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China's Central Bank Cuts Interest Rate; France Attack Suspect Unknown to U.S. Authorities; How Could a Biden Run Affect Clinton? Aired 6:30-7a ET

Aired August 25, 2015 - 06:30   ET

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

[06:30:00]

JIM RUTENBERG, CHIEF POLITICAL CORRESPONDENT, NEW YORK TIMES MAGAZINE: It really fell because of immigration. So, Jeb is in a tricky position. He is not the most seasoned national candidate which we seen. So, they're going to have to get better answering the questions obviously. But he is in a very tough situation.

ALISYN CAMEROTA, CNN ANCHOR: James, Maggie, thank you.

CHRIS CUOMO, CNN ANCHOR: Between a rock and a hard place, that's what he is.

CAMEROTA: That's a good one.

CUOMO: Thank you.

(LAUGHTER)

CAMEROTA: Help, Michaela.

MICHAELA PEREIRA, CNN ANCHOR: I'm trying. I'm just giving my distance. I think that's the best thing.

All right. New details are emerging about the gunman in a foiled attack on a high speed train in France. What authorities know about him and the U.S. didn't. We're going to take you live to Paris after the break.

(COMMERCIAL BREAK)

PEREIRA: All right. Some breaking news for you on the economy -- China's central bank has cut interest rates this morning, after the Shanghai index closed down nearly 8 percent. Investors are now looking for a rally on Wall Street today.

[06:35:00] The Dow coming off in nearly 600-point loss and down nearly 11 percent for the year amid global economic concerns. Future so far pointing higher at this hour.

CUOMO: Questions this morning about cooperation between anti-terror officials in the U.S. and Europe after the near massive on board a train to Paris. The suspect was not known to U.S. authorities, but was known to European officials. We're learning more this morning about the French-American who got hurt bringing down that attacker.

So, there are open questions, now, we get some answers from CNN's Martin Savidge live in Paris.

Good morning, Martin.

MARTIN SAVIDGE, CNN CORRESPONDENT: Yes, good morning, Chris.

Yes, there are real concerns. Ayoub el Khazzani, he is the suspect in this particular case, possible that French officials will charge him today. So far, they have held him without charges. They will have to either charge him or let him go and no one expects that he's going to be let go. So, we will be looking for that.

Of El Khazzani being on a kind of European intelligence watch list, he was. But he was not on any American watch list and apparently that's due to a failure of communication. That's being looked at quite seriously.

And then Mark Moogalian, the other hero, an American hero. This is a man who has both French and American nationality. Mark Moogalian was the first to take on the gunman and he paid the price for it on that train. He was actually shot in the neck. He's recovering in the hospital. Many people are saying, hey, don't forget about him. He is a hero. He also will receive the Legion of Honor.

As to three American heroes, when we'll be likely to see them back to the States? Well, if you remember, Anthony Sadler, he's the college student, likely he will be the first to return, and the two others, they're both in the military. And it's expected that Spencer Stone, who was injured with a box cutter will go to Germany where he'll undergo further medical treatment.

And lastly, why it's good to be hero, and it always is, Anthony Sadler, yesterday, gets recognized on the streets of Paris by Ice Cube son. He gets invited to go to a rap concert by Ice Cube last night, and he had a heck of a time. Well deserved hero in France -- Chris.

CAMEROTA: It doesn't get better.

CUOMO: If that doesn't make it a global experience, I don't know what does. You go there, you are on a train from Amsterdam to Paris, you wind up dealing with this guy from Morocco, and now, you get an American rapper star, an international star, recognizing you through their son, that's full server.

Martin Savidge, thank you very much.

Now, the name of the attacker, that's something you may well want to forget. However, are one of the names you need to remember, Christopher Norman -- like those three Americans, he too is a hero. We have an exclusive interview with this British man who was instrumental in bringing down the gunman. What made Christopher Norman run towards a situation that many of us would run away from?

CAMEROTA: That's great. Looking forward to it. All right. Listen up, cheaters, I have an Ashley Madison update for you. Five lawsuits have been filed against the online adultery site -- you looked at me -- adultery site after hackers exposed the names of millions of customers. Plaintiffs claimed breach of contract, negligence and other grievances, and they want the suit to reach a class action status.

Also on a very tragic note, Canadian police are investigating two suicides possibly linked to the hacking.

PEREIRA: Here is an update we don't often get to bring you and it's such great news. A 10-year-old boy who vanished while hiking for this family in Utah has been alive. He is said to be healthy and well. More than 24 hours after getting lost, authorities say Malachi Bradley survived by curling up between some rocks to stay out of the wind as the temperatures dipped into the upper 30s overnight. The little boy was spotted Monday by rescue plane.

Officials say he was cold and hungry but otherwise healthy. Apparently, the family was out fishing and hiking. He was off to get for some mushrooms and got separated. So, it's such a great outcome. So glad he's home.

CAMEROTA: Oh, thank goodness.

CUOMO: Good news. We'll take it. Market dive, bad news. Rattling investors on Wall Street and Main Street. Experts say no time for panic. How is it not a time to panic?

We'll put the question to Christine Romans. She'll tell you what you need to know.

Stay with us.

(COMMERCIAL BREAK)

[06:43:02] PEREIRA: Investors are anxiously waiting to see if there's going to be another tough day on Wall Street after Monday's deep dive. The Dow has dropped nearly 1,700 points in the last five days. If you have a 401k or investments in the market, what you should and shouldn't be doing at this volatile time?

The lady to ask is our chief business correspondent Christine Romans, who works a long day.

My goodness you worked a long day yesterday.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Good morning.]

PEREIRA: OK. So, let's do this. I know that many of us are wondering if I am not heavily in vested in what you were having before, is this going to affect me. Am I going to feel the affects of this big day yesterday?

ROMANS: Let's talk about this big day, because this was ugly.

PEREIRA: Ouch.

ROMANS: A thousand points in 10 minutes, and then 800 bounced up the lows and then closing down almost 600 points. That hurts. That hurts psychology.

PEREIRA: Yes.

ROMANS: If you have a 401k, you're not an active trader, but you have a 401k, you've lost some ground over the past few days.

PEREIRA: OK.

ROMANS: Another way that you're going to feel this, though, in a good way, oil prices. Oil prices are down 40 percent this year. I think this is going to mean $2 gas by the fall, unless maybe --

PEREIRA: Consumers will cheer that.

ROMANS: Yes. Chicago and L.A. have refinery problems that could prevent that, but $2 gas. So, that's one way.

Another way you're going to feel this in your mortgage, and here's why -- you got all of the money coming out of the commodities and out of the stock market rushing into the safety of government bonds, treasury bonds, pushing down bond yields, which means mortgage rates stay lower than we thought. We're waiting for the Fed to raise interest rates.

PEREIRA: So, you're saying this might actually be a time. If I'm on a fence right now --

ROMANS: Yes, refinance your mortgage or get a new mortgage if you need. These are ways to feel this outside of being an active trader.

PEREIRA: So it's not all terrible. There are some little lines in this.

ROMANS: And some big silver linings. Consumers are going to have extra money this fall because of gas prices, and the mortgage you're seeing, I think this is your last, Fed is going to raise rates eventually, you need to start talking about refinancing mortgage.

PEREIRA: You showed us that graph of what happened yesterday. I think it matched. I'm a novice investor. It matched my blood pressure going up and down. So, now the question is with what do I do? I don't -- I'm a nervous investor.

[06:45:01] What's the best advice?

ROMANS: Think about your long term goals. You don't want to think about what you want your money to do over the three days. You don't want to be selling stocks now after this 1,000 point move, right? So, think about your long term goals. Also, re-evaluate your portfolio. Make sure that you know how many years you have until you can retire, what kind of risk tolerance you have and what you want your money to do for you eventually.

PEREIRA: Depending on where you are your life, you may want a different stance.

ROMANS: Yes, just don't close to your eyes. You need to have to know what your goals are.

There's some things you shouldn't do, too.

PEREIRA: Panic.

ROMANS: Yes, don't make kneejerk reactions. Because like history shows that when you panic, you make the wrong choices at the wrong time and you lose the money.

PEREIRA: In life.

ROMANS: Right, exactly. The stock market is life, relationship.

Change your investment strategy, don't do that. Do that around your birthday. I think you should do that around your birthday or pick a time every year to do it and here's why -- if you're making kneejerk reactions and you're re-evaluating your portfolio every time something big happens, you would have sold here, you would have sold here, you would have sold here and what's the point, you would have missed out on this big run. This is some perspective here. We have pullbacks and we've had a market that's mostly going up.

PEREIRA: This is important and that's why I appreciate that we are looking at this sort of big picture because long term, we're going to be fine, but it's just going to be crunchy in the short term?

ROMANS: It's going to be volatile. I think people should be prepared for some volatility. I mean, there are those people who like to trade stocks actively.

PEREIRA: Yes, yes.

ROMANS: That's a different beat than what I'm talking about here. I'm talking about here, if you're in a 529 plan, it was college savings plan. If you're investing in a 401k, know what the risk is. If you're 40 years old, you can afford to be almost all in in the stock market.

If you're closer to retirement, 18 months, even ten years to retirement, you need to be very careful about how much you have in stocks, bonds and commodities ands the alike, because we're heading into a rough patch here.

PEREIRA: This is why I love you bringing reason to my insanity. Thank you so much.

Let me shake your hand. You're family. Come on. I hold your hand instead.

Thank you, Christine.

ROMANS: You're welcome. You're welcome.

PEREIRA: This is reassuring.

We'll be watching the markets open, Alisyn, not too long from now.

CAMEROTA: OK. Feel for the hug as well.

PEREIRA: OK, we might hug it out. We might hug it out.

CAMEROTA: Meanwhile, Hillary Clinton, she's still, of course, the Democratic front runner. But how much could Vice President Joe Biden shake things up if he gets into the race? We take a look at that next with Lanny Davis, next.

(COMMERCIAL BREAK)

[06:51:21] CAMEROTA: Clinton's presidential bid facing several bumps lately, including the possibility of Vice President Joe Biden entering the race. Plus, how she is weathering the questions surrounding her e-mails.

Joining us to discuss all of this is Lanny Davis, former White House special counsel for the Bill Clinton administration.

Good morning, Lanny.

LANNY DAVIS, FORMER WHITE HOUSE SPECIAL COUNSEL: Thanks for having me on, Alisyn. I hope that we have the new facts out this morning.

CAMEROTA: OK. Let's see about that and the challenge your facts and certainly your perception on all of this.

DAVIS: Please?

CAMEROTA: But let's start with Joe Biden. If he gets into the race, how does it change?

DAVIS: It makes the race much more interesting. It makes Hillary Clinton's nomination much more valuable. He is a great man and a great vice president. He is way, way behind. He has a long way to go, but we welcome him into the race.

CAMEROTA: So in one is quaking in their boots over at the Clinton campaign?

DAVIS: The opposite. Look, we need a contest. We have a tremendous lead and tremendous favorable ratings. Let me repeat -- favorable ratings, over 70 percent among Democrats who nominate.

If we go through the Real Clear Politics rolling average, Hillary Clinton is over 40 percent ahead of Joe Biden nationally. She's over 30 percent in New Hampshire, over 30 percent in Iowa, over 70 percent in South Carolina. She has a formidable lead.

She needs competition. There's nobody better than Bernie Sanders, a great man, and Joe Biden, when she wins the nomination over those two great people as the first female president of the United States. It will be much more valuable to have Joe Biden in the race than out of the race.

CAMEROTA: Lanny, if I've known that you're going to use the Real Clear Politics, I would have teed that up and have a graphic built. But what we have is our latest CNN poll, so I'll show that to you, because it does prove some of what you're saying.

Here is Hillary Clinton, she's now at 47 percent. And you're right, she is higher than Vice President Biden or Sanders. However, look at what's happened since July. So, in just a space of a month, she has gone down from 56 percent to 47 percent, where Bernie Sanders has gone up.

DAVIS: So only you would find a way to get a 47 to 14 percent lead as a negative? Alisyn, every single broadcast --

CAMEROTA: You're not concerned that it's gone down since July?

DAVIS: Alisyn, in every single broadcast, in every cable, you will find a way and everybody else, not just you, to take a tremendous positive, over 70 percent favorable, according to Gallup, and the lead headline over the weekend, not one word on CNN.

CAMEROTA: Well, hold on a second.

DAVIS: She is never 30 percent ahead in every primary state. And you're saying she's done. Of course, with this kind of combination, from the stratosphere, you go down to normality, but going down and being ahead of 30 points, at least let's start with the 30 points ahead rather than going.

CAMEROTA: Hold on, Lanny, because you are invoking the Gallup favorability. I actually do have that one. So, let's put it up. It's not 70 percent.

DAVIS: This is the first time that you're going to put it up in the last three days because I've been watching CNN nonstop.

CAMEROTA: Are you watching around the clock 24/7?

DAVIS: Yes, sure.

CAMEROTA: All right. Here it is, Lanny. So, it's 60 percent. You said she's up 70 percent, it's 60 percent. Still a great number, I hear you, I hear your point taken.

DAVIS: You didn't hear me correctly. I said the favorables among Democrats, favorables, because you always talk about distrust. Favorables among Democrats are over 70 percent.

CAMEROTA: Yes, net favorability among Democrats. What I have here on the screen. Sixty percent, but listen we're quibbling over a number.

DAVIS: No, no, you have contest here with the 60 percent versus 29 percent. The farvorable headlines in Gallup, the headline that you've been saying, it's hard to miss, Hillary Clinton is unchanged since July over nd 70 percent among Democrats. That's your headline, you go read it.

CAMEROTA: OK. Interesting that you see that that should be my headline, because there are newspapers around the country that disagree. Today and this week, there have been editorials in various newspapers, "The Des Moines Register", "USA Today", about how the e- mail controversy does matter and she should address it differently. Let me read you a portion from "USA Today", this is from two days ago.

"Clinton and her team should have turned it over to the State Department's inspector general, or perhaps the National Archives for an independent, confidential sorting of the 62,000 messages. Instead, they took it on themselves to delete about half of the messages as personal and scrub the server, raising inimitable suspicions about a cover up."

DAVIS: OK. Let's deal with the email. You deal with a fact, and I gave you an indisputable fact that Gallup has found in 3,000 voters and over 70 percent favorable, and then you went to an editorial. That's the difference between a fact and opinion.

CAMEROTA: Fine, but this is how people are feeling, which I think is just an important.

DAVIS: As long as we understand, what you just did is you went from a fact to an opinion, so let's deal with the opinion, valid question, but it's an opinion, not a fact.

CAMEROTA: Sure.

DAVIS: I gave you a fact, over 70 percent favorable. My answer to your opinion.

CAMEROTA: Respond to how the people are --

DAVIS: On the e-mails, every expert including the top lawyer at the National Archives says that Hillary did nothing illegal when she had personal and official emails on one server as did -- on one device, as did Colin Powell.

CAMEROTA: Sure.

DAVIS: Nothing illegal about having your own server. No classified information. Nothing --

CAMEROTA: You don't know that.

DAVIS: Not one scintilla of evidence of harm, that anything occurs in transferring to the private server. So, the facts don't support the opinion.

CAMEROTA: We Lanny, we don't know that. I mean, the FBI is investigating. We don't know what --

(CROSSTALK) DAVIS: Here's what we know what the inspector general. Let me quote the inspector general. No opinion here, let's quote the inspector general. Not one e-mail was ever designated classified. It isn't classified unless it's designated, and therefore, the inspector general disagrees with anybody who says there's any breach of national security, and not one scintilla of evidence that the national security has been harmed.

CAMEROTA: Lanny, a federal judge.

DAVIS: So no harm. So, no illegality. What's the issue?

CAMEROTA: Lanny, you're answering it before the investigation. The FBI is investigating.

DAVIS: No, no, I'm quoting the inspector general.

CAMEROTA: The inspector general -- a different inspector general of the Justice Department said that it's possible that these e-mails were classified.

DAVIS: No, no, you're inaccurate. Let me correct what you just said. The inspector general from the intelligence community said not one e- mail was designated classified e-mails in all the emails he reviewed. This is two years post-facto where they're looking back in time after she left secretary of the state. Let's be accurate, Alisyn.

CAMEROTA: Lanny, fair enough. Why don't you -- I mean, I still think you're not addressing that people feel as though --

DAVIS: Feel.

CAMEROTA: No, no, even if there wasn't anything illegal, they still don't think she handled it on a completely forthcoming --

DAVIS: I can't dispute feelings. You expect feelings --

CAMEROTA: You have to. These are what elections are based on.

DAVIS: Well, I don't agree, the American people by the polls has Hillary Clinton beating the Republicans despite the distrust numbers that you broadcast without reflecting Gallup's numbers favorable among Democrats. But the feelings are real. I respect those feelings.

The facts that the American people see is one, nothing illegal. Two, no harm to the national interest. So facts will trump feelings when Hillary Clinton's positions on issues, which is why she is ahead of the polls. She is going to be the first female president of the United States. And Joe Biden and Bernie Sanders, great candidates, who are going to have to deal with the desire of women with a qualified candidate to finally have a woman.

CAMEROTA: Quickly, Lanny.

DAVIS: We're the only democracy in the world not to have a female as president. She is going to be a nominee. With Joe Biden in the race, she'll be a better nominee.

CAMEROTA: Lanny, you're a good friend and a good defender of Hillary Clinton. It's always great to have you on.

DAVIS: Thank you, Alisyn. Thanks for having me. I really appreciate it.

CAMEROTA: What is your take about all of this. You can tweet us using #newdayCNN, or post your comment at Facebook.com/NewDay. Look forward to reading those.

We're following a lot of news this morning. Let's get right to it.

(BEGIN VIDEOTAPE)

CAMEROTA: Fasten your seat belts. Today could be another bumpy ride.

UNIDENTIFIED FEMALE: Fear and panic has taken hold.

UNIDENTIFIED MALE: It's an even bigger fold yesterday. It is a blood bath for investors.

UNIDENTIFIED MALE: All eyes are on the Vice President Biden. Will he or won't he go into the race?

UNIDENTIFIED FEMALE: Biden is quite possibly the one person who knows what it takes to launch a bid to the White House.

UNIDENTIFIED MALE: Either you sit down and you die, or you get up and you die.

UNIDENTIFIED MALE: Four men labeled worldwide as heroes, but Chris Norman, a British national living in France says they prefer to think of themselves as a team.

UNIDENTIFIED MALE: This was not my medal. It was a medal of the team. I will try to do honor to the medal.

ANNOUNCER: This is NEW DAY with Chris Cuomo, Alisyn Camerota, and Michaela Pereira.

(END VIDEOTAPE)

CAMEROTA: And good morning, everyone. Welcome back to your NEW DAY.

Investors hoping Wall Street will show some resiliency today.