Return to Transcripts main page

New Day

Will Trump Declassify Dem Rebuttal To GOP Memo?; Trump: Dems Who Didn't Applaud SOTU Are "Treasonous"; Global Markets Plunge As U.S. Braces For Volatile Day; Police: Driver Who Killed NFL Player Is An Undocumented Immigrant. Aired 7:30-8a ET

Aired February 06, 2018 - 07:30   ET

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

[07:32:32] ALISYN CAMEROTA, CNN ANCHOR: The White House says President Trump will review a classified memo from Democrats on the House Intelligence Committee. That committee, as you may know, voted unanimously to make their rebuttal to the Nunes memo public. So with five days to decide what do Republicans think the president should do?

Joining us now to answer this and so much more, we have Republican Congressman Chris Collins of New York. Good morning, Congressman.

REP. CHRIS COLLINS (R-NY), MEMBER, HOUSE, ENERGY AND COMMERCE COMMITTEE: It's always good to be with you, Alisyn.

CAMEROTA: Great to have you.

So, should the president authorize the release of the Democratic rebuttal?

COLLINS: Oh, absolutely, and I was very happy to see that was a unanimous vote. Certainly not the case when the vote was taken to release the Republican memo.

But we're all about transparency. We can have disagreements on some of the minutia, if you will, that may come out. And my guess is that after the Democrat rebuttal is released, and I'm confident it will be, you'll probably see a Republican rebuttal to the rebuttal.

CAMEROTA: Oh, fun. That will be great.

COLLINS: Right.

CAMEROTA: That would be great fun.

But why do we need a rebuttal to the rebuttal if, as the president says, the Nunes memo vindicates him?

COLLINS: Well, I think it comes down, Alisyn -- when you look at the FISA -- the request for the FISA warrant and you look at comments that McCabe made that said without using the Steele dossier paid for by the Hillary Clinton campaign and the Democratic National Committee, that they would not have been able to get the warrant if the --

CAMEROTA: If you believe those comments. COLLINS: Yes, that's correct.

CAMEROTA: I mean, that rebuttal. As you know, Democrats on the committee say that that is a misrepresentation --

COLLINS: Well, there you go.

CAMEROTA: -- what Andrew McCabe said.

And so, do you believe that Andrew McCabe's testimony behind closed doors should -- is the thing that should be made public so that we can read it with our own eyes?

COLLINS: Well, I mean, there's -- the issue of what's confidential information -- I mean, this is the Intelligence Committee and I will trust the folks both on the committee and at the White House just to make sure that we're not releasing any information that would help our enemies in any way. And so --

CAMEROTA: Yes.

COLLINS: But, you know, that's -- what you brought up is exactly the conversation we're having --

CAMEROTA: Yes.

COLLINS: -- and I think America needs, in a transparent way, to put the issues out. We can all make our own decisions.

CAMEROTA: We -- yes. As a journalist, I would love to be able to read that.

OK, next. Should the president sit down for an interview with Robert Mueller?

COLLINS: Well, in this case, I would say we should rely on his attorneys and it sounds like they're suggesting he should not. And one thing when you're involved in litigation you're paying your attorneys to give you the right advice.

[07:35:09] CAMEROTA: Yes, but just to be clear, it sounds like from "The New York Times" reporting, that they're suggesting that he not do so because they are worried that he would say something misleading and be charged with lying.

COLLINS: Well, in this case, Alisyn, where the issue is not really collusion -- I mean, I think most people have said there was no collusion.

Now you're into the nuances of what is obstruction of justice. Is there an allegation in that way? Is that where this investigation is headed --

CAMEROTA: No, but before that.

COLLINS: -- and that becomes very nuanced. CAMEROTA: I mean, before that, just lying to investigators. I mean, do you think that that could be a problem for the president? Sometimes, as you know, he says things that are fact-challenged.

COLLINS: Well, again, I would listen to his attorneys. I'm not going to comment one way or the other and certainly not going to tell the president what he should do.

It would appear right now that they're negotiating, perhaps, to have the questions done in writing and what would be wrong with that?

So, I mean, there's ways to get this out short of somebody sitting down -- and I've sat down with attorneys in the past and they can tie you all up in knots and push you every which way you can, and at the end they'll say oops, you said it this way or you said it that way.

CAMEROTA: Yes. Is not clapping for a president at the State of the Union treasonous?

COLLINS: Well, no, I wouldn't use the word treasonous but, boy, was it embarrassing.

And, you know, when Gutierrez has stood up when the president said we should stand and respect our flag, the Pledge of Allegiance, the National Anthem, and those of us Republicans stood and cheered and started shouting "USA, USA" and Gutierrez storms out of the chamber. I think that says it all when it comes to the Democratic response.

They were stoic, sitting on their hands. They did not want to applaud at any turn, other than Joe Manchin. Joe Manchin was applauding every which way, right with the Republicans and we all know why. It was just a very partisan reaction.

And I've sat through some of former President Obama's --

CAMEROTA: And, yes --

COLLINS: -- states and we were --

CAMEROTA: While that --

COLLINS: -- reserved but I don't think quite to the extent that we saw --

CAMEROTA: All right. I mean, that's just --

COLLINS: -- that day.

CAMEROTA: Let's just take a look at it. So here's how Republicans reacted when President Obama had his addresses and State of the Union.

Let's look at a little B-roll of this. I believe you have a monitor to look at this. So maybe we could play this for everybody.

(BEGIN VIDEO CLIP)

BARACK OBAMA, FORMER PRESIDENT OF THE UNITED STATES: -- give small businesses the credit they need to stay afloat.

(CHEERS AND APPLAUSE FROM DEMOCRATS)

OBAMA: Each of these proposals deserves a vote in Congress.

(CHEERS AND APPLAUSE FROM DEMOCRATS)

OBAMA: Let a partisan group do it.

(CHEERS AND APPLAUSE FROM DEMOCRATS)

(END VIDEO CLIP)

CAMEROTA: So, Congressman, why wasn't that embarrassing, where you see John Boehner's stone face there and you see the Republicans not applauding for the economy?

COLLINS: Well, again, it's degrees. As I had already acknowledged, you know, we did not overreact or we did not stand and cheer with Obama any more than they did, and I guess --

CAMEROTA: Yes.

COLLINS: -- it's degrees. I just said I believe --

CAMEROTA: Yes.

COLLINS: -- the Democrat response was more subdued than ours with Obama.

CAMEROTA: It's hard to know how not applauding in both cases, one could be more subdued than the other.

But, of course, there's this moment also with Joe Wilson. Let's remind you of this moment -- watch this.

(BEGIN VIDEO CLIP)

OBAMA: The reforms -- the reforms I am proposing would not apply to those who are here illegally.

REP. JOE WILSON (R), SOUTH CAROLINA: You lie.

(BOOS)

OBAMA: That's not true.

(END VIDEO CLIP)

CAMEROTA: That wasn't very subdued, Congressman.

COLLINS: No and, in fact, you might get a chuckle. I suggested to Joe Wilson during President Trump's address that he should stand up and shout "now, that's the truth."

CAMEROTA: Congressman, that's a funny line but you seem to be ignoring the point, which is that was incredibly disrespectful. Why aren't you focused -- why are you more focused on Democrats not applauding?

COLLINS: Well, no, that was disrespectful and I'd say it was an emotional response, much like Gutierrez storming out of the chamber. It is what it is. It was for the moment in time where Joe Wilson was reacting to something he thought was not truthful and Gutierrez was reacting to the president saying we should respect our flag.

CAMEROTA: Hold on. You think that yelling "you lie" at the President of the United States is the same as walking out of a room?

COLLINS: Oh, I think walking out of the room when the crowd is chanting "USA, USA" and you're an elected member of Congress is very disrespectful to the chamber. It's disrespectful --

CAMEROTA: Yes.

[07:40:00] COLLINS: -- up and down.

And, you know, in the case of Joe Wilson, something just hit him that he was not hearing and it was an emotional response.

CAMEROTA: I see. So, Joe Wilson's was an emotional response but not Luis Gutierrez.

OK, thank you for your opinion on this, Congressman Chris Collins.

COLLINS: OK, Alisyn.

CAMEROTA: John --

JOHN BERMAN, CNN ANCHOR: All right.

President Trump has no problem taking credit when the markets soar, so will he own it when it goes down? Steep losses over the last few days.

We'll speak to the president's former economic adviser, next.

(COMMERCIAL BREAK)

CAMEROTA: All right.

We are less than two hours away from the opening bell. Right now, Dow futures are down about 200 points ahead of the open.

The stock market's dramatic fall over the past week comes after unprecedented gains and President Trump has not been shy about taking credit for those soaring numbers.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: The stock has smashed one record after another, gaining $8 trillion and more in value in just this short period of time. The United States is doing fantastically well -- better than we've done in decades. The stock markets are incredible.

And you're seeing what's happening with the stock market. People are appreciating what we're doing.

The stock market is way up again today and we're setting a record, literally, all the time. And I'm telling you, we have a long way to go.

(END VIDEO CLIP)

[07:45:05] CAMEROTA: All right.

Let's discuss all of this and what's happening today with CNN senior economics analyst and former senior economic adviser to the Trump campaign, Stephen Moore. And, CNN chief business correspondent Christine Romans.

Great to have both of you here --

CHRISTINE ROMANS, CNN ANCHOR: Good morning.

CAMEROTA: -- standing by on set as this volatility -- are you nervous?

STEPHEN MOORE, CNN SENIOR ECONOMICS ANALYST, DISTINGUISHED FELLOW, THE HERITAGE FOUNDATION, FORMER SENIOR ECONOMIC ADVISER TO THE TRUMP CAMPAIGN: I am nervous. I mean, what -- the futures are down another 200 points.

ROMANS: The futures are down another few hundred points. If you look at the implied open it could be several hundred points on the Dow if this negativity holds.

CAMEROTA: OK. So, Stephen, listen, if the president is going to take credit --

MOORE: Yes.

CAMEROTA: -- when there's a boom, does he need to take responsibility when there are these losses?

MOORE: Yes, but look, I mean, the Dow was up 7,000 points and so it's giving back 1,500 to 2,000. We're still way ahead of the game.

I mean, my one piece of advice just for investors out there -- people with 401(k) plans. People tend to make the mistake of selling --

ROMANS: They do.

MOORE: -- selling when the market's falling and you don't want to do that.

I mean, if you're in for retirement purposes don't sell now because you're -- in fact, I think -- I kind of agree with you, Christine. At some point this is going to bottom out --

ROMANS: Yes.

MOORE: -- and when it does I think the market will go on its way. So don't sell in a down market.

ROMANS: There's an old phrase on Wall Street. If something -- don't just stand there, do something. Don't just do something, stand there because you're going to make a mistake in your own retirement right now.

And, Stephen's actually right. Since the election, the Dow's up 33 percent. Now, it lost all the gains for the year and it's lost a quarter of the Trump rally but you have to put it all in perspective here.

There's a lot going on, too. There's things called program trades -- the computers. We have a big move in the bond market which is what we've seen. Sometimes you have selling and stocks that's tied to that that has to do with computer programs.

CAMEROTA: So what about my question to Stephen, which is that if he's going to take credit for the boom in the stock market, which he has -- the president has time and again since becoming president.

I mean, he thinks that -- it sounds like -- that the changes that he's made have contributed to the stock market going up. That there is a feeling of consumer confidence and that there is good news coming down the pipeline. And so, he does take credit for what's happening in the stock market.

So, is -- will he now -- should he now take responsibility for today?

ROMANS: I think you've already seen the White House changing the messaging. Sarah Huckabee Sanders, yesterday, talked about the long- term fundamentals of a strong American economy. That's what you should say when you're talking about the stock market from a White House perspective. That's what they should be talking about.

MOORE: Yes.

ROMANS: You heard -- you heard the ebb and flow -- you know, the vice president talked about the ebb and flow of markets, and that's what they should be talking about.

I just -- it's very dangerous to cheerlead a market because when it turns --

CAMEROTA: Yes.

ROMANS: -- you have to own it and that's a problem.

MOORE: So -- but here's the thing. I mean, this is a strange market correction in the sense that --

ROMANS: Yes. MOORE: -- if you look at the fundamentals of the economy -- if you look at jobs report, if you look at the wage report that came out on Friday -- the highest wage increases that we've had in 10 years.

The "Wall Street Journal" headline yesterday was that 80 percent of companies had higher earnings than expected. I mean, you would -- you would think that if earnings are higher than expected that stocks would go up.

So I think what's going on here is a lot of your friends on Wall Street get spooked every time there's good news because they think that there's going to be an inflationary effect --

CAMEROTA: Yes --

MOORE: -- from all of this economic activity.

CAMEROTA: -- and won't there be?

MOORE: Pardon?

CAMEROTA: Won't there be an inflationary effect?

MOORE: Well, I don't see it out there. I mean, look, it is true that energy prices have risen a bit over the last month or two. But you talk to companies, they don't have a lot of pricing power.

And my big thing is prosperity does not cause inflation. More people working does not cause inflation.

CAMEROTA: But one last thing because I just want to get to because we've heard Christine on this.

Do you think that the tax cuts that have gone into effect -- do you think that that is in some way connected to this?

MOORE: Well, I think the tax cuts have been a spectacular success in every way. I mean, you've got hundreds of companies paying --

CAMEROTA: But we've also heard that you don't stimulate a hot economy and that that's part of what this correction would be.

MOORE: No, no, no, no. I mean, look, this is what -- this is not -- this is about expanding investment, expanding hiring, and so on. I mean, I never believe in this idea of an overheating economy. We've had rates of growth in the past of five, six percent.

CAMEROTA: OK.

ROMANS: We -- the era of low interest rates are over. Artificially low interest rates held down by the Fed. You're going to see interest rates start to rise and that's what the bond market is telling you right now.

Inflation -- what is inflation? Most Americans don't even know what it is because we haven't had any for so long, you know? CAMEROTA: Tell us. Why is it inflation?

MOORE: No, no, no, no, no. Even on your point about interest rates. Look, I agree that they're going up but they're still -- I mean, I lived through the 1970s when we had 14-15 percent interest rate.

We're talking about interest rates that might go to maybe three or three and a half, four percent at the worst. I mean, those are still --

ROMANS: Right.

MOORE: -- pretty historically low.

CAMEROTA: But why is inflation dangerous?

ROMANS: Well, inflation, when you start -- wage inflation, particularly, is what people are worried about.

We had a number on Friday -- this 2.9 percent year-over-year wage growth. We have not seen that since 2009. And that starts to eat into corporate profits, and that's starting to feed into this whole concern about the economy starting to overheat.

Am I right?

So that's what they're worried about.

MOORE: Yes, but --

ROMANS: They're worried about the wage part of it.

MOORE: But look we want higher wages, right?

ROMANS: Yes.

MOORE: I mean, this has -- this has been the problem with the U.S. economy for the last 20 years. Now we get some wage increases and Wall Street panics. I mean, I'm with the workers. I want workers to make more money.

ROMANS: I think what you're seeing for the first time in a long time is Wall Street and Main Street separating a little bit.

MOORE: Exactly.

[07:50:00] ROMANS: The economy is doing well and that's good, but Wall Street is not the economy sometimes, right, and so that's what --

MOORE: Sure, that's a great point.

ROMANS: -- that's what we're seeing here.

CAMEROTA: OK. Christine, Stephen --

ROMANS: Does that make sense? CAMEROTA: -- we thank you --

MOORE: I'm still nervous.

CAMEROTA: -- both very much. Stand by.

MOORE: Don't sell.

CAMEROTA: We'll check -- OK, got it. Got that message.

All right -- John.

BERMAN: All right. Thanks, Alisyn.

Police say the suspected drunk driver in a crash that killed an Indianapolis Colts player -- the driver was an undocumented immigrant. What we know about his past, next.

(COMMERCIAL BREAK)

BERMAN: Police say the suspect in a drunk-driving crash that killed two people, including Indianapolis Colts linebacker Edwin Jackson, is an undocumented immigrant who has been deported twice.

CNN's Athena Jones live in Indianapolis with the latest. Athena, what are you learning?

ATHENA JONES, CNN NATIONAL CORRESPONDENT: Good morning, John.

We're talking about Manuel Orrego-Savala. He's a 37-year-old Guatemalan national who could have his first court appearance as soon as today. He's facing a number of counts including driving while intoxicated and causing death when driving while intoxicated.

[07:50:02] Police say that in the early hours of Sunday morning, Orrego-Savala drove his pickup truck onto the emergency shoulder of Interstate 70 near here, striking Edwin Jackson and his Uber driver Jeffrey Monroe.

Now, Savala had been using an alias and according to immigration authorities, he first entered the U.S. illegally in 2004. We're also learning that in 2005 he was convicted of drunk driving in California and that he had been deported twice, once in 2007 and again in 2009.

I should mention that ICE has a detainer -- immigration authorities have a detainer on Savala.

This is why, though, the fact that he had been twice deported, that misty outpouring of grief we're seeing from those who knew and loved Edwin Jackson. His team saying he was well-respected and loved by all, admired for his outgoing personality and competitive spirit.

Amidst that outpouring of grief we're also seeing some anger being expressed, including by Vice President Mike Pence who was, of course, the governor of Indiana.

He tweeted that "This was a senseless & avoidable tragedy. This is a great loss for the entire Indiana community."

We also heard from another Republican congressman here, Todd Rokita, who says the death of Jackson and this Uber driver should make all Americans angry because it was caused allegedly by a twice-deported, undocumented immigrant -- Alisyn.

CAMEROTA: Oh, it does make everyone angry and sad. I mean, what a tragedy.

Athena, thank you very much.

So, other headline for you.

One deputy is killed and three other law enforcement officers are injured in a Colorado Springs shooting. Police say the incident began as an investigation into a car theft and quickly turned into a chase with shots fired. Police say the suspect was killed.

The fallen deputy, Micah Flick, was celebrating his 11-year anniversary with the force. He is the third law enforcement officer to be killed in Colorado since December 31st.

Deputy Flick is survived by his wife and 7-year-old twins.

BERMAN: That's awful.

The Supreme Court rejecting a request from Pennsylvania Republicans to block a lower court ruling -- actually, a state court ruling ordering the state's congressional maps to be redrawn. The state Supreme Court earlier ruled the Republicans illegally pursued a partisan advantage over Democrats in drawing the maps. Republicans hold 12 of Pennsylvania's 18 seats.

Republican leaders say they may try to take further legal action, although it's unclear what that would be.

CAMEROTA: Sad news from Hollywood. Veteran actor John Mahoney has died. He's best known for playing the curmudgeonly sharp-witted father in the T.V. series "FRASIER."

(BEGIN VIDEO CLIP)

JOHN MAHONEY, ACTOR,"FRASIER": I accidentally stain your carpet and you set fire to the one thing in this apartment I care about and heave it out into the street.

KELSEY GRAMMER, ACTOR, "FRASIER": I'll tell you what. The healthiest thing you can do right now --

MAHONEY: You want to know the healthiest thing you can do?

GRAMMER: Shut my yap.

MAHONEY: Bingo.

(END VIDEO CLIP) CAMEROTA: Mahoney starred on stage and screen for more than 35 years. His publicist says he died Sunday after a short illness. John Mahoney was 77.

He was so likable. I mean, even curmudgeonly. He's just such a likable actor.

BERMAN: He was a terrific actor. I was just reading he didn't really start acting until he was over 30.

Remember "SAY ANYTHING?" I know you love "SAY ANYTHING" because, you know, the --

CAMEROTA: Oh, the ads with John --

BERMAN: (INAUDIBLE). But he was the father in "SAY ANYTHING" and he was so good at this.

CAMEROTA: Was he in "JUNEAU?"

BERMAN: I don't think so, but had he been he would have been --

CAMEROTA: He would have been fantastic.

BERMAN: He would have just carried that film completely.

CAMEROTA: I know that. I know I like him. That's all I know.

BERMAN: Great.

CAMEROTA: Thank you.

BERMAN: Not in "JUNEAU."

CAMEROTA: No?

BERMAN: No.

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

ANNOUNCER: This is CNN breaking news.

CAMEROTA: All right, good morning, everyone. Welcome to your new day. It is Tuesday, February sixth, 8:00 in the east.

Chris is off. John Berman joins me. It's a real knuckle-biter for investors.

BERMAN: Good to be here.

CAMEROTA: OK.

Ninety minutes until the opening bell. Investors bracing for another wild day on Wall Street. All of the gains from 2018 wiped out by this record-setting 1,175-point plunge on Monday. BERMAN: So how will the president handle all this, especially if there is an ugly open this morning? The president's been taking credit for market gains whenever he can, so will he take credit or try to own these losses? Don't count on it.

Chief business correspondent Christine Romans live with the latest look at the futures. Oh, I see a lot of down arrows there, Romans.

ROMANS: It's just not good. It looks like that sell-off -- that market sell-off is not over yet.

Here's what the markets look like around the world right now and Wall Street's plunge is spreading around the globe. Asian markets closed sharply lower. Europe all lower here and actually, worsening in Paris and Frankfurt.

And, Dow futures are swinging wildly. Depending on when you take a snapshot of Dow futures, you're talking about 300 to 500 points lower at the opening bell. They were down as much as 700 points overnight.

Here's what happened yesterday. The Dow lost more than 1,800 points over the past couple of days. Monday, brutal, shedding that record 1,175 points. It's about 4.6 percent.

Context is so important. It's the worst one-day point loss ever but it's not even one of the top 20 percentage losses, so that's important to note.

Let's talk about the Dow stocks. All of them -- look at that -- all of them just got hammered yesterday. It doesn't matter what you sell or what you make, it got hammered yesterday. It looks like it's going to be like that again this morning. So how bad is this?