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NYSE, "Wall Street Journal," United Airlines Hit by Computer Glitches; White House Briefing on Computer Glitches; Hillary Clinton Talks Immigration; Clinton Denies Receiving Benghazi Committee Subpoena; Menendez Talks Iran, Cyber Security. Aired 1:30-2p ET

Aired July 08, 2015 - 13:30   ET

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

(COMMERCIAL BREAK)

[13:32:06] DANA BASH, CNN ANCHOR: Updating the breaking news this hour, the New York Stock Exchange, the "Wall Street Journal" and United Airlines all hit by technical glitches today. So far, there have been no indications of hacking. The Department of Homeland Security tells CNN there is no sign of malicious activity at the stock exchange or at United Airlines. The "Wall Street Journal" said it's experiencing technical difficulties and its full site should return shortly. As for United, the airline says a router issue caused the problem and has since been fixed.

A White House briefing is expected at any moment and we'll bring that to you live.

But first, let's go to CNN business correspondent, Alison Kosik, who is on the floor of the stock exchange who has been talking to sources, getting a sense of, frankly, how it feels to be there pretty much exactly two hours now after the stock exchange has halted because of these glitches.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Exactly. And you're not seeing any numbers moving or traders doing their work. They're just waiting around, waiting to see if and when, how soon the New York Stock Exchange can get its computers back online.

There's an operation control center in the middle of the floor where some poll has been put up to keep people out so they can have room to work and try and figure out what the problem is. Because the thing is no one knows what caused this glitch. Some are speculating that it could have been a software rollout will the New York Stock Exchange rolled out last night and possibly, when it was put into action today, possibly caused the glitch. The New York Stock Exchange did send out an alert to the traders on the stock exchange, on the floor of the stock exchange before trading began sending out a list of 220 stocks that may have a technical glitch. That was reportedly fixed by around 10:45 this morning, then at around 11:30, trading just stopped here on the floor of the exchange. The music, as one trader said, the music stopped here on the stock exchange floor.

BASH: And what are you hearing about the latest prediction of when trading could come back, if at all, today? KOSIK: Well, I'm hearing -- it runs the gamut. I'm hearing the stock

exchange down in the middle right now of decide when to reopen trading, they could be close to discussing when to reopen trading. Another trader told me that if trading isn't back up and running by 2:00, 2:30 this afternoon, which is about an hour away, his thinking is that the exchange won't open up, because you think about it, if they open up trading and it glitches again, that's probably only going to compound the problem -- Dana.

[13:35:00] BASH: Thank you, Alison. We'll come back to you as we learn when and if the New York Stock Exchange is going to open back up trading.

And I want to turn back to something that happened this morning with United Airlines. A computer malfunction causing all flights to be grounded. United is back up and running now. We're not exactly clear why this happened and how this hand.

I want to go to Mary Schiavo, a CNN aviation analyst and former inspector general with the U.S. Department of Transportation.

Mary Schiavo, tell me, from your perch and dealing with things like this, maybe not this widespread, what do you think happened here?

(CROSSTALK)

BASH: I'm going to interrupt. I'm sorry. Unfortunately, Mary Schiavo, I won't let you answer, but I'll get back to you in one second.

Let's listen to the White House briefing.

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: This afternoon the president was briefed by his Homeland Security advisor, Lisa Monaco, and the White House chief of staff, Dennis McDonough, about technical issues being experience bid the New York Stock Exchange. Ms. Monaco told the president that at this point there's no indication that malicious actors are involved in these technology issues. She informed the president that the New York Stock Exchange officials have been in close touch with the Department of Homeland Security, with the Securities and Exchange Commission, as well as the Treasury Department. The officials at the stock exchange are working feverishly, as you would expect, to try to resolve the situation. For an update on their efforts, I'd encourage you contact them. The president told Ms. Monaco and Mr. McDonough that he wanted to be updated on the situation over the course of the day. At this point, there is no indication malicious actors were involved in these technology issues.

So with that, Darlene, we can talk about this some more or take other questions you may have today.

UNIDENTIFIED REPORTER: Sure, thank you. Even though you say there's no indication that malicious actors are involved, is that something federal authorities are still kind of being on guard for as they continue to look into what happened? EARNEST: Well, obviously, the administration is keenly aware of the

risk that exists in cyberspace right now. There are a number of steps this administration has taken to improve communication between the private sector and the federal government when it comes to safeguarding cyber space. I would point out that the stock exchange is an example of a private-sector entity that has a strong relationship with the federal government. And one of the most important elements of our strategy for safeguarding the nation's computer networks from cyber threats is effective communication and sharing of information between private-sector officials and the federal government, particularly those elements of the federal government that are responsible for responding to cyber threats. The New York Stock Exchange does have an effective information-sharing relationship with the federal government and I think the information I shared with you is an indication of how valuable that information sharing can be.

UNIDENTIFIED REPORTER: Given what happened today, did the federal government take any steps to beef up its own cyber security defenses or anything like that?

EARNEST: Well, the federal government is obviously very vigilant about the steps that we need to take to protect federal computer systems. The kind of security measures that are in place are sometimes obvious to the general public, sometimes they aren't. We also work aggressively to make sure that the kinds of defenses we have in place reflect the threats we perceive. I don't have any steps that we've taken at this point to tell you, but I can assure you that officials, even on days when these kinds of questions are not lingering in the air, are very vigilant about their need to adapt to an environment in cyberspace that is filled with malicious actors.

UNIDENTIFIED REPORTER: On the Hill today, Senators Schumer and Portman unveiled a plan to overhaul the way U.S. companies pay taxes on foreign profits and some of the money they would propose using for infrastructure, roads, bridges, et cetera. Do you have any reaction or comment on the work they're talking about?

EARNEST: Well, Senator Schumer and Senator Portman have communicated to the administration about their report and we applaud their interest in this area.

[13:40:49] BASH: And you hear that the White House press secretary has moved on to other issues. But he made clear, based on what the administration knows, no malicious activity has been involved. The president was briefed by his Homeland Security advisor, Lisa Monaco, again, that there's nothing malicious and that they are continuing to watch the New York Stock Exchange as well as the "Wall Street Journal." We are going to keep checking in with our sources and reporters.

We'll take a quick break but don't go away. Still ahead, Hillary Clinton came out swinging in a wide-ranging exclusive CNN interview. How she took on her Republican rivals on immigration. Plus, the one candidate she wouldn't attack. We'll discuss it with our panel of experts. Stay with us. (COMMERCIAL BREAK)

[13:44:27]BASH: Hillary Clinton says she is 100 percent behind comprehensive immigration reform that includes a path to citizenship. It's a central part of her platform. And in her exclusive interview with CNN's Brianna Keilar, Clinton attacked the stance of Jeb Bush and other Republicans on an immigration overhaul.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, (D), PRESIDENTIAL CANDIDATE & FORMER SECRETARY OF STATE: As I said, they're a spectrum of hostility, which is regrettable in a nation of immigrants like ours, all the way to grudging acceptance but refusal to go with a pathway to citizenship.

(END VIDEO CLIP)

BASH: Let's continue this discussion with chief political analyst, Gloria Borger; senior Washington correspondent, Jeff Zeleny; and senior political reporter, Nia-Malika Henderson.

First, I wanted to mention that Jeb Bush's camp immediately responded in a statement saying, "Hillary Clinton has once again changed her position on an issue for political expedient purposes after voting for the poison-pill amendment that stopped immigration reform in its tracks as a Senator and saying she believed the unaccompanied minors should be sent back to their home countries last year. She running further to the left on immigration policy than even President Obama's White House believes is legally feasible. Hillary Clinton will say anything to get elect and her numerous flip-flops on immigration prove it."

I wonder what he really thinks.

(LAUGHTER)

It's going to be a long election.

GLORIA BORGER, CNN CHIEF POLITICAL ANALYST: It is.

BASH: I want to get to all that, but I first want to go to you, Jeff.

You got back from Capitol Hill on another response to an important news-matching part of this interview Brianna did when Hillary Clinton said she hasn't received a subpoena from the Benghazi Committee. You talked to its chairman.

JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT: Pointedly, she said she's never received a subpoena. We got back with from Trey Gowdy, who showed us a copy of the subpoena. It was issued on March 4th, that she was clearly subpoenaed about these e-mails. The Clinton campaign has not clarified her comments. We've been trying to talk to them since last night. They say they're working on a clarification. So I think it will be having to do with the private e-mails versus public e-mails. But it just goes to show that e-mail controversy is not going away because there is a copy of the subpoena. We'll have more on that on "The Lead" at 4:00.

BASH: Maybe it got erased on the server.

(LAUGHTER)

(CROSSTALK)

ZELENY: It says, "To the Honorable Hillary R. Clinton." So it's a clear subpoena.

BASH: It's a clear subpoena.

I want to go to other parts of the interview I thought were fascinating. What is just about what she told Brianna that she learned in 2008 about her strategy to win? Watch this.

(BEGIN VIDEO CLIP)

CLINTON: One of the things that I learned last time is it's organize, organize, organize, and you have to get people committed and then they will follow through and then you bring more people. So I feel very good about where my campaign is. It will be three months in a few days we've been at this. I think I've learned a lot from listening to people in Iowa and it's actually affected what I say and talk about on the campaign trail.

(END VIDEO CLIP)

BASH: Gloria, obviously, organize, organize, organize, should be the central component to any good campaign.

BORGER: Right, but particularly with the Iowa caucuses, because it's all about getting a small group of devoted --in the case of Democratic party in Iowa very liberal caucus goers who might be attracted to Bernie Sanders. It's making your case, corralling them, literally, getting them to caucuses so they will support you. Hillary Clinton had a bad experience in Iowa last time she ran and she understand what is it's like to be on the wrong side of that. So they've got a lot of money, they're spending it, they're organizing, she's sending a lot of time there and she's hoping that in that way she can become more relate to believe caucus goers who may have doubts about her.

BASH: Let's face it, that's how you win Iowa.

(CROSSTALK)

BASH: When she said to Brianna, she's not running for the media, she isn't.

(CROSSTALK)

BASH: But she's right.

NIA-MALIKA HENDERSON, CNN SENIOR POLITICAL REPORTER: Well, it was an implicit critique of Bernie Sanders. They were talking about Bernie Sanders getting these crowds in places like Maine and Wisconsin and here she is saying it's not necessarily about the crowds that you can draw but this boring work behind the scenes where it's door to door and you're organizing folks. It doesn't make poor good press releases or television but in terms of what you need to do, the nuts and bolts of campaigning. I talked to donors about this, too, and grass roots people. They can tell the difference between what this campaign is like going into 2016 versus what it was like in 2008.

Now I think it's fair to say Hillary Clinton had her answers ready.

(LAUGHTER)

That's the diplomatic way to say it. But there was one kind of really unscripted part. Maybe not news making but interesting. Watch this.

(BEGIN VIDEO CLIP)

BRIANNA KEILAR, CNN SENIOR POLITICAL CORRESPONDENT: Have you given any thought to the woman who should be on the $10 bill?

(LAUGHTER)

CLINTON: You know, I am very torn about it. I want a woman on a bill. I don't know why they picked the $10 bill. Some people are agitated for the $20.

KEILAR: Do you think it should be the $20?

CLINTON: I want a woman on the bill and I think that it might be easier to change the $20 than it is to change the $10, but we'll see.

(END VIDEO CLIP)

[13:50:05] BASH: You know, Gloria, never mind the substance of what she was saying. When I was watching her, it reminded me of the fabulous piece that you did when she announced talking to those people who know her so well saying we don't really know the Hillary that's comfortable.

BORGER: Right.

BASH: And just talks like a human being. She really did that there.

BORGER: It was clearly not a question she anticipated, and she was thinking it through in her mind, but, as a woman, yeah, she would like to see a woman on bill and maybe a woman on a $20 bill and not the $10 bill. And it's a little bit of lifting the veil. I think the problem with Hillary Clinton is that she puts the veil on herself. In addition to being briefed and giving the answers to -- to Brianna's questions, she does do that to herself.

ZELENY: That's what she sounds like in the House parties when she's out meeting people, is laughing a lot. When you hear that laugh, that's a genuine Hillary Clinton moment.

BASH: Something we're not seeing which might not be the end of the world. What struck you about that?

HENDERSON: I thought she's really talking about this cultural moment we're in, that in some ways benefits her, this idea that it's time for a woman to be on -- on either a $10 or $20 or in the White House as well, so I thought that was interesting and very in the weeds there, right? She was debating, is it the $10 or $20. Didn't give any names who she thought should be on it. She probably thinks she should be on it.

BASH: They actually aren't alive to be alive --

(LAUGHTER)

-- so she's not ready for that.

(CROSSTALK)

BASH: Nia, Jeff and Gloria, thank you so much.

BORGER: Thanks.

BASH: Clinton also had some choice words about Republican candidate, Donald Trump, and his derogatory remarks about Mexican immigrants. Trump will speak for himself tonight here on CNN at 8:00 p.m. when he sits down for an exclusive interview with CNN's Anderson Cooper.

Up next, I'll speak with New Jersey Senator Robert Menendez. We'll discuss Iran, the computer glitch, and many more topics. Stay with us.

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[11:55:29] BASH: "No malicious activity," that's what White House spokesman, Josh Earnest, has said about the computer glitch on Wall Street that shut down trading at New York Stock Exchange.

Joining me now from Capitol Hill is New Jersey Senator Robert Menendez.

And let's get straight to it. When it comes to this issue, but maybe more broadly the question of cyber security, what are your thoughts on this?

SEN. ROBERT MENENDEZ, (D), NEW JERSEY: Well, look, I think increasingly the challenge of cyber security is a national deal, it's a national imperative. So many of our financial systems, our energy systems, a wide spectrum of our society is driven by technological opportunities to be affected by a cyber attack, so as we saw with what happened with the files of tens of thousands of federal employees and the effect that it had there, we can understand the effect that it could have more broadly, so I'm -- you know, I'm looking forward to continuing to hear what the government says. I mean, it's not just the stock exchange. I understand the "Wall Street Journal" had a challenge others all happening at the same time. It makes me question what is really happening, but we'll have to continue to be vigilant, and I think we have to have a more aggressive effort on cyber security nationally and working with the private sector as well because this is the new frontier of security challenges.

BASH: Absolutely.

Senator, let's move on to Iran. You have been -- you were an early and outspoken critic of the Iran talks as a member of the foreign relations committee, at the time chairman, you pushed to make sure that Congress has its imprint on the talks. And I want to read you part of a column from Tom Friedman. He said -- talking about the talks -- "It keeps feeling like it's always our side looking to accommodate Iran's needs. I wish we had just walked out once. When you signal to the guy on the other side of the table that you're not willing to either blow him up or blow him off to keep -- to get up and walk away, you reduce yourself to just an equal and get the best bad deal nonviolence can buy."

That's pretty harsh, but it kind of sounds like what you've been saying.

MENENDEZ: Well, when I read Tom Friedman's column about a week ago, I said, wow, this is exactly what I've been saying. Tom Friedman's been generally pretty good to the administration on a whole host of foreign policy issues. Look, I think it's right spot on, and the title of that column, "A Good Bad Deal," is the essence I think of where we're headed here. If a deal can be had at all. And what's the problem with that? The problem with that is what the administration said at the beginning that I totally embrace is that no deal is better than a bad deal. I don't think there's such a thing as a good bad deal. It's either a good deal or a bad deal and it's a bad deal if --

BASH: Do you think a good deal is even possible at this point? I mean, remember, Friday -- the deadline allegedly now is Friday.

MENENDEZ: Well, look, I'm afraid that our red lines to the Iranians seem to be green lights. The reality is that how do we start these negotiations? We started these negotiations saying Iran cannot have the capacity for nuclear weapons. We started talking about that we need to dismantle some of Iran's illicit nuclear infrastructures. We started saying that there is no right to enrich, and what do we have so far from what I can see? We have the Iranians having an implicit ability to go ahead and enrich. We have a nuclear infrastructure that despite the world powers sitting on the other side of the table, the Iranians have been able to keep most of their infrastructure in place. And at 10 to 15 years they will have a clear pathway towards, if they choose to, towards pursuing a nuclear bomb. That is not where the national interest of the United States is nor of our ally, the state of Israel.

BASH: Senator, just a quick two-word answer. If the Congress has 60 days -- you wrote this law to review this deal -- if there is one, do you even think you would have the votes to pass a refusal of the law, yes or no?

MENENDEZ: To pass a --

(CROSSTALK)

BASH: Meaning to -- to make sure that the deal doesn't live?

MENENDEZ: Well, I think it depends upon what the deal was. We'll have to see. I'll reserve judgment, even though I'm concerned about where we're headed about what the deal looks like. If it's a bad deal, I think there's votes in the Senate to say it's a bad deal.

BASH: OK, Senator Menendez, thank you very much for your time. Sorry we had to cut it short because of the breaking news.

That's it for me.

"Newsroom" with Brooke Baldwin starts right now.