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CNN NEWSROOM

Trump Overhauls Campaign From Very Top; Clinton Set to Hit Trump on Tax Policy in Speech; FBI Sends Clinton E-Mail Probe Docs to Congress; Aired 10-10:30a ET

Aired August 17, 2016 - 10:00   ET

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


[10:00:01] JESSICA SCHNEIDER, CNN CORRESPONDENT: Trump made this decision on his own, and Donald Trump now making clear that he is in control of his campaign. He's the one in control completely of his campaign especially with this new staff shake-up.

Now the way all of this shake-up was set in motion was yesterday. In fact, Jared Kushner, Donald Trump's son-in-law, Ivanka's husband, actually flew back to New York after a family vacation, cutting it short, coming right here to Trump Tower. He was part of an emergency meeting at 2:00. And we understand that Jared Kushner was actually the messenger to Paul Manafort, letting Manafort know that things were going to be changing and that his role actually might be diminished somewhat by the appointment of Conway and also Steve Bannon.

So Donald Trump actually began that message last night, talking about how he is going to be his own man and really go back to the way he was in the primaries and dealing with some of these distractions. But Donald Trump said he wants to make it clear that he is now in charge and in control of his campaign. Take a listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: I am who I am. It's me. I don't want to change. Everyone talks about, oh, well, you've got to pivot. You've got to -- I don't want to pivot. I mean, you have to be you. If you start pivoting, you're not being honest with people. And -- because I've heard this over the years and, you know, with politics. With general politics. Also having to do with me. No, I am who I am. I've gotten here in a landslide. And we'll see what happens.

(END VIDEO CLIP)

SCHNEIDER: And Donald Trump, feeling that this is the way things were done in the primary, listening to his instincts and going back to that way of doing things.

Also, all of this, you know, coming on the heels of that law and order speech in West Bend, Wisconsin, last night, and this shake-up could possibly serve as another distraction for the Trump campaign. But the Trump team not touting it that way. They say that this is not a shake-up. They're actually touting this as an expansion of the team, releasing a statement, Donald Trump saying that he's brought in extremely high quality people who love winning, who know how to win. Paul Manafort also saying in that statement that this is an expansion of the team adding highly qualified people.

Now in addition to the shake-up, Donald Trump will also be getting his first national security briefing. It will happen today. It's the first time he will be getting classified information. We've already seen a flurry of activity here at Trump Tower. In fact, just a few minutes ago, we saw Alabama Senator Jeff Sessions coming in. And he talked to -- talked to us very briefly saying that this shake-up was a very good thing -- Carol.

CAROL COSTELLO, CNN ANCHOR: All right, Jessica Schneider, reporting live from Trump Tower this morning, thank you.

Bloomberg once described Trump's new chief executive as the most dangerous political operative in America. Steve Bannon runs Breitbart News, a conservative Web site that often features partisan click bait like this for example. Here's headline, "Bizarre Behavior, Seizure Allegations, Raise Doubts About Clinton's Health." An intriguing headline, but not true.

Breitbart was in the news earlier this year following an exodus of staff, angered after the site and its leader did not stand up for reporter Michelle Fields after she was allegedly grabbed by then campaign manager Corey Lewandowski. Editor-at-large Ben Shapiro left Breitbart and explained his departure this way, quote, "Steve Bannon is a bully. He has shaped the company into Trump's personal Pravda. To that extent he abandoned and undercut his own reporter in order to protect Trump's bully campaign manager who allegedly assaulted her."

Lewandowski, as you know, was later clear of assaulting Fields but the Trump campaign eventually fired him. Mr. Lewandowski is a contributor now for CNN.

I'm joined now by host of CNN's "RELIABLE SOURCES" Brian Stelter.

Perhaps the most surprising thing about Steve Bannon is he has no experience running any sort of political campaign, yet he has this powerful position within the Trump campaign.

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: That's right. What he has had over the years are media megaphones. He's hosted a talk radio show for Breitbart. He's interviewed Trump repeatedly for Breitbart's Web site, so he has that kind of expertise. You know, Ben Shapiro said bully, others would say street fighter, master of the political dark art. But clearly what we're seeing here is a shift by the Donald Trump campaign, by Trump himself, wanting people around him who support his no holds barred, anything goes style. That's what this is signaling I think that Bannon, Roger Stone and Roger Ailes were advising him.

(CROSSTALK)

COSTELLO: So when you say no holds barred, anything goes, what do you mean by that exactly?

STELTER: Well, you were describing examples of Breitbart's far right position on the Internet. This is a site I would say in many ways to the right of FOX News. In some ways is supportive of the Tea Party movement. I would also say it oftentimes supports fringe political views. Far-right political views. Conspiracy theories about Clinton and Obama and things like that.

What we're seeing here is kind of the conservative media echo chamber at work. Ideas that start on fringe Web sites make their way to Breitbarts of the world, the "Drudge Report," the "Sean Hannity" talk shows of the world, and then eventually to Donald Trump.

Trump then echoes some of these views and the Web site like Breitbart celebrate that and applaud it, and say they're glad that Trump is echoing them. So I suspect we're going to see more of that for the next three months.

[10:05:07] COSTELLO: So word is that Roger Ailes will also be advising Donald Trump about his debate performance. Tell me about that.

STELTER: Yes, Roger Ailes, the ousted CEO of FOX News. Of course, he left last month amid a cloud of sexual harassment allegations against him, and has been friends with Trump for decades. And so they communicate regularly. They were together over the weekend at Trump's golf course in New Jersey according to our colleague Dylan Byers. So there's this long relationship and it makes a lot of sense they'd be talking on the phone helping each other through this pivotal moment in their careers.

And seemingly Ailes can help Trump with debate strategy. Ailes is a master of television and he knows how these things are staged. So he'll be a great resource to Trump even though there is this controversy involving the harassment allegations which Ailes has denied.

COSTELLO: All right. Brian Stelter, thanks so much. I appreciate it as always.

STELTER: Thanks.

COSTELLO: So let's talk about this. I want to bring in Donald Trump campaign spokeswoman Katrina Pierson along with CNN political commentator and Hillary Clinton supporter Maria Cardona and the political editor for the Root.com, Jason Johnson.

Welcome to all of you. Good morning.

So, Katrina, Mr. Trump made this decision to shake up his campaign on his own without his children's advice. Does that mean they're out?

KATRINA PIERSON, NATIONAL SPOKESPERSON, TRUMP CAMPAIGN: No, not at all. In fact, earlier reporting on CNN is that it was his children who made the decision. Look, Mr. Trump has discussed --

(CROSSTALK)

COSTELLO: Initially we thought that.

PIERSON: Yes.

COSTELLO: But we got -- I just want to clear. We got new information that this was Mr. Trump's decision, not his children's.

PIERSON: New -- in every decision is Mr. Trump's decision and that's what seems to be lost in translation here. These individuals were not just brand new people that have been brought into the campaign and Kellyanne Conway has been around for a very long time and has a relationship with Mr. Trump. She was a fantastic addition to the team. There is no shake-up. No one is out. Everyone retains their position.

He's just adding to the campaign which is something that we've been doing all along the way. We needed someone to fill the campaign manager position and Mr. Trump chose Miss Conway.

COSTELLO: OK, so, Maria, you heard our earlier reporting on Steve Bannon in particular, so the attacks on Mrs. Clinton are sure to escalate. How might the Clinton campaign react?

MARIA CARDONA, CNN POLITICAL COMMENTATOR: Well, I think they need to be ready for what is going to be, I believe, one of the nastiest, most rabid, scorched earth campaigns that we have seen in our lifetime that is going to leave nothing but a wake of negativism, rancor and divisiveness in the country. And the Clinton campaign needs to be ready for that. And I think clearly they have been because they've seen from the beginning that the only thing that Donald Trump has to serve up are those kinds of negative divisive rhetoric.

And we have seen how that has been very negative for him in the polls. Clearly, it worked for him during the primary. But what I don't think he understands and what he's doubling down on with these changes, especially with Steve Bannon, is that it worked for him to get 14 million votes during the Republican primary season. It's going to do nothing to add to that base of support and in fact, what he's been doing is he's been losing support among key demographics that he desperately needs in order to win.

COSTELLO: OK. So let's talk about this change in demographics.

CARDONA: And these changes do nothing to help him.

COSTELLO: I want to pose this question to Jason Johnson. So Mr. Trump reached out to African-American voters last night, right? He's having problems with women. Do any of the additions in your mind to his campaign help with those key demographic groups?

JASON JOHNSON, POLITICS EDITOR, THEROOT.COM: Well, no, and this is the problem, it's classic Trump. It's a good move on the surface but right as you kind of open up the trunk, you're like, oh, my gosh, this is -- this is going to be a mess. You know, Bannon is a good selection. Kelly -- these are smart people, these are capable people. They're going to help in the media.

The problem is, the Breitbart site itself. This is a site that's been under hate watch. This is a site that's been known to have racism, provocative things. One of their writers was kicked off Twitter for attacking Lesley Jones for being the black "Ghostbuster." And once those things come out, this move that may be smart on the surface is going to end up harming him again with Latinos and African-Americans, and young people, so Trump has taken five steps forward and seven steps back.

COSTELLO: And Katrina, Mr. Trump has to do better among Republicans. And I just want to run this by you. The Resurgent, which is a conservative Web site, the writer, Jason Taylor, is aghast at the changes in the Trump camp. He writes this, this morning, quote, "Go flat out crazy, have those big rallies, spew B.S., toss out the teleprompter, good times. Once again the GOP doubles down on the stupid and now the crown car has run off the tracks. The implosion of the conservative party continues in an unstoppable chain reaction."

So Trump being Trump is not even winning over a good number of Republicans, so how can this be a good move?

PIERSON: Well, because the media and many on the right who have always been vocal against Mr. Trump have been writing this campaign's obituary for over 400 days and it hasn't worked yet.

[10:10:10] Now the thing is when we are talking about campaign additions, and I know CNN is focusing on Bannon for whatever reason, he's not in charge of communications, he's just the CEO. He's run several successful companies in the past. He's running it as a business, which people also complain about. But we never --

(CROSSTALK)

COSTELLO: But he has a prominent role in the Trump campaign.

PIERSON: -- even talked about Hillary Clinton.

COSTELLO: He has a prominent role now in the campaign.

PIERSON: Of course he does.

COSTELLO: So it's not like he's just like --

PIERSON: But that brings me to my next point, Carol. But that brings me to my next point. We have not spent nearly as much time talking about Hillary Clinton's campaign infrastructure, particularly Huma Abedin and her dual role at the State Department and the Clinton Foundation.

(CROSSTALK)

COSTELLO: She didn't go to another --

PIERSON: And not only that -- it doesn't matter.

COSTELLO: OK. I know you want to deflect and I appreciate that because that's your job.

PIERSON: John Podesta and his brother, and their direct ties to the Russian government? We spend so much time talking about Russia. There is no question to Mr. Trump --

COSTELLO: Wait a minute, whose direct ties with the Russian government?

PIERSON: -- with Hillary Clinton. Yes, let's talk about John Podesta. Let's talk about his brother Tony. Let's talk about the banks that they're involved with. Let's talk about the boards that they sit on. We're not talking about that here on CNN because we just want to focus on Mr. Trump.

COSTELLO: That's because Donald Trump just shook up his campaign for the second time in just two-month period.

CARDONA: Yes.

PIERSON: No, he didn't. He added -- Donald Trump asked people to his campaign.

COSTELLO: Oh, come on, Katrina.

PIERSON: No one's out. When you shake up your campaign that usually means someone is out, Carol. This was announced as an expansion. I can point to several messages. We have sent out on the campaign Web site under press releases. We've had multiple expansions of this campaign. But for some reason, CNN is probably the only one reporting that there's some shake-up that's happening.

COSTELLO: Well, I dare to --

PIERSON: No one was out, we just added.

COSTELLO: I dare to suggest this, I dare to suggest this, that no one was ousted simply because Mr. Trump didn't want this to appear to be a shake-up.

JOHNSON: Right.

CARDONA: Carol, if I --

PIERSON: Not at all, not at all.

CARDONA: If I can jump in here, anybody who knows anything about presidential politics and how campaigns are run knows that this is a shake-up. And that sure, they're not calling it a shake-up. They're calling it an expansion. Call it whatever you want. It is absolutely a shake-up because Donald Trump is terrified of the polls. He knows he is losing.

But here's the problem. He's doubling down on a strategy that focuses on subtraction as opposed to addition. Forget African-Americans, forget Latinos, let's talk about college-educated white women.

JOHNSON: Right. Right.

CARDONA: Which Hillary Clinton is now winning by 23 points and Mitt Romney won them by 14 points and lost the election. There is no path right now. There's no credible path to 270. And what he has done today makes that path even more narrow.

COSTELLO: Well, I have to bring up Roger Ailes at this point.

JOHNSON: And Carol, I'll say this. You know if you --

COSTELLO: I have to bring up --

JOHNSON: If you had an Olympic relay team and you said suddenly we're bringing in people at the last minute, you would think there was something wrong with Michael Phelps. And that's pretty much what's happening here. When you're adding this many new people this late in the game, it's a bad sign. We said the same thing about Hillary Clinton when she started adding people after losing to Bernie Sanders. Those are just the facts of how a campaign operates.

CARDONA: Yes.

COSTELLO: So going back to --

PIERSON: People have been complaining that the infrastructure was small. We've had holes in there. Corey Lewandowski was gone. We simply filled that position. We brought on a CEO, something we didn't have before. This is not something that people are being replaced. This is an expansion of the team. We're getting ready to run --

(CROSSTALK)

COSTELLO: Even FOX News is calling this a shake-up, though. Even FOX News is calling this a shake-up.

PIERSON: But that's what I'm saying. It's not a shake-up. This is simply an expansion. We can ignore what the campaign is actually saying and make all the inferences that we want. That seems to be what is called news today. But the facts are, we simply added to the campaign team. There's nothing new there.

COSTELLO: OK, let's talk about Roger Ailes. He's going to advise Donald Trump on the debates. As you know, he left FOX News under this cloud of controversy. 20 women came forward and accused him of sexually harassing them. Donald Trump is having a major problem with women voters. How can Roger Ailes' advice possibly help him?

PIERSON: Well, first, that reporting is also false. Roger Ailes does not have any role, formal or informal, with the campaign or with the debate process. As mentioned before, they have been friends for a very long time but he has no role in this.

COSTELLO: But he is offering Donald Trump advice on his debate performance.

PIERSON: I don't know what they're talking about in private conversations but he's definitely not playing a role, informal or formal, in the campaign. There's a lot of people that give Donald Trump advice but that doesn't mean they're part of the campaign.

COSTELLO: Jason, does any of this help Donald Trump? Because, you know, if you're losing like 70 percent of women, you're not going to win.

JOHNSON: Right, and this is what we're talking about. This is like saying Obama started ISIS last week. He just needs to face facts. Roger Ailes is going to help. He should. He ran a multibillion dollar news station that millions and billions of Americans believe in. There's no shame in saying that he's going to help Donald Trump. It's probably not going to help you with women but Donald Trump wasn't doing well with women to begin with.

CARDONA: Certainly not.

[10:15:02] JOHNSON: So that's the kind of issue that we're talking about here. The Trump campaign's greatest weakness from my perspective have always been, hey, just own up to stuff, work with who you're working with, and go forward, because when you backtrack like this, and if you barricade, and you dance, and you sing and dance, it makes you seem less authentic. And that's the one thing Donald Trump has always been able to sell.

(CROSSTALK)

COSTELLO: Well, I will say that, Katrina --

PIERSON: But no one's backtracking. Obviously they're friends and they have discussions but he's not a part of the campaign and it's being reported that way, so I'm simply correcting the record.

(CROSSTALK)

COSTELLO: No. No. Let Katrina have her say. Please let Katrina have her say. Go ahead, Katrina, last word.

PIERSON: I was just simply correcting the record. This is being reported that somehow Roger Ailes is a part of the official campaign team and he's not. If they talk, they talk. They have been friends for decades. But he is not formally or informally involved with the campaign.

COSTELLO: All right. I have to leave it there. Katrina Pierson, Maria Cardona, Jason Johnson, thanks to all of you.

CARDONA: Thanks, Carol.

JOHNSON: Thanks, Carol.

COSTELLO: You're welcome.

PIERSON: Thank you.

COSTELLO: Still to come in the NEWSROOM, team Clinton takes aim at Donald Trump, hitting her Republican rival on his tax policy and for spreading debunked rumors about her health.

(COMMERCIAL BREAK)

[10:20:11] COSTELLO: The state of Ohio has not backed a Republican for president in the last two elections and Hillary Clinton is hoping to extend the winning streak to three as she heads to Ohio today to deliver a speech on the economy. Clinton pushing ahead on policy as congressional Republicans get their first look at the FBI report on its investigation into her private e-mail server.

CNN is covering all developments within the Clinton campaign. Joining me now, CNN Money's Christina Alesci for a preview of Clinton's economic speech and CNN investigations correspondent Chris Frates. He'll have more on the ongoing e-mail controversy.

Christina, first to you and Hillary's speech.

CRISTINA ALESCI, CNN MONEY CORRESPONDENT: This is going to be a very interesting speech because she's going to paint Trump as someone who touts supporting the middle class, says that the middle class needs to get ahead. But when you actually look at the details of his plan, it's questionable that it will actually will help the little guy as much as he says it does, right? The three main points that she's been hitting so far is this idea that his child care plan really just helps people with expensive nannies and does very little for the poor and the middle class.

She says that his estate tax repeal is a gift to himself and his friends. And lastly that his business -- his plan to reduce business taxes will directly impact and boost his own bottom line. So this is what she's saying. And when you look at these facts that Clinton is putting out there, actually, these allegations that Clinton is putting out there.

COSTELLO: I was just going to say.

ALESCI: We fact-checked them and they're mostly true, by the way, when she says these things. And if you look at the plan side by side, you look at Clinton's plan and I think we have the specifics on her plan, she is going to tax the rich, a minimum 30 percent rate on anyone making $1 million or more. A 4 percent surcharge on income of $5 million or more. She's going to use that money, she says, to fund programs like 12 weeks of guaranteed paid family leave. Universal pre-K. So if you're a middle income American and you're looking at this plan, it should resonate with you. On the other hand --

COSTELLO: So how is she going to work with the Republican Congress to raise taxes so much on the rich?

ALESCI: You know what, that is an excellent question. And you're probably right. This is a dream that is going to be very difficult to execute, Carol. I think that you're on to something here. But what I'm saying is her ideals really do appeal more to the middle class, whereas Trump is talking about, you know, reducing taxes for everyone, but invariably his tax breaks will flow to the higher income earners. And if you look at that 33 percent rate, right, what no one's talking about is that most wealthy people actually make their money through investment income and that 33 percent rate under his plan doesn't apply to investment income.

The investment income under his plan would be taxed at a cap of 20 percent, OK, so nobody's talking about that. But this is going -- this is the plan that really does benefit -- and by the way, there's nothing wrong with that, right, but you can't go out there, say, you help the little guy when your plan doesn't really show that.

COSTELLO: All right. Christina Alesci, many thanks to you.

All right, Chris Frates is in Washington. Chris, good morning. Tell us about these notes the Congress is about to receive from the FBI.

CHRIS FRATES, CNN INVESTIGATIONS UNIT CORRESPONDENT: Yes, good morning, Carol. You know, this Hillary Clinton e-mail problems are continuing to dog her campaign because yesterday we saw the FBI send Congress a classified report explaining why it recommended against charging Clinton in connection with her use of a private e-mail server as secretary of state.

Now report contains notes from interviews with Clinton and other material related to that investigation. The decision to release information in a case where charges are not brought, that's extremely rare. And in a statement, the FBI said it provided the report to Congress with the expectation that it won't be made public. But the Clinton campaign doesn't seem to think that's how it's going to go. They're accusing Republicans of having other plans.

In a statement, the campaign said this. They said, we believe that if these materials are going to be shared outside the Justice Department, they should be released widely so that the public can see for themselves rather than allow Republicans to mischaracterize them through selective partisan leaks.

Now top Republican Senator Chuck Grassley seemed to agree with Clinton on this, saying that much of the material in the report is unclassified and should be made public. And in a letter to lawmakers, the FBI reiterated what Director James Comey said that Clinton's handling of certain highly classified information was extremely careless, but did not warrant prosecution.

Now also hot today is Hillary Clinton hitting back against Donald Trump and some conservative media chatter, suggesting she's not healthy enough to become commander-in-chief. This week Trump said Clinton lacks the mental and physical stamina to fight ISIS and conservative media staples like Sean Hannity and the "Drudge Report" have repeated questioned Clinton's health. Well, last night Clinton fired back, putting out a statement from her doctor saying she's in excellent health, and accusing Trump of pedaling, quote "deranged conspiracy theories" and parodying lies.

Now Clinton's camp tried to change the subject from her health to Trump's unwillingness to release his tax returns. So Hillary Clinton taking on Donald Trump on a couple of different fronts here, and still fighting all those e-mail problems that drip, drip, drip just seems to continue there, Carol.

COSTELLO: All right. Chris Frates, reporting live for us from Washington. Thank you. Coming up in the NEWSROOM, 40 days until Donald Trump and Hillary

Clinton face off on the debate stage. So what is it like to prep both candidates? We'll talk about how Roger Ailes might help out Donald Trump next.

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