tv CNN Newsroom With Brooke Baldwin CNN December 24, 2018 12:00pm-1:00pm PST
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♪ there's no place likargh!e ♪ i'm trying... ♪ yippiekiyay. ♪ mom. ♪ top of the hour. i'm dana bash in washington. and we begin with the worst christmas eve ever for the dow and s&p. the markets closed early for the holiday today with the dow finishing down 653 points. and as markets made this history-making fall, the republicans and democrats, they're deadlocked here in
washington, unable to end the partial government shutdown that's now in day three. it's likely to last at least through thursday. and a short time ago, the president tried to blame democrats for the shutdown, the one that he just days ago said, in the oval office with them there, that he would be proud to own. here's what the president tweeted. "i'm all alone, poor me, in the white house, waiting for the democrats to come back and make a deal on desperately-needed border security. that comment caps a wild trump tweet storm in these hours before christmas. and today's stock market dive was spurred at the beginning in part by the treasury secretary, steve mnuchin, because he made some baffling public statements that backfired. he stirred uncertainty when he seemed to be trying to do just the opposite with a quite unusual move. here's what he did. on sunday, mnuchin called six big bank ceos from his vacation in mexico.
he then released the false stateme -- the following statement. he said, "the ceos confirmed that they have ample liquidity available for lending to consumer, business markets, and all other market operations." ample liquidity, why reassure about liquidity unless there is a problem with liquidity? and that's what investors and analysts have been asking as they wonder what mnuchin may know that they don't that might contribute, probably did contribute to the numbers that we just showed you about the stock market drop to do? but there's more to the market's troubles today. for that, let's turn to cnn's alison kosik, who is at the new york stock exchange. alison, people are taking notice not just of what the treasury secretary did yesterday, but what the president tweeted about today while the markets were opened. what happened? >> exactly. during the session, when the president tweeted, blaming the federal reserve, i watched those losses on the dow accelerate, so the dow was actually on an
upswing, but when that tweet came in around 10:45, it then went on a downward decline until the closing bell at 1:00 p.m., because we have a holiday-shortened receptisessio. for months, trump has been complaining about the fed, using fed chief powell as a pinata. but his latest complaint made the shornt pdshortened trading anything but sweet. and mnuchin's calls weren't interpreted as a friendly move a source says that the ceos were baffled, that the call came out of nowhere, with mnuchin asking about whether there were any liquidity issues with these banks. for the record, the banks said no. investors tried to spend the day trying to wrap their heads around why mnuchin made these calls out of nowhere, making that statement about liquidity. the timing is curious. mnuchin is on vacation in mexico, christmas around the corner, there's a government
shutdown. so usually when you get kind of calls like this, there's an emergency. it's reminiscent of those emergency liquidity calls that were made during the financial crisis. and while it's normal for a treasury secretary to exchange ideas with banking executives, the timing is not sitting well, because it's raising the question of whether the treasury department sees something brewing in the economy that maybe the market is missing. >> yeah, and his notion of making the call is one thing, and then putting out a statement that he made the call, without an explanation about this liquidity question that people weren't even questioning. >> lots of confusion. >> which led to what happened where you are right there and the stock market today. alison, thank you so much. so why did treasury secretary steve mnuchin make this curious call to bank leaders? let's go to our white house correspondent boris sanchez for some answers. boris, what are you hearing? any possibility that the president asked him to make those calls, put out that
statement? >> reporter: no clarity on that just yet, dana. but what is clear and what we've heard from sources is that the president is frustrated with the economy and specifically with his treasury secretary, steve mnuchin. we've heard that the president has openly and broadly complained that mnuchin is not doing enough to stabilize the markets. president trump, as you know, dana, has staked so much of hs z reputation, so much of his branding on a roaring american economy. and watching the numbers this december has clearly made him upset. perhaps what we saw this weekend was steve mnuchin try to compensate, try to make up for those diminishing numbers and perhaps overcompensate on that call you were just discussing with alison. one source familiar with it said that the belief among the ceos after it ended is that he was simply trying to assert himself during a volatile market. but clearly, it did the opposite. mnuchin on vacation, apparently trying to seem engaged, as the
downfall in the stock market continues. the question, of course, is, how will the president respond to this. today, you saw him blame the fed. it's unclear that he is going to look at what one ceo apparently on this call mentioned, which is the turmoil here in washington. questions about this jean, how long it is going to last. and questions about the president's approach to his fed chair, jay powell, that continues to linger. and clearly, it is affecting markets. i should note, the president also tweeted, he is here at the white house alone, saying, "poor me," as he awaits democrats to return on thursday as he waits to continue a conversation on how to reopen the government, dana. >> boris, thank you so much. well, the president will be joined in a little while by his wife and youngest son, who are on their way back from florida to washington to be with the president on christmas. but there is no sense that there is any movement on another thing that is clearly contributing to the volatility in the markets. and that is the government is
partially shut down on this christmas eve. it's the third shutdown this year for president trump. it's hitting 800,000 government workers hard during the holidays. they're either laid off or still working, but not getting paid, as this impasse continues. and let's get straight to cnn's senior congressional correspondent, manu raju. so, manu, as i mentioned, the first lady is on her way back to be with the president, who is home alone, as he put it, in the white house. i'm just seeing images in my head of this. but we'll move on from that. but there isn't any negotiating going on. he blames the democrats. >> yeah, and this is much different than we've seen in shutdowns past, where president would call in leaders of congress, try to at least make a public image of trying to cut a deal. there's not even any of that. the last face-to-face discussions occurred on saturday, between vice president
mike pence and chuck schumer, those did not go particularly well. this comes down to funding for the president's border wall on the southern border. $5 billion is what he initially came up with. democrats said, we'll give you $1.3 billion for border security. pence came back with about $2.5 billion and schumer rejected that. and now is saying that the president should abandon the wall and that's something the president does not want to do. instead, the president is tweeting, attacking democrats and having a meeting with his homeland security secretary, not with democrats. and just moments ago, democrats put out a statement. chuck schumer and nancy pelosi strongly criticizing the president for, quote, plunging the country into chaos, in their words, and saying different people in the administration are saying different things and it's not clear where the president stands, so they say it's hard to see how a bipartisan resolution could come to pass. that's why folks on both sides, dana, are expecting this could go on for weeks. >> great. so manu, stay with us. there's a lot to talk about. it's hard to believe that it's christmas eve and there's so much real news going on. but stay with us. we want to bring in tolu
oloronepa, the white house reporter for bloomberg news.. let's take a look at the dow again, the drop was precipitous after the president tweeted, slamming the fed. this is today, and you see that point where the president was making the analogy to a golfer and saying the fed is like somebody who doesn't know how to putt. tolu, your publication follows the markets and you also follow politics, so put those two together and explain how the reaction came down today. >> yeah, the dow and the stock market has been a political weapon that the president has used for the first two years. he's talked about how markets have gone up in the early part of his administration. he used to make a campaign slogan out of how is your 401(k) doing, because the markets had been going up steadily during
the first year of his administration. and as we've seen over the past few months, the markets go into bear territory with the markets tanking sort of on a daily basis, today, a 650-point drop, becoming almost normalized, because we've seen so many cascading falls in the dow over the past couple of weeks. it's not something a president can brag about anymore. that's part of the reason why you've seen treasury secretary steve mnuchin trying to calm the markets. that backfiring. the president not being too happy with his treasury secretary. not being happy with his choice for the fed chair, jay powell. this is not someone he pin hu inherited. this was his own personal choice, someone he select ed. so the president is looking for people to blame, because the markets are not doing so well right now and he doesn't have that political weapon, that political slogan he can take to voters and say, i'm a businessman who was elected and now i'm putting more money if
your pocket through your 401(k) and your investments. >> and manu, what are you hearing from your hill sources about this reporting that we've done and bloomberg first reported about the questions that the president has been asking about whether he can actually fire a fed chair. >> there's been pushback significant among republicans in particular. jerome powell was confirmed by this after this president ape pointed him by roughly 80 votes in the senate, overwhelming bipartisan consensus getting behind him, for the job and a number of republicans are happy with the job he's doing. because they believe his predecessors were more interventionist in the economy as they would like. they're more in line with their orthodoxy. you heard richard shelby, a senior member of the senate banking committee. pat toomey also sits on that panel. both of them have made pretty clear the president should not take steps to dismiss jerome powell. they, of course, question
whether he should legally do s,p but they're al also trying to back him up, saying he's made some of the right decisions going forward. so it's clear the president has some divisions within his own party. and we'll see what the president decides to do. he's looking for someone to blame. and it appears if he can't get rid of jay powell, he's looking at steve mnuchin instead. that's one reason why mnuchin is doing everything he can to try to say that mnuchin is okay. but it could backfire today. >> it certainly did seem to do that. and on the mention of the fed, toulouse, there has been backlash among even republicans, to even the notion of asking about firing the fed chief. but the fact that that is now out there has probably not had as detrimental effect as if he actually did fire the fed chair, obviously, but it hasn't helped with the stock market today. >> yeah, and that's why you saw
mnuchin over the weekend tweed 2013 out a conversation that he had with the president, where he sort of walked that back and said, i spoke to the president and he said that he doesn't even believe that he has the authority to fire the fed chairman. and you saw that amplified by the acting chief of staff, mick mulvaney, on the sunday shows yesterday, because they realized how much this would probably unnerve investors, if you break that red line and have the president trying to fire someone who should be independent of politics. i think republicans and democrats both agree that the federal reserve chairman should not be somebody who is subject to the whims of the political winds and if the stock market is going down, the president can just fire this person. that's not how wall street is supposed to work. it's not how the financial markets are supposed to work. and that's part of the reason you see that pushback from democrats and republicans, even from some of the people within the president's inner circle, trying to push back on the president's impulses, asking his friends whether he should fire jerome powell, the fed chairman. >> i remember during the 2016
campaign, we would watch the president and then the candidates tweet saying, imagine if he does this as president, he's going to move markets. that's what we saw today! this is what happens. thank you, both. appreciate it. merry christmas. >> thanks, dana. and coming up, president trump is seething over coverage of the resignation of his defense secretary. so he pushed him out develop months earlier than expected. and now some top military officials are worried about the impact of the upheaval on the armed services. plus, multiple investigations, a crumbling stock market, mounting scandals, a new report details what it's like these days inside the white house as the president becomes increasingly frustrated and isolated. and devastation in indonesia. look at those pictures. more than 400 are dead after a tsunami hits the coast and officials warn more deadly waves could be coming. but do you take something for your brain.
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the president is forcing defense secretary james mattis out two months earlier than mattis had planned. a big change from what the white house said just last week. >> secretary mattis came in, he met with the president, they made the decision and he won't leave for at couple of months. >> well, time's up. having seen the overwhelming praise for mattis, president trump plans to replace him by next week. deputy defense secretary patrick shanahan is now slated to take over, but he has no foreign policy or military experience. and adding to that drama, the person in charge of the fight against isis, brett mcgurk, also
resigned, saying he can't defend the president's decision to pull out troops of syria. and now president trump is blasting mcgurk and mattis on twitter. let's get straight to cnn's barbara starr at the pentagon and also bring in cnn global affairs analyst, aaron david miller. barbara, let's start with you and what you're hearing from your sources in the pentagon now about decision and the concerns about fact that there's not going to be very much overlap between mattis and even his acting -- obviously, none, with whomever will be nominated. >> well, at this point, patrick shanahan, who has been tagged to be the acting secretary of defense, is on his way back to washington, we understand. we've been out of town for the holiday, on vocatiacation, and clearly, this catching him unawares. he is now heading back to washington. madison and shanahan from worked together since the beginning.
but it's important to understand, they really have two different jobs. as deputy, shanahan very involved in the business affairs of the pentagon, working on budget planning, acquisition, innovation, that kind of thing. mattis much more out there on the global stage. and it is that global stage that shanahan is now going to have to step on to, with no foreign policy or military experience. hays going to have to go to nato meetings and deal with allies, pardon me, give the president advice on adversaries. it may be very tough going for him, dana. >> and barbara, put that in context. you've covered a few defense secretaries. have you seen even an acting in a situation like this running the world's most powerful, complicated military, somebody who has no experience personally in doing that, never mind foreign policy? >> right. well, the typical thing that happens, of course, is that there's a changeover when
there's an inauguration with a new president. and what we typically see, on inauguration day, as a new president is sworn in, the previous secretary leaves off and someone is appointed as senior civilian to be acting for a while, but congress normally confirms a new secretary of defense, a new secretary of defense for a new president very, very quickly. so there isn't this sort of vacuum. so right now, fair to say, a lot of the tension is shifting to who the president may pick to be his permanent secretary of defense, a nominee, and will that nominee quickly get through the senate. ba dana? >> barbara, thanks. and aaron, i want to to ask you about the specifics, the reasons why both mattis and mcgurk resigned and that's the president's insistence that u.s. troops are going to leave syria. what are you hearing from your
diplomatic friends and colleagues in the region and around the world about that decision? >> i think you know the answer to that, dana. there's almost no souls in washington who believe this is anything other than a complete and utter catastrophe. some people are predicting the apocalypse. there's no question that the way in which was handled, no consultations with congress or allies, no conditions, no effort to even negotiate with the turks or russians to determine whether or not the kurds could somehow find a niche in a post-american scenario. but i have to say, on balance, there's a certain reality here. 2,000 american forces and a dozen sfos in syria competing with the russians, the turks, and the irans are not going to be able to accomplish what the administration's inflated goals seem to allow. we're not going to push the iranians out, we can't constrain the russians, and we're not going to be able to facile day a
transition. so i think while the way this decision was made is bad and i think it will degrade to a certain degree our capacity to combat the islamic state, i'm not so sure the end of the world is coming. and as de gaulle pointed out, the cemeteries in france are filled with indispensable people. mattis will be a huge loss. and the issue in the end is not who going to be the new secretary of defense, but will that person be willing and able to offer real sober, sound device, if it conflicts with the president's sensibilities and his instincts. >> no question, the reaction has been, not just to mattis and the kind of person he is, but it's about what he said in that letter and his policies, in particular, his illusion to syria. and on that, i want to show you and our viewers something that the president tweeted today about his decision to pull out of syria and promise that turkey is going to handle things just
fine. here's what he said. president erdogan of turkey has very strongly informed me that he will eradicate whatever is left of suz aisis and syria ands the man to do it. aaron? >> i don't believe it. the turks have one overriding goal in syria and that's to crush any movement that has aspirations to set up an autonomous enclave. and the turks have proved pretty risk averse in terms of projecting their own military force and holding territory. the real issue now, though, is will the russians, the iranians, and the turks now shackled for the first time with the reality that the americans are not going to be able to do their dirty work in terms of dealing with isis, are they going to fill the gap and gill the void? >> and it's one more example, it seems to me, of the fraught political african that is syria and how ill equipped i think we really are to stay the course.
>> and barbara, i know that you're hearing from source from and about how active duty troops in that region and elsewhere are feeling when it comes to that uncertainty, not just there, but more broadly about what america's policy is in these hot spots. >> think of it this way, troops around the world, very savvy, very connected to social media, watching all of this through a variety of outlets. even if they're in the war zones, they are not isolated. they see, read, and hear all of this. and what we know now is a couple of key military leaders, the commandant of the marine corps and the secretary of the navy have become traveling in afghanistan over the christmas holiday, give their holiday wishes to the troops. but instead, what they're get back from young troops are a lot of questions about what is going to happen, will they be going home, when will they be going home, what will happen in the combat zones they've been in. and those leaders are being very
honest with the troops and telling them, they don't have any answers. so that kind of uncertainty, that kind of unease is just something the u.s. military does not like to deal with. >> yeah. the u.s. military, which has plans for their plans and plans for those planses and every scenario. >> barbara starr and aaron david miller, thank. coming up, sources are telling cnn that the president lashed out at his own acting attorney general over his former attorney, moen and what federal prosecutors are doing in new york. now the president is tweeting his reaction to cnn's reporting. and just in, what we're learning about actor kevin spacey, now facing felony assault charges. ki details, next. my true love gave to me♪
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breaking news this hour about disgraced actor kevin spacey. cnn has learned he's been charged with indecent assault and battery stemming from an incident in massachusetts. let's get straight to cnn's jean casarez, following the breaking developments. jean? >> well, a press release has just come out of the courts in massachusetts, saying that kevin spacey has, in fact, been charged criminally with indecent assault and battery.
it stems from a july 2016 incident at a local restaurant in the nantucket area. his mother, heather unrwa, was actually a very big anchor in boston and she gave a press conference last year alleging the facts of all of this. but according to cnn's reporting of that press conference, she said that it was in july of 2016. her son was in a bar, he was 18 years old, he was starstruck when he saw kevin spacey, that kevin spacey asked him if he was of legal age to drink. he said he was. that spacey allegedly kept plying him with alcohol, until, according to his mother, he was drunk, and that is when kevin spacey sexually assaulted her son by touching him inappropriately. now, kevin spacey, today, has just released a youtube video in character of his "house of cards" character. watch and see what you think.
>> i know what you want. oh, sure, they may have tried to separate us, but what we have is too strong, it's too powerful. i mean, after all, we shared everything, you and i. i told you my deepest, darkest secrets. i showed you exactly what people are capable of. i shocked you with my honesty, but mostly win challenged you and made you think. and you trusted me, even though you knew you shouldn't. >> we have reached out to kevin spacey's attorneys, his people, we have not heard yet back yet. his criminal arraignment in court is set for january 7th. dana? >> jean, thank you. that video clearly shows kevin spacey trying to remind everybody not just about his character, but his acting chops there. jean, appreciate that. now, we're going to talk next about multiple investigations, a crumbling stock market, mounting scandals, a new report details what it's like these days inside the white
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a deal on desperately-needed beard security. with me now is michael d'antonio, a donald trump biographer and a cnn contributor. michael, thank you so much for joining me. i'm sure you've heard the same, maybe even seen the same as i've heard for years now, which is, the most important thing if you are a trump staffer is to try to keep him busy. this is the perfect storm for trump aides, which is, it's christmas eve, he's home with nothing to do, nobody's around him, and the only thing he has is his phone and cable news. >> well, you know, i think the only people maybe having a worse christmas than the white house staffers are the 14,000 kids who are separated from their families as migrants or maybe it's the kids of 800,000 federal workers who don't know whether their paychecks are going to come. we're really now in a terrible
state in this country, where the president is waging war on the christmases of of all of these folks who should normally be enjoyi ining some peace for the holidays. >> well, of course, the president has just kind of explained what i was talking about, with his phone. he sent out about ten tweets, maybe more by now, during the day, on a whole host of issues, going after a number of people in his own cabinet, or at least those who are leaving his cabinet and also the fed chair that he put in the fed, that he nominated. and even though this is something that we're used to, it is the disruption even on a day like christmas eve that is a little bit jarring for people who are not thrilled with him. but for people who like him, who are out there watching this, they're saying, go get him. this is why i voted for him. well, maybe those folks think that everybody deserves some
coal in their christmas stocking, i don't know. but this ream doesn't seem like a goodwill toward his fellow man, when it comes to the president and how he's ending out the year. but it's been a roller coaster as you know, you've covered him now for almost two years. this is how he's always been. this notion of being at war, being in conflict, he's most comfortable in this chaotic condition. and i think he gets goetz, almost has an anxiety attack when things are quiet, so if they're quiet, he disrupts them. >> well, that's what's happening on christmas ', for sure. thank you so much for your insight and hope you have a merry christmas. >> same to you. and melania trump is expected any minute back at white house. she returned from mar-a-lago today, after plans for the family to spend christmas in south florida were canceled, because as we've been talking about, there is a partial
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march madness had its usual drama with buzzer-beaters and upsets. but it was a 98-year-old nun that captured the hearts of the country. sister jean, the team chaplain for chicago loyola became the star of the ncaa tournament and shocked everyone by making it to the final four. >> oh, don't be nervous with me. >> you're a celebrity. >> i know. that's what they tell me. >> villanova won it all, claiming their second title in three years. at number seven, two first time champions and historic inaugural season. the las vegas golden knights becoming the first expansion team to win their division in their first year. golden knights making the finals before losing to the washington capitals in five games. >> the champions! yes! >> this was the first title for the capitals after years of
disappointing seasons. for the superstar, alex ovechkin, finally got to hoist the stanley cup after being considered the best player to never win a title. in the nfl, the 2018 playoffs were dominated by an underdog and their backup qb. nick foles leading the eagles to the super bowl against tom brady and the mighty patriots. the eagles would win their first super bowl 41-33. foles named the game's mvp. >> defenseagles! >> in 2018, tiger woods finally climbed back on top of the golf world. after nearly winning the pga championship, tiger was triumphant in september, and in an incredible scene, thousands of fans chasing tiger up the final hole of the tournament. and for the first time in five years, tiger had won a pga event. >> this is my 80th win. and all i've gone through to get to this point, it's pretty special. the 2018 winter olympics in
pyeongchang saw north and south korea march in the opening ceremony together under a unified flag for the first time since 2006. the two countries yielded a joint women's hockey team. in that sport, team usa saw one of their biggest victories. >> coy, what a night it was. >> epic dramatic finish as the american women capture olympic gold for the first time in 20 years. >> brings tears to my eyes. it's been an incredible last 24 hours. >> the world cup is officially up and running in moscow. ♪ sports biggest spectacle with thrilling high-scoring close games from start to finish. >> it is absolute pandemonium in paris. >> it's been an amazing world cup. it's been a very rainy end to it. but france the champions in an exciting finale. >> at number three, athletes
using their voice. in august, the nfl season once again started with president trump attacking players who kneeled during the national anthem and a player who started the movement, colin kaepernick, remains out of football, but he did pick up a new sponsorship deal with nike. >> don't ask if your dreams are crazy. ask if you're crazy enough. >> lebron james always one to speak up on social issues, but in february he was told to just, quote, shut up and dribble by a fox news host. >> we will definitely not shut up and dribble. so many kids feel they don't have a way out. >> after losing in the finals again to the warriors, lebron announced was taking his talents to hollywood to play for the lakers, but it was what lebron did off the court this year that he calls the most important thing he's ever done. >> when i was younger and if i ever became successful or anything, i want to be able to give back. >> lebron opening an elementary school for at-risk youth in his hometown of akron, ohio.
with just nine months after giving birth to her daughter, serena williams made her return to tennis. after finishing as the runner up at wimbledon, serena again made the finals at the u.s. open in her match and it turned into one of the most controversial in tennis history. >> stole a point from you. you're a thief! >> carlos ramos penalizing serena for receiving signals from her coach, breaking her racket and for verbal abuse. it resulted in her arguing with officials that she was being treated more harshly than male players. the number one sports moment of 2018 is the courage and bravery of the hundreds of women who confronted their sexual abuser. former u.s. and michigan state gymnastics doctor, larry nassar. >> larry nassar is in another michigan courtroom for another sentencing. >> michigan state university is
being investigated by the attorney general's office. >> larry nassar will likely be spending rest of his life behind bars. >> more than 150 women gave impact statements at a marathon sentenci sentencing hearing for nassar and they were honored with the arthur ashe courage award and ali raisman was among them and gave an inspiring speech. >> if just one adult had listened, believed and acted, the people standing before you on this stage would have never met him. >> sports in 2018 will be remembered for empowerment and perseverance from serena to gymnasts, inspiring women making their voices heard, building a foundation for years to come. no . eight in 2018. brought to you by farmers insurance. it will be 91 years.
visit cnn.com/yearinreview for a look back at the stories from around the world in 2018. ballooned your car. call meeeee! (burke) a fly-by ballooning. seen it, covered it. we know a thing or two because we've seen a thing or two. ♪ we are farmers. bum-pa-dum, bum-bum-bum-bum ♪ but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.
twas the night before christmas and all through the white house, the only thing stirring is the president and his smartphone. "the lead" starts right now. president trump spending most of the government shutdown alone in the white house. likely watching cable news and blasting out a series of frustrated tweets. is the president feeling walled in by his battle over the border wall? plus, no solution in sight. members of congress back home for the holiday, negotiations stalled, and the white house warning that the shutdown could last well into the new