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CNN NEWSROOM

Stocks Look to End Week-long Slide; Trump Vermont Rally; Trump Attacks Clintons; Saudi Town at Center of Sectarian Tension. Aired 9:30-10a ET

Aired January 8, 2016 - 09:30   ET

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


[09:30:00] CAROL COSTELLO, CNN ANCHOR: Oh, my goodness, it's Mike Piazza (ph) and the Ken Griffey, Jr. That's cool.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Hall of Famers.

UNIDENTIFIED MALE: Did you get that?

COSTELLO: OK. So let's start with Alison Kosik. OK, we're on the plus side, that's good.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Yes, we are the plus side of - you know what, we're seeing something we haven't seen in days, Carol, green arrows, and that's being helped by what you said, China ending in the green as well. It also didn't hurt that the Chinese government raised the value of the yuan overnight. It also didn't hurt that we got a decent - very, actually, a very good jobs report for December.

But, you know what, yesterday was a really ugly day. The Dow ended in a correction. You look at the past four days, the Dow has lost more than 1,000 points. You look at the value that was lost, $2.3 trillion wiped out of the global markets.

Just to show you how temperamental this market is, yesterday we had traders talking about capitulation. Today we're hearing them say words like oversold, meaning investors are rushing in right now to buy up those beaten down shares.

But don't be fooled because we're not out of the woods yet. Traders are telling me because the trust is really going away from their trust in the Chinese government on how they're running their markets, this is a really tough market to trade. So they see - they see a lot of volatility ahead. I'm making a prediction, Carol. I say 2016 will be the year of volatility.

Carol.

COSTELLO: Oh, OK.

So, Christine Romans, do you agree?

ROMANS: Oh, I agree the markets have been acting really, really volatile. This is the craziest first week of trading a year I've ever seen. It is the weakest first week of trading in history. But the jobs report, I think, is the news here this morning. And this

is what just broke about an hour ago. Net new jobs, 292,000 in December. A strong end to the year. The U.S. economy performing nicely. Unemployment, 5 percent. That's still at that eight year low that we've seen the past few months. And wage growth sticking there at 2.5 percent, annual wage growth. That is moving in the right direction.

So last year now, Carol, was the second best year for job growth in America since 1999. Look at those months.

COSTELLO: Wow!

ROMANS: It was a strong performance. And you're starting to see some of the stubbornly disappointing indicators get better. For example, black unemployment fell sharply last month from 9.4 percent, I think, to 8.3 percent, moving in the right direction finally. And job gains across the board. These aren't just all low wage jobs we're seeing. We're seeing these - the first category there, business and information services. Those tend to be jobs with benefits. Those are jobs that are, you know, that are full time jobs. Those are jobs with healthcare. Those are jobs with a retirement plan. Construction jobs. That's likely the housing market. Construction doing well. Healthcare has been doing well across the board for several years now. So at the end of the year - start the week with all that concern about China and its economy, whether that could be a problem for the U.S. economy. At its core at the end of the year, strong job market, Carol.

COSTELLO: OK, that's good to hear. And, again, we're in the plus territory on the - at the Dow. It's up 110 points. Of course we'll keep an eye on it for you. Christine Romans and Alison Kosik, many thanks.

ROMANS: Thanks, Carol.

COSTELLO: Still to come in the NEWSROOM, a pledge of allegiance to Donald Trump. Why Vermont voters had to take a loyalty oath before they could get into the GOP frontrunner's rally.

(COMMERCIAL BREAK)

[09:36:46] COSTELLO: Donald Trump embracing a loyalty pledge? Well, sort of. This was the scene in Vermont last night where thousands lined up in frigid temperatures to hear the Republican frontrunner. But with just 1,400 seats available, the campaign tried to limit access to the event, asking attendees to declare their support for Trump as they walked in. Anybody who didn't pledge loyalty to Trump was kept out. A few hecklers did manage to get inside, though, and they were greeted like this.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Get them out. Get them out. Get them out. Get them out. No, there's a remnant. Yes, he's right there. OK. Yes, throw him out. Throw him out into the cold. You know - don't give them their coat. No coats. (END VIDEO CLIP)

COSTELLO: I don't know if that person ever got his coat or her coat back. Maybe Athena Jones knows.

ATHENA JONES, CNN CORRESPONDENT: I don't know. Good morning, Carol.

One thing that isn't clear - we should be clear, we don't know how many people were actually turned away. We know that clearly some people who were not Trump supporters did manage to get in. He was interrupted at least eight times during that speech. But it happened in the heart of Bernie Sanders' territory, in Vermont, in Burlington, Vermont, where Sanders was once mayor. A lot of the people who did protest were wearing Bernie Sanders' T-shirts, we're told.

But it is a bit unusual to see people try to, you know, keep certain people out who don't declare their support. Politics is supposed to be about persuasion. But clearly no campaign wants to see a crowd filled with their opponents. Here is what Donald Trump said in a statement in response to questions about this. He said, "we have more than 20,000 people that showed up for 1,400 spots. I'm taking care of my people, not people who don't want to vote for me or are undecided. They are loyal to me and I am loyal to them." So very interesting scene last night. Clearly the attempt to keep people who aren't supporters out didn't entirely work, Carol.

How did the police handle the overflow crowd at the Trump event?

JONES: It's not clear. Clearly there was a lot of concern at the beginning before the event of the sheer numbers of people who were ticketholders and weren't going to be able to get in. We are not - we have not heard any reports from our folks on the ground there last night about big problems. But - but clearly it - it's concerning to have thousands and thousands of people potentially kept out of such an event. But, importantly here, you have a bunch of people who got in and were clearly aiming to disrupt things, and they did, Carol.

COSTELLO: All right, Athena Jones reporting live from Washington, thank you.

On the Democratic side, Bill Clinton took his pitch to Iowa, where despite recent CNN polls showing his wife with a double digit lead over Bernie Sanders, 39 percent of caucus goers say they are still making up their minds. So could all of the recent attacks from Donald Trump influence their decisions? Here is how the former president responded when asked about that possibility?

(BEGIN VIDEO CLIP)

QUESTION: Donald Trump is again today making an issue of your past transgressions. Do you want to respond? And are you worried that your past could hurt your wife's campaign?

[09:40:03] BILL CLINTON, FORMER U.S. PRESIDENT: I don't have any response. If he - if he wins the Republican nomination, we'll have plenty of time to talk about it, if Hillary wins. I think it's a - I am not - have no interest in getting involved in their politics or doing anything except trying to help Hillary.

(CROSS TALK)

QUESTION: Well, he says - what's your reaction to Juanita Broaddrick's (INAUDIBLE) -

(CROSS TALK)

QUESTION: Mr. President, he says you are hypocritical. You're gonna let him keep punching you with no response?

QUESTION: What's your reaction to Juanita Broaddrick's (INAUDIBLE)?

CLINTON: He has said a lot of things. I have no response.

QUESTION: What's your - what's your reaction to Juanita -

(END VIDEO CLIP)

COSTELLO: For his part, Trump showing no signs of backing down. And in his jabs at the Clintons, releasing this ad on Instagram claiming he is the true defender of women's rights.

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: Women's rights are human rights and human rights are women's rights, once and for all. Let's keep fighting for opportunity and dignity.

(END VIDEO CLIP)

COSTELLO: So let's talk about this. Hilary Rosen is a Democratic strategist and Amanda Carpenter is a former communications director for Senator Ted Cruz. Both are CNN political commentators.

Welcome.

HILARY ROSEN, CNN POLITICAL COMMENTATOR: Hi. Hi, ladies.

COSTELLO: Hi.

Nice to have you both with me this morning.

Hilary, is this a devastating ad put out by Donald Trump? Will it matter?

ROSEN: Well, there's two audiences here. Obviously, Trump is doing this not for the general election. He's doing this to try and increase his bona fide. He's among sort of Clinton haters in the Republican Party. It probably helps him with a lot of those folks. But every time he does this, he alienates general election voters. And the thing that persuades me the most of that is that the Republican women, some in the House and some other Republican strategists like Katie Packer (ph), who worked for Mitt Romney recently, are saying, please, Trump, stop doing this. All you're going to do is push women to Hillary because that's what happened before when the Republicans took off after Bill's extracurricular activities. Hillary's favorables and empathy went way up. So Republican women are actually begging Donald Trump to stop this. That tells me they don't think it's a winner.

COSTELLO: Well, Amanda, Hilary has a point because there was an article in "USA Today" this week and the reporter spoke with Republican women lawmakers who want Trump to drop the Clinton talk. One saying, quote, "women voters are likely to recoil over Trump's contention in recent interviews that the former first lady was an enabler of her husband's liaisons." And this was said by Nancy Dwight, who was a former national Republican Congressional Committee executive director. She went on to say, "she was aghast" - Hillary Clinton was "as aghast by her husband's behavior as the rest of us." Trump says he would cherish women, right? That's his line. But could this line of attack backfire on him?

AMANDA CARPENTER, CNN POLITICAL CARPENTER: Well, listen, there's a lot of people who are uncomfortable with Donald Trump's style, how he delivers a message. But I do think this is a subject that is worth exploring because in 2016 we are much more comfortable talking about sexual assault, talking about recognizing what sexual harassment looks like than we were in the 1990s. And so while Donald Trump - you know, he - I don't think that he's, you know, the best towards women and all the issues have been shy about saying that, asking questions about what Hillary Clinton's role was in the Clinton administration is a worthy subject. And there's been Democratic women who have point out -

COSTELLO: But - but he's not exactly doing that, Amanda.

CARPENTER: Christian - Christian Poversh (ph) wrote an article in "USA Today" saying it's fair game. Ruth Marcus in "The Washington Post" wrote about it.

COSTELLO: He's not exactly doing that. He - he's a - he's attacking -

CARPENTER: Go ahead.

COSTELLO: Well, let - let me just run this by. He's not exactly doing that. Mr. Trump is attacking Bill Clinton, not Hillary Clinton.

CARPENTER: Sure.

COSTELLO: And then calling Hillary Clinton an enabler of her husband's behavior. That's what he's doing specifically. Is that a good tactic.

CARPENTER: Yes. Well, I think Hillary Clinton - the biggest problem she has in this election is carrying the baggage from the Clinton administration and the Obama administration. This is kind of a bank shot and I think Donald Trump had learned that this is a freebie because the Clintons aren't choosing to respond in any manner. So when the Clinton's aren't responding, essentially taking a bye in this attack, he's going to press the gas on it and I expect to see a lot more Instagram ads and shots from the podium at his next rally.

COSTELLO: And, Hilary, Amanda is right, the Clintons are just sort of brushing this aside. This is how Hillary Clinton responded to one female heckler in New Hampshire, who also happens to be a Republican lawmaker.

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: Right back there. This - this man right there in - that - that - here we go. Right there.

(CROSS TALK)

CLINTON: You are very rude. And I'm not going to ever call on you. Thank you.

(END VIDEO CLIP)

COSTELLO: So, Hilary, is that effective?

ROSEN: Well, I mean, we've seen rally after rally after rally where Donald Trump is, you know, throwing his hecklers out of the auditorium. Hillary Clinton actually called one heckler rude, which she was, and, you know, I don't think we can exactly fault her for it.

[09:45:03] I think what we are going to experience is that, in a general election matchup, Hillary Clinton versus Donald Trump, what's he - what's he going to talk about? You know, he's not going to suddenly become an expert on ISIS. He's not going to suddenly know how the federal budget works. We're going to see more and more and more of this. Hillary Clinton is going to stick to the issues that the American people really do care about, which is how we - how we help our families, how we protect our nation, how we, you know, pay for child care, how we continue the unemployment reduction that President Obama has magnificently handled.

Like, those are going to be the issues Hillary Clinton focuses on. I think we will very rarely see her get down in the mud with Donald Trump.

COSTELLO: All right, Hilary Rosen, Amanda Carpenter, thanks to both of you.

Still to come in the NEWSROOM, his execution fueled tensions between Iran and Saudi Arabia. Now, CNN gets an exclusive look at the hometown of that Shia cleric.

(COMMERCIAL BREAK)

COSTELLO: It is the execution that sparked the most recent tensions in the Middle East.

(BEGIN VIDEOTAPE)

COSTELLO (voice-over): Nimr al-Nimr, an outspoken cleric given the death penalty in Saudi Arabia after years of calling for the end of the Saudi regime.

CNN's Nic Robertson traveled to the cleric's home town, the heart of sectarian tension in Saudi Arabia. NIC ROBERTSON, CNN CORRESPONDENT (voice-over): As we approach what's become Saudi Arabia's most dangerous town, a digger dumped by the townspeople gouging out a sectarian divide, cutting themselves off from the rest of the country. It is the Shia town of Awamia, the hometown of executed Shia cleric Nimr al-Nimr.

[09:50:02] ROBERTSON (on camera): The police have told us it's not safe for us to drive our own vehicles here. We're in one of their armored personnel carriers. They say it's too dangerous for us to get outside the vehicle. Just around here, they say, they get shot at.

A couple of their officers have been killed right here.

ROBERTSON (voice-over): An online video, we can't be sure when it was shot, purports to be a police convoy, just like ours, under attack here.

In a nearby hospital, we visit a young victim of the violence. He is clinging to life, caught in the crossfire between police and the men they call terrorists.

ROBERTSON (on camera): He says his son's name is Mohammed. He's 8 years old. But his father doesn't want to be on camera. He's very concerned about it. And what we've been told by authorities here is that if he appears on camera, then when he goes back into Awamia, he could face problems.

ROBERTSON (voice-over): Victims of the rising violence are increasingly common here. This man beaten in Awamia. He is a Shia, shows me his injuries, shot in the ankle, his wrist broken and stabbed in the head. He tells me his kidnappers accused him of being a government spy, which he denies.

Our drive through Awamia, however, it proving uneventful. Shops are open. No one shoots at us, shocking to police. But not everyone is so surprised.

ROBERTSON (on camera): Al-Nimr's brother has contacted us here. He says it is safe for us to get out of the vehicle and go and meet with him. He's been calling for calm.

ROBERTSON (voice-over): We meet later in a nearby town. He defends his brother, whom the government accuses of inciting the violence.

UNIDENTIFIED MALE (via translator): There's a real problem in this country between the Shia and the government. It's a political problem about the rights of the Shias.

ROBERTSON: Since 2011, tensions in this tiny town of 25,000 people have grown. Confrontations between handfuls of youths and police have sometimes turned deadly. Protesters hit by live rounds. Police say they want to avoid civilian casualties and arrest the people they call terrorists.

BRIGADIER-GENERAL MANSOUR AL-TURKI, SAUDI INTERIOR MINISTER SPOKESMAN: If we want to engage these people directly, then we know there will be victims. That is not allowed, actually, in our job, so we have to work patiently.

ROBERTSON: In Awamia, time is on no one's side as tensions here and across the region rise.

(END VIDEOTAPE)

ROBERTSON (on camera): You know, we toured around some of the other Shia towns in that area and none of them were like this, they're just like average Saudi towns, something you see all across the country, perfectly peaceful. It was just this one Shia town. And you know, a couple of hours after we left, there were reports of heavy gunfire and heavy explosions.

Carol?

COSTELLO (on camera): Nic Robertson reporting live from Riyadh. Thank you. I'll be right back.

(COMMERCIAL BREAK)

[09:56:17] COSTELLO: Checking some top stories for you at 56 minutes past. A women is being held by police after reportedly attacking passengers onboard a Chicago-bound flight, forcing pilots to divert the plane and quickly land.

(BEGIN VIDEOCLIP)

COSTELLO (voice-over): This is video taken inside the plane. You can see officials physically carrying this woman down the aisle, her feet and hands together. Passengers can be heard applauding as this woman is hauled off the flight which had departed from New York and was carrying 73 people. It did go on to Chicago, where it landed safely.

Today officials in Oregon are expected to meet with militia protesters occupying a federal building. This as the states governor calls on demonstrators to leave immediately so they can be held accountable. Armed protesters have been occupying a national wildlife refuge since last weekend. It's all part of a fight that they say is aimed at defending ranchers' rights.

Germany says 18 asylum seekers have been identified in connection to a string of assaults there on New Year's Eve. This comes just a day after the country's foreign minister announced those involved could face deportation. More than 120 reports have now been filed relating to that string of attacks. They range from muggings to rape.

(END VIDEOCLIP)

COSTELLO (on camera): The next hour of CNN NEWSROOM after a break.

(COMMERCIAL BREAK)

(BEGIN VIDEOCLIP)

COSTELLO (voice-over): Happening now in the NEWSROOM, the president takes his gun control pitch to the people. BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: I respect the Second Amendment.

COSTELLO: Taking on critics.

UNIDENTIFIED FEMALE: I have the right to protect myself.

COSTELLO: And conspiracy theories.

OBAMA: Are you suggesting that the notion that we are creating a plot to take everbody's guns away?

COSTELLO: Also, CNN goes inside North Korea.