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New Audio Emerges from Woodward Talks with Kushner; Arizona Democrats Attempt to Flip State; Second Sharp Selloff of the Week on Wall Street; Tropical Storm Zeta Marches North from U.S. Gulf; European Leaders Impost New Restrictions as Cases Surge. Aired 4:30-5a ET

Aired October 29, 2020 - 04:30   ET

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

[04:30:00]

KIM BRUNHUBER, CNN ANCHOR: For a briefing on the worsening pandemic, by contrast, President Trump continues to downplay the virus as he blitzes battleground states such as Arizona. Health experts fear his ill-advised rallies are potential super spreaders.

A whopping 75 million Americans have already voted in person or by mail. That means one-third of all U.S. voters have made their choice well ahead of Tuesday's election.

New eyebrow raising comments have emerging from President Trump's son- in-law and senior adviser, Jared Kushner. He spoke back in April with the prominent journalist Bob Woodward. Kushner said the President was quote getting the country back from the doctors, and he described how the President wanted to play the virus politically.

(BEGIN VIDEOTAPE)

JARED KUSHNER, SNR. ADVISOR TO THE PRESIDENT (via phone): So, with testing now, what he has been saying is don't fall into the same trap that we fell into the first time. The states have to own the testing. The federal government should not own the testing, and the federal government should not own kind of the rules. It's got to be up to the governors because that's the way the federalist system works.

But the President also is very smart politically with the way he did that fight with the governors, to basically say, no, no, no, I own the opening. Because again, the opening is going to be very popular. People want this country open. But if it opens in the wrong way, the question will be, did the governors follow the guidelines we set out or not?

ANDERSON COOPER, CNN ANCHOR: It's a really remarkable thing. First of all, the idea that they fell into a trap, the first time on testing is remarkable. The idea that it's a trap for the federal government to actually be responsible in helping get tests to labs and get Americans tested. It is so cynical the way they're looking at it clearly through a lens of politics from the get-go.

BOB WOODWARD, JOURNALIST: Well, it's not just cynical, it's manipulative, to the 10th degree. I mean here, what Kushner is saying, look, let's give the hard stuff the testing to the governor's, and let's require them to deal with these arrangements would which we've made for opening. And then when there's opening, Trump will embrace that. And that will be his.

And what struck me is it's sad with not any hesitation. It said like, OK, this is where we're going, we're going to do what governors, oh well, they're here to be used and manipulated by the President.

(END VIDEOTAPE)

BRUNHUBER: So many people are voting early in the U.S. that the number of ballots already cast has surpassed the level reached in the 2016 election. Arizona has one state where voters have been sending in their ballots in droves. CNN Kyung Lah shows us how Democrats there are hoping to flip the state to their party from Republican control.

(BEGIN VIDEOTAPE)

[04:35:00]

UNIDENTIFIED FEMALE: Just leave them over here sweetheart.

KYUNG LAH, CNN SENIOR U.S. CORRESPONDENT (voice-over): An election for the ages.

UNIDENTIFIED FEMALE: Can you put stickers on these?

LAH: All ages, for this Phoenix, Arizona family, volunteering to flip the state blue.

UNIDENTIFIED MALE: There is going to be people who are pissed off that have been, you know, it used to be a really red state.

LAH: But change has arrived, say Elio (ph) and his wife cat (ph). Like many new Arizonans they are younger, college educated and voting Democratic helping turn their state into a battleground.

UNIDENTIFIED FEMALE: There's definitely been a shift, a very noticeable shift. Arizona is growing very rapidly. It's no longer just a place for retirees. And it's going to change because there's more families like us.

LAH: Families like theirs are part of Maricopa county's population boom. About 200 new residents relocate to Phoenix's most populous and politically power counties every single day.

(on camera): It used to look like that?

KIRK ADAMS, REPUBLICAN STRATEGIST, CONSILIUM CONSULTING: Yes, it used to be cowboys out here.

LAH: Now --

ADAMS: It's upper middle income. It's professionals. It's highly educated. It is having a political effect. There's no doubt about it. LAH (voice-over): Kirk Adams should know. A decade ago, he was one of the top elected officials in the state. Arizona has voted for Republican presidential candidates since 1952, with the exception of Bill Clinton in 1996.

And this year --

ADAMS: It's advantage Joe Biden.

LAH (on camera): Is that -- like is that shocking for you to say still?

ADAMS: It is still a bit shocking for me to get those words out of my mouth, yes.

You know, President Trump was sort of like gasoline on that fire. He was the accelerant that has produced sort of the position -- the political position that we find the state in today.

UNIDENTIFIED MALE, POLITICAL AD: As Joe Biden knows, this moment is not about him.

LAH (voice-over): The Biden campaign and its allies are spending $6.7 million on TV ads in Arizona the week before the election.

UNIDENTIFIED MALE, POLITICAL AD: He will continue to fight for you.

LAH: About $3 million than the Trump campaign and Republican groups according to data from the ad tracking firm, Kantar Media.

Both President Trump and Joe Biden have made Arizona a top priority, increasing their presence and ground game as election day approaches.

Adding to the changing demographics, about one-third of Maricopa County is now Latino. Maggie Acosta believes new Latino voters and new residents could help Democrats take the states.

(on camera): Do you feel it's different this year?

MAGGIE ACOSTA, DEMOCRATIC CANVASSER, UNITE HERE LOCAL 11: Yes, it is. It's more Latinos are getting out there to vote.

LAH (voice-over): A once reliable red state, now home to opposing views.

(on camera): If Arizona stays red, it will discourage you?

UNIDENTIFIED MALE: Yes. I mean she'll say no --

UNIDENTIFIED FEMALE: We'll keep working.

UNIDENTIFIED MALE: -- but yes. We'll keep working.

LAH: Early voting is underway here in Arizona. You can see there is a small line gathered here at this early voting site in Scottsdale, Arizona. As far as what the numbers look like, in Maricopa County the recorder says 1.26 million ballots have already been cast. These are signature verified ballots. It is a record as far as early ballots as compared to 2016, more than all of the early votes cast in 2016. A similar story in Pima County, that includes Tucson, Arizona.

So, when it comes to records on early ballots, those are being smashed in Arizona.

Kyung Lah, CNN, Scottsdale, Arizona.

(END VIDEOTAPE)

BRUNHUBER: On Wall Street, worries over rising COVID-19 infections, more restrictions and election uncertainty led to another selloff on Wednesday. By the time it was over, the Dow plunged 943 points and the S&P 500 was down 3 1/2 percent, the worst performance since June. Now, U.S. futures are gaining some ground in overnight trading that major Asian markets have pushed lower in Thursday's training. CNN's John Defterios joins us from Abu Dhabi. John, things seem to have quickly become much riskier in the marketplace.

JOHN DEFTERIOS, CNN BUSINESS EMERGING MARKETS EDITOR: Yes, it's almost double trouble, if you will, Kim, with the COVID-19 spikes that we're seeing in Europe, and still lingering doubts about the U.S. election despite the poll results we're seeing now. More about the ballots and the question marks around it.

And there's real concern in Europe because of COVID-19 because it's at the core of the major economies which will slow down growth, require more stimulus, and then even the potential for social unrest. But I think it's important to say this is not a global phenomenon.

If you look at the Asian markets, yes, three of the four were down lower in the major indices, but not sharply lower, so this is a good indication. Then if we look at Europe, after that dropping of 3 1/2 to 4 1/2 percent on Wednesday, the major markets are just above the line, but they have been bouncing here, there and everywhere.

[04:40:00]

Everybody is going to be looking at the two reports that are coming out of the United States before the opening bell. The latest jobless claims and the last one before the election. Still very high, Kim, about 700,000 prediction, with 7.7 million Americans still on the rolls of the government who can't find work.

And then we have the GDP report for the third quarter. That is an eye popping number, 36 percent, if that comes true, but it just makes it equal for 2020 because we lost 36 percent of GDP unbelievably in the first half of the year. So, investors are not looking through the rear view mirror in the third quarter, they're looking forward to the fourth quarter and next year and the impact of the second wave of COVID-19 -- Kim.

BRUNHUBER: All right, so a lot more pain ahead. Thank you so much, John Defterios, appreciate it. Zeta has been downgraded from a hurricane to a tropical storm, but not

before pummeling the U.S. Gulf coast. We'll show you where it's headed in a live forecast. Stay with us.

(COMMERCIAL BREAK)

BRUNHUBER: Tropical storm Zeta is sweeping through Alabama and pushing wind and rain into Tennessee and Georgia, just hours after making landfall in Louisiana as a category 2 hurricane. Now this video shows the storm breaking a barge loose, effectively making it a threat to other ships. Zeta weakened as it passed through Mississippi and Alabama but has cut off power to more than 1 million homes and businesses in three states. One person was killed by the storm in Mississippi, and another in Louisiana, electrocuted by a downed power line.

Let's bring in meteorologist Pedram Javaheri who has been following this. What can you tell us?

PEDRAM JAVAHERI, CNN METEOROLOGIST: Yes, Kim, you know, it's been a wild night across portions of the Gulf Coast, and about to be much the same here into areas of the state of Georgia and eventually throughout the Carolinas and even into the northeastern United States before this system quickly moves out of here.

[04:45:00]

But we're talking about a storm with sustained winds of 60 miles per hour. At this hour, gusting to over 70 miles per hour, beginning to now enter and move through the metro Atlanta area. So, when you look the at what we're dealing with the storm of this magnitude, very rarely do we have tropical storm warnings into areas in the metro Atlanta region. But that is precisely what is happening at this hour, as the system moves across this particular area. And even some tornado watches down along the Gulf coast, and portions of say southern Georgia as the system moves in the area.

But winds could easily exceed 40 to 50 miles per hour, could see gusts up to 60 to 70 miles per hour. That includes areas around Atlanta, and notice areas indicated here in blue are all tropical storm warnings, which will eventually end up into the Appalachians. And a lot of these areas certainly could see power outages as well.

If there's any piece of good news with this storm system, Kim, it's the speeding moving at 40 to 50 miles per hour. That is fast enough to get the system out of here and back over the Atlantic within about a 12-hour span or so. But how about some of these wind gusts. Up to 100 plus miles per hour on the immediate coast where it made landfall where upwards of a million customers without power along the Gulf Coast. When you get wind gusts that are up to around 71 miles per hour in the Atlanta metro, we're talking just shy of a category 1 hurricane, which is why we think power outages could be extensive this this region.

And then again, very quickly, this system does end up off the Eastern seaboard, as early as right around sunset this evening. So, this is something we'll follow carefully, and hopefully it's out of here before long because we know the power outages certainly could last for a few days across the southern United States.

BRUNHUBER: Yes, as you say, moving quickly away, so good riddance. Thank you so much, meteorologist Pedram Javaheri. Appreciate it.

At least 53 people are buried and feared dead after two landslides in Vietnam, triggered by typhoon Molave. The storm has worsened the flooding that a rainy has already brought. Authorities say some 700 communities right now have no electricity, and the Red Cross says at least 150,000 people face food shortages because the typhoon destroyed thousands of acres of crops and killed livestock.

European leaders say existing restrictions aren't enough anymore as they face a massive surge in coronavirus cases. Details of the new lock downs in France and Germany next. Stay with us.

[04:50:00]

(COMMERCIAL BREAK)

BRUNHUBER: Surging coronavirus cases across Europe have forced two of the continent's biggest economies back into lock down. The leaders of Germany and France made that announcement just hours apart. The first lock down will begin Friday in France for nonessentially businesses, restaurants and bars will close for four weeks. President Emmanuel Macron says this won't be as severe as the last lock down.

(BEGIN VIDEO CLIP)

EMMANUEL MACRON, FRENCH PRESIDENT (through translator): Wherever possible, working from home should again be the norm. but and this is a second difference from the spring, economic activity will continue with more intensity. This means the public services will stay open, factories, agricultural operations, building and public construction work will continue to function. The economy should not stop nor crash.

(END VIDEO CLIP)

BRUNHUBER: In Germany, restaurants, bars and clubs will close for a four-week partial lock down begins Monday. The German Chancellor says this action must be taken to avoid a national health emergency.

We have CNN correspondents tracking developments all across Europe. Cyril Vanier is standing by in Paris, and Scott McLean is live for us in Bruno in the hard hit Czech Republic. Scott, let's start with you. We have just learned that the Czech Republic leads the European Union with the highest rate of new coronavirus infections and deaths. What can you tell us?

SCOTT MCLEAN, CNN CORRESPONDENT: Yes, so Kim, first, let me tell you about the situation in Germany. Two weeks ago, Chancellor Angela Merkel, she imposed new restrictions aimed at virus hot spots but two weeks later it's abundantly clear that they have not worked. Germany just reported a record high new case count. So, starting on Monday, schools will stay open, but as you said, bars, restaurants, theaters, gyms, they will all have to shut down.

People are being told to stay home to avoid travel. In fact, you will not be able to check into a hotel room if you're there for merely tourism. The Chancellor says that the health care system right now is equipped to handle the influx of hospitalized patients. But Merkel says that if the situation continues on the trend that it is on right now, that the system will be completely overwhelmed in just a matter of weeks.

And Germany only has to look to its neighbor here in the Czech Republic to see what happens when a country waits too long to act. The Czech Republic was able to tamp down the first wave of the virus with relative ease in the spring, but it resisted bringing in new measures until relatively recently. And now it has the highest infection rate of any major country on earth.

As you mentioned there, Kim, yesterday we went inside some hospitals, two of them in this part of the country where we saw they are jam packed with patients. Doctors are exhausted and they are desperately appealed for volunteers as well. They have had months to stockpile protective equipment, make more bed space.

But the one thing that you cannot easily buy in bulk is more doctors and nurses. Both hospitals have had to shut down several different departments in order to divert doctors to dealing exclusively with COVID-19 patients. One of the hospitals, in fact, Kim, says that if things continue, they'll have to start turning patients away by Monday or Tuesday.

BRUNHUBER: Wow, a very dire warning there indeed. All right, thanks, Scott.

So, let's go to Cyril now. French President Emmanuel Macron wasn't mincing words talking about how dire the situation there is and how dire it could become if these measures aren't taken.

CYRIL VANIER, CNN CORRESPONDENT: Yes, absolutely, Kim. What he told the country is that within two weeks, the critical care capacity in French hospitals is going to reach capacity. He expects and he forecasts that about 9,000 people will be requiring critical care by mid-November. And the French capacity, emergency capacity, that is, is 10,000 beds.

[04:55:00]

So, if he does nothing now, that was his argument to the nation last night. If he does nothing now, then the French health system will soon be overwhelmed and French doctors could find themselves having to choose between patients who are priority patients that they should treat. And that is why the President now imposed the strictest measures we have seen since the peak of the pandemic in this country in March, April, May.

So, starting tomorrow, people will need an authorization to step outside their homes. Nonessential businesses will be closed. That means bars, pubs, restaurants, museums, retail. So, parts of cities like Paris are once again going to start looking like ghost towns. However, and you played that clip earlier, the government has learned its lesson from the first wave and they are now trying to protect a larger chunk of the economy, which is why factories, some public services, construction, those are going to continue working.

The guideline is, if you can't do your job from home, if you can't do it from a computer, then you will be allowed in most cases to go to work, so they're trying to tow this line, Kim, but right now, they have to err on the side of caution and health because as the President reminded us, the health system is close to being overwhelmed here.

BRUNHUBER: All right, thank you so much. Cyril Vanier in Paris and Scott McLean in the Czech Republic. Appreciate your reporting, guys.

And a final word this hour on the world's fight against COVID-19. Taiwan now has gone 200 days without any local virus transmission. The Taiwanese Center for Disease Control says the country has seen over 554 cases during the pandemic. The self-governing island jumped into action at the first rumors of the virus, screening travelers from Wuhan before China admitted the gravity of the situation.

Well, you've been watching CNN. Thank you very much. I'm Kim Brunhuber, stay with us. "EARLY START" is up next.

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