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FBI Investigating Security Of Clinton's Email Server; Clinton And Sanders In Dead Heat In New Hampshire; Clinton Bashes Bush For "Women's Health" Comment; How Will Debris Assessment Affect MH370 Search?; Higher Interest Rates Are Coming. Aired 7:30-8a ET

Aired August 5, 2015 - 07:30   ET

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


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[07:33:16] CHRIS CUOMO, CNN ANCHOR: Welcome back. Let's get to "Inside Politics" on NEW DAY with John King. We have Trump's man on here. He says shut down the government before funding Planned Parenthood, and don't come at him in the debate tomorrow night.

JOHN KING, CNN HOST, "INSIDE POLITICS": We'll see what happens in the debate, but as we move from August to September, that is going to become a question, is that a big enough fight for Republicans to risk the political fallout from shutting down the government. We'll keep track of that one, Chris.

And let's go "Inside Politics" this morning on another very busy day. With me to share their reporting and their insights, Lisa Lerer of the "Associated Press" and Ed O'Keefe of "The Washington Post."

Let's start with this FBI investigation into Hillary Clinton's e-mail server. We should be clear. They want to look at the security of this.

As of right now, there's no reason to believe Secretary Clinton did anything wrong. But they want to look to see if material that maybe was not classified when it came into the server, but it was later classified or sensitive.

How was it stored? Was it safe? Her lawyer apparently has a thumb drive with some of these e-mails on it. Right now, it's a review of security issues. As a political issue for her campaign, big, medium or we don't know?

LISA LERER, "ASSOCIATED PRESS": It's a continuation of the slow drip of e-mail, stories that are going to come out. We are guaranteed one a month. There's a court order requiring the State Department to release a batch of these e-mails every month.

In between, we have these ongoing investigations by the FBI, the State Department, inspector general, Republicans in Congress that are bringing up other revelations.

I think the problem for her politically is that, you know, this gets to this early narrative that Republicans are trying to set about her trust worthiness, can you really trust her if she was keeping all her e-mails on this private server? How it plays into that? How it affects her already down numbers on trustworthiness. That's the problem for Hillary Clinton.

KING: It's a judgment question. Her boss, the president recommended that this all be done in-house. She decided I wanted to do this on a private server. Yes, other public officials have done it in previous administrations.

[07:35:02] But knowing that she was likely to run for president, that's the part I don't get. Knowing she was likely to run for president, knowing the scrutiny the Clintons get, that's the part I don't get.

ED O'KEEFE, "THE WASHINGTON POST": They have always done this. They've always -- the attack is that they play by different rules. I think it's very clear that they do. We have discovered, since, that other cabinet secretaries do this, but you're right, they are not running for president.

I think, more than anything, you know, you wake up at the vice president's residence. You wake up at this morning at Bernie Sanders house and you think my chances are getting better.

KING: Let's look at that because there's a brand-new WMUR poll that say if you look at Bernie Sanders, you say again, wow, we all knew Bernie Sanders would be an interesting candidate. We know he'd represent the left.

Guess what? He's in a statistical tie with the former secretary of state in the state of New Hampshire, the first primary state, 51 percent for Hillary Clinton in May. She's down to 42 now. Bernie Sanders went from 13 to 36. She's ahead, but that's a statistical tie.

Joe Biden is up from 2 to 5. He's not running right now. That is part of the conversation. Number one, what does it mean for Sanders? And number two, (inaudible) of the "Wall Street Journal" tried to ask the vice president yesterday because he's under speculation.

Biden's aides said he was going to decide in August, now September. She asked him, are you running, and he said, a smart answer, cracked a joke, only if you'll be my running mate. What do these numbers tell you?

LERER: Look, I think there is this quest for authenticity. That's what we are seeing in these early polls. We are seeing it on the Republican side with Donald Trump and we are seeing it on the Democratic side with Bernie Sanders.

People seem to want someone who doesn't feel like politics as usual. That sends some pretty intense warning signs if you are Hillary Clinton or Jeb Bush, two of the most famous names in politics.

That's part of what this is about. Bernie Sanders is from Vermont. There's crossover in media markets. New Hampshire voters have seen his ads for years. They are familiar with him, but I think overall this speaks to authenticity issue.

KING: There are 17 Republican candidates and so when Trump gets 24 he's leading the polls. Bernie Sanders can get into the 40s. I agree with you completely about he speaks his mind, he's authentic and fun. They view him as more ideological pure on the base part. If you get into the 40s, something else is happening there.

O'KEEFE: That's why if you are Biden, authenticity is hot right now. Nobody is more authentic as Joe Biden, gets him in trouble all the time, but electability still matters. This is a guy who has been on a national ticket at work. He's run twice before, didn't work out very well. Given the mood right now and the fact Clinton is faltering, why not step up?

LERER: But there are some real structural questions he will have to answer. It's expensive to run for president. It's particularly expensive to reimburse the cost of Air Force 2. He doesn't have a ground team in place. He would have to staff up quickly. Clearly Clinton has this massive infrastructure of hundreds of people, has the advantage on that.

KING: We'll see if he decides to be on the mood of the country. Let's move on to Jeb Bush. Something he said has the Democrats quite happy. At the moment, Hillary Clinton beats Jeb Bush in the general election by 15 points among women.

A gender gap that big, pretty hard to overcome. So did Jeb Bush make it worse yesterday? He was at the Southern Baptist Convention. He was talking about women's health and he gave a long answer. He said he wanted to defund Planned Parenthood, but within that answer was this.

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JEB BUSH (R), PRESIDENTIAL CANDIDATE: I'm not sure we need a half billion dollars for women's health issues.

(END VIDEO CLIP)

KING: Not sure we need a half billion dollars for women's health issues. He quickly tried to clean it up. He said with regards to women's health funding broadly, I misspoke, as there are countless community centers that need to be fully funded. He's trying to say I meant Planned Parenthood. Hillary Clinton says sorry, I'm going to use it.

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: Jeb Bush said, he's not sure we need half a billion dollars for women's health issues. I'm reading it because I want to quote it exactly. Now, he's got no problem giving billions of dollars away to super wealthy and powerful corporations, but I guess women's health isn't a priority for him.

(END VIDEO CLIP) KING: There's a twofer here, if you will. The gender question and Bush should be more careful about everything he says. Two, it begs the question. Has he been off the bike so long that he has to be more careful about what he says?

O'KEEFE: He can be on a great streak and suddenly say something and he plummets. Take this, plus an awkward performance Monday night. They all had awkward moments. He stumbled over questions about his dad. No boots on the ground in Iraq and Syria, but we should deploy Special Forces.

He says these things that get jumbled up then he says that. It puts it back in the Democrats court, if you will, when it comes to Planned Parenthood. It's a reminder to people. Planned Parenthood does a lot for women's health. Yes, you may to defund them, but to totally dismiss women's health altogether.

[07:40:01] So you don't want any research for breast cancer research to make it possible for women to get pregnant, all the other women's health issues. You've totally dismissed an entire gender's health by saying that. It will be in ads between now --

KING: And the fact that he quickly said, I misspoke. In today's age, better focus on what he said. There's a camera there.

LERER: It also gives you a sense of where the Democrats are. There's a sense within Democratic circles that Jeb Bush is getting a free pass while all the focus, of course, is on Donald Trump. They don't want that to happen.

You know, Hillary Clinton, over the past week has done a number of attacks, focused on Jeb Bush. They think he is going to be the nominee and they want to start defining him early.

KING: That is a telling point that as we've seen there are some people say Jeb Bush has been struggling a bit lately. You can make that case, if you want. In Camp Clinton and in Camp Bush even, they think after the Trump faze, he's going to be it, Michaela.

We'll learn a little bit more about the dynamics of the race when we get to the big debate tomorrow night. I can't wait.

MICHAELA PEREIRA, CNN ANCHOR: I can't believe it's already tomorrow. This is incredible. All right, John, thanks so much for that.

Investigators in France are beginning the slow process of analyzing the debris widely believed to be from MH370. How soon will they make that conclusion? We will discuss it with one of our aviation experts ahead.

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[07:45:09] PEREIRA: Could we be closer to solving the mystery of Flight 370? Today investigators will begin analyzing that wing component to see if it belongs to the missing plane. Mary Schiavo, CNN transportation analyst and former inspector general of the U.S. Department of Transportation joins us now. Good morning to you, Mary.

So we understand that these investigators are going to be conducting several tests on this part to determine if it is, indeed, from the missing airplane. Let's pull up the full still of the testing methods they are going to use.

To a layman like me, some of this stuff is way beyond my pay grade. I understand that you can tell us a little bit about what these tests will teach them.

MARY SCHIAVO, CNN TRANSPORTATION ANALYST: Well, the important thing about these tests is most of them, other than the visual inspection or inspection with microscopes and electron microscopes, these tests help them determine any kind of damage pattern that is not available to the naked eye or the naked eye with a microscope or a magnifying glass.

They can pick up patters of a swirling, cutting, pitting, bending. They will be able to tell, perhaps, even what part of this flaperon hit the water first.

They will be able to see if there was a turning or twisting, as it was coming down to hit the water. These tests are designed to tell the investigators things that the eyeball cannot.

PEREIRA: So first and foremost, it is confirming, is it or is it not from MH370, but then, part B of that would be all those things to figure out what may have happened to the plane.

SCHIAVO: Exactly. Part of determining whether it was from MH370, as opposed to some other 777, which is, of course, not likely is they will be doing other tests including examining the paint and examining if there were any repairs.

That is important for these tests because repairs are unique to the plane and they have to be recorded in the maintenance of the aircraft. They will cut the part open where there will be additional part numbers on the inside as well unless they have been washed away by the ocean.

So they will be able to see a lot. Probably not what everyone wants to know is why the plane went missing that won't come from this part, but they will be able to tell an awful lot.

PEREIRA: Well, that's a very important part we have to sort of manage expectations here. This sounds very involved. Are they likely to make quick work of this?

SCHIAVO: No. This will take several weeks to do all these tests. They will be able to identify I think very readily that this was from MH370 through the paint, through the fact you can trace other flaperons. We have to trace our parts worldwide.

There was a huge effort back in the '90s and early 2000s to trace parts worldwide so you don't have bogus and so they will know where the part came from and where it was supposed to be.

PEREIRA: OK, in terms of all they could gleam from this part, if it is indeed from MH370, do you think it has the potential to help them pinpoint or recalibrate where they need to be searching or where they are searching?

SCHIAVO: No. Other than the fact that it has been in the water pretty since when the plane went missing in March, 2014, they might be able to tell how long it's been on the beach in terms of decomposition of the marine life.

They will be able to tell it has been in the water for a year or so and that it most likely moved in the South Indian Ocean guyer. They will test to make sure it did float. That would be an important test.

PEREIRA: Final question for you quickly here, do you anticipate more debris will be found in this fashion, washing up on a shore of a remote island like Reunion.

SCHIAVO: Only debris that floats. People have to remember it has to have moved in on the currents on the ocean guyer that moves things in a counterclockwise motion. We would expect to find more things that floats, heavy pieces of metal, et cetera, not likely. It had to float to the islands.

PEREIRA: All right, Mary Schiavo, always great to have your expertise. Thanks so much. Back to you.

ALISYN CAMEROTA, CNN ANCHOR: Michaela, we are getting our first clue that the fed may be ready to raise interest rates for the first time in more than a decade. What that means for you, next.

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[07:53:18]

CUOMO: The word is an interest rate hike could be coming soon. It's time for CNN money now. Chief business correspondent, Christine Romans is in our Money Center. Christine, they don't like this on Wall Street.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: It's one of the most important things out there for your money and the first interest rate hike in nine years is likely coming next month, Chris.

The latest clue, the Atlanta fed president, Dennis Lockhart, told the "Wall Street Journal" barring an unexpected deterioration in the U.S. economy. The fed will raise rates in September.

He says it is time. That means it will cost more to borrow money. It will cost more for your house, for a car and more in credit card interest rates. All of those things will rise.

If you bought Apple stock in the last year, you do not like the look of this chart. You are losing money. Apple stocks fell 3 percent yesterday. It's now 15 percent from the April high. That's called a correction. What's the problem here?

It's all about the iPhone. Apple is losing ground in China and the U.S. smartphone market is saturated. Apple is still the world's most valuable company with $200 billion just in cash in the bank -- Alisyn.

CAMEROTA: That's good to know, but I didn't know Apple stock was capable of falling.

ROMANS: What goes up must come down.

CAMEROTA: I guess so. Thanks so much, Christine. Ten Republican presidential candidates set to face off in the first GOP prime time debate. Who will be the night's standout? And can the other candidates trump Trump? Get it.

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[07:58:46]

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DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Our country is really going bad. We are going downhill fast.

UNIDENTIFIED FEMALE: Donald Trump riding high in the polls.

TRUMP: The poll numbers are not only good, I mean, they are phenomenal.

UNIDENTIFIED MALE: The stage is set for the Republican debate.

JOHN BERMAN, CNN ANCHOR: Who is in and who is out?

BUSH: I'm not sure we need a half billion dollars for women's health issues.

CLINTON: I guess women's health just isn't a priority for him.

UNIDENTIFIED FEMALE: He misspoke. It's going to happen.

UNIDENTIFIED MALE: This is a big mistake.

UNIDENTIFIED MALE: The FBI is looking into the security of Hillary Clinton's private e-mail server to determine whether sensitive information that could have been compromised.

UNIDENTIFIED FEMALE: I don't think this is helpful for the Hillary Clinton's honest and trust worthy numbers.

UNIDENTIFIED MALE: Shock and outrage after an 8-year-old boy was handcuffed in school.

UNIDENTIFIED FEMALE: Why would that ever be OK?

(END VIDEOTAPE) CUOMO: Good morning. Welcome to your NEW DAY. It is Wednesday, August 05, 8:00 in the east. We now know that the stage is set literally for the first debate.

Here's drama of course over how Fox made its controversial choices, who will be there, who won't be, and what we know about the strategy at play coming up.

PEREIRA: OK, meanwhile Jeb Bush is trying to clean up his mess after comments he made about funding women's health issues. Hillary Clinton quick to pounce on those comments, but now she is going to have to deal with the FBI investigating the security of her --