on

the stump there -- you saw it on TV ads -- he's the most electable, at least in this particular electorate in Iowa. And the same...

CUOMO: When's the last time we saw that? We keep talking about how unique this has been, certainly a victory for the American electorate, because you're coming out and representing in a way you haven't very often.

CAMEROTA: Very good turnout.

CUOMO: But that the winner winds up being the lowest of the three in the estimation of whether or not they can win the actual general election.

BASH: Because the No. 1 driving force for the people who went out to the caucuses last night was "Share my values." They wanted somebody who talks their talk, walks their walk. And that's why they voted for Ted Cruz.

CAMEROTA: All right. Dana, thanks so much for bringing us that interview.

BASH: Thank you.

CAMEROTA: Great having you here with us this morning.

Turning now to the Democrats. Clinton's campaign declaring victory in Iowa, though the state's Democratic Party has not made it official yet, with the margin between both rivals razor-thin.

Senior CNN political correspondent Brianna Keilar is live in Des Moines with all of the late-breaking details.

Hi, Brianna.

BRIANNA KEILAR, CNN POLITICAL CORRESPONDENT: Hey there, Alisyn.

Yes, the Clinton campaign pretty eager to say that they've had a turnaround from her devastating loss here eight years ago. This is what they're saying. This is from her Iowa state director, Matt Paul.

He says, "Hillary Clinton has won the Iowa caucus. After thorough reporting and analysis of results, there is no uncertainty, and Secretary Clinton has clearly won the most national and state delegates. Statistically, there is no information that change the results and no way that Senator Sanders can overcome Secretary Clinton's advantage."

Still, of course, this race is too close to call. But statistically, there's no way Sanders can overcome what Clinton has done here. This is -- this what Matt Paul is referring to there. This from the Iowa Democratic Party chair.

"The results tonight are the closest in Iowa Democratic caucus history. Hillary Clinton has been awarded 699.57 state delegate equivalents. Bernie Sanders has been awarded 695.49 state delegate equivalents." Still outstanding here, they have results in one precinct, Des Moines-42. That's worth 2.28 state delegates equivalents. So that's really the issue here. They're a little more than four state delegate equivalents apart. But only two and some odd state equivalent delegates at stake here. And that's what the Clinton campaign is referring to.

But some really interesting numbers coming out of these entrance polls, you guys, that I think really matters here in Iowa and much beyond Iowa. Democrats were asked who is more honest and trustworthy? Check this out. Eighty-three percent said Bernie Sanders. Ten percent said Hillary Clinton. And Bernie Sanders with so much interest from people who aren't normally engaged. For first-time caucus goers, he got 59 percent of their votes. Clinton just 37 percent, guys.

CUOMO: All right, Brianna. Thank you very much. We appreciate that.

So coming out of the Democratic race, we're still waiting on the Iowa Democratic state party to announce their winner. This historically thin margin still in play.

But Senator Sanders already got on his plane, already landed here in New Hampshire. And he says he feels like this is a win for his campaign, no matter what. We got out there. He spoke to us just before his first event, which was before the sun was up here in Bow, New Hampshire. Here's what he had to say.

(BEGIN VIDEOTAPE)

CUOMO: What is the party telling you right now? We know that they were releasing some information. Nothing final. There seems to be some flux about which delegates, which votes are still outstanding.

SANDERS: Chris, I think you probably know more than I do. We just got off the plane. We haven't studied. But obviously, we'll be in contact with the party tomorrow.

But bottom line for us, look, we started that campaign, you know, 40, 50 points behind. Whether we lose by a fraction of a point or we win or whatever, we're very proud of the campaign that we won. And I think the significance is that -- for folks who did not think Bernie Sanders could win, that we could compete against Hillary Clinton, I hope that that thought is now gone.

We're going to fight really hard in New Hampshire. And then we're going to Nevada; then we're going to South Carolina. We look forward to doing well around the country.

CUOMO: Do you take this as a victory regardless of what the margin is?

SANDERS: Absolutely. Look, what you're talking about is one way or the other, a couple of delegates when we're going to need 2,300 delegates to win this thing. So maybe we lost by two, maybe we lost by one, maybe by zero, whatever it may be. But what this shows is that this campaign has started, in a very

forceful way, starting way, way back and coming to a virtual tie, and we are going to fight here in New Hampshire, look forward to winning here and doing well around the rest of the country.

CUOMO: Two things seem clear in the exit polls. I want your take on them, Senator.

The first is there was an expectation that this would be a national security election because of recent events and just the state of affairs. It seems that the idea of economics and what the security for the future is economically and as a country seems to loom as large, if not larger.

SANDERS: Look, national security is always a major issue when we're dealing with barbaric organizations like ISIS. But on the other hand, the truth is that the average American understands that there is something wrong where the middle class continues to decline and almost all new income and wealth is going to the top 1 percent.

And I'll tell you something else, Chris. What I found in Iowa, and not just from Democrats, but from conservatives and Republicans, there is profound anger at a campaign finance system which allows billionaires to buy elections. Nobody likes that.

CUOMO: What does it mean to you that, as voters get younger and as their income moves more into the middle class, your numbers got bigger and bigger in the preliminary information?

SANDERS: I am -- Well, No. 1, in terms of working-class people who are gravitating to our campaign, that's what this campaign is about. It's asking working people and middle-class people to stand up and fight for their rights, help us take on a billionaire class whose greed is doing so much damage to our economy.

Second of all, in the last election, the midterm election, 80 percent of young people didn't vote. Eighty percent. I am very proud that we're bringing a whole lot of young people all over this country into the political process, that we're revitalizing American democracy; and if we're going to change America, that's what we've got to do.

CUOMO: What is your message to older voters who did not come out for you in the same numbers?

SANDERS: Right. That's true. And my message is, check my record. You'll find that there is no United States senator who has been stronger on senior issues, not only on defending Social Security, but on the need to expand Social Security benefits. People can't make it on $12,000, $13,000 a year Social Security.

Second of all, very few, if any, members of the Senate have been stronger on the need to take on the pharmaceutical industry and end this disgrace of Americans paying by far the highest prices in the world for prescription drugs.

[07:15:14] CUOMO: Areas of minorities have also not been a source of strength for you so far, compared to Senator -- to Secretary Clinton. What's the message there?

SANDERS: Well, I think -- I haven't looked at all the results. But I think in Iowa, from what I saw in one of the papers, we actually did pretty well. We lost. But that gap is growing slimmer and slimmer between the secretary and myself. I think you will find, as we get to South Carolina and other states, that when the African-American community, the Latino community looks at our record, looks at our agenda, we're going to get more and more support.

CUOMO: What was it like to be there with your family and have this moment?

SANDERS: Tonight was a thrilling night. You know, certainly one of the important political nights in my life and we feel great.

CUOMO: Senator, thank you very much. Good luck going forward.

(END VIDEOTAPE)

CUOMO: Bernie Sanders, all business. The senator hit an event right after that interview. The sun wasn't even up. He was on the back of a pickup truck in Bowe, New Hampshire, making his case.

Now, this is history on many levels what we saw with the caucuses last night. It is a story line that goes well beyond who won.

Let's bring in Karen Finney, senior adviser and senior spokeswoman for Hillary for America, and discuss the implications.

Karen, we know that the campaign is declaring victory. We are asking and waiting on word from the Iowa state party. A lot of people in your camp are saying, "Hey, this state set up better for Bernie than it did for Hillary all along. We'll take this victory, no matter how thin." Why?

KAREN FINNEY, SENIOR ADVISOR/SENIOR SPOKESWOMAN, HILLARY FOR AMERICA: We feel really good about the campaign we ran in Iowa, about the campaign that we ran in Iowa, about the organization that we had, our grassroots infrastructure, our precinct cap taps. People got out. They worked hard. I think with he saw some wonderful numbers of people coming out to caucus for Hillary. A lot of enthusiasm and excitement. It was fun last night. I was at headquarters in Brooklyn, and we were actually watching on CNN, watching what was going on inside the caucus sites. And so we're thrilled with the results from last night.

CUOMO: Now, the turnout was very big. Not as big as her last race for president in 2008. But it certainly shows a very high level of participation.

Now, how do you look inside the numbers here and see your path forward? They're very clear that the young vote, the middle-income vote in Iowa very strong for Bernie Sanders. Honest and trustworthy, 38 percent to 10 percent.

FINNEY: We look at these results. What I expected to happen happened. When people got in there to caucus is and they thought about who do I trust to take care of the issues and deliver on the issues that matter to me and my family, they went for Hillary. I mean, that's to me what these results showed.

So we're feeling really good about the win. The secretary is in New Hampshire. You guys are in New Hampshire. So we'll -- you know, we're kind of looking forward to New Hampshire. We've got Nevada and South Carolina and obviously those Marsh states. And as we move on in the calendar, we have more diversity, as you were mentioning. So we're excited to keep going on this race.

CUOMO: So is let's look at the plus/minus. The plus is that Secretary Clinton is polling better among minorities and seems to be stronger as you start moving away from New Hampshire, into the SEC states, as we call them even out west In Nevada.

And how will the campaign magnify that?

FINNEY: Well, a couple of things. In New Hampshire, obviously, I think everyone who's run for president on the Democratic side who's won New Hampshire has been from a neighboring state. So we're not surprised to see Senator Sanders doing well there.

We're going to -- I think we'll be competitive. We certainly have run a very hard race. We have a great team on the ground. So let's not -- I don't want to prejudge that.

But as we move forward, here's what I know. I think both in the Latino community, in the African-American community, you know, voters have known the Clintons for -- there's a history there. You know, Hillary has been working on issues with -- you know, children, families, equality for her whole life, essentially.

I mean, her first job when she got out of law school she went to South Carolina to work on the issue, frankly, of young people who were being -- juveniles being incarcerated in adult prisons and to work on that issue. She went to Doth (ph) in Alabama as a young lawyer by herself to work on school -- a school desegregation case.

So my point being, like, there's a history there with Hillary Clinton and these issues. And again, I think there is a real trust there that she has a record on these issues, and she understands both, you know, these issues. There is an element of inequality that is important. And there's the economic inequality.

But then there are some systemic issues that need to be dealt with.

[07:20:11] So we're excited moving forward.

CUOMO: Right.

FINNEY: We feel really good about our organization. I have to say one thing, Chris. I think one of the things that's so important about Iowa for our team is the level of organization. I think we feel really good about our organization in the caucus states in addition to those primary states. CUOMO: Everybody says that the Clinton machine has learned from the

last election, adopted some of the techniques that the Obama campaign with Axelrod and Plouffe and everybody else, that you borrowed some of that, and some of the personnel. Seemed to help you there.

But one of the things the machine won't be able to address is that trust number. You're using trust as a positive with voters. It was also demonstrably a negative in those polls last night. Again, 80 to 13 or something like that in favor of Bernie Sanders on the issue of trust. What can Secretary Clinton do to build that number up?

FINNEY: Look, I think what she's got to do is what she has been doing. And that is you get out there, and you talk with people about what you want to do. You talk about your record. I mean, she has a strong record of delivering results for people. That is something she is passionate about. I think she'll continue to talk about that. We will continue to make that case in all the states that are upcoming.

And again, what I feel confident about and I think I want to stress, what we saw last night is that when voters got inside their caucus sites, they voted for the person who they trust is going to be able to deliver for their families. And that's really critical for us.

CUOMO: Well, certainly, a show of strength among Democrats last night, coming out in big numbers to vote. The secretary here on the ground. We're looking forward to see what the message is and how things change in New Hampshire.

Karen Finney, thank you very much. Appreciate it.

FINNEY: Great to be with you, Chris.

CAMEROTA: OK, so Chris, we have big news about tomorrow night. Hillary Clinton and Bernie Sanders will answer questions directly from New Hampshire voters at the next presidential town hall. This one will be in Derry, New Hampshire. It will be moderated by Anderson Cooper, 8 p.m. Eastern on Wednesday night right here on CNN. That will be fascinating. Tune in for that.

Plus, much more of our comprehensive campaign coverage ahead. We'll take a closer look at the winners and the losers and see who has the momentum heading here into New Hampshire. We'll be right back.

(COMMERCIAL BREAK)

[07:25:57] CAMEROTA: Hilary Clinton and Senator Bernie Sanders just a hair apart in Iowa at this hour. Clinton already declaring victory. But the state chair has not yet made it official.

Both candidates already, though, setting their sights on the next prize. And that, of course, is where we are in New Hampshire.

So how much will the Iowa results impact the race here on the ground in the Granite State? We have a great panel for you this morning.

Let's bring in the former moderator of "Meet the Press," David Gregory; New Hampshire 1 political reporter and former CNN political editor Paul Steinhauser; and CNN national political reporter Maeve Reston. Great to have all of you with us at Waterworks Cafe, where they're being so hospitable to us.

David, one of the fascinating things about what happened last night was that the polls missed the mark.

DAVID GREGORY, FORMER MODERATOR, NBC'S "MEET THE PRESS": Yes.

CAMEROTA: Let me pull up for everyone a graphic of where the polls said -- what they said would happen. This was just over the weekend. This is the gold standard, as everyone refers to "The Des Moines Register," on the right. They predicted that Trump would win with 28 percent. But in fact, what happened was Ted Cruz won with 28 percent. Trump came in second. Rubio came in third. What do you see?

GREGORY: Well, and Rubio outperforming his standing in that poll and in some of the previous polls. The averages, the Real Clear Politics averages. You saw Rubio outperformed that.

You also saw historic voter turnout on the Republican side. And yet it was Rubio and Cruz who were getting those voters, not just Donald Trump.

Elections belong to voters. That is what's so exciting about this moment, is that we cover elections now two years out. But once the voting starts, we get a much different picture. And I thought it was amazing that there's Donald Trump, who as I said earlier, just to impress Chris, was ostentatiously...

CAMEROTA: Brandishing.

GREGORY: ... brandishing his polls in Iowa. And yet he lost.

And even last night, gracious though he was, he's talking about having a big lead here in New Hampshire. Guess what? One of the great things about New Hampshire politics, they have a way of saying, "Slow down, cowboy. We're going to reset this race." And we'll be a whole new game here in terms of how it goes.

CUOMO: The last time we saw huge numbers in Iowa was the Obama/Clinton primary there in 2008.

GREGORY: Coming in here.

CUOMO: That's right. And you know, so Obama had a big night there in Iowa, lost in New Hampshire. So things can certainly change.

But also polls become largely suggestive, not predictive when you adjust for turnout, when you get big numbers like last night . The eggs get easily scrambled. What do you see when you look at the numbers about what the reflection is of Hillary's performance versus Sanders in a state that many believed him to be strong in, maybe not this strong?

PAUL STEINHAUSER, POLITICAL REPORTER, NEW HAMPSHIRE 1: A tie was a win for Bernie Sanders last night in Iowa, no doubt about that. Now he's coming back here, where he has been leading in the polls for -- just back in July.

Remember, here in New Hampshire, Bernie Sanders has a very formidable organization, a very formidable operation. He was playing catchup in Iowa. Not the case here. He matches Hillary Clinton when it comes to number of full-time staffers, volunteers, offices. This is very much Bernie Sanders' country.

CUOMO: There was a balancing factor in Iowa also, right? Because you have a lower number of minorities in that state. Bernie's not as strong with minorities as Hillary is. So wasn't that playing to advantage for him as well in that state in a way that won't be as true after New Hampshire?

STEINHAUSER: After New Hampshire, true. After New Hampshire. But here in New Hampshire, a very similar demographic. Very much -- very much a Caucasian state here. It plays to Bernie Sanders in so many ways, guys.

CAMEROTA: Dave, let's look at a couple of interesting entrance polls. That's how they do it in Iowa as people head in to caucus. So let's look at this.

They asked the voters who's the candidate that shares your values? And this is fascinating. They said Cruz -- they gave Cruz 38 percent. Rubio, 21 percent. Ben Carson, 15 percent. Rand Paul, 7 percent. But look, you have to go all the way down to No. 5 to get to Donald Trump. And that is 5 percent. So that must have had an impact on who won last night.

MAEVE RESTON, CNN NATIONAL POLITICAL CORRESPONDENT: Absolutely. And being out with Cruz's campaign in the final weekend, I mean, just seeing how amazingly organized his people were, how excited they were, energized, what so many of them, the case they were making to the voters who were considering supporting Donald Trump in the final days was this guy does not line up with your values. He is not one of us. He has not had the strong evangelical values that we do.

And clearly, that argument won the day. Not only for Ted Cruz but Marco Rubio in the final hours.