tv CNN Newsroom With Carol Costello CNN August 25, 2015 6:00am-8:01am PDT
to turn into the bad stuff because we'll be late turning over the show to carol and the "newsroom." we want to remind people about christopher norman and the men who saved people on that train. three americans, christopher norman, another man of french decent that's still in the hospital and another frenchman. that's the good stuff. time for the "newsroom." poppy harlow in for carol costello. carol is going to tweet me right now. he's angry. >> she's traveling. she's doing a story on the pope, guys. have a great tuesday, guys. >> you too. >> "newsroom" starts right now. good morning everyone. i'm poppy harlow in today for carol costello. just moments before the opening bell will ring on wall street and it looks like another wild ride for u.s. markets after
yesterday's dizzying loss. looks like your nest egg could see a big rebound this hour. dow futures soaring, up more than 500 points right now. it is a breathtaking reversal of fortune. after yesterday's panicked selling. in just the last few hours two major moves by the chinese government to try to lift its stock market off of its knees. china now cutting interest rates once again, pumping $23 billion into their economy. there is a lot to get to. our entire financial team is here to break it down. richard quest here with me in new york. we also speak with the chief economist for moody's and l. markets real and global selloff. i think today could not be any different, right? >> reporter: a very different day. you can even feel it on the floor. no anxiety here today. it's more -- less anxiety, more
excitement for what's to come for this big come back back on dow. ben willis is a trader here on the floor. what has changed from yesterday to today? >> the fools are out of the market. yesterday's selling was foolish. it's mostly what's called passive investment material. we need to sell x amount of shares and this is what we're going to do. it was about the fact that they needed to raise capital because they couldn't raise it in china or europe. obviously it was a mistake. >> reporter: but the underlying problems with china are still there. the economy there still is slowing. why would the market rally back so hard today? >> because again it was a function of a passive investing the style that had to do with china's stock market not with china's economy. we need to be very, very clear that the global markets are trading on china's economy, not
on its stock market. their stock market is a frontier market. you need to put very, very little weight on the idea of what their stock market is doing. >> reporter: what should come here in the coming days? are we going to see more volatility? >> we probably are going to see more volatility because china was down 7% this morning coming in. that will add to some volatility here. volatility means opportunity for a long-term investor. if you had your shopping list ready to buy stocks yesterday, you made a lot of money by being here in the opening to buy stocks that are put on sale for no reason other than somebody decided they couldn't have them in their portfolio. >> are the feds going to raise interest rates once again? >> they should.
the fact of the matter is zero interest rates have done nothing for the economy. when that happens i think you'll see a stimulation of the economy. >> but you expect more volatility ahead? >> i do. >> keep that seat belt fastened, poppy. >> i want to talk about with christine romans and richard quest. mark tor mark, to you first. he said yesterday's selling was foolish, it was china's stock market, not about china's economy. do you agree? >> i don't know. what's going on in china is a problem. the chinese economy is the second largest on the planet. it accounted for most of the growth over the last five years. if it's struggling, that means
our symptom is going to struggle. the biggest weight on our stock market is the fact it's come so far in such a brief period since five or six years. stocks nearly rose three times. it's not at all typical. it's not surprising that you'd see a step back. that you'd see a correction. yeah, the approximate cause for all of this may be china. but ultimately this is a bit of a breather. the stock market is self-correcting. >> christine, to you. >> a 10% refresh in a bull market every 18 months or so. this stock market went four years basically going straight up. what the catalyst was were these concerns about china, but narcotic wmarket was due for a correction. sto today you're going to get a
snapback. if you rally 500 points on the open, you are still a thousand points below the middle of last week. >> i would suggest if the rally takes place today and is followed by further days of rallies, this isn't a correction. because what's caused this particular fall has been another event where else. it's not based on the fundamentals of u.s. corporations at the moment. it can become that. so what we're seeing is pure, unadulterated volatility. >> u.s. corporations are reliant on china. you've seen a huge flow of money out of russia, out of brazil. is it true that isn't about the chinese economy, but just about the stock market? >> i take what he says with a certain distance. >> it's a trader view, which is a different view than the 30,000
foot view, i think. >> yes. the reason the market fell was because of worries about what's happening in the chinese economy and the inability of the chinese government to seemingly have coherent macro policies. >> now they step in and do more. just in the last two hours china comes in and cuts rates again and they pump $23 billion in. this is on top of all they have been doing over the past few weeks. does it make a difference? >> yeah. i think it helps. they're clearly on high alert. and they're using all the tools at their disposal to try and support their economy. i think this will help support things. but they do have problems. you know, big, deep structural problems. they've taken on a lot of debt. their banks are over laden with a lot of bad loans. they've got a lot of work to do. and it's going to be bumpy. they're not going to get this exactly right.
i agree with ben, the trader, that there's going to be a lot of volatility ahead. but the chinese are working hard at this. they have a lot of tools. i think they're pretty good managers. they make mistakes but they manage their economy pretty well. i think at the end of the day they'll land the plane roughly on the tarmac. we will suffer a correction but i don't think it's going to be more serious than that. >> richard quest not so confident about that soft landing. >> i venture to suggest that mark is more of a diplomat in terms of describing the machine of the chinese stock market. the way they've tried to mismanage the market mayhem is compounded. >> okay. richard, you're right. how they've handled their stock market, up and down, leaves a lot to be desired. but just take a step back and
look at how they've managed their economy over the last 25 or 30 years. it's not all that bad. they've really brought that economy from nothing to something really quite important in that period. you have to give them some credit. they got their stock market bust all wrong. but in the broad scheme of things their policy has been pretty good. >> how they manage their stock market will be candidate todfod for the next year. >> it already has been. >> i notice oil prices ticking higher after that. concerns about other commodities still. stay with me. many of the presidential candidates were as we said very quick to weigh in on the stock market driive. republicans seeizing on the
opportunity. democrat candidate bernie sanders criticizing wae ining w street's gambling. donald trump, of course, made the most of the situation. we heard from donald trump during this program yesterday morning with a tweet and many more came. >> when donald trump says a political opportunity he is going to jump on it. when the dow started to plummet yesterday morning, trump quickly took to twitter and talked about one of his favorite topics frankly. and that is china and the chinese economy. he said the u.s. is too department on china and the chinese markets and too intertwined with the asian markets. trump is not the only person to address the issue yesterday. wisconsin governor scott walker had an interesting response to everything that happened
yesterday. he said that president obama should cancel a chinese president xi jinping's visit next month. here is what he said. >> he's the president. he's coming over. he's getting a big dinner free at the white house. if you were president, would you throw him a big dinner? >> i would not be throwing him a dinner. i would get him a mcdonald's hamburger and say we've got to get down to work. >> i'm not sure how fitting a big mac would be for a state dinner but there you have it, poppy. >> richard quest is dying over here. >> the u.s. for years has been saying that the chinese currency needs to better reflect the fundamentals of the chinese economy. >> sure. >> the moment the chinese devalue the currency to try --
>> complained that it's artificially too strong. >> the moment they do it, donald trump comes out of the gate and complains they are managing the currency. this is exactly what people -- >> they managed the currency in the direction the u.s. wants only when it suits them. >> right. >> because they want to play a greater role in the global economy. i'm not defending them. i'm just saying you can't have it both ways. >> thank you, guys. stay with me. opening bell just 18 minutes away here on wall street. we will bring that to you live. futures reporting much higher than yesterday. still to come, politics. is biden going to make a third run for the white house? he just got a major green light.
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now to add joe biden to the ticket as his running mate was the smartest decision he had ever made in politics. that should give you some sense of the president's view of vice president biden's aptitude for the top job. >> the political world absolutely buzzing after white house press secretary josh earnest said that. and president obama has given the vice president his blessing to launch a 2016 campaign. that is if biden wants to enter the race. their lunch yesterday coming hours after a meeting between biden and two longtime obama advisors at his washington home. the question remains, will he run? thank you both for being here. jamal, let me begin with you. you say that biden should run
for the sake of the democratic party even if he won't win. why? >> absolutely. right now when you look at the political landscape, what are the stories out there? donald trump is a big story. there's some conversation about the surge of bernie sanders. there's conversations about hillary clinton are e-mails. biden is adding a little pizazz to the primary. having clinton have to fight through a tough primary with joe biden, either joe biden will win and he'll be the strongest nominee or hillary clinton will win and she'll be a stronger nominee. either way, democrats will win. we'll get excited and end up with a nominee who's ready to take on the republicans. >> chris, do you agree with that? or do you say biden should only run not only if he's running really to win, which one would assume, but also to have a platform that is different enough from hillary clinton's? >> i think when you're running
against someone who is as formidable as hillary clinton, you have to go into this race with a clear understanding of what your candidacy is about. i think the vice president is a fantastic candidate, great retail politician on the ground. i think some of the mistakes that sometimes candidates make when they decide to run for president is some candidates run to win and some candidates run to place. i think the vice president is going to run to win. but that means in terms of the race you run it's going tov to be a much more pointed race. you've got to be willing to criticize hillary clinton. that is something that is difficult to do. >> she was secretary of state in the administration that he was vice president in. jamal, if you're in the biden
camp, right, what is your platform that is so dramatically different from hillary clinton and bernie sanders? you can't be the far far left p populist. >> running in this primary is going to be as much as style as policy. the democrats really aren't that far apart when it comes to policy questions. what happened yesterday at the white house is significant because i think one of the things it does is it opens the field for african-american voters. hillary clinton has wide african-american support. i'm not sure it's deep african-american support. you'll see african-american voters willing to look at joe biden, because he's standing by the president. he's not willing to distance himself from the president. you could see him win a state like south carolina. >> chris, if you were in the biden camp, how are you advising the vice president if he does
make a run to deal with the hillary clinton e-mail scandal? do you really latch onto that that the e-mail questions were while she's secretary of state in the administration you're serving in? >> when you have basically such a small amount of time to run, you've really got to come out of the gate with a bang. my guess is that if he does this, you're going to start hearing increasing chatter by the end of the month. and he's got to be in that first debate. is there's not enough time to build that momentum let alone the infrastructure you need to run. when he decides to do that, he's got to be very clear about why he's running. and it can't be simply we're going to run as an extension of president obama, in a sense a third term. he's got to have a vision that's distinct from secretary clinton
and at the same time be willing to critique and challenge her positions about what she wants to do. that is a tough balancing act for candidates. governor o'malley who i think is a good person, just not a very strong candidate because he hasn't been willing to do that. there's a consequence. you basically cede the field to the dominant candidate. in this case it's hillary clinton. you've got to challenge that position. >> the tough thing is going to be staffing. the vice president has got to find the staff to come into his campaign and help run it and a diverse staff. hillary clinton has the most presidential campaign staff i've ever seen. the vice president has to find a way to compliment that or emulate that. because now the democratic electorate is so different than when he ran the last time. he's got to be able to run a good campaign with a good team if he's going to have a chance.
>> i totally agree with jamal. >> i've got to leave it there, guys. thank you. as for jeb bush who is hoping to represent republicans in the 2016 election, controversy surrounding his use of the term anchor babies only seems to be intensifying. >> what i was talking about is the specific case of fraud being committed where there's organized efforts. frankly it's more related to asian people come into our country, having children, taking advantage of a noble concept which is birthright citizenship. i support the 14th amendment. nothing about what i've said should be viewed as derogatory towards immigrants at all. >> that comment coming yesterday during a campaign stop in texas. republicans seizing on the
remarks, some calling on bush to apologize. you were there. so he went very close to the border. he didn't actually go to the border. some criticizing him for that. is it warranted? >> reporter: poppy, at this point jeb bush's staff saying it wasn't necessary to travel to the border this time. jeb bush is familiar with the issues along the border and he didn't necessarily need to take a trip this time. had he made that six-hour drive south, this is what he would have seen. i'm standing near a segment of the border wall. to get to mexico you have to drive through this gate, down a path and you'd be at the edge of the rio grande. this kind of infrastructure is not enough to stop that
seemingly endless flow of people and drugs making their way north. so he says that need to be fixed, more boots need to be on the ground here along the u.s.-mexico border before they have focus on potentially legalizing the undocumented people in the country. he also took a turn and started explaining himself with respect to the controversial use of the term anchor baby. he said he was referring to the chinese, not so much people who cross this border illegally. >> he also released a video slamming donald trump's immigration policy. any response from trump on that? >> reporter: yeah. not only that video but also those comments from yesterday. donald trump extremely busy yesterday, taking to twitter. i want to read you his tweets.
saying, in a clumsy move to get out of his anchor babies dilemma he blamed asians. just a few minutes later he tweeted yet another message, saying asians are offended that jeb says anchor baby applies to them as a way to be more political correct to hispanics. a mess. >> thank you, as always. still to come here, the opening bell on wall street. what will happen after yesterday's stunning losses in the market. we may see a beautiful open on wall street. we'll take you there live in just a minute. later. hey you guys shour behr® marquee interior color collection. covers in one coat, guaranteed. sfx: phone chime they're still at it. behr® marquee. behr's most advanced interior paint and primer.
surge. dow futures up more than 600 points right now. that is welcome news for you who saw your nest egg shrink yesterday. this is the time lapse of the losses before they added up for the lowest close in 18 months. it was quite a day on wall street. why this rebound today? we break it down for you with our entire team. al sisyon kosik is on the floor. christine romans. richard quest. already up 100 points, a lot prettier than yesterday's open. it takes a few moments for us to get the real numbers here. >> i have that time lapse release for you yesterday. you lost ten minutes, 1,000 points. and then came back almost to break even. and now you're going to almost recover probably all of that loss here in the early going if
these early indications are correct. the dow down 1500 points in just three days. so a big bounce this morning, turn-around tuesday, as they're calling it. very welcome news. but you're still down dramatically from the middle of last week. investors in the dow stocks are down 11% in year. >> let's pull up that chart to show you the big gains over the last seven years or so. if this market does rise and go up 500 or 600 points, the last time the dow went up 500 points was in november of 2008. november of 2008. that was a long time ago. that's volatility we felt back then. we're feeling similar volatility. very different economy right now. you note that u.s. markets, still the prettiest house on a very sort of ugly block. but how long can they stay pretty if china doesn't get it
right? >> china matters a lot more than it used to. it's about double the size as it was in the late 1990s. it's got a huge debt bubble. it's popping right now. it has a debt bubble very similar to what happened before the sub prime crisis in the u.s. when china launched a stimulus program to try and compensate for the fact that americans weren't spending. i think u.s. stocks will be hit to a certain extent by this. oil prices are coming down. that's actually a little bit of a fuel for consumer spending in the u.s. >> is it about the fundamental u.s. story these days? >> in the sense of what's happening, no, of course not. it's about the global economy and how one bit works with the other. it is a finally tuned series of cogs. when you throw a wrench in, this is what happens. and the wrench went in on the
far eastern part of it with china. and you saw the transmission effects around the world. but this gain we are seeing this morning is as meaningless as the fall that we saw yesterday. >> great point. >> this is why i say even taking christine's thousand points that we may be down that's not a skr correction. that is turbulence. corrections can only be looked at when you look back in time and say, ah,the market went down and stayed down. so what we're seeing at the moment, distressing, though it is to everybody's wealth, you're seeing turbulence. fasten your seat belt. seat belt in the up right and stowed position. >> alison kosik on the floor of the new york stock exchange, i bet you're hearing a big sigh this morning. >> reporter: not a sigh. but the hustle and bustle very
different than the tension that was happening yesterday at this time. i want to show you the u turn the dow is making, 375 points up this morning after one of the wildest days on wall street. i'm seeing a lot more smiles. a lot more buy orders today it seems. part of the reason is what richard says, there's really no reason. it's sort of a natural bounce back after a huge plunge for the dow. but the other reason is china. even after the shanghai composite plummeted last night, the chinese government did step in and cut interest rates and poured billions of dollar into the financial system. that gave u.s. investors confidence, at least at this moment, that the chinese government is getting a handle on what's going on there. if you look at what happened to the dow over the past several days, it's really taken a big hit. the dow has a long way to go
before it's back on solid footing. i say leave that seat belt on because there's still more volatility ahead. >> you've been saying get ready for years ahead of volatility. >> absolutely. >> when you look at the fundamentals of the u.s. economy, you look at three million jobs created over the past year. that is the strongest job growth since the technology boom of the late '90s. does the volatility do the same thing? >> the most important thing for companies is demand. demand for their products, demand for their business. they have been running as leanly as they possibly can for the past eight years. when the economy starts to get better they've got to hire up quickly. they don't have this cushion where they can have layoffs. >> demand depend on wages too. what's happening in china, lower
demand for oil makes it harder to create demand in an economy like the u.s. with 70% consumer spending. >> where you are going to notice the chinese effect in real terms, not just frothing the markets is when you start seeing the big u.s. corporations, the ges the caterpillars, the auto makers. when they start reporting lower numbers because that profitability of china -- >> interesting note. tim cook the ceo of apple e-mailing jim kramer on cnbc yesterday really making news but saying i'm still very bullish on china. >> i'm not buying it. well, you know, sure chinese buy a lot of gadgets, apple gadgets. but if you look at the overall picture, consumer spending in
china is still minimal compared to government spending. >> apple may be magnificent but it's the high-rises that were going up. it's the bullet trains. it's the massive infrastructure. that's where u.s. corporations are making their money, not by selling phones. >> so you're sitting at home watching and you're saying what? >> yeah. you're sitting at home saying yesterday this was down 1,000 points now it's up 400 points. these are not the days for individual investors to be making moves. you're not going to win. if you sell stocks today or even yesterday, you're selling at the end of a 2,000 point move. timing it is not a good idea. if you're close to retirement, you recollected not have all your money in the stock market.
if you're younger, you can afford to have all you've money in the stock market and let it ride. >> if any of us were any good at investing, do you think we'd be doing all of this. >> richard as an excellent point. >> what about my secret island in the caribbean? tharchl >> thank you all. appreciate it. we're going to keep a very close eye on this market. much more from wall street ahead.
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street for you this morning. let's take a look at the big board at the new york stock exchan exchange. end of the day the dow settling down 3.6, more than 500 points. best financial team in television here with me. what we didn't talk last block was the federal reserve. if people think, oh, the fed, that's wonky. no. it matters so much to everyone. >> it's huge. if you look at the bigger picture beyond china what the fed is going to do has been the major mover. and will be. they've essentially buoyed marketed for the last few years. the fed dumped $4 trillion into the market. that's done. rates may be going up, maybe september. although china could have put a spammer in that.
that's why you're seeing some of this unwinding. >> is that what we need, richard, to see the fully normize enorm i -- normalized economy. >> we have lived with an untested, untried set of policies. if you look back at the minutes of the fed, a large portion of those minutes is the fed working out how they're going to reverse everything without throwing the baby out with the bath water. that's their problem at the moment. we are not in a real world in the financial world. >> they had to do it because -- the thing is they were in this position where there was nothing to do. they had to make up new rules. now they have to figure how to make up new rules to get out from the rules they did. if you're thinking about buying a house and want to get a low interest rate, do it. rates are going to rise.
it's going to affect car loans and variable interest rate debt and mortgage rates. this is still a window for consumers to enjoy those very low mortgage rates. >> the central bankers came in as the fire brigade to put out the fire, hoping the policy makers and the politicians would build a new house and they didn't. we're left with the same rickety old house with the fire brigade almost out of the water. >> it's a whole lot stronger, the house. >> the fundamentals of the global economy really aren't stronger. why is that debt still out there? the governments that were supposed to do all this work are holding more debt than ever before. they're out of ammo. in some ways the global economy is just as vulnerable if not more so. >> biggest debt bubble in history. >> at what point does the conversation switch to wait a minute, the rest of the world is
slowing. and the u.s. is the cleanest dirty shirt in the laundry. >> we can't pull the global economy along with us. we used to be a much bigger percentage. >> we can't be isolated from it. >> richard is going to get a mortgage. i'm going to move on. thank you all very much. moments ago, this, the alleged gunman behind the terror attack in france. we go to paris now. >> reporter: as you point out, the suspect was transferred to the palace of justice. he's expected to go before a judge this afternoon where he would then be formally charged.
we'll learn about the charges and likely learn where this investigation is headed. belgian authorities say they searched two apartments, one of them belonging to the sister of the suspect, the other belonging to a friend of that sister. they donwon't say what they got other than they retrieved a number of objects. and people say don't for gget about the other american hero. we're talking about mark moogalian. he was shot in the neck by the suspect. he's in a hospital. overnight his condition has taken a turn for the worse. his family is asking that people not forget about him and keep him in their thoughts and prayers. and also chris norman, that's the british man who helped the americans subdue the gunman. he says the public too has a responsibility to confront terror when it happens.
listen to what he said to "new day." >> the police and the law enforcement agencies can do what they can, but we can't have absolutely everything done by them for us. i think as citizens we need to really move forward and we need to take some of the responsibility for it. now, whether it's simply by being more vigilant or by actually preparing yourself for action if ever you do find yourself in one of those situations, we do need to think about how to do it. i'm not an expert in the the area but i think we need to work out a way to harness the power of citizens. >> chris norman was one of those who received the legion of honor from france's president jed. >> we' >> we'll be watching for all of those, one of the americans to come back home. next, some very disturbing photos.
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isis, isis is now showing exactly how the terror group reduced a nearly 2,000-year-old temple to rubble releasing these photos less than an hour ago. in them in a moment you will see the men with barrels of explosives, how they strapped them to columns. the moment of the blast and then a mushroom cloud. finally, the final photo, the once historic ruins now a jigsaw puzzle of destruction. cnn senior international correspondent ben wedeman is live in rome with the very
latest. ben, the significance of palmyra and these structures cannot be overstated and now they've been completely destroyed. >> reporter: this is part of isis' shock and awe approach to propaganda when it comes to this sort of thing. their excuse is that this was a temple where idols were worships, and, therefore, according to their very narrow interpretation of islam, it should be destroyed, and it's important to keep in mind that these pictures are very much and these actions are very much focused on a western audience with the sort of suburbans sensibilities that are shocked by this sort of thing because, of course, we show on cnn and other media pictures ever destroyed buildings, but what we don't show are the pictures of mangles bodies of syrians, 250,000 of whom have been killed in the last four years, and as we pondered this news from palmyra, for instance, just after those pictures came out,
unicef came out with a statement that as many as 5 million people in syria are suffering from prolonged and severe water shortages. there's some neighborhoods in aleppo that have gone for more than 17 days without a drop of water coming out of their taps, so in the west, yes, we're shocked by these sort of pictures, but for ordinary syrians, 5 million of whom have fled the country, another 7 million have been internally displaced, this is really just a side show to a much larger nightmare that they've been going through now for more than four years. poppy? >> absolutely is. ben wedeman, thank you very much for that. still to come in the "newsroom," a book club gets the boot. was the group being too rowdy or was it racism? the story you won't want to miss next.
one book club in california says what was supposed to be a fun getaway quickly became a humiliating experience. 11 women kicked off a wine train in napa valley after complaints they were being too loud. but the women say they were not booted for being rowdy. they say they were kicked off for being black. here is dan kerman. >> we made it, y'all. look at us. we're ready to get on the wine train. >> reporter: it started as a joyful event for 11 african-american book club members and quickly grew sour, even before they left the napa wine train station. >> she said to us, i'm going to need you to lower the noise level, it needs to come down a little bit because you're being
offensive to some of the other passengers. >> reporter: some 45 minutes into the trip they were told they had to leave and would be escorted off the train. when that happened a further indignity. >> we had to walk all the way through the additional five cars to be able to get off the train. so they took us and they paraded us through every single car with all the passengers watching us. it was humiliating, degrading, and that's the part i will never, ever, ever forget. >> reporter: book club members say there was only one reason this happened. >> racism. i'm just going to call it like i see it. i have been a black woman all of my life, and i know exactly what it feels like, and that's exactly what it feels like to me and that's exactly what it still feels like to me. >> reporter: a spokesman hired by the company issued a statement apologizing for their experience. >> the issue really here was one of both the respect of this party as well as them being respected. we want to reach out to them and let them know that they're always welcome on the wane trinn
and we're going to try to have a lessons leshd from this event. >> reporter: book club members say it misses the point. >> to me it doesn't say they're apologizing to the way we were treated. they're not apologizing for parading us down those five train cars and giving us to the police. they're not apologizing for making us stand in the dirt for 20 minutes in the hot sun with an 85-year-old senior and somebody else who is just recovering from surgery. they're not apologizing for any of that. they're not apologizing to how we felt we were treated on their train. they're not apologizing that we feel like we were never their customer and they never, ever in this whole incident made accommodations for us. it was about us having to make accommodations for other people. >> our thanks to dan kerman from our kron. i want to note, according to "the new york times," the company designed the racism allegation and said it had a policy to remove guests that were disruptive to ensure the enjoyment of all guests on that
train. they said the women were given full refunds and transportation back to napa. the next hour of "newsroom" begins right now. this is cnn breaking news. 10:00 eastern. i'm poppy harlow, and we are just 30 minutes into the trading session on wall street, but already investors are making gains, starting to erase some of the deep losses from one of the worst sell-offs in years we saw yesterday. so far today, u.s. markets have surged from the opening bell. they're now well into positive territory. you see the dow there up 300-plus points. it's a huge rebound from yesterday when the dow closed -- well, at one point it was 1,000 points lower. closed down more than 500 points, 3.6% on the day. why this big bounce today? we will break it all down for you. we have full coverage with our team, alison kosik, cristina alesci and rich quest, and in chicago diane swonk, chief
economist at mesirow financial. futures were up 600 points, we're up 278 now. we'll take it but last three sessions saw a lost of 1,500 points. >> we did see futures lose some steam because as those buyers came in when that opening bell rang, the sellers also came in, but look, we have a healthy turnaround here. the dow up as you say about 300 points. hey, we'll take it after one of the wildest days that we've seen here on wall street in quite a while. now, part of this is because it's just a natural bounce back. many say that the market was oversold. yesterday was just an overreaction. so it's a natural bounce back for the numbers to go into the green. the other part of it is china. despite the fact that the shanghai composite dropped more than 7.5% last night, you didn't see the follow through happen with u.s. markets this time around because the chinese
central bank stepped in cutting interest rates, pouring billions of dollars into the financial system, essentially giving some confidence here to u.s. investors that maybe china will be able to get control of its situation and its financial markets. we shall see if that's the case. also, keep in mind that despite the fact that the dow is up 300 points, it has lost some steam. the big question is, of course, will these gains even hold until the close. we have a long way to go, poppy. we'll keep an eye on it for you. >> one thing we know for sure the volatility is here and likely here to stay. cristina, were traders looking at this as a blip? >> no, volatility, as you said, is back in the market. that's for sure. no one knows where the market is going to land. it's obviously trying to find an appropriate range, right? that's what's going on here, but one thing is for sure, we are not in the same environment as we were just a couple weeks ago here in the u.s. and we've got to keep in mind, everybody is talking about china and the
interest rate cut there. china's cut its interest rate -- >> so many times. >> -- five times this year and it has not stopped the slide in the chinese stock market. so you have to take all of this with a grain of salt, but one thing is for sure, investors need a stronger stomach because we're going to see these wild swings. even from this morning we saw futures go really up high, 600 points and already it's erasing some of those gains. >> yeah. >> so this is more than just a story about china, about the fed, about oil. this is a story about market psychology. this is a story about how people react emotionally and to a certain extent it is a story about technology and how computerized trading -- >> that's part of why we saw the thousand point decline right at the open so quickly yesterday. >> exactly. >> that's part of that. richard, to you. you have the best sense of the global market. >> there's two things going on here. the first is the immediate, how
is this fire going to be put out, the smoldering embers of wreckage from what we've seen over the last few days. but the bigger issue which is not going to be solved by us before 11:00 is this question of imbalance of economic growth, and that's what this is really all about, and that's a long-term issue, which means we are going to see these sorts of -- this sort of dislocation, this sort of volatile, this sort of complete and utter imbalance. you can't have half the world growing one way with one model of growth and half the world having a different model of growth. >> and diane swonk, to you, for people at home watching trying to understand why that all matters, why china matters so much to this market even if we don't have as much exposure to the chinese market, the imbalance there and the fact that all of these economies are so sort of artificially propped up by central banks around the world and particularly in china when it comes to the government in china doing the host of the spending, the consumer spending there being so much less than it
is in the united states. >> exactly. the consumer is a really important issue in china, and the idea that everyone is exposed to china because our companies, even if they don't ship to china, they actually may build and sell in china, so i think that's important to remember. it's also important to remember that this whole event has, along with china, has revealed the problems in the global economy, the vulnerabilities out there in emerging markets, and these were the markets that were carrying economic growth. you know, as we saw -- richard pointed out, you can't have sort of one part of the world growing one way and another part of the world growing another. these have been the engines of economic growth for the world, and we really are shifting to a new paradigm where these economies cannot be the engines they once were, and although i think we'll survive it and what we know about the u.s. economy is that we are on firmer foundations than we were, there still is -- it's a lot of tu turbulence and it's still a big storm ahead. >> i understand you can't have these economies under such different management, if you will, and growing in such different ways, butted reality
in this interconnected world is we are more dependent on one another's economy, and, frankly, the chinese government doesn't handle it's economy or report its numbers the same way that the u.s. economy does. so what do you do in that reality? >> and that's the reality that's coming out is, you know, the trust in the chinese government hasn't been high on my part, but it's becoming less within china as well, and this is a major issue for the chinese government. they sort of had an impoli polp implicit social pact. i think it's very important to understand that we've now rattled the middle class that was a burgeoning middle class in china with what's going on in the stock market, their government said go ahead and buy. we have no way of understanding what the valuations are in china because of their meddling, and we do also get some sense that china hesitated on the bank of china -- central bank of china hesitated in terms of what they were going to do to stimulate because there was internal
wrangling over how to handle this. could the chinese government deliver growth on command? markets' economy are not commanded. >> they certainly are not. sage words to leave us with. diane, thank you very much. alison, thank you. richard, stay with me. i know you have something to say and you have to wait one moment -- >> gold, gold. >> what about gold? >> you'll have to wait and find out. >> you'll have to wait and find out. cristina, stay with me as well. i want to talk a little bit about the politics of all of this. a crowded field of presidential candidates were quick, very quick, to pounce on yesterday's stomach-churning freefall on the street. donald trump, the most vocal and opinionated of them all. i want to bring into the conversation m.j. lee. what did we hear from mr. trump? >> reporter: donald trump's campaign slogan is make america great again. the issue of china fits in perfectly with that. trump's underlying message as a
presidential candidate has been that the united states is losing to countries like china, countries like japan, and when the markets went for a free fall yesterday, this gave him another opportunity to emphasize that. take a listen to how he spoke about the issue in an interview with fox news yesterday and the massive debt that the u.s. has to china. >> we owe them $1.4 trillion, and those dollars become strong. you know, the word strong dollar sounds good but it's costing us a lot of money. there's some nice things about having a strong dollar but there are some really bad things, and number one bad thing is we're not exporting anything. we are going to be in big trouble. it's getting worse and worse, and ultimately the balloon is going to pop and it's going to get very ugly and you're starting to see the beginning of that. >> it's going to get very ugly is exactly the kind of message trump knows his supporters will get worked up about. >> yes. yes, it is, and everyone is talking about it and, frankly, he can fall back on a lot of business experience just like
carly fiorina, so we'll see how long the tale of that is in terms of this election cycle. m.j., stay with me. richard quest, to you. you hear donald trump saying if i were president, i would handle things. china wouldn't act like this. can you give us a reality check on whether the u.s. president, whoever it is, has any impact on how china manages its economy or stock market? >> no. only in the sense of a negotiation. remember, the u.s. is negotiating at the moment the transpacific trade partnership and china is not part of that. i think donald trump raises a good point and a valid point, that the way trade has been managed so far seems to be skewed in the part of the developing country of china, and that's natural because it's the developing side as opposed to the developed side, so you're clearly going to have them sending more this way than the other way. but where i think he needs to step up to the plate is what would he do about it? now, you don't want a full-scale protectionist war. >> it means he would have to lay out any kind of policy.
>> yes. he'd have to -- what are you going to do when he sits down with president li. what are you going to say to him. what policies are you going to put in place. and also remember you have the wto to bear in mind, the g-20, you have apec, you have asean. most of them i happen to think are a bunch of waste of time, but what is he going to do besides bellicosity of saying -- >> he says i've made all these business deals with china, et cetera, about you that's so different, it's so different. i want cristina to jump in here on that. >> i think anyone that says we can turn our backs on china, which some of the other, you know, potential presidential candidates have said, is just dead wrong. i mean, they should start reading cnnmoney.com because we had a story today about car manufacturers, global car manufacturers, saying we're going to get hit by this. the chinese consumer pulls back, it is going to be bad news, bad news not for just us but for the entire world.
>> donald trump has been a beneficiary of the existing policy of china. he has built his companies because china has had such pro-growth detrimental policies, and now he says it's been to their disadvantage. well, if you slow down china or put china in the box, trump plaza, trump this, trump that is not going to sell as many $50 million apartments to the chinese. >> $50 million apartment. i can't even think about that. thank you very much, richard, cristina. mmpl m.j., thank you for the reporting. we'll get in a quick break. go to cnnmoney.com for all the latest on this extraordinary market move we've been seeing, a positive day here at the open. next to pot ticpolitics, the president gives his blessing to joe biden if his vice president does want to run for the oval office, but will biden jump into this race, and if he does, what
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checking top stories for new hour. a huge fire burning in washington state. now the largest in that state's history. firefighters from across the west are fighting this blaze, but more than 400 acres have already been scorched. officials worry that shifting winds could put even more homes in jeopardy. a 10-year-old boy who was lost in utah's ashley national forest has been reunited with his family. malachi bradley wandered away from his family. he was missing for 28 hours but a dog picked up his scent and led search teams to the boy.
tropical storm erica has formed in the atlantic, the fifth named storm of the hurricane season. erica has winds of 45 miles an hour. so far the official track could see the storm more near puerto rico by thursday night. if you're looking for a new ride, boy, do we have one for you. harley davidson unveiled its new line of motorcycles for 2016. the company calls the bikes darker and more powerful. nine new bikes were unveiled. harley will start shipping the motorcycles to dealers by the end of the week. if bikes are your thing, i guess you want to check that out. to politics now and a political blessing that could vice president joe biden's bid for the white house an extra big boost. democratic sources telling cnn that president obama told his number two that he will not stand in his way or counsel against him for a 2016 bid. joining mow now e now to talk a, cnn political advise er david
gergen. david, thank you for being here. >> hello, poppy. good to see you again. >> democratic sources characterize the president's words as a blessing, not an endorsement but we heard from white house press secretary josh earnest touting biden's aptitude saying president obama feels selecting vice president biden as his vp was the, quote, smartest political decision that he has made. you have worked closely with a number of presidents. what do you read into that? >> i read a couple things into it. one, i think it's very clear now that joe biden wants to run for the presidency. he's just trying to figure out whether he can make it all work and make it seem plausible. that he went to president obama. they had not seen each other for a couple weeks because of vacation schedules, had a chance to talk over what his plans were, and the president gave him a green light, go ahead with it, joe, if you wish, and, you know, i will not oppose you, i will not discourage you.
i think that falls well short of an endorsement. my bet is the president will stay neutral during the primaries. it could be catastrophic for the party if he endorses biden over hillary or hillary over biden -- >> why, why? >> traditionally presidents will stand back at this point. well, because it divides the party in a serious way, and, you know, if -- he would have to betray one friendship or another friendship in addition, and that is not healthy for him. after all, just as he praised joe biden as being the best choice he's ever made politically, he's praised hillary clinton as being a great secretary and a fine prospective president. i don't think he's caught so much as i think he's given a green light in effect to his vice president. i think the real significance in the near term is that the president's blessing gives a green light to people who work for president obama who have worked for him in the past to go to joe biden and support him now, and that helps biden a lot.
and all of this is heating up the biden story, and, poppy, one of the things we will see is biden can now in the near future begin to take polling of his own. it has a more realistic picture of how competitive he is. as long as it looked like he was not going to run, people would be vague about what they would say about this. now that it looks like he might, the polling is apt to be more accurate and he can get a better picture. >> that quinnipiac poll was fascinating. biden beat trump in three swing states, florida, ohio, and pennsylvania and hillary clinton didn't beat trump in florida. he's 72 years old. he's made two previous bids for the presidency. there has been some specktatiul that he could come out and say i'm going to run but i'm only going to run for one term and that's very attractive for people who believe the first term of a presidency is often too concerned with getting re-elected. how would that play? >> well, conventional wisdom holds that it's not such a good idea to tie yourself up like
that. happened to teddy roosevelt and he always regretted it, but i happen to think that in this environment when you're a democrat, whether you're hillary or joe biden, you ought to consider that pledge because voters -- they're looking for change, and if they think they're going to have eight years of obama and then eight more years of another democrat, that's not change, but if it's a one term and what you're pledging to do is form a unity government to reach out and get republicans to go in, try to clean up the mess of washington and get the heck out of dodge, that could have some appeal, and it does play -- it plays well with the age thing because hillary clinton's late 60s. joe biden is 72. they're both in an age where it matters how much energy you have, how much vitality you bring to the job. >> so will he run? >> i think the odds are shifting in the favor of running, but
he's still got some issues at home. he has to make sure the family is emotionally ready for this. he has very big issues, can he raise the money. he's starting to put together what looks like the beginnings of an organization. i think if he can get the pieces in place and, very importantly, mrs. clinton has another bad month, then i think the chances go up significantly. a lot depends on what she does now, how she responds to this -- the chaos in the financial markets. she's put some economic proposals out there. can she now be more serious and fuller in answering how she handles the iranian debate. big, big issues. this campaign is entering a more serious phase. >> it certainly is, which is a good thing for voters where they can hear policy proposals. david gergen, thank you, my friend. just want to remind you you do not want to miss the second republican debate on cnn. it's september 16th at the ronald reagan library in california. cnn will also host the first of the six democratic debates october the 13th live from
nevada. still to come, a terror suspect rushed to a paris court today. he is expected to be charged there formally in the foiled train terror plot. the latest from france after this. if you have moderate to severe plaque psoriasis. isn't it time to let the real you shine through? introducing otezla, apremilast. otezla is not an injection, or a cream. it's a pill that treats plaque psoriasis differently. some people who took otezla saw 75% clearer skin after 4 months. and otezla's prescribing information has no requirement for routine lab monitoring. don't take otezla if you are allergic to any of its ingredients. otezla may increase the risk of depression. tell your doctor if you have a history of depression or suicidal thoughts, or if these feelings develop. some people taking otezla reported weight loss. your doctor should monitor your weight and may stop treatment.
the suspected gunman behind that foiled train attack in france was rushed to a courthouse earlier in a police-escorted motorcade. that's where he's expected to be charged 30 minutes from now. let's go to martin savidge live in paris with the details. martin, this rush is about this 96-hour rule, that french police only have that long to charge him, right? >> reporter: right. initially he was arrested, there were no charges placed against him. when you aren't charged they have 96 hours to hold a person. then they have to come forward
and either, well, charge him or let him go. it's anticipated he will go before a french judge. he will be charged with charges connected to terrorism. we'll know more as soon as we hear from the prosecutor which will be a short time from now. and then we also hope to learn more about the investigation. in other words, what have investigators found, any links to terrorist groups. we do know that belgium authorities overnight conducted searches on a number of apartments, two of them. one of them belonging to the sister of the suspect, the other belonging to a friend of that sister. so there were some objects retrieved but authorities won't say more than that. so really trying to understand what is the scope of this? was this truly a lone wolf or is it something more conspiratorial? that's the kind of information we're waiting to hear, poppy. >> what about the three american heroes? we've seen them honored in france. they've spoken on the phone with president obama. what do they come home? >> reporter: well, it's believed that anthony sadler, he's the california university student, he is believed to be on his way home right now as we speak.
the two other american service men, one in the air force and one in the national guard, are actually in germany. remember, it was stepencer ston the one injured in taking down the gunman, he's getting more proper medical treatment. and then i should mention mark moogalian, he's the other american hero. 51 years of age, dual nationality, french and american. he comes from north carolina. he confronted the gunman first. he was shot in the neck, and he is in a hospital in lille, two hours north of paris. his condition overnight worsened and many people are asking, look, don't forget about him. they say keep him in your thoughts and prayers, poppy. >> absolutely, we will. amazing, amazing people came forward on that train doing exactly what i think we all wish that we would do in a situation like that. marty, thank you. 10:30 a.m. eastern time. good morning, everyone.
i'm poppy harlow in this tuesday for my friend carol costello. thank you so much for being with me. we start on wall street where one of the most stomach-churning trading days in years turned into a stunning turnaround this morning. the dow surging after yesterday's panicked selling around the world, and just like yesterday china once again at the center of the drama. as i bring in jim awa, let's show you the big board on wall street. show you where stocks are trading right now. the dow up 278 points. so china made two big moves this morning, chinese government steps in to say we're going to pump $23 billion into our economy, we're going to cut interest rates for the fifth time in just a matter of months. is that what's driving this market higher or was it, as one trader said this morning, foolish selling yesterday? >> a combination of both. the futures were actually up before that announcement came. that announcement is necessary but not sufficient to change the situation in china. it could be interpreted actually negatively, that things are
worse than they think but the markets in the short term like it. also yesterday you did have foolish selling on the open, so what you're getting is a psychological bounce, i wouldn't put too much into this bounce. it could reverse itself very quickly. we could recouple with china. we're decoupling now because they were down and we're up, but i would say it's highly likely that -- not guaranteed, but highly likely that the low yesterday at the open will prevail and hold and that if you buy quality stocks sort offed a today at today's prices you should look fine, but in the short term the volatility is not over. we're highly unsettle approximated. >> you can never time a market. do not try to catch a falling knife, do not try to pick the bottom. what are you doing? >> on balance we're buyers. >> you're buyers in this market. >> yes. you want to think long term and i tell people have greed when others have fear and fear when others have greed. >> as warren buffett said. >> exactly.
yesterday was a chance and during periods like this. a stock like ge that opened yesterday at a 4% yield. jpmorgan that went down on the open. >> apple. >> apple is a fine company. those kinds of conditions if you buy them during periods of weakness in the current environment, you'll do fine. you may not make money in the next month, but you're likely to make money in the next year. >> stick with blue chips. don't try to play the emerging markets game. >> u.s. is the best game in town and we have the best corporations and the big ones are attractively priced. i would not get back into the momentum stocks that are leading the market a couple years ago. they're not as attractively priced as the big s&p quality companies. >> thank you for coming in. >> my pleasure. >> good luck in this market today and going forward. coming up next, jeb bush has been one of donald trump's favorite targets on campaign trail. you're looking at live pictures of him. he's holding a town hall with veterans in colorado. now the former governor fighting
after a trip near the u.s./mexico border yesterday, jeb bush is taking his message to the swing state of colorado. take a look at these live pictures out of colorado where bush is set to hold a town hall. he's holding it right now with veterans. he's expected to slam president obama's policies on veterans, but the trip comes as bush's war of words with donald trump on immigration escalates. >> mr. trump plans are not grounded in conservative principles. the simple fact is his proposal is unrealistic, it will cost
hundreds of billions of dollars. it will violate people's civil liberties. it will create friction with our third largest trading partner that's not necessary, and i think he's wrong about this. >> trump took issue with those comments from bush. listen. >> jeb bush is a nice person. he doesn't have the energy or the capacity to make our country great again. that i can tell you 100%, and do you need the wall. the wall is very important. >> joining me now to talk all about it, republican strategist sheri jacobus and javier pa lamolis. thank you both for being here. sheri, let me begin with you. is this jeb bush 2.0 and if so is this the right jeb bush to win the primary? >> well, i think he's fine. i don't think he has to somehow be more energetic just because donald trump says he has to, but, look, everybody is familiar with jeb bush. he has a solid record. i think he's doing the tortoise and the hare game --
>> you haven't seen a change in him. >> look, nobody was getting a lot of press and a lot of attention in recent weeks because of donald trump. donald trump's comments about jeb bush are ridiculous frankly. it's inappropriate to talk about another candidate that way and it doesn't really make a point. where i do think mr. trump has an issue -- everything else he's talking about, about mass deportation and that sort of thing is ridiculous, but he is pushing for border security, and whether it's a wall, partial wall, a fence or whatever, i think that jeb bush is right to address that. every candidate who addresses border security, that's a good thing, but what none of them are really doing, a little bit rubio a little bit huckabee i think, is separating out border security from the other issues, from deportation and amnesty and everything in between. for the past 20 years, washington has been punting on that. we could have had border security, wall, fence, whatever it is for the past 20 years, but they've mixed it up with these other issues -- >> that's interesting that you have to deal with --
>> once you secure the border, a lot of these other issues kind of go away. i'm, frankly, waiting for one of the candidates to be a little bit stronger on that point and that kind of takes care of the trump problem, too. >> but the 11 million undocumented workers doesn't go away if you secure the border. that's one issue and that's getting a lot of attention. javier, to you, how do you think jeb bush is resonating now with latino voters after those anchor baby comments and controversy? a new gallup survey shows he has an 11% favorability rating among hispanics, the highest in the field. >> first of all, poppy, i think that his trip to mcallen, texas, was well timed and well received. by the way, mcallen is my hometown. it's a community that's about 94% hispanic. they certainly understand the real challenges of dealing with a broken immigration system. i think that governor bush has approached this issue the way we want an american president to
approach it. it's well thought out. it's feasible. it's fiscally responsible. he's illustrating some compassionate conservatism that i think the american people and ultimately our congress may be able to get behind. compare that to donald trump's approach. you know, i couldn't agree more with cheri. this mass deportation of some 12 million people living in this country today only to turn around and bring them back, you know, doesn't make any sense. it would cost somewhere around $300 billion and the american taxpayer would be stuck with that bill, and at the same time industries like the construction industry, the agricultural industry, the hospitality industry would be decimated if that plan ever was allowed to happen. >> i want you both to respond to something. i read in "the new york times" this morning and it really struck me, let's pull it up, the change in mr. bush's tone is a calculated strategy with two different but crucial aims now that mr. trump is proving to be
a long-term obstacle, not a passing nuance. a long-term obstacle, not a passing nuisance, not nuance, excuse me. nuisance. so, cheri, to you first, what do you think? that's why i'm saying is this bush 2.0? >> well, he's taking on trump. he's saying if this is a serious candidate, and the polls say he is, he needs to be held to account like any other candidate. rather than letting this die out, this trump phenomena, whatever you want to call it, he's taking it on. that's a little feistier, that's a different plan, and it's probably the right plan that they all should do. >> so you think this is the jeb bush that voters want to see? >> i think so. and i think that a lot of it, too, is just becoming accustomed to the different candidates and the different personalities. if his authentic self is measured and more thoughtful, i don't think he should turn it on too much and try to out-trump trump. nobody should want to do that. when you look at how he's doing
with hispanic voters, responsible republican primary voters will start to take that into candidate as well. >> and your thoughts on that, whether he's a long-term obstacle? >> i think he has become an obstacle and the reality of it is sadly that donald trump may cost the republican party this election. the hispanic vote is crucially important and growing every day. as i have said in this program before, you know, every month 60,000 hispanics turn 18 and become he wieligible voters, an that's going to be the case for the next 21 years in a row. if you aspire to be the president of the united states, you'd do well to engage the hispanic vote, not turn it away, and what's happening, unfortunately, is that good men like governor bush, like marco rubio, like scott walker, are being drowned out by the drama of a donald trump, and ultimately i think it will be the republican party that ends up paying for this.
>> we have to leave it there, guys. i have to get a commercial break in. thank you very much. we have to get a quick break in. still to come, the ashley madison hack embarrassing for millions of people, but could that shame be driving some to commit suicide? our story with lori segal next. go get help, boy. go get help. go get help! right now! if you're a cat, you ignore people. it's what you do. if you want to save fifteen percent or more on car insurance, you switch to geico. it's what you do. go on kitty, kitty...
the website. there's been one suicide in the united states that could be linked as well. this could be the beginning of just absolute tragedy. laurie segall is looking at this. i remember when this broke, i sort of couldn't believe it, but, you know, these people -- what do we know? >> i guess what we're learning is this is not a victimless crime. you also have the families of these folks who have committed suicide. we looked into one of them here in the united states, a san antonio police captain. we did see his information was on ashley madison although it appeared he had never really utilized this account and then we do know a couple days later he committed suicide. that's confirmed. you have the toronto police coming out saying they're investigating these links. this is just kind of the beginning. we thought there's going to be a lot of backlash, 32 million user names exposed, so this is part of this tragic ending to this data leak, poppy. >> so exposure is one thing. people that go on websites and look. is there a name on there or
their spouse's name but there's been blackmail. >> we're also seeing extortion. we also obtained a copy of a letter that hackers were trying to send out and they succeeded in sending out, they were sending out to people on the list. what this letter said if you don't pay me $200, the equivalent of one bitcoin, a digital currency, i will go to your significant other and tell them that you're on this site. you have seven days to do this. if not i'm going to go ahead and tell your significant other. so we thought that this was going to happen and we have officially seen that this is happening. >> especially, and i point out not a victimless crime at all, even for people who haven't committed suicide, it's just hard to believe, the families just finding this stuff out, right, even if their spouse did something incredibly wrong. think about children involved. what kind of punishment for the hackers could there be if they find them? >> they could certainly face jail time. we have multiple lawsuits also being filed, you know, as seeking hundreds and millions of
dollars in damages, and you also have the toronto police coming out and saying we'll offer $400,000 to anyone who has any information to help put these folks behind bars. so you can see they say the investigation is moving and what they said in a quote, unquote, positive direction but they still need a lot of help. >> laurie, thank you. new information just into us here at cnn that i want to tell you about regarding that thwarted french train attack over the weekend. the terror suspect, ayoub el khazzani looked at a jihadist website on his mobile phone shortly before boarding that train on friday. that's according to the afp citing a source in the investigation. he reportedly watched the video between the time he bought the ticket and boarded the train. this report comes as we learned police in belgium have raided two apartments near brussels. one of the parts belongs to the suspect's sister, the other to his friend. belgium prosecutors say el
khazzani could have lived in both of those apartments. still to come, a major overhaul in ferguson, missouri. a move being called a big win for protesters this morning. we'll tell what you it is next. i know how dangerous iran is. they trained and supplied insurgents who killed my... brothers and sisters in iraq. we cannot let them get a nuclear weapon. the tough deal on congress' desk blocks iran's path to the bomb. it keeps america safe. and if they cheat... we will catch them. and if we have to stop them the hard way, we will. but we should learn from the past. congress--support the deal.
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i love my job and i care about the work i do. i know how hard our crews work for our customers. i want them to know that they do have a safe and reliable system. together, we're building a better california. more than a year now after the death of michael brown, sweeping changes are overhauling ferguson, missouri's court system. a judge announcing he is withdrawing all arrest warrants for minor violations, including traffic stops that were issued before 2015. the overhaul is the latest fallout from a doj report that found the ferguson police department and the city's municipal court overwhelmingly engaged in discrimination against african-american residents. sara sidner is following the story for us this morning. good morning, sara.
>> reporter: good morning. the move is being called significant even by those who have been deeply critical of ferguson's courts and police department. the city is taking concrete steps to prevent people from being jailed because they simply can't afford to pay fines and on top of those fines the court was imposing fees, so putting people deeper and deeper into debt they simply couldn't get out of and then going to jail because of it. let me give you what a municipal court judge has ordered. it's a withdrawal of not just the arrest warrant for things like fines but all arrest warrants issued before december 31st, 2014. those ticketed for minor traffic violations will no longer be arrested but given another court date and if they can't pay outright, they can face alternative penalties like payment plans or community service or if they are deemed indigent, their fees could be wiped out altogether. now, while the warrants are wiped clean, that does not mean the cases go away. the cases stay put. they have to still work those out in court but people will still have to face the courts to
resolve those, but let's remember what prompted all this, poppy. sustained protest over a year that exploded after the killing of michael rown, and thoughthe officer involved in the shooting was deemed justified by a grand jury, a department of justice investigation revealed that ferguson was arresting and searching black residents for more -- far more than white folks and policing for profit. for example, in 88% of the cases where ferguson police reported using force, it was against african-americans. and between 2012 and 2014, it found that african-american drivers were twice as likely to be searched during traffic stops. the doj ultimately found ferguson's patterns and practices showed serious racial discrimination. people found themselves getting warrants or going to jail over minor traffic violations because they simply couldn't afford to pay the fines or they didn't show up to court worried that they would be arrested. this new order is trying to change all that. although there's some folks that are looking at this and saying,
hey, if the arrests were not good in the first place, then why shouldn't all these cases just be thrown out altogether and start from zero? that would help the community really see that the courts are making a major change. poppy? >> yeah, wow. cnn money and ac 360 did this in-depth investigation on all this and now a significant change. i do want to bring you an update on a story we brought you last hour about a group of african-american women who were kicked off of a wine train in napa valley, california, for being too loud. well, they called the incident humiliating. they say it was racism. we just got a statement from the company, the napa valley wine train. the ceo reached out to this woman's group, this book club, and said, quote, a learned a great deal from my conversation with lisa johnson of the sistahs on the reading edge book club, that's what the book club is called. most of all i learned that the napa valley wine train was 100%
in the wrong. he said the wine train was accurately insensitive to the members of the book club. also apologizing, please accept my apologizes for my mistake and our failures. thank you so much for joining me. i'm poppy harlow in for carol costello. she's become tomorrow. "at this hour with berman and bolduan" starts now. another wild ride on wall street. this time investors shrugging off problems overseas and head back into the market big time. and jeb bush is trying to clarify his comments about so-called anchor babies. in doing so he finds himself in even more of a mess. presidential hopeful senator lindsey graham is here to weigh in on that and some surprising new poll numbers. and also new this morning, chilling details about the final moments of a louisiana state trooper's life and the good samaritans who tackled the suspect as he tried to flee. i'm going to speak to a friend and colleague of that trooper this hour.