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World Stock Markets Unsettled in Wake of Brexit Vote; Hillary Clinton and Elizabeth Warren to Campaign against Donald Trump; Ten Injured At White Supremacist Rally In California; Republicans Leaving Party Over Trump; Clinton And Warren Team Up To Take On Trump. Aired 8-8:30a ET

Aired June 27, 2016 - 08:00   ET

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

[08:00:00] RAY FINCH, EUROPEAN PARLIAMENT MEMBER, U.K. INDEPENDENCE PARTY: -- now that we have stopped paying so much money, or we will stop paying so much into the EU's coffers. The euro is the currency that's going to be actually in trouble. Not the pound.

CHRIS CUOMO: There's a lot of uncertainty here, questions to be answered. Time will tell, as they always say. Mr. Finch, thank you for making the case on NEW DAY.

FINCH: There is always uncertainty in life. Thank you very much indeed, Chris. Take care.

CUOMO: Be well.

What's going on after the Brexit vote? There is a lot of uncertainty. There's new information and questions. We have it. Let's get to it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Britain is in a political mess right now.

UNIDENTIFIED MALE: It's an act of economic self-harm.

UNIDENTIFIED MALE: The fallout for Brexit is actually not going to be painless.

UNIDENTIFIED FEMALE: This could be potentially unravel the United Kingdom.

DONALD TRUMP, (R) PRESIDENTIAL CANDIDATE: I think you're going to have this happen more and more.

HILLARY CLINTON, (D) PRESIDENTIAL CANDIDATE: Bombastic comments in turbulent times cause more turbulence.

CUOMO: Conservative heavyweights so fed up with Trump, he says he is leaving the party.

TRUMP: We hit a chord. People are tired of incompetence.

UNIDENTIFIED FEMALE: The terrifying moment a plane catches fire after an emery landing. (END VIDEO CLIP)

UNIDENTIFIED MALE: This is NEW DAY with Chris Cuomo and Alisyn Camerota.

ALISYN CAMEROTA, CNN ANCHOR: OK, that video was terrifying of that plane on fire. We are happy to report that people survived that. But we'll explain how.

VICTOR BLACKWELL, CNN ANCHOR: The silver lining here is that it had happened after landing and not midair.

CUOMO: And yet, what's the frightening part? You're still trapped in the tube.

BLACKWELL: And you're waiting for help.

CAMEROTA: OK, so we'll get to that story shortly.

CUOMO: Good morning, welcome to your NEW DAY. It is Monday, 27th, 8:00 in the east. We've got Victor Blackwell with us here all week.

BLACKWELL: Good to be here.

CUOMO: Need the help, need the help. Big political turmoil in Britain deepening after the vote to leave the European Union. Now, after enthusiastically making their case, top backers of the Brexit movement are backing off some of their biggest promises.

CAMEROTA: And European markets tumbling. At this hour Wall Street also looking at another rocky session out of the opening bell. So let's begin our coverage with CNN's international diplomatic editor Nic Robertson. He is live in Brussels where Secretary of State John Kerry is this morning. Good morning, Nic.

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes, good morning, Alisyn. This meeting with the EU's foreign policy chief Federica Mogherini is walking into a situation here where on the one hand, the United States and Secretary Kerry said it yesterday in Rome, that the United States has a good relationship with the European Union. That is going to continue. Nothing is going to change there. Also, that the United States has a special relationship with Britain. That's going to continue. Nothing is going to change there.

But he is walking in between, if you will, Britain and the European Union. The European Union has a history of mistrust a little with Britain over the way that it negotiates. Right now the European Union's leaders are saying that Britain must begin its negotiations to exit the European Union soon. Britain on the other hand is saying, hold on. We need more time. We're in political turmoil. Secretary Kerry is walking there saying the most important thing right now, stabilize the markets. This is what he said.

(BEGIN VIDEO CLIP)

JOHN KERRY, SECRETARY OF STATE: The most important thing is that all of us as leaders work together to provide as much continuity, as much stability, as much certainty as possible in order for the marketplace to understand that there are ways to minimize disruption. There are ways to smartly move ahead in order to protect the values and interests that we share in common.

(END VIDEO CLIP)

ROBERTSON: So Secretary Kerry is going to hope, therefore, that he can perhaps smooth over some of the water that is getting troubled between Britain and the European Union.

Meanwhile in Britain, it is political turmoil. David Cameron said he is stepping down. There is new political leader. The prime minister has no effective power. The leader of the opposition is being challenged at the moment. At the same time, you have the leader in Scotland saying she will go for a second independence referendum and separate Scotland from the rest of Britain and then keep it joined to the European Union. It is political chaos in Britain. Little wonder it is not moving very quickly. But that doesn't help the situation here in Brussels where they want Britain to get on with what it says it is committed to. Victor?

BLACKWELL: Nic, thank you. From the political chaos there to the economic fallout, the British pound slumping to a new 30 year low against the dollar as global markets are bracing for another rocky day. CNN Money business correspondent Alison Kosick live at the New York stock exchange with a look at how the markets are faring. Alison?

ALISON KOSIK, CNN MONEY BUSINESS CORRESPONDENT: Good morning, Victor. It looks like the Brexit freak out not over yet, but the losses we're seeing so far not as bad as Friday. Let's go to London where the main index has fallen about two percent. Not as much as the last session. We are watching stocks in Paris and Frankfurt. They're slipping as well.

[08:05:00] But we did see a big rebound in Tokyo overnight as investors rushed into the yen, that's the Japanese currency. Other markets in Asia, they finished higher as well.

All right, what's up for the U.S. market? I'd say buckle up. The losses, true, and not anywhere near the 600 point drop we saw on the DOW on Friday, but get ready for a rough start. The DOW could fall another 100 something points when the opening bell rings in about 90 minutes from now. And that's as we watch investors as they put their money into what are considered safe haven investments, like gold and government bonds. The upside for homeowners here is that Britain's choice to leave the EU could drive interest rates even lower which means mortgage rates will go even lower, too. If you're invested in the stock market, you have to really have a strong stomach for all of this. On Friday alone, $2 trillion global worth of global wealth just went poof. The suggestion, I would say wait a week or two before you take a look at your 401(k). Chris?

CUOMO: Alison, as you've often instructed, summer volatility, not unusual. But if this is one of those tipping point factors that points to a recession here in the U.S., then we have a much different discussion. Alison, thank you very much.

So the political landscape here, Hillary Clinton finding a new line of attack, hammering Donald Trump over his response to the Brexit vote. Clinton teaming up today with Senator Elizabeth Warren to take on Trump on the campaign trail. We have CNN senior Washington correspondent Jeff Zeleny live in Cincinnati. What are you seeing, my friend?

JEFF ZELENY, CNN CORRESPONDENT: Chris, there are few people who have gotten under Donald Trump's skin more than Elizabeth Warren. Hillary Clinton from afar has been very impressed by this. But today, for the first time, these two will campaign together. She is on her short list, but she's not the only one.

(BEGIN VIDEOTAPE)

ZELENY: This morning, Hillary Clinton and Elizabeth Warren to make their campaigning debut, testing their chemistry in Cincinnati. CNN has learned the Massachusetts senator is on the short list of potential running mates being vetted by Clinton, a choice that could potentially excite liberals and Bernie Sanders supporters to enthusiastically back a Clinton-Warren ticket. Warren has emerged as one of Donald Trump's harshest critics.

SEN. ELIZABETH WARREN, (D) MASSACHUSETTS: A small, insecure money grubber.

ZELENY: Appearing with Clinton as she prepares a new line of attack against the presumptive Republican nominee.

UNIDENTIFIED FEMALE: Stocks tank around the world.

TRUMP: Brand new sprinkler system, the highest level.

UNIDENTIFIED FEMALE: He's talking about his new sprinkler system.

ZELENY: The Clinton campaign releasing a new ad slamming Trump's response to the U.K. split from the European Union.

UNIDENTIFIED MALE: In a volatile world, the last thing we need is a volatile president.

ZELENY: Trump touring his new golf course in Scotland the day after the vote, calling the economic fallout a good thing for his business.

TRUMP: When the pound goes down, more people are coming to Turnberry, frankly.

ZELENY: And comparing the outcome of the Brexit referendum to the same momentum that's carrying him to the GOP nomination.

TRUMP: People want to take their country back, so I think you're going to have this happen more and more. I really believe that. And I think it's happening in the United States. It's happening by the fact that I've done so well in the polls.

ZELENY: While rallying support on Sunday from the nation's mayors meeting in Indianapolis, Clinton cautioned against a Trump presidency.

HILLARY CLINTON, (D) PRESIDENTIAL CANDIDATE: Bombastic comments in turbulent times can actually cause more turbulence.

(END VIDEOTAPE)

ZELENY: Now, all of this comes as Clinton is leading in the polls, at least a pair of weekend polls. The NBC/"Wall Street Journal" poll gives her a five point lead, a far wider margin in the ABC News/"Washington Post" poll of 12 points. But all the volatility with the Brexit referendum certainly reverberating here in the U.S. as well. That's why the Clinton campaign not taking anything for granted. Why she is campaigning in Ohio, of all places, a key battleground state, with Elizabeth Warren. But guys, one other person we should mention, Tim Kaine, the Democratic senator from Virginia, he is also high atop that list as well.

CAMEROTA: All right, Jeff, keep us posted on that list as it narrows. Thank you for all of that.

Joining us now to talk about Brexit and so much more, the host of CNN's "Fareed Zakaria GPS," Fareed Zakaria. Great to see you, Fareed.

FAREED ZAKARIA, CNN HOST, "FAREED ZAKARIA GPS": Pleasure.

CAMEROTA: Where are you on Brexit? What concerns you the most?

ZAKARIA: Where does one begin? For the United States, it is a disaster. As Chris pointed out, you have real prospect of a recession, not just in the United States, around the world. That's why markets are tanking. Britain is the fifth largest economy in the world. And by the way, it's been seven years since we've had a recession, which is about the point --

CAMEROTA: Why does them leaving the EU cause us to have a recession?

ZAKARIA: Because Britain is the largest foreign investor in the United States, one of our largest trading partners. And what it does is stop economic activity. If you are a company and deciding whether or not to build a new factory in Britain, are you going do it now when you're not sure they can sell into the European Union which has traditionally been their biggest market?

Add to that foreign policy, a huge concern for the United States. When we did Iran sanctions, Britain was right there helping make sure that the European Union came on board. That was why the sanctions worked, because the European Union stopped buying Iran's oil.

[08:10:06] When we want to confront Putin over Ukraine, Britain was right there. Britain has been the voice of the United States in Europe which is the largest market in the world, the most powerful economic entity in the world, larger than the United States. All that is now in doubt.

If Britain breaks up, to give you one example, The Scottish referendum seems quite likely, Britain's nuclear weapons, its nuclear deterrent is in Scotland. What happens? You know, all of this is now up for grabs. So it suddenly seems as though you're living in a much more uncertain world than you were one week ago.

BLACKWELL: So the follow-up then is if the U.K. has pulled away from the table, who then is the closest ideologically, who is strong enough, who is the next ally, the closest friend to be in that room, to be a member of the EU?

ZAKARIA: It's the Dutch and the Danes probably. But Britain is the fifth largest economy in the world, a nuclear power. It has veto in the Security Council. No one can replace Britain in Europe.

Europe will now increasingly be a German dominated operation. I don't say that out of any fear. I don't want to conjure up historical memories, but the point is Germany is a very different country from Britain. It is a continental European power that has traditionally had a very different perspective. Britain is a great -- there's a reason we always talk about the Anglo-American world. Britain and the United States share a mindset, share an interest. It is the first call any president ever makes when you're trying to assemble a global coalition, whether it was the Iraq war, the Afghanistan war, every other war since World War II. You call 10 Downing Street, and almost always the Brits are right there with us.

CUOMO: What resonates most from what's going on there, aside from the economic realities, is the notion of taking your country back. That's what Trump has started to hammer now, that he's trying to get on message here, play to advantage, which is what this was supposed to be from him -- for him from jump. How does this play out to you?

ZAKARIA: It is not just happening United Kingdom. It is happening in the United States. As you said, it is also happening in other European countries. The most interesting divide in the Brexit vote has been generational, so that if you're under 30, I think 75 percent of the people voted to stay in Europe. If you're over 60, something like 75 percent voted to leave Europe. I think the numbers may be slightly off, but that's a basics divide.

And that tells you a lot. There is an older generation of people who feel as though they have not prospered from this economic boom. They are watching their country, most importantly, they're watching their country be quote-unquote be taken away from them by hoards of people who look, sound, feel different.

CUOMO: Sounds familiar.

ZAKARIA: Yes, and that piece of it is very familiar. It's happening all over Europe. Look, this is the big new divide in the world I believe. It is -- and certainly in the western world. It is not left versus right. Look at somebody like Trump. Is he left wing, is he right wing? No. It is because do you believe in an open world or a closed world? Do you believe in an open economy, do you believe in immigration, or do you view these things with suspicion? You want to close down, you want more control, you want more sovereignty. And that's what the Brexit vote is about and that's what Trump is about. So it is not a surprise to me that he celebrates those forces. BLACKWELL: The frustration, the anger palpable there, palpable here.

The statements we saw on Saturday, over the weekend from Donald Trump saying, again, they're taking their country back. The statement we saw from the Clinton campaign did not mention that anger, did not mention that frustration. We saw her address it at the council of the mayors over the weekend. But I wonder if going into the next phase of this campaign, if the campaign wakes up and says we need to make a change, or if they only list it as this was a mistake for the U.K.

ZAKARIA: I think it is a good question, and I don't know. I'm not enough of a campaign operative to know what the right answer is. I can tell you from a public policy point of view, the Clinton administration -- the Clinton campaign handled it right, which is this is truly a seismic event taking place around the world. It is unsettling markets. It could tip economies into recession. It could uncouple the United Kingdom itself, a 300 year old enterprise. In that context, the thing to do is to be serious, to be sober, to be responsible.

Tapping into anger and pushing people's emotional buttons, that works for a day or two. But then you're left with the residue, the fallout of what you've done. I, for one, applaud the Clinton campaign for not playing those games. OK, it's very easy to keep trying to tell people that you feel their anger, you celebrate it, you understand it. But that's sort of what has happened with this Brexit vote. People have encouraged this kind of anti-European, irresponsible rhetoric for 10, 15 years on the right in Europe, and now they're reaping the benefits.

In many ways, many Republicans are realizing the same thing has happened with Trump. They have kept saying our country is breaking apart, it's been taking -- it's been falling, and then in comes Trump and says, yes, I'm going to build a big wall and kick all the Mexicans out and you know, you can't encourage these forces too much. This is a grown-up moment.

CAMEROTA: Fareed Zakaria, thank you. Always great to have you on set with us. Thanks for being here.

BLACKWELL: At least ten people injured, some of them stabbed after chaos erupted at a California rally. Look at the video here. The violence coming as a white supremacist group faces off with counter protesters at the state capitol.

CNN's Dan Simon live in Sacramento with the very latest -- Dan.

DAN SIMON, CNN CORRESPONDENT: Well, hey, Victor. A lot of adrenaline and anger on both sides. On the one side, you have this white nationalist group, they had a permit to rally here in Sacramento. The other side, you had counter protesters who said they don't want hate to fill the streets here in Sacramento.

And just as this rally was set to begin, you had this group of counter protesters numbering in the hundreds encircle this white nationalist group, maybe about 30 or so people. That's when the melee broke out.

Now the head of this white nationalist group, it's called the Traditionalist Worker Party, he did say that his members came here armed with knives because he says they were threatened on social media.

Usually when you have situation like this occur, the police try to keep both sides apart. That did not happen in this case. Police are investigating. Ten people injured. Everyone is expected to survive. We don't know how many people were injured on each side. Chris, we'll send it back to you.

CUOMO: All right, Dan, thank you very much. Appreciate it.

We have something else for you this morning. It's something you never want to see out of window of your plane. This. This is a passenger plane's engine and wing, bursting into flaming. This happened on the ground after Singapore Airlines flight made an emergency landing.

It's a Boeing 777. It's having an engine problems, couple of hours into the flight to Italy. So the pilot headed back to Singapore. All 241 passengers and crew are OK.

CAMEROTA: OK, that's amazing. I mean, it's amazing that they're all OK and obviously someone with their cell phone was shooting this while still on the plane. Just incredible that that pilot was able to make the right decision and get everybody down.

BLACKWELL: And beyond seeing it out of your own window if you're on the plane, imagine being on the plane next to it and you're about to take off.

CUOMO: Stuck in a tube. That's the foam they use to put out the fire.

CAMEROTA: All right, meanwhile, it has been a rough few days for Donald Trump. Can he right the ship with the convention, rapidly approaching? We'll explore all of that, next.

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[08:21:15]

BLACKWELL: It's 21 minutes after the hour now. Donald Trump's campaign hitting a series of snags. He's slipping in the latest polls and now the Senate majority refusing to give Trump a full throated endorsement. CNN's Phil Mattingly joins us now with more -- Phil.

PHIL MATTINGLY, CNN CORRESPONDENT: Victor, 22 days from Cleveland, and Donald Trump has a Republican problem. It's one that has bubbled up repeatedly since he became the presumptive nominee, but it is becoming more and more acute by the day.

Now listen to this. Long-term conservative columnist, George Will officially out of the Republican Party, all because of Trump. Former Bush treasury secretary, Hank Paulson, pledging to vote for Hil1ary Clinton. Brit Scocroft (ph), the national security advisor to two GOP presidents, doing the same. Now, even Republican officials who have pledged to support Trump, they're not going out of their way to drag him out of the mess. Take a listen to what Senate Majority Leader Mitch McConnell had to say.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Do you believe he is qualified? How do you convince all those voters to think he isn't?

SENATOR MITCH MCCONNELL (R), MAJORITY LEADER: Well, look, I think there is no question that he's made a number of mistakes over the last few weeks. I think they're beginning to right the ship. It is a long time until November, and the burden will be on him to convince people that he can handle this job.

UNIDENTIFIED MALE: I didn't hear you say whether you thought he was qualified.

MCCONNELL: Look, that is up to the American people to decide.

(END VIDEO CLIP)

MATTINGLY: Now, Trump advisers are making clear, they believe the party is coalescing behind his candidacy. Those who aren't, they should get out of the way. The question remains this. Can he win without them? -- Chris.

CUOMO: All right, thank you very much, Phil. Senator Elizabeth Warren is going to join Hillary Clinton on the campaign trail today in Ohio. How do they take on Trump together? Together, the keyword there. Is this some kind of triumph?

Let's discuss with Senator Tammy Baldwin of Wisconsin. She has endorsed Hillary Clinton for president. First the question, is Hillary Clinton, Senator, qualified to be president?

SEN. TAMMY BALDWIN (D-WI), SENATE BUDGET COMMITTEE: She would be one of the most qualified presidents we've ever had. If you look at her breadth of experience, first lady, secretary of state, representing state of New York in the United States Senate, and all that she did frankly before she even got into the public spotlight, she is supremely qualified to be president and commander-in-chief.

CUOMO: Why didn't you say as Senator Mitch McConnell just did, I leave it up to the voters? It is not for me to decide whether somebody is qualified to be president.

BALDWIN: Well, those aren't inconsistent. We will be having an election in November, and the voters will decide no matter what I say. But my judgment about her qualifications is shared by so many who look at her depths of expertise. If we're looking for somebody with strong qualifications, both on domestic policy and foreign policy, we've got that in our presumptive nominee, Hillary Clinton.

CUOMO: Donald Trump says well, look at Brexit. She didn't see it coming. I did. I thought the vote would go this way. She thought they would vote to remain so what does she know about foreign affairs?

BALDWIN: You know, I watched their response to this vote, and thought there couldn't be more of a contrast. You know, this shows how Hillary Clinton understands how this will affect our domestic policy in the United States, how stability uncertainty is in important to economic growth.

She also understands and said as much that we stand with our strong ally, Great Britain, and hope to work with them in figuring out a path forward that will provide the least instability possible.

But Trump sort of instant inclination to say, you know, isolate and think only of oneself, rather than looking at America as leaders in the world community.

[08:25:12]That's one of the major differences between the two of them.

CUOMO: But he also seized upon the power of the people, people who are angry and frustrated and there is a parallel for all the nuance and sophistication that goes on within the U.K.'s specific situation. Those aspects resonate back here in the U.S. Do you believe Hillary Clinton has a grasp on the anger or frustration of the people in this country? And does she have something to offer them that's better than Trump?

BALDWIN: Without a question, she has, you know, the wealth of experience that we've just talked about. But a vision of how to break down the barriers of opportunity for every American to get ahead. And you know, while Trump is building walls, she is trying to break down barriers. And that's been the key contrast throughout so I just think it is night and day.

CUOMO: When you look at the issues specifically, let's take gun control, OK, you look at the polls, and you'll see these big fat numbers saying people want something to happen. Doesn't that translate at the ballot box? It does not translate into law. Why, and what can be done to change it to the extent you think it should change?

BALDWIN: Well, first of all, the American people need a voice in all of this. That's what you really saw between the Senate filibuster and the sit-in, the civil disobedience that took place last week on the floor of the House.

CUOMO: Did it bother you that the House broke to go for a weekend and go for their July 4th break. If they really cared, don't you think they should have kept sitting in?

BALDWIN: Well, the Republicans had left. They switched off the light and flew home. And so I think the point was made and they will return. I hope that they will keep up the pressure in whatever, you know, appropriate means they have. Maybe even more --

CUOMO: Do you think they can get anything done? Do you think they should? Do you think there should be a law change? BALDWIN: This created more citizen participation in this issue than I've heard in a long time. The calls that we were getting in our office were extraordinary. Our phones were ringing off the hook. People engaged with social media as they do now to have their voices heard.

But you have to realize that over and over again, we've woken up to these horrendous catastrophes, these horrendous mass murders, and nothing happens. Our thoughts and prayers are not enough anymore. We have to take action.

The modest proposal, bipartisan proposal in the Senate authored by Susan Collins with a number of us joining in has passed a procedural hurdle, and we need to insist that Mitch McConnell and Paul Ryan eventually schedule votes.

So that the people's voice on this overwhelming majority of Americans who support this common sense closing of the terror gap, so their voices are heard.

CUOMO: They don't often vote on it, though. I think that's what has contributed to the impasse. One last thing, pope on a plane, not a joke, and he says LGBT, church position, what should we do. He was asked the question.

He said ask for forgiveness from the gay community because of how the church has mistreated them in the past and other groups as well. What does that mean to you personally and from a policy perspective?

BALDWIN: To me, it means, well, first of all, just heartened to hear those words. It means that he understands that leaders and people in authority, what they say matters. And if it is language of discriminatory nature or bullying, or hateful, it can also inspire crime, bullying, violence.

CUOMO: Christians pushed back and said he is not following what's in the bible.

BALDWIN: In the wake of Orlando, I think this is a most appropriate thing to be said by the pope.

CUOMO: The circumstances came before any other doctrine.

BALDWIN: Pardon?

CUOMO: The circumstances of Orlando, you believe, militated in favor of this, despite any other disputes over Christianity.

BALDWIN: Absolutely.

CUOMO: Senator, thank you for being with us and making the case. Appreciate it as always.

BALDWIN: Thank you.

CUOMO: All right, Alisyn. CAMEROTA: All right, Chris, the Brexit vote and its ripple effect on the race for president here so who benefits, Trump or Clinton? That's next.

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