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Outbreak Worsens in California Prisons; FC Dallas Pulls out of Tournament; U.S. May Depot International Students; Brazilian President Awaits Test Results; Recipients of PPP Loans Revealed; Evictions Cases Head to Court; FaceBook Meeting with Civil Rights Leaders. Aired 9:30- 10a

Aired July 07, 2020 - 09:30   ET

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

[09:30:00]

SARA SIDNER, CNN NATIONAL CORRESPONDENT: And now we're seeing that the state corrections top medical officer has been replaced. He was criticized by the governor for sending hundreds of inmates from the Chino facility to San Quentin. The Chino facility had a major outbreak of coronavirus. Now San Quentin's inmate population, about a third of them have tested positive for coronavirus. That is putting some strain on the hospitals as well because some of them having to be sent out for treatment.

And we're also hearing from the governor about who is being infected more often now and he says there is a shift in who is actually being infected compared to when -- the way things started back in March and April.

(BEGIN VIDEO CLIP)

GOV. GAVIN NEWSOM (D-CA): I think the most important thing we've learned from a lot of the new data that's come in that goes direct to your question is the cohort of individuals now that are being tested positive is getting younger and younger. And so that cohort 18 to 34, 34 to 49 year olds, when you stack those together, you're looking at a majority of the new cases. And so a lot of these younger folks may be coming into hospitals, but with not as acute needs as what we were seeing in the past.

(END VIDEO CLIP)

SIDNER: But when it comes to hospitals, there is a great concern from health officials here that if this spike -- if they keep happening, if they keep going, it means that the hospital beds could be exhausted. In the ICU, for example, they said if it keeps going like this, by the end of July they could be filled.

Poppy.

POPPY HARLOW, CNN ANCHOR: My goodness. Sara, thank you for that reporting.

A coronavirus outbreak is forcing Major League Soccer to pull an entire team out of an upcoming tournament.

Andy Scholes joins me with more this morning.

Are the rest of the games also in jeopardy, Andy?

ANDY SCHOLES, CNN SPORTS CORRESPONDENT: Well, Poppy, for now it's only the games involving FC Dallas. But, I mean, this is just such a real concern for all of the big sports leagues. You know, Major League Soccer was starting its season with a tournament in a bubble at Disney. You know, removing FC Dallas is not ideal, but it's something that can be done.

But just think about the NBA. You know, they can't just take out of the Clippers and baseball just can't remove the Yankees. So, I mean, this kind of thing, a real concern for all the sports leagues.

Now, MLS Commissioner Don Garber, he made the decision to remove FC Dallas from the tournament after ten plays and one staff member tested positive for coronavirus. The team's been in quarantine and unable to train in Orlando ever since it arrived there on June 27.

Now, according to "The Athletic," Nashville FC also has five confirmed case and three more presumed positive pending confirmation. They are in quarantine and unable to train, but remain in the tournament for now. The club said they have no comment on that when we asked. Nashville, they're scheduled to play when the tournament begins tomorrow.

In the meantime, the Astros, Nationals and Cardinals all canceling workouts yesterday because they said Major League Baseball's coronavirus testing was not fast enough. So the players were tested for Covid-19 Friday but still didn't have the results Monday morning. MLB responded, commending the teams for canceling workouts and said they have addressed the delays that were caused by the holiday weekend.

Teams are back to work today. Opening day for baseball is going to be July 23rd.

The NHL, meanwhile, and its players reaching a tentative agreement to resume play August 1st. Teams are going to open camp next week. According to reports, the league's finalizing details for Toronto and Edmonton to be the two hub cities where all the games are going to be played.

And, finally, the PGA Tour changing course, announcing that fans are now not going to be allowed at the Memorial Tournament next week in Ohio. This was to be the first event with fans. They were set to allow 8,000 per day with social distancing measures. But the PGA saying, due to the rapidly changing dynamics of the Covid-19 pandemic, the tournament would have to cancel those original plans. No word yet on when the PGA is going to allow fans, Poppy.

And the NBA, all of those team are -- some of the teams are set to arrive in Orlando to enter that bubble today. And the NBA is certainly hoping that what happened to the MLS doesn't happen to them. HARLOW: Yes, of course they are.

All right, Andy, thanks very much. Appreciate it.

SCHOLES: All right.

HARLOW: The future for international students, over a million of them that come to the U.S. to study, it's all up in the air now because ICE has announced they must leave the country or risk being deported if the university they're going to transitions to online learning. More on that, next.

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[09:38:46]

HARLOW: A major development overnight that's getting a lot of attention now. The Trump administration is saying that international students may be departed out of this country if the universities they're here to attend switch to online only classes. This move could force more than a million foreign students to leave the United States.

Our Jessica Schneider is with me.

I mean, Jessica, the amount of messages I got from people when they saw this headline cross tells me how -- you know, how many people are alarmed by this, but also confused because what happens if in the middle of a semester, for example, cases go up and the university switches online?

JESSICA SCHNEIDER, CNN CORRESPONDENT: A lot of questions this morning, Poppy, and it's really an announcement that puts these universities and, of course, the international students in a really precarious position because if these universities across the country go to all online learning, these international students will have to either leave the country or they'll risk being deported. That was the guidance issued just last night by Immigration and Customs Enforcement.

And it's coming at the same time that these universities are finally announcing their plans for students in the fall. Harvard University, for example, saying that while some students may return, all of their classes will, in fact, be online. Princeton University also saying that most of their classes will be online as well.

[09:40:03]

But, you know, ICE is not backing down here. It is their typical protocol that international students aren't allowed into this country to take online only classes. And they reiterated that stance last night. Here's what ICE said in a statement, saying, the U.S. Department of State will not issue visas to students enrolled in students and/or programs that are fully online for the fall semester, nor will U.S. Customs and Border Protection permit these students to enter the United States. And the caveat here being that if these universities offer both online and in person classes, that there is a chance that students can stay here.

But, of course, this is sparking anxiety and uncertainty for the more than 1 million international students who come here to this country. They hail from China and South Korea, and Saudi Arabia, just to name a few. So the question for these international students, Poppy, is, you know, what will happen maybe if this pandemic worsens and then maybe these universities shift to all online classes, will these students even be allowed back home? So a lot of questions this morning all the result of this ICE statement.

Poppy.

HARLOW: Of course.

Jessica, thank you for that reporting.

Well, coronavirus test results are expected at any moment for Brazilian President Jair Bolsonaro. He was tested yesterday after experiencing some symptoms. He has repeatedly, as you know, downplayed the impact of the virus. He's vetoed laws that would improve public safety. All while Brazil has suffered one of the world's worst outbreaks.

Our Bill Weir reports.

BILL WEIR, CNN CORRESPONDENT: Yes, hello, Poppy. What an ironic turn of events on the day that Sao Paulo, a city of 22 million, opens widener in the teeth of this pandemic as the deaths pass 65,000, we learn that the president last night, Jair Bolsonaro, had enough symptoms that he went in for a lung scan, an MRI, and also got his -- at least his fourth Covid-19 test. We should get the results of that in the next couple hours or so.

But this, of course, comes after months of flouting the pleas of his top health care professionals to impart -- you know, to declare more quarantines, more social distancing and masks. Laws the president refused to do it. He called it a little flu, encouraged people to go out. He went out and would take selfies and would say, hey, we all die some time.

But the reality is that some people are dying much faster than they have to in this country because of the attitude towards masks and even Hydroxychloroquine. When President Trump threw that out as a possible wonder drug, President Bolsonaro stockpiled millions of doses and is now giving it out to people in free clinics. He has an army general running the whole pandemic response after two health ministers quit or were fired over fights about social distancing.

So now we'll see if his own brush with this changes that attitude at all, but right now the health care system, which is rather robust and well respected in Latin America, one that Bolsonaro is actually trying to privatize, they're bracing for what be mainly (ph) an Italian-like wave of patients where doctors may be forced to choose between who gets what respirator.

At the same time, they're also testing two vaccine trials here, one out of China, one out of Oxford.

So Covid-19 is the story of the day all the way up to the top man here in Brazil.

Poppy.

HARLOW: Truly it is.

Bill Weir, thank you.

We're waiting for those results on the president of Brazil's test. We'll get them at any moment.

Finally, some transparency on the PPP loan program. Who got the money? Some members of Congress are on the list. And that's not all, next.

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[09:48:12]

HARLOW: So we now know some members of Congress, or their families, or businesses, were among those who benefited from the Paycheck Protection Program, or the PPP program. That's the economic relief program created to really help small companies struggling during the coronavirus shutdown.

Lauren Fox is on Capitol Hill.

Look, it's a really good thing that we finally have this transparency. For weeks people have been -- been calling for it. The list is interesting in terms of who got money and how much. What stands out to you?

LAUREN FOX, CNN CONGRESSIONAL REPORTER: Well, and this is just a fraction of what got this money, Poppy. You'll remember, the only data we have with names attached to it is the loans that were total more than $150,000. We know that the average PPP loan was smaller than that, therefore we don't have all of the names of potentially politically connected individuals that could have gotten these loans.

But a couple of very well-known folks who were part of businesses that got these loans, including several members of Congress. And I want to highlight just two of them, Vicky Hartzler, whose family owns some farm supply companies in Missouri. Those businesses got $480,000 in PPP loans. Mike Kelly, a Republican from western Pennsylvania, he owns car dealerships. Three of his car dealerships got PPP loans.

Now, when I asked the lawmakers' offices about what their rationale was for needing this money, you know, Mike Kelly's office said, we helped employ 200 people in western Pennsylvania. And, you know, those businesses were struggling and we were able to kept people on payroll because of the money we received through PPP.

I also want to mention just some other notable and maybe surprising foundations that received some of this money, including Americans for Tax Reform Foundation, which, of course, is a well-known group in Washington, D.C., that has fought to lower the burden of taxes for Americans and bloated government spending over the last several years.

[09:50:09]

They got a PPP loan between $150,000 and $350,000, as well as the Congressional Black Caucus Foundation got a loan, between $350,000 and $1 million and the Congressional Hispanic Caucus Institute got a loan between $350,000 and $1 million.

This just goes to show you the wide breadth of individuals and businesses that got these loans.

One thing I want to note, Poppy, is that there's still $130 billion available. So if a mom and pop shop owner at home is watching and they wanted to apply for a loan, they still can do so through August 8th.

HARLOW: Yes.

FOX: Poppy.

HARLOW: That's very good to know. I was also struck by some of the other names on there, Grover Norquist Foundation, Ayn Rand and Yeezy, right, Kanye West's brand.

FOX: Exactly.

HARLOW: OK.

FOX: Obviously some very well-known folks on this lists.

HARLOW: Thanks, Lauren, appreciate it.

We now turn to unemployment amid this pandemic. Enhanced benefits set to end this month and now this, "The Washington Post" says evictions are about to skyrocket. And who will be hurt the most, black and Hispanic renters. Right now more than 40 percent of Latino and black renters are unsure, according to the latest data, if they can pay the rent next month.

Our business and politics correspondent, Cristina Alesci, is with me.

It is so, so sad to see what this data shows and to watch some of these court proceedings where some of the judges are like unaware about moratoriums being put on these evictions.

CRISTINA ALESCI, CNN POLITICS AND BUSINESS CORRESPONDENT: That's right, Poppy. It is going to be a gut-wrenching summer for many Americans across the board, particularly the statistic that you just highlighted, 40 percent -- over 40 percent of black and Latino renters are now uncertain about being able to pay the rent. That number compares to 20 percent for white renters. Again, underscoring how this pandemic has really disproportionately impacted black and Latinos in this country.

Also, more broadly speaking, another group issued a piece of research that showed 20 percent of the 110 million American renters are now feeling some uncertainty around rent and eviction, Poppy. These two forces are colliding. First of all, us a mentioned, eviction filings are working their way through the court system at the same time that this enhanced unemployment benefit is set to expire at the end of July.

Those two forces are really creating a lot of uncertainty. And to your point, on the federal eviction moratorium, yes, the CARES Act did enact that, but it's really being unevenly applied across the country because it's up to local and state courts to really enforce it, Poppy.

HARLOW: Yes. Yes. So if you're someone facing this, and you're going to court over it, know your rights, know what sort of protections you have for sure.

Also, a big economic initiative today, Cristina, to support black- owned businesses.

ALESCI: That's right, Poppy. But before we get to that, I just want to make one addition to the eviction.

HARLOW: Sure.

ALESCI: That the eviction moratorium on the federal level applies to buildings that have government-backed loans.

HARLOW: Right.

ALESCI: So, you have to look into whether or not you have the -- your mortgage is a government-backed one if you're living in that kind of a building.

On this initiative to support black-owned businesses, Poppy, this is a movement that is taking off on social media for sure, hash tag blackoutday2020. This is an initiative that's really calling for black Americans to harness their spending power. Nearly a trillion a year in spending power. For today, there are activists who are calling on black -- black Americans to not spend anything and if they have to, to do it with a black-owned business.

Now, this is a -- this is a movement that has found a powerful voice in an activist Calvin Marder (ph). He's out there saying, look, this isn't just a one-day thing. This can become a movement over a longer period of time to send a message to both politicians and business leaders that systemic racism needs to end, Poppy.

HARLOW: Cristina, thank you very, very much.

Also happening today, FaceBook's CEO Mark Zuckerberg and FaceBook's COO Sheryl Sandberg are meeting with civil rights leaders regarding the growing advertiser boycott.

Let's go to Donie O'Sullivan. He joins me now on this.

There is some, you've been reporting, some skepticism by some of those groups but FaceBook says, look, we're committed. They're putting out two years' worth of data today. What do you expect to happen in this meeting? DONIE O'SULLIVAN, CNN BUSINESS REPORTER: That's right, Poppy, today is

a very big day for FaceBook. You know, I think the organizers of this ad boycott, ADL, NAACP, and other organizations were, frankly, surprised at how well and successful the ad boycott was.

[09:55:02]

You know, some of the biggest brands in the world, some American iconic brands like Levi jeans, Coca-Cola, Starbucks, all pulling their ads from FaceBook. And you're right, there are some of the -- some of the people who are attending that meeting later today have already expressed skepticism about what they will be (INAUDIBLE) from FaceBook, and I think they're keeping their expectations pretty low.

Sheryl Sandberg has been on FaceBook this morning and she posted a -- you know, commitment to some of the changes the company is going to make. We see these announcements from FaceBook ever so often.

One quote I do want to pull from it and mention is, she said, we are making changes not for financial reasons or advertiser pressure (INAUDIBLE) because it is the right thing to do. That statement has been met with a lot of skepticism as well.

Poppy.

HARLOW: But isn't it true, Donie, that some of the biggest advertisers on FaceBook never -- haven't backed out?

O'SULLIVAN: Well, so, this is FaceBook, you know, that -- FaceBook has the numbers of who are their biggest advertisers. That not necessarily isn't public information. But you're right, a lot of FaceBook's biggest advertising revenue comes from the small and medium-sized businesses. And, you know, we don't really have much of an insight into what they are doing.

HARLOW: Yes.

Donie, thank you for that reporting. We'll see what comes of the meeting later today.

Coming up, a top expert says the coronavirus situation in Texas is a, quote, catastrophe. The former FDA commissioner who is advising Texas Governor Greg Abbott is with us to talk about the state right now.

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