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New Day Saturday

At Least 2,000 Children Separated From Parents At Border; Argentina Faces Fan-Favorite Underdog Iceland; Judge Sends Paul Manafort To Jail, Pending Trial; Meghan McCain Defends Biden, Calls Giuliani Remarks "Idiotic"; Trump Falsely Blames Dem Law For Family Separation; China Retaliates With Tariffs On $50B Worth Of U.S. Products; Theranos Founder And Former President Indicted. Aired 7-8a ET

Aired June 16, 2018 - 07:00   ET

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

[07:00:00] COY WIRE, CNN SPORTS CORRESPONDENT: Now, if that doesn't get you chills, I don't know what the thunder clap, they call it. Thousands from Iceland made the trip to Moscow. That chant went viral during Iceland's historic Euro 2016 win over England when 99.8 percent of Icelanders watched on television. Argentina is still the favorite, but despite all this, mastery on the field by Lionel Messi -- that man there. He's never led his team to international championship victory. So, that's one to watch today. It's incredible stuff. I'm the other football guy, you know, the helmets and shoulder pads. But this football is pretty fun watch.

CHRISTI PAUL, CNN ANCHOR: It is.

WIRE: So many facts too. We bring it, baby. We bring it, baby.

PAUL: That's why we bring him here. Yes. Thanks, Coy.

MARTIN SAVIDGE, CNN ANCHOR: Thanks, Coy.

WIRE: You're welcome.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Former Trump campaign chairman Paul Manafort is headed to jail.

UNIDENTIFIED MALE: There are some 18 counts here in Virginia, seven in D.C. I mean, they're piling up.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I feel a little badly about it. They went back 12 years to get things that he did 12 years ago.

RUDY GIULIANI, ATTORNEY FOR DONALD TRUMP: He's not going to pardon anybody in this investigation. But he's not, obviously, going to give up his right to pardon. It's a miscarriage of justice, is presented to him.

UNIDENTIFIED MALE: Two adults, four children, just finished crossing the Rio Grande here a little while ago. And now, they're in the custody of border patrol.

TRUMP: I hate the children being taken away. The Democrats have to change their law.

SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: If you don't like families being separated, you can tell DHS stop doing it.

UNIDENTIFIED FEMALE: I think it's so disgusting, so disgusting that people are: one, trying to use the bible in the same way they use the bible judge justify slavery.

(END VIDEO CLIP)

PAUL: Wow! Good morning to you. We're so grateful to have you with us here. I'm Christi Paul.

SAVIDGE: And I'm Martin Savidge, in for Victor Blackwell.

PAUL: So good to have you here with us, Martin. So, it is the situation that's causing a lot of confusion in Washington, anguish on the border, criticism from religious leaders. We're talking, of course, about the separation of families at the U.S. border with Mexico.

SAVIDGE: The Department of Homeland Security now says, at least 2,000 immigrant children were separated from their parents over six-week period. It goes back to April when the government started enforcing a zero-tolerance policy for adults caught crossing the border illegally -- and part of that policy includes the controversial practice. So, what is happening to these parents and children once they get here? CNN's Ed Lavandera reports for us from South Texas.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT: It's hard to see people moving through the thick South Texas vegetation. The Rio Grande rolls by just beyond the tree line, and then just like that, they appear out of the brush. A small group of undocumented immigrants walking into a public park. We just came across this group of undocumented immigrants here in the town of Mission, Texas: two adults, four children, just finished crossing the Rio Grande here a little while ago, and now they're in the custody of border patrol.

This group is actually made up of three different groups. They say they met along the journey from Honduras and decided to enter the United States together. Border patrol agents give them water, and they sit in the shade as they wait for a vehicle to take them to a border patrol station. There's Jonathan Ariel, 11-years-old. He says he left Honduras with cousins, but they abandoned him along the way. He says, his mother lives in Virginia and told him not to make this journey alone but now he's here.

"I told her I wanted to come," he says. "But she said it's very dangerous." Are you scared? "A little," he says. It's a brief conversation that leaves you with many more questions about how a young boy can get to this point. As an unaccompanied minor, he will likely end up, for the time being, in a children's shelter like this, as federal authorities try to connect the boy with his mother.

The rest of the group is made up of two adult women with their children. Dahlia Sayupa is 24 years old and she crossed the border with her little boy. Why did you come? She says, "gang members left a note at her home threatening to kill her, and that's when she decided to flee." Are you afraid they're going to separate you from your son? "Yes, he's my son, and I love him," she says. "I have carried him throughout my journey."

Dahlia says she did not know that she might be separated from her son once shy was taken into custody in the United States. But she says, "I have nothing in Honduras." The families are loaded up and taken away, unsure of what happens next.

The question now is what happens to these young children. Jonathan, the 11-year-old you saw in the piece, he gave me his mother's cell phone number in Virginia. I was able to speak with her, and she told me that immigration authorities have already reached out to her, and that they would talk to her tomorrow to figure out what happens next.

As far as the two adult women and their children, what happens to them is very much up in the air. Even though the Trump administration says that this is a zero-tolerance policy and the plan it to prosecute 100 percent of the people who cross the border illegally, the fact is, that isn't happening yet. But federal officials will not say how exactly it's determined as to who gets prosecuted and separated from their children, and who is released and allowed to move on. They won't explain how the decisions are made. So, the fate of the women that you saw in the story, with those children, as far as we know, it is very much up in the air. Ed Lavadera, CNN, McAllen, Texas.

(END VIDEOTAPE)

[07:05:33] PAUL: Ed, thank you very much. Criminal and Immigration Defense Attorney Jessica Stern with us now, as well as CNN Contributor and former Director of the Office of Government Ethics, Walter Shaub. Thank you both for being here. Walter, I want to start with you. On Twitter, you called this policy or this practice state-sponsored terrorism. Why?

WALTER SHAUB, CNN CONTRIBUTOR AND FORMER DIRECTOR OF THE OFFICE OF GOVERNMENT ETHICS: You know, yesterday on CNN, Lindsey Graham admitted that the purpose of this was deterrence. He was answering a question couldn't the president stop this with a phone call. And he said, sure, but that would increase the likelihood of more people coming here. Once you're trying to just simply deter people, you're admitting that what you're trying to do is trying create atrocities severe enough to scare others away. There's no other word for that. The goal here is terror. This is an atrocity. This is a crime against humanity. I'm so outraged by this. There just aren't words enough to describe how sinister -- what's going on is.

PAUL: Jessica, Senator Feinstein tweeted this out: "43 senators now support our bill to bar children from being taken from their parents at the border. We still need a Republican senator to join. If you're represented by a Republican senator, please ask them to co-sponsor Senate Bill 3036. #FamiliesBelongTogether." Do you see any part of this that is -- seems unnecessary? He's right, the president could stop this if he chose to. Yes, they are illegals coming into the country, but to separate them from families and to detain them immediately has not always been policy.

JESSICA STERN, CRIMINAL AND IMMIGRATION DEFENSE ATTORNEY: It actually happened. There is no law that says that we must detain children or separate children from their families. The law that we are talking about here has been in existence since 1997. It's a federal court settlement agreement that controls how children should be detained if they must. The conditions have to be the least restrictive. So, really, minimal conditions. And make sure that children are in licensed facilities for children. But ultimately, we don't have to be separating children from their parents, separation clearly is a Trump practice. And it's not something that we've seen at this level before.

PAUL: So, let me ask you this, we know that some of the children are housed in an abandoned Walmart. They are now -- when they're separated -- in the custody of the United States at that point. If one of them is hurt, if one is abused, if one is lost, who is going to shoulder that blame?

STERN: The United States government has to. I mean, we specifically have to protect children. And that is in the court mandate that we have to make sure that children are not around anyone that's dangerous. That they're not around adults or other juveniles that could have any sort of harm on the children. And so, it's important that we are really careful what happens. Children are being separated now from their parents not knowing where they are and they're ultimately are getting lost -- and the parents have no idea where they are.

PAUL: The president, Walter, is the putting this clearly on the Democrats, and that's not accurate. All of Congress, essentially, when you look at this, I would assume, is to blame. The president did give Congress six months to figure out a legislative fix and they did not do that, why is that?

SHAUB: First of all, it's a lie, is what it is. He's saying something that's patently untrue and he knows that. It's also absurd because his party is in control of the House, the Senate, the White House, and Judiciary. So, he could change this in a heartbeat. Setting aside the fact that it's not even a law, so you could change it with a phone call.

PAUL: He could change this part of it, but the bigger picture is there has to be a legislative fix to immigration as a whole. Why is it that after all of these years, and people will argue, the Democrats had a chance to do it under Obama, the Republicans have a chance to do it now. Why is there no legislative fix? Does this fall squarely on Congress?

SHAUB: Well, I'll answer that, but I've got to separate something because we're conflating two things. Maybe there are broader problems that can be solved with legislation. But holding up fixing this immediate problem that he has created with this new practice and using these children as hostages because he says he won't sign anything that doesn't give him his law -- his wall. So, he is using these children as hostages to get that component of a reform package. And so, there's no talking about a broader solution until this immediate manufactured crisis is solved. Then, more broadly, we can look at a broader legislative fix to immigration.

[07:10:30] The problem is there isn't a consensus in America. There are people who are threatened by the changing demographics in our nation, and there are other people who want to have a more permissive policy. They're not going to agree any time soon. And putting this crisis on hold in terms of finding a solution until we solve a problem that we've been debating for about 100 years. There was a huge push in the 1920s to hold back immigration as xenophobia reared its ugly head, and now it's rearing its head again. This problem is not a problem that's getting solved quickly. It's incredibly complex, incredibly nuanced. But you don't get to the broader solution until you solve this immediate manufactured crisis.

PAUL: Right. This has to be reconciled as a singular issue. Absolutely. My last question to you, Jessica, our foster care system is already so overwhelmed, and there's been talk that somewhat some of these children may end up in foster care. Is there going to come a point if they don't do something quickly, that our system is going to be so overwhelmed that we don't know how these children are going to thrive, survive, how they're going to cope, what they're dealing with being separated like this at such a young age? This could cause real harm to these children psychologically.

STERN: That's exactly what's happening. The kids now are considered unaccompanied minors, even though they came with their parents, because there's parents are being prosecuted for a crime and being taken for that prosecution. Now, they're on their own. Now, they have no support, no sponsor, no protector. And the government now is responsible for finding a sponsor for them. There's not going to be enough. And it's uncertain what will happen to the children.

PAUL: All right. Jessica Stern, Walter Shaub, we always appreciate the two of you and your perspectives. Thank you for sharing with us this morning.

SHAUB: Thanks.

STERM: Thank you.

SAVIDGE: Still to come, the government is struggling with how to house all of the children that now is coming under its care. It's setting up some temporary setups in the middle of the desert. Is that anyway to look after children? We'll investigate after this.

PAUL: And is former Trump campaign chief Paul Manafort wakes up in jail this morning? One of President Trump's attorneys, Rudy Giuliani, says pardon could be in the pipeline.

SAVIDGE: World Cup actions underway in Russia, and CNN's Amanda Davies is here. AMANDA DAVIES, CNN INTERNATIONAL SPORTS ANCHOR: Yes, it is a huge day

here in Russia for the smallest nation ever to qualify for the world cup. Iceland are about to take to the stage. And what a debut against some might of the two-time champions, Argentina, and Lionel Messi will be here live from Moscow in just a couple of minutes.

(COMMERCIAL BREAK)

[07:17:24] SAVIDGE: You've heard this before, what a difference a day can make. Well, in the case of Paul Manafort it made a huge difference, because the former campaign manager is waking up in jail this morning.

PAUL: He actually arrived there last night. And we want to show some the exclusive video we have. CNN here after his bail was revoked. Caught this -- Manafort may stay there until his trial on foreign lobbying charges starts in September.

SAVIDGE: One of the president's attorneys, that would be Rudy Giuliani, is now suggesting pardons could be in the pipelines after this investigation but only if the president thinks his former staffers are prosecuted unfairly. Here's part of what he said last night.

(BEGIN VIDEO CLIP)

GIULIANI: Let me make it clear right now. Anybody listening.

CHRIS CUOMO, CNN HOST: Please, that's not the one that you want.

GIULIANI: He is not going to pardon anybody in this investigation. But he is not obviously going to give up his right to pardon if a miscarriage of justice is presented --

CUOMO: Doesn't that wind up meaning --

(END VIDEO CLIP)

PAUL: So, CNN White House Reporter Sarah Westwood with us right now. Sarah, what have you heard from Washington about this, this morning?

SARAH WESTWOOD, CNN WHITE HOUSE REPORTER: Well, Christi, one of President Trump's top lawyers leaving the door open for a wave of presidential pardons if Trump doesn't agree with the conclusions of Special Counsel Robert Mueller. Speaking to reporters on Friday, Trump dodged a direct question about whether he would pardon people caught up in the Russia investigation. But he did express sympathy for the former associates who are now facing difficult legal situations, and he cast doubt on whether former National Security Adviser Michael Flynn lied to investigators. Of course, Flynn pleaded guilty in December to making false statements to the FBI. Now, Giuliani told our own Chris Cuomo last night that he advised President Trump to hold off on pardoning anyone implicated in the Mueller probe until it's over. Take a listen.

(BEGIN VIDEO CLIP) GIULIANI: My advice to the president of the United States as his

lawyer, not as a government lawyer, is no pardons. It would completely change the momentum that we have right now, because it's very strong right now. You see the polls moving in the president's favor and against Mueller.

CUOMO: Then why did you suggest it?

GIULIANI: I didn't suggest it. I said he shouldn't pardon anybody. And the president said to me, he shouldn't pardon anybody. What I said was, after the investigation is over, then it has to be considered a governmental matter, not by me. And what the history has been is these people -- these things get cleaned up. Ford did it. Reagan did it. Carter did it. Clinton did it, and Bush did it in political investigations.

CUOMO: So, you're saying after the probe is over, it may be could cleaned up with any pardons?

GIULIANI: If people were unfairly prosecuted.

(END VIDEO CLIP)

SOUTHWEST: Now, President Trump has already described the jailing of former campaign chair Paul Manafort as unfair and he has already begun to use the results of a DOJ inspector general report about the Clinton e-mail investigation to attack the foundations of the Mueller probe even though that report did not weigh in on Russia, Christi.

[07:20:17] SAVIDGE: Sarah Westwood, thank you very much for that report.

PAUL: Thanks, Sarah. So, Rudy Giuliani, he also weighed in on the president's 2020 reelection prospects last night. Had some harsh comments about former Vice President Joe Biden -- he called him a moron and a mentally deficient idiot, those are quotes from him, and claimed that Biden had been at the bottom of his law school class at Syracuse University. Listen to this --

(BEGIN VIDEO CLIP)

GIULIANI: I don't mean that. I mean, he's not -- he's dumb. I think Joe is last in his law school class. Joe --

CUOMO: He wasn't last, but he was low --

GIULIANI: Actually, he was second to last and the guy died, and he ended up last.

CUOMO: We had a different number, but he didn't do well.

GIULIANI: He had a plagiarism problem in law school. He had a plagiarism problem as a senator. Which I think indicates something even about character. Constantly making faux pass.

CUOMO: But why talk about Joe Biden? GIULIANI: Well, because I asked if he would be a formidable

candidate. I said, no. He'd be somebody that I think the president would like to run against -- he never did well as a national candidate. The president did fabulously as a first-time national candidate.

(END VIDEO CLIP)

SAVIDGE: Meghan McCain, that's the daughter of the Arizona Senator, John McCain, came to Joe Biden's defense. She was tweeting: "I am disgusted by Giuliani's abhorrent and idiotic comments about Joe Biden. Joe Biden is one of the great political leaders of all time. One of the truly decent men left in politics. And someone my family has looked to for strength during the most difficult time in our lives."

CNN's learning another former Trump associate -- longtime lawyer Michael Cohen, may try to avoid jail time by cooperating with federal authorities. A source says that Cohen is in a very tough spot trying to make a decision.

PAUL: And Cohen's attempts to stop Michael Avenatti from talking publicly about the Stormy Daniels case -- that's been tabled. The federal judge said Cohen failed to show a need for a restraining order against Daniels' attorney. A final decision, by the way, is due later this month.

Tomorrow, "UNITED SHADES OF AMERICA" with W. Kamau Bell heads down south to debunk some myths while Bell replaces his own family roots.

(BEGIN VIDEO CLIP)

W. KAMAU BELL, CNN HOST: Now, my crew's doing OK by most measures. Well, my dad's is way more impressive. He was the insurance commissioner for Alabama which made him the highest ranking black person in Alabama. He was the first Alabamian to become the president of National Association of Insurance Commissioners. He's met with presidents -- Clinton, Obama -- nope. But before all that, he was a struggling artist in the Bay Area. That's where I got that from. But his life really started in a shack in Vredenburgh, Alabama -- 100 miles outside of Mobile. It's got a population of 312. And the shack is on land that my family still owns right off of -- don't get too impressed -- Bell Road.

(END VIDEO CLIP)

PAUL: Catch "UNITED SHADES OF AMERICA" with W. Kamau Bell, there tomorrow at 10:00 p.m. Eastern.

(COMMERCIAL BREAK)

[07:27:58] PAUL: So, debate and protests, as you know -- they're spreading across the country right now regarding the Trump administration's practice of splitting up immigrant families when they try to enter the country. So, the administration says it's a matter of securing other border and deterring immigrants from illegally entering the U.S. Critics call the decision heartless and harmful to the children who end up without their parents in government detention facilities and foster homes across the country. So, there are different reasons that kids can end up in the custody of the government. We just want to explain this here as much as we know it. Some minors come into the country by themselves. Others come with parents or other family members who cross the border illegally. When they're caught, the government separates children from the adults that they're with. Now, in some cases, children are separated from parents who present themselves legally at ports of entry to apply for asylum. Once the children are taken from their families, they're designated unaccompanied alien children, and assigned to the Health and Human Services Office of refugee resettlement. Separating families is not new. Why is it happening more frequently now is what a lot of people are asking? Well, President Trump says it's because of a law put in place by the Democrats.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It's the same time, Mr. President. People say, look, you rip these families apart, even though it is the law, it's heartless.

TRUMP: That's the law, and that's what the Democrats gave us. And we're willing to change it today if they want to get in and negotiate.

(END VIDEO CLIP)

PAUL: That's not true. This was a deliberate policy shift by the Trump administration. They have the power to unilaterally reverse this. It is legal, no question about that at all, but it's purely the administration's decision and discretion when it comes to the separation of families that we are seeing right now.

[07:29:48] SAVIDGE: Sticking with that same subject, CNN is learning more about the first temporary holding facility for undocumented children -- those that have been separated from their parents -- located in Tornillo, Texas. The facility is in a tent-like city in the middle of the desert that reportedly can hold up to 360 beds with more if needed. 200 children were delivered there just yesterday. CNN Correspondent Gary Tuchman, visited that facility, hear seems report of the conditions there.

GARY TUCHMAN, CNN NATIONAL CORRESPONDENT: Christi, Martin, this is the tiny town of Tornillo, Texas. And this is the port of entry campus right across the Rio Grande River from Chihuahua, Mexico. And behind the six-foot fence, behind the six-foot granite wall, and behind this 10-foot barbed wire fence, we believe there are up to 300 children now residing who arrived as of yesterday.

The government is not telling us the exact number of children. However, we are being told by a state representative for this district that 98 children arrived on Thursday, 200 more on Friday. These are children who were separated from their parents when crossing the southern border and children who came across by themselves.

The tent you see in the background, we believe that's where they will be living. The government hasn't told us exactly of where they will be. However, that tent-like structure matches what they describe as a semi-permanent facility that will be built with durable plastic and steel, and heat, ventilation, and air conditioning.

Air conditioning critically important because it gets to over 100 degrees here during the day. Now, President Trump could stop this from happening right now. He says it's the Democrats' fault. However, the policy of arresting adults resulting in the practice of taking away their children started with Mr. Trump as the administration. And he could stop it as soon as he started it, and it's still going on as we speak.

This area is desolate. The 300 children who arrived, the roughly 300 children have increased temporarily the population of this town by 20 percent. There are only 1,500 people who live here. And it's in the middle of the desert about 40 miles east of El Paso, Texas.

You could see it right here. I give you an idea about desolate, there's a toll booth that was built for people driving from here in the United States and to Mexico. But they don't use the toll booth anymore because there's not enough traffic to make any money from the tolls. So, we don't know how long the children will be here but we can tell you, this is one of about 100 such facilities in the United States. Christi and Martin, back to you.

SAVIDGE: Gary Tuchman, thanks very much for that. Joining us to discuss all of this is CNN political commentator and former senior adviser to the Trump campaign, Jack Kingston, and CNN political commentator and Democratic strategist, Maria Cardona.

Let me just start up by saying that -- you know, obviously, we've heard a lot of talk about how people feel about the separation of families here. I guess where I'd like this conversation to go is to talk about how do we stop it? How do we change it?

And Jack, maybe I'm going too far, maybe I'm assuming you are opposed but maybe you're not. So, first of all, why don't you tell me what do you stand regarding this?

JACK KINGSTON, CNN POLITICAL COMMENTATOR: Well, I'm opposed to it, but I think you're right in saying we do need to step back and say, why are we here? What has led to this?

SAVIDGE: Well, I didn't say that. I said, what are we going to do about it?

KINGSTON: Well, I mean in order for us to do something about it, we need to know why we have it. And it's as you know, it's a 2008 policy that was continued under the Obama administration. It's a --

(CROSSTALK)

SAVIDGE: I don't want to go back over that Jack, we've done that all this week, we have hit it with many, many guests that have come forward.

MARIA CARDONA, CNN POLITICAL COMMENTATOR: Wrong.

SAVIDGE: So, let's not do that. Let's talk about going forward -- you know, let's talk about the legislation that is pending going forward. And let's talk about with you on the decision.

KINGSTON: OK, but, no, not, but, Martin, let's me just say this. Is somebody who has voted on immigration reform and work for immigration form and sat in the legislative chair, you do need to know a little bit of the history but we can skip that and say, right now that we do have a choice in the House between two pieces of legislation.

Just as there was a choice earlier this year in January 2018, when the president offered the Senate a deal and the Democrats and the Senate rejected it on their very, very --

SAVIDGE: Which one of the two deals do you support where do you find the most palatable?

KINGSTON: I like the Goodlatte bill, frankly. I think that it's a stronger one, we have to have a border enforcement. And I think that that's the tougher bill of its --

SAVIDGE: It doesn't seem to mention in any way separation of families.

KINGSTON: No, but I think you would -- you address it as part of it. Part of the reason why you have this Alien Transfer Exit Program is because there is no wall in the rural areas that's the reason it's there. And so, what you do is you try to have something that will deter people coming in that area and push them into an area where they will enter illegally. And then, they're not --

SAVIDGE: All right. Well, let me just stop you for a minute because I want to bring Maria in on this conversation, as well. Maria, let me start by asking you this. Of the two proposals that may be voted on next week, Democrats, I believe that said they're not going to vote or they're not -- they're not going to go along with either one of them. So --

CARDONA: Yes.

SAVIDGE: What do we do?

[07:34:47] CARDONA: Well, in order to stop this horrific pure evil policy that we are seeing right now that has separated up until now in the last six weeks at least 2,000 children from their families. Many of which have been taking taken from the -- from the arms of their mother while they are breastfeeding, many of which have many mothers have been lied to saying they are going to --

SAVIDGE: Maria, with all due respect, we have gone over this.

CARDONA: They're going to bait their kids, and then, they are taken from them.

SAVIDGE: Let me ask you what are -- what are Democrats going to do to prevent this from happening? What are the Democrats going to do?

CARDONA: OK, let me be very clear, Martin. The Democrats don't have to do anything. Do you know why? Because this is a policy that President Donald J. Trump, has put forward by himself. This is not a Democratic law, you know this. You have been batting down that defunctness for two day.

KINGSTON: Let me -- let me say this, respectfully though.

CARDONA: Hang on, Jack, hang on.

SAVIDGE: Hold on, Jack, let her just finish a minute.

CARDONA: This is not a policy or a law that was put forward by Democrats. The president could stop this now, the president did not need to start this. The president said very clearly, as have his White House aides that they are using this as a negotiating tactic so that they can get through the draconian bills that Jack is talking about. That is disgusting, Democrats do not --

SAVIDGE: So, why are Democrats then being blamed for not doing anything? Because that's what they're not doing.

CARDONA: Because, because, yes.

SAVIDGE: They're not taking this on.

CARDONA: Let me tell you why, because once again, the president and his Republican supporters are outright lying to the American people. We are happy to meet this president to talk about comprehensive immigration reform which the majority of the American people support, but we will not negotiate away this kind of issue where the president can stop this tomorrow. This is nothing to do with Democrats.

KINGSTON: Fine. Let me --

SAVIDGE: Jack, (INAUDIBLE) back in.

CARDONA: And this will not end the bills that are in Congress right now. We'll not fix the immigration system.

SAVIDGE: Jack, this can -- Jack, do you believe that this is going to be in some way resolved next week? In other words, do you really think we're going to have a vote?

KINGSTON: I think, this is going to move in the right direction, and yes, I was on the phone with the White House yesterday, a senior official. And they do not like this policy. They are desperate to sit down with the legislative branch which by the way, Maria, as you know, makes the laws. The executive branch enforces the laws, but it's the legislative branch where this has to begin.

And I don't accept that the Democrats don't have to do anything. I have been a minority member of the House and a majority member the whole time. I was responsible for my conduct and trying to find solutions. And it didn't matter who was in the White House -- SAVIDGE: So, let me ask you this, Jack. There is a solution that's

being put out there which is coming from the Democrats. In fact, it's a proposal to deal specifically with the issue of separation of families. And I'm wondering if this topic is so disconcerting to Republicans, why would they not sign on just -- ?

KINGSTON: At that, Martin --

CARDONA: Yes.

KINGSTON: As a Ryan bill and as the Goodlatte bill moves through the House, the Democrats should offer that in any other amendment that they have that they think will be productive again.

SAVIDGE: But if why not go about just that specific issues, since everyone seems to agree it is very important?

KINGSTON: Well, let me ask you a question. If you do that will you solve this problem?

CARDONA: Answer the question, Jack.

KINGSTON: And I think, if you can say, yes, you take care of everything then, I think the bill would sail through the House. I think what the concern is, and the concern is right, is you still have a major problem with porous borders and what are you going to do about it?

CARDONA: OK, Jack, Jack --

SAVIDGE: Let me, Jack. Let me start with Maria. Go ahead, you get the last day here and go ahead.

CARDONA: Jack, Jack, yes. Jack, just admitted it that the president and Republicans are taking these children -- these children hostage to as a pure negotiating tool to get through the rest of their draconian proposals. Here is the bottom line.

(CROSSTALK)

KINGSTON: You guys were in charge to a -- you're in charge of the Obama. You did not do anything aggressive as well.

CARDONA: Here is the bottom line, Jack. Here is the bottom line. Here, here, here is the bottom line. We had a resolution for in the immigration problem. It was called the Comprehensive Immigration Reform Act and Republicans put a stop it.

KINGSTON: And you had the Senate in the House and did not pass it.

CARDONA: John Boehner, said -- John Boehner, said that he would not --

KINGSTON: You had a Senate in the House under Obama, you did not pass it. CARDONA: John Boehner -- John Boehner said when he was a leader of the House to President Obama, that he was not going to bring it up because he did not want to pass a bill which majority Democratic support.

And so, now, Republicans are taking children hostage and this is purely the president's fault because they want this draconian bill pass.

SAVIDGE: Remember, let me just stop you both there because we're now delving back into the past and this was supposed to be a conversation about the future but we will talk again. Thank you both, Jack Kingston and Maria Cardona.

KINGSTON: Thanks, Martin. Thanks, Maria.

CARDONA: Thank you.

PAUL: So, talking about something that could certainly affect you directly. The tit-for-tat trade war brewing between China and the U.S. after China retaliates with their own set of tariffs on U.S. products. And remember, President Trump, slapped tariffs on $50 billion worth of Chinese goods.

Well, the tariff from China are set to go into place July 6th. So, here's what they would do, they target farm products such as soybean, cars, seafood. Tariffs on some chemicals, medical equipment, energy products that would start a little bit later.

[07:40:02] PAUL: But the move is sparking fears of a global trade war, they can potentially do serious damage to Main Street. I give you an example here. The headline on the Des Moines, Iowa Register this morning is this. "China tariffs on U.S. soybeans could cost Iowa farmers of the $624 million." Something to watch there.

And coming up, the company at Theranos promised to test for cancer, to test for diabetes with just a few drops of blood. But the U.S. attorney says guess what, it was all just a scammed

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[07:44:53] PAUL: 44 minutes past the hour. So grateful to have you with us here. You know, this summer actually begins the March for Our Lives national tour. It's led by students who survived in Parkland shooting in Florida, and in making stops across America to get out their message in support of gun control.

SAVIDGE: The campaign kicked off this weekend at Chicago's annual rally for peace. And CNN National Correspondent Dianne Gallagher has the story

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: I say, (INAUDIBLE) Chicago.

DIANNE GALLAGHER, CNN NATIONAL CORRESPONDENT: Bringing their brand of activism and all the crowds and cameras that come with it to the south side of Chicago.

UNIDENTIFIED FEMALE: Everyone from Parkland is so grateful to be here with you today. We're so grateful to fight with you, stand with you, rally with you.

GALLAGHER: Announced earlier this month back in Florida, the students from Parkland officially kicked off their next movement. A 75 stop cross-country political action summer tour and voter registration drive.

ALFONSO CALDERON, STUDENT ACTIVIST, PARKLAND: We're calling this the road to change. What place better to bring change to than Chicago.

GALLAGHER: Linking up with young Chicago activists like Trevon Bosley and Arieyanna Williams who will join them on the summer tour. The Parkland teens taking a bit of a backseat at the first summer stop. The Chicago strong rally in Saint Sabina Academy Peace March. Instead, choosing to shine their spotlight on the Windy City's youth movements, which have struggled to garner the same kind of attention.

TREVON BOSLEY, STUDENT ACTIVIST, CHICAGO: I've been finned anti- violence for probably eight or nine years now. And we did a media -- we did a press conference, and we literally had no press at all. And to see that Parkland got the press and they allowed us to use their platforms to spread our message of everyday shootings.

Because they've been happening for so long and so often, and majority of times, the media here has become content with it, as well as the community here, has become content with the violence.

ARIEYANNA WILLIAMS, STUDENT ACTIVIST, CHICAGO: I was born into a violent Chicago but in reality, we're starting to change that because we begin to see. If we have a hope of people helping us and we have a way to change Chicago.

GALLAGHER: Manuel Oliver, whose son, Joaquin was one of 17 murdered at Marjory Stoneman Douglas High School used art, paint, and a hammer to advocate for nationwide gun reform. As the city's young activists delivered fiery speeches.

UNIDENTIFIED FEMALE: It's time for a change.

GALLAGHER: Taking turns on the stage with the likes of former Arizona Congresswoman and shooting survivor Gabby Giffords, Chicago teens solemnly read the 147 names of young people killed in their city this year.

CHANCE THE RAPPER, RECORD PRODUCER, WEST CHATHAM, CHICAGO: I'm not here to sing, man. I'm here to turn up you all trying to get loud. Chance the Rapper and Jennifer Hudson, the singer lost three family members to gun violence in 2008, pumped up the crowd of thousands as they took to the south side streets marching for peace and unity in Chicago. The young people here today saying these are the first steps.

CALDERON: You ain't seen nothing yet. GALLAGHER: On their unified road.

BOSLEY: We're coming fight.

GALLAGHER: That they believe will end and change.

WILLIAMS: The kids are done sitting at the kiddie table is now the adults turn to sit there, and we stand up.

GALLAGHER: Dianne Gallagher, CNN, Chicago.

(END VIDEOTAPE)

SAVIDGE: Going to be a very busy summer for all of them. Well, she was a college dropout who became the youngest self-made female billionaire. But now, Elizabeth Holmes is facing some pretty serious prison time. She started Theranos, that's a blood testing company that promised to detect diseases like cancer or diabetes with just a few drops of blood. But the US Attorney's Office says that was far from accurate.

PAUL: Holmes and the company's former president Ramesh Balwani were indicted yesterday on federal wire fraud charges. The two made millions of dollars while allegedly misleading both investors and doctors.

Minutes before the charges went public, though Holmes, stepped down as CEO. She and Balwani were both released on $500,000 bond. There's been no comment by the way, from Holmes or Theranos.

SAVIDGE: Next we're going to go live to the World Cup in Russia, where yesterday there was a gold fest, and still ahead a preview of the underdog to watch for today.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: With a little gin.

(END VIDEO CLIP)

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[07:53:10] SAVIDGE: It is day three of the World Cup from Russia, and we're looking forward to the David versus Goliath kind of matchup that is going to happen later today.

PAUL: Yes, how it was described, Amanda Davis is live in Moscow at the Spartak Stadium where Argentina and Iceland are facing off in just about an hour at this point. All right, Amanda, what's going on?

DAVIES: Hi, Christi. Hi, Martin. Yes, as you can see a glorious day here in Moscow where the stage is set perfectly for the smallest nation ever to qualify for the World Cup to take their bow on football's biggest stage.

And what a way to do it against the might of the two-time World Champions Argentina, and of course, their star man Lionel Messi. This is a country with a population of just 330 thousand people. And then, when you look at the size of the pool of professional players, they have to choose from for their 23-man squad.

They have only about a hundred of them. So just getting to this point, their first major World Cup is impressive enough. Their coach Heimir Hallgrimsson is actually still a part-time dentist and he, as you would expect, has described this match today as the biggest in his country's footballing history.

This is a team that is not just popular for what they do on the pitch but for their fans, as well. You could hear them there the pictures, we can hear them singing already behind us in the stadium.

PAUL: No doubt. Yet, it'll be on our T.V. at home. At some point, I can say that. Amanda Davies, appreciate it. Thank you.

SAVIDGE: Stay with us because the next hour of what message Rudy Guiliani is sending with all of this pardon talks, coming up.

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[07:59:19] PAUL: You know that saying that everything's bigger in Texas? Well, one business it's finding success that went bite-sized.

(BEGIN VIDEOTAPE)

AARTI GAREHGRAT, CO-FOUNDER, BAGEL DOTS: Hi, I'm Aarti.

PURAV PATEL, CO-FOUNDER, BAGEL DOTS: And I'm Purav.

AARTI: And this is Bagel Dots.

Trying to eat an entire bagel that would get full. And so, Bagel Dots to seem might the perfect solution. They're just easy to eat because you can just pop them in your mouth.

PATEL: Yes, I don't have that problem, I can eat a whole bag. It's a new innovative twist to traditional bagel. I think, of a small donut hole filled with cream cheese. It comes with four different flavors, the Jalapeno, Plain Jane, Cinnamon Raisin, and the kitchen sink which is everything bagel.

So, we started back in 2014 making maybe 500 out of our house. Now, the production facility behind us here can make 20,000 a day, and they're being sold in 205 grocery stores throughout Texas.

PATEL: You like it?

UNIDENTIFIED FEMALE: Thank you.

PURAV: Thank you. And in the early days, we got involved with the communities. And then, a lot of organic growth happened to that. We have a lot of goodwill ambassadors where they go back.

GAREHGRAT: We have four flavors, they are look good. PURAV: I think, the industry as a whole is moving towards small moving toward small or bite-sized foods. Maybe for portion control but also just for convenience. I think everyone is looking for that.

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