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Two Murdoch Newspapers Condemn Trump And His January 6 Actions; 3 Family Members Killed, 9-Year-Old Boy Survives; Pope In Canada To Apologize For Indigenous Abuse In Catholic Schools. Aired 5:30-6a ET

Aired July 25, 2022 - 05:30   ET

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

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CHRISTINE ROMANS, CNN ANCHOR: Two Rupert Murdoch-owned newspapers, The Wall Street Journal and the New York Post, published scathing editorials this weekend on former President Trump's actions on January 6. The Post declaring, quote, "Trump is unworthy to be in the White House again."

Let's bring in CNN political analyst Julian Zelizer, also a historian and professor at Princeton University, and co-author of the great book "Fault Lines: A History of the U.S. Since 1974."

And it's in the Journal -- the headline -- "The President Who Stood Still on January 6. As the riot raged, he sat watching T.V., posting inflammatory tweets and refusing to send help." The Journal finds -- this is the end of the Journal piece -- "Character is revealed in a crisis. Mr. Pence passed his January 6 trial. Mr. Trump utterly failed his."

The Murdochs, I guess, turning on the president -- former president.

JULIAN ZELIZER, CNN POLITICAL ANALYST, HISTORIAN AND PROFESSOR AT PRINCETON UNIVERSITY, AUTHOR, "FAULT LINES: A HISTORY OF THE UNITED STATES SINCE 1974" (via Webex by Cisco): Well, sure. This is criticism from more conservative press. It's much more negative coverage than we've seen from these outlets of the former president and I'm sure he's taking notice. Does this mean that his prospects are done and over for 2024? I don't think so.

ROMANS: Right -- they're both condemning him here.

But you have written this great piece about Trump's political future -- an op-ed for CNN where you say despite all of this that we're learning from the January 6 committee laying out all this damning evidence against the behavior of and the integrity of the former president, you shouldn't rule out his political future. So, why?

ZELIZER: Well, first, a lot of the Republican Party continues to echo a lot of the arguments about the 2020 election. Election denialism is really central right now. You even have candidates running on this theme. And we haven't really heard that much from the former president. It

will be different once he's back in the arena attacking his critics and predictably, kind of playing the role of the victim and trying to use these hearings almost as a political weapon to show that he's under attack. So we haven't really gauged where he stands once all that happens.

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ROMANS: You know, Trump again sort of teasing a potential run in '24 this weekend. But we have this new CNN reporting that Republicans are -- they -- they're hoping for a competitive primary field, right? Is that just wishful thinking for some of these caucus members, and who could legitimately run against Trump for the GOP nomination?

ZELIZER: I think there's many people who can run. I don't think it's wishful thinking from Gov. DeSantis of Florida, to Vice President Pence, to Nikki Haley, the former U.N. ambassador. There's a long list of Republicans who I think are at least exploring the idea of throwing their hat in the ring and I think they're all plausible candidates.

But again, he still remains the most powerful and formidable figure in the GOP even with recent polls and even with the impact of the hearings. So the question is what do they look like, in many ways -- any of them -- if they are in a primary battle --

ROMANS: Sure.

ZELIZER: -- kind of mode with the former president.

ROMANS: And how do they take on that cultive personality that is entrenched now in this new Republican Party. Fascinating to see how that's going to play out.

Julian Zelizer, thank you so much. Have a great morning.

ZELIZER: Thanks for having me.

ROMANS: All right. Coming up this morning, a robot goes rogue, breaking a young chess player's finger. And why the Pope traveled thousands of miles to apologize in person today.

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ROMANS: A 9-year-old boy is the sole survivor of an attack at an Iowa campground -- an attack that killed his parents and younger sister. Police say Sarah and Tyler Schmidt were fatally shot along with their 6-year-old daughter Lula. They were sleeping in their tent at the campground. Nine-year-old Arlo survived the shooting and is safe. The suspect was later found dead in the woods.

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MIKE KRAPFL, IOWA DIVISION OF CRIMINAL INVESTIGATION: We had information that he was armed at the time. Officers with the Iowa State Patrol, Jackson County Sheriff's Office, and numerous law enforcement agencies have been out there and just shortly, we believe we have located Anthony Sherwin west of the park and he is deceased of what appears to be a self-inflicted gunshot wound.

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ROMANS: So, police are still searching for a motive in this shooting. It's not clear if the suspect even knew that family.

All right. This morning, Pope Francis is in Canada on a trip the Vatican calls a penitential pilgrimage. The pontiff arriving Sunday in Alberta for a weeklong visit. His message, a long-awaited apology for the church's role in the abuse of the country's indigenous children in residential schools.

CNN's Paula Newton is on the ground for us in Edmonton.

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PAULA NEWTON, CNN ANCHOR AND CORRESPONDENT (voice-over): It is a papal trip like no other -- one that will see Pope Frances humble himself on behalf of the Catholic Church and apologize to Canada's indigenous peoples for years of abuse and harm.

Only months ago, few could imagine his journey here -- one the Pope is calling a journey of penance, but what a Canadian national commission says was cultural genocide. At least 150,000 indigenous children separated from their families and forced to attend residential institutions where thousands endured physical, sexual, and emotional abuse from priests, nuns, and school staff.

VICTORIA MCINTOSH, RESIDENTIAL SCHOOL SURVIVOR: Kneel down the way you made us kneel down as little kids and ask for that forgiveness.

NEWTON (voice-over): Victoria McIntosh was taken from her family at the age of four.

MCINTOSH: My grands made this for me.

NEWTON (voice-over): This was the coat she says she wore when her mom dropped her off at a Catholic institution in Manitoba in the 1960s.

MCINTOSH: That nun took it off of me and threw it at my mom.

NEWTON (voice-over): McIntosh said the nun then called her mother a savage, an incident she said foreshadowed years of abuse. She says her mother never forgave herself.

MCINTOSH: And I told her -- I said it's not your fault. It wasn't your fault. What choice did you have?

NEWTON (voice-over): McIntosh says she was sexually assaulted by a priest for years when she was only a child.

MCINTOSH: He violated me in ways that no child should ever go through. And I would break down and I would cry thinking about it -- what he done -- and I wondered why. What did I do to you?

NEWTON (voice-over): McIntosh says that priest was 92-year-old Arthur Masse. It was only in June when he was charged with indecent assault. He has not entered a plea.

And it is the impunity of the Catholic Church's actions that hangs over this visit even as dozens of indigenous communities now search the grounds of these institutions where hundreds of unmarked graves have already been identified.

NEWTON (on camera): As indigenous communities work to recover their lost children there is still much ambivalence about the Pope's visit and his apology.

The Pope was blunt. He called it a journey of penance.

CHIEF DERRICK HENDERSON, SAGKEENG FIRST NATION: Hmm, I don't know. That's an interesting interpretation of that, right? You know, for me, it's not a journey, right? This was -- it was more than a journey for our people, I think, and the journey will never end, right? It's going to be there forever.

NEWTON (voice-over): Pope Francis says he acknowledges that but hopes this historic gesture of atonement will bring some measure of relief and healing.

Paula Newton, CNN, Edmonton.

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ROMANS: All right. Coming up on "NEW DAY," did the January 6 committee successfully prove its case. But first, Big Papi's big day at the Hall of Fame.

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[05:49:12]

ROMANS: All right, it's Monday. Let's get a check on CNN Business this morning.

Looking at markets around the world, you can see Asian shares are now closed for the Monday session and they closed down. Europe has opened higher. And on Wall Street, a little bit higher for the Dow Jones Industrial Average futures and the S&P 500.

Look, both the Dow and the Nasdaq closed lower Friday. The Dow lost just a fraction. But the Nasdaq had a tough day. It was down nearly 2%.

Still, stocks are up for July even amid flashing recession warnings and the Federal Reserve's aggressive fight against inflation. On Wednesday, the central bank is expected to raise interest rates again by another 75 basis points. That would match the rate hike in June. That was the largest since 1994. Look, this is a really delicate balance for the Fed -- raising rates

just enough to tame inflation but not too much and push the economy into a recession.

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Thursday is our first look at second-quarter GDP. It's expected to shrink just like it did there in the first quarter. And that's a troubling sign for the economy because two straight quarters of shrinking economic growth -- that's a sign of a recession, usually paired with rising unemployment -- something we're not seeing.

Corporate earnings also continue this week. It's all about tech, folks. Reports from Microsoft, Google parent Alphabet, Meta, Apple, and Amazon.

Tech is where it's really been a rough year for investors. The high- value shares are less attractive to investors in a higher interest rate environment. That's what you're seeing there. The Nasdaq is down nearly 25% so far this year.

All right, I want to bring in Doug Flynn, a financial planner with Flynn Zito Capital Management. Doug -- boy, do we need you this morning because there is simply recession obsession here among investors and among consumers.

Janet Yellen, the Treasury secretary, says that a recession isn't inevitable. That was her message this weekend on "MEET THE PRESS." But Larry Summers, who used to have that job, said no, he thinks -- he thinks we're headed to a recession. There's no way to know who's right here, right?

DOUG FLYNN, FINANCIAL PLANNER, FLYNN ZITO CAPITAL MANAGEMENT (via Webex by Cisco): No, there isn't. I mean, you can look at the last six times that the Fed has adopted a rising interest rate environment where they're trying to tame inflation and control interest rates. It's been six times since 1980 that they've adopted that, and four of those we did go into a recession. So, could they -- you know, one of them is going to be right but it's a delicate balance.

And it's difficult for the Fed to navigate just the right mixture of raising them enough without causing a recession. So it is, I would say, higher than likely that we're going to go into one. But just the two negative quarters of GDP, regardless of what the Fed -- what people say about whether we're in a recession, people can feel it. Certain people will feel it sooner than others --

ROMANS: Sure.

FLYNN: -- and that's the key there -- how they act with their money after that.

ROMANS: And look, there -- it can become self-fulfilling, too, when people are starting to obsess about a recession, you know. They can pull back. But the banks are saying they haven't seen consumers really pulling back yet. My question for you. What are you telling your clients? How do you best prepare?

We're already in a higher interest rate environment. That's already happening. That is here and happening, which means people should be paying down their high-interest rate credit cards. They should be paring down on their debt. They should be taking care of their financial -- their financial -- get their financial house in order.

What are you telling people to do?

FLYNN: Yes, it's interesting. Most people are in a better financial picture than they had been in previous circumstances or in a similar situation because the Fed had pumped so much money out there and people have more cash than they generally have. And so, what happens is people start to act differently when they run out of that cash. And I think that's why you're not seeing people act differently.

But the key is this. If you're going to -- you can't invest like you had been investing during the different environments where rates were low for longer. You have to -- you have to think that the Fed is walking a tight rope here and you're going to have inflation higher than normal. Now, it may start coming down but it isn't going to go right back down to 2% tomorrow. It's going to take some time.

So inflation is going to be with us for a little longer and that means you have to invest differently. Things that are interest rate- sensitive -- you mentioned tech before. There are other assets that you have to watch that you don't want to be investing in when rates are higher and going up. You want to invest into areas that can do well where they can raise prices and continue to have their earnings. Earnings are going to be the key. Who is going to execute?

ROMANS: You know, we're in for a really big economic week. I mean, yes, consumer confidence numbers tomorrow. A Fed meeting where the Fed is expected to jack up interest rates again. You're going to get a consumer inflation number on Friday.

What do you think we'll learn this week? Will we have a better picture of where we're headed? I mean, I just keep hearing all this obsession over whether or not there's going to be a recession. We won't know when there's a recession until probably once it's over.

FLYNN: Right. You don't know you're in one until after, according to -- according to the government.

The thing about declaring recession is there's eight people who just decide whether we're in one or not. That has nothing to do with you and me personally and whether we're in a recession.

And there's that old phrase of, you know, when you lose your job you're in a recession -- when your friend loses your job -- when your friend loses their job it's a recession. When you lose your job it's a depression. And we're not anywhere near that because employment is still low. So it's a really weird situation. I think the key is that this is one of the odd years. I think it's only happened three times in history where there's a bear market in both stocks and bonds. Normally, your bonds are going to support you when your stocks do well. And so, what we're looking for is we're looking for the information.

Is inflation going to start getting down into the seven -- with a seven handle on it? We went over 9% based on the latest numbers. Is it going to go down to eight? Is it going to start moving down to seven? I think you're going to see a slower move downward.

But if we get a higher number, that's going to cause havoc on the markets because we're just not expecting that.

ROMANS: Yes.

FLYNN: Everyone is anticipating things improving a little bit on the economic front and on the earnings front, and so you just need to see a little bit of a trend downward as we start to get more of that information.

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ROMANS: Yes. You know, the consumer mood here is just so bad. I mean, you've got -- you've got gas prices trending lower but nobody's talking about that. They only hate them when they were going up. They're not talking about them on the way down. The consumer mood is really finicky these days.

All right, Doug Flynn, so nice to see you. Come back soon. We'll talk more about where you should be investing now. Thank you.

All right, to sports now. That's your business.

Former Red Sox star David Ortiz becomes baseball's newest Hall of Famer and made history in the process.

Carolyn Manno is here with this Monday morning Bleacher Report. Hey, Carolyn.

CAROLYN MANNO, CNN SPORTS CORRESPONDENT: Hello, glad to have you back. I hope you had a nice vacation.

ROMANS: Yes, I did. Thank you.

MANNO: You know Big Papi. Everybody knows him.

ROMANS: Yes.

MANNO: Everybody loves him. He's known as Big Papi because he's got that larger-than-life personality.

And he was certainly a fan favorite in Cooperstown. He received a huge ovation from Red Sox Nation as he was introduced to the crowd. The Red Sox slugger hit 541 homers over the course of his 20-year career. He's the first full-time designated hitter to make the Hall on the

first ballot and the fourth native of the Dominican Republic to earn a Hall of Fame nod as well. The dual citizen acknowledging both countries in his acceptance speech.

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DAVID ORTIZ, BASEBALL HALL OF FAMER: I want to thank the United States of America from the bottom of my heart as an American citizen, who welcomed me with open arms since I was practically a child and giving me the opportunity to develop and fulfill all my dreams, and then some more. Thank you very much U.S.

And to all of my American friends, consider this as an open invitation to visit my island, the Dominican Republic. It's in a special place but we have a lot of good and happy people, beautiful beaches where you guys can go when you guys are freezing here.

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MANNO: I might take him up on it. Not right now, though. Very hot outside.

Yankees slugger Aaron Judge could join Big Papi in the Hall if he keeps up this pace. Top of the third, he absolutely crushes this ball to deep left. This one measured at 456 feet. That was Judge's Major League-leading 37th home run of the season -- seven more than anybody else in the bigs.

The Yankees go on to win 6-0 over the Orioles.

The final day of the World Athletic Championships featured more gold for the Americans. The men storming to another 4x400 meter relay win in front of a packed home crowd. This event is certainly a point of pride for Team USA. They have now eight of the past nine world titles.

And it got even better from there when the women took to the track anchored by the 400-meter hurdle world record holder Sydney McLaughlin. The lead was less than a second when she got the baton for the final run. But in the end, they'd finish almost three seconds ahead of second-place Jamaica.

It has been quite a run on home soil for the Americans. That win marking their 33rd medal of the meet overall.

And lastly for you this morning, we thought this was really interesting, Christine. Former Laker Slava Medvedenko is auctioning off his two NBA Championship rings to help his native Ukraine. The power forward who won titles with L.A. in 2001 and 2002 says he decided to sell the rings after going to the roof of a building in his Kyiv neighborhood and watching Russian rockets streak through the night sky.

The auction begins on Wednesday. It runs through August 5. And his goal is to raise around $100,000 per ring. He lives in Kyiv. He's got family there and three children that went

away from Kyiv and came back, and actually picked up arms at one point as well. And has now said why would my rings sit in a locked safe somewhere when I can actually be making a difference. So, trying to raise some money.

ROMANS: What an amazing gesture --

MANNO: Yes.

ROMANS: -- from him and his family.

All right, thank you. Nice to see, Carolyn Manno.

All right, finally, movie fans saying yes to director Jordan Peele's third film "Nope."

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Clip from "Nope."

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ROMANS: All right. The sci-fi thriller was number one at the box office this weekend -- get this -- taking in an estimated $44 million. Jordan Peele's first two films "Get Out" and "Us" -- both big hits -- also debuted in the top spot a the box office. Going to the movies again, folks.

All right, thanks for joining us. I'm Christine Romans. "NEW DAY" starts right now.

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