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School Safety During A Pandemic; Hong Kong Police Arrest Media Mogul Jimmy Lai; Officials Convey U.S. Message Of Strong Support For Taiwan; Donald Trump's Executive Actions on Virus Relief Under Fire; Biden Expected To Announce VP Pick This Week; New Zealand Declares 100 Days COVID-19 Free. Aired 12-1a ET

Aired August 10, 2020 - 00:00   ET

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

[00:02:00]

MICHAEL HOLMES, CNN HOST: Hello, and welcome to our viewers here in the United States, and all around the world, I am Michael Holmes.

Coming up here on CNN NEWSROOM, the Georgia school where this viral image was taken is now closed for two days to disinfect, because of coronavirus. Could this become a trend across the nation?

In Beirut, a family search for a loved one following a deadly warehouse explosion.

And as countries around the world struggle with reopening and keeping coronavirus numbers down, one nation stands out. We take a look at how New Zealand has managed to go a hundred days without a single local infection of the virus.

Five million coronavirus cases and counting. The U.S. crossing that milestone on Sunday, a mere 17 days after hitting the four million mark and more than doubling the number of cases since the beginning of last month.

Keep in mind, these are just the cases we know about, of course. You can see how quickly these infections are spreading when you compare them to earlier in the pandemic. It took the U.S. 99 days to reach one million cases back in late April.

Well, the latest total, also means, the United States is home to about a quarter of all COVID-19 infections worldwide, and nearly, a quarter of all of the fatalities, by far, the most.

Now, since July 21st, there is only been four days where the U.S. did not record more than a thousand deaths.

But none of that was not enough to halt a huge biker event in the State of South Dakota. The 88th Annual Sturgis Motorcycle Rally goes through August 16th, and health experts fear, it could turn into another super spreader event. Very few masks in sight, as you can see.

But in the French capital, you better cover-up. Parisian authorities now require everyone over the age of 11 to wear a face mask in many busy outdoor areas, like the ones you see outlined there. Those caught bare faced could be fined $160.00.

And in Brazil, the President, once again blasting lockdowns and the media, after his country surpassed 100,000 COVID-19 deaths over the weekend. Jair Bolsonaro tweeting, quote, "Misinformation kills more than the virus itself."

Meanwhile, schools in the United States are still wrestling with the dilemma of whether to bring children back into the classroom. Just one week into the new school year, a high school in the U.S. State of Georgia telling students now to stay home. North Paulding High School reported nine cases of COVID-19 among students and staff after a student tweeted this image last week showing her classmates in a crowded school hallway between classes, few wearing masks.

[00:05:11]

HOLMES: On Sunday, the school superintendent told parents that classes would be held online only for the start of the second week while cleaning takes place.

CNN's Natasha Chen with more.

(BEGIN VIDEOTAPE)

NATASHA CHEN, CNN NATIONAL CORRESPONDENT: The superintendent's letter announcing that students should stay home Monday and Tuesday, come just a day after the principal of North Paulding High School told families that at least six students, and three staff members had tested positive for COVID-19.

Now, the district had already planned that the first week of school was going to involve three days in-class, two days at home with virtual learning. Now, they are extending that virtual learning at home from Monday and Tuesday, as the district disinfects the campus and consults with the local health department on how to proceed in the coming days.

The superintendent told families they would receive notification by Tuesday on what happens after that. Here is Hannah Watters, a student who got into some amount of trouble when she posted a photo of a crowded hallway last week that circulated the internet, showing students close together, many of them not wearing masks.

(BEGIN VIDEO CLIP)

HANNAH WATTERS, STUDENT, NORTH PAULDING HIGH SCHOOL: The fact we already have nine cases, just at the end of that week is very concerning, because even then, we don't know how many those nine people came in contact with, or how many people are not taking tests yet, so they don't know and then they come back, possibly this week, too. So this is just going to spread like wildfire in that school.

(END VIDEO CLIP)

CHEN: North Paulding High School was not the only one reporting positive COVID cases in the Metro Atlanta area. In Cherokee County, 260 students and staff are quarantined after some people tested positive in the first week of school.

In Gwinnett County where teachers were doing prep work inside the buildings, 260 employees in that district are either quarantining or have tested positive for COVID-19 as well.

Natasha Chen, CNN, Atlanta.

(END VIDEOTAPE)

HOLMES: Britain's Prime Minister, pushing to reopen schools by September saying it is, quote, "morally indefensible to keep them closed." Primary schools reopened back in June, but all others have been closed since March.

The government, pledging more than a billion dollars to help students catch up, but the Prime Minister's push comes on the heels of a recent study, warning that the U.K. could see a second coronavirus wave this winter if schools opened without a stricter testing system.

Children in Israel have already gone back to school. They returned in May after two months of lockdown. To the decision-makers, it looked like the right decision at the time, but they have learned some incredibly hard lessons that the world could listen to. Elliott Golkine reports.

(BEGIN VIDEOTAPE)

ELLIOTT GOLKINE, JOURNALIST (voice over): From teacher's pet to now bottom of the class. On some measures, Israel is now grappling with one of the world's worst COVID outbreaks.

Schools, like this one in Jerusalem, its alumni include President Reuven Rivlin and novelist, Amos Oz are a big reason why.

Ari Kaplan is the head of the Jerusalem Parent-Teacher Association.

(BEGIN VIDEO CLIP)

ARI KAPLAN, HEAD OF THE JERUSALEM PARENT-TEACHER ASSOCIATION: We had a kid that is a super spreader, and because of it, we had 150 kids who were infected, like 25 teachers. It is a huge school. It's around 1,200 students, and they have brothers and sisters all around Jerusalem.

We had like 25 schools that were closed.

(END VIDEO CLIP)

GOTKINE (voice over): Soon after the school reopened, it had to close again while students and staff went into quarantine. But it was almost certainly too late. About half of all Israeli coronavirus cases in June, as Israel's second wave began could be traced to school outbreaks.

(BEGIN VIDEO CLIP)

GABI BARBASH, FORMER CEO, TEL AVIV SOURASKY MEDICAL CENTER: I think Israel got too optimistic when it saw the numbers declining.

(END VIDEO CLIP)

GOTKINE: Professor Gabi Barbash is one of Israel's leading disease experts. He says plans to reopen schools after the summer are premature.

(BEGIN VIDEO CLIP)

BARBASH: I think we are not ready for that. I think Israel is experiencing now 1,700 to 2,000 cases per day, new infections per day. It is impossible to open the education system by the 1st of September if that doesn't come down.

(END VIDEO CLIP)

GOTKINE (voice over): The government is having none of it.

(BEGIN VIDEO CLIP)

YOAV GALANT, ISRAELI EDUCATION MINISTER (through translator): We are determined to start the school year in 25 days' time. I want to make it clear though, not everything will be perfect. With corona, it is not possible to permit a full study program for everybody.

(END VIDEO CLIP)

GOTKINE (voice over): The plan is for children up to grade 2 to attend school as usual. Grade 3 and above will see class sizes capped at 18 per room. And from grade 5, learning will be split between school and home with most of the teaching, expected online. That, of course, assumes the plan goes ahead.

(END VIDEO CLIP)

[00:10:06]

GOTKINE (on camera): Israel's dilemma is shared by many others. Reopen schools after the summer and risk another COVID surge or keep kids at home and risk harming their education and an already reeling economy.

There is no easy solution.

GOTKINE (voice over): An extended summer recess could yet be on the cards. Elliott Gotkine, CNN, Jerusalem.

(END VIDEOTAPE)

HOLMES: Joining me now is Shetal Shah, Professor of Pediatrics at New York Medical College. I really appreciate your time and your expertise on this, Professor.

I think a lot of parents -- you know, we all agree kids should be in school, and for some children, it's where they get their nutrition as well. But given the spread of COVID in the U.S., including at schools, what do you think is the right time for a school district to reopen the classrooms? What is the point?

DR. SHETAL SHAH, PROFESSOR OF PEDIATRICS, NEW YORK MEDICAL COLLEGE: Sure. I think we all agree that school is really ideal place to nurture children from an educational, social, and emotional standpoint.

But we really have to understand that while we are pursuing that goal, we really have to balance that with the risk of spreading COVID-19. So, when people say, what is the right time to open schools? It's a very common question that all pediatricians are getting right now. There is really no specific right time.

I think what you can do is create a group of factors and take those factors into consideration in deciding when you should open schools. You need a low positivity rate, so very low levels of circulating disease in your community.

You need widespread testing, so you know that that positivity rate is accurate, and you also need a school environment that is really conducive to public health measures that we know work, like social distancing.

HOLMES: You know, they are such commonsense things, and yet, in many cases, that is not what is happening. I mean, I think the COVID percent positive rate in Georgia is around 11 percent and schools are reopening and the infections are spreading.

There was a photograph of a crowded hallway that has made the news lately at a high school here in Georgia and that school is now shutdown because -- for a couple of days at least -- because of spread.

The C.D.C. and the W.H.O., they are saying five percent positivity rate. And the other question I guess is, how does a school operation- wise, realistically, put it into play the sensible guidelines you outlined?

SHAH: Well, yes, that is really going to be based on discussions with teachers, local public health officials, and the parents themselves. Here in New York, we using also that five percent benchmark. Our current positivity rate is a little less than one percent, so our governor has given each school district the green light to reopen, as long as regionally, that level remains low.

But how can you specifically implement that is going to be based on each individual district because every district has a different number of students and every district has a different school where the ability to space students out varies.

HOLMES: This past week, Donald Trump said children are, quote, "basically immune from coronavirus" while the W.H.O. warned that the infected are starting in fact, skew younger, and the numbers showing more young people get infected

I think the Academy of American Pediatrics says cases among U.S. kids rose 40 percent from the first half of July to the second half. I mean, what sort of potential for spread is there in schools when kids, clearly, are getting infected?

SHAH: Sure. There are a couple of things we do know about the virus and children as opposed to the virus in adults. What we really need to understand is that understanding your local disease rates and the local epidemiology here is really crucial.

If you are in a place where disease rates are spiking or rising steadily, it really should give local administrative officials pause and cause real concern about whether or not the schools should reopen.

HOLMES: I did want to ask you something else, because I was reading up on your background. A lot of your work has been -- part of your work has been in immunization. I'm just wondering, when, and if a vaccine comes along, how concerned are you that people will not take it? There is, after, all a very sizeable anti-vaccine movement in the U.S. and it's tough, doctors say to get people to get their flu shot, let alone this.

SHAH: Yes, this is going to be a major concern. There are news reports that say that approximately 50 or half, to two-thirds of people will accept coronavirus vaccinations, which leaves a large portion of the population unimmunized.

That's not going to be a very effective public health strategy for a vaccine that is expected to at best 75 to 80 percent affective. So what that means is that we are not going to be able to relax our public health measures, our public health protective measures even if there is widespread vaccination.

It also means that there is going to need to be a widespread public health education campaign across the country, so people really understand the importance of getting vaccinated.

[00:15:27]

HOLMES: Dr. Shetal Shah, I appreciate it. Professor, thank you so much.

SHAH: Thank you.

HOLMES: We will take a quick break. When we come back, Hong Kong makes its biggest rare stand of the new National Security Law. We will have details on the serious accusations this media tycoon is facing.

Also, the search for survivors in Beirut, ongoing, but hope fading. One family's story when we come back.

(COMMERCIAL BREAK)

HOLMES: Police in Hong Kong have arrested media mogul and democracy proponent, Jimmy Lai along with six other people under that controversial new National Security Law.

Police say Lai is suspected of colluding with foreign forces, a crime punishable by up to life in prison. His newsroom offices have been raided. For more, CNN's Will Ripley joins me now live from Hong Kong. This is

a high-profile arrest. A lot in the media industry would be having chills right now. Is it more message being sent than supposed offense?

[00:20:18]

WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: There was one activist, Michael, who said within the last couple of hours that this is the beginning of a Hong Kong media blackout. To see police in a news room of a news outlet that for 20 years has been a fierce critic of Hong Kong's pro-Beijing government and the Mainland itself and to see officers there talking to reporters and newsroom staffers, gathering evidence inside a newsroom including where stories are being worked on at this very moment.

It could be about the government and whatnot. It obviously is very concerning, and of course the person who owns the whole operation who owns "Apple Daily" is Jimmy Lai, a billionaire, outspoken, unafraid. He has said to cause trouble, to speak his mind and to support his publication, which even went so far -- the newspaper actually printed out posters that people could cut out of the paper and bring with them to the anti-government pro-democracy rallies that was heavily attended last year.

And now, the fact that he is now being targeted, one out of at least seven people arrested under the National Security Law, obviously, there are huge concerns about what this means moving forward for freedom of the press here Hong Kong.

HOLMES: And just quickly, Will, how has life changed in Hong Kong since these laws have come into place for ordinary Hong Kongers?

RIPLEY: Well, the biggest change versus last year obviously is that there are no more protests and the reason for that is being pinned the pandemic, as of right now, groups of larger than two are currently banned.

But of course, the chilling effect of having this National Security Law with penalties ranging from three years to potentially life in prison for grave offenses, the possibility of police entering your home without a search warrant issued by a judge or using your past social media posts as evidence against you if you are accused of committing a crime -- it has certainly had a chilling effect on people who are inside the city and their willingness to come out and demonstrate.

In terms of the long term implications, whether news outlets that are foreign based will remain here or whether they will leave, much like "The New York Times" which is already taking steps to move some of its staffers to Seoul that is what we just have to watch and see.

HOLMES: Extraordinary times. Will Ripley in Hong Kong, appreciate it. Thanks.

Well the most senior American official to visit Taiwan in over 40 years has now met with Taiwan's President. Alex Azar conveyed to Tsai Ing-wen the Trump administration's quote, "strong support and friendship" for Taiwan.

Azar praising what he called Taiwan's incredibly effective response to the coronavirus pandemic, and it has been hugely successful.

This trip has been condemned by China which claims the self-governing island is part of its territory.

Protests erupting across Belarus after election returns appeared to show a big and in the eyes of many highly dubious victory margin for the incumbent President Alexander Lukashenko.

[VIDEO CLIP PLAYS]

HOLMES: Thousands of people unleashing their fury in the capital city of Minsk and elsewhere also around the country.

Mr. Lukashenko who has ruled for nearly three decades has faced a wave of anger over his handling of the coronavirus pandemic and the economy as well.

Despite that, official state approved exit polls gave him an overwhelming majority of 80 percent of the vote. His main opponent, Svetlana Tikhanovskaya, a former teacher won nearly seven percent of the vote in those state figures.

However one independent monitoring agency disputes that finding and after counting more than a million ballots, that agency says Tikhanovskaya won 80 percent, not Mr. Lukashenko.

Angry protesters meanwhile on the streets of Beirut for a second day clashing with police as they demanded the entire government step down. It's estimated more than 300,000 people are homeless after Tuesday's massive explosion, a number of people still missing, and families desperate for answers.

Arwa Damon joins us now with more on that. It must be so difficult for those people, Arwa. What did you find?

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Michael, it's absolutely heartbreaking, especially because these families are trying to wrap their minds around the size of this explosion and desperate for any sort of news about their loved one.

Of course the likelihood of that became more difficult as the days went on. But we met with one family just as they were trying to put together the clues and search for their missing loved one.

(BEGIN VIDEOTAPE)

DAMON (voice over): Michele hasn't slept in three days. Neither has her sister-in-law with whom she shares the same name and a love for Joe, husband and brother.

Michele struggles to form words and sentences in Arabic, never mind in English. Joe is an electrician at the port.

And this is the last video she got from him on Tuesday night.

[00:25:21]

DAMON (voice over): Minutes later, the entire building he was filming would explode. Jennifer, Joe and Michele's oldest child was in Beirut.

(BEGIN VIDEO CLIP)

MICHELE ANDOUN, JOE'S SISTER: So she heard the explosion and she started crying and shouting, this is my dad's -- (speaks in foreign language).

TEXT: It was live on TV. She said, "This where my dad works."

DAMON: Oh, she knew that's where her dad worked.

MICHELLE TANIOS, JOE'S WIFE: (Speaking in foreign language)

TEXT: Oh, poor Joe.

(END VIDEO CLIP)

DAMON (voice over): The entire family was frantic, calling Joe nonstop.

ANDOUN: At night, Joe opened his phone for 21 seconds. Her father heard voices, deep voices, that's what he said and then nothing.

(END VIDEO CLIP)

DAMON (voice over): Another call also seemed to have gone through on Wednesday for 43 seconds, but there was silence on the other end. He must be alive they thought. They had to get to him.

Joe is a strong, clever. He would have figured out a way to save himself. They comb through videos shot by others from other angles, looking for any clues to give teams locations to search.

(BEGIN VIDEO CLIP)

DAMON (on camera): You think that's Joe?

TANIOS: Yes. This is him.

DAMON: You think that one of those people is Joe?

TANIOS: Of course.

UNIDENTIFIED FEMALE: We are sure and he was filming from here.

(END VIDEO CLIP)

DAMON (voice over): It's the building right in front of the grain silo, a building that is now buried, but they still had hope. There's an operations room deep underground. They heard there are bunkers.

Three bodies were pulled out, but no, Joe may he is deeper in, deeper under somehow still alive.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: They would have to keep searching.

(END VIDEO CLIP)

DAMON (voice over): Michelle was born in the U.S., the children also have American passports. Joe was just about to get his visa. All that now seems like a different reality.

(BEGIN VIDEO CLIP)

ANDOUN: He loves life. He wanted to go to America because it's better for her, for Jennifer, for Joy, for their future, but not for him.

(END VIDEO CLIP)

DAMON (voice over): The women are trying to shield the children from their grief.

JENNIFER, JOE'S DAUGHTER: (Speaks in foreign language).

TEXT: My shoes smelled bad so they washed me.

(END VIDEO CLIP)

DAMON (voice over): Jennifer doesn't know daddy is missing. Joy is thankfully too young to fully understand. Maybe they will never have to tell the girls their daddy is dead.

That night, the fourth after the explosion, the crews were searching around the clock, searching the area where the family believe Joe would be found. Clinging to the hope that he could somehow still be alive. At 4:00 a.m., they sent us a heartbroken message. Joe's body had been found.

(END VIDEOTAPE)

DAMON: And Michael, I mean, that pain that that family is going through and similar pain being felt by so many across the city. That's not the sort of thing that anyone can be expected to just brush away and soldier on from.

This population here, they need to know that their future is going to be better than their past, and everyone who we are talking to believes that the only way to accomplish that is to completely and entirely change those in power, and the system of governance.

HOLMES: The loss magnified by the fact that as you've reported this just should not have happened. Arwa Damon in Beirut, great reporting. Thank you.

President Donald Trump going it alone and now taking a premature victory lap over his virus relief plan. We'll discuss coming up.

(COMMERCIAL BREAK)

[00:32:35]

MICHAEL HOLMES, CNN HOST: And welcome back to CNN Newsroom, everyone. I'm Michael Holmes.

The United States now exceeding the staggering milestone of five million coronavirus cases. Joe Biden, the likely Democratic nominee in the November presidential election tweeted that five million is quote "a number that boggles the mind and breaks the heart." And goes on to say, "it shouldn't have gotten this bad."

President Trump meanwhile has been hyping his new virus relief package, which you unilaterally extended through the use of executive action, but it's more complicated than that. There's red tape, there are strings attached. It's not that simple.

Jeremy Diamond explains.

(BEGIN VIDEOTAPE)

JEREMY DIAMOND, CNN WHITE HOUSE CORRESPONDENT: While the President has been facing criticism since he signed those executive actions on Saturday to bypass those stalled negotiations with Congress over coronavirus relief, the Republican Senator, Ben Sasse calling this unconstitutional slop. House Speaker Nancy Pelosi slamming this is absurdly unconstitutional.

But the President for his part on Sunday as he was returning from his golf club in Bedminster, New Jersey, he was taking quite a victory lap.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES: I think it actually works better if we do it the way we're doing it. We've gotten much of what we wanted without having to give up anything and that's very good. You can't beat that.

You can't beat the deal we made, we have gotten much of what we wanted and didn't get what they wanted.

(END VIDEO CLIP)

DIAMOND: The President on Sunday also answering questions about those enhanced unemployment benefits that he signed in an executive action on Saturday. According to that executive action, $400.00 per week would go to unemployed Americans, $300.00 of which would come from the Federal government, but that is only contingent on states agreeing to administer this program, and also agreeing to pony up that $100.00 per person to bring it to a total of $400.00.

But the President on Sunday suggesting that there could be a situation where the Federal government would pick up 100 percent of the cost, not clear on if that would be under $300.00 or on the $400.00. But the President suggesting that if certain governors make that

request of him that that is indeed something that he would consider approving.

But of course the devil is in the details and we have yet to actually see those details from the white house.

Jeremy Diamond, CNN, the White House.

(END VIDEOTAPE)

[00:35:01]

HOLMES: Eleni Giokos has been following the stimulus negotiations, joins me now from Johannesburg. Eleni, we have heard the President, he quote-unquote "ordered," but it's -- so much is smoke and mirrors.

There's tens of millions of Americans still without their unemployment benefits. They still don't have eviction protections either.

ELENI GIOKOS, CNN BUSINESS AFRICA CORRESPONDENT: Exactly, I mean, the real collateral damage here are the millions of Americans that have seen key benefits and protections expire at the end of July, and these talks have been going on for two weeks.

But we knew there were going to be problems from the get-go because within the Republican Party itself, we saw points of contention, and one of the big issues here has always been that enhanced benefit program that has seen an extra $600.00 a week in the hands of unemployed Americans.

That's over and above the normal state benefits that we have seen coming to the fore.

Now, when talks actually fell apart on Friday, President Trump intervened by issuing Executive Orders and saying that he wants to scale back that enhanced benefit to $400.00 a week.

Now we are talking about the devil being in the detail and of course who is going to be paying for this? Cash-strapped states are going to have to pay the 25 percent of that new enhanced benefit. That's going to be a really big problem.

We already know that there are going to be legal challenges here with regards to these executive orders, but the reality is still going to be about those eviction protections. Again, loopholes here in the language that doesn't actually create a blanket protection for vulnerable people.

HOLMES: Yes, there's so much. I mean, there was the promised payroll tax holiday, too, which even most Republicans aren't in favor of because A, it doesn't help the situation. And B, payroll tax funds Social Security and Medicaid.

GIOKOS: Exactly. And look, this was on President Trump's wish list initially. Then it was taken off, and now, he has found way to get it back in to discussions.

But when I look at the macro perspective here, you have got the Democrats talking about an over three trillion dollar stimulus package. You've got Republicans talking about $1 trillion.

The point of divergence are enormous. To find consensus is going to be really hard. It's about healthcare. It is about education. It is about that enhanced benefit as well.

So getting to the table means that both sides are going to have to find a way, firstly to look at that overall number and then start splitting it up overall.

The unemployment figure in the United States is yes, getting better, but definitely not quick enough. We're still at a higher point than what we were during the global financial crisis. Here, we are talking about COVID-19 cases increasing.

That in many instance is derailing the reopening of businesses and in some case, reversing the reopening of businesses. So, definitely, not of out of the woods yet, Michael. The stimulus is going to be vital.

HOLMES: Hard to break the job gains when there has been -- you're coming off of such a low base from job losses. Eleni Giokos in Johannesburg, appreciate it. Good to see you, my friend. We will talk later.

Well, joining me now for more on this, Ron Brownstein, CNN's political analyst and senior editor at "The Atlantic." Always a pleasure, sir. Let's start with those executive orders, not bills as the President said.

I mean, is it a case of this is a President who think he has been given these vast new powers and he is going to use them. Speak to the precedents and the legality of a President making such decisions.

RON BROWNSTEIN, CNN POLITICAL ANALYST: This is the President who said the Constitution says I can do whatever I want. As is often the case, however, Michael, there's a little less than meets the eye here in these executive orders.

The eviction protection is really and an aspirational executive order and the payroll tax is kind of fascinating because the President can't unilaterally cut the payroll tax. What he is doing is deferring the collection of the payroll tax.

So unless Congress passes legislation somewhere down the road, all Americans are doing would be delaying their paying, now there are some might be of benefit, but ultimately people will have to pay this tax next year.

The real, I think meaning of what's happening here is that Republicans in Congress who raise the roof and kind of you know, said the Constitution was being lit on fire when Barack Obama used executive orders particularly in his second term on issues like providing legal status to young people brought here illegally by their families. They are, with the exception of Ben Sasse that Jeremy Diamond noted, they are kind of not raising -- blinking an eye at this or raising an eyebrow at this.

And they are, I think, as with the diversion of funds to build the border wall earlier, they are setting a precedent that it is highly likely the next Democratic President will be more than happy to exploit.

HOLMES: And Republicans won't have the gall to criticize for given what's going on with this President. On that payroll tax, too, in a purely political stance, payroll tax funds Social Security and Medicare. There's an election coming on. You want to annoy all the voters? There you go.

BROWNSTEIN: Well, look, I mean, you know, the ultimate impact as we are saying is unclear in the sense that he may only be deferring the tax unless Congress agrees to cut it.

But of course, the President said, he wants to permanently forgive these payroll taxes for these months and you're right, that provides the Democrats an enormous opening to say with justification that if he gets his way, he is endangering the funding for social security and Medicare.

[00:40:16]

BROWNSTEIN: And viewers should understand that the most important change in the electorate since 2018 has been the movement away from the President among older voters, largely around the coronavirus.

In 2018, we saw a big movement among white collar college educated suburban voters, that problem is remaining. But now, there is an additional difficulty for the President among seniors that was not there in 2018, and that's why when those two things combined with the underlying problems he has always had among younger voters and non- white voters, that's why he is in such a precarious position right now.

HOLMES: Well, if they are moving away from him, one presumes, they are moving towards Joe Biden. Speaking of which, handicap the Joe Biden the VP pick for us, what is your read. A, on the best bit? And B, how has he handled this?

BROWNSTEIN: I think he's handled this process very poorly. I think it gives Democrats a lot of anxiety about some of his ability to navigate the very complex environment he will face if he wins in November.

One thing that has been striking about this process is that you have a lot of old white men in the Democratic Party criticizing young nonwhite young woman as part of the process. Chris Dodd, the former senator who Biden somewhat inexplicably has put near the center of this process; Ed Rendell, the former governor of Pennsylvania. They've been very critical of Kamala Harris and of some of the other potential choices.

I think that the Vice President has kind of -- has not shown the decisiveness that he needs here. Having said that, I would be surprised if he did not pick an African-American woman.

I know that there's of interesting -- Gretchen Whitmer, the Governor of Michigan; Elizabeth Warren, the senator from Massachusetts, but black women were essential to his victory in the primary, a strong turnout among them, is essential to him if he is going to win in November.

And the fact that there's so many prominent African-American women in the center of the consideration, if he passes over all of them, I think that would look very conspicuous, and in the end of those women, you would say, Karen Bass has shown herself -- the congresswoman from California not sufficiently vetted to really put on the national ticket.

Susan Rice, he has a good chemistry with. She is a very talented woman, but her expertise is foreign policy and this is not an election about foreign policy.

In the end, I think, he kind of end up with where he started that the most logical pick whether he gets there or not is Kamala Harris, the senator from California and the former presidential candidate.

HOLMES: Kamala Harris, yes, indeed and you put it well. I mean, at the end of the day, politics in America, all white guys. Well put, as always, Ron Brownstein. Thanks very much.

BROWNSTEIN: Thanks for having me, Michael.

HOLMES: Last year, White House aides asked South Dakota's Governor about the process of adding the President to Mount Rushmore, apparently. This is according to "The New York Times." When President Trump visited North Dakota last month for a Fourth of July celebration, the Governor reportedly gave him a small replica of Mount Rushmore with his face added.

The President mentioned having his face added to the actual carvinga t a rally in Ohio a few years ago.

The senior Trump campaign adviser told CNN this is a serious time and someone may have gotten ahead of themselves in talking about that.

The big business of marijuana doesn't stop just because there's a pandemic. We will show you how the pot industry is flourishing in the U.S.

That's coming up after the break.

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[00:46:49]

HOLMES: Even after the coronavirus pandemic sent the U.S. economy into a tailspin, demand for one product has not gone down. Polo Sandoval tells us about skyrocketing marijuana sales in one state.

(BEGIN VIDEOTAPE) POLO SANDOVAL, CNN CORRESPONDENT (voice over): In Illinois, pot is

paying off. Eight months after the state legalized recreational marijuana, business is booming in part because of the global pandemic.

Welcome inside Sunnyside at the Chicago suburb of Schaumburg. After its opening last week, the store became the state's largest licensed dispensary. Lately, customers like Lisa Morath has been stopping by for a little help in dealing with the stress and anxiety felt by many Americans due to COVID-19.

(BEGIN VIDEO CLIP)

LISA MORATH, STORE GOER: It kind of puts me into a meditative state, actually.

UNIDENTIFIED MALE: That's $25.00 even. Thank you.

(END VIDEO CLIP)

SANDOVAL: For Joshua Simao, the occasional joint can help him ease his concerns about the pandemic and the economic crisis hitting families like his.

(BEGIN VIDEO CLIP)

JOSHUA SIMAO, CUSTOMER: Right when the pandemic hit, you know, everybody started losing their jobs and stuff like that. You know, I was a victim of that.

So, I really do think that this has helped me deal with some of that.

SANDOVAL (on camera): So you have had economic issues due to COVID?

SIMAO: Yes.

SANDOVAL: And this has helped you at least take a moment to just --

SIMAO: To relax and just, you know, just know everything is going to be all right. You know, we're going to get through this.

(END VIDEO CLIP)

SANDOVAL (voice over): Medical experts do warn that smoking marijuana even occasionally can increase the risk for severe COVID-19 complications. Still, demand is unlike anything, Illinois pot retailers predict it says, Jason Erkes with CRESCO Labs, that's Sunnyside's parent company.

(BEGIN VIDEO CLIP)

JASON ERKES, CHIEF COMMUNICATIONS OFFICER, CRESCO LABS: They may have lost their job and they're suffering. They have symptoms of anxiety. They have symptoms of depression. They're having trouble sleeping, and cannabis has been known to be a great alternative for that.

So, they're looking to cannabis to help with those symptoms. (END VIDEO CLIP)

SANDOVAL (voice over): His company trying to normalize pot products and it seems to be working with a constant stream of socially distant customers.

(BEGIN VIDEO CLIP)

ERKES: If someone wants something that's not smokable and they're looking to take the edge off, take the anxiety off, something like this, a low dose gummy, two milligrams is a great place to start.

(END VIDEO CLIP)

SANDOVAL (voice over): The high is temporary, but the financial benefits for the state and city can be long lasting. Just look at this year's soaring pot profits.

According to state statistics, legal cannabis sales have been steadily rising. In July, Illinois dispensary sold about $61 million worth of product. Record sales for the state, while other retail sectors took a financial hit.

(BEGIN VIDEO CLIP)

ERKES: Right now, those municipalities that stood up and said we want a cannabis retailer in our community are thankful they did. They're generating a lot of tax revenue, both locally and for the state.

(END VIDEO CLIP)

SANDOVAL (voice over): The state's tax revenue from pot sales already exceeded $52 million. About 35 percent of that is supposed to go back into local governments.

(BEGIN VIDEO CLIP)

ERKES: I think municipalities across the state are first of all seeing stores like this and realizing they made an okay decision to allow a cannabis store in their community and the tax benefit as an ancillary benefit.

The residents aren't unhappy, the sky isn't falling, and you know, they're getting a nice tax benefit to be able to help with some of the issues they're having.

(END VIDEO CLIP)

SANDOVAL (voice over): It may be too soon to tell exactly how much the pandemic is affecting marijuana sales in Illinois, after all sales just became legal in January.

But what many here are hoping for is that pot will be the big great life preserver that will help keep local economies afloat amid the COVID-19 crisis.

Polo Sandoval, CNN, Chicago.

(END VIDEOTAPE)

HOLMES: And next on CNN NEWSROOM, a rare success story in the coronavirus pandemic. What did New Zealand do right and can the country keep it going? We will be right back.

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[00:54:12]

HOLMES: Now, thanks to strict lockdown measures and other preventative steps, New Zealand has made it over a hundred days without a single locally transmitted case of the coronavirus.

Now, the country is one of the safest places in the world from the pandemic.

(BEGIN VIDEOTAPE)

HOLMES (voice over): A photo op at a grocery store chatting with shoppers, playing with a baby. It's the picture of success for New Zealand Prime Minister, Jacinda Ardern who kicked off her reelection campaign on Saturday, and a day later, marked a hundred days without recording a single locally transmitted case of coronavirus. A rare accomplishment in a world struggling to contain infection rates, but one Ardern says she won't take for granted.

(BEGIN VIDEO CLIP)

JACINDA ARDERN, NEW ZEALAND PRIME MINISTERL: A hundred days doesn't change anything for New Zealand, it doesn't make any less likely. We are still having to of course manage our borders very, very carefully.

(END VIDEO CLIP)

[00:55:08]

HOLMES (voice over): Which is something New Zealand has done from the start. The country had its first confirmed case on February 28 and moved quickly to stop the spread.

(BEGIN VIDEO CLIP)

ARDERN: We must go hard and we must go early. We must do everything we can to protect the health of New Zealanders.

(END VIDEO CLIP)

HOLMES (voice over): Within weeks, New Zealand closed its borders, imposed a nationwide lockdown and began a rigorous system of tracing and contact tracing. That kept the number of confirmed cases to just over 1,500 and a death toll of 22.

Some critics say the virus was easier to contain here since it is a remote island nation and has a population of just five million. The problem now for New Zealand is to prevent a flare-up, which

countries like Vietnam and Australia are facing.

In the Australian State of Victoria, the capital, Melbourne is on lockdown after a second wave of the virus and reported 17 deaths on Sunday. Officials say some people are not obeying the quarantine.

(BEGIN VIDEO CLIP)

DANIEL ANDREWS, VICTORIA, AUSTRALIA PREMIER: Those rules are there for all of us, and now Victoria has the right to be able to say, oh, well, I think I can do something that no one else is allowed to do. You have got to follow those rules.

(END VIDEO CLIP)

HOLMES (voice over): Rules which have so far worked in New Zealand, where almost all restrictions have now been lifted for coronavirus.

(END VIDEOTAPE)

HOLMES: Thanks for watching CNN NEWSROOM, spending part of your day with me. I'm Michael Holmes. Don't go anywhere though, I will be right back with another hour of news after the break.

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