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Rep. Steve King, "I Want To Promote The Natural Family"; Newsweek Examines Trump's Foreign Business Deals; Axelrod: Clinton Has "Unhealthy Penchant For Privacy"; Fragile Ceasefire In Syria Holding; Could First Presidential Debate Break Viewing Record? Aired 7:30-8a ET

Aired September 14, 2016 - 07:30   ET

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

[07:30:01] CHRIS CUOMO, CNN ANCHOR: -- be the leader of the Free World.

REP. STEVE KING (R), IOWA: Well, I would say this. Not having examined this article, I would say we have learned by watching, especially the Clinton campaign and the Clinton family for several decades now, it's important to play your cards face up.

If you don't play your cards face up when you are in the scrutiny of the candidacy for the presidency or the President of the United States, eventually your credibility erodes to the point where you can't give a serious message to the American people and expect them to accept it. So that would be my suggestion to the Trump campaign. Play the cards face up. Let's have an open discussion about this.

I think Hillary Clinton should divulge her medical records. I think that Donald Trump should divulge his medical records. Let's see all of this because the destiny of the Free World is hanging in the balance here on November 8th.

CUOMO: All right. Does that go for taxes, as well?

KING: I would of said yes. In fact, I did say yes to that last spring -- March and April. With a $10 billion business, if Donald Trump dumped his taxes out today there would be all kinds of, let me say, misinterpretations of that and maybe some real interpretations of that between now and November. That would be the only discussion we'd have. So I say the window is closed on that but I wish he had done so, say, last March or April.

CUOMO: So much for playing your cards face up, Congressman, except when it comes --

KING: No, not really.

CUOMO: -- to the only cards you might not like to see. Congressman --

KING: I'm on record, however, saying that back then.

CUOMO: Well, it's an interesting position. Congressman King, thank you for joining us. I appreciate having you on NEW DAY, sir. KING: Thank you, Chris.

CUOMO: All right -- Alisyn.

ALISYN CAMEROTA, CNN ANCHOR: Chris, as Hillary Clinton recovers from pneumonia she is relying on someone considered to be the ultimate campaigner. Can President Obama minimize the damage done by her health scare? We will ask former senior advisor to President Obama, David Axelrod.

(COMMERCIAL BREAK)

[07:35:50] CAMEROTA: A new report in "Newsweek" investigates the connections between The Trump Organization and foreign businesses and governments. The report finds that there are connections that would create "a national security nightmare" if Trump is elected. How will Hillary Clinton respond when she returns to the campaign trail tomorrow?

Let's discuss with David Axelrod. He's a CNN senior political commentator and former senior advisor to President Obama. David, great to have you here.

DAVID AXELROD, CNN SENIOR POLITICAL COMMENTATOR: Always good to be here.

CAMEROTA: I want to read the tweet that you sent out about this. You said, "Potential global conflicts of interest 4 @realDonald Trump have been overlooked, including sources of his vast debt." You think this is an underreported story.

AXELROD: I do.

CAMEROTA: What are we missing?

AXELROD: Well, we don't know anything, really. I mean, this story sort of scratches the surface of his financial empire but he's made it clear that he's not going to divest himself of his business. His kids are going to run the business.

We know from some other reporting that's been done that the business has hundreds and hundreds of millions of dollars of debt. There's been intimations that some have come from Russian sources, some -- the Bank of China has funded one of his projects.

What does it mean to have a president who has this kind of indebtedness and commercial ties globally while he's making decisions on national security? We've heard a lot about the Clinton Global Initiative which is -- it seems to me a smaller issue than personal indebtedness and business ties around the world, but we know nothing about it.

Donald Trump is the most outspoken and least transparent candidate in American presidential campaign history. And I think what's happened is because there is this, among elites -- and I include media in that. I know I'll get smacked around for that. CAMEROTA: I will smack you.

AXELROD: But there is this assumption that Hillary Clinton, likely, will be president and so she gets treated like someone who likely will be president. And Donald Trump, to some degree, continues to get treated like a sideshow. And the fact is he could be President of the United States and he should be treated like it.

CUOMO: Well, there's some underlying assumptions that are worthy of discussion. One, we know exactly what Hillary Clinton is going to say about what's in "Newsweek" because she's been talking about this for months. She's going to say we don't know enough about him, the media doesn't ask him about his businesses, he won't put up the information. She's said it many times, she's going to say it again. We know that.

The other thing that we know is that the Trumps are not going to move away from this organization. Ivanka Trump was on television this morning. She dismissed it out of hand. This is who they are. They are not going to let it go so there is no putting it into a blind trust. You can't put into a blind trust what you already know. That's the purpose of a blind trust. This would be the opposite of that. That's not going to happen.

The third thing is well, we -- she's held to a different standard. She's been in public office, Ax. She's done things as a public servant.

AXELROD: Yes.

CUOMO: That has a higher bar of legitimacy --

AXELROD: Chris, I understand that --

CUOMO: -- and to -- that's why she gets it.

AXELROD: -- and I've been -- and I've been critical of her, as well. But, right now, they are both candidates. They are the finalists for President of the United States. With all due respect to the third- party candidates, one of them is going to be President of the United States and they both ought to be held to high exacting standards.

CAMEROTA: But what's the difference? But what is the difference, David, between the Clinton Foundation and its entanglements or its access, and The Trump Organization and its entanglements?

AXELROD: Well, the difference isthat the Clinton Foundation is not a profit-making venture. They don't derive income from it. They're not indebted in the way in which if I took a loan from you, you would have leverage over me.

CAMEROTA: And that's what The Trump Organization does.

AXELROD: Well, they obviously have a lot of debt. And, you know, one of the issues is he hasn't released his tax returns and they don't release their financials, so we don't really know the answers to all these questions. And he is very gifted at sort of bogarting his way through these questions to the point where questioners have to move on. We saw it in that commander-in-chief forum on different issues.

It's concerning and I think that it is a source of -- it should be a source of legitimate concern, not just in the media, but to the public.

CAMEROTA: And this "Newsweek" article does lay it out if people want to read more. I mean, this reporter did investigate it for months, all of those types.

[07:40:00] Let's talk about Hillary Clinton's health.

AXELROD: Yes.

CAMEROTA: She's been off the campaign trail with pneumonia. You tweeted out "Antibiotics can take care of pneumonia. What's the cure for an unhealthy penchant for privacy that repeatedly creates unnecessary problems?"

AXELROD: Yes.

CAMEROTA: Do you want to expound on that?

AXELROD: Yes. Well, first of all, let me say on her health. I've seen her close up as an opponent when I was working for Barack Obama in 2008 and as someone who worked side-by-side with her in earlier years and when she was Secretary of State. She is a relentless, indefatigable, tenacious human being. I have no doubt about that. And so, I suspect she'll come back on the campaign trail with, you know -- full of piss and vinegar, as the expression goes. Can you say that on T.V.?

CAMEROTA: I thought you were going to say vim and vigor.

CUOMO: You just -- you just did.

CAMEROTA: That's OK, let go forward.

CUOMO: Another unnecessary problem that you've brought up, Ax.

AXELROD: Well, then --

CUOMO: But it goes to the transparency.

CAMEROTA: Yes.

CUOMO: That's the bigger issue.

AXELROD: No, but --

CUOMO: What she tells you and when she tells you.

AXELROD: Her vulnerability is not health, it's stealth. And what she did in trying to, I think, navigate through the questions about her health she created more questions on the other side, which is really a greater vulnerability. So from my standpoint it was ill-considered and I said so. CAMEROTA: Meaning she should have disclosed it on Friday.

AXELROD: Look, I think if you have a health issue but you continue your schedule and it doesn't stop you from doing what you're doing, then that's fine. I don't think there's any great urgency to disclose. If you have to leave an event because you're ill and you have to bring your -- take your schedule down, then I think you have to be more forthcoming about it.

And, you know, the interesting thing is had she acknowledged at that moment -- you know what? I was diagnosed with walking --

CAMEROTA: When she fell on Sunday.

AXELROD: I was diagnosed with walking pneumonia. I was advised to take a few days off. I really wanted to be part of this 9/11 ceremony and I tried, and perhaps I should have listened to my doctor. I think she would have actually gotten a lot of credit for that, not just for forthrightness but for trying to be at this very solemn occasion.

CAMEROTA: David Axelrod, great to see you. Great to have you in the studio.

AXELROD: Always good to see you guys. Thank you.

CAMEROTA: Thanks so much for being here.

The Syrian people, of course, are desperate for help but will the ceasefire hold long enough for them to get the aid they need? The Deputy Secretary of State joins us to give us the latest on the unfolding humanitarian crisis.

(COMMERCIAL BREAK)

CUOMO: People are waiting, people are starving in the battered Syrian town of Aleppo. They are waiting to see whether this fragile ceasefire leads to much-needed humanitarian aid. As of this moment it's not getting there yet. Coalition forces -- this is now the final push, right now, to try and get them help. And we're also going to talk about what's going on in Iraq right now. There's a final push there to free up a couple of major cities.

[07:45:00] And to talk about both of these things we have Tony Blinken, Deputy Secretary of State. Joins us now live from Baghdad. I hope you are safe there, you and your staff. We're going to talk about the situation on the ground important enough to bring you there. Syria important, too.

Tony, what can you tell us about the nature of the ceasefire and whether aid will be able to get to these people in such desperate need?

ANTONY BLINKEN, DEPUTY SECRETARY OF STATE: Well, thanks, Chris. Look, the ceasefire is a day-by-day proposition and we're trying to test it over seven days. We've seen, in day one, some diminution in violence. We now need to see humanitarian assistance start to flow back into these very hard to reach places to get to people who haven't got it. That's what we're testing over the next seven days. But we've gotten off to a start, at least, for the diminution in violence and now we need to see the assistance start to flow.

CUOMO: What's your take on this reported division and growing division between you guys at State and the Pentagon? They don't want to work with the Russians. They don't trust them. They don't want to share information. They think the Russians are trying to help Assad more than they're trying to stop ISIS. How do you deal with that?

BLINKEN: Chris, it isn't a question of trust, it's a question of actions. And what we're going to find out over the next six or seven days is whether the Russians are serious about making sure that what they control, and in particular the actions of the Assad regime, are moving in the right direction. And that is that the violence comes down and stops and that assistance gets in. That's going to be based not on trust, but based on facts on the ground. That's where we're at.

CUOMO: But what about when you give them intel, Tony, and you wind up sharing intel with an organization that only Donald Trump seems to think is trustworthy and worth working with at this point? Your Pentagon doesn't seem to share that opinion.

BLINKEN: Chris, the reason this is so important -- there are two things that we can achieve. First, if this works, and emphasis on the "if", then part of the deal is to take the Syrian Air Force out of the skies over heavily-populated civilian areas and to stop the bombing, stop the chlorine weapons, stop this egregious violence against Syria's civilians.

Second, if it works then we'll be in a position to get Russia more focused on what it claims to be doing in Syria, and that is going after ISIL and also going after Nusra, which is basically the al Qaeda affiliate in Syria. So if we can move things in that direction that is a profoundly positive development for the people of Syria and it's a positive development for the fight against both ISIL and against the al Qaeda affiliate, Nusra.

CUOMO: Now, right now you're sitting in Baghdad, a place you do not go to lightly. What is the catalyst for you being on the ground there -- the urgency -- and what is the state of play there?

BLINKEN: Because we're coming to a critical moment in the fight against ISIL, what I'm seeing here is that ISIL is increasingly on the run and on the ropes. Over the last year, the Iraqis, with the strong support of this coalition that we've put together, has taken back more than half the territory that ISIL once controlled.

We've taken out senior leadership. We've taken out tens of thousands of combatants. We've taken out equipment. The financing is dropping, the foreign fighters are dropping. So we're at a point now where the big remaining piece is the city of Mosul which is where ISIL has tried to establish its so-called caliphate. That is the next front and the Iraqis are preparing to liberate Mosul. It's going to be a daunting operation. ISIL has dug in, but it's critical to taking away the entire foundation of ISIL in Iraq.

There's also a big humanitarian piece because as the city's liberated there is a risk that a large number of people, hundreds of thousands, are, at least, initially displaced. We're trying to put in place the resources to make sure they're cared for. We're going to be adding about $181 million to the humanitarian assistance we're providing to Iraq to help people who are displaced by the conflict. We want to make sure that they're cared for and they can go home as quickly as possible.

By the way, just in the, roughly, year since I've been here nearly one million people have been able to return to their homes in Iraq in cities that have been liberated. So our campaign, our strategy, is working here against ISIL and the big next piece is Mosul.

CUOMO: I remember an Iraqi general telling me don't count the dead, count how many stores are open on the streets. That's what matters, winning the peace. Tony Blinken, you've shared a similar message. Please stay safe there with your team and let us know when you have information that matters to the American people so we can have you back.

BLINKEN: Thanks for having me, Chris, appreciate it.

CUOMO: All right, Tony, be safe -- Alisyn.

CAMEROTA: All right, Chris. He was a presidential speechwriter and he now predicts that the first debate, 13 days from now, could be the most-watched television event ever. James Fallows will be here on what each candidate should try to do on that debate stage.

[07:50:10] (COMMERCIAL BREAK)

CAMEROTA: The first presidential debate is 12 days away and it could be one of the most-watched T.V. events ever, so what can viewers expect when the sparks fly between Hillary Clinton and Donald Trump?

Let's bring in James Fallows. He's a former chief speechwriter for former president Jimmy Carter. He's also the author of this month's cover story -- and it is a long one -- for "The Atlantic" on these debates. Jim, great to see you this morning on NEW DAY. Thanks for being here.

JAMES FALLOWS, NATIONAL CORRESPONDENT, "THE ATLANTIC": My pleasure. It's long, but thorough and interesting, right?

CAMEROTA: It is really interesting. I was wondering what was weighing my bag down last night -- it was so heavy on my arm -- it was your article. When I fished it out it's like five pounds. But Jim, are we overstating it to say that this could be one of the most- watched television events ever?

FALLOWS: Certainly, the odds are in that favor. Remember, the controversy a couple of weeks ago when the schedule was announced by the Trump team. They said oh no, these are against NFL games. Historically, debates have way outdrawn even the NFL by a factor of about three to one.

[07:55:00] And the stakes for this one are where it's the first time we'll ever see Hillary Clinton and Donald Trump face-to-face, where they're so different in their styles, their politics, their intellectual approach, and everything else.

I think -- you know, many people I interviewed said this probably will be -- will exceed "M*A*S*H" and the O.J. chase as the one of the most -- as the biggest audience worldwide.

CAMEROTA: Oh my gosh, that is huge, I mean, putting in that perspective. So let's talk about -- from your research and all of the experts that you've talked to the way that Clinton can win the debate and the way that Trump can win the debate.

Let me put up a couple of points for our viewers. The -- in terms of how she wins -- you know, she is obviously seen as this kind of titan of debate prowess so the odds are -- I mean, conventional wisdom says that she trounces him.

But not so fast. Let's look at what we think -- at what you say could help her get the advantage. She's had many one-on-one debates in her career. Trump, of course, has had no one-on-one debates. The depth of her policy knowledge -- she's considered a wonk so she has specifics on executing plans. He avoids details on plans. What else do you think we might see on that stage in terms of her advantage?

FALLOW: I think her advantages are -- as you said, this is something she has done many times back with Barack Obama eight years ago and when she ran for the Senate in 2000 with Bernie Sanders. And there's a very particular skill to doing these head-to-head debates where you have to be prepared to fill a couple of minutes on talking about how you're going to fund things. You know, how your -- what the details of your foreign policy will be.

It's quite different from the primary cycle when Donald Trump was going against eight or 10 other people on the stage and you just had to get in some kind of zinger as what we'll discuss. So I think the main challenge for Hillary Clinton is likely to be exactly this expectations game. This is so much in the wheelhouse of what she has done that people might think that if Donald Trump comes out even looking vaguely alive then he will have deflected something where you would expect her to be dominant.

CAMEROTA: OK, let's talk about what some of your other experts say about how he wins that night on that stage. So, we'll pull that up for our viewers. If he had -- he's witty. He's unafraid of shock value so he can have some memorable lines. She's more calculated and cautious. Keeping it simple is to his advantage. He uses easy-to- understand language that does speak to the voters on sort of a visceral gut level. She has years of government jargon that she might fall into. What else?

FALLOWS: And I think that it's important to recognize that while we call these debates, they have nothing at all to do with college debates, or high school debates, or legal appeals debates, or things which are fundamentally intellectual. These are fundamentally, in their effect, not just -- not emotional, so much, as kind of human vibe. It's how people end up feeling about these two candidates who are before them and one or the other is going to be the president.

And if something in Donald Trump's very unusual bearing on the stage catches Hillary Clinton unprepared, if it provokes her into sort of slug-for-slug, insult-for-insult match with him, or if it makes her seem -- if she seems to be too jargon-bound or indirect or evasive in dealing with his very blunt and very simple statements, then that could make her look bad.

Again, the main thing, which is not maybe inspiring to know about these debates but seems to be true, is the way -- the way that people look. How do we feel about them? Even if you turned off the sound on the T.V. how would you think about that person's bearing confidence, ease, sense of humor? So if Donald Trump can make Hillary Clinton look on the bad side of those sorts of calculations that would be the win for him.

CAMEROTA: And very quickly, Jim, I want to talk about what each of their kryptonite is. And I think that from your article what you've said is that if she goes after his wealth -- if she pokes fun at maybe it not being as much as he has touted it, that could be an awkward moment for him. What's her kryptonite?

FALLOWS: I think her kryptonite would be something that if the main opponent argument against her is that she is "evasive", if he or the moderator poses questions to her that she seems indirect or beating around the bush in answering, that is the way that she could make her situation worse.

CAMEROTA: James Fallows, it is a fascinating read. Great to have you share all of your reporting with us. Thanks so much for being on NEW DAY.

FALLOWS: My pleasure, thank you.

CAMEROTA: We're following a lot of news this morning so let's get right to it.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Donald Trump says stuff every day that used to be considered disqualifying for being president.

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Hillary Clinton's actions are far more corrupt than we ever imagined.

OBAMA: One candidate's family foundation has saved countless lives. The other candidate's foundation took money and then bought a six- foot-tall painting of himself.

TRUMP: For many families in our country, child care is now the single largest expense.

IVANKA TRUMP, DAUGHTER OF DONALD TRUMP: My father has created a plan that is designed to bring relief.

CAMEROTA: Secretary of State Colin Powell tearing into Donald Trump in a series of leaked emails.

TRUMP: This is far bigger than Watergate ever was.

UNIDENTIFIED FEMALE: Are you calling him a liar?