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New Day

Millions Brace for Potentially Historic Snowstorm; CNN Poll: Trump Holds 20-Point Lead in New Hampshire; Wild Ride for Stocks as Oil Prices Tumble. Aired 6-6:30a ET

Aired January 21, 2016 - 06:00   ET

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

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: A monster storm heading to the East Coast.

[05:58:43] UNIDENTIFIED MALE: A wind that gusts 45 to 55 miles per hour.

JOHN BERMAN, CNN ANCHOR: Right now, it looks like Washington, D.C., right in the bull's-eye.

UNIDENTIFIED FEMALE: It was pretty rough driving home.

UNIDENTIFIED MALE: Just trying to stay off the roads, stay warm.

SARAH PALIN, FORMER GOVERNOR OF ALASKA: Are you ready to stump for Trump? Our candidate is ballsy enough to get out there and put those issues on the table.

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE (via phone): Sarah's endorsement is a very powerful endorsement, especially in certain areas like Iowa.

PALIN: Go kick ISIS ass!

UNIDENTIFIED FEMALE: The Dow taking another stomach-churning tumble.

RICHARD QUEST, CNN CORRESPONDENT: At one point it's fallen more than 560 points.

(END VIDEOTAPE)

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

CHRIS CUOMO, CNN ANCHOR: Good morning, welcome to your NEW DAY. It is Thursday, January 21, 6 a.m. in the east. And up first, here's the reality. Millions of people along the I-95 corridor waking up this morning to blizzard watches and heavy warnings. Some parts of the mid-Atlantic could see record-breaking snowfall that will be measured in feet by the weekend.

ALISYN CAMEROTA, CNN ANCHOR: Washington, D.C., got sucker-punched last night, even before the big storm. A light dusting of snow on untreated roads causing more than hundreds

of accidents and making a nightmare commute. In Nashville forcing schools to close today. Rene Marsh live in Arlington, Virginia. What's it looking like, Rene?

[06:05:10] RENE MARSH, CNN CORRESPONDENT: Well, you know, it looks a lot better than it looked like last night. I can tell you, trying to get home, that commute, that after-work commute, it was terrible. A 15-minute took two hours for some people, five hours for other people. Several accidents on the roads because of slippery condition. And that's just a preview. We're expecting the heavy stuff tomorrow.

(BEGIN VIDEOTAPE)

MARSH (voice-over): A crippling evening commute causing a gridlock nightmare in the D.C. metro area. People stuck behind the wheel for hours.

UNIDENTIFIED FEMALE: It was pretty rough driving home, and it took a while. It took an hour to get four miles.

MARSH: As the snow on slick and untreated roads turned to ice.

UNIDENTIFIED MALE: It's terrible, especially if you don't have the right tires.

MARSH: Causing more than 160 crashes, including one fatality in Virginia. Only one inch of snow wreaking havoc, and it's only a preview of the potentially historic blizzard to come. The nation's capital could be in the bull's-eye for a record-breaking 30 inches of snow by Sunday.

This traffic app showing the accidents inside and outside of the D.C. Beltway. An absolute mess, crashes snarling traffic for hours, forcing drivers to abandon their cars.

Pedestrians not spared from the hellish conditions, including President Obama, nearly slipping as he exited Air Force One in D.C. The commander in chief's motorcade slipping and sliding on snow-glazed streets, taking motorcade drivers more than an hour to get back to the White House.

Snow crews in nearby Virginia and Maryland scrambling overnight, piling up salt and positioning plows to prepare for the wintry onslaught. The expected blizzard dredging up memories of D.C.'s "Carmageddon" in January 2011, when heavy snow fell fast across the region, knocking down trees and cutting power to hundreds of thousands along the East Coast.

UNIDENTIFIED MALE: Still better than New York this time last year. It was already pretty bad up there.

(END VIDEOTAPE)

MARSH: And it is frigid again this morning, so we know when the snow does come through, it will stick. As far as air travel, you can all but guarantee, if all of these forecasts are true, airport operations in this area will at some point come to a complete stop.

Back to you, Michaela.

MICHAELA PEREIRA, CNN ANCHOR: You might be wise to call ahead and see if maybe you can reschedule.

Let's talk about the timing now. We'll take a look at this system, when it's going to move, how much is going to fall. CNN meteorologist Chad Myers working overtime, crunching all of the forecast models for us. What is it looking like right now, Chad?

CHAD MYERS, AMS METEOROLOGIST: Again, D.C. and Baltimore right in the middle of the biggest part of the cone, what we would consider to be the bull's-eye of the snow.

I mean, we're going to get blizzard warnings in D.C. and Long Island, and then we're going to see an awful lot of snow and ice into even Tennessee, Kentucky and all of the Carolinas.

It sets up across the south this morning. It moves across Mississippi, Alabama as rain. Rain into Atlanta, as well. But snow and ice into the Carolinas, snow into Virginia, West Virginia, where you may see 36 inches of snow in some of those West Virginia high- country locations.

Other than that, ice, ice, Charlotte, Asheville, Greenville, Knoxville, Lexington. Big cities with big ice problems, maybe even power lines coming down because of the ice that's accumulated.

We go back to Friday now, move you ahead. The snow gets into New York City. And this is a fine line. Michaela, I'm telling you, Westchester may get two inches, and the Ambois (ph) points south of Sandy Hook may get 20. That's how quickly it will change.

Now, I'm going to slide that up and down a little bit, but I still think probably New York City is somewhere between 6 to 9 inches. Weather Services is going between 8 and 12. Because of the wind, you may never see 8 to 12. Just going to blow around like crazy. Wind speeds are going to be 40 to 50 miles per hour. That's why the blizzard warnings are in effect, not just because of the wind; because of heavy falling snow and very low visibility, guys.

PEREIRA: All right. Well, that's the variable, right? Because depending on which way it moves, depending on which way it shifts...

MYERS: That's right.

PEREIRA: I think we all just batten down the hatches and prepare for.

CAMEROTA: Yes. Luckily, it's going to be at your house, because we're all going to be together Friday for our holiday party.

PEREIRA: Yes.

CAMEROTA: So you don't mind us staying for the weekend do you?

PEREIRA: No, bring your sleeping bags, and you bring pajamas, please.

CAMEROTA: This time.

CUOMO: I have a new pair with footies. So that's good.

So let's go from the cold from the couple that is now heating it up on the political scene. The "it" couple of the moment. A day after her celebrated endorsement, Sarah Palin and Donald Trump took their show on the road, targeting some of the most conservative politics.

It comes as a CNN/WMUR poll shows Trump has a 20-point lead in New Hampshire. His closest challenger is Ted Cruz. He's still trying to regain momentum after absorbing some political body blows.

[06:05:12] CNN's Sunlen Serfaty is live in Manchester, New Hampshire with more.

Sunlen, what is it like up there?

SUNLEN SERFATY, CNN CORRESPONDENT: Well, Chris, this has been certainly a rough 48-hour stretch for Ted Cruz as he really fights to gain any traction here in New Hampshire. The center of attention on the campaign trail is focused squarely on Trump and Palin.

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SERFATY (voice-over): Sarah Palin wasting no time rallying Trump supporters in Oklahoma, the two packing a double dose of star power, taking aim at the GOP establishment.

PALIN: Our candidate is ballsy enough to get out there and put those issues on the table.

SERFATY: Palin serving up red meat for the conservative crowd.

PALIN: We've got a redhead from the big Red Apple running for president. And yet, the GOP machine, all of a sudden, they're saying we're not red enough. We're not conservative enough.

SERFATY: And talking about her 26-year-old son's arrest on domestic violence charges, taking a jab at the president in the process.

PALIN: I can certainly relate with other families who will kind of feel these ramifications of some PTSD. It is now or never, for the sake of America's finest that we have that commander in chief who will respect them and honor them.

SERFATY: Those comments making headlines on the heels of her major Trump endorsement.

TRUMP: Every one of the candidates wanted her endorsement, and in particular Ted Cruz, who right now is having tremendous difficulty.

SERFATY: In New Hampshire, Ted Cruz fighting to regain momentum after Palin made the case that Trump's the one with the conservative cred.

PALIN: Are you ready to stump for Trump?

SERFATY: And the latest slams from former Republican Senate Majority Leader Bob Dole, warning of, quote, "cataclysmic" and "wholesale losses" for the GOP, if Cruz prevails.

SEN. TED CRUZ (R-TX), PRESIDENTIAL CANDIDATE: Mr. Trump is welcoming the support of the Washington establishment. Indeed, Mr. Trump said that they should support him, because he said, "Ted won't go along to get along. He won't make deals with the Democrats."

(END VIDEOTAPE)

SERFATY: And now, as Ted Cruz there really trying his best to reshape the narrative in his favor, trying to really pin his establishment label on Donald Trump to present himself as the true anti- establishment and outsider choice -- Alisyn.

CAMEROTA: OK, Sunlen, thanks for that.

So what does Donald Trump think Sarah Palin will do for his campaign? CNN's Don Lemon asked Trump what Palin wants and also about Trump's biggest rival, Ted Cruz. And Trump did not hold back .

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DON LEMON, CNN HOST, "CNN TONIGHT": What was it like with Sarah Palin on the campaign trail for the first time?

TRUMP (via phone): We had to send away 5,000 people. You saw the arena today. I hope you saw the arena.

LEMON: I did. I did.

TRUMP: It was massive. It was like a -- it was incredible.

LEMON: There was for negotiating over, you know, if she would join your campaign?

TRUMP: If you work with the campaign, probably. But I mean, in terms of if I win, would she want a job or some kind of a thing? Zero. Absolutely hasn't even discussed it. I mean, it's frankly very impressive that she doesn't discuss it.

But every one of the candidates wanted her endorsement, and in particular Ted Cruz, who right now is having tremendous difficulty. I mean, he's got a loan problem where, as you know, he didn't on his financial disclosure form, he didn't list that he borrowed a lot of money from Goldman Sachs and from Citibank. That's a big thing.

This country needs help. It needs leadership, Don, and it needs it fast. And Ted is not the right guy; hasn't got the temperament, hasn't -- I mean, look, everybody dislikes him. I mean, he's a nasty guy that everybody dislikes. And he's got another problem, Don, that you haven't mentioned yet, but he was born in Canada.

LEMON: This is showing up in the polling, Mr. Trump. And this is in this new Monmouth University poll. It shows you with a big national lead, 36 percent to 17 percent for Ted Cruz, 11 percent for Marco Rubio.

TRUMP: Wow, I didn't know about that.

LEMON: There is a...

TRUMP: You tell me about polls I don't even know about. That just came out, I guess.

LEMON: But there's another interesting result that goes along with what you're saying. A third of Republican voters, a third of them are questioning Ted Cruz's eligibility for president. Do you think that's due to your very public discussion on this issue?

TRUMP: Well, I understand why they would. And by the way, I'm not -- you know, this was a question posed to me...

LEMON: By "The Washington Post."

TRUMP: ... a week and a half ago by "The Washington Post," OK? It was one of 10 questions. Do I think that he -- and I said, "I don't know." And that's a big problem when you say you don't know. We will find out some day. As you know, it's been untested. Nobody really knows, and that's a problem.

LEMON: You said this was a question from the "Washington Post," but have then, and as you said, you know, you care about him, and that's why you don't want there to be any question about whether he's eligible...

TRUMP: I don't care about him. I care about the country.

LEMON: OK.

TRUMP: I care about the country. I also care about the party. And he's going to have to clean that up. Many people right now, many, many people are saying that is a problem.

[06:10:05] LEMON: You are leading on this, that you have been front and center on this public discussion about it.

TRUMP: No, because I'm not making it opinion. I'm not saying he's right or wrong or he has the right to do it or not to do it. I'm just saying it's something that's going to be -- it's untested. It's untested.

LEMON: I want to talk about you again.

TRUMP: OK.

LEMON: You mentioned -- you mentioned Oklahoma and Sarah Palin. You said today she had a great reception. In Tulsa this afternoon, she spoke about her son's domestic violence arrest on Monday night, implying that it might have something to do with his combat-related trauma. And she criticized the president's policy dealing with that. Did you ask her to address her son's arrest?

TRUMP: I told her it would be absolutely fine. I thought it would be appropriate. There was tremendous press. And I think it's something that's very important to discuss, not only for her son but for so many other sons and daughters that are coming back from the Middle East, where they have, you know, traumatic problems. They have tremendous problems. And I told her, I actually suggested it. I think -- I said, I think it would be a great...

LEMON: Do you think it's fair to link the president with her son's issues?

TRUMP: Oh, I think so. Look, you know, everything starts at the top. He's the president. And I think you can certainly do that from what I understand. And just -- and all you have to do is look at the Veterans Administration. Look at the bad -- the horrible care our vets get.

One of the many things I'm going to do is I'm going to straighten that mess out. You take a look at the Phoenix Veterans Administration in Phoenix, Arizona. It's a disgrace. It's a cesspool. It's dishonest. It's corrupt in every way. It's incompetent. Frankly, I think it's more dishonest than incompetent.

But you look at this, this is true all over the country. And I think it's a good thing. And you have to say ultimately it's the president's charge. It's the president's responsibility.

(END VIDEOTAPE)

CUOMO: All right. So, here's Donald Trump talking about things. And look, bottom line is, the polls show that Ted Cruz has taken a hit box because of all of this birther talk and the eligibility talk. And Donald Trump can explain it any way he wants. But it seems to come out of his mouth a lot, and it's made an impact.

So what will be the impact be of Palin's endorsement. Is she going to help Trump win Iowa? Let's discuss. We have CNN political contributor and political anchor of Time Warner Cable News, Errol Louis; and senior politics editor for "The Daily Beast," Jackie Kucinich. Good to see you both.

They were throwing around poll numbers. I think this is a very interesting poll number. We're talking about New Hampshire. One of the still considering, leaning toward, definitely decided polls. Because I think it really tells you the picture why everybody is so excited about New Hampshire and their fate. Forty-three percent, Errol, still considering. Only a third definitely decided. That is a big degree of randomness. That means anybody's got an opportunity. What do you see in that?

ERROL LOUIS, CNN POLITICAL CONTRIBUTOR: Yes, you can throw in other random factors, as well, this being one of the states where you don't necessarily have to be an enrolled Republican to show up in the polls. So there's lots of different things that can happen. There's a big debate that's going to come up. That's going to play a big role. And then, of course, there is what's happened in Iowa, which always

greatly influences and all of the media storm that follows it. It's going to greatly endorse New Hampshire, as well. So much too early to sort of close the book on New Hampshire, and that's why so many of these candidates are polling in single digits. The Chris Christies, and the Jeb Bushes and John Kasiches. They're all hanging on, because they know there's still a lot of room. There's still a lot of time. And it's not even a hail Mary pass. I mean, there's just a lot of good, solid work still to be done. We're not nearly at the end of this.

CAMEROTA: Hey, Jackie, I want to talk about what Palin did by bringing up her son, Track, on the campaign trail. And how Donald Trump admitted to Don Lemon last night that he suggested it, or he certainly encouraged it, because he thought that it was an issue that could have universal sort of resonance with people.

Is that not the moment that makes -- is that the illustration, I should say, that makes Donald Trump a brilliant politician? Because other politicians would have said, "No, children are off limits. You don't talk about kids. Just move on."

But he said, "Go there. Address it head on."

And even that's different than what I think the instincts of other people would do. How did you see it?

JACKIE KUCINICH, SENIOR POLITICS EDITOR, "THE DAILY BEAST": Well, you know, Palin has always been fairly forthcoming about things with their family. You'll remember, her daughter, when she was running and she was pregnant, they made it -- they made it an issue, in a way, saying, look, she's making the right decision. This is a decision her family thinks she should make. And you would just hope she would turn the conversation about PTSD into a conversation about how to help veterans who have this rather than shifting blame in that -- I felt like she could have probably been a little less negative.

CAMEROTA: Well, sure. I mean, she thinks that she is talking about how to help them, which is elect Donald Trump.

KUCINICH: Right, there's that.

LOUIS: I thought it was a little outrageous, to tell you the truth. This happened not just anywhere. This happened at her house, the house where she lives.

The news reports say that this happened in her house. There's a young woman cowering under the bed. The police have to be called, because she's been brutalized and she's in fear. And apparently, there's a gun involved.

This is not a time to point a finger at the White House. This is the time for her to maybe explain what's going on in her own house. And if the only thing she can come up with is that it's Obama's fault, I'd have to say, you know, not only is that outrageous; I don't think it's going to carry much weight with voters. I mean, somebody has to remind some of these -- you've got to remind some of these conservative politicians that the stuff about personal responsibility applies to candidates as well as the rest of us.

CAMEROTA: I mean, you know, what do you think? You think that, you know, children often should be off-limits. Should she turn him into a sort of a case study of the failure?

CUOMO: Well, I think what Errol is pointing to, is she's got bad facts in this situation. It's not like she's just talking about somebody, a serviceman or woman who came back from abroad and is having trouble adjusting and is having trouble holding work.

CAMEROTA: She is turning it to that. That is the spin.

CUOMO: I know. But those aren't the facts. You know what I mean? We don't know the facts that suggest this. There was an ugly domestic incident, and she's blaming President Obama. The question is, does it work?

Jackie, I would suggest the answer to that is a big fat yes, because this is a hugely negative environment; and Donald Trump cultivates that better than anybody. What is being revealed and what Alisyn is calling his genius is that usually, we don't see a No. 1, say that they exist, you know. You see there a person, that man or woman who works for them that nobody likes, who calls you up on the phone and says, you know, "It's really Obama's fault, what happened with this PTSD."

Let's be honest. The servicemen and women, they don't even like it. That's what they say. You never hear from the candidate. He split that script, and in a negative environment, it's paying off.

KUCINICH: I just don't think if he's changing any minds with this negativity. I think, if you're predisposed to disliking the president, you're probably going to agree. I just -- I don't think that, you know, someone who is watching who might be an independent in New Hampshire is going to say, "You know what? I'm going to vote for Donald Trump, because I heard that." I think he's kind of reinforcing. And, you know, maybe people will get out to vote even more, because they agree with him. People already agree with them. So maybe he is just bolstering his base a little bit with comments like this.

CUOMO: One thing that we haven't heard from him yet on the trail and is interesting, you do not know anybody in any real number who can identify specific things that he's going to do to make your life better. He's an articulator of the problem. And he has changed the tone in that race into that era, where Ted Cruz, who wanted to spend a lot of time, Marco Rubio, a lot of time, Jeb Bush, Kasich, Christie, talking about what they were going to do that was going to be different and may have been kind of cornered by this dialogue that Trump has started. Nobody talks about their plans. Even less than usual.

LOUIS: It's a real problem. I mean, because when you have some economists who look at Trump's plan, they say this is going to cost us $9.5 trillion, and this is -- this is crazy town, as far as future deficits. And that can't get any -- any traction. They can't get any attention. And it's driving these guys crazy, especially the ones who are governors, the Christies and the Kasiches and the Bushes who have actually had to balance budgets and who are looking at some of this talk and saying, "I've done this. I know how to do this. I want to have a different kind of a conversation." But that's where, you know, being a showman really comes in handy.

CUOMO: OK. To be honest, that's why Alisyn and I invite them on the show all the time. Come on, we'll talk to you about the issues. Take the opportunity. You know, there's a little bit of a burden for them in that, as well.

Errol, thank you very much. Jackie, as always.

So, we're going to talk the talk about issues matter, people should be able to talk about their lives. How about we walk that walk? That's exactly what we're going to do, Monday night in Iowa. That is one week before Iowa chooses. You've got Bernie Sanders, Hillary Clinton and Martin O'Malley, they're going to go face-to-face with the people who matter the most: you, the voters in Iowa. A CNN town hall live from Des Moines. I'm going to moderate. It is the final pitch for all the Democratic candidates before the first votes are cast. They'll listen to people who are living real situations and want real answers. Iowans will ask the questions of the three candidates. That is Monday night, 9 p.m. Eastern, only on CNN -- Mick.

PEREIRA: All right. Breaking this morning, a detailed U.K. inquiry concluding that former Russian spy Alexander Litvinenko was probably murdered on personal orders of Russian President Vladimir Putin. This investigation indicating that there is a strong possibility that two Russian agents poisoned the former spy in a hotel in 2006 on orders of Russia's spy service. Litvinenko died at a hospital in London from radioactive poisoning.

For its part, Russia's foreign ministry has dismissed the inquiry as politically motivated.

CAMEROTA: Well, investors bracing for another white-knuckle ride on Wall Street. What's causing the selloff and the worst ever start to a new year? We're going to break it down for you, next.

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[06:23:14] CUOMO: All right. Here's the big question when you look at the markets. Is it a correction that we're going through? Or is it a step toward a recession? Very scary proposition, but it is out there and gaining some momentum.

So, let's look at what makes it true or not true. At one point, the Dow Jones dropped as much as 565 points before closing down 1.5 percent for the day. So how much of an effect did the price of oil have on the markets? How much is fear? How much is it things that are hard to define?

We have people in the business of hard to define. Christine Romans, CNN's chief business correspondent and the anchor of "EARLY START," of course. We also have Richard Quest with us this morning. CNN international business correspondent. Tough duty in Davos, the host of "QUEST MEANS BUSINESS" on CNN.

Try to suck it up for us a little bit longer, Richard Quest.

All right. So the headline we often talk about is oil, Christine. Anybody can read this, graphics going down. The question is why and what does it mean?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Because there's tons of oil. The world's awash in oil. At the very same time that China, the biggest importer of oil, is actually slowing. The economy is slowing. And it's slowing kind of dramatically. So this looks like just a big chart going down. It's going from $103, $108 a barrel to $27 a barrel. So quickly, it's destabilizing. Very destabilizing. Great for your gas prices. Destabilizing for the...

CUOMO: Ooh, gas prices, you tell us to light when oil goes down, Romans, you're making me crazy.

ROMANS: This is like a tax cut for consumers. And you could see gas prices that continued to move down, a buck-86 right now. Much better than it was a year ago. If you tap over there, Chris, you can see seven years ago. This is -- this is a really good thing for consumers. That money goes right into the American economy. So this is something that's good. But...

CUOMO: It's coming right out of my 401(k). But the market's dropping, Romans. You're giving me with one hand, and you take with the other.

ROMANS: Exactly. Exactly. Most people don't feel bad for bankers or oil companies but bankers and oil companies are the ones who, when oil prices fall so quickly, it starts to disrupt their financing. It disrupts their projects. And that can start to have a knockdown effect.

[06:25:07] CUOMO: All right. So now here's the big point that we also want to bring Richard in on, is it's not just us, all right? So all across the world we're seeing it. How so?

ROMANS: The red here is a bear market, a 20 percent pullback in stock prices. Look at all these countries in the bear market. Look at all these countries in a correction. That's down 10 percent from its recent peak.

This shows you a cauldron of fear and uncertainty that has spread around the world.

Now, the U.S. economy and the leverage has taken, the U.S. economy is still fundamentally strong. You've got a job market that's improving. You've got -- you've got a housing market that's back to 2006 levels. You've got gas prices. Auto sales strong. But, at what point does all of this come back and start to hurt the American economy? That's the question. CUOMO: Richard Quest, if you can't see, Christine Romans, dressed all

in black, just referred to a cauldron of fear overtaking the world. Sounds like "The Lord of the Rings." You're in Davos with business leaders. Give us hope.

QUEST: There isn't any, frankly, the sense of fear. Because the reality is, that's exactly what's happening at the moment. You're talking about the U.S. Well, the U.S. is the best performing; it's got the strongest economy and it's got the lowest unemployment for all of the major economies that came out of the Great Recession.

So, you put the U.S. to one side, particularly, of course, with its strong dollar, very strong dollar at the moment, that might be hurting exporters but is absolutely brilliant for American tourists going overseas.

On the other side, let's look at the rest of the world. Europe, slow, sluggish, not much growth in terms of unemployment. Asia deeply worried. Deeply worried about the effects of China. Japan, terribly worried about economics not working. Brazil, Argentina, Latin America.

So what I'm saying here, what I'm saying is there are real genuine and fundamental fears about the strength of the global economy, and although some people may be using the "R" word, "recession," at least for the time being, caution is the word.

CUOMO: And look, and to be fair, Christine, you've been using the word "correction" also.

ROMANS: Right.

CUOMO: Stocks have been trading up for months and months and months.

ROMANS: Seven years. This will be a seven-year-long bull market in March. For six years, stocks have gone straight up. Straight up. So a pullback because of all of this international fear, I don't think is unwarranted. The question is, is it overdone? And that's what people are starting to ask now.

CUOMO: Especially on a day like yesterday. We both have a lot of friends who work on the street. And they, you know, what happens? The market is down 565. And all of a sudden, you turn your TV back on later on, and it's come back up 300 points. You know what that is? That's guys who are in the game buying in. They drive the prices down, and they buy it. There is a little bit of this casino effect that goes on, Christine. And everybody else pays for it.

Look at that. You know, Quest doesn't like it. He's smiling, but that doesn't mean he's happy. Am I wrong? I mean, isn't that who's buying it up when this happens?

QUEST: Not necessarily, Chris. If we look at what happened yesterday, there wasn't much institutional activity that took place in the market. It was a kneejerk reaction that unwound itself at the end of the day. Your point is that, basically, those on the inside were making out

like bandits. I don't think we can say that about yesterday's trading. I think yesterday was a fear-driven market. And what we're looking for now is any form of reason.

And unless -- until oil hits -- Christine has hit it bang on the nail. Until we get stability in oil, so that everybody from manufacturing, from transport, from airlines, everybody gets some idea of budgets and future profits and losses, because of fuel, we're going to see this volatility.

And the Chinese, by the way, the Chinese top regulator told me here yesterday in Davos, "Get used to China's volatility. It's here to stay."

CUOMO: All right. Let's see what happens when the corporate earnings come back and companies start announcing stock buybacks again. Let's see what happens to the market then.

ROMANS: I'll tell you, the biggest buyers in August when the market fell were retail investors who were millennials, you people who haven't had a chance to buy stocks for six years, buying stocks.

CUOMO: They'll have a chance now. Everything is on sale.

ROMANS: Yes, it's all on sale.

CUOMO: Christine Romans, Richard Quest, thank you very much. Appreciate it -- Mick.

PEREIRA: All right. Just-released e-mails on the Flint water crisis leading to more questions about missteps at the state level, including why one of the governor's e-mails had to be completely redacted. We have a live report ahead for you.

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