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Trump Admits He's Blocking Postal Service Funding to Stop Mail- In Votes; Biden, Harris Call for Nationwide Mask Mandate; Biden and Harris to Hold Even Together for 3rd Straight Day; U.S. Declines Russia's Offer to Help "Operation Warp Speed"; U.S. Retail Sales Up, But Signs of Possible Slowdown Ahead. Aired 9:30-10a ET

Aired August 14, 2020 - 09:30   ET

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

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[09:31:21]

JIM SCIUTTO, CNN ANCHOR: You want to pay attention to this because it affects your vote, your voice in this election. Troubling election news as the nation faces of course the deadly pandemic. The president is continuing baseless attacks, not supported by data or history against mail-in voting. He's now facing a deadline from a federal judge in Pennsylvania who ordered the president and his team to provide proof tonight that it exists. This in response to a lawsuit his campaign has filed in that state.

And as the president now openly admits, he said this yesterday morning that he's blocking funding from the U.S. Postal Service right now because that will prevent the Postal Service from having the resources necessary to process an increased number of mail-in votes.

Keep in mind, a lot of people are interested because they don't want to take the risk of going into an in-person polling station. That money is critical because the Postal Service is right now removing, it's removing hundreds of high volume mail processing machines, machines that process mails, sort the mail faster. Why in God's name is that being done now?

With me now is David Becker. He is executive director of the Nonpartisan Center for Election Innovation and Research. Mr. Becker, thanks for joining us this morning.

DAVID BECKER, EXECUTIVE DIRECTOR, NONPARTISAN CENTER FOR ELECTION INNOVATION AND RESEARCH: Thanks for having me.

SCIUTTO: So I'm not going to repeat the president's claims because that gives more oxygen to something that's false. But just for the sake of our viewers who may not be following this closely, why should they be confident that voting by mail is secure?

BECKER: Well, the main reason they should be confident because we've been doing it for a very long time and states know what they're doing. Whether it's in states like Washington and Oregon and Colorado that have been doing this for decades, every single state allows for some form of mail balloting.

About 25 percent of all ballots that were cast in the 2016 election in which President Trump won, of course, were cast by mail. Our military relies upon the mail for voting. We've been doing it since at least the civil war.

There are a lot of checks and balances in place to make sure that every ballot that sent out we know where it's going. That the ballots that come back are validated so the right people are voting.

SCIUTTO: Is there a difference in security and the risk of fraud between requesting and receiving an absentee ballot and states mailing ballots to all eligible voters?

BECKER: What the states have done this have found is there's not much difference in security at all because of the validation process that goes on once the ballots are received. The ballots are each check with personal information the voters have to put on the envelope. Their signatures are matched against the signature they have on file. And then, of course, we double check to make sure that that person isn't going to vote elsewhere another time.

So, there are a variety of security measures in place of the eight states where they're going to mail ballots this fall to all voters, of course, run by Republican election officials. So this is a very bipartisan thing.

[09:35:09]

SCIUTTO: You know, I'm old enough to remember the 2000 election when you had the fights over hanging chads and disputes over which ballots that were accepted and not. Do we foresee an election night or nights where you have, you know, Republican and Democratic operatives over the shoulder of election officials saying no, that signature doesn't match?

BECKER: Well, it could be. I mean, we're going to try to avoid that best we can but depending on how close the margins are and how many new voters, how many voters vote by mail for the first time. There could be issues with that.

And one of the things about mail voting is there are ways that voters who are unfamiliar with the process can make mistakes. And so mail voting is a really good option for all voters especially for those voters who are frequent voters who voted before, who voted by mail before, it's very likely they're going to be able to vote successfully.

But if there's any concern about that, if any voters aren't entirely comfortable voting by mail, there will be safe options to vote in- person particularly early in advance of the November Election Day. And I highly encourage people to do that if they have any doubts about mail voting whatsoever. SCIUTTO: Then now, we do expect more people to vote by mail because they're concerned, understandably, about going to a polling station in the middle of a pandemic. So as this is happening, the president and an ally, who is now the postmaster general, is taking resources away from the Postal Service.

You might imagine if you want more people to vote, you would give more resources. But the president said yesterday, definitively he doesn't want to give them money because if you give them money then they can't process the votes.

What can Congress do to prevent that from happening to support the Postal Service?

BECKER: Well, Congress needs to provide funding to the Postal Service and to election officials to help them process all the ballots to run the election appropriately this fall. And, of course, the Postal Service isn't just important for ballots. There's a lot of election information that goes out by mail. There's going to be a lot of polling place changes, voting hours, and options that have changed for people who've last voted.

It's the way election officials communicate that to voters is by the mail. And, of course, our entire economy is based on the Postal Service. There's a lot of reasons to support.

SCIUTTO: Prescription drugs. So a lot of people get that via the mail.

Final question, there are a lot of different rules, processes in different states. For people watching right now who don't know the answer to the question, how can I get a mail invalid, and how can I make sure that that ballot is counted. What's the best resource where can people go right now to look, and I want folks to have a pen and paper out to write this down. What's the best resource for people to find that, the answer to that question?

BECKER: The place I always go is a website run by the National Association of Secretaries of State, canivote.org, canivote.org. And it has a drop-down menu where you can pick your state and direct you to the official website, election website of each state. You can find all the information you need and whatever you do, plan early. Request a ballot early, return a ballot early, vote in person early. Whatever you do, plan early this fall.

SCIUTTO: That site again is, repeat it.

BECKER: Canivote.org.

SCIUTTO: Org. OK. Folks, I'm going to tweet that out now at Jim Sciutto so you have it, you can access it quickly. This is an issue. We're going to continue to cover on this broadcast and get all of you the information you need so that you can vote.

David Becker, thanks very much for your time.

BECKER: Thank you. POPPY HARLOW, CNN ANCHOR: Amen to that. Everyone should look at that site.

All right, as Joe Biden and Senator Kamala Harris ramp up their virtual campaign appearances, they have a message for the nation. Wearing masks is not violating your rights, it's your responsibility as an American.

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[09:43:04]

SCIUTTO: Now to politics and the election. Later this morning, Joe Biden and his newly minted running mate Kamala Harris are set to appear together for the third day in a row.

HARLOW: This comes after both of them together yesterday called for a nationwide mask mandates saying that after speaking with medical experts, it could save 40,000 lives over the next three months. Arlette Saenz joins us from Wilmington, Delaware. I mean, very clearly on their second day together, right, drawing a stark contrast with the administration.

ARLETTE SAENZ, CNN POLITICAL CORRESPONDENT: Yes, they've really honed in on the coronavirus pandemic in their first few days as official running mates. And in just a short while, we'll see Joe Biden and Kamala Harris side by side for the third day. They're going to sign the documents needed to officially receive the Democratic nomination during the convention next week.

But yesterday, we heard both of them forcefully talk about the coronavirus pandemic and the steps that Americans need to take to protect themselves and others, both of them calling for a nationwide mask mandate. Take a listen to a little what they had to say.

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JOE BIDEN (D), PRESIDENTIAL NOMINEE: This America, be a patriot, protect your fellow citizens.

SEN. KAMALA HARRIS (D-CA), VICE PRESIDENTIAL NOMINEE: When Joe talks about his priorities, he knows and he cares about the fact that we have as a nation witnessed 165,000 people who just in the last few months have died in our country.

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SAENZ: Now Biden said experts told him that wearing masks for the next three months could save about 40,000 American lives. And this morning, the campaign is actually releasing a new ad in battleground states talking about the steps people need to stay take relating to coronavirus. And one of those that they're highlighting in that ad is that national mask mandate.

Now, there's a lot of the campaigning has been affected by the coronavirus pandemic including the Democratic National Convention slated to take place next week.

[09:45:05]

It was originally supposed to be anchored in Milwaukee. Biden was going to travel to Milwaukee to accept the nomination. And now, both he and Kamala Harris will deliver their acceptance speeches right here in Wilmington, Delaware. Just showing you another example of coronavirus affecting this campaign.

SCIUTTO: What a world we're in and we're seeing it play out every day. Arlette Saenz, thanks to you.

You can watch CNN's special live coverage of the 2020 Democratic National Convention for all of the biggest moments. The most important speeches, as well as insight as to what it all means for Joe Biden and the future of the Democratic Party. It starts Monday night, 8:00 Eastern Time.

HARLOW: Well, the White house says President Trump has been briefed on what Russia claims is the world's first coronavirus vaccine. A Russian -- and a Russian official tell CNN they've offered the United States, quote, unprecedented cooperation to help with their development of vaccines and treatments.

SCIUTTO: But the U.S. is saying no thanks for now. CNN's Matthew Chance, he's live from Moscow this morning. Matthew, still skepticism over the safety of the vaccine in large part because it bypasses the normal protocols here. Testing over time over thousands, tens of thousands of people.

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Absolutely. I mean, look, it's interesting first of all that the Russians have been in contact with what they say members of the OWS, Operation Warp Speed, the multi-agency body set up to accelerate access in the U.S. to a COVID-19 vaccine, but they're essentially got rebuffed. What the Russians are saying to me is this.

There's a general sense of mistrust in the United States about Russian technologies including about the vaccine, about the testing equipment they've developed here, and about the other treatments for COVID-19 they've got online. And because of that mistrust, those technologies are not being adopted.

Well, you know, as you mentioned, there are good reasons why that might be. First and foremost, when it comes to the vaccine, the fact that it hasn't undergone phase three, it hasn't completed phase three human trials yet, these are the mass testing necessary usually in these situations before a vaccine can be just to be safe and effective before it's released sort of into the population at large. Also, the clinical data that has been gathered so far by the Russians has not been made public. So it hasn't been peer reviewed, peer-reviewed.

And so there's no way of, you know, confirming and verifying that this vaccine is either safe or effective, just underlining that mistrust. CNN has been told by a U.S. public health official, there's no way in hell, this is his words, no way in hell that this vaccine is going to be tried in United States, not on monkeys, and not on people. So not even on monkeys never mind humans is what you said.

So -- I mean, you know, a really strong sense. The U.S. is not going to use Russian vaccine at this point.

HARLOW: It can't be more clear than that. Matthew, we appreciate your reporting on this all week. Thanks a lot.

For the third consecutive month when we talk about the economy, some good news. Retail sales in the U.S. are up but there is some newer data that shows signs of softening. We'll have a check on that ahead.

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[09:52:30]

HARLOW: Welcome back.

We have new numbers this morning on what you're spending, consumer spending, and that's a big indicator of how the economy is doing. And those numbers show the post-shutdown recovery. Since March, we've seen three consecutive months of increasing consumer spending, and now it's slowing a little bit. Retail sales increased by 1.2 percent in July. It is lower than economists predicted.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Yes.

SCIUTTO: OK. So what does it all mean? You know, this is one of those indicators of confidence but also income. Christine Romans, CNN chief business correspondent, put it into context for us.

ROMANS: Sure, guys. Well, you see three months in a row is important of increased consumer spending, and that's because of $600 a week extra in unemployment checks. And because there were stimulus checks that went out to everybody in the country this summer. So you saw that money go right into the economy. But by the end of July, now we're talking about that stimulus expiring and there are real concerns that this engine might slow.

So, 1.2 percent in July, you saw a decline in auto sales, otherwise, that number would have been even stronger. And look at June, June was revised up 8.4 percent so you can see people were really spending in May, June, and July but July tapering off a little bit here. So where were they buying in July?

Electronics and appliances, we're all staying home, we're doing home improvements. Gas station saw increase in sales. Clothing, after a couple of months of being locked down, I guess now we're buying stuff again. And bars and restaurants as there's been a slow reopening across the country you saw people starting to tiptoe out of their kitchens and back to bars and restaurants.

But again, the big concern is what happens next month. There's a lot of money that is now out of the pockets of the unemployed $18 billion a week disappeared with the expiration of those of those jobless -- enhanced jobless benefits and the Senate went home. So we don't have any resolution on more stimulus checks and the like. So a big driver of these three months of retail sales gains has disappeared.

HARLOW: Christine, that warning from JPMorgan this week about what could happen to the broader U.S. economy if Congress doesn't act and there isn't more stimulus this year. You sat down with Jamie Dimon, you know, the CEO of JPMorgan this week. Just big picture, how concerned is Wall Street? And how concerned are investors that more stimulus isn't coming soon?

ROMANS: So the assumption here is that you're going to have another at least $1.5 trillion to $2.5 trillion of stimulus. And that's the baseline assumption of everyone. And again, the Senate went home, their Congress is in recess, so that money is not on the drawing board here yet.

[09:55:01]

And that's the assumption that investors are making is that more stimulus is coming and that it will be broad based and it will get to real people. That there will be state and local funding because you're looking at looming layoffs of firefighters and teachers and any kind of public service worker because these big holes in some of these state budgets. So these new layoffs are looming which will also hurt consumer spending.

So the assumption is that Congress is going to do something, they're just not giving any signal that it's imminent. And that's a real problem for recovery, let alone a V-shape recovery.

SCIUTTO: Yes. Harder for them to do something when they've already gone home.

ROMANS: Yes.

SCIUTTO: Christine Romans, thanks very much.

New projection suggests another 22,000 Americans could die from the coronavirus just in the next three weeks before the end of the summer. And the nation's top infectious disease doctor says he's not pleased, understandably, with how things are going in the country.

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